Tax Answers

April 15, 1994

This is the last day members of the Maryland Association of Certified Public Accountants answer readers' tax questions. Income tax returns must be postmarked by midnight tonight; if you file for an extension, you must enclose payment for any estimated tax due.

Q: I have some rental property that I haven't received any rent for, but I have expenses -- gas and electric bills and the water bill. Can I deduct these?

A: Yes. Ordinary and necessary expenses for managing, conserving or maintaining a rental property from the time you make it available for rent are deductible. If the rental property is not available for rent, then the costs are not currently deductible but must be capitalized.

Q: My son had a little over $2,000 worth of summer income. I still claim him as a dependent and I would like to contribute that money in his name to an IRA in his name. Is that permitted even though he is still a dependent of mine?

A: Yes. Your son may contribute to his IRA account without causing you to lose your dependency deduction for him.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary. Consult with a tax adviser for specific advice.

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