Posts Tagged ‘sales’
Sales Tax Deduction Tax Return
July 10th, 2011
Question: Rental (Loss) deduction at time of sale – Is it tax deductable?
Lets say I bought the property for $100k, rent it out for 2 year and then sell it for the same price at the end of the year for $100k. That year, I took $7k of depreciation, total rental loss of $10k carried forward (real rental loss before depreciation of $3k). Thus, my real gain/loss at time of sale is ($100k – $7k of depreciation – $10k total rental losses carried forward) = -$3k losses. Is this loss of -$3k upon of sales deductible somewhere on my tax return?
Answer: What depreciation did you take the first year you rented the house? Let’s say you took $3,000 depreciation the first year and $7,000 the second year (although in fact those numbers are not right).
Anyway, if there were no other changes to the basis of the property, your adjusted basis in the house is $100,000 minus all depreciation taken up to the sale. So in this example, your adjusted basis is $90,000.
If you then sell the house for $100,000 (assuming this is the amount realized without any other additions or subtractions), then you have a capital gain on the house of $10,000 and report this gain on Schedule D via Form 4797.
The operating loss on the house of $3,000 does not figure into the capital gain or loss on the house. The operating losses offset other gains or are carried forward.
Finally, let’s suppose you sell the house for $80,000 instead of $100,000. You now have a capital loss on the sale, and that capital loss can offset gains or be carried forward.
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Workspace Grp PLC – Announcement re: Rights Issue
Workspace Grp PLC – Announcement re: Rights Issue
Recovery: First-Time Homebuyer Credit
Sales Tax Deduction Taxes
December 2nd, 2010
Question: Can someone explain the state sales tax deduction to me?
I live in PA, where they do take out income tax. I bought a car though in December, and I got a record from the state that lists those taxes. So what are my options here? Could it really save me money tax return time? Is this a federal or state thing?
PS it is not a brand new car, its a 2007 so i know that federal tax break doesn’t apply. I’m asking more about for state taxes
I am confused because changing the amount in my state taxes in trying to compare income vs sales, I get nothing different…the return stays the same..is this a state issue?Answer: The American Recovery and Reinvestment Act permits taxpayers to take a deduction for state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is available on new vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009. In states that don’t have a sales tax, the law provides a deduction for other taxes or fees paid. This deduction is available whether or not a taxpayer itemizes deductions on Schedule A.
The deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle. The deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000. Taxpayers with higher incomes do not qualify.
Taxpayers who make qualifying new vehicle purchases this year can estimate the deduction with the help of IRS Publication 919, How Do I Adjust My Withholding? Lines 10a to 10k on Worksheet 10 take into account purchases above the $49,500 limit, as well as the reduced deductions for taxpayers at higher income levels.
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| | TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 TurboTax Home & Business was designed to help you take full advantage of your personal and business deductions so you get the biggest tax refund possible, double-checking for accuracy and identifying missing deductions and credits. Includes free Federal E-File. Everything you need to easily do your personal and business taxes. Guides you Step by Step through Self-Employment Income, Deductions,… |
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How much will I owe IRS next April?
Taxpayers have a right to know and plan their tax obligation to their government. Withholding tabl
Posted in Sales Tax Deductions | 
Tags: finance, irs, sales, sales tax deduction, sales tax deduction taxes, sales.tax, tax, taxes | 
No Comments »Sales Tax Deduction On Tax Return
November 18th, 2010
Question: Real estate taxes, where to claim?
I’m using a tax prep software and during the process I’m asked to list the taxes I paid per the tax form mailed to me by my mortgage company. I don’t pay taxes by way of my mortgage, rather I have the money put aside to earn interest and then pay the taxes myself every 6 months when they are due.
The software and tax form asks the amount of taxes paid based on box number whatever of this tax form I got from the mortgage company, but as I stated, that box is empty. How do I claim these taxes on my tax return? If I list them in this box entry and yet the IRS sees that entry as zero or empty, won’t that throw up a red flag and possibly generate an audit?
Do I simply enter these taxes under the “sales taxes paid” deduction?
Answer: Even though you had your property taxes escrowed, you should still have the info of what was actually paid for your real estate taxes in 2008. Look on the mortgage interest 1098 form you received from your lender, or consult your local county tax collector to confirm the amount paid for last year.
Even if you do not have enough deductions to itemize, starting in 2008 the IRS will allow you to claim the standard deduction plus $500 property tax credit for individuals and up to $1000 property tax credit for married filling jointly couples.
Do not put this under sales tax. And don’t be concerned if the info isn’t on the 1098 your lender reports to the IRS – impounding/escrowing real estate taxes is a common practice.
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Cropper(James) PLC – Half Yearly Report
Cropper(James) PLC – Half Yearly Report
eFile Use Tax Tutorial
Posted in Sales Tax Deductions | Tags: advice, reference, relief, sales, sales tax deduction, sales tax deduction on tax return, sales.tax, tax, tax return | No Comments »Irs Tax Deduction Form
September 10th, 2010
Question: If I had a babysitter last year, and paid cash, no deductions, what form do I file with the IRS?
I heard its the 1096 and then the IRS sends the babysitter the form 1099, but I’ve also heard that I would just put this as an itemized expense, and the babysitter would use a Schedule C, and this would be susceptible to self employment tax.
Answer: How would the IRS know to send your babysitter a 1099 if you paid them in cash? Child and dependent care expenses help you on your taxes, so I suggest that you claim as much as you can.
Here’s a link to an irs.gov site that hopefully explains what to do – 4th question down.
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Area nonprofits could lose tax status
The Internal Revenue Service has notified more than 2,200 nonprofit organizations across West Virginia that they are in danger of losing their tax-exempt status if they do not file the necessary paperwork to protect it.
Tax Forms & Deductions : How to Calculate an IRS Estate Tax Deduction
Posted in IRS Deductions | Tags: irs tax deduction, irs tax deduction form, online, preparation, sales, tax, taxes | No Comments »Tax Deduction Sales Tax
July 25th, 2010
Question: Do sales Tax Deductions carryover to the next year?
My sales tax deductions exceed my AGI, can I carry the excess over to next year?
Answer: No.
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| | TurboTax Home & Business Federal + e-File + State 2010 – [Old Version] $5.50 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa… |
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| | J.K. Lasser’s 1001 Deductions and Tax Breaks 2012: Your Complete Guide to Everything Deductible $12.42 A straightforward guide to taking tax breaks and deductions on your 2011 tax returnCompletely revised to reflect important changes in this year?s tax laws, J.K. Lasser?s 1001 Deductions & Tax Breaks 2012 will help you take advantage of every tax break and deduction that you may be entitled to. This comprehensive guide is clearly organized by subject matter so you can easily find situations that ma… |
Map featuring this weekend’s yard sales
Earn a tax deduction and help change lives! Drop off any of your gently used items at our area Triad Goodwill locations or schedule a pickup for large items.
New Car Buyer’s Deduction