You are here:
- Home
- Business
- Corporate Law
- Tax Law (Questions About Taxes)
Tax Law (Questions About Taxes)/Questions Answered by Expert MEdusa
| Subject | Date Asked |
| Schedule C Questions | 2/7/2012 |
| Q: This year I started generating 1099 revenue as sole proprietor and used my personal vehicle for ... A: mileage from 1.1 to 7.1 was just zero. simple. miles from 7.1 to 12.31 = whatever it was. two ... | |
| Business Mileage | 2/7/2012 |
| Q: I am looking for clarification about which miles are deductible given that I have both business and ... A: I would only take 1099 contractor miles beyond the work commute on any day that you do both. not ... | |
| Schedule C Questions | 2/7/2012 |
| Q: This year I started generating 1099 revenue as sole proprietor and used my personal vehicle for ... A: Generally date in service is July 2011. Use value of car then. But miles is doing to prevail ... | |
| Does IRS look at delivery drivers for a restaurant as contractor or as an employee? | 2/4/2012 |
| Q: I am considering adding delivery services to my restaurant. Should I hire the delivery as ... A: Look up independent contractor and form s8 on IRS.gov. It all boils down to control. Can the ... | |
| Tax on Long term Stock Sale | 2/4/2012 |
| Q: I sold stocks this year after 3 years I purchased (Sale less than $20,000). I have only $5000 of my ... A: you cant ignore the sale! the sale proceeds are reported to the IRS. failure to include the sale ... | |
| 2011 Taxes | 2/4/2012 |
| Q: Can and how would I file a business and personal property loss. My mother died in Feb 2011 she had a ... A: Sorry for your loss You need a lawyer All wills are filed with probate court in location where ... | |
| How to account for Cost to manage real estate LLC and non property specific costs? | 2/3/2012 |
| Q: I am in the process of preparing my income statement for the tax filing for my rental real estate ... A: Depends. First. I ask why with five properties and multi member you are not willing/ able to hire ... | |
| 1099-S for | 2/2/2012 |
| Q: We purchased our condo (one of about 400 residences in three high-rise buildings on a plot covering ... A: ah. sneeky autobot.. you need to do email as a name space internet space com to fool bot. spell com ... | |
| 401k withdraw but work and live overseas | 2/2/2012 |
| Q: I have a 401K account totaling approximately $150,000, 100% vested. I have been working and living ... A: depends on status (mfj, single, etc) and if you have any other income reported. also not sure if you ... | |
| Tax | 2/1/2012 |
| Q: I rented a condo which was quit claim deeded to me by my sister 7 years ago which I have not ... A: oh $hit... first. no deduction to you. for interest. as you are not legally liable. the LEGAL ... | |
| 1099-S for "sale" of sliver of land | 2/1/2012 |
| Q: We purchased our condo (one of about 400 residences in three high-rise buildings on a plot covering ... A: yes. better ways. I'd love to chat with the condo association. Instead of answering and attacking ... | |
| land contract | 1/31/2012 |
| Q: We have recently sold our house to our son on a land contract. We still owe the bank on this house. ... A: he owns the house and gets the liability and tax deductions. you sold it to him, but provided ... | |
| reimbursable travel expenses | 1/31/2012 |
| Q: If I travel to an offsite meeting, after hours, and the meeting ends well after my scheduled shift ... A: From a tax perspective. The only have to pay the incrementaliles __beyond__ your normal commute ... | |
| 1099MISC for Internship | 1/31/2012 |
| Q: My daughter is 24 and a college graduate. She worked for the past year as an "intern" at a ... A: Try the local labor board. Why stop? Duration over ? Apply for unemployment. If State calls her ... | |
| form 940 | 1/30/2012 |
| Q: My son has a construction business in and is classified as a sub-chapter Corp. He is the only ... A: think yes for federal but might not pay at state level. not sure. i dont do a lot of payroll as ADP ... | |
| tony | 1/27/2012 |
| Q: what if two companies filed my taxes this year A: you mean you took your w2 to Hr block and to Liberty Tax and they both filed (if Efile, the second ... | |
| 1099MISC for Internship | 1/26/2012 |
| Q: My daughter is 24 and a college graduate. She worked for the past year as an "intern" at a ... A: First. IF they paid her directly and not through school, she is most likely an employee - see form ... | |
| state tax on 401 withdrawal | 1/26/2012 |
| Q: I withdrew my 401k last year and was penalized quite a bit. Now I have to pay state. The amount was ... A: Generally 71 x state rate. Assume 4% is about $3k depending upon where you live and state rules. ... | |
| settlement ... Taxes on ? | 1/26/2012 |
| Q: I DECIDED TO GO PRIVATE DUE TO THE FACE THAT THE INFORMATION IM GIVING YOU IS EASILY DETECTABLE THAT ... A: W4 ( for individual withholding) is correct form ( not w9 which is for corp) Fed payroll rules ... | |
| dual enrollment courses | 1/25/2012 |
| Q: My son is taking dual enrollment classes in high school for both high school and college credit. We ... A: i am pretty sure you cant. check the IRS guide on scholarships and tuition credits pub 970 ... | |
| tax owed on in inheritance ? | 1/24/2012 |
| Q: I may receive a $20,000 inheritance from a friend. Do I need to declare this to the IRS? ... A: Generally no. But if you are the beneficiary of an IRA or other pension. You will have income. ... | |
| land contract | 1/23/2012 |
| Q: We have recently sold our house to our son on a land contract. We still owe the bank on this house. ... A: Not a simple question. Gain or loss is not reported on installment to son. You are still on your ... | |
| filing taxes | 1/19/2012 |
| Q: My name is cassey im 16 years old, & i live in nd, I am pretty much independant, I live on my own ... A: You can file as an independent person. They dont have the legal right to take you as you don;t ... | |
| Re-doing 1041ES due to a change of situs | 1/17/2012 |
| Q: Due to a change of situs it has been necessary to go back and redo the 2006 form 1041ES for my ... A: Generally. Tax is deducted when paid. But this whole series of events sounds odd. Also. You are ... | |
| penalties | 1/16/2012 |
| Q: A CPA did me 2010 taxes. I had one set of W-4, and two sets of 1099. She overlooked one of the 1099 ... A: If you really did give them the form. Hard to prove unless yiu have correspondence showing you gave ... | |
| Divorce tax questions | 1/14/2012 |
| Q: Samoleski, I was divorced in 2011. I have residential custody. The divorce decree alternates the ... A: HOH is ok (see below copied from pub 501). 1. seems reasonable 2. seems nice on your behalf; ... | |
| Business Loss for 2011 | 1/12/2012 |
| Q: My fiance' and I started a small kennel on our land in about late March/early April 2011. It is not ... A: you are cash based taxpayer. deductions are taken when paid. you should see the rules on ... | |
| mileage when you have no regular workplace | 1/11/2012 |
| Q: I am an employee of a residential move assistance company and there is no regular place of work. I ... A: i bet you are not a contractor, but an employee all along. especially now they changed to w2... ... | |
| reporting pension taxes 1040 form | 1/7/2012 |
| Q: I am 60 yrs old and have always done my own taxes for the IRS, form 1040. Sometimes it's complicated ... A: Check with your local IRS office or see if you can find a free VITA clinic. (google tax vita IRS and ... | |
| church paying expenses | 1/6/2012 |
| Q: Our Church paid travel and retreat expenses on our behalf. Is this considered taxable income for ... A: Morning. Are you just parishioners ? Did you do community outreach while gone? One might argue ... | |
| Personal Tax ? | 1/3/2012 |
| Q: I was given a company car allowance of $33k in 2011 for me to use towards a company car. The car I ... A: Do they report on the lease value of what they paid or the actual price? If you paid extra, you ... | |
| Personal Tax ? | 1/2/2012 |
| Q: I was given a company car allowance of $33k in 2011 for me to use towards a company car. The car I ... A: wow. you are soo not going to like the answer. your company should include the $33k in your ... | |
| HELP! :S | 12/21/2011 |
| Q: I'm hoping you can help me. I'm in the stew and I'm scrambling to make it right but I'm honestly ... A: you can always file new returns. you dont have to live (and die) with what they did. i go back to ... | |
| you must have me confused | 12/20/2011 |
| Q: my case is very similar i'm a newlywed and my husband is incarcerated we would file jointly since we ... A: .. I am not confused at all. you can indeed file as you know how much you made - you dont need ... | |
| HELP! :S | 12/20/2011 |
| Q: I'm hoping you can help me. I'm in the stew and I'm scrambling to make it right but I'm honestly ... A: my point is that just because you get a 1099 and they call you an independent contractor does not ... | |
| Form 1041 | 12/20/2011 |
| Q: My mother in law passed away and 1041 needs to be filed soon. I'm getting help from a tax preparer ... A: what did the lawyer do for $2700? who is preparing the 1041? if you doubt their advice and or ... | |
| taxation of a state pension | 12/18/2011 |
| Q: If I establish residency in Pennsylvania but also want to spend time in my NJ beach area apt. how ... A: in addition to actual residency, intent and other attributes are included. if you now live in NJ, ... | |
| questions regarding incarceration | 12/17/2011 |
| Q: my case is very similar i'm a newlywed and my husband is incarcerated we would file jointly since we ... A: Addendum and reply to comments.... Feel free to repost a question to the open forum or direct to ... | |
| 501c3 use of sponsor and fundraising dollors | 12/16/2011 |
| Q: This is a youth (11-12yo) sports team that is a 501c 3 and has raised funds through sponsor ... A: simple rule. if it seems to good to be true it is. good guiding principal, too. how about you ... | |
| Foreign Currency Trading Losses | 12/10/2011 |
| Q: I have incurred netloss $6,500 in foreign currency trading since Jan 1 2009. Made some 115 trades ... A: schedule d if you think that you are more like a passive investor... more likely moving towards a ... | |
| Lost Business | 12/9/2011 |
| Q: 1.) Wife and husband residents of NY acquired 50% ownership of a S Corps formed in NJ and located in ... A: Just curious.. You consult (and pay) a lawyer... But you want free tax advice here (be careful of ... | |
| RE: LP Historical Cost vs. Tax Basis calculations | 12/9/2011 |
| Q: Good evening, I was hoping that you could help me understand the terms "historical cost" versus the ... A: one other thought... that was a homework question? that is the beauty of America. We both can ... | |
| early disbursement 403 (b) and taxes | 12/4/2011 |
| Q: I took an dibursement and closed a 403 b with a prior employer, when they issued me the final ... A: withholding is required on any amount paid directly to you. if provisions apply which eliminate or ... | |
| NOL carryback | 12/4/2011 |
| Q: I started a freelance business in 2010 and for 2011 will incur about a $5000 NOL. I want to do a ... A: Sorry for delay. Busy week Did you make money in the biz in 2010? How much. ? 1. Yes. But the ... | |
| taxes on Apple Appstore earnings | 12/2/2011 |
| Q: taxes on Apple Appstore earnings I am a 17 year old programmer and turning 18 soon. I am looking to ... A: I would be happy to become your cpa. My fees are reasonable. 1. yes, earnings in the US are ... | |
| W-8BEN and Single Member LLC who is non-resident alien | 12/2/2011 |
| Q: Here is my scenario I am a non-resident alien who is considering being the only member of a ... A: Almost correct. If you create an entity, you should file. But failure to file is a penalty of x ... | |
| Payroll & Benefits question | 11/29/2011 |
| Q: We have some new insurance agents this year. They want us to pretax all of our monthly premiums for ... A: ah. i thought you were an insurance agency paying the agents. But the answer does not really change ... | |
| Payroll & Benefits question | 11/29/2011 |
| Q: We have some new insurance agents this year. They want us to pretax all of our monthly premiums for ... A: generally, all benefits paid for with pre tax dollars is taxable upon receipt. it is also, ... | |
| Real Estate Tax Deductions | 11/25/2011 |
| Q: We received an offer on our house for $175K with the request for sellers to pay up to $6K of buyers' ... A: whoever told you they (fees of closing) are deductible is wrong. flat out dead wrong. who provided ... | |
| Tuition Reimbursment | 11/23/2011 |
| Q: I am in Grad School for my MBA. I work in a sales / engineering role and my employer is reimbursing ... A: sort of like arguing with city hall... it is easiest to convince HR/payroll that they are doing it ... | |
| W-8BEN and Single Member LLC who is non-resident alien | 11/22/2011 |
| Q: Here is my scenario I am a non-resident alien who is considering being the only member of a ... A: wrong. on several counts. first, you really do need a competent tax (and legal) advisor to assist ... | |
| Car Lease Benefits for a Buiness Owner?? | 11/19/2011 |
| Q: I own a photography business that is an LLC and requires me to drive, but less than 12,000 miles per ... A: Good thing you get tax advice from biz owners. I will bet a cup of coffee he or she does something ... | |
| Insurance Settlement/Life Insurance | 11/17/2011 |
| Q: My 17 year old daughter was killed in an auto accident earlier this year. The insurance settled with ... A: Afternoon... first of all i am terribly sorry for your loss. prayers for you, your daughter and ... | |
| state tax ID vs. EIN | 11/14/2011 |
| Q: I just registered my corporation in CA. I have applied EIN. Besides EIN, do I need to apply for a ... A: I, generally, suggest filing the 2553 asap. no reason to wait and all sorts of bad outcomes if you ... | |
| state tax ID vs. EIN | 11/14/2011 |
| Q: I just registered my corporation in CA. I have applied EIN. Besides EIN, do I need to apply for a ... A: yes. there are a whole host of items you need to be aware of - sales tax, payroll, corp tax, sec of ... | |
| taxes on 401 while still in the trust | 11/11/2011 |
| Q: I am planning my family trust and have the following question. Upon my death, my beneficiaries are ... A: I am honestly perplexed how you could actually be considering setting up a trust and you either have ... | |
| per diem | 11/8/2011 |
| Q: I have a small consulting firm that is an LLC with a Subchapter S tax structure. I am away from the ... A: I think you need to hire a cpa. that said, you confuse yourself by saying you are a LLC with ... | |
| 401k state,federal taxes | 11/8/2011 |
| Q: Fired from my job in north carolina after ten years-moved from nc and have been in florida for over ... A: if you take it all, the amount you receive is going to drive that equation -- depending upon your ... | |
| Business Energy Credit | 11/3/2011 |
| Q: Client installed a solar energy roof on his business. Received many dollars in grants. How is the ... A: Sandy The energy credit is for residence not biz... the ITC (form 3468), might provide for a ... | |
| Foreign pension tax rules | 11/2/2011 |
| Q: I was told by an advisor that my UK Self Invested Pension Plan (SIPP) is likely to be viewed by the ... A: Did you tell the adviser you don't believe them? Did the embassy IRS agent provide you WRITTEN ... | |
| Money wired from Europe | 10/27/2011 |
| Q: A client of mine, US citizen, currently living in Greece wants to wire $70k from Greece to US bank. ... A: run..... fast in the other direction. well, maybe not run. but make sure you can sleep at night. ... | |
| marital status filing change | 10/24/2011 |
| Q: I recently finalized my Divorce last week. I know I can file Single. My Children are all of age. My ... A: Much more. But as I said. It will depend on other factors like your pay rate. And external like ... | |
| marital status filing change | 10/21/2011 |
| Q: I recently finalized my Divorce last week. I know I can file Single. My Children are all of age. My ... A: for the rest of the year. you should project your tax due and see how many paychecks are left. you ... | |
| Transfers of assets and liabilities S-Corps | 10/20/2011 |
| Q: I have a client who filed a tax return last year as a final return, but had receivables and note ... A: short answer: no longer answer: nope... distribution from an Scorp to shareholder is a taxable ... | |
| Disputing claimed income | 10/19/2011 |
| Q: I had some hardship a few years ago and got behind on filing. Eventually the IRS sent me a notice of ... A: i would hire competent assistance before i ate again. just my two cents. try a local law school ... | |
| Per Diem Expiration | 10/17/2011 |
| Q: I maintain a permanent home in Indiana. Went to work for company out of San Diego approx. 1 yr. ago ... A: read (should be able to connect to via google) : if not, send me private inquiry with email in ... | |
| gifting money to a son | 10/15/2011 |
| Q: I AND MY WIFE ARE WORKING AND RESIDING IN THE U A E ON A RESIDENT STATUS.BOTH OF US ARE CITIZENS OF ... A: The answer to this question (and the ability to circumnavigate around the roadblocks) is not ... | |
| Per Diem Expiration | 10/13/2011 |
| Q: I maintain a permanent home in Indiana. Went to work for company out of San Diego approx. 1 yr. ago ... A: Travel away from home is essentially tax free for jobs/assignments lasting one year or less. If ... | |
| Designated church account | 10/10/2011 |
| Q: At our church we have a designed account that is titled "Pastor Fund" we have the pastor that puts ... A: IF the pastor picked up the income in his wages and then makes a tithe into the account, it is a ... | |
| IRS issue | 10/7/2011 |
| Q: A few month ago, the IRS said I owed 8K+ in taxes that were due on a 2009 $22K distribution I ... A: get copies of all the stock transactions from fidelity (and/or your HR/personnel dept, w2 and wage ... | |
| Procedure for taking NOL | 10/5/2011 |
| Q: I have an NOL from 2009, however, I do not have income in 2010 that I would benefit from taking it. ... A: i am not positive if you use magi or agi or TI or some other calc, but you still have to do run the ... | |
| stocks and savings for college | 10/5/2011 |
| Q: We currently have about $40,000 in stocks/bonds for our son's college eduction (he will begin ... A: for the most part, if you 'move' shares, you will have a taxable event and recognize any gain. if ... | |
| form 5471 | 10/3/2011 |
| Q: When is this form required for foreign ownership of corporations? A: why did the questioner have to be so LAAAAZZZZZZZZZZZY? go to the IRS website and search form ... | |
| Procedure for taking NOL | 9/22/2011 |
| Q: I have an NOL from 2009, however, I do not have income in 2010 that I would benefit from taking it. ... A: it is best to file and report the amount, even if no current benefit is derived from the filing. ... | |
| 5 year income averaging | 9/20/2011 |
| Q: Is multi-year income averaging still allowed? I heard there is/was a 5 year averaging period ... A: generally no. did you take the losses or were they suspended? and 2010 means return is due in a ... | |
| Per diem | 9/20/2011 |
| Q: I commute 55 miles from my home each way, 5 days a week. My company pays me $50/day per diem. How ... A: commute is taxable. period. now, lets look at things. are you an employee? why does it only last ... | |
| Puerto Rico 'Hacienda Tax' | 9/13/2011 |
| Q: Hopefully you can answer my question or point me to another expert on PR tax law. In 2008 my father ... A: i have no clue about taxes in Puerto Rico. but it does look like there is a property tax on homes ... | |
| Selling Trust Real Estate | 9/7/2011 |
| Q: My mother-in-law set up a living trust in 2000 that included a house and property valued at around ... A: depends... what the trust said happens when she passed, what you have done with it since (ie has it ... | |
| 72t tax law | 9/6/2011 |
| Q: I am currently age 58 and am receiving my pension as of 1 year ago. I worked under a state pension ... A: i quote.. 72(t)(2)(A)(v) made to an employee after separation from service after attainment of ... | |
| Promissory Notes | 9/3/2011 |
| Q: I am about to sell my business and I have a few Promissory Notes to payout after escrow closes. The ... A: I am reasonably sure I can save you money with tax planning strategies. send a new email but mark ... | |
| Promissory Notes | 9/2/2011 |
| Q: I am about to sell my business and I have a few Promissory Notes to payout after escrow closes. The ... A: you should have accrued interest. was the business cash based or accrual? c corp, s corp, llc or ... | |
| Obtaining a clean title on property with tax lien | 8/29/2011 |
| Q: We are trying to buy a house, but the property has expired tax liens on it (over 10 yrs old). The ... A: The irs has to file a release. you wont be able to get title insurance with the old liens up there. ... | |
| Non filing returns | 8/28/2011 |
| Q: A new client has told me he began a new job in 2011 and will be receiving a W-2 for the first time. ... A: generally you have to really do soul searching (for what should be no more than a few seconds) if ... | |
| tax question | 8/27/2011 |
| Q: my question is this. my wife collects social security and i collect social security and a non ... A: i always suggest all my client file three years with no tax due before even beginning to think about ... | |
| QUIT CLAIM | 8/27/2011 |
| Q: Please let me know what your fees and suggestions are for following situation I need to clear up as ... A: 5.... there are always tax consequences... where are you located. ? i am not a lawyer, so I cant ... | |
| volunteer expenses | 8/24/2011 |
| Q: My husband volunteers for WI Operation Lifesaver Inc. and does presentations on safety around ... A: sorry for the delay. at the beach on vacation you can generally deduct all expenses paid for the ... | |
| Tax Carryforwards | 8/22/2011 |
| Q: I was going through an annual report (2010) of USG corp (ticker USG) and found that the company had ... A: (d) Income tax (benefit) expense includes noncash deferred tax asset <b><u> valuation allowances ... | |
| head of household | 8/17/2011 |
| Q: I am a US citizen and my parents moved to the US on March 2011 and have been in my house since then. ... A: generally, 1. yes; see http://www.irs.gov/pub/irs-pdf/p501.pdf 2. not that i am aware on the ... | |
| home office mileage reimbursement | 8/15/2011 |
| Q: Where can I get more information on the laws about home office? I am in a job that has us all work ... A: "Although commuting costs are not deductible, some local transportation expenses are. Deductible ... | |
| Contest Winning a House $600,000 | 8/13/2011 |
| Q: Sir, First off Sir, I appreiate your time in answering this question. I want to enter a contest for ... A: with a new $600k house, a $125k mortgage is a simple equation. they will surely wait a little ... | |
| Small Business Cash Basis | 8/12/2011 |
| Q: Is a small C corporation with $1 million or less in revenue allowed to use the cash basis of ... A: lets see if we can read together.. 448... a1 shall not compute cash receipts... for c corp, ... | |
| 401k rollover to IRA and ESOP | 8/11/2011 |
| Q: I have a 401k worth roughly $100,000 with $30,000 being part of ESOP, as shown below. I have moved ... A: i generally dont do specific investing advice; to rife with opportunity for becoming unhappy with ... | |
| trusts and debts | 7/8/2011 |
| Q: My Gram co-signed on a vehicle for my sister, if her assets are in a trust and later on my sister ... A: need more information. if she (gram) co signed the loan as an individual, the trust wont matter - ... | |
| unauthorized dependent claims | 7/8/2011 |
| Q: im on Social Security Disabilty or (SSA) and I receive additional Social Security payments for my ... A: here is the long and short of it... and lets be real here. the kids give you zero benefit and she ... | |
| S-Corp to Schd E | 7/8/2011 |
| Q: A client of mine has a resisdential rental property in an S-Corp. He wants to disolve the corp and ... A: if you send me a new question with your contact, I will follow up off line =-- use phone one two ... | |
| inheritance from U.K. | 7/7/2011 |
| Q: 1.I am a permanent resident of US. I own an offshore UK bank account in pounds, sterling. I have ... A: first, sorry for your loss. yes. FBAR required (and you are now late if you had more than $10,000 ... | |
| carry forward | 7/5/2011 |
| Q: I had losses in 2000 from a Florida LLC Corporation. The CPA who did personal taxes did not carry ... A: a how much was the loss? b. you do say 2000 - like 10 years ago? c. which CPA? the one who ... | |
| Question related to my LLC | 6/30/2011 |
| Q: First, my home of residence and the address of my LLC is Missouri. I am an independent contractor ... A: this is way more than a do it yourself quiz.. trust me. and I wonder if you even qualify as ... | |
| Oklahoma State Tax | 6/29/2011 |
| Q: In 2010, I was in the process of renewing my teaching certificate and noticed that I was in ... A: need more details about the exact dates, do you have proof of mailing/return receipts or cancelled ... | |
| Given land, then Sold it. Taxes? | 6/28/2011 |
| Q: My mom and step-father were given land as a wedding gift in 2008. The land was sold and closed today ... A: bunch of points. sorry about mom. now - land. who gave it? how do you know it was valued more ... | |
| deductions while working out of town | 6/26/2011 |
| Q: I am a union electrician and I am presently working out of town. I expect the job to last less than ... A: generally, yes. but you would be much better off if the company reimbursed you. (see issues of 2% ... | |
| 1065 Return | 6/25/2011 |
| Q: In 2010, I prepared a return for an entity engaged in the business of buying, fixing up, & flipping ... A: when did you take it out of inventory? it is just moved from one line to the other. you never ... | |
| 1099/W2 | 6/23/2011 |
| Q: My employer has informed me that the first 6 months I have worked for the company she had me ... A: your employer is wrong and is a cheat and you almost 99.3% surely were an employee the whole time. ... | |
| DBA business | 6/21/2011 |
| Q: Son started a lawn care business as a DBA does he pay quarterly under his social security # or does ... A: first. check local rules on sales tax and business license. also, likely need to register DBA at ... | |
| 1065 Return | 6/21/2011 |
| Q: In 2010, I prepared a return for an entity engaged in the business of buying, fixing up, & flipping ... A: put them on capital line of 1065, make the election to move from inventory (board minutes, etc) and ... | |
| Paying Il taxes if living in another state. | 6/20/2011 |
| Q: I AM CURRENTLY A RESIDENT IN IL BUT WILL BE WORKING AND LIVING IN FL FOR THE NEXT 18 MONTHS STARTING ... A: short answer. yes. longer answer; yessssir but you should carefully look at your contract, etc. ... | |
| S-Corp to Schd E | 6/16/2011 |
| Q: A client of mine has a resisdential rental property in an S-Corp. He wants to disolve the corp and ... A: essentially the deal is that you are going to distribute an asset to the shareholder... whatever ... | |
| insurance claims | 6/16/2011 |
| Q: Do you have to claim an insurance claim on your state or federal taxes even if you bought the car ... A: depends what the amounts are. original value of car. amount of damage. amount of payment. amount ... | |
| Court order for filing dependent | 6/14/2011 |
| Q: Can you please help me with this question. In my divorce decree my ex husband is allow to file my ... A: have tried phone.. no answer and no machine. have you tried legal aid in Louisville? www dot ... | |
| Court order for filing dependent | 6/14/2011 |
| Q: Can you please help me with this question. In my divorce decree my ex husband is allow to file my ... A: no not the 8338 - that relinquishes your rights to claim. if you have to go to KY for court ... | |
| Court order for filing dependent | 6/14/2011 |
| Q: Can you please help me with this question. In my divorce decree my ex husband is allow to file my ... A: Hopefully your ex does not file your daughter very hard or with a big file. But if your decree ... | |
| Thai-US tax treaty | 6/14/2011 |
| Q: In the Thai-US tax treaty (available here: http://www.irs.gov/pub/irs-trty/thailand.pdf) Article 12, ... A: lets see.... irs.gov versus college.edu which is likely to be more contemporaneous and which is ... | |
| CAPITAL GAIN, FORM 1041,SCH K-1 | 6/14/2011 |
| Q: I INHERITED SOME MONEY IN THE FORM OF A BANK CHECK. TODAY I RECEIVED A FORM K-I TALKING ABOUT ... A: depends a k-1 from estate is the 1041 paperwork you just received. generally, this means the ... | |
| multi state franchise tax | 6/13/2011 |
| Q: I am an Ohio based company. I have sales reps that live in other states and sell my product that is ... A: great question. not such a simple answer. sort of depends how much the sales guys have... do ... | |
| lesbian marriage | 6/8/2011 |
| Q: i live in pa and want to marry my girlfriend. i have been divorced and got to claim head of ... A: for federal purposes, yes (the irs does not recognize even state same gender marriages where ... | |
| Purchases while deployed | 6/6/2011 |
| Q: My wife and I both work for the DOD as civilians (we are not contractors, we are DOD employees). We ... A: a little more info is necessary where is the land and where is the vehicle? you will actually ... | |
| 1099-C from short sale | 6/5/2011 |
| Q: I have an unusual situation. I have been divorced for 5 years. I took title of the home so only my ... A: why would you want the 1099-c in your name? That accomplishes zero in a tax arena. He is the one ... | |
| Commercial Bldg | 5/24/2011 |
| Q: Client owns a commercial building that was rented to a deli and was being depreciated. The deli ... A: again.. as the other response answered... the old building was removed (and as such 'sold' for zero ... | |
| Commercial Bldg | 5/24/2011 |
| Q: Client owns a commercial building that was rented to a deli and was being depreciated. The deli ... A: interesting... 'suspended' would sound like you are in between tenants and it is just being ... | |
| taxable capital gain on sale of llc with loans-calculate basis of llc when loans | 5/21/2011 |
| Q: We sold an llc. no equity on books, just debt. sale price is 85,000. Selling expenses are 3,000. ... A: generally, but one would want to make sure the prior year's activity was properly recorded. how ... | |
| LLC | 5/20/2011 |
| Q: I am an independent contract radiologist and I have a LLC. My income will only be via 1099. Do I or ... A: Any income earned by the llc is subject to self employment tax You should use a s Corp instead ... | |
| State of Incorporation/Business Structure | 5/20/2011 |
| Q: Nature of Business: Internet based professional service. Most services will be done on the phone, ... A: you can send a private email. if you want to contact me. include your phone spelled.. one two three ... | |
| Multiple rental properties | 5/20/2011 |
| Q: My wife owned our house and another home that is rented out before we got married. Now we are ... A: lots of implications. ownership is the least of your worries. i would suggest llc to hold them - as ... | |
| State of Incorporation/Business Structure | 5/20/2011 |
| Q: Nature of Business: Internet based professional service. Most services will be done on the phone, ... A: Morning In order of questions. Comment about your statement. So let's start with issue zero... ... | |
| Marriage to foreign citizen | 5/18/2011 |
| Q: In February, I was married, in the Philippines, to a Philippine National. I am a native-born US ... A: If she is not physically located here, the default is that you cannot file a joint return married ... | |
| income related to sales taxes | 5/18/2011 |
| Q: Jay, I am starting to put my art works at a gallery for sale. I am not associated with any gallery ... A: With a quick look at the ga st3 form. You put net sale with no tax on line one and any sale for ... | |
| sale of land - reinvest into building | 5/17/2011 |
| Q: I have purchased a land in the year 1986. Now I want to go in for purchase of a flat. If I invest ... A: I don't know the taxes in India. If you are inquiring about USA It is taxable at Lt cap gain rate ... | |
| Gift transfer/repayment | 5/17/2011 |
| Q: My mother in law gave us $100k for the down payment on our house. Technically it was a loan because ... A: aside from lying to HUD??? lets pray you continue to make payments and nobody figures out that ... | |
| sales tax on personal income tax filing | 5/16/2011 |
| Q: I am starting to put my art works at a gallery for sale. I am not associated with any gallery or ... A: art is subject to tax in ga. so you need to make sure either you have an exemption certificate from ... | |
| annuity tax | 5/14/2011 |
| Q: I am the only deduction and my income is fixed at about 32,000 annually. Income is from social ... A: your question is not clear. much more information is necessary to calculate the tax on a ... | |
| Taxation issues re: Renting my primary home | 5/13/2011 |
| Q: I purchased my home in 2007 for $470,000. The mortgage is now paid in full. If I were to sell this ... A: yes. you have it pretty much correct. look in local yellow pages for real estate appraiser (you ... | |
| Tuition Reimbursement | 5/13/2011 |
| Q: I'm looking to take advantage of my employer's tuition reimbursement program and want to confirm if ... A: off to Yale SOM? few questions and observations. If anyone had a clue what the idiots in DC would ... | |
| Tuition Reimbursement | 5/13/2011 |
| Q: I'm looking to take advantage of my employer's tuition reimbursement program and want to confirm if ... A: http://www.irs.gov/pub/irs-pdf/p970.pdf see page 63 all tuition paid by employer is not taxable ... | |
| Tax Estimates on inherited 401k | 5/13/2011 |
| Q: My mother passed away in Oct 2010 at 87. She had inherited her husband's 401k in Feb 2010. The ... A: first, I am sorry for your loss. it seems to me that this was done wrong. why did the 401k pay ... | |
| Taxation issues re: Renting my primary home | 5/13/2011 |
| Q: I purchased my home in 2007 for $470,000. The mortgage is now paid in full. If I were to sell this ... A: good thing to ask. the "opening balance" for basis is the value at date of conversion and as ... | |
| Tuition Reimbursement | 5/12/2011 |
| Q: I'm looking to take advantage of my employer's tuition reimbursement program and want to confirm if ... A: what do you do? what is the course? are you already doing what you do (evidently?) or does this ... | |
| sales tax on personal income tax filing | 5/12/2011 |
| Q: I am starting to put my art works at a gallery for sale. I am not associated with any gallery or ... A: sales tax is generally a state level issue. what state are you located ? do you collect sales tax ... | |
| selecting a financial manager for a nonprofit | 5/12/2011 |
| Q: MEdusa, I'm back and I'm not Herb from Harrisburg! Unrelated to my previous question . . .I serve on ... A: Did you not want to continue our discussion? P morning Herb (not from Harrisburg) I am not ... | |
| M1PR tax form line 6 !! | 5/11/2011 |
| Q: my question is regarding the line 6 in Minnesota revenue M1PR property tax form . in line six it ... A: Looks simple Attach a note explaining why your rent is more than your incom ... I am a full time ... | |
| state taxes on contract labor | 5/11/2011 |
| Q: If you are working as contract labor and your checks come from another state, at the end of the year ... A: where did you work? if you work for apple in ny, you get a check from apple in calif, but you ... | |
| designated/undesignated cash donations | 5/11/2011 |
| Q: Is there an IRS tax code requirement for a 501(c)(3) church to use designated weekly cash donations ... A: this is not a tax question, but one of public charity laws and how to spend charitable donations, ... | |
| IRA and inheritance | 5/6/2011 |
| Q: My mother died last month. She had an IRA. She has a low income tax rate. Of the beneficiaries of ... A: Legally No But if you clear the estate in a hurry and don't have a 1041 to file Bevause no income ... | |
| IRA and inheritance | 5/5/2011 |
| Q: My mother died last month. She had an IRA. She has a low income tax rate. Of the beneficiaries of ... A: if before April 1. no 'catch up' rmd required. it might make sense to disclaim all and let it ... | |
| real estate stepped up values | 5/5/2011 |
| Q: Husband died about five years ago, wife still living. No appraisal was done at that time. Is it ... A: would have to see trust docs and when it was set up. 50 years almost surely guarantees some level ... | |
| real estate stepped up values | 5/5/2011 |
| Q: Husband died about five years ago, wife still living. No appraisal was done at that time. Is it ... A: essentially yes... say they bought house for $100. mom has half basis. dad had the other half. dad ... | |
| real estate stepped up values | 5/5/2011 |
| Q: Husband died about five years ago, wife still living. No appraisal was done at that time. Is it ... A: there are a whole host of things that could be done to validate the value at husband's DOD - ... | |
| IRA and inheritance | 5/5/2011 |
| Q: My mother died last month. She had an IRA. She has a low income tax rate. Of the beneficiaries of ... A: first, very sorry for your loss. depends - who is beneficiary - listed individuals (contract law ... | |
| Partnership Accounting | 5/4/2011 |
| Q: McConnaughy, I am the General Partner of small Limited Partnership and understand that I will need ... A: yes. you can keep on book (gaap) or tax. your choice. unless you need gaap for finance/banking ... | |
| Continuation of earlier question | 5/1/2011 |
| Q: as you requested I am startinga new thread and marking it private. MEdusa: Is the house and life ... A: Alas I don't make Mel money Yes you are right. Contrast (juxtapose?) against earlier question ... | |
| Cost Basis | 4/26/2011 |
| Q: I have a question about cost basis in a Limited Partnership. Let's assume that I contribute (NYSE ... A: not impossible to unwind and move on... is the house and life insurance and all else in the trust? ... | |
| Cost Basis | 4/26/2011 |
| Q: I have a question about cost basis in a Limited Partnership. Let's assume that I contribute (NYSE ... A: i am still perplexed as what the ultimate goal is. this cant be for $1k worth of stock. and the ... | |
| Cost Basis | 4/26/2011 |
| Q: I have a question about cost basis in a Limited Partnership. Let's assume that I contribute (NYSE ... A: key is inside and outside basis. create lp with $1. that is outside basis. Inside basis is the Lp ... | |
| Inheritance | 4/26/2011 |
| Q: My father recently passed and owns a small family corporation which consists of a building and 1 ... A: Morning Sorry for your loss Fee things Now is an excellent time to get rid of the Corp and for ... | |
| not for profit house | 4/25/2011 |
| Q: My wife and I would like to buy a house (the other half of building) and operate it on a ... A: insufficient information - you already own half a house and want the other half. but you want to ... | |
| Setting-up "books" | 4/25/2011 |
| Q: an S-Corporation, Limited Partnership and Living Trust were created for me primarily for liability ... A: I was not trying to be mean, but I am totally puzzled by your lack of information and exactly what ... | |
| S et-up "books" | 4/25/2011 |
| Q: an S-Corporation, Limited Partnership and Living Trust were created for me primarily for liability ... A: I am serious when I ask you - if you paid a lawyer to fill your head with all this silly liability ... | |
| Small business - taxes | 4/20/2011 |
| Q: This is a long and complicated question or at least I think so. Just a warning. In 2006 I started ... A: yes. how did you have the ability to lose 94k when you only put in 70? you either borrowed more, ... | |
| Tax help | 4/20/2011 |
| Q: What is the best form of business entity that I should be using. I was told an LLC and I was also ... A: Your response is almost funny. I'll take losing a potential client because I am too funny over ... | |
| Tax help | 4/20/2011 |
| Q: What is the best form of business entity that I should be using. I was told an LLC and I was also ... A: If you are serious, yes, I am - $250 an hour; I live just outside NYC. But if your project and or ... | |
| Small business - taxes | 4/19/2011 |
| Q: This is a long and complicated question or at least I think so. Just a warning. In 2006 I started ... A: yes. that is essentially correct. yes, your account is 'negative' but that is not necessarily a ... | |
| Rental income | 4/19/2011 |
| Q: I have a client that purchased an investment property (cash) in 2010 and began rehabbing it getting ... A: I DO know it all - just to set the record straight! ps. it is a verrrry simple concept. You only ... | |
| Rental income | 4/19/2011 |
| Q: I have a client that purchased an investment property (cash) in 2010 and began rehabbing it getting ... A: trust me - my soul is fine and I am still PETRIFIED that you are out there holding yourself out as a ... | |
| federal taxes being withheld | 4/17/2011 |
| Q: I have recieved about 5 pay checks bi-weekly and noticed that no federal takes have been taken out ... A: you can take your projected tax for the year (take last year and adjust for how much you make now) ... | |
| dependant | 4/16/2011 |
| Q: I was divorced over 8 years with 2 kids. Divorce decree stated one kid will be claimed by one of the ... A: custodial parent did not get the divorce decree changed while abusing husband was in jail? non ... | |
| Limited Partnership Loss | 4/15/2011 |
| Q: I invested in a limited partnership and received passive loss the last two years. In 2010, the ... A: Did you already take the losses to zero your account or we're they suspended? You can't wait for ... | |
| NO 1099 | 4/15/2011 |
| Q: I worked for an employer in 2010. they released me in december, then refuse to issue me a 1099. is ... A: remind them that failure to get a 1099 is subject to fines. released you ? you were an employee ? ... | |
| Limited Partnership Loss | 4/14/2011 |
| Q: I invested in a limited partnership and received passive loss the last two years. In 2010, the ... A: "fully diluted" has nothing to do with your investment. Dilution is how many shares are outstanding ... | |
| Partnership K-1, line 14, code C | 4/13/2011 |
| Q: Received a Schedule K-1 for Partnership losses. Shows an ordinary business loss of $5300 on line 1. ... A: well, you have a $hitty program, now dont you? methinks there is someplace to input the entry. try ... | |
| FICA | 4/13/2011 |
| Q: My employer has disappeared. He deducted social security and medicare taxes from my paycheck but ... A: No you are not Do you have pay stubs to verify validate amounts? Ps worst type IRS problem is to ... | |
| IRA and income limits | 4/13/2011 |
| Q: My husband and I make too much in our MAGI to contribute to a Roth, so before year end our Roth was ... A: re characterize is done with no penalty. (subject to specific timing and other rules) your income ... | |
| EIN and Taxes | 4/13/2011 |
| Q: I received an EIN for a non-profit we were going to start. We got the EIN but I believe we never ... A: dont pay taxes on what activity? you were going to start means you did not start. what is the ... | |
| deed in lieu of forclosure | 4/13/2011 |
| Q: After % years of negotiating the the bank/mortgage company, i turn my home/property as a deed in ... A: you did not actually pay (means cash-ola out the door) the 71k did you? hence, no deduction (unless ... | |
| Form K-1 | 4/12/2011 |
| Q: I have two business partners, and we own a small business equally. I left the business in early ... A: lighten up dude... I am only working 18 hours a day since feb.. read my response again. I was ... | |
| K-1 | 4/12/2011 |
| Q: Hey, I received my k-1 for a family partnership from the acct of the partnership. I normally just ... A: the k1 is from the 1041. the accountant already filed that. not sure which state is a IT ... | |
| Deductibles | 4/11/2011 |
| Q: A quickAre nursing home expenses fully deductible on Schedule A under medical? Thank you. ANSWER: ... A: no worries. hope she continues to do well. i would ask the second facility what % of the care is ... | |
| sale of land | 4/11/2011 |
| Q: I have been told that if it is your first time for selling land (farm/ranch land) that you do not ... A: That is sort of like the wives tale that you can't get pregnant the first time you have sex? no. ... | |
| Rental Property | 4/10/2011 |
| Q: I own rental property with water damage that was not covered by insurance and will not have the ... A: property must be held out for rental to be rental property... vacant for 10 months and another two ... | |
| Deductibles | 4/10/2011 |
| Q: A quickAre nursing home expenses fully deductible on Schedule A under medical? Thank you. A: A quick answer: Yes. long answer. depends. how much of the expense is related to housing and ... | |
| Excess Money Purchase Keough Contributions | 4/8/2011 |
| Q: Once you pay the 10% excise tax on your excess Money Purchase Keough contributions, can you carry ... A: when did you file the 2007 return? that is my first and most important question - as it would ... | |
| Taxes on a Home Equity Line of Credit (HELOC) | 4/8/2011 |
| Q: Mcconnaughy, My father owns a property (owner occupied, 4 unit rental property) and after some time ... A: way more information needed. and, yes - depending upon the facts, there are a whole host of ... | |
| State Income Tax Filing w/S-Corp | 4/6/2011 |
| Q: My wife's company changed to an S-Corp in 2010. She is a 3% share holder. The company is based in MI ... A: evidently they do business in those states. do they have property (plants?) in those other states? ... | |
| depreciation carry over from farm loss | 4/6/2011 |
| Q: We will show a significant loss for farm income this year. Can we carry over some depreciation to ... A: not just depreciation. but the whole NOL. is this the only biz you run/operate? deprecation is, ... | |
| claiming a child that lived at your residence but not a stepchild. | 4/5/2011 |
| Q: My stepdaughter lives with her mother and her mothers boyfriend. the mother doesn't work. my husband ... A: wow i am not sure if i should call jerry springer or judge judy.... but let me try and follow the ... | |
| 1099 question | 4/5/2011 |
| Q: My employer in order to save money to get through a difficult time is paying me my regular net pay ... A: no. and yes. actually, it is about as bad as it gets. not only cant you be a 1099 AND and employee ... | |
| Proceeds of home equity loan | 4/5/2011 |
| Q: Proceeds of a home equity loan were used for business expenses and purchase of investment property. ... A: depends upon your other loans and such, but generally yes - you can do what you want with the ... | |
| alimony and income | 4/4/2011 |
| Q: My husband left me and I get alimony, I live in my daughters basement and she helps me pay some of ... A: For anyone else in the world. Probably = exchange for services... but you are the kids ... | |
| filing estate 1041 | 4/2/2011 |
| Q: Mother died 11/16/10. stock from life insurance company liquidated in estate $3013.33. Refund from ... A: if you want, send me a new private question with your email or phone, i'd be happy to do both 1040 ... | |
| Uniform Allowance | 4/1/2011 |
| Q: Every year we get a one time check of $750 for uniform allowance. Last year the fire dept started ... A: question is this for cleaning. for you to buy the clothing? for what? do you have to submit ... | |
| filing estate 1041 | 3/31/2011 |
| Q: Mother died 11/16/10. stock from life insurance company liquidated in estate $3013.33. Refund from ... A: first, sorry for your loss. estate only files if they have income. what about her 2010 income ... | |
| Estate Closing | 3/30/2011 |
| Q: A neighbor lost her husband last year. he had assets but no trust of any kind. The assets were ... A: You can generally get away with picking that up on the 1o40 for the spouse for 2009. Or 2010 ... | |
| EDUCATION INTERNSHIP INCOME | 3/29/2011 |
| Q: I claim my 20 yr old as dependent. She recv'd 1099M For $5200 "OTHER INCOME" The $5200 went back to ... A: Yes she does does not mean she is going to pay __Income__ tax on it. (maybe she might owe self ... | |
| IRS contributions for Expats | 3/29/2011 |
| Q: I am a US citizen, Canadian resident, living with my Canadian wife in Canada. She does not file US ... A: I have been thinking about this for a while... I think there are a few things you can do that ... | |
| Paying for college | 3/29/2011 |
| Q: I have a parter and we have a S-Corp. We both have sons in college. Can we pay for their tuition, ... A: sure - it is just like a check to you though. it would be included as a distribution. The key is ... | |
| Estate Closing | 3/29/2011 |
| Q: A neighbor lost her husband last year. he had assets but no trust of any kind. The assets were ... A: depends if the estate had income from day one until day x + 1... when it was settled. not ... | |
| Tax | 3/28/2011 |
| Q: I am going to start a new job as a physician in texas. I am single not married and have no ... A: i do. lots of great planning ideas... and I'd be happy to chat with you in great detail but not on ... | |
| Schedule E | 3/28/2011 |
| Q: I have a question regarding rental property.If a property that is being rented under the fair market ... A: you report the income paid by the section 8 as the income. because the rent is set by section 8, ... | |
| Excess Money Purchase Keough Contributions | 3/27/2011 |
| Q: Once you pay the 10% excise tax on your excess Money Purchase Keough contributions, can you carry ... A: define no longer open? and what about the SE that led to the deduction - do you still do that too, ... | |
| Real estate commission in a loss situation | 3/27/2011 |
| Q: I bought my home in 2004 for $155600 in PA. I did some home improvement in the last 5+ years for ... A: Taxes are deductible on sch A regardless. Burt T with the exclusion of principal residence gains ... | |
| form 843 abaitment on1120 s corp | 3/25/2011 |
| Q: I just found out I owe $1092 (penalties and interest) because I filed my 2009 taxes 1120 form late. ... A: good luck. worth a try. but dont hold your breath waiting for success. I have zero hints for ... | |
| failure to depreciate / rental space allocation | 3/24/2011 |
| Q: My parents purchased a 2-family house as their primary home in 1980. They rented out the (smaller) ... A: yes. gain is appropriate. generally allocate by square foot. depreciation is clearly allowed or ... | |
| 2nd Income Earned | 3/24/2011 |
| Q: I have a very limited kowledge of taxes.I recently took a second job for extra income.I earn 1000.a ... A: a whole lot. seriously the employer should take out taxes (fica and medicare) and also ... | |
| Involuntary conversion | 3/24/2011 |
| Q: Business is an S-Corp. Truck was hit and totally destroyed. Received insurance proceeds and within ... A: did you read the instructions and involuntary conversions at irs.gov? the 20k is a basis ... | |
| OIDs from previous years deductable at maturity? | 3/24/2011 |
| Q: I bought a MarketSafe CD a few years ago from Everbank World Markets for $2000. For 2007, 2008, and ... A: This is, alas, an excellent example of you get what you pay for. no? that said, i am in a good ... | |
| Involuntary conversion | 3/24/2011 |
| Q: Business is an S-Corp. Truck was hit and totally destroyed. Received insurance proceeds and within ... A: generally yes. you get to avoid gain but you need to disclose the involuntary conversion and point ... | |
| Tax liability on the sale of a home in 2011 | 3/23/2011 |
| Q: I'm selling the house. The price is 530K what is my tax liability if I do not re-invest the money in ... A: net cash. you get to deduct any costs added over time to original basis (improvements more then ... | |
| Tax liability on the sale of a home in 2011 | 3/23/2011 |
| Q: I'm selling the house. The price is 530K what is my tax liability if I do not re-invest the money in ... A: married or single? $250k exclusion per - so if married (and spouse qualifies for time/use tests ... | |
| Taxes on a Gift | 3/23/2011 |
| Q: If a church give its minister a gift of money or a car is this gift taxable? A: there are very specific rules for housing (parsonage) and car allowances.. but an outright gift is ... | |
| Coop Purchase in New York city | 3/21/2011 |
| Q: First of all thank you for your valuable time during the tax season. We own a house on Long Island. ... A: i think the irs would look right through the 13k phantom gift. it is really interest. it also ... | |
| Tax on Foreign Property/Loan for dual-citizen? | 3/21/2011 |
| Q: I have dual citizenship (U.S. and Peru by birth) and moved back to Peru two years ago. I am ... A: you file usa tax as both a citizen and resident. having relatives gift you money to make down ... | |
| Real Estate Short Sale | 3/21/2011 |
| Q: Can I deduct Short Sale Loss on Property I had rented for less than the full year of 2010. A: more details needed. renting a full year is not a requirement to take a loss. but you bought in ... | |
| Roth Conversion | 3/20/2011 |
| Q: On 10/05/2010 I opened a new Traditional non-deductible IRA for $6,000 for myself and $6,000 for my ... A: Rowland, Thank you very much for your e-mail. The rules that you mention apply to ... | |
| Coop Purchase in New York city | 3/20/2011 |
| Q: First of all thank you for your valuable time during the tax season. We own a house on Long Island. ... A: the he pays back 13k is the key here. it looks like you are trying to use the gift tax exclusions ... | |
| Coop Purchase in New York city | 3/20/2011 |
| Q: First of all thank you for your valuable time during the tax season. We own a house on Long Island. ... A: depends when he closed. so the timing of the credit is statutory. what was the price? is it more ... | |
| W-2 | 3/20/2011 |
| Q: My son had 3 jobs in 2010. I have three W-2's from 2010. I just noticed that each W-2 is missing the ... A: ummm. because one of two things. either you or the employer is wrong. so, double check the pay ... | |
| Non-Resident Alien Spouse Unusual Situation | 3/20/2011 |
| Q: My wife is German and living in Germany, and I am a U.S. citizen presently living and working in ... A: you can file married filing sep in CA - the only thing that is tricky is the community property ... | |
| CA form 3885A on Depreciation | 3/18/2011 |
| Q: On my 2010 fed return, I reported self-employment income that included a $25 deduction for the ... A: not being an expert on california personal return, i caveat that yes, that seems right no ... | |
| Follow up question from Randall Klein answer on partner abandoning the business | 3/18/2011 |
| Q: Does that mean since I operated as Sole Proprietor through the middle of year to end that part of ... A: without the first half of the question, i cannot comment. but it seems like yes, sole prop is ... | |
| Roth Conversion | 3/18/2011 |
| Q: On 10/05/2010 I opened a new Traditional non-deductible IRA for $6,000 for myself and $6,000 for my ... A: seriously... what part of the re-characterization discussion is confusing? the other people are ... | |
| tax form 8862 | 3/17/2011 |
| Q: Where do I mail it?? Also is there anything else I need to send with it?? ANSWER: attach it to your ... A: Technically you have to amend and file a 1040x with the attachment to a paper return. the form ... | |
| Sole Proprietor tax question | 3/17/2011 |
| Q: Myself and a friend have started a business and are looking into getting a state tax id. We have ... A: you can create a joint venture - which is what you already did. essentially it is an informal ... | |
| Workcampers - Vehicle | 3/16/2011 |
| Q: I have several workcampers with motorhomes and they tow a vehicle. How should I handle this? I was ... A: more information needed. a. motorhome that is driven and registered with a license plate as a road ... | |
| 1099-a | 3/15/2011 |
| Q: I had a second home/investment condo which foreclosed in 2009 this year i recieved the 1099-a ... A: that is more legal "can they come after me..." the answer to me appears to be yes. I would review ... | |
| TAXES ON BACK CHILD SUPPORT | 3/15/2011 |
| Q: I JUST STARTED GETTING CHILD SUPPORT FROM MY SONS FATHER IN DEC. OF LAST YEAR. HE OWES OVER 7,000 IN ... A: depends if they have filed a request for the irs to hold funds too. and of course, don't spend it ... | |
| Roth Conversion | 3/14/2011 |
| Q: On 10/05/2010 I opened a new Traditional non-deductible IRA for $6,000 for myself and $6,000 for my ... A: hopefully, you did the transfer from the first account to the second account as a trustee to trustee ... | |
| 1099C form | 3/13/2011 |
| Q: i foreclosed on a rental property in march 2011.i am expecting to get a 1099c next year.and i know ... A: generally, you dont have to include income on foreclosure if you were insolvent (see form 982 and ... | |
| Sale of Personal Property | 3/12/2011 |
| Q: I understand if I sell my personal residence at a loss I will not be able to write off the loss. My ... A: in theory yes. but in law.. not likely the problem is that your basis in the rental property is the ... | |
| Payroll company | 3/10/2011 |
| Q: This last year the payroll company my employer uses just stopped paying my federal taxes come Aug. ... A: employer has PERSONAL responsibility. if they took it out it does not matter that the payroll ... | |
| federal taxes | 3/10/2011 |
| Q: I gross 475.00 married zero dependants what is amont for federal to be taken out ANSWER: Look up ... A: http://www.irs.gov/publications/p15/ar02.html#en_US_2011_publink1000254686 Wage Bracket Method ... | |
| cancellation of debt | 3/8/2011 |
| Q: client received a cancellation of debt on business property she was depreciating. The 1099c was for ... A: the cancellation of debt is the fmv of amount received (sales price). the basis is 80, less 6100 ... | |
| Passive Activity Limited Losses to Sch C | 3/7/2011 |
| Q: I have recently learned that my rental property rented for average periods of 7 days or less ... A: see my earlier comment. just a minute ago. I think this is a duplicate question? the issue is the ... | |
| at risk amounts for sch c | 3/7/2011 |
| Q: I have many realtors in my area. All of them are showing losses for this year. Are they allowed to ... A: one is already at risk because you paid the losses. cash out of pocket is as 'at risk' as it gets. ... | |
| Passive Activity Limited Losses to Sch C | 3/7/2011 |
| Q: I have recently learned that my rental property rented for average periods of 7 days or less ... A: by amending prior year returns I am not sure I agree with the schedule c treatment in the first ... | |
| disabled | 3/5/2011 |
| Q: I have a couple of questions. The first is my son & his wife live with me and they are both ... A: yes but check to make sure that they dont claim themselves. and also that it does not ruin their ... | |
| Mortgage Carryback Loss Deduction | 3/4/2011 |
| Q: We sold our personal residence in 2009 (at a loss of $75,000) to a couple and we carried back the ... A: schedule d is where you report gain and loss. the interest was not added to the balance nor was it ... | |
| finding out what years needed to file taxes | 3/3/2011 |
| Q: Where do you go or who do you call to find out what taxes you did not file since you have been able ... A: http://www.revenue.state.pa.us/portal/server.pt/community/personal_income_tax/14692 \ if she did ... | |
| finding out what years needed to file taxes | 3/2/2011 |
| Q: Where do you go or who do you call to find out what taxes you did not file since you have been able ... A: you need to file for all years you would have paid tax or had tax taken out (if you want any of that ... | |
| 1099-B. | 3/1/2011 |
| Q: I'm planning on going with Turbo Tax for the first time. I usually do H and R block but feel like ... A: Not sure if you had too much coffee this morning or you are just generally an a$$hole all the ... | |
| Disabled and cashed out 401k | 3/1/2011 |
| Q: I'm 54 and disabled and had to close out my 401k in 2010 to pay medical bills and try to meet ... A: i am surprised you had to pay a 5% penalty to the plan? where you invested in an annuity? the loss ... | |
| Merchant Mariner state income taxes | 2/28/2011 |
| Q: To Randall Klein, I am a merchant mariner with coast guard credentials. I work as a mate on a ... A: first of all - f@cking Kudos to you for taking off and seeing the world. That take HUGE ovaries and ... | |
| taxes and college | 2/28/2011 |
| Q: I asked this question earlier,,,, maybe you can clarify Subject: children who work and future ... A: that does not look like my answer.? was that me? mmm anyway. Personally, I like the idea of ... | |
| CHILD CARE CREDIT | 2/28/2011 |
| Q: THE COURT HAS ORDERED ME TO WRITE A SEPARATE CHECK MONTHLY TO MY WIFE SOLELY FOR CHILD CARE. I ... A: I appreciate your service to our country. that said, you win ;) see ... | |
| Splitting Residency | 2/27/2011 |
| Q: We are married and filing jointly our Federal taxes, but we are splitting our primary residency: I ... A: if you truly are resident of two different places (lets not just try to get the homestead exemptions ... | |
| Short Sale - How to compute loss | 2/26/2011 |
| Q: in 2010, i did a short sale on a rental property. The property was purchased for $615K as a primary ... A: i believe so total "proceeds" are the full amount of the debt on both loans. (482 if i am still ... | |
| Short Sale - How to compute loss | 2/26/2011 |
| Q: in 2010, i did a short sale on a rental property. The property was purchased for $615K as a primary ... A: for recourse, the rule seems to state the "sales price" is merely the amount rec'd for the sale - in ... | |
| Mortgage Carryback Loss Deduction | 2/26/2011 |
| Q: We sold our personal residence in 2009 (at a loss of $75,000) to a couple and we carried back the ... A: morning What you essentially have is a sale of your residence and the creation of a loan. Sale of ... | |
| Short Sale - How to compute loss | 2/25/2011 |
| Q: in 2010, i did a short sale on a rental property. The property was purchased for $615K as a primary ... A: you are not going to like this.. but the basis for business use is the lower of original cost or ... | |
| dependent claims | 2/25/2011 |
| Q: I am the non custodial parent and my ex has released me to claim the children for the three previous ... A: you just dont like the answer. it was verrrry correct (10 for accuracy) and very clear and succint ... | |
| First Time Home Buyers credit | 2/24/2011 |
| Q: I own a house which was acquired and paid-off before my wife and I married, and it's in included in ... A: December 2010 is beyond the deadline. no credit available. ... | |
| Mileage Reimbursement | 2/24/2011 |
| Q: I have an S-Corp and pay myself a salary as an employee. I have a home office and put in alot of ... A: any limit imposed by turbo tax enabling or limiting your ability to deduct mileage has no ... | |
| tax return 2010 | 2/24/2011 |
| Q: My wife worked most of 2010 as a self employed, without taxes being taken from the payment. Later in ... A: Biz income from 1099 on schedule c on 1040 wages o From w2 on line one 1040 Form 1120-s filed with ... | |
| What activities does the IRS counts toward Real Estate Professional Status for Tax Purpose? | 2/24/2011 |
| Q: I understand the 50% of time and 750 hrs rule that a person must spend in real estates activities to ... A: 4am staring... Sounds like she needs to stop chatting on Facebook and get a life But how much ... | |
| What activities does the IRS counts toward Real Estate Professional Status for Tax Purpose? | 2/24/2011 |
| Q: I understand the 50% of time and 750 hrs rule that a person must spend in real estates activities to ... A: It is all the stuff related to management of the real estate busines. Collecting rent screening ... | |
| LLC s-Corp sold investment a total loss | 2/23/2011 |
| Q: My husband invested 26K in his brothers S-Corp five years ago, in which, my husband was 10% owner. ... A: There should be a final return by brother is first thing Depends upon what the k1 provided over the ... | |
| Grantor Tax Information Letter | 2/23/2011 |
| Q: Each year I receive a "GRANTOR TAX INFORMATION LETTER" from a LITIGATION TRUST I joined when I owned ... A: a. be leery in life of finding people who did.... that is why lemmings jump off cliffs, no? ... | |
| In Home Day Care renovations | 2/22/2011 |
| Q: we recently opened an in-home day care. We renovated the lower level of our home strictly for the ... A: if you were not doing business until 2011, they were 'placed in service' then. I would be reticent ... | |
| tax return 2010 | 2/22/2011 |
| Q: My wife worked most of 2010 as a self employed, without taxes being taken from the payment. Later in ... A: the creation of a corp results in the requirement to file, unless she rescinds with the sec of state ... | |
| dependents | 2/22/2011 |
| Q: my daughters father and i had an agreement to each claim her every other year even though i am the ... A: Explain agreement. Written ( do you have copies of email corrrrspobdrnce?) Divorce decree? Or ... | |
| NY taxing NJ unemployment wages | 2/21/2011 |
| Q: I am a resident of NJ filing NY nonresident state tax return. I had NY income and prior NJ ... A: Because you Sid not complete all the right boxes in turbo tax... Ny has authority to tax earned ... | |
| Capital Loss: how to know when to claim it? | 2/21/2011 |
| Q: An neighbor has asked my advice about handling the tax implications of a real estate trust ... A: To be honest, my thoughts on this situation are to run to higher ground. If your neighbor made a ... | |
| capt gains | 2/20/2011 |
| Q: I have recently sold a small business ( $ 300,000 ) I have been informed by my accountant that the ... A: dependds how you set it up. what you put into the biz. what your basis is. are you an llc or s ... | |
| Head of Household question | 2/20/2011 |
| Q: Taxpayer live with her son in the US. Last year (2010) in November, she went back to her home ... A: as odd as it sounds, and quite unique, i'd have to agree with you. IF you were my client, I would ... | |
| S-Corp Officer Compesation | 2/20/2011 |
| Q: S-Corp Officer Compensation when husband is 100% shareholder and also and officer, and wife is an ... A: No depends upon how much income at the corporate level we are talking about. But u still need to ... | |
| Paying Taxes in Different States | 2/20/2011 |
| Q: I am bi-coastal between Florida and California, with my residency in Florida, but my business, which ... A: Yes you have to register I am happy to toss out some short answers. Like you will be required to ... | |
| Head of Household question | 2/20/2011 |
| Q: Taxpayer live with her son in the US. Last year (2010) in November, she went back to her home ... A: sorry.... i re-read your reply she went to asia and got married and stayed there? or returned to ... | |
| S-Corp Officer Compesation | 2/19/2011 |
| Q: S-Corp Officer Compensation when husband is 100% shareholder and also and officer, and wife is an ... A: No need to pay you. IF. You don't participate Issue arise WHEN You DO Participate... you ... | |
| Bona fide employment | 2/19/2011 |
| Q: What is bona fide mean to IRS ANSWER: Generally means that something is not a sham Plus it usually ... A: Thought you said no ss# Get and rears ita form s8 Independent contractor vs employee I am mobile ... | |
| State tax on Rental Property in Florida, live in MD | 2/18/2011 |
| Q: I live in Maryland. I am planning to buy and rent property in Florida. Will I need to claim my ... A: you will pay resident tax in your home state on your global income (including florida) as the ... | |
| NO 1099 from employer | 2/18/2011 |
| Q: I keep asking for my 1099 / W-2 from my employer and I keep hearing " Tomorrow, tomorrow" which ... A: a. which is it - a 1099 or w2? if you are an 'employee' a 1099 is the wrong item. if you are an ... | |
| Charitable Deduction Changes | 2/16/2011 |
| Q: Mr. McConnaughy The next proposed Federal Budget has just been submitted to Congress. It will take ... A: wow.. can you be more obfuscating? or obtuse? If I had a crystal ball, I would be playing ... | |
| Sale of residential real estate when primary beneficiary dies | 2/16/2011 |
| Q: A house was left in an estate tax sheltered trust for the benefit of husband ( wife had died and ... A: capital asset as it was never 1231 property. but a whole host of caveats come wtih this..free ... | |
| W-3C and W-2C | 2/15/2011 |
| Q: Our FEIN was omitted from the W-2s and W-3 filed. What do I need to do to correct this? None of ... A: the corrected returns must include all the correct data. imagine they throw away the old ones and ... | |
| flip property or rental income property? | 2/15/2011 |
| Q: We started a house flipping business a few years ago. We are actively involved in running the ... A: Silly me on the 8825. I just assumed yu were llc and not SP Not terribly common I do have two RE ... | |
| tax question | 2/15/2011 |
| Q: I work for a retail company as a store manager. My question involves what I am allowed to claim ... A: Form 2106 There is even an EZ version 2106-eZ Go to IRS.gov and search for instructions Read them ... | |
| Reporting LLC Income/Loss on S-corp | 2/15/2011 |
| Q: I own 100% of my personal S-Corp that I run my consulting business through. I pay myself salary and ... A: Let's start over.... Issue number one with s Corp owning llc is thatwhwn you sell your intereat ata ... | |
| What state do I pay quarterly estimated taxes to? | 2/15/2011 |
| Q: We receive quarterly disbursements from a Trust fund via an LLC in another state. Which state ... A: you have income from maryland and need to file non resident there. you also live in NC.. so you ... | |
| What state do I pay quarterly estimated taxes to? | 2/15/2011 |
| Q: We receive quarterly disbursements from a Trust fund via an LLC in another state. Which state ... A: still odd that the trust would roll over into an llc if you have beneficiary income from maryland ... | |
| Reporting LLC Income/Loss on S-corp | 2/15/2011 |
| Q: I own 100% of my personal S-Corp that I run my consulting business through. I pay myself salary and ... A: you missed my point. you obviously get what you pay for. there are serious serious reasons why I ... | |
| sold interest in rental | 2/14/2011 |
| Q: I have a question regarding the sale of my share of a rental property, in which my brother and I ... A: basis is purchase price, less depreciation, plus improvements. gain is amount realized less ... | |
| Resale certificate and Non us resident | 2/14/2011 |
| Q: I just created a company in Florida and I wanted to get a resale certificate. I wanted to complete ... A: Yes you have to register firincime tax See "domiciled" in Florida Now, wheither or not you make ... | |
| Home office depreciation | 2/14/2011 |
| Q: My wife has a small web based business in which she has a whole room in the house dedicated to the ... A: Ok to leave as a business. But I would not take home office prospectively including 2010 I would ... | |
| tax question | 2/14/2011 |
| Q: I work for a retail company as a store manager. My question involves what I am allowed to claim ... A: No clothing unless it is only usable at work (embroidered name on back/uniform or something like ... | |
| What state do I pay quarterly estimated taxes to? | 2/13/2011 |
| Q: We receive quarterly disbursements from a Trust fund via an LLC in another state. Which state ... A: Llc is beneficiary of trust? Does trust or llc have any activity? What states are involved? Trust, ... | |
| Home office depreciation | 2/13/2011 |
| Q: My wife has a small web based business in which she has a whole room in the house dedicated to the ... A: As I said I personally so not take the home office. That said, the rules on hobby losses allows ... | |
| Mortgage Interest | 2/13/2011 |
| Q: If I coborrow a mortgage with a parent on a house that I will live in and not my parent, can we ... A: co-borrow... split? if they own, they can take deductions. if they only lend, they cant take ... | |
| flip property or rental income property? | 2/13/2011 |
| Q: We started a house flipping business a few years ago. We are actively involved in running the ... A: Convert by including in rental income on 8825 By including in deprecuable basis and by depreciating ... | |
| divorce tax laws | 2/13/2011 |
| Q: My partner is divorced w/ 3 kid's that live with us over 50% of the year. when she was divorced some ... A: not aware of any specific law changing dependency deductions. does the divorce decree stipulate ... | |
| Reporting LLC Income/Loss on S-corp | 2/13/2011 |
| Q: I own 100% of my personal S-Corp that I run my consulting business through. I pay myself salary and ... A: Yes no maybe and Sort of. A member of llc can take loss beyond cash basis if they have a defiect ... | |
| Home office depreciation | 2/13/2011 |
| Q: My wife has a small web based business in which she has a whole room in the house dedicated to the ... A: yes. it will. home office deduction is legal but it is a NIGHTMare in hiding. as a cpa, I dont ... | |
| education expense credit and hope scholarship | 2/12/2011 |
| Q: My daugther receives a $4000 hope scholarship in TN. I claim her as a dependent on my return. can ... A: No need for her to pick up the income but you can only take the education expenses ABOVE her $4,000 ... | |
| Audit | 2/12/2011 |
| Q: A friend and i started a business but nothing is on paper, we have no license together. If i let her ... A: then you have nothing if she makes money? can a contract not be enforced if it is not written? ... | |
| Gift certificates | 2/12/2011 |
| Q: My friend works for a company called Airtime. They sale Alltell phones and accessories. She ... A: The underlying rules of her promotion probably clearly stated that the parent was giving the rebate ... | |
| Taxes for a business | 2/12/2011 |
| Q: If i had no formal partnership and didnt put any money into the so called "business" do i need to ... A: Their??? Logo on your product. And you still have stock. As in ownership stock or inventory ... | |
| Taxes for a business | 2/11/2011 |
| Q: If i had no formal partnership and didnt put any money into the so called "business" do i need to ... A: does not sound to me like you have anything to worry about. define why you think you have any ... | |
| LLC for rental properties | 2/11/2011 |
| Q: My sons and I have formed an LLC. I loaned the partnerhip the monies to buy 4 rental properties. I ... A: see Form 8825. You need to have the interest allocated to the property in case you sell one. Not ... | |
| back child support | 2/11/2011 |
| Q: 000 in back child support and filed his taxes and told me he claimed one of our kids. He has ... A: first, in our neck of the woods, $35k back gets you a free ride to the nice little cozy lockup where ... | |
| Child support | 2/10/2011 |
| Q: My husband has three children from a previous relationship. He was away for 8 years so his child ... A: away - like prison away or ran away with the circus? generally taking the children for mom if ... | |
| Corp 2009 taxes..... | 2/10/2011 |
| Q: I just filed (and sent in my 2009 Sub-S corp.(4 months late with extension) and personal taxes ... A: with medical and letters, you are likely to avoid any penalty - but most penalties are calculated on ... | |
| Tax deduction for dual credit course | 2/9/2011 |
| Q: My Daughter took dual credit classes at the local university to satisfy one of the requirements for ... A: if i could tell you where usa college credits were going to be 4 years from now, I'd live in Las ... | |
| Tax deduction for dual credit course | 2/9/2011 |
| Q: My Daughter took dual credit classes at the local university to satisfy one of the requirements for ... A: if you actually paid the university (and high school was either free via local tax or her tuition) ... | |
| How will IRS tax a Delaware Series LLC owned buy an Australian Self Managed Superannuaton Fund? | 2/8/2011 |
| Q: A Self Managed Superannuation Fund in Australia will become the owner of a Delaware LLC. The ... A: Here is the principal point you missed in my first reply "way beyond cheap-oh free online tax chat. ... | |
| 1099-a | 2/7/2011 |
| Q: I have a rental property that went to foreclosure on may 14, 2010. The 1099a says balance of ... A: generally no. the extinguishment of debt is equivelent to a sale at the amount of the loan (crane ... | |
| 1099-a | 2/7/2011 |
| Q: I have a rental property that went to foreclosure on may 14, 2010. The 1099a says balance of ... A: how do you change the facts and make the partnership part go away? that makes no sense whatsoever. ... | |
| IRS Form 8332 | 2/7/2011 |
| Q: If I filled out and filed an 8332 back in 1997, but can not find it and do not know for sure how ... A: also, most div agreements only cover until kids are 18. so, it is likely that if you now provide ... | |
| Monetary gift | 2/6/2011 |
| Q: My brother in law wants to give us a new house. We have a $100,000.00 to build a house on our ... A: Depends No tax. You have some exemptions but if given all at once technically There is an IRS form ... | |
| 1099-a | 2/6/2011 |
| Q: I have a rental property that went to foreclosure on may 14, 2010. The 1099a says balance of ... A: how did you own it. was it titled in a partnership EIN? why send the 1099A to only you? did you have ... | |
| 1099-A Assistance | 2/5/2011 |
| Q: I entered into a home equity loan for my main residence in May 2004. I filed Chapter 7 Bankruptcy ... A: when did you actually settle the debt? when did lender provide release? Whatever the credit report ... | |
| 1099 question | 2/4/2011 |
| Q: We pay referral fees by check to a subcontractor that also does some work for us. I am wondering if ... A: All payments should be included (assuming you want to take a deduction for all the payments -sort of ... | |
| tax return | 2/4/2011 |
| Q: My parents are France citizen visited me more than 183 days in 2010. I will claim them as dependence ... A: Thus is not a step by step " how to" forum. You neeed to hire someone to help you If you have a ... | |
| Allocation for business sale | 2/4/2011 |
| Q: I sold my online business last year -- an ecommerce site. The buyer and I did not do an asset ... A: First Find and read "Martin ice cream" and then read the IRS code 1060 and instructions for the ... | |
| taxes | 2/4/2011 |
| Q: my son works part time, how much can he make before he has to file federal taxes? thx A: depends if you take him as a dependent. which sounds likely. Otherwise, the following applies. ... | |
| ISO long and short term | 2/3/2011 |
| Q: My company was acquired in 2010. I had shares of common stock that I sold to my buyer company,and ... A: you should get a statement from the company and/or the broker. the 'gain' on market price over ... | |
| Tax implications for a foreigner | 2/3/2011 |
| Q: My wife and I are looking to buy a house in Colorado. My father in law (who is from South Africa and ... A: no name on the lease. you own it. no? how about all the names on the deed? or you mean you are ... | |
| 1099 misc | 2/3/2011 |
| Q: I have been all over the web and cannot get a straight answer. Any help will be appreciated. ... A: Well, unless you convince the IRS that you are Daniel Negreanu, (at $2500 you don't quite cut the ... | |
| filing taxes in other states | 2/2/2011 |
| Q: I was just notified from my company that if I sell to someone in the state in which I am employed ... A: depends upon what you sell. how you get paid, where the credit approval or sales department is, how ... | |
| Gift Tax | 2/2/2011 |
| Q: If a company was to be giving away money to individuals over the amount of the allowed $13,000.00 ... A: nothing is that simple. if you ask about a few thousand... no big deal. for starters.. NO company ... | |
| Taxation of foreign per diem not used | 2/1/2011 |
| Q: Sir or Madam, I have never used all of the foreign per diem. Must I declare the difference between ... A: You hat to keep the difference No tax penalty Some people use the per diem to live large or ... | |
| First-Time Homebuyer Credit | 2/1/2011 |
| Q: I purchased my home the first of July 2008. I still live in my home. I received the first time ... A: they changed the law after the first wave program and did not see fit to modify it for that other ... | |
| mileage question | 1/31/2011 |
| Q: I live in Tennessee and my company gives me 25 cents a mile for business so in the past I have ... A: read the section in http://www.irs.gov/publications/p463/ch06.html on accountable plans (you have ... | |
| form 1099-B | 1/31/2011 |
| Q: I received 1099-B from Charles Schwabb proceeds from broker exchange transactions for amount 5125.01 ... A: sounds like you have employer stock? it is the only reason why you would get it in your w2. ... | |
| S-Corp Distributions | 1/31/2011 |
| Q: My negative earnings is bothering me about our one owner (husband and wife)S-Corp. The first two ... A: that should work. I did not realize you also drew pay. regarding pay (self employment income) and ... | |
| Preschool Teacher | 1/31/2011 |
| Q: I want to start a preschool in the basement of my home. I want to have a teacher or assistant teach ... A: to be an independent contractor - they must have close to total control. see IRS form ss-8 for ... | |
| tax dedcution | 1/31/2011 |
| Q: We are an LLC that has partnered with an individual. We produce a food crop that we want to give to ... A: need more data. you are an llc (single member or otherwise) and you agreed with johhny appleseed to ... | |
| Self Employeed Health Insurance Deduction | 1/30/2011 |
| Q: I read with interest the related question and your answer of 10/26/2009 (printed below). In my case ... A: I agree that there is a preference by the IRS that the policy be in the name of the insured but ... | |
| Delinquent tax return filing | 1/29/2011 |
| Q: I recently received a request for tax return (CP-59) from IRS which asked me to file a tax return ... A: You seem to think you have all the answers Resident wife with investments outside the USA (and ... | |
| taxation of unemployment income for nonresident | 1/28/2011 |
| Q: My situation is such that I work in California (while attending school full time), but maintain ... A: You c Are allowed to file resident in Oregon as you Are full time student But you have to report ... | |
| debt cancellation | 1/27/2011 |
| Q: Our mortgage company canncelled some of our debt on our home loan due to the fair market value drop, ... A: yes they will (should) send you a 1099c how you report it depends if you have other assets or if you ... | |
| Weekly Federal Income Tax Withholding | 1/27/2011 |
| Q: Strange situation - I get paid weekly and on any given week the federal witholding is approx. ... A: yes it is correct grounds??? do you really want to get into a pi$$isng contest with your boss? a. ... | |
| Final 1041 | 1/27/2011 |
| Q: I hired a CPA/tax person to do my MIL's "final" 1041 but I have some concerns which he will not ... A: I have a friend who read a flight manual. Should I let them fly my. Plane ? First Review the ... | |
| S-Corp Distributions | 1/27/2011 |
| Q: My negative earnings is bothering me about our one owner (husband and wife)S-Corp. The first two ... A: What you have to do is distribute less then income each year going forward then 3A will someday get ... | |
| claim five year old tax | 1/27/2011 |
| Q: I am permanently disabled and I receive SS benefits and am not working. I am taking my GED. I care ... A: so sorry for your situation. yes. as long as your father (child's grandfather) provide more then ... | |
| Texas taxes- Legally seperated if husband incarcerated? | 1/27/2011 |
| Q: Last year, I filed married jointly. However, he owes for school and they took half (filed injured ... A: mf sep is not a big deal if you print and mail. efile only expedites refund by a week or three. ... | |
| Return Sign-On Bonus | 1/27/2011 |
| Q: I recently left my previous employer (NJ) and had to return my sign-on bonus ($3k). They said that ... A: you paid the $3k back and your wages were reduced... which means your tax paid was also reduced. no? ... | |
| llc | 1/26/2011 |
| Q: I am a REALTOR and being such I am paid by a 1099. This past year I set myself up as an LLC in the ... A: you should really have a pro prepare your return. but that said, all your commissions were paid to ... | |
| head of household | 1/26/2011 |
| Q: Is the case law for the following situation? Husband leaves wife and children in April and maintains ... A: from publication 501. it is pretty clear. she did not live with spouse. you are going to have ... | |
| claim five year old tax | 1/26/2011 |
| Q: I am permanently disabled and I receive SS benefits and am not working. I am taking my GED. I care ... A: let me get it right. you have a five year old child lives with your parents. but you provide care. ... | |
| dependent | 1/26/2011 |
| Q: My wife is having twins on Sept 2011. Since We have Two daughter already we wont be able to support ... A: congrats on your new kids... so let me get this right, you are having twins and you are going to ... | |
| buyout of non-compete | 1/25/2011 |
| Q: I am planning on leaving my practice at a medical clinic to join a clinic across town. I will have ... A: What part of my answer is too complicated? REDUCE the amount realized and proceed Plus, I said ... | |
| American Opportunity Tax Credit | 1/23/2011 |
| Q: I qualify for the American Opportunity Tax Credit, however, I am curious as to why I am not getting ... A: actually you are getting the full benefit you can get a refund of 40% of the total credit in cash. ... | |
| living expences | 1/23/2011 |
| Q: jan 17 of 2010 i started a term job for the gov. it was for 13 months not to exceed but can be ... A: that silly tax man you have had for 25 years... gee, he is right. go figure. what was he thinking? ... | |
| Are reports needed? | 1/21/2011 |
| Q: Several questions here, please bare with. I sell sealed snacks from my apartment on a very, very, ... A: http://www.cityofws.org/Home/Departments/FinancialManagementServices/RevenueCollections is the ... | |
| bakery buisness | 1/21/2011 |
| Q: My brother and i own a wholesale bakery,it is set up as unit trust company.We have been in business ... A: gst is either canada or EU - both of which I am less familiar with. same with a unitrust business ... | |
| federal income tax return | 1/21/2011 |
| Q: I have a question regarding my wife's filing separately this year. I, regrettably, have debt do due ... A: more concerned about paying your rightful debt... but one way to avoid having refunds attached is ... | |
| income tax | 1/20/2011 |
| Q: My husband recently passed away on DEC. 30th and can i file his 2010 income tax? ANSWER: i am ... A: you can file 2010 as if you were married for all of 2010. The irs does not take away your ability ... | |
| income tax | 1/20/2011 |
| Q: My husband recently passed away on DEC. 30th and can i file his 2010 income tax? A: i am terribly sorry for your loss. you have the legal right to file as married at the end of the ... | |
| Qualifying Child for the earned income credit | 1/20/2011 |
| Q: In the past years I have been able to get the EIC for my 2 nephews who live with me along with my ... A: the key is that you have to have higher agi then does your sister. see C4C at the bottom. C2B ... | |
| 1099-Misc for Contracted Speech Therapist | 1/20/2011 |
| Q: Is a home health care company (PLLC), who contracts with a corporation that employs speech & ... A: yes. 1099 is required. corporations are not included in the exemption because the IRS said so. It is ... | |
| Sale of S Corp | 1/20/2011 |
| Q: A family owns two S-Corps-a restaurant and bar because of the smoking ban. The bar is profitable ... A: Need much more info Aaa account Basis and possible built in gain Did s Corp deduct losses Did they ... | |
| Simple Trust | 1/19/2011 |
| Q: I have a simple trust for a nonresident. It is land rent. There is only one person who received ... A: yes. bene should also get a k1 copy. you mean non resident of one state? not of the usa? i ... | |
| Quick Question | 1/19/2011 |
| Q: I am on SSI and thinking about trying to return to work. From the info I have gathersed so far, I ... A: Would you really risk your SSi on a free chat board??? Duh! Get WRITTEN answers from your ... | |
| College student - taxes | 1/18/2011 |
| Q: (2) I received research stipend in this past year that was not included in the W-2 I received from ... A: research stipend should be taxable if you had to perform services in order to receive. did you host ... | |
| Inheritance of foreign property | 1/18/2011 |
| Q: Property in an asian country was inherited and sold. My questions revolve around tax issues. The ... A: from a US perspective... residents (and citizens) have to report income from all sources wherever ... | |
| Taxes | 1/14/2011 |
| Q: 1 man C corp I am the only employee, cash basis I have $16,000 in uncashed paychecks to myself for ... A: you have answered your own question, no? "leave as is" is not correct for a cash based taxpayer who ... | |
| Taxes | 1/14/2011 |
| Q: 1 man C corp I am the only employee, cash basis I have $16,000 in uncashed paychecks to myself for ... A: did not answer first question. is corporation accrual or cash method of accounting ? second ... | |
| Taxes | 1/14/2011 |
| Q: 1 man C corp I am the only employee, cash basis I have $16,000 in uncashed paychecks to myself for ... A: if that is the case, amend your w3 and file corrected w2 not taking the deductions on corporate ... | |
| can i file taxes? | 1/14/2011 |
| Q: wondering under my circumstances if i cant file taxes this year? A: well. we have no idea what "your circumstances are".. so no clue. but if you let us know what is ... | |
| Mileage Question | 1/14/2011 |
| Q: I'm trying to figure out how to calculate my commuting miles. I live 60 miles away from my ... A: commuting miles are not deductible. anyway. so it does not matter where you live or stay or how far ... | |
| general tax question | 1/13/2011 |
| Q: I STARTED SCHOOL FULL TIME AT UNIVERSITY OF PHOENIX MARCH 2010... SHOULD I BE EXPECTING A 1098T FORM ... A: generally yes. on both counts. depends upon how much you spent and how much you got ... | |
| 1099-Misc question | 1/13/2011 |
| Q: Would our company send a 1099-Misc(for nonemployee compensation) to an individual that is a ... A: yes I would think that you are safe because you paid the organization, not the individual - the ... | |
| 1099-Misc question | 1/13/2011 |
| Q: Would our company send a 1099-Misc(for nonemployee compensation) to an individual that is a ... A: so you wrote the check payable to the notforprofit entertainment company and you have a copy of ... | |
| w-2 | 1/13/2011 |
| Q: I started working recently.... my 5.5 months of pay for 2010 with a 10k signing bonus showed a gross ... A: likely deductions were medical insurance and other items you pay for. taxes is taxes (fed, state, ... | |
| 1099-Misc question | 1/12/2011 |
| Q: Would our company send a 1099-Misc(for nonemployee compensation) to an individual that is a ... A: if sending other 1099, when in doubt, include everyone - no harm for sending an extra 1099... ... | |
| office in home mileage reimbursement | 1/12/2011 |
| Q: I work for a church and we just hired an employee that works primarily from her home. We reimburse ... A: primarily from home is the issue. if you said she works from the church, only the net beyond the ... | |
| peer to peer notes | 1/10/2011 |
| Q: I have bought and sold a number of notes through a peer to peer lending site. I am having a ... A: cost basis is original purchase price. value at purchase has no bearing on the equation. you paid ... | |
| taxes not withheld | 1/8/2011 |
| Q: I am receiving unemployment benefits, although this company is considering me as an independent ... A: several open issues which need additional clarification. a. UE benefits... while you are a ... | |
| capital gain tax rate in puerto rico | 1/7/2011 |
| Q: what is the capital gain tax rate in Puerto Rico on gains from working in the states A: i BELIEVE that the PR taxes follow the US code with only a very few minor exceptions... that ... | |
| Allowences on W4 | 1/7/2011 |
| Q: I am a single male no children no disability's I make about $22,365.43 before taxes and have a pre ... A: personally, the way i like to ensure the w4 is right to where i want to be is to get one paycheck ... | |
| taxes | 1/7/2011 |
| Q: My question is that i went back to school in October and have not worked at all have two kids and ... A: the requirement to take a dependent is pretty straight forward calculation. as you have figured ... | |
| 2008 First Time Homebuyer Credit Repayment | 1/6/2011 |
| Q: I purchased my first home in 2008 for 58,000...qualifying me for a $5,800 tax credit. In 2010, I ... A: first. you need a new 'tax pro' second, go TIGERS... (I grew up in Missery :) third, you are ... | |
| Tax Return. | 1/6/2011 |
| Q: Me and my gf have two kids, she has been on unemployment since 11-09 I worked from Jan 2010 to May ... A: generally, the unemployment status wont have an effect on your ability to take a dependent. the IRS ... | |
| Use of County Govt. Owned Vehicle to Commute To and From Home While On-Call | 1/5/2011 |
| Q: I am on-call 24/7 for the transportation department of a public school division. I am required to ... A: contact me with private question and i will give you my personal information. I'd be happy to write ... | |
| Tax relief | 1/5/2011 |
| Q: I work for a non for profit organization as a case manager working with homeless people with drug ... A: yes. offer in compromise (OIC for short). two rules that they follow. doubt as to liability ... | |
| Simple Trust | 1/5/2011 |
| Q: I have a simple trust for a nonresident. It is land rent. There is only one person who received ... A: include the schedule e with the 1041 filing and provide the beneficiary with the k1. ps. even if ... | |
| independent contractor from overseas | 1/4/2011 |
| Q: If I use an Independent contractor who lives in Australia or India for help in Web design and ... A: tooo complicated an answer? I think I wrote my questions at a 5th grade level. lets try again. ... | |
| long overdue taxes | 1/4/2011 |
| Q: I am a 30 yr. old male who has not paid his taxes in 7 or 8 years. Through many of those years I ... A: depends upon how much you actually earned. you should go to a local office - or mail if not near a ... | |
| sale of rental house | 1/3/2011 |
| Q: When my mother died in 1994 I inherited her debt free home. I used it as a rental property until ... A: tax break. mmm hard to interpret what you seek or how you define break. here is the scoop - and I ... | |
| Company Vehicle | 1/3/2011 |
| Q: I have a company vehicle that an employee gets to take home. I have had conflicting information ... A: here is the scooop. quick and dirty and very straight forward. personal use is taxable. ... | |
| My mom | 1/1/2011 |
| Q: My mom is 85 yrs old, my dad passes away May 2010. Her income from SSI and his retirement is $ ... A: sorry for the loss of your father... depends upon the split between ssi and retirement and how it ... | |
| property taxes | 12/28/2010 |
| Q: I have a home in Michigan and in Georgia. If keep a domicile in Mi. and my husband a domicile in Ga. ... A: you can only have one tax home. i would find it sort of incredulous that you and your husband were ... | |
| renting income property to my corporation | 12/17/2010 |
| Q: I purchased an income property in California in 2010 (I reside in Mass). It has a mortgage and I ... A: I dont think that your statement about "gain/loss on the sale of income..." makes any sense. There ... | |
| foreign currency | 12/15/2010 |
| Q: i have purchased foreign currency which is soon to be revaluated at a rate i do not know. this ... A: you are correct on the gift max. this is the threshold per person per year. before you have to file ... | |
| tax pension | 12/13/2010 |
| Q: my boyfriend had a pension back in 2002 for 1,405,819 but he only got 1,124,655 because 281,163 was ... A: With a balance of $1.2m and a payment to the IRS of almost $300k, he can afford to hire someone to ... | |
| Employer Mileage Reimbursement | 12/7/2009 |
| Q: My wife and I both work at the same company. We normally carpool to save the expense. I work in the ... A: Short on Validation??? what did you want, a free tax memo that you could take to your boss? I dont ... | |
| Elderly parent paying for care | 12/6/2009 |
| Q: An elderly parent (86 years) who can not take care of themself due to medical issues can be taken in ... A: document all to hell and hope. income to son/child. is subject to nanny tax (ever hear of Tim ... | |
| mortgage--prinicipal forgiveness--impact on taxes? | 12/6/2009 |
| Q: and thank you for your help. My mortgage is "underwater", that is, the prinicipal on the loan is now ... A: this is not tax advice as you have a relatively expensive case - but that said, if you are insolvent ... | |
| capital gains on gifted property that is subsequently sold within family | 12/5/2009 |
| Q: My mother and father bought 80 acres of land 30 years ago and built a cabin on the land. The cost ... A: depends upon what the value of the property was when parents gifted... price to build does not ... | |
| Non-filing of corporate taxes | 12/5/2009 |
| Q: I set up a California corporation in Dec. 2006 and obtained a tax id number, and another corporation ... A: memo to tax payer... states are VERY poor now. especialy land of AAARnold.... so, I would pay the ... | |
| S/E taxes | 12/4/2009 |
| Q: I am an accountant for a real estate development company (LLC). There are two partners with equal ... A: that is the whole point. you can have a single member llc! no general required (this is not legal ... | |
| step up basis | 12/4/2009 |
| Q: for a standard qtip family trust, what steps need to be taken so that all securities are stepped up ... A: i am not qualified to answer this - but pretty sure it is not stepped up at first death. if ... | |
| business tax | 12/4/2009 |
| Q: I work full time and opened a business 10 months ago. My anticipated refund from my individual tax ... A: this is not specific legal/tax advice, but yes, i would file for the loss this year. you were in biz ... | |
| State Withholding | 12/4/2009 |
| Q: If I live in and work in one state, but have to travel to another state and work for any period of ... A: yes. your company should take out tax for the jurisdiction in which you are working. allocation by ... | |
| Tax Deductions | 12/3/2009 |
| Q: I want to know where I can find a list for tax deductions for truck drivers. ... A: there is not a 'list' for much in the tax world. the law is IRC 162 - ordinary and necessary which ... | |
| taxable income after receiving social security | 12/3/2009 |
| Q: I will be 65 in March next year. Assuming that I will earn minimal wage and start taking the social ... A: go to the link previously provided (and then READ IT, please). the threshold depends upon your ... | |
| Vehicle Compensation | 12/3/2009 |
| Q: I work for the State of Illinois from my home. I have an office in the residence. They have given me ... A: my guess is they are trying to allocate some personal use to you, but that makes zero sense. I ... | |
| LLC Corporate Tax | 12/3/2009 |
| Q: I recently started a private tutoring company (4mo ago) and I have made about $600 from it. I have ... A: llc is not a corporation. so you dont pay corporate taxes ever. unless you 'check the box' and elect ... | |
| Quick Question | 12/3/2009 |
| Q: I have been reading these silly get rich programs put out by "William J. McCorkle" probably 10 years ... A: generally this sort of SCHEME is that you buy foreclosed property at town held or run tax auction. ... | |
| SUV Depreciation | 12/2/2009 |
| Q: I am starting a business (LLC) in Jan 2010, but I need to buy a SUV now (Dec. 2009). The SUV, over ... A: see page 18 - far right column, with respect to buy in 2009 and placed in service in 2010. ... | |
| SUV Depreciation | 12/1/2009 |
| Q: I am starting a business (LLC) in Jan 2010, but I need to buy a SUV now (Dec. 2009). The SUV, over ... A: Why do you need to buy it now? If the biz starts in 2010, you dont need it now, do you? key is ... | |
| Self Employment taxes | 12/1/2009 |
| Q: I am in a partnership LLC where all partners are limited (are not personally liable), but are active ... A: why does one partner take a draw ? ostensibly for salary? does he work more then the others? if he ... | |
| 1033 Involuntary Conversion | 12/1/2009 |
| Q: Just had the city take my office by eminent domain. I think I understand what I do about ... A: ok.. I am in awe. very cool actions. and you are obviated from my push to get people to do chartible ... | |
| Self Employment taxes | 12/1/2009 |
| Q: I am in a partnership LLC where all partners are limited (are not personally liable), but are active ... A: limited partners are only taxed self employment tax on guaranteed payments. SOME effort might be ... | |
| Vehicle Compensation | 11/30/2009 |
| Q: I work for the State of Illinois from my home. I have an office in the residence. They have given me ... A: I agree. but remember, they are the boss. are they charging you cash money ? and if so, for what ... | |
| Federal Housing Tax Credit | 11/28/2009 |
| Q: Does a home purchase on a Land Contract qualify for the $8,000 federal housing tax credit. ANSWER: ... A: I have never heard of a title or deed to a home being called a land contract. if you bought the ... | |
| Property inheritance with huge tax increase | 11/28/2009 |
| Q: A vacation property that a family shares for the summer months is starting to be discussed for the ... A: did you see my points? any comments or follow up? curious to know where this is (rules on ... | |
| Incentive checks | 11/28/2009 |
| Q: Once a quarter at my job if we exceed our productivity I can get an extra 100-800 dollar bonus. I ... A: tax rates are a sliding scale. marginal rate means the next dollar earned. average is the total ... | |
| Mortgage Deduction after Divorce | 11/26/2009 |
| Q: Greetings. My wife and I are getting divorced and we have agreed to joint title of our home for ... A: yes. more then standard. but still wasting 1650 value of standard. gains would require you to be ... | |
| Stock Capital Lost & Stock Option Gain | 11/25/2009 |
| Q: Like many people, I have big capital lost in stocks in 2009. My company granted me some stock ... A: generally, the gains on stock options is ordinary income. did you make an 83b election (if you have ... | |
| Mortgage Deduction after Divorce | 11/25/2009 |
| Q: Greetings. My wife and I are getting divorced and we have agreed to joint title of our home for ... A: waste of money and deductions. case where the sum of the parts is worth less then the whole. one ... | |
| charitable deductions | 11/25/2009 |
| Q: Becky had AGI of $100,000 in 2009. She donated Amber Corporation stock with a basis of $13,000 to a ... A: you are such a lazy piece of $hit... you should be banished from being a cpa. good luck with that ... | |
| Trust money from foreign country | 11/25/2009 |
| Q: Good day. I'm a foreign national living and working in the USA. I've been here over 7 years and pay ... A: simple rule is yes. sort of. depends upon the nature of the trust and the rules and the character ... | |
| california taxes | 11/24/2009 |
| Q: HOW DOES RESIDENCY OR NON-RESIDENCY AFFECT CALIFORNIA PROPERTY TAXES? Dean A: no clue. live as far from calif as i can pretty sure they do have a homestead exepmtion and they ... | |
| health insurance | 11/23/2009 |
| Q: I receive a stipend through my company to pay for health insurance. The money I receive is after ... A: convince employer to sign you up under a plan for employees. how many have insurance? small company ... | |
| Federal Housing Tax Credit | 11/23/2009 |
| Q: Does a home purchase on a Land Contract qualify for the $8,000 federal housing tax credit. A: home purchase on land is somewhat confusing. you bought a home on rented land? or you bought a ... | |
| taxable income after receiving social security | 11/22/2009 |
| Q: I will be 65 in March next year. Assuming that I will earn minimal wage and start taking the social ... A: define maximum. I think you dont realize that even if you get some of the SS subject to tax, it will ... | |
| attending 2 different schools | 11/22/2009 |
| Q: my daughter plans on taking 9 credits at a community college and another 3 credits at a different ... A: yes. what is the requirement for full time status? what is her class load? you might need to notify ... | |
| IRA-BDA 2009 Distribution | 11/21/2009 |
| Q: Does the 2009 suspension on mandatory IRA distributions apply to IRA-BDA as well? My mother has an ... A: the temporary suspension of rmd applies to inherited accounts too. see irs publication 590 ... | |
| Ca Rental property to Primary Residence | 11/20/2009 |
| Q: How long do you have to live in a previous rental property for it to be considered your primary ... A: general rule is 2 out of last five with intermittent absenses not deducted. but remember there is ... | |
| 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 ... | |
| 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). ... | |
| 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 ... | |
| 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 ... | |
| Non-Resident Income Taxes in NC | 11/18/2009 |
| Q: My spouse worked in NC for 4 months this year and now went on to work in FL for the remaining 8 ... A: you file where you are a resident and where you earned income. so - if you are a resident in NC. ... | |
| Dependent care expenses | 11/18/2009 |
| Q: Starting in the new year, my wife will look for a job. At that time, we will have child care ... A: as it has a whole slew of what ifs.... but that said, here goes a general discussion that is not tax ... | |
| 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?? ... | |
| 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? ... | |
| Corporate Donations | 11/17/2009 |
| Q: How much can a Corporation donate annually for tax purposes? I am awaiting a kidney/pancreas ... A: if the recipient donee organization is a 501c3, a corporation can deduct what amounts to essentially ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| Income tax claim for newly wed | 11/16/2009 |
| Q: I am getting married now in December (2009). Can I claim my new wife on my income tax and if so what ... A: yes. marriage is determined as of 12.31.09 at midnite where you are a resident (some people have ... | |
| Charitable Donations | 11/16/2009 |
| Q: I was laid off this year and have not been having taxes being taken out of my unemployment ... A: be very careful to document and get perfect receipts. and dont gouge the prices. note the irs rules ... | |
| 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 ... | |
| 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 ... | |
| Form 2106 | 11/14/2009 |
| Q: I am just now completing my tax filing for 2008. I would estimate that my personal vehicle was used ... A: 99% of the time, using the allowable per mile reimbursement is more advantagous. all you have to do ... | |
| first time home owner credit | 11/13/2009 |
| Q: I bought a house in May of 2009. The home is soley in my name. I have since gotten engaged and was ... A: yes. i would believe so. no reason not to. even if he owned a home previously. unless you have some ... | |
| 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 ... | |
| 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 ... | |
| taxes on insurance settlement | 11/12/2009 |
| Q: My son was killed in an auto accident and we are collecting a settlement from our insurance company ... A: I am very sorry for your loss. It depends upon how the settlement is structured. but generally yes ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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? ... | |
| Dependent | 11/10/2009 |
| Q: Can i claim my daughter as a dependent in 08'09' if she made over $5450 and is still in high school ... A: yes you can. if you provided 50.000001 % of her support. assuming no divorce decree awarding ... | |
| 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 ... | |
| in-kind charitable donations | 11/10/2009 |
| Q: My family makes several in-kind donations (clothes, kitchen supplies, food, etc.) a year to various ... A: There is NO limit per amount to deduct. the goods have to be in good or better condition and the ... | |
| 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 ... | |
| 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 ... | |
| 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. ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| Home Business Tax Question | 11/3/2009 |
| Q: My wife and I have stated a non-profit org and we want to start with an office area in our house. We ... A: corner of is suspect. the area is supposed to be for constant and exclusive use. technically if you ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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, ... | |
| 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 ... | |
| 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 ... | |
| 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. ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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. ... | |
| 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 ... | |
| 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 ... | |
| 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 ... | |
| 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. ... | |
| 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 ... | |
| 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. ... | |
| 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 ... | |
| 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 ... | |
Tax Law (Questions About Taxes)
Answers by Expert:
- Rod Dorothy
- Helen P. O`Planick, EA
- Carole Dunton
- Randall Brody, EA, MBA
- Mike Wellman
- Richard Fritzler
- Vanessa D. Powell, CPA
- MEdusa
- Glenn D Schnabel
- IJ Zemelman, EA MBA
- John L. Tidwell
- John Stancil, CPA
- Neil Johnson (The Tax DudeŽ)
- Adam Shay
- Edward L Parsons CPA
- Bruce W. Tyler, EA
- Chea Romine, CPA
- ABRAHAM ITANI, CPA
- WILLIAM D MCCONNAUGHY, CPA
- Jay Allen Finn, CPA
- Mark Trazo, CPA Candidate
- Randall Klein, MBA, EA
MEdusa
Top Expert on this page
Expertise
Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).
Experience
19 years cpa. ms tax.
Organizations
AICPA, CSCPA (Ct society), National Tax,
Publications
several including PEA
Education/Credentials
MS tax and other post graduate coursework
Awards and Honors
variety including Summa Cum Laude
Past/Present Clients
I don't disclose or kiss and tell
©2012 About.com, a part of The New York Times Company. All rights reserved.