The IRS Deductions Blog

Archive for April, 2009

Question: Can I report my loss of contract deposit for tax deduction?

Can I report my loss of contract deposit for tax deduction?

Last year, I gave up my contract deposit ($10000) when I had to back out my offer in buying a house.

My realtor was so aggressive as to blindly let me go into a bad deal for buying an investment property.

Can I report my loss of contract deposit for tax deduction?

Answer: if it was for your home then no, you cant.

if it was for investment property, you could report it as a short-term capital loss on Schedule D.

Items on Amazon Right Now for Tax Deduction Investment Loss:

Investment Theft Losses: How to Maximize Tax Deductions Under IRC Section 165 (c)(2) $3.99 Investment Fraud accounts for billions of dollars of losses each year from unsuspecting victims. In 1954, Congress enacted Section 165 of the Internal Revenue Code.  Its purpose was to give some relief to the victims of fraud. For many understandable reasons it was rarely utilized until about 8 years ago. This book is intended to be a practical way for tax professionals and taxpayers understa…

Investment Theft Losses: How to Maximize Tax Deductions Under IRC Section 165 (c)(2) $32.93 Investment Fraud accounts for billions of dollars of losses each year from unsuspecting victims. In 1954, Congress enacted Section 165 of the Internal Revenue Code. Its purpose was to give some relief to the victims of fraud. For many understandable reasons it was rarely utilized until about 8 years ago. This book is intended to be a practical way for tax professionals and taxpayers understand wha…

Investor Gains & Losses (Series 200: Investors and Business) $19.95 This book covers the tax difference between an investor seeking capital gain at lower rates and an entrepreneur seeking livelihood; explains the importance of exact matching broker reportings of gross proceeds to the IRS; and covers the imposition of zero basis when capital records are poor or disorganised….

Quicken Rental Property Manager 2011 – [Old Version] $73.09 Quicken Rental Property Manager 2011 includes all of the features found in Quicken Home & Business, plus smart tools for managing your rental properties. Always know how your home-based business is doing. Helps maximize deductions and simplify your taxes. Manage Your Personal, Business, and Rental Property Finances in One Place Organizes Your Finances All in One Plac…

Financial planning: To convert or not convert – that is the Roth question

Beginning Friday, all IRA owners, regardless of income, can convert their traditional IRA into a Roth IRA.

Investing & Retirement Funds : Can You Deduct Losses on a 529 Plan?

Question: Poll: Should I purchase health insurance through my husband’s work?

Plan A: wellness benefits covered 100% for the first $400. $4000/$8000 deductible then coverage is 80%, cost $50 bi-weekly for husband and spouse

Plan B: wellness benefits covered 100% for the first $350. Coinsurance 20% for visit maximum benefits $3,500 that will be paid out by insurance. Cost: $40 bi-weekly

Which is better and why. No family medical problems, I think my husband might have high blood pressure.
With plan B: My husband wouldn’t have to pay coinsurace because I work for a doctor and can have that waived. It would be with United Health Care
We are both young 23 and 25 so we are both really healthy. We have to decide by February 16 and it doesn’t become active until April 1st.

Answer: Absolutely. United health care is one of the best. Go with plan A.

Items on Amazon Right Now for High Deductible Health Insurance Plans Cost:

Healthy Savings: Health Savings Accounts and high-deductible health plans help fight the spiraling cost of health insurance for companies and … An article from: Strategic Finance $9.95 This digital document is an article from Strategic Finance, published by Institute of Management Accountants on February 1, 2009. The length of the article is 4590 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Healthy Savings: He…

Power to the patient: can high-deductible plans and health savings accounts lower premium costs and replace the traditional goal of comprehensive insurance?: An article from: State Legislatures $9.95 This digital document is an article from State Legislatures, published by Thomson Gale on May 1, 2006. The length of the article is 1141 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Power to the…

Federal Employees Health Benefits Program: First-Year Experience with High-Deductible Health Plans and Health Savings Accounts.: An article from: General Accounting Office Reports & Testimony $5.95 This digital document is an article from General Accounting Office Reports & Testimony, published by Thomson Gale on February 1, 2006. The length of the article is 661 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Cita…

Year-end rush crowds pharmacies, doctors offices

Trying to get a last minute doctor or dentist appointment this week will be difficult as Tennesseans try to save on their insurance.

The Costs of Medical Health Insurance

Question: Can I deduct 2008 and 2009 property taxes on my 2009 tax Schedule A/B?

Local Tax assessors allow me to physically pay property taxes in the assessed year, or within 2 months of the following year. If I pay two years worth of taxes in the same year (i.e. 2008 taxes in January 2009 and 2009 taxes in December 2009), my deductions would be significantly higher. Note that my standard deduction is very similar to my Itemized Deductions, so there is very little advantage to itemize (unless I can move my property tax payments to increase every-other year’s itemized value).

Answer: Yes, this is a valid way to shift Deductible Expenses from one year to another. The IRS only cares about when you spent the money – not the date it was due to your town or city. You could also do it in reverse – pay 2010’s taxes in December of this year.

And, you can prepay your mortgage a few days early to pick up one more interest payment – just know it will be one less the next year.

You can also do the same with your state income taxes but it is trickier to do as you don’t want to trigger an underpayment penalty with your state. Overwithhold on your state income taxes so you get a bigger deduction, then when you get a refund, recognize the refund in a later year.

You also might want to look at categories such as student loan payments, education expenses, and if you are self-employed, any business expenses you can bunch up or spread out as needed.

Items on Amazon Right Now for Standard Deduction 2009 Property Tax:

New tax cuts to go into effect in Oklahoma

The New Year will bring new tax cuts to Oklahoma.

Learn about the real estate tax deduction in this video!

Question: Are raffle enties tax deductible or can the entries be used as gambling losses?

I am refering to entries in church raffles, dream house raffles, etc. Raffles with large entry fees.

Answer: The IRS considers the “chance to win” a prize to be something of value received in exchange for the “contribution” to receive the raffle ticket. A charitable deduction, generally, may only be taken on donation amounts greater than value received, so raffle ticket purchases are not deductible as charitable gifts. See the table on page 2 of IRS Publication 526.

Entry fees to participate in games of chance are also not deductible as charitable contributions. The IRS considers the “chance to win” a prize to be something of value received in exchange for a donation.

Items on Amazon Right Now for Tax Deductible Raffle:

Pirate gold turned to green

I suppose this headline makes no sense for a Santa Claus Fund column. But don’t be so sure, mateys!

ART RAFFLE

Question: Can I deduct California use tax as a medical expense?

I itemize my personal income tax every year. I deduct lots of medical expenses every year because I am disabled. I buy stuff out of state and country. I have to pay use taxes on these medical purchases because they are out of state and country and are shipped to me. Can I deduct the use tax as a medical expense/deduction too? This question is for the year 2009. I will be deducting the sales tax for all purchases I’ve made this year in state as taxes already paid. I’m not sure if use tax is included in that particular deduction. Any help would be appreciated.
I keep extremely good records and receipts.

Answer: If you maintain detailed records of all of your medical expense purchases and can show where the use tax that you paid applies, you should not have any problem in applying these use tax payments to your purchases of medical supplies from out of state sources. However, be forewarned, the burden of proof rests upon your shoulders, the IRS will automatically assume that you are incorrect unless you can prove otherwise through detailed records of all of your purchases.

Items on Amazon Right Now for Medical Expenses Deduction 2009:

AARP TA

To get the 2009 income tax return prepared by the AARP Tax-Aide Volunteers, residents need to know if they received a $250 stimulus payment. Residents should check the deposits in their bank account between May and August 2009 if they don’t remember.