Talk about tax issues and you’d get a headache! There are tons of ways to fully claim deductions on your property investment. The sooner you claim them, the better. In Indiana, there are property tax deductions that homeowners can easily qualify. For example, taxpayers are eligible for a $35,000 deduction from the assessed value of property and 20 percent from the net tax amount. Senior citizens take a $6,000 reduction of the assessed value of property before taxes are calculated. Even mobile homeowners have a tax deduction eligibility granted to them.
Here is a clever presentation of paying less tax:
Completing the 1040 or 1040A for some people has gone really clever. Kiplinger.com lists the weirdest tax write-offs that you won’t believe the IRS has allowed. I’ve had the “why-didn’t-I-think-of-that” moment upon reading the last part of the article. Three cases are somewhat absurd to me:
Case 1: Relocating to a New Home With Fido The article states, “The IRS says if you are changing jobs and meet a couple of tests, you can deduct your moving expenses—including the cost of moving your dog, cat or other pet from your old residence to your new home. Your pet—be it a Pekingese or a python—is treated the same as your other personal effects.”
Case 2: Landscaping has Always its Benefits Right after writing this, I’d be hiring a professional landscape designer. The article states, “A sole proprietor who regularly met clients in his home office was allowed to deduct part of the costs of landscaping the property, on the grounds that it was a part of the home being used for business, according to the Tax Court. The court also allowed a deduction for part of the costs of lawn care and driveway repairs.”
Case 3: Take a Dip in the Pool I wouldn’t be emulating this man. Kiplinger.com writes, “A taxpayer with emphysema put in a pool after his doctor told him to develop an exercise regime. He swam in it twice a day and improved his breathing capacity. Turns out he swam in the pool more than his family did. The Tax Court allowed him to deduct the cost of the pool (to the extent the cost exceeded the amount it added to the value of the property) as a medical expense because its primary purpose was for medical care. Also, the cost of heating the pool, pool chemicals and a proportionate part of insuring the pool area are treated as medical expenses.”
Clever, huh? But before you begin hatching a plan on your property to lessen your contribution to Obama’s revenues, be careful on what risk you’ll take. These cases are one in a million and the IRS is not composed of some gullible folks who just sit in their cubicles from 9 to 5. Your actions may backfire later on.
Andy Denton is the COO of www.Realty.com. Realty.com is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the Realty.com blog for up to date housing news and trends. And monitor local mortgage rates at RealtyGadget.com.
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