If you took out a home improvement loan when purchasing your house, check and see if you have a tax deduction coming your way! Ensure you understand the difference between renovations and repairs. Improvements or renovations are tax deductible. On the other hand, repairs are not. The Home Off...
Do you pay taxes when you sell a house? Understand how to calculate your taxable gain, including how to adjust for your home's cost basis, the impact of home improvements, and strategies to maximize your home-sale tax benefits under IRS rules.
Many businesses have loans, either for automobiles, business equipment or lines of credit. However, having an expense category of “Loan Payment” is a dead giveaway that the business owner doesn’t understand that only the interest portion of the loan payment is tax-deductible. ...
But now you can only deduct interest on a home equity loan if you use the money to buy, build or substantially improve the house. The interest is deductible on up to $750,000 of qualified residence loans, which includes both your mortgage and a home equity loan used for home improvements...
are required.So, if you’ve had to purchase or renew a landlord or rental license for the property, that cost is deductible.Furthermore, some localities will require a vacation rental license for short-term rentals such as seasonal, AirBnB, etc. These licensing costs are deductible as well...
Most business furniture and equipment can’t be written off as a deductible expense. If you buy a new desk, you can’t deduct its cost. But you can deduct the depreciation on business furniture and equipment. Items in a home office that depreciate include: ...
Keeping detailed, accurate records of all tax-deductible expenses. Making a contribution directly into a retirement account but doing it at the end of the year when there is no adjustment for withholding during the year. That said, a bigger refund isn’t always better. “Since a ...
When to Itemize vs. Take the Standard Deduction Anyone with deductible expenses that exceed the standard deduction should itemize. For most people, that means having mortgage interest or property taxes to deduct. However, even owning a home is no guarantee someone will be able to item...
You can deduct half of your self-employment tax from your net income when you’re calculating your income tax. So, if your self-employment tax amounts to $3,500 for the year, for instance, at tax time $1,750 would be deductible on your Form 1040. Keep in mind that this doesn’t ...
These items are no longer tax-deductible unless they relate to a loss in a federally declared disaster area. This can include areas affected by hurricanes, floods, and wildfire victims. The Internal Revenue Service (IRS) does not consider normal wear and tear under this category.10 ...