The IRS Deductions Blog

Posts Tagged ‘home’

Question: When a company loses a case, is that amount pre-tax or post-tax?

I was reading about HP’s $14.5 million settlement today and it got me curious.

When a company loses a case or settles, is this money coming from pre-tax revenue (and hence, would be a tax deductible cost)? Or is it coming from post-tax profit?

Do any of the following factors affect the answer?
- It’s a settlement vs loss/guilty?
- Paid to the government (as a fine) vs paid to another company/individual?
- Punitive damages vs compensatory damages.

A related question I have is, for example, whether a traffic ticket given to a driver working for a company at the time of the ticket is a “cost” that can be written off by the company?

Answer: Pre-tax.

Items on Amazon Right Now for Deductible Settlement Costs:

$4.8 million insurance settlement ‘fair’ but not nearly enough to fix Taunton City Hall

Nothing, it seems, is simple when it comes to calculating how much it costs to repair a 100-plus-year-old municipal building damaged by fire, smoke and water.

Credit & Debt Consolidation : Ways to Reduce Debt

Question: Mortgage Interest Tax Deduction ?

The house is titled in my husband’s name, but the loan is still in mother in law’s name. My husband and I have paid the mortgage all year. Who claims the income tax deduction, my husband or my mother in law?

Answer: Interest statement from the mortgage company will come in mother in law’s name. Better ask your tax preparer that question. I’d be interested to hear the answer! what my first thought was: Legally mom owns the house and your purchasing from her on land contract…she claims the mortgage interest..but she also has to claim your payments as income. But I’m not certain this is correct. Never seen a mortgage company that would title a home in one name and carry the mortgage in another……

Items on Amazon Right Now for Income Tax Deduction Mortgage Interest:

Form 8396, mortgage interest credit (for holders of qualified mortgage credit certificates issued by state or local governmental units or agencies) (SuDoc T 22.51:8396/) …

Home mortgage interest deduction : for use in preparing … returns (SuDoc T 22.44/2:936/) …

Mortgage/tax-Saving Handbook $1.75 …

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH…

Tax Break for Mortgage Debt Is Ready for the Wrecking Ball: View

Americans think differently about housing now: Developers have cut back on speculative projects and mortgage bankers view lending standards more soberly. Another important change in attitudes emerged this week when people were asked how they feel about giving up the ability to deduct mortgage interest from their personal income taxes.

Watch This Before You Prepare Your Income Taxes

Items on Amazon Right Now for Standard Deduction Wikipedia:

Who Benefits from Mortgage Deductibility?

Much discussion about raising tax revenues has been about cutting deductions and tax credits; one of the biggest of these is the MID.

Question: 20% cost of my home was financed thru personal installment loan. is the interest tax deductible?

80% of the cost price was financed thru mortgage loan. So I have two notes, mortgage and installment loan. Can the interest on the installment loan tax deductible? If so can you please also provide reference to the source preferably IRS.

Answer: By definition a personal loan is not secured by anything but your signature. If that is the case, the interest on it is NOT deductible. If the 20% loan is actually a mortgage loan, i.e. it is secured by the property, then it would be deductible.

Items on Amazon Right Now for Irs Deductible Mortgage Interest:

TurboTax Basic Federal + e-File 2010 – [Old Version] $4.99 The Intuit TurboTax Basic Tax Year 2010 Software automatically double-checks to help make sure your return is accurate. It features downloadable Audit Support Center, which provides guidance on everything you need to do if you are contacted by the IRS. And finally, it files your return electronically and prints it on plain paper….

IRS provides mid-year tax tips

The Internal Revenue Service reminds taxpayers that summer is a good time to consider mid-year withholding adjustments and money-saving summer tips. Tax planning now may provide a lower tax bill later.

Renting vs. Buying a home

Items on Amazon Right Now for Gift To Client Deductible:

Tax Savvy for Small Business $21.98  The essential small business tax strategy book for the savvy entrepreneur Named “Best Tax Book” by Entrepreneur magazine Understanding the tax system is vital to the health of every small business. Virtually every decision a business makes has tax consequences that can affect its bottom line — and the IRS is always watching. Develop the best tax plan for your small business, learn the ins and…

Tax Savvy for Small Business $8.00 The essential tax-strategy book for entrepreneurs who call themselves “boss.” Named a “Best Tax Book” by Entrepreneur magazine Develop the best tax plan for your small business, learn the ins and outs of the tax code and create comprehensive strategies to get back the most from the IRS. Understanding the tax system is vital to the health of every small business. Virtually every decision a busine…

Income Tax Fundamentals 2009 (with TaxCut Tax CD-ROM) $4.98 Learn the skills you need for effective individual income tax preparation with the proven forms approach and hands-on workbook format. INCOME TAX FUNDAMENTALS 2009, 27th Edition provides a concise, practical, and time-tested introduction to the most important areas of tax law. Easy-to-read sections incorporate real examples using actual tax forms. This edition presents intriguing, real, and often …

Paterson nonprofit group temporarily shuts to recover from back-to-back burglaries [raw video]

Well of Hope, which hosts a Paterson drop-in center and run a clean-needle exchange program, sustained damage and loss to theft after two audacious burglaries.