Tag Archives: Generally Accepted Accounting Principles

Deducting Mortgage Payments

Today TaxMama hears from Brandi in Indiana. She asks. “Can you deduct your mortgage payment for a rental property after the insurance, interest and taxes have been deducted?”

HOA Income

Today TaxMama hears from Jan in Washington State who tells us. “I am on the board of a Homeowners Association. We take in about $20,000 and our expenses are $14,000 leaving $6,000 to go for future road maintenance. We also earn about $1,500 in interest. Can we deduct depreciation for our gate and camera (assets) […]

Writing off Software

Today TaxMama hears from Rodney in Texas who asks. “How do you determine the difference between a deduction that you can take in full in the year of purchase vs the deduction that is spread over many years? I am trying to relate this to software because some software is used without changing for many […]

Small Businesses Benefit from 2008 Economic Stimulus Act Depreciation Provisions

Courtesy of John Berger at the Internal Revenue Service Businesses that have bought assets – or are planning to do so – in 2008 can benefit from the same legislation that is delivering payments to individuals this year. The Economic Stimulus Act of 2008 increased the maximum amount for depreciation under section 179 of the […]

Tooling Around

Today TaxMama hears from Mario in New York, who wants to know. “How do I deduct employee expenses such as expensive tools? IRS says for items lasting over a year, they should be depreciated. It looks like forms 4562 and 2106 carrying over to Schedule A should be used, but the tools are not listed […]

Section 179

Today TaxMama hears from IRA in California, who tells us . “This year I will have over $80,000 in Section 179 deductions for my sole proprietorship. Is this deduction a preference item for AMT purposes?”

Assessor vs FMV

Today TaxMama hears from Tim in California with this issue, “Can we use fair market value (FMV) to determine land valuation, leaving the rest of the purchase price as the value of the new rental house, for depreciation purposes? The assessor’s ratio usually isn’t in our best interest.”

Roommates and Taxes

Today TaxMama hears from Shawn in North Dakota who is worried: “I just purchased a home as my primary residence. Several people live in this home and pay a monthly amount to help cover the mortgage. Am I required to report this as rental income even though this is my primary residence? I believe if […]

IRS Announces 2008 Standard Mileage Rates; Rate for Business Miles Set at 50.5 Cents per Mile

Courtesy of the Internal Revenue Service WASHINGTON – The Internal Revenue Service today issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, 2008, the standard mileage rates for the use of a car (including vans, pickups or […]

S Corp Auto Expense

Today TaxMama hears from Peter in Massachusetts who has this question. “I am a 100% owner of my S corporation. I used my car, registered in my name, for my business and commuting. I keep a detailed record of mileage and expense. Can I deduct the vehicle expenses on my 1120S?” http://www.audioacrobat.com/play/WSKWQgVf

30 Year old Basis

Today we hear from Joe in Iowa who tells us. “We have lived in our house for over 30 yrs. In April 2007 we began renting part (20%) of our home to a friend. How do I determine the basis of the rental portion (20%) of our home?”