Commonly Omitted items from basis

Continuing our discussion about basis,which determines depreciation, amount of gain or loss, There are many things people forget to add to their basis. Cost isn’t the only factor. You also add in ANY improvements made This includes and furnishings that transfer with the property such as dishwashers, lighting fixtures, stoves, burglar alarms, automatic garage doors …

Commonly Omitted items from basis Read More »

How to avoid some gain on your home without meeting all the Universal Exclusion rules

Avoiding gain on the sale of a principal residence: If you own and occupy your principal residence for 2 our of the last five years, you can avoid up to $500K of gain (if married) and up to $250K of gain if single. Moreover, you can’t have used the exclusion within the last two years. …

How to avoid some gain on your home without meeting all the Universal Exclusion rules Read More »

Tax Reform Proposals

News you can use: There actually has been some movement on tax reform in recent days, which means you are all about to be potentially shafted. Congress wants to lower the top rates to 25%. However, doing that while raising revenue will require a number of deductions to be either eliminated or scaled down. Here …

Tax Reform Proposals Read More »

Upcoming state sales taxes on internet purchased and downloads

News you can use: Purchases may become more expensive in the near future. Right now, if you buy good though the internet, Federal laws prohibit sales tax being imposed unless the seller is located in the same state as the customer. This has causes “brick and morter” businesses to complain since they are at a …

Upcoming state sales taxes on internet purchased and downloads Read More »

Understanding Basis

The next few posts deal with the concept of “Basis.” This is a crucial topic since it determines whether you have a gain or loss on the sale of property and the amount of depreciation you would get if you rent out property or use it in your business.Sadly, this concept is more complicated than …

Understanding Basis Read More »

Avoiding the myth,” I can’t afford the monthly payments by buying over renting”

Have you ever heard someone say about buying a home that , “they can’t afford the monthly payments?” This is usually a myth! Why? When you buy a home, you get additional deductions for interest and property taxes that you don’t get when renting. These deductions can help create a tax refund up front each …

Avoiding the myth,” I can’t afford the monthly payments by buying over renting” Read More »

Affect of gifts, joint ownership and inheritance on basis

As noted below, basis is used to compute gain and loss from sale of any property. It also is the figure used for depreciation. Thus, the higher the basis , the better it is for everyone. There are a number of transactions that people don’t realize can increase basis: Gifts: Did you know that when …

Affect of gifts, joint ownership and inheritance on basis Read More »

%d bloggers like this: