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baby, it\'s cold outside: surviving the winter with some tax help from uncle sam

by:NULITE     2019-09-27
This is one of the most snowy winters I can remember.
Even though it\'s all gentle. for-
The weather in February, they chatter in the Super Bowl, which is another snowy day in the northeast.
At about 5: 00, the cold rain turned into snow. m.
The forecast requires up to 9 snow by tomorrow.
What does this mean for the family.
There is no school for the children (again).
Limited availability of work. Icy roads.
Very slippery sidewalk
Lots of shovels and snow plows. And booze. Lots of booze.
Expensive too.
The temperature is already very cold. We have managed to blow most of the firewood and fuel costs in winter (
Oil Heat is quite common in Northeast China)
It\'s been more than four digits. Ouch, right?
Other self-paid fees that people are paying now include all of these snow
Melted chemicals and salt, snow shovels, farming costs for sidewalks and lanes, novel new snow plows
Sled, of course (
My friends in the South note: they call them sledges here. Weird, right? ).
The sled is obviously mandatory.
When the ice and snow pile up
Our bank deposits have decreased.
Is there anything that can help offset these expenses?
Are there any tax cuts?
The answer is no for most families.
It is desirable to keep warm and dry, but it is usually not a tax concession.
The relevant fees are considered as personal expenses and are therefore not deductible.
It doesn\'t mean you have no luck at all.
Although you can\'t deduct the winter
Make proofing improvements to your house, if these improvements increase the value of your house and extend its service life, you can increase these costs on the basis of your house.
Your base is usually the cost at the time of purchase plus improvement (
Adjustment).
When selling, the promotion of the base will come in handy, because you pay capital gains based on the difference between the selling price and the base: the higher the base, the less the proceeds are used for tax purposes.
Don\'t forget that you have the right to exclude proceeds up to $250,000 (
$500,000 for married couples)
If you own and live in the property for at least two years, start by selling your main property.
So what kind of winter
Can related improvements increase your base?
One is heating.
Add a heating system, a fireplace or a wood stove, or replace a stove, pipe, or pipe as they are considered long --
Semester improvement;
In contrast, space heaters, fuel costs and firewood are temporary and do not add a foundation.
A good rule of thumb is that there will still be improvements in the House --
Things that are nailed or otherwise inseparable
It is often considered a supplement to the foundation.
Replace the water heater or insulated the Pump Room (
Or other spaces, such as lofts)
Will be seen as an improvement to the foundation.
Heat sidewalks and other ice
Melted landscape additions and heated swimming pools are also eligible.
Storm doors and windows replacement-or a new roof -
Similarly, in order to avoid the wind and snow, it will also lead to the turbulence of the Foundation.
You will want to keep records related to the cost base for longer than normal.
You should usually keep a tax record for three years after the declared due date, but when it comes to the basics, you will want to stick with it --
As long as you have the relevant records of your house (yes, really).
Homeowners and renters who claim home office deductions can use the new simplified calculation (
$5/square foot up to $1,500)
Or deduct the actual fee
Depending on the situation.
If there is heating and other winter
The cost associated with the weather is large and it may make more sense to deduct the actual cost.
This allows you to take those
Deductible expenses, such as heating costs, as long as they are related to the commercial use of your home, the portion attributable to your home office can be deducted;
For example, you cannot deduct the cost of heating the pool.
Fees fully attributable to the Home Office (
For example, shoveling costs to a dedicated office entrance)
Can be deducted in full without pro-rating.
Regardless of the winter weather, the regular rules for applying for a home office deduction still apply.
If space is rented for residential or commercial use, snow removal costs and other cold weather maintenance costs can be deducted.
However, there is a problem: all deductions and fees are not equal.
Although you can deduct the cost of equipment for residential rental repairs, you usually cannot pay the fee according to section 179th (
Property used to provide accommodation is often an exceptional property);
Its service life must be depreciated.
Also, keep in mind that the 179 limit for 2014 is reduced to just $25,000.
It\'s not all expenses either.
If you own a snow blower or snow sweeper, you may make a little extra money this season by charging a service charge.
If you have a shovel and some elbow grease (
I saw a desperate request for a shoemaker on the Internet).
Taxable income
Don\'t forget to report if as self
Your employment income is over $400.
Again, don\'t forget to deduct your related fees: you pay taxes online instead of total income.
Finally, like the weather throughout the winter, it is always possible for you to encounter some kind of terrible luck.
Your Roof may collapse or your pipe may freeze and burst.
You can hit another car on the icy road.
Or worse, a car could hit you.
When this happens almost to us, my daughter may hear some choice language).
If you suffer financial losses due to weather and your insurance does not cover you, you may be eligible for a casualty loss deduction.
To claim loss of casualties, you must list your deductions item by item.
Your losses are usually limited to a smaller portion of your adjusted base, or a reduction in your personal fair market value --use property (
Different rules apply to business attributes)
Minus any adjustments to insurance reimbursement.
If the loss you deduct exceeds your income, you may have a net operating loss: this is an exception to the rule that you must have a transaction or business to claim a net operating loss.
If this applies to you, please keep a good record and consult your tax professional.
However, I hope you don\'t have to rely on too much tax relief to get through the season.
It\'s February and we have more winter to go (
Yes, Phil did see his shadow. .
Do your best to keep warm, safe and dry during this period! --
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