Hurricane season has begun, summer brush fires have plagued the West and other parts of the country are likely to be hit by other natural disasters this summer.
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.
Normally, you can't deduct the cost of traveling back and forth from work every day. The IRS considers this a nondeductible commuting expense. But that tax story may change if you're working at a location that's different from your regular workplace.
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
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
Q: I opened a Roth IRA on March 15, 2001. Can I start taking tax-free withdrawals this year? D.D., Mission Viejo, Calif.
As mortgage rates fell, you may have refinanced your home several times over the last few years. You can generally still deduct all the mortgage interest on refinanced loans, up to the amount of outstanding principal. But if you were forced to pay the alternative minimum tax (AMT), you may forfeit the tax benefits on a second or third refinancing.
Q: We're confused about your item regarding a separated spouse who files as a "head of household" and claims the standard deduction (see 4/18/05 issue). You say that if the situation was "the other way around," the person would be required to itemize. Can you elaborate? P.B.S., via e-mail
The bonus-depreciation deduction was great while it lasted, but it's gone for 2005. Still, you can generate top-dollar deductions this year when buying equipment and other business assets. That's because your not-so-secret weapon—the Section 179 expensing allowance—lets you write off most or all of the cost of most business assets in the very first year of ownership! Here's the lowdown on the rules and four ways to maximize your deductions.
Taxpayer use of the Telefile system, which allows you to use a touch-tone phone to file simple IRS forms, has dropped due to other electronic-filing options.
Divorce isn't a pleasant undertaking. But at least you can minimize the tax fallout by taking a few key proactive steps.