By linlin587 May 22, 2014
Could you please tell me what form I file for tax preparation of the 2013 taxes. My mother passed away in 1998. I was given her house but it is still under her name. I have been making the house payments since the house was bought in 1997. it is my understanding that I can claim the interest on the house but it has to be a certain form. Could you plase tell me what form this is? Linda Landry (linlin587@aol.com) ...read more
Real Estate Tax Deduction— There is an additional standard deduction for those who don’t itemize their deductions, but pay real estate taxes. The additional deduction amount is equal to the amount of real estate taxes paid up to $500 for single filers or up to $1,000 for joint filers. This deduction is available for the 2008 and 2009 tax years and increases your standard deduction. For more tax information go to: www.cpacsr.com ...read more
By Clifford S. Russell, CPA December 15, 2008
How Do I? Recharacterize a Roth conversion, and why would I want to? If you converted your traditional IRA to a Roth IRA earlier this year, incurred a significant amount of tax liability on the conversion, and then watched as the value of your Roth account plummeted amid the market turmoil, you may want to consider undoing the conversion. You can void or significantly lower your tax bill by recharacterizing the conversion, then reconverting your IRA back to a Roth at a later date. Careful timing in using the strategy, however, is essential. What is a recharacterization? "Recharacterization" is simply the term given to the transaction in which you undo your original conversion from a traditional IRA to the Roth. Even if you converted your entire account to a Roth, you do not need to recharacterize the entire amount that you converted from your traditional IRA to the Roth and can choose to only recharacterize a portion of the amount. To roll the money back and then forward into new Roth IRA, you must undo the original Roth conversion, wait at least 30 days (discussed in further detail, below) and then reconvert the IRA back to the Roth. This move may save you significant tax dollars since your IRA account is worth less due to the decline in market values. For more information go to: http://www.cpacsr.com/newsletter.html ...read more
By Clifford S. Russell, CPA December 15, 2008
December is always a busy month with a flurry of holiday and year-end activities. In the rush of events, it's easy to forget that the end of the year is also a very important time for tax planning. This year is no exception. Indeed, 2008 has been one of the busiest years for federal tax legislation. Congress not only created some new tax breaks, it also extended many others. Many of these tax incentives are temporary so if you want to take advantage of them, you need to set your plans in motion now. You also need to keep in mind that a new Administration will take office in January and 2009 is likely to see more changes to the Tax Code. At this time, details are still sketchy but our office can give you some clues as to what direction tax policy may go in 2009. For more information go to: http://www.cpacsr.com/newsletter.html ...read more
By Clifford S. Russell, CPA December 15, 2008
Many people give money to family members as a gift in their time of need or if they come into a substantial amount of money. Giving money to a family member can sometimes be taxed; however, there are ways to avoid this this and give money to family members free of tax. ...read more
Many people have opted to learn to file their taxes themselves. This is a great way to save money, and it puts people in control of their own tax return. The process can be confusing, but there are enough resources to learn the correct method. ...read more
