Fair market value of an inherited home
If you inherited property, here’s what you need to know about the related taxes. “Taxpayers often misunderstand the tax basis of property that is inherited. The tax basis of this property is not what the person who left it to them paid for it, but rather whatever the fair market value was on the date of death of the person who left it to them”, said to Steven J. Weil, Ph.D., President and tax manager of RMS Accounting.
“When it comes to real property, this often means that an appraisal showing the date-of-death value is required. Knowing this about a property that was held for a long time by whoever left it to you can save you thousands of dollars,” Weil added. Here are 10 Unexpected Things That Decrease Your Property Value.
Military moving expenses
If you are in the military service, travel more than 100 miles and need to stay somewhere overnight, you can deduct unreimbursed travel expenses such as transportation, meals and lodging.
“Military personnel may not understand they are the only ones still allowed to take a deduction for moving expenses,” said Dave Du Val, EA and Chief Customer Advocacy Officer at TaxAudit. If you’re an active military member, any costs you might incur for moving for a permanent change of station are deductible. On the other hand, these surprising things do get taxed by the IRS, no matter what.
