COVERITLIVE.COM

1:00

Jamie Downey -

Welcome my fellow tax procrastinators. Like you, I will be trying to put the finishing touches on my tax return this weekend. My wife is very anxious for its completion as she wants to get her hands on our refund so she can procure a new Coach handbag.

Feel free to ask any tax related questions. If I can not get to all of your questions in the allotted time, you can also submit them via the Managing Your Money section of boston.com. You can also reach me by email. Best of luck.

1:01	[Comment From Kevin] Forgot to add excise tax to 2007 return. Can I just add it to my 2008 return?

1:02	Jamie Downey - Unfortunately Kevin, you can not add this to your 2008 tax return. The proper way to handle this is to amend your 2007 tax return and include the excise taxes in that tax year.

1:03	[Comment From Maria] Can a 401(k) be rolled over into an IRA? If so, is there any tax penalty in doing so?

1:05

Jamie Downey -

Typically, you can not take an in service distribution. However, if you no longer work for the company where you have the 401(k) funds, then you can roll this over to an IRA and not receive any penalty. There are some specific rules to doing this, so talk to the company where you will be rolling the IRA money and have them assist you with the transaction.

1:06	[Comment From Nancy ] Was laid of Dec 2007. During 2008 collected unemployment and worked some weeks on Temporary assigments thryu an agency. On Sechedle A can I include my COBRA health insurance payments paid to my prevoius employer?

1:08	Jamie Downey - Yes, you would be allowed to take an itemized deduction for health insurance premiums on your schedule A. You typically receive a deduction for amounts in excess of 7.5% of your adjusted gross income.

1:09

[Comment From novice landlord ]
I sold an investment property in 2008 and am having a difficult time figuring out the cost basis... it was a rental home - single family dwelling. How does one determine the value of the land versus the cost of the dwelling? I'm tempted to use the insurance company's figures... that is, the property insurance insured the dwellings for less than I acutally paid for the property, based on some sort of replacement cost figures for the dwellings. Can i use their numbers? Will the IRS accept this as legit? thank you!

1:12

Jamie Downey -

The amount allocated between land and the dwelling should have already been done on previous years tax returns. Take a look there first.

In determining the value of the land vs. dwelling, I believe any legitimate policy would appropriate and your method of using insurance sounds as good as any. People also will use their real estate tax assessments which value the dwelling and land. You may also look at the appraisal done when you acquired the property as this may have an appropriate breakdown as well.

1:13	[Comment From Jay ] What is the limit for gifts without being taxed and can a son or daughter make gifts to parents.

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