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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…
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Scholarship Count Toward Support?
According to Publication 17, “A scholarship received by a child who is a full-time student is not taken into account in determining whether or not the child provided more than half of his or her own support.” […]Read More… from Scholarship Count Toward Support?
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2009 Mileage Rates
MAGIC.pdfMAGIC.pdf2009 Standard Mileage rates for the use of a car (includes Pickups, Vans and Panel Trucks): 55 cents per mile for business miles driven (decreases to 50 cents per mile in 2010) 24.0 cents per mile driven for medical or moving purposes (decreases to 16.5 in 2010) 14 cents per mile driven in service of charitable organizations (same…
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Do You Have to File?
That depends on the AMOUNT of income AND the TYPE of income. Filing is not required if all of your income is from W2 Wages, Interest, Dividends and Other Miscellaneous Inocme (excluding Social Security) AND if the total income is less than the Standard Deduction plus personal exemptions. 2009 example:A Single person’s standard deduction is $5,700. Add a personal exemption of…