Taxes 2016

Gravel

Gravel

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TJT said:
Buying down points in TX in 2016 got be 2.9% rate on the VA loan here. Has been pretty nice. I had hoped I would be able to itemize... but yeah not unless I get married and get more creative.
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Yeah, that's what we did as well. And the biggest push was because I found out that with a VA loan, if you sell to someone who is also going to use a VA loan, they can transfer your rate. Considering we bought our house outside a military base, it was almost a no brainer. We ended up with a 3.25% interest rate.

I don't know if it's actually reasonable to be able to do it, but I'm hoping that if interest rates have risen, we'll be able to get a slight premium when we sell if we can find a veteran buyer. At the very least, I'm hoping it helps move our house faster.

Picasso3 said:
Our state income tax pretty much covers the standard deduction.
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Even living in California, it's not enough. I guess it's because while California has high income taxes on the whole, they're actually incredibly progressive. I think we only actually paid something like 3 or 4% as our marginal state tax rate last year. The fact that we also max out our 401k's and IRA's which drops our MAGI by $47k helps quite a bit too, though. If not for that, we'd probably be able to itemize.

Perhaps in a few years if we end up passing $200k in gross income it might make a difference (since we'd also lose the tIRA $11k).
 
Blazin

Blazin

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One of my tenants misreported what they paid me on 1099 to my favor now they are tempting me to file return showing that revenue number instead since IRS scanning computer quickly approves returns where 1099 and reported income match up. I hate that I'm conflicted on the morality of it, fucking taxes and still it makes me feel like I'm stealing from orphans.
 
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Picasso3

Silver Baronet of the Realm
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Blazin said:
One of my tenants misreported what they paid me on 1099 to my favor now they are tempting me to file return showing that revenue number instead since IRS scanning computer quickly approves returns where 1099 and reported income match up. I hate that I'm conflicted on the morality of it, fucking taxes and still it makes me feel like I'm stealing from orphans.
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You are. Why do they do a 1099?
 
Blazin

Blazin

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required by law, my tenants are commercial not residential and I'm not a C corp so all revenue must be 1099
 
Blazin

Blazin

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Picasso3 said:
I worry I'm the only person being honest on residential rental income.
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As % of residentail renters has been climbing won't surprise me to see some IRS changes on this issue to help them track down that income. They really can't find residential income unless they audit. I have heard people reporting rental properties as just being second homes taking the deduction and hiding the income.

I have never got into residential rentals
 
Palum

Palum

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Gravel said:
We bought a house in 2015. I was excited about being able to take all the itemizations that come with owning a home (and I think realtors actually specifically know to point this out).

2015 we got back quite a bit of money (between buying points, interest, etc). I did some quick math after doing 2015's taxes and was about 50/50 on whether we'd be able to itemize again. I came to the conclusion that if we were able to itemize in 2016, it'd be the last time.

Well, it turns out that 2015 will likely be the only year we ever itemize. It's kind of shitty, but I guess at the same time I shouldn't complain that our interest rate is so low that it can't even catch up to the standard deduction.
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Uhh, do you perhaps not realize that for most people mortgage interest and MIP is an above the line deduction?

That means you get it even if you take standard deduction.
 
Blazin

Blazin

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Palum said:
Uhh, do you perhaps not realize that for most people mortgage interest and MIP is an above the line deduction?

That means you get it even if you take standard deduction.
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Which line of the 1040 would this above the line deduction be?
 
Gravel

Gravel

Mr. Poopybutthole
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Palum said:
Uhh, do you perhaps not realize that for most people mortgage interest and MIP is an above the line deduction?

That means you get it even if you take standard deduction.
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What the fuck are you talking about?

Where do you see "mortgage" anywhere on this list? Some people can apparently take it if you're a business owner, but that has nothing to do with my post. In fact, in the current low interest rate environment, most people won't be able to take advantage of it unless they have a VERY large mortgage ($500k+).

DfrlOJ5.jpg
 
Palum

Palum

what Suineg set it to
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Gravel said:
What the fuck are you talking about?

Where do you see "mortgage" anywhere on this list? Some people can apparently take it if you're a business owner, but that has nothing to do with my post. In fact, in the current low interest rate environment, most people won't be able to take advantage of it unless they have a VERY large mortgage ($500k+).

View attachment 118659
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Yes you are correct I was remembering my deductions last year incorrectly.
 
Blazin

Blazin

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As I live debt free and below means, have had nothing but the standard deduction for a very long time. Years with 300k in income and standard deduction you might as well have Uncle sam over to fuck your wife.
 
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TJT

TJT

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Just filed today, reduced my tax amount significantly this year so I am pretty happy about that. Will need to get creative again for 2017 though.

Fuckin' money.
 
Blazin

Blazin

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TJT said:
Just filed today, reduced my tax amount significantly this year so I am pretty happy about that. Will need to get creative again for 2017 though.

Fuckin' money.
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Still waiting for damn 1099s, maybe we'll see a tax cut for 2017
 
Koushirou

Koushirou

Log Wizard
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Sorry for the pleb questions here but I normally have pretty simple taxes and this year is just confusing for me. I've currently just used HR Blocks online tool for my fed taxes and sometimes state but since I moved to a new state last year and was taxed in both despite never actually earning income in the state I moved from during that year. There's options it looks to get credits for taxes paid to another state but with that tool I really have no idea if that's something I can claim and if so, can I claim for one or both states? There's also weird shit with my student loan interest about how much I paid during each residency period and I have no idea how to find that info specifically. Other than that I don't really have any complex tax info, just the usual w-2s, student loan interest, my IRA, and an HSA this year. Is there a better tool I can get for myself so my retarded ass doesn't have to get ripped off by an accountant somewhere so I know I'm doing this right?
 
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