Are losses on the sales or real estate tax deductible. If so, what form do I use?
84579
Standard form 1040, and yes...loss of sale of any asset is deductable.
470879
Points, mortage interest and real estate taxes are deductible and should be reported to you by your mortgage company.\n\nFees such as document processing fees are not deductible, but you are able to add them to your basis if you have a capital gain on the sale of your house.  I would not worry too much about computing the basis of your house purchase(since there is a 250/500 K exclusion), but I would keep the documentation so I had it just in case you need to compute it.\n\nHOA fees might be included in your closing costs and are never deductible(or added to the deduction) because it is an expense for your benefit.
569800
Section 1250 requires that gain on the sale of real property be treated as ordinary income to the extent of the depreciation claimed in excess of straight line. Any gain in excess of this ordinary income is section 1231 gain.\n\nGood question. When I was in similar situation in 1997, tax rate was 25 percent. A tax adviser would certainly be able to answer this for you.\n\nHope this helps!\nNewarview
328840
Well, make certain you check this with your tax professional because mine has always said this is only for specific types of items such as an automobile.\n\nIt was certainly not my intention to insult anyone, I thought I was making a light joke. I apologize if I hurt your feelings.\n\nBut I do know in the past that we had asked about deducting sales taxes at H & R and were told that this had very strict limitations. She could have been wrong because they use a lot of temp help around tax time. Conversely, there is a person who asked a question because they now owe an additional $4400.00 to the IRS because of mistakes.\n\nThat really was all I meant.
746229
I'm assuming that you are selling a property that you have been depreciating. I don't know if you are a real estate professional who has been writing off your losses as you go or a passive investor, but I will assume a passive investor.\nYou Willl compute your gain on the sale of the property under normal rules. You gain will then be taxed at 25% to the extent of depreciation taken on the property that you sold. Any gain above this depreciation amount wil be taxed at the 15% capital gains tax rate.\nIn addition this gain will be passive income that will allow you to use your passive losses to the extent of the passive gain which is deductible in full on your return as an ordinary loss.
227624
Before the Limited Liability Company (LLC), the business entity of choice for real estate was the limited partnership. You get pass through taxation, including pass-through "losses" from depreciation even when your investment was cash flow positive.\n\n    Today, LLCs are the almost always used for real estate investment. I work for a law firm that does a lot of real estate deals, some worth over $1 billion, and I almost never see anything besides an LLC used when a new entity is needed (there are still some limited partnerships left from projects started many years ago).\n\n    A corporation is probably the worst entity, because of the double taxation. \n    \n    Separate entities for your operating business and your real estate is recommended also.  This isolates liability caused by your real estate (e.g. a slip and fall) from your operating business, and also protects your real estate from being seized to satisfy a claim due to your operating business (e.g. a product liability claim).\n\n     It's also wise to have each piece of property under a separate LLC.  This way, a catastrophic loss at one property (e.g. a tenant is murdered and you're sued for wrongful death for providing inadequate security), won't decimate your entire real estate portfolio.  All the plaintiff will be able to take is the one property--your other properties will be safe in their own LLCs.
216284
The 6250 becomes your 'basis' in the business.  When you go to sell the business you would deduct that from the proceeds to calculate your gain or loss.
1149299
Claim what?  You don't get any tax benefits just for owning a house.  But on your itemized deductions, there's slots for the mortgage interest and property taxes you've paid in the last year.  That, in most cases, is deductable.
139122
There isn't specifically a "tax break" for a first time homeowner.  You do get to deduct your mortgage interest.  As far as moving, if you pass the checklist of questions, you should be able to deduct the specific items that the IRS will allow, i.e. mileage, and moving expenses if it was for your job.
817565
Yes, they are.  So are a lot of other things.  Basically, your "gain" is your selling price, minus your purchase price minus upgrades and improvements, minus purchase fees, minus selling fees...basically minus anything that you weren't able to claim against your taxes like mortgage interest and RE taxes.\n\nBut, please, don't take my word for it.  Everything you ever wanted to know about selling your house is at the IRS link attached.\n\nCongrats big time on having such a nice gain!
252374
The mortgage escrow refund is not reportable for taxes.  It is simply the return of your money on deposit with your mortgage co.\n\nIf you deducted the full escrow in the past, then you filed that return incorrectly.  Only the actual amount spent on real estate taxes for example are deductible.\n\nIf your mortgage co pays interest on the escrow, that amount will be taxable interest.
939842
Do you mean a furnace in your own home?  That is not deductible currently.  however, if you make a large gain on the sale of the home ($500,000 if you are married filing jointly or $250,000 otherwise) it can form part of the basis.\n\nIf you are talking about rental property or in a property you use for business purposes it is a depreciable asset.
409643
Property taxes and mortgage interest payments are tax deductible. If you have an office in your house that meets the federal requirements (discuss with your accountant), you can figure out the square footage of the office compared with the total square footage of the home and you can take that percentage of the cost of utilities, repairs, etc. off your taxes.
143819
If you itemize your deductions, then your state taxes are deductible from your federal taxes.  Other common large deductions include real estate or property tax, interest on home mortgages, and (if you don't make too much money) the interest on student loans.
456285
The only way is to EXCHANGE them for other income property, called a SECTION 1031 TAX-DEFERRED EXCHANGE.  There are rules and time limits, and you cannot take out any cash without paying taxes on it.  If you cash out and just sell the properties, there is nothing to help offset or eliminate the capital gains tax at both the federal and state levels (if your state has income tax).  For more information, you can go look at the Federation of Exchange Accommodators website www.1031.org.
1167263
Here's the catch. When you sell a home, the transaction never goes beyond the county level. The only records the IRS will ever see are those provided by the bank, and what YOU tell them on your tax return. There is no space on the tax return that requires you to document how much PROFIT you made. You can buy a home for $100k, and sell lit 6 months later for $150k, but who's to say you didn't put $45k into repairs and remodeling, costs of selling, etc.? That means that you only have to declare $5k profit, IF you don't put it into another house. Don't volunteer any information, wait until they ask for it. They have to prove that you owe them money, you don't have to prove that you don't.
869035
the rental business is different from the development business.\n as a professional realtor mary gets special depreciation losses each year ( well by special i mean unlimited to the usual $25K)\nRENTALS are 1250 i think\n\nthe  accumulated depreciation on the rentals must be figured into the equation by adjusting the cost basis downward which may raise the gain up above a loss as you hypothexize. this will in turn create a tax liability of cap gain.\n\n land held for future development may be inventory of the develpoment business so selling it at gain  probably creates ordinary business income. perhaps require self-employment tax in addition to other ordinary income tax. these are not subject to cap gains rate \n\nPS he is probably active participant on rental property but must answer questions about this from facts of case. he must manage it some etc.it sounds like he is active participant to me.