Here are more answers to your tax questions, courtesy of Chuck Stevens of Cooney Faulkner & Stevens LLC:

        Question: I am moving to the Tristate area and plan to retire in 15 years. I have a 401(k) plan and a pension, as well as U.S. savings bonds that will fund my retirement. Which state has the best tax advantage for the present and future?

Have a tax question? Ask us here.

        Answer: There's no easy answer. You must consider not only income taxes but also intangible taxes in some states, sales taxes, income-tax breaks from retirement benefits, etc. Many publications and web sites — such as www.homefair.com, www.taxadmin.org and www.bankrate.com — have listings showing the individual income-tax rates for various states and a more in-depth look at some of the issues to consider. The U.S. savings bond interest should be exempt from state taxation. Ultimately, you should not base your decision on where to retire purely on which state has the lowest tax rates.
       

Local taxes

        I have about $550 in local taxes withheld (from Boone County and Cincinnati) and am wondering if I can file to get that money back. I haven't found information online about it, but I've heard you can get back the entire amount. Where can I find this information? Is it worth it to file?

       Generally, you will owe local taxes if you work and/or live in a locality that imposes a tax. If your employer is withholding these taxes from your pay, it is typically because the company is located in the locality or you have indicated that you live in the locality. If you have withholdings from a particular city where you work but spend a number of days outside the city limits, you may be able to prorate your tax liability and receive a portion of the money back. This is accomplished by filing an income-tax return for that locality showing a schedule of days in the city versus days outside the city. Depending on the number of days spent outside the city, you may or may not think it is worth the time to file.
       

Rental property repairs

        Where would $1,500 to paint the exterior of a rental house be reported? Would that be a repair or would it be annualized? If the latter, for how long and on what form?

        In general, expenditures that increase the useful life of an asset must be depreciated over a certain period depending on the type of property. In the case of residential rental property, 27.5 years is the applicable period. The depreciation expense is reported on line 20 of Schedule E, Form 1040. If expenditures do not extend the useful life and are reasonable expenditures to repair and maintain the property, they are deducted as repairs and maintenance expense on line 14 of Schedule E of Form 1040. See the instruction for Schedule E available on the IRS Web site at www.irs.gov. Painting would normally be deducted as a repair.
       

Rental property taxes

        How are capital gains and recapture taxes figured and reported on rental properties having an ACRS (Accelerated Cost Recovery System) life of 15 years and 18 years? What if the properties are sold after 18 years? Does that make a difference?

        Buildings and their structural components are generally subject to Internal Revenue Code Section 1250 recapture. The gain from the sale or disposition of Section 1250 property is taxed as ordinary income to the extent the ACRS depreciation exceeds the amount allowable under the straight-line method. In addition, a maximum capital gains rate of 25 percent is imposed on certain prior depreciation known as unrecaptured Section 1250 gain. The sale is reported on Form 4797 and the form and instructions are available at www.irs.gov.
       

Schedule D

        I was doing my taxes online and got to the Schedule D, capital gains section. Every question was clear until it asked for 28 percent gain or loss with a box next to it. What goes in this box?

        The 28 percent capital gains rate generally applies to the sale of collectibles held for a period exceeding 12 months.
       

Casualty losses

        We had a house fire in 2000. Our insurance does not want to pay for about $16,000 of our personal belongings lost in the fire or about $30,000 in home repairs we had done. We had to hire a lawyer, who will get 33 percent of the repairs and personal belonging money they do end up paying us. Can we deduct the remainder?

        Casualty losses are calculated as the lesser of either:

        • The difference between the fair market value of the property immediately before the casualty and its fair market value immediately thereafter, or

        • The adjusted basis of the property immediately before the casualty and reduced by any insurance proceeds received.

        The deduction is then reduced by $100 and limited to the portion exceeding 10 percent of adjusted gross income. The losses reported on Form 4684 and you must itemize to claim the deduction. Additional information can be found by visiting www.irs.gov and downloading the form instructions.
       

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