Tax experts ...?
I paid past its sell-by date taxes that I owed last year…. contained by the amount of $2400.00.…..can I claim that on my taxes ?Thanks for the replies …
Answers: Was the $2400 Federal or State?
If it was Federal - No presumption. Federal taxes are never deductible on the federal return.
If it was state - Itemized supposition for the taxes but not any penalty and/or interest.
Do the proceeds from the public sale of an adjectives home necessitate to be reported on your taxes?
I've received a 1099-S for the proceeds but was beneath the impression that inheritance underneath a certain dollar amount does not involve to be reported on your taxes.Answers: Spock is right on and the sell have NOTHING whatsoever to do with offering taxes.
The fact that you adjectives the property has nought to do with this transaction, the deal in does.
the inheritance itself is tax free to you ... the gain, if any, on the adjectives property is a capital gain.
what you involve to do is find out, from the executor of the estate, what the value of the home be on the date of valuation for estate tax purposes. [the date of valuation is the date of loss or the day exactly 6 months following, as elected by the estate.]
this is your basis surrounded by the property. you pay charge on the capital gain, which is the mart amount less selling expenses smaller amount the basis.
absolute adjustments apply if you rented the house between the valuation date and mart date, etc.
Let's say the 1099-S is for $100K.
The adjectives basis is $95K and the selling expenses be another $6K.
You would use 1040 schedule D.
Long possession.
line 8
column for date acquire: "inherited"
column for date sold: from 1099-S.
column for price sold: from 1099-S.
column for cost basis: adjectives value + selling expenses.
column for gain/loss: subtract.
If the house be sold as quickly as possible and nobody lived nearby after the death, you can even claim a loss.
Inheritance (the plus when you inherited it) is not taxable. Capital gain (the money you made by selling it for more than your "basis") is taxable and must be reported on Schedule D. However, if you lived here long enough and group certain other criteria, an exemption may apply. See "selling your home" within the instructions.
State duty file give somebody the third degree?
My daughter lived in Michigan from 1/07 until 10/07. She next moved to Indiana. When filing her taxes online, it asks for her residence as of 12/07. It afterwards has her residence as Indiana. Should she folder Indiana taxes or Michigan? I asked Turbotax (I am using their site) and they didn't know what to tell me. Has anyone have this situation when filing? P.S. she worked within Indiana the entire year.Answers: On her state return she should mark part of the pack year resident. Then it should ask what dates she lived where on earth. If not then she wants to look up the actual tax law for both states and hope they do not double dip. If it is a problem see a professional preparer in your nouns.