Archive for December, 2008
December 30th, 2008 | 
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My goal is to find the impact of my real estate interest deduction against my federal income tax return in real dollars?
Cristy Nassimi
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If there is a California capital gains (real estate) tax, what is the rate?
Lona Bringard
My father died recently and I need to know if I will have to pay a death tax this coming tax season. Is this tax dependent on the value of the estate or any other factors? We are going to sell his house, but he had no other assets. The most we’ll each get is about $12,000, if even that. He was disabled and on wellfare at the time. I always would ask him for tax information so I have no idea now.
Brande Decarr
I am planning on buying my mom’s house for what she owes on it. There is a lot of equity in the house. When I sell the house in a few years, I want to give her back the equity that is currently in the house, but I don’t want to be taxed for this. I guess you could say that she is loaning me the money until I sell the house later. Then I have to give it back.
What kind of attorney would I need to talk to regarding tax implications and this kind of “loan”? I want to protect both my mom and myself.
Thanks
Ross
Let say home value = $1,00,000
real estate tax for 1 yr. = 12,500 (@1.25% assuming CA rates)
lets further assume 80% of home is used for residential purpose while 20% is used for business purpose.
a) From pub 1024 A (itemized deduction), it indicates that the amount that can be deducted should not be for business use i.e., for above case only 80% of the total real estate tax can be deducted.
b) Pub 587 (Business use for home) indicates that one can deduct only business % of this tax i.e., for above case only 20% of the total real estate tax can be deducted.
Total deduction = 805 + 20% = 100%
From above it seems that if there is NO advantage in terms of saving real estate tax if one is using his/her home for business purpose.
Can someone confirm this?
Thanks!
Livia Dewaratanawan