Tax Law (Questions About Taxes)/Tax questions

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Question
I have some tax questions.  First, I had a home built in 2015.  I paid $995 in origination fees on the construction loan and $400 in origination fees on the permanent financing.  Is it all deductible at once or do I have to spread some of it over the life of the loan?  Second,  I have a 22 year old son who does not live with me nor do I claim him as a dependent.  I do carry him on my insurance and sometimes pay his co-pays for doctor visits.  Are those expenses deductible?  Lastly,  I have a rental real estate business.  In 2015 I purchased a lawn mower and a wood chipper to use for my business.  Are they items I can fully deduct or do I need to capitalize them?  Thank you for your time.

Frank

Answer
Frank,

The fees on both loans can be deducted in 2015.

The expenses for your son are not deductible. If he were a dependent, you could deduct medical costs you pay for him.

The items you purchased for your business can be expensed under Sec 179, presuming they are used 100% in the business. If less than that, you must pro-rate the amount of expenses. If under 50% you cannot use Sec 179.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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