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Recent Real Estate Tax questions

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.

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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

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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

9,840 satisfied customers
I have a sale of a home where by there are adjustments to

i have a sale of a home where by there are adjustments to the sales price. ie tax and fuel.My question is for tax purposes do i take the sales price of the home or do i also add these adjustments and make that the sales price.No 1099 was issued

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

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My husband and I hold the mortgage for a house which my

My husband and I hold the mortgage for a house which my daughter and her husband are buying. Taxes and insurance are escrowed through this mortgage. My daughter makes the entire mortgage payments. Of course the 1098 form come in my name and social security number. My daughter has proof of her payments through her bank account. We are wondering how she and her husband can claim deduction for the interest and taxes they pay on our mortgage. I don't feel I should claim them as they have paid them. However, they do not have a 1098 form in their name.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: Not that I can think of

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,840 satisfied customers
Situation is that mother and daughter live together in

situation is that mother and daughter live together in condo. The loan is in daughter's name, but mother makes all payments. Can the mother claim the interest paid and the real estate taxes on her long form return?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: real estate taxes are included in the monthly loan payment

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Robin D.

Vocational, Technical or Trade School

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My wife and her two siblings inherited a house valued at

My wife and her two siblings inherited a house valued at $75,000 when her mother passed away last year. The house was sold for $53,000 and the proceeds divided equally between the three siblings. We have been advised that the proceeds are non-taxable. We have been told that the difference between the sales price and the fair market value of the house may be declared a loss for income tax purposes. If so, how much can be declared a loss yearly?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: No.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

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I am getting married this summer in July. I live in

I am getting married this summer in July. I live in California and currently file my W4 as Single with 2 allowances; I make $130,000. I contribute 6% of my income to my 401k. My fiance files her W4 as Single with 1 allowance; she makes $90,000. She contributes 6% of her income to her 401k. What should we file as on our W4s and how many allowances should we claim? I am trying to avoid the marriage penalty. We have no kids and we will pay about $13,000 in mortgage interest and $5,000 in real estate taxes which will be used as a deduction. We both are paid bi-weekly.

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CFEPro789

Fraud Analyst

Master's Degree

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I am a shareholder in a coop. We received an accounting of

I am a shareholder in a coop. We received an accounting of our real estate taxes paid. We get a STAR credit. Is this Star credit to be deducted from the real estate tax amount when reporting it on our taxes.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: My share of real estate taxes is 2742.41. The STAR credit is 302.75 and we also had an abatement of 688.37.

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Lev

Retired

Bachelor's Degree Equivalent

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