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|Posted on September 24, 2015 at 12:15 AM|
This week we discuss the "Taxes You Paid" Section of the Schedule A Itemized Deductions.
There are a few taxes that can't be deducted in this section. These include:
State and Local Income Taxes can be deducted. These include:
If it yields a better deduction, you can choose to deduct state and local sales taxes instead. There is a need for reciepts unless you use the standard amounts.
Real Estate Taxes can be deducted. These Include:
You can include State, Local and Foreign taxes you pay on real estate you own that is not for business. DO NOT include charges for improvements that increase the property value.
Personal Property Taxes can be deducted. These Include:
Only taxes based on value alone and are charged yearly. Example: Car License Fees in Iowa.
Interest You Paid:
This includes mortgage interest on your main home and your second home. There are limits as to the amounts you can deduct.
Mortgage Insurance Premiums:
These are premiums paid on a mortgage insurance contract entered into after December 31st, 2006.
This is interest you paid on money borrowed for investments and does not include any interest allocable to passive activities.
Be sure to check all of your Taxes You Paid deductions to make sure you are getting the highest deductions allowed. Call or stop by to speak with one wof our representatives today so you are ready for tax season!
Excel Tax and Consulting is here for you!
Next Week's Blog will Include "Gifts to Charity" and "Casualty and Theft Losses"