Recently, i took my grandma to H&R Block to have her taxes done. my mom used to do this, btu she passed away. I live with my grandma and have never owned a house and my grandma has dementia and can't remember house-related details.
Her homeowner's insurance is paid through April of this year and therefore I have never seen a bill for it.
I had no idea she HAD homewoner's insurance as I just paid the bills that came in and when I took her to get her taxes done, I told them she didn't have it.
Now it turns out, she DOES have it. She has gotten both checks, but I have not cashed them yet. The H&R Block person says it won't matter on her return as homeowner's insurance is not a deductible expense, but I don't want her to get audited.
Am I safe to cash the checks?
2007-03-09 04:43:29 · 5 answers · asked by David J 1 in Business & Finance ➔ Taxes ➔ United States
She lives in Michigan and it is a single-family home. No one rents from her.
2007-03-09 06:17:00 · update #1
The checks can be cashed
The preparer is correct that Homeowners Insurance is not Tax deductible,
2007-03-09 04:54:07 · answer #1 · answered by Anonymous · 2⤊ 0⤋
It is safe to cash the refund checks. If you need to make any changes to her taxes you could always amend them.
If the house is a single family home then the home owner's insurance is not deductible.
If the house is a multiple family and is being rented then she can deduct part of the insurance.
It all depends on her situation.
2007-03-09 13:03:06 · answer #2 · answered by yarrie15 2 · 1⤊ 1⤋
Cash the return checks. Home owners insurance-- like car insurance-- is not deductible. Only property taxes and interest are deductible.
She wont get audited and even if she did--- you didnt claim the deduction of HO insurance, which is correct, so you're fine.
2007-03-09 12:53:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is safe to cash the checks.
What state are you in? Grandma's homeowner's insurance can figure into state tax returns.
If she is in Louisiana for example, she will get a rebate of the hurricane assessment. Since the policy is renewed in April, the assessment will appear on her 2007 bill and she will get the refund next year.
2007-03-09 12:50:50 · answer #4 · answered by ninasgramma 7 · 0⤊ 2⤋
Yes, cash them. Homeowner's insurance is not deductible.
2007-03-09 12:51:30 · answer #5 · answered by Anonymous · 1⤊ 0⤋