The IRS Deductions Blog

Question: Margin Interest Deductible In This Situation?

I know margin interest is only deductible up to the amount of net invesment income I’ve received. Does that mean if I have $10k in short term capital gains and $10k in short term capital losses for a given year–IOW, no overall net gain–that I can’t deduct margin interest? Thanks in advance.

Answer: In your example, you would have $0.00 in net investment income. Therefore, your investment (ie margin) interest deduction would be limited to $0.00. It gets carried foward to future year though.

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Expert tips for cutting credit card debt

Being smart about credit card debt can help the average investor bank a guaranteed 18%. Read on for tips from financial experts on how to tackle debt and grow you savings.

Interest is tax deductible!

Question: Tax deduction (itemized or standard) rules in Arizona?

I file as “head of the household” and my wife files as “married filing separately”. For federal return, I can take standard deduction while my wife itemizes deduction. Can I do the same thing for Arizona State return?

Answer: State returns are based on the federal return and must be filed the same for status.
You and your wife can only file married-Joint or Married-Filing separately on both returns.
The joint return has a lower tax liability,but the separate filing allows one spouse to take deductions that they can’t take jointly-ie:medical expenses.
The spouse with a lower income may meet the requirements to take such medical deductions and may therefore actually get a bigger refund overall.
It is best to figure all possible filings to see if a larger refund can be found or a smaller tax liability.

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Woman with Weston ties sentenced for mortgage fraud

Mary Ellen Durso, 54, of Milford, was sentenced on Wednesday, March 9, for her role in a mortgage fraud case that also allegedly involved Steven Kottage and Genaro Hathaway of Weston. David B. Fein, United States attorney for the District of Connecticut, announced in a written statement that U.S. District Court Judge Mark R. Kravitz sentenced Ms. Durso to three years of probation, the first six …

Itemized deductions extended

Question: Where can I purchase laptop insurance if I don’t have home insurance?

I know about Safeware, but I was wondering if there are other companies I can purchase it from, especially where I have the option of a deductible to lower the premium cost. This needs to be for coverage in the USA because many of the companies online who offer laptop insurance are based out of the U.K.

Answer: You can cover it on a renters insurance policy but that only covers theft.

You can take a personal articles policy that covers more. Most big carriers write that type of policy. Ask your auto insurance company if they offer it first.

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Homeowners relucant to get earthquake insurance

In the wake of Japan’s devastating earthquake and tsunami, many Californians are re-evaluating their decision to not buy earthquake insurance.

How To Buy the Right Homeowners Insurance for You : How to Choose a Home Insurance Deductible

Question: how do deductibles work in health insurance?

I’m self-employed, and I’m thinking about buying health insurance, but I’m a bit confused. My main concern is with regular doctor visits, not big accidents. Can someone explain to me:

1. What do they mean by “deductible”?

2. how do deductibles work?
(I pay for every doctor visit until I reach the i.e. $ 5000 in payments, then after that I pay only $ 35 per visit? or do I pay $ 35 per visit just for being covered, and only $ 5000 when I get into a big accident or am hospitalized?)

PLEASE, I need help

Answer: Deductibles are: the amount of money that you have to pay before the insurance company will pay anything for you or help you pay (as with co-insurance).

How it works: If you get a plan that “covers” doctor visits, then normally you would have like a $35 copay every time you go to the doctor (sometimes with a limit to how many times you can go a year). Now, lets say that after you visit the doctor, the doctor finds something really wrong with you and tells you to go to the hospital or you wind up in the hospital on your own. This is where your deductible will really come into play. The $5,000 is the amount you’ll have to pay on your own for hospital visits/surgery/doctor visits. This (normally) includes the copay. But then you might have co-insurance on top of the deductible which is normally 20-30%. That means that after you meet the deductible (pay $5,000 out of your pocket), then you will have to pay 20-30% of the remaining bill out-of-pocket and the insurance covers the rest.

Sorry if it’s confusing, but every health insurance plan is different, so I don’t know what restrictions yours has.

If you’re looking for a plan that mainly focuses on doctor visits, then I would make sure that you have a plan that has a low $ amount for copays and covers prescriptions.

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Cuts made to retirement plan

The Rowlett City Council has been discussing making cuts to its employee benefits for months.

Can I Deduct Job Seeking Expenses?

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Stay a Step Ahead of the Tax Collector

Some tax laws have changed, but many remain the same.

KEEPING IT SAFE (FB): “Deductibles”