0
What 1040 form is typically filed when a taxpayer only has a home mortgage interest deduction?
Wiki User
∙ 6y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Can Taxpayer A who actually paid all the real estate taxes and mortgage interest on a personal residence in which only he lived but his mother co-owns and cosigned on take a deduction for all of it?
If Taxpayer A was a legal or equitable owner of the property, then yes. You didn't specifically say who the mother co-owns the property with, but if Taxpayer A's name is on the title, there should be no problem. If the mother didn't actually pay any of the deductible expenses, she cannot claim a deduction for them.
What is the IRS form 1098 used for?
The IRS 1098 form is used to report mortgage interest and other expenses related to one's mortgage to the IRS. If more than a certain amount is paid in a taxable year, the taxpayer may be eligible for deductions to her taxable income.
How do you claim yourself on your taxes?
In the US, you would be the taxpayer and there is a standard deduction used in figuring out your net income for tax purposes.
How much federal tax is withheld on income of 12900?
Standard deduction can be about 20%. The taxpayer can opt to have more than the minimum tax deducted.
Where on a personal tax return does s deduction for depletion get claimed?
Well, it would be sort of complex, generally part of a Schedule C calulation, but maybe elsewhere if the allied income is coming on a K1 or 1065. You would most likely want to align it to the income it reduces. And it depends if it oil & gas or timber. All exhaustible natural deposits and timber qualify for deduction of a reasonable allowance for depletion based on the taxpayer's cost or other basis of the resources—cost depletion. For mines and certain interests in oil or gas wells, the depletion deductions may be computed as a specified percentage of gross income if that is greater than cost depletion. A taxpayer can claim percentage depletion on one property and cost depletion on another, or claim, on the same property, cost depletion for one year and percentage for another. Where the property is entitled to either cost or percentage depletion, the allowable deduction is the greater of the two. (Code Sec. 613) Percentage depletion for oil and gas wells (except for gas from certain domestic geothermal deposits or geopressured brine) is limited to “independent producers and royalty owners,”. The allowable deduction is never less than cost depletion. (Code Sec. 611, Code Sec. 612, Code Sec. 613) There's no official form for computing depletion, but Form T must be attached to the income tax return if a deduction for depletion of timber is taken. The basis of the property must be reduced by the depletion deduction allowed or allowable, whichever is larger. A taxpayer may take a depletion deduction only if he owns an “economic interest” in the mineral deposit or the timber. Owners of an economic interest include: (1) owner-operators; (2) lessors and lessees, even where the lessee has an economic interest under a lease terminable without cause on short notice; (3) owner of a royalty interest, or retained net profits interest; and (4) owners of a production payment to the extent it isn't treated as a mortgage loan. (Reg § 1.611-1(b))
To deduct mortgage interest do you need to be on the loan or the title?
Certainly on the loan, for property you occupy. An interest deduction is generally not allowed if the taxpayer's liability is not primary and direct.. There is an exception to this general rule that allows a taxpayer to deduct interest he pays on a mortgage if he is the legal or equitable owner of the property, even though he is not directly or personally liable on the bond or note secured by the mortgage. The effect of this exception is to permit the deduction of interest in situations when the taxpayer-borrower is not personally liable on a mortgage of property that is used as security for a loan made to the taxpayer. The Tenth Circuit has stated that the concept of equitable title to realty for this purpose is generally limited to two situations: when legal title to property is held by a trustee, in which case equitable title is said to be in the beneficiary; and when real estate has been sold under a contract for deed with legal title retained by the seller until the purchase price is totally paid, in which case its purchaser is said to be the equitable owner during the payoff period.
Your son is going to take over paying your mortgage Can he deduct the interest on his taxes Does his name have to be on the loan the title both or neither?
Again - he can't just pay a mortgage on anyones house and claim the deduction...it has to be his residence. Then if he is paying it, on the title or not, there are court cases saying that basically he paid the interest to you and you paid the mortgage. But again...you better be able to prove it is his home.An interest deduction is generally not allowed if the taxpayer's liability is not primary and direct.. There is an exception to this general rule that allows a taxpayer to deduct interest he pays on a mortgage if he is the legal or equitable owner of the property, even though he is not directly or personally liable on the bond or note secured by the mortgage. The effect of this exception is to permit the deduction of interest in situations when the taxpayer-borrower is not personally liable on a mortgage of property that is used as security for a loan made to the taxpayer. The Tenth Circuit has stated that the concept of equitable title to realty for this purpose is generally limited to two situations: when legal title to property is held by a trustee, in which case equitable title is said to be in the beneficiary; and when real estate has been sold under a contract for deed with legal title retained by the seller until the purchase price is totally paid, in which case its purchaser is said to be the equitable owner during the payoff period.
Can Taxpayer A who actually paid all the real estate taxes and mortgage interest on a personal residence in which only he lived but his mother co-owns and cosigned on take a deduction for all of it?
If Taxpayer A was a legal or equitable owner of the property, then yes. You didn't specifically say who the mother co-owns the property with, but if Taxpayer A's name is on the title, there should be no problem. If the mother didn't actually pay any of the deductible expenses, she cannot claim a deduction for them.
A Select List of Tax Deductions?
OverviewIndividual taxpayers, as opposed to businesses, have two general lists of tax deductions available. The first group consists of deductions that can be taken without regard to meeting the standard deduction and are not listed on Schedule A. The second group consists of those that must be itemized on Schedule A. This second type will not be used if the total does not exceed the standard deduction.This is only a partial list of the tax deductions available. It represents some of the most commonly used deductions.Mortgage DeductionThis is an itemized deduction. The taxpayer can deduct mortgage interest, points, and mortgage interest premiums. Some limits may apply to the allowable deduction based on the purchase price of the property, and the expenses must be related to the taxpayer's primary or secondary residence.IRA ContributionThis is not an itemized deduction. As much as $6,000 is available per person (taxpayer and spouse) when filing jointly, but the IRS applies several tests based on income and circumstance that can reduce the deductible amount.Charitable ContributionsThis is an itemized deduction. Contributions must have been made to an IRS-qualified organization. Donations of cash, property, and out-of-pocket expenses are potentially eligible and must be documented. Limits apply based on adjusted gross income, but donations not deductible in one year can be carried over to the next.Educational ExpensesThis is not an itemized deduction. Qualified student loan interest, tuition, and fees can be deducted, although limits might apply based on the modified adjusted gross income. These deductions should not be confused with education credits. Each program has its own rules, and the taxpayer should calculate his tax liability under both methods to determine which gives the better result.Medical ExpensesThis is an itemized deduction. Allowable medical and dental expenses are described in IRS Publication 502. Only those expenses that exceed 7.5 percent of the taxpayer's adjusted gross income can be deducted. The taxpayer may deduct the expenses paid for herself, her spouse, dependents claimed on her return, a child not claimed on her return, and certain other non-dependents.State and Local TaxesThis is an itemized deduction. State and local income, sales, personal property, and real estate taxes can all be deducted on the federal tax return.
What is the IRS form 1098 used for?
The IRS 1098 form is used to report mortgage interest and other expenses related to one's mortgage to the IRS. If more than a certain amount is paid in a taxable year, the taxpayer may be eligible for deductions to her taxable income.
How is property tax paid?
Property taxes are local taxes. Each taxing district makes up its own rules. Generally, they send the taxpayer a bill. Some places it is annual, other places semi-annual or even quarterly. In many localities, the taxpayer has the option of mailing a check, using an electronic payment, or paying in person. If the taxpayer has a mortgage and the mortgage company is holding escrow payments, then the taxpayer usually forwards the bill to the mortgage company to be paid.
How do you claim yourself on your taxes?
In the US, you would be the taxpayer and there is a standard deduction used in figuring out your net income for tax purposes.
When does the mortgage interest reduce your tax bill in US?
To take tax advantage of your home loan's interest, the amount of your itemized decoctions must exceed the standard deductions. For 2007, the standard deductions are 5,350 for single taxpayer, 7,850 for head of household, and 10,700 for married couples.
How much federal tax is withheld on income of 12900?
Standard deduction can be about 20%. The taxpayer can opt to have more than the minimum tax deducted.
Where on a personal tax return does s deduction for depletion get claimed?
Well, it would be sort of complex, generally part of a Schedule C calulation, but maybe elsewhere if the allied income is coming on a K1 or 1065. You would most likely want to align it to the income it reduces. And it depends if it oil & gas or timber. All exhaustible natural deposits and timber qualify for deduction of a reasonable allowance for depletion based on the taxpayer's cost or other basis of the resources—cost depletion. For mines and certain interests in oil or gas wells, the depletion deductions may be computed as a specified percentage of gross income if that is greater than cost depletion. A taxpayer can claim percentage depletion on one property and cost depletion on another, or claim, on the same property, cost depletion for one year and percentage for another. Where the property is entitled to either cost or percentage depletion, the allowable deduction is the greater of the two. (Code Sec. 613) Percentage depletion for oil and gas wells (except for gas from certain domestic geothermal deposits or geopressured brine) is limited to “independent producers and royalty owners,”. The allowable deduction is never less than cost depletion. (Code Sec. 611, Code Sec. 612, Code Sec. 613) There's no official form for computing depletion, but Form T must be attached to the income tax return if a deduction for depletion of timber is taken. The basis of the property must be reduced by the depletion deduction allowed or allowable, whichever is larger. A taxpayer may take a depletion deduction only if he owns an “economic interest” in the mineral deposit or the timber. Owners of an economic interest include: (1) owner-operators; (2) lessors and lessees, even where the lessee has an economic interest under a lease terminable without cause on short notice; (3) owner of a royalty interest, or retained net profits interest; and (4) owners of a production payment to the extent it isn't treated as a mortgage loan. (Reg § 1.611-1(b))
What is the purpose of IRS schedule A?
Schedule A of the 1040 individual tax return is where a taxpayer will list itemized expenses if they wish to itemize. The 1040 tax return allows taxpayers the option of taking a standard deduction or to use the amount listed on their Schedule A (Itemized Expenses). Less and less people use Schedule A as the standard deduction is increased every year. With low mortgage rates most people no longer have enough itemized expenses to exceed the standard deduction. Since you can use either the standard deduction or the itemized expenses, you want to take the one that allows you to reduce your taxable income the most. This has left more and more people better off to take the standard deduction.
How much is the IRS personal deduction?
For taxpayer using the single filing status the 2009 exemption amount is 3650 and the standard deduction amount is 5750 for a total amount of 9350 free of federal income tax for the tax year 2009.
