Q: I'm having a problem with my 2004 return, so I had to file an extension. My wife and I separated last year, and we're filing separate returns. I'm in the 25 percent tax bracket. If she claims the standard deduction as a head of household, do I need to do the same? B.S.F., Norfolk, Va.
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.
The sheer complexity of the tax code causes many people to put their faith in anyone who promises tax-reduction magic. That's why the IRS rings its warning bell each spring, identifying the top tax scams being pitched by unscrupulous tax promoters.
Q: One of my business associates says top-heavy requirements exist for employee group insurance plans as well as 401(k) plans. Is that true? J.A., Monterey, Calif.
If your company owns a weekend retreat where you like to enjoy the great outdoors, you probably know that the IRS's "entertainment facility" rules typically prevent you from deducting depreciation and related expenses for the place, even if you entertain clients there.
Q: My tax preparer said I didn't need to enter my Roth IRA contribution on my tax return. It seems odd that I wouldn't have to tell the IRS about this. Is he right? E.M., Madison, Wis.
Are you ready to knock down a deteriorating investment property or business building and construct a new building in its place?
Q: In a recent article, you said people could deduct mortgage interest on a refinanced loan up to the amount of the original loan balance. (See 2/7/05 issue.) Isn't the limit the outstanding amount of the loan before the refinancing? M.L., New York
Did you set up a charitable remainder trust (CRT) at the height of the bull market? If so, your returns may have slipped lately as the market fluctuates. You may be rethinking your idea of setting up a CRT in the first place.
Q: I bought Intel shares at different times and prices during the past few years. At the end of February and the first few weeks in March, I sold all those shares (and incurred some losses). All the stock sales occurred within 30 days. Can I still claim the losses? Norristown, Pa.
1. Keep receipts, not a list 2. No deduction for 'common' products