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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Tax questions
Expert: Glenn D Schnabel
Date: 10/9/2008
Subject: Tax questions
Question
Here it is in a nut shell.. I receive social security for survivor benefits Approx$12,576. per yr. I have a small in home business, I am trying to get off the ground. Which isn't doing well just yet.
I pay $800.00 per mo. for health insurance for me and my kids. Mines high because I'm a cancer patient. I have a loan for my house. I pay taxes on my house. I have approx.. $5,000.00 in medical bills. And I have lost approx $150000.00 in the stock market. I did gain about $10,000.00 on stock through out 2008.
How can I write all these off on my taxes when I don't make much to begin with. Will I end up getting money back? Or does the overages just disapear? My photography business is not going well since my cancer was a problem during my busy season. Many Many Thanks!!
Jacque
Answer
Jacque,
Thank you for your question.
1)How can I write all these off on my taxes when I don't make much to begin with. Will I end up getting money back?
Lets talk about this small in home business. Does it show net income or loss after deductions?
For tax deductions, you would see if you qualify for itemized.
You would have:
if you paid a balance due on State taxes in 2008, you would get a deduction
The mortgage interest and real estate taxes would be a deduction
if you have no withholdings from state taxes or no balance due, you would have a sales tax deduction.
If you show earned income, then you may get a refundable tax credit.
Otherwise if you pay in federal estimates or have taxes taken out of your social security you will not get a refund.
You would get a medical deduction , anything over 7.5 percent of your AGI
As for the $150,000 loss is that decline in value or actually sold stock? If you had a $10,000 gain on stock , the $150,000 losses on sales of stick would eliminate the gains and give you a $3000.00 loss for the next 15 years.
With your medical expenses, mortgage interest, and real estate taxes, you would probably qualify for itemized deductions.
Hope this is helpful.
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