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Homeless Person – I gave money – can I deduct it?
If you gave money to a homeless person or anyone needing assistance, thank you but that is not a 501(c)(3) deductible charitable organization. Nice gesture but no deduction. […]Read More… from Homeless Person – I gave money – can I deduct it?
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Proof in an Audit
How do you prove a deduction? First, a cancelled check, credit card charge or cash receipt. BUT, that only proves you paid for something. Second, an invoice showing what was paid. For example, you have a cancelled check to an insurance company. It only proves you paid for something. You might have paid your Grandmothers…
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Recourse vs. Nonrecourse Debt
Recourse vs. Nonrecourse When a debt is canceled by any means (deed in lieu of, foreclosure, short sale,cancellation of debt), the tax impact depends on the type of debt. Debt for which the borrower is personally liable is “recourse debt,” all other debt is “nonrecourse debt.” RECOURSE debt holds the borrower personally liable for any unsatisfied amount owed…
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Reverse Mortgages – Taxable? Deductible?
Question: Are the amounts a taxpayer receives from a “reverse mortgage” taxable? Deductible? Answer: NO to both. Interest on a reverse mortgage loan added monthly to the outstanding loan balance as it accrues is neither taxable in a cash method lender’s gross income nor deductible by a cash method borrower at the time it is added.…
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Work Clothes Deduction
Are Work Clothes a Deduction? Generally yes if they are work clothes or uniforms if required and NOT suitable for everyday use. That deduction would include the cost and upkeep if both requirements are met. If I purchase a nice suit for business, it is not a deduction as it has alternate use. If I am a professional clown…