The IRS Deductions Blog

Archive for October, 2009

Question: Can I claim Tax Deductions without my name being on the loan?

Recently My parents got a divorce and asked me to take over the mortgage payments, tax payments etc. We need to keep the house since I am the oldest (thank god I graduate college). I have 2 sisters and a brother to take care of. My mom might be getting lay-off soon too. The title was transfered to me and I’ve been making payments. We did not want to re-finance since the interest is now higher and that would cause the monthly payments to increase. We talked to the bank and they have not gotten back on whether they are willing to agree to a novation.

I’m a single female trying to take care of my siblings. Any advise would be great. PLEASE HELP.

Answer: If I were you, I would talk to a Tax Accountant who offers a free consultation. Being that you are responsible for all these family members and paying a mortgage that ordinarily would have been a part of a divorce settlement (depending on what state you are in) may add a curve to things. Also, if the loan is a fixed rate and only title has been transferred without the approval of the lender, a due on sale/transfer may apply, in that most fixed rate mortgages are not assumable (transferable) and could be called due, (to determine if your loan is subject to a due on sale or upon transfer of ownership clause refer to your loan Note, Deed of Trust/Mortgage documentation to verify if your loan is subject to such a clause). PLUS Don’t press the lender for advice or an answer anymore, at least not until you speak with a tax professional. I hope everything works out well for you and your family:)
About property taxes: if your property taxes are not impounded/escrowed (payed with monthly mortgage payment) you should be able to claim that expense, but again, talk to a tax professional about that as well

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International taxation is a two way channel of extracting tax from the corporate houses based locally as well as globally. Under this scheme, the tax can be subjected to local agendas of individual countries along with offshore taxation all relating to extraterritorial income. As per government rule books, the “limitation” rules include all forms of territorial, residency or even exclusionary system. But, in the process of mitigating the harass tax laws most governments have built up a hybrid system that holds characteristics of two or more. Yet, you can’t assume things on international basis at this aspect. The laws of the land differ completely as per the owner of the individual land.

Thorough insight of International Taxation concept

Many times the corporate houses are subjected to double taxation concept- same income is taxed by different countries. And, at other times there is no taxation- where the corporate house has to pay tax to no country. It is not luck that plays role here. Instead, the individual corporate houses extract clauses from the rule book of the individual government itself and save tax from the prying eyes of jurisdiction in counteract! You are subjected to tax on local as well as worldwide income. At many times you get tax exemption or reduction or foreign credits, if you are paying taxes to other jurisdictions as well.

Online professional help

Most of the people shift or re- characterizes income, so that they can reduce taxation. But, you have to go through several strict rules during the process of shifting income among the commonly controlled parties. These rules are epithet as “Transfer Pricing Rules”. Locally based businessmen have different rules to follow. The complicacy is nevertheless in any case, but, gets more twisted with the multinational sectors. These sectors have to deal not only with individual countries, but also the local law of land of the other country as well that has signed common treaty with local government. So it’s no man’s land in the complicated world of tax. Big and small businessmen adapt professional helps, most of whom are easily available online. These advisories are professionals with expert knowledge of the financial and tax and law related domains. They are chartered accountants, auditors and tax advisors. Use their expert advises to save your hard earned money from the grueling hands of taxes.

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7 steps to a 2010 Roth IRA conversion

Uncle Sam is offering a set of perks on IRAs, starting in 2010. Here’s how to capitalize on them.

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Question: Can I sue for depreciated value of a car?

Last year, me and a friend drove upstate (florida). I was falling asleep so I gave him the wheel. He crashed my car and recived a ticket for speeding. My insurance covered it. But I can’t even sell my car since I owe more than it’s worth. Can I sue him for the deductible I paid for and the depreciation after it was crashed?
Since I was corrected, I meant the “diminution in value” due to crash.

Answer: You can sue for the deductable on your insurance, but not depreciation.

The crash did not cause the depreciation.

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Halliburton Announces First Quarter Earnings of $0.28 Per Diluted Share From Continuing Operations, Excluding the …

HOUSTON—-Halliburton announced today that income from continuing operations for the first quarter of 2010 was $252 million, or $0.28 per diluted share, excluding the previously disclosed impacts of the recent devaluation of the Venezuelan Bolívar Fuerte.

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Question: Will I have to pay the deductible?

I drove my father’s car to work and parked it in the mall’s parking lot. When I was leaving for home there was a scratch and a dent on the side of the car, someone had hit the car getting in or out of the spot next to where I parked and just left. I had a police report made that day, the report claimed it to be a hit and run on private property. My dad doesn’t really care about it but I feel guilty and want to get it fixed for him. I just want to know if anyone thinks I’ll have to pay a deductible because the car and insurance is under my father’s name, I had driven the car to the location even though no one was driving it when the damage was made.
forgot to add:
we live in Michigan and are required to have no-fault insurance for vehicles.

Answer: The deductible will apply since it was a hit and run, and their is nobody to subrogate against.

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Volunteers to hit streets for donations

Volunteers for Greene County Crimestoppers will be at out around the county on Saturday to collect money to help the local Crimestoppers organization continue their fight against crime.

hit ‘n’ run car wreck

Question: Medical Expenses Tax Deductions for Expatriates?

I live overseas permanently, but file US Income Taxes. According to the IRS, I know I can deduct my medical expenses as long as they are 7.5% or more of my gross income. However, can I still do this even though all of my expenses are incurred outside the U.S.?

Answer: You are allowed the same medical expense deduction as if you were living in the United States. Consult IRS Publication 54 (linked below) for more detail.

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Last baby of ‘09 recognized, too

With all the hype surrounding the first baby born in the New Year, one baby is being recognized for being the last born in 2009.

Tips & Advice for Income Tax Deductions : Introduction to Medical Deductions for Income Taxes