| Subject | Date Asked |
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| Employee Home office and travel expenses | 10/22/2009 |
Q: My W2 employer assigned me to a 6 months project out of town in 2007, which was extended a month at ...
A: Don, Yes your travel expenses are deductible as employee business expenses as long as you were not ...
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| 1099 & Social Security | 10/20/2009 |
Q: When I work with just a 1099, which means the empoyer does not have to match the taxes paid, how ...
A: Monika, If you receive a 1099 your employer does not withhold taxes from your pay. In this case you ...
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| Long Term Travel | 7/24/2009 |
Q: I work as a consultant who in 2007 was working at a client site for over 12 months in PA. My ...
A: If they are deducting the AMEX card, they cannot put it in your W-2. It is an an accountable plan ...
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| 1120 returns, IRS audits, CPA responsibilities | 7/17/2009 |
Q: Our corporation has used the same accounting firm for the past 8 years. Not a move is made to ...
A: CPA fees can be disputed especially if he is firing you as a client. I don't want to comment on the ...
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| CA Schedule D Capital Gains Audit - Notice of Deficiency | 7/16/2009 |
Q: I'm in a bit of a bind and hope you can help me out. Around October 2008, I received a CP2000 ...
A: I think your father is right. You need an IRS specialist. They have to explain their figures and if ...
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| Delinquint returns.. how best to proceed? | 7/11/2009 |
Q: I have not filed taxes since 2000. I want to clear up these tax matters as soon as possible in a ...
A: You ask several, but good questions. You may need to give me another day to carefully answer them. ...
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| nanny question SUB S corp | 7/9/2009 |
Q: We have a Sub S corp and a nanny that takes care of our children, errands for the business, and ...
A: If possible, you should separate business expenses and personal expenses. The time that she is ...
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| self employment/being a employee | 7/7/2009 |
Q: I am self employed i work as a caregiver in elderly persons home.I work on my own,private duty and ...
A: Your client is correct that you should be treated as an employee and not an independent contractor. ...
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| first time home buyer tax credit | 7/5/2009 |
Q: I understand that if you are a first time home buyer but purchasing the house from a relative then ...
A: You are correct in the fact that your son and daughter-in-law are no eligible for the First-Time ...
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| Inheritance tax | 7/3/2009 |
Q: I am about to inherit money due to my mother's death. Do I have to pay State (PA) or Federal Income ...
A: Both Pennsylvania inheritance taxes and Federal estate taxes are paid out of the assets of the ...
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| Gifitng of Series EE Savings Bonds to duaghter | 7/1/2009 |
Q: My husband and I have accumulated over $40,000 in Series EE Savings Bonds- Most of which is ...
A: Susan, One way that you can give the money to your daughter is to give the savings bonds to her as ...
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| nonemployee compensation | 6/30/2009 |
Q: I received a letter from the IRS saying that in 2007 I reported $11,952. Their records show $12,282, ...
A: A copy of all tax documents that the taxpayer receives is sent to the IRS. They take this ...
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| gift tax and reporting | 6/28/2009 |
Q: Finn An elderly couple are without children who will help them with all sorts of little things. ...
A: Lee, The person who gave the gift (donor) is required to file Form 709, "United States Gift Tax ...
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| tax on rental properties | 6/26/2009 |
Q: I am single and I am trying to buy a house. So far I have two options: 1- Buy a big house where I ...
A: Lyly, The tax liability under both situations would be computed by filing a Schedule E with your ...
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| estate account | 5/7/2009 |
Q: Mr. Finn, thank you for taking the time to look at my question. my mother recently passed, my older ...
A: You have created an estate where there may not need to be when. Close the accounts and amicably ...
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| Zero Taxes on Capital Gains | 4/29/2009 |
Q: In 2009 I will be in the 15% tax rate. I own an office building that I can sell for $7 million ...
A: Ellen, It sounds like you need professional advice. If you are in a 10% or 15% bracket,you are ...
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| Rent to Own | 4/23/2009 |
Q: I have a second home in Myrtle Beach, SC. My cousin has offered to give me $20,000 down and pay ...
A: Believe it or not this is very complicated to give you all the details. First you determine cost ...
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| taxes | 4/21/2009 |
Q: Is it true that if I'm behind in filing my returns, that I'm only required to file the last six ...
A: It is basically true. It all depends when you eventually file. You can pay an expert like myself a ...
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| Tax Write off- Stock Loss | 4/21/2009 |
Q: A few years ago, I invested 25,000 in a start up company and was given a class B stock certificate. ...
A: Yes you can but you are only allowed $3,000 per year to include any other capital losses you have in ...
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| Offer In Compromise | 12/28/2008 |
Q: We submitted an OIC, and it was approved at 2 levels but it was rejected at the Regional Level. We ...
A: The statute of limitation is what you are talking about is generally 10 years but is postponed for ...
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| 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: You are allowed the deduction (one time, not double). Take from the person's business most ...
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| income increase | 12/18/2008 |
Q: I had a vehicle repossed in 2004 I received a letter from IRS 12/18/2008 stating that the loan ...
A: If You owe the $2,700 and set-up a payment plan, your refund will first go to pay 2007 back taxes. ...
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| deceased dependent | 12/14/2008 |
Q: How do i claim my son who turned 18 in april 08, died in april 08, and also had his own income from ...
A: You are allowed the exemption for any relative under 19 that lives with you regardless of their ...
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| tax Preparing NC | 12/13/2008 |
Q: Today in the mail we were notified by NC Department of Revenue that our tax preparer filled out our ...
A: Glenda, Probably holding a preparer liable for tax debt doesn't work. Revenue depts. also will not ...
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| Losing a Dependant | 12/12/2008 |
Q: What is the cost of not claiming a child on your taxes - how is the financial impact calculated? My ...
A: It depends. A dependency deduction is about $3,350.00 in 2008. If your top bracket is 15%, that's ...
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| capital gains | 12/9/2008 |
Q: Is it true that you don't have to pay capital gains taxes if you make less than $65,000 a year? I'm ...
A: John, That is not correct. If you are in a lower tax bracket (not enough information), you can pay ...
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| investment losses | 11/26/2008 |
Q: I have lost a lot on an IRA and my 401. The investment people say (as they always do) "stay the ...
A: SCOTT, You have no "taxable loss" to take on your IRA even if you move it trustee to trustee and ...
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| Independent Contractor | 11/18/2008 |
Q: The first 5 months i was an employee and made $6000 but the last six months worked as an independent ...
A: Office supplies and large office related purchases are deductible. If they are large items like a ...
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| back pension paid to ex | 11/17/2008 |
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ...
A: If it is a payment of previously withheld taxes, than you can incur a loss and it is taxable to her. ...
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| S Corporation Owner Compensation | 11/16/2008 |
Q: I have $225,000 net income in my S Corporation and I do not take a salary but I withdraw $118,000 ...
A: Natalie, No it is not okay. You are avoiding Social Security. However, a Sub-S Corps. allows you ...
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| back pension paid to ex | 11/14/2008 |
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ...
A: Possibly we still misunderstand each other. If she is not getting pre-tax income (or after tax ...
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| Large tax credit for donation to charity | 11/14/2008 |
Q: I have a house that is paid for and can't sell it or rent it. If I would donate it to an authorized ...
A: Kathy, You would be allowed fair-market value as a non-cash charitable tax "deduction" (not a ...
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| back pension paid to ex | 11/13/2008 |
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ...
A: John, You do not have a loss because you never paid taxes on the amount to begin with. 2) It is ...
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| Business Vehicle Deduction | 11/11/2008 |
Q: I purchased a 1959 Studebaker PU truck. I have my business sign on it. It advertises my State Farm ...
A: Gary, Why not? I assume you bought it for cash since you didn't say differently. If you financed ...
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| Home Improvement/Itemized Deduction | 11/7/2008 |
Q: Are substantial home improvements that increase the price of a home considered itemized deductions? ...
A: Home improvements only increase your value when you sell and under present law it is unlikely you ...
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| Income Tax on Lawsuit | 11/4/2008 |
Q: After an injury lawssuit is settled, and all medical bills, and attorney are paid, is income tax ...
A: Joy, I am not so you should talk to your Attorney's tax advisor but you are only taxed on what you ...
|
| a mess | 11/3/2008 |
Q: i have not filed my taxes for the past 2 years as i am a 1099 contractor. I make 100K per year and ...
A: Pam, The IRS does not believe in debtor's prison for a 2 year delinquency. Prison is mostly for ...
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| promissory note default and IRS | 11/2/2008 |
Q: I lent my brother $450,000 to assist in his business and personal affairs. I have a promissory note ...
A: Susan, As to garnishing your income of $1,000 a month and failing on your "Offer in compromise,?" ...
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| Land donation Disallowed | 10/31/2008 |
Q: In 2006, my uncle donated a land to the city. He did claim a charitable deduction for the fair ...
A: They can disallow the land deduction based on the "a final event clause." Also they can charge ...
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| Audit | 10/3/2008 |
Q: I am being audited for the tax year 2006. I have not had my first meeting. During my preparation ...
A: Pete, You did not tell me what specifically they are auditing or if you have adequate proof or ...
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| Deductions and audit | 9/30/2008 |
Q: I had a question I was hoping you can help me with. I just got a letter from the IRS asking for some ...
A: Michael, You should be concerned. Is this an office audit or a correspondence audit? It sounds like ...
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| 1099 | 9/29/2008 |
Q: I am a salesman who receives 1099 wages from my company. I owe an outside rep compensation for a ...
A: Nick, Absolutely and you do not need a tax # to do so. Simply go to IRS.gov and download ...
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| w4 questions | 9/25/2008 |
Q: Both my spouse and I started new jobs. We have 3 children under 16yrs. I am not sure how to fill out ...
A: KARIIN, It really doesn't matter what you put on a W-4 (there is no legality issue)unless you end ...
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| Relationship between EIN and SSN of the owner | 9/12/2008 |
Q: I recently got an EIN to handle all my internet related business taxes. I was wondering how related ...
A: Sam, The EIN is used for all business (a Schedule C Sole proprietorship is what I gather you ...
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| compulsory IRA distribution | 9/10/2008 |
Q: My husband will be 70 1/2 this year, but he is still working full time. I have heard that he will ...
A: Sophia, I am not the perfect expert so you might wish to also forward this to the question pool or ...
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| Mileage | 9/8/2008 |
Q: In our business office we generally work 8-5 M-F. We are all salary Occasionally we need to come ...
A: CHUCK, I may be giving you a narrow view but without deep research this does sound like a fringe to ...
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| DO i need to file Corporate Tax (no business yet) | 9/7/2008 |
Q: I formed a corporation in NY in October 2007 and corporation has a FEIN as well. Due to other ...
A: What about start-up costs and capital stock? Otherwise, you have no liability even with NY state. ...
|
| Back taxes and social security | 9/4/2008 |
Q: We owe for 941 taxes on a company we dissolved in 2001. Do these ever go away? Also, we are ...
A: Such taxes never go away but may not plague your heirs or your estate. Your social security can be ...
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| Delinquent taxes | 8/12/2008 |
Q: Normally I speak to Helen but I see she is on vacation. I failed to file the 1996 tax returen on ...
A: Your plan 2 might work but you will have to have a long talk (and be on hold) with IRS. However, ...
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| taxes | 8/12/2008 |
Q: If a corporation owes employee taxes and goes out of business is the owner still responsible for ...
A: Absolutely yes. This is a very delicate situation to get into with IRS. Don't get behind period and ...
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| Mileage Reimbursement | 8/9/2008 |
Q: We are sorry, but Carole Dunton wasn't able to answer yourI work for an IT Consulting firm who ...
A: I WOULD SUGGEST A WRITTEN POLICY IN CONFORMITY WITH A STANDARD PRACTICE. I WOULD SUGGEST THAT THE ...
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| Per Diem Taxes | 8/6/2008 |
Q: How, specifically, does one pay taxes on per diem? Thanks, sean
A: Per diem is not really taxable nor deductible (your company deducts it) if in an accountable plan. ...
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| Tax Error | 8/1/2008 |
Q: We recieved and Notice of Adjustment from the state and Fed. taxes because our accountant inputted ...
A: I don't buff other accountants unless they knowingly prepare false tax returns which is what the IRS ...
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| Selling a home | 7/28/2008 |
Q: If I sell a home and do not want to reinvest in another ] property for 6 -7 years because I am ...
A: Under present law (and I emphasize "present"), will probably not change in 2009 at the earliest, you ...
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| taxes owed | 7/25/2008 |
Q: wife said she filed in 1999, 2000, 2001, 2002. I found out that she didn't. We are now divorced and ...
A: Response: 1999 is barred by IRS and in most cases, 2000 and even 2001 now,also. Get a good IRS ...
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| annuity | 7/22/2008 |
Q: I have a small deferred annuity that I would like to donate to a qualified charity. Is there any way ...
A: No-- You have to take the taxable event but can turn around and take a Schedule A itemized deduction ...
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| FILING STATUS | 7/18/2008 |
Q: My husband passed away in june 2007. I filed my 2007 taxes as married. How many years does IRS ...
A: if you have a qualifying child, you can extend the joint filing (I think only one year). However, ...
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| Tax on a Structured Settlement | 7/18/2008 |
Q: I have a structured settlement and I am selling it to a company that buys these annuities. In the ...
A: We need to determine if your original annuity or structured settlement is a taxable annuity; ...
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| Where Do I Start? | 7/13/2008 |
Q: Jay- It's a mess. I havent paid taxes in over 7 years and the IRS has placed a lien for $28k. I ...
A: Adam, Actually where you start is to check my website and give me a call but I don't know if I can ...
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| Are we liable for deceased Fathers taxes | 7/11/2008 |
Q: My father in law died 4/2006. He had actually filled out his 2005 using turbo tax but I chose not ...
A: Julee, This is my opinion only but it had come up once or twice. You should probably call IRS and ...
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| Rental Expenses | 7/11/2008 |
Q: I am considering the purchase of a condo in Pasadena, CA, that will be a primary residence in a year ...
A: Yes you can. As long as you utilize the Schedule E as explained (properly), losses can be taken up ...
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| S-Corporation and 1099-C | 7/11/2008 |
Q: I have a small retail business with property under S-Corporation. I and my partner, each are 50% ...
A: If it falls outside of the exceptions I explained, it can be claimed as a dividend on your personal ...
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| S-Corporation and 1099-C | 7/11/2008 |
Q: I have a small retail business with property under S-Corporation. I and my partner, each are 50% ...
A: Peter, A lot of issues. Let's sort them out. S corps become the flow-through issues of the ...
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| Rental Expenses | 7/10/2008 |
Q: I am considering the purchase of a condo in Pasadena, CA, that will be a primary residence in a year ...
A: Gary on yourIf you check the right boxes on your schedule (E on your 1040) such as "material ...
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| Needing form to ammend a tax return | 7/9/2008 |
Q: I had to foreclose on my house that I had purchased through FHA. I failed to file the form to the ...
A: Vicky, An amendment can be done on an "1040-X". It is available on 'IRS.Gov' or at your local IRS ...
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| 1099C | 7/9/2008 |
Q: a few years ago 1 of my creditors sent me a 1099C for about 70% of what i owed them my question is ...
A: Eric: You can negotiate credit cards by demand that their goons charge-off your account for 30 ...
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| seller | 7/8/2008 |
Q: Jay, I live in TX and my mother in-law has a house in which she bought form a indpended mortgage ...
A: Larry, The 1098's are no problem but one should do a thorough investigation on the tax history of ...
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