This will be my 1st yr filing taxes as a homeowner. i am lost. i'm not sure what receipts i need to save or what i can claim. can anybody help please.
2006-10-11 17:03:21 · 15 answers · asked by lynne 2 in Business & Finance ➔ Taxes ➔ United States
All of them darl, each and every one.
You just never know what can happen in the future.
2006-10-11 17:12:31 · answer #1 · answered by ? 6 · 3⤊ 0⤋
most of your answers tell you to save everything. this is true. but what you want to do this for is because you need to prove that you have more into the house than you sold it for. (such as i have $10. into the house and only sold it for $5. So i've lost money.)
The only way to show how much you have into the house is to save reciepts.
save the receipts for ANYTHING that stated you improved the house. lightbulbs are considered maintenance, but ceiling fans are an improvement, so are most 'improvements'. if you keep the house the way it was when you bought it, you only have maintenance issues and no real reason to keep receipts.
However,if you get sick of the light unit and want a nicer one, keep the receipt. if you upgrade from septic to sewer, keep the receipts, as this is definitely an improvement.
At one point the gov't stated that you couldn't deduct improvements on your main home, then later they said you could. Seeing you don't know what mood they will be in at the time you sell your house, it is well worth it to save receipts for everything.
You have to be able to meet the ownership and the use tests listed on the IRS website, which I've listed.
I also agree that it is best to keep a written record of what you've spent how much on, as today receipts are designed to fade so that the IRS can say that you have no records if they can't be read. Pretty slick on that I would have to say.
Hope this helps clear up the reason that you should save all your receipts.
Work with the IRS now, and you won't have to 'deal' with them later.
2006-10-12 11:33:47 · answer #2 · answered by keanweaner 4 · 0⤊ 0⤋
You will be itemizing deductions on schedule A. Your best bet to make sure that you get your maximum deduction, is to go right now to www.irs.org and look at schedule A, Itemized Deductions and Instructions for Schedule A, Itemized Deductions. That way you can read the list of all possible deductions (someone answering this question might list some of the common ones for you, but not all), and pick out any and all that apply to you. One of the deductions is for your State sales tax, and you will have two options: either to take a standard sales tax deduction based on a formula, or take a deduction based on the actual sales tax you paid. So, if you wish to base your deduction on your actual tax, you will actually need to save EVERY receipt you get! (You should only bother to do this, if you are such a big spender that you are sure you are paying much more sales tax than the average person of your same income).
2006-10-12 00:14:14 · answer #3 · answered by z 3 · 1⤊ 0⤋
Save the closing statement - you might need it when you sell. If you have a mortgage with an escrow account, you'll get a statement from the holder at the end of the year showing how much interest and taxes you paid for the year. If you make any major improvements to your home like adding an addition, save receipts for that.
Your mortgage interest and real estate taxes for the year can be taken as itemized deductions if your deductions total more than the standard deduction for your filing status - for most people with fairly new mortgages, itemizing saves money.
Expenses like utility bills, or paint for the kitchen or something like that, aren't deductible, so you don't need to save those.
2006-10-12 09:37:50 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
There are two types of receipts relevant to a home. Those that you may need currently, and those you may need when you buy, sell or trade the house for another. Those currently are things that are under warranty, purchases, or that may be tax deductible on your income tax such as special swimming pool fo rmedical purposes etc. The second are purchases, repairs or additions that improve the value of property (so called capital improvements). These receipts may help reduce your tax liability when you sell or trade the property. For rental properties you want to keep all repair/purchase receipts for seven years, ans more expenditures will be recognized as deductible from the rental income, assuming they meet any applicable tax criteria at that time.
2006-10-12 00:19:38 · answer #5 · answered by Sir Ed 4 · 1⤊ 0⤋
Save the closing statement, receipts for improvements and betterments, Forms 1098 and 1099.
2006-10-12 01:56:36 · answer #6 · answered by Scott K 7 · 0⤊ 0⤋
save all reciepts. file them month by month , when tax time comes ask what you can write off. Then by next year you will know wich to save and which to keep, but i would keep all,you never know what the hell the goverment will do next!!!!
2006-10-12 00:08:26 · answer #7 · answered by dodgeum43 3 · 1⤊ 1⤋
save every receipt you put any amount of money out for. they all add up in the end,for tax deductions,etc.
2006-10-12 08:50:58 · answer #8 · answered by Tired Old Man 7 · 0⤊ 1⤋
Save everything that you have from the purchase.
Call a friend who is an accountant and ask for help or advice.
2006-10-12 00:06:37 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Your lender will supply you with a 1098 form each year to submit with your taxes. Call H & R Block. They will help you for free.
I should say, they will provide you with answers for free. Filing taxes with them will cost you.
2006-10-12 00:05:28 · answer #10 · answered by Anonymous · 0⤊ 1⤋
keep everything and keep a log of everything you spend to care for,maintain and imporove your home( every nail.hammer.paint brush.tape,curtain rod.door handle.mailbox). at some point it will make it easier to work from the log,rather than old faded receipts and its easier to maintain and protect.
2006-10-12 01:21:01 · answer #11 · answered by senseofhonor 2 · 1⤊ 0⤋