D. Stussy wrote:

- quote -

As I recall, over 40% of the nation's population resides in
community property states. In fact, if you called it "half,"
you wouldn't be that far off.

MTW

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D. Stussy wrote:
- quote -

More folks live in English Common Law and not Spanish, or
French, Civil law states. It seems strange that the folks
who live in such states have little knowledge of the
historical development of the separate states' legal
systems. Could it be the schools?

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Frederick Jorden wrote:
- quote -

I see that. However, 20%+ of us are (California has such a
large population, let's just count it twice, instead of
using 9/50). :-)

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D. Stussy wrote:
- quote -

I'm not and none of my clients currently are.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Frederick Jorden wrote:
- quote -

Half? [I'm in a community property state.] :-)

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Rocky wrote:

- quote -

The real fun comes when one of the spouses dies in the
middle of the year. Step up in basis for half of the assets,
etc.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Thank you, Harlan. No I didn't attach the election--but you
already knew that didn't you? (I'm sure that's not the first
mistake I made!) So onto sch A the interest goes.

Why the IRS decided to punish H/W 50-50 businesses and take
away our schedule Cs and push us into 1065 partnerships,
I'll never know. Everything was simpler for us then and it
looks to me like the tax bill (incl SE tax) comes out the
same every year anyway.

Thanks to Colorado tax guy also for his reply. Rocky (saving
the cognac for April 16)

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It's my interpretation that mortgagae interest on your
principal residence is excluded from the interest sourcing
rules (1.163-8T(m)(3)) and IRS publications indicate the
same. Therefore, home mortgage interest would always go on
Sch A regardless of what the funds were used for.

You may want to have the partnership simply reimburse you
for business-related auto expenses. If the partnership does
reimburse you, make sure you keep good documentation.

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Rocky wrote:

- quote -

If the proceeds were used only for the business vehicle,
then deductible on the form 1065 for your partnership, but
you must have attached an election to this effect. You DID
do that, didnt' you?

If not, then it's personal on schedule a.

- quote -

Hope you had some Cognac along with the coffee.

ChEAr$$$$,
Harlan Lunsford, EA n LA]
13 Apr 2005
ONLY two days more!

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Hello all,

Here is my question: In 2003 we (h/w) got a home equity loan
to buy a car for our business (partnership). It's a 2-person
H/W partnership. We are paying mtg interest for the car.
Should we deduct this as a business expense somewhere on
1065? Or on our personal 1040?

thank you. I'll make another pot of coffee and wait for your answer!

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