Is it 100% deductible?  Is there a minimum amount of deduction to qualify (I have a wife and 2 kids, 401K, no mortgage, really nothing else to deduct)?  What documents do I need to claim the deduction?  BTW, I live in California.
128640
Gifts to Charity \nYou can deduct contributions or gifts you gave to organizations that are religious, charitable, educational, scientific, or literary in purpose. You can also deduct what you gave to organizations that work to prevent cruelty to children or animals. Certain whaling captains may be able to deduct expenses paid in 2005 for Native Alaskan subsistence bowhead whale hunting activities. See Pub. 526 for details. \n\nTo verify an organization's charitable status, you can: \n\nCheck with the organization to which you made the donation. The organization should be able to provide you with verification of its charitable status. \n\nSee Pub. 78 for a list of most qualified organizations. You can access Pub. 78 on the IRS website at www.irs.gov under Charities and Non-Profits.\n\nCall our Tax Exempt/Government Entities Customer Account Services at 1-877-829-5500. Assistance is available Monday through Friday from 8:30 a.m. to 5:30 p.m. Eastern Time. \n\n\nExamples of Qualified Charitable Organizations \n\nChurches, mosques, synagogues, temples, etc.\n\nBoy Scouts, Boys and Girls Clubs of America, CARE, Girl Scouts, Goodwill Industries, Red Cross, Salvation Army, United Way, etc. \n\nFraternal orders, if the gifts will be used for the purposes listed above.\n\nVeterans' and certain cultural groups.\n\nNonprofit schools, hospitals, and organizations whose purpose is to find a cure for, or help people who have, arthritis, asthma, birth defects, cancer, cerebral palsy, cystic fibrosis, diabetes, heart disease, hemophilia, mental illness or retardation, multiple sclerosis, muscular dystrophy, tuberculosis, etc. \n\nFederal, state, and local governments if the gifts are solely for public purposes.\n\n\nContributions You Can Deduct\nContributions can be in cash (keep canceled checks, receipts, or other reliable written records showing the name of the organization and the date and amount given), property, or out-of-pocket expenses you paid to do volunteer work for the kinds of organizations described earlier. If you drove to and from the volunteer work, you can take the actual cost of gas and oil or 14 cents a mile. But, if the volunteer work was to provide relief related to Hurricane Katrina after August 24, 2005, this amount is increased to 29 cents a mile (34 cents a mile after August 31, 2005). Add parking and tolls to the amount you claim under either method. But do not deduct any amounts that were repaid to you. \n\nGifts from which you benefit.   If you made a gift and received a benefit in return, such as food, entertainment, or merchandise, you can generally only deduct the amount that is more than the value of the benefit. But this rule does not apply to certain membership benefits provided in return for an annual payment of $75 or less. For details, see Pub. 526. \n\nExample.\n\nYou paid $70 to a charitable organization to attend a fund-raising dinner and the value of the dinner was $40. You can deduct only $30. \n\nGifts of $250 or more.   You can deduct a gift of $250 or more only if you have a statement from the charitable organization showing the information in (1) and (2) below. \n\n  In figuring whether a gift is $250 or more, do not combine separate donations. For example, if you gave your church $25 each week for a total of $1,300, treat each $25 payment as a separate gift. If you made donations through payroll deductions, treat each deduction from each paycheck as a separate gift. See Pub. 526 if you made a separate gift of $250 or more through payroll deduction. \nThe amount of any money contributed and a description (but not value) of any property donated.\n\nWhether the organization did or did not give you any goods or services in return for your contribution. If you did receive any goods or services, a description and estimate of the value must be included. If you received only intangible religious benefits (such as admission to a religious ceremony), the organization must state this, but it does n
574762
Mortgage interest is taken as an itemized deduction.  You can either itemize, or take what's called a standard deduction, which is an amount the IRS gives you without having to prove anything.  Standard deduction for last year for a married person where both spouses are under 65 was $10,000.  If your mortgage interest plus any other itemized deductions adds up to over $10,000, you should itemize.  If not, the mortgage interest you pay doesn't affect your taxes.\n\nIf you itemize, that amount is subtracted from your income before figuring your taxes.  If you don't itemize, the "standard deduction" is subtracted instead.  That's from your income, not from your taxes.
162959
Wow, I wish I had a solid answer for you but tax laws are so squirrelly, and they vary from state to state. I can tell you that you want to be very careful to take the correct steps because nothing hurts you (or your wallet) like IRS trouble. Consider a consultation with a CPA or tax agency. These guys are worth their weight in gold, and usually know what your business needs long before you do.\n\nYou can also ask your questions here: http://www.irs.gov/\n\nAnd here's a real, legal list of deductions for the self-employed: http://www.irs.gov/businesses/small/arti...\n\n\n\nBest of luck with this,\n~Tia~
115993
If you are non a schedule A you can take all of the mortgage interest. You can take property tax that you pd. Any donations you gave (cash and non cash)Sales tax that you pd on any big purchases(use the table for the rest)I don't know what your filing status is so I don't know if you would even be close.
556514
'm sorry but there are many misconceptions out there about reverse mortgages. Many of them are listed by some of these replies. Yes they are real.\n\nThey were set up by FHA and heavily lobbied by AARP in order to help Senior citizens because they know that social security and pensions do not cut it for a lot of people.\n\nI recommend going to aarp to find some really helpful information.\n\nhttp://www.aarp.org/money/revmort/...\n\nor here for the most frequently asked questions..\n\nhttp://www.griffinloans.com/faqs.html...\n\nThere really is only one downside to taking out a reverse mortgage. The children are not left with 100% of the value of the home for an inheritance. From my experience and my own personal view, most children would want their parents to live their life to the fullest and don't care if part of their inheritance is reduced. It is YOUR home and you worked hard to pay for it. You should enjoy the benefits of it.\n\nThe house is still in your name it just shows that there is a mortgage on the home like any other conventional mortgage. You can take the full amount in a lump sum, split it up in monthly payments or leave it in a line of credit which right now has a growth rate of about 7%. With the line of credit you are only charged interest on what you pull out of the line of credit and that interest rate right now is right around 6.5%. The rest of the money sits there untouched until you need it. These loans are set up so that there should always be equity in the home to pass along to your heirs. Also, you can repay the loan at anytime with no prepayment penalty.\n\nAll of this money is tax free and there are no monthly payments to make. You CAN make a payment if you want and are concerned about keeping the balance down. You even get a tax break if you pay back the interest you are being charged.\n\nThis is a much better option than a home equity loan which you have to make high monthly payments and if something happens and they get behind could lose their home. With an FHA reverse mortgage there is NO way to ever lose your home or be foreclosed on.\n\nSo really the only downside to reverse mortgages is that the heirs wouldn't get 100% of the home value for your inheritance.\n\nI'd be happy to send you some more information if you would like. This is what I specialize in and our company can do reverses almost anywhere in the country. If you would like some more information please email me at bburns@griffinloans.com
485636
This is a great idea.  Obviously you know that even though you need to include the disbursement as income, you can avoid the 10% penalty if you use the proceeds (up to $10,000 over your lifetime) for a "1st time home purchase".  You can not have any interest in a home for the 24 months prior to the purchase of the home to get the "1st time" status.\n\nThe year you need to include the income is the year in which the money is disbursed, not necessarily the year in which you settle on the home.  Please pay within the 120 day window.  I can't see anywhere where it allows you to take the money out AFTER you pay for the home, so be sure to take it out earlier.
155803
This all assumes that you lived in the US when you made the $38,000.\n\nIf the $38,000 was not self-employment income then you would use the tax tables located at http://www.irs.gov/pub/irs-pdf/i1040.pdf (pages 65-76).\n\nThese tables would give a tax on $38,000 of $6,171 if filing as a single person or $4,974 if filing as a married person filing jointly.  \n\nHowever, I think you're talking about gross income of $38000.  \n\nThis amount would be limited by $5000 of a standard deduction if filing single or $10,000 if the filing status was married filing jointly.  \n\nDepending on your financial actions during the year, you may have more deductions than the $10,000 (see http://www.irs.gov/pub/irs-pdf/f1040sab.pdf for examples of deductions that could bring you over the standard deduction).  \n\nYour income would also be limited again by an exemption of $3,200 per person that lived with you in the U.S.  \n\nLet's say you were married with 2 children.  This means that your taxable income would be 38K - 10K standard deduction - (3200*4 exemptions) = $15,200.  The tax on $15,200 would be $1,554 for someone filing MFJ, and your withholding from income would most likely cover that (and more).  \n\nIf the total of your withholding and refundable credits (shown on Form 1040, lines 64-70) are greater than the total amount of tax, then you receive a refund from the government, which is what most people in the US think is there right as a taxpayer. :)  \n\nIn reality, a refund is an interest-free loan to the U.S. government.  \n\nIf you need any more information on the US tax code, you may contact me at CPA@RefundAccounting.com.  You could also set up an online meeting with me through that email, and we can go over any particular issues you may have.
527910
I'm an accountant.  You can easily do your taxes yourself.  Now that you have a home you'll probably be itemizing your deductions.  You can now deduct your mortgage interest, property taxes, state income taxes, if any, and charitable contributions.  I use TaxAct.  It's really easy.  All you have to do is answer the questions and fill in the information.  And it's pretty inexpensive.  I think I paid $15 to file both Federal & State last year.  Don't use a professional.  They'll charge you a couple hundred dollars AND they'll use the same kind of software as TaxAct or TurboTax.  Good luck.
200807
401(k) have a maximum amount of contribution so you would have to check what is that amount. And Im not sure if you can contribute a lump sum. I know that if you have a traditional IRA, you have until April to put in any last minute contributions for 2005, so probably the same can be done.\n\nAs for legal ways to reduce your tax, I mean if you itemized and have your own property, you can deduct the real estate taxes and mortgage interest paid in the property. Also you can deduct medical expenses, charitable contributions, union dues, tax preparation fees, unreimbursed employee expenses. If you live in state where there is a sales tax, you can deduct such amount either by entering the exact value of sales tax you paid or using the IRS tables to calculate an amount. Also if you recently bought any vehicle or boat in 2005, you can also deduct the sales tax on that purchase. \n\nWhat else, oh yeah, if you live in area that was affected by the hurricanes, an area that has been designated by the IRS as a disaster area, you can take other several deductions that can help you out. \n\nIf you have any student loans, you can deduct the interest on those loans. Or if you still go to school, you can deduct the tuition expense.\n\nIf I knew a bit more info on you I could probably help you out more.\n\nHope this helps!
413405
Three % has nothing to do with anything on your federal tax return and you do not pay income taxes in Florida.  If you itemize (schedule A) and it would appear that you should all of the mortgage interest and property taxes are deductible.  As a new homeowner you will want to take the closing statement to you tax preparer as there may be some items on that form that are deductible as well.  Be sure and keep that document for your records as it will help to determine if you have a tax liability when you sell this home.  If you have not done so in the past this might be a good time to us a tax professional to prepare your return as things are a bit more complex now that you are a home owner.
479503
I see some interesting responses on here.  I disagree with the reverse mortgage suggestion.  Up front it sounds great to take out a mortgage and never have to worry about paying it.  Needless to say interest continues to accrue and as this person suggested it will be paid from the estate.  Many times however it requires the estate to sell the home to do so.  I would only suggest a reverse mortgage as a last resort.  \n\nThis situation is a sensitive one as many factors come into play.  Such as what is the value of his 401K, what other sources of income does he have and what other savings vehicles are available to him.  Since he is in his 60's he can withdraw from his 401K without a penalty although he is still subject to taxation on the lump sum distribution.  This is why it is important to know what other sources of income he does have and are those other sources taxable. \n\nIf he his paying a high mortgage rate there is some benefit to paying off his mortgage, but not if this severely depletes his liquid assets.  It is a complicated question and needs a full financial analysis to see if it is beneficial.  \n\nI would however avoid that reverse mortgage option in this situation.
361401
You can deduct state, local, and foreign real estate taxes on ALL real estate you own.\n\nYou can deduct mortgage interest on ANY two homes you own.  You can only deduct mortgage interest on the first $1 million (total) of loans used to buy, build, or improve your home and only on the first $100,000 of other mortgage loans (home-equity).  If you think you may be over these amounts, or if you want to investigate further, I suggest reading the attached publication from the IRS.
83322
you can deduct it on your tax return\n\ngo to www.irs.gov for tax laws and information.
297821
I believe the current laws are that you can give someone $11,000 tax free. So if you and your wife both gave it would be $22,000. But, if you put their name on as the co-purchaser while the mortgage is being paid off, you wouldn't run into this issue.\n\nI just did something similar for one of my children.
48789
If you are married, you should file as married. It is not a garauntee you will get a huge return whether you file single or married. Depends on your income and how many deductions you have and /or any dependants that you claim. If you and your spouses income is not over a certain amount combined , I think the limit is $80,000, thats together, I think you should still get a good return if you file together. Hope for a big return for you. Make sure a professional does your taxes this year since you are newly married. Go over the return after the process, and next year you should be able to see what to do and what not to do, you can do them on your on if you like.
40182
Since you made very low income you have very low deductions.\nIf you made less than $8,200 you don't have to file income taxes. But since you are a single mom, you may qualify for the Earned Income Credit (EIC) and the Child Tax Credit.\nAlso, did you pay someone to take care of your child?\nIf so you may have a Child Care Deduction.\nIf you don't want to pay for a tax professional you can file your taxes for free on the IRS website and your state website.\nIf you are in southern california e-mail me: dsts.tax@verizon.net\nHope this helps.
551955
You deduct mortgage on your primary home on schedule A.  Your rental property mortgage is deducted from the income you made on the rental property on schedule E.  There are too many variables (children, other income, other credits, other deductions) to tell you exactly how much the write-offs will save you.  You can get a GENERAL idea by dividing your adjusted gross income (line 37 on 1040) by your total tax (line 63) this is your actual tax rate.   Multiply that number by your write-offs and this is APPROXIMATELY what you will save.