| Subject | Date Asked |
|
| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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). ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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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