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need a rough idea for H&R Blockhead

Discussion in 'The Lounge' started by thatK30guy, Feb 2, 2007.

  1. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Since I sold my house and it closes this month, I'm taking about a $6K to $7K loss on it from what I've got in it. I get to claim the loss on 2007 taxes. My question is, how much of that 6 or 7 grand will I be able to get back in my taxes prepared by H&R Blockhead? Any rough ideas. Someone here maybe have an idea if they've done this?
     
  2. HarryH3

    HarryH3 1 ton status Author

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    I think you'll find that you can't claim a loss on the sale of a personal residence. :( Investment property yes, but I don't think you'll get that deduction for your home. Since they allow you to not pay taxes on up to a $250K gain ($500K for couples) on the sale of a personal residence, I'd be VERY surprised to find that they'll allow a deduction for a loss. :(
     
  3. thatK30guy

    thatK30guy 1 ton status Premium Member

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    The itemizing chart I got from them shows the loss/gain from personal property listed on it. Thats why I'm going thru all the receipts for stuff I bought for that house.
     
  4. HarryH3

    HarryH3 1 ton status Author

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    Yeah, the IRA wants to KNOW about it, but that's about it. I'm pretty sure that it doesn't actually show up in the final taxable income/loss tally. :( I'm certain that gains don't make a difference (unless they're huge!) which is why I'd be surprised if they'll let you deduct a loss unless it was equally huge. I'm not a tax expert though, nor do I even play one on TV. ;)
     
  5. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Suuuuuuuuuuuuure you don't play one on t.v. :rolleyes: :haha:
     
  6. boggerless

    boggerless 1 ton status Premium Member

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    Wes,get a real CPA.H R block claims they will help you if you get audited.cuz they never use all the deductions to raise a red flag with the IRS.i used them for a few years and got back around $1800.00. when i started using my dads cpa(after claiming 9 all year) i got back $1650.00.i claimed 0 all year when i used HRB. they suck.my cousins wife prepares taxes for HRB.:haha: :haha:
     
  7. HarryH3

    HarryH3 1 ton status Author

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    You're screwed... From www.irs.gov:

    Loss on sale. If the amount realized is less than the adjusted basis, the difference is a loss. A loss on the sale of your main home cannot be deducted.

    Sorry dude. All the sordid details can be found in Publication 523, Selling Your Home. I found the above section here. :(
     
  8. 2BLAZERS

    2BLAZERS 1/2 ton status Premium Member

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    I am a CPA. You cannot claim a loss on a personal resident unless its from things like a hurricane or flood. Stay away from H&R Block, we have amended returns from things they screwed up. They have a few good employees but most of their employees are rejects from real accounting jobs who just take a class. Just use a local CPA firm. If you just have W-2, kids, and a house then they should just charge about $225. I have a $300 minimum which covers alot of people.
     
  9. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Do you have a link, list or something to send me to give me an idea of what exactly I can itemize?

    I made a bit on the side doing the parts and also eBay, but I'm not ready to turn those in just yet. I'm wanting to get a tax number before I really start to buy and sell stuff like crazy.

    Any tips, info, etc.?
     
  10. 4X4HIGH

    4X4HIGH 1 ton status Premium Member GMOTM Winner

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    Not sure about writing off a loss but you can write off any upgrades you've made to the house assuming you haven't written them off each year. This could give you a big tax break.
     
  11. HarryH3

    HarryH3 1 ton status Author

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    Wrong... That is only true for investment properties. The IRS treats your personal residence with a different set of rules. :( You can't deduct crap for your own house.

    At one time they would let you deduct any costs associated with "fixing up" your house, but ONLY if the work was performed within the 90 days previous to the sale date. I'm not sure if they even allow that deduction these days, since they stopped taxing the first $250K ($500K for couples) of gains on the sale of a personal residence.
     
  12. 4X4HIGH

    4X4HIGH 1 ton status Premium Member GMOTM Winner

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    Accourding to my accountant who does my taxes and has been doing taxes for 35 years you CAN deduct upgrades on personal property residence sales.
     
  13. HarryH3

    HarryH3 1 ton status Author

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    Only IF you have a GAIN on the sale after all of the numbers are calculated. If you're losing money on the sale anyway, then the "upgrades" won't matter. The rules are pretty clear on capital gains on the sale of a personal residence. The link I posted above states it very clearly.

    A loss on the sale of your main home cannot be deducted.

    Say you buy a house for $100K and then spend another $50K on upgrades. If you then sell that home for $130K (after living in it for the required 2 years for it to qualify as a personal residence), you get a big fat zero deduction for your $20K loss.

    If you sell it for $170K, you also don't have to pay any capital gains tax on the $20K gain.

    Investment property has a completely different set of rules.
     
  14. 4X4HIGH

    4X4HIGH 1 ton status Premium Member GMOTM Winner

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    Ok, after re-reading i was talking about a house being sold with a profit. Obviously you won't be able to claim a loss on a personal residence (in which you've resided) and then also on the upgrades. My bad, should have paid closer attention.
     
  15. HarryH3

    HarryH3 1 ton status Author

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    Yeah, Wes was hoping for a nice fat refund check. He's gonna be on the wrong end of BOHICA once again. ;)
     
  16. thatK30guy

    thatK30guy 1 ton status Premium Member

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    I still should be looking at a fat return.

    Claiming one of our kids, daycare, health ins., legal fees, mortgage int., retirement, and income taxes.

    I'm aiming for the $4K range for the return.
     
  17. HarryH3

    HarryH3 1 ton status Author

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    Dayum! That's a pretty large interest-free loan that you provided ol' Uncle Sam. :( Ya might want to run some numbers on your W4 and bump up your deductions so you get to keep more of that money during the year. You could have had an extra $333 a month all year... :doah:Alas, if you're renting now that screws up one of the best deductions you can get. :(

    Some folks use the income tax return as a forced savings plan but I prefer to keep the money invested and working for ME and end up just about breaking even come tax time. :D
     
  18. thatK30guy

    thatK30guy 1 ton status Premium Member

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    Since I work for the school district, there's a bunch of stuff they deduct out of our paychecks. More than normal paychecks. I think there were around 8 different deductions on it. Some were life ins., the normal state and federal taxes, medicare, retirement, etc., etc. You get the idea. But yes, my job takes more out of our pay to all these little things. Oh well.

    I don't rent and never will. I'm on my third home ownership. Matter of fact, my current home is bigger than the ex-wife's apartment and she pays around $100 more than I do for her rent where I pay escrow in mortgage. Tell me who's losing money now.

    I can't save my tax refund for '06 as I have major bills to pay off. I have my legal fees to pay off and credit cards the ex left me as part of the settlement agreement. Next year will look much better as I'm already planning ahead for the return for '07.
     

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