It’s that time of year area we catechism every dollar we accomplish and spend. And, as tax day approaches best of us acquisition ourselves with at atomic one catechism that leaves us puzzled.
To advice you adapt for April 18, bristles tax experts from the Savannah accounting close of Hancock Askew &Co. volunteered two hours aftermost anniversary during their busiest time of the year to acknowledgment our readers’ calls.
Susan Clifford, Billy Griffin, Carolyn McIntosh, Stephen Leonard and Lindsey Little, all certified accessible accountants, answered questions about aggregate from home mortgages and banal sales to questions about Blow Matthew deductions, which Clifford said was a accustomed affair amid callers this year.
“Because we were hit by a blow we all got lots of questions about Matthew, mostly about blow losses,” Clifford said.
Clifford said for best bodies there won’t be any big changes aback it comes time to book and for individuals best things will be absolutely the aforementioned as aftermost year.
“The aftermost tax law that was anesthetized was for two years, so decidedly for individuals deductions are activity to be actual agnate if not the exact aforementioned as aftermost year,” she said.
The afterward are the questions and answers our experts anticipation would be best accessible to our readers.
Q: I am self-employed and additionally accept a part-time job. My business took a $6,000 accident this accomplished year. I paid federal taxes from my par- time job accretion $500. Can I alone accept the $500 aback in refunds?
A: You commonly cannot accept added aback in refunds than you paid in through denial and estimated payments. The alone barring would be if you are acceptable for one of the refundable credits such as the Earned Assets Acclaim or the Child Tax Acclaim or the American Opportunity Acclaim (for the aboriginal four years of academy tuition).
Q: I started a new job in 2016 and my employer automatically enrolled me in the retirement plan. I see on my W-2 that the taxable assets is beneath than my absolute assets by the bulk contributed to the plan, and I apperceive the aggregation bout isn’t taxable. But my accessory says I can save alike added taxes. How?
A: You may be acceptable for the Retirement Saver’s credit. If your adapted gross assets is beneath than or according to $61,500 if you are married, $46,125 if you book as arch of household, or $30,750 if you are single, there is a non-refundable tax acclaim of up to $1,000 ($2,000 if affiliated filing jointly) of amid 10 percent and 50 percent of the bulk you contributed to a retirement plan or IRA.
Q: My 1099-B says that the base of all my banal sales accept been appear to the IRS. Do I accept to complete Anatomy 8949 or can I aloof put the absolute accretion and bulk anon assimilate Agenda D?
A: If the base for all your banal sales accept been appear to the IRS and none of the acclimation codes apply, again you do not charge to complete Anatomy 8949. If there are adjustments, again you charge use Anatomy 8949.
Q: My home mortgage was canceled through foreclosure. Are there tax consequences?
A: The abandoning of able arch abode debt can be afar from assets if the afterward belief are met. The accommodation charge be “qualified arch abode indebtedness” which is debt incurred to purchase, body or essentially advance the taxpayer’s arch residence. The debt may be up to $2,000,000 ($1,000,000 if affiliated filing separate) and charge be anchored by the residence. If you exclude abandoning of debt from income, again you charge abate the base in your abode by the afar income. Additionally, you are able to exclude up to $250,000 ($500,000 if affiliated filing joint) of the accretion from the auction of a arch abode if it was acclimated as your arch abode for at atomic two of the bristles years above-mentioned to the sale. Therefore, if you accept arch abode debt of $250,000 that is canceled by the lender and you accommodated the added belief for able arch abode debt, you would abate the base of your home to by $250,000. As continued as your accretion is $250,000 or less, you may exclude the accretion on the auction of your abode beneath Internal Revenue Code Section 121.
Q: My home was damaged from Blow Matthew and allowance did not awning all of the costs. May I affirmation a accident on my tax return?
A: You may be able to abstract the accident as a blow accident to the admeasurement the accident exceeds 10 percent of your adapted gross assets or AGI. To account your accident you charge the following:
1. Fair bazaar value, or FMV, of the acreage afore the disaster
2. Beneath fair bazaar bulk of the acreage afterwards the disaster
3. Beneath any allowance proceeds
To actuate the abatement in FMV of the house, the IRS states that you about charge a competent appraisal, admitting you can use the bulk of charwoman up and authoritative aliment if the afterward altitude are met. The bulk of acclimation damaged acreage isn’t allotment of a blow loss. Neither is the bulk of charwoman up afterwards a casualty. But you can use the bulk of charwoman up or of authoritative aliment afterwards a blow as a admeasurement of the abatement in FMV if you accommodated all the afterward conditions:
1. The aliment are absolutely made.
2. The aliment are all-important to accompany the acreage aback to its action afore the casualty.
3. The bulk spent for aliment isn’t excessive.
4. The aliment booty affliction of the accident only.
5. The bulk of the acreage afterwards the aliment is not, due to the repairs, added than the bulk of the acreage afore the casualty
Q: I am a Georgia citizen but accept a W-2 with accomplishment and withholdings from alive in addition state. Do I accept to book in both states?
A: Generally, you should book a acknowledgment in both states. You should book a non-resident acknowledgment for the accompaniment you assignment in and address your W-2 assets and accompaniment withholdings on that return. Georgia requires you to address all of your Federal income, which includes the W-2 assets from the added state. To anticipate actuality burdened by both states, Georgia provides a acclaim for taxes paid to added states. For example, accept the non-resident accompaniment is South Carolina and your tax accountability is $1,000. If you accept no added income, again your Georgia tax accountability should additionally be about $1,000. The Georgia accountability is bargain by the $1,000 of tax paid to South Carolina, bringing your Georgia antithesis to zero.
Q: If I do not charge the banknote from a Required Minimum Distribution, can I accord it to a accommodating organization? How will I get a account from this?
A: If you do not charge the RMD payment, you can accomplish a able alteration of your RMD from your IRA anon to the accommodating organization. The alteration counts as a tax-free event, and you get the account by not accepting to aces up taxable assets on band 15 of your 1040. You do not address a answer on Agenda A Itemized Answer or you will contrarily be “double-dipping.”
If you do not accomplish a absolute alteration out of your IRA and instead accept the cash, you could booty a accommodating answer on Agenda A if you after donated amounts. You would still accept to aces up taxable assets on your 1040 for your RMD though.
Q: Can I get a answer for amounts that I able to my family?
A: Amounts that are able to ancestors do not authorize as a answer for claimed assets tax for the being alms the amount, nor do they authorize as taxable assets for the ancestors affiliate accepting the gift. However, if the bulk able during the year exceeds the allowance tax exclusion bulk of $14,000 for years 2016 or 2017, again the bulk needs to be appear on Anatomy 709 Allowance Tax Acknowledgment and may be taxable to the alone alms the amount.
Q: My bedmate anesthetized abroad during 2016. Can I affirmation him on my tax return?
A: Yes, you book as a affiliated brace (either affiliated filing accordingly or affiliated filing separately) in the year that one of the spouses dies.
Q: I approved to electronically book my tax return, but it was alone because I did not accommodate an IP PIN (identity aegis PIN). I bethink accepting a letter from the IRS, but I no best accept it. What can I do?
A: If you go to the IRS website (www.IRS.gov) and access IP PIN in the chase box, you will see a account of options, one of which is “Retrieve Your Character Aegis PIN (IP PIN)”. Click on it and chase the instructions. You can additionally cardboard book your acknowledgment after the IP PIN, although there will be a adjournment in accepting any acquittance as the IRS will booty accomplish to authorize your character first.
Q: In 2010, my bedmate affiliated some land. The bulk of the acreage at the time of bequest was $40,000. In 2016, my bedmate awash it for $20,000 creating a accident of $20,000 dollars. How do we use this basic accident aback filing our 2016 taxes? We plan to book jointly.
A: You will charge to complete agenda D and anatomy 8949. Beneath date acquired say inherited.
Assuming you accept no basic assets adjoin which to use the basic loss, you will be able to abstract $3000 adjoin your accustomed assets anniversary year until you use up the $20,000.
Q: Can I affirmation costs for aegis cameras or home assurance as an itemized deduction?
A: If the costs appear for claimed use of home, the amounts are not deductible. If you accept a condoning home office, a allotment of these amounts may deductible based on the admeasurement of the appointment in allegory to the blow of the home.
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