Repairs and improvements

If you own rental property: "A repair keeps your property in good operating condition. It does not materially add to the value of your property or substantially prolong its life."

I wonder if the the genius who wrote this ever tried to sell or rent a house with mold, discolored wall board, or sagging ceilings because the plumbing, gutters, or leaks weren't fixed. It might not add value, but if you neglect repairs, you can certain subtract value.

"You can deduct the cost of repairs to your rental property. You cannot deduct the cost of improvements." Improvements you depreciate. And if you understand depreciation, you should be a CPA, not a landlord.

Dogs will be dogs

IRS Publication 17, p. 172: "Loss of property due to damage by a family pet is not deductible as a casualty loss unless the requirements discussed earlier under Casualty are met." So I looked at that section, and it referred me to the above. The only example given is your new puppy pees on your oriental rug. Because it is expected and not unusual that puppies do this, you can't claim this damage. However, if the dog pees during a terrorist attack or government demolition of your home, you might have a case (IMO). But you might also have bigger problems.

What tax laws are new for 2010?

On p. 38 of Publication 17, it says, if you want to know what tax laws (affecting credits, IRAs, withholding and estimating) are new for 2010, look in the front of this publication (17). If you want to know what is expiring in 2010 you'll need Publication 505. Sorry.

How long should I keep my tax records?

"You must keep your records for as long as they are important for the federal tax law." p. 18, Publication 17. It could be 3 years, or 2 years, or 6 years, or forever if you've tried to evade taxes. For property, don't throw anything away. And if you plan to file for Social Security, it looks like you should be saving Copy C of the W-2 forever, also. Just in case there's a screw up and someone's been using your number. Looks like you need to keep the copies of your returns too, just in case. You can get a copy from the IRS (form 4506), but it will cost you. And it's not speedy, either.