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Tax Law (Questions About Taxes)/Questions Answered by Expert Bruce W. Tyler, EA

Subject	Date Asked
IRS Lien, liability for spouse action prior to marriage	12/9/2009
Q: My fiance' and her ex-husband have approximately $20,000 in unpaid payroll taxes owed from a ... A: Terry, If you file married separate, you will not be responsible for any taxes your spouse owes for ...
gambling tax laws	12/9/2009
Q: Tyler, Can you please explain the reasoning behind the current tax laws on gambling? Unlike other ... A: Russell, There are many laws regarding taxes that seem inequitable - this is one of them. Another ...
Income taxes	12/7/2009
Q: I left a paying position as a healthcare provider and bought a practice in the last quarter of 2007 ... A: John, For the taxes to be included in the bankruptcy, they need to be at least 3 years old, that ...
Understanding of Per Diem vs Employee	12/7/2009
Q: I work for a pharmacy, also an RN. We have nurses that see patient's that we call "per diem" nurses. ... A: Becky, OK, I may have misunderstood here. I understood your question to be concerning reimbursement ...
fradulent claim for dependents	12/6/2009
Q: My X-husband fradulently claimed me and our children for three years while we were living in ... A: Allie, This is a criminal matter since your husband signed your name to the return. First, contact ...
taxes	12/6/2009
Q: this year i worked january and a little of february and then i collected unemployments but taxes was ... A: Kaleia, Assuming you meet the quantification to claim your kids as dependents, you should not have ...
Student Loans and S Corp Deductions	12/4/2009
Q: My son recently graduated law school and consequently has a significant amount of student loans. ... A: Bryon, Congratulations on your son passing the bar! The student loan itself is never deductible. ...
Settlement of Severance Pay	12/3/2009
Q: My sister is in the process of settling a severance package in California with her former employer. ... A: Eric, Not an easy question to answer since I do not know the rest of her tax situation. The ...
gambling tax laws	12/3/2009
Q: Tyler, Can you please explain the reasoning behind the current tax laws on gambling? Unlike other ... A: Russell, Very good question - here's the answer. Many deductions and credits are based on a ...
Settlement Chck	12/3/2009
Q: My mom had a lawsuit against a doctor for malpractice. She lost part of her left because of the ... A: Edward, I cannot speak for New Jersey, however, settlements with regard to pain and suffering are ...
Understanding of Per Diem vs Employee	12/2/2009
Q: I work for a pharmacy, also an RN. We have nurses that see patient's that we call "per diem" nurses. ... A: Becky, When you mention the labor code, are you referencing a state labor code or a federal labor ...
Tax/Employment Question	11/30/2009
Q: I worked a job for 7 months under "independent contractor" status for a boss who told me he would ... A: Cameron, Reclassification to employee WILL save you tax due to the self-employment tax issue. ...
Am I required to file?	11/30/2009
Q: I'm unemployed and had no income this year except for an inheritance I received from my grandfather. ... A: In viewing the K-1, you do not need to sweat this - you don't owe any taxes - the amounts are too ...
Am I required to file?	11/27/2009
Q: I'm unemployed and had no income this year except for an inheritance I received from my grandfather. ... A: Krista, Besides Box 11 - are there any other numbers on the K-1? Look at Boxes 1-9 in particular. ...
Understanding of Per Diem vs Employee	11/26/2009
Q: I work for a pharmacy, also an RN. We have nurses that see patient's that we call "per diem" nurses. ... A: Becky, If the company does not want to pay travel expenses, they don't have to. Being an ...
Schedule C	11/25/2009
Q: I worked as a consultant for non-profit in 2009. I will receive a 1099 for this work (no ... A: Beverly, Remember that SE tax has nothing to do with ordinary income tax. You will owe SE tax on ...
deprec.	11/25/2009
Q: if i take mileage deduction on my business does that mean i can still depreciate my truck,take off ... A: Harold, Depreciation is accounted for in the mileage rate - can't take both the SMR and ...
Claiming losses for winnings	11/25/2009
Q: Is it true they have changes the law, that your losses can only be deducted for the day the winning ... A: Sonnie, I am not aware of this issue. I researched a number of sites and could noy come across ...
Tax/Employment Question	11/24/2009
Q: I worked a job for 7 months under "independent contractor" status for a boss who told me he would ... A: Cameron, Have the IRS do a Form SS-8 determination. Here is the link: ...
Education Credit/Deduction	11/23/2009
Q: I have a daughter in her 1st year & 1st semester of college (she is listed as a dependent on my tax ... A: Mike, The American Opportunity Credit allows you to add not only the tuition but also necessary ...
New Landlord -- Renting Our House	11/23/2009
Q: We will be renting our house for the first time and using a property manager to handle the ... A: Debbie, The only reason to set up your rental as an LLC would be for the liability protection. ...
real property tax	11/22/2009
Q: As an US citizen working in China I purchased a apartment there as primary residence three years ... A: Jane, If you meet the 2 out of 5 rule then you can exclude $250,000. That rule states that if you ...
short sale	11/13/2009
Q: My husband has to short sell his rental property. He paid $125,000 5 years ago and it is selling ... A: Connie, Once the property is sold, there are 2 transactions. The first is the sale of the property ...
Officer Compensation	11/12/2009
Q: I made a terrible error and I need to know how to fix it. My client paid herself a salary (W-2) and ... A: We all make errors - if we didn't we would not be human. I am confused about a few things -- 1.I ...
tax breaks as legal guardian	11/11/2009
Q: I was appointed by an LA Family court on Oct 20 as the legal and physical guardian for two children ... A: Scott, For 2009, you will be out of luck. However, for 2010, you can most likely claim the kids as ...
Filing Insolvent	11/11/2009
Q: I have 2 homes that are underwater home 1. I owe 400k, worth 200k ( its a 1st and 2nd home equity ... A: Jeanine, Have an attorney review the loan docs on the rental to make sure the loan is non-recourse. ...
Filing Insolvent	11/10/2009
Q: I have 2 homes that are underwater home 1. I owe 400k, worth 200k ( its a 1st and 2nd home equity ... A: Jeanine, Depending on whether or not the loans are recourse or non-recourse loans, you may have a ...
How does buy-out price affect property-tax value?	11/8/2009
Q: My ex & I have a divorce agreement that specifies that I have the option to buy-out his share of our ... A: Excellent questions! First, I am going to assume you live in a state where property taxes are based ...
IRS auditing my milage log	11/7/2009
Q: I am being audited on my milage log. I was at that time an employed sales rep. working from my home ... A: Contact your prior employer to see if they have any information on the customers in those cities. ...
first time homebuyers tax credit	11/6/2009
Q: my wife and I purchased a house in June of 2008 and refinanced it in 2009; I have not owned a home ... A: Nick, Help me here some -- you said you lived in the home since 2006 but bought it in 2008 -- is ...
dependent for tax purpose	11/6/2009
Q: "My employer allows us to put our significant other on our medical as a domestic partner. On the ... A: Amy, If your boyfriend did not earn over $3650 in 2009 and you provided over 50% of his support, ...
Dependent Care Claims	11/5/2009
Q: I have had a few different childcare providers sign off on dependent care claim forms. If they are ... A: I'm not sure what you mean by "sign off on their dependent care forms" - could you help me with that ...
Unreimbursed employees expenses	11/4/2009
Q: In 2007, I had unreimbursed employees expenses. I am no longer working for this employer. It is my ... A: Rolando, A court case does not come to mind but you won;t need that. The IRS will look at your bank ...
Can I refuse to be listed on my husbands tax return	11/4/2009
Q: I am a stay at home mom and am in a bad marriage and am looking for the right time to divorce. In ... A: Jean, Since you live in a community property state, you will responsible for 50% of the income from ...
Can I refuse to be listed on my husbands tax return	11/4/2009
Q: I am a stay at home mom and am in a bad marriage and am looking for the right time to divorce. In ... A: Jean, I need to know a couple of things here: 1. What state do you live in? 2. Did you live with ...
Unreimbursed employees expenses	11/3/2009
Q: In 2007, I had unreimbursed employees expenses. I am no longer working for this employer. It is my ... A: Rolando, Unreimbursed work related expenses are NOT included in a W-2 since they were not ...
Taxes owed on estate disbursment	11/3/2009
Q: we are selling my fathers home. After we pay off what we owe on the reverse mortgage he had, what ... A: Alan, Is the home still in the name of the estate? If so, the estate may have to pay tax on the ...
California	10/30/2009
Q: My wife & I are getting a divorce. She would like to remain in the home we shared with 3 kids (one ... A: Marc, Whether it would be to your or your ex-wife's advantage is a matter of perspective. Any tax ...
California	10/29/2009
Q: My wife & I are getting a divorce. She would like to remain in the home we shared with 3 kids (one ... A: Marc, Since CA is a community property state, all payments on the 1st home are split 50/50 *while ...
Tax deductions	10/29/2009
Q: I am a US citizen living in Europe. I have recently purchased a condo in Northern California. I plan ... A: John, Regarding your airfare, much of this has to do with your intent. Basically, are you planning ...
In lieu of foreclosure	10/29/2009
Q: My wife and I bought a very small 12-unit complex in a very rough part of Phoenix. The seller ... A: Dale, If I read this right, you will give up all rights to the property for $2,000? This is an ...
protecting my family	10/26/2009
Q: My husband has been making payments on an arrearage child support order (long story) we were just ... A: Michelle, Form 8379 is for injured spouses and it sounds like you may qualify for this. A better ...
quarterly taxes	10/26/2009
Q: if i am not a business but make money on investments, do i have to file a quarterly taxes payment on ... A: Ron, Quarterly tax payments, known as estimated payments, are required if you expect to owe any ...
Per Diem taxability	10/23/2009
Q: I will be on my present contract coming up on one year in December. I have been receiving per diem ... A: Phillip, That's hard to say. If your contract is "renewed" once or twice, you might be able to get ...
Per Diem taxability	10/23/2009
Q: I will be on my present contract coming up on one year in December. I have been receiving per diem ... A: Phillip, The position you have must be designated as temporary. That means one year or less. If ...
rent deduction on federal tax	10/22/2009
Q: I own a condo, I owe 140,000 and is worth 125,000. My mortgage payment is 850 + HOA 250 = 1100. If I ... A: Rent is never deductible unless you are using all or part of the apartment/home for business. As ...
back wage insurance award settlement	10/21/2009
Q: There are two parts to the award, back wages and emotional distress. I understand 100% is taxable. ... A: Donna, Normally you will receive 2 forms - the back wages will be on a W-2 (yes, the employer will ...
How file "report" your business taxes	10/16/2009
Q: Tyler. In your last response to my "appealing an audit" question you stated: "Appeal it. You can ... A: Will, Investment related costs are generally not deductible until the investment is sold. The sales ...
w-4	10/15/2009
Q: Is it okay for an employer to sign your w-4 form? ANSWER: Amy, Absolutely not - unless the person ... A: Amy, I would contact your state department of labor (or it's equivalent). If you do not know who ...
CA resident Consulting in VA	10/14/2009
Q: Consulting in VA resident of CA I am a consultant resident of California working for a client in ... A: Kham, Since you are a resident of CA, you will report all income earned whereever the source, on ...
1099	10/14/2009
Q: I work in cosmetics for a major dept store. We were told we should get 3% commision-than fill out a ... A: Megan, You are going to pay taxes on whatever the store pays you, whether it is 3% or 2.77%. The ...
LLC self emplyment tax	10/13/2009
Q: "Hi Bruce, I have a contractor who operated his own business as a sole proprietor for the first 6 ... A: Davis, Each year stands on it's own. However, depending on the year of loss, if it resulted in a ...
company mileage reimbursement	10/13/2009
Q: I started this new job that requires me to go from one client to another. We are paid travel time as ... A: Susan, Check the math on the paycheck. The deduction may be a "negative" meaning it is being added ...
Tax on wiring money to US	10/12/2009
Q: I lived in The Netherlands for 5 years, worked there, and paid Dutch taxes on my income. I still ... A: Cindy, There is not income tax on any type of transfer. The $10,000 limit you are speaking of has ...
IRA Recharacterization	10/11/2009
Q: I recharacterized $3k from a Roth IRA to a traditional IRA for the 2007 tax year on April 15, 2008. ... A: Kim, I was not being sarcastic. I was deadly serious. Anyway, when an IRA is re-characterized, ...
Refund	10/11/2009
Q: I have only worked a part time job this year and I want to know when I file will I recieve anything ... A: Dian, If you are married you must either married joint or married separate - unless - you are ...
investment interest deductions	10/9/2009
Q: I purchased land as an investment and have been paying interest payments for three years. I have ... A: Leigh, You should report the investment interest paid REGARDLESS if you have investment income or ...
2006 Audit	10/9/2009
Q: My wife and I started an Property Investment LLC in October 2005 and purchased a fixer upper in Dec. ... A: Will, Appeal it. You can deduct any cost associated with an investment. IRS is trying to deny your ...
State tax withholding/liability	10/8/2009
Q: I work for a company and my home office is in VA. I have begun a temporary assignment in CA, ... A: Mike, If the assignment is more than 1 year, it is not considered temporary. Your W2 should ...
Conventional IRA Withdrawal	10/8/2009
Q: Is there anyway to withdraw money from my IRA before 59 1/2 without paying the 10% penalty? A: Jack, Fortunately, there is a loophole known as a "72(t) exception". Under current tax law ...
IRA Recharacterization	10/8/2009
Q: I recharacterized $3k from a Roth IRA to a traditional IRA for the 2007 tax year on April 15, 2008. ... A: Kim, Why in the world would you re characterize a ROTH to a traditional? The earnings on a ROTH ...
Tax on Severance - Future Period	10/7/2009
Q: My employment contract was terminated early and a severance payment included 6 months of salary in ... A: Steve, Sorry, unless you are an accrual based taxpayer (generally individuals are not), the income ...
Tax years together	10/6/2009
Q: Can one file 2008 & 2009 together? I have an extension until 10/15 can I get another extension? A: The returns should be prepared and mailed in separate envelopes. I am not sure what you mean by ...
Emancipated Minor?	10/6/2009
Q: My son is a fresheman at U of Missouri. He can declare residency in MO for next year, but we can't ... A: Iris, You can claim your son if you qualify from year to year. The fact that you don't claim one ...
Booth Rental Income	10/6/2009
Q: I am trying to decide how to treat income from booth rental in a beauty salon. If the owner ... A: Debbie, Sorry for the delay -- the 10/15 deadline has had me buried. Anyway, if yo are the owner ...
Annuity taxes	10/6/2009
Q: I am the primary beneficiary of an annuity from my grandfather who passed away several years ago. ... A: Robert, The estate tax has nothing to do with the income tax due on the annuity. The value of the ...
Unemployment / part-time S-Corp income	10/5/2009
Q: I am a CA resident and have had a full time job for 10+ years and W2 wages. I also have had a ... A: Steven, If your goal to avoid issues, I would report income as the EDD requests. However, I do not ...
Inheritance Tax	10/5/2009
Q: back in November my husbands aunt passed away. When the will was read we found out that my husband ... A: Rosa, There is not such thing as an inheritance tax anymore. You may to pay gain on the sale of the ...
Hiring Independent Contractors	10/5/2009
Q: I am starting a new business as an LLC, the business is a cleaning business that requires cleaners ... A: Matt, You may want to rethink this. If these people working for you are under your direction and ...
2006 Audit	10/4/2009
Q: My wife and I started an Property Investment LLC in October 2005 and purchased a fixer upper in Dec. ... A: Will, In #3, you said the letter stated that you did not make enough money for them to tax you on. ...
Short sale	10/3/2009
Q: I just sold my home in a short sale. I bought it for $217,000 and it sold for 85,000. I was told ... A: Sabrina, This issue is extremely complex and several factors are involved. I have answered this ...
Are damages for backing out of house sale deductible?	10/2/2009
Q: I had a contract to sell my home because I was moving to another state (I used one room as an ... A: Mark, To deduct the amount, it would have to be considered an ordinary and necessary business ...
2006 Audit	10/2/2009
Q: My wife and I started an Property Investment LLC in October 2005 and purchased a fixer upper in Dec. ... A: Will, If the IRS denies your claim, go to appeals. Appeals has the authority to deal with gray ...
Withholding Allowance Form (Claiming Extra Dependents)	10/2/2009
Q: My girlfriend just got a job and is filling out her withholding paperwork. Since the job is ... A: Bryce, Sure, go ahead. If your GF is going to make about 12K and assuming there are no children, ...
Full Withdrawal of IRA at 87 years old	10/1/2009
Q: I am in the process of transferring my mom's IRA into her checking account to help pay for her care. ... A: Loretta, In my first paragraph, I said that she would not be taxed on the first $10,400 of any ...
Tax and personal private loans	10/1/2009
Q: Tyler I needed to ask my father for a loan in order to pay some debt. He is going to make a deposit ... A: Alfonso, You do not have to justify anything. Assuming the IRS audits your tax return for 2009 and ...
IRA conversion situation	10/1/2009
Q: I have a promissory note worth around $100K in a Traditional IRA. The note was issued by a company ... A: You will be required to pay the tax no matter what. If the note does pay off, and the proceeds ...
W-2	10/1/2009
Q: I was terminated from my job in February but received severance until October 15. My question is ... A: You won't get it until January. Employers can only generate W-2s after the payroll year has ended. ...
Sec 179 Depreciation and LLC	9/30/2009
Q: I run a greenhouse business and have a 10% partner in the business. I am going to depreciate the ... A: If your business is an LLC under your state law, then it is a partnership for Federal purposes ...
loss on sale of a house	9/30/2009
Q: In 2002 I paid $295,000 for a house in New York. While I owned the house I made improvements which I ... A: Sorry to be the bearer of bad news, but a loss on the sale of personal property is never deductible, ...
Can a collection entity write off debt they buy as non performing?	9/30/2009
Q: Sir, I am a debt buyer. I buy debt after the banks charge it off. I then place the debt with ... A: Sorry to hear about this. There are 2 issues here: 1. I agree with accountant #1 in that you can ...
IRA distribution	9/29/2009
Q: I have an IRA which I have contributed to over the years from my own funds. In other words I would ... A: That is a very good question indeed and I will endeavor to explain it in a way that is clear. ...
Full Withdrawal of IRA at 87 years old	9/28/2009
Q: I am in the process of transferring my mom's IRA into her checking account to help pay for her care. ... A: Loretta, At 87 years old and between her personal exemption ($3,500) and standard deductions ...
IRS Audit	9/27/2009
Q: I am a property manager with apartment locations in different states in the southeast region. I ... A: Denise, If your company is reimbursing/including your mileage on your paycheck, first, you need to ...
tax filing	9/26/2009
Q: I have a very small antiques business and have filed an extension so i must have 08 filed by Oct ... A: Charlotte, You can only carry a loss forward if you elected to on your 2007 tax return. If you did ...
Corporation tax question	9/25/2009
Q: I purchased a corporation ownership in 2008. How I can report changing ownership in corporation 2008 ... A: Steve, If a "C" Corp, it would on Schedule E when reporting Compensation of Officers. Check your ...
401k	9/25/2009
Q: My employer has scheduled a 401k meeting which they are requiring everyone to attend. They have said ... A: You should probably direct that question to a labor attorney as it more along legal lines. My ...
interview and taxes	9/25/2009
Q: "Dear Sir: My husband and lived 3 years abroad. My husband was an US citizen and I am a green card ... A: L, Even if a taxpayer qualifies for the Foreign Earned Income Exclusion, a tax return reporting the ...
Corporation tax question	9/24/2009
Q: I purchased a corporation ownership in 2008. How I can report changing ownership in corporation 2008 ... A: Steve, If you bought all the shares in the corporation, there is a place on the 1120 for you to ...
onterview and taxes	9/24/2009
Q: "Dear Sir: My husband and lived 3 years abroad. My husband was an US citizen and I am a green card ... A: It shouldn't have an impact on your application. However, why not be up-front with the immigration ...
tax	9/24/2009
Q: I’ve been self employed for over 17 years. I’ve done well for myself until I had a client not pay me ... A: Rick, First, let's get clear on terminology. Dividends are NOT S-Corp income. Two different animals ...
401k	9/24/2009
Q: My employer has scheduled a 401k meeting which they are requiring everyone to attend. They have said ... A: Honestly, I do not know whether it is legal or not as I am not a tax attorney. But, you have ...
Form 1099-C Foreclosure	9/22/2009
Q: Our home will be foreclosed on 10/13. After the bank sells it, we will probably be around $80K ... A: Jerry, You may or may not have to pay any tax. This is an extremely complex area of tax law and I ...
100% commission W2 employee	9/21/2009
Q: I'm a loan officer in Tx working for a mortgage broker and I have been paid by 1099 to my business ... A: Brian, After calculating Adjusted Gross Income, a taxpayer can deduct either: 1. A Standard ...
tax bracket	9/20/2009
Q: I earn just a few thousand over the 15% tax bracket. Will all income be taxed at the next higher ... A: Doug, This is a common misconception. Only the portion of the taxable income within the 25% bracket ...
Mortgage Interest and property tax write-off	9/19/2009
Q: Does the name on the loan have to be the same name as the payer of the loan in order to get the ... A: Irving, Generally, the deduction goes to the person or persons bearing the "burdens and benefits of ...
Tax and expenses	9/19/2009
Q: I am a resident of New Jersey, but I dont own or rent a place, My residence is my parents place. I ... A: Kal, Whether you can write off your meals and lodging depends on whether or not the job you have is ...
Your Answer re: using IRA funds to pay for health insurance	9/18/2009
Q: are you saying I can use my 2009 AGI as the base, but tally medical expenses from 2008 and 2009? If ... A: Meryl, First, remember that you can only exclude from penalty medical expenses that exceed 7.5% of ...
severance pay taxes	9/18/2009
Q: i was told that i have to have the max federal taxes taken out of my severance is this true? Dose ... A: The income is a "progressive" tax ,which means the more you make, the higher the percentage of ...
land sale	9/18/2009
Q: What percentage of tax is there on the sale of land if their is a gain on the sale? I have a gain of ... A: Andrea, Depends. Did you own it for over a year? If yes, then the maximum capital gain for ...
Per Diem	9/17/2009
Q: If im working 120 miles away from home as a sub contractor for a company, and i am not receiving any ... A: Joe, You can take a per diem if you are away from home overnight on business on a temporary ...
Student loan Interest Deduction	9/17/2009
Q: Unfortunately, I will have more than $2,500 in student loan interest for the first few years of my ... A: Donny, IRS Publication 970 states that if all of the following are true, you can take the ...
Early Withdrawal 401K to pay credit card debt	9/16/2009
Q: I am 29 years old and am currently employed. I have about $12.5K in the Public Employees Retirement ... A: ... A horrible idea? Well, that depends on your perspective. If there is one thing I have learned ...
reimbursement of home sales commission	9/16/2009
Q: As part of my agreement to hire on, my new company re-imbursed me for the sales commission on the ... A: It could have been done a couple of ways but the way they did it is perfectly acceptable. Some ...
Partners in s corp stealing dead husbands distributions	9/15/2009
Q: My husband died 2 years ago. I am a young widow w 4 small children. My husband had some ... A: I'm sorry to hear about the loss of your husband. The stress of raising 4 children by yourself is ...
tax	9/15/2009
Q: I’ve been self employed for over 17 years. I’ve done well for myself until I had a client not pay me ... A: You can't get that SS and Medicare back unless you amend your payroll tax returns. I'm not sure how ...
Equity reduction k-1	9/14/2009
Q: I use draw to access monies from my equity account in a limited partnership. Im the managing ... A: Ed, The basis in your partnership interest would be adjusted by the amount you draw. There is no ...
tax	9/12/2009
Q: I’ve been self employed for over 17 years. I’ve done well for myself until I had a client not pay me ... A: Rick, The "double social security" you speak of is called self-employment tax, if you file a ...
California state income tax	9/9/2009
Q: We own a home in Texas and my husband works and is paid in Texas. We make no money in California but ... A: Susanna, It depends on where you are considered a resident. Here are a series of questions that may ...
100% commission W2 employee	9/8/2009
Q: I'm a loan officer in Tx working for a mortgage broker and I have been paid by 1099 to my business ... A: Brian, I have a client in your exact situation - I assume your loans are mostly (or all) FHA? As ...
corrected question - rental property taken out of service	9/7/2009
Q: Disregard question sent 1 minute ago; I had the wrong year in one of my sentences. Background * ... A: Catherine, Don't tell the software you took it out of service. Just tell the software to take 5/12 ...
Tax Fraud	9/1/2009
Q: My employer claims on his taxes he reimburses for gas mileage but he doesn't, he gives a 25.00 gas ... A: Danielle, I cannot comment on your specific situation since I am only hearing one side of the ...
travel reimbursement laws	9/1/2009
Q: What are the laws concerning travel reimbursement for sales reps who lets say live in NJ but work ... A: If your company does not have a reimbursement plan, you can deduct your travel expenses on Form ...
tax fraud	8/31/2009
Q: If Joe is contracted through company A as a truck driver, the 1099 is under his name. He does not ... A: Since I do not know the situation, I cannot give a definite answer here. As I said, if they are both ...
business graduation gift	8/29/2009
Q: The business I am working for wants to give me a graduation bonus of 10,000. Wouldn't it be better ... A: If they want to give you a gift, I would make sure it comes from your employer personally, not ...
claim of loss for income tax	8/29/2009
Q: My wife and I just finished completing the construction of our retirement home. We had to fire the ... A: > s this a loss that can be charged off on income taxes. Unless the contractor is actually ...
tax question	8/27/2009
Q: If I pay an at home babysitter that is retired $5,200 a year to watch my child, does she have to ... A: Jana, If you pay her as an independent contractor, the answer is yes. While she may not owe any ...
DEDUCTIONS	8/27/2009
Q: I WON 45000 IN A STATE LOTTERY.CAN I DEDUCT CASINO LOSSES AGAINST THIS?IF YES, HOW DO I SHOW CASINO ... A: Gambling losses are deductible to the extent of winnings. Reconstruct a log showing when you ...
Living in two states	8/26/2009
Q: My wife and I live in California. She is an independent contractor and I am unemployed. We plan to ... A: Charles, If all of your income will be California Source income, it doesn't matter anyway. If you ...
dependents	8/25/2009
Q: our son is 29 years old, for the last several years he has claimed himself. he has always lived ... A: Roberta, You should be able to claim him as long as his taxable income does not exceed $3,650 in ...
Living in two states	8/25/2009
Q: My wife and I live in California. She is an independent contractor and I am unemployed. We plan to ... A: First, you need to determine which state is your state of residence. Primary factors would be where ...
Employment taxes	8/21/2009
Q: Let me apologize in advance for the bombardment of questions all at once but I'm very confused. I ... A: Honestly, the best thing to do is have a consult with a tax pro. Also, have a professional prepare ...
Trust Fund Question	8/20/2009
Q: So here is the deal. I am 24 and my grandparents have each been putting money into an irrevocable ... A: Zach, The trust should be filing a tax return each year. and paying any tax due. You should not ...
does coach get a 1099?	8/20/2009
Q: background: my son's soccer team is part of a larger club. the club does not provide coaches, but ... A: If each family is paying the coach less than $600, the families would not be required to issue a ...
CPA Tax Filing Error	8/19/2009
Q: My CPA mistakenly claimed my wives Social Security tax as an excess or overpayment which was over ... A: While we like to think of ourselves as perfect, the fact is that tax practitioners do make errors ...
Employment taxes	8/18/2009
Q: Let me apologize in advance for the bombardment of questions all at once but I'm very confused. I ... A: I am ot aware of any special rules for a self employed person being classified as Domestic Help. ...
Employment taxes	8/18/2009
Q: Let me apologize in advance for the bombardment of questions all at once but I'm very confused. I ... A: Looks like you are being paid as an independent contractor, which differs from being an employee. ...
Outside Labor for LLC	8/18/2009
Q: We own a small Party rental company. Plan to hire 3-4 individuals on an as-needed basis to set up ... A: If they are paid less than $600 per year, a 1099-MISC is not required. However, I would nevertheless ...
Tax on sale of duplex property.	8/16/2009
Q: How much should I set aside to pay taxes on the sale of a duplex that I recently sold? I rented one ... A: To answer your question properly, I would need a tremendous amount of additional information. 1. ...
LLC Taxation	8/13/2009
Q: Mr. Tyler, My four siblings and I inherited a tract of land from our parents in late 2007. Prior ... A: My mistake regarding the percentage - I originally thought there were 4 people involved. The correct ...
How to tax the equity partner without monetary contibution	8/13/2009
Q: Bruce, I have a question regarding the equity partner in a real estate business. I and my equity ... A: Mel, I think I know what you are asking - let's see.... If you are a Canadian and have invested in ...
Sub Chaper S 1099 versus W-2	8/13/2009
Q: My CPA has supplied me (single owner-employee) with a 1099 every year to cover my distributions from ... A: My first question would have to be if you own a C-Corporation or an S-Corporation? In either case, ...
Divorce and Mortgage interest	8/11/2009
Q: CA. USA marriage. I was separated in on June 30th 08 from my wife. We had a marital home which we ... A: Sorry to say this, but the return was done incorrectly. In a community property state, most income, ...
LLC Taxation	8/11/2009
Q: Mr. Tyler, My four siblings and I inherited a tract of land from our parents in late 2007. Prior ... A: You are using the words LLC and corporation in the same question. These are two different animals ...
Tax Deduction	8/8/2009
Q: I rent out a condo that I own and I am losing $1,000/month. as a Real Estate agent, can I write off ... A: The fact that you are a real estate agent has no bearing on whether you can write off the rental ...
stock inheritance tax	8/7/2009
Q: I inherited stock when my dad died. Recently, I sold it at a loss, but when I picked up my check ... A: The backup withholding that they took put is reported as a payment on your tax return, just like ...
Tax lien	8/6/2009
Q: I am currently on a payment to repay the IRS 17k in back taxes. However, I fell behind on my ... A: IRS will not release the lien but they may be willing to subordinate it. This means that they will ...
Shareholder's debt to corporation	8/6/2009
Q: Tyler: I have a tiny C-corporation that I have had for 20 years. It has rarely turned a profit, but ... A: Sorry for the late response as I had to go out of town for 2 days. I am confused as to whether you ...
Winnings on game shows	8/6/2009
Q: South Africa requires the rendering of a service in order to consider the amounts received as a ... A: US law allows a deduction from income for any expenditure that is ordinary and necessary to produce ...
Sale of personal residence converted to rental	8/5/2009
Q: I purchased a home in September 2005 which was my main home until October of 2007, when I attempted ... A: oooo boy - that could be an iffy issue. Help me some..... 1. Can you prove that you tried to rent ...
deficiency	8/4/2009
Q: We bought a CO-OP in Calif., in 2005 and refinanced it in 2007. We owe $300,000. We were denied a ... A: This is a very complex area of tax law. Since you refinanced the Co-Op, the loan is likely a ...
1099 taxes	8/4/2009
Q: My boyfriend works for a granite company that makes him file a 1099. We are trying to figure out how ... A: If your boyfriend works all year, the gross will about $31,000. The final taxes owed depend a lot of ...
Per-diem deduction for dual residence out of country?	8/3/2009
Q: I have heard that some form income tax deduction can be made in the form of a per diem rate for ... A: Mary, Check this site for the rates: http://aoprals.state.gov/web920/per_diem.asp As far as ...
K1	8/3/2009
Q: I am a 10% owner of a local restaurant. The 80% owner informed me that I needed to file an extension ... A: Generally, the deadline is September 15th for a calendar year entity such as a corporation or ...
Tax Audit	8/3/2009
Q: I have a general question concerning representation of a Tax appeal. Due to an error on my ... A: I cannot comment on the fees charged by another accountant since I do not have all the facts. ...
Can in-store credits be considered charitable contributions?	8/3/2009
Q: I own a bookstore that does bookfairs for non-profit organizations (in addition to others). Part of ... A: Sorry I didn't get this question earlier, but I wanted to do some research on it first. ...
Bargin and Sale Deed	8/2/2009
Q: in 2007 my mother transferred her house to me using a "bargin and sale" deed with covenants. Please ... A: Yikes, that is quite a profit! As I live in California, I am not familiar with a "bargain and sale ...
Income Taxes	8/2/2009
Q: Ok I had to borrow 300k to pay back taxes the payback on the loan is 7500.00 monthly. That is 75% of ... A: I'm surprised the IRS would not do an offer-in-compromise. Did/do you gave any retirement assets ...
Tax on sale of an LLC rental property, how to account for, and do I need to quit claim it back under my name?	8/1/2009
Q: I bought a property, had the title under my name, then a few days later quit claimed the title to my ... A: Is the LLC a single person LLC or a multi-member LLC? Is this rental or investment property? Let's ...
Income Taxes	8/1/2009
Q: Ok I had to borrow 300k to pay back taxes the payback on the loan is 7500.00 monthly. That is 75% of ... A: I am a little confused here. You said you borrowed $300,000 to pay back taxes to IRS but they will ...
Stock Market Taxes	8/1/2009
Q: I started investing last year at the exact wrong time. I invested around 4000 dollars into the ... A: OK, so it seems as though all of your transactions will be reported on your 2009 tax return. ...
Stock Market Taxes	7/31/2009
Q: I started investing last year at the exact wrong time. I invested around 4000 dollars into the ... A: First, let's define a stock transaction that must be reported. Since you stated that you ended the ...
SubChapter S Corp & Taxes	7/30/2009
Q: I have borrowed money from my S Corp and taken commission advances. Is this taxable income? Also, ... A: I am going to assume that you are the sole shareholder in the S-Corp (if not the case, let me know). ...
2009 First time home buyer credit	7/30/2009
Q: I have met the elgibility requirements for the first time home buyers credit, however there is a ... A: Spencer, Good news! You qualify for the credit under a land contract, so long as you have met all ...
s corp liquidation	7/29/2009
Q: I saw your answer to one of the recent question. I find the information very useful and have a ... A: Normally the FMV would be the price you sold the property for (to another party). Since this is not ...
1120S final k-1	7/29/2009
Q: Do I have to report this on Sch. D and determine my basis or just entering the information on the ... A: Since this K1 is the final K-1, your shares are being "sold" back to the corporation. You should ...
Long Independent Contractor Physician in CA	7/29/2009
Q: I am employed as an Independent Contractor Physician in CA. I am on a three year contract and will ... A: First, I would not advise a 401K for a sole proprietor. They are just too expenses and there are ...
IRA withdrawal for Health insurance	7/29/2009
Q: Since 2006 I had been trying to get a small business off the ground that never happened. I never got ... A: You can withdraw from your IRA and avoid penalties for payment of unremibursed medical expenses, ...
Fed Taxes	7/28/2009
Q: I needed more bring home cash so I up'ed my witholdings from 0 to 15 -- which gives me more take ... A: I understand your caution about faxing your pay-stubs. What I need to know to help project your ...
Accountant prepared Corperate Federal Taxes	7/28/2009
Q: If an accountant prepares my corporate federal tax returns, are they required to keep a copy? I ... A: Licensed tax practitioners are required to keep copies for 3 years. Some states require longer. I ...
refund	7/28/2009
Q: I received my refund from the IRS and the check is made out to both me and my husband. Since filing ... A: Yuck - awful situation. I'm shocked that your husband does not have any interest in sharing in the ...
1031 Exchange	7/27/2009
Q: I bought my home November 2008 for 215k and my loan balance is 205k, I will be selling it in ... A: Let's get the easy question out of the way first. You cannot, repeat cannot, do a Section 1031 ...
s corp liquidation	7/27/2009
Q: I saw your answer to one of the recent question. I find the information very useful and have a ... A: Yvonne, If the property is titled in name of the S-Corp and this is going to be a liquidating ...
H-1B holder startting his own company	7/27/2009
Q: How is it going.I am currently an H-1b holder and willing to start my consulting company(LLC taxed ... A: Well, the first thing you need to know is that the IRS does not care so much about your immigration ...
Assets From Sub S	7/26/2009
Q: I have a rental property in a sub s corp. I am dissolving the corp and the property will then be in ... A: I assume that the property was purchased and is titled in the name of the S-Corp and not your name. ...
Fed Taxes	7/26/2009
Q: I needed more bring home cash so I up'ed my witholdings from 0 to 15 -- which gives me more take ... A: Carol, You stated that you are married, but separated. If your husband will not live with you ...
Prior Employer Paid His Employees Under The Table	7/25/2009
Q: A prior employer of mine did not take out taxes (Federal & State) from my paycheck nor did he 1099 ... A: First, when you say that your employer did not take taxes out of your check, do you mean that they ...
Taxes by occupation	7/25/2009
Q: My brother tells me that certain occupations/professions are taxed at a different/higher rate at the ... A: First of all, no question is silly. We all have our own gifts and yours is not taxes. That's why you ...
Unemployment Law	7/25/2009
Q: I worked for a company for 5 years managing 2 multi-use commercial properties as agent on behalf of ... A: Unemployment laws vary from state to state. In California, unemployment is based on your wages ...
Double taxation-USA/Israel	7/24/2009
Q: Sir, If you are familiar with the subject's topic, please respond and I'll fill in the missing ... A: Before I can help you, I need to know which country you are a resident of, Israel or the US? For ...
Roth IRA/Married filing jointly	7/24/2009
Q: I currently have a Roth IRA and my fiance has a regular IRA. We will be married July 31, 2009. If ... A: The income limits will be based on your combined income since you will be married this year. The ...
forms of payment from an LLC	7/23/2009
Q: I've recently partnered with an LLC Healthcare Agency, whom I previously did a lot of 1099 ... A: This is an extremely complex situation and it may require more than I can answer here. Let me ...
Fed Taxes	7/22/2009
Q: I needed more bring home cash so I up'ed my witholdings from 0 to 15 -- which gives me more take ... A: When you raise your withholding allowance like you did, owing the IRS is a possibility. I can help ...
17 years old.	7/22/2009
Q: I am 17 years old and have been working since I was 16, Taxes were not being taken out of my check ... A: ... The fact that taxes were not being taken out of your check from the prior job or even last year ...
17 years old.	7/22/2009
Q: I am 17 years old and have been working since I was 16, Taxes were not being taken out of my check ... A: The withholding from your paycheck does not change automatically just because you turn 18. When ...
box 12a code v	7/21/2009
Q: I am confused about amounts recorded in box 12a with a code v on my W-2 form. Should this be ... A: That is a very good question and one people can get into trouble with!! I am going to assume that ...
box 12a code v	7/21/2009
Q: I am confused about amounts recorded in box 12a with a code v on my W-2 form. Should this be ... A: Now that I think about it, I did not need to know what your occupation was - my apologies. My ...
box 12a code v	7/21/2009
Q: I am confused about amounts recorded in box 12a with a code v on my W-2 form. Should this be ... A: Code V in Box 12 is used to report the exercise of non-statutory stock options. At any rate, any ...

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Bruce W. Tyler, EA

Top Expert on this page

Expertise

I can answer anything with regard to the following: Preparation/Tax Law regarding Individual Income Tax (IRS and California), Audit Representation/IRS Procedures of personal and corporate income tax including appeals, IRS Collection procedures for individuals, partnerships and corporations, offers-in-compromise, payment plans, penalty abatement etc.

Experience

21 years in tax preparation and representation

Organizations
National Association of Enrolled Agents

Education/Credentials
4 years of accounting at Woodbury University/UCLA Extension

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