Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
Can I claim a home office deduction if I own a Cooperative apartment ?
Asked Tuesday, October 03, 2000 by an anonymous userCPA Answer:
Yes. If you meet the exclusive and regular use criteria, ownership of a cooperative apartment will qualify for a home office deduction. You may deduct depreciation based on your stock interest in the cooperative. Speak to your local CPA about your home office deductibility.
Depreciation - Real property
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
Depreciable real property is categorized as section 1250 property. For sales of section 1250 property, the part of long-term capital gain attributed to depreciation is taxed at a maximum tax rate of 25% and reportable on IRS Schedule D.
Is the loss I incurred on the sale of my car deductible?
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
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.
Depreciation - start date for depreciation of rental property
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
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 - furniture in a rental property
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
Furniture would be considered 5 year property (having a 5 year useful life)for MACRS depreciation purposes in a rental property. Furniture and equipment, such as desks and files, would be considered 7 year property ( having a 7 year useful life)for MACRS depreciation purposes in a non-rental property such as in an office.
Depreciation - computers
Asked Friday, September 29, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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.