Personal Taxes
The most frequently asked tax questions related to Personal Taxes
Forms 1099 - attach to my tax return?
Asked Thursday, September 28, 2000 by an anonymous userCPA Answer:
You only have to attach Form 1099 if there is any withholding listed on the 1099 form.
Do not attach your copies of Form 1099 to your tax return if no withholding is listed on them.
Keep them with your copy of your tax return.
Do not attach your copies of Form 1099 to your tax return if no withholding is listed on them.
Keep them with your copy of your tax return.
Minister's housing allowances
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
Generally not. A housing allowance paid to you as part of your salary is not income if you use it in the year received to provide a home or to pay utilities for a home that you are provided.
The excluded amount must be considered reasonable compensation. Other criteria and provisions may apply. Speak to your local CPA for more details.
The excluded amount must be considered reasonable compensation. Other criteria and provisions may apply. Speak to your local CPA for more details.
Inheritance
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
Cash or property you received as an inheritance, gift or bequest is not included in your income tax return.
Any interest, dividend or rental you earned on the inheritance after receipt of the inheritance is taxable.
Any interest, dividend or rental you earned on the inheritance after receipt of the inheritance is taxable.
Age discrimination Settlement
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
A lump-sum payment for cancellation of your employment under the Age Discrimination and Employment Act is taxable income in the year you receive it. It is reportable on IRS Form 1040 as wages.
Are the costs of buying and installing my burglar and smoke alarms deductible?
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
No. Costs associated with loss prevention, such as for burglar and/or smoke alarms, are not deductible.
Can I claim a casualty loss from my auto accident that totally demolished my car?
Asked Wednesday, September 27, 2000 by an anonymous userCPA Answer:
The amount of your unreimbursed loss may be deductible. The deductible calculation is reported on IRS Form 4684. The deduction would be the amount of the loss, minus any insurance reimbursements minus $100 minus 10% of your Adjusted Gross Income Limitation. If the accident was caused by your driving drunk, then the deduction is disallowed.
Can I deduct all the fees I paid at my house closing as deductible points?
Asked Tuesday, September 26, 2000 by an anonymous userCPA Answer:
No. You should receive a Form 1098 slip from your bank that itemizes your deductible mortgage interest and deductible points on your tax return.
Service fees such as commissions, appraisal fees, notary fees, abstract fees, recording fees are not considered points and not deductible in the current year.
These costs are added to the purchase price of the house to increase your basis. The acquisition costs, non-deductible closing costs, plus improvements over the years will be the cost basis used to determine any gain on the eventual sale of the residence.
Service fees such as commissions, appraisal fees, notary fees, abstract fees, recording fees are not considered points and not deductible in the current year.
These costs are added to the purchase price of the house to increase your basis. The acquisition costs, non-deductible closing costs, plus improvements over the years will be the cost basis used to determine any gain on the eventual sale of the residence.
Can I claim my father-in-law who lives with me as a dependent?
Asked Monday, September 25, 2000 by an anonymous userCPA Answer:
There are five dependency tests that all must be met before you can claim a person as a dependent on your tax return.
The relationship, gross income, support, residence and joint return tests. Your father-in-law would qualify in the relationship test.
The relationship test includes child, adopted child, grandchild, stepchild, great-grandchild, brother or sister, son or daughter-in-law, father of mother-in-law, brother or sister-in-law, grand-parent, step-parent, stepbrother or stepsister, half-brother of half-sister, and blood relatives of uncle, aunt, niece or nephew.
Also included as a dependent is a foster child if he or she is a member of your household for the entire year except for temporary absence. Speak to your local CPA if you have a question about the relationship or the other four qualifying tests of claiming someone as a dependent on your tax return.
The relationship, gross income, support, residence and joint return tests. Your father-in-law would qualify in the relationship test.
The relationship test includes child, adopted child, grandchild, stepchild, great-grandchild, brother or sister, son or daughter-in-law, father of mother-in-law, brother or sister-in-law, grand-parent, step-parent, stepbrother or stepsister, half-brother of half-sister, and blood relatives of uncle, aunt, niece or nephew.
Also included as a dependent is a foster child if he or she is a member of your household for the entire year except for temporary absence. Speak to your local CPA if you have a question about the relationship or the other four qualifying tests of claiming someone as a dependent on your tax return.
Are the travel costs I incur to monitor my rental property deductible?
Asked Saturday, September 23, 2000 by an anonymous userCPA Answer:
Yes. Expenses incurred in managing investment property are deductible even if the property is not currently producing income. You will list this deduction on Schedule E, part I expense line for auto and travel.