The IRS Deductions Blog

Posts Tagged ‘irs’

Question: is standard real estate tax deduction in 2010?

irs schedule Ll included a $1000 standard deduction for real estate taxes in 2009.
Is this deduction extended to 2010? Latest schedule L on IRS site doesn’t show it.

Answer: No. The additional standard deduction for real estate taxes or sales tax paid on a new car was not extended for 2010.

There is still a Schedule L, but only for sales tax paid in 2010 for a car purchased in 2009.

Items on Amazon Right Now for Standard Irs Deduction 2009:

TaxWatch: Gas prices prompt IRS to raise mileage rates

The IRS is making an unusual midyear hike to the standard mileage rate used to deduct the cost of business-related driving.

IRS TAX TIPS: e-FILE (ASL, CAPTIONS & AUDIO)

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:

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

Question: Is the first time homebuyer credit a refundable tax credit?

A friend purchased a foreclosed home in late December 2009 (first time homebuyer) for $180,000 largely using savings for the purchase price. She was unemployed for a significant portion of 2009, and has very little taxable income for that tax year. It was so little that I think her standard deduction and exemptions will largely offset her taxable income and leave her with no tax due. If she files for the first time homebuyer credit with her 2009 tax return, is it a refundable credit that will allow her to get the full $8,000 even if she has little or no tax liability this year?
Any detail you can provide or website link to show her the refundable credit background is appreciated.
She was unemployed because she was attending school for advanced degree. Had enough savings from earlier jobs to pay for most of it in cash. So, probably ok for her, but you are right, not ok for others!

Answer: Yup! Fully refundable!

Items on Amazon Right Now for Standard Deduction And Exemptions:

THE CONTROVERSY OVER INFLATION: IS THERE MORE THAN WE ARE AWARE OF?

Is there More than We are Aware of?

Reps. Ward and Marumoto Addresses SB570 Relating to Taxes

Question: Simple question about itemized/standard deduction?

Hello,

I was just wandering can I choose to file my standard deduction as well as adding on some itemized things to basically boost my return? Some tax guy from quicktax told me that I can and to come and see him but from what ive heard its either one or the other not both.

Please advise, thank you for your time!!!
That being said thanks to Judy, where can I find a list of adjustments or credits that I can use while filing just standard deduction. If you have an exact webpage I can go to that would be nice. Also, how would I file adjustments and credits when entering my w2 on turbotax?

Sorry to bombard with questions. Thanks so much!!!!

Answer: No, it’s itemized OR standard deduction, not both.

That said, there are a number of items, called adjustments and credits, that you can use to lower your tax even if you don’t itemize. A few of these are IRA contributions, student loan interest paid, child care credits, education credits, and residential energy credits – and this is by no means a complete list.

Items on Amazon Right Now for Itemized Deduction Or Standard Deduction:

Report: IRS lax in checking auto buying deductions

The IRS did not require proof from people claiming deductions for new vehicle purchases allowed under the 2009 economic stimulus act, and has been slow to investigate claims for excessive deductions, according to a government watchdog report.

Business Taxes

Items on Amazon Right Now for Standard Deduction 2008 Irs:

Red Tape: IRS snafu means refunds in limbo

An IRS glitch is holding up tax refunds for perhaps thousands of taxpayers for months.

How to Complete a 1040A Tax Form : How to File a 1040A as Head of Household