Tax Question (and answer) Tuesday
It's Tax Question Tuesday. Here are a few that you sent in and some answers.
You can submit your tax questions online at www.sunsentinel.com/itsyourmoney or leave a message at 954-356-4628
I have been paying my 35-year-old son’s rent and food bills because he cannot find a job. Can I claim him as a dependent even though he does not live under my roof. I also send my grandson to college and lives with me. Can I deduct college fees?
Annetta Boer, Lantana
You can claim your unmarried son as a dependent because you provide more than half his support and he’s a qualifying relative, says Phillip Sroka, a certified public accountant and partner at Morrison, Brown, Argiz & Farra in Miami.
As for your grandson, you can deduct college fees only if you claim him as a dependent and you can only do that if no one else claims him. As long as he is under age 24 and is a student, you can claim him if you provide more than half his support.
I own a condo that I have been renting out since January 2009. Can I deduct the principal and interest on the mortgage payment? What about taxes and maintenance fees? And depreciation? Do I have to depreciate the property? I want to sell it after the market gets better.
Jennie, Hollywood
You can deduct the interest but not the principal, Sroka said. You can also deduct taxes, maintenance fees, utilities, insurance and repairs as well.
As for depreciation, you are allowed to depreciate the basis of your property – which is its original cost plus any improvements – for the building portion only, not the underlying land.
I just received in the mail form from the IRS for estimated taxes for next year. I don’t understand why they are sending me this form as I am retired and I filed a simple return last year.
Joe Hosford, Fort Lauderdale
“Just because the IRS sent him a form does not require him to fill them out,” Sroka said.
You would only need to make estimated tax payments if you expect your income tax liability to be $1,000 more than any amount you’ve had withheld from pension payments or any source you have for income.
Harriet Johnson Brackey, the personal finance columnist for the Sun Sentinel, is an award-winning business reporter. Her columns for 2008 were named "The Best in the Business," a national award chosen by her colleagues at the Society of American Business Editors and Writers.
Comments
The answers are not complete and may mislead some people.
Posted by: Silvio | February 2, 2010 1:34 PM
What's not complete? What's misleading?
We of course can't cover every possible nuance of tax law, but these fit the bill for general answers, I think.
Posted by: Harriet Johnson Brackey | February 2, 2010 1:36 PM
Do you know where I can find a date ?
Posted by: Tiger has a big wood | February 2, 2010 1:56 PM
I'm not sure the answer to Annetta Boer of Lantana is correct. For her 35 year old son to be a qualifying relative, I think he would have to have lived with her all year. Her question says he did not live with her.
Posted by: Scott | February 2, 2010 2:10 PM
I'm not sure the answer to Annetta Boer of Lantana is correct. For her 35 year old son to be a qualifying relative, I think he would have to have lived with her all year. Her question says he did not live with her.
Posted by: Scott | February 2, 2010 2:16 PM
The 35 year old can be claimed as a qualifying relative. Must meet four tests: relationship, gross income, support and dependency (not a dependent of another).
Posted by: Oh Please | February 3, 2010 7:03 AM
The first question doesn't address the gross income test since the Son is over 24 years old. The second question didn't answer if someone must take Depreciation on rental property. Yes, they are required. The third question doesn't address the fact that if she had zero tax liability in the previous year, then, she can pay the tax due when filing the tax return with no penalties.
Posted by: Silvio | February 3, 2010 9:28 AM
WHAT CAN YOU FILE THIS TIME THAT YOU COULD NOT LAST YEAR.
Posted by: ALAN JOHNSON | February 3, 2010 8:44 PM
does an elderly couple living on ss with no stocks or bank acct have to file taxs
Posted by: larry hechtman | April 1, 2010 1:36 PM
Shoe soles of the feet will Ugg Boots UK. smell normal sweating is due to the reason. Moncler Jackets Outlet Soles of the feet per square centimeter Moncler Outlet.the feet than other parts of the sweat glands several times Cheap Ugg Boots UK.
Posted by: Ugg Boots UK | October 7, 2011 3:38 AM
Excellent news , I really like this write! I enjoy it so much! I hope you give me more interesting topics to read on. Thanks for give me a good reading moment!
Posted by: wholesale sunglasses | October 16, 2011 10:19 PM