J.K. Lasser Daily Tax Tip brought to you by TaxACT
Copyright 2010 John Wiley & Sons, Inc.
Everyone wants to get as much back in their tax refund as possible, but tax laws are constantly added, changed, or updated. The J.K. Lasser Daily Tax Tip, brought to you by TaxACT, provide some insight into complex tax situations and offers helpful advice and guidance. Now that's something everyone can use! The Daily Tax Tip content is provided by America's all-time best selling tax guide, J.K. Lasser's Your Income Tax Guide 2006 by John Wiley & Sons, Inc. Tax advice provided by The Daily Tax Tip shall not be construed as a substitute for the advice obtained or given by a certified tax professional.
Keep Records of Deductible Losses
Sat, 4 Sep 2010 00:00:00 GMT
If your property is damaged, you must reduce the basis of the damaged property by the casualty loss deduction and compensation received for the loss. When you later sell the property, gain or loss is the difference between the selling price and the reduced basis.
Business or Income-Producing Property
Fri, 3 Sep 2010 00:00:00 GMT
If you are claiming a loss for property used in your business or income-producing activity, use Section B on page 2 of Form 4684. For 2009, losses from income-producing property are entered on Line 28 of Schedule A as miscellaneous deductions and are not subject to the 2% adjusted gross income floor.
Incidental Expenses
Thu, 2 Sep 2010 00:00:00 GMT
Expenses that are incidental to a casualty or theft, such as medical treatment for personal injury, temporary housing, fuel, moving, or rentals for temporary living quarters, are not deductible as casualty losses.
Appraisals for Disaster Relief
Wed, 1 Sep 2010 00:00:00 GMT
The IRS may accept an appraisal that is used to obtain federal loans or loan guarantees following a federally declared disaster as proof of the amount of a casualty loss.
Copyright 2010 John Wiley & Sons, Inc.
Everyone wants to get as much back in their tax refund as possible, but tax laws are constantly added, changed, or updated. The J.K. Lasser Daily Tax Tip, brought to you by TaxACT, provide some insight into complex tax situations and offers helpful advice and guidance. Now that's something everyone can use! The Daily Tax Tip content is provided by America's all-time best selling tax guide, J.K. Lasser's Your Income Tax Guide 2006 by John Wiley & Sons, Inc. Tax advice provided by The Daily Tax Tip shall not be construed as a substitute for the advice obtained or given by a certified tax professional.
Keep Records of Deductible Losses
Sat, 4 Sep 2010 00:00:00 GMT
If your property is damaged, you must reduce the basis of the damaged property by the casualty loss deduction and compensation received for the loss. When you later sell the property, gain or loss is the difference between the selling price and the reduced basis.
Business or Income-Producing Property
Fri, 3 Sep 2010 00:00:00 GMT
If you are claiming a loss for property used in your business or income-producing activity, use Section B on page 2 of Form 4684. For 2009, losses from income-producing property are entered on Line 28 of Schedule A as miscellaneous deductions and are not subject to the 2% adjusted gross income floor.
Incidental Expenses
Thu, 2 Sep 2010 00:00:00 GMT
Expenses that are incidental to a casualty or theft, such as medical treatment for personal injury, temporary housing, fuel, moving, or rentals for temporary living quarters, are not deductible as casualty losses.
Appraisals for Disaster Relief
Wed, 1 Sep 2010 00:00:00 GMT
The IRS may accept an appraisal that is used to obtain federal loans or loan guarantees following a federally declared disaster as proof of the amount of a casualty loss.