You're watching...
Wealth Health Managing Director Rich Coppa answers some last-minute tax filing questions.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- has already received 99 million tax returns so far this year and that's 2% more than last year this time.
But -- last minute tax filers you still haven't gotten -- and good for you we have some professional advice here from rich cop but the managing director of wealth helped rich great to see you again.
Healy went to the streets looking for some questions and we got this one on home office deductions.
Here's the question.
I'm consider 1099 employees that there's a lot of things -- can -- -- it's like what's considered appropriate write off any major concern was whether or not I can write off my home office -- -- -- -- my work from home.
Everybody wants to know the answer to this question even if they don't do most of their work from home -- and I qualify not at.
Trouble you can qualify mean not only -- self employed person but even someone who's an employee there's other rules for that but most of people -- do it herself and what people the key here is is the two words exclusively and regularly have to use the party your home exclusively and regularly for your -- business so.
If you can meet that test and it's not just casual use of your home.
We really have users find the percentage of your home that you're using for business purposes.
And therefore you can take the deductions for things that are otherwise personal expenses that you wouldn't things like.
Utility bills -- -- our -- okay electric gas may be homeowner association maintenance on the home taxes interest so take a proportion take proportion and it's good for folks that might be in -- standard deduction wouldn't otherwise get the item.
I looked back and more here we have a FaceBook comment from Tracy she says.
I wasn't worried -- right -- gets to your children if you have to be a large sum of money what are the requirements for such right -- Yeah I was aware of it either I think the issue here is the difference between income tax and gift tax because right you can make multiple gifts of thirteen thousand or less to as many people as you want next annual exclusion amount.
Which business that you don't fog of tax return so it really is a good strategy if you're trying to -- money away.
And reduce your state or even just to enhance the benefit of the person you're given the gift to you can do that to your children know deduction unfortunately are right.
-- -- Iraq's you know a lot of people out there this is the year to do it -- that we needed now well I think the thing that people get up caught up on his -- to -- this year in particular.
When you convert to a -- -- income is taxable.
All of it is taxable this year 2011 unlike last year we could've had.
You know the bifurcation of the tax over two years.
I'm sorry in 2009 we -- done over two years so you -- -- half.
Do this year.
If you convert to -- this year you have the full amount this year you might even have some the dangling one half -- you did in prior years are not giving up professional advice and -- really tricky.
All right -- had a question about savings bonds -- -- My income went up substantially because I turned and so -- series.
Last below so I had to pay taxes on that my question is.
How can I get away from paying -- -- Out not to pay taxes -- I had a question.
Well I had on the magic answer to that whenever when but I I think what we have to be aware -- here -- she said series.
1980 so they matured thirty year bonds in 2000 -- she really should of had this interest income on her 2010.
Tech -- -- is right.
However offer series double leave she meant that you basically include the interest when you either turn amending -- redeem them so that's basically OK you know.
Now here's tricky like capital gains on investment property people -- now what to make us how to handle it -- say yeah capital gains on doesn't property thing I think most people get tripped up bond is.
The gain that's also part of the depreciation in other words if you had investment property depreciated meaning you took a deduction over the past five years six years whatever.
That reduce ordinary income now when you sell the property.
Any gains.
Is gonna be taxed as ordinary income to the extent you have depreciation.
Very simple -- had hundred dollar property depreciate by 400 it's over for a hundred that for hunters back its ordinary income not capital gains.
This is that really topped out and I thank you for trying to explain it on television that was brave and Alan didn't get to get a higher rating having filed.
Actually just a bottle of the -- all right came into this really it's honestly yes I am on extension but I did have to go.
Make my payments and their forehead that drop in the dollar before I came here well good for you are right and everybody we've had -- so far as I've file their rates filed.
Rich thanks for coming on a great job pretty -- about.
