Brush up on the home office deduction

Brush up on the Home Office Deduction You probably update your home on a regular basis. When was the last time you updated your understanding of the home office...

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Journaux, Juridique, Anglais

Par MyTax Fella

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Brush up on the Home Office Deduction You probably update your home on a regular basis. When was the last time you updated your understanding of the home office tax deduction? For instance, you may remember that, in the past, the part of your home used as an office might not qualify for the home sale exclusion. If so, you ll be happy... Plus

Brush up on the Home Office Deduction You probably update your home on a regular basis. When was the last time you updated your understanding of the home office tax deduction? For instance, you may remember that, in the past, the part of your home used as an office might not qualify for the home sale exclusion. If so, you ll be happy to know this changed years ago. Unless your office is in a separate building on your property, the exclusion of gain on the sale of your home ($250,000 for singles and $500,000 for married filing jointly) is generally available. Another rule that may need dusting off: Depreciation recapture. It s the term for having to pay tax on some or all of the depreciation deductions you took, or could have taken, for your home office. When you sell your house, those deductions decrease your basis and are subject to capital gains tax. In effect, you get a current deduction reducing ordinary income during the years you operate your home office. At the time of s Moins

Par MyTax Fella

Some IRA terms you should know

Some IRA Terms You Should K now The changes to laws governing Roth conversions that took effect in 2010 brought IRAs to the forefront of tax planning...

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Journaux, Juridique, Anglais

Par MyTax Fella

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Lectures: 0

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Some IRA Terms You Should K now The changes to laws governing Roth conversions that took effect in 2010 brought IRAs to the forefront of tax planning conversations. Those conversations will likely continue this year, as some changes to your new Roth can be made through October 2011. Here are three terms you may hear, along with brief... Plus

Some IRA Terms You Should K now The changes to laws governing Roth conversions that took effect in 2010 brought IRAs to the forefront of tax planning conversations. Those conversations will likely continue this year, as some changes to your new Roth can be made through October 2011. Here are three terms you may hear, along with brief explanations. • Conversion: A conversion is the act of moving your retirement account assets from one type of IRA to another. You can convert all or part of a traditional IRA to a Roth IRA. Just remember the amount you convert is taxable, assuming you have no basis in your traditional IRA. • Recharacterization: After making a Roth conversion, you can choose to transfer the assets back to your traditional IRA. Recharacterizing cancels the initial conversion as if it never happened, which can be useful when the value of the assets decline after you first convert. While the loss itself is not deductible, you ll avoid paying tax on the full amount of th Moins

Par MyTax Fella