Individuals who owe tax with their Form 1040 or extension might owe more than they expected. The federal income tax is a pay-as-you-go tax. If you wait until you file your return to pay your tax, penalties may apply. There are two ways to pay as you … [Read more...]
Tax Deductions: Real Estate Professionals and Rental Losses
In a previous post we explained that rental losses are generally considered passive, and may not be deductible against non-passive income. Most individuals can only deduct up to $25,000 of rental losses against non-passive income, and that amount … [Read more...]
Tax Deductions: Working Away From Home
Deductible travel expenses are the ordinary and necessary expenses of traveling away from home for your business, job or profession. To qualify, the travel must be away from the general area of your tax home for a period substantially longer than an … [Read more...]
Tax Deductions: Deduct up to $25,000 of Rental Real Estate Losses
Suppose you own a house which you rent out to tenants. The last few years you've made a profit on the rental. This year, the tenants left, and it took several months to replace them - months with no rents coming in. On top of that, utility costs were … [Read more...]
How to Deduct Moving Expenses on Your Tax Return
Moving your household and starting a new job can both be very stressful events. But, the IRS is there to take some of the sting out of the situation by giving you moving-related tax breaks. If you meet the requirements, you can deduct certain moving … [Read more...]
Tax Deductions: Alimony Payments
If your marriage breaks up and you make payments to your ex-spouse, those payments may qualify as deductions on your tax return – or they might not. On the other hand, payments which are deductible by one spouse are included in the taxable income of … [Read more...]