Q: My mother has extensive medical expenses that aren't fully covered by insurance. But the tax deduction doesn't do her much good because her income is low. Can I deduct the expenses if I pay them for her? L.L., Bangor, Maine
Small Business Tax
Section 179 vehicles should be a key part of your small business tax deduction strategies. Can Section 179 property fit in with your business tax strategies?
Let Business Management Daily help you get each and every rental property depreciation credit and business tax deduction you’re entitled to.
Q: I'm retiring soon and would like to move to a low-tax state. Do you know where I can find this information? J.B., Jericho, N.Y.
Q: I know that I must pay tax when converting my regular IRA to a Roth IRA. But do I have to pay tax on the full amount if I couldn't deduct some of the past IRA contributions? V.M., Phoenix
Q: I'm 73 and have three IRAs. Due to investment losses (a long story) in one of the IRAs, I have less in the account than the 33 percent required distribution. Will I still be penalized if I don't withdraw the entire amount? L.A.S., Dearborn, Mich.
If you've been thinking about donating your used car to charity, don't drop the idea just because of last year's law that put the squeeze on big-ticket donations. That law curbed your potential to be aggressive in placing a high value on the donated item. But by taking a different route, you can still get your money's worth.
Where can you turn if you're retired and strapped for cash? When you've exhausted all other possibilities, you may hear pitches to tap into your home's equity by securing a "reverse mortgage."
Is your child going off to college or prep school this fall? If so, write off the portion of the tuition that's attributable to health care as a medical expense. If the school doesn't automatically provide a breakdown of your child's tuition costs, ask for one.
When you own an S corporation, the company's gains are your gains and its losses are your losses. All the income and expense are passed through to the company's shareholders. But the IRS limits the amount that you can claim as a loss to your basis in the stock, plus any outstanding loans directly from you to the corporation.
Q: My father is retired and living in a retirement community. He insists that he doesn't have to file a tax return anymore. Is there a maximum age for filing? J.W., Old Tappan, N.J.
Big tax cuts aren't coming in 2005; neither the money nor the political willpower is there. But look for Congress, at the very least, to extend several tax breaks that are scheduled to go off the books at the end of the year