The 2014 Annual Anandtech Tax Time Thread!

[Craig234]

Use the Schedule E

However, if the property continues to show no income; the Feds may not look on it as a rental but rather a second home.

Then the non-taxes and interest items are all that you can continue to deduct and that would be via the Schedule A. And you would have to recover everything on the Schedule E

So, say there's several years of no income, and you're deciding how each of those years should be filed - should it just be treated as a second home (you've never been to) and just not deduct anything? What is deductible in that case, the property taxes, where would they get listed?

Anything else?

 

[cabri]

So, say there's several years of no income, and you're deciding how each of those years should be filed - should it just be treated as a second home (you've never been to) and just not deduct anything? What is deductible in that case, the property taxes, where would they get listed?

Anything else?

Property taxes & interest on a mortgage - Schedule A
Results of Schedule A then go on the 1040

You can only go back 3 years and file via the 1040X

If you want to claim rent payments then use the Schedule E
That form has plenty of lines to write off expenses for the property, including the ones that would go on the Schedule A.
Rents collected must be reasonable (not considered to be subsidized)

Again; you are limited to 3 years back.

2011-2013 if in the 2014 tax filing season

 

[JM Aggie08]

I love direct deposit -- got my return in ~3-4 days this year.

...And promptly put it towards my student loans I long for the day I'm out of the red and can begin investing (outside of my 401k, of course).

 

[celia1307]

i think so

He asked too many questions.

 

[Ferzerp]

At first glance, it appears that I can take deductions for my home office now with my new home.

The space is dedicated. It's a bedroom that only has my work equipment in it, and is used for no other purpose. My personal PC is in a totally separate room.

My employer provides me with no office space at all and considers me to be a purely remote employee.

Now, the catch. I consult for a 3rd party through my employer. I previously was an employee of this third party. They have a work space that I can use, but I only travel to their location once every month or so. I do pretty much all my work from home, and only travel to the 3rd party's location when I need to have face to face meetings. I know if I were an employee of the 3rd party, I could not deduct my home office, since they will provide a place for me to work. But since I work for an entirely different company who labels me as remote, does the lack of reclaiming my old office space by the 3rd party have any affect on my ability to make deductions for my home office?

edit: Also, my employer has a specific category for employees whose work location is a customer facility. I am *not* one of those and am truly remote.

 

[cabri]

My employer provides me with no office space at all and considers me to be a purely remote employee.

Home office expenses apply.

Just make sure you have a document stating the bold.

 

[JulesMaximus]

At first glance, it appears that I can take deductions for my home office now with my new home.

The space is dedicated. It's a bedroom that only has my work equipment in it, and is used for no other purpose. My personal PC is in a totally separate room.

My employer provides me with no office space at all and considers me to be a purely remote employee.

Now, the catch. I consult for a 3rd party through my employer. I previously was an employee of this third party. They have a work space that I can use, but I only travel to their location once every month or so. I do pretty much all my work from home, and only travel to the 3rd party's location when I need to have face to face meetings. I know if I were an employee of the 3rd party, I could not deduct my home office, since they will provide a place for me to work. But since I work for an entirely different company who labels me as remote, does the lack of reclaiming my old office space by the 3rd party have any affect on my ability to make deductions for my home office?

edit: Also, my employer has a specific category for employees whose work location is a customer facility. I am *not* one of those and am truly remote.

Have you looked at the tax implications of deducting a home office? I found that the benefit wasn't really that great (only resulted in a couple hundred dollars in depreciation which had very little effect on my net taxes) and it does increase your chances of an audit so we don't bother for my wife's business.

This is just an estimate to illustrate the difference the home office deduction might make on your taxes (for us it was much less than this):

 

[cabri]

Expenses can be considerable (relative ) even if the depreciation is ignored.
On a 2106, 2% will be stripped off.

rough numbers

150 electric
50 water
15 maintenance
50 internet
135 insurance

$400/month utilities alone

1/5 living space for office = 80/month

$960/yr
-2%
~900/yr not taxable

 

[Ferzerp]

I have to do the math and see if I should do the simple calculation ($5 x square footage, max of 300 square feet) or break it out. Last year I had over $30k in income tax liability, so anything I can do to reduce that would be great (even if it is just by $300 or so). This year, I've bought a new house, so I will at least get a little relief.

 

[s0me0nesmind1]

My employer provides me with no office space at all and considers me to be a purely remote employee.

Home office expenses apply.

Just make sure you have a document stating the bold.

What if you have (and work) from home often, but it's still possible for me to go in the office? Point being, we have an office that I can come into every day- but it's often annoying to go into, or theres no point of going in (EX: I have a client meeting at noon, so why go into the office before then?).

Expenses include:
Monthly bills
Building new desk for working on
Office Chair
Laser Printer/Scanner/Fax

 

[JulesMaximus]

I have to do the math and see if I should do the simple calculation ($5 x square footage, max of 300 square feet) or break it out. Last year I had over $30k in income tax liability, so anything I can do to reduce that would be great (even if it is just by $300 or so). This year, I've bought a new house, so I will at least get a little relief.

That damned self employment tax is what kills us.

We write off her office supplies, cell phone, computer, chair, portion of the Internet cost, etc. just no home office.

Make estimated payments so that you don't have that huge tax bill every April 15th.

 

[Ferzerp]

What if you have (and work) from home often, but it's still possible for me to go in the office? Point being, we have an office that I can come into every day- but it's often annoying to go into, or theres no point of going in (EX: I have a client meeting at noon, so why go into the office before then?).

Expenses include:
Monthly bills
Building new desk for working on
Office Chair
Laser Printer/Scanner/Fax

That one I *can* answer. You can't claim anything. Just being able to work from home isn't nearly enough. You have to be provided no work space for starters. Electing to work from home sometimes does not meet the requirement.

 

[Ferzerp]

That damned self employment tax is what kills us.

We write off her office supplies, cell phone, computer, chair, portion of the Internet cost, etc. just no home office.

Make estimated payments so that you don't have that huge tax bill every April 15th.

I am a W2 employee for a company, so I don't have to deal with that.