Search found 17 matches

by rickwmm
Sat Sep 17, 2016 1:34 pm
Forum: Personal Finance (Not Investing)
Topic: Deductibility of Seller Concession for Repairs on Sale of Partial Rental
Replies: 2
Views: 231

Re: Deductibility of Seller Concession for Repairs on Sale of Partial Rental

It does seem like a double deduction, and I can see why the IRS would view it that way. But the reality in this case seems to be that the reduction in the sales price has no real effect, as the gain on the sale was already under the $250,000 exclusion amount. There is depreciation that has to be rep...
by rickwmm
Fri Sep 16, 2016 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Deductibility of Seller Concession for Repairs on Sale of Partial Rental
Replies: 2
Views: 231

Deductibility of Seller Concession for Repairs on Sale of Partial Rental

Person sells a house that had been used as a partial rental. That is, he lived in the home but rented out the upstairs portion (approximately 40% of the house living space) to two tenants. He always reported rental income and included a prorated portion (40%) of general house repairs as rental expen...
by rickwmm
Tue Jul 26, 2016 5:06 pm
Forum: Personal Finance (Not Investing)
Topic: Selling House that was a Partial Rental
Replies: 3
Views: 472

Selling House that was a Partial Rental

Since 2010 my son has been renting extra rooms in his house to tenants while he still also lives in the house. He has been reporting rental income each year on his 1040 Schedule E and also deducting expenses for the portion of his house (40%) devoted to the rental. As part of his returns, he has bee...
by rickwmm
Tue Jul 12, 2016 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Restricted SS Application Timing/Mechanics
Replies: 1
Views: 247

Restricted SS Application Timing/Mechanics

My wife and I are both 65. She took SS early but I am waiting until age 70. When I turn 66 in February 2017, I plan to file a restricted application and then take a spousal benefit of 50% of my wife's FRA. My question is about the timing and mechanics of doing the application. I would like to do the...
by rickwmm
Tue Dec 22, 2015 5:12 pm
Forum: Personal Finance (Not Investing)
Topic: Form 1095-A and automated Tax Software
Replies: 6
Views: 413

Re: Form 1095-A and automated Tax Software

You can manually enter an amount directly on Schedule A to account for the difference. Your software should allow for such entries. Yes, you can put a dummy entry into your medical deductions to account for the difference, but it seems like a hokey way to do things. You would think that Turbo Tax i...
by rickwmm
Tue Dec 22, 2015 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Form 1095-A and automated Tax Software
Replies: 6
Views: 413

Form 1095-A and automated Tax Software

I notice a problem with the way both Tax Act and Turbo Tax are processing the form 1095-A for people who get health insurance through the Marketplace. I recently did a dry run on my 2015 taxes using both products, and found the same problem in both products. Apparently if you tell either product tha...
by rickwmm
Wed Nov 04, 2015 1:51 pm
Forum: Personal Finance (Not Investing)
Topic: Tax Question about SLCSP [second lowest cost silver plan]
Replies: 1
Views: 524

Tax Question about SLCSP [second lowest cost silver plan]

I am trying to do a dry run on my taxes for 2015 so I can determine if I need to make any year-end adjustments to my income. I am running into problems in determining the SLCSP (second lowest cost silver plan) for our health care plan. My wife and I are retired, both age 64, not yet on Medicare. Our...
by rickwmm
Sat Apr 12, 2014 12:50 pm
Forum: Personal Finance (Not Investing)
Topic: Contradictory IRS Rules
Replies: 7
Views: 1068

Re: Contradictory IRS Rules

That brings up another interesting point about the above situation. I mentioned that the taxpayer reports a small loss of a couple of thousand dollars from the rental (i.e., a negative number goes on line 17 of the 1040) each year. In reality, the taxpayer actually experiences a net positive cash fl...
by rickwmm
Sat Apr 12, 2014 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Contradictory IRS Rules
Replies: 7
Views: 1068

Contradictory IRS Rules

I am confused by two IRS rules on rentals which seem to contradict one another. Consider a person who rents a couple of rooms in his house out to tenants. He deducts a pro-rated portion of various house expenses (such as utilities, property tax, mortgage interest, depreciation, etc.) on Schedule E b...
by rickwmm
Fri Mar 21, 2014 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Sales Tax Deduction
Replies: 6
Views: 1063

Re: IRS Sales Tax Deduction

You're right that I never actually touched the 1035 funds. But I effectively used the funds to acquire the new insurance policy, and the amount of the transfer was considered part of the premium for the new policy. I guess I will contact TaxAct and see if this is some kind of a bug in their software.
by rickwmm
Fri Mar 21, 2014 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Sales Tax Deduction
Replies: 6
Views: 1063

Re: IRS Sales Tax Deduction

TaxACT
by rickwmm
Fri Mar 21, 2014 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: IRS Sales Tax Deduction
Replies: 6
Views: 1063

IRS Sales Tax Deduction

The IRS provides tables and a calculator for use in determining the standard sales tax deduction amount (used primarily for states that don't have an income tax). The instructions state that you can include in your total income: "Nontaxable part of IRA, pension, or annuity distributions (do not...
by rickwmm
Mon Mar 03, 2014 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R Strangeness
Replies: 7
Views: 645

Re: 1099-R Strangeness

The 1099 you received, if it was me, I would go to the bank and ask about it. I don't believe it should be coded as a 7 in box 7. Are you sure they put the money into another IRA instead of putting it into a taxable mm account? Code 7 means it's a normal distribution. Yes, the MM account was defini...
by rickwmm
Sun Mar 02, 2014 7:30 pm
Forum: Personal Finance (Not Investing)
Topic: 1099-R Strangeness
Replies: 7
Views: 645

1099-R Strangeness

My wife and I received two 1099-R forms from our bank for TY 2013 which we don’t understand. One is for me and the other is for her. My 1099 is the simpler case. In 2013 I had an IRA CD of approximately $41,000 which matured and I elected to transfer the full amount to an IRA Money Market account I ...
by rickwmm
Sun Jun 16, 2013 3:00 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefits
Replies: 3
Views: 721

Re: Social Security Spousal Benefits

Thanks for the replies! The socialsecuritytiming site pretty much gives me the info I need.
by rickwmm
Sat Jun 15, 2013 9:40 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Spousal Benefits
Replies: 3
Views: 721

Social Security Spousal Benefits

This should be a fairly simple question, but I can't find a clear answer on the Social Security admin website. My wife and I are both retired, both age 62, and we have no earned income. We have no dependents other than each other. My wife has elected to take her social security benefits now, but I h...
by rickwmm
Sun Feb 10, 2013 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Who pays tax on Savings Bonds with joint owners
Replies: 8
Views: 1442

Who pays tax on Savings Bonds with joint owners

My mother died around 20 years ago and left approximately $15000 to my son, who was only around five years old at the time. My wife and I used the inheritance money to purchase savings bonds for him. Because of his age, we purchased the bond in both my name and my son as co-owners. On the bond, my n...

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