Can you Depreciate Antiques?

Probably not. The IRS allows businesses to take depreciation deductions for the costs of assets over their useful life if they are expected to last more than one year. The IRS looks at antiques as assets that don't wear out with use or get used up over time so think twice before you redesign your office with that 200 year old partner desk.

Can You Make an IRA Contribution?

Well it depends. You have to have earned income such as wages or self employment income greater than or equal to the contribution amount which maxes out at $5,500 or $6,500 if 50 or older. You also must be under the age of 70 and 1/2 at the end of the year to do a traditional IRA contribution. If you are covered by an employer retirement plan, then there are adjusted gross income limitations for the deductible contribution amount. For 2016, the deduction phases out between $184,000 and $193,999 for those filing joint with only one spouse covered by a company retirement plan. For those filing single the phase out is $61,000 to $70,999. You can still do a Roth IRA if you are older than 70 and 1/2 and have earned income. Roth contributions are not tax deductible but grow tax free. IRA contributions have to be made by the due date of the return not including extensions.

Getting Your Tax Info Ready

I recommend that you have a folder that you put any tax related items in during the year such as 1099's, W-2's, closing statements on real estate transactions, charitable contribution acknowledgements, non cash contribution receipts, K-1's, property tax statements, health insurance coverage 1095 forms, and mortgage interest paid for the year on form 1098. If you sold stock during the year and the broker doesn't have your cost basis, then you need to track it down and also put that in the folder. Value your non cash contributions just once a year before you submit to your tax preparer by using the valuation guide per item donated at the Salvation Army website. Keep up with your business mileage and your total mileage to support any deductions for business travel or charitable organization travel. It is a lot easier if you have just one place to store tax records during the year.

Related Party Transactions

Don't sell property to your siblings (whole or half blood), children, parents, grandparents or spouse and try to deduct a loss on the sale. The IRS doesn't allow you to recognize the loss. If the relative you sold it to sells it to an unrelated party, they use your basis to determine the taxable gain or loss. The disallowed loss is ignored. For example, if James sells stock with a basis of $5,000 to his sister Jane for $4,000, the $1,000 loss is disallowed. If Jane then sells the stock for $6,000 to an unrelated party, then her recognized gain is only $1,000 instead of $2,000. Cousins, aunts, uncles, stepparents, or in laws are not considered related parties for this purpose.