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Posts Tagged ‘Cost Basis’
6 Proven Reasons to Make a Charitable Donation from Your IRA to Save Money
The American Taxpayer Relief Act of 2012 has temporarily extended the ability of certain taxpayers to make charitable donations from their IRA.
The Basics
Charitably inclined taxpayers over age 70 1/2 can donate up to $100,000 per year from their IRA to a qualified charity. This is known as a Qualified Charitable Distribution. The donation must be made directly from the … Continue reading »
How to Declare a Casualty Loss From Hurricane Sandy
Hurricane Sandy has left her mark. This included power outages, significant property damage and, sadly loss of life.
When (and How) to Declare the Sale of Your Primary Residence
Recently a new client came to us. The Internal Revenue Service ("IRS") was looking for $262,532 in back taxes. This was from the sale of their home two years ago.
Form 1099-S Reporting Requirements
Attorneys that handle real estate closings must report the proceeds on IRS Form 1099-S, Sale of Real Estate Property. There is an exception to this however. If the seller of the real … Continue reading »
3 Reasons You Likely Won’t Pay Income Taxes When You Sell Your Home
1) You Don't Have a Capital Gain
Due to the housing market, many homeowners no longer have a gain in their home. A gain is the sales price minus the cost basis. The cost basis is generally the purchase price of the property plus improvements. Improvements would include things like a new roof, new heating system or a deck being added to the home. Unfortunately many people … Continue reading »
5 Reasons Donors Should Give Appreciated Property
Donors should give appreciated property to their favorite charity. Appreciated property is property whose Fair Market Value exceeds the cost basis. Cost basis is generally what was paid for an item.
