In article <8569ab5b-2cea-4ed5-8147-20873c5c56be[at]v5g2000prm.googlegroups.com> ,
<petraparis44[at]gmail.com> wrote:
- quote -


Did he, now?

http://www.snopes.com/quotes/einstein/interest.asp

http://knol.google.com/k/hananya-goo...jcki7u2hhmj/2#

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ArtKamlet at a o l dot c o m Columbus OH K2PZH

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JoeTaxpayer wrote:
- quote -

To amplify for the OP, the deduction is taken on Form 1040, Line 39c
(assuming 39b isn't checked which has to do w/ a spouse itemizing
independently or other arcana) _if_ don't file Sch A (itemized
deductions). The instructions are on p 34 of the 1040 book (just picked
up one yesterday and skimmed it so happened to have noticed the change
which is highlighted in the instructions/example reference form).

The limit is $500 single, $1000 joint but no more than actually paid.

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

petraparis44[at]gmail.com wrote:
- quote -

It means that, if you check the box on Form 1040 line 39c, you can
increase your standard deduction by the lesser of your domestic
non-business real-estate taxes paid, or $500/$1000.

One common example: you are a long-time homeowner whose mortgage is
paid off but you still pay state property tax on the home. Before this
year, you probably didn't itemize and didn't get a break. Now, even
without itemization, you get a small break.

- quote -

Just $387. On 2008 Form 1040, line 39.

- quote -

Well, you don't deduct your state taxes from your federal taxes, but
possibly from your AGI. (I don't know without looking it up if any
states give a credit for federal taxes paid, but I think some do...)

"State taxes" is not specific enough -- do you mean income taxes, sales
taxes, use taxes, franchise taxes, unemployment taxes, disability
insurance taxes, sneezing taxes? (just joking on that last one...)
Taxes (but not penalties) directly related to your business are usually
deductible on Schedule C.

- quote -

You're welcome, I think! ;-)

-Mark Bole

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

petraparis44[at]gmail.com wrote:
- quote -

Ok, you did quote the IRS correctly, and this was news to me.
http://tinyurl.com/IRS2009 (a direct link to the IRS announcement)
offers your line and a few other items.

One takes real estate tax on schedule A, but if you don't exceed the
standard deduction, you'd not do schedule A at all. So the IRS
(congress, really) has given you an up to $1000 deduction if you are a
standard deduction filer. In your case your standard deduction just went
up $387. This does nothing for us schedule A'ers as we take the full
property tax anyway, unless we are in AMT land, then we're just glad to
do our part.....

Joe

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >

I have this directly from the IRS website:

For taxes 2008:

New this year, taxpayers can claim an additional standard deduction,
based on the state or local real-estate taxes paid in 2008. Taxes paid
on foreign or business property do not count. The maximum deduction is
$500, or $1,000 for joint filers.

What does this actually mean?

Let's say, my real estate taxes are 387 Dollars per year, can I deduct
USD 500? Or just 387 Dollars per year?
And where do I deduct it? On what form?

And please let me also know if I can deduct state taxes:
Let's say that I had to pay state taxes to my state in a total of
450,-- How much of state taxes can I deduct from my federal taxes as
sole proprietor of a little business?

I think I am aging my doing my taxes as it is so complicated. Grey
hair that people getting over doing their should be deductible.
If a financial professional as Mr. Thomas Gaither doesn't get it
right, how can the rest of us get it right?

Einstein said that nothing is more complicated than the U.S. Tax Code.
Do you know what it means? Flying a space ship through space must be
easier.

Thanks in advance for anybody who helps me to figure these two
questions out.

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >