by The MDTAXES Network | Sep 3, 2014 | Deductions, Income, Taxes
From IRS Tax Tips:
Whether you like to play the ponies, roll the dice or pull the slots, your gambling winnings are taxable. You must report all your gambling income on your tax return. If you?re a casual gambler, odds are good that these basic tax tips can help you at tax time next year:
1.?Gambling income.? Gambling income includes winnings from lotteries, horse racing and casinos. It also includes cash prizes and the fair market value of prizes like cars and trips.
2.?Payer tax form.? If you win, you may get a Form W-2G, Certain Gambling Winnings, from the payer. The IRS also gets a copy of the W-2G. The payer issues the form depending on the type of game you played, the amount of your winnings and other factors. You?ll also get the form if the payer withholds taxes from what you won.
3.?How to report winnings.? You must report all your gambling winnings as income. This is true even if you don?t receive a Form W-2G. You normally report your winnings for the year on your tax return as ?other income.?
4.?How to deduct losses.? You can deduct your gambling losses on Schedule A, Itemized Deductions. The amount you can deduct is limited to the amount of the gambling income you report on your return.
5.?Keep gambling receipts.? You should keep track of your wins and losses. This includes keeping items such as a gambling log or diary, receipts, statements or tickets.
by The MDTAXES Network | Aug 5, 2014 | Deductions, Income, Taxes
From IRS Tax Tips:
If you rent a home to others, you usually must report the rental income on your tax return. But you may not have to report the income if the rental period is short and you also use the property as your home. In most cases, you can deduct the costs of renting your property. However, your deduction may be limited if you also use the property as your home.
Here is some basic tax information that you should know if you rent out a vacation home:
- Vacation Home.? A vacation home can be a house, apartment, condominium, mobile home, boat or similar property.
- Schedule E.? You usually report rental income and rental expenses on Schedule E, Supplemental Income and Loss. Your rental income may also be subject to Net Investment Income Tax.
- Used as a Home.? If the property is ?used as a home,? your rental expense deduction is limited. This means your deduction for rental expenses can?t be more than the rent you received. For more about these rules, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
- Divide Expenses.? If you personally use your property and also rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. To figure how to divide your costs, you must compare the number of days for each type of use with the total days of use.
- Personal Use.? Personal use may include use by your family. It may also include use by any other property owners or their family. Use by anyone who pays less than a fair rental price is also personal use.
- Schedule A.? Report deductible expenses for personal use on Schedule A, Itemized Deductions. These may include costs such as mortgage interest, property taxes and casualty losses.
- Rented Less than 15 Days.? If the property is ?used as a home? and you rent it out fewer than 15 days per year, you do not have to report the rental income.
by The MDTAXES Network | May 22, 2014 | Income, Self-employed
Here’s a link to the IRS Resource Center to help you navigate self-employment income and expenses:?http://www.irs.gov/Individuals/Self-Employed
You’ll learn what exactly is self-employment income, what are estimated tax payments, home office deductions, and more.
by The MDTAXES Network | Aug 27, 2013 | Gambling, Income
From IRS News:
Whether you roll the dice, play cards or bet on the ponies, all your winnings are taxable. The IRS offers these six tax tips for the casual gambler.
1. Gambling income includes winnings from lotteries, raffles, horse races and casinos. It also includes cash and the fair market value of prizes you receive, such as cars and trips.
2. If you win, you may receive a Form W-2G, Certain Gambling Winnings, from the payer. The form reports the amount of your winnings to you and the IRS. The payer issues the form depending on the type of gambling, the amount of winnings, and other factors. You?ll also receive a Form W-2G if the payer withholds federal income tax from your winnings.
3. You must report all your gambling winnings as income on your federal income tax return. This is true even if you do not receive a Form W-2G.
4. If you?re a casual gambler, report your winnings on the ?Other Income? line of your Form 1040, U. S. Individual Income Tax Return.
5. You may deduct your gambling losses on Schedule A, Itemized Deductions. The deduction is limited to the amount of your winnings. You must report your winnings as income and claim your allowable losses separately. You cannot reduce your winnings by your losses and report the difference.
6. You must keep accurate records of your gambling activity. This includes items such as receipts, tickets or other documentation. You should also keep a diary or similar record of your activity. Your records should show your winnings separately from your losses.
by The MDTAXES Network | Aug 15, 2013 | Income, Practice Management
Here’s our 6 minute YouTube presentation of how to implement SIBS ( a Simple Incentive Bonus System) for your practice so you can?increase revenue and profits:
https://www.youtube.com/watch?v=urSP2jAz6ag
by The MDTAXES Network | Aug 13, 2013 | Income
A vacation home can be a house, apartment, condominium, mobile home or boat. If you own a vacation home that you rent to others, you generally must report the rental income on your federal income tax return. But you may not have to report that income if the rental period is short.
In most cases, you can deduct expenses of renting your property. Your deduction may be limited if you also use the home as a residence.
Here are some tips from the IRS about this type of rental property.
? You usually report rental income and deductible rental expenses on Schedule E, Supplemental Income and Loss.
You may also be subject to paying Net Investment Income Tax on your rental income.
? If you personally use your property and sometimes rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. The number of days used for each purpose determines how to divide your costs.
Report deductible expenses for personal use on Schedule A, Itemized Deductions. These may include costs such as mortgage interest, property taxes and casualty losses.
? If the property is ?used as a home,? your rental expense deduction is limited. This means your deduction for rental expenses can?t be more than the rent you received. For more about this rule, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes).
? If the property is ?used as a home? and you rent it out fewer than 15 days per year, you do not have to report the rental income.
For more details on this topic, check out IRS Publication 527. It is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
