Final question (I promise this time): What do I categorize lawyer fees under inside Freshbooks? Would that be Lawyer or simply Misc or Office Supplies?
I am using turbo tax to do my taxes. what is different this year is that my house was used as a rental property all of last year. On turbo tax, on the section about rental income, it gives me a list of items that I can list for depreciation. It lists (applicances, furniture, carpet, etc etc). It leaves me to enter it all myself.
- can i really claim everything in my rental property? I.E, carpet, windows, blinds, etc etc? What about every inch of the house? doors, oven, microwave? sod. what else can I claim? I bought my house as a new construction, so everything was picked by me.
- how do I find the prices of these? Is it okay to go to home depot site and get a 'quote' for something similar?
The value of the house / less land is what should be used for the depreciation overall if you are not living in it. When one then repalces items, then one can also start to depreciate them.
Tax Software will request you to enter the overall value of the property and the value of the land. If you do not know it; a standard rule of thumb for builders is the the value of the structure is 4-5 times the value of the land.
By purchasing it as new; you should know the underlying value of the land. Between the cost of the land and the final price is the value of the structure for depreciation.
Landscaping (sod/trees/ornamental items) are not supposed to depreciate but the maintenance of the such items is a direct deductible cost.
IRA conversion questions. Do I understand this correctly?
I contributed $5000 to my traditional IRA for the 2010 tax year in early 2010. Later, I earned more money than I thought I would and I was no longer qualified to take the IRA tax deduction. My choices are (A) keep it as a non-deductable IRA which usually is a bad deal all around, (B) convert it to a Roth IRA, or (C) take the money back out of the IRA and pay tax on any gains. I would like to do (B). Even though I make too much money to contribute directly to the Roth, I believe that I can still contribute to a non-deductable IRA and then convert to the Roth, correct?
However, my $5000 is now worth much more since the stock market has been doing well. If I convert it to a Roth IRA by the 2010 tax date (and any extensions), then I don't have to pay taxes on the gains. But if I wait until the 2011 tax year or later, then I do have to pay taxes on the gains. Is that also correct?
Question, how does opening an IRA (as turbotax suggests) affect taxes? I'm currently in the hole for $1500 and looking for any possible relief. (Turbotax has already found all of the deductions it could.)
Stay the path you are on. :thumbsup:
Tax S/W will cover your situation easily.
Taxes paid in Dec 2010 will be claimed on the Schedule A for 2010.
There were also taxes paid in the closing statement that will be claimed for 2010.
Go through the closing statement with a fine tooth comb looking for any reference for government fees or the word tax. Those items are also deductible.
When I use Turbotax it forces me to itemize all my charitable contributions line by line. However, in the years when I have used an accountant, they simply put a total $$ amount of charitable contributions down and move on. I never have to itemize.
Is there anyway I can do that with Turbotax myself?