Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

I have been looking for another rental property. Thought I

found something. Spend $2000.00 architecture...
I have been looking for another rental property. Thought I found something.
Spend $2000.00 architecture plans , septic. Little to find. I will not be able to build what I want.
Where do I deduct this cost? $2000.00
What about my stay in the hotel. This property was 1 hour from my house.
FOr 3 nights I stayed in hotel over 3 month’s time.
Can I deduct $2000 on SCHEDUEL E. under what LINE?
2) Mortgage interest on 2nd home. Vacation home is deductable, plus real estate taxes. Plus insurance. Please specify about vacation homes.
Show More
Show Less
Ask Your Own Finance Question
Answered in 4 minutes by:
8/18/2013
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified

MyVirtualCPA :

Hello, Emma thanks for requesting me directly

MyVirtualCPA :

First thing - the vacation home. You can deduct the interest and taxes on your second home, but if you have more than one vacation home you can only deduct the cost of one

MyVirtualCPA :

You deduct on the same line of schedule A as your primary residence

MyVirtualCPA :

The travel expenses and expenses of investing in additional properties is not deductible

MyVirtualCPA :

You cannot deduct on schedule E the cost of searching for additional properties. If you were to find a property then those costs would be added to the basis, but if theres no new property then there is no basis.

Ask Your Own Finance Question
Emma,

Thanks again for requesting me directly. Please review my response. If you have questions, please reply below. Otherwise, please rate as "excellent" so that I may receive credit for assisting you today. Thanks again for using JustAnswer.com
Ask Your Own Finance Question
Customer reply replied 4 years ago
I have a time share.
2 weeks in Aruba. Condo fee total $1500.00
Super expensive. Can I deduct condo fee on
Schedule A. And add $1500.00 to my primary
Home's tax bill?
What do I do with condo fee expense.

2) question. I though I could deduct $2000.00
Expense towards new property.
Under schedule E. development expense.
We were in process of buying.
Thank you for your follow up. Unfortunately, your condo fee/time share is not tax deductible. The condo fee cannot be deducted anywhere on your tax return.

If you are in the process of buying a property, the cost you incur to find/develop the property would be added to the basis. It is not a currently deductible expense.

Please let me know if you need anything additional. IF not, please rate as "excellent' so that I may receive credit for assisting you today.
Ask Your Own Finance Question
Customer reply replied 4 years ago
I am disappointed $2000
Expense. Search for new property is disallowed.
I hired professional. But land didn't purk.

2) If I sold second home.
Sale I need to report form 4979
Where do I report sale of second home.
Am I allowed deduction.
$500,000 married deduction.
Every 2 years
I'm sorry about the $2,000 expense as well. I wish I had better news for you there.

If you sell a second home, there is no exclusion. That's only for your primary residence. You would not report the sale on 4979 you would report on schedule D. Loss is disallowed, and gain is taxed as capital gain.

Please let me know if you need anything additional. If not, please rate as "excellent" so that I may receive credit for assisting you today.
Ask Your Own Finance Question
Customer reply replied 4 years ago
On schedule D. I report shares.
In description. I write second home 100%
Example:XXXXX
Fill out on form 8949 part II the description of property would be the addresses - then fill in the rest about the sale. Then carry that amount to schedule D in the proper place in part II

Please let me know if you need anything additional. If not, please rate as "excellent' so that I may receive credit for assisting you today.
Ask Your Own Finance Question
Customer reply replied 4 years ago

 


Can you give me a link to Form 8949. I am using turbo tax.


Can’t seem to pull the form. I See refrence to the form on schedule D.


I never used form 8949 when I sold stock?


Loss on sale of sale of 2nd home is recognized.


I can subtracted again Capital gain.


OR take 3,000 annual loss.

Thank you for your follow up. Here's a link to form 8949 CLICK HERE.

You should use form 8949 when you sell stock, but it was prob a prior year where form 8949 was not required.

Also, you can NOT recognize the loss on the sale of a second/vacation home. It is a personal use asset and therefore a loss is disallowed. Sorry if this is inconvenient for you.

Please let me know if I can be of further assistance. If not, please rate as "Excellent" so that I may receive credit for assisting you today.
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified
Megan C and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago

 


I apologize for my lack of knowledge. Do see the form 8949 from your link.


Can’t seem to retrieve from TurboTax.


I am confused Schedule D and from 8949 look so similar.


If I sell a long term stock or short term, it needs to be reported to 8949 form?


Lastly, Gain on personal home $500,000 every two years is allowed.


But loss on sale of personal residence is disallowed.

I do not know how to retrieve the form in TurboTax...it should automatically fill itself out when you enter information in. I'm not certain, as I do not know much about TurboTax. Form 8949 feeds form Schedule D, they are used together. If you file form 8949 then those amounts go to schedule D.

Yes, if you sell long term or short term stock it would go on form 8949 as well.

Loss on sale of personal residence, second residence, vacation home, etc is all disallowed. You cannot exclude the gain except for on your primary residence, not your second home or vacation home.

Please let me know if you need anything additional. If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Thanks again
Ask Your Own Finance Question
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. I really enjoyed working with you – please feel free to request me again when you come back to ask another question. Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer
Ask Your Own Finance Question
Customer reply replied 4 years ago

 


Enjoy receiving qualified advice from you.


Returning client


 


What is the difference between investment interest and mortgage interest?


Investment interest on Schedule A?


2nd question: I have 2 contractor working for me yearly I pay them 21K


They buys materials for repairs and do minor repairs.


I send them 1099.


How do I deduct them on schedule E. How do I deduct therelabor work.


Materials I understand I have receipts. Labor under subheading repairs?


Each one does so many little jobs, change locks, turn boiler, and paint a window.


15-16 small repairs per year per property.


 


 

Thanks, Emma for your follow up. Investment interest is interest you pay on money that you have invested. Some people borrow money to invest, so it would be the interest on those loans. Mortgage interest is the interest on a mortgage secured by a piece of real property.

For the contractors, you would include their labor in repairs. You don't have to put it in labor. You can just put the entire amount in repairs.

Please let me know if you have any additional questions. If not, please rate as "excellent" so that I may receive credit for assisting you today.
Ask Your Own Finance Question
Customer reply replied 4 years ago


Since, I have so many little repairs, change locks, paint, etc.


Do I have to keep any track record of repairs.


For audit I am concern. My contractors labor I list as repairs.


No summary what the repairs are.


 


Labor change boiler. Boiler I will depreciate. Insulation work is repair.


How do I keep track of labor. My contractor gives me one set price.


I don't want to depreciate items. Boiler I assume is a 5 year deprecation.


 


Plus interest income I would deduct on Schedule A. LINE?

Emma,

You will not be deducting interest income. You only deduct interest expense. None of your rental property expenses will go on schedule A. Everything is on schedule e.

Labor to change a boiler is part of the cost of the boiler - it's added to the basis. Labor to repair the boiler is a repair But, if the labor is for an item that is depreciated, the labor cost is also depreciated.

Yes, you need to keep a log of repairs in the event you are audited. Receipts and canceled checks showing you paid your contractors is a good idea as well.

Thanks

Megan
Ask Your Own Finance Question
Customer reply replied 4 years ago


Megan, change lights, change locks, repaint, a lot of minute jobs.


I pay both workers labor cost. I am overwhelmed with number of tiny jobs. List them all as repairs. And have a log not report the log on income tax.


I meant Interest Expense I deduct on Schedule A.


Summarize what is interest expense.


Does it have a minimum base 2 % of AGI.


Line.


I invested time researching about certain property, Didn't buy it.


Invested close to 7 k. Bad deal in the end.


How do I deduct this expense. No P&S was signed

Thanks, Emma for your reply. Interest expense deductible on schedule A would be for interest that you borrowed for investments...not real estate, but like stocks and bonds and mutual funds. If you borrowed money to buy that type of thing, then that interest is deductible.

You would not deduct the loss for researching and not buying a property. Investment expenses include the following:

  • Fees for investment counsel and advice, including subscriptions to financial publications
  • IRA or Keogh custodial fees, if paid by cash outside the account
  • Software or online services you use to manage your investments
  • Safe deposit box rent, if you use the box to store certificates or investment-related documents
  • Transportation to your broker’s or investment adviser’s office
  • Attorney, accounting or clerical costs necessary to produce or collect taxable income
  • Charges for automatic investment services and dividend reinvestment plans
  • Costs to replace lost security certificates


Thanks and let me know if you have further questions. If not, please rate as "excellent" so that I may receive credit for assisting you today.
Ask Your Own Finance Question
Customer reply replied 4 years ago

I spend 5 K searching for a property. Architecture plans etc.


Example Cape Cod.


6 month later bough a property in RI. different time of property.


3 family. Can I deduct previous expenses, cape cod?

Thank you for your follow up. No, you cannot deduct the cost of the cape cod investment. If you would have purchased the property, then the amount would have been added to the basis.

Please let me know if you need anything else. If not, please rate this response as "excellent" so that I can receive further credit for assisting you today.
Ask Your Own Finance Question
Ask Megan C Your Own Question
Megan C
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16,592
16,592 Satisfied Customers
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Megan C is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

16,592 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Move to another IRA. I currently have Rollover IRA with one
Move to another IRA. I currently have Rollover IRA with one investment company, and want to move all my funds to another investment company, and close the account with the first investment company. I … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,067 satisfied customers
I am sole beneficiary (non-spouse) of a roth ira (the
Hello, I am sole beneficiary (non-spouse) of a roth ira (the designation was made with the account; ie, non-probate). It was my father's roth and he died in 2016. It is now dec 31 of the year after d.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,785 satisfied customers
Have a Traditional IRA and Roth IRA I contribute to. The
Have a Traditional IRA and Roth IRA I contribute to. The Traditional IRA my employer matches my contribution. Question, does this mean I am covered by a retirement plan at work? I am reviewing questio… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
If I take money from traditional IRA before December 31st
if I take money from traditional IRA before December 31st and I don't need this money in 2018 can I put it back into traditional IRA ?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,067 satisfied customers
Is it better to take money from an existing IRA to a Roth in
Is it better to take money from an existing IRA to a Roth in 2017 or 2018? I CAN ONLY TRANSFER $7100… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have to withdraw about $5000 from my IRA due to finances.
I have to withdraw about $5000 from my IRA due to finances. I am 57 years old. I am aware of the 10-percent penalty for early withdrawal and that I'd have to pay taxes on the $5000. My wife and I file… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Would an IRA contribution from an single-member LLC in the
Would an IRA contribution from an single-member LLC in the US reduce the taxable income of the LLC? For example, let's say the LLC has $20,000 in profit but the individual makes two $5,500 IRA contrib… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,067 satisfied customers
For 2017 what is the regular IRA contribution limit....Is
For 2017 what is the regular IRA contribution limit....Is this in addition to limits on SEP IRA? I am 62. Self Employed and have no other workplace retirement plans.....what is the limit on a SEP IRA?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have rrsp sin segregated mutual funds with Canada life
Hi I have rrsp sin segregated mutual funds with Canada life would I be better off switching these over to a bank such as RBC because of fees Brian… read more
Carter McBride
Carter McBride
LLM
233 satisfied customers
I have 2 Roth IRAs for my husband and I and we created an
I have 2 Roth IRAs for my husband and I and we created an LLC with professionally made up documents to own the LLC wiith our Roths. In the document it states we can buy and sell basically anything tha… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a self directed Roth IRA with TDAmeritrade, can I buy
Hello, I have a self directed Roth IRA with TDAmeritrade, can I buy and sell stocks without capitol gains, as long as I don't cash out or reinvest ?Thanks, Ken… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I had a question on moving an IRA account from a bank IRA to
I had a question on moving an IRA account from a bank IRA to a brokerage IRA. My uncle went to his local bank and let them know he wanted to move his account. They issued him a check but it's thebfina… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,785 satisfied customers
I inherited my father's IRAs. I have accounts with Fidelity
I inherited my father's IRAs. I have accounts with Fidelity and Schwab. One of my Schwab accounts is titled Inherited; the other is listed as a Roth. The Fidelity account is listed as an IRA. My quest… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have mutual funds that I purchased through my bank. They
I have mutual funds that I purchased through my bank. They showed me some brochures and gave "estimated" historical performance numbers (e.g. 3%, 4.5%, 7%, etc.). They also told me about the MER that … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a question on SEP IRAs? i have income from both a
i have a question on SEP IRAs? i have income from both a single member LLC and straight up schedule C self employment income. … read more
abci168
abci168
Principal
27 satisfied customers
Please help, I have a seld-directed IRA and I have questions
Please help, I have a seld-directed IRA and I have questions regarding rollovers from my traditional IRA … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,067 satisfied customers
Quick Question on IRA withdrawals and deposits. Here is the
Hi. Quick Question on IRA withdrawals and deposits. Here is the scenerio: Withdrawals were made $3k/withdrawal for bills, etc., on the following dates: Nov 11, 2016 Nov 20, 2016 December 3, 2016Total … read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Is an individual retirement annuity considered an Ira?
Is an individual retirement annuity considered an Ira? Trying to help my mother move this to her IRA that she has at another institution. Never heard of the term before but it has the acronym of an Ir… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,275 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x