We are getting into tax time now and some useful tips can always come in handy. Some of the things that are so common can be easily understood. Look at them here:
- Traditional IRA's specifically relating to contributions are deductible in the AGI section of your 1040 form. However, Roth IRA contributions cannot be included in your return at all.
- If you convert property you own from personal to business use, you must use the fair market value of the property at the date of transfer as the value.
- All taxpayers must report capital gain distributions as long term gains regardless how long the taxpayer has owned the shares of mutual fund or real estate investment trust.
- If a rental that has been rented for fewer than 15 days for the year you cannot treat that period as a rental activity. You cannot include any rent a income, and cannot deduct any of the rent expenses.
- Not all payments under a divorce decree or separation instrument are deductible or taxable. Alimony is NOT child support. Child support payments are not deductible by the payer and are not taxable to the recipient. Payments that meet the criteria of alimony is included in the gross income of the recipient and is deductible to the payer, however.