| Subject | Date Asked |
|
| House Taxes | 10/6/2008 |
Q: I brought a property from a sheriffs sale, and I am about to sell the property. I received an offer ...
A: You take your sales price less costs of sale from your purchase price plus cost of purchase. That ...
|
| Tax shelter a portion of severance? | 10/4/2008 |
Q: I found out a few days ago, that my job for the past 26 years is being consolidated into our main ...
A: You can contribute to an IRA or a ROTH IRA. HOWEVER, for a traditional IRA, you may or may not be ...
|
| First time home purchase... | 10/3/2008 |
Q: I am single and looking to purchase my first home. I am currently considering taking either a ...
A: First, note that if you take a loan from your 401K and don't pay it back, you will pay taxes AND ...
|
| Need help with 1099-MSC | 10/1/2008 |
Q: I have been unable to work for quite some time now but I have an old contract for a web site I host ...
A: You must file. You need a Sch C and SE along with your 1040. You will owe taxes. If you use ...
|
| Employee or independent contractor? | 10/1/2008 |
Q: I have been working for a company most of this year as an independent contractor, but I believe that ...
A: It looks like you should definitely be an employee. File the SS-8 with your return and send one to ...
|
| Transfer of my deceased mother's home | 10/1/2008 |
Q: I am an only child and my mother passed away last year. She owned her own home, which still has a ...
A: Dawn, if the return is not filed by October 15, she will not get the rebate. As for the rest, you ...
|
| tax write off | 9/29/2008 |
Q: My 17 year old son owns(custodian account) what cost us $8,000.00 of Wachovia stock. It now is,of ...
A: If you sell the stock at a loss (there are a lot of IFS right now), he can reduce capital gains from ...
|
| capital gains | 9/29/2008 |
Q: we are selling hunting property in minnesota. after figuring all the money we have put into it we ...
A: It does not matter what you do with the money, you cannot exclude the gain by doing anything, buying ...
|
| IRAs | 9/28/2008 |
Q: is there any way that one is allowed to invest IRA funds in a real estate venture, and is one ...
A: IRAs can be used for RE ventures, but you cannot live there, etc. Using the IRA for collateral ...
|
| Dependants | 9/27/2008 |
Q: I hope you can help me. I got legal guardianship of my grand-daughter and her sister on July 31st, ...
A: There is no form for this. That form is only between parents. If your grand lived with you for ...
|
| deceased taxpayer with no estate | 9/21/2008 |
Q: before my father passed, a caregiver was employed and ss and unemployment taxes were paid with an ...
A: Your POA died upon his death. If the IRS has taxes due, and you do not pay them, they can come ...
|
| service dog | 9/20/2008 |
Q: Have physical disability making it difficult to walk service dog. I know I can deduct maintenance ...
A: Yes, HOWEVER, you can only write of the amount that is over what the fence does for the value of ...
|
| savings bonds | 9/20/2008 |
Q: First let me say thank you for volunteering to answer all these questions. I really appreciate you ...
A: Jeff, you can't fix it. The interest, if you decide to cash them in, is your daughter's, so it will ...
|
| Back Taxes for PA | 9/19/2008 |
Q: I reside in Pennsylvania and from the time I was 18 - 22, 2002 - 2006 I neglected to file state ...
A: Basically, just do them. You can find all the forms at the PA Department of Revenue page. Just ...
|
| Past Taxes | 9/19/2008 |
Q: I recently became aware that my ex-husband did not file my taxes along with his for the last 6 years ...
A: If you do not owe, no penalties will be due. If you owe, interest and penalties are calculated on ...
|
| sole propriortor | 9/17/2008 |
Q: clients who are sole proprietors donate their services or goods to charity. I understand that their ...
A: Debbie, you are reading it correctly. For the inventory, you must reduce it by personal items taken ...
|
| w2 vs 1099 | 9/14/2008 |
Q: I am in orthopaedic sales. The company I work for is changing owners basically. New owner say ...
A: Mark, they cannot do this. What you need to do is tell them you are going to call your local ...
|
| PA inheritance tax return | 9/12/2008 |
Q: Good Evening, I inherited my father's house when he died. I was told by the CPA who has done my ...
A: The expenses you incurred are added to your basis. The RE taxes are yours if you own the home now. ...
|
| Claiming a dependent after a divorce. | 9/11/2008 |
Q: My ex husband and I were separated in the middle of June, 2007. I have sole custody of three ...
A: Since he never adopted them, he is not a parent and has no right to claim them. "The child will be ...
|
| cash settlement | 9/11/2008 |
Q: My lawyer has drafted a divorce settlement with my wife that is for $400K ($200k cash and $200k from ...
A: It really does not matter. Once the IRA is hers (you release it to her thru a QDRO), if she cashes ...
|
| Claiming a dependent after a divorce. | 9/11/2008 |
Q: My ex husband and I were separated in the middle of June, 2007. I have sole custody of three ...
A: Well, I would say "screw you", but I don't know if you want to be that bold. You WILL not get ...
|
| Please can you help me | 9/10/2008 |
Q: My mother passed away a few years ago, we have a man that does out taxes. He has not submitted our ...
A: Your father needs to file his taxes to get the rebate, and they need filed by October 15. Sit down ...
|
| investment property tax | 9/9/2008 |
Q: I bought a house I intended to renovate and sell. However, I am not able to sell the property in ...
A: You do not need to depreciate it if you are not planning on renting it. As for your expenses, ...
|
| estate reapairs | 9/9/2008 |
Q: Can I deduct the expenses for the repairs I have been making to my deceased mothers estate(a SINGLE ...
A: No. Even if you owned the home, you cannot deduct the repairs to it. Your costs would add to the ...
|
| child tax credit | 9/4/2008 |
Q: IN THE CASE WHERE A CUSTODIAL PARENT HAS NOT WORKED THAT TAX YEAR AND THE NON-CUSTODIAL PARENT HAS. ...
A: First of all, please turn off your caps lock. Typing in all caps is considered cybershouting and ...
|
| E-services | 9/4/2008 |
Q: I was at a seminar last year (2007) and you had told us how to get a history of whom we held power ...
A: You cannot do it thru e-services. It is a freedom of information act thing. Go to www.irs.gov > ...
|
| 401k rollover | 9/3/2008 |
Q: Helen, I have been running all over the Internet and one company informed me that you can roll over ...
A: I misunderstood your question. Of course you can roll your retirement into a business you own and ...
|
| Splitting investment income among joint owners | 9/3/2008 |
Q: I have several investments where my sister and I are joint owners with right of survivorship. I ...
A: If you want to do nominee interest, you just put it all on your reurn (Susan) and then take the half ...
|
| Regarding per diem | 8/28/2008 |
Q: We are a staffing company, contracting our TN visa Canadian employee to a client 30 miles from our ...
A: The address thing - sure. The perdiem, as long as the job is less than a year (not in reality, but ...
|
| How to deduct passive rental property losses from SE tax. | 8/27/2008 |
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ...
A: The ONLY reason to be a RE pro is so that your losses are not limited. That is all. NEVER does a ...
|
| How to deduct passive rental property losses from SE tax. | 8/27/2008 |
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ...
A: Charlie, look at a 1040. Sch C is one line, Sch E is another. C and E offset. SE is NOT offset by ...
|
| 1099 | 8/26/2008 |
Q: My husband has been employed full time by a company 5 years, recently company changed ...
A: Your husband has been classified incorrectly and he will not only owe income tax, he will owe 15.3% ...
|
| How to deduct passive rental property losses from SE tax. | 8/26/2008 |
Q: "Hello Helen —? I qualify as a real estate professional except for the 751 hr. minimum and I ...
A: You don't reduce your SE income by rental properties. They are totally separate. Your rental ...
|
| Personal use of company vehicle | 8/25/2008 |
Q: I have a company car and need to log my business v. personal miles. How do I determine personal ...
A: Your first trip from home to where ever is commuting (personal) and not deductible unless you have a ...
|
| Taxes owed | 8/24/2008 |
Q: I owe about $50K in taxes for tax years of 04-08 I do not have 50K to pay now, and would like to go ...
A: I have some names, but I don't know any of them personally, so I would make a couple of phone calls ...
|
| parents deeded house to me and brother | 8/24/2008 |
Q: I purchased the home my parents are living in in Florida since they could not afford it in 1994. At ...
A: While it is your home (you own it) so does your brother and your husband. You don't need a tax ...
|
| Unearned income | 8/23/2008 |
Q: As part of a divorce settlement, my husband has given me one of his reitrement accounts. The name on ...
A: I have no idea on your state tax, but federally, you will lose whatever your tax bracket is plus ...
|
| Gift tax | 8/23/2008 |
Q: Helen, I want to pay off my adult sons school loans. I realize that I can only give him 10,000.00 ...
A: You can gift him 12K a year (which includes all gifts, including birthday, holiday, just because). ...
|
| business expense | 8/23/2008 |
Q: As a minister (pastor) i am claiming milage as a business expense is that ok and what would I need ...
A: There is a publication at www.irs.gov specifically for clergy. Just go to www.irs.gov then forms ...
|
| Separate returns | 8/23/2008 |
Q: My grand-daughter (Julie) and her husband separated October 2006, they were not divorced until end ...
A: Since she was working and paying on the mortgage, unless the payments came directly from his ...
|
| business expense | 8/23/2008 |
Q: As a minister (pastor) i am claiming milage as a business expense is that ok and what would I need ...
A: Going from home to the church and back again is commuting and not deductible. Business miles are ...
|
| Tax Deducations | 8/20/2008 |
Q: I have a son that has Asperger's which is a condition that falls on the Autism Spectrum (high end of ...
A: Your costs with your son are deductible, but you may not be able to deduct them. These are ...
|
| capital gains tax | 8/20/2008 |
Q: my name is on the deed and mortgage of a house my parents live in (so all 3 of our names are on the ...
A: The mortgage has nothing to do with anything, so you don't have to worry on that aspect. Selling ...
|
| Real Estate Purchase from family member | 8/19/2008 |
Q: My mother-in-law's home was recently burned in a fire. She has no property insurance and no means of ...
A: John, I see nothing wrong with your plans. You will have a low basis for the home ($10k plus taxes ...
|
| realestate capital gains | 8/19/2008 |
Q: My wife and I bought 40 acres of land in 1999, in 2004 we put up a log building and are just now ...
A: Until the election, the maximum rate for capital gains is 15%. We have no idea what will happen to ...
|
| claiming dependants | 8/19/2008 |
Q: I am starting a new job, I have always been told it is better to claim zero on my taxes when I first ...
A: If your spouse is not a working spouse, and you don't have a lot of untaxed income, you are probably ...
|
| Taxes on Inheritance | 7/25/2008 |
Q: Both my parents have passed and in the will it stated that the house was to be sold and the profits ...
A: If you did not sell it to a relative or closely related party, and the date of death value was 280K ...
|
| IRA beneficiary question | 7/22/2008 |
Q: would it be better to name my trust or my kids individually as beneficiaries to my IRA, given that ...
A: They cannot roll your IRA into theirs. However, they can move it to an IRA that stands alone. ...
|
| Which situation would cause less to be paid in tax? | 7/21/2008 |
Q: I am in need of some pretty good advice... I will try to make as much sense as possible, but please ...
A: The kids cannot be given a gift of equity. However, dad will have to file a gift tax return, BUT ...
|
| Clergy Tax Reporting | 7/16/2008 |
Q: I would like information about gift giving and pastoral responsibility in reporting. Is there any ...
A: Anyone can give anyone a gift, nothing is taxable (a gift tax return is due if the gift(s) exceed a ...
|
| MFS - amending later | 7/16/2008 |
Q: The new student loan repayment legislation which includes loan forgiveness after 10 years of public ...
A: You can amend to MFJ anytime within the 3 year window of amending the returns. HOWEVER, I'm not ...
|
| adoption tax question | 7/16/2008 |
Q: I will be adopting an older child, and the child will be legally placed in my home for adoption in ...
A: Unless adopted by the end of the year, you will not be able to claim him for 2008. If he is legally ...
|
| LTCG Carryover | 7/14/2008 |
Q: I had a LT Capital Loss in 2007 of $12,000. I used $3,000 in 2007 and carried over $9,000 to 2008. ...
A: You still have to show the carryover on Sch D with your 2008 return, but if you don't need any of ...
|
| Offer/Compromise when disabled | 7/13/2008 |
Q: I became disabled in May 2006, medical mystery, multiple surgeries, and 11 month wait for SSD help ...
A: Mary, I feel for you, but you can't expect not to pay taxes even with illnesses, etc. Since you ...
|
| land | 7/9/2008 |
Q: I have just been quick deeded two lots in Bend, Oregon worth about $85,000.00 each. -Do I need to ...
A: When you received the gift, you also received the holding period. So if the person that gave them ...
|
| Student exempt situation | 7/8/2008 |
Q: he is working many hours and being taxed. he gets taxed about $80 for a 2 week period. what is the ...
A: PA is a flat tax state and if your son is working here, he will pay taxes here. The tax rate is ...
|
| two jobs | 7/3/2008 |
Q: i am currently working on a job. i made like $20k a year sometime less. i was thinking of getting a ...
A: You can have withholding at your second job if you want. Use the form W-4. If you do not, you may ...
|
| Sale of rental property | 7/3/2008 |
Q: We are in the process of selling our shore home and will have capitol gain of about $550,000. We ...
A: This home does not qualify for any exclusion. Therefore, you will owe tax on the sale (and it can ...
|
| Intercepts | 7/2/2008 |
Q: My husband and I file a joint return every year. my husband pays child support and I do not file the ...
A: The FMS tells the IRS what to withhold. FMS told the IRS to take whatever it was that was taken ...
|
| Filling status | 7/2/2008 |
Q: My wife and I are soon to be moving to another state for her new job. She has not been employed for ...
A: You are going to be hitting the high 20% tax bracket, so for this year, I would suggest she file her ...
|
| s corp and car expenses | 7/1/2008 |
Q: i have a s corp and currently use my car 80% for business and 20% for personal. i have about $1200 ...
A: Your S-corp should have an accountable plan and you should submit an expense report and the S should ...
|
| s corp and car expenses | 7/1/2008 |
Q: i have a s corp and currently use my car 80% for business and 20% for personal. i have about $1200 ...
A: You are an employee of your S-Corp. If the S is paying the bills, you have taxable income of the ...
|
| Addition of Owner to House Deed | 6/30/2008 |
Q: I am currently living with my parents and my parents would like to officially add my name to the ...
A: You are being given a gift, 1/3 of their basis in the home. And if it is sold and if it is not your ...
|
| capital gains on land sale | 6/30/2008 |
Q: when my husband and I sold our old farmhouse with 7 of 17 acres 10 years ago and bought another ...
A: Your basis is whatever you paid for the land when you bought it. It does not matter what you do ...
|
| Early IRA Distribution | 6/26/2008 |
Q: I'm looking into taking an early distribution from my SIMPLE plan for use in purchasing a home. My ...
A: Per IRS rules, it must be to "You use the distributions to buy, build, or rebuild a first home." So ...
|
| cost basis on inherited stocks | 6/26/2008 |
Q: My dad recently passed away. He owned 15 different stocks that were held in joint in his name and ...
A: Unless you are in a community property state, your basis is one half what he paid for them and one ...
|
| depreciation on investment home | 6/25/2008 |
Q: How do I determine the depreciation basis on an investment home? The home was formerly my main ...
A: As long as the house has appreciated in value, yes, you use your original price. As for the ...
|
| insurace fire claim | 6/25/2008 |
Q: Ms O'Planick, I have a farm in texas and we have a little house on the property that we use every ...
A: If the loan was on the structure ONLY, then you would be okay. But if you are paying the loan off on ...
|
| Annuity taxes | 6/24/2008 |
Q: Recently my Mother passed away and I was the beneficiary of her annuity. She only had it 2 years, ...
A: You have to find out if the money she put in was tax deferred or not. That will tell you if you have ...
|
| S corp expenses | 6/20/2008 |
Q: I have a S corp and only employee. sometimes i have dinner expenses with business prospects. ...
A: If you charge $50 in meals to your S-Corp, at tax time, only $25 is deductible, so it does not ...
|
| past year tax return | 6/17/2008 |
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ...
A: No one, including the IRS, is going to believe you made the same amount of money 3 years running. ...
|
| alternative min | 6/14/2008 |
Q: I assume if real estate taxes are used on schedule A as a deduction they can't be used later as an ...
A: If all the properties are personal use properties, then you have to calculate the AMT or lack ...
|
| 401k early withdrawal | 6/6/2008 |
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ...
A: This is the best of the best. Good luck! Mr. Robert E. McKenzie, EA, JD,TCP Website: ...
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| 401k early withdrawal | 6/6/2008 |
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ...
A: I'm going to start at the back and then semi woose out on you a little. First of all, I do know a ...
|
| 401k early withdrawal | 6/5/2008 |
Q: I Have recently resigned from my job of 24 years. I am 45y.o. living in Chicago, Il. currently ...
A: Greg, thank you for retyping. If it was a short note, I can usually handle the caps, but I was ...
|
| IRA from divorce | 6/5/2008 |
Q: As part of my settlement, I was entitled to a percentage of one of my husband's IRAs. It was a SEP ...
A: Any money that you do not roll over into an IRA is taxable. Money used for education (education ...
|
| tax fraud? | 6/3/2008 |
Q: My ex-husband has acquired my tax returns through his girlfriend. He showed me the form and I saw ...
A: The IRS can and will help you. You need to follow the following directions. You may also wish to ...
|
| federal withholding | 6/1/2008 |
Q: I work part time as a contractor (hourly, not benefited) for 5 different employers, but there are 3 ...
A: Project your combined income thru the end of the year, and your withholdings and use the 2007 tax ...
|
| Can my husband claim 1 dependent now? | 5/27/2008 |
Q: my husband and I are expecting a baby in Nov. I just quit my job last week to be a full time mom. ...
A: He can claim the baby now. I hate to be a downer, but if there is a problem and the little one is ...
|
| Is This Considered Identity Theft or Fraud? | 5/23/2008 |
Q: My aunt listed me as a person living in her household for the year of 2007, when I only lived with ...
A: Your aunt is committing fraud. Tell her that you are filing your return correctly, claiming your ...
|
| Home sale delayed due to FHA | 5/22/2008 |
Q: I am in a bad situation. We are selling our house where we have lived for last 6 years. We found the ...
A: You should never let anyone move in until they own the home. It is NOT easy to get them out if ...
|
| taxes | 5/22/2008 |
Q: im 24 years old and have a child and am the main provider for my family i was wondering what i ...
A: If you are the main provider with a child, won't it help NOT to give the government an interest free ...
|
| Motorhome and Business Question?? | 5/20/2008 |
Q: I have a LLC in Texas. The one company under the LLC is a radio control video website and diesel ...
A: You have made the RV your home and as such, unless a 100% usage for business, you have no additional ...
|
| Deductions | 5/17/2008 |
Q: A just had a revelation today while I was amending my 2006 and 2007 tax returns. I amended them ...
A: Your Sch A deductions (charity) has nothing do to do with your MAGI, so that will not work. Every ...
|
| i owe the irs | 5/15/2008 |
Q: my wife left me in aug of 2006, and moved to texas where she is from. in april of 07 i filed taxes ...
A: You are both liable for the taxes due, as the return was filed jointly. You may be an innocent ...
|
| Short and longterm capital gains losses | 5/14/2008 |
Q: O'Planick Is there a time limit for carry over of short and long term capital gains losses? I have ...
A: Hopefully you used them in 2001, 2002, etc and did not save them up for 2008. If you did, please ...
|
| Self Employment Questions | 5/14/2008 |
Q: I'm hoping that you can answer a few questions I have. I am currently working for a small ...
A: Can you afford NOT to be covered by worker's comp or state unemployment? And can you afford an ...
|
| 401k lump sum distribution for retireee | 5/13/2008 |
Q: I am soon retiring to another state where property is very expensive. I have found only one ...
A: The payout is taxable no matter when you take it. The 20% is withholding to help you pay those ...
|
| 1099misc. income | 5/12/2008 |
Q: yes please,mrs. o'planick, please allow me to explain my situation;which will encase my ...
A: Bob, you do need more help then this board can give you. While the money MAY not be taxable (it ...
|
| social security disability lump payment tax liability | 5/11/2008 |
Q: my son has been declared disabled by a law judge at a recent hearing. He has not yet begun to ...
A: There is no legal action available or probably necessary. The IRS publication about SS (and I can't ...
|
| Tax withholding | 5/10/2008 |
Q: my wife and I are claiming 10 tax exemptions and are still overpaying by 8-15K each year. We have ...
A: If you are not employed, you would have no withholding. Without knowing your return, I would never ...
|
| 1099A | 5/6/2008 |
Q: We are currently doing a foreclosure on our house. We live in MN. The mortgage company is stating ...
A: If you are insolvent, you will not be paying any tax on the forgiven debt. And there is a new ...
|
| Amended tax returns | 5/6/2008 |
Q: So basically I am just wondering about two things: (1) is it possible for my dad to file an amended ...
A: If your father supported you in 2007, you should be on his return so, no, it is not possible for Dad ...
|
| daycare tax question | 5/6/2008 |
Q: Let me give you some backqground before asking my question. Married filing jointly Gross $146000 ...
A: First of all, the child tax credit is topped at about $1400, so there is no way you can lose 3K. ...
|
| paper checks | 4/29/2008 |
Q: Not sure if you will be able to help, but I thought I would take a stab. We all know that the ...
A: If you got a paper check for your 2007 return, your rebate check will also be paper. Your problem ...
|
| SEP contributions past age 70 1/2 | 4/28/2008 |
Q: Helen, I have received conflicting answers about this. My Enrolled Agent tax preparer has a family ...
A: Carl, if you have been taking the standard deduction, I doubt you have seen AMT rear that ugly head. ...
|
| semi drivers and food and enttertainment | 4/26/2008 |
Q: working over the road is realy expensive when u make 600 a week and it costs u 200 for food and ...
A: You can take the standard per diem or the actual expenses. There is NO new entertainment ...
|
| Childcare expense | 4/25/2008 |
Q: i have a 3 year old daughter and I am the custodial parent. Her father and I have never been ...
A: I don't like the daycare thing. I'm not sure that is legal. After all, you are the one working, ...
|
| Amended return for RMD | 4/25/2008 |
Q: If an individual fails to make a required minimum distribution from their retirement plan in a prior ...
A: They need to take it out immediately (the second it was seen it was forgotten) add in on the return ...
|
| capitol gain taxes on land | 4/25/2008 |
Q: My mother of 84 is selling 80 acres of land for $200,000.00 - $50,000 per year for 4 years, her ...
A: I don't know what rate of interest she is charging for the installment sale (and if she is charging ...
|
| capitol gain taxes on land | 4/25/2008 |
Q: My mother of 84 is selling 80 acres of land for $200,000.00 - $50,000 per year for 4 years, her ...
A: There is nothing she can do, except make sure her basis is correct so she is not paying extra taxes. ...
|
| SEP contributions past age 70 1/2 | 4/24/2008 |
Q: Helen, I have received conflicting answers about this. My Enrolled Agent tax preparer has a family ...
A: First of all, Carl, income does not put you into AMT, expenses do. But you cannot put money into ...
|
| gift tax | 4/24/2008 |
Q: I own my home (my mother transfered deed to me)all paid for.I want to transfer the deed to my son ...
A: You must file a gift tax return. You may not have to pay taxes, but the return is required. The ...
|
| gift tax | 4/24/2008 |
Q: I own my home (my mother transfered deed to me)all paid for.I want to transfer the deed to my son ...
A: You will have to file a gift tax return. The form is 709. How long do they have to live in it and ...
|
| New Business | 4/24/2008 |
Q: I am an MD who has taken up flying as a hobby. In the process I have acquired an Advanced Ground ...
A: You cannot deduct the training as the classes give you a different eduction and profession, not an ...
|
| Double state taxes | 4/23/2008 |
Q: I recently moved to Delaware but I work in West Chester Pa. Why do I get De State Tax and Pa State ...
A: There is a screwy law between DE and PA about taxation and you are caught it in. I have a client ...
|
| capital gain and taxes | 4/19/2008 |
Q: I am planning to buy a new higher price home as primary residence, Current house will be renting, If ...
A: First of all, your mortgage has NOTHING to do with anything. If you bought the house for 250K and ...
|
| 401k cash out | 4/18/2008 |
Q: My husbands company closed a few months back and he is has a 401k worth about $65,000. Now if he was ...
A: DO NOT TAKE THE MONEY. Unless your husband is 55 or older, you will pay income taxes AND a 10% ...
|
| capital gain and taxes | 4/18/2008 |
Q: I am planning to buy a new higher price home as primary residence, Current house will be renting, If ...
A: You heard wrong. If you sell the home within 3 years of moving out, you can exclude the gain up to ...
|
| Filling status? | 4/16/2008 |
Q: I am married to a teacher in Texas. We filed our 2007 taxes jointly. But since she does not pay any ...
A: Not paying in SS taxes will not increase or decrease your refund. And Texas is a community ...
|
| Constructive Receipt Exception? | 4/15/2008 |
Q: I am a sole proprietor independent contractor. I received a check from my client on December 21, ...
A: Correct, if the check was not mailed until 12/31, you would have had receipt in 2008. It is not a ...
|
| CC statement as documentation for Meals and Entertainment Business Expense? | 4/15/2008 |
Q: Sorry to do this at the last minute, but I have one more for you if you have a moment! I have a ...
A: Sorry, but no. In an audit, you would have to pull each individual receipt up and show what it was. ...
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| PA state tax question | 4/15/2008 |
Q: I am a PhD student at UPenn on a fellowship, which I was told was not taxable by PA state law, ...
A: My daughter got her masters (last year) at UPenn. Nice place. Your bank interest should be on your ...
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| Two State Tax Liability | 4/13/2008 |
Q: I have a family and home in Massachusetts but will soon start working a full time job in ...
A: Unless you are moving here on temporary assignment (expected to last less then a year and the minute ...
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| filing and extension | 4/13/2008 |
Q: Good Morning Helen. I have a question regarding filing an extension. I do the taxed for our ...
A: Okay, so now I know what you were talking about. :) You cannot file an extension, she already ...
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| Non-Resident State Taxes | 4/13/2008 |
Q: I am in need of advice. I live and work full time in NC for a company based in MD. State taxes ...
A: You will file a MD non-resident return and get a full refund IF NC has an agreement with NC. Then ...
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| installment sale of rental property and subsequent default | 4/13/2008 |
Q: In 2003 my wife sold a duplex on contract for $79,000. We had a basis at that time of $75,000 so we ...
A: You do have a loss. What you need to figure out is your new basis and that is difficult with the ...
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| PA Local Earned Income Tax | 4/12/2008 |
Q: I lived in Philadelphia 10mos and another township for 2. Am I allowed to only report local income ...
A: The township you moved to should have instructions on Philly taxes. Basically, what you owe to the ...
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| Child CLAIMING Parent on federal taxes. | 4/11/2008 |
Q: In 2006 I was separated from my husband for MOST of that year. I was separated from him ALL of 2007. ...
A: He cannot forge your signature, that is fraud. He cannot make you file jointly with him either. ...
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| Casualty Loss Deduction | 4/11/2008 |
Q: Last year a barn on my property was destroyed completely by fire. All of the contents along with 3 ...
A: Kinda. Since it is not a business loss, you have to limit the loss by 10% of your AGI and $100, but ...
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| cost basis of stock options | 4/10/2008 |
Q: company gave me shares of stock,how do i treat this on fed tax return? what do i use for "cost ...
A: You do need to file Sch D. I can't tell you how to make your software do it, but I can tell you ...
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| First Year of Sole Proprietorship Taxes | 4/10/2008 |
Q: Helen, I am helping my parents prepare their joint taxes for 2007. We have been using TurboTax ...
A: Travis, do your parents a favor, file an extension for them, and make an appt after April 15 with a ...
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| Casualty Loss Deduction | 4/9/2008 |
Q: Last year a barn on my property was destroyed completely by fire. All of the contents along with 3 ...
A: You have to follow the form, if your basis is less then the FMV at the minute before the fire, then ...
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| Questions Related to Rental Property | 4/7/2008 |
Q: What are the general benefits to owning a rental property. And specifically If my mortgage is ...
A: Your question is very general. The IRS has several good publications on rental properties, you can ...
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| 403b Funds Used For Home Sale/Purchase | 4/7/2008 |
Q: I am 63 years old and have been retired from teaching for 5 years. My wife and I live on our ...
A: Lou, you should have gotten advice before you did what you did. The extra money probably caused ...
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| Proof of filing | 4/6/2008 |
Q: My ex husband recieved a letter (wich he cannot now find) from the IRS addressed to both of us ...
A: If you owed money, your cancelled check will work. If you filed electronically, then by giving ...
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| Sales of S Corporation | 4/5/2008 |
Q: My partner and I recently sold a S corporation. I have 25% of the shares and she has the other 75%. ...
A: They cannot keep the same EIN. That is yours and yours alone and you don't want them to keep it ...
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| ex spouse income taxes | 4/5/2008 |
Q: I was married in 2001-2002 and unemployed. I was divorced in 2004 and filed single with one ...
A: You filed a joint a joint return and as such, you are as liable as he is for the taxes. You did ...
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| 401K rollover/conversion | 4/4/2008 |
Q: My daughter worked for a university where she contributed to a 401K. The next year, she received a ...
A: Use form 8606 for the conversion from the 401K to the ROTH and yes, that is taxable. I'm not sure ...
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| CPA mistake | 4/1/2008 |
Q: Late in filing our 02 taxes due to health conditions and billing on disability (received ss). ...
A: First of all, if you are getting a refund from 2002, you have lost it due to statute. If you owe ...
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| reporting sale of stock without a 1099B | 3/31/2008 |
Q: Helen, This past year I decided to take losses on some less than stellar stocks. When I received ...
A: I think he is full of you know what, the amounts must be reported. I just did a return with a sale ...
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| 1099-R | 3/26/2008 |
Q: Sorry, Helen, but one more question on another topic: My wife had a 401K with her former employer ...
A: You did roll it over, hence all the -0-s. You can just keep the 1099 for your records. 401Ks are ...
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| excess ira contributions | 3/26/2008 |
Q: In doing my taxes this year, I had to review my previous IRA contributions. I noticed in 1999 I made ...
A: You will have an overcontribution for 1999, 2000, 2001, 2002, 2003, etc and will have to file form ...
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| nonprofit work and 1099 | 3/25/2008 |
Q: Helen Please forgive my typing... I'm typing from France because I'm living here for nine months but ...
A: You can find all the forms you need at www.irs.gov for the federal and the state websites for the ...
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| Money lost to a contractor | 3/25/2008 |
Q: In early 2007 we signed a contract with a licensed contractor to do a remodel on our home and paid ...
A: Assuming you have taken legal action against him, you can either take the loss on Sch D as a short ...
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| section 179 deduction | 3/25/2008 |
Q: My wife started a daycare in 2007 in our home. We have purchased a Kubota lawn tractor with mower ...
A: First of all, you have to know the business use against the daycare use (and no, it is not all ...
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| was terminated, employer will not release 401k | 3/24/2008 |
Q: I worked for 11 years for this company. Never missed one day. One day, they came in and fired our ...
A: I doubt your ex employer is making out, he or she should not be the trustee of your fund. You need ...
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| Switching from W2 to 1099 | 3/23/2008 |
Q: I'm an IT professional and have just changed positions. My former employer would like me to continue ...
A: You get to pay the employer and employee part of the taxes, so that can be a set back, but working ...
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| Living in CA working in AL | 3/22/2008 |
Q: I own a house in San Diego but I have accepted a new job in Huntsville AL. I will need to rent a ...
A: If your job is expected to last a year, you have no costs that are deductible, even if it does not ...
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| In Home Child Care Business | 3/20/2008 |
Q: My spouse earned about $4500 providing childcare in our home. Next year (2008) the total should be ...
A: Sch C. And she can use per diem rates. I would strongly suggest seeing a tax professional this ...
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| 10 year income averaging | 3/20/2008 |
Q: My mother is 81 and needed funds for her husband in a nursing home and sold stocks etc. in 2007. She ...
A: I can't say that she was ill advised, I was not there when she needed the money. There is no ...
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| failure of 401K company to do what was asked | 3/20/2008 |
Q: We borrowed $ out of our 401K to purchase a home and asked the company to pay the penalty taxes when ...
A: that helped. I'm sorry but they are right, you are the ultimate responsible person to see that ...
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| short term capital gains on sale of new home | 3/19/2008 |
Q: Aloha Mrs. Planick, Thank you for taking the time to answer my questions. My husband and I built a ...
A: I can't help you with your state taxes, but if you want to fly me out to do so, I won't complain and ...
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| Married- file joint or seperate? | 3/19/2008 |
Q: I recently got married (on 2/2/2008)both me and my husband have children from previous ...
A: You need to look at publication 15 to see how you should have your withholding figured out. I ...
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| student capital gains | 3/17/2008 |
Q: I am a 20 yr old college student, my parents pay over half of my college and living expenses. I ...
A: Unless you know what granddad paid for it, you are correct in that you will have to pay on the ...
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| Rental Property Eligibility | 3/16/2008 |
Q: I owned a townhome as of Jan '07, trying to rent it. Did so as of July '07.Is the HOA fee ...
A: You are deemed to have claimed depreciation allowed or allowable, so Congress says claim it now or ...
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| are there laws to protect SAHM | 3/16/2008 |
Q: My husband and I are separated due to the military but will be getting divorced soon. He filed as ...
A: There is no rule he has to file a joint return. HOWEVER, if he signed your name (or PIN) to a ...
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| joint tenancy with right of survivorship | 3/14/2008 |
Q: In 1979 my mother and I purchased a home for her. The paper work state joint tenancy with right of ...
A: Sorry, but no. You will be taxed on the profits from the sale of YOUR half of the house. Mom's ...
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| 1099 contractor status | 3/13/2008 |
Q: I recently started a job in February in which I am a contractor working from home. I realize that I ...
A: At $400 a month, if you got a decent refund, you probably don't have to file quarterly. Only your ...
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| Adoption Credit | 3/12/2008 |
Q: I have adopted a baby in 2007. Total expenses are about $35000. Our gross income is about $171000. ...
A: There is a form for adoption expenses, forgive me but I don't remember the number. Go to ...
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| Going LLC | 3/12/2008 |
Q: My wife is a self employed hair dresser in Arizona. She pays 50 a month rent in an assisted living ...
A: Right now she has 100% liability for anything that happens in the salon. The consumer can sue you ...
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| Going LLC | 3/12/2008 |
Q: My wife is a self employed hair dresser in Arizona. She pays 50 a month rent in an assisted living ...
A: An LLC is not an entity. Your tax guy needs to tell you the underlaying entity he wants her in and ...
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| Amended tax return | 3/11/2008 |
Q: My husband and I filed our taxes jointly using Turbo Tax, even though we separated in July. He then ...
A: The return was filed jointly. So you are as liable as he is for any additional taxes. If you are ...
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| sales tax deductions for missouri | 3/11/2008 |
Q: We ordered a modular energy efficient home and placed it on a full basement in June 2007. We had ...
A: You can only claim sales tax you paid, so you need proof of payment. As for the energy credits, ...
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| Dependent claim/Head household? | 3/11/2008 |
Q: My mother is 70 years of age, a nursing professional who makes a good salary(100K plus social ...
A: I know MS well, I walk 50 miles in 3 days a year to support it. My partner's sister died of ...
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| under the table pay | 3/11/2008 |
Q: What should I do? Here is my situation. This last year (2007) i did small work under the table. ...
A: You are not going to get a lot of pity from me. I would not want my daughter to marry a tax cheat ...
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| Converting a 2 family into half rental property | 3/10/2008 |
Q: Was wondering if you could help me figure out what my cost basis would be for depreciation purposes? ...
A: Your basis would be what you paid for it had it been a true gift. However, since you are now paying ...
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| Students dependency on tax return | 3/10/2008 |
Q: I am a 19 year-old college student who pays for all of my education as well as my expenses. I lived ...
A: You have to do a support test. Did you pay for half your own support? Who paid for the schooling? ...
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| local taxes paid in pennsylvania | 3/10/2008 |
Q: Am I required to file a city/local tax return for two separate localities that show taxes withheld ...
A: You file to the county you live in. For example, I'm in York. A lot of folks have Lancaster taxes ...
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| follow up to question scholarship and son's taxes | 3/9/2008 |
Q: I sincerely appreciate your help, as we live and work in Japan, and there is no one around to help ...
A: Your son is your dependent and the net tuition (tuition less scholarship) is a deduction, either as ...
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| Home sale-cost basis | 3/8/2008 |
Q: My mother "sold" her house to her four children for a dollar in 1994. We had been advised to do ...
A: None of the above. When Mom gave you all her house, she gave you her basis, so it whatever she paid ...
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| Claimed as a dependent | 3/7/2008 |
Q: i have recently moved out of my ex boyfriends house in which we were both living with his mother. ...
A: No, it was not legal. The only thing you can do is file your return correctly (claiming yourself) ...
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| k-1 | 3/6/2008 |
Q: My son was a partner is an LLC for 4 months of last year and was bought out. The current owner of ...
A: Regarding the K-1, threaten the partnership that you are going to contact the IRS within a few days ...
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| filing state tax | 3/6/2008 |
Q: I'm from New Jersey but worked in Florida from October '07 to February '08. Florida doesn't have a ...
A: If you are a New Jersey resident, you will be taxed on all your wages to New Jersey, no matter where ...
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| itemizing work mileage | 3/5/2008 |
Q: How much mileage do i need in order to have it itemized? I am a social worker and currently have ...
A: You must itemize (use Sch A) and then your deductible work miles are reduced by 2% of your AGI. ...
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| excess contribution | 3/4/2008 |
Q: Due to shortfall in income and higher expenses we contributed too much to my wife's SEP-IRA. I also ...
A: You can pay the penalty with the 5329 form or you can withdraw the excess. The IRS will catch it if ...
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| health insurance premiums | 3/4/2008 |
Q: Helen. I am an employee but I pay for my health insurance on my own (1500 for the year)...I ...
A: First of all, you must use Sch A to be able to use your medical expenses, so unless you have high ...
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| capital gains | 3/4/2008 |
Q: Three years ago my husband and I purchased 45 acres of vacant land for approx. $105,000 with the ...
A: There is no way to roll over the gains into something else. To calculate your gain, you take your ...
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| gifts, IRAs, and annuities | 3/3/2008 |
Q: My mother is allowed to have 35000 $ plus a house (which we will sell soon we hope - we have not ...
A: Any gifts from Mom in excess of 12K per year must be reported on form 709, by her. However, gift ...
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| TAXES DEPENDENT | 3/2/2008 |
Q: Helen Hi, I'm trying to figure out if its worth it to take someone as a deductible. My mom is in ...
A: Does she have income (not social security) over $3400? If so, you cannot claim her. If not, do ...
|
| I started a non-profit this yeat | 3/2/2008 |
Q: I started up a non-profit this year. We have gotten 501(c)(3) status from the IRS. I am working on ...
A: You are asking for a bit of trouble without having a paper trail. So make sure everything ...
|
| Start-up cost and auto used in two businesses | 3/2/2008 |
Q: Two questions: 1) I have a sole-prop business with about 70k profit for 2007. Then I started another ...
A: If your expenses are start up expenses, they must be amortized. If your shingle was out and you ...
|
| Spouse's Debt Offsets Refund | 3/1/2008 |
Q: TaxMy spouse and I are separated (though not legally). I moved to Washington State in June of 2007 ...
A: If there was no withholding from your unemployment, you are due no refund from the injured spouse ...
|
| takenadvantageof | 2/29/2008 |
Q: I have a big problem. I have been working for a company 3 years filled out an application, a 1040 ...
A: I'm seeing a bigger problem here. It seems to me like you did not claim the extra money they gave ...
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| how to file my 1099s | 2/27/2008 |
Q: My mom and I inherit my deceased brother house on August of 2006. The property at the time was ...
A: You cannot take any loss, it was your residence. Mother, if she did not live in the home can take ...
|
| 401k withdrawl | 2/26/2008 |
Q: Heres the question. I want to withdraw my 401k but my company says i can't only under their ...
A: Each company can make up their own rules as long as they are within IRS rules and companies don't ...
|
| Accountant tax question | 2/25/2008 |
Q: I am considering hiring an accountant to do my taxes. I have a friend (who is not a business owner) ...
A: Personal items are not business items, so if this "accountant" is making personal items business ...
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| individual taxes | 2/24/2008 |
Q: I have been filing jointly for twenty years. Now my wife and I have been separated for more than ...
A: You don't mention children, so the only filing statuses you can use are married filing jointly or ...
|
| After Tax Stock Rollover | 2/23/2008 |
Q: Retired. Rolled over before & after tax dollars & Stock.(Already had ira fund/brokerage and rolled ...
A: You cannot just take after tax money out of an IRA. Your second mistake was to put it into an IRA ...
|
| "Unclaimed Income"? | 2/23/2008 |
Q: Here is my situation: my Grandfather passed away and left me a trust fund. After a few years of ...
A: It was your trust and you are responsible for the taxes on it no matter where the money ended up. ...
|
| taxes and benefits for LLC member | 2/22/2008 |
Q: One of our LLC members will be our on-site apartment manager. He will receive a salary which we ...
A: Since the member is a partner, he gets guaranteed payments, not a paycheck as an employee would. So ...
|
| casualty losses for 2005 | 2/22/2008 |
Q: We ourchased a small home (4.5 hours away) to use as a photo art gallery and summer place: a ...
A: You may have casualty losses here for sure. There are no business expenses allowed tho, the ...
|
| Amend tax filing? | 2/22/2008 |
Q: I just finished doing my 2007 income tax forms. From this experience, I realized that I should have ...
A: For IRS purposes, you must look at the GROSS sale. If that adds dollars to your tax, you must file. ...
|
| 1099 Misc. | 2/21/2008 |
Q: I am an independent contractor. I received a 1099 for work I completed before the end of 2007. I ...
A: Travel can be included in the income. You need to include your expenses in the body of the Sch C. ...
|
| HELOC interest on rental unit | 2/21/2008 |
Q: I had a rental house on the market all of last year, but was not able to rent it until last month. ...
A: Due to tracing rules, you must allocate the interest to where it went, so some is Sch A and some is ...
|
| Loan Defalcation and Unified Tax Credit | 2/19/2008 |
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ...
A: Once you have taken legal action to get your money back, then it is a short term non-business bad ...
|
| loss carryover from prior year | 2/18/2008 |
Q: I have a significant short-term loss carryover from previous years. In 2005 I started having my ...
A: As long as your tax return is true and correct, you should never worry about an audit. If you do ...
|
| tax on sale of home | 2/17/2008 |
Q: My Mother added my brother & I to the title of her fully paid for family home in 1995. She died in ...
A: Your basis is Mother's basis, so whatever she paid for the home and paid for improvements, that is ...
|
| loss carryover from 2 yrs ago | 2/17/2008 |
Q: O'Planick, I have a question regarding carrying over capital losses from two years ago. Why two ...
A: You still need to file 2006 to make sure your carryover is correct (and that the IRS has it in the ...
|
| charitable giving | 2/17/2008 |
Q: If I give highly appreciated securities to a charity can I claim the stepped up value as a tax ...
A: If you give appreciated securities, that is a Sch A deduction and will reduce your taxable income. ...
|
| Sales Tax | 2/15/2008 |
Q: I am in Tennessee. I have kept EVERY receipt for 2007. On all my gas receipts, the tax is included ...
A: Gas tax is not sales tax, so you cannot use the gas tax receipts. As for the clothing, there is no ...
|
| 1099-Misc | 2/15/2008 |
Q: I am working for a company who makes us work under a DBA and we get a 1099-misc marked in box 7, I ...
A: First of all, your employer is treating you wrongly. You are an employee and he is getting out of ...
|
| Contractors fee | 2/13/2008 |
Q: I have a statistical consulting firm. I have hired independent contractor person from turkey (he ...
A: I see no reason why you cannot claim the fees paid. How you get your software to do it and ...
|
| per diem | 2/13/2008 |
Q: Can I change from one contractor to another without it counting against my per diem? I am taking a ...
A: If you are in the same area, and there longer then a year (or your job is expected to last longer ...
|
| Ponzi scheme | 2/13/2008 |
Q: I am a victim of a ponzi scheme, JT Wallenbrock. I am out 66k. We are told by the receiver that we ...
A: When you have gotten back all that you are getting back, then you can write off the balance. There ...
|
| babysitting | 2/13/2008 |
Q: I've read in several articles that if I pay my babysitter less than $1500, then neither one of us ...
A: Income over 50 cents is taxable, so your sitter has taxable income. If she is sitting in your home, ...
|
| Ira withdrawal higher education | 2/12/2008 |
Q: I am a non-traditional student. I am now going back to school after having my children. I have a ...
A: You must have school expenses that equal the withdrawal. You will pay income tax on the money, but ...
|
| Tax Deductions for Computers??? | 2/12/2008 |
Q: I work for a 501(c)3 charitable nonprofit in Elkhart, Indiana. Our organization provides programs ...
A: Since you are a 501(c)(3), you can take any donations and the giver will get a write off. Just ...
|
| Re: Dependents | 2/11/2008 |
Q: You have been such great help and support and for this I thank you tremendously. I have another ...
A: She better make up her mind - first it is 5-6 months, now it is over 6 months. She will need DATES ...
|
| tax on settlement from class action law suit of company I work for over 12 years | 2/8/2008 |
Q: I am a manager for a major company. there has been a law suit on overtime for the management staff ...
A: Since the settlement you are going to receive is to replace wages, it will be taxable and you cannot ...
|
| Delayed tax credits / stock wash | 2/8/2008 |
Q: I have 2 questions. I've heard there are some tax credits, including an education credit, that won't ...
A: Returns with the Ed credits cannot be filed until 2/12. Wash sales happen when you sell at a loss ...
|
| Legality vs. w4s? | 2/8/2008 |
Q: When I began my job I filled out the typical w4s and I claimed "0" as a total. It turns out my boss ...
A: You are not going to like my answer, but if you looked at your paystubs, you would have seen the ...
|
| Tax responsibilities | 2/6/2008 |
Q: I started a private practice in Jan. 2008. Sole proprietorship. I would like to know what my ...
A: Your question is very general. I would strongly suggest looking thru publication 334 at www.irs.gov ...
|
| Do i pay taxes | 2/5/2008 |
Q: I am a full time student and have a part time job do i still have to file for taxes and can my ...
A: Being a student does not give you a "no need to file" out. If you made more then $5350 (or $3400 ...
|
| HSA contributions | 2/4/2008 |
Q: 2007 is my first year in an HSA. I made all the contributions to the plan. My w-2 12b lists "W" at ...
A: If the employer made it, it is not deductible on the 1040 since it is not in your income. If you ...
|
| Uncollectible Judgment | 2/3/2008 |
Q: We live in Virginia, have sued and won against a builder in New Jersey, and have a judgment against ...
A: Yes, this is a deductible loss. There are two schools of thought - one is a theft and the other is ...
|
| Newly retired. Lower Income. Do I file Taxes? | 2/3/2008 |
Q: I liked your profile and expertise. My question is: Now that I am not working (no earned income)and ...
A: What you have told me, you have no filing requirements so you don't have to file a federal return. ...
|
| home improvement and mortgage interest | 2/3/2008 |
Q: I HAVE OFTEN HEARD THAT A TAX RETURN IS HIGHER IN YOUR FIRST YEAR OF A MORTGAGE DUE TO INTEREST ...
A: First of all, please turn off your cap locks key, it is considered shouting and it is very hard to ...
|
| child tax credit | 2/3/2008 |
Q: In my divorce it states that I can claim my 7 year old daughter on my taxes every other year. My ...
A: File your taxes the correct way (claiming your daughter). If you cannot efile them, snail mail ...
|
| mortgage loss ? | 2/3/2008 |
Q: I am in the us military and i had to move out of the country in june 07. i own a house in sc, and i ...
A: No, these are not capital losses. If it was available for rent, the mortgage interest (along with ...
|
| Mileage Expense Dispute | 2/2/2008 |
Q: I work as a traveling sales person. A coworker and myself have had a discussion regarding taxes and ...
A: If you have an accountable plan - Mr Employer, here is my mileage - pay me back at 48.5 cents per ...
|
| Tax question.... | 2/2/2008 |
Q: I am a single guy, and to be honest I am getting violated by Uncle Sam on taxes, since getting this ...
A: Joshua, there is really nothing federally you can do. There is an office in home deduction, but I ...
|
| MFS- Itemized Deductions | 2/1/2008 |
Q: Helen, My husband and I are getting getting a divorce. He wants to file MFS. We have our own tax ...
A: Kelly, I know your husband pretty well and I feel for both of you. Therefore I cannot really help ...
|
| 1099-DIV | 2/1/2008 |
Q: My children have accounts at Pioneer Investments. I am the custodian,their names are followed with ...
A: Since it was a stock sale, it must be reported on the children's return - NOT yours. However, they ...
|
| Capital gain tax | 1/31/2008 |
Q: I was wondering if you can offer me any advice regarding the capital gain tax. I'm planning to sell ...
A: If you sell your home for more then a profit of $250,000 per qualified taxpayer, there is nothing ...
|
| tax question | 1/31/2008 |
Q: I will try to keep this short. Was married, haven't filed since 1992. Own a home and paying ...
A: I would strongly suggest seeing a tax professional (not necessarily a CPA (many CPAs do not do ...
|
| Orphaned nieces | 1/30/2008 |
Q: My twin 17yo nieces were orphaned on June 17, 2007, my husband and I have legal guardianship. They ...
A: The executor of the estate is the one required to file a tax return. If you are not the executor, ...
|
| RESPONSE TO YOUR REPLY OF JAN 28 | 1/29/2008 |
Q: HELEN, SORRY I AM HAVING TROUBLE COMMUNICATING WITH YOU; 8T SEEMS THE ONLY WAY I CAN RESPOND TO YOUR ...
A: Whatever you keep out will be taxable and if you under 59.5 years of age, a 10% penalty will be ...
|
| Rental Property - Secondary residence | 1/29/2008 |
Q: I own a duplex in Margate and my primary residence is in PA. I rent out the bottom unit all year ...
A: You actually have 3 properties. Two personal and one business. The business property (the rental) ...
|
| ~Is this legal~ | 1/29/2008 |
Q: Ok, I have a friend of mine who has children with 4 diffrent women,he is paying child support for ...
A: You would be committing tax fraud since you do not provide anything for these children. This guy ...
|
| RESPONSE TO YOUR REPLY OF JAN 28 | 1/29/2008 |
Q: HELEN, SORRY I AM HAVING TROUBLE COMMUNICATING WITH YOU; 8T SEEMS THE ONLY WAY I CAN RESPOND TO YOUR ...
A: This money should go directly into your retirement account that was worked by the broker. Then it ...
|
| My husband's back child support | 1/29/2008 |
Q: My husband owes 2,201 in back child support. He and I filed taxes joint married for 2007. I did not ...
A: AFTERTHOUGHTS - He owes the money, those are his kids he supports. So I have no pity. And what ...
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| Business use of home | 1/27/2008 |
Q: When deducting a portion of household expenses for business use of home like mortgage interest or ...
A: Not really but kinda. If you are an employee, it really does not come into play too much, same ...
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| claiming a son | 1/27/2008 |
Q: Okay, my boyfriend is a divorced father of one son. During his divorce, his ex-wife, himself, his ...
A: First of all, the year of the divorce - when was it final and are you sure they filed jointly? If ...
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| Marital status | 1/27/2008 |
Q: My son and his wife were seperated for several years, but not divorced. He filed single. Now they ...
A: He needs to go back and amend his returns that he filed single on. He was married and must file as ...
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| Does my child need to file? | 1/26/2008 |
Q: I have a 17 year old son that worked in a bookstore in 2007. We just received his W-2, he earned ...
A: Federally, if he had federal withholding, he should file to get a refund. Just remember, he cannot ...
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| Do I have to file? | 1/26/2008 |
Q: My husband (common law in AL), my son, and I lived together for 7 months last year. He worked and I ...
A: Married filing separate will lose you a whole lot more money. File jointly and file ALL your ...
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| Small non-profit | 1/26/2008 |
Q: This is probably a simple question, but I cannot find the answer anywhere! I am part of a very ...
A: If you want to be able to let the people that give to you write off their donations to you, you must ...
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| texas tax ssi disabled adult | 1/25/2008 |
Q: i recently heard i can be claimed as i am a disables adult who has been living in my brothers house ...
A: As long as your income (not counting SSI)is less than $3400 he can claim you. Is it worth it? For ...
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| commuting costs | 1/25/2008 |
Q: I am a IT contractor for a company. I have an office at headquarters. I am also assigned to work ...
A: If you go to your office before you go out to a site, it is deductible business miles. And to ...
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| dependant's unearned income tax | 1/25/2008 |
Q: A 12 year old boy held in joint custody of divorced parents, where the father has a higher gross ...
A: First of all, I believe that the parent can break the CD for taxes due - check with the lawyer. ...
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| divorce tax question | 1/24/2008 |
Q: I have owned a home that I have rented for the past 8 years. I got married and it only lasted 18 ...
A: If you paid half that mortgage with your money (not money he gave you and you are not paying taxes ...
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| 1098-T?? | 1/23/2008 |
Q: I have a question about the form you get from the college for tax purposes. I contacted my school to ...
A: You answered it my question about tax liability, even tho you think you did not! :) The amount in ...
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| Tax on Gift to Parents | 1/23/2008 |
Q: My husband and I bought a house for his parents in 2000 for $150,000. We live in Alabama. The ...
A: No, you and hubby will have to file a gift tax return (form 709) but that is the only thing that ...
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| what to report | 1/23/2008 |
Q: The taxes taken out of my check each week are sent in quarterly, and I know I file a return ...
A: The church does a 941 and any state forms needed. Year end they also do the W-2s (and W-3) and any ...
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| estate tax question | 1/21/2008 |
Q: My dad ( who is terminal ) gifted us his house , if I sale it I understand I'd have to pay capital ...
A: No. Dad made a very bad tax planning mistake. If he just did this, he should talk to an elder ...
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| why do i owe taxes if I gave to charity | 1/21/2008 |
Q: Ms. O'Planick, My gross pay was $30,450 (minus money towards retirement $1,827 and Medical FSA ...
A: You must itemize in order to deduct your charitable contributions. And $3000 is not enough to ...
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| Per Diem | 1/21/2008 |
Q: My residence is in Texas.I work for a company and I travel more than 200 days a year(to different ...
A: You can take the perdiem and reduce it by the reimbursement, but unless you can itemize (use ...
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| Cost basis for house sale | 1/21/2008 |
Q: Is there a form of "innocent spouse" rule in determining the cost basis for a home? My ex and I ...
A: You cannot use the 1997 price of the home. You need to somehow figure out what the improvements ...
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| File joint or single | 1/20/2008 |
Q: I recently got married in May of 2007. My wife now owes money to the IRS from 2006 and has been ...
A: You really don't want to file separately. The tax rates are higher. You can file jointly, filing ...
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| Inheritance | 1/20/2008 |
Q: Greetings: I have W-2 income of approx. $20,000. I inherited $75,000 from my father who died in ...
A: There are no inheritance taxes until one's estate is over a million. So if Dad left you a million ...
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| Refinance on an investment property | 1/20/2008 |
Q: I am planning on refinancing my investment property and taking some cash out. Do I have to pay ...
A: Your mortgage has nothing to do with your capital gain. So it does not matter what the mortgage ...
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| social security/disability | 1/20/2008 |
Q: MY EX HUSBAND RECEIVES SOCIAL SECURITY DISABILITY. MY CHILDREN STARTED TO RECEIVE MONTHLY BENEFITS ...
A: FYI - posts in all caps are very hard to read and actually considered shouting on the "net". This ...
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| Claiming non-related people as dependents | 1/19/2008 |
Q: I have a friend who is living with me and receving TANIF. She has a 4-year-old son that came to live ...
A: You cannot claim her son at all. If she was living with you all of 2007 as long as living together ...
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| Things to "write off" on Income Taxes | 1/19/2008 |
Q: I am a Manager of a local furniture/financing store here in Ontario, and I am curious as to what (if ...
A: If you are in the US in a city called Ontario - read on. Sorry, there really are no retail tax ...
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| $12,000 exemption | 1/19/2008 |
Q: My husband and I have four children. We are 74 and 75 years old. We own a home worth about ...
A: Follow-up. Elizabeth, I am in York, I'm not sure where you are but I'm thinking Philly area. I can ...
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| should taxes be filed for deceased aunt | 1/18/2008 |
Q: My Aunt Passed in Dec. Although she has a will, prior to her passing her brother (she's a widow) ...
A: If the condo's gain was not more then $250,000, she would not have anything to file on that. Life ...
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| dependents | 1/15/2008 |
Q: My daughter graduated from high school in 2007. On November 10,07 she got married. She lives with ...
A: It depends on their income. If her and her hubby have NO tax liablity on a joint return (their ...
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| $100K Contribution to Home Purchase | 1/15/2008 |
Q: My widowed mother plans to live with my sister/husband and wants to contribute $100K cash as a down ...
A: The easiest way would be for Mom to gift the money to them. She will have to file a form 709 to ...
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| How to file with a disabled spouse | 1/15/2008 |
Q: I got married in May 2007. My husband and I are trying to figure out how to do our taxes together. ...
A: If you file a married filing separate return, automatically 85% of your SSI will be taxable to you. ...
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| child care credits | 1/15/2008 |
Q: I work at night. My daughter is 13 and I pay a babysitter to care for her while I'm at work. (It's ...
A: The day she turned 13 is the day you can no longer claim the child care credit for her unless she is ...
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| back taxes | 1/14/2008 |
Q: I have a quick question. Do children have to pay their parents back taxes if the parent dies and has ...
A: Perhaps. If the child has inherited anything from the parent, the IRS can come back and take that ...
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| Caring for parents | 1/14/2008 |
Q: My parents are retired due to health reasons. They raided their 401ks decades ago and have no ...
A: No, there is no deduction for gifts to family members. However, if their children are supporting ...
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| dependents | 1/14/2008 |
Q: ..My 2 nieces have been living with me since April.. I have been their sole support..however, their ...
A: The only way you will ever know if he claimed them is if you claim them and the IRS rejects the ...
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| Married, Same State, Different addresses | 1/14/2008 |
Q: My husband and I are still very married, but he lives in one part of the state (his license, etc ...
A: You can file jointly or you can file separately (and usually jointly is better). Your only issue, ...
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| repairs vs home improvements & escrow withdraw penalty | 1/13/2008 |
Q: I went to IRS website and found the explanations of home repairs vs home improvements. From what I ...
A: Question one - you add improvements to your basis, so if you have a taxable sale when you sell, you ...
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| recently married - jointly or separately | 1/13/2008 |
Q: I was married in Sep. 2007, and received SSI (disabled but didn't pay enough into SS to receive ...
A: Jointly or separately, you will have to claim the SS income. If you file separately, automatically ...
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| Minor looking to get taxes back | 1/13/2008 |
Q: I am 16 years old, I work for McDonald's and am looking to get my taxes back. The only problem is, I ...
A: Unless you made over $5000+, you should get all your federal withholding back and maybe your state ...
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| IRA early distribution penalty (2005) | 1/12/2008 |
Q: We recently received a "notice of deficiency" letter from the IRS in regards to a 10% penalty ...
A: Did you file form 5329 when you filed the return, using the exception for disabled? If not, you ...
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| Withholding taxes | 1/12/2008 |
Q: My boss had decided that she does not want to pay an account and wants us to pay our own withholding ...
A: In a word - NO! And if she starts not withholding taxes for you, make sure to go to your state ...
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| Stocks | 1/11/2008 |
Q: I sold some stocks during the last qtr. of 2007. I will owe tax (more than 500.00) on this money. ...
A: You can check the requirements for making estimated payments at www.irs.gov and you can find the ...
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| personal vehicle and company use | 1/10/2008 |
Q: Helen, I am facing a decision at work - do I go with a company vehicle that the company takes care ...
A: If you take the monthly allowance, you must use form 2106 to deduct your expenses. If you use the ...
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| Tax question regarding gambling income | 1/10/2008 |
Q: I recently received a letter from the IRS stating that my gambling income that I reported ($3,500) ...
A: Angel, you can file the amended return. And as long as the student lived with you the entire year ...
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| 401K | 1/9/2008 |
Q: My mother in law wants to have some of her husband's assets put into her name as she is worried her ...
A: Without a court order (given in case of a divorce), or death, ownership cannot be changed in a ...
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| Why do I owe?? | 1/8/2008 |
Q: I'm calculating my tax refund for 2007 right now. I make $45,000 and claimed 1 for myself. I'm ...
A: You have done what in theory is the perfect withholding, you actually have broken even and have had ...
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| Early Pension distribution & tax free medical expenses | 1/6/2008 |
Q: I just quit my job & received a letter from my former employer offering me a one-time option of a ...
A: You don't mention your age, so that makes my answer a little more dusty. If your medical expenses ...
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| Who to contact re non-response from IRS | 1/6/2008 |
Q: My Social Security benefits are the only income I have. 5 months ago the IRS Levied my SS Retirement ...
A: I doubt TIGTA will help, the TAO is your best bet. Nina Olson, head of TAO is a real down home kind ...
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| Per Diem and taxes | 1/6/2008 |
Q: Helen, I am a contract engineer in South Carolina. I have my permanent residence in South Carolina ...
A: The minute you know that your job is going to last a year is the minute your perdiem is taxable and ...
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| sub contracting | 1/6/2008 |
Q: i hang sheet rock. i was told before i sarted that if i had to pay out taxes the oner would pay ...
A: If you are considered a sub, you will pay all your taxes, federal, social security, medicare and ...
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| invstment property tax | 1/5/2008 |
Q: we own condo which was bought in 1983..it has been rented out since 1985...we paid 80,000 and can ...
A: Probably most of the sales price, it depends on what is left of the basis after depreciation has ...
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| small claims taxable? | 1/3/2008 |
Q: I had sued a company for unauthorized withdrawals on my bank account, for over charging me and for ...
A: This should have been included on your return and in turn, reduced by your expenses. The end result ...
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| Do I file taxes | 1/3/2008 |
Q: I don't know how much information to give you so I'll give you what I think I should. I work at a ...
A: If you have federal withholding (and maybe state withholding, it depends on your state) you will ...
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| SSI Disability | 1/3/2008 |
Q: I am married with no dependants. My husband always file married joint. This is the first year I have ...
A: You want to continue filing jointly. If you file separately, automatically 85% of your benefits ...
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| investment interest deduction | 1/2/2008 |
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ...
A: Since you did not make the election, you cannot go back and amend the last 3 years, but you can make ...
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| Working in one state, living in another | 12/31/2007 |
Q: but travel every week of town to work in other states. My company is based in Texas and I am paid ...
A: You are an AZ resident, therefore all your income is taxable to AZ. And if you work in states that ...
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| Car Donation | 12/30/2007 |
Q: My church needed a car for a needy member's family. I donated a 1988 Chevy valued at $1800. I signed ...
A: Your church needed to take title of that car. You did lose your donation as you made a gift to an ...
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| Investment expenses | 12/30/2007 |
Q: I invested a rather significant amount of my money in a specific project in a land development ...
A: Not really. You are still limited in your scope as an investor and even if you were on the site and ...
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| Per Diem "travel Pay" | 12/29/2007 |
Q: I work for a large corp with many plant locations. Some of the year I'm at my Homebase plant in ...
A: Travel pay is per diem. If your expenses exceed your travel pay, you may have a deduction. Meals ...
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| Investment expenses | 12/29/2007 |
Q: I invested a rather significant amount of my money in a specific project in a land development ...
A: I used to live in Kingman, let me tell you, that place has grown over the past 20 some years. ...
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| employer filing taxes illegally | 12/28/2007 |
Q: I have a somewhat complicated problem that would not have happened if I had caught it earlier this ...
A: How much do you like your job? If you like it, you may want to ask for more money to cover your ...
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| Business education expense | 12/28/2007 |
Q: I'm a self-employed piano teacher. I'm taking singing and guitar lessons right now and feel that the ...
A: I probably would not have real heartburn with your lessons as you teach music and you also take ...
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| capital gain? | 12/28/2007 |
Q: I live in TN, and I bought a duplex 15 months ago. I live in one side and rent out the other. Some ...
A: First of all, you have two sales, one of a residential property and one of a business property. The ...
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| Reporting subcontractor income | 12/27/2007 |
Q: I work as a fitness instructor on a subcontractor basis. The woman that owns the franchise that ...
A: Erin, first of all, let's go back to last year. If you made a dollar, you needed to claim that ...
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| investment interest deduction | 12/25/2007 |
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ...
A: Scotti, I understand waiting for the kids. Mine are 25 and 23 and they come home to sleep. I want ...
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| investment interest deduction | 12/25/2007 |
Q: I have invested in two beachfront (no buildings) properties and took out loans to cover the ...
A: You did not quite understand the tax laws. You can deduct investment interest to the extent of ...
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| ebay tax laws | 12/25/2007 |
Q: i live in california. For about 10 years i have been buying and selling on ebay. Until last year ...
A: Any and all of your sales were taxable. If you are in the business of selling, which it seems like ...
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| Mother In-Law as a Dependant | 12/24/2007 |
Q: My husband is in the military. His mother recently fell so ill to cancer, that she can no longer ...
A: No, you will not be responsible for her debt at all. Just an FYI, and you did not ask, which most ...
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| lost form1099S and proof of retirement income | 12/24/2007 |
Q: ..I'm in the process of getting a student loan, the lender needs proof of income from my co-signer. ...
A: You are not looking for a 1099S, you are looking for a 1099R. If you cannot find it, you can go back ...
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| Sole proprietor | 12/21/2007 |
Q: am I correct in my understanding that if my sole proprietorship took a net loss of approx $17K this ...
A: At least you did remember it. I remember riding in them! :) If you don't take the standard cents ...
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| Sole proprietor | 12/21/2007 |
Q: am I correct in my understanding that if my sole proprietorship took a net loss of approx $17K this ...
A: Your first assumption is correct, your SE loss reduces all other income. It does not matter if ...
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| filing taxes with a new addition to family | 12/21/2007 |
Q: This year my Fiance is claiming me our daughter (born 8/1/07) and his brother who lives with us...I ...
A: Unemployment does count in the $3400. Only one person in a household can be head of household. So ...
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| Capital gain on sale | 12/21/2007 |
Q: I recently sold my house and am worried about the taxes I may need to pay for the capital gain. The ...
A: Your basis is what was paid for the home plus improvements, so your starting point is the $200K. ...
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| ROTH IRA DISTRIBUTION | 12/21/2007 |
Q: Bcck in 2003 I had to withdraw a portion (10K)of my Roth which is with Fidelity. They couldn't tell ...
A: Yes, three years. So right now, 2006, 2005 and 2004 are fixable. And Fidelity was in the wrong if ...
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| Should my mother have paid a gift tax? | 12/20/2007 |
Q: My mother transferred her home plus an empty lot to me and my siblings several years ago, 2002 I ...
A: Yes, Mom should have filed a gift tax return, but no taxes would be due unless she gave away a ...
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| Tax Question | 12/17/2007 |
Q: I got married in July and moved from NYC to CT. Before I got married, I was living at home and ...
A: You have two choices in how to file. Those are married filing jointly or married filing separately. ...
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| quick claim deed and capital gains | 12/16/2007 |
Q: I have read a few answers on your site and others to avoid quick claim deeds due to the carry over ...
A: If they quit claim the home to you and do the proper filing - ie gi |
