I began renting out my house on September 1, 2008. I have calculated the cost basis of the house as the price paid in 1983 plus improvements totaling $205,000, divided by 29.5 years. I have spent $7,700 on repairs and maintenance just before renting. How should I calculate the exact number of days from September 1 to December 31 for depreciation purposes? Can I deduct the entire $7,700 for 2008? For taxes, insurance, water, etc., should I prorate the monthly cost or deduct when actually paid? Additionally, if I use the Fair Market Value (FMV) as of the rental conversion date, how will the capital gains tax work if I sell the house for more than the FMV?

May 26th, 2024

As a seaman working in Angola offshore on a construction vessel for a Dutch company, do I have to pay tax in Angola?

February 25th, 2023

How can I avoid paying capital gains taxes when I sell my house, especially since I am disabled and currently live in an apartment? Can I use the house as my personal residence, or should I invest the money in another property?

May 17th, 2024

I owned an S corporation in Michigan that shut down and no longer exists in the state. I received a bill for taxes due from 2009 - long after the corporation was closed. Taxes were paid at the time of the return, but the state said that after reviewing the return, there is a balance due. I had a tax firm complete the tax returns. The company is no longer in operation. As the sole officer, am I responsible for the state of Michigan tax debt?

July 5th, 2023

A residential home owned jointly by children and a parent is pending sale after the parent's death. The home was acquired in 1993 for $1.00 after the parent's illness. None of the children lived in the home for the required amount of time needed for exclusion of capital gains. What are the tax consequences on selling the home, and is there a way to exclude the capital gain tax?

December 27th, 2024