Tax Law (Questions About Taxes) - Corporate Law - Business

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About Glenn D Schnabel
(Top Expert on this page)

Expertise
I can answer most federal individual income tax questions. I can not provide legal advise.

Experience
I have worked for a CPA firm for over 11 years. I have worked in private as well as government I have recently been running a tax preparation office, mainly focusing on individual income taxes

Organizations
I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.

Education/Credentials
I have my B.S.B.A in Business Administration . Concentration in Accounting I have gone to yearly tax seminars and have tried to keep up with the evolving tax changes

Awards and Honors
Over my years I have received local awards for contributions to worthy organizations.

Past/Present Clients
This, of course remains confidential

You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes)

Questions Answered By Expert Glenn D Schnabel
In Category Tax Law (Questions About Taxes)

Subject	Date Asked

401K withdrawals	11/19/2009
Q: After 59 1/2 the amounts withdrawn become taxable. Does that mean they are considered ordinary ... A: 401K withdrawals are considered ordinary income subject to federal income tax not subject to the 10 ...
filing tax return and independency	11/15/2009
Q: I am 17 years old and I live alone and support myself. I do not live with either of my parents and I ... A: Jewel, If you support yourself and live alone, then you can file yourself and not allow your ...
Home Daycare Taxes	11/9/2009
Q: My wife has a home daycare and we are trying to get things together for our tax return. I know many ... A: Kellen, I would list them as miscel expenses. I would list them as toys for children . They would ...
Dependency Exemptions	11/9/2009
Q: I am a tax student dealing with a research question concerning divorce and dependency exemptions and ... A: Kim, If she waives her right to the exemption , then the court is the only one who can reverse the ...
Physical presences test and lodging, meal exclusions	11/6/2009
Q: I am well versed in the requirements of the 330 day physical test and have met the amount for that ... A: Ric, According to the IRS Publication 54: Foreign earned income does not include the following ...
Filing taxes	11/6/2009
Q: My fiance works for himself and has not filed his income taxes in 2 or 3 years. This is preventing ... A: Maria, If he does not file and has income to report, then the IRS can treat him as a non filer and ...
Sale of Personal Home Turned Rental	11/6/2009
Q: In July 2008 we bought a new home and put our old home on the market. In late December a friend ... A: Troy, Alot of this has to do with intent and what actually happened. If you converted your home to ...
dependent	10/30/2009
Q: My son is going to international high school overseas for the 2009/2010 school year supported by our ... A: Donna, In order for you to claim your son, he has to be in the US for some part of the year For a ...
taxing ira withdrawals	10/29/2009
Q: I am retired on SS and my wife is on disability. Is there a way for me to withdraw approx. $50k ... A: Michael, If you are over 59 1/2 , you can start to take distributions from your IRA without a ...
Tax on Signing Bonus Repayment	10/27/2009
Q: I received a signing bonus of 10k (actually, two bonuses of 5k each) for signing on with a company. ... A: Kevin, I would say you would have to pay back the $10,000. You would then take it as an itemized ...
Stock sales	10/25/2009
Q: If I buy 300 shares of stock for $9000.00 and later sell 200 of those shares for $9000.00 and keep ... A: Tom, If you buy 300 shares at $9000 , each share is $30 per share. if you sell 200 shares for ...
taxes on a class action lawsuit settlement	10/22/2009
Q: We recently settled a class action lawsuit against the city in which I live. It was due to the ... A: Lori, Compensatory Generally speaking, most people view the term "compensatory" to mean ...
tax implications of partnership loan interest	10/20/2009
Q: If a partner finances the business though a loan and collects interest on that loan, is the interest ... A: Steven, What type of entity is the business? If it is a Schedule C then no. If the business is a ...
Tax penalty for eartly CD withdrawl	10/16/2009
Q: My husband and I are going thru a divorce. He receives permanent social security disability income ... A: Sarah, Breaking a CD usually involves a penalty for early withdrawal penalty. You give up some of ...
Laid off package	10/13/2009
Q: My question is I was recently laid off from a company I worked for the last 13 years. I was given ... A: Amir, Yes you have to pay taxes on the whole amount. They should have withheld taxes to cover this ...
Capital Loss/Property	10/12/2009
Q: I paid $250K for a condo, lived in it as a primary residence for 5 years and then move to another ... A: Tom, If you intended to rent it and can prove that you did, then you can treat it as a rental loss. ...
Taxes on Owner Financed Sale of Property	10/9/2009
Q: I am trying to help my mother out with a financial decision. She has several small single family ... A: Chip, What you are referring to is an installment sale of property. Since the property is fully ...
employment abroad	10/8/2009
Q: I am a US citizen and work for an international company abroad. My salary is less than $ 90,000.00 ... A: John, If a US citizen , then you can file the IRS form 2555 and see if you qualify to exclude an pro ...
business losses 4 years in a row	10/7/2009
Q: what are the chances of getting audited for showing business losses 4 years in a row if you have not ... A: Michael, Since they audit approx 10%% of business tax returns yearly, the more you show losses ...
What should we claim?	10/4/2009
Q: I have been working for a company about seven months now. For the first five i was claiming 2. ... A: Josh, You should claim 0 and she should claim 0. The more you have in at the end of the year , the ...
N.Y. State tax	10/3/2009
Q: I am a retired soldier living in Germany, While I was in the military I kept my N.Y. residence due ... A: Richard, If you are a legal resident of a foreign country, then you should be able to exclude an ...
Personal / Estate Taxes in Year of Death	9/30/2009
Q: My father died April 18, 2009. Estate account wasn't opened until July 25. I'm working on his 2009 ... A: Joanna, I would suggest you get the statements from Jan 1 thru April 30. Any sales or earnings ...
Should I file a return for my son	9/28/2009
Q: My son was born June 30 1990. He earned 1100 in ordinary income which I declared as his mother on my ... A: Marsha, If he is a student in college, then you can still claim his as a dependent on your tax ...
Not Reporting Income	9/24/2009
Q: I have a friend who has been doing home renovations as a side job. He is being paid cash and not ... A: Julie, He should not be worried about his end but the other end. All he needs is to have someone ...
reimbursement for expenses	9/24/2009
Q: I have an S Corp and I am the only employee and one of the companies that has hired the corporation ... A: Donna, This would just be considered reimbursed expenses. You would report this as income and can ...
Complete loss on investment	9/22/2009
Q: Last year I put 30k from my LLC into the formation of another LLC with some partners. However, by ... A: Sorry to hear about that. If he did not provide a K-1, then you maybe able to pass this thru your ...
Inheretence and legal fees	9/20/2009
Q: I just received two checks from my lawyer who handeled the estate of a friend of mine. I am one of ... A: Sheila, If this check is for earnings from the estate, then I would say yes. If this is principal , ...
social security number	9/18/2009
Q: I just learned that there is a tax lien out with my ex-husbands and my name on it, in the amount of ... A: Denise, Is this tax lein, for unpaid real estate taxes or unpaid income taxes? If the bank took ...
Complete loss on investment	9/17/2009
Q: Last year I put 30k from my LLC into the formation of another LLC with some partners. However, by ... A: Your LLC would receive a K-1 from your LLC investment and that amount would pass through to you ...
payment of taxes for a work comp settlement	9/17/2009
Q: Hey Glenn, I do presently have an attorney but was curious now. i'm 28 and have an ongoing work comp ... A: Jacob, You don't pay tax on workers compensation received by you or your survivors for job related ...
Reporting a 1099-A for investment land	9/16/2009
Q: I have a client who received several 1099-A's for 4 land lots (investment property). One of the ... A: Joleen, Form 1099-A is an abandonmenet of an asset. Box 2 is the Balance of the Principal ...
Taxes on Gifts at Work	9/10/2009
Q: I read your response (dated 5.2.09) on a question regarding witholding tax from company gifts. I ... A: Christie, If your employer issues gifts to you, then you will report that as income on your tax ...
travel & living expense deductions	9/8/2009
Q: In Nov 08 I had to leave my family and temporarily move to Georgia to care for my elderly father & ... A: Robert, Caring for loved family is very precious. Unless you take your parents as dependents , the ...
Inheritance or gift taxes	9/8/2009
Q: My father died when I was young. But, he left some money behind when he passed. My relatives ... A: Erin, By putting the money in their name, they owed the taxes. Now that they will turn the money ...
Rent Income	9/7/2009
Q: I currently own a dublex, my brother lives in one and I live in the other. I am looking to move out ... A: Terry, It all boils down to income and expenses. Depreciation may shelter some of the gain. If you ...
Taxes on rental investment sale	9/5/2009
Q: I own a condo in CA that has been rented out for 5 plus years. I bought it for $183K, it is now ... A: Lauren, If you sell rental property, you get the report the sale on IRS form 4797. The depreciation ...
Taxes Between DBA ans Corporation	9/2/2009
Q: I'm just about to star a new business and I'll like to know if DBA paid more taxes or Corporation, ... A: Ramiro, A DBA usually indicates being self employed. Any taxes the business made is taxable on your ...
Inheriting house by will	9/2/2009
Q: I will inherit my mothers house and I plan on selling it. Are there any taxes on the proceeds from ... A: Jim, If you sell it, you may have a capital gain or not. Your cost basis becomes the Fair Market ...
673	9/1/2009
Q: I am working in Iraq as a contractor and have filed form 673 with my employer. I received an email ... A: Robert, You need to bring IRS form 673 and notify your employer of Part 111 that you complete. ...
Capital Gains Carryover	8/30/2009
Q: I have been having a problem with the IRS about a capital gains distribution that I inadvertently ... A: Solgor, If you took this capital loss carryover in 2008, then you will need to amend that return ...
tax consequences of a sale of inherited farm land	8/27/2009
Q: Mom passed away first and Dad set a value on farm land owned exclusively by her, not joint. This ... A: Deborah, If your mom passed away before your dad, then your dad had a steeped up basis on the land ...
Short Sale of Rental Property	8/27/2009
Q: Please help me with this problem. I have Rental Property, I Owe $650,000 on 1st and 2nd trust. ... A: JJ, The way it works with rental property is the following: You short sell the property for ...
Sign-on bonus payback	8/26/2009
Q: I received a sign-on bonus in 2008 with my new employer. Since I am considering a job change within ... A: Frank, If you received a sign on bonus one year and the next year you have to pay it back, that ...
to file or not file a minor's taxes.	8/25/2009
Q: Glenn, no one seems to be able to help me out with a simple question. I have 2 minor daughters who ... A: Marla , Is your bakery business a Schedule C (self employed) or a corporation? If a schedule C. ...
WA Spouse Dies 7/1/09 - Filing Requirements?	8/25/2009
Q: Married Couple where H dies 6/30/09. Gross Estate less than 2m. Assume W does not remarry by ... A: Ken, Yes, correct. The wife would file a 1041 and rreport the IRA distributions or pension ...
Foreclosure of Non-Owner Occupied	8/24/2009
Q: Home that was bought as a personal residence, but never lived in due to divorce & moving out of ... A: Camilla, If you were able to rent it, then it became rental property. The formula then is Mortgage ...
WA Spouse Dies 7/1/09 - Filing Requirements?	8/23/2009
Q: Married Couple where H dies 6/30/09. Gross Estate less than 2m. Assume W does not remarry by ... A: Ken, 1. Yes file MFJ . Husband's income is reported up to June 30, 2009. 2. Write deceased next to ...
tax on lump sum lottery winnings	8/23/2009
Q: Just dreaming:-) what is the tax on a lump sum winning of 159.2 million dollars. Thank you A: Philip, You would be in the highest tax bracket. As a single taxpayer, you would be in the 35 ...
Rental Property Depreciation	8/22/2009
Q: (1) I currently am using 27.5 yr depreciation for a 2003 roof I purchased for $3200. I recently had ... A: Jay, I would see if I prepare the IRS form 4684 and get a write-off on the old roof and then ...
self-employment	8/21/2009
Q: Could you provide, roughly, the percentage of taxes taken out of pay for an employee versus a ... A: Natalie, 2009 Federal Income Tax Brackets The following graphic gives you the projected tax ...
Rental Property Depreciation	8/20/2009
Q: (1) I currently am using 27.5 yr depreciation for a 2003 roof I purchased for $3200. I recently had ... A: Jay, I would wrote off the cost of the 2003 roof. The $3200 cost less the depreciation taken. You ...
reading reports	8/19/2009
Q: please tell me which reports the accountant uses to decide my income tax amount. I use quicken and ... A: Paula, It would be the income statement. That reports all your income sources and identifies what ...
Tax implications	8/18/2009
Q: Got divorced. Spouse, her father and myself owned 33.33% share in residence. Bought out spouse and ... A: Dan, Sure. They sold their interest in the house to you. They would have a capital gain to report. ...
Partnership Loss Carryforward	8/18/2009
Q: A client last year filed an S election (subsequent to engaging our firm), accepted by IRS, to switch ... A: Karen, I was surmize that an suspended losses due to a lack of basis would have to be determined as ...
529 tax penalty exception	8/18/2009
Q: My son attends one of the military academies; therefore, we do not need all the funds saved in his ... A: Steve, That is a tough one. Section 2005 , I believe it is section d and not e 3 states: (3) The ...
filing exempt	8/16/2009
Q: I live in california and started work with a new company and turned in my w4 to the new company. I ... A: Tavare, If you filed exempt you should have not have listed any allowances. You would write none. ...
prop tax payment	8/16/2009
Q: hope you can help. I signed legal doc to put my home up for sale one year from my mothers death. My ... A: Beth, Lets say its like a partnership. The fact that you could live somewhere else then pay rent is ...
Write Offs	8/15/2009
Q: I, like so many others, am working as a "contractor", I am a writer. i do have to go to an office ... A: Kristy, Being a writer, you use computers, I'm sure. You use computer software, I'm sure. I'm sure ...
1099c form questions	8/14/2009
Q: I have questions about the Form 1099c. 1. Can a debt buyer send a 1099c form for an old debt from ... A: AJ, If a debt is written off by a bank, its usually up to the bank whether he will write it off and ...
sale of stocks	8/14/2009
Q: I recently sold stocks and derived a profit. Is my tax liablity the difference between the original ... A: Jim, Yes. As long as the stock did not incur dividends that were used to purchase more stock. ...
Tax lein	8/13/2009
Q: If the IRS files a tax lein on a Sub S Corporation can that lein pass through to stockholders ... A: Sandy, It depends on what the lein is for. If its for unpaid payroll taxes, then yes. The ...
Tax on Merger of Company Stock	8/12/2009
Q: Last Sept 17th I bought 500 shares of the Privately held company that I work for for the sum of 80k. ... A: Mike, Sounds like you have a sale of stock for x amount . Your cost is $80,000. You allocate some ...
1099c form questions	8/11/2009
Q: I have questions about the Form 1099c. 1. Can a debt buyer send a 1099c form for an old debt from ... A: AJ, 1-A debt is a debt, no matter when it happened. It depends on when it is determined to have no ...
Taxes owed on loaned money	8/10/2009
Q: I loaned my sister $25,000,to start a business,she repaid the $25,000, and gave me $25,000 as an ... A: Linda, If you loaned your sister $25,000 and she returned to you $25,000 plus an additional $25,000 ...
Estate closed - NJ	8/9/2009
Q: I am the administratrix of my father's estate he past away Jan. 2005. At the end of 2008, we ... A: Lynn, You get to file a final estate tax return once the estate is final. You would still file a ...
taxation choice for LLC	8/9/2009
Q: I have yet to find a simple answer as to the tax structure for LLC...one with numbers as an example ... A: David, An LLC has the same structure as a partnership. Instead of partners you have members. You ...
Muni Dividends for businesses.	8/4/2009
Q: Does my LLC get the same tax treatment on Municipal Bond dividends, if I invest it under my ... A: Jerry, An LLC is just like a partnership. The income gets "passed through" to each member. If the ...
Tax Filing for	8/3/2009
Q: I have just become treasurer of a common interest planned community in Connecticut.It has an ... A: Ronald, The entity needs to file corporate tax returns. It should qualify to file an 1120H What ...
prop tax payment	8/2/2009
Q: hope you can help. I signed legal doc to put my home up for sale one year from my mothers death. My ... A: Beth, If she is a co-owner she should have contributed to the expenses of the house. When the house ...
Taxes and Educational Loans	8/1/2009
Q: I currently have a large burden of student loans from medical school, which I finished more than six ... A: Stephen, If your employer bonuses you out your student loans, then that would become income to you ...
investment loss	8/1/2009
Q: I invested $500.00 on a swap-meet venture. I never received the merchandise and I'm taking the ... A: Frank, What is a swap meet venture? If this could be viewed as a casualty loss, ie stolen funds, ...
Social Security Wage Base	7/30/2009
Q: My boss owns several companies. I am moving an employee from one of his companies to another of his ... A: Ann, Yes, if you have an employee that will be transferred to a separate entity, then you must ...
IRA/BDA	7/30/2009
Q: After a long illness, my ex-husband (divorce in 2000) passed away in March of this year. He had a ... A: Shirley, His taxes are the liability of his estate . You do not have to pay his taxes. The ...
ira..rmd	7/30/2009
Q: i have two ira accounts..one is a 401 k rollover and the other after tax supported by necessary 8xxx ... A: Michael, I did not understand . If you are pulling out money from an IRA where you have non ...
Gift of Money	7/29/2009
Q: I live in the state of Texas. If my parents wanted to give me and my sister a money gift of over ... A: Diana, No. The recipient does not pay. The donor would have to report. Your parents can gift each ...
ira..rmd	7/27/2009
Q: i have two ira accounts..one is a 401 k rollover and the other after tax supported by necessary 8xxx ... A: Michael, If you take money from a retirement account, you will get a Form 1099 R . If taxes were ...
Taxes	7/27/2009
Q: Five years ago my father put his house into my sisters name using a 'Quit Claim Deed'. He is now 95 ... A: Ed, The Quit Claim deed transfers his cost basis to your sister. When you sold the house, you can ...
capital gains or inheritance tax	7/25/2009
Q: When a spouse dies leaving a community property-home to the surviving spouse (the house is actually ... A: Marissa, I do not know about California taxes. On a federal level, the surviving spouse would get a ...
my first job	7/24/2009
Q: Glenn D. Schnabel I was hoping you could answer a question that I have that has been bugging me. ... A: Liz, I understand where your parents are coming from. They want you not to be distracted from your ...
Loss of Membership Deposit	7/23/2009
Q: We became members of a social/golf club with a refundable deposit of $35,000.00. In Jan. 2009 the ... A: Julie, Personal losses would not be deductible. If this was considered a business loss or fell ...
Who will get more money by claming our child?	7/22/2009
Q: My boyfriend and I are obviously not married, and have a 9 month old daughter. I just started ... A: Genny, You would qualify for the earned income tax credit. You boyfriend would be in a higher tax ...
Amended Return	7/22/2009
Q: I am preparing a 1040x to claim NOL refund for tax years 2005 and 2006. The NOL year is 2007. I've ... A: Warren, When you completed the IRS form 1045 as the support for carrying back the NOL, all you do ...
Seller Equity Participation	7/22/2009
Q: I own investment real estate and would like to sell the property to a buyer who has requested I have ... A: Chris, If you sell the property for the Fair Market value, you would pay capital gains on the gain ...
Forgein Investment Monies	7/21/2009
Q: I'm starting a small real estate investment firm possible using foreign monies. Will I get taxed on ... A: Ricky, If you record it as a loan or stock basis if a corporation, there should not be a tax effect ...
Internet Re-imbursement	7/20/2009
Q: I work as an IT systems administrator. My work requires that I be available remotely for emergencies ... A: Greg, It is up to the employer concerning reimbursement. If you feel that you can support the bus ...
education deductions	7/18/2009
Q: I am thinking of taking some on-line classes to get a certificate for job in the Medical Field, ... A: Deb, These classes may be deductible as a life time learning credits for federal income tax ...
S-corporation total loss	7/17/2009
Q: I have an interest in an S-corporation that was established to build a housing development. The ... A: James, If you are trying to take a tax loss and use the tax basis amade tos the mortgage on the ...
Foreign tax question	7/16/2009
Q: I am taking a job for a doemstic company in China. The company will pay my healthcare insurance, but ... A: Tom, It sounds like you may qualify for the foreign income exclusion on your wages earned in a ...
IRA MRD	7/14/2009
Q: All of my IRA assets are in two notes secured by real estate. Both are in default, no interest ... A: Jack, Before Pres Bush left office, he repealed the MRD, so you do not have to take a distribution. ...
property tax	7/12/2009
Q: Both me and my son are listed on the title deed of a condo as co-owners. I want to take my name off ... A: Richard, it sounds like you are giving your son a gift. You and your wife can split gift annually. ...
TAX RETURN ERROR BY CPA	7/11/2009
Q: Is a large, national CPA firm liable for a mistake in preparing a tax return that cannot be amended ... A: Paul, Time to get a new accountant. It appears that your accountant was sloppy and most likely ...
Is this taxable?	7/7/2009
Q: I recently received money resulting in an overage from a delinquent tax sale for property. This ... A: Sheila, I do not understand. IS this money from a real estate escrow account? If it is , then no it ...
401K Federal Taxes.	7/5/2009
Q: Sir, I am trying to estimate the federal taxes on my 401k savings. Planning to retire 11/09. My ... A: David, If you know how much you put into the plan, then you can see which method works best for ...
taxes on 2nd home	7/5/2009
Q: my sisters and I just sold my mom's house, she went into a nursing home. She signed the house over ... A: Debbie, Please note that the IRS just requires the sales price and the cost of sale. You do not ...
Qualifying Section 1256 Contracts	7/4/2009
Q: I have sold puts on the following ETF's. UNG,FAS,URE ERX. They are listed by google as index ETF's. ... A: Edwin, According to the IRS: Holders of puts and calls. If you buy a put or a call, you may not ...
taxes on 2nd home	7/4/2009
Q: my sisters and I just sold my mom's house, she went into a nursing home. She signed the house over ... A: When your mom deeded the house over to you, she , in effect, transfers her cost basis over to you ...
taxes on 2nd home	7/3/2009
Q: my sisters and I just sold my mom's house, she went into a nursing home. She signed the house over ... A: Debbie, I would suggest that you document a chronology of what was done in the house which is ...
K-1 requirement	7/2/2009
Q: I have invested $50,000 in an LLC. The operating partners refused to provide me with a K-1 as there ... A: Virginia, If you invested on an LLC, they are still required to file a return, even though there ...
two primary residences	7/1/2009
Q: My husband and I are paying a mortgage on our primary home and write off the interest. We are ... A: Julie, If you file a joint tax return, then you can only have one principal residence. You can have ...
non employee compensation question	6/30/2009
Q: I received a letter from the IRS indicating that in 2007 I did not report $29600 in non employee ... A: Tim, You should send your ex employer a certified letter which asks him to provide copies of checks ...
tax on sale of stock	6/29/2009
Q: Do you pay tax on the sale of stock if you DO NOT withdraw the funds from the broker AND how is it ... A: Theodore, If you sell stock , you have to report a gain or a loss. In most cases even if you ...
incorrect filing	6/29/2009
Q: I had a summer job in 2008, and I wrote in my paperwork, when they hired me, that I was not ... A: Tea, When you filed your return for 2008, did you file as a dependent of your parents? Hence no ...
Primary Residence Qualifications	6/27/2009
Q: I am interested in purchasing some land to eventually build a house for retirement. I would like to ... A: Carl, Refer to link below: ...
maximum deduction	6/25/2009
Q: I am having a situation with my current employer. No FICA taxes have been withheld from my ... A: Catherine. You can claim single 0 . You did not tell me what state so I used NY. On $474.00 gross ...
Money from sale of mother's house.	6/25/2009
Q: My mom died in April. I'm the only heir. All she had was her house. She bought it for 104K 6 years ... A: Joe, When your mom died , the cost basis of her home to you is the fair market value at the date of ...
sales tax for an invoice/comp. not in my state	6/24/2009
Q: e-Mds a software-support agency invoiced my company for an annual upgrade and after I had paid the ... A: Rose , They may be charging you Illinois sales tax. Technically if they have a business location ...
reverse mortgage interest deductions	6/24/2009
Q: i have been told that interest can be paid i cash on a reverse mortgage if desired to reduce the ... A: David, If you carry a reverse mortgage, then you receive money from the mortgage. According to ...
bankruptcy tax loss	6/23/2009
Q: If a company goes bankrupt, can I write off the entire amount I lost as a shareholder in the same ... A: Seth, If you have " Small business stock " then you should be able to write off up to $50,000 or ...
federal taxes/severance pay	6/22/2009
Q: I was recently laid off and received a severance package. The check covers pay periods over the ... A: Lucy, This statement perplexes me. I'm informed them that I elected to have no federal tax withheld ...
Tax Law	6/20/2009
Q: Q1) I want to buy a warehouse for my Corporation and I would like to know if I can borrow the money ... A: Luis, Yes, But you will have to pay interest on the loan from the corporation. You have the right ...
sale of property given to me by family	6/20/2009
Q: I was deeded property by my mother. Total of three properties. Two vacant lots which have sold ... A: Lisa, If you sol the lots and the commercial property, then you have capital gains to report. Since ...
S Corporation Loan from Bank, shareholder takes it	6/19/2009
Q: If a S Corporation obtains a loan from a bank and a sole shareholder takes the proceeds, I'm ... A: 1) If a shareholder takes the loan proceeds as a loan from the company, what is the tax treatment? ...
Tail insurance	6/18/2009
Q: I am a physician. I am moving to another state. Have to pay tail insurance for previous ... A: Marina, If PTO is paid tome off, then they are correct. If they use the money to pay your expense, ...
federal income tax per occupation	6/17/2009
Q: I am a liscensed insurance agent in Oregon and received a year end pay stub that read W-2 shedule C ... A: Dave, I would say that either they take taxes out, namely the fica and medicare which would say to ...
Work in one state, own home in another...	6/17/2009
Q: I am considering taking a job in MI, but would not sell my home in IL. I would just rent a place in ... A: Paula, You determine where you are domiciled. If you consider yourself domiciled in MI, then your ...
State taxes	6/16/2009
Q: I work for a company that contracts for the government.My question is that I reside in another state ... A: Aj, You file in the state where you are domiciled, where you live. If you receive wages from ...
what is taxable	6/15/2009
Q: i am a grandmother and also a dependent of my son. i do some little jobs there and here and make ... A: Elizabeth, If you receive $4000 in W-2, and withholdings were taken out, then a tax return would ...
When is a 1041 Needed?	6/15/2009
Q: I'm unclear as to the purpose of a 1041 form. My father-in-law passed away in 2008. All of his ... A: The final return (Form 1040) reports all income from Jan 1 to the date of death, After the date of ...
Home Buyer Tax Credit	6/13/2009
Q: We will be buying a home for the first time this summer. We filled an extension so we could receive ... A: Rick, File the 1040 and complete the IRS form 5405 to claim the first time home buyer credit. As ...
capital gains tax & gift equity tax	6/13/2009
Q: My husband purchased a home to rent to daughter for $96k. After repairs & improvements he had $115k ... A: Carolyn, Your husband is buying a property and then "flipping it over" to your daughter. If he ...
taxes	6/12/2009
Q: For My uncle Gerald My uncle wants to help me buy a piece of Real estate. he will put in 130K-150K ... A: Robert, If your uncle is ovr 59 1/2, and you said he is 72, he will not be subject to penalties if ...
Amendment to taxes	6/12/2009
Q: I filed my 2008 taxes already but I just purcased a home this month. Can I make an amendtment so I ... A: Chris, If you are a qualified first time home buyer and you purchased your home in 2009 , you can ...
medical bonus payout	6/11/2009
Q: glenn, my company is giving our employees (non salary) a medical signing bonus. this bonus is to be ... A: Mario, This sounds like they are paying your medical insurance for you. If they are, then this is ...
1033 question	6/9/2009
Q: i wanted to know if you folks deal with 1033 exchange (eminent domain tax issues)?? the question ... A: Sam, Your three year window is to find replacement property to defer any gain. After that three ...
Teacher award	6/8/2009
Q: I work for a non-profit education organization. We are going to be starting to send funding to ... A: Alex, Q: if we make checks payable to the teachers will we have to send a 1099? A: yes Q:The ...
Woking in OH living in MA	6/4/2009
Q: I have a job offer in OH. I do not have to relocate from my home in MA. I will only have to travel ... A: Steven, The rules concerning travel are very specific. Once the job lasts over a year or if you ...
Employer withholding W2	5/31/2009
Q: Good Morning Mr. Schnabel, My daughter recently left employment with a company. In her resignation ... A: Catherine, As a practical matter, an employer does not prepare W-2's for 2009 in 2009. This is done ...
Claiming dependents	5/31/2009
Q: I have a cousin that seperated from her husband over a year ago. She moved in with my parents with ... A: Salma. Since they are his children, it would have to be determined who is the "custodial parent". ...
income tax	5/31/2009
Q: I am a tutor for the local college's students, and was wondering how I should file my cash/check and ... A: Paul, You would pay estimated taxes in during the year (IRS form 1040ES and whatever state you live ...
foreign taxes	5/30/2009
Q: IF I live abroad do I have to pay the taxes of the country I live in or American taxes or do i have ... A: Zak, If you are a US Citizen, then you report your worldwide income. If there is a tax treaty ...
Employer withholding W2	5/29/2009
Q: Good Morning Mr. Schnabel, My daughter recently left employment with a company. In her resignation ... A: Catherine. W-2's are usually prepared in January of the following year in which it applies to. So ...
down payment	5/28/2009
Q: My fiance and I are looking to purchase a house some time before December in light of the recent tax ... A: Paul, If it is a loan, then documents should be drawn up. Set up a promissory note and a schedule ...
Capital gains on sale of farm land	5/27/2009
Q: In 2009, I sold a parcel of unimproved land in Ohio that I had been renting out to a farmer and ... A: Marie, Refer to IRS form 4797 . The instructions show how to treat farmland with specific criteria. ...
Tax ID Question	5/27/2009
Q: I am selling off a installation business. I have contracts to finish that will extend into the end ... A: Andrew, If the buyer moves from an employee to a 1099 owner, then you can have two ID's. One would ...
capital gains	5/24/2009
Q: 4 months pior to the completion of my divorce, we sold a home and received 36,000 profit. we split ... A: Michele, First of all, the $27,000 was probably not alimony. It was a divorce settlement. If you ...
Transfer of Assets	5/24/2009
Q: Transfer of Assets We want to transfer assets from our son’s investment account into our account. ... A: Steven. I guess he can do that. Your relatives can then give $13000 each to you The whole ...
How to reduce AGI?	5/22/2009
Q: I've read much about reduce AGI, but not sure if I understand how to do this with regards to rental ... A: Reed, 1)What I don't understand is what do people mean by reducing AGI, what else could I do to ...
Mortgage Interest Deduction	5/21/2009
Q: Mr. Schnabel: My question is very similar to the one you answered on 12/5/2008. I have a 5 acre ... A: Gustavo, You are allowed only one primary residence and one second home. Interest on the land ...
Rental Homes and Tax Benefits	5/21/2009
Q: I purchased my first home in May 2008. The home is in need of significant remodeling work before ... A: Jon, The costs of renovating the home would become part of cost basis of the property. even if you ...
Unified Credit to Gift Tax	5/18/2009
Q: My stepmother wants to gift me about $150,000 in 2009. I am unsure of the tax consequences of this ... A: Patrick, She would file an IRS form 709 Gift tax, take the $13K exclusion and the difference would ...
Tax Credits for new windows	5/17/2009
Q: Schnabel, I replaced all the windows in my home May 2008 with energy efficient windows. Now I read ... A: Frank, You get the credit in the year that you pay for the windows. You are considered a cash basis ...
Federal income tax withholding	5/16/2009
Q: Starting in April, 2009, withholding from my pension check dropped by a large amount. I was told the ... A: Don, I'm not sure why the withholdings would drop by a large amount. If you have been receiving ...
Filing back taxes	5/14/2009
Q: My soon to be fiance worked for about 2-3 years as a subcontractor, he was in sales, so I assume he ... A: Bonnie, First of all, the IRS does not purge their records after 6 years. This is not true. He ...
State tax deductions	5/13/2009
Q: When you deduct state taxes on your itemized deductions, are the state taxes you paid deducted ... A: Frankie, Yes, The self employment deduction shows up on 1040 page 1 after gross income as an ...
State tax deductions	5/13/2009
Q: When you deduct state taxes on your itemized deductions, are the state taxes you paid deducted ... A: Frankie, No. The payments reduce income , in effect , which reduces what you pay in taxes. If you ...
Capital gains tax on non-primary residence	5/11/2009
Q: My Dad assumed ownership of my Grandma's house about 9 years ago and recorded the value of the house ... A: Kerrie, Assuming the $150,000 is a valid cost basis, he would have a capital gains tax on income ...
New Car Purchase Stimulus to deduct sales tax on new car	5/11/2009
Q: I had a question about the new car stimulus tax break. I've read that you can claim this deduction ... A: Steve, Good question. The deduction is available regardless of whether a taxpayer itemizes ...
girft tax	5/8/2009
Q: I have read that a yearly limit of 11,000 or so can be given away without tax to any number of ... A: Sheri, If you follow the gift tax rules it is up to $12,000 a year per individual. Any amount over ...
short sale	5/6/2009
Q: My husband and I are trying to do a short sale on our home.It is our primary residency. I was ... A: Nicole, If you have more debts then value in assets then you would be considered insolvent. ...
SEP early withdraw	5/5/2009
Q: Are there any provisions which would allow me to withdraw a portion of my SEP to pay for emergency ... A: Mike, You may want to check with your administrator to see if you can borrow the funds and later ...
Transferring Property to A Child in Minnesota	5/5/2009
Q: My husband and I are attempting to make ourselves judgment proof due to a downturn in his small ... A: Connie, This sounds more like a legal question. If you deed the property to the son, you may have ...
filing status	5/3/2009
Q: Glenn, It is me again. I live in CA and in the process of divorcing, not finalized yet. We began ... A: Cindy, If you filed already under one filing status and now want to change your filing status, then ...
Taxes on work prizes	5/2/2009
Q: The company I work for has work events (ie;Spring fling, summer picnic, etc.), and at these events ... A: Erica, Its legal. if you win prizes then they are required to charge you for the value of the item ...
double taxed?	5/2/2009
Q: I worked for a company out of Memphis. I got paid out of CA property. I traveled to several ... A: Jolie, You pay taxes on income earned in that state. You should have filed as a non resident and ...
Avoiding Corporation Tax	4/30/2009
Q: I'm an IT contractor with my own Nevada corp. I don't want to pay tax on my money. I was thinking ... A: Asher, No one wants to pay taxes if they can avoid it. If you have a Nevada corporation and the ...
filing status, separated, no children	4/29/2009
Q: From what I've read here, and on the IRS site, despite being separated, living apart, and completely ... A: Suzanne, As a practical matter, I have never seen the IRS go after clients who filed as single ...
filing status, separated, no children	4/29/2009
Q: From what I've read here, and on the IRS site, despite being separated, living apart, and completely ... A: Suzanne, Just to let you that the whole purpose for income tax is for the redistribution of wealth ...
Claiming a dependant	4/29/2009
Q: My fiance has 2 children with his ex-wife. When they were divorced 9 years ago she retained custody ... A: Carri, That is correct. He should file his return and claim the child that he is entitled to. This ...
Self-employment tax w - 2	4/28/2009
Q: If Minister does not have a voluntary withholding agreement with the employing church, What should ... A: Brian, If he did not complete a W-4 as an an employee then he may considered a self employed ...
CPA error on last year's tax return	4/27/2009
Q: I have used CPA's for my personal tax filings the past 10 or more years. To save money, I decided to ... A: Barb, If the accountant made an error, then she should fix it , at her expense and work out a deal ...
Dividends	4/26/2009
Q: If I get a $1,000,000 dividend, is this dividend subject to standard income tax of 35% aswell as ... A: Frankie, Dividends are passive income and not subject to self employment taxes. Self employment ...
settlement	4/26/2009
Q: A stock company's agent forged documents, took money out of an IRA and 18 days later put it back. ... A: James, I asked this question because you said that the equities were sold and you said the ...
$250,000 exclusion on sale of residence	4/24/2009
Q: Wife died in May 2008. Residence was owned jointly for more than 2 years. Husband sells residence ... A: Russell, I do not believe so. Since the wife dies, and if the property was held jointly, then 1/2 ...
Claim 1 on your taxes	4/23/2009
Q: I am a single homeowner with an income of 70,000. Is it better for me to be claiming single0 or ... A: Jennifer, If you claim 0 in allowances they will take the maximum in taxes out. So if you are ...
refiling taxes-forgot to check the box	4/23/2009
Q: On my original taxes, I have 1 dependent of which I didn't check the box 'child qualify for child ... A: Donna, The question should be is : 1) If your child is under 17 at the end of the year, then you ...
out of us employment	4/21/2009
Q: I am considering a position outside of US, can you tell me how does the tax law works for US ... A: Katherine, You would follow the rules listed under IRS form 2553. review some of my past answers. I ...
What is the best way for me to show expenses?	4/20/2009
Q: i live in california. i have a couple questions that i hope you can answer. i work full time as a ... A: Adam, It sounds like something you enjoy doing. You would be able to write off you costs of fixing ...
1099-misc correction	4/16/2009
Q: I had received a 1099-misc from a hospital for monies I received as part of a tuition assistance ... A: Jon, A 1099 is for your information and the IRS, It does not have to be filed with the return. I ...
Repayment of prior years wages.	4/13/2009
Q: I an a NJ resident and was overpaid GROSS wages of $5000 total...(in 2007=$4000 and 2008=$1000). ... A: Michael, I read that sections and it references taking a deduction as a miscel itemized deduction. ...
estimated taxes	4/12/2009
Q: I need to pay estimated taxes. H&R Block gave me an information packet on estimated taxes, and it ... A: John, A 1041 is for an estate or trust. They may have gave you wrong forms. If this is for ...
Claiming interest income as nominee	4/11/2009
Q: I am currently legally separated and both husb and wife have joint bank accounts that were earning ... A: Steven, You are reading too much into the reporting. You have to report the 1099 on your tax return ...
Online Video Contest Winnings	4/9/2009
Q: my name is Sean and I have entered an online video contest for Careerbuilder.com, my video has made ... A: Sean, Don't count your chickens...oh you already know that. As to the winnings, it sounds like you ...
Repayment of prior years wages.	4/8/2009
Q: I an a NJ resident and was overpaid GROSS wages of $5000 total...(in 2007=$4000 and 2008=$1000). ... A: Michael, I have no idea what you are talking about. Someone overpaid you wages and now you think ...
pension	4/8/2009
Q: my mother passes away in august 2008 and she recieved a pension from the 1199 for 2002-2008. i was ... A: Tabatha, This is a distribution from a pension plan which is reportable on ,page one of the IRS ...
non compete & director's fee income income	4/7/2009
Q: how is non compete income taxed & is it subject to self employment tax. are director's fees subject ... A: Pat, Paying on a non comp agreement is usually treated as ordinary income . You would most likely ...
TAX FILLING?	4/7/2009
Q: . I've an international LLC. I'm from Argentina, I'm not a US citizen and I created an LLC in the ... A: Ignacio, If you created an LLC in Delaware, then a filing fee is required for Delaware. The Federal ...
capitol gains	4/6/2009
Q: My mother put all of her belongings into a trust. She passed away in Sept., 2008. My brothers and ... A: Clay, Since your mom passed away in September 2008, you would receive a stepped up basis on the ...
Schedule K-1	4/5/2009
Q: I receive a K-1 for myself and another for my daughter. The money that is distributed to her is ... A: Rebekah, If a K-1 is prepared, then information is being reported to the IRS . You need to file a ...
Per-diem tax	4/4/2009
Q: I work for a temp. agency in the medical field. I get a daily paycheck. My company taxes me at ... A: Rodney, No. They will take taxes out based upon what you put down as allowances on your W-4. Hope ...
1099-C	4/4/2009
Q: In Feb. 2008, we called Diamond Resorts and asked if they would take back our timeshare in exchange ... A: Helen, If you received a 1099-C, you would offset the FMV against the debt. This would mean that ...
673 tax form	4/3/2009
Q: I have been over in Afghanistan since May last year and its my first time doing taxes from overseas. ... A: Terrence, If you work as a contractor, then you may qualify for the exclsuion to be reported on IRS ...
1099-MISC - Self employment for a preceptorship stipend?	4/3/2009
Q: My husband is a medical student and in 2008 participated in a 3-week preceptorship where he shadowed ... A: I agree. You can show this as a stipend under other income. As long as the income is not reported ...
Partnership and Stock sale	4/2/2009
Q: I've living the schedule K nightmare at the moment. I used to own shares of stock in a limited ... A: Todd, if the broker sent you a 1099 and that is the same amount as what the K-1 says, then it begs ...
DIVIDENDS ON CD	4/2/2009
Q: We received a $24,000 check for DIVIDENDS from a matured CD belonging to my mother-in-law. The ... A: Janice, CD's as far as I know give interest and not dividends. The interest is subject to income ...
What if my deceased mother didn't file last year?	4/1/2009
Q: Glen, My mother just passed away February 2009 and my brother and I need to file her taxed for 2008. ... A: Jennifer, If your mother had a will, and you are considered either the executrix (you) or executor ...
Claiming Schedule E losses	3/31/2009
Q: I had a $10K loss on my rental property this year. My modified AGI is $145K. My fed tax SW says I ... A: Chris, If the 10K loss is from rental, is it 100 percent rental? If not and you have mortgage ...
Form 1041	3/29/2009
Q: My father passed away in April 2008. I am completing the initial Form 1041 and related K-1s for ... A: Paula, I would say that you need to complete the form using tax software to see how it flows. The ...
S-Corp termination of Sheareholder Interest	3/29/2009
Q: I onw 50% of an S-corp. I have 2 partners that both hold the balance of shares. They both agreed to ... A: Skro, I would just show that you purchased them back for $1. Their share of S corp earnings/loss ...
Education	3/28/2009
Q: Sallie Mae pays my school for me to go to school. Which is basically a loan. I have not graduated ... A: Brandy, I believe the form you have is IRS form 1098-T . Your preparer will use this information to ...
gift taxes	3/28/2009
Q: I recently sold a house I owned to my daughter and son-in-law. The appraised value was $130,000. I ... A: Jaycee, You and your wife can do a split gift of $26,000 per year. The difference between the ...
Proceeds - charity auction	3/27/2009
Q: I donated a painting (a gift to me) that was auctioned for charity - received half of the $2000 ... A: Bill, If you receive the $2,000 from the sale at the auction. you can choose to consider it as a ...
Proceeds - charity auction	3/26/2009
Q: I donated a painting (a gift to me) that was auctioned for charity - received half of the $2000 ... A: Bill, If you sell a painting, then you have a personal gain. If you are in the business, then you ...
Class Action Distribution	3/26/2009
Q: Received 3 checks, amounting to $321.26 from a class action distribution fund ($104.99 for advisory ... A: Nancy, The $104,99 would be used on line 21 of 1040 (page 1) other income. If you have other ...
1099	3/24/2009
Q: I recently started a property management company and I am an LLC. The property owners sent me a ... A: Peg, Thank you for your question. If the property owners pay you over $600 in s given year, then ...
recently seperated	3/24/2009
Q: My wife and I split in feb 09. she only worked for about a month all year in 08. I worked all year ... A: David, If you file and try to claim the child you and your wife will receive a letter and you and ...
benefits of donating a house to charity?	3/23/2009
Q: I bought a house 7 months ago, and am now relocating with my job to another state. I don't want to ... A: Roger, You would be donating appreciated property. You would donate and get a deduction based upon ...
How do I amend 2007 on Stock Taxes lost	3/23/2009
Q: My husband and I filed for 2007 taxes and received a notification regarding securities that were ... A: Kelley, I have done a lot of these amended returns whereby stock proceeds were reported to IRS and ...
1041 by pass trust question	3/23/2009
Q: I have a client who is the 100% Income beneficiary of a credit shelter trust. 100% of family owned ... A: William, It may be reaching,m but she may be able to avail herself as a shareholder of 1244 small ...
school	3/22/2009
Q: Can pre-kindergarten tuition be used as a tax break. A: If the care for the child is just for watching the child and not education then it can be considered ...
Inheriting property in a foreign country	3/21/2009
Q: When my mother died, my father remarried, moved to Ireland and bought a house. He eventually died ... A: Owning property is not a taxable event. Having an interest in a bank account overseas is reportable ...
1099-MISC Confusion	3/21/2009
Q: I'm a full-time college student, and filing my taxes on my own first time. I received $1000 as a ... A: Karen , You are on the right track. If you receive a stipend and it goes directly to the school ...
early withdrawal 401k	3/19/2009
Q: I elected to have taxes taken before i recived the money.the taxable amount was 18,091.72 i recieved ... A: Rick, If you are under 59 1/2 and do not meet any exception listed on IRS form 5329 then you are ...
want to claim child when ex already did	3/18/2009
Q: According to my husband's divorce decree, he is allowed to claim his son (a 22 full-time student) on ... A: Laurie, As a practical matter, I would suggest preparing a paper return and claiming her. The IRS ...
Seller financing	3/18/2009
Q: I sold my home last year(2008) and provided seller financing. I am still making payments to a ... A: Joseph, If you sold the home, then the debt should have gone away. If not then you agreed to ...
IRS Filing Status	3/17/2009
Q: I am divorced with the custody of two children who live with me all year. My ex husband pays child ... A: Emiko, Since the children live with you, you can claim head of household status, but not the ...
Non-Resident taxes	3/15/2009
Q: I am here on a student visa. While I went to college I was also working. I didn't realize that I ... A: Alex, If you filed a 1040, then you made an election to be treated as a resident. All your ...
Schedule K-1	3/14/2009
Q: I am having trouble determining where to include Box 1 of a Schedule K-1 I received from a publicly ... A: Jonathan, Thank you for your question. If the loss is passive, then it first needs to be reported ...
LLC Loan	3/14/2009
Q: I am preparing the taxes for my LLC. We are a small LLC with only 2 members and one rental ... A: Erica, Thank you for your question. Is his father buying out his interest in the LLC? If he is ...
Are securities that are inherited taxable under Federal Law?	3/14/2009
Q: My husband's mother died in Jan. 07, with a will. She left a very small estate -- around $60,000 in ... A: Corrine, The IRS is reporting the gross proceeds you received. They do not know your cost basis on ...
Form 8332	3/12/2009
Q: My ex-wife has never signed the IRS Form 8332, but I have been claiming my daughter for the past 4 ... A: Robert, This year it is a requirement. In the past it was a requirement, but not totally ...
EE Savings Bond Exclusion/Hope Credit	3/11/2009
Q: I am using HR Block TAX Cut. Had no problem completing corporate taxes for business but the ... A: Tina, Thank you for your question. 1) When you redeemed your bonds and got $1016.32, the interest ...
1099 misc	3/9/2009
Q: I am new at this and have filled out 1099 misc on 2 people. What form do I need to mail to the IRS ... A: Trudy, Thank you for your question. The IRS 1096 needs to be prepared and filed with IRS. This is ...
1098-t	3/8/2009
Q: I had a question about the 1098-t. The online university that I am attending did not send me a ... A: Ryan, Thank you for your question. Their explanation sounds silly. It is the law. They choose not ...
tax question	3/7/2009
Q: I have a savings account that I often transfer money from my checking to that savings. I also ... A: Adriana, Thank you for your question. If the cash you deposit is other then money from W-2 wages, ...
do I have to pay estimated taxes	3/7/2009
Q: I just finished filing my 2008 taxes using turbotax and it automatically printed out vouchers for ... A: Debra, Thank you for your question. The estimate set up is what they refer to as a protective ...
state tax filing	3/5/2009
Q: My wife and I live in Richmond, IN. I am unemployed. My wife worked the entire year in Eaton,OH. My ... A: Stan, I would say that since you live in IN, then you report all income to IN. You would file a ...
sale of rental property	3/5/2009
Q: We purchased a rental property for 55,000 in 2005. In 2006 we did a buyowner sale of the property ... A: Judy, Thank you for your question. I do not understand your term "buyowner". If you rented your ...
How To Report Investment Loss	3/4/2009
Q: I had an investment during 2008, that was paying 5% interest a month. In mid November, 2008, the ... A: John, Thank you for your question. 1)If you invested $50,000 and withdrew $50,000 then you did not ...
1099a	3/4/2009
Q: I filed Chapter 7 BK(Final in Aug of 08). I lost an investment house to foreclosure. I received a ... A: Damon, Thank you for your question. If this is investment property, then you would had a mortgage ...
17 year old dependents earnings	3/3/2009
Q: Do I have to claim my 17 year old son's $2009.61 in earnings for 2008 on my Federal Income Tax for ... A: Paul, Thank you for your question. 1)Do I have to claim my 17 year old son's $2009.61 in earnings ...
gifting cash	3/1/2009
Q: i want to pay off my sons house. he owes @ 80k. what are the tax implications if i do. A: Dave, Thank you for your question. You can gift up to $12,000 per year for your son. If you are ...
Residential Rental Tax Deductions	3/1/2009
Q: Glenn, Reference: Residential Rental Expense Deductions for 2008 Federal Income Tax. Accepting a ... A: Jim, Thank you for your question. 1)can we deduct the rental expenses on our federal income tax ...
form 673 tax question	3/1/2009
Q: This is the story, I have been overseas since August and I already filed form 673 and it withheld ... A: Dan, Thank you for your question. Judging from what you are saying, you are claiming the foreign ...
CD's	2/28/2009
Q: Do I have to pay income tax on a matured CD if I want to put the money in a money market account? ... A: Pat, Thank you for your question. 1)Do I have to pay income tax on a matured CD if I want to put ...
casualty gain	2/28/2009
Q: We had a house fire in 2008. The insurance proceeds for the house exceed our basis. The property ... A: Andrea, Thank you for your question. As a practical matter . I would not list all 1330 items. I ...
paying taxes for odd jobs	2/27/2009
Q: I was wondering the minimum amount of money you can make in a year before you have to claim taxes? ... A: Debbie, Thank you for your question. You do not have to pay income taxes as long as your income ...
Student Filing	2/26/2009
Q: I have a quick question. I am not sure whether or not I am required to file taxes. I am an ... A: Tom, Thank you for your follow up. If you used the money for personal expenses, then it would be ...
tax options for mba	2/26/2009
Q: I am part owner of an s-corp (~20% of company). I would like to get an MBA, which is about $40K. I ... A: Dan, Thank you for your question. As a 20 percent shareholder, this expense would not be ...
Student Filing	2/25/2009
Q: I have a quick question. I am not sure whether or not I am required to file taxes. I am an ... A: Chris, Thank you for your questions. You have a number of issues here. 1) The private scholarship ...
Child credit	2/25/2009
Q: Can my husband and I file married but filing separate so I can claim the child tax credit, I earn ... A: Susan, Thank you for your question. You should file married filing jointly. The credit is based ...
Husband back child support	2/24/2009
Q: I wanted to know if my taxes can be garnished for my husbands back child support. He is not the head ... A: Marie, Thank you for your question. According to IRS you can file am injured spouse form: If you ...
an error on my 1099-MISC	2/24/2009
Q: in 2008 i worked from feb to march at this place. i quit in middle of march to another job. i ... A: Gloria, Thank you for your question. 1)should i just go ahead and file despite the error? As a ...
Partial Roof Replacement on Rental Property	2/23/2009
Q: My husband and I have recently had our roof replaced on our rental property. A couple years ago we ... A: Carol, Thank you for your question. 1)We are claiming our property as a depreciation, but is the ...
Mortgage Interest	2/22/2009
Q: I owned a home during the last several years in North Carolina with a friend. I made half of the ... A: Charles, Thank you for your follow up question. 1)Should I report this income interest on my tax ...
Income Tax	2/22/2009
Q: My father in law died and I believe he had not paid income tax on his pension for several years. Am ... A: Ray, Thank you for your question. 1)Am I or my wife liable for his taxes? When your father in law ...
Tax for dependent	2/21/2009
Q: In 2008 our oldest daughter worked a part time job and earned $4900. She turned 18 in August 2008. ... A: John, Thank you for your question. 1)Our question is, should we include her 2008 earnings to our ...
Mortgage Interest	2/20/2009
Q: I owned a home during the last several years in North Carolina with a friend. I made half of the ... A: Charles, Thank you for your question. 1)Am I better off not claiming any mortgage interest in the ...
1099-MISC	2/20/2009
Q: We received a 1099-MISC 2 copies one stated to be filed with you state income tax return and the ... A: Janice, Thank you for your question. 1)Don't we need one to be filed with our federal income tax ...
Business Miles	2/20/2009
Q: I work as a salesman for a company whose office is about 40 miles round trip from my home but never ... A: Tom, Thank you for your question. 1)Since I do not have a company office and can only do the work ...
Interest earned in Business checking account	2/19/2009
Q: I have a S-Corporation, and plan to open a business checking account in my bank. The bank personnel ... A: Eric, Thank you for your question. 1)Where (which form,schedule,line) to report the amount of ...
Traditional IRA/Federal income tax	2/18/2009
Q: I am filing my Federal income taxes using TurboTax Premier online. I am working in the traditional ... A: Ernest, Thank you for your question. 1)Please tell me why I have to report my remaining ...
UTMA Liquidation	2/18/2009
Q: I cashed out my sons UTMA account (just under $5000 and dropping fast) last year to pay for a high ... A: Kris, Thank you for your question. 1)How do I determine if there was a gain or not, and if there ...
Estate Tax	2/18/2009
Q: My grandfather had a life estate and he died in the spring. The lawyers took months to get the ... A: Diana, Thank you for your question. Yes doing 6 days from 9AM to 8PM and the weekends 7AM to 5 PM ...
Child's Social Security - Report or NO	2/17/2009
Q: My son and I get Social Security Benefits because my husband died. I received two Social Security ... A: Missy, Thank you for your question. 1)but do I report my son's too? This is a common misnomer. ...
Roth IRA and taxes	2/16/2009
Q: I opened a Roth IRA in 2008 and closed it a short time later. It did not earn any interest or have ... A: Rafi, Thank you for your question. IF you prepare your 1040X, the numbers as originally filed and ...
Federal Tax Withholdings from employer	2/15/2009
Q: I worked approx 150 hours for an employer in 2008 filling in as a temporary licensed dental ... A: Todd, Thank you for your follow up question. 1) The IRS will not force the employer to pay your ...
Child Support Arrearge Dependent exemption	2/15/2009
Q: The child support court order stipulates that I am obligated to provide $400.00 in child support ... A: Richard, Thank you for your question. 1)Can I use the Court's order to claim the child as my ...
dependants	2/14/2009
Q: My fiancee and I have lived together for over a year. Can we file a joint return, or can he claim us ... A: Shari, Thank you for your question. 1)Can we file a joint return, or can he claim us as dependents ...
Federal Tax Withholdings from employer	2/14/2009
Q: I worked approx 150 hours for an employer in 2008 filling in as a temporary licensed dental ... A: Todd, Thank you for your question. 1)Please advise??? This is very interesting. If the employer ...
eic	2/12/2009
Q: i live with my girlfriend and we have achild together but i made just over the allotted amount for ... A: Nick, Thank you for your question. 1)can she then claim it if i cant. If she has income and she ...
Claim perdiem for out of town work over 12 months	2/12/2009
Q: I own a home in Central California, where my wife works and my daughter goes to school. I have ... A: Terry, Thank you for your question. I would say as long as the traveling is for less then a year, ...
Deductions for 1099-Misc Income	2/11/2009
Q: I worked as a consultant for a company during 2008 and received a 1099-MISC for non-employee income ... A: K, Thank you for your question. You would report this income on a Form 1040 Schedule C and SE. You ...
A Few Quick Questions	2/11/2009
Q: I am trying to do my taxes manually this year. I have a few quick questions about which forms I ... A: Joni King, Thank you for your question. 1)If I am have college tuition that I paid this year, what ...
Re: Inaccurate 1099	2/11/2009
Q: I worked for a business owner of a company in 2008 as an independent contractor and she has my 1099 ... A: Elaine, Thank you for your question. I read you story and find that the representative that you ...
Stress Relief	2/10/2009
Q: I am a police officer and heard several co-workers talking about "writing off" up to $2000.00 worth ... A: Nathan, Thank you for your question. 1)Does such a deduction exist? No, I believe someone is being ...
1099 and w-2	2/10/2009
Q: My girlfriend has most of her income in 1099-misc but also made around 9000 that was taxed and ... A: James, Thank you for your question. 1)Can she file two separate returns because she bought a ...
Tax question	2/10/2009
Q: I received a 1099a this year after loosing my home in 2008 to forecloseure. I was served, I ... A: Randy, Thank you for your question. If you received an IRS form 1099-A. you need to complete IRS ...
do you have to give out ss#	2/10/2009
Q: i used to repo cars for a woman who refused to do any type of paper on me. ie.. job application, ... A: Mary, Thank you for your question. 1)do i have to give her my ss#? since she would not take it ...
Rental Depreciation	2/10/2009
Q: I have a primary residence that I turned into a rental in 2003. Since I have rented the property out ... A: Randy, Thank you for your question. 1)1. Do I have to depreciate the property? Yes, Once you ...
Rental Property	2/9/2009
Q: I bought a new house two years ago and began renting my old house. The pool at my rental property ... A: Jim. Thank you for your question. 1)Can I expense the loss of the pool on Schedule E? No. I ...
Per Diem and Travel Expense write-offs	2/9/2009
Q: My husband and I live in Colorado and he travels to Alaska for work. Are we able to write-off the ... A: Amanda, Thank you for your question. 1)Are we able to write-off the plane tickets and hotel rooms ...
what if i messed up...????	2/9/2009
Q: I was doing my taxes on TurboTax and e-filed them. After filing them, I noticed something I forgot ... A: Shelby, Thank you for your question. 1)Is there a way to fix it before the government accepts/does ...
roth,iraeducational	2/8/2009
Q: My son opened 2 accounts. roth with 5,000,closed same year withdrawaling 4119. Educational tutition ... A: Shelly, Thank you for your question. I would suggest that you wait until you receive the ...
First time home buyer tax credit	2/8/2009
Q: I'm trying to understand the existing $7500, or hopefully to be passed $15k home buyer federal tax ... A: Jon, Thank you for your question. 1)Will the new tax credit of 15K, make my tax return 17K? (15K ...
Base salary Vs Bonus tax implication	2/8/2009
Q: Schnabel, I am negotiating a compensation salary with my new Employer. They offered me $100000 ... A: Johnny, Thank you for your question. 1)For the purpose of paying less taxes (witholdings); is it ...
Bad Debt	2/7/2009
Q: My husband is commission salesman. Last year he had to pay back $5500 from an account that did not ... A: Sandy, Thank you for your question. 1)Can we deduct the amount? Yes. If your husband receives a ...
Money inherited from C.D.	2/7/2009
Q: Father in-law passed away. The family closed out several C.D.'s and divided the money equally. Is ... A: Dan, Thank you for your question. 1)Is this considered income that is subject to taxes. If yes how ...
Education Credit	2/6/2009
Q: I graduated last May and I did not receive a tax form from the college. I was told it is because my ... A: Sarah, Thank you for your question. 1)Am I able to claim this legally in 2008 since the payment ...
401k rollover	2/6/2009
Q: i rolled over a 401k last year. it WAS NOT a wire transfer. They insisted on this method. The ... A: Chip, Thank you for your question. 1)What documentation do I need to prove I rolled this over ...
IRA tax	2/5/2009
Q: I started depositing 50.00 a month in a IRA. I did this for 8 years. Adding up to 600 a year = about ... A: Mike, Thank you for your question. 1)Do I have to pay 10% of all my ira? If you made an IRA ...
tax on cashed out stock	2/5/2009
Q: In 2008, I cashed out some employee purchased stock and stock option. Can I expect some additional ... A: Glen, Thank you for your question. Usually when you deal with sales of stocks and stock options ...
401K	2/5/2009
Q: I forgot to add a 401K withdrawal from 2008 on my tax return and have already filed. What can I do? ... A: Michael, Thank you for your question. 1)What can I do? Once you file the return, you need to ...
IRS pin number	2/5/2009
Q: Last year my father filed my faxes as a dependent since I was still living with him. Now he and I ... A: Sabrina, Thank you for your question. 1)what do I do? I do not understand what you mean by pin. ...
claiming SSDI income	2/4/2009
Q: I received SSDI for the months of Sept. through Dec. in 2008 due to kidney failure. I worked up ... A: Michelle, Thank you for your question. 1)Do I claim my SSDI income? If so, how do I go about ...
Early withdrawal of 401K	2/4/2009
Q: In January, 2009 I took an early withdrawal from my 401K. I know I am subject to a 10% penalty as ... A: Dawn, Thank you for your question. 1) I need to know if the payment of my penalty can wait until I ...
Canadian on TN Visa in the States	2/4/2009
Q: We are sorry, but John Stancil, CPA wasn't able to answer yourI am a Canadian citizen who is working ... A: Richard, Thank you for your question. 1)For tax purposes: do I qualify as a non-resident or as a ...
Settlement from a car accident in the state of GA	2/4/2009
Q: I received a settlement of $5400 in 2008 for car accident I had in 2004. I live in the state of Ga, ... A: Celeste, Thank you for your question. 1)I am wondering if I have to claim this settlement as ...
1099 B	2/3/2009
Q: I sold some company stock from my ESOP account last year because my company was sold to a larger ... A: Steve, Thank you for your question. 1) I have heard that there is exceptions to the short term ...
bankruptsy and taxes	2/3/2009
Q: I filed backruptsy in 2008 and also lost my house in foreclosure. I recieved both 1099a and 1099c. I ... A: Robert, Thank you for your question. 1)I am interested on what forms I need to file for taxes. If ...
1041 Estate Tax Return	2/3/2009
Q: I am the administrator for my widowed aunt's estate. She died in March of 2008. Her assets ... A: Tanya, Thank you for your question. 1)Am I correct in my understanding that I must ask each bank ...
1099-S Pay As Cut Timber	2/2/2009
Q: I received a 1099-S for Pay-As-Cut Timber for trees cut down that were in the town roads right of ... A: Karen, Thank you for your question. 1) Is this how it should be entered and does the amount sound ...
Land Contract	2/2/2009
Q: My friend entered into a land contract June 2007. We had to back out of th econtract in September ... A: Michelle, Thank you for your question. 1)would like to know if there is any way that he can deduct ...
Carry over loss	2/2/2009
Q: I owned a business that went out of business, it was an LLC i was a single owner, anyway I had over ... A: Scott, Thank you for your question. 1)but I think I am able to carry over the loss for a couple of ...
Re-payment of unearned vacation pay	2/2/2009
Q: In 2007 I left the postal service. I had originally put in for vacation the week after I left, and ... A: Ed, Thank you for your question. 1)However I'm not sure how to account for this. If in 2007, ...
sold land	2/2/2009
Q: My mother (who is deceased) had some land that was left to her and her siblings. That land was sold ... A: Shannon, Thank you for your question . 1)Do we have to claim it on our taxes? Yes each ...
taxes on un-matured C D	2/1/2009
Q: Should a bank send a 1099 INT on an un-matured certificate of deposit? A: Lee, Thank you for your question. 1)Should a bank send a 1099 INT on an un-matured certificate of ...
1099	1/31/2009
Q: My 15 year old daughter works at a cafe' and she got a 1099. how much does she have to earn before ... A: Lynn, Thank you for your question. 1)ow much does she have to earn before she has to pay taxes on ...
7500 tax credit	1/31/2009
Q: my husband purchased a home in July of 2006 and we just rented it out June of 2008 and purchased a ... A: Dayna, Thank you for your question. 1)are we eligible for the 7500 tax credit because i read on ...
Reporting sale of inherited house	1/31/2009
Q: I inherited and sold in 2008 my mother's home at a loss. I tried Schedule D but that doesn't seem to ... A: Barbara, Thank you for your question. 1)What form do I use? That would be on IRS form 1040 ...
Mortgage Interest Statement	1/31/2009
Q: Glenn, I purchased a home in 2008 and received my 1098 recently. In box 2, the amount listed is 0. ... A: Will, Thank you for your question. 1) Can I expect a 1098 from UMAC and whether the points paid ...
<50% Employer Paid Insurance Premiums	1/31/2009
Q: I would like to use the HCTC credit on my Income Tax Return as I suspect my employer pays less than ... A: Karen, Thank you for your question. 1)How do I go about finding out what % of the total Premium ...
12 hour shifts	1/30/2009
Q: Is it true that if you work a shift longer than 10 hours you can claim $14 a day for every day ... A: Renee, Thank you for your question. 1)Is it true that if you work a shift longer than 10 hours you ...
automobile sales tax deduction	1/30/2009
Q: Schnabel. I live in Illinois. Can I deduct my sales tax from either my federal or state income ... A: Leo, Thank you for your question. 1)Can I deduct my sales tax from either my federal or state ...
TAX	1/30/2009
Q: I'm starting a business online. I'm in the building the website process. At what point can I start ... A: Al, Thank you for your question. 1)At what point can I start using any and all expenses for the ...
tax law	1/30/2009
Q: if i live in a apartment and going to start a Internet business can i claim part of the rent ,heat ... A: Greg, Thank you for your question. 1)can i claim part of the rent ,heat etc. If you want to ...
Stimulus Rebate Check	1/29/2009
Q: I am so confused on the rebate check we received last year. When I do my taxed from the free turbo ... A: Carol, Thank you for your follow up question. 1)Do we claim it or not? Do you pick it up as income ...
Student Loan Interest Deduction	1/29/2009
Q: I am paying for my son's college education. He recently received form 1098-E showing interest paid ... A: Jeff, Thank you for your question. 1)Is there a way for me to claim the interest deduction on a ...
Stimulus Rebate Check	1/29/2009
Q: I am so confused on the rebate check we received last year. When I do my taxed from the free turbo ... A: Carol, Thank you for your question. 1)I put in 1500, I was getting back 3015 back and when I ...
gift as deduction	1/28/2009
Q: My daghter graduated form college I wanted to give her a car as a gift for doing so. we bought the ... A: Tim, Thank you for your question. 1)I want to know if I can write off the total of 7,900.00 per ...
Form1099-A	1/28/2009
Q: I received a 1099-A Form and it states that the principal outstanding is $70,111.69 and fair market ... A: Sara, Thank you for your question. 1)How does this effect my taxes? You should receive an IRS ...
contract work	1/27/2009
Q: I am looking to do temporary contract mortgage loan processing for a bank, they will issue me a ... A: Kimber, Thank you for your question. 1)they will issue me a 1099: how does this work?, as to what ...
filing	1/27/2009
Q: I am a hairstylist working presently for a salon that pays me a commission every day and does not ... A: Frank, Thank you for your question. 1)How do I file next year and is there a form to estimate my ...
SEC settlement with Janus Capital	1/27/2009
Q: During September,2008, I received a distribution check from the Janus Fair Fund Administrator ... A: John, Thank you for your question. 1)Is it considered a withdrawal from the IRA? I would say that ...
Life Estate/ Capital Gains	1/27/2009
Q: Schnabel Upon my husbands father's death in 1958, title to his property was deeded as a life estate ... A: Barb, Thank you for your question. 1)I have done some research and everything I read states that ...
child exemptions	1/26/2009
Q: I have a 17yr old that is a full time student(highschool) and doesn't work..I was told by a fellow ... A: Dawn, Thank you for your question. 1).I was told by a fellow co-worker that i could no longer ...
Filing Status: U.S. Citizen with Non-Resident Alien spouse	1/26/2009
Q: I am a U.S. Citizen. My wife is a Non-Resident Alien and is not required to file. Can I file as ... A: Mark, Thank you for your question. 1)Can I file as "Single", or must I file as "Married filing ...
Deductible?	1/25/2009
Q: If you can give me your opinion or some go to direction it would be appreciated. We provided ... A: Jerry, Thank you for your question. 1)Is this expense somehow deductible? If you intended to ...
taxes	1/25/2009
Q: I got a paper in the mail that says i may qualify for an Unearned credit.What is an unearned credit A: Beth, Thank you for your question. If you are a single mom and have a dependent child under 17, ...
monthly rental that is business related	1/25/2009
Q: Glenn: My wife and I both work at a University that is located 65 miles from our residence. Is it ... A: Dudley, Thank you for your question. 1)Is it possible to gain a tax advantage by renting a home in ...
Contract Work	1/25/2009
Q: In the middle of 2008, I did some contract work for 2 months. I made $6,000 without any taxes being ... A: Lucca, Thank you for your question. 1), in order to off-set what I would owe? I'm not looking to ...
my mother wants to claim me	1/25/2009
Q: i work on my own and buy my own things and my mother wants to claim me i'm 19 and go to school,if ... A: Krystal, Thank you for your question. 1)if she was to claim me would that affect how much i get ...
Early Withdrawal of Retirement Plans	1/24/2009
Q: Wondering if there are any tax exemptions for pulling out early from a retirement plan that my wife ... A: Andy, Thank you for your question. 1) Is there any of this that would be able to be tax excempt. ...
personal income taxes filing	1/24/2009
Q: I was contracted to work for a company that did not pay me the last month on the contract due to the ... A: D.C., Thank you for your question. 1)Can this be counted as a loss on my taxes somehow? No. If ...
1099C	1/24/2009
Q: My child attended a residential home for troubled teens two years ago. She graduated from the ... A: Jill, Thank you for your question. 1)What this issued appropriately and do I need to include it as ...
about taxes	1/24/2009
Q: My wife and I married in 2007. She did not turn 18 till this past september. will i still get to ... A: Brandon, Thank you for your question. 1)will i still get to claim her as a child for this year? ...
capital gains/loss	1/23/2009
Q: but still own part, how do you figure what would be the gain? Thanks A: Waneta, Thank you for your question. 1)how do you know what person is of the marginal tax ...
Adult dependent	1/23/2009
Q: My son was in the military for the first four months of 2008. Since then he was discharged early ... A: Jerry, Thank you for your question. 1)Can I claim him as a dependent on my joint return with my ...
Claim little brother if he lives in another state?	1/23/2009
Q: I was wondering if it's possible to claim my little brother? He's current attending a University out ... A: Anthony, Thank you for your question. If your little brother is under 24 and a full time student, ...
taxes on the fiftydollarhouse prize	1/23/2009
Q: I also bought a ticket for the $50 House raffle and am wondering what you mean by refinancing the ... A: Jennifer. Thank you for your question. 1)am wondering what you mean by refinancing the prize home ...
cost basis determination	1/23/2009
Q: (1) took out loan to start building home April 2007, home completed in October 2007, home sold ... A: Mark, Thank you for your question. 1)s this a long or short-term loss. From Oct 2007 to August ...
Capital gains/rental property	1/22/2009
Q: Have the capital gains for rental property changed. Can you no longer move into a rental property ... A: Sandy, Thank you for your question. 1)Can you no longer move into a rental property for 2 out of ...
HSA investment - loss of principle	1/22/2009
Q: At work, we have an HSA account that allows us to invest in Dreyfus mutual funds. Now the HSA ... A: Eric, Thank you for your question. 1)Can we deduct this loss from our taxes as with any other ...
Company Vehicle	1/21/2009
Q: I am a service technician for a large corporation. The company indicates that I am not paid for my ... A: Kevin, Thank you for your follow up. If you can take the first trip from home to the first stop and ...
7500 credit	1/21/2009
Q: My wife and I just bought a house. We close on the house on Jan. 30th (20090 Can we still get the ... A: Anthony, Thank you for your question. 1)Can we still get the 7500 credit for our 2008 tax ...
dependent and filing status	1/20/2009
Q: My husband and I pay about $1000.00 a month for my fathers nursing home rent because he doesn't draw ... A: Phyllis, Thank you for your question. 1) Can we claim him as our dependent and if so, which filing ...
disability tax question	1/20/2009
Q: I am on disability and my son gets a check also. Can you file taxes for a dependent if your on ... A: Sandy, Thank you for your question. If you are collecting disability payments and you meet the ...
property	1/20/2009
Q: Schnabel I own a home in NC and bought a home in FL with my best friend. We are on the deed as ... A: Jason, Thank you for your question. 1)but how do we do the house in FL? 50/50 on the mortgage ...
330 Day Physical Presence Rule	1/20/2009
Q: I have a friend who is working for a contractor in Iraq. He went over there approximately the first ... A: Carl, Thank you for your question. 1)Please explain the 330 day physical presence rule and how it ...
Moving Expenses	1/19/2009
Q: I was relocated by my company from the west coast to the east coast. They reimbursed me for all my ... A: Duane, Thank you for your question. 1)Do I get to deduct the moving expenses that were reimbursed ...
mileage deduction	1/19/2009
Q: If you commute from college to work, is the mileage deductible? A: Tammy, Thank you for your question. 1)If you commute from college to work, is the mileage ...
do i need to file or how do i file for 2008?	1/19/2009
Q: on jan 1, 2008 i had a stroke, causing my self ran/owned business to end and now i collect federal ... A: Jassen, Thank you for your question. 1)do i have to file? If you made more than $8,950 and are ...
deductions for non-dependents	1/18/2009
Q: can I claim any deductions if I live with my ex-wife and help pay expenses for our 2 children. In ... A: jon, Thank you for your question. 1)can I claim any deductions if I live with my ex-wife and help ...
sold property that i inherited	1/18/2009
Q: I inherited 19 acres of land along with my brother from my parents when they passed away. We swore ... A: Ella, Thank you for your question. 1)what do i need to do my taxes this year. You need to find ...
Investment/second home tax	1/18/2009
Q: I have an investment home I purchased in April of 2008. My plan is sell this home after April 2009 ... A: Mike, Thank you for your question. 1)My main issue is whether I can apply the applicable closing ...
Tax Return and Investments	1/18/2009
Q: I have a few basic questions about filing my taxes and investing: 1) I bought some ETFs and Mutual ... A: Asad, Thank you for your question. 1)Can I deduct this on my tax return? You can only deduct ...
Real Estate Taxes	1/17/2009
Q: I have a question about deducting real estate taxes on Schedule A - Itemized Deductions (line 6). ... A: Eric, Thank you for your question. 1)can these real estate taxes be deducted or can only the real ...
writing off mileage	1/17/2009
Q: I live in Springfield, MO and drive twice a week to teach in Joplin, MO (150 miles roundtrip). I'm ... A: Randall, Thank you for your question. 1) Does a W-2 prohibit writing off mileage? No . As long as ...
1099g	1/17/2009
Q: can i file my federal taxes before i receive my 1099g for unemployment compensation. I had no taxes ... A: Paula, Thank you for your question. 1)can i file my federal taxes before i receive my 1099g for ...
state tax question	1/16/2009
Q: I have been in Korea for a year now, since Jan. 17th of 2008. I know I have to file for federal ... A: Benjamin, Thank you for your follow up. As a practical matter is sounds like you have a domicile in ...
tax year per divorce decree	1/16/2009
Q: divorce decree states "father to claim child on even numbered years and mother on odd" The mother ... A: Jen, Thank you for the question. The mother is a funny lady. I guess she want to violate a divorce ...
Taxes	1/16/2009
Q: How long does someone have to live with you to be able to use them as dependants on your taxes A: Rebecca, Thank you for your question. 1)How long does someone have to live with you to be able to ...
foreign income	1/15/2009
Q: My daughter worked in the U.S. the first 3 months of 2008 and in Ireland the last 9 months of 2008 ... A: Dennis, Thank you for your question. 1)The bottom lineWill she be taxed by the U.S. for all her ...
Dependent/Child Care	1/15/2009
Q: My son, his girlfriend and their son resided together the entire year of 2008. They have recently ... A: Sheila, Thank you for your question. If the child stays with the girlfriend for the year , then ...
Fire	1/15/2009
Q: We rented an apartment last year. We did not have any renters insurance. The apartment building ... A: Linda, Thank you for your question. 1)Will we get any type of tax credit for the fire when we file ...
72t	1/15/2009
Q: Do the 2009 IRA suspension rules cover 72t distributions? May this be covered in a technical ... A: Neal, Thank you for your question 1)Do the 2009 IRA suspension rules cover 72t distributions? May ...
Real Estate taxes - timeshare	1/14/2009
Q: Included as part of an annual maintenance fee that is paid, are an allocation of Real Estate taxes ... A: David, Thank you for your follow up question. If you know that real estate taxes is part of your ...
Meal Allowance	1/14/2009
Q: Several people have told me about some type of meal allowance offered since I work 24 hrs. Is this ... A: Brett, Thank you for your question. 1)Is this true and if so where can I find information on this ...
state tax question	1/14/2009
Q: I have been in Korea for a year now, since Jan. 17th of 2008. I know I have to file for federal ... A: Benjamin, I just finished with a client who was almost grabbed by NY when he lived in Italy. If you ...
Tax issues when paying for elderly parents rent	1/14/2009
Q: This summer we moved our 86 year old parents out of their falling down home to nice rental unit, ... A: Kim, Thank you for your question. 1)Are their any deductions I can take for these payments? No ...
Divorce	1/13/2009
Q: My ex and I share joint 50/50 custody of the children. No where in our divorce papers does it ... A: Laural, Thank you for your question. 1)so should he claim them this year or does it matter? 1a) I ...
Real Estate taxes - timeshare	1/13/2009
Q: Included as part of an annual maintenance fee that is paid, are an allocation of Real Estate taxes ... A: David, Thank you for your question. 1)Would these be deductible on my personal taxes (1040) Yes ...
Company Vehicle	1/13/2009
Q: I am a service technician for a large corporation. The company indicates that I am not paid for my ... A: Kevin, Thank you for your question. 1). Is there any IRS rules that would prohibit the company ...
Filling Status	1/12/2009
Q: I am married with three children. This will be the first year my wife has not worked. I am wondering ... A: Michael, Thank you for your question. 1)I am wondering can i claim Head of household, or must I ...
Does this constitute income?	1/12/2009
Q: My wife is taking care of her mother in her mother's home in Arizona. An accountant is in control ... A: Wesley, Thank you for your question. 1)This is the only money that is deposited in this account. ...
Divorced but cohabitating with our child	1/11/2009
Q: My wife and I divorced over a year ago but still live together with our daughter. I make about 80% ... A: Michael, 1)Is it illegal for us to file jointly? Yes. That is not an option. You need to be ...
tax exemption	1/11/2009
Q: Tax rules are often very precise. For example, a taxpayer must ordinarily provide “over 50% of ... A: Angeal, Thank you for your question. 1)Why is the threshold “over 50%” as opposed to “50% or more ...
Foreign income of self-employment	1/10/2009
Q: I am a full-time employee of Japanese company in Japan. The company paid part of my salary to my ... A: Robert, Thank you for your question. 1)My question is what counts as the income. If you are a US ...
tax exempt question	1/10/2009
Q: If I am a federal DoD civilian employee and I am deployed to Iraq or Afganastan and will be there ... A: marc, Thank you for your question. 1)can I claim exempt on my tax forms for the upcoming year ...
Mileage to college - Write Off (a little different)	1/10/2009
Q: Excellent answer by Neil Johnson (The Tax Dude®) on 8/30/2007. "If you are making this commute from ... A: Dan, Thank you for your follow up question. Unfortunately, "THe Tax Dude" was not available to ...
Social Security and filing for child credit	1/9/2009
Q: I had been told by a social worker, that even though I do not recieve enough taxable income to file ... A: Lisa, Thank you for your question. 1)Is this true? No one knows until the new administration ...
401k rollover income limit	1/9/2009
Q: In 2009 I understand the modified adjusted gross income (MAGI) for an 401k Roth IRA rollover is ... A: Dave, Thank you for your question. I had to do some research on your questions a bit here. It ...
Claiming step child	1/9/2009
Q: I was wondering if i should claim my step daughter. We are not married but we all live together all ... A: Mike , Thank you for your question. 1)What can i do. There are six criteria for qualified ...
Capitol Losses	1/9/2009
Q: I bought a house in 1987, it was rented out and not my primary residence in 1995, and it was sold in ... A: George, Thank you for your question. 1)and I never claimed that loss in any tax return. can I ...
Filing taxes and my mother filing taxes.	1/8/2009
Q: Can my mother still file me as a dependent even if I file taxes myself?I would file as a single ... A: Alexandria, Thank you for your question. 10Can my mother still file me as a dependent even if I ...
Physical Presence Test	1/8/2009
Q: I left USA on 15 March 2008 for a 2 year employment contract in Sudan. On 19 December 2008, I came ... A: Brenda, Thank you for your question. 1)This puts me over the physical presence test, correct? ...
filing seperate	1/8/2009
Q: my husband and i separated November of 2008. how should we file our taxes. i have three children two ... A: Renae, Thank you for your question. 1)how should we file our taxes You file based upon what your ...
filing status	1/7/2009
Q: For my 2007 return, I filed as head of household. My husband and I were married September 2007, but ... A: Kelly, Thak you for your question. 1) Isn't my filing status correct? At first I said no, but ...
Married In Dec	1/7/2009
Q: I was married in Dec and don't know if I can or should file jointly for 2008. My wife is a student ... A: Justin, Thank you for your question. 1)don't know if I can or should file jointly for 2008. If ...
Social Security taxes	1/7/2009
Q: I currently am 66/ 5 months old. I draw $1650/ MO in SS benefits. I also have a annual IRA ... A: Jud, Thank you for yoru question. If you receive social security benefits, up to 85 percent of ...
minimum taxable income for 2008	1/7/2009
Q: What is the cutoff level for filing taxes? I am single head of household, just myself. My total ... A: Andrea, Thank you for your question. 1) Do I need to file an income tax return? If you make ...
COLLEGE EDUCATION DEDUCTION	1/6/2009
Q: I HAVE EE US SAVINGS BONDS IN MY NAME WITH MY DAUGHTER LISTED AS BENEFICIARY. I WISH TO PAY HER ... A: Rick, Thank you for your question. 1) WILL THE INTEREST EARNED BE TAXED ON MY INCOME? If the ...
Head of Household Status	1/6/2009
Q: The phrase "considered unmarried" is confusing to me. Here is my situation. -Dissolution of ... A: Todd, Thank you for your question. 1)Can I file as Head of Household? If you lived apart from ...
tax exemptions	1/6/2009
Q: I am a contractor currently deployed in Iraq, my company says I can claim exempt after 330 days in ... A: Jay, Thank you for your question. 1) I was wondering how this would affect my tax claim in the ...
I'm 17 and plan to file taxes.	1/5/2009
Q: If I am 17 and I have been working a full year, can I file taxes? A: Alexandria, Thank you for your question. 1)If I am 17 and I have been working a full year, can I ...
Form 3115	1/5/2009
Q: We need help in calculating amounts in section 263(A) for the automatic change in accounting method ... A: Robert, Thank you for your question. I have not done many 263A computations lately. IRS has a ...
earned income	1/5/2009
Q: Are buyouts subject to earned income? I was told that FICA shouldn't have been taken out of my ... A: Eugene, Thank you for your question. 1)Are buyouts subject to earned income? What do you mean by ...
taxation	1/5/2009
Q: Couple have always filed joint taxation for over 20 years. Now that one will have lower income over ... A: Rosa, Thank you for your follow up question. Is $220,000 mortgage interest or just personal loans? ...
Cash gift	1/5/2009
Q: I have received a cash gift from my parents in the amount of 13,000 on Jan 1 which I would like to ... A: William, Thank you for your question. 1)Will depositing this cash into my bank account cout ...
combat zone pay	1/4/2009
Q: I just recently retired from the military and during the process of separating I cashed in my ... A: Manuel, Thank you for your question. 1)Is there a way for me to get that back when I file my taxes ...
child tax credit	1/4/2009
Q: My girlfriend and the father of her child (ex-boyfriend) recently established joint custody of her ... A: Rick, Thank you for your question 1)Is it possible for both parents to claim the child tax credit? ...
Tax Fraud/Liability question	1/4/2009
Q: I found this after googling for quite a bit and am glad I even found it! I was just curious and ... A: Andy, Thank you for your question. 1)Can this person be charged with tax fraud and if so,what are ...
perdium	1/4/2009
Q: m company pays $35 no matter where i travel to for work. our hotels average $70 which is covered by ... A: Alex, Thank you for your question. 1)is what they are doing legal? I am not a lawyer, so I can ...
Calculating tax on winnings question.	1/3/2009
Q: I bought a fifty dollar raffle ticket for a home valued at 1.28 million dollars at ... A: Maryann, Thank you for your follow up question. 1)What I really want to know, is there a formula ...
taxaaion	1/3/2009
Q: Couple have always filed joint taxation for over 20 years. Now that one will have lower income over ... A: Rosa, Thank you for your question. 1)can they do separate or single taxation in the future and if ...
Calculating tax on winnings question.	1/3/2009
Q: I bought a fifty dollar raffle ticket for a home valued at 1.28 million dollars at ... A: Maryann, Thank you for your question. 1) How would one calculate tax owed to the IRS on a prize ...
Overnights out on the road	1/3/2009
Q: I would like to know if you can deduct overnight stay/meals on 1040 without filing long form (A). I ... A: Randy, 1) would like to know if you can deduct overnight stay/meals on 1040 without filing long ...
Pell Grant	1/2/2009
Q: I was a student for two years. I was divorced in July and I applied for and received a Pell Grant at ... A: Robin, Thank you for your question. 1)Do I file an income tax return? Did you file for 2007? If ...
home buyers credit	1/2/2009
Q: i will be relocating in June 2009. my question is should i file the first time home buyers credit on ... A: James, Thank you for your question. 1)should i file the first time home buyers credit on my 2008 ...
Filing single vs married	1/1/2009
Q: My wife and i were married Nov 19th 2007 and she didnt have any income so i filed jointly for her ... A: Phillip, Thank you for your question. 1)What do i do? The only thing you can do is to prepare a ...
Retirement fund withdrawal	1/1/2009
Q: If I take a one time age based withdrawal from my retirement fund I understand uncle sam will keep ... A: Robert, Thank you for your question. 1)but how will this affect my total yearly income for taxes? ...
Roth IRA for 12 year old	1/1/2009
Q: My husband and I are trying to determine if it is worth the trouble to open a custodial Roth IRA for ... A: Deanna, Thank you for your question. 1) Would we have to fill out a self employment tax return? ...
Filing Tax Amendment After Divorce	1/1/2009
Q: I filed married-joint for 2007. We had 2 children, my wife had no income for 2007, the income on the ... A: Jason, Thank you for your question. 1)Is there any way I can proceed (since the extra was mine, ...
schedule d tax cost basis	12/31/2008
Q: I sold 63 shares of HPQ 09/16/2008 for $48.62/share for a total of $3063.06. Originally in ... A: Tom, Thank you for your question. 1)How do I figure out the cost basis to enter on my schedule D ...
the hope credit	12/31/2008
Q: I am claiming my 19 year old full time student as a dependant. The government subsidized loan is in ... A: Mike Thank you for your question. 1)can I claim the hope credit? If you claim your 19 yr old on ...
tax deductions and credits	12/31/2008
Q: This year I started contributing to a 403 (b) plan and a flexible spending account FSA. My ... A: Janece, Thank you for your question. 1) is the 403 b a deduction or credit. The 403B should be a ...
deduction	12/31/2008
Q: do I have to buy a new farm truck before Jan 1st 09 to use as a deduction in 08 A: Carol, Thank you for your question. 1)do I have to buy a new farm truck before Jan 1st 09 to use ...
23 year old child of divorce- who can claim me?	12/30/2008
Q: "I am 23 years old and my parents divorced several years ago. The divorce agreement states that my ... A: Laurie, Thank you for your question. 1)Can I claim myself on my 2008 taxes?" Based upon the what ...
Early Withdrawal on 401K	12/30/2008
Q: Glenn, Recently I lost my job and had to withdraw my 401k to pay off some bills. At the time I ... A: Shelley, Thank you for your question. 1)Have there been any changes to the early withdrawal tax or ...
Claiming a loss on personal taxes	12/30/2008
Q: Glen, My taxable investments dropped like a rock this past year (as did most folks) and I sold some ... A: Bob, Thank you for your question. 1)Am I dreaming or is there presidential/congressional talk ...
1099-C	12/29/2008
Q: As a medical office practice manager, I have heard at various seminars that we can send a patient a ... A: PF, Thank you for your question. 1)we can send a patient a form 1099-C upon writing off their debt ...
House loan to children	12/29/2008
Q: Loaned money to son to buy a house. Understand that I have to charge AFR to satisfy IRS regs. When ... A: John, Thank you for your question. 1)Which table, etc do I use? I usually use the 110% AFR rate, ...
Tax Home and Travel Deductions.	12/29/2008
Q: I live in Minneapolis but I have worked in KY for 2months, St.Louis for 3 mos and NH for 5months. My ... A: Ram. Thank you for your question. 1)Can I deduct traveling and living expenses in KY and MO as I ...
Per diem taxed?	12/28/2008
Q: In 2009 I'll be working as an independent contractor in the US Virgin Islands. All 2009 income will ... A: Shawn, Thank you for your question. 1)However I'm a bit confused on the "home" situation. My home ...
Rental Property as Primary Residence	12/28/2008
Q: I purchased a property for my mother-in-law in April 2006 and have claimed it as a rental property. ... A: Tim, Thank you for your follow up question. 1)I'm considering selling the property this spring, ...
Do I have to file taxes?	12/28/2008
Q: This is the first time I have a job and am done with school, I'm 23 and my parents can no longer ... A: Blanca, Thank you for your question. 1). I don't know if I have to file taxes, Do I? If you do ...
Rental Property as Primary Residence	12/27/2008
Q: I purchased a property for my mother-in-law in April 2006 and have claimed it as a rental property. ... A: Tim, Thank you for your question. 1)Since I don't have a home in the States anymore (living ...
investment tax and penalty	12/27/2008
Q: Good Day, Thank you for contributing your valuable time, it is greatly appreciated. Here is myI am ... A: Bruce, Thank you for your question. The fact that this is as a IRS rollover means that as soon as ...
401K Withdrawal	12/26/2008
Q: I am retired from the Feds under CSRS 6C law enforcement. I was able to go at 51 with 31 years. I ... A: Tom, Thank you for your question. I would say since you are under 59 1/2, any money you start ...
Can personal a/c losses be combined with 401k withdrawal amount?	12/26/2008
Q: When I changed my employer, I withdrew the entire amount (approx. $20K) from my 401k. At that time, ... A: rakesh, Thank you for your follow up question. 1)Can you please explain the tax benefit of $2,500 ...
Work From Home Tax Deductions	12/25/2008
Q: Both me and my wife work from home full time, it is not a small business. We were looking over the ... A: Terrell, Thank you for your question. 1)it is not a small business What does this mean? Are you ...
Can personal a/c losses be combined with 401k withdrawal amount?	12/25/2008
Q: When I changed my employer, I withdrew the entire amount (approx. $20K) from my 401k. At that time, ... A: Rakesh, Thank you for your question. 1)but am wondering how much more I have to pay usually you ...
Income Tax on Gift	12/24/2008
Q: Sir, I am married to a Resident Alien. Her father would like to give us each of us, plus our ... A: Jack, 1) Will I be forced to pay Income Tax on the three gifts? Is there a requirement to report ...
Investment in Start-Up Company	12/24/2008
Q: Back in 1999, I invested roughly $10,000 in a local start-up company that developed high-definition ... A: Tim, Thank you for your question. 1)This year, I received a letter from the company indicating ...
Inheritance Tax	12/24/2008
Q: My mother passed away May 2008. She left 7 children, equal shares in her Condo. We sold the Condo ... A: Kat, Thank you for your question. 1)Do each of us have to turn this in on our tax returns? This ...
Tricky State Tax Question	12/24/2008
Q: For the first half of 2008 I lived in North Carolina and will pay state taxes there. In the middle ... A: Sean, Thank you for your question. 1)What state will my state tax obligation be to for the second ...
Moving expenses	12/23/2008
Q: Recently made a move from Las Vegas to Illinois. It was a company move, meaning same company to a ... A: Eugene, Thank you for your question 1)Complete IRS form 3903. If you spent less than you were ...
disability taxes	12/23/2008
Q: i have a 20% work related disability.i am still working full duty.the a case was paid off and left ... A: Bob, Thank you for your question, 1)can i claim the 20% off my state and fed taxes. i live in cali ...
1099	12/23/2008
Q: My husband receives social security disability. He won a motorcycle and will receive a 1099 form. ... A: Carol, Thank you for your question. 1)Will he have to file taxes on it? It depends what the Fair ...
Tax	12/22/2008
Q: Started a part-time vending business at the beginning of this year. I used my previously purchashed ... A: Jeff, Thank you for your question. 1)CAN I TAKE A SEC 179 DEDUCTION ON THE VAN IN 2008? The new ...
newborn child	12/22/2008
Q: My son was born in December and the registration people at the hospital told me that it will take 17 ... A: Josh, Thank you for your question. 1)Legally, do I have to wait this long until I can file my ...
Penalty taxes	12/22/2008
Q: I have withdrawn 23,000 from my stock account in the year 2008. What is the penalty that will be ... A: Deborah, Thank you for your question. 1)What is the penalty that will be applied since I am no ...
Form 709	12/21/2008
Q: You answered a previous question by saying that Tony's mom and dad can give him and his wife $24000. ... A: James. Thank you for your question. Here is a good explanation. Sorry if I was not clear enough. ...
Limited Partnership	12/21/2008
Q: I bought one unit of a limited partnership in 1972 I have been claiming income/losses on K1 I would ... A: Bill, Thank you for your question. 1)How do I report this sale on my tax return. You should ...
claiming a child	12/20/2008
Q: I just recently got married to a man who has a child. We are both working. The mother of the child ... A: Shannon. Thank you for your question. 1)She is going to let her boyfriend claim the child. Is that ...
401K	12/20/2008
Q: recenty terminated employment-cashed out on 401k-can IRS take my dispersment and is my ex employer ... A: Kim, Thank you for your question. Why would IRS take your disbursement? IRS will only know that a ...
tax deduction for education	12/19/2008
Q: My wife is attending a graduate program out of state that she must fly to 10 times in a year, attend ... A: Tom, Thank you for your question. 1)The program is 30 days total but is more than one calendar ...
my son	12/18/2008
Q: . Here is my question ...I have a 18 month old son .. The father does not support and rarely sees. ... A: Amy, Thank you for your question. 1). Is this possible ? What can I do ? If you are the custodial ...
SINGLE MARRIED	12/18/2008
Q: WHAT DOES "MARRIED BUT WITHHOLD AT HIGHER SINGLE RATE" MEAN?ON THE W-4? A: K, Thank you for your question. This has to do with a married person who wants to have more ...
IRS	12/18/2008
Q: my 2007 income was 34k file as head of household with 2 children as dependents, i alweays receive a ... A: Julia, Thank you for your question. 1)Can i still file taxes in 2008 for i always receive a refund ...
Where is my Tax Home?	12/17/2008
Q: I live in Charlotte, NC. I have taken a job in Boston and I work 40% of the time in the Boston ... A: David, Thank you for your question. 1)Am I able to expense my travel, food and lodging expenses ...
Foriegn exclusion	12/17/2008
Q: I started a on year contract overseas starting Dec 3 and ending Dec. 2 and im not sure if I will do ... A: Adam, Thank you for your question. 1)Can that portion overlap from calendar year to year or do I ...
Income Tax Waiver on Mortgage Debt that is Canceled	12/16/2008
Q: I have a house in California with a non-recourse, fixed 30 year mortgage with an initial down ... A: Kevin, Thank you for your question. 1)If I foreclose or do a short sale in 2009, do I still get ...
personal debt losses	12/16/2008
Q: i paid to my brother 75000 and he is not returning it as he is broke due to stock losses. can i ... A: Rob, Thank you for your question. 1)can i claim 75k losses in one year. You can take this as a ...
Tax Handling of Lease Option Agreements	12/16/2008
Q: Glenn, I am presently a 5 year resident in a condominium. My wife and I have recently purchased a ... A: Mike, Thank you for your question. 1)) Is the $650 of monthly non-option payments reported on a ...
Taxed in four states this year?	12/16/2008
Q: I own a house in California from which I receive rent money. I lived and worked in New Hampshire ... A: Elizabeth, Thank you for your question. 1) What will happen with my Tax this year? Will I have to ...
7500 tax credit	12/16/2008
Q: I am a first time home buyer, I am in the military and my state of residence is Puerto Rico thats ... A: Jose, Thank you for your question. 1)Do I still qualified for the 7500 credit. If you currently ...
two homes--two interest deductions?	12/15/2008
Q: We are buying a new home in California (closing today). We own another property in Geprgia that we ... A: Tom, Thank you for your question. 1)For 2009, however, what are my options? Is the interest from ...
need help and very confused	12/15/2008
Q: i am 17 years old and i still live with my mom this past summer in 2008 i was working part time i ... A: Candace, Thank you for your question. 1)the procedures for getting this money back my mom was not ...
Divorce Before the end of the Tax Year	12/15/2008
Q: I was married in April 2008. If I sign divorce papers, let's say the 20th of December 2008, can we ... A: Chris, Thank you for your question. 1)can we still file jointly or is the date for divorce the ...
claiming a newborn	12/15/2008
Q: me and my boyfriend had a baby in april but we have been living at my parents for the whole year and ... A: rossana, Thank you for your question. 1)im wondering if it"ll better if we marry before the end of ...
Casino Winnings	12/14/2008
Q: I am not a US citizen or resident, but i travel ocasionally to visit family, i won three times this ... A: Silvina, Thank you for your follow-up question. They should have used a ITIN . You file for one on ...
capital gains and losses	12/14/2008
Q: I have a long term gain in real estate and short term losses in stocks. Will these balance each ... A: Ginger, Thank you for your question. 1)I have a long term gain in real estate and short term ...
Casino Winnings	12/14/2008
Q: I am not a US citizen or resident, but i travel ocasionally to visit family, i won three times this ... A: Silvina, Thank you for your question. 1)would like to know if i get reimbursed totally or ...
Tax Deferrment	12/14/2008
Q: Other than 401k accounts and IRA's are there any other ways to defer taxable income and still earn ... A: Mike, Thank you for your question. 1)Other than 401k accounts and IRA's are there any other ways ...
HH & EIC	12/13/2008
Q: I have not lived with nor seen my wife for two years. She has sole custody of our two children. I ... A: Bob, Thank you for your question. 1)Can she file Head of Household and receive EIC? Yes and Yes ...
Tax Fraud	12/13/2008
Q: Ihave three chrildren, my ex and i have one. We have been seperated since 2006. He has claimed 3 ... A: Beth, Thank you for your question. 1)How is he able to do this? What are the consequences for ...
taxes on a settlement	12/13/2008
Q: do I have to pay taxes on a "pain and suffering" settlement? A: Julee, Thank you for your question. 1)do I have to pay taxes on a "pain and suffering" settlement? ...
1099	12/12/2008
Q: My husband and I moved to COlumbus OH 12-1-2005 from Cleveland OH. At the time we refinanced our ... A: Dawna, Thank you for your question. 1)Do we qualify for the mortgage debt relief act of 2007? On ...
Bonus Pay	12/12/2008
Q: Is an employer "required" to take out federal and state income taxes for Bonus Pay? Can the ... A: Susan, Thank you for your question. 1) Is an employer "required" to take out federal and state ...
post-grad filing	12/12/2008
Q: I graduated with my BA in May 2008. I paid for tuition, etc. with student loans, grants and ... A: Corey, Thank you for your question. 1)What can I deduct, or rather, how should I handle this when ...
Independent contractor- living in NY with clients in VA	12/12/2008
Q: I have been working as a marketing consultant for the past 5 years (getting both 1099s and W2s)in VA ... A: Amy, Thank you for your question. 1)how or if this will effect the state taxes I pay? Will I pay ...
1099C	12/11/2008
Q: I am in the middle of a chapter 13 plan which includes late fees incurred on a rental property ... A: Dawn, Thank you for your question. 1) Will I be taxed on the debt forgiveness even though I am in ...
claiming 0 or 1 on your w-2	12/11/2008
Q: I'm trying to find out if its better for me to claim o or 1 on my w-2 right now i have no dependents ... A: Nita, Thank you for your question. 1)i need to know does it matter which way i do it will it come ...
solo 401(k) contributions	12/11/2008
Q: I am self employed and I receive a mixture of W-2 and 1099 earned income. My W-2 income comes from ... A: Mary, Thank you for your question. 1)Do I need adjust my solo 401(k) contributions by subtracting ...
Expemption Question	12/10/2008
Q: To whom it may concern: My question is concerning with holdings and the federal TSP program. ... A: Anthony. Thank you for your question. 1)Can I change my number of exemptions per pay period to ...
sales tax on book sales	12/10/2008
Q: I live in AZ. and am selling my book on line. If someone from Ca. or Va. orders a book, do I charge ... A: Victoria, 1)If someone from Ca. or Va. orders a book, do I charge them sales tax? Is there any ...
ira rollover	12/10/2008
Q: If I rollover a regular ira to a roth, would this be ordinary income in my 1040, as part of the ... A: Diana, Thank you for your question. 1)If I rollover a regular ira to a roth, would this be ...
Foreign taxes paid	12/10/2008
Q: I have several foreign investments that pay foreign taxes on all dividends. Last year I took a ... A: Ron Schmit, Thank you for your question. 1)can I deduct the foreign taxes paid on my federal tax ...
Reporting Taxes on Currency Trading Profits	12/9/2008
Q: I am currently trading in Forex (currency trading). I have an investor who invested half (10M). I am ... A: Richard, Thank you for your question. 1)What is the best way to handle this with our tax returns ...
W-8BEN	12/9/2008
Q: We are a Canadian Co. selling horticultural fabrics into the US. We recently sold fabric to N.C. ... A: Bill, Thank you for your question. 2)They are asking us to fill out a W-8BEN form. Is this ...
1041	12/9/2008
Q: I am the executor of an estate, in which the decedent has bequeathed everything to a 501(c)(3) ... A: Dave, Thank you for your question. 1) Is this considered a charitable deduction, reportable on ...
1099c and insolvency	12/9/2008
Q: okay trying to sell my investment property, markets not that great so I'm forced to do a short sale, ... A: Don, Thank you for your question. 1)Should I approach the IRS concerning the remaining years she ...
Filing Status	12/9/2008
Q: My daughter is wondering if she can file a federal tax return as married separately, or head of ... A: Don, Thank you for your question, 1)can she file other than married joint, does she have to ...
Rental Property Not Deductible	12/8/2008
Q: I have some rental property that my accountant says is not deductible. It points to a form that ... A: John, Thank you for your question. This may have to do with your income level. The form you may be ...
conversion of rental property to primary residence	12/8/2008
Q: I have rented a property for about 15 years and have depreciated it totally and had planned to sell ... A: Art, Thank you for your question. 1)If this is true, what is my best course of action at this ...
working offshore	12/8/2008
Q: I am an American, living in the US. I work offshore for the Chinese government. My friend's ( who ... A: Alan, Thank you for your question. If you are a US citizen and you work and reside in a foreign ...
capital gains on sale of residence	12/8/2008
Q: i have a home that i lived in from 2002-2007 full time, moved a yr ago and rented that one out. My ... A: Chris, Thank you dor your question. 1)am i going to owe taxes on the entire gain with this if i ...
filing my small business and w-2	12/7/2008
Q: I opened a home business this year but, I also work full time. Am I supposed to claim the money I ... A: Casey, Thank you for your question. If the 1099 was in your name or to your business, not being a ...
21 year old son dependency status	12/6/2008
Q: My son's father and I are divorced and while the 3 children live with me, the divorce agreement ... A: Sara, Thank you for your question. 1) So the question I have is, can Dad still claim him as a ...
Mortgage Debt Foregiveness Taxes	12/6/2008
Q: I own a vacation home and both my 1st and 2nd mortgages are non-recourse in South Carolina. I am ... A: Shelly, Thank you for your follow up question. 1)but you also mentioned that if the collateral ...
Whole Life/Loan/Terminate?	12/5/2008
Q: My father, who has passed, took out a whole life policy on 3 of us sibs in 1962. He transferred ... A: Cher, Thank you for your question. 1)Whole life policies are taken out and premiums are paid. Part ...
Mortgage Debt Foregiveness Taxes	12/5/2008
Q: I own a vacation home and both my 1st and 2nd mortgages are non-recourse in South Carolina. I am ... A: Shelly, Thank you for your question. 1)You stated that in my situation: "No portion of the gain ...
Mortgage Interest Deduction	12/5/2008
Q: I am buying some acreage and plan to build a home on it. I would like to deduct the interest on the ... A: Bill, Thank you for your follow up. 1)If I do not build on it within the two year period I have ...
Mortgage Interest Deduction	12/5/2008
Q: I am buying some acreage and plan to build a home on it. I would like to deduct the interest on the ... A: Bill, Thank you for your question. 1)Would this allow me to deduct the interest I am currently ...
IRA MRD 2008	12/4/2008
Q: Since the value of the stock on 12/31/2007 is considerable lower now, is Congress providing any ... A: George, Thank you for your question. 1)is Congress providing any relief for IRA minimum required ...
lottery taxes	12/4/2008
Q: my son won 146,000 on a second chance lotter he played deal or no deal game show do to the second ... A: Victoria, Thank you for your question. Lets say: Winnings $146,000 W-2 $ 20,000 Total ...
Radius rules for non-taxable stipends	12/3/2008
Q: We employ travel therapists who travel to various locations throughout the country and work for 3 or ... A: Suzann, Thank you for your follow up question. I found this on the web site ...
Commodity Gift	12/3/2008
Q: I have giving to my adult children this year several thousand dollars worth of grain as a gift (less ... A: Mark, Thank you for your question. 1)Do I need to include the amounts they sold the grain for as ...
Mortgage Debt Foregiveness Taxes	12/3/2008
Q: I own a vacation home and both my 1st and 2nd mortgages are non-recourse in South Carolina. I am ... A: Shelly, Thank you for your question. 1)Does the fact that they are non-recourse loans exempt me ...
witheld taxes	12/3/2008
Q: I would like to know if it is legal for my employer to only take taxes out of one check? We have set ... A: Cheronda, Thank you for your question. 1)I would like to know if it is legal for my employer to ...
Loan to sons	12/2/2008
Q: I have taken out a home equity loan in order to help my sons pay off their high interest credit ... A: Terence, Thank you for your question. 1)Is it best for their repayments to go directly to the bank ...
Radius rules for non-taxable stipends	12/2/2008
Q: We employ travel therapists who travel to various locations throughout the country and work for 3 or ... A: Suzann, Thank you for your question. 1)Can you please either direct me to a website that details ...
company vehicle mileage	12/2/2008
Q: I have several questions about personnal vehicle miles on a company vehicle. Recently my employer ... A: David, Thank you for your question. 1)Certainly the irs does not expect a person who does not ...
Capital gains deduction on rental property	11/30/2008
Q: I have a single-family home that I have treated as a rental property from the first day I purchased ... A: Armeen, Thank you for your question. 1)Once the current tenants leave, can I live in it for 2 ...
Vehicle Allowance	11/29/2008
Q: I have searched everywhere for an answer hopefully you can help. I use my own vehicle for work ... A: Allen, Thank you for your question. 1) Is there any way I can recoup the taxes that I have paid ...
ROTH Recharacterization 2008	11/28/2008
Q: Back in June I converted $23,000 from a traditional IRA into a ROTH and the market's downturn has ... A: Jerome, Thank you for your question. 1)When it comes to tax time for the year 2008 do I need to ...
W8BEN	11/28/2008
Q: A company with a US TIN has non U.S. citizens as signers. They receive no other benefits / income ... A: Dave, Thank you for your question. 1)My question is why is this form required? What is the ...
reportable income	11/28/2008
Q: I own property in WV. I recently leased my land for possible site to drill natural gas. I have ... A: John, Thank you for your question How do I report this on my taxes? What options do I have? You ...
Per Diem	11/27/2008
Q: I'm working out of town and I'm recieving $110 a day per diem and my company is adding this to my ... A: William, Thank you for your question. Is this taxable? and is there a period of time that you ...
1099-misc for non-employee travel reimb?	11/26/2008
Q: Any advice would be appreciated! ANSWER: Marie, Thank you for your question. 1)am wondering if I ... A: Marie, Thank you for your follow up question. 1)Also, would it make a difference if we reimbursed ...
taxes not filed yet, stimulus check?	11/26/2008
Q: We've had a bad year with medical problems, job loss and eventual foreclosure. We have not filed our ... A: Lori Trowbridge, Thank you for your question. I am located in Long Island, New York. 1)Do I submit ...
tax	11/25/2008
Q: I have not worked this year, but I have a 7 month baby, can I file tax and if i get money back can ... A: Susei, Thank you for your question. 1)I have not worked this year, but I have a 7 month baby, can ...
expired option	11/25/2008
Q: Glenn, in 2006 I paid $5,000.00 for an option to buy the house I am leasing. The option agreement ... A: Josh, Thank you for your question. 1)Is there any way I can take a deduction for the money I paid ...
Income tax question	11/25/2008
Q: I am accepting a work from home position to allow me to move to another state and remain working for ... A: Erin, Thank you for your question. 1)How does this work? Am I breaking any laws paying taxes in ...
1099-misc for non-employee travel reimb?	11/25/2008
Q: Any advice would be appreciated! A: Marie, Thank you for your question. 1)am wondering if I need to issue 1099s for prizes (for ...
Retained earning for a townhouse association	11/25/2008
Q: In the budgeting process for our Townhouse Association we currently have retained earnings and are ... A: David, Thank you for your follow-up question. IRS Ruling 70-604 seems to be the talk of the town. ...
Educational Expenses as Itemized deductions	11/24/2008
Q: This year I was sent an examination report that stated I owed $3000 because I was not allowed to ... A: Cidalia, Thank you for your question. 1) Is there any thing that you can advise me to do? ...
Retained earning for a townhouse association	11/24/2008
Q: In the budgeting process for our Townhouse Association we currently have retained earnings and are ... A: David, Thank you for your question. 1) Are these prohibitions for this action? First I think you ...
form 1099 filing requirements for Condo Assoc	11/23/2008
Q: I am a Treasurer for a condo assoc. Are we required to file 1099 forms with the IRS as well as issue ... A: Gary, Thank you for your question. As a past President of my Condominium Association, I know a ...
HOH and Adult Child	11/23/2008
Q: I'm writing to make sure I can claim Head of Household on my taxes this year. I am legally ... A: Terry, Thank you for your question. 1)I'm writing to make sure I can claim Head of Household on my ...
Efficiently accessing equity in in-law's apartment	11/22/2008
Q: My in-laws have decided to leave my wife and I their condo apartment, worth about $400,000, in ... A: Michael, Thank you for your follow-up question. 1) Can I ask you to elaborate a bit here on what ...
Efficiently accessing equity in in-law's apartment	11/22/2008
Q: My in-laws have decided to leave my wife and I their condo apartment, worth about $400,000, in ... A: Michael, Thank you for your question 1)Is there some sort of creative structure to this that would ...
Filing Taxes	11/21/2008
Q: I am 17yrs old and i had a job which recently had to close down due to money issues. Will I receive ... A: Jacob, Thank you for your question. 1)Will I receive my W-2 Form from them? Yes, Just make sure ...
Tax form 673	11/21/2008
Q: since your last reply I was offered and signed a one year contract instead of the six month contract ... A: Steven, Thank you for your follow -up question. 1)My question is on tax form 673, I would check ...
401K hardship	11/20/2008
Q: I am thinking of taking a hardship withdrawal because of my severe financial situation. I know there ... A: John, Thank you for your question. 1). Is the tax just regular income tax? Yes. It just gets ...
student taxes	11/20/2008
Q: My 18-year-old high school senior is starting a new job and we are uncertain about how to fill out ... A: Kelly. Thank you for your question. 1)How much can she earn before having to pay taxes? As a ...
per-diem	11/19/2008
Q: I moved from Las Vegas Nevada to Camarillo california . for a consulting job . part of my pay is not ... A: Josie, Thank you for your question. 1)How do I know what tax deductions I can claim ? If you ...
temporary assignment	11/19/2008
Q: I hope this is a simple question for you. I've received several conflicting answers. I am a US ... A: Roman, Thank you for your question. If your only earned income from work abroad is pay you ...
Medical Expenses	11/18/2008
Q: I have medical bills around $30,000.00. I had only made $12,000.00 before I became disabled and I ... A: Philip. Thank you for your question. 1)Will I have a tax burden on the money I take out of the ...
gift tax	11/18/2008
Q: I know I can give or receive a gift of 1,200.00 per year with no tax report filled, but what if the ... A: Terry, Thank you for your follow-up question. 1)if we were to give a married couple money does ...
c corp loss	11/18/2008
Q: I was wondering if there is any way to take a substantial 2006 loss in a company (c corp in 2006) ... A: Mary, Thank you for the question. 1)Could we possibly dissolve the company and somehow take the c ...
Willed property	11/18/2008
Q: My Mother's house was willed to me. Her death was in Oct. 2008. I am now selling this house. Do I ... A: Carolyn, Thank you for your question. 1)Do I have to put the capital gains, from this house, on ...
Withdrawing money from an IRA	11/17/2008
Q: Do you have a close estimate about how much taxes I will have to pay after withdrawing $23,000 from ... A: Mary, Thank you for your question. 1) Do you have a close estimate about how much taxes I will ...
$7,500 Tax Credit for First Time Home Buyer	11/17/2008
Q: 11/18/08 I am looking to buy a house in the next couple months. I am single and 23 with no ... A: Gregg, Thank you for your question. 1)My question is: If I buy the house in Jan 2009, can if be ...
rental deductions	11/16/2008
Q: Last year, I could not deduct expenses and depreciation from my rentals because my wife and I made ... A: Thang, Thank you for your question. 1) I do all the screening, repairs, and management duties so ...
Physical presence exemption	11/16/2008
Q: I am a Contractor in Iraq and am planning on being here for more than a year. I understand the ... A: Bobby, Thank you for your question. 1)For the second year of the exemption does it start again at ...
Foreign earned income	11/15/2008
Q: I am a US citizen and I retired from the United Nations in Denmark in 2006. Under my terms of ... A: Elaine, Thank you for your question. 1)Is this Grant considered foreign earned income, or is it ...
Medical Questions	11/15/2008
Q: I live in the Memphis, TN area and had to fly to New York City for open heart surgery. My wife ... A: Larry, I'm glad that every thing worked out for you. I guess I will make a note that NY ...
Medical Questions	11/15/2008
Q: I live in the Memphis, TN area and had to fly to New York City for open heart surgery. My wife ... A: Larry, I guess the IRS feels that people should be checked into a hospital and not staying at a ...
Dependent Care Credit/Flex Spending	11/13/2008
Q: I understand that my limit for contribution to my company's dependent flex spending account is ... A: Tracy, Thank you for your question. 1) If I will pay more than that in 2009 for 1 child, can I ...
babysitting	11/13/2008
Q: ex husband trying to get me for tax fraud saying i run a daycare without turning in my income . i ... A: Ronda, Thank you for your question. 1) how much can you make before you must turn it in the pay ...
Inheritance Tax Deductibility	11/13/2008
Q: My aunt passed away this year. I inherited her IRA and I (not the estate) had to pay New jersey ... A: Robert, Thank you for your question. 1)Can I deduct this expense on my federal return? No. ...
Late filing	11/13/2008
Q: I'm not sure where to begin, it's a complicated story... In April 2008 I told my accountant to file ... A: Eran, Thank you for your follow up question. 1)Will we surely get it next year? and if not, is my ...
federal tax	11/13/2008
Q: my husband was employed between Jan and May and has again joined employment starting this week. So, ... A: Txm. Thank you for your question. 1)Can I claim him as a dependent for this year while filing my ...
gift tax	11/12/2008
Q: I know I can give or receive a gift of 1,200.00 per year with no tax report filled, but what if the ... A: Terry, Thank you for your question. 1) Who needs to file the report and what is the of tax on ...
Late filing	11/12/2008
Q: I'm not sure where to begin, it's a complicated story... In April 2008 I told my accountant to file ... A: Eran, Thank you for your question. 1). If it is an honest mistake, can it be fixed? will the IRS ...
tax exemption	11/12/2008
Q: Home News Local National AP Video News Weather Forecast ... A: Leslie, Thank you for your question. 1)May I claim my oldest son on my tax return for this year. ...
401k inheritance	11/12/2008
Q: My mother died leaving a 401k to me, what are the tax consequences if I take it, can I roll it over ... A: Mitzi, Thank you for your question. Sorry about the passing of your mom. 1)My mother died leaving ...
contractor settlement	11/11/2008
Q: This year we broke a contract with a builder, and instead of hammering it out in court we settled ... A: Jo, Thank you for your question. 1)how do we make sure that the IRS is aware of exactly how much ...
1099	11/11/2008
Q: How do you handle a situation where a person has worked part of the year as an employee paid through ... A: Louise, Thank you for your question. 1)How do you handle a situation where a person has worked ...
Tax on sell of my house	11/11/2008
Q: I am sixty-five years old and my husband is deceased. If I sell my house for $160,000 "over" the ... A: Martha, Thank you for your question. 1how much tax will I have to pay on the $160,000, not ...
Ex-Husband Lives in My House He pays the mortgage Is that Income for tax Purposes?	11/10/2008
Q: My ex-husband lives in my home (now titled in only my name) in MD with our daughter and pays the ... A: Jessica, Thank you for your question. 1)do I have to claim his payments on the first mortgage as ...
Deductions	11/10/2008
Q: I am donating two trees to the city and would like to know if I can deduct the transportation cost ... A: Brandi, Thank you for your question. 1)would like to know if I can deduct the transportation cost ...
Claiming a Child	11/10/2008
Q: My wife and I are going through a divorce. She has primary physical custody of our son but does not ... A: Gregory, Thank you for your question. 1)With the new tax laws for claiming dependents does she ...
Tax write off - home generator	11/9/2008
Q: You were so much help on my last 2 question I thought I might asked a 3rd one. Just after the Ike ... A: Steven, Thank you for your follow up question. I would say that if you had this installed after ...
Tax write off - home generator	11/9/2008
Q: You were so much help on my last 2 question I thought I might asked a 3rd one. Just after the Ike ... A: Steven, Thank you for your question. 1) Is this a tax write off. According to the web site: ...
673 tax form	11/8/2008
Q: I started my job in Iraq in june 2007 and will end June 2009. What I would like to know is what do I ... A: Steven, Thank you for your follow up question. 1) E)For 2007 you would have a prorated ...
Form 3115 and Rev. Proc. 96-31 - amending returns	11/8/2008
Q: I was reviewing the Q&A between you and Warren re: Form 3115 and filing for a change in accounting ... A: Sonia, Thank you for your follow up questions. 1)Would I be considered a small business and ...
Tax form 673	11/8/2008
Q: I started work in Iraq on 6/4/2007 & will end my contract on 6/4/2009. I retired in 2007 from my ... A: Steve, Thank you for your question. 1)once I finish my contract on 6/4/09 I would have stayed out ...
Tax filing laws	11/7/2008
Q: Someone told me that you have up to two years to file my taxes after being a full time student. Is ... A: AH, Thank you for your question. 1)Someone told me that you have up to two years to file my taxes ...
Dependent care Flex spending accounts	11/7/2008
Q: Can both my husband and I participate in our employer's dependant care FSA and each contribute the ... A: Laura, Thank you for your question. 1)Can both my husband and I participate in our employer's ...
form 709 GST tax	11/7/2008
Q: my wife and I are in our 80's and equally own our home; 80% of our son's home; and 50% of our ... A: Frank, Thank you for your question. 1)how can form 709 benefit us? Estate tax planning can get ...
Filing Taxes	11/6/2008
Q: I recently change jobs after 12 years of employment. I took my pension and my 457 plan. Due to my ... A: Tiffany, Thank you for your question. 1)My question is should I file this year or can I wait to ...
Dependants	11/6/2008
Q: My son just turned 18 in Oct. 2008. He has spent half the year in adult jail. Am I able to claim him ... A: Marie, Thank you for your question. According to the IRS web site: In general, to be a taxpayer’s ...
$7500 Tax Credit First Time Homebuyer	11/5/2008
Q: I am currently building a home and will qualify for the full $7500. We plan to close in April of ... A: Matthew, Thank you for your question. 1)should I wait until after I close to file my taxes? If ...
1099 Questions	11/5/2008
Q: I need a few questions answered. My company is a small family owed business. And they are changing ... A: Tally, Thank you for your question. 1)How does this work with the IRS? I hope they are still ...
Does using only 1099 tax forms in your life make you not a US citizen?	11/5/2008
Q: If a person never works for a company that has W2's or anything else that takes out taxes ... A: Misty. Thank you for your question. 1)does this make them not a US citizen? No. A W-2 is ...
Is Pension from Divorce Taxable?	11/5/2008
Q: I am to receive a small part ($260 monthly) of pension from my former husband and he'll also pay ... A: Lee, Thank you for your question. 1)am to receive a small part ($260 monthly) of pension from my ...
Income tax question	11/5/2008
Q: I work 6 months of the year in Alaska, own a house and pay taxes and utilities in Alaska.( Resident ... A: David, Thank you for your question. 1)If you income is earned in North Dakota, then you have to ...
Roth Conversion	11/4/2008
Q: I rolled over 50K from an old 401(k) to an IRA last year. It's now worth 35K. I've also been ... A: Jonah, Thank you for your question. 11)Is there a benefit of combining the Traditional IRA with ...
Savings Bond tax	11/4/2008
Q: When a person cashes in savings bonds do they have to report interest to IRS even if the interest is ... A: Ray, Thank you for your question. 1)When a person cashes in savings bonds do they have to report ...
per diem break	11/4/2008
Q: I am working a contract position out of state from my home. I am hearing from fellow contractors ... A: Keith, Thank you for your question. 1)I need to find what the minimum number of days I need to ...
income tax withholding	11/3/2008
Q: my gross earnings on my paycheck was $420. my company did not withold any fed or state taxes. they ... A: Angela, Thank you for your question. 1)shouldn't they still take out taxes? If you have a ...
HSA Excess Contribution	11/1/2008
Q: Glenn, My question is regarding Health Savings Accounts (HSAs)in regards to federal taxes. I was ... A: Patrick, Thank you for your question. 1)Can I simply withdraw the amount since it was funded with ...
1099's	10/30/2008
Q: Do LLC's get 1099's? Thanks, Tracy A: Tracy, Thank you for your question. 1)Do LLC's get 1099's? Thanks, Tracy Yes, You should send a ...
Working and living taxing state	10/29/2008
Q: I currently work from home in Dallas, TX. I used to work in a building in Brook Park, OH. I still ... A: Gretchen Thank you for your question. 1)Which state and city should my company be with holding ...
1040 net operating loss	10/29/2008
Q: If a 2004 form 1040 with a large net operating loss is filed in October, 2008 I presume I am too ... A: Jack, Thank you for your question. 1)I presume I am too late to waive the carry-back option. Yes ...
Tax Provisions due to Expire at end of 2007	10/29/2008
Q: Has Congress extended the seven tax provisions listed on page 2 of IRS Publication 17 ? A: Robert, Thank you for your question. 1)Has Congress extended the seven tax provisions listed on ...
House Pay-Off?	10/29/2008
Q: My wife and I (ages 48 & 44) are going around in circles trying to figure this one out. We ... A: Richard, Thank you for your question 1) Should we pay off our house and start using that money to ...
Tax Deduction on Prior Purchases??	10/29/2008
Q: I am starting a Bike training company that is been in the works for about 6 months. I bought a bike ... A: Todd, Thank you for your question. 1)Am I able to write off the bike and accessories since I will ...
allowances	10/29/2008
Q: I am in a domestic partnership and my partner will be claiming me as a dependent. On line a of the ... A: Jen, Thank you for your question. 1)On line a of the w4 I put 0 since I am being claimed as a ...
Collecting from IRS	10/28/2008
Q: several years ago, april after right after 911, my other half got his income tax back minus around ... A: Michelle, Thank you for your follow up question. 1) What would he amend his return to? It was ...
State Withholding form	10/28/2008
Q: Good Evening, The question that I have deals with an employee who filled out a W4 and the NY ... A: Ravi, Thank you for your follow up question. 1)Is there any definitive law that states what you ...
State Withholding form	10/28/2008
Q: Good Evening, The question that I have deals with an employee who filled out a W4 and the NY ... A: Ravi, Thank you for your question. 1)Please let me know if I am correct that I should withhold ...
W9 Versus 1099	10/27/2008
Q: Recently won a contest in which I am being sent monies but I had to fill out a W9 first. What is a ... A: Lou, Thank you for your question. 1)What is a W9 and why was'nt a 1099 used instead. Do I owe ...
tax amendment following a divorce	10/27/2008
Q: My ex-husband filed an amendment on our joint 2005 taxes after our divorce and received a federal ... A: Chris, Thank you for your question. 1) What do I need to do to protect myself from legal action if ...
IRA beneficary	10/26/2008
Q: My husband's father passed away and he just found out he is the beneficiary on his IRA, the IRA is ... A: Crystal, Thank you for your question. 1)if we take it out in one lump sum how much will we owe in ...
Income or sales tax	10/25/2008
Q: I'm considering a move- Seattle or Portland. WA has no income tax, OR has no sales tax. I'm a recent ... A: Jenna, Thank you for your question. 1)Which is more likely to be beneficial to me- no income tax ...
OTC stock gift	10/24/2008
Q: For OTC stock as a gift, how will it be valued and if I don't have money(cash) to pay for gift tax ... A: Bona, Thank you for your question. 1)For OTC stock as a gift, how will it be valued and if I don't ...
Income Tax	10/24/2008
Q: My mom wants to move my home to receive care. I have no mortgage payment on the house - it's all ... A: Nicole, Thank you for your question. If you charge rent to your mom, it is taxable income to you. ...
inheritance tax	10/24/2008
Q: My husbands grand father passed away and left his son (my father in-law) $200k and $200k to his ... A: Kristen, Thank you for your questions. 1)First, the estate taxed as a whole and then $200k ...
Lodging followup	10/23/2008
Q: I have the reverse question of an employer paying for housing of an employee. I live in one city but ... A: Kim, Thank you for your question. 1)Can rent,travel and related expenses I incur be deducted. ...
Taking on an investor in an LLC	10/23/2008
Q: I recently started a firm as an LLC, as the only member and principal asset (intellectual property) ... A: James, Thank you for your follow-up question. James, 1)Question is then, if I add him as a ...
Taking on an investor in an LLC	10/23/2008
Q: I recently started a firm as an LLC, as the only member and principal asset (intellectual property) ... A: James, thank you for your question. 1)what the best way to handle adding him to the company There ...
FICA	10/23/2008
Q: I have paid my 2007 FICA taxes and have recently changed jobs and my old employer is trying to keep ... A: Jerald, Thank you for your question. 1)Please help. I'm a little confused here. Were you an ...
Acquired Investment Property Cost Basis	10/23/2008
Q: I recently purchased an investment property, which I am renovating and will hold as rental property. ... A: Rich, Thank you for your question. 1)Which of the closing costs (e.g., fees, taxes, etc) should be ...
Lodging	10/22/2008
Q: A taxpayer works for a company that has offices in DC and New York. The taxpayer lives with his ... A: Tom, Thank you for your question. 1)Is any of the cost of the NY apt rent that is paid by the ...
jointly or individual filing	10/22/2008
Q: I'm going to collect my SS pension and I was wondering if I had to withhold Fed taxes as my housband ... A: Judi, Thank you for your follow up question. 1)What is the computation that needs to be done if ...
estimated tax underpayment penalty	10/22/2008
Q: If a corps taxable income for the year ended Dec 31, 2000 was $2 million, what would have to be done ... A: Bobby, Thank you for your question. This sounds like a school question. 1)What would its total ...
Cost basis of eqities	10/22/2008
Q: My parents inherited stocks and bonds that were placed in a joint brokerage account with rights of ... A: Pam, Thank you for your follow-up question. 1)If my mother now needs to sell that stock and the ...
jointly or individual filing	10/21/2008
Q: I'm going to collect my SS pension and I was wondering if I had to withhold Fed taxes as my housband ... A: Judi, Thank you for your question. 1Is that correct and what is the tax difference from jointly to ...
Car transporter	10/21/2008
Q: If we are being forced moved by our job.(military) i have a extra car that i can not drive and need ... A: William, Thank you for your question. 1)Can it be deducted on my taxes since it is a business ...
rental property deduction	10/21/2008
Q: I am retired on SS. I own two duplexes as rentals. The straight line depreciation on the two ... A: Pat, Thank you for your follow up. If the 80,000 is from interest income, it is classified as ...
OT mileage write off	10/21/2008
Q: I work for a fire department and I understand that I can write off the mileage when I am moved from ... A: Patrick, Thank you for your question. 1)Can I write off the entire round-trip mileage driving to ...
rental property deduction	10/20/2008
Q: I am retired on SS. I own two duplexes as rentals. The straight line depreciation on the two ... A: Pat, Thank you for your question. 1)My question is, can I deduct the $45,000 loss from my $80,000 ...
Can I be claimed as dpendant?	10/20/2008
Q: I'm a perminant resident of the US since July 17th 2008 and I'm 20. Since that time though my father ... A: Shirin, Thank you for your question. 1)Can he claim me as a dependent at the end of this year? ...
Where should I incorporate?	10/19/2008
Q: I live in New York but I am not a US Citizen (I am French). I am currently working for an ... A: Aurelian, Thank you for your question. 1)My friends advise me to incorporate a LLC, but is it the ...
Pregnant Dependent	10/19/2008
Q: I'm a dependent college student, but I support myself. I recently found out that I am pregnant and I ... A: Elisha, Thank you for your question. 1)Do I have to wait until the baby is born and claim her as a ...
IRA distribution of non-deductible contributions	10/19/2008
Q: For the past several years I have made non-deductible contributions to an IRA. (I have a defined ... A: Dave, Thank you for your question. 1)is it really necessary for me to get that money back in ...
Cost basis of eqities	10/19/2008
Q: My parents inherited stocks and bonds that were placed in a joint brokerage account with rights of ... A: Pam, Thank you for your question. 1)My father passed away this summer and I am wondering if the ...
7,500 tax credit	10/18/2008
Q: Can you get the tax credit if you are a first time buyer that has a co-borrower that is not a first ... A: Teri, Thank you for your question. 1)Can you get the tax credit if you are a first time buyer that ...
Missing A Work Expense Deduction?	10/17/2008
Q: My employer is based in Anchorage, Alaska. I live 50 + miles from Anchorage. I am an hourly/ at-will ... A: Tom, Thank you for your follow up question. 1)This is why I wonder if I am allowed to deduct the ...
Missing A Work Expense Deduction?	10/16/2008
Q: My employer is based in Anchorage, Alaska. I live 50 + miles from Anchorage. I am an hourly/ at-will ... A: Tom, Thank you for your question. 1) Could I be writing off the cost of parking? If you look up ...
Advertisement on Car	10/16/2008
Q: I heard on TV that advertisement on the side of your business vehicle will allow one to deduct ALL ... A: Dee, Thank you for your question. 1)I heard on TV that advertisement on the side of your business ...
one-time capital gains house sale exemption	10/16/2008
Q: My parents sold their first house in 1992. They bought it for $40K and solid it for $220K in 1992, ... A: Steve, Thank you for your follow up question. Sales Price $700,000 Commission ($40,000) ...
rental property	10/16/2008
Q: I’ll greatly appreciate if you’ll answer my questions (with “yes” or “no”) 1.Can I have a second ... A: Mary, Thank you for your questions. 1)Yes 2)Yes 3)Yes Vacant Home, need to show advertising that ...
Bad Debt from Rental Property	10/15/2008
Q: I had to evict a tenant for not paying rent on my rental property. I received a judgment against ... A: Doris, Thank you for your question. 1)Can I deduct this loss of rental income? If you did not ...
Federal Employee Disability Tax Question	10/14/2008
Q: I am a disabled federal employee trying to do my taxes for 2007. I have the CSA 1099R and am using ... A: Dawn, Thank you for your question. 1)but what i the general amount and most importantly how would ...
Wrongful termination lawsuit	10/13/2008
Q: I was wrongfully terminated by my employer. My former employer's lawyer has asked if I would like ... A: Dorothy, Thank you for your question. 1) I am trying to find out what the taxes would be to know ...
tax exemptions	10/13/2008
Q: does a monthly annuity due to a quadriplegic total disability and ssdi payments count as taxable ... A: Chris, If you are collecting on an annuity, It all depends on what the documents you signed calls ...
1041	10/13/2008
Q: My sister recently passed away. My mother was the beneficiary on most of her assests. The estate ... A: Jon, Thank you for your question. 1)I assume that Form 1041 would be used with schedule K-1. I ...
Tax loss Question	10/13/2008
Q: I'd like to know how much of a loss I can declare on my income taxes, and what the minimum buyback ... A: Nicholas, Thank you for your question. If you are referring to capital losses, you can offset ...
Collecting from IRS	10/13/2008
Q: several years ago, april after right after 911, my other half got his income tax back minus around ... A: Michelle, Thank you for your question. 1A)The IRS still has not paid him back, shouldnt they have ...
LLC gone bad	10/13/2008
Q: I left my company (LLC) with one other partner Nov. 2007. The company bought back my 49% I walked ... A: Christine, Thank you for your question. If the company paid you 49% for your interest in your LLC, ...
converting rental property to primary residence	10/12/2008
Q: I bought a condo here in Jacksonville in 2004 and lived in it as a primary residence until early ... A: Herb, Thank you for your question. 1)What are the tax implications from permanently removing this ...
money gifts to relatives	10/11/2008
Q: What is the amount of money you can give as a gift in one year with no federal tax? (In Iowa) A: Verne, Thank you for your question. You can gift up to $12,00 per calendar year without being ...
taxes	10/10/2008
Q: can i claim a car i just bought? A: James, Thank you for your question. You cannot buy a car and write it off. If you use the car for ...
Commissions	10/10/2008
Q: I am in sales and would like to begin not having taxes taken from my commission checks each quarter. ... A: Christopher, Thank you for your question. 1)What is the real answer?? The real answer is that the ...
Capital Gains on US RV Property	10/10/2008
Q: We are Canadian citizens that had purchased and sold a recreational property within a park. We had ... A: Vivianne, Thank you for your follow up question. 1)Would it be beneficial for the US Government to ...
illinois injured spouse form 8379	10/9/2008
Q: I am currently separated from my spouse. When He filed our taxes for 2007 we filed married filing ... A: Randi, Thank you for your question. 1)I was then told that the only reason the IRS told me this ...
Tax questions	10/9/2008
Q: Here it is in a nut shell.. I receive social security for survivor benefits Approx$12,576. per yr. I ... A: Jacque, Thank you for your question. 1)How can I write all these off on my taxes when I don't make ...
Capital Gains on US RV Property	10/9/2008
Q: We are Canadian citizens that had purchased and sold a recreational property within a park. We had ... A: Vivanne, Thank you for your question. You would file a 2008 tax return as a non resident alien IRS ...
Capital Gains on Personal Property	10/9/2008
Q: I recently sold an airplane (purchased in 1972) and aircraft hangar (purchased in 1977). I'm sure I ... A: Brad, Thank you for your question. When you showed the aircraft and the hangar , did you collect ...
Volunteer expenses (firefighter / EMT)	10/9/2008
Q: I'm a volunteer firefighter / EMS. I read some posts that suggest that mileage @ 14 cents a mile + ... A: Sean, Thank you for your question. Charitable mileage for 2008 is 14 cents per mile as you stated, ...
Correction of cost basis for 2007 return	10/8/2008
Q: How do I make a correction for calculating the cost basis of a stock sale for my 2007 return? Our ... A: Lisa, Thank you for your question. 1)Do we use the 1040X and do we need to include schedule D? ...
Rental Schedule E-	10/8/2008
Q: We own 2 homes. We tried to sell or rent home A from May 2007. We rented it June 2008. While living ... A: Harold, Thank you for your question. My question would be which is your principal residence? Home ...
parents as dependants	10/8/2008
Q: I don't support my parents, but they have both been ill and my mother is dying of cancer for the ... A: Yrish, Thank you for your question. I'm sorry to hear about the health of your parents, The way the ...
can partner take his share of LLC business loss	10/7/2008
Q: there, Could you please answer this question for me? thank you very much in advance! My husband is a ... A: June, Thank you for your question. 1)Can he deduct any loss of this $30000 in his income tax? ...
Can an LLC partner take a loss in his income tax?	10/7/2008
Q: there, Could you please answer this question for me? thank you very much in advance! Mr. A is a ... A: June, Thank you for your question. 1). Can Mr. A deduct any loss of this $Y? If so, is that going ...
IRS tax lien over $100,000 on property	10/7/2008
Q: If I am leasing a property for an assisted living business and the IRS decides to "take" the ... A: Linda DaLuz, Thank you for your question. If the IRS takes the property to satisfy their tax lien, ...
Loan to S corp	10/7/2008
Q: Can I write off the loan I made to an S Corp, if the S corp is closing? A: Kevin, Thank you for your question. 1)Can I write off the loan I made to an S Corp, if the S corp ...
tax due after death of wisconsin resident	10/6/2008
Q: Is there an inheritance tax due upon death of mother who passes her entire estate to six children or ... A: Sophie, Thank you for your question. 1)Is there an inheritance tax due? Wisconsin does not have ...
PAYMENT PRIOR TO DIVORCE SETTLEMENT	10/5/2008
Q: I was divorced 6 months ago, but the property settlement has yet to be settled. My family law ... A: Jeff, Thank you for your follow- up question. 1)So am I out of luck? My family law attorney has ...
PAYMENT PRIOR TO DIVORCE SETTLEMENT	10/5/2008
Q: I was divorced 6 months ago, but the property settlement has yet to be settled. My family law ... A: Jeff, Thank you for your follow up question. 1) How do I document or otherwise prove-up that these ...
PAYMENT PRIOR TO DIVORCE SETTLEMENT	10/5/2008
Q: I was divorced 6 months ago, but the property settlement has yet to be settled. My family law ... A: Jeff, Thank you for your question. 1)This has become a significant amount of money, and I was ...
2 state taxes	10/5/2008
Q: I worked in the state of CT from Jan 1-Aug 30. I retained a permenant tax residence in CT. I am now ... A: Cheryl, Thank you for your question Where you are domiciled determines who you report the income ...
independent contractor	10/5/2008
Q: I currently have a full time job where my tax bracket is 35%. I also have a part time job working ... A: Thomas, Thank you for your question. 1)In terms of income tax rates, is the tax rate for my part ...
New baby, should the father and I get married?	10/4/2008
Q: I just had my first child in August 2008, but am not married to the father. He has two (maybe 3) ... A: Heidi, Thank you for your question. 1) I was wondering if it would benefit us to get married so ...
nonresident alient	10/3/2008
Q: My friend lives in Russia (and not a resident of USA)and he would like to buy a residential property ... A: Tatsiana, Thank you for your question. 1)When buying for 100% cash I assume that cash should be ...
401k 10% Tax Penalty	10/2/2008
Q: Is there any discussion in the House/Senate regarding termporarily lifting the 401k early withdrawal ... A: Mark, Thank you for your question. I have not heard of anything like that. Most are 1)removing ...
Partnership Sale - Form 4797	10/2/2008
Q: My questions relate to the Partnership tax forms 4797, 1065 Schedule K, and 1065 Schedule D (?? if ... A: Bill, Thank you for your questions. 1. Am I correct that land and building should be separated on ...
NJ inheritance tax	10/2/2008
Q: My two brothers and I inherited a farm estate in NJ with property estimated to be valued over 2 ... A: Dan, Thank you for your question. Congratulations on joining the farming business. 1)I am ...
Back taxes pd this year.	10/1/2008
Q: I have a fellow who is just now paying the withheld payroll taxes for 03, 04 & 05. He was a ... A: Pam, Thank you for your question. 1)Can he deduct the payments this year? As a schedule C filer, ...
Foreign Interest Tax	9/30/2008
Q: I am looking at opening a savings account at an Irish bank. The Irish bank automatically takes 20% ... A: Sean, Thank you for your question. 1)So my question is, since the Irish government is already ...
Kidde Tax	9/30/2008
Q: I would love some clarification if at all possible. Sorry for the lengthy question. My hubby makes ... A: Kay, Thank you for your question. 1)Since it is a Sub S, we pay our income tax bracket (35%-40%) ...
Capital Gains Taxes	9/30/2008
Q: I have some property that came to me when my mother died. She had written in the deeds to control ... A: Gwin, Thank you for your question. 1)Do I have to pay all of the 15% capital gains tax or will my ...
capital loss on second home	9/30/2008
Q: My husband and I live in Ohio. We buildt a home in a plus 55 community in Arizona and closed on it ... A: Bonnie. Thank you for your question. I'm sorry about your situation. I am also surprized that your ...
fraud? forgery?	9/29/2008
Q: OK HERE IS MY STORY. I RECENTLY MOVED BACK TO MY HOME STATE I GAVE THE IRS MY BROTHERS ADDRESS FOR ... A: Crystal, Thank you for your question. This seems to be a legal issue. I would say if your ...
Married filing jointly?	9/29/2008
Q: My finance and I were wondering about federal returns. He works and I don't. We have a baby. If we ... A: Megan, Thank you for your question. Please note that your filing status depends on whether you ...
House Fire	9/28/2008
Q: Last Feb. we lost our entire house and everything in it to a house fire. We received a settlement ... A: Leanne, Thank you for your question? 1)Are we going to have trouble filing our tax return? I'm ...
Bank deposit interests and G-4 visa holder	9/27/2008
Q: I would like to know if interests earned in a savings account or CD is taxable for a G-4 visa ... A: Alexander, Thank you for your question. 1)if interests earned in a savings account or CD is ...
Proceeds from sale of Personal Property	9/27/2008
Q: Sold part of my land attached to my personal residence in an installment sale. In the agreement, if ... A: Kathryn, Thank you for your question. 1)Where do I report the proceeds? Since there was no sale ...
Owners draw	9/26/2008
Q: I am a business owner who has recently decided to do my own books instead of outsourcing. I have a ... A: Rudy, Thank you for your question. 1)My question is can I use the owners draw account as a capitol ...
city/local/township or school taxes	9/26/2008
Q: are these taxes deductible on federal return? My tax man said no, and I believe it was to the city ... A: Bill, Thank you for your question. According to definition from IRS: There are four types of ...
loss on a real estate sale	9/26/2008
Q: Party a buys a property and immediatly resells to a another party at a loss. Is the loss deductible? ... A: John, Thank you for your question. 1) Party a buys a property and immediately resells to a another ...
ira withdrawl	9/25/2008
Q: May I withdraw any of my ira without penalty after I have reached 55 to pay off my house or fund my ... A: Jim, Thank you for your question. 1)May I withdraw any of my ira without penalty after I have ...
Independent Contractor auto expense follow-up	9/24/2008
Q: My situation is that I maintain a home office but am required to work on site at my current contract ... A: Jerry, Thank you for your question. 1)Is my mileage deductible from my 1099 earnings? If the ...
Taxes on income from property	9/24/2008
Q: Recently,my fiance and I purchased a home in Bluffton,S.C. which we eventually are going to live ... A: Steve, Thank you for your question. 1)Do we have to report an income of 1250 or ...
Self Employment or Employed	9/24/2008
Q: I work at home selling things on the internet. My girlfriend who lives with me is quitting her REAL ... A: Eric, Thank you for your question. 1)My question is how will the taxation work? Will she be my ...
What if landlord does not report rent?	9/23/2008
Q: I will be moving soon into a condo that I am will be renting. This person is essentially looking to ... A: Melissa, Thank you for your question. 1)Since this is an agreement between two people, I am not ...
stock sold numbers to be put on 1040	9/23/2008
Q: We were contacted this year and had to turn in all our Tektronix stock and received a check for the ... A: David, Thank you for your question. 1)We are not sure where or who to go to to get the information ...
Sale of a vacation home	9/23/2008
Q: 1)How do you report the gain on a sale of a vacation home that was only used for personal purposes? ... A: ELI, Thank you for your question. 1) 1)How do you report the gain on a sale of a vacation home ...
Contest Winnings	9/23/2008
Q: I'm on Social Security,SSI, Medicare and Medicaid. I have been entering contests, most with cash ... A: Eliot, Thank you for your question. Winnings are not subject to self employment. It would bring up ...
Promissory Note inheritance - tax question	9/22/2008
Q: The scenario: One of the items in my late father's trust is a promissory note -- payment terms were ... A: Sarah, Thank you for your question. 1)Am I correct in thinking the principal the beneficiaries are ...
joined tax declaration	9/21/2008
Q: My husband's salary is about 200,000. I don't work, our 18- yr old son is in college. In the ... A: Vera, Thank you for your question. 1)Is there any small additional income that I or our son can ...
Condo Association IRS requirements	9/21/2008
Q: Is there any IRS requirement concerning excess operating income due to assessments being higher than ... A: Dave, Thank you for your question. 1)Is there any IRS requirement concerning excess operating ...
Overseas employment	9/21/2008
Q: My daughter is working on a cruise ship as an entertainer. She is being paid in cash with no ... A: Gary, Thank you for your question. 1)What are her tax liabilities and how can we get this cash ...
Minimal tax rate for retired woman	9/20/2008
Q: My 75 year old mother had not filed a tax return for 10 years as she had no taxable income. She ... A: Judith, Thank you for your question. 1)What is the maximum non taxable income? She should have ...
Home Repair expenses	9/20/2008
Q: My house required substantial foundation repairs last year. I paid for these repairs out-of-pocket ... A: Walt, Thank you for your question. 1)Are these expenses eligible for income tax deduction? If this ...
Tax Write off	9/19/2008
Q: I keep a file of all receipts where I think I may be potentially able to do a tax write-off. These ... A: Jeff, Thank you for your question. 1)What are the limitations and general guidelines as to what I ...
social security disability payments	9/19/2008
Q: I just received a lump sum ss disability payment and have to reimburse by LTD carrier. Since I am ... A: Luwana, Thank you for your question. 1)Since I am paying this money to my LTD carrier, will I have ...
GRANDSONS FATHER DESEASED DAUGHTER WAS NEVER MARRIED	9/18/2008
Q: I NEED TO KNOW WHAT MY DAUGHTER NEEDS FOR PAPERWORK TO CLAIM HER BOYFRIENDS TAXES FROM LAST YEAR. ... A: Regina, Thank you for your question. 1)WHAT DOES SHE NEEDS TO CLAIM LAST YEARS TAXES? Is her ...
Co-Own Home	9/18/2008
Q: I am living in Wisconsin and co-own a house with my girlfriend. When we file taxes in 2009, do one ... A: Matt, Thank you for your question. 1)When we file taxes in 2009, do one of us claim the house or ...
Selling a rental at a loss	9/18/2008
Q: I have a non-owner occupied duplex that I trying to sell. I have a potential buyer, however the ... A: Dan, Thank you for your question. 1)Is this consider a "short sale"? When you sell a property for ...
Tax Filing for Year 2007	9/16/2008
Q: I came to USA first time in year 2007 on L1-B VISA and stayed for 4 months (from June 2007 to ... A: Subbarao, Thank you for your follow up questions. 1)It will be better if you can provide some ...
Divorce & mortgage	9/16/2008
Q: I am paying the mortgage on a home that I received as part of a divorce settlement. My ex-husband ... A: Joyce, Thank you for your questions. 1)Since I am the one paying the mortgage every month, can I ...
Child dependency	9/15/2008
Q: i had a family law attny b/c we were in court for modification of child support to get an increase ... A: Karmen, Thank you for the follow up information. I would suggest you speak with a family court ...
Child dependency	9/15/2008
Q: I have a six yr old with a man and we were never married nor lived together. for the past 6yrs i ... A: Karmen, Thank you for your follow up question. 1)I haven't been asked to sign anything either so ...
Child dependency	9/15/2008
Q: I have a six yr old with a man and we were never married nor lived together. for the past 6yrs i ... A: Karmen, Thank you for your question. Unfortunately,the judge must have had compelling evidence to ...
1099A	9/13/2008
Q: I was a bit confuse with the 1099a and there's also these test about insolvency ...let say i have ... A: Flor, Thank you for your follow up question. 1)1099 one the market value is higher than the debt ( ...
1099A	9/13/2008
Q: I was a bit confuse with the 1099a and there's also these test about insolvency ...let say i have ... A: Flor, Thank you for your question. 1)Let say i have fill bankruptcy when i received my 1099a and ...
Form 3115	9/12/2008
Q: I am preparing a form 3115 for unclaimed depreciation. At the same time, I am filing some prior ... A: Warren, Thank you for the information. The article reports about a Revenue Procedure 96-31 which ...
Amateur Investor Question	9/12/2008
Q: Hopefully you can help me out on this, I'm not sure who to ask. I just graduated from college with ... A: Jane, Thank you for your follow-up question. By definition, when ever you share profits, you are ...
Form 3115	9/12/2008
Q: I am preparing a form 3115 for unclaimed depreciation. At the same time, I am filing some prior ... A: Warren, Thank you for your follow-up. I have to tell you, I have been doing taxes for over 25 ...
Amateur Investor Question	9/12/2008
Q: Hopefully you can help me out on this, I'm not sure who to ask. I just graduated from college with ... A: Jane, Thank you for your question. 1)Assuming this is legal and could work, I would get a ...
S-Corportation foreclosure	9/11/2008
Q: I bought a business that lasted only 2.5 years. Like a dummy the sale was set up as a stock purchase ... A: Brian, Thank you for your question. 1)Is there any alternative to not have to claim this as ...
May I claim mileage to and from work?	9/11/2008
Q: I live in Virginia. I work 100 miles one way from home. May I claim the mileage to and from work? ... A: Chandra, Thank you for your question. 1)The IRS is auditing me and I would like to know if I am in ...
Tax Collection	9/11/2008
Q: I understand that the IRS has 10 years to collect taxes owed. If the IRS submits a return in 1998 ... A: Lex, Thank you for your follow up question. 1)Does the clock start ticking as of 1998 when the tax ...
Renting & Owning tax Question	9/11/2008
Q: My wife and I own a condo in Somerville, MA. We have discussed with our parents (whose home is paid ... A: Jason, Thank you for your question. 1)What would the tax implications be in this scenario, ...
Tax Collection	9/10/2008
Q: I understand that the IRS has 10 years to collect taxes owed. If the IRS submits a return in 1998 ... A: Lex, Thank you for your question. 1)If the IRS submits a return in 1998 and I submit a revised ...
S Corp Truck depreciation & expenses	9/10/2008
Q: What is the best way to handle expenses for a truck over 6000 lbs placed in service in 2008 ... A: Mo, Thank you for your question. 1)Does that mean that we will always deduct actual expenses and ...
"value added" co. truck & gas card	9/9/2008
Q: I realize it is the employers responsibility to report personal use of co. vehicle and gas card. ... A: Amber, Thank you for your question. 1)What I am unclear on is whether there is a value for this ...
Massachusetts state taxes	9/9/2008
Q: I''ve been audited by Mass for '05,06 and 07. They've determined that we owe $2700.00. I'm still ... A: Donna, Thank you for your question. 1)Is this so? I guess your CPA is being glib (off the cuff, ...
Form 3115	9/9/2008
Q: I am preparing a form 3115 for unclaimed depreciation. At the same time, I am filing some prior ... A: Warren, Thank you for your question Form 3115 is when you file for a change in accounting method. ...
reduction in salary/claiming dependents	9/9/2008
Q: My husband recently lost his job and is now going to work at a job which pays less than half his old ... A: Laurie, Thank you for your question. 1)What shall we do now do we need to change things and let me ...
1099 hourly emplyee	9/9/2008
Q: my husband is a roofer and is working for a company that gives him a 1099 at the end of the ... A: Lisa, 1)but he is paid an hourly wage at the end of the week. no taxes are taken out on his weekly ...
Roth IRA	9/8/2008
Q: If you sell stock in a Roth IRA and you have a loss can you report the loss on Schedule D? A: Alan, Thank you for your question. 1)If you sell stock in a Roth IRA and you have a loss can you ...
Estate Taxes	9/8/2008
Q: My wife's parents both passed in the last 3 years. With her mothers passing about 7 months ago the ... A: Tim, Thank you for your question. 1)Can you tell me if we have to report this as income to the ...
Inheritance from outside of resident state	9/8/2008
Q: The probate on my mother's estate will pay off soon. She was a resident in Washington. I am a ... A: Eileen, Thank you for your question 1)Will I have to pay any kind of tax be it federal, state, ...
taxes	9/8/2008
Q: what taxes to pay at 70 and spouse is younger ( 53 ) is it true i don't have to pay taxes any ... A: Virginia, Thank you for your question. 1)what taxes to pay at 70 and spouse is younger ( 53 ) ...
Section 121	9/8/2008
Q: I have a question about new 121 rule. I bought a rental house in 1989. If I change it to primary ... A: Linli, Thank you for your question. As long as you meet the 2 years out of the last five years as ...
Minimum taxable income	9/7/2008
Q: I was just hired and I'm trying to figure out whether I will need to pay taxes this year or if I ... A: Daniel, Thanks for your follow up question. 1) Is this correct? Yes Keep in mind you need to ...
sub taxes	9/7/2008
Q: Can a person be 1099'd if they do only labor and used company tools? How can I hire labor help as a ... A: Miles, Thank you for your question. 1)Can a person be 1099'd if they do only labor and used ...
home improvement	9/7/2008
Q: I recently got new paint, new granite countertops, new sinks and faucets installed, as well as new ... A: Andrea, Thank you for your question. 1)What can I count as a deduction when I do my taxes? ...
COD income tax	9/7/2008
Q: What would the federal income tax liability be on my following scenario/rental property never used ... A: Regina, Thank you for your question. 1)will we owe income tax on $215,000? No See Below The ...
is my employer doing right	9/7/2008
Q: has me as an w4 but all my pay is on my commission i pay all my expenses ges car lodging food but i ... A: William, Thank you for your question. 1)i just wonder if i am paying the total what or where is ...
Health Insurance Premiums	9/6/2008
Q: I am self-employed commercial real estate broker in TN. Pay all of my own expenses including health ... A: Don, Thank you for your question. 1)What is the guideline regarding deduction of health insurance ...
Burglary Restitution as deductable charitable donation	9/6/2008
Q: Over 10 years ago my car got vandalized and had substantial damage. The persons (17 and 16 years) ... A: Eghert, Thank you for your question. 1)Is this allowed or from a tax perspective should I ...
Estate trust with rollover IRA	9/6/2008
Q: I am the executor of estate which was left in trust for distribution among brothers and sisters. ... A: Patricia, Thank you for your question. If the participant in the plan was born before Jan 2, ...
Transferring funds from the UK to the USA	9/6/2008
Q: I am an American citizen resident in the UK for the last 30 years. I want to return to the States in ... A: Allan, Thank you for your question. 1)Will I encounter any difficulties or particular tax ...
Mileage for Volunteering	9/5/2008
Q: My wife is an unemployed pastor who volunteers a lot of time (and mileage) as a chaplain. She has ... A: Joe, Thank you for your question. 1)When she was employed as a pastor, was she a W-2 or a 1099? ...
1099	9/5/2008
Q: My son has a job being paid on a 1099 for $10hr now has been asked to also do tech work besides the ... A: Audrey, Thank your for your question. 1) What type of tech work does he do? Its a way the ...
Business Buyout	9/5/2008
Q: I recently asked the following question and received the following answer from an expert now on ... A: Michael, Thank you for your question. 1)Would my capital go up by this? Your capital account ...
mileage write off	9/5/2008
Q: i am a resident of Michigan and work in Indiana. i get 5 days of per diem per week at the allotted ... A: Anthony, Thank you for your follow-up question. Yes I understood that you were referencing two ...
Capital Gains taxes due from investment property	9/4/2008
Q: In February 2008, I sold a condo I had been renting for the past 3 years. I sold it for $110,000 ... A: Glenn, Thank you for your follow up question. In your statement you said: . I sold it for ...
Capital Gains taxes due from investment property	9/4/2008
Q: In February 2008, I sold a condo I had been renting for the past 3 years. I sold it for $110,000 ... A: Glenn, Thank you for your questions. 1)Question #1- What can I deduct from the amount I received? ...
child tax credit	9/4/2008
Q: IN THE CASE WHERE A CUSTODIAL PARENT HAS NOT WORKED THAT TAX YEAR AND THE NON-CUSTODIAL PARENT HAS. ... A: Victor, Thank you for your question. 1)IN OTHER WORDS, DOES THE NON-CUSTODIAL PARENT HAVE THE ...
LLC for a roll over of IRA funds	9/4/2008
Q: I am considering using Guidant Financial to establish a LLC for me to roll over my company IRA stock ... A: Leonard, Thank you for your question. 1) Is there a problem with rolling over my IRA through ...
mileage write off	9/4/2008
Q: i am a resident of Michigan and work in Indiana. i get 5 days of per diem per week at the allotted ... A: Anthony, Thank you for your question. 1)my question is can i write off my mileage to and from ...
Tax Liability for Rental Property Short Sale or Foreclosure	9/3/2008
Q: What would the Federal tax liability be for the following transaction on a rental house never used ... A: Tony, Thank you for your question. Mortgage Balance $240,000 Short Sale ($100,000) ...
LLC filing	9/3/2008
Q: If an LLC is owned by a single member that is NOT an individual, what form would you file for the ... A: Ameet, Thank you for your question. The IRS has yet to come up with a special form for the return ...
W-9 forms	9/3/2008
Q: I am office manager for a company that manufactures spacers and bushings for aircraft and I am ... A: Christy, Thank you for your question. 1)My question is what forms should I have on the customers ...
International Student & Independent contractor	9/3/2008
Q: I am an international student currently taking classes with a J-1 visa at an American university. I ... A: Samuel, Thank you for your follow- up question. 1)I was hoping you could tell me if i am eligible ...
International Student & Independent contractor	9/3/2008
Q: I am an international student currently taking classes with a J-1 visa at an American university. I ... A: Samuel, Thank you for your question. 1)What can I do to handle all my taxes legally, and without ...
Non Compete on sale of business assets	9/2/2008
Q: Is the taxation of the non compete treated differently from a SCorp to CCorp to Sole Prop., to LLC. ... A: Robert, Thank you for your question. 1)Is the taxation of the non compete treated differently ...
does "married filing jointly" take effect after 180 days?	9/2/2008
Q: I am a resident alien (working in the US on a L1 work visa). I was transferred to US in July and ... A: Pankuj, Thank you for your question. 1)i am confused...i tried searching the IRS site for such a ...
Section 195 Election	9/2/2008
Q: Does a separate Section 195 election statement have to be attached to a consolidated return because ... A: Marquita, Thank you for your question. 1)Does a separate Section 195 election statement have to be ...
Tax benefits question	9/1/2008
Q: I am a non-resident alien (on L1 visa) working in Texas. I would like to know if I am eligible to ... A: Karthi, Are you a US citizen? If not , you only report what you earn in the US on Form 1040-NR. ...
realestate tax	9/1/2008
Q: I recently sold 31+ acres to my sister. This property was inherited several years ago. I sold it ... A: Cindy, Thank you for your question. 1)What are my federal income tax responsibilities on this ...
Question about DBA and taxes	9/1/2008
Q: We are sorry, but Mike Wellman wasn't able to answer yourHello Mr. Finn, I live in Massachusetts ... A: Talita, Thank you for your question 1)how I would pay myself, the owner, a "salary" and not be ...
Minimum taxable income	8/31/2008
Q: I was just hired and I'm trying to figure out whether I will need to pay taxes this year or if I ... A: Daniel, Thank you for your question. My question to you is: A) Do your parents claim you as a ...
1099misc from casino promotional winnings	8/31/2008
Q: IRS says I have to pay taxes on these although they are only sometimes cash and also goods and ... A: Sheryll, Thank you for your follow-up question. 1)What is fair market value---only retail? Fair ...
1099misc from casino promotional winnings	8/30/2008
Q: IRS says I have to pay taxes on these although they are only sometimes cash and also goods and ... A: Sheryl, Thank you or your question. According to the IRS web site: Prizes and awards Subject to ...
How far back can they state revenue dept go	8/30/2008
Q: Not long ago I got a letter from the state of Ky saying that I had not paid my 1996 taxes and owed ... A: Richard, Thank you for your question. 1) Can they really do this if I can't find proof of payment? ...
Sale of a home/ Tax question	8/29/2008
Q: I purchased a home in foreclosure for $10,500, and sold it for 50K almost immediately (less than a ... A: Andy, Thank you for your question. If you bought it for $10,500 and sold it for $50,000 , and you ...
unreimbursed employee business	8/29/2008
Q: My sister is an airline personnel, what expenses she can deduct in unreimbursed employee business. A: lla, Thank you for your question. 1)what expenses she can deduct in unreimbursed employee ...
LLC	8/28/2008
Q: If a husband and wife co-own an LLC, do they need a separate tax ID number for the LLC? First I was ... A: Stephanie, 1)If a husband and wife co-own an LLC, do they need a separate tax ID number for the ...
tax deduction for child	8/28/2008
Q: If a divorced couple with 2 children each claim 1 on their taxes and the oldest went to collage this ... A: Mary, Thank you for your question. 1)If a divorced couple with 2 children each claim 1 on their ...
Claim for unreported income	8/28/2008
Q: I have received a letter form the IRS addressed to my mother with a claim for unreported income from ... A: John, Thank you for the additional information. The 1099-C should have been picked up on her 2006 ...
Rental income	8/28/2008
Q: I have a rental property that is going to be vacant for a few months this year. Can I deduct the ... A: Roger, Thank you for your question. 1)Can I deduct the lost rent as a loss on my taxes? No. ...
Short Sale - Debt forgiveness	8/27/2008
Q: In August 2008 I sold a house (which was my primary residence from Jan - Sept 2007). The sale was a ... A: Dawn, Thank you for your question. 1)Can you please tell me if there are tax ramifications for ...
Claim for unreported income	8/27/2008
Q: I have received a letter form the IRS addressed to my mother with a claim for unreported income from ... A: John, 1)my Question is who is liable for this?? Thank you for your question. A 1099-C usually has ...
CD Beneficiary	8/26/2008
Q: My grandmother in OH passed away last month. My uncle is executor of the estate. He called me and ... A: Rob. Thank you for your question. 1)but what is going to happen to me tax-wise? I am in KY. ...
Federal EIN Number Not Going to Be Used Yet...	8/26/2008
Q: My wife and I and 3 others were expecting to start a business this fall. We began preparing the ... A: Edward, Thank you for your question. Is this business a corporation with stock being issued or a ...
as a real estate professional, how do I deduct passive rental losses?	8/26/2008
Q: I qualify as a real estate professional except for the 751 hr. minimum and I probably qualify on ... A: Charlie, Thank you for your question. 1)If I qualify, where and how do I deduct my rental ...
childcare provider	8/26/2008
Q: I am an unlicensed childcare provider caring for 2 siblings what do i need to do to make sure that i ... A: Shaina, Thank you for your question. 1)what do i need to do to make sure that i am paying the ...
balance sheet and taxes	8/25/2008
Q: I am working on 07 taxes. i am accrual method. s corp. my balance sheet is out of balance by 2400.00 ... A: Julie Thank you for your question. 1)how do i reconcile my balance sheet to balance at this point. ...
Personal use of company vehicle	8/25/2008
Q: I have a company car and need to log my business v. personal miles. How do I determine personal ... A: Pamela, Thank you for your question. 1) How do I determine personal use? Round trip from your ...
capital gains taxes	8/25/2008
Q: I have an opportunity to sell a minority stock holding in a private corporation which has received ... A: Frankj. Thank you for your question. 1)I am assuming that no immediate capital gains tax is due ...
FEDERAL TAX	8/25/2008
Q: ON MY EARNINGS STATEMENT FROM MY EMPLOYER,.IT SHOWS TAX DEDUCTIONS. . FED WITHHOLDING'FED.$ ... A: Toni, Thank you for your question. 1)COULD YOU PLEASE EXPLAIN TO ME WHAT IS A "FEDERAL TAXABLE ...
401k withdrawl	8/25/2008
Q: I left US in 2002 and settled in India. I have never visited US after 2002 and i need to withdraw ... A: Rajini, Thank you for your questions. First of all, are you a US Citizen living abroad? 1) It ...
Per DiemHow long may i be paid per diem?	8/25/2008
Q: I live in Charlotte, NC and work in Raleigh, NC. I keep an apartment in Raleigh where I reside, ... A: Wesley, Thank you for your question. 1)How long may I be paid this per diem? One of my ...
Commute Mileage	8/25/2008
Q: The distance to my office is 100 miles a day round trip. I am an end user that shows products to ... A: Kevin, Thank you for your question. 1)If I do not go to the office first how do I calculate my ...
Newly Married	8/24/2008
Q: 1) My new husband and I both refiled our W4's with our jobs. We filed as married (withholding at a ... A: Kristin. Thank you for your follow up question. Since I prepare income tax returns myself, I would ...
Residency Requirements	8/24/2008
Q: If I place my house in SC in my wifes name solely.....and move to a state that does not tax federal ... A: Matthew, Thank you for your question. If you put the house in your wife's name, then it becomes her ...
pipeline damages/income/property taxes	8/24/2008
Q: our family has received damages from several pipeline companies placing pipelines across our farm. ... A: Jack , Thank you for your follow up information. If they gave you a 1099 for only the $100's of ...
Newly Married	8/24/2008
Q: 1) My new husband and I both refiled our W4's with our jobs. We filed as married (withholding at a ... A: Kristin, Thank you for your questions. I see you have a lot of them. Let take each one separately. ...
"tax loss" on a corporation de-merger	8/23/2008
Q: The de-merger was on a specific date. The stock (foreign) is listed on the NYSE. On the de-merger ... A: Ray, Thank you for your question. 1)Can I take tax loss on the difference of value of stock ...
pipeline damages/income/property taxes	8/23/2008
Q: our family has received damages from several pipeline companies placing pipelines across our farm. ... A: Jack, Thank you for your follow up question. This is what you received: 1) They paid you on a ...
pipeline damages/income/property taxes	8/23/2008
Q: our family has received damages from several pipeline companies placing pipelines across our farm. ... A: Jack, 1)Can we amend previous tax filings to recover money we shouldn't have paid? I am a little ...
Possibly under the table	8/23/2008
Q: My misses is working for a friend that has a dog grooming and kennel company, it is a two person ... A: Michael, Thank you for your question. 1)How does she claim this and are the monies traceable? If ...
Earned Time Off Payout	8/23/2008
Q: I am going to take a payout on my ETO. My question is if I raise my withholding at state and fed ... A: Shirley, Thank you for your question. 1)My question is if I raise my withholding at state and fed ...
Per Diem	8/22/2008
Q: What is the allowable minimal amount of time for a per diem break that is acceptable to the IRS? ... A: Luis, Thank you for your follow up question. It sounds like they maybe paying you in excess of ...
Per Diem	8/22/2008
Q: What is the allowable minimal amount of time for a per diem break that is acceptable to the IRS? A: Luis, Thank you for your question. 1)What is the allowable minimal amount of time for a per diem ...
1099 consultant tax questions	8/22/2008
Q: As a 1099 consultant working for a state agency what is the maximum that I can write off for the ... A: Sonya, Thank you for your question. 1)What is the maximum that I can write off The answer is ...
precentage of taxes per job	8/21/2008
Q: We live in Florida and own a incorporated business - I would like to know what percent per job ... A: Stephanie, Thank you for your question. 1)I would like to know what percent per job should I ...
Early withdrawal from my 401(k)	8/21/2008
Q: I just asked if 20% is the correct early withdrawal fee, but now know that it is 10%. Never mind! I ... A: Loretta, Thank you for your question. 1)My next question is if the 20 percentt axes are taken ...
401(k) early withdrawal	8/21/2008
Q: I am in the process of early withdrawal from my 401(k) plan. In the past, I was told that there ... A: Loretta, Thank you for your question. 1)Can they do that? Yes, they are just following the law. ...
owed back income tax	8/20/2008
Q: I was just informed that I owe personal back taxes from 2005. {that is something my tax accountant ... A: Robert, Thank you for your question. 1)I have a s corp business can they attach my business ...
1099 Tax form and liability	8/20/2008
Q: Good afternoon Glen, I am working as an independent contractor in Chicago, Illinois for the past 4 ... A: Jamie, Thank you for your question. 1)Will you please tell me how I can figure out what percentage ...
Loan	8/20/2008
Q: I took a 25,000 loan out on my credit card. Since this was my limit on my card the bank was able to ... A: Jay, Thank you for your question. 1)I am now worried how this is going to affect my tax return and ...
Proving Insolvency for Short Sale	8/20/2008
Q: Trying to figure out what my Networth is - Do I have to include my 401K Plan retirement money in the ... A: Liza, Thank you for your question. If you are preparing a net worth statement, you list all your ...
Changing from sole proprietor to llc	8/20/2008
Q: My other half is considering forming an LLC--he is a general contractor and is currently a sole ... A: Karen, Thank you for your follow up question. Since a single member LLC operates like a sole ...
Sub-contract employee	8/19/2008
Q: I have been recently hired at a small business. My employer has made it clear that he cannot afford ... A: Jessica, Thank you for your question. If you were on a W-2 they would withhold Fica, Fed, ...
Changing from sole proprietor to llc	8/19/2008
Q: My other half is considering forming an LLC--he is a general contractor and is currently a sole ... A: Karen, Thank you for your question. In an LLC how does he pay himself? If he becomes a single ...
Income tax question	8/19/2008
Q: n 2006 my wife and I took an early distribution from an anuity to avoid foreclosure n our home. I ... A: Kevin, Thank you for your question. 1)I heard somewhere that if the early distribution was to ...
capital gains on spec home	8/19/2008
Q: My wife and I bought 40 acres of land in 1999, in 2004 we put up a log building and are just now ... A: Joe, Thank you for your question. 1)What is our best options to avoid unnecessary capital gains ...
Tax Filing for Year 2007	8/19/2008
Q: I came to USA first time in year 2007 on L1-B VISA and stayed for 4 months (from June 2007 to ... A: Subbarao, Thank you for your follow-up question. 1)How can i calculate the tax returns with 1040NR ...
Head of household	8/18/2008
Q: "I moved out of my house in November of 2005. My wife was going to college and working part time. ... A: Kevin, Thank you for your question. 1) If we had all of our money going into a joint account for ...
Stipend and taxes	8/18/2008
Q: My daughter started a fellowship at the end of July for which she is payed a weekly stipend of $150. ... A: Franny, Thank you for your question. 1)Does she have to file quarterly returns and pay her share ...
Taxing intern stipends	8/18/2008
Q: s income tax the same for stipends as it is for salaried positions? In other word, does an intern ... A: Maya, Thank you for your question. 1)In other word, does an intern earning a stipend get the same ...
Capital Gains	8/17/2008
Q: I am a Realtor. I have a seller who is trying to sell her home. IN January it will be five years ... A: Kristi, Thank you for your question. 1) Is there a time limit when the $500,000 tax free capital ...
capital gains for elderly	8/16/2008
Q: My mother is 72, father 73. They want to sell a condo they have had and rented up until 1 and 1/2 ... A: Sheila, Thank you for the question. 1)Will they have to pay capital gains ?: Since this is ...
taxes	8/15/2008
Q: I will be making less thatn 3,400 this year and I am a fulltime college student. My parents still ... A: Jenna, Thank you for your question. 1)Am I just being unrealistic, or is there some tax legality ...
SEP IRA	8/14/2008
Q: I have a SEP IRA from the company I work for. However, they now offer a 401K plan that I ... A: Karen, Thank you for your question. 1)What should I do with the SEP IRA? I would say leave it ...
Property Tax	8/14/2008
Q: I am selling a primary residence with 105 acres. This is a family farm that has not had any farm ... A: Larry, Thank you for your question. 1)Will the sale of the house and acreage all be tax exempt ...
Rent and taxes.	8/14/2008
Q: Hoping you can settle a debate. My folks own a house that they've been renting to me and a friend ... A: Mike, Thank you for your question. 1) My folks would like to charge me less rent for the place, ...
Investment Property Sale - Capital Gain	8/13/2008
Q: I own a rental property. A lein has been put on it because of a judgement passed against a joint ... A: Gil, Thank you for your question. 1)The property has appreciated. If I sell it, would I have to ...
Taxes	8/13/2008
Q: If I began working in August and stayed on my job through December, can I still file a tax return? ... A: Nicole, Thank you for your question. If you worked 5 months , and your income is a certain level, ...
Primary placement spouse claiming all children	8/12/2008
Q: I live in Wisconsin and have 8-year-old twins. A friend has just informed me that because I have ... A: Molly, Thank you for your question. 1) Is this true.........that I am able legally to claim both ...
Non resident alien tax	8/12/2008
Q: My husband and I are going through a divorce. I gifted him 109,000 as a downpayment on a property ... A: Maria, Thank you for your question. If part of your divorce settlement included a payment of ...
Tax Law - Gifting to Non-dependent children	8/10/2008
Q: If we pay off our non-dependent child's education loans in one lump sum to avoid interest, can we ... A: Vicki, You can gift your child's education loan of $12000. This would be a gift to your son and ...
IRA withdrawl and taxes	8/10/2008
Q: I am permanently disabled. I am 62 years old. I would like to start using some of the money in my ... A: John, Thank you for your question. 1)Can you tell me what percentage the Federal Government will ...
Federal and NC state tax for contract labor	8/9/2008
Q: I work contract labor for several places. How do I pay the federal tax and NC state tax on the ... A: Linda, Thank you for your follow up question. 1)I'm still not sure when to pay my self employment ...
Tax Filing for Year 2007	8/8/2008
Q: I came to USA first time in year 2007 on L1-B VISA and stayed for 4 months (from June 2007 to ... A: Subbarao, Thank you for your question. 1)i come to know that i have to file 1040NR or 1040NR-EZ ...
Gambling/gaming taxes	8/7/2008
Q: Last year i won about 2500 from online gaming sites and claimed that on my taxes. But this year im ... A: Rich, Thank you for your question. 1)If i continue to win at the site i have been successful what ...
LIFE INSURANCE TAXES	8/7/2008
Q: 00 I was wonder is there a tax on cash value which is 2,000 Thank you Carolyn ANSWER: Carolyn, Hi. ... A: Carolyn, Thank you for your follow up. 1)And i was thinking about getting a loan it sounds like ...
Taxable Legal Plan Fringe Benefit	8/7/2008
Q: A friend of mine is a widow receiving a UAW pension. She showed me a letter from Chrysler informing ... A: Alan, Thank you for your kind words. Thank you also for your follow-up question. 1)Does the ...
LIFE INSURANCE TAXES	8/7/2008
Q: 00 I was wonder is there a tax on cash value which is 2,000 Thank you Carolyn A: Carolyn, Hi. Thank you for your question. 1)I was wonder is there a tax on cash value which is ...
loan from relatives	8/6/2008
Q: Looking for my corporation to borrow $500,000 from wife's relatives, non us citizens, to purchase a ... A: Thomas, Thank you for your follow-up question. 1)They live in Taiwan and don't come to US so I ...
Reguarding the rules on claiming dependants	8/6/2008
Q: I want to know if there is a form or something that i can complete that will keep my mother from ... A: Lucius, Thank you for your question. That's a good one. Unfortunately, the IRS has not addressed ...
Taxable Legal Plan Fringe Benefit	8/5/2008
Q: A friend of mine is a widow receiving a UAW pension. She showed me a letter from Chrysler informing ... A: Alan, Thank you for your question. I do not know why the prepaid legal benefits for your plan are ...
Tax	8/5/2008
Q: What is the Inheritance tax rate state of Ohio? A: Rogert, Thank you for your question. According to the Retirement Living Information Center's web ...
Debt Forgiveness Act	8/5/2008
Q: We have a house in Las Vegas. We lived in it for 2 years and because of job transfer moved out of ... A: Candice, Thank you for your follow up question. 1)We lived there for 2 years but we have rented ...
loan from relatives	8/5/2008
Q: Looking for my corporation to borrow $500,000 from wife's relatives, non us citizens, to purchase a ... A: Thomas, Thank you for your questions. 1)Do I have to 1) report the interest to them on a 1099? ...
Debt Forgiveness Act	8/4/2008
Q: We have a house in Las Vegas. We lived in it for 2 years and because of job transfer moved out of ... A: Candice, Thank you for your questions. 1)We can not do it any longer and have it up for short ...
FEDERAL HOUSING TAX CREDIT	8/4/2008
Q: "WA State grandson married last week. No $ so we financed mobile home for $41K. He'll make monthly ... A: Joan, Thank you for your follow up question. No, I did not know that the mobile home was invented ...
deductions	8/3/2008
Q: How many years after you start your small business (a sole proprietorship) does the IRS give you to ... A: Sir, Thank you for your question. 1)How many years after you start your small business (a sole ...
FEDERAL HOUSING TAX CREDIT	8/3/2008
Q: "WA State grandson married last week. No $ so we financed mobile home for $41K. He'll make monthly ... A: Joan, Thank you for your question. 1)Do they qualify for the new Housing Tax Credit ? Its too ...
Rental Property - Mid year	8/1/2008
Q: I just moved out of my primary residence in order to rent it out (July 21, 2008). I'm wondering if ... A: Jodi, Thank you for your question. 1) I'm wondering if I can claim the property as a rental ...
Tax Exempt	8/1/2008
Q: First off, thank you for your time. I am a civilian contrator deployed to Iraq for the first time. ... A: Michele, Thank you for your questions. Your dates were a little confusing, but I think I have it ...
investment income & expenses	7/31/2008
Q: Please explain where, if at all, I put investment expenses. First of all, this is a lot where it ... A: Sandi, Thank you for your question. Investment expenses can be identified as investment interest ...
tax question	7/31/2008
Q: I have a 401k and a small amount of stock, I am interested in how I am going to be taxed when I am ... A: Doug, Thank you for your question. 1)I'm interested in how I am going to be taxed when I am old ...
Gift Tax--Form 709	7/31/2008
Q: My dad gave me $25,000 in July 2007 to help with buying a house. He set up the gift as $12,500 from ... A: Tony, Thank you for your follow up question. You should just get your dad to write a letter ...
contest winnings = income?	7/31/2008
Q: I am a stay-at-home-Dad and I have been winning some money lately by entering online logo design ... A: Wayne, Thank you for your follow up question. Just because you think its a hobby, should not be ...
contest winnings = income?	7/30/2008
Q: I am a stay-at-home-Dad and I have been winning some money lately by entering online logo design ... A: Wayne, Thank you for your question. 1)If I win over $600 do we have to claim this as income? (My ...
Gift Tax--Form 709	7/30/2008
Q: My dad gave me $25,000 in July 2007 to help with buying a house. He set up the gift as $12,500 from ... A: Tony, Thank you for your question. In 2007, you dad and mom can gift $24000.00 a year to you and ...
amending married seperate to married joint	7/29/2008
Q: or the 2005 tax year my wife and I did our taxes for the first time using turbo tax and we filed ... A: Jermaine, Thank you for your1)Can we do an amendment for 2005 and change to married joint? The ...
sale of 1/2 of house to spouse	7/29/2008
Q: My wife and I will have a property settlement agreement drafted next week. She wants the house. I ... A: Scott, Thank you for your question. 1)Can I sell my 1/2 share in the house to her now, use my ...
depreciating an apartment in an owner-occupied 2-family house	7/29/2008
Q: I just bought and live in a 2-family house, and I have a question about how I will deduct expenses ... A: Jane, Thank you for your question. 1) Do I deduct half since there are 2 apartments in the ...
SEP IRA	7/28/2008
Q: My husband is a real estate broker. He form a S corp and he is the only employee. In 2007 the corp ... A: Yvonne, Thank you for your question. 1)Can the corp contribute to a SEP IRA for him even he has ...
Taxes on paying for yard work?	7/27/2008
Q: My husband and I are going to pay somebody to do a variety of different odd jobs throughout the ... A: Wendy, Thank you for your question. 1)Do we have to pay taxes on what we pay him? Technically, ...
Filing A Return	7/26/2008
Q: I asked a friend of mine to do my taxes for me, but I believe that they did not. Is there a site ... A: Diana, If someone filed your return on your behalf , they still need to get your signature for ...
Return to Job market as a Private Contractor	7/25/2008
Q: Mr. Schnabel, I am a retiree returning to the job market as a private contractor. My question is ... A: Robert, Thank you for your question. 1)My question is how do I file for Social Security, ...
taxed too much money on military severance pay	7/24/2008
Q: I received a severance pay from the military for being medically discharged, and i thought that ... A: Ronald, Thank you for your question. By law, unless the military has their own set of rules, if ...
Physical Presence Test	7/23/2008
Q: I am a US citizen, physically in Hong Kong since Nov 07. I am planning to go to US from 11/29/08 - ... A: Samuel, Thank you for your follow up. 1)so I can exclude the full 85700. Is this correct? ...
Tax Withholding	7/23/2008
Q: I am paid a regular salary and then paid a monthly bonus that seems to get taxed more or more ... A: Ryan, Thank you for your question. 1)Is this income considered "luxury" or do they just withhold ...
ebay earnings	7/22/2008
Q: My husband occasionally buys used items at thrift stores (ie. books, hobby supplies, electronics) ... A: L, Thank you for your follow up question. 1)Is there a minimum amount of money earned before ...
Personal miles/company truck	7/22/2008
Q: First of all, thank you for this service that you provide. My company is making sure that we are ... A: Steve, Thank you for your question. Your employer is correct. That is why most people first go ...
Physical Presence Test	7/22/2008
Q: I am a US citizen, physically in Hong Kong since Nov 07. I am planning to go to US from 11/29/08 - ... A: Samuel, Thank you for your question. In order to qualify for the tax benefits available (IRS ...
selfemp	7/22/2008
Q: if you go selfemp and you pay selfemp taxes does this help you when you retire or do you need to do ... A: Grace, Thank you for your question. 1)if you go selfemp and you pay selfemp taxes does this help ...
My foreclosed House and Taxes	7/21/2008
Q: If I have foreclosed on my house, will the still take the taxes out. If so can I start paying on it ... A: Bianca, Thank you for your question. If they foreclosed on your property, then they took back the ...
Taxation of retirement funds	7/21/2008
Q: I am leaving my company in Switzerland and moving to California,USA .What happens to my Swiss ... A: Ugur, Thank you for your follow up question. 1)Which date would be important for " physical ...
Taxation of retirement funds	7/21/2008
Q: I am leaving my company in Switzerland and moving to California,USA .What happens to my Swiss ... A: Ugur, Thank you for your follow up question. As your company stated. they want you to transfer ...
Donations	7/21/2008
Q: We are a corporation and have a vehicle that is broken we would like to know if we donate it to an ... A: Stella, Thank you for your question . 1)if we donate it to an employee can we write it off in ...
How To Report Lease Option Down Payment	7/20/2008
Q: I bought a new home and immediately rented/sold it as a rent to buy or lease option. The renters ... A: David, Thank you for you question. 1)How do I report the down payment income on my taxes for a ...
ebay earnings	7/20/2008
Q: My husband occasionally buys used items at thrift stores (ie. books, hobby supplies, electronics) ... A: L, Thank you for your question. A business does not have to be "official " in order to be a ...
Married filing separately for expat with foreign spouse?	7/19/2008
Q: This question is about 2008 taxes. I'm a US citizen, and my husband is Japanese. He worked in the ... A: Amy, Thank you for you question. 1) My question for 2008 is: would our taxes be lower if we ...
Taxation of retirement funds	7/18/2008
Q: I am leaving my company in Switzerland and moving to California,USA .What happens to my Swiss ... A: Ugur, Thank you for your question. 1)What happens to my Swiss retirement funds savings if I ...
Separated Tax Filing	7/18/2008
Q: My wife and I may separate. One of our biggest issues is the way she spends money. She owns her own ... A: Jack, Thank you for your question. Just a note, why did she not incorporate if the business was ...
per diem	7/17/2008
Q: I am an independent contractor working on a long term project. How long can I remain on this job ... A: Mike, Thank you for your question. As an independent contractor, per diem becomes subject to ...
unreimbursed expenses from employer bankruptcy	7/17/2008
Q: My husband worked for a company that reimbursed his expenses (gas, etc.; he was in sales). He used ... A: Rebecca, Thank you for your question. He should use Form 2106 to claim business expenses. There ...
Gift Taxes	7/17/2008
Q: My Mother in Law wants to gift her three children $10,000 each, i understand from your answer to the ... A: David, Thank you for your question. 1)My question is if there is a standard form that should be ...
social security	7/16/2008
Q: This is the first year I'm receiving social security My business failed and my only income is social ... A: Lisa, Thank you for your question. Since your only source of income is $1400 per month, you will ...
Buying house tax issues	7/15/2008
Q: My mom (85) lives in an apartment and is considering buying an investment house (foreclosure). She ... A: Pam, Thank you for your question. 1)What issues will this present for her income taxes, etc. If ...
Per Diem being taxed	7/13/2008
Q: I am an independant contractor working in the oil and gas industry for 1 year. When I had my taxes ... A: Kimberly, Thank you for your question. If you were an independent contractor and they paid you on ...
Federal and NC state tax for contract labor	7/13/2008
Q: I work contract labor for several places. How do I pay the federal tax and NC state tax on the ... A: Linda, 1)How do I pay the federal tax and NC state tax on the money I make. Are there any other ...
Pay tuition from IRA	7/11/2008
Q: I hope you can answer two more. 1. Is it true that if he pays the tuition directly from TIAA ... A: Diana, Thank you for your questions. 1)How do you know the money count as principle or gain if you ...
1099 or gift tax claim?	7/11/2008
Q: Things went sout between my boyfriend and I. While we were dating he put a down payment on my car ... A: Jane, Thank you for your question. 1)Can my boyfriend file a 1099 or gift tax return to try to get ...
Pay tuition from IRA	7/11/2008
Q: I hope you can answer two more. 1. Is it true that if he pays the tuition directly from TIAA ... A: Diana, Thank you for your follow-up questions. 1)1. Is it true that if he pays the tuition ...
tax laws, 1099	7/10/2008
Q: I worked for someone who gave me a set salary. I had set hours, and a place to work from (desk, ... A: Avraham, Thank you for your question. Your employer should know better, If he paid you on a W-2 and ...
charitable contributions	7/10/2008
Q: PS - Income is about $40,000, 2 dependents, one over 65, and net taxable income about $8000. Thanks. A: Frank, Thank you for your question. 1)what is the largest amount of charitable contributions you ...
land	7/9/2008
Q: I have just been quick deeded two lots in Bend, Oregon worth about $85,000.00 each. -Do I need to ... A: Debbie. Thank you for your questions. 1)Do I need to record them in any way on my taxes? Land ...
MBA Tuition	7/8/2008
Q: I was laid-off approximately 3 months ago as a result of an office closure and have decided to go ... A: Sam, Thank you for your question. 1) What is the best way for me to receive this payment for tax ...
1040NR submitted by former employer	7/8/2008
Q: I will explain my situation, I came to the US in 2005 on a L-1 visa on company business and was in ... A: Dean, Thank you for your follow up question. So the question should be , were you physically ...
1040NR submitted by former employer	7/8/2008
Q: I will explain my situation, I came to the US in 2005 on a L-1 visa on company business and was in ... A: Dean, Thank you for your question. I'm a little confused here. On one hand you said that you were ...
TAX - FOREIGN?	7/7/2008
Q: I am not a US citizen and not a us resident. I am from Argentina and I have an online business ... A: Ignacio, Thank you for your question. You can incorporate in any State of the United States. If you ...
Stimulus Offset	7/7/2008
Q: My husband and I were required to file form 8379 (injured spouse allocation) with our 2007 tax ... A: Angela, Thank you for your question. On your 2007 return, did they give your husband back his share ...
Withdraw money from IRA	7/7/2008
Q: My ex-husband used teach in the US ten years ago. He still has his TIAA account in the US after he ... A: Diana, Thank you for your questions. 1. Does he need to pay the Federal Income Tax for the money ...
interest paid on undeveloped land	7/6/2008
Q: My husband and I are buying land on which to retire in a few years. This is undeveloped land ie: no ... A: Emma, Thank you for your question. Usually when you have undeveloped land , it all has to do with ...
Gift Tax	7/5/2008
Q: My mother-in-law would like to gift my wife and me $24,000 by check(s) this year. To avoid payment ... A: Harris, I hope you had a good July 4th. Thank you for your question. Your mother in law can gift ...
moving from one state to another mid year	7/4/2008
Q: I am considering moving from Texas where there is no state income tax to upstate new york, ... A: Michelle, Thank you for your follow up question. 1)so are you saying only those 2 months of ...
capital gains tax	7/3/2008
Q: What are capital gains tax implications (difference) between receiving $200,000 lump sum at time of ... A: Richard, Thank you for your follow up. I try to help if I can. Tax laws can get tricky. I ...
capital gains tax	7/3/2008
Q: What are capital gains tax implications (difference) between receiving $200,000 lump sum at time of ... A: Richard, Thank you for your follow up. Explain to me what you mean as to "contact for deed"? Is ...
capital gains tax	7/3/2008
Q: What are capital gains tax implications (difference) between receiving $200,000 lump sum at time of ... A: Richard, Thank you for your question. If I understand your question, you are posing two ...
allocating mortgage deduction.	7/3/2008
Q: We vacated our home(owner occupied) and rented it out in September 2007. How shall I treat the ... A: Gino, Thank you for your question. If you rented out your house in September 2007, then, in effect, ...
Mileage	7/2/2008
Q: My company pays me 38 cents a mile. Can you write off mileage on your personal taxes even if your ... A: Robert, Thank you for your question. You can take unreimbursed business expenses using form 2106 , ...
per diem	7/2/2008
Q: My wife and I became team Over The Road drivers. When employed we were automatically enrolled for ... A: John, Thank you for your question. I checked my previous answer and I'm not sure if you got a ...
pipeline easement	7/1/2008
Q: Gas Co. is paying me for a permanent easement across some ag land I own in Texas. Is the easement ... A: Tim, Thank you for your question. I found something that happens to farmers. See below: If you ...
foreign travel per diem	7/1/2008
Q: What is the food per diem for work related travel in Italy? A: Thomas, Thank you for your question. If you go to The US Dept of State web site. Select your ...
Inhertance tax	6/30/2008
Q: Glenn My father passed 12/03 in Illinois. I reside in NC. I was so stressed that I immediately got ... A: Synetra, Thank you for your question. When your father passed on in 12/03. There was a value ...
Childcare tax laws	6/30/2008
Q: I am going to begin staying at home and will watch my child plus one other. Now it will only be ... A: Heather, Thank you for your question. 1) Now it will only be one outside child, but how does taxes ...
Converting from a Sch C to a LLC	6/30/2008
Q: I have operated a mini storage business as a Sch. C business for several years. I wanted to convert ... A: Frank, Thank you for your questions. First of all the formula is assets less liability equals net ...
How much do I take out of each check?	6/29/2008
Q: I am an independent contractor and accept assignments for home health care. I will receive a 1099 at ... A: Sherri, Thank you for your question. SInce you will be an independent contractor, then you will be ...
sale of 1031 converted to personal use	6/28/2008
Q: We are selling a 1031 exchange that we converted to personal use. We owned it over 5 years and ... A: Marj, Thank you for your follow up question. 1)One of the questions is "I have not used any ...
sale of 1031 converted to personal use	6/28/2008
Q: We are selling a 1031 exchange that we converted to personal use. We owned it over 5 years and ... A: Marj, Thank you for your question. If you did a 1031 exchange , all you did was take the gain and ...
Double- Taxation Treaty	6/27/2008
Q: Glenn, I am a U.S. citizen as well as a Russian citizen. I currently reside in the United States. ... A: Vitaliy, Thank you for your question. If you are a US citizen you must report all sources of income ...
taxes for college student	6/27/2008
Q: My son is 18 and going to college this summer. He never worked before. If he'll do some summer job- ... A: Alia, Thank you for your question. 1)If he'll do some summer job- does he have to file separate ...
Reverse Mortgage Interest Deduction	6/27/2008
Q: Is Reverse Mortgage Interest, when paid, subject to any limits, such as home equity loans on ... A: Greg, Thank you for your question, According to a very good article from the journal of ...
Sale of Real Estate	6/26/2008
Q: I have read IRS publication 544 concerning the sale of business assets and allocating sales proceeds ... A: Ed, Thank you for your question. 1)how do you allocate sales proceeds for the sale of rental ...
over paid taxes	6/26/2008
Q: I FEEL I'VE BEEN OVER CHARGED TAXES, I NEED TO KNOW ALL THE % OF EACH CATEGORIES/EXAMPLE MEDICARE ? ... A: Jab, Thank you for your question. First of all, what do you mean by being overcharged taxes? The ...
Taxes on a house left to you at death	6/25/2008
Q: What are the taxes like in CA when a house is left to you in a will? Value approx $450,000. Thank ... A: Reana, I do not understand your question. Are you going to sell it and you want to know what the ...
Tax deductibility of Divorce Attorney Fees	6/25/2008
Q: I ran up $30,000 in legal fees for my divorce, which included a trial on separation dates, and a ... A: Nellie, Thank you for your follow up: I looked it up in the regs. TITLE 26--INTERNAL REVENUE ...
foreign earned income exclusion	6/25/2008
Q: I am a U.S. citizen working for a U.S. firm in a foreign country. I moved to Japan in October 2006, ... A: Chris, Thank you for your question. To qualify for the tax benefits on form 2553 you need: ...
Tax deductibility of Divorce Attorney Fees	6/25/2008
Q: I ran up $30,000 in legal fees for my divorce, which included a trial on separation dates, and a ... A: Nellie, Thank you for your question. 1)Based on my limited knowledge, I believe that the portion ...
Per Diem	6/25/2008
Q: My wife and I became team OTR drivers. When employed we were automatically enrolled for per diem. ... A: John, Thank you for your follow-up. I guess that means that you and your wife drive trucks. Per ...
estimated federal taxes	6/24/2008
Q: What can I estimate on federal taxes on a taxable contribution from my retirement fund? ANSWER: ... A: Kay, Thank you for your follow up question. If you default on the loan, most likely they will treat ...
estimated federal taxes	6/24/2008
Q: What can I estimate on federal taxes on a taxable contribution from my retirement fund? A: Kay, Thank you for your question. First I need to know if when you take this money from your ...
Fed. tax on disability retirement	6/24/2008
Q: My husband retired from the State (VA) on disability, we've been paying federal taxes on this income ... A: Theresa, Thank you for your question. According to the IRS web site: I am receiving long-term ...
Per Diem	6/23/2008
Q: My wife and I became team OTR drivers. When employed we were automatically enrolled for per diem. ... A: John, Thank you for your question. To better understand this. can you enlighten me , a simple ...
Changing filing status	6/23/2008
Q: Will I pay more if I amend from Head of Household to Married filing Seperately. I made 29,000 last ... A: Lynne, Thank you for your question. Yes , you will need to file a 1040X and your respective state ...
taxes on vacation pay vacation	6/23/2008
Q: What is the tax rate for vacation pay? A: Wendy, Thank you for your question. Vacation pay has no different tax rate then regular pay. They ...
income vs bonus	6/22/2008
Q: I am a single person making $60,500 a year. I was offered an additional $12,000 from my company to ... A: Valarie, Thank you for your follow-up question. 1)I understand bonus are taxed at a higher rate ...
income vs bonus	6/22/2008
Q: I am a single person making $60,500 a year. I was offered an additional $12,000 from my company to ... A: Valarie, Thank you for your question. For tax purposes if you take the bonus over 12 months, then ...
selling a business	6/21/2008
Q: Last year I didn't file any income tax because my income was below the "required limit." This year, ... A: Richard, Thank you for your follow-up. 1)What assets get capital gain treatment? According to ...
Rental Real Estate Sale	6/21/2008
Q: My Aunt purchased a home that my family has lived in for 6 years. She has never lived in the home. ... A: Liz, thank you for your question. If your Aunt owns the home, then you were the tenants. If you ...
being self employed and really knowing what we make	6/21/2008
Q: We are self-employed. I have never been sure of our TRUE amount of income. What line do we need to ... A: Cindy, Thank you for your question. Your true income would be the total income on your tax return. ...
Capital gains on your second.	6/21/2008
Q: How many months of the year do you need to live in the home before its considered a year lived in ... A: Jon, Thank you for your question. The section 212 exclusion applies only to sale of your principal ...
selling a business	6/21/2008
Q: Last year I didn't file any income tax because my income was below the "required limit." This year, ... A: Richard, Thank you for your question. When you sell a business, the government wants you to ...
taxes on class action suit	6/20/2008
Q: I received a check from a class action suit, and I was wondering if I had to pay taxes on it. I ... A: Tom, Thank you for your question. I answered this question from a previous taxpayers question ...
Gifts and Inheritance	6/20/2008
Q: My aunt who is 87 years old would like to sell her house where she has lived for 60 years and give ... A: James , Thank you for your follow-up question. The answer is yes. According to the IRS website: ...
Gifts and Inheritance	6/20/2008
Q: My aunt who is 87 years old would like to sell her house where she has lived for 60 years and give ... A: James, Thank you for your question. If your aunt sells her house and takes advantage of the ...
Invoices/Bills received for a 1099 contractor	6/19/2008
Q: Our corporation sends a 1099 each year to someone who teaches our staff CPR classes. There are no ... A: Jennifer, Thank you for your question. This is no IRS requirement, it is more of a protocol ...
short sale	6/19/2008
Q: I filed bankruptcy and did not reaffirm my mortgage in case I could not keep up with it as there is ... A: Pamela, Thank you for your question. as to your bankruptcy, you may or may not receive a form 1099. ...
Question re 1099/healthcare	6/19/2008
Q: I am considering leaving my W2 position for a 1099 consulting opportunity. Since there are no ... A: Rich, Thank you for your follow up question. I am referring to line 29 on federal 1040 page 1. ...
Question re 1099/healthcare	6/19/2008
Q: I am considering leaving my W2 position for a 1099 consulting opportunity. Since there are no ... A: Rich, Thank you for your question. 1. Are payments for health care insurance deductible as an ...
Tax Law	6/18/2008
Q: If a 1099-A is received with $52,000 balance, $32,000 FMV, and "yes" liable. Because this property ... A: Julie, Thank you for your question. 1)shoudn't the "forgiven" debt be reported as income ? ...
Condo Sale	6/18/2008
Q: I live in Delaware and am selling a condo in South Carolina. My attorney has asked me to provide my ... A: Beverly, Thank you for your question. 1)The gain I came up with is $5996.00 You came up with ...
phen-phen settlement	6/18/2008
Q: We recently received a settlement from the Phen-Phen class action law suit. Will the law firm ... A: Thomas, If you do not receive a 1099, then have a professional review the settlement papers and let ...
Az tax exemption	6/17/2008
Q: my daughter is 18 and still in high school. I claim her as a dependent. She is filling out her w4 ... A: Sharlene, Thank you for your question. She can claim tax exempt if she feels that she will be not ...
individual federal tax	6/17/2008
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ... A: Evrim, Thank you for your follow-up questions. 1-)this year a single person received a 300 ...
individual federal tax	6/17/2008
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ... A: Evrim, Thank you for your follow-up question. 1)I don't need any additional form because this is ...
individual federal tax	6/17/2008
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ... A: Evrim, Thank you for your question. If you file a schedule C for your cab business, you should not ...
tax on sale of stock inherited	6/16/2008
Q: I inheritated money from the sale of stocks when my grandmother died. I have been told that the ... A: Tammy, Thank you for your follow-up question. The trust would responsible for filing tax returns ...
loan repaid	6/16/2008
Q: Here's the scenario: I lend my brother $16,000 in 1996 by cosigning a trailer home loan for that ... A: Sam. Thank you for your follow up question. You do not need to file any forms. For your files you ...
loan repaid	6/16/2008
Q: Here's the scenario: I lend my brother $16,000 in 1996 by cosigning a trailer home loan for that ... A: Sam, Thank you for your question. Technically when you loaned him the money, you should have ...
tax on sale of stock inherited	6/16/2008
Q: I inheritated money from the sale of stocks when my grandmother died. I have been told that the ... A: Tammy, Thank you for your question. Did you sell the stock under your name or was the stock sold ...
phen-phen settlement	6/14/2008
Q: We recently received a settlement from the Phen-Phen class action law suit. Will the law firm ... A: Thomas, Thank you for your question. According to the IRS web site: Tax Treatment of Awards and ...
insolvency	6/13/2008
Q: Four years ago I bought two houses as investments. The market then dropped, and I have been ... A: Julie, Thank you for your question. Here are some answers: According to the IRS website : ...
tax on stock merging	6/13/2008
Q: I desperately need your help ASAP since I received a notice form IRS. My stock of Company B was ... A: David, Thank you for your follow up question. 1. The basic rule of thumb I go by is , if you did ...
tax on stock merging	6/13/2008
Q: My stock of Company B was merged into Compamy A. On the 1099-B,(Box 2) there are $18.5 for A and ... A: David, Thank you for your question. I'm a little confused , you mentioned that there was a merger. ...
constructoin loan dispersments	6/12/2008
Q: I have used construction loan moneys for living expenses while completing a room addition. Is this ... A: Tom, I do not understand what you mean by " construction loan money". Are you saying that you used ...
independent contractor deduction	6/12/2008
Q: I am an independent contractor - I am a law school student and work about 20 hours a week for an ... A: Megan, Thank you for your question. Based upon the facts of your case, I would say that you would ...
selling of overseas property	6/11/2008
Q: I am soon to sell land in Honduras. Are there any implications tax or other if I get the proceeds ... A: George, Thank you for your question. If you are a US citizen, then you need to report all sources ...
Contract Work and Unemployment....	6/11/2008
Q: I am currently on Oregon Unemployment and today was given the chance to do some contract work for a ... A: Melody, Thank you for your question. Unfortunately, if you want to do the right thing, you need to ...
cash from parents for down payment	6/10/2008
Q: I was wondering if a cash gift from my parents ($20,000) to assist with the down payment on a house ... A: Mike, Thank you for your question. Your parents can gift you $24000 per year (in 2007) to you ...
401 Withdrals	6/10/2008
Q: I'm 56 at moment and thinking of taking early retirement, I have accumulated about $480K in my ... A: Herbert, Thank you for your question. Below are the questions you asked and the answers: 1) ...
Early Distrubtion of Annunity	6/10/2008
Q: 55yr living in Florida. I was going to take a loan out of my annunity to supplement my lost of ... A: Lois, Thank you for your follow-up question. If you can borrow money from your annuity and they ...
Early Distrubtion of Annunity	6/10/2008
Q: 55yr living in Florida. I was going to take a loan out of my annunity to supplement my lost of ... A: Lois, Thank you for your follow-up question. The medical expense exception is if you are using the ...
income tax laws for scrap metal	6/9/2008
Q: My husband was told that he would not have to pay income tax on income earned from the salvage of ... A: Cynthia, Thank you for your question. This I have not heard about. You are required to report ...
Value of Stock at time of Distribution	6/9/2008
Q: I am the beneficiary of an irrevocable trust. At the date of death of the decedent, the trust had ... A: Pamela, Thank you for your question. You usually can use the date of death or 6 months after, which ...
PENALTY ON ANNUNITY	6/9/2008
Q: dUE TO A MEDICAL CONDITION i WILL BE APPLYING FOR DISABILITY. i NEED TO WITHDRAW MONEY OUT OF MY ... A: Lois, Thank you for your follow up question. If you want to pull the money out of NY Life be ...
Military Retiriment Pay Taxable	6/8/2008
Q: Is Military Retiriment Pay excempt from NC state tax ? A: Ogden, Thank you for your question. According the the North Carolina Department of Revenue the ...
401K withdrawal	6/8/2008
Q: my husband has $188,000 in a 401K and plans to retire the end of August 2008, he is 64. We would ... A: Marti, Thank you for your follow up question. Below are the following: 1)Would it be easier if we ...
Dependent	6/8/2008
Q: I am a student that lives in Texas, and my parents live in TN. I am 21 years old and I pay for ... A: Josh, Thank you for your question. I would suggest you discuss this with your parents. Your parents ...
PENALTY ON ANNUNITY	6/8/2008
Q: dUE TO A MEDICAL CONDITION i WILL BE APPLYING FOR DISABILITY. i NEED TO WITHDRAW MONEY OUT OF MY ... A: IOS, Thank you for your question. Is the annuity from an insurance policy? Is the annuity from a ...
401K withdrawal	6/7/2008
Q: my husband has $188,000 in a 401K and plans to retire the end of August 2008, he is 64. We would ... A: Marti, Thank you for your question. As to taxes, the general rule is put down the least on a home ...
TAX DEDUCTION	6/7/2008
Q: Recently I have got a new job with $95/hr on W2 with no benefits. I am married with 2 kids and my ... A: Tom, Thank you for your question. I wish tax preparation could be that easy , but it is not. First ...
Tax on Labor	6/6/2008
Q: I have just began a job where and I am verifying purchase orders. My question is, Can you tax Labor ... A: June, Thank you for your question. The way the rule works is that if you can separate the material ...
Claiming children	6/5/2008
Q: I would like to know me and my husband are not with each other we are not divorced but live in ... A: Tahirah, Thank you for your question. If you furnish over 50 support for the children, then you ...
Foreign gift	6/4/2008
Q: Glenn, If a foreign National gifted a US citizen with $1,000,000 or more, what would be the tax ... A: Mark, This is a good question. It would raise eyebrows if it came from a Communist Country or an ...
Moving Driver License	6/4/2008
Q: I am currently a full time student in Alabama and my parents live in Ohio. This summer my driver's ... A: Michelle, Thank you for your question. Yes, as long as you are a student, up to age 24, and your ...
tax write off	6/3/2008
Q: If a person gives a donation to purchase an item for a law enforcement department to use but the ... A: Doug, Are far as I see if the department will not accept the contribution, then no contribution is ...
restraining order/filling head of household	6/3/2008
Q: Schnabel, My, now ex-husband, had me arrested for misdiminor battery charge on 12-24-07. As a ... A: Maria, Thank you for your question. The head of household filing status is available for only ...
Tax Lien!	6/3/2008
Q: I recently found out that a tax lien was filed against my property by the IRS. I immediately paid it ... A: Michele, Thank you for your question. Unfortunately, it will show up on your credit report. It all ...
Estate Distributions	6/2/2008
Q: My grandfather passed away 2 yrs ago. Bank of America is the executer for his money market account. ... A: Genevieve, As to timing, this is a tough one. It all depends on the who the Bank is talking to. ...
student loan	6/2/2008
Q: My wife is about to start graduate school. I am on a H1B visa and my wife will start school as a ... A: Arvind, If you file a form 1040, the tuition paid will be used in completing the Form 8863, either ...
no withholdings from my check	6/1/2008
Q: I recently started a new part time job and they are paying me my full pay without taking out any ... A: Diane, Thank you for your question. I would first ask if you filed out a form W-2? If you are an ...
tax write off	6/1/2008
Q: If a person gives a donation to purchase an item for a law enforcement department to use but the ... A: Doug, Now that is a interesting question. If the law enforcement department will not accept the ...
Estate Distributions	5/31/2008
Q: My grandfather passed away 2 yrs ago. Bank of America is the executer for his money market account. ... A: Genevieve, Thank you for your question. It appears that they may be waiting for a release from ...
selling a rental unit for a loss	5/30/2008
Q: I currently have a rental unit for sale. Purchase price was $239,000 three years ago, and it's now ... A: Joe, You will be able to offset all the loss against W-2, interest income, dividends or any other ...
selling a rental unit for a loss	5/30/2008
Q: I currently have a rental unit for sale. Purchase price was $239,000 three years ago, and it's now ... A: Joe, The answer to your question is yes, as long as it was a rental unit. IF there is any personal ...
Foreign Inheritance	5/29/2008
Q: I am a US Citizen and my aunt left me an apartment in Russia which I intend to sell. If I pay taxes ... A: Marina, If you are a citizen of the US and sell assets in Russia, you will pay taxes on the income ...
short sale tax	5/29/2008
Q: My husband and I are going to d a short sale on our residence, he difference will be probably about ... A: Miranda, The Mortgage Forgiveness Debt Relief Act does offer relief for taxpayers. This a good ...
House sold, funds to payoff son's debts	5/26/2008
Q: Glenn, Thank you for all the help you've provided in the past! Have a complicated question for you. ... A: Robert, The loan could be used as a gift. You do not want to exceed a gift of $12K single or ...
Foreign gift money	5/24/2008
Q: If someone receives gift money while overseas (or is bequeathed money from overseas), is there any ... A: Wendy, There is no requirement for the beneficiary to file forms. It is up to the donor to file ...
Foreign gift money	5/23/2008
Q: If someone receives gift money while overseas (or is bequeathed money from overseas), is there any ... A: Wendy, If you receive a gift from a someone in the US, the gift is usually subject to the US tax ...
non profit work	5/23/2008
Q: Greetings, I am a software engineer. If I donate a few hours a week to a non profit project can I ... A: Stan. If you are a legal entity, such as a corporation, you can charge for your time. Other than ...
IRA Distribution for Education	5/23/2008
Q: I am going to be attending college and will need to access my Traditional IRA to assist me in ... A: Jody, On the IRS website , the qualified expenses covered in order to avoid the 10 penalty are for ...
Taxes & Adoption	5/22/2008
Q: My question is - if your adoption does not happen and you lose your money ($14K), can you take a ... A: If you lose money on the adoption that falls through, there is no deduction allowed for as an ...
In Home Childcare Provider	5/22/2008
Q: I am contemplating opening my own in home child care but wanted to see what kind of tax preparation ... A: Jessica, 1-You should first check for licensing requirements in your county or town. Next you ...
Debt forgiveness/collection	5/22/2008
Q: If a debt collection agency 'buys' a debt from a credit card company and later determines that the ... A: Rich, If the agency buys the debt and is not able to collect, then the taxpayer is issued a 1099-C. ...
Debt forgiveness/collection	5/21/2008
Q: If a debt collection agency 'buys' a debt from a credit card company and later determines that the ... A: Rich, If a debt collector buys a debt from a credit card company, then the debt becomes a ...
Vehicle Reimbursement	5/21/2008
Q: My fiance currently has to drive hundreds of miles per week for her job requirement, making ... A: Jim, Yes, You can file a form 2106 for 2008 and put in the actual mileage she drives. Just because ...
1099 status requirement	5/21/2008
Q: I am an independent agent for Allstate Insurance. I am 1099 with them. Can I hire part-time ... A: Darryl, As a general rule the IRS frowns against issuing 1099 for labor performed by a individual ...
Inheritance	5/20/2008
Q: I recently learned my late uncle in Malaysia has left me a sum of 15.5 miliion dollars. However, I ... A: Sherry, First thing you will need to find out is if there are taxes to be paid to the Malaysian ...
Taxes and Social Security	5/20/2008
Q: My Husband recently died and in doing my retirement planning, I had some questions. The IRS website ... A: Anne, If you file as a single taxpayer up the 85 of your social security benefits will be subject ...
Motorhome and Business Question??	5/20/2008
Q: I have a LLC in Texas. The one company under the LLC is a radio control video website and diesel ... A: Todd, I would say that you should take the standard mileage deduction for mileage , which in 2007 ...
CONFUSSED	5/19/2008
Q: I HAVE LEGAL CUSTODY OF MY DAUGHTER. THE MOTHER DOES NOT WORK SHE DOES NOT GIVE CHILD SUPPORT SHE ... A: Daniel, If you have legal custody of the child, the legal documents should address this issue. I do ...
foreign Wages	5/19/2008
Q: I would like to know somebody that is not a US citizen earning a wage from a business in the US, ... A: Abe, A foreign taxpayer can draw a salary, but in order to draw a salary he needs a social security ...
Real Estate Gains??	5/19/2008
Q: Our first home was a coop that was purchased in 1986 for $70,000. We lived there for seven years ... A: Denis, The gain would be $130,000 You would be able to write off closing costs on the sale. The ...
Filing Exempt	5/18/2008
Q: I am a full time student and am also full time employed. Since I am forty, no one can claim me on ... A: Darren, If you file as exempt, then come Apr 15, 2009 you may owe money because you have not had ...
withholding	5/17/2008
Q: Can my wife and I claim as many exemptions as necessary to break even or get closer to breaking even ... A: Brett, Unfortunately, if you cannot claim any more deductions, then you cannot reduce the ...
land sold	5/17/2008
Q: If my husband and I sell our property for 200,000 what we will have to pay in taxes for the end of ... A: Michelle, In order to tell you what you will pay in taxes , you need to know how much the land cost ...
Long term disability what is exemtp and what is not	5/16/2008
Q: I had to go on long term disability. I was only employed for 13 months from april to june 3rd of the ... A: Frank, Ok lets try this again. Thanks for letting me know it is long term disability and not long ...
Long term disability what is exemtp and what is not	5/16/2008
Q: I had to go on long term disability. I was only employed for 13 months from april to june 3rd of the ... A: Frank, IRS Publications 502 and 524 may help answer some of your questions. This is what I pulled ...
Employee W-4 issue	5/15/2008
Q: I have an employee that filled out a W-4 claiming 99 allowances on line 5 and line H. Is this a ... A: Tori, It sounds like someone is being funny. I would say the 99 allowances is an invalid W-4. If ...
Employee taxes	5/15/2008
Q: I work in Tennessee but live in Kentucky. Is my employer required to pay my tax withholdings to ... A: Cyndi, According to The Tennessee web site, they only tax dividends and interest. There is no tax ...
transfer car title	5/15/2008
Q: A follow upCan a father and son transfer titles of their respective cars to each other without a ... A: Terry jo, I would say that the town or county that you reside in would want you to register the ...
Value of loss carryforward?	5/15/2008
Q: Glen - I have a corporation with a minus accumulated adjustments account of slightly more than ... A: Earl, This is a very complicated situation. By all accounts you may have what we refer to as an "S" ...
Car Allowance	5/14/2008
Q: If a company gives you a car allowance once a month, does Federal and FICA both need to be deducted ... A: You are referring to accountable vs non accountable plans. According to the IRS website: ...
car as gift	5/14/2008
Q: What consequences exist if a Father gives a son a car as a gift? The car's value is approx $60,000. ... A: Terry, If the father gives the son a car with a FMV of $60,000 to his son for $24,000, he is giving ...
Declaring under $600	5/14/2008
Q: Hello. I am applying for unemployment in New York State. I was wondering if I have to declare ... A: Jason We are in a "voluntary compliance system". You report what you are paid even if it is self ...
questions about a ira	5/14/2008
Q: my mother is intrested in investing in a ira because she was told that she wont have to pay taxes on ... A: William, If your mom makes a deductible IRA contributions , the earnings are deferred until she ...
federal financial aid and taxes	5/13/2008
Q: I am a college student and have been informed there is no stated law in the constitution that says ... A: Hallie, I , for one, do not consider your question "frivolous". I think it was a very important ...
start up investment vs income	5/13/2008
Q: I am going to get an investor to put money in my new company to start up a business and I was ... A: If someone is putting money into your company, is he getting something back for his investment? If ...
IRA penalities	5/13/2008
Q: My sisters and I are listed as beneficiaries on my moms IRA, She passed away and we all receive 1/3. ... A: If you mom passed away and left you some money, then the money you take out will be subject to tax. ...
fed tax, soc sec, pension, back taxes	5/13/2008
Q: I have a few little questions. I just found out that my mother-in-law's husband's income is made up ... A: If all the time your mother-in-law filed married filing separately, then I feel that the IRS has ...
Gaming Tax	5/12/2008
Q: We are trying to figure out how much tax is on casino winnings. Thanks for anything you can tell ... A: I just went through this with another client of mine. According to IRS, You may deduct gambling ...
Taxation on Perdium	5/12/2008
Q: My employer is offering me a biweekly perdium of $1722 plus salary in my local currency amounting a ... A: I pulled down from the IRS web site the following information for you as follows: Generally, ...
Inheritance tax	5/12/2008
Q: I will be receiving a third of the sale of property located in NY, I live in Alabama. Will I have ... A: There is no inheritance tax, though there is an estate tax. This is handled by the executor if ...
Taxation of inherited annuity	5/11/2008
Q: I live in London, England and have done so for the last 17 years. My mother lived in Columbus, Ohio ... A: My answer is that you would have to pay taxes on the money when distributed out. You may want to ...
fed tax, soc sec, pension, back taxes	5/11/2008
Q: I have a few little questions. I just found out that my mother-in-law's husband's income is made up ... A: My answers are as follows: 1. Ramifications to your mother-in-law. If she files married filing ...
custodial account	5/10/2008
Q: My ex husband died without a will and our son is his heir. The administrator of the estate insists ... A: I will say that since there was no will and an administrator has been setup to serve as the ...
Taxes on work done	5/4/2008
Q: Am having concrete driveway done. Contractor is charging us tax on labor, & equipment used. Is this ... A: Gary, This all depends on whether the labor can be separated from the materials on the job.If he ...

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