Who can deduct interest on a mortgage?To qualify to deduct any interest, the person who pays the interest must be personally liable for the debt.
Who pays the inheritance tax?
Your inheritance of $ 65,000 for income tax purposes is tax free. The trustee or executor will have paid ...
What are tax liabilities on the sale of a vacation house?
The gain is calculated as follows: sales price minus seller’s closing costs, minus original cost basis, minus ...
May I deduct a $40,000 contribution to charity?
Yes, you can donate the $40,000 to a charitable organization, but you will still have to pay ...
What is the basis for my rental unit?
The basis of your old house that you will rent out is the sum of your purchase price when you bought it and ...
Does cosmetic surgery qualify for a deduction?
To be deductible, an expense must be considered both ordinary within the industry or profession ...
Can I sell my parents’ house and avoid the capital gain tax?
If you use the date of sale as the FMV date, the sale price and basis are the same, meaning there is no capital gain tax.
How much is the tax on capital gain?
Since California doesn’t have a capital gain tax, you would pay ordinary income tax on the remaining gain ...
Can I apply a capital loss on past years' taxes?
First, we need to determine if your loss is realized or not.
Can I get refunds if I failed to file taxes in previous years?
The IRS will refund overpayments of taxes within three years of the due date of the return or two years after payment.
How do I deduct mortgage payments on a duplex I live in?
Although a single structure, a duplex is treated for tax purposes as two separate and distinctly different properties.
Can I do another 1031 exchange on property that hasn't been rented?
You should not be taxed if you do another 1031 exchange even if the house you purchased in August has gone unrented.
Will proceeds from a 1031 exchange be taxed?
Generally speaking, withdrawal of funds would be a taxable event.
Do I have to report transfers into a foreign bank account?
Assuming that your uncle is transferring the funds into your account as a gift to you and not as consideration for goods ...
Can I deduct penalty payments from my taxes?
Sorry. The law says that interest expense and penalties paid to the Internal Revenue Service for the current year ...
Can I apply a capital loss against my father's trust?
Regarding the bonds, technically there is no loss if you sell them for $20,000.
Do I have to file taxes in two states?
You will have to file a part-year resident income tax return for each state.
Do taxes need to be paid on gifts from a foreign national?
No. American citizens who receive gifts from other citizens or from persons residing outside of the United States do not pay income taxes on the gifts.
Can we use our IRA to purchase a home?
You are referring to the 10 percent early withdrawal penalty for distributions from a qualified traditional IRA plan ...
What will my mother-in-law’s taxes be on her $1-million house?
Her tax situation depends on when she became a widow and what the fair market value of the home was at that time.
Does my mother owe capital gains on property received in a quitclaim deed?
Your mother will be subject to capital gains tax on the profit of the sale of the house that exceeds $250,000.
How can my child determine the tax basis of my house in a life estate?
The basis of the property in the hands of your child will be the FMV at the date of ...
Will I have to declare the child tax refund?
The direct answer to your question is no, you do not have to report the $400 refund as income. But ...
Can sole proprietors carry forward losses for 20 years?
When you suffer a business loss, you first offset any current income with that loss.
What deductions can a vet make for spaying and neutering services?
The Internal Revenue Code allows for a charitable deduction for the cash or goods donated to a non-profit organization.
Will I lose my California residency if I work in another state?
Questions of residency are frequently judgment calls rather than black-and -white answers.
Can we get a depreciation deduction for an SUV used for business purposes?
You are allowed to deduct any expense incurred in order to generate a taxable profit.
Will the state withhold tax from the sale of my house?
Beginning in 2003, California generally imposes a 3.3 percent withholding tax on the sale price of an individual’s real estate.
Do I have to report foreign funds to the IRS?
You only need to report and pay taxes on income.
How will a divorce affect capital gain taxes on selling of properties?
The tax laws treat capital gains from sales of residences and investment real properties differently.
Must we declare a gift from my parents?
Good news! The receipt of a gift, regardless of the amount, does not have to be declared on your personal income tax return.
How can I deduct all of my rental property's expenses?
There are several specifics that need to be explored that depend upon your overall circumstances.
How Should I Report A Reimbursement Of A Wage Overpayment?
The easiest way to handle this situation is to have your employer issue a corrected W-2 for the year 2001.
Does my mother's inheritance preclude me from filing as head of household?
No, it probably doesn't. To qualify for head of household status, you must meet certain conditions.
From the IRS: Anti-Tax Law Evasion Schemes
Beware of fraudulent tax evasion schemes that entice people to believe there is no legal basis for the collection of income taxes.
Does my CPA need my approval to turn over records to the IRS?
Under the California Accountancy Act and the regulations of the California Board of Accountancy, all information about a client that a licensee obtains in his or her professional capacity is confidential.
How can I rectify back taxes?
Every taxpayer is required to maintain adequate books and records.
Who gets the tax deduction for a charitable donation?
Your friend gets the deduction.
What is the legal definition of "taxable income"?
All sources of income are taxable unless there is a specific exception in the law.
Is my ex-husband entitled to a tax deduction for our home?
This question has both tax and legal aspects, so you should also consult your attorney and check your divorce decree.
Can I get tax deductions for payments that benefit my ex?
You can hold title to the property as unmarried people in equal interest with your ex-wife as joint tenants.
How should restricted stock be treated?
You would need to report the value of the stock as miscellaneous income on your return.
Can I write off the losses on my rental property?
Depending on your income, you may not be able to deduct the $200 loss each month on your income taxes.
Can I Write Off a Real Estate Commission?
You cannot write off the commission all at once, but you may add it to the basis of the property you received in the transaction.
May My Mother Deduct a Percentage of Interest on My Home?
If your mother is liable for the mortgage note, she is entitled to deduct the portion of the tax and interest she pays.
Can the IRS Get Payments from Wife on Taxes Husband Owes?
The IRS can come after community property, including wages and primary residences.
When Would It Be Best for Me to Take an IRA Distribution?
You may take the first required minimum distribution any time during the year you turn 70-1/2, but you may delay it without penalty until Apr. 1 of the following year.
Can I Deduct Fees Paid to My Mutual Fund Manager?
The fees paid to people who manage your investments are investment expenses.
Is There a California Estate Tax?
California's estate tax is essentially is what is called the "state tax credit."
How Can I Avoid Estate Taxes for My Heirs?
For the rich, the price of dying has always included a substantial tribute to Uncle Sam. But in recent years, the middle-class has started feeling the burden.
How Do I Know If I Qualify For "Innocent Spouse Relief"?
In some cases, a spouse is relieved of responsibility for tax, interest and penalties on a joint tax return.
May I take deductions from last year on this year's taxes?
You can't just "carry over" deductions from last year, but you can amend last year's return.
Do we pay the marriage penalty if we were only married less than half the year?
Like pregnancy, there is no such thing as being "a little bit married," at least under the Internal Revenue Code.
I live in two states: where do I file a tax return?
Both. But you need to figure out your "residency" before you can file.
How can I use my money in a 1031 Exchange?
A "1031 exchange" is a very powerful tax strategy for re-deploying real estate while avoiding significant tax consequences.
How are nonresidents who come to work in the United States on a temporary basis taxed in the United States?
United States residents are subject to some very specific and complicated rules.
Can tax be charged on Internet sales?
Many politicians have promised not to tax the Internet, but they were talking about the use of the Internet, not sales made over the Internet.
What is a charitable lead trust?
A charitable lead trust can be a powerful tool to minimize death taxes.
Should I get expert help for reporting sales and use taxes for my small business?
The state of California is becoming more aggressive in its audit and enforcement program for sales and use taxes.
What happens if I don't file my taxes?
You're better off staying current and in compliance with tax filing requirements.
Does my home office qualify for deductions?
When it comes to tax deductions, there is no place like home -- your home.