Greenie, what other deductions would single BSD’s like CVM and I be able to itemize?
Without any deductions, I exceed the standard deductable as well. So if I dropped a 5k on suits and shoes, does that count as “uniforms”? Also, state sales tax is deuctable, rigth? should I just assume I spent like 20k as a conservative number that I paid sales tax on? What other deductions would be common?
Tips please.
^ I’ve tried that angle. Suits can be worn to more than just the office, so they are not uniforms. A clown costume for a circus would count as the clown costume is not something one would normally wear around town.
Uniforms are only tax deductible if they cannot reasonably be worn outside of work. CVMs clown example makes good sense of this. So no, you couldn’t do that.
You can deduct either sales tax OR state income tax, not both. Guessing you live in NY, so that’s meaningless. Income tax is going to be a lot more. If you were to deduct sales tax, you need receipts or you can just take a standard amount. The IRS has a tax table you can use to figure the standard amount.
and even then, it would have to exceed 2% of your AGI to be deductible.
Remember that gambling losses are deductible. At least to the extent of winnings.
my buddy in nyc says his itemized deductions never add up to his standard deduction… is it same for yall BSDs?
I’ll take a gander tomorrow to see what I can come up with.
Does anyone remember the good ol days when you didn’t need to have a soc for child tax credit? When the IRS finally required this, something like 1 million children disappeared overnight into thin air never to be seen again.
Has anyone checked out the $0 filing offer from Turbotax? I’ve used H&R Block online in the past but will switch if there are no strings attached on Turbotax…
Probably $0 for basic return, but charge you for Schedule A or anything more complicated. Plus probably charge you for the State return. That’s what a lot of these online firms do. Just guessing on the TT offer. Still, could be a good deal if you know what you’re doing.
I would have filed on TT online last year (simply because that’s what I had been doing for years before entering the business). But when they saw that I had a Sch. A, B, C, and E, they wanted to charge me $179.
No thank you. I’ll file for free at work, even if everyone can see all my business.
Hey CPAs, what’s the tax treatment of foriegn property? As I will be making $$$ into the future, my parents are telling me to start thinking about buying property, but I don’t want to get tied down. But I do want to buy property in my home country where my grandmother lives alone (I’m the only grandchild). Would I be able to deduct mortgage expense if the property is non US? Do I have to live there? Can I say I ‘live there’ if I spend two weeks there in a year? Or have it be my registered domicile? Not happening this year but I’m curious. Please forgive my tax ignorance, I’m overly reliant on my CPA-equivalent father every year lol (he didn’t know the answer to this q though).
^The US, being ass-backwards in its tax policy, “taxes the worldwide income of US citizens, resident aliens, and domestic corporations without regard to whether the income arose from a transaction or activity originating outside its geographic borders.” (IE - Other countries only tax income generated inside its borders. The US taxes all income, no matter where it’s derived.)
You can deduct mortgage interest from your primary residence, PLUS one more residence, as long as you’re not renting out the residence. (If you’re renting it out, it’s a rental property and it will go on your Sch. E.) So it doesn’t matter if you don’t live there.
^Thanks. So if my residence is rental property (ie I am renting), and I own another property in Japan, I can deduct mortgage expense. Great to know.
By the way, how does US know about foreign income? I don’t have any foreign income now, but if I have income in country x, as a country x national, going into bank of country x, how would US find out?
Whoa, whoa, whoa. Most countries tax the worldwide income of their residents. Canada does. Most European states do. What’s unique about the US is the taxation of worldwide income of non-resident citizens or green card holders. A Canadian resident in Canada pays tax on worldwide income. A Canadian resident in the US pays no tax to Canada nor has filing obligations (assuming they disposed if all Canadian trusts). An American citizen or green card holder resident in Canada needs to pay tax on worldwide income to the IRS, even though they are nonresident in the US. Obviously foreign credits reduce this but the filing obligations remain.
^ummm…I’m not sure what you’re trying to say. Are you agreeing or disagreeing with me?
And @emichan - I don’t know that the IRS would ever know. But as a good citizen of the U.S. and out of patriotic loyalty to your country, I’m certain you would pony up the money that you owe to Uncle Sugar.
dp
I don’t believe they would find out if it’s a foreign bank. I’m not sure if you want to deduct the Japan mortgage, maybe that may bring more liabilities if you declare it here?
What would I “owe” if I lived, worked, invested, etc. all abroad? I think that’s what geo’s saying, that if I were in such a situation, that the IRS would come knocking for money is a unique situation to US.
I pay US taxes because I live in US.
I don’t pay taxes in Japan currently. I don’t have a “current resident” form filled out (because I live in US) so I don’t have to pay taxes. Easy peasy. But if I lived in Japan, worked in Japan, etc… US wants my money. Pretty silly.
Hmm really? I have no idea lol. I am not exploring this idea as a tax shelter, if I buy property in japan it would have immense emotional value to me- a place for my domicle, a place for my grandmother to live, a place I can return to, etc. etc. But the tax deductions would be a plus obviously.
What sort of liabilities exactly?