The IRS Deductions Blog

Posts Tagged ‘finance’

Question: I cant make sense of this FAFSA question and all the help provided refers to US tax forms…?

What was your parents’ adjusted gross income for 2008 (question 86)?

Answer: Adjusted gross income (AGI) is income *minus deductions.*

How much someone earns is not the same because deductions haven’t been figured yet.

Items on Amazon Right Now for 2008 Tax Deduction Tips:

For some, tax season not yet over

You filed your federal tax return, cashed your refund check and likely aren’t thinking about ta

Tips from the IRS – 2008 tax return–don’t miss out on free money!

Question: Can u rollover Personal Tax Deductions into the next year? Or can only businesses do this?

I was wondering if u can save tax deductions from year to year to make sure that u are paying in the most optimal tax bracket? I have hear of businesses doing this… But I want to know if this is possible for individuals. Please post links that i can read up on for more information. Your answers are appreciated. Thank you.

Answer: Yes, in a way. You can move deductions by changing when you pay them. For example, make all your charitable contributions in January and December of even years, give nothing in odd years. If you have medical bills at the end of the year, but not enough to deduct, pay them in January and maybe you will have enough to deduct in the next year. If your real estate taxes are paid in installments and one or both of them are due near the end of the year you may be able to do a similar thing (if you pay them directly).

Items on Amazon Right Now for Individual Tax Deductions:

Kitco News

(Kitco News) — A movement is afoot in the U.S. Congress to revise or repeal a portion of the health-care act, passed earlier in the year, that critics say has costly implications for bullion and coin dealers and also raises privacy concerns.

IRS Self Employed Tax Deductions & Write Offs 2010, 2011

Question: Are settlement costs from a reverse mortgage deductible on my income taxes?

Answer: Mortgage interest is deductible in the year paid. That being said, it’s important to note that the IRS considers points to be amortized over the life of the mortgage (this is in fact a grey area, some tax courts have held that the points are deductible up front.) How much money are we talking? Is it worth fighting with the IRS? If so, go to a CPA for preparation. If not, decide whether you want to risk it or not.

Items on Amazon Right Now for Mortgage Deductible:

Should Home Ownership Be the American Dream?

There are bigger questions to ask about how we approach home ownership in the U.S.

Mortgage break costs – are they tax deductible? for property investors?

Question: Are entry fees into charity poker tournaments tax deductible?

Let’s say you’re playing in a tournament with a $200 buy-in. $100 of the fee goes to the charity, the other $100 goes into the cash prize pool. Is any of the $200 buy-in tax deductible?

Answer: Dear TJ: The $100 designed to go to the charity is deductible if the charity is a recognized 501C listed entity. Remember the winnings are reportable as income but if you itemize you can write off your losses up to your winnings. Be sure to get registered with the tourney officials or the casino if held at a casino.

This advice was prepared based on our understanding of the tax laws in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

Items on Amazon Right Now for Tax Deductible Charities:

Caddy-For-A-Cure with Lee Westward

Press Release Caddy-For-A-Cure is auctioning for charity two one-day ‘inside the ropes’ caddie opportunities for the 2010 World Golf Championships-Bridgestone Invitational golf tournament. The tournament will be held Aug. 3-8 at the Firestone Country Club in Akron, Ohio.

Wolf Creek Foundation – Hill Air Force Base & charities

Question: State sales tax paid on an auto. Deductible?

I will be itemizing my taxes for the first time this year as a new homeowner. I purchased an auto last year but only used my standard decuction. Is it possible to deduct taxes paid last year on the auto in 2007 on my 2008 taxes this year. Thanks in advance for any help.

Answer: No.

Each year (1/1-12/31) stands on its own.

Items on Amazon Right Now for Deductible Auto Sales Tax:

PPG Reports Strong Second Quarter 2010 Financial Results

PITTSBURGH—-PPG Industries today reported sales for the second quarter of $3.5 billion, an increase of 11 percent versus the prior year’s second quarter. Second quarter reported net income was $272 million, or $1.63 per share.

Tax Break for New Car Purchases and Tax Relief for Hardworking Americans with IRS Problems