| Subject | Date Asked |
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| rollover ira | 11/20/2009 |
Q: I am 49 years old,I recently became disabled. Do I have to use my retirement funds up before I can ...
A: i can not speak to the requirement for you to drain your retirement funds. check with social ...
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| Tax Liability | 11/19/2009 |
Q: I want to invest/give $25,000 to a family member to aid in their starting a business. What would be ...
A: depends upon how you (and they) set it (your loan, investment and subsequently the business itself). ...
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| Any money owed after 8 yrs of not living and working in the U.S. | 11/19/2009 |
Q: About 6 years ago my father died in a hospital in Jamaica awaiting surgery. My father did not leave ...
A: cant speak to jamaican law, but you would not owe usa tax on an inheritance so go for it. plus, I ...
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| Filing taxes in Indiana and in a pending divorce. | 11/19/2009 |
Q: My question is: My soon to be ex husband and I are having to file income taxes jointly due to the ...
A: you can file under status 'married filing separately' usually does not provide quite the same ...
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| Tax Question from Transferring Grant Deed | 11/18/2009 |
Q: To settle a legal dispute, I have agreed to transfer the grant deed title of my investment property ...
A: first. define 'silent' partner. any documentation at all ? including the $15k original investment?? ...
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| Tax Question from Transferring Grant Deed | 11/18/2009 |
Q: To settle a legal dispute, I have agreed to transfer the grant deed title of my investment property ...
A: few supporting questions. what is the nature of property surrendered? nature of the dispute? ...
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| Beneficiaries K-1 Reporting | 11/17/2009 |
Q: How is interest earned on U S Savings Bonds (EE and I) reported on the K-1 sent to a beneficiary to ...
A: not a simple answer to a complicated question. various scenarios are possible all with very ...
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| tax | 11/17/2009 |
Q: 135. Since a partnership is a "flow-through" entity, it does not pay taxes on its income. Instead, ...
A: read your homework and stop trying to take the fuc<ing easy way out. and you want to do taxes or be ...
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| 401K with drawl befor tax hike | 11/16/2009 |
Q: I am 69 and have a small sum in a 401K. The Bush tax cut will run out befor I am 70.5 Should I with ...
A: is not that simple. how much other income do you have. how much do you have qualifed assets (401k ...
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| preschool tuition remission | 11/15/2009 |
Q: What are the tax implications if a child development center offers free tuition for employees' ...
A: tax free MEdusa see below: http://www.irs.gov/publications/p970/ch01.html Education Below ...
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| Dependants that have children | 11/14/2009 |
Q: My daughter is 18 and the mother of a two-year-old child. She lived with her father for 6 months in ...
A: is there a decree/agreement from the father/mother divorce? does she get child suuport from the ...
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| reimbursing mileage | 11/13/2009 |
Q: I am an executive working for a national corporation. I oversee four operations at four different ...
A: sorry. you can deduct only those miles beyond your principal place of employment. in your ...
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| charitable donations | 11/12/2009 |
Q: If one donates to a charitable organization, donations are typically deductible if the organization ...
A: I respectfullt disagree with your assessment that if you make a donation to Red Cross and your ...
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| form 4797 | 11/11/2009 |
Q: we just retired - we were self employed over the road truck drivers-we just sold our truck and ...
A: seriously now. did you read the instructions? twice? long and short of what is mumbo jumbo tax ...
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| charitable donations | 11/11/2009 |
Q: If one donates to a charitable organization, donations are typically deductible if the organization ...
A: In response to your reply and rankings... my response below is VERY clear. I think you got the ...
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| meals/entertainment deductibility | 11/11/2009 |
Q: 1. just to confirm, if I'm traveling for business and must stay over night my meals are 100% ...
A: wrong. 1. meals are not 100% deductible overnight or not. 2. depends upon purpose and nature of ...
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| loan to shareholders s corp | 11/10/2009 |
Q: is it common practice in s corp to make loans to shareholder And how does the s corp get paid back? ...
A: still need to know how much. what were the aaa accounts, was it pro rata between all shareholders? ...
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| loan to shareholders s corp | 11/10/2009 |
Q: is it common practice in s corp to make loans to shareholder And how does the s corp get paid back? ...
A: if you closed it. the loans were something? if loan was cancelled, there are issues for tax. state ...
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| loan to shareholders s corp | 11/10/2009 |
Q: is it common practice in s corp to make loans to shareholder And how does the s corp get paid back?
A: generally my experience has been yes. it is common. it is far less common to see the loans properly ...
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| Classic Cars | 11/9/2009 |
Q: If I wanted to invest in classic cars, are all expenses related to restoring these vehicles ...
A: mmmm... first read section 183 - hobby loss rules. snipet of pertinent quotes below: For the ...
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| Taxable compensation | 11/9/2009 |
Q: If a corporation gives a customer coupons and gift certificates valued at say 1000 dollars, are ...
A: yup. And to make it more exciting, it is subject to 1099 requirements. w-9 is necessary too. ...
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| are chargebacks tax deductable? | 11/9/2009 |
Q: i work on 100% comm. and if a client does not pay 6 monthly payments i get charged back 100% I pay ...
A: if netted out and all you get is the 1000 and the full 2000 is not included in your w2, then you are ...
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| Capital or revenue receipts | 11/9/2009 |
Q: I hope that you could help me to identify the PRINCIPAL TEST to determine whether sums of money ...
A: the world is not that black and white, but since you seem hellbent on one single answer, the first ...
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| are chargebacks tax deductable? | 11/8/2009 |
Q: i work on 100% comm. and if a client does not pay 6 monthly payments i get charged back 100% I pay ...
A: Interestingly enough, repaid payroll is a 2% deduction so you sort of get screwed. Do you get your ...
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| Bad Loan Loss | 11/8/2009 |
Q: Several years ago we put up a 35K refundable golf club deposit - which was to be paid back by 2028 ...
A: not every situation is the same... and there are many other factors which go into a return. one ...
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| Homebuyers tax credit | 11/8/2009 |
Q: I purchased a home that closed on Apr 1, 2009 and since they extended and expanded the home buyers ...
A: no. a. until the bill is signed (expected this weekend or monday) it is not yet law anyway, but my ...
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| default on a promissory note note tax deduction | 11/6/2009 |
Q: FACTS: My business partner and I are going our separate ways (very amicably). He is going to keep ...
A: send a NEW 'private' question and I'll provide email off line. First, I would send him notice to ...
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| IRS 105b | 11/6/2009 |
Q: My employer allows us to put our significant other on our medical as a domestic partner. On the form ...
A: you can take him as a dependent. he should file a zero return claiming zero and you can claim ...
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| default on a promissory note note tax deduction | 11/5/2009 |
Q: FACTS: My business partner and I are going our separate ways (very amicably). He is going to keep ...
A: actually, you are $150k behind. how much income was reported in the interim (assumes 900k - the sum ...
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| MISC 1099 | 11/5/2009 |
Q: I work for a small law office. DO I need to issue MISC 1099 forms to vendors who were paid as ...
A: as you work for a law firm, you realize this is not legal advice, but yes. you do need to report ...
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| estate tax on currency gains | 11/5/2009 |
Q: My father passed away in Canada a couple of years ago. The amount of his estate is below the taxable ...
A: no. but you do have to pay income taxes on the interest or capital gains on the accounts (in ...
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| default on a promissory note note tax deduction | 11/4/2009 |
Q: FACTS: My business partner and I are going our separate ways (very amicably). He is going to keep ...
A: actually, you have a tax loss now. not in future years. just curious what the real amount is. and ...
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| claiming real estate losses on taxes | 11/3/2009 |
Q: My mother passed away two years ago and the mortgage company foreclosed on the house. A year ...
A: to your last point and only question - no. well, maybe. but that said, there are always several ...
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| rental income | 11/3/2009 |
Q: Is it possible for state tax departments to track the amount of rental income you gross from a ...
A: rental income is shown on IRS schedule e and should be aggregated by property.. ie individual ...
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| rental income | 11/3/2009 |
Q: Is it possible for state tax departments to track the amount of rental income you gross from a ...
A: I think you are asking for help to avoid tax? not good. you should be asking is it possilbe for me ...
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| Claiming Dependent after Divorce | 11/2/2009 |
Q: I have been divorced nearly 5 years. According to the Divorce Decree we are to share the dependent ...
A: this is really a decree and legal matter not tax. to get a dependency exemption, you need to pay ...
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| Vehicle for nonprofit 501c3 | 11/2/2009 |
Q: My husband and I run a children's nonprofit organization and are considering purchasing a new ...
A: probably more advantageous for you to buy it and get reimbursed under an accountable plan (does it ...
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| 1099C | 11/1/2009 |
Q: Once a debt from a credit card company hits the statute of limitations, set forth by the state. I ...
A: The question is DO you have income in the current year that you need to report with or without the ...
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| S-corp | 10/30/2009 |
Q: Can an S-corp own a boat?
A: yes. the question is what is the s corp going to do with the boat? hold it for investment? rent it ...
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| Medical Reimbursements | 10/30/2009 |
Q: My company offers vision hardware reimbursement up to 250 dollars. They state that reimbursement ...
A: yes. did you get something of value from your employer (yes - $250) do you get to deduct medical ...
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| purchase questions | 10/30/2009 |
Q: if I where to make purchases at a second hand shop ie salvation army, purple heart, for my ...
A: not that I can think of. you would save money on the lower price and deduct the costs either as ...
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| tax implications of partnership loan interest | 10/30/2009 |
Q: If a partner finances the business though a loan and collects interest on that loan, is the interest ...
A: Think of it this way... If he loaned the money to a non affiliated entity, he would pick up all the ...
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| Employer Obligation | 10/30/2009 |
Q: My employer pays me on a minimum wage and a Draw model. The draw is to help me cover expenses. I ...
A: yes. but as i said, I think you have a strong case for pursuing a refund from the state... and ...
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| Tax on Roth IRA conversion | 10/29/2009 |
Q: To compute the tax on a Trad to Roth IRA conversion, do you add the conversion amount to income on ...
A: yes, you include the conversion amount as an addition to income. you put it on line 15a. you do ...
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| Solo 401k contributions | 10/29/2009 |
Q: According to the Solo 401k contribution guidelines for 2008, my wife contributed $18,168, which are ...
A: this is the crux of the dilemma between taking a deduction now (401k, IRA, etc) and not taking one ...
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| 1099 for IC | 10/29/2009 |
Q: I have been working as an Independent contractor for small business this year and using my name and ...
A: Technically, you have two schedule c to report on. one is the jane the individual and one is jane, ...
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| Converting IRA to Roth | 10/28/2009 |
Q: In 2010, I'm considering converting a few hundred thousand in IRA accounts to a Roth IRA. Will I be ...
A: quick answer is that you should really consult a local professional and input a whole host of ...
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| Self-Employment Health Insurance Deduction | 10/26/2009 |
Q: I retired in September of this year. My family had health insurance through the company I worked ...
A: The ability to deduct SEH premiums not paid to the insurance company is an issue of great ...
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| inheritance tax (Maryland) | 10/25/2009 |
Q: I will receive an inheritance this taxable year (2009) of $80,000 from my Aunt's estate. She lived ...
A: Recipient (beneficiary) has zero reporting requirement in both Maryland and for federal purposes. ...
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| Employer Obligation | 10/21/2009 |
Q: My employer pays me on a minimum wage and a Draw model. The draw is to help me cover expenses. I ...
A: In order yes, you can take out more - see box on form w-4 box 6 ...
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| Pension Funds Taxes and Penalty | 10/21/2009 |
Q: I am 55 and I formed a State of California LLC this year. I would like to use some of my pension ...
A: yes, withdrawal of funds from a pension before you turn 59 and half for anything other then the few ...
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| Michigan/Texas inheritance | 10/21/2009 |
Q: My father-in-law died recently in Michigan. He left my husband (his son) about $100,000. We live in ...
A: assuming he is the only beneficiary and the estate was only $100k (alternate is that it was worth ...
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| Real Estate Partnership | 10/19/2009 |
Q: I am assisting some limited partners who invested in a real estate partnership about 25 years ago. ...
A: How is it exactly that you are helping them if you can't answer this question? a. Capital accounts ...
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| charitable contributions | 10/19/2009 |
Q: A couple in our church wants to donate the use of one of their spare bedrooms to one of our staff ...
A: Yes they can, right after they pick up the fair rental value into their income... which really means ...
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| Partner not paying personal taxes | 10/19/2009 |
Q: I have a business partner with whom I share ownership of a land development company, an S-Corp. He ...
A: First of all... he needs good representation, too :) next, make sure all transactions with the ...
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| Taxes not taken out of paycheck | 10/19/2009 |
Q: I just moved and started a new job a couple of weeks ago at the end of a pay period. I got my check ...
A: reason being is that the tax on a very small check does not factor in the bigger picture. the tables ...
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| w4 wiithholding | 10/19/2009 |
Q: My husband filled out his W4 and claimed 0 exemptions plus $10 per pay be withheld, however when he ...
A: a. set aside a bunch of money for april 15 next year. b. complete a new w4 and submit it to ...
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| taxes on stipends | 10/19/2009 |
Q: I operate a small non-profit museum in California. We would like to offer some of our "volunteer" ...
A: kudos for your work. First... instead of offering a stipend, create an accountable plan and then ...
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| Home sale tax exemption | 10/15/2009 |
Q: I am thinking of changing my State residency from New York to Florida. I presently own a home in ...
A: changing residency is a whole more complex then just moving... but that aside... The general rule ...
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| gaming taxes | 10/15/2009 |
Q: have won quit a bit of money at our local casinos here in oklahoma around 82000.00all of it has came ...
A: Yes, just as soon as you send me a nice hefty percentage for helping you cheat the IRS (tongue ...
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| CPA MISTAKES | 10/14/2009 |
Q: I've been a client for over 30yrs with a big independent CPA firm for my personal taxes.I found a ...
A: Depends upon the engagement letter (EL). Our firm EL clearly says our firm will only pay the ...
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| Property Tax Law When Property Is Under a Delaware LLC | 10/14/2009 |
Q: I have recently set up a LLC in Delaware however, I have one question around taxation of property ...
A: after quitclaim. abc owns 1234. payments for tax and interest should from abc. and abc takes ...
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| Estate Tax Exclusion | 10/14/2009 |
Q: Vanessa: I have 2 questions which may be no brainers for you. First, the Estate Tax exemption this ...
A: only way to lock in the ESTATE exemption is to DIE> REVOKE-able trust remains in your estate. ...
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| 401k withdrawal | 10/14/2009 |
Q: I am going through a separation and eventual divorce from my wife and sadly am considering cashing ...
A: there is only one 10% penalty. it would not be doubled. community property or not. There is no ...
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| Sch L form 1120 | 10/12/2009 |
Q: Can you tell me what is reported on line 8, sch L, of form 1120. Can't find guidance on that line. ...
A: what part of http://www.irs.gov/pub/irs-pdf/f1120.pdf 8 Mortgage and real estate loans is ...
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| Disallowed Interest Expense | 10/9/2009 |
Q: I have disallowed investment expense for 2007 and previous years (Line 2 Form 4952). This was for ...
A: no. If you have investment income in the current year, you use (or lose it) the carryover. hence ...
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| Tax on life Ins. | 10/9/2009 |
Q: What is dollar amount of life insurance before it becomes a taxable amount?
A: do you mean as a beneficiary? or if you get life insurance coverage at work. more details required. ...
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| sale of ownership | 10/9/2009 |
Q: My father gave my sisters and me stock in his company (S Corp) quite a few years back. Before he ...
A: you need a whole host of good information. did you report anything in the intervening years:? you ...
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| roth IRA withdrawal | 10/9/2009 |
Q: I have a Roth Ira and I have had for over 5 years(taxable). I would like to withdraw $10,000 for our ...
A: sure looks like you are screwed by mr patrick and gang. ...
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| Rental Property Taxes | 10/7/2009 |
Q: I currently own a rental property in CT and live in SC. The property is overall a net loss after ...
A: correct you lose in ct and sc. the loss is allocated to ct and you need to file a non resident ...
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| Tax on Insurance Claim | 10/7/2009 |
Q: Facts as Follows: 1) John Doe ("Doe") attends football game 2) Doe injuress himself on escalator at ...
A: Depends upon what the settlement terms were and how the deal was structured. pain.suffering.injury ...
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