Home-equity and tax-deductions?

Folks -

I am planning on taking a home-equity loan on my current home to purchase a second home. I will be moving to the newly purchased home (second) and rent-out my current (first) home.

Is the interest that I pay on the home-equity on the first home tax-deductible?

If yes, how can I estimate how much I will save on taxes, if I know the amount of interest and also, approximate tax-bracket that I fall in?

Thanks,

Is it better to have your health insurance deductions taken out on a pre-tax or post-tax basis?

I am in a low tax bracket (15% I think) and my company offers the choice of having your health insurance payments taken out on a pre- or post-tax basis. I’ve heard that you pay less money in taxes if you get it taken out on a pre-tax basis, but if you get it taken out on a post-tax basis you get tax-cuts at the end of the year. Is there any truth behind this? Please help. I’m confused.

Should Income Tax deductions be pro-rated?

Inspired by a previous question as to why the magical number 18 is the dividing line between being an adult or child, when in reality we tend to mature much later (in many cases).

When you file your Income Taxes, you will notice at least two things that seem illogical and unfair.

A baby born on Jan. 1 doesn’t get the full year deduction for it’s parents as does the same baby born on Dec. 31.

Same holds true for people who get married. They can’t get the advantage of "Married filing Jointly".

If you were in Congress, would you propose a law that makes these Income Tax advantages pro-rated on a monthly basis, so that a child would get a twelfth of the benefit for each month.

This may sound ridiculous to you, but serious money is lost on a child who has the disadvantage of being born just after midnight on Jan. 1. Roughly several hundred dollars of benefit is at stake, maybe more depending on the tax bracket.

Maybe folks would want to induce labor sooner over this?
Yes, I know the difference between exemption and deduction, and yes, it does get complicated, but no, no increase in taxes (read my lips).
I messed up this question, and it was ill timed (it’s after tax filing season).

Child born Jan. 1 had no benefit for the parents tax return of the previous year.

Child born Dec. 31 gets full year benefit on parent’s taxes.

Question about tax deductions?

Hi. This is a pretty basic question, sorry. But I’m 18 and it’s the first time I’ve had to worry about tax returns/extensions. I am not claimed as a dependent by anyone. I know that a deduction doesn’t function the same way as a credit. But does a deduction reduce the amount of my income that is taxable, or is it only used to determine which tax bracket you fall into? I am a full time college student, and I received 00 in 2006 from a small trust fund. Given that the standard deduction is 50, and the personal exemption is like 00, I owe nothing, right? Is this true for the California state taxes also? Also, if I don’t owe, then I don’t need to file, do I? I assume I’m not getting a refund if I never actually paid anything. Could someone let me know if I’m right about all this? I thought I didn’t need to file, but then someone told me otherwise, so I’m kind of panicking. I need to do an extension really quick if I was wrong. Thanks!

Would it be a good idea to set up a traditional IRA for tax deductions I need this year, and a Roth later?

My consulting business did well enough this year that I had a bit of money due to the IRS. I planned on setting up an IRA this year since I’m in my mid-twenties. I like the tax-free potential of the Roth, but I also need to lower my AGI this year. Would it make sense to open and contribute a portion of my wages to a traditional account and deduct what I need to break even on taxes, and throw the rest into a Roth account? Not exceeding the ,000 limit on contributions of course… The fees on the accounts should be negligable, considering that I’m working primarily with an Internet broker.
25% is my current tax bracket.

Tax deductions for new condo owner?

My fiance and I purchased our condo in July. We pay the mortgage, taxes, condo maintenance, and some bills from our joint account. I make about 10 grand more than him a year, but I believe we are in the same tax bracket, if that’s possible. Would we receive more money if I file the mortgage interest, taxes, etc. or would it best for us to split it 50/50? Is it possible for me to file for everything if we paid from our joint account?

Also, could someone provide a link/info for possible tax deductions?

Thanks!

If your standard tax deduction for the year is $4,750, how much do you save by itemizing deductions?

I am unsure how to calculate this question.

Jack is single and his stndrd deduction is 50. IF he is in the 25% margnal tax bracket, how much tax would he save by using his itemized deduction of ,600?

Can u rollover personal tax deductions into the next year? Or can only businesses do this?

I was wondering if u can save tax deductions from year to year to make sure that u are paying in the most optimal tax bracket? I have hear of businesses doing this… But I want to know if this is possible for individuals. Please post links that i can read up on for more information. Your answers are appreciated. Thank you.