Watson CPA Group - Knowledgebase


Homes and Real Estate FAQs - Watson CPA Group
Can I deduct the taxes associated with public improvements?
By Jason Watson (Google+) Generally you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. These include assessments for streets, sidewalks, water mains, sewer lines and public parking facilities. For example, the city refurbishes a...
16 Oct, 2012 Views: 0 Comments: 0
Can I exclude the gain on my home sale?
By Jason Watson (Google+) Yes. First, you need to determine if your home is your main home. Houses, cooperative apartment and condominiums all count of course. But boats, trailers and mobile homes count too if they have cooking, sleeping and bathroom facilities. If you have multiple homes,...
16 Oct, 2012 Views: 0 Comments: 0
Can I deduct the loss on my primary residence?
By Jason Watson (Google+) Yes, but practically No. Many people are upside down on their personal residence where the mortgage exceeds the value of the home. And naturally taxpayers want to deduct this loss when they sell their home. Losses on personal property including your residence are not...
18 Dec, 2012 Views: 0 Comments: 0
What are the rules on a home office deduction?
By Jason Watson (Google+) If you use part of your home for business, you may be able to deduct expenses for the business use of your home, but there are some rules. To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your...
12 Jan, 2013 Views: 0 Comments: 0
My home was destroyed- what deduction can I take? How do casualty losses work?
By Jason Watson (Google+) IRS Publication 584 specifically deals with casualty, disaster and theft losses. Typically, you may deduct losses to your home, household goods, and motor vehicles on your tax return but there are certain rules. First, you must compute the amount of loss- Determine...
16 Oct, 2012 Views: 0 Comments: 0
How does a Federal Disaster affect my casualty loss?
By Jason Watson (Google+) Taxpayers must generally deduct casualty losses in the year that it occurs. However, if there is a casualty loss from a federal declared disaster (such as the Colorado Springs fires), taxpayer may choose to deduct that loss on his or her tax return or amended tax...
16 Oct, 2012 Views: 0 Comments: 0
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation
By Jason Watson (Google+) If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through...
03 Oct, 2018 Views: 0 Comments: 0
What is Cancellation of Debt? Is it taxable income?
By Jason Watson (Google+) If you borrow money from a commercial lender and the loan is later canceled or forgiven, you may have to include the cancelled amount in your taxable income. When you borrowed the money you were not required to include the loan proceeds in your income because you had...
31 Dec, 2012 Views: 0 Comments: 0