I am a single parent. My 40-year-old daughter and my two grandchildren, aged 12 and 4, have been living with me for 2 years. Their father provides very little child support but will be claiming them as dependents. Can I claim any part of their room and board expenses without being able to claim them as my dependents?

August 3rd, 2024

Can a parent still claim a child as a dependent on their tax return if the child claimed an education credit on their personal return?

August 23rd, 2023

We short sold our rental property in March 2012. The loan was non-recourse, and we received a 1099c with a debt discharged of $50,000. The property's fair market value was listed as $0, and we are insolvent for the full amount of the discharged debt. The property's basis was $160,000 with $7000 in depreciation, totaling $153,000. The property short sold for $140,000. Do we still apply the debt discharged to the basis of the house, bringing the total to $103,000, and would this show a capital gain of $37,000 that needs to be listed as income? Or does the insolvency completely remove the $50,000 from our tax liability?

August 30th, 2024

When can we start deducting expenses incurred during the startup phase of constructing a preschool? We have been constructing for the last 2 years and are nearly done. We have incurred several expenses, including loan interest and utilities. What criteria must be met for realizing these expenses? Is getting an occupancy permit sufficient, or should the business be up and running?

September 4th, 2024

How can I ask a US bank to take a 10% withholding on interest payments from US sources, as per the US-Australia tax treaty, when I am a US and Australian citizen living permanently in Australia?

September 7th, 2023