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#3
02-28-2005, 06:57 PM
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 Re: Allocation of mortgage interest and property taxes malakito wrote: - quote - > Community property state, wife has schedule C business with
That is what should result, but the correct thing to do is> legitimate home office that is 10% of our home by the square > foot method. Business started using the home office on > 7/1/2004. > Is it correct to put 5% of the mortgage interest and 5% of > the property taxes on schedule C and 95% on schedule A? to use Form 8829. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-28-2005, 06:38 PM
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| Re: Allocation of mortgage interest and property taxes "malakito" <malakitoatwork[at]hotmail.com> wrote - quote - > Community property state, wife has schedule C business with
If you are filing jointly, 10% of the home office expenses> legitimate home office that is 10% of our home by the square > foot method. Business started using the home office on > 7/1/2004. > Is it correct to put 5% of the mortgage interest and 5% of > the property taxes on schedule C and 95% on schedule A? seems to be what works out. -- Paul A. Thomas, CPA Athens, Georgia taxman at negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-28-2005, 06:38 PM
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| Re: Allocation of mortgage interest and property taxes malakito wrote: - quote - > Community property state, wife has schedule C business with
As the business use is for only half the year, you can only> legitimate home office that is 10% of our home by the square > foot method. Business started using the home office on > 7/1/2004. > Is it correct to put 5% of the mortgage interest and 5% of > the property taxes on schedule C and 95% on schedule A? deduct on the Schedule C, the expenses for the last half of the year. You would take the actual mortgage interest paid during the last 6 months and use 10% of that amount. Ditto for the actual real estate taxes paid during the last half of the year. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-28-2005, 06:19 PM
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| Re: Allocation of mortgage interest and property taxes "malakito" <malakitoatwork[at]hotmail.com> wrote: - quote - > Community property state, wife has schedule C business with
No. You put half the total mortgage interest and taxes on> legitimate home office that is 10% of our home by the square > foot method. Business started using the home office on > 7/1/2004. > Is it correct to put 5% of the mortgage interest and 5% of > the property taxes on schedule C and 95% on schedule A? Form 8829; effectively you end up with what you state, but the IRS has a long way round to get there. -- Tom Healy, CPA Boulder, CO Web: http://www.tomhealycpa.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-27-2005, 02:31 PM
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| Allocation of mortgage interest and property taxes Community property state, wife has schedule C business with legitimate home office that is 10% of our home by the square foot method. Business started using the home office on 7/1/2004. Is it correct to put 5% of the mortgage interest and 5% of the property taxes on schedule C and 95% on schedule A? Thanks! << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| allocation, interest, mortgage, property, taxes |
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