All,

I have been Googling trying to find this information for days, but
with no luck.

I live in a new 4-unit building. Our real estate taxes for the
building were paid by the association through 2007, as we did not get
individual bills for our units until this year. Since we are a small
building, we run our own association and one of the owners acts as the
treasurer.

It seems to me that each unit should be able to deduct their
percentage of ownership of the building on their 2007 taxes.

Assuming this is the case:

1. Could someone point me toward something in the tax code that
indicates this is allowed?
2. How would the association furnish proof/documentation of this
payment (and each individual's share) to the IRS?

Thanks in advance for any info.

Phil

Hi,

I have couple of questions:

1. If I purchase land for investment, is the interest on loan used to
make the purchase, or property tax paid on it deductible for income
tax purposes?

2. If I purchase land for building a second home, and the process for
building the home will take abt 24 months, when can I start deducting
the interest and property tax (if not right from purchase time).

Thanks in advance for any information.

CCH TAX NEWS for January 31, 2008

FEDERAL NEWS

Senate Finance Approves Modified Baucus Stimulus Plan
http://tax.cchgroup.com/news/headlines/2008/nws13108.htm#1

Final Regs Update Procedures for Requesting Release of Tax Liens (T.D.
9378)http://tax.cchgroup.com/news/headlines/2008/nws13108.htm#2

IRS Warns Taxpayers of New E-Mail, Telephone and Rebate Scams
(IR-2008-11)http://tax.cchgroup.com/news/headlines/2008/
nws13108.htm#3

STATE NEWS

Arizona --Corporate Income Tax: NOL Carryforward Calculation,
Municipal Bond Taxation Affirmed
http://tax.cchgroup.com/news/headlines/2008/nws13108.htm#4

Florida --Property Tax: Voters Approve Tax-Relief Amendments
http://tax.cchgroup.com/news/headlines/2008/nws13108.htm#5

Michigan --Multiple Taxes: Governor Proposes Job Creation Tax Credit
http://tax.cchgroup.com/news/headlines/2008/nws13108.htm#6

Missed a headline? Click here to review last week's tax news
http://tax.cchgroup.com/news/default.asp?PageID=4

From IRA Pub 564
"If you received a capital gain distribution or were allocated an
undistributed capital gain as a nominee, report only the amount that
belongs to you on line 10 of Form 1040A, line 13 of Form 1040, or
Schedule D (Form 1040), whichever is appropriate. Attach a statement to
your return showing the full amount you received or were allocated and
the amount you received or were allocated as a nominee."

Each of the tax prep programs I've tried (TaxAct, TaxCut, TurboTax)
treat nominee interest and ordinary dividends correctly (i.e. subtotal
and subtract nominee amount on schedule B), but ignore nominee cap
gains. No statement is created as required per Pub 564.

Since I have to manually create the required statement, does that mean I
can't use any of these tax prep programs to e-file?

Today is 1/31/08, the letter carrier has come and we are still short
2 W2s (2 employers) and 2 1099s (one brokerage firm). I'll call
tomorrow. I'd like to sic the IRS on these people but it appears the
the USPS has until 2/15/08 to deliver.

Any suggestions on encouraging earlier delivery next year.

========================================= MODERATOR'S COMMENT:
Remember, that January 31 is the day for a company to place the
forms in the mail, and it might take a few more days for the Post Office
to deliver. And, as you said, the IRS is not likely to get excited before
February 15.

I am selling my 25%% TIC interest in an apartment building that I acquired in 1993. I do not live in the building. The selling price exceeds the basis (and the original purchase price).

Do I understand that I am required to allocate a part of the sale price to personal property that I have been depreciating (carpets, refrigerator, stove)? If so, any suggestions as to how one determines the current value of a roomful of 3 year old carpet (and 2 year old carpet and 4 year old carpet) , as well as used appliances of various ages. I am talking small amounts here - my share of the cost of a refrigerator is $100, my share of the carpet in some of the units is $400. Looking for practical, rather than theoretical, advice.

Is the personal property what is termed Section 1245 property?

Thanks for your help.

Robert Leavitt

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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I am an independant contractor. One of my clients reimburses me for 100%%
of travel expenses at actual, based on a detailed travel expense report
that breaks out transportation, lodging, meals, etc. The client included
the amount of the reimbursement on my 1099-Misc as part of my total
compensation. Am I allowed to deduct the full amount from my business
income or am I affected by 50%% deduction limit? I'm using Turbotax and it
does not appear to have any way to address this question.
Thanks.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Starting in January, I took a job in Washington DC. Prior to that, my
husband and I both work and live in California. We own a house in
California. My husband is looking for job opportunities in Washington
DC. Until that happens, I will be living in temporary places in DC.

We would like to continue filing our taxes jointly, but I don't know
how to address the income tax issue. Is my income in DC taxable in
California, and vice versa is my husband's income taxable in DC?
Does it matter if I don't have a permanent residence in DC? Does DC
have any agreements with DC such that we can just file jointly in CA
and not file in DC?

I won't have a permanent mailing address in DC for while, so I can
send my W-2 to my CA address or to a friend's address in Maryland or
Virginia? Does it matter where I have my W-2 mail to?

On Thu, 31 Jan 2008 01:02:49 EST, "removeps-groups@yahoo.com"
yahoo.com> wrote:

Snip

I disagree! How can you amend a return that was never filed? The
correct process is to file Form 1040 for each year, as if you were
filing on time. You should attach all Forms and Schedules that would
have been attached to a timely filed return.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

From CNNMoney.com

IRS warns of rebate scams (At least one aimed at accountants)

Identity thieves use economic stimulus plan to steal personal
information over the phone, Internet.

January 31 2008: 8:16 AM EST
WASHINGTON (AP) -- Even before Congress passes an economic stimulus
package, identity thieves are using promises of tax rebates to trick
people into revealing financial and personal data, the Internal Revenue
Service warned Wednesday.

Under one scheme, the IRS said, people are receiving phone calls telling
them they can only receive a rebate if they provide bank account
information for a direct deposit.

The tax agency stressed that it does not collect information by
telephone and that no legislation has been enacted that would allow it
to provide advance payments to taxpayers or that specifies the details
of those payments.