Four Tax Tips For A Troubled Economy

1. Write Off Property Sale Losses

If you experienced a foreclosure , deed-in-lieu of sale, mortgage-loan modification or a short sale and had debt forgiven, you need to know that the Mortgage Forgiveness Debt Relief Act of 2007 will treat any forgiven debt as taxable income. But in an effort to aid people during the credit crisis, Congress allowed homeowners with mortgage debt forgiven in 2007, 2008 and 2009 to avoid this tax.

2. Write-Off Losses From Selling Stock

If you experience a financial loss this year from selling stocks or other property you can use the loss to offset capital gains from other property or stock sales. Losses exceed capital gains? You can apply as much as $3,000 of the additional losses toward ordinary income. Any amount above $3,000 can be placed on future tax returns.

3. Write-Off Work Related Expenses

There are many expenses employees incur that are not covered by their employer. You can deduct these excess expenses on your tax return if they exceed more than 2% of your income.

4. Write-Off Business Equipment

If you have a business, you can write off the cost or depreciation of certain business purchases, such as business furniture, machinery, office equipment and laptops.

By | 2017-12-13T00:40:12+00:00 October 6th, 2008|Debt and Tax Relief, Managing Your Finances|Comments Off on Four Tax Tips For A Troubled Economy