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Recent Estate Tax questions

We bought a house at a tax sale for our daughter. She is

We bought a house at a tax sale for our daughter. She is paying us on contract for deed. The interest rate is 4%. How do I report interest she has paid us? She started repaying November, 2016. Also, we had to pay some past real estate tax on the property. Can we claim that as a deduction? How?JA: When we are ready I'll take you to the appropriate web page. The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: That is all I can think of - except, I am preparing our personal taxes using taxact.com.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,920 satisfied customers
I received a K1 form for 2016, but I received no

I received a K1 form for 2016, but I received no distribution in 2016.... I'm confused..

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,616 satisfied customers
I am the personal representative of my mothers estate. I

Good evening. My name is ***** ***** I am the personal representative of my mothers estate. I have been living in and paying her mortgage and wondered if I my claim the mortgage interest deduction. If so how and is their someone close to me to help with my taxes? Assistant: Thanks. Can you give me any more details about your issue? Customer: My brother and his son live here as well as myself. They are both challenged and it was my mothers wish that they have a place to live.

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Lev

Retired

Bachelor's Degree Equivalent

24,426 satisfied customers
My 83 year old mother has come to live with me in August of

My 83 year old mother has come to live with me in August of this year (2016). I live in Westminster, CO and my mom owned her home in Arkansas before moving with me. The home is on a lease to own type contract. The home was to be owned by the new buyer when they sold their Texas home. Anyway, my mom has not received the full amount of the house but received monthly payments of $371.00. She is of course retired and gets Federal benefit credit of $1272.00 per month and $88.35 metlife pensions. She has not paid any taxes since she retired. She found out she has diabetes last July is why I have her living with me now. Her medical expenses are quite high but Medicare and United Health help with these. Does she need to pay taxes now? She has quite a bit in moving expenses also. Thank you for your help on where to begin with her tax situation. - BevJA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I can't think of anything else.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,920 satisfied customers
I got divorced this last year and my ex husband and I

I got divorced this last year and my ex husband and I jointly own a rental property because we could not sell it. When I file my taxes, should I file for half of the income and half of the expenses of the house? What happens if he doesn't file for his half?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: Last year we filed jointly. This year we are not. Do I only need to claim half of our state return from last year?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,920 satisfied customers
My wife and I have assets with a fair value of $1,400,000.

my wife and I have assets with a fair value of $1,400,000. my wife passes away intestate leaving me $350,000 and each of her daughters $175,000. assume it's all W-2 type earnings. will these inheritances be taxed as ordinary income?

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39,114 satisfied customers
How strict are gift tax rules? If a parent wants to buy

How strict are gift tax rules? If a parent wants to buy their child a car or pay off their loan is that taxed?

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Mark Taylor

Certified Public Accountant

Masters

3,302 satisfied customers
I am the executor of my mother's estate. Received a notice

HI! My name is ***** ***** I am the executor of my mother's estate. Received a notice from an investment firm that the TIN on my mother's estate didn't match the TIN on the IRS records. The TIN on the account and on the filed estate taxes is the same. How do I resolve the problem?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: Why the accountant?

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Charles Markham

Principal

Masters Science Taxation

646 satisfied customers
This is about rental depreciation for a situation in which I

This is about rental depreciation for a situation in which I have roommates living with me in my house. In 1998 I bought my house and got 2 roommates, then later reduced it to only one roommate, then in 2003 decided to never have a roommate again, so for 11 years I had no roommate. I've been told that my house reverted to personal use then. Then in 2014 I decided to try again and got one roommate (house square foot rental percentage 16%). In 2016 I needed more income, so I got a second roommate (increasing the rental percentage by 7% to 23%).1. I think that I made a mistake in 2014 when I started back having a roommate, renting out 16% of the house. I depreciated 16% of the 1998 cost of the house ($185,000) but didn't add in any of the improvements I made during the years I had roommates (1998 – 2003). These items previously got depreciated on those years' tax forms:1998 - $3500 new roof1998 - $1915 remodeling done to convert the living room to a bedroom2000 - $5227 new A/C & new fence2002 - $6616 roommate bathroom remodeling--------------------------------------------------------------------------------------------Total improvements: $17,258What do I need to do now? Do I have to re-do my taxes for 2014 & 2015 or can I just start doing things right for 2016? If the latter, should I add a line to my 2016 Form 4562 for 27.5 years for a basis of 16% x $17,238, with a starting time of January 1, 2016?2. Should my 2014 basis have included ALL improvements to the house, even those having nothing to do with the rental area, including the remodel I did of my bathroom/bedroom in 2002 and the new hardwood floor added in 1998 (which never got depreciated in 1998)?3. This year 2016 I'm also renting out the back bedroom to a second roommate, which is 7% of the house. Do I need to add a line to my 2016 Form 4562, for 27.5 years, for a basis of7% x (house cost + improvements) = 7% x ($185,000 + $17,258)4. When does depreciation end for my house: 27.5 years after 1998 or 27.5 years after 2014? If the latter, does all the depreciation done during the first rental period of 1998 – 2003 just vanish and never have to be recaptured, even if I had to sell the house later?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I don't think so.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,920 satisfied customers
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