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Last year,I spent money to repair the house because of water

Last year,I spent money to repair the house because of water damage (the board-siding outside of master bed room and roof) and replaced the A/C unit (new) because the old one is not working anymore. Can that be used as a tax deduction?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

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I live in an owner-occupied duplex and rent out the second

I live in an owner-occupied duplex and rent out the second unit. I am considering installing solar panels on the property. I met with a solar energy consultant and we determined that my unit is not eligible to be hooked up to the solar system for low electricity usage, but the rental unit is.My question: Can I claim the solar investment tax credit given that the solar panels will be for the use of the rental unit only?

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
I have been receiving SSDI benefits since late 2005. I was

I have been receiving SSDI benefits since late 2005. I was 51 years old when a determination of full disability was made, two years after I first applied for benefits. I turned 59 1/2 years old in March 2014, but have had to draw on my retirement annuity since 2006 to supplement my SSDI.I a penalty for early withdrawal was deducted by the firm managing the retirement fund. That penalty was initially 10% of each withdrawal. I also paid federal and state income taxes on the withdrawals. I often received back most of those taxes paid because of my low adjusted income and associated tax rate.As my age approached 59 1/2 the penalty paid to the fund management firm was reduced by 1% with each passing year. Again, I withheld amounts for Federal and State taxes on each withdrawal, though after the initial years I withheld a smaller % since most of it was coming back to me as a refund. I used tax software (typically TurboTax or TaxCut) to determine my taxes, always indicating that I was disabled and receiving SSDI as my primary income.In 2011 I moved from Minnesota to Wisconsin but the tax implications were minimal other than a loss of certain tax credits that had been available in Minnesota. (Homestead Property tax rebate/refund due to significantly lower income limits in Wisconsin.)In 2012 I purchased a home and withdrew a larger than typical amount from my retirement account to apply toward the down payment on the purchase. I also applied some funds from my IRA toward necessary repairs and energy-saving improvements. Again, I used TurboTax to prepare my tax return, and after applying various credits for energy saving improvements, and deductions for mortgage, property taxes and real-estate transaction fees from the purchase of the house. I paid several hundred dollars in federal and state taxes due.Now in 2016 I have received a letter from the State of Wisconsin Dept of Revenue saying that I owe a 10% federal tax penalty (and an additional 1/3 of the Federal amount for state tax penalties) on the early withdrawals from my IRA in 2012. This surprised me because I hadn't had to pay any additional penalties in previous years (to my knowledge) and I had paid the 2% penalty deducted at time of withdrawal by the fund management firm. I assumed that this was due to my disabled status.I am receiving conflicting information as to whether my disability status eliminates the tax penalty on early withdrawals. The fund management firm tells me that I may have to do so, though they aren't privy to the specifics of my tax return. If so, I don't understand why this liability only arose in my 2012 tax year. I also made a larger lump some withdrawal in 2008 to purchase a used vehicle, and no additional tax penalty was assessed (though I did pay a 6% early withdrawal penalty was deducted from the withdrawal by the fund management firm.)I was/am still confused about this early withdrawal penalty deducted by the fund management firm. I assumed this was related to any federal/state tax obligations, particularly since the tax preparation software didn't indicate any taxes due as an additional tax penalty.Recap: Key Questions1) Does my (full) disability status eliminate my liability for the additional tax penalty on early withdrawals?2) Am I likely to be liable for similar taxes in prior and subsequent tax years until I turned 59 1/2?The amount that I owe for the early withdrawal tax penalty, the late payment penalty and the associated interest is roughly 3x the amount of my total tax liability in any other year since my disability eligibility was determined. How many other "shoes" are likely to drop?

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
Here is the scenario: A single active member LLC files as an

Here is the scenario:A single active member LLC files as an S-Corp. It reported $10K loss for 2014 on 1120S and the individual's K-1. The individual did not perform basis limitation calculations (TurboTax does not guide through this). Company equity 100% attributable to the member at the end of 2014, including all single member contributions, income, losses, and distributions was $8K. The company reports a $9K loss for 2015 (taxes have not been filed yet), and is closing up shop in 2016 with no assets or liabilities (all assets depleted or written off with no gain).Questions:1) Is it correct that even though the member covered the losses out of their own pocket through contributions, their basis is measured after the loss? This seems illogical but it is how the basis limitation worksheet instructs.2) If the individual amends prior tax return to suspend the $2K of loss and shows practically ZERO basis for 2015, therefore additional $9K loss to suspend, will they be able to unsuspend the losses on their tax return for the year that the company is dissolved?3) Are unreimbursed expenses reported on Schedule A also limited by basis or do they come into play some other way?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,802 satisfied customers
I would like to know what kind solar panel rebate one should

I would like to know what kind solar panel rebate one should get back for installation of solar panels

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Robin D.

Vocational, Technical or Trade School

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20,648 satisfied customers
If I have my sewer line repaired by a trenchless procedure

If I have my sewer line repaired by a trenchless procedure (approx. $10,000) is there a tax deduction to be had? The repair is outside of the house and therefore not covered by homeowners insurance. The guy who is trying to sell me on the repair has told me that there is a deduction for "capital improvement". I have my doubts. I own the home free and clear and it is my personal residence.

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

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3,764 satisfied customers
Husband drop on me today that he will file taxes separately

Hi Husband drop on me today that he will file taxes separately from me, after filing taxes jointly for 15 years. I have filed married but separate based on his message, and claimed the kids as dependents, since he told me he would claim the morgage interestJA: Thanks. Can you give me any more details about your issue?Customer: He says I don't pay enough even though I contribute as much as him (before year end taxes) and still do all how work as if I was a stay at home wife.JA: OK got it. Last thing — Lawyers generally expect a deposit of about $36 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.

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Megan C

Master's Degree

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29,944 satisfied customers
Linn Energy Cancellation of Debt. Looking skilled CPA

Linn Energy Cancellation of Debt. Looking for a skilled CPA who has delt with the COD that shareholders were stuck with this year. I've seen everything from form 982, 8582 on areas to report this to help mitigate some of the tax burden.

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Angie

Bookkeeper

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462 satisfied customers
I installed a solar panel system on my home in 2015. I financed

I installed a solar panel system on my home in 2015. I financed it through HERO with the payments being made to them via my property taxes. Can I take the deduction for the entire cost of the system on my 2015 even though I financed the cost

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Arthur Rubin

Doctoral Degree

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1,740 satisfied customers
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