| Subject | Date Asked |
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| Help With Refund Eligibility | 11/20/2009 |
Q: I gave my accountant my 2005, 2006, and 2007 personal and business tax information to prepare both ... A: You can sue him in a civil suit if you think you were done wrong. But no matter what, you have lost ...
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| Help With Refund Eligibility | 11/20/2009 |
Q: I gave my accountant my 2005, 2006, and 2007 personal and business tax information to prepare both ... A: You have lost your 2005 refund, the statute of limitations has expired and there is nothing you can ...
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| 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: She must have a positive income to claim the child care expenses (while actively looking for work ...
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| Retail Tax...double tax? | 11/5/2009 |
Q: I am a salon owner and purchase my product for retail including hair color from a distributor. I ... A: You must charge tax to the end user. You need to check with your state's taxing authority and find ...
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| First Time Home Buyer | 11/1/2009 |
Q: I have a question about the 5405 form for the first time homebuyer credit. I purchased one of my ... A: Sorry, since you bought it from your parents you are not eligible for the first time homebuyer's ...
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| Short Term Capital Gains on Real Estate | 10/23/2009 |
Q: I purchased a property with the intent of its use as a rental unit. The tenants loved the property ... A: If you sell before you own the property a year or less, your gain is ordinary and taxed at whatever ...
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| income taxes | 10/22/2009 |
Q: Can a man claim my granddaughter on his taxes who is not her biological father? Is there anything ... A: The man has done nothing illegal if the child's mother is the custodial parent and has allowed him ...
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| rental loss | 10/18/2009 |
Q: I live in Wisconsin but rented own home in Pennsylvania to my son and his family. They have fallen ... A: Sorry, but no. If you did not receive the rent, you do not claim it. You can still take expenses ...
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| 1040A Lines 12A and 12B | 10/13/2009 |
Q: O'Planick, I had my taxes professionally prepared last year. I do not understand why both my wife's ... A: First question - it appears you have non-taxable income in your pension plans. If so, it will ...
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| transfer tax in PA | 9/22/2009 |
Q: I'm hoping you can point me in the right direction. I bought my first house in March of 2009. It ... A: Boy Robin, I wish I could help, because I would like the answer to this too. But let me try to see ...
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| 401k | 9/19/2009 |
Q: In trying to rollover my 401k from my previous employer they sent me a distribution form instead of ... A: You have 60 days from the date of the check to get the money into an IRA. Whatever is not put into ...
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| federal withholding for severance pay | 9/18/2009 |
Q: I recently tendered my resignation and gave 30 days' notice. Since I was in finances, I was paid ... A: The paycheck processor is correct in the way it withheld the taxes. You received a bulk paycheck ...
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| 16 yr old tax rules | 9/17/2009 |
Q: My 16 year old son started working. I had him fill out a W-2. So far he has had about $1,000 in ... A: First of all, you must claim him, he cannot claim himself. Secondly, you filed a W-4 for him, not a ...
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| Expense deductions while on temp job away from home | 9/11/2009 |
Q: My residence is in Florida but I am currently working on a temporary contract job in Maine. The job ... A: If you are an employee, you can use the GSA rate for everything. If you are there as a ...
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| Ss# | 9/9/2009 |
Q: I am divorced and my wife wont give me my Son's ss# , i need to claim him on my taxes, Is there a ... A: You must have a signed 8832 for you to claim your son on your return (I'm assuming you are not the ...
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| Capital Gain | 9/8/2009 |
Q: I bought my house in 2000. The house was my main residence until the fall of 2005, at which time I ... A: Since you did not live in the home for 2 out of 5 years, you cannot exclude the gain. Either you ...
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| Daycare/Preschool tax | 9/6/2009 |
Q: I am currently employed part time in a private preschool setting as a teacher. The classes only run ... A: Since you are running it in the school, you don't need to worry about home expenses. But ALL the ...
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| Federal Income Tax Filing | 9/3/2009 |
Q: My boyfriend and I are planning to be married (we live in Ohio) and I recently learned that he has ... A: If he never files, they will be constantly over your head as the statute of limitations never ...
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| Federal Income Tax Filing | 9/2/2009 |
Q: My boyfriend and I are planning to be married (we live in Ohio) and I recently learned that he has ... A: He is not going to go to jail. HOWEVER, once you file a joint return, IRS can take all of any ...
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| Problem with IRA contribution | 8/29/2009 |
Q: I am retired and had no earned income for 2008 but my spouse had. Therefore, in the beginning of ... A: You made an illegal contribution as you know. So unless you take it out, you will have to pay taxes ...
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| Property settlement pre dicorce decree | 8/27/2009 |
Q: I want to transfer a portion of my IRA at Wachovia in PA.to my soon to be ex wife and not have any ... A: The decree MUST say the IRA is to be split. You cannot do so on your own. If you try to do it on ...
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| PA local tax | 8/25/2009 |
Q: I work for a small business in California. In August I have been doing this work at my home in a PA ... A: Assuming the folks live where you are now, all your income would be taxable to that locality, not ...
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| Claiming property tax | 8/25/2009 |
Q: I own a house in Pennsylvania, I commute back and forth from Pennsylvania to Virginia. I spend ... A: I have never heard of this, honestly. I would appeal it for sure. I do know someone in the ...
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| LOCAL TAX | 8/22/2009 |
Q: Back in 2000 which was 9 years ago I lived in Quakertown, PA. I received a bill that I owe 1000 ... A: All the PA localities are different and I don't know the rules for the one you are asking about. ...
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| Paying Children Income | 8/21/2009 |
Q: Besides my "day" job in which I get paid a normal, traditional salary ($150K range), I also ... A: No, if indeed they are working for you, and if you 1099 them THEY will have to pay self employment ...
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| withholding tax | 8/19/2009 |
Q: My daughter has been working in a fast food restaurant as a summer job; we noticed that a very ... A: Ellen, withholding is done on a sliding scale and her checks are small (I'm betting she is paid ...
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| PA local and state taxes while working out of the country | 8/18/2009 |
Q: My husband is a DOD contractor in Iraq. He will be out of the country for more then 330 days so we ... A: PA is 3.07% right now. As for the locals, there are so many (67 taxing agencies in PA) that the ...
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| Car Accident Settlement taxable? | 8/9/2009 |
Q: My wife was in a fairly severe car accident almost 2 years ago. The other driver was found to be ... A: This is very general info as without seeing the settlement papers and knowing your particular state ...
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| Series E bonds transfer from owner as gift to beneficiary | 8/8/2009 |
Q: My brother-in-law, Bill Riordan (60 yrs old) has a handicapped friend who he has known for about 15 ... A: Bill could easily teach this "friend" a lesson and just cash the bonds and deep the money. It was ...
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| Freelance Opportunities | 8/6/2009 |
Q: I am a college student and have a part time job, but recently have been dabbling with the idea of ... A: You are correct in that all income is taxable, no matter what the amount. But you are considered in ...
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| Buyout of Inheritance by sibling | 8/4/2009 |
Q: There are four children who are named as heirs to the family home. One sibling wishes to retain the ... A: You each own a quarter and you each have a basis, which is the date of death value of the parent who ...
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| minimum distribution rules from an annuity | 8/4/2009 |
Q: My dad is 81 years old. 5 years ago I became involved in assisting him with his investments. I feel ... A: Your feelings are correct as for the pocket lining. Annuities can be treated as an IRA, but if Dad ...
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| stock sale gains and taxes | 8/2/2009 |
Q: is there any reason that I should spread these sales out over several years, in terms of their ... A: Even tho the gains are taxed at 15%, they can cause other things to happen, such as phase-outs for ...
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| interest earned minor income taxes | 8/1/2009 |
Q: My daughter has a court held trust fund which she is about to receive when she turns 18. She has ... A: She should have been paying taxes all along. Federally she owed a minor amount, PA is probably more ...
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| is a gift earned income | 7/31/2009 |
Q: I worked in a family business owned by my father. I received no W-2 for 2005, 2006, 2007, nor 2008. ... A: Good, take my post with you. Can he create W-2s for those years? No. Only Dad can do that. But ...
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| is a gift earned income | 7/31/2009 |
Q: I worked in a family business owned by my father. I received no W-2 for 2005, 2006, 2007, nor 2008. ... A: If you are working for money, it is not a gift. Dad is messing with you as you are not getting ...
|
| gifting property | 7/30/2009 |
Q: My mother wants to put her home in my name. It is valued at $280,000, which is the same amount she ... A: Assuming you don't live there - mother must file a gift tax return (form 709). You do not have to ...
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| Taking taxes out | 7/30/2009 |
Q: My husbands employer just sold his company to his 2 lead guys and as a result they are paying him ... A: Something smells. It appears they are treating your husband as a self employed person. As such, ...
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| Tax Credit for Homebuyer | 7/29/2009 |
Q: My husband and I are first time homebuyers and we expect to close in a couple of weeks. I am looking ... A: You can file a 1040X and the homeowner's form as soon as you close and get your money SLIGHTLY ...
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| taxes for a cleaning service | 7/29/2009 |
Q: I'm starting a service business. My family and I have discussed that I need to keep track of my ... A: There is really no way I can answer your question, but if you are paying taxes, you are making ...
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| 1065 final k-1 | 7/28/2009 |
Q: I am preparing a 1040 which has a final k-1 from a partnership. Should this also be entered on Sch. ... A: It depends if the person was a general or limited partner, if there are carryover losses or passive ...
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| Taxes on inherited stock and subsequent sale of said stock | 7/27/2009 |
Q: Stock held jointly - husband passes away - the cost basis on half the shares is based on the date of ... A: There is no average per share basis for stock. You need to know what was paid for each share. ...
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| CAPITAL GAIN EXEMPTION ON REAL ESTAE | 7/25/2009 |
Q: MY WIFE AND I ARE IN THE 15% TAX BRACKET MOST YEARS. THIS YEAR WE ARE SELLING MY WIFE'S FAMILY ... A: First of all, your post is extremely hard to read. Typing in all caps is considered shouting. ...
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| my first job | 7/24/2009 |
Q: O`Planick, I was hoping you could answer a question that I have that has been bugging me. For a ... A: Liz, you are 19 years old, stand up for yourself. Go take the job. You will have to put the income ...
|
| per diem | 7/18/2009 |
Q: Greetings! I am a resident of California. Last year, I was hired by a company to do contract ... A: You must itemize in order to deduct perdiem and the job MUST last less then, or be expected to last ...
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| timing for the three year window on home sales tax liability | 7/18/2009 |
Q: We lived in our home for 20+ years and moved this month, July 2009, and have rented the house we ... A: The test starts the day of closing and ends one day less three years later. HOWEVER, rules have ...
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| W-4 | 7/16/2009 |
Q: I am a student and I have a question. Is it ethical, unethical or illegal to be married and claim ... A: I really don't understand your question, but if you are talking about your W-4, the answer is it ...
|
| 1099-C | 7/14/2009 |
Q: I received a letter from the IRS regarding income from a debt cancellation from a debt collector. I ... A: You can get a copy of the 1099C from the IRS (not an exact copy but all the information) and then ...
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| Home during divorce | 7/13/2009 |
Q: My husband and I are going thru a divorce and he wants to try to keep the house, but does not ... A: If the house is considered your childrens' home, you will be allowed an exclusion. If not and you ...
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| Gift tax exclusion | 7/10/2009 |
Q: A relative of mine is going to receive a gift from an inlaw of $13,000, which I know is the maximum ... A: If you are given a gift, it is yours. If a string or in your case a rope is attached, both you and ...
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| Pennsylvania Back Taxes | 7/6/2009 |
Q: I owe Pennsylvania back income taxes. Due to a OIC with the IRS I have been unable to pay ... A: PA usually does not settle back taxes. And you have probably had your run of luck with JK Harris, ...
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| Obligiations of sub-contract to pay all level of taxes | 7/3/2009 |
Q: My son on summer college break is doing a sub contract job in PA. What forms do we use to pay his ... A: If he did not have a tax liability in 2008, then he can wait until filing time to pay his taxes. If ...
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| Sale of Rental Property | 7/1/2009 |
Q: I have rented out my primary residence last year for a period of one year ending August 2009. I am ... A: It depends on the fair market value on the day you started renting it out and of course the ...
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| tax/penalties related to UTMA annuity surrender | 6/30/2009 |
Q: My friend is custodian for his 21-yr old daughter's UTMA plan in an annuity which surrenders this ... A: Please have your friend get better investing advice. An annuity for a child is really really wrong. ...
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| EA omission | 6/23/2009 |
Q: I had an EA do my taxes for 2007. He forgot to include a 1099 for a withdrawal of 6800 from my ... A: All of us make mistakes. And honest, I'm not covering up for him, but did you check the return? ...
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| per diem | 6/19/2009 |
Q: I am an engineer for a company in WI. I will be traveling and working for this company in MT for an ... A: Temporary is less than a year and becomes not temporary the second the job is to last a year or ...
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| Lost estimated tax payment | 6/18/2009 |
Q: I sent off my 2nd quarter federal estimated tax payment via certified mail. It is now more than 3 ... A: First, relax, it has only been 3 days. Worry after a couple of weeks. First, wait to see if your ...
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| real estate fraud and the tax implications | 6/16/2009 |
Q: I am interning in a low income tax clinic over the summer and have a client with a fraud issue. She ... A: This woman needs to go to either an experienced tax professional or an attorney or both. I know ...
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| Flexible spending accounts - unemployed spouse | 6/15/2009 |
Q: In 2008, my husband and I were both employed and my FSA plan year started in July. I took the full ... A: You must have earned income to use the flex money, so if he did not make enough, your flex dollars ...
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| real estate fraud and the tax implications | 6/15/2009 |
Q: I am interning in a low income tax clinic over the summer and have a client with a fraud issue. She ... A: She is going to have to pay the piper. You really don't have a casualty or theft loss, you have a ...
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| Stock sale to take advantage of short term loss carryforward | 6/14/2009 |
Q: Does the IRS recognize a same day sale and repurhase of a stock, inorder to take advantage of a ... A: As long as you are selling the stock for a gain, you are fine, you are just using up leftover ...
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| rental to primary residence sale | 6/11/2009 |
Q: I have a home in a different state that I have rented since 2003. Depreciation is currently at ... A: You will pay up to 25% tax on the recapture of depreciation and you will not be able to exclude the ...
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| Three year refund limit | 6/9/2009 |
Q: I recently received a notice from the IRS that they are not liable for the refund I filed for on my ... A: This law has been on the books as long as I've done taxes, which has been over 40 years. Basically ...
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| Tuition Reimbursement | 6/6/2009 |
Q: My company reimburses either 75% or 100% of tuition expenses related to my Exec. MBA Program. I pay ... A: Any reimbursement over the tax free limit is taxable income to you. Since it is not mandatory, you ...
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| Per Diem for Contractor | 6/5/2009 |
Q: I am the controller for an IT company. We are in the process of hiring a new W2 employee who lives ... A: First of all, you must understand that the absolute second this job is set to last more than a year, ...
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| Federal Income Tax | 6/5/2009 |
Q: My question concerns my tax liability on a settlement I received. To summarize briefly, I was let ... A: These are punitive damages and punitive damages are taxable income. If you do not pay the taxes ...
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| Family Member not paying taxes | 6/3/2009 |
Q: Brother 1 has not paid taxes in 25+ years and is quite proud of himself. He is now going to be ... A: Just say no and don't take the bully to heart. Let him work it out, don't become an accessory to ...
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| Double income cut in half | 6/3/2009 |
Q: My sister and her husband owe 35K in taxes. A physician and a pharma exec with a home in PA, he lost ... A: I do a lot of rep work and may be able to help them or at least set them up on a payment plan. The ...
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| Per diem pay and taxes | 6/2/2009 |
Q: my husband started working for a long-haul truck company as a driver. They said his pay would be ... A: You are going to have minimal expenses such as showers, etc, but the perdiem is FOR his meals. So ...
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| Dependant / Independant | 6/2/2009 |
Q: I have two sons in college. Next year my oldest (22 years old) will be starting graduate school. ... A: If you are paying more then half his support, you can claim him. If he has no income, he would have ...
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| Transfer of Assets | 5/24/2009 |
Q: Transfer of Assets We want to transfer assets from our son’s investment account into our account. ... A: Obviously you started as a sham transaction and now you want to make it worse. The money is his ...
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| Foster Care and taxes | 5/23/2009 |
Q: My husband and I are becoming foster parents this year and I need to know a few things. 1. Is the ... A: The money the state gives you is not taxable. The child must live with you over 6 months in a year ...
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| local earned income tax | 5/21/2009 |
Q: My hubby is a trucker who residence is in Westmoreland county in Pa. We filed earned income tax ... A: I'm in York Co and here, they will put out a warrant for your arrest if you don't set something up. ...
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| how to determine property value | 5/20/2009 |
Q: I am currently renting out my old apartment. I understand that in addition to common changes, ... A: You use the lesser of purchase price (plus improvements) or value on the day you converted it to a ...
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| Tax Withholding | 5/20/2009 |
Q: My girlfriend was reported to have $0 withheld for federal on her w-2. They told her the reason is ... A: While I can understand you are upset, the only regulation is her self-regulation and looking at her ...
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| injured spouse | 5/19/2009 |
Q: My husband and I were just married in May of 08, my husband owes back child support so we filed ... A: Did you file electronically? If not, then they may have just missed the form. Send them another ...
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| Tax Withholding | 5/19/2009 |
Q: My girlfriend was reported to have $0 withheld for federal on her w-2. They told her the reason is ... A: Your first post says she went exempt in April or May. Before that, perhaps her wages were not ...
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| State Taxes | 5/16/2009 |
Q: In 1995 & 1996 i worked in the State of Ohio. i lived in State of Penna. my employer took out state ... A: The statute of limitations to Ohio to refund your money is probably long gone. You can try to ...
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| REntal property | 5/15/2009 |
Q: I have a primary residence. I also purchased a condo with money I had prior to my second marriage. ... A: You did not answer my question. IS HE PAYING RENT? If so, and if it is fair rental value (what you ...
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| confused | 5/12/2009 |
Q: i receive death benefits for my two kids (father). We (my husband and I) do fall in the bracket to ... A: If you are talking SS, you SHOULD NOT be claiming it on your return. And if you have been, you need ...
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| can i re-file | 5/12/2009 |
Q: My parents have been claiming my child for last couple years and I feel that it is not right for ... A: Are you paying your parents rent? Paying for your food, etc? If not, they are supporting you and ...
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| tax on 2nd mortgage | 5/11/2009 |
Q: I am buying a house from a builder and simultaneously selling it. The Purchaser is signing a first ... A: You owe a lot more then the cash in. If you are buying the house for $200,000 and selling it for ...
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| taxes incident to divorce | 5/8/2009 |
Q: As per my divorce decree, I was to receive half of my former husband's excess 401K contributions for ... A: The income should have been reported on the 2007 return if he did got the money back before March. ...
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| No federal tax being withheld from my check? | 5/8/2009 |
Q: My name's Jessie and I am a divorced mom of two. I have been working at my current job now for three ... A: Congress has more money coming into our paychecks then ever before. If your income has not ...
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| Second Home Questions | 5/8/2009 |
Q: My husband and I have a primary residence. Last October my husband took a job 62 miles one way from ... A: He has no deductions for the rent he is paying, so at least you will be able to write off the ...
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| Investment taxes | 4/26/2009 |
Q: My wife and I lived in a very rural part of Ohio. Very poor economy and no work. I had broken my ... A: These two are not in Akron, but I know are qualified to help and may be worth an email. Please feel ...
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| capital gains | 4/26/2009 |
Q: I am the 3rd generation to own a family farm. The price I paid is about 1/5th what it's worth ... A: There is no reinvesting a home anymore, that left in the late 90's. Your gain will be capital and ...
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| Investment taxes | 4/26/2009 |
Q: My wife and I lived in a very rural part of Ohio. Very poor economy and no work. I had broken my ... A: Hate to tell you, but it what you did with the annuities was prohibited and hopefully you did not ...
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| jackpot winner | 4/26/2009 |
Q: I won 540,000.00 on a jackpot in a navada casino and was told I would have to pay aprox. 170,000. in ... A: You can give my portion back to me for starters. :) There is really nothing you can do but keep a ...
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| head of household | 4/24/2009 |
Q: My husband and I were separated from Feb 0f 2008 thru March of this year, & I lived with my elderly ... A: Actually, since he did HOH, you do not have to itemize. Had he done married filing separately, you ...
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| Philadelphia local tax | 4/24/2009 |
Q: This is the first year I did my husbands taxes since he has been driving a truck. He is an over the ... A: If you live in Philly, you do owe local income tax to Philly. And besides the point that it is more ...
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| Capitol Gains Tax | 4/24/2009 |
Q: You have lived in your home since 1961 and now must sell because of health. How does this affect ... A: Ed, not in PA :) , maybe in Oregon, but there are still some outs for you. First of all, Mom's ...
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| penalty on withdrawal from thrift savings plan | 4/23/2009 |
Q: I made an early withdrawal from my 401K in March, 2008. I withdrew $100,000. I know that in ... A: No way is 20% going to be enough for you to not pay taxes, but with the withholding, as long as you ...
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| Capitol Gains Tax | 4/23/2009 |
Q: You have lived in your home since 1961 and now must sell because of health. How does this affect ... A: I have no idea what Oregon will want, but IRS says that as long as your gain is less then 250,000 ...
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| tax deductions | 4/20/2009 |
Q: i live in california. i have a couple questions that i hope you can answer. i work full time as a ... A: I can't tell you if an LLC is good for you or not. I can tell you that it really sounds like you ...
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| My church pays me but no 1099 | 4/17/2009 |
Q: I started playing piano for a church at the beginning of last year. I get $400 a month for all 4 ... A: You should receive a W-2 as you are an employee of the church. So there is an issue there. Seeing ...
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| 401k early distribution due to term illness | 4/17/2009 |
Q: I am in the process of filing for a friend that I was/am POA for, who died in Sept. She cashed out ... A: Since she was in SSDI, the 401K distribution is NOT subject to penalty, just normal taxes. ...
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| NOL | 4/17/2009 |
Q: my husband and I who file jointly have a NOL on our personal taxes this year carried over from the ... A: Right now you are asking to defraud a bank. The IRS says you cannot skip a year with your NOL or ...
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| dependants and filing taxes | 4/14/2009 |
Q: If a child has lived with you for the greater part of the year but your ex is listed in divorce ... A: First of all, I am not a CPA, I'm an EA and a true tax professional. Secondly, if you read ...
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| Renting house to son | 4/14/2009 |
Q: We (my wife and I) are planning on renting our house to our son and his family. They are moving back ... A: If this is a not for profit rental, you can only deduct your expenses (in a very specific order) up ...
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| How to file an extension and report self employment income | 4/13/2009 |
Q: I hope you can help me out with some pressing tax questions. I used to have an LLC and worked for ... A: You need to file your extension and pay what you can by Wednesday. What is not paid, but what is ...
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| tax from selling a house | 4/11/2009 |
Q: If I build my own house and sell it after 7 years how would taxes be figured on capital gains? Cost ... A: Sweat equity has not tax bearing on anything. If this is your personal residence and you do not ...
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| Prepaid cell phone - other | 4/9/2009 |
Q: My wife is a real estate agent. As she was doing her studies back in Feb 2008 we bought a prepaid ... A: With cell phones, you must keep a log of all calls, both business and personal, and deduct only ...
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| tax | 4/9/2009 |
Q: I am somewhat new to this so please bear with my various questions. I am self-employed. This year, ... A: John, your question is way to long for my taxed brain to look at right now. The only thing that ...
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| TAX | 4/8/2009 |
Q: I just did my tax and I owe the irs 2,700. I can't afford to pay it. What are my options. A: File on time first and send what you can! If you can pay it all within 3-4 months, just keep ...
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| Parents and Taxes | 4/7/2009 |
Q: I'm 20 years old, I moved out of my parents house in May of '08, lived with my girlfriend for 4 ... A: If your parents supported you over 50%, they are correct. But why are you fighting $400? If you ...
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| 1099-Misc | 4/5/2009 |
Q: We have a local agency called Monadnock Worksource. They find work and home care for handicapped ... A: This is taxable income. I think they are trying to say it is sort of a sheltered workshop income, ...
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| Please help/IRS question | 4/4/2009 |
Q: We need help! Our home was foreclosed last August (2008) and we received a 1099A from the lender ... A: Until the home is sold and you receive a 1099-C, you really don't have anything to report. When you ...
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| capital gains | 4/3/2009 |
Q: I have a mutual fund accounts that automatically purchases/reinvests my dividend by buying shares ... A: Your dividends add to your basis. So if your basis is $14K and you sell for $8K, you have a $6K ...
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| rent/travel business write off | 4/2/2009 |
Q: I am presently a self employed physician working on a part time contract basis as a locum tenens ... A: The answer is no, once the assignment goes a year or is expected to go a year, there is NO deduction ...
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| dependent minor tax exempt? | 3/31/2009 |
Q: Hey there. I turned 18 years old at the end of 2008, and I believe my estranged mother is claiming ... A: Dependents and minors are NOT exempt to file returns. If your mother supported you over 50%, she ...
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| Form 1041 Schedule K-1 | 3/31/2009 |
Q: For the last 20 years I have received interest only on money that was awarded me as a result of a ... A: They are not breaking the law. As long as they get the K-1 out by the due date of the return or ...
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| Capital gains | 3/30/2009 |
Q: We had been renting a home for 4 years and in 2008, the owner gifted us the home. She had paid ... A: You have a taxable gain and it is short term. You have to use her basis, which will be what she ...
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| IRA/Roth IRA | 3/26/2009 |
Q: I am planning to convert my IRA to a Roth IRA. I am within the allowable adjusted gross income. If I ... A: Any funds not rolled into the ROTH, including those to pay the taxes, are NOT eligible for ...
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| Dependent Income | 3/25/2009 |
Q: When my child receives a W2 from her employer, do I have to file her taxes individually? Can I ... A: If she has taxable income (over $5450 with no investment income) she must file. If she had federal ...
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| profit from rental property | 3/25/2009 |
Q: We live in Maryland. We sold a rental property (small cottage used only for rental) we own in Maine ... A: Sorry, but no. Had you exchanged the ME property for the TX property, you could have gotten out tax ...
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| 1099 | 3/24/2009 |
Q: I am employed but my employer told me that I will get a 1099 at the end of the year. How do I pay my ... A: Your "employer" is screwing you royally. You will have to pay SE taxes and are not covered under ...
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| Delinquent Tax Debt | 3/23/2009 |
Q: I owe a total of about $67,000 from 3 years '03, '04, '05 - my husband was self employed back then ... A: First of all, it does not sound like the taxes are correct. You can go back and amend them and fix ...
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| RMD from brokage account | 3/22/2009 |
Q: good morning I made a stock withdrawal from a brokerage IRA and had it placed into a personal ... A: No, the date acquired is the day you took it out of your IRA. I misunderstood your question. You ...
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| Who Should We Turn To? | 3/19/2009 |
Q: My wife and I find ourselves in the uncomfortable position of not wanting to go back to our old ... A: Ask friends. They may tell you who they go to, but they will definitely tell you who not to go to. ...
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| Capital Gains vs. Inv. Income Form 4952 | 3/18/2009 |
Q: I had an investment property in which I paid interest over a few years, did not rent it out and sold ... A: You needed to make a written election on the original return. Since you did not, you cannot add the ...
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| 2008 tax question (please help) | 3/16/2009 |
Q: Good afternoon Helen, I would like to start by thanking you in advance for doing what you do, ... A: I would sue him in local court. It will not cost a lot of money and the issue would be exposed. ...
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| 2008 tax question (please help) | 3/16/2009 |
Q: Good afternoon Helen, I would like to start by thanking you in advance for doing what you do, ... A: This guy is a cheat and should be shut down by the IRS. He is NOT allowed to wire the money to his ...
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| IRAs | 3/15/2009 |
Q: I have been taking my RMD each year (8years) from my IRA. I just discovered that I have been paying ... A: No, you need to go back and amend the past years return. You will not get any refund from 2004 and ...
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| Land Sale | 3/14/2009 |
Q: I am a Pennsylvania resident. Last week, I received about $5500.00 from the sale of some land in ... A: When Dad died, your mother inherited it. And you inherited her portion. So your value is the date ...
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| Taxes on Survival Income | 3/11/2009 |
Q: As former middle-class Americans, we are middle-aged, and doing whatever we can to survive until we ... A: Anything you sold for more than you paid for it will have taxes due on it. Those items will go on ...
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| casualty gain | 3/11/2009 |
Q: We had a house fire. My question is on the contents-personal items. We listed 1330 items on our ... A: You do not have to do the casualty form if you are totally reimbursed by your insurance. Basis is ...
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| 22 Year Old Grad-Who Claims Me? | 3/10/2009 |
Q: I am a 22 year old full time grad student who lives and attends school in Pennsylvania. I live with ... A: It is everything and if you give over 50%, you can claim yourself. You have to calculate imputed ...
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| sale of land | 3/9/2009 |
Q: I am assisting my mother-in-law (in her 80s) with her taxes. My mother and father-in-law "purchased" ... A: Your MILs basis is one half of what his sister paid for the property and one half the date of death ...
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| Claiming Dependants | 3/9/2009 |
Q: I'am seperated from my wife and am currently ordered to pay $1,733 per month for child support for ... A: You are confusing 2 issues. Taxes and child support. The custodial parent is the one that either ...
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| Inherited a home | 3/8/2009 |
Q: My mother passed in 2007 and my sister and I inherited her home. It was valued at 280K on her ... A: The utilities are personal and not deductible. Your share of the taxes go on your Sch A unless you ...
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| Federal Taxing of Inherited Mineral Rights | 3/8/2009 |
Q: My sister and I inherited mineral rights from our mom in 1987. Mineral rights only, we do not own ... A: Sure. This is taxed to you just as it would have been taxed to your mother. You are now the owner ...
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| IRA question | 3/7/2009 |
Q: I have a question on 401(k)/IRA account to get the tax benefit. We are filing the current return ( ... A: Since she was eligible for the plan at work, she cannot deduct an IRA on her own. She is able to ...
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| 1099-B | 3/4/2009 |
Q: I loaned/invested $5,000 to J. T. Wallenbrock & Citadel Capital on April 2001. I received a ... A: Do you have any idea what percentage of the payout this is? I would come up with a ratio the best ...
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| divorced parents and dependants | 3/3/2009 |
Q: I am a recentley divorced parent and I have two children....My divorce was finalized July of 2008 ... A: If you are the custodial parent and you did not sign an 8332 allowing him to claim them, YOU claim ...
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| 1099 unfiled | 3/3/2009 |
Q: In 2007 my employer loaned me 3000 for moving expenses and gave me a 1099 for the loan. I then paid ... A: Your employer needs to correct the 1099 to show it was paid back and issue you one for -0- or ...
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| tax return forgery | 2/28/2009 |
Q: The father of my daughter's child filed 'their' taxes electronically without her knowledge or ... A: He could not have filed a return with her, it would be illegal. (I mean, he could have done it, but ...
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| Quakertown Earned Income Tax | 2/26/2009 |
Q: I was just notified by Berkheimer that I owe Earned Income Tax for the years 1992 and 1993 that I ... A: If you live in a county/township for any part of a year, you owe the local taxes for that portion. ...
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| refile 2007 taxes | 2/26/2009 |
Q: My husband took early retirement in 2007. He knew he would work some during the year 2007, but was ... A: You don't need anything to prove anything, just the checks on the repayment. You put the repayments ...
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| Business expenses | 2/24/2009 |
Q: I have some questions about when business expenses become deductable. If I begin setting up a ... A: The expenses are considered start up expenses and deductible when the business starts. If you had ...
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| house sale and social security | 2/24/2009 |
Q: 1.) I owned a home in another state jointly with my 2 sisters and my parents. This home was gifted ... A: Let me do the easy one first. Your daughter's SS goes on her return and not yours. If she has no ...
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| Inherited house and renting to sister | 2/23/2009 |
Q: I have a sister who lived with a person who passed away. I bought the rights of inheritance to the ... A: If you are renting the house out without a profit motive, you can only take your expenses to -0- and ...
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| Filing Married but Seperate | 2/22/2009 |
Q: Good Afternoon, my parents are hapily married & went to file their tax return. Unfortnately, my Dad ... A: FL is not a community property state. You can find all the "handslaps" in pub 17 at www.irs.gov. ...
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| Auto reimbursement doesn't cover costs - deduct difference? | 2/22/2009 |
Q: Helen, Thanks for reading my question! I currently receive $450 car allowance + a credit card for ... A: You can deduct your business expenses, either by using the actual expenses or standard mileage rate. ...
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| Child Dependant with New Changes | 2/22/2009 |
Q: I have a 22 year old daughter who is a full-time student. She will make between $4000-6000 in 2009. ... A: If you are supporting her, she cannot claim herself. You can choice not to claim her, but she will ...
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| 1099R question | 2/21/2009 |
Q: I have a tax client who brought in a 1099R from a life insurance company. Box 1 and 2a amounts ... A: I'm sorry for being rude, but if you are preparing taxes, you need to stop. This is a very basic ...
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| 1099-B,1099-DIV | 2/19/2009 |
Q: my daughter (dependent full-time college student) received 1099-B, box 2 shows stocks, bonds, etc. ... A: The amount of all reinvested dividends add to her basis, both in cost and amount of stock owned. ...
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| Sale of Mother's Home | 2/16/2009 |
Q: This is in two parts: My two sisters and I sold our mother's home 1 year after she passed away. My ... A: Since you sold the home for less than the date of death value and assuming you did not live in it, ...
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| mortgage loss as a tax deduction | 2/16/2009 |
Q: I am being audited by the IRS for the following reason. I have a rental property that was being ... A: You cannot deduct rent paid to yourself. You may have a loss due to the mortgage interest, but that ...
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| married filing separately vs jointly | 2/15/2009 |
Q: I was wondering which is a better choice for me and my husband when it comes to filing our taxes; ... A: You did something very wrong when you did the switch. There is NO WAY that MFS is going to benefit ...
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| 1099 B | 2/11/2009 |
Q: Company i worked for gave us 25 shares of stock as a gift on july 21 of 2008.I sold the stock on ... A: It was not a gift, it was an incentive to keep you there (a bribe if you will) and is totally ...
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| HOH vs Single | 2/8/2009 |
Q: My ex-husband and I were divorced in Sept 08. He moved out in Sept 08 as well. Therefore, he was ... A: The IRS person is an idiot. There is NOTHING in the tax code that says HOH can be un-opposed. Your ...
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| EIC claiming | 2/7/2009 |
Q: Every year now I have claimed my son as an exemption and for EIC. I am a single mom, never married ... A: He cannot claim your son, you are the custodial parent. If your return has been rejected, you need ...
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| RE: 1099-MISC | 2/5/2009 |
Q: We received a 1099-MISC from a pipeline company after they reimbursed us last year for damaging our ... A: First of all, you should not have paid taxes on the easement and you do not owe taxes on this money ...
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| First Time Home Buyers and Newlyweds for 2008 | 2/4/2009 |
Q: I have a couple different questions regarding the filing of our taxes. 1) I first entered my tax ... A: I'm going to make this short and sweet, you are over your head using the box. First of all, you did ...
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| Life Time Use | 2/4/2009 |
Q: 2002 Parents home transferred to my name. Mother had Life Time Use. In 2007 she passed away. Home ... A: If your mother retained a life estate, your basis is whatever the value of the home was on the day ...
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| death of spouse | 2/3/2009 |
Q: My husband passed away Nov. 2008. I know that I am eligible to file jointly, but when plugging in ... A: While you can file separately (and if you are in a community property state, stop reading and see a ...
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| sold home of deceased mother's | 2/1/2009 |
Q: sold a home in 2008 that was we bought for $1 warranty deed from parents. Mother enter nursing home ... A: Unless Mom kept a life estate, your basis is her basis and you will pay tax on the gain. If IRS ...
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| filing eic on ammendment | 2/1/2009 |
Q: I have two children. I already filed my taxes and got a refund, but I forgot about a 1099 I just ... A: You do not have to use the same preparer. As for getting EIC, I would have no idea, but looking at ...
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| Fair market value? | 2/1/2009 |
Q: Carole couldn't follow-up with my question (maxed out). Maybe you could help? How do you determine ... A: As long as the assessment was made close to the date of death, yes, it is okay. So your gain is ...
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| Severance pay taxes | 2/1/2009 |
Q: My job was recently eliminated after working for the company 25 years. I’m entitled to a severance ... A: Severance can be withheld at a higher rate for federal only (flat rate of btwn 25-28%). PA stays the ...
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| Ex husbands taxes | 1/28/2009 |
Q: in 2005 my ex husband was working as a subcontractor, we were separated and filed a tax return, he ... A: If you filed a married filing joint return, the IRS will keep your refund since you are responsible ...
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| Auto Deductions | 1/25/2009 |
Q: I work as a w-2 employee as a sales rep. and receive a $450 per month auto allowance. For the past ... A: If you started using the standard mileage rate, you can switch back and forth btwn standard and ...
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| earnd encome credit | 1/25/2009 |
Q: I'm filing separate from my husband but he owes back taxes federal and they take my money to if i ... A: If you file separately, you will not get EIC. If you did not sign the return that he owes money on ...
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| Filing Personal Income Tax Statements | 1/23/2009 |
Q: I was wondering if you might know if there is a penalty for not filing your annual personal income ... A: If you are getting a refund, you are correct, they will not come after you. HOWEVER, for example ...
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| Mileage Reimbursements | 1/22/2009 |
Q: I work as a legal assistant for a lawyer who recently has moved his office from downtown Atlanta to ... A: Driving to his home is commuting and if you are reimbursed for that, it is taxable income to you. ...
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| Taxes for a married couple who are separated | 1/22/2009 |
Q: I am separated from my husband, and have been since May, 2008. We have three kids and I plan to file ... A: If the children are living with you, you are the custodial parent and you can claim them or allow ...
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| IRA taxes | 1/22/2009 |
Q: In 2008, when I retired, I received $10,000 from the company I worked for. Nothing was withheld for ... A: You have numerous issues AND problems. The max you can put in an IRA for 2008 is $5,000, unless you ...
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| Vanguard account | 1/20/2009 |
Q: My mother left me $17.000.00.Half in GNMA and half in Bond index. Today i received a form 1099-b ... A: You have to know your basis and that is what the fund(s) were worth on a date of your mother's ...
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| claim zero or one | 1/19/2009 |
Q: I am a single male with one daughter that lives with me. I make about 45000 to 50000 a year. I ... A: You can look at pub 15 at www.irs.gov. That is the withholding publication. Start around page 36, ...
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| Coverdell Early Withdrawal | 1/19/2009 |
Q: I need to withdraw from the children's Coverdell IRAs to refinance my home. I have lost value in ... A: If you are taking all the money out of the fund and if you have a loss from the original ...
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| Contractor Per-Diem Taxability | 1/19/2009 |
Q: Background: I have a permanent residence in a southwest state. I am working for an east coast ... A: The second the company says Mark, you are staying either perm or over a year is the second your ...
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| Prize Winnings | 1/19/2009 |
Q: I won a new motorcycle in my son's school raffle this past summer. Its purchase price was ... A: Providing you can prove the fair market value of the bike was $10K, that is what you pay tax on. ...
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| Claiming a parent | 1/18/2009 |
Q: On Jan 17th '09 I bought this house from my mother. She retired Aug'08. We both live in the same ... A: If Mother's taxable income is less then $3,500 for 2008 (and after that, equal to the personal ...
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| SS disabilty,divorce | 1/16/2009 |
Q: I am 18 years old I am disabled receiving SS disability. I was divorced in 2008 income $18504, sold ... A: Your wages, perhaps the house sale profit unless you can exclude it and most certainly the 401K ...
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| 1099-ish type question | 1/15/2009 |
Q: I'll try and make all this as to the point as possible. I work in computers and have a regular 9-5 ... A: I do not give any software support, but for tax knowledge, you will file as normal, along with 2 Sch ...
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| gain on house | 1/14/2009 |
Q: In 1981, my parents bought a house for $61,000. In 1996, when the house was worth $112,000, my ... A: Your basis is one half of $61,000 or $30,500 and one half of $112,000 or $56,000, for a total basis ...
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| Taxability of Masonite Omniwood Siding Class Action Lawsuit | 1/14/2009 |
Q: I received a 1099-MISC from the claims administrator for compensation that was paid to me under the ... A: As long as you originally did not write off or depreciation the siding (as in a rental home), your ...
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| 1099's | 1/12/2009 |
Q: I have two independent contractors who never submitted W-9's. Now we have to file 1099's, but have ... A: Send them the 1099's anyway, leaving the SSN block blank. The IRS may assess a $50 each fine for ...
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| Newly Created Single Member LLC | 1/12/2009 |
Q: My wife recently (9/2008) changed her business from a sole proprietorship to an LLC. I typically ... A: Yes, you will need to do 2 Sch Cs, one pre-LLC and one after-LLC. The RCT 101 is really not that ...
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| ira, medical tax question | 1/1/2009 |
Q: If I was laid off in 11/07 and took money from my 401k for living expenses before I found a job in ... A: Your Cobra payments don't count, so the ONLY amount that will be penalty free will what was used for ...
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| CLAIMING A DEPENDANT | 1/1/2009 |
Q: I AM A DIVORCED FATHER OF A NOW 16 YR DAUGHTER WHO HAS PAID SUPPORT FOR YRS AND MY DIVORCE DECREE ... A: First of all, turn off the caps lock key. Typing in all caps is considered shouting and very hard ...
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| FILING MARRIED | 12/31/2008 |
Q: IF A PERSON IS MARRIED BUT HAVE BEEN FILING THEIR RETURNS AS SINGLE FOR OVER SIX YEARS WHAT KIND OF ... A: Please do not use the caps lock key. It is considered cyber shouting and very hard to read. You ...
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| IRA taxes | 12/31/2008 |
Q: Good Day, Thank you for providing this service. My mother would like to cash out her IRA Mutual Fund ... A: Asssuming Mom is at least 59.5 years of age, she will only owe income tax on the money, no capital ...
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| 72(t) Early IRA Distribution Split | 12/30/2008 |
Q: I have a client and her spouse who share equally in a 72(t) payout from an IRA, which is the primary ... A: I wish I had time to take time to charge you Janis, but with tax season almost here (and a vacation ...
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| Dependant Status | 12/29/2008 |
Q: I am newly separated from my spouse at the beginning of Nov 08, with two small children and have ... A: He supported them for most of 2008, you gave no support (financially) at all. Don't be vindicative. ...
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| Section 179 tax deduction on vehicles | 12/28/2008 |
Q: I have been informed that if one purchases (finances) an SUV in year 2008 greater than 6000 lbs ... A: You do not need a business name to take the deduction. Your understanding is correct, just know ...
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| private house sale | 12/27/2008 |
Q: My sister and I inherited a home from my mother. We decided to keep the home and now want to sell ... A: Whether you seller finance or not, the gain is calculated the same. The basis is date of death value ...
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| my filing status | 12/24/2008 |
Q: I been married since august. This is my first time filing and my husband second time filing. We are ... A: You have two choices for filing status and that is either married filing jointly or married filing ...
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| 1099C and Bankruptcy | 12/21/2008 |
Q: I need help so bad. We did a deed in lieu on our home in January 2008. We owed $220K on it and I ... A: I'm going to say that since the foreclosure already took place, it cannot be placed into your BK and ...
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| sale of one acre lot off 25 acre parcel | 12/19/2008 |
Q: I sold an acre building lot in York County, PA this year, 2008. I sold it for over $100,000 after ... A: Mary, I think it would be better to sit and talk about this in person, so we can see each other's ...
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| sale of one acre lot off 25 acre parcel | 12/18/2008 |
Q: I sold an acre building lot in York County, PA this year, 2008. I sold it for over $100,000 after ... A: Since the costs were for the entire parcel, you must prorate those costs and it would be easiest to ...
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| personnal taxes | 12/18/2008 |
Q: My boyfriend and I have been living together for two years. I didn't work for the year of 2008. Can ... A: Yes, this is a brand new ruling. Last year he could not have, but this year he can and the new ...
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| personnal taxes | 12/17/2008 |
Q: My boyfriend and I have been living together for two years. I didn't work for the year of 2008. Can ... A: If your relationship is not against local law, and you have no income, he can claim you as a ...
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| Tax/Lien questions | 12/17/2008 |
Q: hopfully, provide some enlightenment. Some background which I think is realevant: My wife and I owe ... A: Just keep sending in those payments until the other years are paid off. The overage for the one ...
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| Tax exemption with minor children if divorced | 12/17/2008 |
Q: This will be the first year my ex-husband and I file after our divorce and we have 2 minor children. ... A: If he is not supporting them, you can claim them both. The custodial parent claims the children and ...
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| Form 1040-ES; changed jobs mid-year | 12/17/2008 |
Q: I changed jobs in August 2008. From January 2008 to August 15, 2008, my pay was taxed by my ... A: I just wanted to make sure you were not classified wrong. Dig out your 2007 return and look at the ...
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| Small Business Taxes | 12/16/2008 |
Q: My 13 year old son and my 14 year old son helped me during the year on my side business. I ... A: Assuming you are a sole prop, you should give your boys a W-2 with their earnings. You do not have ...
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| IRA Rollover | 12/15/2008 |
Q: I rolled over a old traditional IRA to a Roth IRA recently. I hadn't contributed to the traditional ... A: You really have to go back in your records to see what was deductible and what was not. The amount ...
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| Alimony | 12/12/2008 |
Q: A taxpayer pursuant to a court approved settlement agreement pays his ex-spouse alimony of a certain ... A: No to the current payments. He is making voluntary payments to her not under the decree, so it is ...
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| 1099 | 12/12/2008 |
Q: My husband and I moved to COlumbus OH 12-1-2005 from Cleveland OH. At the time we refinanced our ... A: It will be taxable unless you can prove insolvency as the loan is NOT qualified debt for the ...
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| real estate inheritance | 12/10/2008 |
Q: my wife and her sister are selling their deceased mothers home, which is in my sister-in-laws name, ... A: It looks to me as sister in law owned the home and she is making a gift to your wife. Gifts are ...
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| Basis | 12/10/2008 |
Q: When my mother passed away, I bought my 2 siblings out for the house. I intended to live there, but ... A: FMV has nothing to do with it. Date of death (or the alternate valuation) starts things. So, say ...
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| roth conversion with trad ira that has some cost basis | 12/10/2008 |
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: The conversion amount is not used to calculate your income for conversion, so you are okay there. ...
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| 72T ending | 12/9/2008 |
Q: I am 55. I have approx $250K in a IRA which was created by merging my IRA and the 401K's from 3 ... A: Craig, you can do whatever you with it once you hit 59.5, and that means leave it alone until you ...
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| roth conversion with trad ira that has some cost basis | 12/9/2008 |
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: You first offset any gains (long from long, short from short then any others you have), then you use ...
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| Filing Status | 12/9/2008 |
Q: My daughter is wondering if she can file a federal tax return as married separately, or head of ... A: I can't tell you if the support is taxable or not. It depends if it is alimony or child support. ...
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| w4 | 12/9/2008 |
Q: Helen, I make 130k to 150k yr.At the beginning of the year I claim unmarried with no dependants. ... A: I can't tell you how to file your W-4 without seeing your tax return. But I can tell you how to ...
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| Baby-sitting | 12/8/2008 |
Q: I have paid my sister to baby-sit regularly for me this year. She didn't earn enough to have to ... A: If she was sitting in your home, then yes, she was your employee and you should have been ...
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| Filing Status | 12/7/2008 |
Q: My husband and I have been married for 4 years and have filed taxes as married filing jointly. I ... A: Tracy, it will be better if hubby files the injured spouse form with your married filing joint tax ...
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| Filing Status, dependent, and Schedule E Rent Income | 12/6/2008 |
Q: I purchased a two-family home in early 2008. The first floor is occupied by me and my fiancee, ... A: Your girlfriend's mother cannot claim head of household if your boyfriend is claiming her. She is ...
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| ESOP payment | 12/6/2008 |
Q: I will soon be receiving $85K through and ESOP. I am now a student and would like to use this ... A: If the ESOP is in a retirement plan, you must roll it into an IRA in order to take any out for ...
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| Taxes | 12/5/2008 |
Q: If i filed my corporation in 2003 but i started business in 2005, do i have to pay taxes for 2003 ... A: You started the corp in 2003, therefore, you should have a return in 2003 and 2004, even if it was a ...
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| Primary Residence | 12/5/2008 |
Q: I just moved out of my primary residence which is a co-op apartment in Brooklyn, NY in the middle of ... A: All of the rental income is taxable, but you will have expenses also and depreciation. See Schedule ...
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| Prize winnings | 12/5/2008 |
Q: I won a new car. The manufacturer is going to send me a 1099 for $28745.00. The IRS help line ... A: You do, your first was NOT asking the IRS. :) You can claim what a willing buyer and seller can ...
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| Aston Township earned income tax | 12/5/2008 |
Q: Aston township has a 1% earned income tax in place. I did not file this tax for my daughter in 2004. ... A: Yes, the fines, etc are owed. It is not their responsibility to tell you that a return needs filed, ...
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| write offs for s corp | 12/4/2008 |
Q: i just setup a "s corp" and wanted to know where i can learn: 1)tax rules and regulations of s corp ... A: The person that helped you set it up should be the one answering these questions, but you can read ...
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| Conversion from 401k to Roth IRA | 12/4/2008 |
Q: I rolled over a 401k account to a Traditional IRA this year. The account was partially funded with ... A: When you do the conversion to the ROTH, you must take into account ALL your IRA balances (on form ...
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| pa capital gains | 12/2/2008 |
Q: I recently sold my home and property,actually had to before i lost it all. My question is do I have ... A: This is a little tricky, since you kept a part of the property. So I need to ask you some ...
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| roth conversion with trad ira that has some cost basis | 11/30/2008 |
Q: I have a trad. IRA that has a partial cost basis(back in 90's added some post tax dollars when ... A: Yes, you only pay tax on the before tax dollars and appreciation. The aftertax dollars are not ...
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| capitol gains on Vanguard Health Care | 11/20/2008 |
Q: I am 70 1/2 y/o female with an income of about 15K from work and about 12K from soc sec. I ... A: The fund has paid the gain, so no, there is nothing you can really do. But long term gains are ...
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| Roth Early withdrawl for Home Purchase | 11/15/2008 |
Q: My fiancee and I are about to make a first time home purchase. To speed up the closing, my ... A: It is much cleaner to come to the closing table with the IRA money or a strong agreement with ...
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| Roth Early withdrawl for Home Purchase | 11/15/2008 |
Q: My fiancee and I are about to make a first time home purchase. To speed up the closing, my ... A: As long as you spend (out of your pocket) the 10K, then you can pull it out of your ROTH and pay ...
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| Capital Gains on House Sale | 11/13/2008 |
Q: Five years ago, some friends of mine took in their elderly mother to live with them full time. They ... A: The answer is not going to make me popular, but they have until the end of this month to sell to ...
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| Dependent Getting Married | 11/9/2008 |
Q: Today I recieved a letter from the IRS stating that my daughter who got married on October 23, 2007 ... A: If your daughter and her husband had enough income to have taxable income, you should not have ...
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| sign on money from gas lease company | 11/8/2008 |
Q: Several guys bought land and formed a non profit club. After 30 years signed a lease with gas and ... A: It is not just taking the money out. The club would have to report the release of the money to the ...
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| real estate | 11/8/2008 |
Q: i just sold a property for 215,000 dollars and i was wondering how much do i have to pay in taxes ... A: It depends on your basis (what you paid for the property). If you owned it longer than a year, the ...
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| short sale and 1099 | 11/7/2008 |
Q: I have just sold my secondary home with a short sale. My question is in regard to the 1099 and how ... A: Dana, check out form 982 at www.irs.gov. Tax Attributes are things you get tax reductions for, such ...
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| CGT on Investment Property with no US income | 11/6/2008 |
Q: My partner and I bought a house about a year ago and now are being relocated oversees. We have been ... A: You can elect to capitalize the interest and taxes to add to the basis. HOWEVER, you then cannot ...
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| Claiming a rental property | 11/6/2008 |
Q: I own a house which my father lives in (I don't live in the house). I am able to claim him as a ... A: No. In order to claim it as a rental property you must charge him fair market value rent. You get ...
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| 401K WITHDRAWAL EXCEPTIONS | 11/5/2008 |
Q: I WOULD REALLY APPRECIATE SOME ADVISE ON THIS MATTER. ANY HELP WOULD BE GREAT. I AM 38YEARS AND I ... A: Just don't do it. You will pay income tax and a 10% penalty, so that will about blow the money from ...
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| divorce & claiming children as dependents | 11/5/2008 |
Q: I have a question about who gets to claim my three children on 2008's tax return. I have been ... A: Jennifer, you basically gave the kids away to him. Granted that you can take it back, but it will ...
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| $7,500 First-time Home Buyer Tax Credit | 11/5/2008 |
Q: I have cosigned for a mortgage for my daughter. I have owned homes. She has never owned a home. ... A: Just by co-signing the mortgage does not put you on the deed. At least it should not. And as ...
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| copy of tax return | 11/4/2008 |
Q: ......I've misplaced my 2007 tax return and need to access the information on my 1040. Can you make ... A: If you prepared it yourself, then the only place to get a copy is from the IRS. If you had someone ...
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| Gifts & taxes / exclusion | 10/31/2008 |
Q: My step mother wants to give me an amount of money, currently in investments, that my father left to ... A: Yes, the gifts will reduce her death amount also. So if she gifts you the entire $250,000 this ...
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| Exemption for Child/Day Care Expenses | 10/31/2008 |
Q: My wife and I currently going through a separation, which will eventually lead to divorce. We are ... A: The parent that has physical custody of the child and has the child in daycare so THAT parent can ...
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| After School Care | 10/31/2008 |
Q: Is After school care tax deductible? Thank you for your time. A: Yes, if the reasons are for the parent or parents are working (if a 2 parent household - both must ...
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| 2005 Tax Return | 10/29/2008 |
Q: My problem is this...At the end of 2005 I was separated from my ex-spouse and he filed a joint ... A: If your husband signed your return without your knowledge then you are not liable for it. You ...
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| mortgage interest deduction--income limitation? | 10/29/2008 |
Q: My spouse and I have a $1.2 million mortgage on our home which we bought in June (purchase price ... A: You are probably being phased out due to income limitations, not mortgage interest limits. IRS ...
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| Marriage and tax filing | 10/26/2008 |
Q: My fiance and I are jrs in college and want to get married without our parents knowing. How does ... A: No, there are no issues there and if you don't work, then they can claim you. If you want a Mom to ...
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| My 22 yr old student son | 10/24/2008 |
Q: I am the sole support for my son who is and has been a full time student. He has no job, I pay his ... A: He is still your dependent. You will be able to claim him and use either the tuition and fees ...
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| Taxes on Social Security Disability Income | 10/23/2008 |
Q: I have recently started receiving benefits from Social Security for my medical disability. Since my ... A: I can't pinpoint an answer as the real answer needs all the info from your tax return, but I can ...
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| Is my deductions decent? | 10/22/2008 |
Q: I am a young 31year old married that just recently got promoted to a senior programmer position with ... A: I don't do those types of calculations because I don't know your entire tax situation, but I can ...
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| Moving expenses - replacement for broken items | 10/22/2008 |
Q: I was wondering whether one can deduct the replacement cost (or fair market value) of items that ... A: You can use the casualty and theft loss form, 4684, and Schedule A to see if you have a deduction. ...
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| transferring CD's | 10/22/2008 |
Q: My Mom became ill & had over $100,000 in CD's. I am her POA & in trying to protect her money I ... A: One can gift up to 12K a year and not file a gift tax return. You, as Mom's POA, gifted $100K so a ...
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| transferring CD's | 10/22/2008 |
Q: My Mom became ill & had over $100,000 in CD's. I am her POA & in trying to protect her money I ... A: Hopefully your POA has the ability to make gifts as that is what you have done. Mom MUST file a ...
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| owe past IRS taxes, now divorcing | 10/22/2008 |
Q: How should a soon to be divorced person handle the W-4 exemption question? Her and her husband are ... A: If the return was a joint return and taxes are due when the next year's return is filed, the IRS ...
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| one-time capital gains house sale exemption | 10/16/2008 |
Q: My parents sold their first house in 1992. They bought it for $40K and solid it for $220K in 1992, ... A: Mom is in good shape. Her basis is 85K and half of Dad's is 350K. So that gives her $435K. New ...
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| one-time capital gains house sale exemption | 10/16/2008 |
Q: My parents sold their first house in 1992. They bought it for $40K and solid it for $220K in 1992, ... A: Since there is no longer a one time exclusion, that is not a problem. HOWEVER, there is a problem ...
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| Sale of Realestate Property | 10/13/2008 |
Q: My mother has died and left her house to me and four other siblings. I don't think that it is ... A: Since you owned the home before her death, your basis is her basis. So if she paid $30,000 (plus ...
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| capitol gains | 10/10/2008 |
Q: Is it true that a married couple gets two one time capitol gains exemption, one for each person. ... A: There is no such thing as a one time capital gain exemption. However, you can exclude up to $250K ...
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| Vacation/Business trip | 10/9/2008 |
Q: my name is Jim and I am going to visit my son in Nicaragua. Ill be staying Dec24, 08 through jan ... A: Sorry, Jim, but I don't see a business purpose at all for your trip. Educator trips have not been ...
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| Deductions for substitute teachers. | 10/7/2008 |
Q: My wife is a substitute teacher who was requested to fill in for a teacher on maternity leave for ... A: If and only if the school gives your wife a letter that a laptop is required as a condition of her ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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 ...
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| 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 > ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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% ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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). ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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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: 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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% ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| "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. ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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) ...
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| ~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 ...
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| 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 ...
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| 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 gift tax return, then it is your ...
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| New Home Owner | 12/16/2007 |
Q: Helen. I have always prepared our tax returns using 1040 form. This June, we bought our first ... A: Rhonda, in my opinion and as a paid tax professional, maybe I should not say it, but everyone, if ...
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| Personal income tax allowances | 12/15/2007 |
Q: I am an unmarried head of household with two infants. I do not pay for child care, and I work at ... A: The IRS has a calculator on their site that can help you. Go to www.irs.gov; and do a search for ...
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| My Employer Pay Taxes Or Not? | 12/14/2007 |
Q: I'm not sure it my employer pay the taxes on payroll deductions or not this year. I have only one ... A: If you have paystubs that show withholding or a W-2 that shows it, you don't have to worry if your ...
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| Capital gains tax with multiple buyers | 12/12/2007 |
Q: My wife and I currently own a home in Virginia and we are looking into purchasing a second home next ... A: No. To take the exclusion you must live in and own the home. So the only one that can take any ...
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| Tax return | 12/12/2007 |
Q: My husband's ex-wife's accountant told him he could claim two of their children as dependents on our ... A: If the divorce decree does not say which parent can claim the kids, then by default the custodial ...
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| Volunteer Fire Department Reimbursement | 12/12/2007 |
Q: Helen, every year our township gives each volunteer a reimbursement for travel expenses. They have a ... A: It is okay if they 1099 you, it will work out the same way. The way you should have been doing it ...
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| How to file state tax | 12/12/2007 |
Q: I am a medical student, who is also in the air force. I receive a stipend fro the AF. I have lived ... A: Since you lived in PA, you will owe taxes to PA. You can take a credit for taxes paid to another ...
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| tax | 12/10/2007 |
Q: My child is 26 years old and he is in college. I can not claim my child as dependent. He has yearly ... A: Age only matters if he had income of the standard deduction or more. For 2007, that number is ...
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| tax | 12/10/2007 |
Q: My child is 26 years old and he is in college. I can not claim my child as dependent. He has yearly ... A: If he has no income or less income then the standard deduction, you can still claim him as your ...
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| Filing separately | 12/7/2007 |
Q: My husband is on SSI-so he really doesn't have to file as his income is too low, but I'm thinking of ... A: If you live together for one day of the year and you file separately, AUTOMATICALLY 85% of his SSI ...
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| 401k and disability | 12/6/2007 |
Q: My wife is 55 years old and is disabled. She collects social security benefits and disability ... A: Yes, you can. Just know that depending on your income, withdrawals from her retirement plans could ...
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| My dependent | 12/6/2007 |
Q: the mother and I are not married but we are together and live in separate houses and the baby lives ... A: The custodial parent (in this case the baby's mom) is the parent that claims the child. If your ...
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| W-2 employee | 12/5/2007 |
Q: if you are said to be a W-2 employee how much tax will be deducted from the salary? and what are ... A: Federal, medicare, social security, state and local taxes should be withheld. If your insurance is ...
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| Section 72(t) rules for a SEP IRA | 12/5/2007 |
Q: I funded a SEP IRA from 1990 to 1997 when I was an independent consultant. I am curious if Section ... A: Yes, but the kick is - you must do it for 5 years or until you hit age 59.5, whichever is longer. ...
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| Estimated Tax Question | 12/5/2007 |
Q: Our adjusted gross income in 2006 was around $35,000, and this year would have been the same, except ... A: If you have paid in (in 2007) as much as your tax liability for 2006 (total tax line on your return) ...
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| Corporate Apartment and Per Diem | 12/4/2007 |
Q: My company sent me on an assignment 580 mi. from home 11 months ago. The arrangement was the company ... A: They are correct, since your job is lasting over a year, the room and board are now part of your ...
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| income less than $32,000.00 | 12/4/2007 |
Q: My wife and I are retired, my annual pension is $4280.00 my wife receives no pension.we get a ... A: John, I just wanted to make sure you were taking out, I see more and more folks forgetting to take ...
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| hows get it? | 12/4/2007 |
Q: last year I claim my children in my taxes, but this year my ex father dad wants to claim and he ... A: He can only file the kids if you allow him to do so. What you need to do is file as soon as filing ...
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| IRA and Roth IRA conversion | 12/3/2007 |
Q: I was laid off in 2006 and took my 401K and rolled it into a IRA at my investment firm. My account ... A: If this was all tax deferred money from your 401K, and you had no non-deductible IRAs, the entire ...
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| income less than $32,000.00 | 12/3/2007 |
Q: My wife and I are retired, my annual pension is $4280.00 my wife receives no pension.we get a ... A: John, yes, you can. To decide if any of your SS benefits are taxable, take your pension and one ...
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| IRA transfer at time of divorce | 12/3/2007 |
Q: I'm trying to transfer post tax and pre tax dollars as part of a divorce from a Wachovia account, to ... A: He can't separate them. The only way to get the entire 30K out as the post tax money is to take out ...
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| IRA transfer at time of divorce | 12/3/2007 |
Q: I'm trying to transfer post tax and pre tax dollars as part of a divorce from a Wachovia account, to ... A: No. Since you have before and after tax dollars in the account, you must take out or transfer the ...
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| Executor fee taxes | 12/3/2007 |
Q: i saw a response on a question on executor fees. Executor fee I understand would be taxed as income, ... A: The fee comes out of the estate and is reported on a 1099. The amount (for tax time) goes on line ...
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| alimony taxation | 12/2/2007 |
Q: In my divorce, my lawyer negotiated with the ex's lawyer and they wrote up in our divorce agreement ... A: If the decree states that the alimony is not taxable to you and not deductible by him, then the CPA ...
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| perdium | 12/1/2007 |
Q: the company i work for adds up your trip miles get your total gross subtracts your weeks perdium ... A: Let's use numbers. Your pay is $100, your perdiem is $25. So your total check is $125, then they ...
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| capital gains | 11/30/2007 |
Q: After my father passed away three years ago, my mother had a second home that they owned put in mine ... A: You and your brother own the home and you and your brother will pay the taxes. Your basis is Mom's ...
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| Capital gains vs. Normal Income | 11/29/2007 |
Q: Starting this year on a part-time basis, my wife began purchasing foreclosures, rehabing them, then ... A: It appears that this is a business, not a casual buying and selling, so your wife would use Sch C ...
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| Claiming a dependent with a dependent. | 11/28/2007 |
Q: My stepdaughter is 17 and had a baby on Oct. 2nd of this year. Her mother has full custody of her, ... A: The custodial parent has the right to claim the child so that looks like her mom. The custodial ...
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| selling 2 homes and purchased 1 home | 11/27/2007 |
Q: In 2004 we purchased a home for $295,000 with the intention of selling 2 smaller homes and putting ... A: If each of you meet the time and ownership tests, you can exclude up to $250K of the gain on each ...
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| Tax Consequences of Marriage | 11/27/2007 |
Q: I am going to be getting married in October 2008. I was looking at my W-4 on file with my employer, ... A: At 200K, you could see a tax increase for sure. At that point, you are probably topped out for a ...
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| Tax Consequences of Marriage | 11/27/2007 |
Q: I am going to be getting married in October 2008. I was looking at my W-4 on file with my employer, ... A: Even if you would get married on 12/31 a minute before midnight, you will be considered married for ...
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| can married file head of household? | 11/27/2007 |
Q: I am married, but my husband was out of the house for more than 6 months of this year and will be ... A: As long as you are not in a community property state, you can file as head of household. If you are ...
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| Cashing out my 401K | 11/27/2007 |
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ... A: You should get a check for $40K as 20% is mandatory for tax withholding. The 10% penalty as well ...
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| exemptions | 11/27/2007 |
Q: In May of 2007, my 28 year old son suffered server brain trauma (with god's grace he has since ... A: I'm glad he has recovered! There really is nothing as a partial dependent, it is all or nothing. ...
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| Marry by 12/31/07 or after 1/1/08? | 11/27/2007 |
Q: My fiance' and I want to get married. I'm a civil servant working in D.C. and she is a teacher and ... A: If your ex wife bought you out, the sale is incident to divorce and you do not have any gains to ...
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| running more than one type of business with one tax id | 11/27/2007 |
Q: I have a small child care business that has only become profitable in the last quarter of the year. ... A: I understand the running on tired thing, and I plan on using it! :) You cannot do what you want. ...
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| Witholding allowances | 11/26/2007 |
Q: I keep reading about adjusting the witholding allowances so that you don't withold too much during ... A: You should try at least S-1 and that will get you a lot closer. If you want to see the difference ...
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| Marry by 12/31/07 or after 1/1/08? | 11/26/2007 |
Q: My fiance' and I want to get married. I'm a civil servant working in D.C. and she is a teacher and ... A: Bill, I don't see a lot of things you can do differently. Regarding the sale of the home - was this ...
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| tax write-offs | 11/26/2007 |
Q: I work for a retail store in which we wear their product in order to promote sales. It is not ... A: Sorry, but no. These are ordinary street clothes and not deductible. Had you been working at ...
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| tax credit question | 11/25/2007 |
Q: i'm a 27 year old single mother of an 8 month old baby. i'm also a recent grad. i have not worked ... A: If your income is going to be under $3,350 at the end of the year, it will probably be better for ...
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| claiming son | 11/25/2007 |
Q: My son was a senior in 07--started a job in sept.--turned 19 in june.--he will probably make 2500 ... A: As long as he was a student for 5 months in 2007, you can still claim him. For 2008, you will not ...
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| Filing exempt | 11/24/2007 |
Q: I am a full time student and work part time. Can I file exempt? If so is there a "good" time to do ... A: If you did not have a tax liability the previous year and do not expect to have a tax liability in ...
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| lump sum taxes | 11/21/2007 |
Q: I recently recieved a lump sum payout by my dissability company. The law firm took out just about ... A: The overpayment may reduce your taxable income, it depends on the amount of it and how you file to ...
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| In home child care | 11/21/2007 |
Q: 2007 has been my first year to be a full-time non-licensed in home child care provider. The end of ... A: Tammy, anything that is ordinary and necessary for your business is an eligible write off. I ...
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| Filing status | 11/20/2007 |
Q: I file my taxes as single and lately I have a lot of taxes to pay and I do not make much money. I ... A: If you are married by 12/31, your filing status is Married Filing Jointly. If your state allows ...
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| HEAD OF HOUSEHOLD | 11/20/2007 |
Q: MY HUSBAND AND I HAVE BEEN SEPARATED FOR 7 MOS DUE TO HIM BEING INCARCERATED. I HAVE POWER OF ... A: If you have a dependent child living with you, you may be able to file head of household. If not, ...
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| Taxes | 11/20/2007 |
Q: I was recently married (October 07). I make significantly more money than my husband and have ... A: You cannot file as single. You are married and in Texas, you live in a community property state so ...
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| Tax implications of taking a roommate in a co-op apartment I own | 11/19/2007 |
Q: My girlfriend is moving into my co-op apartment in Westchester County, NY. I am not renting to her ... A: Itis just not what you want to do. First is intent. You are not intending to have a renter, you ...
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| Condo in Pasadena | 11/19/2007 |
Q: I have owned a very nice condo (good location in historic building) since May 2004. I initially ... A: I'm assuming you are discussing the mortgage interest credit and that credit is given to the person ...
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| Summer Internship Rent Deduction? | 11/19/2007 |
Q: Hey, I worked a summer internship in Manhattan this summer. Since I had a primary home (my ... A: You have no deductions for rent, travel or anything else. And you will file to all states, PA, IL ...
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| Qualifying Child rule: temporary absences | 11/17/2007 |
Q: Next fall, my daughter would like to get an apartment while she continues as a full time student ... A: As a Mom that was in the same exact situation, her apartment is temporary and she is still ...
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| employee expenses on W-2 wages | 11/15/2007 |
Q: My daughter is a W-2 full-time employee at a major corporation. Howerever she was told that she is ... A: Medical expenses, such as insurance, are subject to a floor of 7.5%, employee expenses have a 2% of ...
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| employee expenses on W-2 wages | 11/15/2007 |
Q: My daughter is a W-2 full-time employee at a major corporation. Howerever she was told that she is ... A: As long as she is getting a W-2, none of the expenses you list are deductible to her, unless ...
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| Married Seprate | 11/11/2007 |
Q: Over the past 8 years my boyfriend has claimed exempt and not filed taxes. I however file my returns ... A: You are not responsible for the taxes he has not paid before you filed a joint return. But the IRS ...
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| Per Diem | 11/10/2007 |
Q: My husband and I currently reside and own a home in South Carolina. He just took a job with a ... A: The second they tell him it is to go for a year, whether it does or not, it is not a temporary ...
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| Tax on Savings Bonds | 11/7/2007 |
Q: Helen: I am the executor for my Mom's estate. When I filed her final 1040, I elected to pay the ... A: They can just attach a statement saying $xx of interest on bond 123456 was paid by SSN 123-45-6789. ...
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| head of household | 11/7/2007 |
Q: I am divorced--have been for ten yrs.--have raised my son in my home for ten yrs.--he turned 19 in ... A: Since he is now 19 and no longer in school, if he makes $3,300 or more, you cannot claim him NOR can ...
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| individual soc sec tax payments | 11/6/2007 |
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ... A: Your husband must file an SS-8 for a determination from the IRS. Then for years prior to 2007, he ...
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| mortgage interest | 10/29/2007 |
Q: we built a second house on my parents property (in California)and because the property is in their ... A: There are court cases that say you can claim the interest since you are the ones paying it. I don't ...
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| Early Withdrawal Penalty Exemption | 10/26/2007 |
Q: I am 56 years old. I was laid off by my employer last year when I was 55. I had a 401K at the ... A: No. You have to wait until you are 59.5 to take out of the IRA OR do a 72T disbursement, which is ...
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| taxable moneys' | 10/25/2007 |
Q: I have a question that I'm unsure as to where to find the answer so I hope you are the right person. ... A: Well, if brother in law is NOT on a temporary assignment, he will have no write off on his taxes. I ...
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| primary residence exemption capital gains | 10/24/2007 |
Q: My husband and I are getting ready to sell our primary residence. We fulfill all of the requirements ... A: Linda, you have a couple of issues and you probably will like MOST of the answers. First of all, ...
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| Tax Deduction for Day Care | 10/24/2007 |
Q: My son is going to be 13 this year. He has Fragile X which is a mental development problem. How can ... A: If your son is not able to be alone per a medical condition, you would still be able to claim child ...
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| tax | 10/23/2007 |
Q: H&R Block prepared my taxes last year. How can I find out what my tax bracket was. I'm married and ... A: I'm going to say you are in the 15% bracket for federal and you probably have about 15K to go to hit ...
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| IRA withdrawal | 10/22/2007 |
Q: My husband and I have each put post tax money into IRAs. What do I have to do in order to withdraw ... A: The ONLY way you can file one 8606 form is to take ALL your monies out of ALL your IRAs this year ...
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| IRA withdrawal | 10/22/2007 |
Q: My husband and I have each put post tax money into IRAs. What do I have to do in order to withdraw ... A: Sorry, but you cannot just pull out the taxed portion. You must pull out a ratio of taxed and ...
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| Capital loss on rental property? | 10/22/2007 |
Q: I bought my house in 1999 and lived in it until this year. I am now buying a new house and will be ... A: Probably not. Since it is not a true rental property, but a sale of a personal property, you still ...
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| sale of land previously received as gift | 10/21/2007 |
Q: Eight years ago, a relative gave me a piece of land. However, my husband came back from war disabled ... A: Unless you know what the relative paid for the land, your basis is zero. If the relative is still ...
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| accounting for designers | 10/12/2007 |
Q: I am a recent graduate with my Masters in architecture degree and am beginning employment as an ... A: Anything that is ordinary, necessary and in the case of an employee, required by the employer may be ...
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| taxation on sale of investment property | 10/12/2007 |
Q: I am selling an investment property i have owned for 9 months. What are all the deductions from the ... A: You won't have capital gains tax, you have ordinary income, which means there is no cap on the taxes ...
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| W4 Allowances | 10/9/2007 |
Q: I currently have 9 allowances on my W4 Form and using a Quicken and past tax returns, I determine ... A: While there is no max, if you owe over $1,000, you can face penalties for underwitholding. Please be ...
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| tax penalties | 10/8/2007 |
Q: I was just married in May of this year. I recently found out that my husband claim a dependent on ... A: If you did not file with him, it will not affect you. As for the penalties, it depends what he will ...
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| loss carryover? | 10/8/2007 |
Q: If our income this year is maybe $7000 less than the standard deduction plus our two personal ... A: Well, first of all, we all have the duty to pay our taxes when they are due. So each time one of ...
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| How to report 1099-A from vacation timeshare | 10/7/2007 |
Q: I am filling out my 2004 IRS return after they sent me a summary sheet showing my "income", which ... A: If you were insolvent, you do not have any income on the repo. If you were not insolvent, you do ...
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| tax exemptions & home repairs | 10/6/2007 |
Q: My mom is selling her house. She is going to have a profit of over $250,000. She bought the house ... A: There is no set amount that is allowed, it is basically what she spent. If her husband was an owner ...
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| Tax Deductions | 10/5/2007 |
Q: I had a question about what work related items I can claim as deductions. My taxable income for 2007 ... A: Haircuts were never a deduction, no matter what you do. If you are self employed, any expenses ...
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| Outside Services | 10/5/2007 |
Q: I have a client who has about 205,000 in outside services but he did not acquire w-9's or issue ... A: Well, when audited (and the audits are huge in this area right now) he will be questioned as to why ...
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| when should we get married to avoid tax bill? | 10/4/2007 |
Q: My fiance and I are both Massachusetts residents. His W-2 will be about $105k, mine about $99k. ... A: There is no real answer. The best thing I can tell you is do a pretend return and you can use 2006 ...
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| owe tax money to the IRS when they owe me | 10/4/2007 |
Q: My husband did not file taxes for two years before we were married, we filed last year jointly as a ... A: Your husband needs to file the tax returns he did not file. You may not owe as much as the notices ...
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| taxes to be payed on sale of home | 10/2/2007 |
Q: I am the youngest of 4 kids. I have a disability. I lived with my mother until she died. all kids ... A: For your quarter of the gain, as long as it is less then a profit of $250,000; you will pay nothing. ...
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| 1099 | 10/2/2007 |
Q: My brother and I just purchased a vacation home in PA and we reside in NY (It's actually in ... A: Hopefully if the land was over 12K, you also plan on filing a gift tax return as one will be ...
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| 16 yr. old with job how do I file? | 10/2/2007 |
Q: I'm married and have a 16 yr.old with a part time job. Does he file taxes himself or do I have to ... A: If he has to file, he puts his income on his own return. He does not claim himself, you will still ...
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| 401K taxation on withdrawals | 10/1/2007 |
Q: Could you please tell me the best way to use some of the 401K money to pay down my home mortgage? ... A: There really is no best way. Any money taken out of your 401K (unless you have previously taxed ...
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| Home Sale Tax Exclusion for Widow | 9/29/2007 |
Q: I plan to sell my home after having been widowed two-and-a-half years ago. We bought the property ... A: Penny, I'm going to start you off, but I want you to talk to a local tax professional also, as ...
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| Foreign income tax | 9/28/2007 |
Q: I have searched all over the internet trying to find an answer to a very important question ... A: It does not matter if you did not bring the money in the US, or if you burned it or whatever, you ...
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| Foreign income tax | 9/28/2007 |
Q: I have searched all over the internet trying to find an answer to a very important question ... A: I'm going to assume you are a US citizen. If you are not, I really can't help and I would suggest ...
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| Capital gains taxes | 9/28/2007 |
Q: I recently sold our Florida condo that we owned for 28 years.The price was approximately $60,000 ... A: So, she is still putting up with you after all these years! :) All the improvements and ...
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| exempt | 9/27/2007 |
Q: What are the requirements on filing exempt on your taxes. A girl I work with does this for six ... A: You can file exempt ONLY if you did not have a tax liability for the previous year and do not expect ...
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| Taxes on per diem, tax home | 9/26/2007 |
Q: Government emplyee on TDY for almost a year. I've been requested to remain another year. I don't ... A: You have to look at intent. If you intend to go back to your site at any time within at least (to ...
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| Taxes on per diem, tax home | 9/26/2007 |
Q: Government emplyee on TDY for almost a year. I've been requested to remain another year. I don't ... A: The minute you say Yes, I'll stay is the minute you have changed your tax home and your per diem ...
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| Unallocated Alimony/child support Payments | 9/25/2007 |
Q: I'm confuse. I been divorced for 2 years my residence is on the State of Connecticut, pather of ... A: Marcos, it is good that you support your children. However, your H&R Block preparer was correct. ...
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| Tax Deduction | 9/24/2007 |
Q: My spouse salary is 130K. I am not working. We dont have any kids. How much deduction max. can he ... A: The W-4 has a worksheet on it. If you follow the lines, it will tell you the maximum hubby can ...
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| Tax Deduction | 9/24/2007 |
Q: My spouse salary is 130K. I am not working. We dont have any kids. How much deduction max. can he ... A: If you follow the worksheet on the W-4, you should get a pretty good idea of the number of ...
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| Should I file Tax exempt | 9/23/2007 |
Q: I graduated college in May and have since been working at an internship for the Montgomery County MD ... A: Alicia, if you did not file your federal W-4 at single and one, you want to do one now. See ...
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| Should I file Tax exempt | 9/23/2007 |
Q: I graduated college in May and have since been working at an internship for the Montgomery County MD ... A: Alicia, will your parents be claiming you on their 2007 tax return? They are able to do so. If ...
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| Residence of California, Working in Michigan | 9/21/2007 |
Q: Here are my questions: Questions 1: I have California residency (house and CA drivers license, etc.) ... A: If you have been in MI over a year, MI is your tax home. Thus, none of your deductions for flying ...
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| Non deductible IRA withdrawal | 9/20/2007 |
Q: This year, 4.5 months ago, I withdrew only the capital amount I had in the Traditional IRA ... A: Sorry but no. It has been over the 60 days that the amount could have been rolled back in. When ...
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| Amanded Tax Return Question! | 9/20/2007 |
Q: My name is Arshak. And I would appreciate if you could help me with my question. I recently filed ... A: If the state you lived in is a common law state, you are now married. If you do not, you need to ...
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| CD TAXES | 9/17/2007 |
Q: I AM CONTEMPLATING OPENING A CD WITH A GOOD INTEREST RATE.MY QUESTION IS HOW WILL THE INTEREST ... A: Interest income is taxed as ordinary income, so whatever your tax bracket is is the percentage of ...
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| Tax Lien reported on Credit Report | 9/4/2007 |
Q: I have 2 tax liens on my credit report, they are both released. But here is the story, the tax ... A: If the liens are released, just add a statement to your credit report that the liens have been ...
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| Investment Property Sale | 9/4/2007 |
Q: We purchased an investment property in 2001 for $74,000. We did a cash-out refinance on it in 2006 ... A: Depreciation is recaptured at a top tax rate of 25%. Improvements should be on your depreciation ...
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| write offs | 9/4/2007 |
Q: I was curious if receipts are required for write offs? I currently have not been saving my receipts ... A: Credit card bills, etc normally only say you spent $xx at XYZ. It does not tell you what was ...
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| Investment Property Sale | 9/3/2007 |
Q: We purchased an investment property in 2001 for $74,000. We did a cash-out refinance on it in 2006 ... A: You don't mention if this is a rental or not. If not, the answer is easier. If it is, you need to ...
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| Child Claim | 9/2/2007 |
Q: My boyfriend and I are expecting a child. My first, and his second. My baby is due in October. He ... A: The child you are having together - you are correct that he cannot claim him/her since your parents ...
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| taxes: deduction possibility for educational expenses of children | 9/1/2007 |
Q: my daughter is taking dual enrollment classes for college credit while still in high school- can i ... A: Sorry, Dad, but the answer is no to both. First of all, books are not deductible, only tuition, so ...
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| Timing of Sale of Investment Property | 8/30/2007 |
Q: We recently finished our vacation home, with the intention to rent out to vacationers. This house is ... A: If you have owned the home for a year or less, the gains on the sale are treated as ordinary income. ...
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| tax on jewlery | 8/30/2007 |
Q: My friend has been notified that she won 10,000 worth of jewelry from a reputable TV station. She ... A: All she needs to do is prove is how much the jewelry is really worth, either thru appraisal or ...
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| Capital gains tax on land sale | 8/28/2007 |
Q: We are planning to sell some of our agricultural property adjacent to our primary residence to one ... A: You need to find out what your cost basis is. Try county records, real estate agents that ...
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| Stock write-offs | 8/28/2007 |
Q: I was one of many who lost some money on the tech stocks. I guess I have a limit of $3K/year that I ... A: Bob, you are limited to 3K in losses over gains yearly. Short term gains and losses are netted, ...
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| Taxation of gambling winnings | 8/25/2007 |
Q: The wife of my disabled best friend is struggling with the burden of a tax bill connected to his ... A: Has he filed a tax return? If not, that should clear everything up (or most of it). If he has ...
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| Can my fiance claim my son on his taxes? | 8/24/2007 |
Q: My fiance and I bought a condo together in May 2007. We both work full time, but he makes quite a ... A: Since you are the natural mother, you are the one to claim your son. And you will file as head of ...
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| Primary Residence | 8/24/2007 |
Q: I am changing jobs to a location that is close to a property that I wish to be my primary residence. ... A: Primary residence is one where your mail goes, where your car is registered at, where you vote from, ...
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| Prize winning for self employment taxes? | 8/23/2007 |
Q: I won a free trip for 4 from American Express during a "rewards points" promotion in 2005. According ... A: No, you should not be paying SE tax, but AMEX may have issued an incorrect 1099. Try calling the ...
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| when/ Min Dist | 8/23/2007 |
Q: I see a difference with my plan person. 70 years old on 8-14-07. I see being 70-1/2 in year 08 and ... A: You must take distributions in the year you turn 70.5 or the following year. If you do not take it ...
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| Can't believe I just noticed | 8/22/2007 |
Q: I have been working for a corporate restaruant as a server for a little over a year now a majority ... A: SS and medicare is not optional, you pay it on every penny you make as long as you work. If your ...
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| Can't believe I just noticed | 8/22/2007 |
Q: I have been working for a corporate restaruant as a server for a little over a year now a majority ... A: I think what you are talking about is allocated tips. It is impossible for me to see exactly what ...
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| Claiming a Newborn baby | 8/22/2007 |
Q: We recently had a son born August 16, 2007. We both work but my income is higher. Will we be able to ... A: Congrats on the baby. As long as your child was born before midnight on 12/31 of the tax year, that ...
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| Sale of real estate tax | 8/21/2007 |
Q: My grandfather deeded me property in the U.S. Virgin Islands. This was done via a deed of gift. He ... A: Your basis is what your grandfather paid for the property and if you do not have that information, ...
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| Taxation on Short Sale of a CA Home | 8/20/2007 |
Q: My family's CA home is currently being foreclosed on. We have the opportunity to conduct a "short ... A: If you are insolvent (and that has nothing to do with your income - it means you are totally upside ...
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| Musical Instrument | 8/20/2007 |
Q: I am self-employed and if I donate 6k worth of musical instruments to our church youth band. Can I ... A: Yes, on Sch A as an itemized deduction and then to the extent of the price you pay for them, no ...
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| Musical Instrument | 8/20/2007 |
Q: I am self-employed and if I donate 6k worth of musical instruments to our church youth band. Can I ... A: I'm going to assume you wrote the instruments off of your tax return, so your basis is probably -0-. ...
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| Sale of house capital gain | 8/19/2007 |
Q: What is the IRS definition of unexpected event? I dated a lady for 2 years 2000-2002. We broke up ... A: The wedding was unexpected in 2004, not in 2007. And since the daughter remained there, that pretty ...
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| Annuities & 1040EST | 8/19/2007 |
Q: I recently completed some medicaid planning. In this process I had to surrender a simple annuity ... A: Your surrender charges should be taken care of with the tax reporting of your annuity and should not ...
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| Pre 1987 after tax contributions | 8/18/2007 |
Q: I am in the process of rolling over a Savings Plan from an former employer. The account was started ... A: The tax free portion, and only the tax free portion (not any appreciation) is allowed to be taken ...
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| Tax on Land Sale | 8/18/2007 |
Q: My husband and his first wife were given a piece of land in 1995. My husband's first wife died in ... A: VA is not a community property state. Your husband's basis calculated as follows - what the land ...
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| exempt on my taxes | 8/15/2007 |
Q: I am confused about how I have been filing my tax status. My mother claims me, and since I had my ... A: If you filed exempt, you should not have had federal withholding so you would not have had to file a ...
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| exempt on my taxes | 8/15/2007 |
Q: I am confused about how I have been filing my tax status. My mother claims me, and since I had my ... A: Okay, that helps. First of all, you are correct, Mom is not a tax person. Your friends are doing ...
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| 401K tax and penalty | 8/15/2007 |
Q: I understand that at 591/2 one can cash out a 401K. Since the market is so unstable I am ... A: Actually, if you are 55 and separated from service, you can draw your 401K without penalty. ...
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| Malpractice Insurance | 8/15/2007 |
Q: Is there any other way to deduct, besides on Form 2106, a physician's malpractice insurance premium ... A: Since the insurance had nothing to do with the Sch C income, the person that prepared those returns ...
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| Sale of land gifted from grandfather | 8/14/2007 |
Q: Several years ago my grandfather gifted me land over a period of time. The end result is that I ... A: You need to know what granddad paid for the property plus improvements. That is your basis. And if ...
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| Dependent care spending account | 8/2/2007 |
Q: My question relates to flexible spending accounts for dependent care. I had saved some money in my ... A: FSAs have a use it or lose it problem and it seems you are right in the middle of it. The ...
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| claiming mortgage interest | 7/31/2007 |
Q: I am refinancing my mortgage to build an addition for my daughter and husband they will be paying ... A: No. If they are not liable for the mortgage, they cannot claim it. If you are not paying it (or ...
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| Inheritance money | 7/31/2007 |
Q: I was wondering if money from an inheritance is considered income and does it have to be reported as ... A: Retirement funds are almost always income to the heirs, savings bonds also. Savings accounts, stock, ...
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| Mileage reimbursement at work | 7/20/2007 |
Q: I'm not sure if you are the proper person to ask this question to, but I am having a heck of time ... A: First of all, please know that as long as the mileage reimbursement does not exceed federal amounts ...
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| inherited house | 7/19/2007 |
Q: Do to an inheritance I now jointly own a Santa Barbara, California house with my two brothers, one ... A: I can't tell you if it is better to sell it or rent it. Those are personal decisions. Your basis is ...
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| Tax Basis, inherited real estate | 7/19/2007 |
Q: My brother and I inherited real estate in Texas, consisting of acreage and a house. The county ... A: Tax basis means nothing. The value of the home to you is the appraised value on the day the person ...
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| Sale of Condo | 7/15/2007 |
Q: I bought a condo in March 2006 and sold in November 2006 at a 20,000 loss. I held the property as an ... A: Selling expenses yes. Loan fees, no. Maint. fees as 2% of your AGI. Interest and taxes, only if ...
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| waiving 10% Fed. Tax Penalty | 7/14/2007 |
Q: My question is rather complicated; I'll try to present it as accurately as possible. I am a 46-yr ... A: Lacy, if you can get a doctor to state you are disabled (for a period of at least a year), I would ...
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| Netting real estate gains against stock losses | 7/14/2007 |
Q: I have a large real estate gain on a house that I owned and lived in for many years. I also have ... A: You may have some recapture of depreciation, I can't pull the date out of the air, but it is May 7, ...
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| Tax year for "qualified education expenses" | 7/13/2007 |
Q: My son's college entered his Spring 2007 charges into his account 11/16/2006. We withdrew funds ... A: They are deductible in the year paid, so 2007. As for the additional IRA withdrawal, it looks like ...
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| Which state do I pay state taxes to on the sale of investment property | 7/11/2007 |
Q: My husband and I recently sold an investment property located in the state of VA. I know we must ... A: Both states will tax the sale. You will be able to take a credit on your NC return for the VA taxes ...
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| separated not divorced | 7/11/2007 |
Q: I am separated from my wife but not divorced. We have a child together. I am paying child support. ... A: Your filing status is married filing separately with no dependents. If you cannot obtain your ...
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| Capital Gains | 7/11/2007 |
Q: I bought a condo in May of 2006 based on my own income. At that time, my partner was unemployed so ... A: You may have a problem in that you were the only one working when you bought it. If you both were ...
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| short sale/1099 | 7/9/2007 |
Q: We have 2 investment properties which we are unable to afford any longer. They will be going into ... A: The taxes are not dischargable in BK for 2 years AFTER the return is filed. So sorry, but no such ...
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| Capital Gains taxes | 7/9/2007 |
Q: We own a house in Virginia and have lived there for 1 year. We just bought the house next door to ... A: Let's start at the end and work up. If you sell before a year and a day, your gain is ordinary and ...
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| Esimated Tax Payments | 7/8/2007 |
Q: Helen Before I retired, my income consisted of a monthly salary, from which Federal and State ... A: Without seeing your tax returns from before and now David,I really cannot answer that unless you had ...
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| Sep IRA | 7/7/2007 |
Q: I am a part time college student and wish to withdraw funds from my Sep IRA for expenses including: ... A: You don't, at least not for 99% of the items you mentioned. Except for tuition, all other ...
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| Esimated Tax Payments | 7/7/2007 |
Q: Helen Before I retired, my income consisted of a monthly salary, from which Federal and State ... A: Taxes are to be paid ratably over the year as the income is earned. You can either increase your ...
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| Owe back taxes, 1099-M | 7/6/2007 |
Q: I was an EMPLOYEE and misclassified as an Independent contractor, the Department of Labor classified ... A: Here is a list of EAs (Tax Professionals) in your city. I don't know any of them so I can't ...
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| Owe back taxes, 1099-M | 7/6/2007 |
Q: I was an EMPLOYEE and misclassified as an Independent contractor, the Department of Labor classified ... A: You are not going to jail, but you have to stop running and do what you need to do and that is file ...
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| IRA Contributions and Taxable Income | 7/6/2007 |
Q: I am a college student working a summer internship. I have two questions. First, IRA contributions ... A: Much better. Correct, you would only be taxed on $3K and there would be no tax due, federally. ...
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| IRA Contributions and Taxable Income | 7/6/2007 |
Q: I am a college student working a summer internship. I have two questions. First, IRA contributions ... A: If you are an intern making that kind of money, I'm afraid to ask what your major is! :) If you ...
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| Gifting | 7/5/2007 |
Q: My wife and I want to gift $12,000 to my sister-in-law because she is having financial difficulties. ... A: The IRS may look at this as a sham transaction, since the plans are she repays you. Just be careful ...
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| tax liability for emminent domain payment | 7/4/2007 |
Q: The state of Connecticut has condemned a portion of my property fronting a U.S. highway to permit ... A: Agressive tax preparation would reduce your basis in the property by the money received. Please ...
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| TAX | 7/3/2007 |
Q: If someone makes about 200,000.00 in one year in day trading and makes about 40,000.00 that year in ... A: Day trading gains are short term so, the net profit would be subject to whatever tax bracket they ...
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| what i can claim to help increase my refund | 7/3/2007 |
Q: I am 21 years old and I work one job where I make around 23,000 before taxes a year. With each check ... A: The repairs on your auto as well as the gas, the credit card, the meds, etc - none of these are ...
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| what i can claim to help increase my refund | 7/3/2007 |
Q: I am 21 years old and I work one job where I make around 23,000 before taxes a year. With each check ... A: It looks like Mom may be your dependent, which may help your refund. But remember, all the money ...
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| What do I claim? | 7/2/2007 |
Q: While my husband and I were living in an apartment, I claimed 0 and he claimed 1. I make around 40K ... A: We love when you out of staters move in and try to figure out our taxes. :) First of all, I'm ...
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| What do I claim? | 7/2/2007 |
Q: While my husband and I were living in an apartment, I claimed 0 and he claimed 1. I make around 40K ... A: I like that!). You have a lot of misinformation and I have a couple of questions for you so let's ...
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| personal residense | 7/2/2007 |
Q: Greetings Helen: We purchased a home in Phx. in 1997 as we[wife-me] were spending Winters there, ... A: This is the perfect example of how tax planning could have saved you a lot of money. Had you asked ...
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| Capital Gain taxes on residence | 6/30/2007 |
Q: I wish to buy a different home with my equity in my present home and sell the present home later. ... A: If you sell your present home within 3 years after moving out, you can exclude the gain up to ...
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| Dependency | 6/26/2007 |
Q: i would like to know what exactly is a dependant because i think the definition is broad. For ... A: If you are supporting yourself over 50%, you may claim yourself. HOWEVER, depending on your income, ...
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| northwest airlines series C stock | 6/25/2007 |
Q: In the mid 1990's, I received from Northwest Airlines 100 shares of Series C stock in lieu of ... A: Since this was in your 401K, you will not have a gain or a loss, it is all ordinary income. And ...
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| Issue about dependent | 6/23/2007 |
Q: Circumstances: -I have 100% legal and physical custody, as of 2006, of minor child with complete NCP ... A: You can make a million dollars if you want. YOU are the custodial parent and you make the rules. If ...
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| Issue about dependent | 6/23/2007 |
Q: Circumstances: -I have 100% legal and physical custody, as of 2006, of minor child with complete NCP ... A: You are the custodial parent and you have every right to allow your mother to claim your child. Her ...
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| taxes and weddings | 6/23/2007 |
Q: My parents are giving me money to pay for a wedding and are wondering if they can send me a check ... A: Gifts over $12K per person per year require the giver to file a gift tax return. However, if Dad ...
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| Another child credit question | 6/22/2007 |
Q: My husband and his ex have "joint custody" with her house being the primary residence. They have 2 ... A: Her mother may be the one that can claim the kids. HOWEVER, since it looks like Mom is the ...
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| Refiling 2005 taxes | 6/20/2007 |
Q: My husband and I married in April of 2005 however we filed our taxes separately because he needed an ... A: As long as you were married as of one minute before midnight on 12/31/05, you are considered married ...
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| Turning Cap gains to earned income in SMLLC | 6/20/2007 |
Q: I have a single member LLC that is an entity for trading equities. That is my full time job. I ... A: I've given you my answer. Trading is NOT a trade or business and you cannot make earned income ...
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| Per Diem | 6/19/2007 |
Q: My husband was working locally but the company he works for has taken on a projest that has him ... A: Per diem is only for days worked if that is how the employer has set it up. There is no federal law ...
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| capital gains basis | 6/19/2007 |
Q: I need to sell my house. I have not lived in it for more than 2 yrs. because of health problems. I ... A: If you cannot reconstruct the basis in the home, then your basis is what you can prove, which is ...
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| Home sale capital gain exclusion | 6/17/2007 |
Q: I own two homes. One in Michigan and one in Arizona. I use the Michigan home for voting,income ... A: No. While it does meet the usage requirements, it does NOT meet the principal residence test. Your ...
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| taxes on 'custodial account' | 6/13/2007 |
Q: My son, now 7y/o, had a trust set up by his grandparents and receives gift money from them on an ... A: It is probably best if your son become a taxpayer. You pay on every dollar if you put the money on ...
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| Business tax | 6/9/2007 |
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: Cell phones are what is called listed property. This means in order to deduct it, you must keep a ...
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| Business tax | 6/9/2007 |
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: Your deductions are limited to what is necessary and ordinary for your business, AFTER you are ...
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| Qualified educational expenses | 6/8/2007 |
Q: There are different qualified expenses for the different deductions and credits, some of which are ... A: Sorry Dad, but there are no commuting or travel expenses allowed your daughter. Just her tuition is ...
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| Capital Gains | 6/5/2007 |
Q: O'Planick, I am selling a home I have owned approximately 3 years. Purchase price: $380K current ... A: As long as you did not have any business use of your home or rent it out, you will owe no taxes on ...
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| Tax Refund | 6/2/2007 |
Q: I’ll try to be brief and direct. I have a civil penalty (500K) that has been marked as ... A: The IRS can collect taxes for at least ten years after the tax was assessed and if you did something ...
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| Prior Years Taxes | 5/29/2007 |
Q: I would like to know how can I file a full tax return for 2005 and 2006 and also state for 2004. A: It's easy, get the tax forms and just do it. If you do not feel you can do it, see a local tax ...
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| Pastor's Exemption | 5/17/2007 |
Q: We recently hired a new pastor at our church. He has presented me a copy of his Form 4361 which he ... A: Since he does not pay SS, you have nothing to match so the only thing on your 941 will be federal ...
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| Selling Minor's Mutual Funds | 5/16/2007 |
Q: My 17 year old has a money market fund account (it's set up under my name, Cust, her name, UTMA FL) ... A: do everyone a favor and ask him NOT to give tax advice anymore. If this is a true money market ...
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| Investment property depreciation | 5/15/2007 |
Q: If I'm selling an investment property but was not eligible for depreciation deductions because of my ... A: Not quite. First of all, you will use up all your losses on the return no matter what your income, ...
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| employee taxes, 1099? | 5/15/2007 |
Q: I have started a small landscape maintenance business. I will occasionally (perhaps often) need to ... A: These folks are using your tools, working under your name, you are naming the hours, etc, so they ...
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| Tution For School Deductions | 5/14/2007 |
Q: I am attending a local university and have 40K plus in the last two years in student loans. All of ... A: Your parent(s) probably should be claiming you as they are probably supporting you. The student ...
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| Taxes on land | 5/14/2007 |
Q: About 5 years ago I purchased some land to build a home. Since then I have come to the conclusion I ... A: The tax on the gain is 15%, so if your gain is $100,000, you will pay $15,000 taxes on that portion. ...
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| IRS Refusal to lift lien to refi. to pay IRS tax debti | 5/12/2007 |
Q: What has been done to my family and I is wrong, every Attorney, Senator, and Congressman, that knows ... A: Daniel, while I feel for you, you should have contacted professional help FIRST, not after this ...
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| house on 9 acres, selling 7 | 5/4/2007 |
Q: I would like to sell 7 acres of my property and keep the house and 2 acres...Can I take the $250,000 ... A: If you don't feel VERY strongly that you are going to sell the home, DO NOT take an exclusion for ...
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| estate tax/capital gains | 5/2/2007 |
Q: After my father-in-law's death in May 2005, my mother-in-law signed a deed conveying her house to my ... A: Could be quite a bit. Depending on the state the inlaws lived in will give your husband his basis. ...
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| babysitting and taxes | 5/1/2007 |
Q: I am considering baby-sitting full time in my home for three to four children. My question is, how ... A: Nicci, you would be considered self employed and file Sch C, SE and 8829 with your tax return. Your ...
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| Traditional IRA | 4/25/2007 |
Q: My intended 2005 Tradition IRA contribution (made in January 2006) was, I recently found out, ... A: You have a mess. You need to correct your 2005 return to show no contribution and you will pay ...
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| adoption credit | 4/23/2007 |
Q: I'm wondering if we can take an adoption credit on our 2006 tax return. We paid a total of $4600 in ... A: If the baby is not born, there is really no way you can take the credit. You can try to snail ...
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| Rental Property | 4/22/2007 |
Q: Greetings. I have read Publication 527, but I still do not understand the depreciation rules for ... A: If 50% is rented out and 50% is yours, then you depreciate 50% of the entire building (not land ...
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| Costs of Acquiring a Rental Property | 4/17/2007 |
Q: I acquired a rental property in 2006. As a part of due diligence before acquiring a property, I ... A: If that was the ONLY reason to travel to the site and you were not on vacation or visiting ...
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| Sold 2 homes in 24 months | 4/16/2007 |
Q: My wife and me owned a home as our primary residence from 2001 to 2003. My wife lived in the house ... A: The two year rule is just that. You cannot sell a home and exclude less than every two years. The ...
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| Rental Property, Improvements and Capital Gain | 4/15/2007 |
Q: O'Planick, My question is two-fold including a hypothetcial. We have a 3 unit building where we ... A: First of all, you cannot sell and buy, you must exchange within the time frames allowed. The minute ...
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| renting below FMV | 4/14/2007 |
Q: I own a 3 unit home. I live in one unit and rent the other two. For part of last year, I rented a ... A: For the below market unit, your deductions are limited to bring you to zero and not below. However, ...
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| mileage vs. gas receipts | 4/14/2007 |
Q: Can you tell me why I cannot claim both mileage AND gas receipts? I am a self employed contractor, ... A: Because you can't double dip. The standard mileage rate has gas, repairs, depreciation all built ...
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| Rental Property, Improvements and Capital Gain | 4/13/2007 |
Q: O'Planick, My question is two-fold including a hypothetcial. We have a 3 unit building where we ... A: Easy one first. The renovation is depreciated alone as a separate item on your depreciation ...
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| Severance Pay & Maximum Refund | 4/11/2007 |
Q: "Hi. I'm a single, working mother of 2 children. In 2006, a company paid me severance pay and I ... A: Serverence pay is taxable income. We all work hard for our money and you got lucky to get some ...
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| Amended taxes | 4/7/2007 |
Q: I recently have been notified by the IRS that I neglected to claim income on a stock sale from the ... A: Yes, she was wrong and yes, you have the right reason and the right plan forward. You have til next ...
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| Severance Pay & Maximum Refund | 4/3/2007 |
Q: "Hi. I'm a single, working mother of 2 children. In 2006, a company paid me severance pay and I ... A: Severance pay is pay you get for not working. And yes, it is earned income and probably withheld at ...
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| issuance W-2s | 4/2/2007 |
Q: One of my two employers for 2006 sent me W-2s without my Social Security number on them. (There are ... A: You can use form 4835 (I think that is the number, it is for a substitute W-2 form) and send it with ...
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| Claiming a dependent for 6 months | 4/2/2007 |
Q: I recieved custody of my son this year and in the court pettion, it was clearly defined that I would ... A: You cannot claim a half a child, but if your decree says you get to claim the child, you get to ...
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| Married with spouse having income from two states | 4/1/2007 |
Q: My Wife and I got married in June'2006. Before our marriage my wife had been working in California ... A: Your return would be a full year return, hers would be 2 part year returns. Can software handle it? ...
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| Alternative Minimum Taxes and selling home | 3/30/2007 |
Q: I'm confused about the Alternative Minimum Taxes and the regular federal taxes. Do you have to pay ... A: AMT shows up when you have too many deductions, not too much income. Also, you do not pay normal ...
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| federal tax | 3/30/2007 |
Q: My stepson is on disability with a brain injury. He has been this way since 1990. He work in a ... A: The reporting of his income is correct. The tax return is not. Whomever did the return messed it ...
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| taxes on home improvements | 3/30/2007 |
Q: My husband and I are selling our house in Mississippi and moving to Iowa. We have not been in this ... A: First, why are you moving? And what is the amount of your gain? And how long have you been in this ...
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| tax exemptions | 3/30/2007 |
Q: I am a SC resident. I had been a stay-home mom until August 2006, when I went back to work. My ... A: While I cannot tell you if the W-4 is correct, I can definitely tell you that your theory is ...
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| federal tax | 3/29/2007 |
Q: My stepson is on disability with a brain injury. He has been this way since 1990. He work in a ... A: It is that way because he is now paying his SS and medicare taxes. Should he pay that? Here is ...
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| tax fraud/forgery | 3/29/2007 |
Q: My wife and I have been separated since Sept. 2006. She lives in Indiana and I moved to Louisiana. ... A: HRB did not tell you your W-2 was used, they said your SSN was used to file a return and that may or ...
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| Rental Prop. Capital Gains | 3/28/2007 |
Q: O'Planick, My wife and I have owned and lived in a home with an attached rental unit for the last ... A: It can be adjusted using form 3115, but you will pay taxes now on what was deducted then. If I ...
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| Home mortgage and real estate tax deduction | 3/27/2007 |
Q: If you do not have USA earned income from salaries etc. and if the money you make is earned by ... A: As a US citizen, you are taxed on your income worldwide. If you meet the exclusion (330 days out of ...
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| receiving gift tax | 3/25/2007 |
Q: hypothetically speaking: I am married with 3 kids, and have four rich married aunts. Can they and ... A: Sure they can, but remember, the money they send the kids BELONGS to the kids, you cannot touch it ...
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| State Tax refund | 3/24/2007 |
Q: I have a confusing situation involving a state tax refund. Basically, I made estimated payments ... A: Andy, you received a tax benefit in 2005 when you paid less tax by taking your state tax deduction. ...
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| home sale | 3/24/2007 |
Q: I sold my rental property and made $100,000 from the sale. Since I have never lived there, I may ... A: You are correct in that you cannot exclude the sale. And it will be taxed at both ordinary and ...
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| 2006 Ex claimed My Child and My Taxes | 3/23/2007 |
Q: My husband and I separated on November 19 2006, My 18 year old son lived with both of us until ... A: There is no way you supported your son on $1400 for a year, your husband supported him. You ...
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| Confused . | 3/23/2007 |
Q: I just started working for the first time last year . So this year would be my first for doing my ... A: I would strongly suggest you find a VITA or TCE tax preparation site and have them do your taxes. ...
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| 2006 Ex claimed My Child and My Taxes | 3/23/2007 |
Q: My husband and I separated on November 19 2006, My 18 year old son lived with both of us until ... A: Your husband supported the boy and he has the right to claim him. But he should not have filed a ...
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| 401k withdrawal | 3/21/2007 |
Q: I took out a $9000 loan from my civilian Thrift Savings Plan (TSP)last year to help pay for my ... A: You will never recapture the income you will lose if you cash the money out. But if you do option ...
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| capital gains on land sales | 3/20/2007 |
Q: My husband is selling vacant land that he inherited a quarter interest in back in 1995 of his ... A: Okay, let's take this slow. First of all, his starting basis is the date of death basis. Lawyer ...
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| Capital gains | 3/20/2007 |
Q: My mother has passed away, and I am the only heir to her estate. I am currently in the process of ... A: No, when you sell it, IF there are gains, you will pay on those gains HOWEVER, if you inherited the ...
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| tax on monies received as benificiary | 3/19/2007 |
Q: My mother-in-law passed away in Feb 2006. We have received several 1099's on pre tax dollars and ... A: There are no "special" deductions against this income, other than your ordinary ones. And there may ...
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| child tax credit | 3/18/2007 |
Q: I quit working in March of '06 due to complications in my pregnancy. I have been told that when I ... A: The reason you are not getting an entire child tax credit is because you earned under $11,000. My ...
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| Child Claims | 3/14/2007 |
Q: I have two children ages 2 and 1 they have lived with their mother and i since birth, never have put ... A: What you can do is mail in your return claiming both children. The IRS will send you mail asking ...
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| Taxes | 3/13/2007 |
Q: I am 17 years old and I worked for a local grocery last year for the months of January-May and ... A: I really doubt you have 50% or more of support to a baby on $4K of income. If Mom and Step Dad ...
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| 1099-Misc | 3/13/2007 |
Q: I received a 1099-Misc and a W-2 from my current employer. I believe the 1099-Misc was sent to me ... A: You MUST use the 1040 and if these folks are your employers, they have sent you the wrong forms and ...
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| DEPENDENT DEDUCTION | 3/13/2007 |
Q: MY EX-HUSBAND (HE LIVES OUT OF STATE)LAST YEAR CLAIMED MY TWO YOUNGER CHILDREN, ONE SENIOR IN HIGH ... A: First of all, please know that typing in all caps is very hard to read and considered ...
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| 401(k) to IRA rollover with after-tax portion | 3/8/2007 |
Q: I am rolling over 401(k) from my former employer to IRA. Fund is in cash and stock certificate. It ... A: You can cash the after tax check and do what you want with it, tax free. If you roll it into an ...
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| reporting of home sale income | 3/8/2007 |
Q: I recently took over my disabled mothers farm and sold it for her. She bought the house for 113,000 ... A: Hopefully, no professional told you to do this. If so, you should sue them. Since YOU did not ...
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| w-4 forms | 3/6/2007 |
Q: me and some of my fellow employees recently filed for exemption on our w-4 forms. when we recieved ... A: Normally, they cannot wait, but if a bunch of you did it, they may smell a rat and are waiting to ...
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| tax liability on sold inherited house | 3/4/2007 |
Q: My mom passed in 1986.We(3 sibblings) inherited the house. We sold it in 2006.How is the house sale ... A: Your basis is the date of death value on Mom's death. Depending on how you used the house in the ...
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| IRA withdrawal for 1st time Homebuyer | 3/4/2007 |
Q: I am buyer a home for the 1st time and I was told to put $4000 into a traditional IRA to get a tax ... A: Unless you think your taxable income is going to be REALLY a lot lower then it is in 2006, I would ...
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| claim single or HOH | 3/3/2007 |
Q: Common law is recognized in the state of TX. Can we file together as married? Or could/should we ... A: You ask a legal question, I can't answer it. You need to know the requirements of common law ...
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| claim single or HOH | 3/2/2007 |
Q: I am currently living with my fiance in a home I bought in Kyle, TX in May 2006. I pay the mortgage ... A: You cannot be head of household. He does not qualify you for that. If he lived with you the entire ...
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| 1099 | 2/28/2007 |
Q: I entered into an auto loan before I was of legal age. Due to my age and circumstances I was not ... A: You blew a loan. It does not matter your age. And you may have taxable income. Even if you did ...
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| Limited Liability Company | 2/24/2007 |
Q: I have been fooling around a little with making money on the Internet for about a year or two. I'm ... A: LLCs are state issued animals and I cannot tell you if it will work for you or not. Please see ...
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| capital gains tax | 2/23/2007 |
Q: My mother recently died and her property was sold. There was a will but my sister had her name on ... A: Since sister's name was on the deed, she owns that portion of the home. I'm going to assume it was ...
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| capitol gains on sale of house | 2/22/2007 |
Q: My mother passed away in Oct. She had transferred title of her home to me 7 years ago. My mother ... A: If Mother retained a life estate when she gifted you the home, and her gain was under $250,000, you ...
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| Mileage Deductions | 2/17/2007 |
Q: When the K-1 gets filed is it gone with my personal taxes because I'm paid hourly or is it something ... A: Hopefully you are working with a tax professional. The partnership files a 1065 and gives you a ...
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| Miscellaneous Income 1099-MISC | 2/16/2007 |
Q: I am a little worried about filing my taxes this year. I was contracted by the United States Army ... A: If you were not in the US 30 days in the year, you may have the foreign income exclusion. However, ...
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| tax question | 2/13/2007 |
Q: my father is a commercial fisherman and he recieved a 1099, i have heard that fisherman get special ... A: Fisherman do not have special tax breaks, but they do get some ease on tax deadlines for payment. ...
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| Non Taxable Income | 2/11/2007 |
Q: live in Georgia. I am a retired teacher that retired on disability.(I WORE MYSELF OUT IN THE ... A: I can't tell if your return is correct or not. If you are SS disability, there is a good chance it ...
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| W4 choices | 2/8/2007 |
Q: My annual income for 2006 was approx. $70,000 and wil increase very slightly this year. On my ... A: Grace, it looks like you have a lot of wiggle room. And you have the smarts to calculate what I'm ...
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| W4 choices | 2/8/2007 |
Q: Ms. O'Planick, I currently have the highest amount taken from my paycheck for taxes. I chose ... A: Grace, without knowing a lot about you, I can imagine that you can take at least one exemption. A ...
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| Gift | 2/7/2007 |
Q: My mother (father is no longer living) would like to give to myself and my wife $24,000 to pay off ... A: As long as Mom gives each of you 12K or less, there is no reporting. However, if she gives you a ...
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| Parent Claiming | 2/6/2007 |
Q: I am 20 yrs old and not a student... Is she doing something illegal or something?Hi Helen, Is it ... A: If you are 20 and not a student, your parents cannot claim you. Is she doing something wrong? I ...
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| Husbands taxes | 2/6/2007 |
Q: My husband and I got married last year and I signed a pre-nup agreement. Before I've always filed ... A: Please have him see a tax professional (EA or CPA that does taxes - not all CPAs do taxes) and ...
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| Educator Expenses | 2/3/2007 |
Q: Helen! I'm a teacher in Virginia, and for the past couple of years, the federal 1040 form had a ... A: It is still there, but it is was put in after the tax forms were printed. It goes on some line in ...
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| Filing Status | 2/3/2007 |
Q: My question is this: If my ex wife and I both share custody of our son, what should our filling ... A: The parent with OVER 50% of time with your son is the custodial parent. That parent is head of ...
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| tax return/independent contractor | 2/2/2007 |
Q: I work from home doing typing for somebody (an individual who gives me checks out of his personal ... A: First of all, you do not have mileage expenses with the attorney as you are working at his home. ...
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| Tax and Bonds | 2/2/2007 |
Q: I inherited $6000 in savings Bonds when my father passed away last year. I did cash them in. Will I ... A: Since you inherited the bonds, you will pay tax on the entire amount of interest the bond made. ...
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| Personal Income tax for separated couple | 2/1/2007 |
Q: My wife and I separated on May 13. With three children, what options do we have for filing? Do we ... A: You may file married filing jointly or married filing separately. If you did not spend a night ...
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| Excess Roth IRA contribution | 1/31/2007 |
Q: I may be mistaken, but from my reading of the form 5329 instructions, it does not say that one needs ... A: The appreciation is a part of the excess contribution and must be removed and penalized. If you ...
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| 1099 r form | 1/30/2007 |
Q: The fact that I have a 1099-r form for cashing out my 401k going to hurt my tax return?? The 1099r ... A: It could easily screw up your return. The $7500 is taxable income and you have a penalty due of ...
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| capital gains tax | 1/28/2007 |
Q: my wife and her siblings were given her parents house, it was signed over to them 15 years ago. the ... A: What it was worth on the day of the gift has nothing to do with nothing. The basis to the siblings ...
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| filing status and dependents | 1/28/2007 |
Q: My husband and I were married last week, we have 3 dependent children together and I have a daughter ... A: Last year, his filing status was head of household for the children you have together. He can also ...
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| itemizing | 1/27/2007 |
Q: The phone is not required but it is used to call for pick ups, directions, and also taking to his ... A: Since it is not required, you can only take the amount over the basic plan as a deduction. Same as ...
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| taxes on Prize winnings | 1/27/2007 |
Q: I recently won a 40" flat panel TV worth $2779.00.My question is do I file a 1099 or does the place ... A: Congrats! The company you won the TV from will send you a 1099-MISC. If you won it in 2006, it is ...
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| charity deductions | 1/25/2007 |
Q: My question is pertaining to deductions to charity. My husband and I file a joint return. I do not ... A: Kristin, Mom heard very wrong. You got something for your money and that was clothing for the ...
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| deceases parent taxes returns | 1/25/2007 |
Q: I'm writing on behalf of a co-worker, who is only 19 and recently lost her mother. This past week ... A: That poor child. If there was an executor, she needs to give them the W-2 so they can file the ...
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| Child Day Care Expenses | 1/24/2007 |
Q: I am divorced. I pay 100% of all day care for both children, plus $500.00 in child support to my ex. ... A: Who has custody of the children? That is the ONLY parent that can claim child care. And since it ...
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| Graduate School Application | 1/24/2007 |
Q: In 2006 I applied to both Dental School and Pharmacy School. Applying to each with application ... A: Sorry Brendan, these are personal expenses and not deductible. BTW - hubby is a pharmacist and ...
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| IRA contributions | 1/22/2007 |
Q: As I understand it,an individual has until April 15,2007 to contribute to their IRA, and still be ... A: Dave, I can see what you are asking and you are doing it the LONG way. Go ahead and claim your IRA ...
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| tax question | 1/15/2007 |
Q: My wife and I were married on Dec. 30 2006. She recieves disability and was a part time student ... A: Your best bet is married filing jointly. Your only other choice is married filing separate. You ...
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| IRA DISTRIBUTION | 1/5/2007 |
Q: I have taken full distribution in 2006 of my IRA, about $220k, and will use it to pay for a new home ... A: First of all, how old are you and have you owned a home for any time in the past 2 years? If you ...
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| Health Care Deduction/Painfully Slow Insurance Co. | 1/5/2007 |
Q: I have been seeing a physician routinely since July that does not bill insurance. The patient pays ... A: Bill, you can take what was paid out of pocket in 2006, HOWEVER, when the insurance company pays ...
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| Questions | 1/4/2007 |
Q: Ok, thanks for your help. One last question though...when I have filed my taxes in the past being ... A: You could easily owe, it will depend how much your spouse has had withheld. The only real way to ...
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| Questions | 1/4/2007 |
Q: I have recently prepared my taxes on line myself for the past couple of years. Now I am not sure ... A: Your filing choices are married filing jointly or married filing separately. And normally married ...
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| sale of gift | 1/4/2007 |
Q: In 1978 (+ maybe 2 yrs.) My husband was give a % of some farm land by his parents. The other % was ... A: Your husband's basis (or cost)in the land is exactly the same as his parents basis is. So if they ...
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| Should I take taxes out of my paycheck as I go? | 1/2/2007 |
Q: I em eployeed at a small company. I have figured it out and if I kept all the taxes that I would pay ... A: I can't tell you about Utah, but the IRS says that if you don't pay your taxes ratably over the ...
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| selling mutual funds | 1/2/2007 |
Q: I'm married with no children. Together my wife and I make around 50k a year. We have around 100k in ... A: First of all, the quickest way to lose a friend is to have them invest for you. Just a very large ...
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| how to make it work/ | 1/1/2007 |
Q: i am planing to buy houses ,maybe one at a time,fix it up and sell it,what is % i have to pay ,if it ... A: The first few (three) are going to be Schedule D transactions, taxed at ordinary income if held a ...
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| Filing status | 12/30/2006 |
Q: Married filing jointly, if there is a problem with my ex's taxes (like she was overpaid last year by ... A: What happened to her taxes if you were not on the return is her problem. HOWEVER, if you file ...
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| Allimony & Taxes | 12/30/2006 |
Q: Ok hopefully last question! It states in the order that I have in my hand: "ORDERED that the ... A: We do know that it is alimony, but it really needs to state if it is taxable alimony to her. If ...
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| To itemize or not | 12/30/2006 |
Q: This is the first year that I have not been listed as a dependant on my parents return and I was ... A: Take a look at Schedule A and the instructions at www.irs.gov in the forms and publications area. ...
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| Filing status | 12/30/2006 |
Q: Ok here is my question. I am looking at my status and I am filing for a divorce. I got married on ... A: You have 2 choices, married filing jointly or married filing separately. Usually, unless you live ...
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| dependents | 12/28/2006 |
Q: My wife and I recently separated. She has agreed to let me claim her and her three children (all ... A: I'm confused as to claiming your wife first of all. Normally, a spouse is never a dependent. If ...
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| Childcare Provider Question | 12/28/2006 |
Q: I am a licensed childcare provider and was wondering if there was any paperwork that I needed to ... A: You should give them a statement - on that it should have your name, address, social security number ...
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| Tax amount on withdrawal from Life Insurance | 12/27/2006 |
Q: We are considering taking 15K from one of our life insurance polices without having to pay it back. ... A: I'm going to guess your taxable amount is probably not going to be that great. But to make a quick ...
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| tax on an insurance settlement | 12/27/2006 |
Q: My husband and I received an insurance settlement for the wrongful death of my 16yr old son in a car ... A: My thoughts are with you as you go thru this. It must be very hard. I doubt the settlement is ...
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| Vehicle Cost Tax Deduction | 12/27/2006 |
Q: I do not have a legal business entity per se, but own and run a lot of websites for which I recently ... A: Your only deductions are the cost of the wrap and the ad fees. You do not get to deduct the price ...
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| Gifting | 12/27/2006 |
Q: We have heard (in passing) from a profession that our mother can gift her estate to her four ... A: You need to talk to an elderlawyer and now. Yes, she can gift (up to 12K a year per person without ...
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| tax on a class action settlement | 12/27/2006 |
Q: I recently received two checks from a security class action settlement (WorldCom). One check is for ... A: The IRS settlement check needs to go back into your IRA ASAP. Make sure your custodian does not ...
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| Personal Allowances | 12/26/2006 |
Q: I have recently been gathering information to prepare myself for 2006 tax filing. I noticed that my ... A: State wise, I can't help you, all states are different. Federally, as long as you don't have a lot ...
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| 401K Early Withdrawl Exceptions - 1st time home buyer | 12/26/2006 |
Q: I am getting some mixed answers on this topic. Can you help to clarify? I want to take about $13K ... A: First of all, unless this is an IRA, there is no out on the penalty. You cannot take the money out ...
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| 1099 | 12/24/2006 |
Q: My husband went to work for a friend in January and he does not deduct social security or federal ... A: Social Security is mandatory, whomever said it was not has no idea what they are talking about ...
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| When to take the tax break? | 12/20/2006 |
Q: I am planning to buy the Toyoya Prius 07, which, I am told would give me a tax break of upto $1500. ... A: You will love the Prius, I'm driving an 06 and get 50 MPH. Stella (her name) is great! You have to ...
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| Gift tax | 12/19/2006 |
Q: My brother wants to give me ~ $10,000. But we are not sure what the maximum he is allowed to give me ... A: Phil, you will never pay tax on the gift, no matter what amount. However, your brother will have to ...
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| real estate investment | 12/19/2006 |
Q: I am really not concerned about the liability, I just want to be able to save on taxes. I live in ... A: An LLC is not going to save you any tax dollars. Both the partnership or S corp are flow thru ...
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| real estate investment | 12/18/2006 |
Q: Helen, I am sorry if you may have answered this question before. My brother and I intend to start ... A: Why do you want to do an LLC? The only protection it gives you is minimal liablity coverage, and a ...
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| gift of IRA stck | 12/17/2006 |
Q: If the stock gifted has a large long term loss, will the recipient get my basis in the stock? A: First of all, you cannot gift IRA stock. You cannot gift an IRA either. You either pull it out or ...
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| File Tax | 12/13/2006 |
Q: I was wondering, me and my daughter mom is separated. I pay the mom 300 a month for child support, ... A: You need to look at your separation agreement to see who can claim this young lady. And if that ...
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| Filing Status | 12/12/2006 |
Q: I filed for divorce in Oct of this year. I have physical custody of our daughter, He makes more ... A: Unless your divorce is final by 12/31, or if you moved out of the house before 7/1/06, your filing ...
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| primary residence capital gain exemption | 12/7/2006 |
Q: Here's our situation. My wife and I built a lake home seven years ago 250 miles from where we lived ... A: Unless you voted where your lake home was, had all your mail forwarded there, had the address of ...
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| capital gains selling 2 homes in one year | 12/7/2006 |
Q: I was wondering if you could help me figure out what my capital gains bill will be on the sale of 2 ... A: I do not do calculations pro bono. However, you will not pay any tax on your primary residence. ...
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| required minimum distrubtion | 12/6/2006 |
Q: I became 70 last August. When must I start taking my RMD from my IRAs. What is the minimum I am ... A: The IRS has a publication that will help you. Your RMD is based on the value of your IRA. If your ...
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| selling vs. tax write-off | 12/5/2006 |
Q: I have a collection of comics, quite a few in fact. I am trying to figure out if I should sell the ... A: You really have to run the numbers. But let's say you are in the 15% tax bracket. You give $1,000 ...
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| Itemizing for an Idiot | 12/5/2006 |
Q: This is probably a no-brainer for some but I am clueless when it comes to itemizing deductions. If ... A: You cannot count the medical expenses that were paid out of your FSA. Car tags - depends on your ...
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| Tax write offs and such | 12/3/2006 |
Q: Last year i accidently claimed 01 on my tax forms and owed like 15 this year in march i changed to ... A: There is no way I can tell you what the difference will be in your tax return. There is simply not ...
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| Claiming a step child | 12/3/2006 |
Q: My daughter and husband separated in September of 2005, they have one daughter together and she has ... A: He supported both girls for over the year and his step child is considered a family member so yes, ...
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| 401k W-4 | 12/1/2006 |
Q: I am a college senior studying accounting. I will not go into Tax, but i am now looking at tax ... A: Federally, each exemption you claim on a W-4 is worth about $2500, so if you are putting away $3300, ...
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| Merging & Taxes | 11/30/2006 |
Q: My husband and I started a home-based photography business about 6 months ago. We are considering ... A: It looks like you are starting a partnership and must file as such. See form 1065 at www.irs.gov ...
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| past due taxes | 11/30/2006 |
Q: "My 45 yr old son has chronic neuro Lymes disease for 4 years, unable to work because of fatigue, ... A: Loretta, the IRS will not talk to you unless he gives you power of attorney. But yes, someone needs ...
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| Hous purchase | 11/29/2006 |
Q: I just bought a house in Oct 06. I will make the first payment in Dec 06. Can you tell me what ... A: not a lot I'm afraid. You can take your points, real estate taxes paid in 2006 (including any you ...
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| Claiming partners child on on income tax return. | 11/27/2006 |
Q: I am in a situation whereby I have lived with my partner since March 2006. But at the same time I ... A: Sorry, but you cannot claim anyone but yourself. The rule that fits your situation best is that ...
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| early withdrawal from pension | 11/27/2006 |
Q: I left my job at 52 and put my retirement money in 72T plans. $100,000 in Hartford Annuity in Feb ... A: Since you took the 72T approach, you must continue your withdrawals under the plan until you turn ...
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| Prize Money Taxes | 11/27/2006 |
Q: I recently won a contest on a website, and won $1,000. I was required to fill out a W-9 and fax it ... A: This is income to you. It will go on line 21 of the form 1040 and is also taxable to your state if ...
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| house sale | 11/25/2006 |
Q: I have been using the house as a vacation home, and otherwise it is not used. How do we determine ... A: If there was an estate, the value of the house should have been put in the estate return. If not, ...
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| owner occupancy and capital gains | 11/23/2006 |
Q: My son and I are buying a house together--that is, we'll both be on the title, but only he will be ... A: Owning and residing are the two criteria for exclusion, HOWEVER, since you are buying it together, ...
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| "Tax Home" and Deductible Expenses | 11/23/2006 |
Q: I own a home in NC, where I live with my family. I have taken a six-month contract through a ... A: As long as you are expected to be in Detroit for less than a year, your expenses are deductible. The ...
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| shares od untraded stock | 11/15/2006 |
Q: i have quite a dilemma; I have shares of a stock that has not been traded for several years. I would ... A: You should be able to talk Fidelity into selling them for you for a dollar, then and only then can ...
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| Sale of house after divorce | 11/13/2006 |
Q: My estranged wife and I jointly own two houses, the most recent of which was acquired in 1999. My ... A: As long as your mail was going to your former rental property, you can exclude the gain as your ...
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| Charitable donations. | 11/13/2006 |
Q: I am donating about 15 large bags of very nice clothing, purses and shoes to a local battered ... A: If they are all in good or better condition, you self value them to a thrift shop or garage sale ...
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| back pay for disability | 11/12/2006 |
Q: Question it like we claim 85% of her income as money earned plus what I earn and then we file taxes, ... A: Keith, you still itemize, it just has no direct affect on her SSDI. If you follow the tax form, ...
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| back pay for disability | 11/12/2006 |
Q: Yes my wife got her back pay of around 25,000 and also got about 14,000 for are one child at To ... A: Her disability payments (not the child's) will be taxed at 85%. Assuming your income is about the ...
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| Lowest taxes | 11/10/2006 |
Q: My dilemna is how to minimize the taxes. Social Security is taxable afte a cetain limit. then the ... A: Yes, the year the bonds no longer pay interest, they are taxable whether she keeps them or not. I ...
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| Capital Gains on a Rental property | 11/9/2006 |
Q: Please clarify your last comment. Wouldn't all Mortgage interest payments associated with this ... A: Not really. If it is not an active rental, it is just investment property and as such, the interest ...
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| Capital Gains on a Rental property | 11/9/2006 |
Q: I have owned a rental property for three years. I have been trying to sell it since April 2006. It ... A: If the property is actively advertised for rent, then yes. If you have taken it off of the rental ...
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| Dependent | 11/8/2006 |
Q: My daughter is 21. She had a baby in June of this year. Since January our daughter has lived with ... A: Going backwards, child support is not taxable to your daughter, your granddaughter or you. It is a ...
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| Investment property sale | 11/7/2006 |
Q: I lived in this residence for about 1 year, after which i rented it out for 2 years before i sold ... A: Since you do not meet the requirements to exclude, you will owe both capital gains and ordinary ...
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| Quick Claim Deed and Capital Gains Tax | 11/7/2006 |
Q: ..do you then know what the tax rate would be for Illinois? Also, he is also buying a commercial ... A: Federally, his income tax is 15%, I don't know IL's rate. As for the like kind exchange, there are ...
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| Quick Claim Deed and Capital Gains Tax | 11/6/2006 |
Q: My wife and I are selling the condo that we live in. The condo has been in my wife's sted-dad's ... A: Sorry, but your FIL is going to owe taxes on the sale and there is no way you can exclude it. The ...
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| Lowering the Self-Employement Tax Liability | 11/4/2006 |
Q: 1. How do I lower the self-employment tax to zero? I thought a large deduction would lower my net ... A: Qualified and legal expenses that are connected to the SE tax are the only things that lower the ...
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| Tax on hourly wage | 11/2/2006 |
Q: I just started a temporary job @ $12.00 an hour. Can you help me figure out how much they will take ... A: Federally, you can go to www.irs.gov and look at pub 15 for your federal withholding. For SS, the ...
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| EIC | 11/2/2006 |
Q: last year i claimed fiances daughter and was expecting large refund, was denied, not on birth ... A: Starting in 2005, you can only claim your biological children, not children of any one else. The ...
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| W-4 | 10/31/2006 |
Q: My husband claimed married with 6 deductions on his W-4 even though it's just the two of us. ... A: Have you owed money? Or do you get a refund yearly? Sounds like there has been past problems ...
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| Selling a home | 10/30/2006 |
Q: My mother-in-law passed away leaving my husband and his two sisters a home. All of their names are ... A: Let's make some assumptions here, toss in your own numbers. Date of death value of the home was ...
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| capital gain question | 10/30/2006 |
Q: My wife and I live in Florida but we own a home in NC that has been periodically rented out on short ... A: Jay, since it was part personal use property, you cannot exchange it for anything else. So it does ...
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| Per Diem for contractors | 10/26/2006 |
Q: I'm sorry, I think I made the question overly complicated. If I'm interpreting your response ... A: I have a Toni at home so it must be your name, I can handle it. :) The first 6 months, your ...
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| capital gains tax | 10/25/2006 |
Q: I purchased a house in 1997 for $112,000 where I resided with my children until March 2003 when I ... A: Yep, no matter what you do with the money, you will owe tax dollars. It has not been your residence ...
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| Per Diem for contractors | 10/24/2006 |
Q: I actually have 3 closely related questions, but first some background information: I am an IT ... A: Toney. The bad news is when your contract was extended for the additional 6 months is that all your ...
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| Filing taxes | 10/23/2006 |
Q: I'm not legally married, but I live with mypartner for teh last 4 years and we file taxes as single. ... A: If you get married a minute before midnight on 12/31, you are considered married the entire year. ...
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| Tax write off question | 10/23/2006 |
Q: We have a lot of things that we are getting rid of and we are considering donating everything and ... A: If you can itemize (use Sch A) then for every $100 worth of deductions over the standard deduction ...
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| Tax Deductions | 10/21/2006 |
Q: I work full time as a Sous Chef. I also work part-time as webmaster for the same employer. My ... A: Yes, IF (and it is a big if) you log every minute of use on the PC, from webhosting to playing poker ...
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| Tax on proceeds from a land sale | 10/16/2006 |
Q: My father is selling property inherited from my grandfather. Is there a way he can avoid paying ... A: Gains equal taxes due, that is a fact of life. Dad's basis is the date of death value of your ...
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| Filing Back taxes | 10/13/2006 |
Q: I'm an American citizen who's been living in Israel for the past seven years. I think the last time ... A: This is pretty easy. :) At least to me. :) First of all, you can call the IRS and ask what was ...
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| Taxes on disibility | 10/11/2006 |
Q: The following is my scenerio and my questions; I have just been approved for long term disibility ... A: June, your disability will not have SS and Medicare taxes taken out, only federal taxes and probably ...
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| sale of rental property | 10/10/2006 |
Q: So the amount of tax has to do with the amount of gain? What if the gain is more than $400,000. I've ... A: Toni, plain language? hehe Seriously there are numerous sites. www.fairmark.com and ...
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| Tax return required or not required | 10/9/2006 |
Q: I have an 18 year old daughter that just start her first job in September and her gross pay is about ... A: If she has any federal withholding, she will want to file to get her money back. She cannot claim ...
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| Tax on 2nd home - multiple owners | 10/8/2006 |
Q: About 5 years ago, my father and I bought a vacation home together - 50% owners each. The title of ... A: Dan, you have problems. Unless you paid 100% of the interest and taxes, you must amend your returns ...
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| Quarterly Estimated Tax Payments | 10/7/2006 |
Q: I'm sorry but I don't understand your answer. The meaning of the words "withheld rateably" are is ... A: Sorry Charles, sometimes I just talk tax and think I should be understood, my fault and a bad habit. ...
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| 401k distribution limit | 10/7/2006 |
Q: I am 66 and retired. Can I withdraw all of it or is there a limit to how much I can withdraw from ... A: Jim, I can only answer federally, I don't know CA law. You can take out as much as you want. ...
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| Capiital Gain on sale of gifted vacant land | 10/5/2006 |
Q: I understand the tax liability on selling gifted vacant land is 15% of the difference between what ... A: Question one - the taxes are calculated on the net sales price less basis. So you can reduce the ...
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| Injured Spouse | 10/5/2006 |
Q: My husband and I files married jointly this year for 2005. He owes child support so they took all of ... A: Call the IRS again. If you do not get any resolution, call the Taxpayer Advocate in your area (you ...
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| reporting babysitting income | 10/5/2006 |
Q: You told me that I would need a form 8829, but I actually did not do the childcare at my house, I ... A: Big change in the answer Mary. You are not self employed, you are an employee of the person whose ...
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| "self employed" | 10/5/2006 |
Q: Am labeled as being self employed because I am an exotic entertainer at a club? If so what is ... A: Dana, you probably are considered self employed. Your expenses are limited to anything that is not ...
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| Rent claimed on Federal Income Taxes? | 10/5/2006 |
Q: I purchased a single family, 2-bedroom home 12 months ago. I had a friend move in the second bedroom ... A: Jeff, you are a landlord and you have a tenant. It does not matter that he has paid you with a ...
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| 401(k) | 10/4/2006 |
Q: I have a question about the tax consequences of a 401(k). My friend left his one job and didn't ... A: He will get a 1099-R showing the early distribution. Normally only 20% is withheld, so the 40% ...
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| dependents | 10/3/2006 |
Q: I am wondering if my children and I have lived with my boyfriend for the entire year and he has paid ... A: There have been changes in this area in the past year. I will refer you to pub 17 at www.irs.gov, ...
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| worthless securities | 10/2/2006 |
Q: I hold about 22k shares of XYBRQ. They have filed for bankruptcy under Chp 11, and class action ... A: As long as they are still listed (and if they go off your radar, check pinksheets.com) they are not ...
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| sold land that was gifted to us | 10/1/2006 |
Q: Helen, Thanks for the answer. One more question.....She owned the land for many years[back in the ... A: Federally, 15% is your max tax rate. What worries me is that it sounds like she may be committing ...
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| sold land that was gifted to us | 10/1/2006 |
Q: My husband and I and his sister inlaw and husband just jointly sold 2 lots that where gifted to us ... A: You will owe taxes on this money. How much did your MIL pay for this land? That is your basis. ...
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| Inheritance | 9/29/2006 |
Q: My wifes' father passed away last month. His estate was in California and is below the $2,000,000 ... A: You need to find an estate tax professional that is familiar with CA rules. Just because his estate ...
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| deducting moving expenses | 9/29/2006 |
Q: Sorry, here is the text: From Publication 521 - Main Contents, regarding deducting moving expenses: ... A: Sorry, Jason, nice try, but it is not going to work. In order to deduct moving expenses, you must ...
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| Taxes for deceased parent | 9/29/2006 |
Q: How can I get that started ? A: You need to contact local officials, be it a lawyer, a tax professional or someone at the register ...
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| New Job, Wondering What to Keep track of for tax purposes | 9/28/2006 |
Q: I recently joined the working world as an attorney. I was wondering what possible deductions I can ... A: Your mileage from the office out and back is deductible. Your phone - only the business portion and ...
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| Tapping IRA funds without paying a withdrawal fee | 9/27/2006 |
Q: Helen, I had to move my family (loss of job) and currently we have 3 outstanding loans as follows: ... A: You can "roll" money out of your IRA for 60 days (NO MORE and EVERY day counts), but if it is not ...
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| Capitol Gains? | 9/22/2006 |
Q: Could you please tell me where and how to report this money on my 2006 tax form? Sure hope I can ... A: First of all, you cannot file the short form, this transaction will be recorded on Sch D as a long ...
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| Tax Preparation | 9/21/2006 |
Q: See, i'm a magazine student and I'm working on an article on tax preparation, "Should you do your ... A: If I get a byline in the article, I'll give you so much info, your article will write itself. The ...
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| Selling my home | 9/21/2006 |
Q: Yes I lost my job and I'm ill. Sorry if I was rude I'm just confused. ThanksI can't afford this ... A: Now we are getting somewhere! :) Since there are unforeseen circumstances, you can prorate the ...
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| Tax Preparation | 9/20/2006 |
Q: are you familiar at all with online tax programs like Turbo Tax? A: No, sorry. However, all preparation software is is a tool. If you cannot do a tax return with a ...
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| Real Estate Taxes | 9/20/2006 |
Q: I live in NH and am selling my house as a result of divorce. My husband and I owned the house of a ... A: Remember, it is not what you walk away with, as your mortgage, etc has nothing to do with anything. ...
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| Real Estate Taxes | 9/20/2006 |
Q: I live in NH and am selling my house as a result of divorce. My husband and I owned the house of a ... A: Since you are selling due to divorce, you have "unforeseen circumstances" and are allowed a prorated ...
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| estimated withholdings | 9/18/2006 |
Q: I am single w no dependents. My gross income is approx 55,000/yr. I hold contracts on two houses, ... A: There is no ballpark withholding amount. If you are happy with your bottom line on your tax refund, ...
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| Real Estate Taxes | 9/18/2006 |
Q: ------------------------- Followup To The lots were a part of the yard. In eairler years they ... A: Okay that is good. Now, more questions. How much is Mom selling EVERYTHING for (including the ...
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| Tax on Child Support | 9/15/2006 |
Q: I am trying to determine what the IRS taxes as far as child support. For sake of simple math, if I ... A: Child support is not deductible by you or taxable to her. In your example, your taxable income is ...
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| 529 plans | 9/11/2006 |
Q: My daughter started college this fall. I have been taking funds out of her 529 plan to pay for ... A: You will get a form from her trustee. As long as you used it for qualified expenses (and her ...
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| selling stock or gifting it | 9/7/2006 |
Q: I bought Wal_mart stock long ago and have made about $55,000 on it. Since it has been dropping in ... A: Gifting it to the kids is a good idea, but you have a few things to remember. Number one and ...
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| Child Credit | 9/7/2006 |
Q: I am expecting my first child Dec. 10, 2006. Will I be able to claim him on my 2006 tax return as my ... A: Diana, even if he holds out and is born a minute before midnight on 12/31, you can claim him for ...
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| tax on insurance | 9/6/2006 |
Q: My wife is a German citizen and resident alien in the US. She will be receiving a payout from a ... A: This is handled the same way as if it was a US policy. If she gets more out of the policy then she ...
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| Adoption Tax Credit | 9/6/2006 |
Q: I'm sorry but I do not fully understand your answer. Can you explain it differently by using ... A: Let's say you have $10,000 in qualified adoption credit (you cannot claim the subsidy for the ...
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| Adoption Tax Credit | 9/6/2006 |
Q: We have adopted 5 children in 2006. We know about the adoption tax credit available for adopting ... A: The adoption credit will NOT cancel his early distribution penalty. The AC is a non-refundable ...
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| Capital Gains on sale of house | 9/5/2006 |
Q: Helen. We have rented either one or two bedrooms of our house most of the time we have lived here, ... A: Not really. While you can exclude the entire gain, you MUST pay taxes (up to 25%) on the ...
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| Claiming dependant | 9/4/2006 |
Q: Since my mother's illness, I have moved her in to my house to care for her since March. Am I able to ... A: It depends. If her income (NOT counting Social security) is under $3300 for 2006, and you pay over ...
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| Dependents | 9/2/2006 |
Q: I make $800 per week. For the past two years I claimed my step-children as dependents filing ... A: Eddie, you do not get partial exemptions. It is all or nothing. You would get to claim the child ...
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| employees | 9/2/2006 |
Q: I live in Tennessee and I recently accepted a custodial position where I will be hiring a staff to ... A: If you are their employer, you will have to pay their taxes. You will need an EIN (see form W-4) ...
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| real estate cost bases | 9/1/2006 |
Q: How do I determine the cost basis of a home my mother and father bought for $23,000 in 1959. My ... A: If the home is NOT in a community property state, your calculation is 1/2 the purchase price ...
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| claiming kids on taxes after divorce | 8/31/2006 |
Q: Were married 20 years, 6 kids (ages 17,15,13,11,11,7). We have joint custoday except for one 11 year ... A: You are the custodial parent and only YOU can give up the right to not claim the kids. He cannot ...
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| 401k and educational expenses | 8/31/2006 |
Q: I quit my job in 2002 to return to graduate school. I stopped contributing to my employer's 401k ... A: You got bad advice Mike. A 401K is a 401K is a 401K. And they cannot be used for educational ...
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| IL capital gains tax | 8/27/2006 |
Q: Helen I have owned my condo for 1 yr and 5 months. We are puting it on the market as we are ... A: Sorry, there is no way to exclude the taxes on this. You have not lived in it for 2 years; nor does ...
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| Medical expenses and head of household | 8/25/2006 |
Q: My mother lives with me and I provide the majority of the income for our household bills, ie ... A: Your household bills, except for mortgage interest and property taxes, are not deductible. If Mom ...
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| Taxes | 8/20/2006 |
Q: My girlfriend & her husband have not filed taxes in 12 years. He is pretty much just a carpenter, ... A: No, SOME CPAs do taxes, others either do not or have not business doing them. Enrolled Agents all ...
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| Mortgage Interest as a tax deduction | 8/18/2006 |
Q: Helen, I was wanting to purchase a second home with my mother in the FL area and we'd both like to ... A: If you are both liable for the mortgage and both make payments, you each may deduct the prorated ...
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| Taxes after marriage | 8/17/2006 |
Q: I was recently married (August 4th) and I am wondering how this affects my tax liability. Do I need ... A: Jack, congrats on the marriage! You have two choices to file - married filing joint or married ...
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| Deductions for Work Expenses - Tools; new house | 8/13/2006 |
Q: This year my boyfriend and I both purchased a home and paid off his tool bill for work. First ... A: Julia, I'll take the house question first. You get to write off the portion of the interest and ...
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| Taxes on mutual fund gift | 8/11/2006 |
Q: I would like to transfer $10,000 worth of shares in a non-retirement mutual fund into my domestic ... A: No, you do not have to pay any taxes and neither does she until she sells it. HOWEVER, her basis ...
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| Retirement Contributions | 8/10/2006 |
Q: Good Afternoon, I have switched jobs during the 2006 tax year and I was eligible for the 401k at my ... A: Since you were covered for a day in 2006, you can always contribute to an IRA (and the whole amount, ...
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| Capital Gains on Home sale, with change of employer | 8/10/2006 |
Q: I sold my home after having occupied it for 22 months, not meeting the occupancy exemption. I sold ... A: Jasen, you are the first to have this question! Well, probably not, but one of the few. I'm going ...
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| Capital Gain on sale of homes | 8/9/2006 |
Q: My wife and I married at the end of Mar of this year [2006] and will be selling both of our homes ... A: You each get a $250,000 exclusion on each of your homes. But you cannot carry the unused portion ...
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| Tax bracket for Senior Citizen | 8/9/2006 |
Q: I'm asking a question for my mother. She is currently getting $19800.00 a year from Social Security ... A: Patricia, I can't tell you what tax bracket Mom will be in, but I can give you some insight. And ...
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| Sale of residence | 8/9/2006 |
Q: I bought and sold several homes when the tax laws allowed the exemption from capital gains if you ... A: Well, by reading this answer - I get a week's stay at the beach house! :) You can use the $500,000 ...
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| contract labor | 8/8/2006 |
Q: I would like to make clear that I no longer work with this company. But, he told me he will pay me ... A: Tea, this is NOT legal. You were his employee. If you decide to go as a subcontractor (1099-misc) ...
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| IRA Withdrawal as a beneficiary | 8/7/2006 |
Q: The credit union calls it a beneficiary IRA, They gave three options: Lump Sum distribution, ... A: If you are using the 5 year rule, your daughter can take out 1/5 a year, no more or no less. Doing ...
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| IRA Withdrawal as a beneficiary | 8/7/2006 |
Q: My mother passed away at age 63 and left my daughter as her beneficary to her IRA. She would like ... A: First of all, that IRA should have been paid out to your daughter, it could not be rolled over. So ...
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| annuity benificiary- minor | 8/5/2006 |
Q: My 8 year old daughter was named one of seventeen beneficiaries of an annuity from her recently ... A: Tina, a portion of the money is going to be taxed at your bracket, and the rest at hers. There is ...
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| tax write offs regarding medical bills | 8/3/2006 |
Q: I am divorced and recieved health coverage through my ex husbands company for three years. It was a ... A: Federally, you must itemize (use Sch A) and if your medical expenses you paid in a tax year are more ...
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| Schedule H | 8/2/2006 |
Q: I do not have a trade or business in the house. Based on your confirmation, I should not have to ... A: If you do not file a W-2 for her, she would be considered self employed and would have to pay SS and ...
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| Back Taxes | 8/2/2006 |
Q: My boyfriend just informed me that he has not filed his taxes in about 8 years. He is a contractor ... A: Jennifer, I really can't tell you what will happen regarding an audit. I've seen 10 years worth of ...
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| TAX LAW | 8/2/2006 |
Q: THE DIVORCE WAS IN 2005 BUT THE TAXES ARE FROM 2001 & 2003. THIS YEAR THE IRS MADE CONTACT WITH HER ... A: She filed a joint return and she is as liable as he is. She should get a transcript of the account ...
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| Schedule H | 8/2/2006 |
Q: I plan on paying my mom for babysitting our newborn because both my wife and I work. However, I am ... A: Ray, I'm changing my answer, so if you got the first one, ignore it. Unless you have a trade or ...
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| Gift of equity, tax question. | 8/1/2006 |
Q: Back in 2003 we bought my mom's house for 285,000 and she gifted us 115,000 which we used as a down ... A: Since you never lived in the home, you will have tax due no matter what. As for the gifting back ...
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| TAX LAW | 8/1/2006 |
Q: HOW CAN MY WIFE GET HELP IN GETTING HER EX-HUSBAND TO PAY HIS SHARE OF BACK FEDERAL TAXES. THE IRS ... A: What happened after the divorce? The taxes became due or the IRS started asking for them? If she ...
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| Social Security Benefits | 8/1/2006 |
Q: On my payment stubs for the last 2+ years it shows that my employer has been deducting social ... A: As long as there has been SS withholding on your W-2, you are going to be fine. You will get credit ...
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| IRA early withdrawal exception | 8/1/2006 |
Q: Your response was very helpful and incredibly fast. I checked my return for 2004 on Turbotax and I ... A: John, you cannot just take out the $3,000. You MUST use form 8606 and prorate the non deductible ...
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| IRA early withdrawal exception | 7/31/2006 |
Q: I’m in a situation where I can’t find any answers and thought you might be able to help: Three ... A: John, first of all, ONLY if your income was too high, could you not deduct that IRA. Saying that, ...
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| Taxes and family | 7/28/2006 |
Q: I am 19 years old and living at home with my mother in Minnsota. I've had 4 jobs in the past 4 ... A: Matt, re your taxes - look at your W-2 form in the federal box. That is the only amount you will ...
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| rental houses | 7/27/2006 |
Q: Here is my situation. I have a freind who is willing to pay all closing costs, taxes, and mortgage ... A: If he is paying the mortgage, etc, YOU cannot claim it. Even tho the loans are in YOUR name, YOU ...
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| capital gains & losses | 7/18/2006 |
Q: My domestic partner became psychologically disabled in 2001 (he's been on social security disability ... A: Since he is already in audit, you want to make sure your numbers are good. If he knew how he bought ...
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| Income property | 7/10/2006 |
Q: I am told that if i sell a rental property and don't do a 1031 exchange, I will be taxed on my ... A: Your downpayment has NOTHING to do with anything. You take what you sell it for (less closing ...
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| Need to understand 401K withdraw, disability and SS Taxes | 7/9/2006 |
Q: My husband had brain surgery for a tumor(cancer) last Nov. He is totally disabled now and can not ... A: Robin, you have a very involved post and it is too involved for this forum. Your best bet is to ...
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| Dependent Working Summer Job | 7/7/2006 |
Q: My 17 year old son is going to be a senior in high school he is working a summer job and has about ... A: Yes, until he is 19, you can claim him no matter what. After 19 - he has to be a full time student. ...
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| inheritance of property | 7/6/2006 |
Q: My mother recently died and herthe deed to heer home was transferred to me upon her death. Her ... A: Your basis is her date of death value. If you sell for less than that, you may have a loss. If you ...
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| Capitol Gains or Income Tax?? | 6/30/2006 |
Q: I am a general contractor and Im thinking of building a few spec homes in my area. These homes would ... A: Jim, this looks a lot at intent. If this is going to be an ongoing portion of your business, then ...
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| Sale of Home Tax | 6/26/2006 |
Q: She couldnt afford the up keep of the house on her income. She is now renting. What are good ... A: That might be enough, if her income changed after she purchased the home. If so, she can prorate ...
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| inheritance tax from a friend | 6/21/2006 |
Q: what if that person was in nigeria?--55%?whyif you recieved 12 million dollars from a person who ... A: Now I'm worried, about you. I think you are being scammed and you need to get out of it right now ...
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| Home sell | 6/21/2006 |
Q: Helen: I have the following question (It is hard for me to figure it out) We bought the property ... A: Sure, your basis is not going to change just because you got married. I'm going to assume a ...
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| Sale of rental property | 6/15/2006 |
Q: We have a rental property that we've been unable to rent for 6 months now. Fed up, we are now ... A: There is no exclusion for not being able to rent a place. If you sell a rental and you have profit, ...
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| Schedule C question | 6/14/2006 |
Q: I am a small time entrepreneur and have several small businesses running - each is a sole ... A: 3 businesses = 3 Schedule Cs Especially since they are not all alike. For example, I have a tax ...
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| house sale | 6/12/2006 |
Q: This has me really bugged. here goes. we live in fla and want to sell our home to our daughter. am ... A: If you sell your home to your daughter at a close to fair market value, and you have lived in it for ...
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| Donations and tax deductions | 6/9/2006 |
Q: O'Planick I am a sculptor, and recently another sculptor told me that his tax accountant told him ... A: Anyone can donate cash, items, etc up to 50% of their income and deduct it, and any more than 50% is ...
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| IRA Annuity Beneficiary | 6/8/2006 |
Q: I am the beneficiary on 2 of my father's Qualified Annuity/IRA accounts. My father passed away ... A: You cannot roll these IRAs into your name and probably not to another account, as your father must ...
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| Writing Off Personal Expenses For Career Development | 6/7/2006 |
Q: O'Planick, Thank you for taking the time to answer my question. I think it's probably a pretty ... A: Not as simple as you may think Matt. If you are required to take CPE, then yes, it is a deduction. ...
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| loss on the sale of rental property | 6/6/2006 |
Q: My wife and I are selling a condo we have rented and owned for over one year. We are anticipating a ... A: I don't understand your question. If you are saying after the sale you will owe your lender $10K, ...
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| Tax write-off for Volunteer time at Nursing Home | 6/2/2006 |
Q: My 87 year old Mom is in declining health and in a Nursing Home for the past three years in Michigan ... A: Your only compensation is a good feeling about helping your mother. Sorry to say but that is your ...
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| Unallocated Alimony/child support Payments | 6/1/2006 |
Q: Helen, I know for a fact that there is a difference between "allocated" and "Unallocated" ... A: Child support is never deductible. If your divorce decree or other written instrument or agreement ...
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| Write off a leased car for my business. | 6/1/2006 |
Q: I have a small business (inc) in FL. I want to get a new car and lease it to my business (basically ... A: Mike, it is not a yes or no answer. There are many factors that have to be considered. However, I ...
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| Unallocated Alimony/child support Payments | 5/31/2006 |
Q: I was officially divorced on 3/16/04. My divorce stated that I was to pay Unallocated Child support ... A: First of all, allocated or not, you were informed incorrectly. Child support is paid first, never ...
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| self employmentt | 5/28/2006 |
Q: I am a self employed consultant and have a relationship with a firm whereby they provide me with a ... A: I'm not sure I understand your question, but if your 1099 is equal to the amount of money you ...
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| 401(k) withdrawal, part II | 5/14/2006 |
Q: I am surprised that you stated that I stand to pay 50% of my withdrawal in taxes, holy smokes, that ... A: Brian, up to 50% can easily be lost if the money throws you into a higher bracket and especially if ...
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| 401(k) withdrawals and taxes | 5/14/2006 |
Q: This is myI have a 401(k) from a past employer and I do NOT want to rollover the balance. I want to ... A: If you were older than 55 when you left that employer, federally you will just pay tax on it. If ...
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| Capital Gains Question | 5/7/2006 |
Q: " My elderly Father recently came to live with me because of dementia. He has a condo in Cocoa, ... A: Nick, if you sell the home, you owe capital gains, no matter what you do with the proceeds. And ...
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| capitol gains | 4/25/2006 |
Q: I have 2 questions, Two years ago I sold my house and moved in with my dad who has alzhimers. I ... A: You are not in IRS hell, however, if the GROSS sales price of your stock sales in 2004 are more than ...
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| capital gain | 4/22/2006 |
Q: I am about to put my house on market. I have lived in this for 1 year 9 months. Now, I am moving to ... A: Sorry, no email responses. Free advice is at least worth the time to go and get it. If your new ...
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| Education Deduction | 4/21/2006 |
Q: If my parents paid for graduate school last year, but did not claim me as a dependent, can I claim ... A: You can claim your grad school expenses. Gift tax really has nothing to do with anything here ...
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| Dependent filing | 4/21/2006 |
Q: Planick, I'm 28 year old computer analyst who makes 37,500 a year. When I went to file my son on my ... A: Next year, file as soon as you can. For this year, snail mail your correct return (claiming your ...
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| Tax Consequences for me During Sale of Ex-Wife's Home? | 4/16/2006 |
Q: Helen, My Grandmother's name! Thanks for taking my question. My ex-wife and I are still friendly. ... A: Michael, this sounds fishy. It sounds like she is trying to launder money thru you and I'm not ...
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| is this illegal? | 4/14/2006 |
Q: I work for a small business. I asked my boss for a W-2 and he said that he didn't have it. Well to ... A: You need to call the IRS immediately. The number is 1/800-829-1040. Hopefully you have all your ...
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| Can legal fees be deducted? | 4/13/2006 |
Q: I'm curious if you can deduct legal fees incured during a year if they are related to your home / ... A: Terre, taxes are income producing or reducing, so that is the reason for the deduction. If you ...
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| filing extension | 4/12/2006 |
Q: My wife inherited some money, but the IRS is investigating the tactics that the estate's lawyers ... A: Tough one. If you have the money now, you could pay it now and then apply to get it back. HOWEVER, ...
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| rental question | 4/12/2006 |
Q: i have one rental property...my question is: the total rent I received for 05 was $8100... I used ... A: If this is the first year of being a landlord, I STRONGLY suggest seeing a tax professional to get ...
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| Medical Expenses | 4/11/2006 |
Q: I had tax question. My mom suffers from severe form of degenerative arthritis. Her doctors ... A: First hurdle is getting the doc to write a prescription for the pool. Once that is done, you have ...
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| Investment Property | 4/9/2006 |
Q: In 2005, I purchased two investement properties both of which are financed (normal mortgages). ... A: The property taxes are deductible on Sch A. The interest is, as INVESTMENT expense, limited by your ...
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| tax advantage in home owning | 4/8/2006 |
Q: I am now retired and still paying on a mortage. i have enough money to pay off my mortage. My ... A: First of all, you cannot deduct the investment income from your return, that is taxable income to ...
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| My husband passed away last... | 4/8/2006 |
Q: My husband passed away last year, and told me once that when we sell the house we can write off all ... A: Tonja, the answer is maybe. But I have some questions for you first. What state do you live in and ...
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| property | 4/6/2006 |
Q: My parents gave me a peice of property. I had it for about 3 years. I just sold it and cleared ... A: Your cost basis is whatever your parents paid for the property and you know what you sold it for. ...
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| To: Helen O’Planick
Please... | 4/1/2006 |
Q: To: Helen O’Planick Please clarify for me the scope of the Katrina Emergency Tax Relief Act. I ... A: Frank, all I can say is go to www.irs.gov and right there on the homepage there is a link to the ...
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| Taxes on Roth IRAs | 3/19/2006 |
Q: Why did my accountant take taxes out of a Roth IRA that I cashed in to put into another fund. ... A: Ron, if you closed out ALL your ROTH IRAs and there was a loss, your tax return has been done ...
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| Tax | 3/17/2006 |
Q: My wife and I are both over sixty five, we are both retired and our only income is from social ... A: Jim, I don't practice in CO, but I would suggest contacting the IRS and get a verification of ...
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| sale of stock - personal income taxes | 3/16/2006 |
Q: My mother had some stock she received from her mother many years ago. The company was purchased by a ... A: If she cannot come up with a basis (and that would be her mother's basis) then the IRS is more than ...
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| sale of property - tax | 3/8/2006 |
Q: !! Own two homes. Purchased one in 2001 for 215K, lived in it until March 2004. It has been a ... A: Gary, there is no rollover provision allowed. So if you sell your current home before the 2 years ...
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| Capital Gains | 3/5/2006 |
Q: I would like to know if I can "share" the capital gains exclusion by putting my partner on the deed ... A: The only way to add someone onto the home is to do it now and then live in it for another 2 years. ...
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| HELP: FILING STATUS/DEPENDENTS/EIC | 3/3/2006 |
Q: I NEED SOME ADVICE BASED ON MY HOUSEHOLD TAX SITUATION. IN 2005 MY SISTER AND HER 2 TEEN CHILDREN ... A: Rob, first of all, a little bit of internet kindness. Posts in all caps are very hard to read and ...
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| Garnishing wages | 3/2/2006 |
Q: A friend of ours was way behind on filing and paying his federal income tax. He is trying to get ... A: The IRS cannot garnish his entire wages. And child support cannot either. His payroll department ...
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| business losses | 2/28/2006 |
Q: I remember reading once (but cannot find the info now) that there is a limit to the number of years ... A: Any business ran at a loss for 3 out of 5 years, the IRS can come and look at and possible ...
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| Itemized Deduction | 2/18/2006 |
Q: I am married filing joint return and itemizing deductions as well. - I have a medical insurance ... A: If your premium is paid with after tax dollars, it is a medical expense. If paid with before tax ...
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| tax on inheritance | 2/13/2006 |
Q: My sister died in 2005 and had named me as beneficiary on an IRA. When I received the settlement, I ... A: Short of having the trustee reissue the 1099 (and good luck with that) you are responsible for all ...
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| "Prize" winnings? | 2/11/2006 |
Q: I won some TV/stereo equipment from American Express during a "rewards points" promotion in 2005. ... A: You just need to have proof that the real value is lower then the 1099, then you put on line 21 - ...
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| Income tax | 2/11/2006 |
Q: I have been renting a home from my son for the last 3 years. I now must retire (almost 65). My son ... A: Your basis is your son's basis (what he paid LESS depreciation). If there is a profit, it is 100% ...
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| Federal Tax | 2/10/2006 |
Q: This may seem like a dumb question. I am 56 years old and semi-retired on disability. I receive ... A: Dan, there is a very good chance you do NOT owe money, but I can tell you why you only had $5 ...
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| capital gains tax | 2/8/2006 |
Q: I am very new to investing in the stock market and have been doing some reading about taxes. If I ... A: Jeff, I'm going to send you two places, one is www.irs.gov and the other is www.fairmark.com. ...
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| Tax allowances | 2/8/2006 |
Q: I have quick questions regarding the number of allowances I have set up on my w4. I have one job ... A: Ronan (nice name, btw), I really can't tell you if you are doing things correctly without seeing ...
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| 1099-Misc & Elderly/Disabled Credit? | 2/7/2006 |
Q: My husband received a 1099-Misc form it was listed as Box 7 non employee compensation sum $581.25, I ... A: Since the job was a one and done thing, just list it as other income on line 21 of the 1040. ...
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| 1099-misc????????? | 2/4/2006 |
Q: yes i was a renter. the city purchased the property and evicted me. they paid each resident ... A: Now I can help. :) I don't know if the money you got is taxable or not. That would require ...
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| 1099-misc????????? | 2/2/2006 |
Q: i received a 1099-misc form from my city because i was forced to move under the eminent domain ... A: Sam, what did you sell? Your home? I think you are going to have to amend your return, but I ...
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| I was divorced this past May.... | 1/29/2006 |
Q: I was divorced this past May. My ex-husband is collecting Social Security disability and has been ... A: If your ex is not normal retirement age, his pension may be able to be treated as wages. I would ...
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| Dependants | 1/23/2006 |
Q: I have 2 questions: 1. My wife had zero income for the year, can I claim her as a dependant ... A: Tyris, your wife is NEVER your dependent. You will file jointly, even tho she had no income. And ...
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| college | 1/22/2006 |
Q: my dad is opening a business in a couple of months and would like to hire me as his business ... A: I would caution you to continue working for him a few years after graduation. Also, if the business ...
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| will i get money back? | 1/17/2006 |
Q: I pay child support and i owe some as well. I want to know that if i claim my two children will i ... A: There is no way of telling you if you will get money back or not or if you should claim your kids or ...
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| car donation | 1/16/2006 |
Q: I donated my car to a charity last June. I received a form on their letterhead which acknowledges ... A: As long as the value of the car (and what you are claiming) is $500 or less, you are okay. If the ...
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| Dependent laws in divorce | 1/15/2006 |
Q: I really hope you can help me; I can't seem to find my answer anywhere and I don't really think the ... A: Shelly, the only way those kids would NOT make her head of household is if they are working and ...
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| W-4 Tax Withholding | 1/11/2006 |
Q: This is an easy question, I claim more exemptions on my W4 form than I really have, I'm single, but ... A: Mike, you are doing nothing wrong. However, the more allowances you claim on your W-4, the less ...
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| tax on a lump sum gift | 1/10/2006 |
Q: Helen, I heard about the 2006 annual exclusion of $12,000...why is this not applicable? Also, my ... A: You did not mention that your mother was not a citizen. Knowing this, any taxes she would pay you ...
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| Divorce Situation | 1/8/2006 |
Q: My husband and I file jointly. He pays regular child support to his ex-wife who does not work. He ... A: Molly, it does not matter if she works or not. I'm not sure who has the 8332. If she signed it ...
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| federal and International | 1/8/2006 |
Q: Do you, by any chance, know the Federal and/or International Laws regarding personal collection of ... A: If you are a US citizen, you are taxed on your income worldwide and for the US citizen, it is ...
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| Additional income and deductions | 1/3/2006 |
Q: I have a full-time job, but I am also doing freelance graphic design work on the side. I will need ... A: Matt, you will use Sch C and probably SE for your freelance income. Start with those two forms and ...
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| 18 yr Student | 1/3/2006 |
Q: Even if she kicked me out and I don't live at home? --------I am an 18yr college student who would ... A: Then you have to look at support. But normally, a minor cannot claim themselves. If she did not ...
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| How long to keep tax records | 12/30/2005 |
Q: I live in CA. I'd like to know how long I need to keep tax filing records and back up data for a ... A: There is no set amount of time. I suggest forever, others suggest 7 years as a minimum. At the ...
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| Rent you own residence | 12/30/2005 |
Q: We have a second home, would like to sell the 1st. What is the tax liability if we were to rent the ... A: You can only exclude a sale every two years, so if you want to exclude house one and two, you need ...
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| Withholdings | 12/29/2005 |
Q: I am trying to re-do the taxes/withholdings for 2006 and need some help. We regularly give tithing ... A: There is a way to do the calculations, I don't know if you will get your desired end result but.... ...
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| Dependents | 12/29/2005 |
Q: My 16 year old daughter had a son in august of this year and is receiving help from WIC and Medi-cal ... A: Christine, my heart goes out to you, as a Mom. I know this has to be bittersweet for you. I would ...
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| newly divorced with children | 12/19/2005 |
Q: My divorce was final last month. We have 2 children-13 and 14. Both boys live with me and visit ... A: If you allow your ex to claim a child that is totally up to you unless the divorce decree states ...
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| Cable TV Writeoff | 12/15/2005 |
Q: I work for a Radio Station, and in the course of my workday activities I am occasionally asked to ... A: Unless you keep a log of every hour watching or listening and log your business hours, you are going ...
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| donations | 12/15/2005 |
Q: Can you write off for donations without itemizing and what is the percentage that you get back with ... A: You must itemize to claim charitable contributions. Your savings - whatever your tax bracket is ...
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| thanks...i have a twin sister... | 12/12/2005 |
Q: ..i have a twin sister named Jamilah. Anyway, so this will be my last question. Now i just filled ... A: As long as there is money due on the return, anyone that signed it is liable for it. So even tho ...
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| Hi-
I currently owe the IRS... | 12/12/2005 |
Q: I currently owe the IRS $2000.00 for taxes that was done in 2003. My question is if my husband and ... A: Kamilah (what a lovely name), he is as responsible as you are for those taxes. And I don't like his ...
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| tax on sale of home | 12/5/2005 |
Q: I owned and lived in a home for 26 months. I then purchased another home as primary and rented the ... A: Gary, since you lived in the home two out of the last 5 years, you are in good shape. You will have ...
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| capital gain | 11/28/2005 |
Q: In general when selling a lot (owned 20 years), say for 100,000, would there be less income taxes ... A: Lou, it depends on what Congress does with tax laws in the next 5 years. Capital gains could go up ...
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| Tax Question | 11/15/2005 |
Q: I am trying to calculate how much stock I would have to sell each year to collect $30,200 per year ... A: Long term capital gains are taxable at 15% for federal. I have no idea what CA's tax rate is. ...
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| collections | 11/1/2005 |
Q: I am a 100% disabled veteran now. I was diagnosed with a life threatening illness in 98, and ... A: The lien will not be released until the statute of limitations is up. The OIC extended the statute, ...
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| Capital gain Tax on Profit of Selling resedential House | 11/1/2005 |
Q: Sir, I live in oregon. Would you pl. let me have:::: 1)What would be State and Federal Tax on ... A: If you have lived in your home for any 2 out of the past 5 years and had no business use, you can ...
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| corrected 1099 | 10/28/2005 |
Q: I worked for a company in 1998 that is no longer in business. I never received their ... A: You need to get a copy of the transcript to show SSA that the money was taxable to you, not your ...
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| back taxes | 10/11/2005 |
Q: I am engaged to be married to a man who in the past with his ex -wife did not file tax returns for ... A: You are NOT liable for any of his back taxes, however if you file jointly without using the injured ...
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| Capital Gains - Stock Sale | 10/8/2005 |
Q: I have a question about a stock that I received as a gift in 1998, and am selling in 2005. The stock ... A: Sorry, Pat, your basis is NOT the value of the stock on the date of the gift. It is exactly what ...
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| tax preparer career | 9/10/2005 |
Q: Would appreciate any advice on how to start a career as a tax preparer? A: The first thing to do is see if you like doing it. Call your local IRS office and ask for training ...
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| child tax credit | 9/8/2005 |
Q: I have 3 step daughters that receive social security benefits from their deceased dad. I have one ... A: My question back to you is what did your daughters do with the money? Or what did you do with it? ...
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| selling real estate investment | 9/5/2005 |
Q: I bought a rental property in April, 2002, price 82,000 including land, approx. $10,000. Sold it ... A: Since it was a rental property since 2002, you MUST claim the depreciation allowed by law for 2002 ...
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| Tax liens | 8/30/2005 |
Q: Helen, Thank You !! For your fast reply !! In answer to your question about where we live. We live ... A: Karen, contact Bob Lind of Camelback Tax Service. 602-841-5414 I don't know if Bob does offers, ...
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| Tax liens | 8/30/2005 |
Q: We have been paying the IRS regularly on installment agreements. However, we made the mistake of not ... A: Karen, take that mail you are getting and burn it. Don't even let it in the house. They are mostly ...
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| Ebay selling | 8/28/2005 |
Q: Just a quick question for you. I have some sports collectibles that I will be selling on Ebay soon. ... A: Since you are selling the entire collection, I would still go ahead and use Sch D. Collectibles are ...
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| Writing off a bad personal loan | 8/27/2005 |
Q: I was given a repayment schedule on money loaned and then the person that I lent the money to ... A: Yes, you can, but there are some IFs. IF you have a written note and IF you have gone thru legal ...
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| Ebay selling | 8/25/2005 |
Q: Just a quick question for you. I have some sports collectibles that I will be selling on Ebay soon. ... A: Pat, you do have taxable income for sure. If this is a one and only time thing (you are not going ...
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| home repairs and condo fee deduction | 8/23/2005 |
Q: My wife and I want to sell our condo apartment to our son (who lives in another state) and rent from ... A: Yes, he can write off the condo fees, but he must depreciate the repairs over 27.5 years. If his ...
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| deductions for work-related moving expense | 8/16/2005 |
Q: I am presently an itinerent scholar moving from temporary position to temporary position. I ... A: If your assignments are expected to last less then a year and do last less than a year, your ...
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| gift tax exclusion | 8/8/2005 |
Q: I understand that, currently, a gift valued at about $11,000 (this may have been increased) can be ... A: First of all, you have the right amount. Once a gift of present interest exceeds $11,000, a gift ...
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| Home Exemption? | 7/28/2005 |
Q: When I got married almost two years ago and we moved into my wife's condo, my accountant told me I'd ... A: Find thee a new accountant. He is for the most part wrong. Since you have been using it for ...
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| How much taxes should be deducted per pay period | 7/19/2005 |
Q: Don't know if I am in the right place, but here goes. I recently started working for a company from ... A: It is impossible to answer that question without your tax return in front of me and knowing a lot ...
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| 401 (k) contribution | 7/15/2005 |
Q: I would like to know what is the optimal percentage of my income I should contribute to my 401(k). ... A: Erika, there is no real number and it all varies by taxpayer. All I can tell you is if your ...
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| Student/Low income taxation | 7/10/2005 |
Q: I currently have a job paying 5.50/hr and I make about $1670 a year (I know, it's sad). The ... A: While one is never exempt from taxes, federally, you would owe no taxes on your income (if this is ...
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| Tax on mutual fund upon shareholders death | 7/7/2005 |
Q: I have had some money in Copley Fund for a number of years. This is a unique mutual fund in that it ... A: First of all, if you are not paying taxes on those gains, they CANNOT be adding to your basis. Tax ...
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| Gift of Stock | 6/29/2005 |
Q: My father has decided to present my wife and me with a gift of some company stock he received when ... A: A gift tax return is due (Mom and Dad have to do it). No tax will be owed, but since the gift is ...
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| DEDUCTIONS AND TAXES | 6/28/2005 |
Q: 1)MY FATHER PASSED AWAY RECENTLY, AND I HAVE BEEN HELPING OUT MY MOTHER WITH MANY TRANSACTIONS, ... A: I don't quite understand your first question. If you are asking if you have a tax write off for ...
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| Capital Gains Primary Home | 6/20/2005 |
Q: Helen, My wife and I found our two bedroom townhouse cramped and we needed more space. I'm very ... A: Sorry, Kris, the time to ask was BEFORE you sold. You will owe federal tax in the amount of 15% on ...
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| capital gains in wv | 6/12/2005 |
Q: If the max rate is 15%.how can i figure the exact amount.i payed $6,000.my parents payed $3,000 for ... A: Now I don't know if you inherited or not. If you inherited the land - use the value on the date of ...
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| Which Professional to see | 6/12/2005 |
Q: Helen, I'm looking to find a professional to help me with my taxes and perhaps provide some ... A: You are going to want a CFP (certified financial planner) who is also an EA or tax-knowledge CPA ...
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| capital gains in wv | 6/11/2005 |
Q: i inhereited a small peace of land.and bought a trailor for 6'000.and moved it on the land.i lived ... A: Yes, you owe capital gains at the max rate of 15%. You need your inherited land value plus price of ...
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| expected tax on sale of real estate property | 6/10/2005 |
Q: We own our own home but also own rental property that we are selling for $33150. There is no ... A: You cannot roll the profit from the rental property into a personal home. You may be able to do a ...
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| Tax payment for year 2005 | 6/7/2005 |
Q: I am retired and do have my taxes taken out every month from my retirement check. I have just sold ... A: Mike, if you sold the stock in June, your $6000 is due in the September payment, so you can make ...
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| Capital Gain & Lost | 6/2/2005 |
Q: In the year 2002 I had a stock lost of $5,000 and I claimed the $3,000 lost on my 2002 Federal Tax. ... A: If your income was under the filing requirements (without the loss) it did not wipe it out. You ...
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| Capital Gain & Lose | 6/1/2005 |
Q: In the year 2002 I had a stock lost of $5,000 and I claimed the $3,000 lost on my 2002 Federal Tax. ... A: While, if you filed in 2003, you should have shown it, you do not lose it. There is a worksheet in ...
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| taxes on investment property | 5/25/2005 |
Q: You are always so helpful! We have ANOTHER question for the EXPERT! We have been in touch with an ... A: Joan and Gary, You might want to check with the Better Business Bureau too, but those type of ...
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| Investment vacation property deductions | 5/24/2005 |
Q: Helen: I am considering purchasing a vacation home and renting out for income. I do not have a lot ... A: Gary, you can use it the lesser of 14 days or 10% of the rented time in order to keep it a rental ...
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| assessment fees on property | 5/23/2005 |
Q: We have another question for you... The property that we are building on has assessment fees for ... A: that world famous Cabana Boy!). It really does not matter as assessments are not deductible, they ...
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| Wrong end of Bankruptcy filings | 5/18/2005 |
Q: I have two basic questions: 1 If I received a judgement from state court for $60k and then the debt ... A: The first one is easy, you got a judgement, you can take the loss, on Sch D and yes, subject to a ...
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| tax deductions/dependents | 5/12/2005 |
Q: for the last 3 years i have been the sole supporter(paying rent,utillites food,medical ect.)for my ... A: You cannot be head of household, your daughter does not live with you. If her income is under ...
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| Employee vs. Contractor for Store Credit | 4/27/2005 |
Q: I am arranging with a store to catalog their inventory for $x.xx per item, work to be done on the ... A: No matter how you get paid, it is still income. Whether you receive a 1099 or a W-2 - that would be ...
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| Independent Contractor tax payments | 4/21/2005 |
Q: Please help me to win (hopefully) or lose a bet. I have a friend that recently began a new career as ... A: Well, this may or may not be a bet breaker - but.... The answer is it depends. If she has other ...
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| schedule d | 4/15/2005 |
Q: i have a few questions regarding my capitol gains and losses. i own stock in Giftrust, mutual fund, ... A: Your basis starts at $100 and is added to each time you put money in it or the dividends reinvest. ...
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| Depreciation | 4/13/2005 |
Q: I was told I did not need the deduction in the years skipped because I did not not make very much ... A: You were told very wrong. Now you have to calculate all the depreciation that was missed with a ...
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| i have self employment , &... | 4/5/2005 |
Q: i have self employment , & a employee for a company. i have back taxes owed to the irs i also claim ... A: My answer to you is find a tax professional you can work with. That way you know you are getting ...
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| Income Tax Form 1040 | 4/4/2005 |
Q: Followup To Question - My 1099-DIV forms show the same amount in boxes 1A Ordinary Dividends & 1B ... A: Tom, if you follow every line and every instruction you will see you are not paying the taxes twice. ...
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| gambling winnings and losses | 4/2/2005 |
Q: I hit several big jackpots this year here in Las Vegas where we live, so I contacted every casino I ... A: ANY winnings are taxable, even the 2 bucks you get for a couple of cherries. Your gains go on line ...
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| gambling taxes | 4/1/2005 |
Q: I have 3 W2 forms from a casino. One for 4000 that I paid taxes on. One for 4000 I did not pay taxes ... A: You claim ALL your winnings (not just the 1099ed amounts) on line 21 of the 1040 and you claim all ...
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| Income tax fees | 3/31/2005 |
Q: I just recently had my income taxes done by a professional preparer. The fee was $300 for Fed. 1040 ... A: Dick, more importantly, do you think it was fair? In my area, you were overcharged (in my office, ...
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| State tax requirements | 3/30/2005 |
Q: I live in PA but own a rental property in DE. I just bought the property in 2004. Where do I report ... A: Ah, West Chester huh? Know anyone wanting to hire a very professional young lady graduating from ...
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| planning on seeling a piece of land | 3/30/2005 |
Q: I am new to your site and I find it very interesting and informative! I see a lot of answers that ... A: It's true. If you wait a year and a day after buying it, it is a long term gain and only taxed at ...
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| Online classes | 3/30/2005 |
Q: for which i get a in-line summary receipt of paid tution? Can I use these for my taxes? My online ... A: My first reaction is what a campus... but I would want to be there, not on line. ;) If this an ...
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| capital gains on home sale | 3/27/2005 |
Q: I bought a house fours ago when i was single. I got married a year after the purchase and my wife ... A: Adding her to the deed now is only going to make you keep that house another 2 years. I think you ...
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| state income tax refund and wash sales | 3/24/2005 |
Q: I have 2 questions regarding my 2004 federal tax return. #1.) My ex-wife and I received a $690 state ... A: I would divide the state refund. As for the wash sales, you need to account for each one as they ...
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| Consultation taxes | 3/20/2005 |
Q: I just recently took a job as an educational consultant for a non-profit organization in ... A: Being non profit and not taking taxes DO NOT go together. If you are an employee, they MUST ...
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| Government EE Bonds | 3/13/2005 |
Q: We purchased bonds for our children's education with the understanding that we wouldn't have to pay ... A: Without seeing the return, this is a shot in the dark. If the bonds were in YOUR name only, and ...
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| Sale of Rental Property | 3/12/2005 |
Q: I bought a property in 1979 and I sold it last year. I am using form 4797. I have depreciated the ... A: You have to follow the lines of the form. Your depreciation will end up taxable, the finding from ...
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| withholdings | 3/12/2005 |
Q: I am a divorced male and made about $90,000 last year, but with my deferred 401k contribution, it ... A: First of all, I concur what your advisor said. Stop giving IRS such a large loan. There is an easy ...
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| IRA-Required Distribution | 3/10/2005 |
Q: ------------------------- Followup To In 2004 she did take out enough to cover both years. What ... A: Since she took enough in 04 to cover both - file 2003 with a statement saying that yes, she was ...
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| Adjusted Basis | 3/4/2005 |
Q: O'Planick, I have two possibly related tax questions: 1. I sold a vacation home this year, in ... A: Good morning. On question one - this related "stuff" was deductible in the year of the repairs and ...
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| Minimize impact of early distribution of 401K. | 3/4/2005 |
Q: In late 2003 my wife almost died. She survived, but now has colon cancer so future is unknown. I ... A: John, I feel for you. I agree with you that you and your wife should do what you want to, but if ...
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| sale of finace's home | 3/1/2005 |
Q: My girlfriend and I are due to be maried this June. She is selling her home to move into mine. ... A: Congrats on the wedding. Since she is selling in 2005, the sale is reportable on your 2005 return. ...
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| employer not paying in payroll taxes. | 2/26/2005 |
Q: my employer took taxes out on the 4 of us. he never paid any in. we have been dealing with him ... A: File your taxes with your paystubs. The W-4 means nothing. There is a form on the IRS website ...
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| Mortgage Interest Deduction | 2/23/2005 |
Q: If I consolidate 2 or 3 rental property mortgages into one loan, can I still deduct the total ... A: Sure. How? - the word is proration. If property 1 was owed $40K and property 2 owed $25K and ...
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| DEPENDANT CHILD, MORTGAGE & TOOL EXPENSE QUESTIONS | 2/12/2005 |
Q: I am trying to do mine and my boyfriends taxes and I am having the worst time. First off, I will be ... A: First of all, a good amount of support does NOT count. It must be over 50% of the support of the ...
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| Deductions | 2/9/2005 |
Q: I am a professional chef in the hosptality industry. I am 22 years old. I was wondering what ... A: Louis, please send two months worth of meals... I don't have time to cook during tax season. ...
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| Second Home Residency | 2/8/2005 |
Q: How many days/weeks/months per year is one required to live in a second home for it to qualify as ... A: I don't post on any public BB except AOL where I am the Tax Expert and then I don't do the postings, ...
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| IRA Basis? | 2/8/2005 |
Q: I'm using TurboTax and its asking me for my IRA basis. Here is my situation. I worked for Bank of ... A: You do not have a basis in the IRA as you put in no after tax money. And only the first $10,000 is ...
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| Married filing separately | 2/6/2005 |
Q: I want to determine what our tax liability will be if we file “married filing separately”. I am not ... A: Tom, I'm going to tell you right now that if you have rental property, and you file separately, you ...
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| tax | 2/2/2005 |
Q: -How does letting the statute run or die work?In addition to a compromise and settlement, I had ... A: Die is you dying...but then the IRS can come after your estate. Statute is normally 10 years after ...
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| Elder needing IRA money after missing RMD payments | 1/28/2005 |
Q: Yes, the RMD penalties are unspeakable and only really apply to pre-Roth IRA's, which is all she's ... A: No, you can't backdate income.... She needs to take out the 3 years worth of RMD and in 2005, when ...
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| Dependent or Independent? | 1/27/2005 |
Q: I'm a 2nd Year college student with a part time government job (as a independent contractor), my mom ... A: ) Mom will probably fair better if she claims you as a dependent, but do it both ways and see. ...
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| School Loans/Dependents | 1/26/2005 |
Q: Before I married my husband he owed a school loan, it is now in default. He has been laid off for ... A: Unless you live in Ohio, MFS is really hurting you. What you need to do is file jointly, but add ...
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| filing taxes | 1/25/2005 |
Q: I purchased a house with my father. I paid all costs (downpayment, closing costs). I pay the ... A: Whomever is responsible for the mortgage (and it looks like your dad is) is the one that can deduct ...
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| Forgiveness of debt | 1/22/2005 |
Q: I have several bad credit card debts which I have been in the process of paying off. I have been ... A: Can you have them retract the 1099C? Check with a lawyer on that. Is it income? Yes, you have ...
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| How do I File? | 1/21/2005 |
Q: My Fiance and I moved in together in Febuary of 2004.The state I reside in is Florida. Florida is ... A: He will give you a 1099 and to be honest, that is a tad shady, you should have been an employee. ...
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| claiming a child | 1/21/2005 |
Q: I am a divorced mother of a 4 year old with primary custody. There is a schedule worked out with ... A: While he can, it would not be legal unless you give him permission. However, if he files first, ...
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| Taxes | 1/16/2005 |
Q: I've recently started in commercial real estate and just received my first commission check, ... A: Congrats on your first sale! You will file Sch C and SE with your tax return (those are found at ...
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| taxes | 1/12/2005 |
Q: Helen, Regarding the amount of taxes I would pay, Is it worth it to build two homes as an ... A: Joe, there is no way I can help you make that decision. However, no one ever pays 100% in taxes, so ...
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| Willfully not filing of federal income taxes | 1/7/2005 |
Q: What are the penalties/punishments for neglecting to file your taxes? This individual owes me ... A: The sad part is that if he is due a refund, he has no obligation to file and you don't get your ...
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| Gains on sale of land | 1/4/2005 |
Q: I have two pieces of land that I am selling soon in Florida. I have had the land for twenty years ... A: Unless you exchange them with a qualified exchange, there is nothing to do to defer the gain. If ...
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| buying a home with parent | 12/27/2004 |
Q: i would appreciate any info you can give me on the subject of buying a home and being partners with ... A: As long as she is a joint owner, what she pays in mortgage interest and taxes are deductible by her, ...
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| Dual use of SSN # | 12/11/2004 |
Q: A few years back, the IRS told me that a SSN number I used had beeen used twice, with pentalies, and ... A: It really depends what tax year you are talking about. If not 2003, 2002 or 2001; nothing can be ...
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| Nanny Taxes | 11/27/2004 |
Q: I hold 2 part time jobs as a nanny, for 2 seperate families. They both pay me tax free, but with ... A: If you are working in their homes, THEY are your employers and must withhold SS taxes and medicare ...
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| t | 11/20/2004 |
Q: I have a coop in NYC. I have lived there for <2yrs and it has been my primary residence. If I sold ... A: If you are selling just to sell, you will pay capital gains, no matter what you do with the money. ...
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| tax write offs for refinancing | 11/14/2004 |
Q: This will be my second time refinanicng in the same year for the same house. Can I write off the ... A: The ONLY thing you can write off is your points, none of the other costs count. So you can write ...
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| child tax deduction | 11/12/2004 |
Q: The decree did state he can take the deduction. We had an agreement (not in the decree) that if he ... A: Sorry, but the divorce decree holds all the water he needs it to hold. If you can get it modified ...
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| tax write offs for refinancing | 11/11/2004 |
Q: I'd like to know if I can write off part of the closing costs when doing refinancing. They are ... A: First of all,I'm assuming this is your principle residence and not a rental property. If my ...
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| mileage deduction | 11/2/2004 |
Q: Helen, I know the mileage deduction is 36.5 cents, but my question is the actual deduction. Do I ... A: You don't tell me if you are self employed or an employee. If you are an employee, you must itemize ...
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| How long to keep records? | 11/2/2004 |
Q: I'm cleaning my files & wondered how long records such as utility bills, credit card bills should be ... A: If the bills you are collecting have nothing to do with taxes, pitch them after a year or so. If ...
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| Capitol Gains | 10/16/2004 |
Q: My brother and I purchased a 3 Family home in 1987. We each lived in a unit and rented the third ... A: Basically, you are looking at your sales price less your purchase price (which is reduced by the ...
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| A total of seventeen days...
-------------------------
... | 9/17/2004 |
| Q: A total of seventeen |