deductions: Qualified Charitable Contribution
- 04/10/19 05:27 PM
If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability. Let's say that a couple's 2019 itemized deductions include $8,000 in property taxes, $4,400 in interest and $20,000 in charitable contributions. That would total $32,400 which exceeds the 2019 $25,300 standard deduction for married couples, 65 years of age or older, filing jointly. Their required minimum distribution from their IRA is $40,000 which will be taxed at ordinary income. If this couple is in the 24% tax … (0 comments)
deductions: Standard or Itemized Deductions
- 01/21/19 06:55 PM
The Tax Cuts and Jobs Act of 2017 increased the standard deduction to $24,000 for married couples. There will be some instances that homeowners may be better off taking the standard deduction than itemizing their deductions. In the past, homeowners would most likely be better off itemizing but the $10,000 limit of state and local taxes (SALT) adds one more issue to consider. Let's look at a hypothetical homeowner to see how a strategy that has been around for years could benefit them now even though they haven't used it in the past. The strategy is called bunching; by timing the payments in … (5 comments)
Taxpayers can decide each year whether to take the standard deduction or their itemized deductions when filing their personal income tax returns. Roughly, 75% of households with more than $75,000 income and most homeowners itemize their deductions. Beginning in 2018, the standard deduction, available to all taxpayers, regardless of whether they own a home, is $24,000 for married filing jointly and $12,000 for single taxpayers. Let's look at an example of a couple purchasing a $300,000 home with 3.5% down at 5% interest. The first year's interest would be $14,630 and property taxes are estimated at 1.5% of sales price would … (0 comments)
deductions: Homeowner Tax Tips
- 03/04/15 03:12 PM
ven if you’re having a professional help you with your income tax return, you need to provide them with information on the money you spent that might be deductible. Look at the following list to see if any of these things need a little more investigation to determine if they apply to your situation. If you refinanced your home for the second or subsequent time in 2014, there may be points that can be taken as an interest charge. Compare mortgage interest, property taxes and other eligible itemized deductions to your standard deduction to see which will give you a larger … (0 comments)
deductions: What's the Point?
- 03/30/14 04:16 AM
What's the Point? - 3/24/2014 Prepaid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence. When points are paid on a refinance, they are not a current deduction but have to be taken prorata over the life of the mortgage. For instance, if $3,000 in points were paid on refinancing a 30 year mortgage, a deduction of $100 per year is allowed. When the loan is paid off or replaced by refinancing again or the home is sold and the mortgage paid off from the proceeds, the balance … (0 comments)
If you're at an age where you need to be taking Required Minimum Distributions (age 70.5) from your IRA, a qualified charitable contribution and some planning may allow you to lower your overall tax liability.
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