7th Annual Anandtech Tax Time Thread

[Beev]

Yep, that's what it ended up being. There was an error where I owed them money from 3 years ago, and I had been paying monthly on it. They simply took the remainder out of the refund and now I don't owe them anything.

 

[JohnnyMCE]

Federal tax question. In 2009 i bought a home and paid certain closing costs. Surveyor, Notary, Appraisal, Etc. Can i deduct these costs on my federal taxes and if so where in the forms would i claim them?

Please note I am a first time home buyer and I have already taken advantage of the first time home buyer credit in an amended 2008 return.

 

[EagleKeeper]

Federal tax question. In 2009 i bought a home and paid certain closing costs. Surveyor, Notary, Appraisal, Etc. Can i deduct these costs on my federal taxes and if so where in the forms would i claim them?

Please note I am a first time home buyer and I have already taken advantage of the first time home buyer credit in an amended 2008 return.

Those are not government imposed fees or taxes.

They can not be written off.

 

[Dr. Detroit]

I am self-employed and work as a consultant and am issued a 1099. The company I am currently consulting for is 100 miles round trip away from my home.

Is the mileage an expense on Schedule C or is this considered commuting?

if not schedule C, then this would be includable on Schedule A then subject to the 2% AGI rule?


Thanks!

 

[Xcobra]

That would be mileage you can deduct on Schedule C. If you were an employee (getting a W-2) then that mileage would be considered commuting miles (not deductible).

 

[EagleKeeper]

I am self-employed and work as a consultant and am issued a 1099. The company I am currently consulting for is 100 miles round trip away from my home.

Is the mileage an expense on Schedule C or is this considered commuting?

if not schedule C, then this would be includable on Schedule A then subject to the 2% AGI rule?


Thanks!

You can use the Schedule C.

A snaughty IRS agent might want to try to classify it as commuting, but your home base is your home and/or office if you are self employed

 

[Dr. Detroit]

You can use the Schedule C.

A snaughty IRS agent might want to try to classify it as commuting, but your home base is your home and/or office if you are self employed

What other items can I reasonably include on my Schedule C?

Cell phone?
Internet access?
Meals with with those who issue my paycheck?
Laptop purchase?
Tolls?
Parking?

 

[bruceb]

Laptop you would amortize over it's expected lifetime. And you would need to be sure it is only used for Business .. no personal use, no games on it. And even then, it would be deductible only to the extent that it is required to do the job and the company you are working for would not provide one to use.

Tolls and parking, yes, if you are required to be at a particular location in order to do the work.

Cell phone .. probably if used specifically for business calls

Internet access ... you might get a small portion of the overall charge, unless you have a dedicated connection just for business use.

Meals ... if you can document a business purpose with the other party.

You really should consulate a good cpa who specializes in contractors (1099 work)

 

[Xcobra]

What other items can I reasonably include on my Schedule C?

Cell phone?
Internet access?
Meals with with those who issue my paycheck?
Laptop purchase?
Tolls?
Parking?

Pretty much anything that you use either partially or wholly for business purposes, ie it is required for you to do your job for you client.

 

[alkemyst]

be careful with anything like a cell phone or internet access that I would guarantee 99.9999% of those self-employed also use for personal use.

Turbo Tax and the like have wizards that help you figure out partial deductions.

 

[onza]

Laptop you would amortize over it's expected lifetime. And you would need to be sure it is only used for Business .. no personal use, no games on it. And even then, it would be deductible only to the extent that it is required to do the job and the company you are working for would not provide one to use.

Tolls and parking, yes, if you are required to be at a particular location in order to do the work.

Cell phone .. probably if used specifically for business calls

Internet access ... you might get a small portion of the overall charge, unless you have a dedicated connection just for business use.

Meals ... if you can document a business purpose with the other party.

You really should consulate a good cpa who specializes in contractors (1099 work)

Where did you read this? Seems a little odd to amortize a laptop, isn't it? Always thought you depreciate it over 5years.

 

[EagleKeeper]

Where did you read this? Seems a little odd to amortize a laptop, isn't it? Always thought you depreciate it over 5years.

Same intentions, different verbage

 

[EagleKeeper]

You can use the Schedule C.

A snaughty IRS agent might want to try to classify it as commuting, but your home base is your home and/or office if you are self employed

What other items can I reasonably include on my Schedule C?

Cell phone?
Internet access?
Meals with with those who issue my paycheck?
Laptop purchase?
Tolls?
Parking?

Mentally, go through your week in details, accounting for what you are doing that has any potential interaction or support with respect to your client(s). From there determine if it is directly related (100%) or indirectly related (proportional).

 

[Aharami]

I need to replace my furnace and I've found that there is a 30% tax credit on 95 AFUE furnaces. My Contractor is telling me there might be a form to get the tax credit on my 2009 taxes (havent done them yet) even though Im getting it installed in 2010. Is this true? If so, what IRS form would I need to fill out along with my 2009 taxes?

 

[onza]

I need to replace my furnace and I've found that there is a 30% tax credit on 95 AFUE furnaces. My Contractor is telling me there might be a form to get the tax credit on my 2009 taxes (havent done them yet) even though Im getting it installed in 2010. Is this true? If so, what IRS form would I need to fill out along with my 2009 taxes?

http://www.irs.gov/pub/irs-pdf/f5695.pdf

I think you will have to file this form in 2010 the year you install it in.

http://energystar.custhelp.com/cgi-bin/energystar.cfg/php/enduser/std_adp.php?p_faqid=2928 (see tax forms)

 

[lothar]

Is money recieved from cashback(Bing cashback, 3-5% cashback cards, etc...) considered income that should be reported?
I didn't recieve any statement from any of them so I'm assuming that they don't need to be reported?

 

[EagleKeeper]

In theory, they should be reported.
They are not rebates from the manufacturer (ie lower price); but payment for using a service.

 

[miri]

It appears I owe California a "underpayment penalty." I think the amount is $6 but when I filed my taxes I saw no option to pay this. Is California going to send me a bill or is there another form I need to fill out?

 

[EagleKeeper]

It appears I owe California a "underpayment penalty." I think the amount is $6 but when I filed my taxes I saw no option to pay this. Is California going to send me a bill or is there another form I need to fill out?

If you read the original post; you would know that the State tax rules/questions are not likely to be answered.

 

[weirdichi]

According to the definitions below from TaxAct, I'm assuming I don't qualify for this since I purchased my vehicle back in Sept 2008. I was thinking this was the vehicle registration amount I paid for the tabs on my car, but it doesn't look like it.

My question is, where do I enter my vehicle registration amount?

To be eligible for the motor vehicle tax deduction:

-The qualified motor vehicle must be a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less.
-A motor home is considered a qualified motor vehicle.
-Used cars do not qualify. You must be the first owner of the vehicle.
-2008 models qualify as long as you are the first owner of the vehicle, and purchased the vehicle after February 16, 2009 and before January 1, 2010.

Taxpayers who purchase new motor vehicles in states that do not have state sales tax may be entitled to deduct other fees or taxes assessed on the purchase of those vehicles. Fees or taxes that qualify must be based on the vehicles' sales price or as a per unit fee. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon.

 

[EagleKeeper]

Where they ask for the sales tax amount for the vehicle

 

[alkemyst]

If you read the original post; you would know that the State tax rules/questions are not likely to be answered.

 

[Xcobra]

According to the definitions below from TaxAct, I'm assuming I don't qualify for this since I purchased my vehicle back in Sept 2008. I was thinking this was the vehicle registration amount I paid for the tabs on my car, but it doesn't look like it.

My question is, where do I enter my vehicle registration amount?

To be eligible for the motor vehicle tax deduction:

-The qualified motor vehicle must be a passenger automobile, light truck or motorcycle which has a gross vehicle weight rating of 8,500 pounds or less.
-A motor home is considered a qualified motor vehicle.
-Used cars do not qualify. You must be the first owner of the vehicle.
-2008 models qualify as long as you are the first owner of the vehicle, and purchased the vehicle after February 16, 2009 and before January 1, 2010.

Taxpayers who purchase new motor vehicles in states that do not have state sales tax may be entitled to deduct other fees or taxes assessed on the purchase of those vehicles. Fees or taxes that qualify must be based on the vehicles' sales price or as a per unit fee. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire, and Oregon.

Wait, are you talking about the sales taxes or the vehicle registration? For the vehicle sales taxes you have to file the new, second page of schedule A or Schedule L if you take the standard deduction amount. For registration fees, that goes under personal property taxes or other taxes on Sch A, not sure what line that is, 8 I'd say?

 

[weirdichi]

Wait, are you talking about the sales taxes or the vehicle registration? For the vehicle sales taxes you have to file the new, second page of schedule A or Schedule L if you take the standard deduction amount. For registration fees, that goes under personal property taxes or other taxes on Sch A, not sure what line that is, 8 I'd say?

I'm talking about both. I'm not even finding a section for the registration fees on taxact.com. And I'm sure my car purchase in 2008 won't qualify.

 

[Xcobra]

I'm talking about both. I'm not even finding a section for the registration fees on taxact.com. And I'm sure my car purchase in 2008 won't qualify.

Just went into mine. Put it under Other taxes paid...description: personal property or vehicle registration.