The Tax Professionals Blog
1099 Reporting & Rentals
Posted by Lee Reams Sr. on
Two questions to be answered on Schedule E, Part I (rental real estate and royalties section) are (A) “Did you make any payments in [tax year] that would require you to file Form(s) 1099?” and (B) “If Yes, did you or will you file all required Forms 1099?”
Section 179 & Residential Rentals
Posted by Bold Apps on
A frequent question asked by tax professionals is whether home furnishings such as washers, dryers, refrigerators, microwaves and the like, used as part of a residential rental, qualify for the Section 179 expense deduction. First-Time Homebuyer Exception
Posted by Lee Reams Sr. on
Individuals wanting to purchase a home frequently look to their IRA accounts as a source for the down payment. Although tapping one’s retirement funds is generally not a wise thing to do, many homebuyers do it anyway. In these situations, there is not much that can be done about the taxability of an IRA distribution, which depends upon whether it is a Traditional IRA, which may or may not have a basis created by non-taxable contributions, or a Roth IRA. However, there is a somewhat complicated exception that can avoid the 10% early withdrawal exception on a portion of the withdrawal.
Deducting Partner Expenses
Posted by Lee Reams Sr. on
A frequent question that arises is how to handle the deductible business expenses of individuals in a partnership. Generally, the partnership should reimburse each partner for any allowable expenses; those expenses would then be deducted on the partnership’s 1065 return.Are Work Clothes and Uniforms Deductible?
Posted by Lee Reams Sr. on
The costs of purchasing and upkeep of work clothing are deductible if the following two requirements are met.