Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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Answer Tax QuestionsIs the loss I incurred on the sale of my car deductible?
Asked Friday, September 29, 2000 by an anonymous user
No. The loss on the sale of your car would be a sale of personal use property
and therefore not deductible.
Capital loss carryover - married filing separate filing status
Asked Friday, September 29, 2000 by an anonymous user
The capital loss carryover from your previous year's married filing joint return may only be claimed on the married filing separate return of the spouse who originally incurred the loss.
You cannot use 50% of the loss if it originated from your spouse's sale of a asset.
You cannot use 50% of the loss if it originated from your spouse's sale of a asset.
Depreciation - building and land purchase
Asked Friday, September 29, 2000 by an anonymous user
The purchase price must be allocated to the building and to the land. The amount allocated to the land is non-depreciable. The amount allocated to the building is depreciable and reported on IRS Form 4562.
Can I use the loss I incurred on my investment property as an installment sale?
Asked Friday, September 29, 2000 by an anonymous user
No. Losses may not be deferred using an installment method.
Depreciation - start date for depreciation of rental property
Asked Friday, September 29, 2000 by an anonymous user
You should use the date the rental property is available to be rented. It does not start the day the first tenant moves in.
Generally, residential rental properties use a straight line 27.5 year life with a midmonth convention and nonresidential real properties use a straight line 39 year life with a midmonth convention to determine the depreciation deduction that is reported on IRS Form 4562.
The midmonth convention assumes the property was placed in service in the middle of the month and is built into the IRS depreciation table.
Generally, residential rental properties use a straight line 27.5 year life with a midmonth convention and nonresidential real properties use a straight line 39 year life with a midmonth convention to determine the depreciation deduction that is reported on IRS Form 4562.
The midmonth convention assumes the property was placed in service in the middle of the month and is built into the IRS depreciation table.
Depreciation - computers
Asked Friday, September 29, 2000 by an anonymous user
The depreciation year classification of a computer is 5 year property (5 year useful life)for MACRS depreciation purposes.
Depreciation - refrigerator and stove in a rental property?
Asked Friday, September 29, 2000 by an anonymous user
The depreciation year classification of the refrigerator and stove and other appliances you use in your rental property is 5 year property for MACRS depreciation purposes.
What is depreciation year classification of a car I use for business ?
Asked Friday, September 29, 2000 by an anonymous user
The depreciation year classification of a car used for business is 5 year property (5 year useful life)for MACRS depreciation purposes.
Can I use my partnership passive K-1 loss to offset some of my interest income?
Asked Friday, September 29, 2000 by an anonymous user
Generally not. Interest income is defined as portfolio income, not passive income. Portfolio income includes interest, dividends, and gains on the sale of investment property. Passive K-1 losses can only be used to offset other passive income, except when the $25,000 special loss allowance for persons with active participation in rental real estate entities can be utilized. Speak to your local CPA about your K-1 loss deductibility.
