Dennis C. Carroll, Esq.
How does depreciation work?
Instead of being able to take a current-year, full deduction for a business or income-producing purchase, some purchases require...
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Dennis C. Carroll, Esq.
Jul 20, 20231 min
What taxes do I owe when I wholesale real estate?
When you wholesale real estate you have contracted with a real estate owner to buy their property at a price, but this contract allows...
Dennis C. Carroll, Esq.
Jul 11, 20231 min
How much tax will I owe when I flip a house?
Your tax will depend on several factors that determine if you are in the flipping business (as a dealer) or the investment business. ...
Dennis C. Carroll, Esq.
Sep 20, 20221 min
Do I owe income tax when I sell my house?
Maybe; if you bought it for almost nothing and it's value has increased a lot. If married, then you can exclude $500,000 of gains for the...
Dennis C. Carroll, Esq.
Feb 13, 20201 min
Do I have to report money I inherited on my income tax return?
No, but if you put that money into a bank account that earns interest then you'll report the interest income. If you stuff that money in...
Dennis C. Carroll, Esq.
Feb 10, 20201 min
How does the IRS catch your cash-only side business?
If a client pays you more than $600, they are supposed to file a 1099-MISC with the IRS. Now maybe that 1099-MISC never made it to you...
Dennis C. Carroll, Esq.
Feb 3, 20201 min
Can I deduct fees paid for my kid's sports team?
Maybe. If your kid is under age 13 and his participation during team practices/games is meant to allow you to work, then you could...
Dennis C. Carroll, Esq.
Jan 21, 20201 min
I withdrew money from my retirement to buy a house, how will this affect my taxes?
That depends on the type of retirement account, how much you took out, and if you're considered a first-time homebuyer. A 401K withdrawal...
Dennis C. Carroll, Esq.
Jan 17, 20201 min
Does buying a house change my income tax return?
That depends on whether you're married or sharing the house expenses or buying alone. If you bought the house alone, and the local...
Dennis C. Carroll, Esq.
Dec 27, 20191 min
Why do I have to pay income taxes but Amazon doesn't?
Income tax is owed on net profit; which is sale proceeds minus expenses. Amazon had a few expense categories that were very large....
Dennis C. Carroll, Esq.
Dec 20, 20191 min
How much does the government really need my income taxes?
For fiscal year 2018, the federal government relied on federal income taxes as 51% of its total revenue of $3.3T. Payroll taxes, which...
Dennis C. Carroll, Esq.
Dec 12, 20191 min
Does my child need to file an income tax return if they only had a summer job?
Your child will need to file a federal income tax return (1040) if their yearly income is over $12,200. In Connecticut, a single person...
Dennis C. Carroll, Esq.
Dec 10, 20191 min
What are the tax credits for putting energy efficient products in/on my house?
There's a different maximum credit depending on what product is purchased. You'll get a credit of 30% of your yearly expenses for energy...
Dennis C. Carroll, Esq.
Dec 9, 20191 min
When does the IRS consider a business activity a hobby?
Generally, a business activity will be considered a hobby when it doesn't look like you intend to make a profit. The IRS will look at...
Dennis C. Carroll, Esq.
Dec 6, 20191 min
Can I claim my parent or adult child as a dependent?
Yes, but their taxable income must be less than $4,400 in 2022 and you must pay for more than 50% of their total support. In this test,...
Dennis C. Carroll, Esq.
Dec 4, 20191 min
How do I file taxes for a deceased family member?
Income earned by a deceased family member from January 1st through the day of their death will be reported on their final individual...
Dennis C. Carroll, Esq.
Dec 2, 20191 min
Should I take the standard mileage deduction or actual expenses for the business use of my car?
The easy answer is "it depends". And you won't know until December 31st when you've tallied a year's worth of expenses and mileage. An...
Dennis C. Carroll, Esq.
Nov 27, 20191 min
Can I deduct the part of my house where I work (my home office)?
Yes, but that part of your house must be used exclusively & regularly for your own business. You can either deduct $5 per square foot of...
Dennis C. Carroll, Esq.
Nov 21, 20191 min
What are my charitable donation limits?
In 2022, cash/check donations are limited to 60% of your adjusted gross income [AGI]. Non-cash [property] donations are limited to 50% of...
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