Well fellow Anandtechers, it's that time of year again. And for the second year in a row, myself, Eaglekeeper and others are offering our vast knowledge (cough, cough) and understanding of the tax code to provide assistance on your questions for filing your 2004 tax paperwork. But first, the disclaimer:
Please understand that the service provided here is not to be considered as the final say in any tax related question or issue. We advise everyone to take caution with accepting the answers posted here and seek a good tax accountant or tax lawyer when necessary, especially those pesky complicated questions. Additionally Anandtech nor Anand have endorsed myself or the other benevolent responders in this thread. So please don't complain to them if you feel like you got a bogus answer. Finally, this thread is NOT meant to offer advice nor do your taxes for you. It is solely to help clear up questions, concerns or misunderstandings that you may have concerning the 2004 Tax Code. None of the responders take responsibility for your final tax preparation. You do!
Oh, and please, try not to PM me or any of the other responders (usually Eaglekeeper and alchemyst). Instead, post your question here for all to see, because chances are there is another member with a similar issue.
Now, with all that said, be aware that there were some recent tax law changes that will effect those that itemize. Other than these and the normal increases/decreases for deduction, exemptions, floors and ceilings and the like, it was pretty quiet on the personal income tax front this year.
The recent changes:
1) Sales tax is allowed as an itemized deduction this year (and next year only). While it can be a little complicated, the main points of this new deduction is:
a. Publication 600 is the main reference for this deduction and contains the tables for those of us who didn't keep our receipts all year long.
b. anyone who itemized can take it, regardless of what state you are in, BUT, if you live in a state with local/state income tax you have to choose to use the sales tax or income tax deduction. You CAN'T have both.
2) This is the final year of the SUV Business Use Tax loophole. For vehicles purchased this year and over 6000 pounds gross weight, this is the last year you can expense, as business Section 179 expense, the total cost (up to $100K) of the vehicle. the weight and percentage business use is key, but it is a great way of reducing your Schedule C business income if you did it.
3) Congress just passed a resolution that will allow you to deduct Tsunami relief charitable contributions made in 2005 in 2004. You will need a receipt and you have to itemize in order to take this charitable deduction.
For those of you who enjoy torturing yourself, I present the IRS website.
I plan on posting other relavent info in this post, but for now, let the questions begin!
NEWS:
Free File is up and running at the IRS website.
Please understand that the service provided here is not to be considered as the final say in any tax related question or issue. We advise everyone to take caution with accepting the answers posted here and seek a good tax accountant or tax lawyer when necessary, especially those pesky complicated questions. Additionally Anandtech nor Anand have endorsed myself or the other benevolent responders in this thread. So please don't complain to them if you feel like you got a bogus answer. Finally, this thread is NOT meant to offer advice nor do your taxes for you. It is solely to help clear up questions, concerns or misunderstandings that you may have concerning the 2004 Tax Code. None of the responders take responsibility for your final tax preparation. You do!
Oh, and please, try not to PM me or any of the other responders (usually Eaglekeeper and alchemyst). Instead, post your question here for all to see, because chances are there is another member with a similar issue.
Now, with all that said, be aware that there were some recent tax law changes that will effect those that itemize. Other than these and the normal increases/decreases for deduction, exemptions, floors and ceilings and the like, it was pretty quiet on the personal income tax front this year.
The recent changes:
1) Sales tax is allowed as an itemized deduction this year (and next year only). While it can be a little complicated, the main points of this new deduction is:
a. Publication 600 is the main reference for this deduction and contains the tables for those of us who didn't keep our receipts all year long.
b. anyone who itemized can take it, regardless of what state you are in, BUT, if you live in a state with local/state income tax you have to choose to use the sales tax or income tax deduction. You CAN'T have both.
2) This is the final year of the SUV Business Use Tax loophole. For vehicles purchased this year and over 6000 pounds gross weight, this is the last year you can expense, as business Section 179 expense, the total cost (up to $100K) of the vehicle. the weight and percentage business use is key, but it is a great way of reducing your Schedule C business income if you did it.
3) Congress just passed a resolution that will allow you to deduct Tsunami relief charitable contributions made in 2005 in 2004. You will need a receipt and you have to itemize in order to take this charitable deduction.
For those of you who enjoy torturing yourself, I present the IRS website.
I plan on posting other relavent info in this post, but for now, let the questions begin!
NEWS:
Free File is up and running at the IRS website.