Even though there are only a few days left in the year, there is still time to benefit your favorite charities while saving taxes on your 2012 return by making charitable donations. If you expect to i...
With the holiday season upon us, many individuals take the time to give to those who are less fortunate. All giving is valuable, but from a tax perspective, not all giving is rewarded with a tax write...
Hurricane Sandy devastated large portions of the East Coast late in October. It left many people without homes; others struggled for days or weeks to regain power and have access to gas for their vehi...
Most people want to be charitable but many may lack the funds to make donations of cash or property. There are other ways to be helpful; some may even entitle the donor to a tax break:Donate bloo...
Not every deductible item can be fully written off in the current year. Some items must be deducted over a period of time, such as points for obtaining a mortgage on investment property. Some items ha...
Taxes usually aren’t on your mind in the summertime. You’ve already filed your 2011 return or obtained an extension and do not have to do so until October. However, there are some actions you may ...
Shakespeare said “past is prologue.” Was he talking about taxes? Maybe, because the carryovers you amassed in prior years can work to reduce your taxes now. Even better, these carryovers did not e...
Wealthy individuals can have ultimate control over their charitable dollars by setting up their own private foundations. These foundations are tax-exempt organizations required to distribute a set per...
With the holidays just around the corner, the last thing most people want to think about is taxes. However, you can keep more money in your pocket and enjoy the season even more if you remember certai...
Usually, you have to give to charity your entire interest in property in order to obtain a tax deduction. But with conservation easements, you can give a partial interest in the property and still obt...
No charitable deduction can be claimed for donations directly to individuals; only donations to IRS-recognized charities are deductible. Deductions are allowed only for items that are in good use...
You may be able to use your home to benefit charity while generating a deduction for you now-even if you never leave your home. Here are a couple of options. Conservation easements If you have propert...
If you want to claim an itemized deduction for your charitable contributions, be sure to note these 5 key points:Check whether the organization is eligible to receive tax-deductible donations. Do...
Half of 2011 is behind you now, so take this opportunity to assess where you stand and to take advantage of moves to be made before the end of the year that will save you taxes. The moves you make dep...
It's rare that you can have your cake and eat it, too, but that's just what happens in the case of conservation easements. Usually, you have to give your entire interest in property in order to obtain...
- For purposes of the 3.8% additional Medicare tax on net investment income in 2013, how does this relate to rental income?
- Can I make a direct transfer of my IRA to my church and qualify for tax-free treatment (up to $100,000)? I’m 72 years old.
- I sold my residence at a loss. How do I report this on my tax return?
- We had a cleaning service clean our home because my wife could not because of her medical issues and my being away on business. Can I deduct this cost?
Continuing Care Facilities and Nursing Homes
Elderly and infirm individuals may require round-the-clock care because of their age or condition. Comprehensive programs in special living arrangements are now used to care for these individuals. A portion of the cost may qualify as a deductible medical expense.
Advanced age and/or chronic illness may require ongoing daily treatment. Payments for nursing homes, convalescent homes, and sanitariums may be treated as deductible medical expenses. The deduction generally is not limited to the portion covering medical care; it also includes lodging and meals if confinement is primarily for the purpose of medical treatment.
If the main reason for admission is not medical care, you can still treat the portion of monthly fees allocable to medical care as a deductible medical expense. Typically, this applies to fees to continuing care facilities-the portion of the fees for medical care is deductible but the portion covering lodging and meals is not.
At the end of 2004 (the most recent year for statistics), 51 million taxpayers had IRAs with assets totaling $3.3 trillion.
Source: Spring Statistics of Income Bulletin
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