Keep in mind that also, most of the time, you will have a loss due to expenses, depreciation, etc. Depending on your income levels, you might be able to take some of those losses or they will be carried forward indefinitely. If you sell the house and have some carryovers, those carryovers are released and can be taken against the gain.Thank you for your replies.
I don't think I'm going to claim it, I just wanted to make sure I won't get bent over if I ever get audited.
See post above. Also, any kind of loss on the sale of real property (unless it is your principle business) is considered personal and therefore, not deductible. Whether you rent it out or not, it seems that you'd have a loss you can't take.One more question, this is with regarding selling a home and taking a loss. What is the best way to do this to get some sort of tax benefit. I bought a house back in 1999 or so for 110k, current value per the real estate tax is about 85k. I believe if I just sell it for a loss, I can't write off the loss I would incur. Now, say if I rent it out for one year and then sell it, would I be able to claim the loss based off what I bought it for over a decade ago?
Keep in mind that also, most of the time, you will have a loss due to expenses, depreciation, etc. Depending on your income levels, you might be able to take some of those losses or they will be carried forward indefinitely. If you sell the house and have some carryovers, those carryovers are released and can be taken against the gain.
Also, in reality, if you're renting the rooms, you'd have to declare that income. Either way, I would file Sch E so you can offset the income with the expenses as EagleKeeper suggested.
Correct, you can not write off the loss as a homeowner.One more question, this is with regarding selling a home and taking a loss. What is the best way to do this to get some sort of tax benefit. I bought a house back in 1999 or so for 110k, current value per the real estate tax is about 85k. I believe if I just sell it for a loss, I can't write off the loss I would incur. Now, say if I rent it out for one year and then sell it, would I be able to claim the loss based off what I bought it for over a decade ago?
I'm using TurboTax to file my tax return (it's my first year filing taxes). I'm filing both Business & Personal since I'm self employed. However, I made a purchase with most of my money overseas, but there's no place where I can account for it as an expense. I can't find any help on this, I've spent hours searching. What should I be looking for, maybe you can point me in the right direction? Thanks.
Where do I report this income: 1099-MISC (box 2 royalties)?
It was from a patent sale royalty from a university. My first thought was 1040 Schedule E. That would be subject to the full income tax rate (due to federal and state AMT it is about 43%, ouch). However, I found this IRS Technical Advice Memorandum which states that patent royalties from a university are long-term capital gains. So, do I report the 1099-MISC on schedule D? Will the IRS expect it on Schedule E instead and complain?
Schedule E is intended for real estate income.
I would follow the Technical Advice guide. When you archive a physical copy of your return; I would attach a copy of the Technical article with the proper highlighting, to your return for reference.
I thought that even if you decide not to take depreciation, the IRS sees it as if you were able to but chose not to and will consider as if you did and recapture it? I need to go back to this, can't quite remember.As stated, one can use the Schedule E without taking the depreciation. the ability to write off expenses that actaully may exceed the income can be a benefit.
Maintenance, insurance, utilities, vehicle can all go on the Schedule E (proportionally) without requiring the use of the depreciation.
Technically you're supposed to report anything that you spent on that wasn't a qualified expense with the grant/scholarship money as income on your returns. You can disregard the loan money as you have to repay that anyway.concerning school/cost/grant/etc information
for spring and summer 2010 i only paid ~$200 out of pocket for tuition, as pell grants and a small scholarship award covered everything else at a community college
i started fall 2010 at a university, and received student loans, pell grant, and additional scholarship awards for my tuition and fees
some of that was used for non-required expenses (such as a laptop and some other things)
my "amounts billed for qualified tuition and related expenses" is quite a bit less than my total "scholarships and grants"
do I need to count some of that as income since it was spent on items not related to or required by school? how detailed do I need to be about it (how much receipt locating do i have to do?)?
ive got ~5500 in tuition and fee expenses but ~9000 in loans, grants and scholarships.
Property Tax Question:
I couldn't afford to pay the entire amount last year, so I opted to pay 1/3rd then and then the remainder 2/3 or 1/3 this year.
It's probably obvious - but I'd like to make sure:
Can I file the entire property tax amount for 2010 on this year's return or only list the amount I paid- and then file whatever I pay this year on next year's return [which would be 2/3rds of last year + full amount this year]
I seem to be in a somewhat odd situation.
I moved on 2/12 from NY to AL. I didn't work at all while in NY but received a few unemployment payments. Now the part that's odd is that I lived in AL and worked in AL, but NY is attempting to tax me for my entire earnings while I worked in AL? I paid them ~1.1k in state taxes over the course of the year, but according to TurboTax, I still owe around 2.2k because of them taxing my wages.
Is this right? I thought they can only tax your wages if you actually make them while living or working in the state. Shouldn't my only taxable NY state income be the unemployment benefits that I received?
Without getting into it too much, it sounds like a data input error.
1) How is the business defined/incorporated?
2) the information you provided is to vague to provide any guidance.
If you are uncomfortable with putting out the details here, feel free to PM.
Technically you're supposed to report anything that you spent on that wasn't a qualified expense with the grant/scholarship money as income on your returns. You can disregard the loan money as you have to repay that anyway.
Tax S/W will put the #s inthe proper place.Technically you're supposed to report anything that you spent on that wasn't a qualified expense with the grant/scholarship money as income on your returns. You can disregard the loan money as you have to repay that anyway.
ok. ill have to poke around and see just what i spent and what all the funds are approved for, then.
where/how do i handle this on my return once i figure up the amount or whatever? is there a particular form number or section type that it needs to be a part of?
Look at the rules for being a dependent.I have a friend whose parents are trying to claim her as a dependent. She doesn't believe they can. I'm pretty sure they can't do it either. It's a $700+ difference if she files it they way they want her to. Here are the facts:
She's 22.
She doesn't live with her parents. Her parents primary residence is in Colorado. She lives in their winter condo with one of her sisters.
She made about $10,000 this year working full time where I work.
She had to quit so she could go to school (parents forced her or they wouldn't help). She only went for 4 months (one semester) in 2010.
So, I guess the question is can they claim her as a dependent?
1) It's an LLC (just myself), and I work with various contractors
2) I'm using Turbo Tax Home & Business, and it's taxing me on income I don't even have anymore. I flew overseas and invested/purchased a property, paid in full. But I can't find a single spot to put the expense in. My ONLY option as of right now is to file it as a business expense (and I would still need some tips as I don't know where to find the proper category either) since the property can also be used as an office, but I was counting on filing it as a personal investment. Does it make a difference? I wanted to see if I can resolve it here, before paying for consulting.
As of right now it's asking me to pay Federal taxes way over what I even have left in my bank account. I need to find a way to input this expense, but the categories under "Personal/ Deductions & Credits" are:
Home/Mortgage (applies only if you took credit from a bank)
Child care, Earned Income Credit, Adoption Credit (none of those apply to me)
Charity (nope)
Investments (Retirement, Roth IRA or Traditional IRA)
Other Investment Expenses (only applies to things that cost you to make an investment like postage and other fees)
Job-related expenses
Sales taxes
Medical + Education
Cars
It's my first year filing taxes.
Any tips?
Thanks.