I also have a confusion about what kind of taxes I can deduc

gene20077 · Joined: 18 Feb 2008 Posts: 7

In 2007, I paid state, country and local taxes. All kind of taxes,
real estate taxes, library taxes, school taxes, taxes for program, and
I don't even know what kind of programs they are but state, county and
local government wanted me to pay them, so I paid them, etc.

What kind of taxes can I deduct? 100 % of all those state, country or
local taxes? Or just certain taxes and certain procentages?

Thanks in advance.

Archived from group: misc>taxes

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

wrote
> In 2007, I paid state, country and local taxes. All kind of taxes,
> real estate taxes, library taxes, school taxes, taxes for program, and
> I don't even know what kind of programs they are but state, county and
> local government wanted me to pay them, so I paid them, etc.
>
> What kind of taxes can I deduct?

On Schedule A, you can deduct personal income taxes paid to state and/or
local governments. The taxes ~must~ be based on your income to be
deductible. So user fees, propgram taxes, library taxes, etc, if not nased
on your income do not qualify. You may elect to deduct state and local
sales taxes paid instead of state and local income tax - see Schedule A for
the details.

On Schedule A, you can also deduct property taxes to state and/or local
governments. The tax ~has~ to be based on the value of the property, so a
street light tax may not fit that bill (they gneerally are a fixed amount
and do not differ by property values).

Taxes paid by a business activity are deductible on the appropriate business
form or schedule.

--
Paul A. Thomas, CPA
Athens, Georgia

gene20077 · Joined: 18 Feb 2008 Posts: 7

On Feb 18, 4:58 pm, "Paul Thomas, CPA"
wrote:
> wrote
>
> > In 2007, I paid state, country and local taxes. All kind of taxes,
> > real estate taxes, library taxes, school taxes, taxes for program, and
> > I don't even know what kind of programs they are but state, county and
> > local government wanted me to pay them, so I paid them, etc.
>
> > What kind of taxes can I deduct?
>
> On Schedule A, you can deduct personal income taxes paid to state and/or
> local governments. The taxes ~must~ be based on your income to be
> deductible. So user fees, propgram taxes, library taxes, etc, if not nased
> on your income do not qualify. You may elect to deduct state and local
> sales taxes paid instead of state and local income tax - see Schedule A for
> the details.
>
> On Schedule A, you can also deduct property taxes to state and/or local
> governments. The tax ~has~ to be based on the value of the property, so a
> street light tax may not fit that bill (they gneerally are a fixed amount
> and do not differ by property values).
>
> Taxes paid by a business activity are deductible on the appropriate business
> form or schedule.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia

School taxes, I can't deduct but if I use the library for my business,
I can deduct, is that what you are saying?

Gene

P. Maffia · Joined: 10 Nov 2007 Posts: 117

If they are included on your property tax bill, they are deductible. You
don't separate your property tax bill into its individual components. Your
total property tax bill is a single deduction on Schedule A as an individual
taxpayer.

wrote in message @i12g2000prf.googlegroups.com...
> On Feb 18, 4:58 pm, "Paul Thomas, CPA"
> wrote:
>> wrote
>>
>> > In 2007, I paid state, country and local taxes. All kind of taxes,
>> > real estate taxes, library taxes, school taxes, taxes for program, and
>> > I don't even know what kind of programs they are but state, county and
>> > local government wanted me to pay them, so I paid them, etc.
>>
>> > What kind of taxes can I deduct?
>>
>> On Schedule A, you can deduct personal income taxes paid to state and/or
>> local governments. The taxes ~must~ be based on your income to be
>> deductible. So user fees, propgram taxes, library taxes, etc, if not
>> nased
>> on your income do not qualify. You may elect to deduct state and local
>> sales taxes paid instead of state and local income tax - see Schedule A
>> for
>> the details.
>>
>> On Schedule A, you can also deduct property taxes to state and/or local
>> governments. The tax ~has~ to be based on the value of the property, so
>> a
>> street light tax may not fit that bill (they gneerally are a fixed amount
>> and do not differ by property values).
>>
>> Taxes paid by a business activity are deductible on the appropriate
>> business
>> form or schedule.
>>
>> --
>> Paul A. Thomas, CPA
>> Athens, Georgia
>
> School taxes, I can't deduct but if I use the library for my business,
> I can deduct, is that what you are saying?
>
> Gene
>

gene20077 · Joined: 18 Feb 2008 Posts: 7

On Feb 18, 6:25 pm, "P. Maffia" wrote:
> If they are included on your property tax bill, they are deductible. You
> don't separate your property tax bill into its individual components. Your
> total property tax bill is a single deduction on Schedule A as an individual
> taxpayer.
>
> wrote in message
>
> @i12g2000prf.googlegroups.com...
>
> > On Feb 18, 4:58 pm, "Paul Thomas, CPA"
> > wrote:
> >> wrote
>
> >> > In 2007, I paid state, country and local taxes. All kind of taxes,
> >> > real estate taxes, library taxes, school taxes, taxes for program, and
> >> > I don't even know what kind of programs they are but state, county and
> >> > local government wanted me to pay them, so I paid them, etc.
>
> >> > What kind of taxes can I deduct?
>
> >> On Schedule A, you can deduct personal income taxes paid to state and/or
> >> local governments. The taxes ~must~ be based on your income to be
> >> deductible. So user fees, propgram taxes, library taxes, etc, if not
> >> nased
> >> on your income do not qualify. You may elect to deduct state and local
> >> sales taxes paid instead of state and local income tax - see Schedule A
> >> for
> >> the details.
>
> >> On Schedule A, you can also deduct property taxes to state and/or local
> >> governments. The tax ~has~ to be based on the value of the property, so
> >> a
> >> street light tax may not fit that bill (they gneerally are a fixed amount
> >> and do not differ by property values).
>
> >> Taxes paid by a business activity are deductible on the appropriate
> >> business
> >> form or schedule.
>
> >> --
> >> Paul A. Thomas, CPA
> >> Athens, Georgia
>
> > School taxes, I can't deduct but if I use the library for my business,
> > I can deduct, is that what you are saying?
>
> > Gene

Thanks, they are included in my property tax bill. I am using the
house half for business and half private.
That means that I could deduct 50 % of that tax bill. Is that right?

Gene

P. Maffia · Joined: 10 Nov 2007 Posts: 117

wrote in message @h11g2000prf.googlegroups.com...
> On Feb 18, 6:25 pm, "P. Maffia" wrote:
>> If they are included on your property tax bill, they are deductible. You
>> don't separate your property tax bill into its individual components.
>> Your
>> total property tax bill is a single deduction on Schedule A as an
>> individual
>> taxpayer.
>>
>> wrote in message
>>
>> @i12g2000prf.googlegroups.com...
>>
>> > On Feb 18, 4:58 pm, "Paul Thomas, CPA"
>> > wrote:
>> >> wrote
>>
>> >> > In 2007, I paid state, country and local taxes. All kind of taxes,
>> >> > real estate taxes, library taxes, school taxes, taxes for program,
>> >> > and
>> >> > I don't even know what kind of programs they are but state, county
>> >> > and
>> >> > local government wanted me to pay them, so I paid them, etc.
>>
>> >> > What kind of taxes can I deduct?
>>
>> >> On Schedule A, you can deduct personal income taxes paid to state
>> >> and/or
>> >> local governments. The taxes ~must~ be based on your income to be
>> >> deductible. So user fees, propgram taxes, library taxes, etc, if not
>> >> nased
>> >> on your income do not qualify. You may elect to deduct state and
>> >> local
>> >> sales taxes paid instead of state and local income tax - see Schedule
>> >> A
>> >> for
>> >> the details.
>>
>> >> On Schedule A, you can also deduct property taxes to state and/or
>> >> local
>> >> governments. The tax ~has~ to be based on the value of the property,
>> >> so
>> >> a
>> >> street light tax may not fit that bill (they gneerally are a fixed
>> >> amount
>> >> and do not differ by property values).
>>
>> >> Taxes paid by a business activity are deductible on the appropriate
>> >> business
>> >> form or schedule.
>>
>> >> --
>> >> Paul A. Thomas, CPA
>> >> Athens, Georgia
>>
>> > School taxes, I can't deduct but if I use the library for my business,
>> > I can deduct, is that what you are saying?
>>
>> > Gene
>
> Thanks, they are included in my property tax bill. I am using the
> house half for business and half private.
> That means that I could deduct 50 % of that tax bill. Is that right?

AS Mr. Thomas pointed out, if 50% of the house is used solely and
exclusively for business purposes so as to qualify for a home office
deduction, then you could deduct 50% of the tax Bill as a legitimate expense
on your Schedule C for the business. You would then take the other 50% of
the taxes paid as a Schedule A deduction on your own 1040 if you have enough
other deductions to use Schedule A and not if you use the standard
deduction.

But caution, the half you use for your business must be the only use for it.
If you use any part of that for any other purpose you don't get the home
office deduction.

gene20077 · Joined: 18 Feb 2008 Posts: 7

On Feb 18, 7:00 pm, "P. Maffia" wrote:
> wrote in message
>
> @h11g2000prf.googlegroups.com...
>
>
>
> > On Feb 18, 6:25 pm, "P. Maffia" wrote:
> >> If they are included on your property tax bill, they are deductible. You
> >> don't separate your property tax bill into its individual components.
> >> Your
> >> total property tax bill is a single deduction on Schedule A as an
> >> individual
> >> taxpayer.
>
> >> wrote in message
>
> >>@i12g2000prf.googlegroups.com...
>
> >> > On Feb 18, 4:58 pm, "Paul Thomas, CPA"
> >> > wrote:
> >> >> wrote
>
> >> >> > In 2007, I paid state, country and local taxes. All kind of taxes,
> >> >> > real estate taxes, library taxes, school taxes, taxes for program,
> >> >> > and
> >> >> > I don't even know what kind of programs they are but state, county
> >> >> > and
> >> >> > local government wanted me to pay them, so I paid them, etc.
>
> >> >> > What kind of taxes can I deduct?
>
> >> >> On Schedule A, you can deduct personal income taxes paid to state
> >> >> and/or
> >> >> local governments. The taxes ~must~ be based on your income to be
> >> >> deductible. So user fees, propgram taxes, library taxes, etc, if not
> >> >> nased
> >> >> on your income do not qualify. You may elect to deduct state and
> >> >> local
> >> >> sales taxes paid instead of state and local income tax - see Schedule
> >> >> A
> >> >> for
> >> >> the details.
>
> >> >> On Schedule A, you can also deduct property taxes to state and/or
> >> >> local
> >> >> governments. The tax ~has~ to be based on the value of the property,
> >> >> so
> >> >> a
> >> >> street light tax may not fit that bill (they gneerally are a fixed
> >> >> amount
> >> >> and do not differ by property values).
>
> >> >> Taxes paid by a business activity are deductible on the appropriate
> >> >> business
> >> >> form or schedule.
>
> >> >> --
> >> >> Paul A. Thomas, CPA
> >> >> Athens, Georgia
>
> >> > School taxes, I can't deduct but if I use the library for my business,
> >> > I can deduct, is that what you are saying?
>
> >> > Gene
>
> > Thanks, they are included in my property tax bill. I am using the
> > house half for business and half private.
> > That means that I could deduct 50 % of that tax bill. Is that right?
>
> AS Mr. Thomas pointed out, if 50% of the house is used solely and
> exclusively for business purposes so as to qualify for a home office
> deduction, then you could deduct 50% of the tax Bill as a legitimate expense
> on your Schedule C for the business. You would then take the other 50% of
> the taxes paid as a Schedule A deduction on your own 1040 if you have enough
> other deductions to use Schedule A and not if you use the standard
> deduction.
>
> But caution, the half you use for your business must be the only use for it.
> If you use any part of that for any other purpose you don't get the home
> office deduction.

Thanks!

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article ,
P. Maffia wrote:
> wrote in message
>@h11g2000prf.googlegroups.com...
>> On Feb 18, 6:25 pm, "P. Maffia" wrote:
>>> If they are included on your property tax bill, they are deductible. You
>>> don't separate your property tax bill into its individual components.
>>> Your
>>> total property tax bill is a single deduction on Schedule A as an
>>> individual
>>> taxpayer.
>>>
>>> wrote in message
>>>
>>> @i12g2000prf.googlegroups.com...
>>>
>>> > On Feb 18, 4:58 pm, "Paul Thomas, CPA"
>>> > wrote:
>>> >> wrote
>>>
>>> >> > In 2007, I paid state, country and local taxes. All kind of taxes,
>>> >> > real estate taxes, library taxes, school taxes, taxes for program,
>>> >> > and
>>> >> > I don't even know what kind of programs they are but state, county
>>> >> > and
>>> >> > local government wanted me to pay them, so I paid them, etc.
>>>
>>> >> > What kind of taxes can I deduct?
>>>
>>> >> On Schedule A, you can deduct personal income taxes paid to state
>>> >> and/or
>>> >> local governments. The taxes ~must~ be based on your income to be
>>> >> deductible. So user fees, propgram taxes, library taxes, etc, if not
>>> >> nased
>>> >> on your income do not qualify. You may elect to deduct state and
>>> >> local
>>> >> sales taxes paid instead of state and local income tax - see Schedule
>>> >> A
>>> >> for
>>> >> the details.
>>>
>>> >> On Schedule A, you can also deduct property taxes to state and/or
>>> >> local
>>> >> governments. The tax ~has~ to be based on the value of the property,
>>> >> so
>>> >> a
>>> >> street light tax may not fit that bill (they gneerally are a fixed
>>> >> amount
>>> >> and do not differ by property values).
>>>
>>> >> Taxes paid by a business activity are deductible on the appropriate
>>> >> business
>>> >> form or schedule.
>>>
>>> >> --
>>> >> Paul A. Thomas, CPA
>>> >> Athens, Georgia
>>>
>>> > School taxes, I can't deduct but if I use the library for my business,
>>> > I can deduct, is that what you are saying?
>>>
>>> > Gene
>>
>> Thanks, they are included in my property tax bill. I am using the
>> house half for business and half private.
>> That means that I could deduct 50 % of that tax bill. Is that right?
>
>AS Mr. Thomas pointed out, if 50% of the house is used solely and
>exclusively for business purposes so as to qualify for a home office
>deduction, then you could deduct 50% of the tax Bill as a legitimate expense
>on your Schedule C for the business. You would then take the other 50% of
>the taxes paid as a Schedule A deduction on your own 1040 if you have enough
>other deductions to use Schedule A and not if you use the standard
>deduction.
>
>But caution, the half you use for your business must be the only use for it.
>If you use any part of that for any other purpose you don't get the home
>office deduction.
>

Also the home office deduction cannot generate a loss or make a loss
even worse.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

wrote
> School taxes, I can't deduct but if I use the library for my business,

I'm at a complete loss as to what fees the public library charges these
days.

Late fees are not deductible, because they relate to penalties which are
never deductible.

--
Paul A. Thomas, CPA
Athens, Georgia