The IRS Deductions Blog

Posts Tagged ‘calculator’

Question: Loan Origination Fee less than 1% of mortgage amount: 1 point for tax deduction purposes?

I bought a house last year and paid about $150 less than 1% of the mortgage amount as a loan origination fee. Now that I am preparing my tax return, does this fee count as a point paid? Are partial points allowed? What should I do?

Answer: Was the fee charged as a percentage of the loan amount or was it coincidentally about $150 less than 1%? If it wasn’t expressly calculated as a percentage (or fraction of a percentage) then it isn’t deductible.

See IRS Form 530 linked below.

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Tax legislationheads to Obama

share: digg facebook twitter WASHINGTON — Congress approved the most significant tax bill in nearly a decade late Thursday, overcoming liberal resistance to continue for two more years tax breaks enacted under President George W. Bush and to provide a fresh boost of federal support to the tepid economic recovery. The package, brokered by President Barack Obama and Republican leaders in the wake …

Mortgage Insurance Tax Deduction 2010, 2011

Question: Canada Tax Question-New Construction?

My husband and I are building a house, and it should be completed before the end of December 2010. I know I am able to write-off or use our GST paid as a tax deduction on our income tax forms. I was just wondering what else may be eligible to write off? This has been a self-build, but we have had to hire 2 separate contractors for different work, and we have had some friends come and help out for the price of a few meals. Are these kinds of things tax deductible as well? Thanks in advance!

Answer: None of it is tax deductible. Building a house has no impact on your tax return.

If it’s a principal residence, it will never have any impact on your return. If it’s a rental unit, keep track of your expenses (labour doesn’t count), so you can claim depreciation, and show the profit when you sell it.

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Businesses can get a holiday gift _ Tax Deductions

Small business owners can get holiday gifts _ tax deductions _ during the holiday season

Volunteers of America Sidewalk Santa 2010

Question: Negative Income Tax Question?

I didn’t work at all the whole year of 2007. I used my savings to pay for my mortgage and other expenses. Being that I had “zero” income for the year 2007, I never filed my income tax but am preparing to do so now. My tax write-off for Mortgage Interest and Property tax is about $20,000. Being that I had no income but $20K+ in deductions, would my negative income be carried into my filing for the year 2008 similar to a capital gains loss? I also have the max $10K deduction for my child’ss 529 contribution to add to the Mortgage Int/Property Tax Deductions bringing my adjusted income to $0 (income) – $30,000 (deductions) = -$30,000 (adjusted income)
I am back to work this year and would have the same $30,000 deduction for 2008…. does that technically give me a combined $60,000 deduction for 2008?
Thanks

Answer: When people have income and file their taxes, the money they get back is a refund – meaning they get some of the money back that they paid for income taxes. If you didn’t contribute anything for income tax, there’s nothing to be refunded.

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Tax Guide To Master Limited Partnerships

This MLP user’s guide will tell you the how and why of taxation on energy investments like Kinder Mo

001 2009Nov04c

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How to owe nothing on your federal tax return

Do you struggle to pay your taxes in April? Or, do you have the money, but hate waiting until your forms are filled out before you know how much you’ll have to pay?

Today’s Mortgage Rates: Which home loan is best?

Question: What tax forms do I need?

I’ve been doing my taxes online for the past few years but my taxes are simple and I realized that even paying the $12.95 or whatever fee to do them online is still not worth it. So I’m gonna head down to the library tomorrow and pick up the forms to do them myself, but like I said it’s been years since I’ve done them myself. I’m 23, not married, no kids, all I have is a pair of W-2s and a T-1098 (I think that’s what it was called, it’s a deduction for college payment).

So what forms should I pick up to do my state and federal returns?
I live in Minnesota btw

Answer: you will need a 1040 and a 8863 for the education credit. You can go to irs.gov and click on free efile to file your tax return free. I would try that. If you live in a state that has a income tax you will need those forms also.

Christine- EA Master Tax Adviser Check out my profile

**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you have provided.

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NANCY KENSINGER: Letter to the Editor

In 1935, President Franklin D. Roosevelt proposed and implemented Social Security (FICA). The program was to be completely voluntary. Participants would pay only 1 percent of the first $1,400 of their annual incomes.

Animalia Angelicus (ROTAK) – Chapter 2 – Larry Degala, author