The IRS Deductions Blog

Posts Tagged ‘mileage’

Question: IRS Deductions Independent Contractor Real Estate Agent?

I am a Real Estate Agent and 2007 was my first year working in this field.

I file my taxes jointly with my husband who gets a regular w-2.

I made $300 this year, which is not enough to get a 1099 misc, but I am going to file this money anyway so I can claim my deductions.

I have mileage expenses, office supplies, advertising, etc. that would show a loss of several thousand dollars for the year.

Is it okay to file this way, or am I going to raise a red flag since I didn’t have much income but did have a lot of expenses?

Answer: File away–no issues.

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IRS issues standard mileage rates

The Internal Revenue Service has issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Mileage-Log.mp4

Question: Is a capital loss carry over applied to deduct income when filing taxes considered a tax credit?

Reason I ask is I’m planning on not itemizing for 2008 next year and I have capital loss carry over to apply however. I want to take the standard deduction and also use the carry over. Can I still do that even though I’m not itemizing?

Answer: A capital loss carryover is NOT an itemized deduction. It’s an above the line adjustment and applies whether you itemize or not. You do need to file Form 1040 to take it but itemizing or not itemizing isn’t a factor.

And no, it is NOT a credit, just an adjustment that reduces your AGI and therefore your taxable income.

Items on Amazon Right Now for Standard Deduction 2008:

Matrix Alt.Inv.Strat – Feeder Fund Structure

Matrix Alt.Inv.Strat – Feeder Fund Structure

Mario Diaz-Balart offers Property Tax Relief

Items on Amazon Right Now for Irs Deductible Mileage Rate:

IRS announces 2011 standard mileage rates

The Internal Revenue Service today issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Tax Tips & Advice : How to Deduct the Cost of a Vehicle Used in Business

Question: Can I deduct 2008 and 2009 property taxes on my 2009 tax Schedule A/B?

Local Tax assessors allow me to physically pay property taxes in the assessed year, or within 2 months of the following year. If I pay two years worth of taxes in the same year (i.e. 2008 taxes in January 2009 and 2009 taxes in December 2009), my deductions would be significantly higher. Note that my standard deduction is very similar to my Itemized Deductions, so there is very little advantage to itemize (unless I can move my property tax payments to increase every-other year’s itemized value).

Answer: Yes, this is a valid way to shift Deductible Expenses from one year to another. The IRS only cares about when you spent the money – not the date it was due to your town or city. You could also do it in reverse – pay 2010′s taxes in December of this year.

And, you can prepay your mortgage a few days early to pick up one more interest payment – just know it will be one less the next year.

You can also do the same with your state income taxes but it is trickier to do as you don’t want to trigger an underpayment penalty with your state. Overwithhold on your state income taxes so you get a bigger deduction, then when you get a refund, recognize the refund in a later year.

You also might want to look at categories such as student loan payments, education expenses, and if you are self-employed, any business expenses you can bunch up or spread out as needed.

Items on Amazon Right Now for Tax Standard Deduction 2009:

Aquilex Holdings LLC Reports Third Quarter 2010 Financial Results

Aquilex Holdings LLC today announced its financial results for the three and nine months ended September 30, 2010. These results are included in Aquilex’s third quarter Form 10-Q as filed today with the SEC and posted on the Company’s website for which the link is as follows: www.aquilex.com/company/investor-relations.

Tax Tips from the IRS – Standard Deduction for Non-Itemizers

Question: How I deduct the mortgage interest in my tax return? Should I forgo my standard deduction in that case?

We just bought the home. I wounder how we should treat my home related expenses.

Answer: Mortgage interest and other deductions are calculated on Schedule A of Form 1040. Figure out your deductions (which will also include property taxes, state income taxes, donations and others) and take the standard or itemized, whichever is higher.

Items on Amazon Right Now for Tax Deduction Standard:

Would This Stimulus Idea Kill Charities?

This sounds like a genuinely new idea: stimulate the economy by multiplying the standard deduction by ten.

Tax Advice: Itemize or Standard Deduction