Home Office Expenses

Can I claim a home office deduction for the room I set up to maintain my investments in?

Asked Saturday, September 23, 2000 by an anonymous user

CPA Answer:

No. Unless this investing is your primary business, it cannot be claimed as a home office deduction.
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Rental Expenses

Can I deduct the cost of my trip to look at a rental property upstate?

Asked Saturday, September 23, 2000 by an anonymous user

CPA Answer:

Yes. Services for tax advice and/or income producing property are fully deductible as an itemized deduction, subject to the 2% limitation. If tax and non-tax items are discussed with your CPA or lawyer, try to get an itemized bill segregating the tax and non-taxable components.
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Rental Expenses

Are the costs for improving and repairing my house deductible?

Asked Saturday, September 23, 2000 by an anonymous user

CPA Answer:

No. House repairs and improvements on a personal residence are not deductible in the year paid.
While the repairs are not deductible, the improvements should be added to the residence basis to be used in the eventual gain or loss on the sale of the residence calculation.
Generally, residence basis would be the initial cost plus improvements from inception. Generally, Costs for improving and repairing your rental property are deductible in the year expensed.
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Losses

Is the loss on my sale of my house deductible?

Asked Saturday, September 23, 2000 by an anonymous user

CPA Answer:

No. There is no deduction allowed for a loss on a personal residence.
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Travel & Entertainment

Travel between my two jobs - deductibility

Asked Saturday, September 23, 2000 by an anonymous user

CPA Answer:

The travel from one job location to a second job location is deductible. The travel from your home to the first job location and from your second job location returning home is considered commuting and not deductible. For the current year you are allowed 55.5 cents per mile for business miles driven, which would be claimed on Schedule A as a miscellaneous itemized deduction subject to the 2% limitation.
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Filing Status & Requirements

Deceased Spouse - what is my filing status?

Asked Friday, September 22, 2000 by an anonymous user

CPA Answer:

You should file a "joint" tax return and include the deceased income earned and applicable deductions prior to your spouse's death.
A joint return is filed by yourself and the executor or administrator. Do not include income earned after the date of death. This income is considered "income in respect of a decedent" and is taxed to the Estate or beneficiary receiving the income in the year of the receipt.
The income must be reported by the Estate (if more than $600) on Form 1041. Speak to your local CPA about the personal and Estate tax returns that you need to file.
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Estate Tax

Form to expedite the closing of the decedent's estate

Asked Friday, September 22, 2000 by an anonymous user

CPA Answer:

The executor may file Form 4810 for a prompt assessment. Without filing Form 4810, the IRS has three years from the due date of the return to make assessments.
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Taxes - My Tax Return

Are the unemployment checks I receive reportable on my tax return?

Asked Friday, September 22, 2000 by an anonymous user

CPA Answer:

Yes. Unemployment benefits are fully taxable and should be included on your personal tax return.
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Form W-2

What amount on my W-2 form is my taxable wages ?

Asked Friday, September 22, 2000 by an anonymous user

CPA Answer:

Your taxable wages, tips and taxable fringe benefit compensation is listed in Box 1 of your W-2 form.
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