Members of the Maryland Association of Certified Public...

Tax questions

February 26, 1997

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q. Is is possible to make a 1995 contribution to my recently opened IRA account and then file an amended 1995 tax return? I opened the account in 1996 and have already made my full contribution for that year.

A. To claim a contribution for 1995, you must have made the contribution before April 15, 1996, and notified the sponsor that the contribution applied to the 1995 tax year. Without this notification, the sponsor may assume that all payments made in 1996 applied to the 1996 tax year. Assuming that this notification was not made, your next contribution will be applied to the 1997 tax year and can not be applied to 1995. You should contact the sponsor to determine how the sponsor has applied the payments.

Q. Can I deduct a broker's fee for an apartment as a moving expense?

A. No. The Revenue Reconciliation Act of 1993 modifies the deduction for moving expenses incurred after Dec. 31, 1993. Among the modifications: Taxpayers can no longer deduct as a moving expense the buying, selling or renting of a residence.

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

To ask a tax question, call Sundial at (410) 783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County and 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after you hear the greeting.

Readers also can e-mail questions through The Sun's Web site -- www.sunspot.net.

Selected questions will be answered in the Business section. No questions will be answered by phone.

Pub Date: 2/26/97

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.