The IRS Deductions Blog

Archive for July, 2008

Question: Is it better to pay off a home loan and save thousands in interest or take advantage of Mortgage Tax Deduction

primary residence 30 yr loan

Answer: it depends upon your cash flow situation and your longer term plans.
how long you plan to stay in the house, the interest rate on the loan, your tax rate and your savings/safe investment rate for the money you would otherwise be putting into the mortgage payment.

do the math…
DL

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Consequences of changing the tax deductibility of property taxes and mortgage interest deductions on owner occupied houses ([National Housing Policy Review study papers]) …

Bill Thomas: Real estate dreams, schemes helped doom economy

When Bill Thomas was chairman of the tax-writing House Ways and Means Committee, he thought too much emphasis was being placed on home ownership. “If you can afford to buy a house, you are rewarded handsomely in a number of financial ways. If you can’t, you are punished because you pay rent. You can’t even subtract rent from your income tax,” said Thomas, who retired in 2006 after representing …

Tax Tips & Advice : How to Deduct Home Mortgage Loan Interest

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Daylight Resources Trust Reports Year End 2009 Financial and Operating Results-Reserve Additions Replace 600% of …

CALGARY, ALBERTA–(Marketwire – March 2, 2010) – Daylight Resources Trust (TSX:DAY.UN) Q

Question: Should I sue the person at fault or use my collision insurance and PIP?

My wife was rear ended at high speed while stopped at a light and there is no question about liability. Our car was totaled and my wife and her passengers were injured. My ins. co. wants to pay for our car under the collision coverage and pay medical under the PIP part of the policy. I would have to pay a 300 dollar deductible and part of the rental car fees. Would I be better to simply sue the at-fault person’s ins. co. (State Farm) so I could be made whole? Or would the attorney fees be too much? The car was a 2007 Ford Focus.

Answer: If the car is a total then the 300 would be take out of the total loss settlement. If you owe more than what it is worth the other carrier is not responsible for anymore. That can happen because of your interest rate, if you had a balance moved over from a trade in, ect. If you have GAP coverage that was purchased with the veh, that will coverage the balance of the loan. New vehicles, always get insurance if you will be in the negative on the loan.

Some people use the injuries to get more money to cover this loss. First have your insurance pay the medical bills. The other carrier will need to pay your insurance back for collision and PIP. They should pay your insurance back your 300. Then you get that back. After each person is done being treated for the injuries then State Farm has to offer a final injury settlement. This will include the medical bills that your insurnace pays and then anymore for the injuried person. This may include pain and suffering and any other out of pocket expenses. If there is any travelling to get to and from doctors, then record the mileage. They may owe for this and PIP may have coverage too. When people hire attny that is usually only for the injury portion. You can do this at anytime. Some people do it right after the accident or they wait until settlement time if they are not getting what they want. State farm will come up with a low ball figures. You can always negotiate the amoun up. Kind of like Monopoly. They start low. You start high. meet in the middle. Your PIP adjuster will also have all the documentation to show what the treatments and diagnosis are too. This will help prove the extent of the injuries. Good luck!

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Saving money on car insurance

So you know all those ads claiming you can save a bundle on car insurance – with just a call or click of a mouse? Well, it’s true. Bay Area Consumers’ Checkbook and Checkbook.org evaluated auto insurance companies and found that most local drivers can save… Insurance – Vehicle insurance – Financial Services – Automotive – Business

The Collision Deductible Reserve Plan Works! Save10%-40% On Your Car Insurance…

Question: Special Bank Account for Medical Deductions…?

At the end of the tax year when filing for Medical Deductions do you have to have a separate bank or expense account for it in order to show to the IRS or can you just use the same Credit card or Debit/Credit Card Account and just maintain reciepts….
Also..
What is the neccessary paperwork involved…

Answer: Save the statement of explanations (the bill) to go along with the credit card statement.

No special bank account is required.

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What’s love got to do with taxes? Nothing

Working on those New Year’s resolutions yet? If you’re a woman, and married, here’s one you may never have considered but that could be more life-changing than a 10-pound weight loss or the decision to quit smoking: You might resolve to file a separate federal income tax return for 2009.

Tax Deduction Tips & Advice : How to Claim Medical Deductions