I put new carpet in a rental in 2018. I'm thinking to include as an asset
You can add it as an asset. It gets depreciated over 5 years. However, if the asset cost you less than $5000 the IRS says you can just expense it in the year the cost is incurred. I seriously doubt you paid more than $5K for carpet in a rental property. (In your primary residence I could see paying more than $5K; but not in rental property)
I already running a loss for that property.
Many times folks think they're running a loss when the fact is, they are not. One thing that contributes to that line of thinking is the fact that rental property *RARELY* shows a taxable gain at tax time when filling out the taxes. That's not because of all the deductions alone, but more because of the depreciation you are required to take on the property by law. Especially if you have a mortage on the property. When you add up the deductions of mortgage interest, property taxes, rental dwelling insurance and depreciation those four items alone will usually add up to more than you collected in rent for the entire year. Then add to that your other deductible rental expenses and that makes it rare to show any taxable profit.
Understand that rental income is passive, which means the expenses are passive too. You can only deduct your passive rental expenses against the passive rental income. Once those expenses get your taxable passive income to zero, that's it. Any remaining expenses are just carried over to the next year. Then the next year you have the same situation so your carry over losses will just increase with each passing year.
But when you sell the property, then in the year of sale you can "realize" those carry forward losses against other "ordinary" income; starting with any gain realized on the sale.
I ended up selling that property for a gain in 2019. So, I was thinking to carry over the remaining depreciation to use against my capitol gains.
What exactly do you think you're going to do with that "remaining depreciation"? Deduct it? That's now how it works. In the year you sell the property all depreciation taken on it has to be recaptured and you pay taxes on that recaptured depreciation. It also adds to your AGI. Additionally the recaptured depreciation is taxed at a minimum of 15% and a maximum of 25%. This can hurt if your AGI (figured after taking into account your gain on the sale) puts you in the 12% tax bracket or lower. It can help if your AGI puts you in a tax bracket above 25% - then the recaptured depreciation would only be taxed at 25% at the most.
Since I am working with an extended return,
Can you define for me please what you mean by "extended" return?
I figure I should think ahead to 2019. But I'm not sure how that works or if I can. Will I lose the remaining $1500 investment?
When you sell the property your taxable gain is the amount you make "OVER" the adjusted cost basis of the property.
Now this is rough, but to figure the cost basis: What you paid for the property, plus what you paid for any property improvements while you owned it, minus the total of all depreciation taken. That gives you the adjusted cost basis. Subtract that number from your sales price and that's your taxable gain. Now from that gain you also get to deduct things like your carried forward losses, sales expenses and a few other incidentals. That can easily lower your taxable gain by another $5K; or significantly more depending on how much carry forward losses have accumulated. While this is a rough figure, it's good enough to get you "in the ballpark" of what you can expect.
I also have a kitchen remodel from a previous year which has not fully depreciated.
Not a big deal. Generally when someone sells rental property it's rare for the property to already be fully depreciated. Besides, the more depreciation you have and are required to recapture, the more it can hurt on the tax front since recaptured depreciation is taxed within a fixed range regardless of what tax bracket your AGI may put you in.
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The details are on the screen. You are asked for two types of expenses. Whole House Expenses are what you paid for the whole year. Generally you will have values for those expenses that are more than $0.
"Home Office Only" expenses are those expenses you paid for the *OFFICE* *ONLY*. While not rare, it is very uncommon to have anything greater than zero when using a part of your primary residence for business.
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You are posting from the Self Employed version which can handle both types of income ... follow the interview to enter the W-2 form and the SE income for the Sch C... it will populate all the forms you need automatically. If you are new to being self employed and acting as your own bookkeeper and tax preparer you need to get educated .... If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income. So you need to keep your own good records. Here is some reading material…… IRS information on Self Employment…. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center Publication 334, Tax Guide for Small Business http://www.irs.gov/pub/irs-pdf/p334.pdf Publication 535 Business Expenses http://www.irs.gov/pub/irs-pdf/p535.pdf Home Office Expenses … Business Use of the Home https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction https://www.irs.gov/pub/irs-pdf/p587.pdf There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Home & Business return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed .... http://quickbooks.intuit.com/self-employed Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C. You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57. The SE tax is in addition to your regular income tax on the net profit. PAYING ESTIMATES For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017 SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket. You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply: - 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. - 2. You expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your current year’s tax return, or 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.) To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section. OR Go to…. Federal Taxes or Personal (H&B version) Other Tax Situations Other Tax Forms Form W-4 and Estimated Taxes - Click the Start or Update button How does my side job affect my taxes? You’re considered self-employed—even if it’s just something you do on the side, like drive for Uber, babysit, or blog. Your taxes are handled differently than when you’re an employee of a company. As a self-employed individual you: will pay self-employment tax(because income tax and Social Security aren’t deducted from your pay) will get a 1099-MISC or 1099-K (unless you only accept cash or personal checks) file a Schedule C, Form 1040(this is how you report business expense or loss of income) can deduct money you spent on work-related expenses(like mileage, home office expenses, and cell phone use) can estimate the taxes that are due and make quarterly estimated tax paymentsduring the year Get started by entering your income from self-employment. We’ll handle the rest, from creating the forms you need to reviewing work-related expenses that can help reduce your taxes. Related Information: Where do I enter Schedule C? What self-employed expenses can I deduct? What is the self-employment tax? What is this new 20% business deduction?
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Should be only a 2014 Mac issue. But you can't install 2014 Windows version and update it and download any state programs. So 2014 Windows probably won't work either. Unless you have 2014 installed on Windows with all the updates.
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assuming you are a SC resident, the return starts with Federal taxable income which would include the income/expenses from the Federal K-1 interview form. the only things that might show up on the SC return separately would be adjustments to the federal amounts.
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@candy_conley6 wrote: Is my contributed capital considered income to my sole proprietor business? NO ... it is NOT income. Seed money from the business owner is NEVER considered taxable income ... why would you even want to pay income taxes on money you simply moved from your right pocket to the left pocket of your pants ?
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Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation. See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number Support can also be reached during business hours by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax
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Once your return has been accepted (received) by the government, they take over the refund status update duties, since they hold the purse strings. The status in TurboTax will remain as "accepted." Use the IRS Where's My Refund site for the latest word on your federal tax refund, and your state government's refund lookup service for the latest on your state refund. Does this IRS "Where's My Refund" tool say your funds have actually been sent? http://www.irs.gov/Refunds Were you having the refund direct deposited to your bank account directly ? If the IRS has actually sent the funds, the IRS FAQ page says to allow "up to 5 days" due to variations in bank processing procedures and times. If so did you enter the correct routing & account number for an ACH transfer ? Here is how you can see your deposit information: Your direct deposit information will be at the bottom of your Form 1040. To view your 1040 after filing, Sign into TurboTax > Taxes > Tax Timeline > Some other things you can do > Download/print (.pdf). Please see the following FAQ article below if you entered in the wrong bank account information. https://ttlc.intuit.com/questions/1901677 Did you have the TT fees withheld from the federal refund and are getting the refund on the Turbo Tax Debit card? If so the refund needs to go from the IRS to the third party bank to the card. This process can take up to 3 business days or more. Check the IRS : https://www.irs.gov/Refunds Check SBTPG: by logging into their website at: https://cisc.sbtpg.com/ Or you can get 24-hour automated info by phone at: https://cisc.sbtpg.com/contact.aspx Check at Turbo Tax Visa : If you have any questions or need assistance with your Turbo Prepaid Visa Card, please visit TurboPrepaidCard.com or call us toll-free at (888) 285-4169. Did you have the TT fees withheld from the federal refund and then the balance sent to your bank account or debit card ? If so the refund needs to go from the IRS to the third party bank to your bank account. This process can take up to 3 business days or more. Check the IRS : https://www.irs.gov/Refunds Check SBTPG: by logging into their website at: https://cisc.sbtpg.com/ Or you can get 24-hour automated info by phone at: https://cisc.sbtpg.com/contact.aspx
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Did you use the Online version?
That's common to end up with multiple accounts. First LOG OUT of whatever TurboTax account you're logged into right now. Then use this TurboTax account recovery website to get a list of user ID's for an email address. Run the tool against any email addresses you may have used https://myturbotax.intuit.com/account-recovery/ If you used the Desktop CD/Download program then the only copy is on your computer and not saved or stored online.
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Sadly the IRS is correct...you did not file a timely return or extension so the child tax credit is not allowed did to the new rules installed a couple of years ago. You could beg for a reconsideration but I don't it will work.
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