Your Taxes & More

It's tax day! If you don't owe money, there's no penalty for filing late. But after today, no more extensions.

It's easy to set up a payment plan with the IRS. They'll give you up to six years to pay your taxes. But there will be a fee And interest added on.

An amended return supersedes the original return. So if you owe money, and then find out you shouldn't actually owe it, it all vanishes, including the interest.

If you expect to owe money, you might want to do your taxes early, to give you a chance to save up for April 15th. Nothing like finding out how much you owe on the day it's due.

Any unpaid taxes you owe start accumulating interest on April 15. Pay it now if you can.

Any unpaid taxes you owe start accumulating interest on April 15. Pay it now if you can.

If you need to make estimated payments, don't forget your April one!

An office in home deduction allows you to deduct the portion of your expenses that can reasonably be attributed to the business use of your home.

Day care providers have different rules for the office in home deduction, because more of your home is used for business than for other businesses.

If you own your home, your office in home deduction will include an allowance for depreciation on the part of your home used as an office. For that, we'll need to know your basis in your home, the amount of your home used as an office, and the date you started using it as an office.

An office in home deduction (available if you are self-employed) requires that you provide a list of your home maintenance expenses. That means rent, utilities and repairs. How much you can claim depends on how much of your home you are using regularly and exclusively as an office. If you see clients at your home, you can count part of the cost of landscaping as well. You should have a separate list of money spent to improve your office.

f you are self-employed or otherwise likely to owe money, this is a good time to get your taxes done. That way you have time to get the money together.

A letter from the IRS saying you owe money doesn't automatically mean you owe money. Sometimes it's a mistake. If you can't understand the letter, get help.

If you get a call or email from the IRS, and you haven't been in recent contact with them, it's a scam. The IRS communicates by letter.

When the application for health care under the ACA asks you how much you will make, it means your total household income. Including your spouse’s earnings and any IRA or 401(k) withdrawals.

Remember that the money you take out of a retirement account is taxed as income. If you didn't pay the tax when you put it in, you pay it when you take it out. If you take out too much at a time, it can raise your tax bracket or make you ineligible for the health care credit (which you may have already received). You can avoid this by opting for a Roth IRA or Roth 401(k).

Remember that the money you take out of a retirement account is taxed as income. If you didn't pay the tax when you put it in, you pay it when you take it out. If you take out too much at a time, it can raise your tax bracket or make you ineligible for the health care credit (which you may have already received). You can avoid this by opting for a Roth IRA or Roth 401(k).

There are no more personal or dependent exemptions, but if you have children, there is still a child tax credit, a dependent care credit, and the Earned Income Credit. There are also a set of education credits, if your income is modest and your children are college age. Oh, and California has not complied, so it still has the exemption credits you remember.

I've said this before, but if driving is part of your business, you must have a mileage log. For each entry, you must list the date, number of miles, and the business purpose of the trip.

You may have heard that claiming an office in your home is a “red flag” for an audit. Perhaps at one time it was, but not today. But be sure yours qualifies before you claim the expense. It must be “regularly and exclusively” used for your business, or for inventory storage.

If you buy a new laptop for your business, it must be depreciated, generally over five years.

The furniture and appliances you buy for a rental house are depreciated separately from the house itself, and over a shorter period. For example, a new refrigerator is depreciated over five years.

When you inherit property, it's treated as though you had bought it for fair market value on the date of death. That value, plus the cost of any improvements you make, becomes your basis for sale or depreciation.

Follow-up to yesterday: When you sell a rental property, the amount you have claimed as depreciation is subtracted from the basis (investment, unless it was an inheritance) and becomes taxable income before capital gains are calculated. Unless you are forced to sell at a loss.

In case you were wondering, no, depreciation is not optional.

You'll want to scan all your business receipts. If the item purchased is not clear, you'll want to write it on the receipt before you scan it.

If you have a rental house or apartment, it is subject to 27.5 years of straight-line depreciation. What that means is that, beginning when you first make it available for rent, you can deduct about 1/27th of its basis from your taxes each year.

Married filing separately is the least favored filing status. If you can possibly get along with your spouse, married filing jointly is usually much better. Or, if your spouse has been gone for at least six months and you have children, you may qualify for head of household status.

If you got married last year, you can't file as single. Even if you were married on New Year's Eve. File together or separately. Most of the time filing together lowers your taxes.

If you expect to owe money, you might want to do your taxes early, to give you a chance to save up for April 15th. Nothing like finding out how much you owe on the day it's due.

If you're thinking of starting a new business, you're probably wondering whether you should incorporate it. Be aware that every incorporated business, whether it's a corporation, LLC, or S-corp, will have to pay a franchise fee to the state. California charges $800 a year.

The new, higher standard deductions have made it much harder to claim your itemized deductions. But don't worry. You'll still be paying less in taxes.