Assett Depreciation

[Kurly]

While working in the Assett manager in the tax software I use. I noticed there were 2 places that I could transfer the $ on the Sche A (1040). Points and Miscellaneous. Could any of you give me an example as to why & when I would carry the $ to the Sche A?

Thanks Much

Kurly

[Koss]

Home Office

When claiming expenses associated with a home office, expenses such as mortgage interest and property taxes need to be allocated between the personal and business portions of the home.

The calculations must begin with the home office, because you need to determine what portion is business. So for any taxpayer claiming home office expenses, you cannot simply enter mortgage interest and property taxes on Schedule A.

Once you have determined the portion that is attributable to the home office, your program can probably carry the remaining amount to Schedule A as an itemized deduction.

This has got to be one of the most common mistakes made by do-it-yourselfers, and even some inexperienced tax pros. If you enter property tax and mortgage interest on Schedule A like you normally would, and then do a home office, you are double-dipping.

But if you leave it off Schedule A, and do the home office, you may forget to go back to Schedule A and enter the non-business portion. The program is probably trying to prevent this type of error.

BMK