| Subject | Date Asked |
|
| Dependent question | 11/20/2009 |
Q: I have been taking care of 3 people for the last 8 months including taking care of my son. Can I ... A: If you didn't earn enough money to file a tax return you would get no benefit from claiming any or ...
|
| Dependents claimed twice | 11/11/2009 |
Q: I apologize in advance that I can be long winded. Here goes: For tax year 2008. My current ... A: Since the children lived with Jane, Joe could claim their dependency but not claim them for Earned ...
|
| head of household questions | 11/10/2009 |
Q: Household 1: Mother works. Has a live-in babysitter that gets paid by the state to babysit. Can the ... A: 1. No mom cannot file as head of household unless she has a dependent who lived with her all year. ...
|
| Tax preparation | 11/10/2009 |
Q: For the past about 10 years I have been using the H%26R Block, last year I had to pay a penalty ... A: First of all, if you were charged a penalty because of something H&R Block did wrong, they will pay ...
|
| comm. chargebacks | 11/8/2009 |
Q: I work on 100% comm. And if clients don't make 6 monthly payments I get "charged back" on the money ... A: If the income and the charge back occur in the same year, it would not be deductible. If the income ...
|
| 401K | 11/6/2009 |
Q: Tax wise is it a good idea to pull a 401K out now to purchase a home when you are over 60 and what ... A: If you withdraw money from a 401(k) you will pay ordinary income tax, at whatever rate your total ...
|
| 401k | 11/2/2009 |
Q: Carole, Are there any Tax and Penalty exceptions when cashing out a 401k to purchase farmland? A: In order to avoid tax you have to roll the 401(k) to a Traditional IRA or another employer's ...
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| Optimize Moving Package | 10/31/2009 |
Q: I am being relocated across the country and have been given a generous moving budget. I can cash ... A: If the income is reported to you and you take the moving expense adjustment to income, you can only ...
|
| taking care of mother | 10/28/2009 |
Q: My mother is in assisted living at present. I am planning on quitting my job to take care of her in ... A: She can pay you with a W2 and withhold social security and medicare and pay her share of social ...
|
| capital gains on sale of inherited land | 10/27/2009 |
Q: I inherited 1/4 share of undeveloped land in NM 17 years ago. All owners recently sold an acre. What ... A: You will pay long term capital gains tax on your gain. Your gain is the difference between the sale ...
|
| First house tax exclusion | 10/20/2009 |
Q: My wife and I have a house we have owned and been living in it for 18 years. We just bought a condo ... A: As long as you have owned and lived in it as your main home for 2 years preceding the date of sale, ...
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| Tax on land sale | 10/13/2009 |
Q: I am selling some land that my Grandmother left me 12 years ago. I will make about $150,000.00. I ... A: Your cost basis in the land is the fair market value on the date of your Grandmother's death. You ...
|
| capital gains | 10/11/2009 |
Q: My mother gave me her mobile home no land and I was going to sell it for 8500 I have had it for 1 ... A: Your cost basis in a gift is generally what the donor paid for it. However, if the fair market ...
|
| New to being paid with a 1099 | 10/9/2009 |
Q: I am retired now and was always paid with a W2. A part time job may be in my future although it is ... A: You will report the income reported to you on a 1099MISC as self employment income on Schedule C or ...
|
| employment abroad | 10/8/2009 |
Q: I am a US citizen and work for an international company abroad. My salary is less than $ 90,000.00 ... A: Yes, as a US citizen you are required to report all your income whether or not it is taxable. ...
|
| Capital gains tax | 10/5/2009 |
Q: I have occupied my residence for the past 7 years, but I have only owned it for 13 months. If I sell ... A: In order to deduct moving expense there is a distance test. The distance between your new job ...
|
| Rental Property | 10/5/2009 |
Q: My father is over 65 and receives VA disability, social security, and a very small pension. He does ... A: He is required to report his rental income and expenses on Schedule E. Deductible expenses include ...
|
| Tax on 1099 | 10/4/2009 |
Q: I am an Indian student. I graduated in Dec 2008 after doing MS in Computer Engineering. I am right ... A: You report the 1099MISC income on Schedule C or C-EZ. You also deduct your expenses from this ...
|
| renting out house to daughter | 10/4/2009 |
Q: I would like to buy a second house that my daughter can rent while in graduate school. I would have ... A: Technically it wuuld be a rental property and you should report your rental income and expenses ...
|
| Capital gains tax | 10/3/2009 |
Q: I have occupied my residence for the past 7 years, but I have only owned it for 13 months. If I sell ... A: Yes you would be subject to capital gain tax unless you move for reasons of health, employment or ...
|
| Tax audit and liability | 10/3/2009 |
Q: I recently received a letter from the IRS indicating that I will be audited. I had my taxes done by ... A: There are no hard and fast rules that make your accountant pay for any errors he made on your return ...
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| Tax Deductions | 9/30/2009 |
Q: I work in the outdoor industry for a hunting clothing manufacturer. We are developing new products ... A: If you are an employee you can deduct it as an unreimbursed employee business expense to the extent ...
|
| Timing of tax payments on stock sales. | 9/17/2009 |
Q: I haven't been able to find the answer to this question myself. My wife and I have always had most ... A: We're required to pay our taxes as we go. You can do this by making quarterly estimated payments ...
|
| Taxes on Sale of Residence | 9/17/2009 |
Q: Mom sold her house in NJ for $450,000 yesterday, she is a widow, my dad having deceased in 1998. Mom ... A: Her cost basis will be increased by the death of your father. Half of the home would be increased ...
|
| Inherited IRA in trust that was inherited | 9/16/2009 |
Q: My disabled sister(in her 40’s) recently passed at age 46 and I was left 1/3 of a irrevocable trust ... A: While you cannot roll it to your own IRA, you can roll it to an inherited IRA. My stepdaughter ...
|
| sale of a portion of our farm property | 9/14/2009 |
Q: We live in Wisconsin, and are trying to sell 17 acres of our farmland and use the funds to build our ... A: If you sell the land this year the maximum tax rate for long term capital gains is 15%. There has ...
|
| Using 401K plan to pay mortgage | 9/11/2009 |
Q: Some facts: Lost my VP of Sales job in Jan. 2009. Receiving unemployment, paying personal health ... A: There is no provision in the law to avoid the 10% penalty because of a financial hardship. If you ...
|
| withheld question? | 9/8/2009 |
Q: What does it mean when you hace taxes withheld? what is it for ? and what does it man? And wahts the ... A: Federal Income Tax is withheld from wages to pay your Federal Income Tax liability. The amount ...
|
| capital gains tax | 9/8/2009 |
Q: Carole, I hope you can help answer a question for me. I am a US citizen, but I have been living in ... A: As a US citizen you are required to report your worldwide income regardless of the source. You can ...
|
| claiming dependents | 9/7/2009 |
Q: I am going through a divorce. My ex wants to claim our 2 children for our tax refund, and me to ... A: You might get more tax benefits if you claim the children. But it may be that your joint tax ...
|
| Tax on sale of rental house | 9/5/2009 |
Q: I own a house that is being rented and I'm thinking of selling. I think I can get about $250K for ... A: Yes, if you own and live in a home as your main home for 2 years during the 5 years preceding the ...
|
| Second home | 9/4/2009 |
Q: We own our home and write-off the mortgage interest. We are now thinking of buying another house ... A: If you provide more than half of her support and her income is less than $3500, you can claim her. ...
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| Second home | 9/4/2009 |
Q: We own our home and write-off the mortgage interest. We are now thinking of buying another house ... A: You can claim the interest on a second home as an itemized deduction along with the real estate ...
|
| Selling Rental Homes (Military) | 9/3/2009 |
Q: I am active duty military and bought a home while stationed in Missouri. I lived in it from fall, ... A: Here is what the IRS has to say about member of the military selling their main home. If you were ...
|
| 401K retirement distribution | 9/2/2009 |
Q: I previously ran across an article that indicated that "some" of my 401K distribution taxes could be ... A: Whenever you take a distribution from your 401k it will be taxable. If you take a full distribution ...
|
| 1099 reporting for charitable contrib to Non-Profits | 9/1/2009 |
Q: We are giving $5,000.00 to 6 different non-profits - do I need to have them complete a W-9 for yr ... A: You don't need to report a gift of less than $13,000 to an individual. You don't need their SSN and ...
|
| how much taxes to take out | 9/1/2009 |
Q: I live in florida and I just set up my corp.I need to know how much taxes I need to take out of the ... A: You need to report all money received from clients as income. You then deduct your expenses from ...
|
| Roth IRA Early Withdrawl | 8/25/2009 |
Q: My wife and I currently have a Roth IRA in which we have made fixed contributions to each month ... A: You can always remove your contributions from a Roth IRA without tax or penalty. But if you take ...
|
| 1099 | 8/24/2009 |
Q: What qualifies a person as a 1099? A: A 1099 is issued for distributions from pension plans or IRAs or for stock dividends or for Social ...
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| Capital Gains Taxes | 8/22/2009 |
Q: My wife and I are looking into buying a large dairy farm and the family that we are trying to buy ... A: They may be able to defer some of the gain since it has been their main home for 2 years during the ...
|
| Employer Pretaxed a Roth IRA account | 8/21/2009 |
Q: I am a teacher in Ga. When I was employed five years ago I signed up for a Roth IRA with American ... A: I would think that the IRS would be willing to waive the penalties since it was not your error. You ...
|
| 2nd home sale | 8/19/2009 |
Q: If a parent puts his house in his children's name and that parent dies, the children are responsible ... A: The children would need proof of what was paid for home improvements, they cannot make an estimate. ...
|
| Long Term Disability Settlement | 8/19/2009 |
Q: I understand that if I paid the premiums, they are not taxable. If the company paid the premiums ... A: If you shared the premiums with your employer benefits would be part taxable and part non-taxable. ...
|
| Tax Consequences Withdrawing Investment (various) | 8/16/2009 |
Q: My aunt was using a financial planner and, for several reasons, decided to withdraw her funds. she ... A: If everything came from a retirement account she can roll the funds to an IRA. She has 60 days from ...
|
| quit claim and a tax | 8/16/2009 |
Q: my father inlaw needs looking after, so he is going to quit claim his house to us free and clear. ... A: If your father-in-law gives you or any individual more than $13,000 this year he is required to file ...
|
| matching? | 8/13/2009 |
Q: Someone told me that whatever I take out in taxes on my workers, I have to match it. so if at the ... A: You have to match whatever you deduct for social security and medicare. You do not have to match ...
|
| Selling Stocks | 8/10/2009 |
Q: Now that I am in my late 80's I am wondering about selling the stocks that my late husband left me. ... A: If you sell the stock you will have to pay capital gains tax on the gain. The stock market in ...
|
| Selling Stocks | 8/9/2009 |
Q: Now that I am in my late 80's I am wondering about selling the stocks that my late husband left me. ... A: From your beneficiaries' standpoint if they inherit cash there is no tax. If they inherit stock it ...
|
| Capital Gains Tax | 8/9/2009 |
Q: I have owned a condo in Gainesville, Fl since 1986. I lived in it from '86 to '89. Then from '89 ... A: There are no breaks for length of time owned or anything else. Also you will have to pay a higher ...
|
| Tax liability for wrongful death/punitive damages | 8/6/2009 |
Q: My father died in January. My mother is now the administrator of his estate. She received an EIN ... A: She needs to file a tax return for the estate and report income. She will need to file tax returns ...
|
| 1040 | 8/4/2009 |
Q: i received $20,000 and it was had federal tax withheld, where does that go on 1040 IRS form ANSWER: ... A: That's correct on the withholding. You can claim either the standard deduction or itemized ...
|
| SSI-check,gambling winnings | 8/4/2009 |
Q: fellow receives an SSI benefit of about $850 monthly and is over 62 years of age,has won about about ... A: Assuming that he is single a portion of his gambling winnings will be taxable. The amount that ...
|
| Prinary address for tax return | 8/3/2009 |
Q: Carloe, I recently purchased an apartment in New York. I am a first time home buyer and will be ... A: You can use whichever address you prefer for your tax return - even a post office box. But when you ...
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| Rental Income | 8/1/2009 |
Q: I am selling my home. I have a Purchase Agreement with a buyer who has been approved by a mortgage ... A: You can exclude all gain from the sale except the portion of gain that equals the depreciation you ...
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| Insurance claim | 8/1/2009 |
Q: Does money received from an insurance claim have to be declared for Federal or State (CA) tax? If so ... A: Normally insurance claims paid to you are to replace something you lost - such as damage to your car ...
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| Rental Income | 7/31/2009 |
Q: I am selling my home. I have a Purchase Agreement with a buyer who has been approved by a mortgage ... A: Technically you should report the rental income and expenses and take depreciation on the house. ...
|
| Gift tax | 7/31/2009 |
Q: The company I work for was just bought out by another company recently and they are going to pay out ... A: The tax rate will depend upon your total income, exemptions and deductions. You would probably be ...
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| tax question | 7/30/2009 |
Q: I heard you could claim exempt on your taxes for so long, is that true and if so how long could I ... A: In order to claim exempt from withholding you must have received all withheld taxes back last year ...
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| percentage of taxes | 7/29/2009 |
Q: I'm wondering what percentage of taxes would be taken out for a cleaning service? I think all that I ... A: Your net self employment income is subject to self-employment tax (social security and medicare as ...
|
| 401K early withdraw | 7/29/2009 |
Q: I'm 56 yrs. old and recently lost my employment, I would like to cash out my 401K for living ... A: Unfortunately since you are under age 59 1/2, your distribution would be subject to a 10% penalty ...
|
| Municipal bonds in IRA | 7/27/2009 |
Q: What are the conditions for taking tax free municipal bonds out of my IRA? Can I take these bonds ... A: Any distribution you take from your IRA is taxable. It makes no difference what you sell to take ...
|
| Fed taxes on 401K Hardship withdrawal | 7/26/2009 |
Q: I'm getting a 401K Hardship distribution for $20,000, which is [all] from after-tax contributions + ... A: You will owe tax on any earnings on your after-tax contributions and on the company match ...
|
| Senior Citizen Selling Primary Residence | 7/24/2009 |
Q: Mom moved to a retirement community. She did not buy there. I just sold her house. She netted 8k ... A: As long as your mom lived in the home as her main home for 2 years during the 5 years preceding the ...
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| Capital gains on a vacation home | 7/24/2009 |
Q: I have a quit claim deed on property that was deeded to me 9-08. I already have a main home in ... A: You didn't say what if anything you paid for the property. Your gain is the difference between the ...
|
| capital gains on a house | 7/23/2009 |
Q: my brother and i own a house since our mother is now in the nursing home. we have purt closr to ... A: Yes you have to pay capital gains tax on any amount of gain. To determine your gain you deduct your ...
|
| self-employed taxes | 7/22/2009 |
Q: My question is, I'm opening my own salon and have heard there is a way to pay taxes weekly straight ... A: You are required to pay your self employment tax and income tax on a quarterly basis. The required ...
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| Sale of land to reinvest | 7/22/2009 |
Q: My husband and I were gifted an acre of land over a year ago by family. We have decided against ... A: Unfortunately you can't escape capital gains tax by reinvesting in your first home. To calculate ...
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| Income Tax Wages | 7/6/2009 |
Q: What is the difference between Social Security wages and W-2 wages, and where can I find W-2 wages? ... A: Sorry to take so long but I was on vacation and just returned. Yes you can request your W2's from ...
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| Income Tax Wages | 7/5/2009 |
Q: What is the difference between Social Security wages and W-2 wages, and where can I find W-2 wages? ... A: Your W2 wages are in box 1 of your W2 form. Often W2 and SS wages are the same but not always. If ...
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| first time home buyer tax credit | 7/5/2009 |
Q: I have questions regarding the first time home buyer tax credit. 1. Assuming you are eligible, if ... A: The first time homebuyers credit is a refundable credit so you would get the whole $8,000. If you ...
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| IRA withdrawal for house | 6/30/2009 |
Q: I am 65 and withdrew a large sum of money to buy a house this year. I wonder if I get any tax break ... A: The money you withdrew from the IRA is taxable income. Since you are over 59 1/2 you won't have to ...
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| 401K retiremnt and taxable income | 6/28/2009 |
Q: Carole, I have 137,000 in a 401k account I owe 120,000 on my house If I retired in three months ... A: You would pay about 28% of the retirement distribution in Federal tax plus whatever your state tax ...
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| Rental property income | 6/26/2009 |
Q: I am single and I am trying to buy a house. So far I have two options: 1- Buy a big house where I ... A: You will report the rental income and expenses (including mortgage interest and taxes) on Schedule ...
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| capital gains from home purchases | 6/22/2009 |
Q: my x-husband and I built our home in Alaska out of pocket over 20 yrs ago. Bldg records are lost ... A: If the Alaska home was your main home and your owned and lived in it for 2 years during the 5 year ...
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| auto allowance and mileage reimbrusement | 6/22/2009 |
Q: my company is switching it's plan for managers. I question the following plan on whether or not it ... A: What they are planning is permissable. If they do not reimburse you for all of your mileage you can ...
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| Traditional IRA contribution when former job had a pension? | 6/21/2009 |
Q: I was covered by a pension at my former company until February 2009 when I was permanently laid ... A: Since you were covered by a pension plan for any part of the year you are considered covered for the ...
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| Adding name to a title | 6/19/2009 |
Q: My mom owns a home in RI. She wants to add me (her son) to the title. I understand she would have ... A: If she gives you half of the home she would be required to file a gift tax return. She may not have ...
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| Agent Retirement Earnings | 6/19/2009 |
Q: My husband (age 76) in an insurance agent. One of the companies he writes for has an Agent ... A: It would not be subject to self employment tax. It would be a pension payment and he should receive ...
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| Tax Implications of "Rented Residence" Sale | 6/19/2009 |
Q: My husband and I are about to finalize the sale of our house. We purchased it in 1998 and lived in ... A: You will have to pay long term capital gains tax on most of your gain (maximum rate 15%). However ...
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| DEFINED BENEFIT PENSION PLAN | 6/18/2009 |
Q: My question is this: I just received a pension election form from my prior company wanting to know ... A: Any amount you take out will be subject to ordinary income tax and, if you are under age 59 1/2, a ...
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| student exemption | 6/18/2009 |
Q: I'm a 19 year old full time student at a University and I only work during the summer when I'm ... A: You should be paying about $15 per paycheck for social security and medicare. The balance withheld ...
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| Bank IRA CD & RMD | 6/14/2009 |
Q: I have 2 Ira CD accounts with 2 different banks. I have always been able to take the combined RMD ... A: The IRS doesn't care what paperwork you fill out for your bank. They only care that you take your ...
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| Bank IRA CD & RMD | 6/14/2009 |
Q: I have 2 Ira CD accounts with 2 different banks. I have always been able to take the combined RMD ... A: According to IRS rules you can take your RMD from one account or from more than one account. Point ...
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| Forclosure or Deed in Lieu Forcloseure | 6/13/2009 |
Q: I currently owe $340,000.00 (1st & 2nd, same lender) on a house that is worth $160,000.00. This is ... A: Your best bet would be to continue paying your mortgages. Your property value should increase once ...
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| settlement Income | 6/11/2009 |
Q: What is the best way to handle the federal and state taxes at the payout - its a one time payment ... A: You need to make an estimated payment now. Make a large enough payment to insure that you will have ...
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| Life Estate | 6/11/2009 |
Q: In 1993 Mom and Dad deeded their residence to me with a life estate. In 2006 we had to sell becuase ... A: If the property was in your name you cannot shift part of the proceeds of the sale to your parents. ...
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| first time home buyer tax credit | 6/11/2009 |
Q: I separated from my husband in August 2008. We still filed jointly for the 2008 tax year. April, ... A: You should wait until you file your 2009 return to claim the credit since your husband would be ...
|
| tax on seller financed sale of rental property | 6/10/2009 |
Q: I plan to sell $110,000 rental property, already completely depreciated, so remaining basis is the ... A: Yes you can report the interest and principal payments on the property as they are received. ...
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| Sale of house | 6/8/2009 |
Q: Nine years before my grandmother died, she transferred her house deed to my mother and her two ... A: The basis of gifted property is the donor's basis - usually what the donor paid for it. Only long ...
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| home office | 6/7/2009 |
Q: My husband recently passed away. He had a home office and we claimed home office on our fed income ... A: You don't need to do anything about the depreciation on your 2009 income tax unless you will be ...
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| income tax for a deceased | 6/6/2009 |
Q: My 89 yr. old and legally blind mother-in-law is living in an assisted living institution and now is ... A: The taxes would be paid out of her estate, which includes joint bank accounts. The executor of her ...
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| income tax for a deceased | 6/6/2009 |
Q: My 89 yr. old and legally blind mother-in-law is living in an assisted living institution and now is ... A: The long term capital gains tax on the sale of stock would have to be paid either on her 2009 return ...
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| 72T | 6/6/2009 |
Q: Are there any special benefits with inheriting a 72T plan. My parents are 72 years old. Their ... A: 72t simply means that your parents are taking scheduled distributions over their lifetime. This ...
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| SS taxes | 6/5/2009 |
Q: How do we pay Social Security taxes? A: If you are an employee social security and medicare taxes are deducted from your pay. Your employer ...
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| Stock and income tax | 6/5/2009 |
Q: I am in the Army currently serving in Afghanistan supporting Operation Enduring Freedom. I will ... A: The tax will be figured only on the stock sale gain. If you kept it more than 1 year it will be ...
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| 2007 First-time Home Buyer Question | 6/5/2009 |
Q: I purchased a condo for the first time in 2007 and took an early distribution of $9k from my Roth ... A: You can withdraw your contributions to a Roth IRA without any tax or penalty. But if you withdraw ...
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| qdro | 6/4/2009 |
Q: I will be receiving half of my husbands 401k in our divorce. What are my options in taking it out ... A: The amount of income tax will depend upon your total income and deductions. If you take a ...
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| Exemption from withholding | 6/3/2009 |
Q: On the 2009 W4 under "Exemption from withholding" I'm confused about the Note statement part (b)" ... A: To claim exemption from withholding means that no federal income tax would be withheld. Your ...
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| Capital Gain Tax on Rental Property | 6/1/2009 |
Q: My husband and I own rental property in RI and have had a decrease in rental income as well as our ... A: You would have to live in the home for 2 years to be able to exclude gain on the sale of your ...
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| Gift tax? | 5/31/2009 |
Q: My mother has a CD and my brothers and I are also named on the account (I believe it is set up like ... A: That's correct. She has to file a gift tax return if she gives an individual more than $13,000 in ...
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| Gift tax? | 5/31/2009 |
Q: My mother has a CD and my brothers and I are also named on the account (I believe it is set up like ... A: Yes, if she gives each of you $13,000 she need not file a gift tax return. If she is married, her ...
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| paying into social security | 5/30/2009 |
Q: I still need 1 quarter to qualify for social security.If I pay into social security on my own while ... A: There is no way to pay in to social security unless you are employed or self employed. When you are ...
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| Gift tax? | 5/30/2009 |
Q: My mother has a CD and my brothers and I are also named on the account (I believe it is set up like ... A: If she gives you, or any individual, more than $13,000 in 2009, she is required to file a gift tax ...
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| Taxes with house... | 5/29/2009 |
Q: I currently claim 4 on my W-4, I work and my wife stays at home with our 2 kids. My question is at ... A: With the form W4 that you complete to tell your employer how much to withhold for your wages, there ...
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| Questions on business taxes | 5/24/2009 |
Q: I have started my own constrution company and i will eventually hire some employees. i would like to ... A: You will have to withhold social security and medicare as well as income taxes. Social Security is ...
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| 1099 vs W2 | 5/24/2009 |
Q: My husband has a small business, he has occasinal work for others. Would he need to set up for W2 or ... A: If he hires workers who are independent contractors who also work for others, he should use a ...
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| capital gains on home | 5/20/2009 |
Q: our daughter passed away app. 14 months ago, the courts will probably grant us the right to sell her ... A: My sympathies on the loss of your daughter. If you inherit the house, and it sounds as though you ...
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| DEDUCTION OR NOT? | 5/20/2009 |
Q: I'm not a company or anything, just an individual. I want to hire a personal assistant to run ... A: Unless you have a business the amount you pay your personal assistant is not deductible. As you ...
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| 401k distribution, re. taxes paid | 5/18/2009 |
Q: I have been receiving SSDI since 10/2001. In 2006 I took a distribution of my entire 401k and paid ... A: Unless you get a letter from the IRS don't worry about filing a return for 2006. Since you haven't ...
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| How to claim yourself independent? | 5/16/2009 |
Q: Can you claim yourself independent if you're 21 or over and you're paying your own college tuition? A: If you pay more than half of your own support, you can claim your own dependency on a tax return. ...
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| Income Tax on Stock Sales | 5/15/2009 |
Q: I got a letter yesterday for back taxes on stock I sold in 2007. All the money I used to buy the ... A: You are required to pay tax on gain from the sale of stocks. The IRS doesn't know what you paid for ...
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| Social Security Disability Income Received by a Minor Child | 5/14/2009 |
Q: My minor daughter receives $650 per month in dependent Social Security Disability benefits because ... A: You don't report her social security benefits on your tax return and you need not file a return for ...
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| Rental property sale | 5/13/2009 |
Q: What items are deductible on the HUD-1 besides the property tax and mortgage interest paid? Also, ... A: On rental property you can deduct all your expenses for repairs, maintenance, cleaning, utilities, ...
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| capital improvements for primary residence turned rental | 5/12/2009 |
Q: My wife and I bought a home, primary residence, in fall 2006 for $125,900. Over the course of 2 1/2 ... A: You add the cost of improvements to your cost basis of the house. When you take depreciation you ...
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| capital improvements for primary residence turned rental | 5/12/2009 |
Q: My wife and I bought a home, primary residence, in fall 2006 for $125,900. Over the course of 2 1/2 ... A: If you turn it into a rental you will depreciate the improvements along with the house. You can't ...
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| excise tax on quit claim deed | 5/7/2009 |
Q: I own a home in my name. Is there a way to quit claim a fractional ownership to my significant ... A: There wouldn't be an excise tax to pay. But when you give more than $12,000 per year to another ...
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| selling a parcel of land. | 5/5/2009 |
Q: i bought a primary home and 2 parcels of attached land in 2001.1-house is on nine acres..2 four ... A: You need to determine what you paid for the land alone when you bought it. If you aren't sure what ...
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| 401k | 4/30/2009 |
Q: i have a client who wants to borrow from there 401k but wants to know if the company he works for ... A: If the company closes and closes the 401k before the loan is repaid, it would be considered an early ...
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| Taxes on Gift Property Sale | 4/21/2009 |
Q: My mother recently passed away, leaving a Utah duplex property to me which I am selling. The note is ... A: If you sell it at a gain, you will be taxed on the gain. Your basis in the property is the fair ...
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| capital gains on real estate sale | 4/17/2009 |
Q: Carole. I bought a house in 2004 and am presently (as of April, 2009) under contract to sell it. I ... A: First of all you cannot exclude the part of the gain that is attributable to depreciation taken when ...
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| Qualifying Relative Question | 4/16/2009 |
Q: My mother lives in my home full time. Her only income is social security of about $13,000 per year. ... A: Her support includes housing, food, clothing, transportation, medical expenses, entertainment and ...
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| Withdrawal from IRA | 4/14/2009 |
Q: I am 60 yr old, disabled & receiving Social Security checks. I owe about $78,000 in credit cards ... A: Of course you can withdraw the money in your IRA but you will have to pay both Federal and CA state ...
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| taxes on sale of second home | 4/13/2009 |
Q: In April of 2005, we purchased a new home in which we are presently living. Our former home, ... A: There are several exceptions to the 2 year time requirement including unforeseen circumstances. ...
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| Business deduction for work-related education | 4/12/2009 |
Q: This is my first year of a 2 year MFA program in graphic design. Prior to starting the program I was ... A: In my opinion it would qualify as work related education. By freelance I assume that you do not ...
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| estimated taxes | 4/12/2009 |
Q: I need to pay estimated taxes. H&R Block gave me an information packet on estimated taxes, and it ... A: Form 1041ES is for estates and trusts. You would need 1040ES but if you are going to use EFTPS you ...
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| 121 exclusion and depreciation recapture | 4/11/2009 |
Q: We bought the next door apartment in 11/2007 with the idea of renting it for two years (we rented ... A: You're correct that when you sell the rented apartment you will have depreciation recapture whether ...
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| miscellaneous income | 4/10/2009 |
Q: I am a teacher in Michigan. Last summer I attended 2 technology workshops. One was in Michigan and ... A: In essence the travel expenses paid by the company were income to you and you need to report it. ...
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| College tuition deduction | 4/5/2009 |
Q: I am wondering if I can deduct what I paid for a college class in December for a class that started ... A: If you paid for the class in 2008 you must take a deduction on your 2008 return. You can use the ...
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| cAPITAL GAINS | 4/3/2009 |
Q: WE SOLD LAND THIS YEAR WHICH WE WERE GIFTED IN 1997 IS THIS LONG TERM CAPITAL GAIN? DOES THIS ... A: Your basis in gifted property is what the donor paid for it, not the value when it was gifted, plus ...
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| CD from Deceased Parent | 4/1/2009 |
Q: We received $20,000 in 2008 from a cd belonging to my mother-in-law (who is still living). The money ... A: You should check to make sure that you are to receive a K1. The interest will be taxable however it ...
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| Taxation on nondeductible IRA | 3/31/2009 |
Q: My dad is presently 66. He has both a traditional and nondeductible IRA. Last February, he withrew ... A: Yes he has to pay tax on the distribution regardless of what he did with the money. The taxable ...
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| donate property vs take loss | 3/28/2009 |
Q: I have a lot that was purchased during the boom in FL. It is paid for in full. I want to get rid of ... A: If you sell at a loss you can deduct only $3,000 of that loss against other income unless you have ...
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| New Small Business Tax??? | 3/27/2009 |
Q: I began a small event planning business in DC last year. I planned my first wedding beginning in May ... A: You must pay taxes on all the money you earned last year whether as a hobby or as a business. Hobby ...
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| Itemized Deduction vs Tuition Credit | 3/24/2009 |
Q: I work in the legal field and part of my job includes dealing with tax investigation litigation. I ... A: If your employer requires you to take the courses they would be an unreimbursed employee business ...
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| Rental Property Basis | 3/24/2009 |
Q: I have a house that was appraised last year for $135,000. Last year's SEV value was $61,200, so even ... A: If you have no way to prove the $40,000 in improvements, you will have to use the original purchase ...
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| Direct Rollover of 403-B | 3/20/2009 |
Q: I intended to do a direct rollover of my 403-B into an IRA. However,when the check came I mistakenly ... A: If, after cashing the check, you put the money into the rollover IRA, just enter the information on ...
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| per deim | 3/19/2009 |
Q: how long can you collect per diem without paying taxes on it. I think it is limited to 12 months. If ... A: A temporary assignment is one that is expected to last and actually lasts 12 months or less. The ...
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| Corporate Debt Personally Guaranteed | 3/18/2009 |
Q: In 2003 I personally guaranteed a loan made to a corporation owned jointly by myself and my wife at ... A: Yes it would be considered forgiven debt and would be taxable. As I understand bankruptcy laws what ...
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| Question about filing as a married couple | 3/17/2009 |
Q: My fiance and i are talking about getting married next summer, but im planning on going back to ... A: If you are married you can claim educational expenses paid by either of you. If you aren't married ...
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| Long Distance marriage and tax implications | 3/16/2009 |
Q: I have taken a position in DC. My husband is staying in our home in KY. At this point, we don't ... A: Assuming that your position is not a temporary assignment, there are no expenses you can deduct ...
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| Tax brackets and deductions | 3/13/2009 |
Q: I have two questions. First, when it is said you are in a tax bracket (say 35%) does that 35% ... A: Anything that is ordinary and necessary to the conduct of your business. That would vary depending ...
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| Donations from rental of reception hall | 3/12/2009 |
Q: I got married last year and for our wedding reception, we rented a hall that is owned by the county ... A: Your rental would not qualify as a charitable deduction. You did use the hall so there was benefit ...
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| SSDI & Tax Dependent | 3/11/2009 |
Q: My mother has received SSDI for many years due to being legally blind and mentally ill. She has ... A: If you provide more than half of her support you can claim her. Her support includes the fair ...
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| Best tax software for Net operating Loss | 3/9/2009 |
Q: This year I have a NOL and I thought that Turbo Tax will ask the questions and make adjustment for ... A: By this year I assume you mean that you have an NOL for tax year 2008. You need a 1045 only for ...
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| Business Expenses | 3/9/2009 |
Q: You mentioned that I had asked this question before: My company has told me that since I've been ... A: I remember answering your question but perhaps you didn't get the answer so I'll try it again. The ...
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| How to handle two primary residences | 3/7/2009 |
Q: I have lived in El Paso for several years but recently bought a home in Fort Worth to attend school. ... A: When you use the home office deduction you have to put in an area that is used regularly and ...
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| Form 1099a | 3/1/2009 |
Q: I had a property foreclose 9/08 for which I received a 1099a. Balance of pricipal (box 2) was ... A: Since the FMV is higher than the balance of principal, you would not include it as taxable income. ...
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| 1099 B | 2/26/2009 |
Q: THIS IS THE FIRST TIME I RECIEVED A 1099 B. FROM READING THROUGH YOUR ANSWERS I ALREADY UNDERSTAND ... A: You will transfer $3,000 of the loss to your 1040 on the line for capital gain or loss. The ...
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| ira withdrawal | 2/25/2009 |
Q: need extensive dental work (implants-preferably), what what kind of penalty would i incur if i take ... A: You will have to pay income tax on whatever you take from your IRA. In addition there is a 10% ...
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| alimony tax | 2/23/2009 |
Q: My husband will pay me (starting in Feb) 13,000 a month in alimony (child support not included). ... A: As a rough estimate your Federal income tax will be about $26,000. I don't know VA tax rates. You ...
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| how to claim house sold on land contract for taxes | 2/21/2009 |
Q: We sold our house on land contract in March 2008 for $50,000. They pay monthly payments plus ... A: If the house is in their name you would report the sale as an installment sale. You would report ...
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| Capital Loss | 2/21/2009 |
Q: I took early retirement in 2007. I had to take the stock portion out of 401K status in order to ... A: You were advised correctly. You can't claim a loss on the sale of the home because it is a ...
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| Early Withdrawal From Retirement Account | 2/20/2009 |
Q: I am 52 and withdrew $55,707 due to hardship. Three weeks later, I became unable to work due to ... A: You won't have to pay the 10% penalty since you are over 59 1/2 but the distribution will be subject ...
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| Medicad and claimming as dependent on tax rurns | 2/20/2009 |
Q: My mother is 81 years old, has less than $3500 annual income, is on medicaid who has given her no ... A: If you paid more than half of her total support, including medical expenses, you can claim her as a ...
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| Traditional IRA/Federal income tax return | 2/18/2009 |
Q: I am filing my Federal income taxes using TurboTax Premier online. I am working in the traditional ... A: The $32,000 is much more than the required minimum distribution for 2008. I don't use turbo tax and ...
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| Taxes on Lease option sales | 2/16/2009 |
Q: In November I sold a rental house when the renter exercised his option to buy after a five year ... A: Treat the $250 per month as an expense of the sale. You will have to report the sale of the rental ...
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| 401k | 2/13/2009 |
Q: Can you tell me if I cashed in my 401k amount of $6954.72 with taxes taken out and a third party ... A: You should get a 1099R for the distribution from your 401k showing the gross distribution and taxes ...
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| my home | 2/13/2009 |
Q: on 11/1/08, entered into an agreement to land contract my home located in a small town in Kentucky, ... A: Since the home is still in your name you should report the money they paid you as rental income on ...
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| Land Sale | 2/11/2009 |
Q: When you sell property that you've owned for ten years at a profit,is all the profit capital gains ... A: Since you owned the property for more than one year, it would be taxed as a long term capital gain. ...
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| 1099-A on foreclosed home | 2/10/2009 |
Q: I recieved a 1099-A on a foreclosed home. line 2 $274,669.00 Line 4 is $301,604.00. Line 5 says Yes. ... A: From what you wrote you have no forgiven debt income to report. You may have a sale to report but ...
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| Capital gains on gift of property | 2/10/2009 |
Q: My mother (Father Deceased) signed a 150-acre tract of land (old homestead) over to me approximately ... A: Your cost basis in the gifted land is your father's basis. Since he, apparently, inherited the ...
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| bad debt | 2/9/2009 |
Q: Over the last 2-3 years I have loaned a friend over $8000 in a series of several smaller loans. In ... A: You can claim a deduction for a non-business bad debt IF you have documentation that shows the ...
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| multiple w-2 forms | 2/8/2009 |
Q: I am filing 3 w-2 forms. My earnings were approx. 3600, 7000, and 19000. If I put in the two lower ... A: I don't know where you are entering the W2's but your taxable income is your total income less your ...
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| Sole Proprietor - tax write-off | 2/7/2009 |
Q: I just start a consulting business. 1. If I travel out of state looking for business (and di not ... A: Yes you can deduct expenses for your travel even if you did not get any business. No, you can't ...
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| Capital Gain When There is no Income | 2/4/2009 |
Q: I am considering selling my condo in Boston, MA. The rule of 2 out 3 yrs don't apply but the only ... A: You have to report the sale of the condo as well as rental income. Since the rental unit was ...
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| Dependent parent | 2/3/2009 |
Q: My mother has lived with me full time since 2005. I first took her as a dependent in 2006. Her ... A: If you paid more than half of her total support you were entitled to claim her as a dependent. Her ...
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| New House or Car Deduction | 2/2/2009 |
Q: If I bought a new house or car in 2008 can i claim it in my taxes? A: The deductions for a home are mortgage interest, points and real estate taxes in the year paid. ...
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| 1099R State Payer ID question | 2/1/2009 |
Q: I live in NY,June of 2008,we changed mailing address for her pension statement to Ny.so I could ... A: Box 12 shows the distribution attributable to the state shown in box 11 and box 10 the state tax ...
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| Home sale tax | 2/1/2009 |
Q: My sister and I sold our mother's home this past September which was unoccupied for 1 year since her ... A: Your cost basis in the inherited home is the fair market value on the date of death. Deduct this ...
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| Capital Gains on Sale of Partial Property | 2/1/2009 |
Q: We sold most of our property in 2008 but retained 40 acres and our home, do we have to pay capital ... A: Unless you plan to sell your home and the remaining acres within 2 years you need to pay capital ...
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| Education Credits (IRS FORM 8863) | 1/29/2009 |
Q: I am a full time student and live in NYC. Last year I received enough financial aids and ... A: You can use one of the education credits or the tuiotion and fees deduction for the tuition you paid ...
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| mileage | 1/27/2009 |
Q: Can I write-off mileage to the local community college that I work at as a tax write-off? A: Driving back and forth to work is commuting and is not deductible. If you use your car after you ...
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| Income Tax Filing Question | 1/26/2009 |
Q: I read some of your past answers and they were great. Here is the situation: My mother's house ... A: Your cost basis in the house is the fair market value on the date of your mother's death plus ...
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| Taxes for Full Time Student | 1/26/2009 |
Q: I am a college student and I have a question regarding the taxes of a friend of mine who is still in ... A: Unfortunately there is nothing your friend can do except make a contribution to a traditional IRA. ...
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| reimburstment | 1/25/2009 |
Q: I have 2 jobs and one of them I do personal assistance care and respite work for an adult with ... A: You can deduct your expenses as unreimbursed employee business expenses on Schedule A. They are ...
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| schedule C | 1/23/2009 |
Q: My question deals with a sole proprietor business and the filing of schedule C. I was instructed ... A: There is no hard and fast rule. The IRS expects you to show a profit at least one year in five, but ...
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| self employment taxes | 1/21/2009 |
Q: My Husband will be an independent contractor cleaning vacant apartments for my boss. He will get a ... A: As an independent contractor he will pay self employment tax (social security and medicare) as well ...
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| taxes | 1/20/2009 |
Q: Will I pay more taxes if I take my buyout in a lump sum than six-month payments? ANSWER: Hi, The ... A: Because the addition of a large amount to your other income would most likely put you in a higher ...
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| Question on tuition payments as a dependant | 1/20/2009 |
Q: I am a college student in a unique situation. I am part of a co-op program where I work for three ... A: You could claim the half of tuition that you pay, not the living expenses, and use one of the ...
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| Small Business Tax | 1/19/2009 |
Q: I live in California. I was a Realtor for Coldwell Banker, where I earned one commission of $1800. I ... A: Your income as a realtor and leasing agent are self employment income and subject to self employment ...
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| How to claim income on land contract? | 1/18/2009 |
Q: Carole, I have sold my property in Ohio on a Land Contract. Payments monthly over 4 years with ... A: You can exclude up to $250,000 gain on the sale of your main home if you owned and lived in it for 2 ...
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| Tax Return and Investments | 1/18/2009 |
Q: I have a couple questions about filing my taxes and investing: 1) I bought some ETFs and Mutual ... A: You can't deduct your purchases of stocks or ETF's. When you sell them you report the sale on ...
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| self employed, what needs to be taxed | 1/17/2009 |
Q: This past year l started to clean houses since l been unable to work any other work due to an ... A: You need to report all your income and your expenses on Schedule C. You will pay self employment ...
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| Qdro received | 1/16/2009 |
Q: I received a lump sum distribution from my ex-husband pension plan due to a Qdro order that was in ... A: The 20% they withheld apparently was not enough to cover the taxes due. You can file an amended ...
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| Filing Exempt with my employer | 1/16/2009 |
Q: I was told that i would be able to file exempt with my employer and pay my taxes at the end of the ... A: In order to file exempt you had to have all income tax withheld last year refunded to you and expect ...
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| real estate transfer | 1/16/2009 |
Q: Due to some personal problems many years ago, my brother-in-law transferred real estate over to his ... A: The son would be required to file a gift tax return if the property is worth more than $13,000. ...
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| Taxes on parent babysitting | 1/15/2009 |
Q: I paid my mother (80 years old) $2070 to babysit in my home. I know I did not have to withhold ... A: If you must report it, give her a 1099MISC. She would report it on Schedule C. You must also send ...
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| Inheritance tax liability | 1/14/2009 |
Q: We are in a position to receive an inheritance of $300,000, roughly one third the value of the ... A: Inherited cash, stocks, etc. are not taxable. When the stocks are sold there will be capital gains ...
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| Dependent Claimant | 1/13/2009 |
Q: I had a daughter in November and she is on Medicaid. Her father is not on her application but he and ... A: If he paid more than half of her support, he can claim her. But if medicaid paid more than half of ...
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| 1099 | 1/12/2009 |
Q: I filled out a W-4 and started working as a part time employee. (i am a 1099) I make about $850 a ... A: You will report your income and expenses on Schedule C. In addition to income taxes you will pay ...
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| 401k/Portable Pension Distribution | 1/11/2009 |
Q: After my husbands death, I received from his 401k and Portable Pension Plan, a combined total of ... A: Yes this will be considered income to you. Also because of this income some of your social security ...
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| 23 year old college grad as dependent | 1/11/2009 |
Q: My daughter graduated from college in May 2008. She turned 23 in November '08. She also worked ... A: She would qualify as a full time student for the year since she attended for 5 months. If she did ...
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| separated couples - file as indivitual or joint? | 1/9/2009 |
Q: My husband left on 3/31/08..in PA there is no legal separation. He gives me money every month which ... A: Generally it is better to file jointly rather than separately. I suggest that you and your husband ...
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| Can an accountant get me back more on my tax return? | 1/9/2009 |
Q: I'm trying to determine if it's worth it to go to an accountant to have my taxes done, or just do ... A: An accountant or other tax professional can't find deductions if you don't have any. You could look ...
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| Parking Fee Tax Deduction | 1/6/2009 |
Q: I have to pay a monthly parking fee in order to be able to work at my job. There is no free parking ... A: The parking fees would be deductible as an unreimbursed employee business expense to the extent they ...
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| Gasoline deduction | 1/4/2009 |
Q: Can I deduct up to 50 percent of my gasoline bills for the year? I heard that approximately 50 ... A: If you are self employed or use your vehicle for your employer and your employer doesn't reimburse ...
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| w-2 form vs 1099 | 1/4/2009 |
Q: My husbands former boss was supposed to be paying his taxes last year, however when I asked her for ... A: You could complain to the IRS but they may not be able to do anything about it. If she sends you ...
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| do i have to include my Children's SSD checks in with my taxes | 1/2/2009 |
Q: I am actually trying to find this out for my sister not for me. My sister does not work but her ... A: No your sister and her husband do not include the children's SSD benefits in their income. However ...
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| Death of a spouse | 1/1/2009 |
Q: My husband passed away 6/10/08 I am unsure about my filing status. 1) How should I file my 2008 ... A: You should file a joint return for 2008. Most likely you will want to put single on your W4 for ...
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| first time irrevocable ttee questions | 12/30/2008 |
Q: I am an irrevocable trust TTEE for the first time this tax year (2008). I'm just figuring out today ... A: Assuming that the trust is filing on a calendar year, only distributions to beneficiaries during the ...
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| Depreciation causes negative income from renting | 12/29/2008 |
Q: I am considering renting our house for two years. It wouldn't be much of a money-maker (because of ... A: You have it right. But even if you don't claim depreciation, when you sell it the sale would be ...
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| systematic IRA withdrawals | 12/29/2008 |
Q: I am taking an early systematic withdrawal from my IRA. I have one more year that I must take it. I ... A: IRA distributions are not considered earned income so it would have no effect on your social ...
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| Gifted money from a family member | 12/27/2008 |
Q: I recently received a gift of $12,000.00 from a family member in the form of stock. This stock was ... A: Your bracket depends upon your total income and deductions and your marital status. Not knowing any ...
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| Gifted money from a family member | 12/27/2008 |
Q: I recently received a gift of $12,000.00 from a family member in the form of stock. This stock was ... A: Since the donor did not give you more than $12,000, the donor will not have to file a gift tax ...
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| gift tax | 12/27/2008 |
Q: Good Day, Thank you for your time, your service is highly valued. My question is this: My 67 year ... A: If she gives it to you she would need to file a gift tax return. Most likely there would be no gift ...
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| Work From Home tax deductions | 12/25/2008 |
Q: Both me and my wife work from home full time, it is not a small business. We were looking over the ... A: If you each have a separate work area that you use regularly and exclusively for business, you can ...
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| income taxes | 12/22/2008 |
Q: i was just wondering how much of your salary that goes to tax? does that amount differ depending on ... A: There are 6 tax brackets - 10%, 15%, 25%, 28%, 33% and 35%. Assuming that you are single part of ...
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| income taxes | 12/22/2008 |
Q: i was just wondering how much of your salary that goes to tax? does that amount differ depending on ... A: The amount of income tax does differ depending upon the amount of income tax and the amount of your ...
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| Deducting expenses from investment in raw land | 12/22/2008 |
Q: Ms. Dunton, I recently purchased (through a partnership with 6 other individuals) raw land for ... A: The partnership will deduct the interest, real estate taxes and any other expenses. Your share will ...
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| 1099 supplemental income | 12/20/2008 |
Q: I currently hold a full time job with taxes withheld. I recently took up some independent ... A: Yes, you need to report your income regardless of the amount. If it exceeds roughly $433, you will ...
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| 1099 supplemental income | 12/20/2008 |
Q: I currently hold a full time job with taxes withheld. I recently took up some independent ... A: You report your independent contractor income and expenses on Schedule C. Your net independent ...
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| Capital Gains on sell of 2 homes | 12/19/2008 |
Q: I moved into my vacation home 18 months ago (because of new job), put my 1st home up for sale, it ... A: Yes, you can pay the tax on the first one and save the gain exclusion for the second one. If you're ...
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| transfer of personal residence by quitclaim deed | 12/18/2008 |
Q: I've owned a home for 30 years and want to transfer the home to my son. Am I able to use a quit ... A: What you are doing is giving the house to your son. Since it is worth more than $12,000, you need ...
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| Taxes | 12/17/2008 |
Q: I was recently unemployed and would like to start an internet busoness. I am married and my husband ... A: Since you will be self employed you will have to pay self employment tax (social security and ...
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| Primary Residency | 12/17/2008 |
Q: Can primary residency be split between houses within the same year? Such as owning 2 homes, but ... A: You can have only one primary residence. That would generally be the one where you spend most of ...
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| Estimating Taxes for newly self-employed | 12/14/2008 |
Q: As of December 08, I began working as an independent contractor. I will earn $9,000 in December. ... A: Quarterly estimates are due 4/15, 6/15, 9/15 and 1/15 of the following year. You can always change ...
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| Sweepstakes Winner | 12/13/2008 |
Q: My husband and I just recently won a new SUV through a sweepstakes that our electric company was ... A: You will receive a form early next year showing the fair market value of the SUV. This is the ...
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| k-1 loss reporting | 12/13/2008 |
Q: I work a salaried job and own 2 separate businesses outside. In 2006 I had a loss of $11643 from my ... A: From what you wrote it seems as though the 2nd accountant should have deducted the entire loss. But ...
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| Refile question | 12/10/2008 |
Q: I currently own two homes, which I pay property taxes. On my 2007 tax return, I forgot to deduct ... A: Assuming that you paid the taxes in 2007 you can't include it on your 2008 return. You can file an ...
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| deductions | 12/9/2008 |
Q: If I earn $50,000 in 2008, but I had deductions of $60,000 (money given to charity, business ... A: You won't be able to deduct $60,000 in itemized deductions with income of $50,000. Your itemized ...
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| Inherited IRA minimum distribution | 12/7/2008 |
Q: I read a few weeks back that the minimum distribution requirement might be suspended during this ... A: They haven't done anything yet. I, too, am watching for this. Advisors have suggested to wait ...
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| capital gains | 12/5/2008 |
Q: I sold a rental property and will owe capital gains tax. Should I make a payment now or wait until ... A: If you will owe more than $1,000 in taxes you should make a payment now using form 1040ES. You can ...
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| taxes on winning a car sweepstakes | 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: The IRS is correct. You will be taxed on $28,745 as shown on the 1099. If you sell the car for ...
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| 1099B | 12/4/2008 |
Q: A friend received a 1099B and a 1099R from the same company for the same amount of distribution. The ... A: If she never sold it she should still report the amount shown on the 1099B. She will report it on ...
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| property taxes | 12/4/2008 |
Q: my Aunt is going to gift property to my daughter. If she sells it with in a few months what kind of ... A: Your daughter will pay capital gains tax on her gain. To determine her gain she deducts her aunt's ...
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| Early withdrawal of vest 403b amount | 12/2/2008 |
Q: Dunton: I recently resigned from my job of 16 years and would like to receive my vested amount ... A: The amount of tax will depend upon your total income and deductions. The 20% you mentioned is just ...
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| Individual income taxes | 12/2/2008 |
Q: I have been a full time student for the past year and consequently have not had a job in the past ... A: You can't deduct expenses if you have no income since it would give you no benefit. You can only ...
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| Traditional IRA benefiairy designee | 12/1/2008 |
Q: My parents have small TRADITIONAL IRA's (combined total $30,000) and have designiated each other as ... A: The benefit to listing the child as primary is that the child is younger and, with an inherited IRA, ...
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| capital gains tax | 12/1/2008 |
Q: what is the capital gains tax on a 1.2 million home sale in NYS? A: The maximum long term capital gains tax rate is 15%. Long term means that the property was held for ...
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| Clarification on minimum taxable income | 11/30/2008 |
Q: I'm a 24-yr-old single white female with one child aged 4. I worked with McDonald's up until early ... A: The minimum income for a single person from an income tax standpoint would be the total of your ...
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| milage deduction | 11/29/2008 |
Q: My son has a job delivering papers for a local newspaper. He is not an employee of the paper, I ... A: The quarterly payments are due 4/15, 6/15, 9/15 and 1/15 of the following year. If you make equal ...
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| milage deduction | 11/29/2008 |
Q: My son has a job delivering papers for a local newspaper. He is not an employee of the paper, I ... A: If he has a W2 job it might be easier for him to adjust his withholding on that job to cover the ...
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| milage deduction | 11/29/2008 |
Q: My son has a job delivering papers for a local newspaper. He is not an employee of the paper, I ... A: The rates for business mileage for 2008 are split. From 1/1/08 to 6/30/08 the rate is $0.505; the ...
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| Benevolant Account | 11/24/2008 |
Q: My daughter was born 3 months early and has a lot of expenses. My husbands school had us create a ... A: Income received as an independent contractor is reported on Schedule C (or C-EZ). You can also ...
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| sale of land in 2008 | 11/24/2008 |
Q: I have land i purchased a few years ago i paid 12,500 for it sold it for 22,050.00 and have ... A: I think I already answered this question but perhaps you didn't receive the answer so here it is ...
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| Estate and Inheirintance Taxe Questions | 11/23/2008 |
Q: My grandmother just pasted away. She had a living trust and a will prepared so her wishes are made ... A: My condolences on your loss. Whether or not there is Federal estate tax depends upon the size of ...
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| mobile home sale | 11/22/2008 |
Q: We sold our mobile home this year. There was a catch, we had to buy a new home from the builder(not ... A: A mobile home would be treated the same as a site built home if you owned and lived in it for 2 ...
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| nanny tax | 11/20/2008 |
Q: If I hire a nanny in order to go to work, how do I deduct the nanny's salary? Can/how do I deduct ... A: You can use the child and dependent care credit to deduct a portion of your nanny's salary and the ...
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| 401K withdrawl | 11/20/2008 |
Q: I am curious as to the merrit in holding any investment right now. I have watched my 401K turn into ... A: I'm not a financial advisor so I can't advise you in that regard. I, too, have seen my 401k take a ...
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| Tax ID number | 11/18/2008 |
Q: Carole, I am considering doing some part-time consulting work and have been told that I must have a ... A: As far as the IRS is concerned an individual does't need an EIN number unless you are an employer. ...
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| settlement, 1099 filing | 11/18/2008 |
Q: I will be receiving a $30k lump settlement in January 2009. I was told that it would be considered ... A: With your spouse's income somewhere in the $50's, part of your taxable income would be taxed at 25%, ...
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| tax questions re sale rental property | 11/18/2008 |
Q: We had a lease for 12 months (12/07-11/08) but tenant stopped paying rent after 2/08 and vacated ... A: If the foyer and kitchen floor were inducements then count them as expenses of the sale. The ...
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| settlement, 1099 filing | 11/18/2008 |
Q: I will be receiving a $30k lump settlement in January 2009. I was told that it would be considered ... A: You can file separately but unless your spouse's income is fairly high it wouldn't make a difference ...
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| 1065 & LLC | 11/17/2008 |
Q: I have an individual LLC, but I did put my wife on it also. Does this mean that it is a partnership ... A: If there are 2 members in the LLC you would need to file a partnership return unless you prefer to ...
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| Incorrect filing | 11/17/2008 |
Q: My sister is a waitress and makes about $4,000 a month, and last year when she filed taxes, the ... A: You sister was advised incorrectly. Tips are required to be reported as income. She can file an ...
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| Capital Gain Loss deduction | 11/17/2008 |
Q: My wife and I own stocks in our own names and will realize capital gain losses over $6000 each this ... A: If you file separately you can each use $1,500 of capital losses to offset other income. Any unused ...
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| tax questions re sale rental property | 11/17/2008 |
Q: We had a lease for 12 months (12/07-11/08) but tenant stopped paying rent after 2/08 and vacated ... A: Capital improvements would add to your basis and be depreciated. Repairs and maintenance would be ...
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| Tax consequences of foreclosure and similar transactions | 11/17/2008 |
Q: My parents bought a house in Florida in May 2006. Like many other properties it is currently worth ... A: If she sells it, since she owned and lived in the home for 2 years during the 5 years preceding the ...
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| settlement, 1099 filing | 11/16/2008 |
Q: I will be receiving a $30k lump settlement in January 2009. I was told that it would be considered ... A: I'm assuming that the entire $30,000 will be taxable. You didn't mention that federal income tax ...
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| Daycare Costs | 11/14/2008 |
Q: Can I write off daycare costs? How much of a credit would it translate to if daycare is $250 a week? ... A: There is a tax credit called the Child and Dependent Care credit. You can deduct a portion of the ...
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| 401(K) beneficiary | 11/13/2008 |
Q: Carole, My father past away recently and named me and my brother as the beneficiary of his 401(K). ... A: You'll need to ask the custodian about rolling it over to a beneficiary IRA. If they are able to do ...
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| receiving payment from child care FSA | 11/12/2008 |
Q: If I babysit for someone occasionally on the days they cannot work from home, and they would like to ... A: If you are paid for working you need to report your income whether or not is comes via the FSA. If ...
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| self employed | 11/12/2008 |
Q: i have a home cleaning business. i have a client i work for about 20 hours a week. i have always ... A: You can claim the self employed health insurance adjustment to income only if you file schedule C. ...
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| 2008 v. 2009 rates on gain on sale of land | 11/11/2008 |
Q: We sold land in 2008 for $79,000 that cost $25,000 in 2005. we received $20,000 cash and a purchase ... A: The capital gains rates will increase in 2009 unless Congress changes the law. Most likely if they ...
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| car title transfer | 11/10/2008 |
Q: so my wife and I are taking it. Its value is over 20K. What is the best way to transfer ownership ... A: If she can sign to transfer the title to you and your wife, she need not put it in her name first. ...
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| Traditional IRA Rollover to Roth in 2010 | 11/9/2008 |
Q: We are trying to determine whether it makes sense to rollover traditional IRA's into a Roth in 2010 ... A: Mandatory distributions are required when you reach age 70 1/2. You can take a distribution by ...
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| Taxes on sale of inherited house w/ mortg | 11/8/2008 |
Q: My three brothers and I inherited house, and recently sold it. Eight individuals are on the ... A: Each individual will have to include his/her share of the gain (if any) on his/her tax return. The ...
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| FILING STATUS AND DEPENDENTS | 11/7/2008 |
Q: my question is about who i can claim as dependants. i file head of household every year due to my ... A: You can claim your fiance and his daughter as dependents if it is not in violation of local law for ...
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| Senior Selling Home | 11/7/2008 |
Q: My disabled senior mother is selling her residence of 30 years, to come live with on our property in ... A: What is is or was worth and how much is owed on it are irrelevant. To determine gain you deduct the ...
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| Senior Selling Home | 11/6/2008 |
Q: My disabled senior mother is selling her residence of 30 years, to come live with on our property in ... A: Since she sold her primary residence she won't be liable for any Federal taxes or California taxes. ...
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| Traditional IRA Rollover to Roth in 2010 | 11/6/2008 |
Q: We are trying to determine whether it makes sense to rollover traditional IRA's into a Roth in 2010 ... A: 1. You cannot have a joint IRA account, whether deductible or non-deductible. Each of you can set ...
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| IRA and Revocable Trust | 11/6/2008 |
Q: I have an IRA that is part of a revocable trust. In the trust it states my children are the ... A: Actually since the children are beneficiaries of the trust, you can leave the IRA in the trust and ...
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| Filing Income taxes | 11/6/2008 |
Q: I live in NH and am working a very part time job that I started in July of this year. I only work ... A: Yes, $600 is enough to require you to file and pay self employment tax (social security and ...
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| claiming mortgage intrest | 11/5/2008 |
Q: I have been splitting the cost of a home with my parents for 10 years. They are now retired and I am ... A: If you are not obligated to pay the mortgage payments you cannot take an itemized deduction for ...
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| elderly tax deductions | 11/3/2008 |
Q: I am working w/ an 85 year old relative moving into assisted living. she has 40 years worth of good ... A: If she donates the items to a 50% charitable organization (hospitals, schools, churches, community ...
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| Self Employed | 11/2/2008 |
Q: I am an Occupational Therapist and about to start work in Denver, Co. For the first time I will be ... A: Yes, you should make quarterly estimated payments to cover the self employment tax (social security ...
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| withholdings | 11/1/2008 |
Q: My employer just found out that she has been paying all of my withholdings, 15% I think. Originally ... A: As an employee you are supposed to pay 7.65% for social security and medicare and your employer is ...
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| business expensing | 11/1/2008 |
Q: under the current expensing provisions I wonder if a new roof and air conditioner can be expensed or ... A: In a business you can expense many items - tools, machinery, cars, computers, etc. But you can't ...
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| TAXES | 10/31/2008 |
Q: I have worked since May of 2008 I make 9.50 a hr part time 20 hrs a week I get paid every two weeks. ... A: When you file your tax return you will report your income and expenses on Schedule C (or C-EZ). In ...
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| capital losses carried back as well as forward? | 10/30/2008 |
Q: Like many, I had a better year investing in 2007 than in 2008. Can losses I sustained in 2008 be ... A: You didn't say what kind of losses. If you have a net operating loss (NOL) for 2008, you could ...
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| married filing seperately | 10/29/2008 |
Q: I am married and was wondering if I would be able to file seperately. My husband is disabled, he ... A: Yes you can file separately but if you normally get the earned income tax credit, you would not ...
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| ITIN and SS | 10/28/2008 |
Q: After filing the 2007 return 1 spouse had an ITIN # and the other a SS# with 1 dependent. Just very ... A: Yes you could file an amended return to qualify for credits. The form you need is 1040X which is ...
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| child claim | 10/28/2008 |
Q: I am a single parent and have sole custody of my son. I have allowed his dad to claim him sometimes ... A: If your fiance paid more than half of his support and the child lived with him all year he could ...
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| pension | 10/28/2008 |
Q: My husband died unexpectantly at 43yo. He has a pension with 67,000 that I would like to cash in to ... A: My condolences on your loss. It must be very difficult to cope with, especially since he was so ...
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| Getting married and taxes in Texas | 10/27/2008 |
Q: My fiance and I would like to get married in November but we are worried about the tax implications. ... A: If you marry and file jointly, you can deduct home mortgage interest and real estate taxes on both ...
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| 401K etc | 10/27/2008 |
Q: I changed jobs and had to take a 401K loan disbursement.(29K). I was 59.5 in age. MyI used this ... A: You can report the loss on the investment on Schedule D. You will report the date of purchase and ...
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| Additional Monthly Taxes | 10/26/2008 |
Q: I am paying an additional $50 in taxes, someone told me it's sort of like a monthly savings since I ... A: It's true that you will get a refund if you paid in more in withholding than your tax liability. ...
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| LTD, SS, 401k, home tax | 10/25/2008 |
Q: I'm on LTD and SS; wasn't able to get tax write off on home due to no taxable income; my COBRA plan ... A: Taking a distribution from your 401k would be taxable income. It would not affect your SS. You can ...
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| IRA | 10/24/2008 |
Q: I am trying to rollover an Roth IRA from an Credit Union to an Bank. When I contacted the Credit ... A: Most banks, credit unions and other custodians of IRA's charge a fee when the account is terminated ...
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| Do I need to file taxes? | 10/24/2008 |
Q: I'm 17 years old and about 3 months ago I started working for my local hospital in nutrition ... A: You may need to file a tax return for this year since you are earning income. In January of next ...
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| Capital gains | 10/23/2008 |
Q: I sold my residence earlier this year, bought a new one. After the $250,000 exclusion I still will ... A: You will report both sales on Schedule D and the loss on the mutual funds will partially offset the ...
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| proceeds from sale of property tax implications | 10/22/2008 |
Q: My sister sold a property which she assumed when her husband passed. Before his death he added the ... A: Even if they gift their share of the money to her, they will be liable for capital gains tax on ...
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| Can I be claimed as a dependant? | 10/20/2008 |
Q: I'm a perminant resident of the US since July 17th 2008 and I'm 20. Since that time though my father ... A: While you can't be claimed as a qualifying child, you can be claimed as a qualifying relative (even ...
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| LLC member taxes | 10/20/2008 |
Q: My husband & I own a small business, of which, he does the technical work and I do the books. I am ... A: As long as the business pays you a reasonable amount of compensation for the work you do, you can ...
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| living on the road deduction | 10/20/2008 |
Q: I live in FL and am working in New Orleans, LA. I do not receive any perdiem from my company or any ... A: If this is a temporary assignment expected to last less than 12 months (and actually lasts less than ...
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| dependent | 10/19/2008 |
Q: ..........Our health insurance carrier provides for our children up to the age of 26 if my wife and ... A: If he qualifies as your dependent you can claim him. But if his income is over his exemption amount ...
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| Hot Tub/Spa Question | 10/19/2008 |
Q: I read your answer to the question at this link: ... A: The hot tub is partially deductible but the deck and lanai are not. However the increased electric ...
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| tolls | 10/17/2008 |
Q: I am a contract worker and take the tollroad to wherever i need to work. Is there a possibility of ... A: Since you are a contract worker you report your income and expenses on Schedule C. If you work out ...
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| Schedule D | 10/15/2008 |
Q: Just this year I started trading online (Stocks, Futures, Forex) and wanted to ask about the best ... A: If you sell everything on the same day, I find it easiest to add the purchases together and report ...
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| Certificate of Deposits | 10/14/2008 |
Q: I am drawing social security benefits and still working full time and have been advised that my SS ... A: Your social security benefits will not be considered as earned income however a portion of the ...
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| Mileage | 10/14/2008 |
Q: I work for a Wellness LLC. The owner uses his address for his business. I keep all supplies at my ... A: Since you are an employee you cannot claim business mileage from your home unless your employer ...
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| adoption credit | 10/14/2008 |
Q: We adopted 3 children from foster care this year. We do not have enough income to pay taxes. The ... A: There is an adoption credit but if you don't have a tax liability it would not benefit you. However ...
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| Mileage | 10/14/2008 |
Q: I work for a Wellness LLC. The owner uses his address for his business. I keep all supplies at my ... A: You didn't say whether you are considered an employee or an independent contractor. I'll assume ...
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| Capital gain consideration | 10/14/2008 |
Q: I own a home with a $150K cost basis, a first mortgage balance of $494K, and a Fair Market value of ... A: Since you aren't selling the home you won't have any income tax liability. You will be required to ...
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| dependants | 10/14/2008 |
Q: When my wife and I have our baby in June my mother in law is coming to live with us to act as a ... A: I thought I just answered this question but perhaps the answer went astray. Since she is your ...
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| Increasing withholds to recive larger paycheck | 10/13/2008 |
Q: I am contemplating purchasing a home. In order to cover my mortgage in addition to my other costs ... A: Along with the W4 you will need to complete to show how many exemptions you want to claim comes a ...
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| Per Dium | 10/12/2008 |
Q: As a Truck Driver my company gives me $15.00 for each night I spend out. Am I allowed to deduct the ... A: The standard allowance is for each day you are away from home and need to sleep. If you use the ...
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| clothing allotment/stipend | 10/12/2008 |
Q: i am on the executive board for our local fire dept and we have an issue pertaining to our clothing ... A: You would have to ask your employer whether or not they are including the uniform allotment as ...
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| new tax bracket problem due to early 401K withdrawal | 10/10/2008 |
Q: I'm finishing up my 2007 taxes before the upcoming deadline and running into a problem with a new ... A: No, there isn't anything to be done about being in a higher tax bracket. The 20% was withheld for ...
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| Selling a Primary Res. turned Rental | 10/9/2008 |
Q: I bought a home in '90 for $62K. Did a cash out in '02 refinanced for $90K. In '03 I started ... A: If you used the $13,000 for capital improvements rather than repairs and routine maintenance, add ...
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| Selling a Primary Res. turned Rental | 10/9/2008 |
Q: I bought a home in '90 for $62K. Did a cash out in '02 refinanced for $90K. In '03 I started ... A: You didn't say whether or not you reported the rental income on your tax return and deducted ...
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| Vacant Land Sale | 10/7/2008 |
Q: My Step-father and Mother are currently selling their vacant land. It is approximately 130+ acres ... A: While they did not pay for it they do have a basis in the land which is deducted from the selling ...
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| filing taxes for 100% commission job | 10/7/2008 |
Q: This year i began working in insurance sales. it is 100% commission. i use my own car, gas, ... A: There are a couple of IRS publications which will help you understand what is deductible and what ...
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| Sale of vacant land | 10/6/2008 |
Q: My mom is selling vacant land which she inherited at least 40 years ago. How will her capital ... A: Her capital gain will be taxed at a maximum of 15%. Depending upon the amount of the gain and her ...
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| Sale of Residence | 10/6/2008 |
Q: Owned residence for 30 years; moved from house less than three years ago, qualify if sale today of ... A: I would think that you could qualify to exclude at least a part of the gain because of unforeseen ...
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| nevada captial gaines tax divorce | 10/6/2008 |
Q: I have been divorced for almost 2 years and have been living in our home (washoe county, Nevada) for ... A: It sounds like a smart move if you can't afford to live there. Assuming that you will sell it ...
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| Zero tax rate on Capital gain | 10/5/2008 |
Q: Need clarification on eligibility for Zero tax rate on Long term capital gain on sale of personal ... A: You won't be able to claim the 0% tax rate on all of the gain remaining after your exclusion if your ...
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| Inherited IRA | 10/5/2008 |
Q: My father passed away January 2005 at age 69. He had a traditional IRA which he left to my sister ... A: Since you missed the first required minimum distribution and the amount is small, you can take it ...
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| Zero tax rate on Capital gain | 10/5/2008 |
Q: Need clarification on eligibility for Zero tax rate on Long term capital gain on sale of personal ... A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ...
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| capital gains | 10/4/2008 |
Q: I own a home in Caifornia, I need to try and sell it as I can no longer afford to keep my home. I ... A: You need to go to your tax person to calculate your income tax on the gain. I don't have enough ...
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| capital gains | 10/4/2008 |
Q: I own a home in Caifornia, I need to try and sell it as I can no longer afford to keep my home. I ... A: You can't transfer the capital gains to your house in Virginia. You say that you rented the house. ...
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| 401 K tax question | 10/2/2008 |
Q: I am 61 years old and would like to withdraw my 401k money and put it into a CD during this period ... A: If you takae it out of the retirement account you will have to pay income tax on the distribution. ...
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| stock joint accounts | 10/2/2008 |
Q: We want to open a joint account with ING so we can buy stock. It stated we needed to check the tax ... A: Assuming that you file a joint return you would simply report dividends, gains and losses on your ...
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| Taxes on Pension | 10/2/2008 |
Q: I am interested in taking a lump sum payment on a pension plan that was canceled with my former ... A: In addition to ordinary income tax you will have to pay a 10% penalty for early distribution. Plus ...
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| Pension | 10/1/2008 |
Q: I am receiving a monthly pension check. Do I have to pay taxes on this money? A: Your pension would be taxable if your total income exceeds your standard deduction and personal ...
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| Pay taxes on monthly pension checks received | 10/1/2008 |
Q: My husband is retired and receives a pension check. My quetion is does he have to pay taxes on this ... A: Depending upon the amount of his pension it may be taxable. If you file a joint return you are ...
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| divorce | 9/30/2008 |
Q: My wife and I divorced in 2007. She still lives in the house with me. The house is still owned by ... A: You cannot file a joint return because you are divorced. You may be able to claim her as a ...
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| 401k disability early withdrawal | 9/29/2008 |
Q: I have been working for a private company for 11 years, and have been on disability for about a year ... A: You will be subject to income tax on your withdrawals from the 401k assuming that your total income ...
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| 401K Cash Out and Home Sale Tax | 9/29/2008 |
Q: My husband changed jobs and we cashed out his 401K so that we could afford to pay for two mortgages. ... A: The distribution from the 401k is taxable income and possibly subject to a 10% penalty for taking an ...
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| lump sum distrbitution and taxes | 9/27/2008 |
Q: My husband just got laid off this August. As a result he wants to take a lump sum distribution on ... A: The 20% is what they will withhold from the distribution for federal income tax. The actual income ...
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| ESOP Distribution | 9/27/2008 |
Q: I am currently receiving 5 annual installments on my Post86 distributions because I left the company ... A: The distribution you take will be added to your other income and taxed at whatever rate your total ...
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| Lifetime Learning Credit | 9/25/2008 |
Q: I have a friend who reliazed she filed for a small ($400)lifetime lerning college credit when she ... A: It would depend upon what she did. If she paid no college expenses and claimed an education credit, ...
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| Taxes on property | 9/24/2008 |
Q: Recently my fiance and I bought a home in Bluffton,S.C. which we are going to move into and live in ... A: You report as income on Schedule E the full amount of rent and deduct your expenses including the ...
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| Gift tax from aunt who inherited money | 9/22/2008 |
Q: My uncle passed away in 2007. My aunt, his younger sister, inherited approximately $300,000. She ... A: The recipient of a gift is not taxed. The donor is required to file a gift tax return for gifts in ...
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| TAX FRAUD | 9/20/2008 |
Q: YES, I FOUND OUT NOT TO LONG AGO THAT MY FIANCE'S MOTHER WRONGLY CLAIMED MY SON WITHOUT PERMISSION. ... A: No, it's not too late. I don't know exactly how long it will take but I would guess 8 to 12 weeks, ...
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| Is it a wash sell | 9/20/2008 |
Q: If I have stock in regular account (not retirement). Then I transfer it into my Roth IRA account. ... A: You can't transfer stock to an IRA. You can only put cash in an IRA and then buy whatever stock you ...
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| gambling Tax? | 9/19/2008 |
Q: Someone won $7,000 at casino,they filled a ..form W-2G form for her.she's on SSI disability..gets ... A: She should probably file a tax return to report her gambling winnings and social security income but ...
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| LLC tax question | 9/19/2008 |
Q: I just started an LLC in which I will be the sole proprietor (architecture - design and consulting). ... A: There's no harm in having a tax id number and if you have to give an id number to suppliers or ...
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| TAX FRAUD | 9/19/2008 |
Q: YES, I FOUND OUT NOT TO LONG AGO THAT MY FIANCE'S MOTHER WRONGLY CLAIMED MY SON WITHOUT PERMISSION. ... A: You can file an amended return claiming your son. The IRS will apply the tiebreaker rules and as a ...
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| Sale of Residence | 9/17/2008 |
Q: I purchased a property in FL in 1995. We started spending winters in FL in April 2002 but did not ... A: In order to exclude gain from the sale of your residence, you must have owned and lived in it as ...
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| Hi | 9/17/2008 |
Q: I want to know when you start a sole propritorship. Im will be doing business in Little Rock ... A: I don't know what state and local taxes you would have to pay. For Federal purposes, you would pay ...
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| Receiving Lump sum because of Gas well Lease -Tax implications? | 9/17/2008 |
Q: We are a family of 8 making $50,000, we have the oppurtunity to sign a Gas well lease for 3 - 10 ... A: The additional income might put you into a higher tax bracket but not all of your income would be ...
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| Two Homes - Deductions | 9/17/2008 |
Q: I am thinking about getting a second home, and making that my primary residence (i've lived in the ... A: Yes, you can deduct mortgage interest and taxes on two homes. If you rent out the first home you do ...
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| principal residece | 9/15/2008 |
Q: Please answer my following questions 1. What is the difference among principal residence, main home, ... A: 1. There is no difference. 2. You can do that if you want but each of you would have to actually ...
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| Filing Exempt on w-4 | 9/13/2008 |
Q: I am thinking of filing exempt for the rest of the year on one of my jobs taxes, because I need the ... A: If last year you had a refund of ALL federal income tax withheld and expect to have no tax liability ...
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| Taking Remaining Depreciation of a Abandoned Farmhouse | 9/12/2008 |
Q: Inherited a portion of a 160 acre farm in 2004 and then bought out siblings in 2005. Farm had an ... A: If you continue to depreciate them you can't have them torn down now. If you tear them down now it ...
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| forclosure - federal tax liability on shortage | 9/12/2008 |
Q: My sister-in-law's residence will be sold by foreclosure in a few months. If the mortgage is $120K ... A: Because of all the foreclosures people are facing, the government has a program to allow taxpayers ...
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| full time student, 20 years old, full time job? | 9/12/2008 |
Q: I was just wondering if you could answer this for me. Everyone I've asked has different answers. I'm ... A: Unless you pay more than half of your own support, your parents are entitled to claim you. You can ...
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| Tax treatment on distribution of employer stock from a 401(k) | 9/11/2008 |
Q: Would you please review for me the tax treatment afforded to the distribution of employer stock from ... A: I assume that you are going to do a rollover to an IRA. If so, you can either sell the stock within ...
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| Stock rightoffs? | 9/8/2008 |
Q: I'm looking at a $23000 loss on stocks this year. Can I get some of that back? Thanks Keith A: First you can offset any capital gains and then you can offset $3,000 of other income. The unused ...
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| Tax implications of joint accounts | 9/3/2008 |
Q: I currently jointly own several investments with another person. I have looked into how to handle ... A: You need to ask the IRS to mail you a 1099 and a 1096 rather than download them at their website. ...
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| Taxes on land sale | 9/1/2008 |
Q: My cousin and I jointly own undeveloped land that was a part of my grandfather’s estate. We are in ... A: The one who receives the payments can transfer half to the other and issue a 1099 at the end of the ...
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| Income Tax | 8/30/2008 |
Q: I am the executor of my mother's small estate. She had two stocks. I filled out the paperwork to ... A: Since you inherited the stocks and sold them immediately there would be little or no gain on the ...
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| Sale of Personal Residence - Wife or no wife | 8/30/2008 |
Q: I was previously married and divorced...several years later, in 1988, I bought a house in my name ... A: Since you weren't married and your wife was not an owner of the home, she could not claim an ...
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| Income Taxes | 8/29/2008 |
Q: I am a sales rep who receives a bi-monthly paycheck and a monthly commission check. Why are my ... A: So the difference is 10%. If the taxes taken include social security, medicare, Federal income tax ...
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| Income Taxes | 8/29/2008 |
Q: I am a sales rep who receives a bi-monthly paycheck and a monthly commission check. Why are my ... A: You would have to ask your employer about how they determine how much to deduct for Federal income ...
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| One time capital gains exemption | 8/28/2008 |
Q: My 77 year old elderly mother lives with us, she recently sold her small condo and is taking all the ... A: If she owned and lived in her condo as her main home for 2 years during the 5 years preceding the ...
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| question | 8/28/2008 |
Q: My daughter recieves disability benifits because her father is disabled. I had planned to claim her ... A: You didn't say whether or not you and her father are married so I'll assume you are not. Unless the ...
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| 401k Early Withdrawal | 8/28/2008 |
Q: I was interested in starting a business next year and wanted to use part of my 401k funds to finance ... A: If you take an early distribution from your 401(k) you will pay income tax at whatever rate your ...
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| max income? | 8/28/2008 |
Q: Carole... I am 65, divorced and living alone. I am disabled and was on disability (changes to ... A: For 2008 your income can be as high as the total of your standard deduction and your personal ...
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| capital gain tax | 8/26/2008 |
Q: I am a real estate agent and I was working with a buyer in February 2008 and they bought a ... A: Yes, they would have to pay short term capital gain taxes if they have a gain. To determine whether ...
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| Caregiver taxes | 8/25/2008 |
Q: I have a yearly income of 12,000.00 taking care of children in my home. I am married with 2 children ... A: Since you are self employed you will report your income and expenses on Schedule C. In addition to ...
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| upside down on house and have to move - can we afford to rent it at a loss? | 8/25/2008 |
Q: We purchased a home for $550k 4 years ago that has lost about 100k in value. I am being relocated ... A: If you manage the rental yourself, you can deduct up to $25,000 loss on a rental home from your ...
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| Quick Deed Transfer Tax Liability | 8/23/2008 |
Q: My husband and I are in the process of quick deeding a home we own to our mother. We added our ... A: The gift tax exclusion is $1 million. The estate tax exclusion is $2 million for decedents dying in ...
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| Quick Deed Transfer Tax Liability | 8/23/2008 |
Q: My husband and I are in the process of quick deeding a home we own to our mother. We added our ... A: When you give more than $12,000 in a given year to an individual, you are required to file a gift ...
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| lump-sum social security benefits | 8/21/2008 |
Q: I received a lump-sum social security benefit in 2007. The statement showed the portions which were ... A: Yes you have to include the 2003 portion. But there is a way to minimize the tax you will pay. ...
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| Capital gains on home that sold | 8/21/2008 |
Q: I have had conflicting advice on my options with the money I made as a profit from selling my home. ... A: You no longer have to reinvest the gain on the sale of your main home to defer taxes on the gain. ...
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| reinvesting capital gain (profit) | 8/21/2008 |
Q: Several years ago my husband and I bought the house next door to take the place of our rented ... A: The only way to defer paying capital gains tax on the sale of a business asset is to do a like kind ...
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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: Certainly some of the expenses (such as therapists) are deductible as medical expenses to the extent ...
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| Social Security Tax | 8/20/2008 |
Q: I am on Social Security and it is my only source of income. I draw $1180 per month and am 85 years ... A: No you don't have to pay taxes on your social security income if it is your only income. But you ...
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| capital gain?? | 8/20/2008 |
Q: My husband and I started to build a house in the winter of 2006 and moved in February. 2007. Now we ... A: The two year period is the time you owned and lived in it as your main home. If you move prior to 2 ...
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| IRA beneficiary designation | 8/20/2008 |
Q: I'm a 22 year old Canadian citizen and my grandmother (a US citizen) wants to designate me as the ... A: Depending upon the custodian of your grandmother's IRA, you may not need a Social Security Number. ...
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| Taxes due for Contractor (what, how much and when) | 8/20/2008 |
Q: Hope you can help me with my tax related question. I work as an employee and earn about $100K per ... A: You will report your income amd expenses from the contractor job as self-employment income on ...
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| Draws with out with taxes. | 8/19/2008 |
Q: Three men started up a business. We take a draw. All the same. First year in business. Do we have to ... A: When you file a partnership return, net partnership income is passed to each of the partners via a ...
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| Timing of 401K Distribution before or after divorce | 8/19/2008 |
Q: Carol, My wife of 14 years and I are getting divorced and we have agreed that my 401K will not be ... A: Assuming you are not yet 59 1/2, there will be a 10% penalty in addition to income tax on ...
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| Stimulus Rebate Check | 8/18/2008 |
Q: When I filed the tax return for 2007, I filed as married jointly..But I used ITIN number for my ... A: Unfortunately the IRS is correct. Had you filed Married Filing Separately, you would have qualified ...
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| Capitol Gains ( Wash Sale) | 8/18/2008 |
Q: I am new to stock trading and as such was ignorant to the wash sale regulation when I made this ... A: As I understand from what you wrote, you no longer have any shares of the stock. That being the ...
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| Taxes for Babysitters | 8/17/2008 |
Q: We have paid our sitter over $6,000 this year. We are not using her anymore - had to fire her. Do ... A: I don't know of a web site to calculate how much you will owe the government. You will calculate it ...
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| capital gains | 8/17/2008 |
Q: My grandmother,grandfather, and mother were all on the title and lived in the house together.The ... A: In a word, yes. Assuming it was everyone's main home and they lived in it 2 years during the 5 ...
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| Taxes for Babysitters | 8/17/2008 |
Q: We have paid our sitter over $6,000 this year. We are not using her anymore - had to fire her. Do ... A: If she worked in your home as your employee, you need to pay the employer's share of social security ...
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| Selling home-1099s | 8/15/2008 |
Q: My wife and I are selling a home for aprrx. 25k more than we paid for it. Physically we will not ... A: If the home is your main home and you have owned and lived in it for 2 years during the 5 years ...
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| Filing Tax Return for Multiple Years | 8/15/2008 |
Q: What is the best way to file unfiled prior years tax returns? Send them one at a time and what for ... A: Send them all at once but in separate envelopes. You can file the current year at the same time ...
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| Tax Question around Inventory | 8/14/2008 |
Q: I have a start up sole proprietorship of selling items (toys) I collected for a while. I am unsure ... A: The easiest way to value inventory is cost. You start with your beginning inventory - which will be ...
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| real estate cost basis | 8/14/2008 |
Q: situation: recently divorced - husband did all the taxes - I received rentals in the divorce - my ... A: If you filed joint returns reporting the rentals in the past, you can get a copy of prior year tax ...
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| Business in OR, Work in TX | 8/14/2008 |
Q: I own a small e-business (sole proprietorship) in Oregon but have recently relocated for a job in ... A: Reregister the business in Texas so that in future years you won't have to worry about Oregon. I ...
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| Income Tax Filing | 8/14/2008 |
Q: My fiance is divorced with 5 children. Their mother has residental custody. He claims 2 or 3 every ... A: If you file jointly, your standard deduction will be higher than that for head of household and any ...
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| Stock sale from deceased | 8/14/2008 |
Q: I am the personal rep. for my aunt who died in 2006. I discovered additional stock after the bulk ... A: I believe that you would need to file a tax return for the estate. Estate tax rates are higher than ...
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| taxes | 8/10/2008 |
Q: My mother-in-law "gifted"her house over to my husband and sister-in-law in 2004(Aug).At that time we ... A: Perhaps the county or tax assessor's office has records that would help you find what was paid. Or a ...
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| taxes | 8/10/2008 |
Q: My mother-in-law "gifted"her house over to my husband and sister-in-law in 2004(Aug).At that time we ... A: To determine the gain or loss on the sale, you need to know what your mother-in-law paid for it ...
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| capital gains tax | 8/7/2008 |
Q: My fiance' and I currently we own separate homes. I will not be ready to sell my home for another ... A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ...
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| tax rebate | 8/6/2008 |
Q: my 89 year old neighbor wants me to fill out a form she received from the IRS. they said that she ... A: Assuming you are not being paid to help her and you won't sign the return as a paid preparer, you ...
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| IRA Withdrawal for dental work | 8/6/2008 |
Q: My 79-year-old mother must have some major dental work done, which will be not be reimbursed by her ... A: Since her income is relatively small it should work out ok for her. A small amount of her social ...
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| IRA Withdrawal for dental work | 8/5/2008 |
Q: My 79-year-old mother must have some major dental work done, which will be not be reimbursed by her ... A: She can claim as an itemized deduction her dental work as well as other medical expenses, including ...
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| Taxes paid on retirement rollover | 8/4/2008 |
Q: I recently rolled over my retirement funds from a previous employer. I had 25% distributed directly ... A: When you said you paid taxes on the amount distributed to you, do you mean that they withheld taxes? ...
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| Mileage Reimbursemt | 8/3/2008 |
Q: What if I drive my personal vehicle for work purposes, I have somewhat of a sales position ... A: They aren't required to pay you a specific amount or anything at all. Any expenses you pay over ...
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| 1099 or W-2 | 8/1/2008 |
Q: I will be working away from home for an extended period of time. I will have to 1) rent a place to ... A: As a W2 employee you can deduct unreimbursed employee business expenses as an itemized deduction to ...
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| Selling Primary Residence/Capital Gains | 7/31/2008 |
Q: My husband and I are selling our primary residence and plan to move into a rental house we have ... A: If you sell before 2 years have elapsed, you could have a reduced exclusion if your move was for ...
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| Military Retirement | 7/31/2008 |
Q: I have a military Retirement that is split with an ex-spouse. She receives a 1099R from DFAS. I am ... A: Since you have a tax court decision that supports your claim that this is alimony, it sounds right ...
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| energy efficient siding: Fed tax deduction? | 7/31/2008 |
Q: We are looking at the possibility of replacing our existing vinyl siding with a new foam-backed ... A: Siding is specifically excluded for an energy tax credit although insulation is included. The ...
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| Capital Gains Tax | 7/29/2008 |
Q: I was left a large amount of money last year. I have spent some of it and right now it is in an ... A: If you sell the investments within your account you will be taxed on the gain over what you paid for ...
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| Claiming mileage/fuel | 7/29/2008 |
Q: Greetings, I live in New Mexico, and work as a full time, permanent Federal Employee in Texas. I ... A: Driving back and forth to work is commuting and the mileage is not deductible. If you use your car ...
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| selling stock | 7/28/2008 |
Q: My mother has about $70,000 in Exxon stock that she wants to sell and divide equally to her ... A: Under current law, she can give $12,000 (cash, stock or property) to any number of individuals in a ...
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| Divorce and Retirement plan options | 7/27/2008 |
Q: My husband and I are getting divorced. He is 58. He would like to keep our home, which is fine with ... A: If he takes out his entire retirement fund he would pay income tax on the distribution as well as a ...
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| farm equipement | 7/27/2008 |
Q: I do not presently own or operate a farm, but I own various pieces of farming equipment that I use ... A: If you are paid as an employee you could deduct depreciation on the farm equipment as an ...
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| disability and early distribution | 7/23/2008 |
Q: I have long-term disability status from Social Security and my employer. Do I need any special form ... A: Fidelity will send you a 1099R for the distributions and they should code it correctly so that you ...
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| child care | 7/22/2008 |
Q: my cousin is going to babysit my 2 year old boy 5 days a week. she is 18. does she have to be ... A: As far as Federal income tax is concerned, it doesn't matter whether or not she is registered. ...
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| How to report a rollover | 7/20/2008 |
Q: I am a selgf-employed preparer of individual tax returns. For 2007 one client had a rollover ... A: I think I would have reported it as a rollover but, as you said, the paperwork doesn't support that ...
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| Capital Gains on Real Estate | 7/18/2008 |
Q: My wife currently own our home in San Jose, Ca, approximate value $400,000. We also own 3 acres of ... A: All of that would work but you could not exclude all the gain on the rental unit even if it is ...
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| federal taxes due? | 7/18/2008 |
Q: my name's candice and i recently opened a small business in NJ. This is my first quarter filing ... A: Assuming that you are a sole proprietor, you will report your business income and expenses on ...
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| rental property losses | 7/16/2008 |
Q: I own a condo in California. I am considering moving to Washington State and renting out my property ... A: When you deduct your expenses they include mortgage interest and property taxes as well as other ...
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| need to know how to do taxes | 7/16/2008 |
Q: i work for a texting company as a ic and no taxes taken out of checks i just started and i am paid ... A: You will report your income and expenses on Schedule C. Your net self employment income will be ...
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| rental property losses | 7/15/2008 |
Q: I own a condo in California. I am considering moving to Washington State and renting out my property ... A: You report your rental income and expenses on Schedule E. One of your expenses is depreciation. Be ...
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| SEP for SMLLC | 7/14/2008 |
Q: I am the owner of a single member LLC without an EIN or other employees. Is it possible to have a ... A: A single member LLC is not recognized as an entity for income tax purposes. The income and expenses ...
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| Sale of property | 7/13/2008 |
Q: My Home burned on 1-31-08. The home insurance paid for the mortgage. I sold my property on 6-30-08. ... A: You will owe taxes on the gain (if any) on the sale of your home. First you need to calculate your ...
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| tax id number - EIN | 7/11/2008 |
Q: Dunton, I would like to start a small,very small business selling potted plant arrangements and I ... A: From a Federal tax standpoint you don't need a tax id number unless you employ others. Also there is ...
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| Mileage Reimbursement | 7/10/2008 |
Q: I work for a small insurance agents office in Utah and use my personal car for work appointments and ... A: They aren't required to reimburse you for your mileage at all. Since they reimburse you at less ...
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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: You don't need to report receiving the lots on your tax return. When you sell them you will need to ...
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| tax break for geothermal heat | 7/9/2008 |
Q: I have just purchased a new home which was a builder's foreclosure. I am considering installing a ... A: There is an energy credit that might give you a tax credit if you purchase this system. A qualified ...
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| disability ss | 7/8/2008 |
Q: I just received a check from social security a disability check. They put it in a joint account. ... A: Up to 85% of your social security disability could be taxable depending upon the amount of your and ...
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| payroll or not? | 7/8/2008 |
Q: I am currently earning approx. $1000/month before taxes at my job (I live/work in Houston, TX). My ... A: Because your employer is not paying half of your social security and medicare, you are paying it all ...
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| Social Security | 7/8/2008 |
Q: I read your answer to a question about a retired person working part-time and having taxes withheld ... A: The law requires that employees and their employers pay social security and medicare tax even though ...
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| payroll or not? | 7/8/2008 |
Q: I am currently earning approx. $1000/month before taxes at my job (I live/work in Houston, TX). My ... A: You will be required to report your income on Schedule C. If you have expenses to deduct you can ...
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| Full time college student and taxes | 7/7/2008 |
Q: I am 18 and have made about $6000 at a part time job so far, and will have made around, $8000 or ... A: The parents of full time students can claim their children as dependents unless the student pays ...
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| IRA DISTRIBUTION | 7/7/2008 |
Q: Carole, I'm retired and have an IRA. I want to go into a business and use some of my IRA money to ... A: Any money you take out of your IRA will be subject to income tax and, if you are under 59 1/2, a 10% ...
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| Tax on retirment | 7/2/2008 |
Q: I am 56 and have become disabled and will be receiving ss benefits if I were to request my ... A: By disability, do you mean social security disability or a private plan? If it's a private plan and ...
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| Tax on retirment | 7/2/2008 |
Q: I am 56 and have become disabled and will be receiving ss benefits if I were to request my ... A: Since you are disabled you won't have to pay a penalty for early withdrawal. The income would be ...
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| Renters | 6/30/2008 |
Q: We are sorry, but Mike Wellman wasn't able to answer yourI purchased a home last Novemeber. After ... A: You report your rental income and expenses on Schedule E. One of your expenses is depreciation of ...
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| Addition of Owner to House Deed | 6/30/2008 |
Q: I am currently living with my parents in Los Angeles, CA and my parents would like to officially add ... A: If they give you a part of the home and that part is worth more than $12,000 from each of them, they ...
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| Stock Transfer / Gift Tax | 6/26/2008 |
Q: When I was very young my grandparents put a large amount of stock in my name (my grandparents were ... A: You pay capital gains tax only if you sell something, such as stocks, at a gain. If you give them ...
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| Sale of vacation home | 6/25/2008 |
Q: My family built a small vacation home that my parents then lived in for 20 yrs. Seven years ago ... A: When you receive a gift of property your basis in the property is the basis of the donor plus ...
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| capital gains taxes | 6/25/2008 |
Q: my mother-in-law deeded her home to my sister-in-law and my husband in 2004 but continued to live in ... A: To determine the capital gain on the sale you deduct the basis from the adjusted selling price. The ...
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| W2 what to claim | 6/25/2008 |
Q: I just got married this past year and my wife has two children from her previous relation ship. We ... A: When you and your wife file your tax return, you will claim 4 exemptions (yourself, your wife and 2 ...
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| IRS CP2000 | 6/24/2008 |
Q: I just got a CP2000, from the IRS - stating that my husband & I did not show all taxes on our return ... A: In my opinion, your tax attorney should pay the penalties and interest because of his error. But he ...
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| Assessing cost basis for sale of business/farm | 6/24/2008 |
Q: I have a small vineyard/winery and am trying to assess whether to sell or not. The issue is that I ... A: Your cost basis would be whatever you paid for the property, plus capital improvements, less ...
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| Gains | 6/23/2008 |
Q: I will live in my home 2 years this November. If I sell my home in August (less than 2 years) what ... A: If you sell your home before being in it for 2 years, and you sell for employment reasons or health ...
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| Self-Directired Retirement and Divorce | 6/23/2008 |
Q: In our divorce, my husband gets half my retirement. The money is in a self-directed account. He ... A: Any tax due would be paid by your husband since he is the one receiving the money. But if he rolls ...
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| telecommuting | 6/22/2008 |
Q: Now that I have established my home as my office (have a signed contract), can I deduct mileage when ... A: Yes, if your home office is for the convenience of your employer, you can deduct mileage when you go ...
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| 401k distribution | 6/22/2008 |
Q: My employer has informed us that we are closing and sending our work to China at the end of August. ... A: Your best option is to roll your 401(k)to an IRA. Once in an IRA you can take out what you need. ...
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| Being on SSI or SSDI , But will be recieving lump sum payment. | 6/22/2008 |
Q: he will be receiving lump sum payment. Question is will this lump some of 35,000 have any effect on ... A: I misunderstood. I thought the lump sum distribution was from social security. Part of the ...
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| Being on SSI or SSDI , But will be recieving lump sum payment. | 6/21/2008 |
Q: he will be receiving lump sum payment. Question is will this lump some of 35,000 have any effect on ... A: Most likely some of that lump sum will be taxable. But there is a possibility that the tax can be ...
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| Mileage Reimbursement | 6/19/2008 |
Q: I am a sales rep for a fortune 500 company. My territory is a 35 mile radius of my home. My ... A: If you work from home for your employer's convenience and don't have an office at the employer's ...
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| Capital Gains w/o 1031 | 6/18/2008 |
Q: I live in Delaware and am selling a condo in South Carolina. My attorney has asked me to provide my ... A: From what you wrote I assume they are withholding taxes for SC. You're correct that when you file ...
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| Mileage deduction | 6/17/2008 |
Q: I get reimbursed for mileage at my job, is it also possible to claim my mileage as a deduction of ... A: If your employer reimburses you at less than the Federal rate ($0.485 for 2007), you can claim the ...
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| taxes | 6/17/2008 |
Q: I want to sale my mutual funds and i wanted to know how it is going to be taxed? Are there certain ... A: No, there aren't certain tax rates for mutual funds. But there are certain tax rates for long term ...
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| Independent Contractor - Estimated tax | 6/17/2008 |
Q: I recently began work as an independent contractor, and am trying to figure out the process for ... A: Yes, your're right, an estimate of what you will earn this year is better than using last year's ...
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| Tax Penalty | 6/16/2008 |
Q: I'm so glad I found you & hope you'll be able to help me. I have some stock-owning mutual funds in ... A: When you sell mutual fund shares you have to report the sale to the IRS on Schedule D showing the ...
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| Bill From Hospital | 6/14/2008 |
Q: My father as indicated in a previous question has passed on on May 17,2008. I have just checked ... A: While his heirs are not personally responsible for his bills, if they received any monies from his ...
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| w4 form | 6/13/2008 |
Q: My son (13yrs old) will be working for his father who has a lawn mowing business & I am unsure of ... A: Since I assume that you will be supporting and claiming him, you should put Single and 0 on his W4. ...
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| Filing US Return | 6/12/2008 |
Q: I have dual nationality: US & Canadian. I live in Canada and do not earn money in the US. Do I ... A: US citizens are required to file a return and report their world-wide income whether or not it is ...
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| Taxes and Eldercare between family members | 6/11/2008 |
Q: My Aunt wants to pay me for my time when I come to her home to assist in caring for her and her home ... A: If it were my aunt, I would accept the money and then spend it on something for her or give it to ...
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| buying a home with 401k | 6/11/2008 |
Q: I want to retire and buy a home for the first time.Can i take my whole amount in my 401 and use it ... A: You will have to pay income tax on the amount you take from your 401(k) and possibly a 10% penalty ...
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| Mileage Write-off | 6/9/2008 |
Q: If I am an employee of company "A", and they send me to work as a contractor for Company "B" even ... A: If you work at both companies in a given day, you can write off the mileage from A to B. But if you ...
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| Annunity | 6/9/2008 |
Q: I have 275k sitting in an annunity. I'm 55yrs, due to a physical limitation I need to able for SSI. ... A: Ask the company who holds your annuity how you can take monthly distributions. Also ask about what ...
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| Capital Gains taxes | 6/9/2008 |
Q: My mother is 84 and she makes less than 20K per year. She has just sold an investment home that she ... A: Unfortunately her income, including the large capital gain, is too high for her to qualify to pay no ...
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| 1099 | 6/8/2008 |
Q: I wrote up a contract on a commercial job. Then i went to pick up the check. They said I had to sign ... A: If they are going to pay you more than $600, they are required to give you a 1099MISC reporting the ...
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| 401K withdrawal | 6/7/2008 |
Q: my husband has $188,000 in a 401K and plans to retire the end of August 2008, he is 64. We would ... A: The $130,000 will be added to his other income (or your joint income if you file jointly) and taxed ...
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| capital gains | 6/3/2008 |
Q: My husband and I have owned our current home for 6 years and are about to close on an addtional 4 ... A: That's right! You don't pay any tax on your capital gain if it doesn't exceed $250,000. You can do ...
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| capital gains | 6/3/2008 |
Q: My husband and I have owned our current home for 6 years and are about to close on an addtional 4 ... A: If you have owned and lived in your current home as your main home for 2 years during the 5 years ...
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| IRAs | 6/2/2008 |
Q: My husband (age 74)died last month. We had a $6000 plus IRA at Wells-Fargo which I have cashed in, ... A: As long as you get the funds into the larger IRA within 60 days you can report it as a rollover and ...
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| Capital Gains | 6/2/2008 |
Q: My Home was destroyed by fire on Jan.31,2008.I am not rebuilding but buying another Home.I will sell ... A: If you lived in the home as your main home for 2 years during the 5 years preceding the date of ...
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| Penalty for underpayment | 6/2/2008 |
Q: After paying over $100,000 in taxes, I wasn't exactly happy about the notice I just got for an ... A: I would certainly ask how they arrived at that amount since taxes are ususally in whole dollar ...
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| Filing taxes while overseas | 6/1/2008 |
Q: I am a US citizen that lives in Australia I have been living overseas for the last 6 years and ... A: You would use a regular Form 1040. If you can exclude foreign income you would also need a Form ...
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| Filing taxes while overseas | 6/1/2008 |
Q: I am a US citizen that lives in Australia I have been living overseas for the last 6 years and ... A: US citizens living abroad are required to file a tax return each year to report their world-wide ...
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| IRA Premature distribution | 5/30/2008 |
Q: Carol, I went to graduate school full time from 2004-2006. During that time I borrowed about 20K ... A: The distribution is subject to income tax and a 10% penalty for taking an early distribution. There ...
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| rental tax deduction? | 5/30/2008 |
Q: If we purchased a home that is bank owned and had a rent controlled tenant, we could not evict-who ... A: You can't deduct income you did not receive. You use Schedule E to report your rental income and ...
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| Mileage Reimbursement | 5/29/2008 |
Q: The mileage reimbursement went up from $.485 in 2007 to $.505 in 2008. The price of a gallon of ... A: I have heard those rumors too but until the IRS issues the rate increase I wouldn't count on it. ...
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| 1099-MISC Taxes | 5/28/2008 |
Q: For the past 7 years I have worked during the summer for the Twp. Rec. Dept. Last year I took on a ... A: You can deduct your expenses that you pay to be able to do the job. However, the cost of driving ...
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| options to decrease tax liability | 5/28/2008 |
Q: My wife and I both have W-2 jobs and have been paying a substantial amount in taxes. Both of our ... A: If you have a farm and have a loss from your farming activities it would reduce your taxable income. ...
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| IRA contributions | 5/27/2008 |
Q: I could have sworn that when I first got instructions for making IRA contributions, I was told to ... A: With a traditional IRA you do get an immediate tax benefit since you do not pay taxes on the amount ...
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| Taxes on Gifts of Equity | 5/25/2008 |
Q: My question is based around the tax consequences to the giftor as well as the giftee, in a ... A: The recipient of a gift has no tax obligation and doesn't report the gift. The donor can give an ...
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| stock basis question | 5/24/2008 |
Q: If company ABC spins off company DEF, and issues stock for company DEF to existing ABC shareholders, ... A: The date of acquisition would be the date of the spin off. Most likely there would be no change in ...
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| railroad deductions | 5/22/2008 |
Q: I am a "new hire" with bnsf railroad here in gallup,nm.my query is this,I am unable to work at my ... A: You can deduct your living expenses at a job away from home only if it is a temporary work location ...
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| tax write offs | 5/21/2008 |
Q: can i write off the meals i have to pay for while being a truck driver without having to itemize. ... A: Yes you can. If you are subject to DOT hours of service rules, for 2007 you can deduct 75% of $52 ...
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| car donation tax deduction | 5/21/2008 |
Q: Hope you can help me. I have a 1992 chevy cavalier convertible that is not running and I'm trying ... A: When you donate a car your deduction depends on how the donated vehicle is used by the charitable ...
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| Vehicle reimbursement | 5/21/2008 |
Q: My fiance currently has to drive hundreds of miles per week for her job requirement, making ... A: Yes she can deduct the additional vehicle expenses. Assuming that she is an employee rather than an ...
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| Independant Contractor Taxes | 5/21/2008 |
Q: I didn't save any reciepts this year, but i got all my monthly bank statements, can I use these to ... A: To deduct vehicle expenses you need a written record of mileage to substantiate the business use. ...
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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 can write off the business use portion of your motor home expenses. You need to keep a written ...
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| Independent Contractors and Per diems? | 5/19/2008 |
Q: How should I report Per Diems if I'm an Indepentent contractors? ANSWER: Hi, You should report all ... A: By "employer" I mean the companies that pay you to do the judging. Each should issue you a 1099MISC ...
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| Real estate Capitol gain???? | 5/19/2008 |
Q: Our first home was a coop that was purchased in 1986 for $70,000. We lived there for seven years ... A: Your gain on the sale of the coop will be taxed as a long term capital gain at a maximum rate of ...
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| Real Estate Exchange Options | 5/18/2008 |
Q: Before my great grandfather passed he established a corporation to hold all his properties (stocks, ... A: The corporation would be required to pay taxes on the capital gain. Perhaps they could enter into a ...
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| Independent Contractors and Per diems? | 5/18/2008 |
Q: How should I report Per Diems if I'm an Indepentent contractors? A: You should report all your income and expenses on Schedule C. Your employer should issue you a ...
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| withholding allownces | 5/17/2008 |
Q: Can my wife and I with one child claim as many exemptions as needed to break even or get close at ... A: Yes you can claim as many exemptions as you need to reduce withholding so that you break even at tax ...
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| eminate domain | 5/17/2008 |
Q: My business building and land property was taken in Pa for 150,000 it was appraised for 240,000 ... A: You can deduct a loss if you actually had a loss. To determine your loss or gain, you deduct your ...
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| taxes incured when property tile changes | 5/17/2008 |
Q: What taxes will I or my father incur if he transfers his personal residence out his name and totally ... A: Your father would need to file a gift tax return to report a gift of more than $12,000 to another ...
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| Sign on Bonus | 5/16/2008 |
Q: Carole, Could you tell me on adverage what you would be taxed on a $30,000.00 sign on bonus? We are ... A: Your sign on bonus would be added to your other income and taxed at whatever rate your total income ...
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| what capital gains do I have to pay after selling vacant land | 5/15/2008 |
Q: We purchased a lot 2 years ago for 52,000 and built a house on the one side of it. We are just ... A: The maximum long term capital gains tax rate is 15%. But adding a large amount to your other income ...
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| Joint Home Ownership | 5/13/2008 |
Q: I am thinking about purchasing a home with my sister. She will live in the home in a neighboring ... A: Assuming that both of you would be obligated to make the mortgage payments, each of you would deduct ...
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| Real Estate Cost Basis | 5/12/2008 |
Q: I am the executor of my mothers estate. We recently sold her condo. After the buyer had it ... A: Those costs would be expenses of the sale rather than added to the cost basis but they do reduce ...
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| land capital gains tax | 5/10/2008 |
Q: In 2005 we bought a densely forested house lot: we had it cleared, and had it stumped out. We had ... A: Actually you add the cost of improvements to your cost basis in the land so that your gain is ...
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| Self employed | 5/6/2008 |
Q: I just recently started baby-sitting for my sister's children. It is the only source of income that ... A: When you are self employed you report your income and expenses on Schedule C and pay self employment ...
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| retired person | 5/6/2008 |
Q: My father is retired and he recieves social security and a small pension. however he wants to work a ... A: Yes, his employer should withhold social security and medicare as well as income tax. Your father ...
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| capital gains on sale of home sold on land contract | 5/5/2008 |
Q: i hope this isnt too complicated & that it doesnt cost me an arm & a leg but, it looks like it will. ... A: First of all you need to determine whether or not you had a gain. You do that by subtracting your ...
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| Sale of Non-primary property in 2005 | 5/5/2008 |
Q: Elderly parent, then 87 yrs. old. sold non-primary residence for $415K; allegedly giving grandson ... A: Assuming he/she owned the property for more than one year, any gain will be taxed as a long term ...
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| capital gains tax on vacant land sale | 5/1/2008 |
Q: I was willed a 10 acre parcel of land 5 years ago. I am currently selling the land for 65,000 and ... A: Your cost basis in the property is the fair market value of the property on the date of death of the ...
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| tax issues with a short sale | 4/30/2008 |
Q: what would be the tax implications if i do a short sale on my home. i owe $450,000 and I have an ... A: Normally forgiven debt is taxable income but since this is your principal residence, you may be able ...
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| Taxes of gross proceeds | 4/29/2008 |
Q: I forgot to claim that I exchanged shares of one mutual fund into another in 2006. The IRS says I ... A: You need to amend the 2006 return to report the sale and your cost basis in the sale. The IRS ...
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| Capital Gain on Primary Residence | 4/28/2008 |
Q: We own a 2 family home and we've been living here for about 7 years. If we sell and buy a new home, ... A: Since you rented out one apartment, you have, in effect, 2 sales. Let us assume that the apartments ...
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| esop funds | 4/27/2008 |
Q: first time home buyer ( age 51 ) can i use my esop funds ( company got sold and need to place funds ... A: Any funds withdrawn from a retirement account are taxable and subject to an additional 10% penalty ...
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| Capital Gain on Primary Residence | 4/27/2008 |
Q: We own a 2 family home and we've been living here for about 7 years. If we sell and buy a new home, ... A: You wrote that it is a 2 family home. Have you been occupying both portions? If you have and you ...
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| Contribution Deadline for IRAs-timely mailed | 4/22/2008 |
Q: I was curious if the timely mailed - timely filed principle applied to the IRA funding ? My daughter ... A: The IRA contribution for 2007 had to be in the account no later than 4/15/2008. In the mail by 4/15 ...
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| dependent | 4/15/2008 |
Q: Can my parents really claim me on their taxes? What qualifies me to be claimed on their taxes. I ... A: If your parents paid more than half of your support for the entire year, they are entitled to claim ...
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| Tax deductions for minor league baseball player | 4/13/2008 |
Q: My son is a minor league baseball player; he was informed he there are many deductions he can claim, ... A: As an employee, he can claim unreiumbursed employee business expenses as an itemized deduction on ...
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| tax rebate | 4/6/2008 |
Q: I have a few questions. I am the payee for Social Security for my wife who is disabled and her son. ... A: If you claim your son as a dependent he will not get anything on the rebate. If he files his own ...
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| Moved from India in 2006, rent deduction? | 4/4/2008 |
Q: I moved from India in Sep 06 and am a computer programmer by profession. I work with a company in ... A: If the assignment was temporary and expected to last one year or less and actually lasts one year or ...
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| Underpayment Penalty? | 4/1/2008 |
Q: I recently prepared my 2007 tax return and was informed by Tubro Tax that I fall into the category ... A: What you're referring to is the annualized method. Turbo Tax should allow you to choose that method ...
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| whether or not to use forms 6198 or 8582 | 3/29/2008 |
Q: My husband and I bought a rental fixer-upper house in mid October in 2007. We hired a contractor to ... A: If you tried to rent it in December and simply didn't find a tenant, you could complete Schedule E ...
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| Employed + Self-Employed? | 3/29/2008 |
Q: I am currently working as a freelance makeup artist and also teach professional makeup courses ... A: You will file form 1040 and report your wages on line 7. In addition, you will file Schedule C to ...
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| tax on sale of inherited land/new home purchase | 3/28/2008 |
Q: the person he inherited it from died in 2002 but my son did not find out about the land or get it ... A: He needs to report the sale and pay long term capital gains tax on the gain - maximum rate 15%. ...
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| 1099-b | 3/26/2008 |
Q: My wife sold some partnershare stock form Wells Fargo & Co. The realized gain is shown as income on ... A: If you don't report the gross sale proceeds shown on the 1099B, you can expect a letter from the ...
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| Dependent college 20 year old tax filing | 3/26/2008 |
Q: Can I e-file for free my 20 year old full-time student (being paid for by Mom and Dad)daughter's ... A: There are sites where you can e-file for free. Go to the IRS website www.irs.gov and click on Use ...
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| W-2's | 3/25/2008 |
Q: Where do I get copies of my w-2's for the last 3 years, I live in California. Thanks. A: For 2007 W2's you need to contact your employer(s). If that is unsuccessful you should contact the ...
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| Oil and gas royalties | 3/24/2008 |
Q: I have oil and gas royalties that are being paid on property that is my primary residence. I have ... A: Since the royalties are paid on property that is your primary residence, it makes sense to deduct ...
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| pay taxes with plastic | 3/22/2008 |
Q: card a.so controlled (2 agencies)and a wopping 2.49 %(i think it was)of what you owe-was wondering ... A: Normally when you use a credit card to pay for something the company selling to you pays the credit ...
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| DoD Contractor overseas | 3/21/2008 |
Q: I am in Japan with my military husband and was recently hired as a contractor by a stateside ... A: US citizens are required to report their world-wide income regardless of where they are living. ...
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| how many children? | 3/21/2008 |
Q: I was talking with my co-workers and they told me if you have a certain number of kids, you dont ... A: You have to pay taxes if your income exceeds the the total of your exemptions and standard deduction ...
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| What to claim | 3/20/2008 |
Q: I was laid off so I traveled to Texas and am currently working there as a "traveler" How do I ... A: First you need to estimate what your income will be for the year. I don't know exactly what a ...
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| Education Credits | 3/3/2008 |
Q: I have a question concerning education credits. I was unaware that I could take an education credit ... A: Yes, you can file amended returns for 2004, 2005 and 2006. You could file amended returns for prior ...
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| Earned Income Credit | 3/2/2008 |
Q: I am a single parent and have a young son. I claimed him the first year, but now the court documents ... A: Your filing status doesn't affect the Earned Income Credit. You don't have to claim him as a ...
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| Deductions | 2/28/2008 |
Q: My wife (as of December 2007) got word today that she owes something like $48,000 in taxes. $37,000 ... A: Awards from class action lawsuits are fully taxable. You can deduct the attorney fees as an itemized ...
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| ESPP-company went bankrupt | 2/27/2008 |
Q: I used to work for a company and was enrolled in their ESPP. I kept on buying and never sold those ... A: You can show the loss of a worthless stock in the year it becomes worthless. But just because the ...
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| W2/contractor | 2/25/2008 |
Q: I work for a company that issues a W2 at the end of the year. The work is part time and when I ... A: If you receive a W2 you don't use a Schedule C to report your income and expenses. If you have ...
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| taxes | 2/22/2008 |
Q: i work for a fire department in Ca. i am considered to be a compensated employee and recieve a ... A: Yes, you need to include the stipend in your income. It would be reported as self employment income ...
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| Mutual Fund and 1099 | 2/21/2008 |
Q: I had four mutual funds. They returned about $200 per month that was reinvested in more shares for ... A: You pay tax on the dividends but since they were reinvested in mutual fund shares that you sold, the ...
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| 1099-B question | 2/21/2008 |
Q: I think all together I spent about 11k$ of my own money. At the end of the year my holdings were ... A: Your stock broker reports only the sales to the IRS. You report each sale on Schedule D along with ...
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| my first 1099-B | 2/18/2008 |
Q: I inherited some $ in 2006, invested it in 2007 and have received a 1099-B, with the sum appearing ... A: If you bought and sold the investment in 2007, you should report the sale in the short term section. ...
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| Daughter's tax return | 2/17/2008 |
Q: I file a separate return for my 17 year old daughter. She had a lot of medical expenses in 2007. ... A: If she claims herself and paid the medical expenses, she can deduct them as an itemized deduction on ...
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| Primary Home Sale and SSDI Impact | 2/13/2008 |
Q: I am collecting SSDI and plan to sell our primary home. The capital gains will go to the purchase or ... A: If you owned and lived in your home as your main home for 2 years during the 5 years preceding the ...
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| State Income Tax | 2/12/2008 |
Q: My son goes to college and works in California. But he claims Oregon as his home state. In which ... A: He definitely needs to file a CA return since he has CA source income. I see no reason to file an ...
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| Inherited Real Estate | 2/8/2008 |
Q: I inherited a residential house from a friend with an appraised value of $ 99,000 at time of death. ... A: Your cost basis is $99,000 plus the mortgage payoff plus the real estate taxes. Your adjusted sale ...
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| capital gains tax | 2/6/2008 |
Q: We currently have our house on the market and when it sells we plan to retire from the money left ... A: If you owned and lived in your home as your main home for 2 years during the 5 years preceding the ...
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| Not sure about filing taxes | 2/5/2008 |
Q: I worked a total of three weeks this past year, I go to school online and I received a 1098-T. I had ... A: If you file a return you will get some Earned Income Credit because you have a child. It would be a ...
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| Taxes | 1/31/2008 |
Q: Our 17 year old started working in July of 2007. She kept every penny she made and put most of it ... A: If you provided more than half of her support you can claim her. If she had taxes withheld she can ...
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| Reporting income | 1/30/2008 |
Q: I'm a DJ I made $8100.00 in 2007 do I have to report that? Do I need a business license or a tax id ... A: If you received a 1099MISC rather than a W2, you report that income on a Schedule C. It is subject ...
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| back child support and taxes | 1/28/2008 |
Q: If my husband owes child support from before we were married and during our marriage, am I eligible ... A: No, you aren't eligible for a tax refund because of past-due child support. But if your state is ...
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| capital gains taxes on real estate | 1/28/2008 |
Q: My wife and I jointly owned a cottage that we bought for an investment and we paid off the purchase ... A: Yes you would need to live in it the full 2 years to qualify for the full exclusion. You might ...
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| rmd for ira | 1/24/2008 |
Q: I'm presently having a problem with a bank where I have an IRA CD, which has been dragging their ... A: Form 5498 is due to the IRS by June but to the IRA contributor by January 31. You can find the due ...
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| married | 1/21/2008 |
Q: I am wanting to know if i was married last year and been seprated for 6 monthes can i file seperate A: You can file separately whether or not you lived together. No one is required to file a joint ...
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| tax rebates | 1/21/2008 |
Q: I have a simple question, it may be silly. The tax rebate that is on the news that we may soon get, ... A: It isn't a silly question, but we don't know the answer yet since they are still trying to put ...
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| Employer Education Reimbursement | 1/20/2008 |
Q: My wife receives education reimbursement through her employer and the reimbursement shows up as ... A: Yes, the employer reimbursed education expenses are taxable and, as you found out, if your income is ...
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| social security disability | 1/20/2008 |
Q: MY EX HUSBAND RECEIVES SOCIAL SECURITY DISABILITY BENEFITS. MY 2 CHILDREN STARTED TO RECEIVE SOCIAL ... A: Since the SSD are in the names and social security numbers of the children, you don't report the ...
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| earned income credit and child tax credit | 1/19/2008 |
Q: I have major confusion on if I am able to claim the child tax credit along with the earned income ... A: I think I answered this before but perhaps you didn't receive the answer. Yes you can claim both ...
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| Change of Title | 1/16/2008 |
Q: I have a question regarding tax implications on change of title. Both of my parents and I have our ... A: They would be giving you a gift of their half of the house. They would be required to file a gift ...
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| Mileage deductions | 1/14/2008 |
Q: I live in Missouri and work in construction, as many other men in my situation I drive from my home ... A: Driving back and forth to work is commuting and is not deductible. If you are sent to a second job ...
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| minimum taxable income | 1/14/2008 |
Q: I have literally been living on the streets and have not filed for the past ten years because i have ... A: If you receive a W2, you need not file a return unless your income exceeds the total of your ...
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| property tax | 1/11/2008 |
Q: My husband recieved property that was left to him in a will in 2003. We did not live in this house. ... A: Yes you will pay long term capital gains tax on the gain. To determine your gain you deduct your ...
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| Clueless about paystub | 1/9/2008 |
Q: I'm not sure this is the right place for this but I'll give it a try. A new company took over the ... A: I agree with you that it should say 0 rather than 1 from what you put on your W4. You would be ...
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| Home Improvement Tax Deductions | 1/8/2008 |
Q: What qualifies as a home improvment tax deduction, and when do you deduct these? Would putting in a ... A: Costs for home improvements are not deductible. If there are major improvements they would add to ...
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| In Home Childcare Provider | 1/7/2008 |
Q: I currently watch 2 children in my home and i am wanting to be sure and give them whatever forms ... A: There is no special form to use. You could simply write up a statement saying how much they paid ...
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| Self Employment | 1/7/2008 |
Q: Okay my husband just started a new job installing hardwood floors. He works for a small company and ... A: Keep receipts for anything that he purchases to enable him to do his job. Ordinary street clothing ...
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| gift tax laws | 1/6/2008 |
Q: My question is, my sister is suppose to recieve a large amount of money from a friend that has just ... A: If she gives any gift (property or cash) to an individual in excess of $12,000 in a calendar year, ...
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| Itemized Deductions | 1/4/2008 |
Q: Hey I'm local trk driver in South carolina what are the itemized ductions can i write off on my ... A: Your unreimbursed employee business expenses are deductible as an itemized deduction on Schedule A ...
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| 401k early distribution | 1/3/2008 |
Q: Dunton. I am trying to help my parents do thier taxes, and my father got an early distribution of ... A: He should have gotten a form 1099R from the custodian showing the total distribution and the taxable ...
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| brokerage account loses | 1/3/2008 |
Q: I have losses in my brokerage account, as well as carryover losses that will be well over $3000. I ... A: You have to report the interest income along with your bank interest. Long term means that you held ...
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| Tax Question | 1/3/2008 |
Q: Ok heres my situation, I have lived with and supported my girlfriend and both of her kids for the ... A: Since you are not related to the children you can't claim them for Earned Income Tax Credit ...
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| IRA Early Withdrawal | 1/2/2008 |
Q: I lost my job and ended up finding employment in another state. We were in the unfortunate ... A: There is no hardship provision to exclude the 10% penalty for early distributions from an IRA. Some ...
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| captial gains- exemption?? | 1/2/2008 |
Q: my wife and I own a home in Tucson Arizona and we rent an apartment in San Francisco. We purchased ... A: 1. Your understanding of the law is basically correct except that the maximum capital gain tax rate ...
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| mileage reimbursment from employer | 1/2/2008 |
Q: My husband just started a job in where he is a field tech and uses our personal car for his job. ... A: You need to have a written record of the business miles as well as the total miles and commuting ...
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| Social security deduction from employer | 12/31/2007 |
Q: Carol - I am 55 yrs and have my retirement 'set'. I just have to continue working until 59 1/2 ... A: In your situation you do have to pay social security and medicare on your earnings. It is possible ...
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| babysitting deductions | 12/30/2007 |
Q: I babysit from my home. Is there any deductions I can count on my expenses for income tax for 2007? ... A: Yes, you can deduct any out-of-pocket expenses plus you can deduct a portion of the expenses of your ...
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| capital gains on sale of land | 12/30/2007 |
Q: In 2005, I bought 40 acres of land. Basically, I'm considering selling it and was wondering what the ... A: Assuming that you sell it in 2008, the maximum long term capital gains tax rate is 15%. If you are ...
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| Do I need to file taxes as a senior? | 12/29/2007 |
Q: I liked your professional profile so I chose you to answer my question. I am a senior who is on ... A: You have to file a tax return only if your income exceeds the total of your standard deduction plus ...
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| Taxable Horse Racing Ticket | 12/29/2007 |
Q: I recently place a Pic-6 bet at my local OTB and the payout was 3,186.00. Can I give that ticket to ... A: You can do whatever you like with the winnings but if the winnings are reported to the IRS under ...
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| Truck payment write off | 12/29/2007 |
Q: My husband is an owner operator of a trucking company with only his truck. Our payment for the ... A: That is true. You can write off only the interest. But you can also depreciate the truck assuming ...
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| filing joint | 12/20/2007 |
Q: My wife and I have been filing a ajoint return and the IRS has been taking our returns because I owe ... A: If they say you no longer owe taxes you don't need the injured spouse form. But just in case you do ...
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| Income tax | 12/20/2007 |
Q: I bought a truck this year from a dealership and paid approx $2000 in taxes. Can I get this back by ... A: You can choose to take an itemized deduction for either state sales tax or state income tax (if your ...
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| Independent Contractor deductions | 12/18/2007 |
Q: I currently live and work in the Chicagoland area. I have been asked by a contracting company to ... A: If your assignment were temporary and expected to last less than one year, you could deduct your ...
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| qualifying for head of household? | 12/18/2007 |
Q: i have lived w my boyfriend for 6 years now h & r block use to let me claim head of household up ... A: You don't qualify as Head of Household because you don't pay more than half the upkeep of the ...
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| taxes per check | 12/16/2007 |
Q: I work in PA and come January I will be offered all the over time i want. My question is if their is ... A: Yes it sounds like you will go into a higher tax bracket. The tax brackets are 10%, 15%, 25%, 28%, ...
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| Short sale/Forclosure tax liability | 12/16/2007 |
Q: I have a rental property that I am going to have to short sale or foreclose on. I have heard that ... A: If the debt is discharged in bankruptcy you would not have to pay tax on it. But if it not within ...
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| IRA Distributions | 12/15/2007 |
Q: In April 2001 I inherited an IRA from my deceased brother. (It is now about $66,000 in value). My ... A: You can try taking the distributions you should have taken beginning in 2002 (the year after your ...
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| Sale of Land | 12/14/2007 |
Q: Carole - My wife and I recently sold land in which we owned for a little over three years. The land ... A: You will pay long term capital gains tax (maximum 15%) on the gain. The gain is the difference ...
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| Ex-husband failing to pay taxes | 12/14/2007 |
Q: I left my ex-husband and filed for divorce in 2003. The divorce was not final until 2005 because he ... A: Since you did not file jointly you have no obligation for his Federal tax lien. Yes, you can file ...
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| due date for taxes on lump distribution | 12/13/2007 |
Q: I think its Jan1. Is this just for the taxes on the distribution or does it include my general ... A: Income from a lump sum distribution would be included with your other income. If you think you will ...
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| Separation/Divorce - who can claim dependent? | 12/10/2007 |
Q: For 2006, I claimed my 4 year old son as a dependent. His mother and I were separated the entire ... A: From everything you told me you are the custodial parent as far as income tax is concerned. The IRS ...
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| Capital gains on gift of land - non charity | 12/10/2007 |
Q: I and my wife are gifting to my son and his wife a 1.3 acre of land (only) from my 10 acre piece ... A: I think I already answered this question but perhaps it went astray. There is no capital gains tax ...
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| Sale of Vacant Land - Taxes | 12/9/2007 |
Q: We have a small separate piece of vacant land (.3 acres). Bought 1984 with 30 acres other property ... A: The capital gain will be the difference between what you paid for it and what you sell it for. The ...
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| capital gains relationship to taxable income | 12/8/2007 |
Q: I have sold my personal residence after 12 years. I understand that I am exempt from capital gains. ... A: The gain on the sale of your personal residence isn't reported at all so it doesn't affect your ...
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| moving | 12/8/2007 |
Q: My wife ownes a inhome daycare. We deduct expenses on our house on our personal tax return. We ... A: I assume that you will be selling the home if you move. If you have owned and lived in it as your ...
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| beneficiary tax law | 12/8/2007 |
Q: I am the beneficiary for my aunt's jumbo CD, mutual fund and money market accounts. Upon her death, ... A: If you inherit cash you don't pay any taxes. If her estate is large enough, the estate may pay ...
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| re: forgiveness of debt | 12/7/2007 |
Q: I understand that any forgiveness of debt by a credit card company is considered taxable income to ... A: You will declare the income in the year you are sent a 1099 by the credit card company(ies). ...
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| owning 2 primary residences | 12/6/2007 |
Q: I am looking to move to PA. I am currently living in Northern VA. With the market the way it is, I ... A: If you rent the VA home you will have rental income and you will deduct your rental expenses, ...
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| nanny tax | 12/4/2007 |
Q: We have a babysitter/nanny that cares for our child in our home about 12 hours a week. She also ... A: As you suspect you should have been withholding and paying social security and medicare on her wages ...
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| appreciated stock into SEP IRA? | 12/4/2007 |
Q: I bought stock this year that has appreciated greatly (lucky me). Is it possible to put the stock, ... A: Too bad you didn't buy the stock within an IRA. I don't see a way to get stock you already own into ...
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| Taxes | 12/4/2007 |
Q: ...Someone told me I could claim my Mother on my taxes since she lives with me.....she does get ... A: If you provide more than half of her support, you can claim her. Her support includes fair rental ...
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| Investment property | 12/3/2007 |
Q: Greetings: I just acquired an investment property that I intend to rehabilitate and sell for a ... A: Expenses of the rehab will add to your basis in the property. If you rent out part of it you can ...
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| Decedent's mutual fund redemption | 12/3/2007 |
Q: My mother passed away on August 15 of this year (2007). A little over a month later, I initiated an ... A: You will need to file a tax return for your mother for 2007. Included in her income will be the ...
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| Capital Gain tax Primary residence that is now used as a rental propoerty | 12/3/2007 |
Q: We have lived in our home for 3 years. In July we moved to another house and kept our first home as ... A: If you sell the rental property next year you can exclude gain on the sale EXCEPT the amount of gain ...
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| selling a house | 12/3/2007 |
Q: I am married and have just sold my wife's house that I have lived in for 2 years. She bought that ... A: There is no longer a provision in the law to defer taxation of gain by investing in another home. ...
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| tax question | 11/30/2007 |
Q: I am living in AL and I have created a learning center that I would like to sell at a teacher ... A: You would need to report your income and expenses on Schedule C since you will be self-employed in ...
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| 401k rollover to IRA distribution | 11/27/2007 |
Q: I rolled my 401k with pre and post tax dollars into an IRA and now will take my distribution at age ... A: Any taxable amount, including earnings on the non-taxable portion, will be taxed as ordinary income. ...
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| rental property improvement v/s repair | 11/26/2007 |
Q: my question is 2 parts. First is buying a new fridge to replace an old one considered a repair or ... A: In a rental property a new refrigerator is depreciated rather than expensed. A refrigerator is 5 ...
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| tax help | 11/25/2007 |
Q: I took out a tsp loan in 2005 while I was working for the USPS. I quit a few months after that and ... A: If you have ties (such as a bank account) in any state that has a personal income tax, you would ...
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| truck driver 1099-misc, 1040c+2106? | 11/23/2007 |
Q: My father is a truck driver leased onto a small trucking company as an independent contractor(but he ... A: Since he is an independent contractor he will report his income and expenses on Schedule C. As you ...
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| capital gaines tax on house sold in divorce | 11/22/2007 |
Q: My husband and I were divorced in April of this year, and sold our house in June, also of this year. ... A: You will both have to pay capital gains tax on the sale of your home. There is no longer a ...
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| gifting stock. | 11/20/2007 |
Q: I am going to recieve stock as a gift. Approximate current market value is around 150,000. I am ... A: Recipients of gifts do not pay gift tax; the donor is required to file a gift tax return. Most ...
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| Can I claim my mom as a dependent when filing Tax Return in 2007? | 11/20/2007 |
Q: I am a Green Card holder, living and working in the U.S. My father passed away and my mom lives in ... A: Since your mom lives in China and does not have a Taxpayer Identification Number in the United ...
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| taxes on sales from UTMA accounts | 11/19/2007 |
Q: He is 16 years old. The shares have made a considerable profit - nearly doubling it value. Can you ... A: If your son's gain is a capital gain, the maximum tax rate is 15%. From what you wrote I assume ...
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| Capital gains on sale of rental property | 11/19/2007 |
Q: My wife and I have owned a rental property since 1975. We lived in it from 1975 to 1978 and have ... A: To qualify for the capital gains exclusion you must have owned and lived in it as your main home for ...
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| Beneficiary Taxes | 11/18/2007 |
Q: My mother passed away and left 6 children as beneficiaries of her home,in the state of Missouri. Our ... A: If you sell it after you inherit it your basis in the home is the fair market value of the home on ...
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| Age Report Taxes | 11/18/2007 |
Q: I am 17 yrs.-old and i wanted to know if I could report taxes? Or not? Because i have a job.. A: It depends upon how much you earn on your job. If your parents claim you and you earn more than ...
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| Capital Gains Tax? | 11/17/2007 |
Q: My boyfriend just bought a condo for us 7 months ago and just found out he's going to be transferred ... A: Since he is moving for employment reasons, he would be able to exclude gain on the sale. The ...
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| tax refund | 11/17/2007 |
Q: I claimed my 19 yr old son as a dependent when I filed. He also claimed himself as a dependent on ... A: One of you will have to pay back all or a part of your refund. If your son supported himself then ...
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| Sale/Purchase of home | 11/16/2007 |
Q: I really don't understand the recent changes to the tax effects of selling a home if you use all of ... A: There is no longer a provision in the tax laws that allows you to defer taxation on gain if you ...
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| Cashing out my Simple IRA | 11/15/2007 |
Q: I have worked at an office job for the past five years. I have about $22K in my Simple IRA. I ... A: Unfortunately there is no way to avoid the 10% penalty or the income tax. Being a first time home ...
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| charitable contributions | 11/14/2007 |
Q: I have read the records to keep for contributions of $500 -$5,000. I have a large number of ... A: You need from the organization written acknowledgment of the contribution. It must contain the name ...
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| Sale of Land/ Capital Gains | 11/14/2007 |
Q: My husband has 1/4 ownership of 10 acres of land deeded from his father as a gift. this was rented ... A: Since you received the property as a gift you need to know your basis. The basis of gift property ...
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| taxes-recently married | 11/13/2007 |
Q: I browsed through a few pages in attempt to find this question because I'm certain it's been asked ... A: What you put on your W4's only affects what is withheld for income tax not how you file your tax ...
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| Short Sale Taxes | 11/9/2007 |
Q: I have a rental property that I am trying to short sell.Currently I owe $630,000. Most likely I will ... A: As your CPA said, if the mortgage holder isn't able to get their money out of the house sale, you ...
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| Tax on withdrawal from pension | 11/8/2007 |
Q: I want to give my daughter $20k for a down payment on her first home. I am 61 and still work and my ... A: Personally I wouldn't touch a retirement plan. You would pay income tax on the money withdrawn, ...
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| o versus 1 | 11/7/2007 |
Q: Similar to other questions you've answered. I receive $1500.00 gross/check. Currently I claim 0, ... A: If you claim 1 chances are you will come out about even - perhaps a small refund or a small balance ...
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| tax | 11/6/2007 |
Q: I had my taxes prepared by H&R Block last year. How can I look at my tax papers and find out what % ... A: Since this money would be in addition to your other income, I would use the marginal tax rate. You ...
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| tax | 11/6/2007 |
Q: I had my taxes prepared by H&R Block last year. How can I look at my tax papers and find out what % ... A: H&R Block gives you, in addition to your tax return, informational papers which should include your ...
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| indiv 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: He will report his income and expenses on Schedule C. The self employment tax (social security and ...
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| Social Security Lump Sum Payment | 11/5/2007 |
Q: I applied for SSDI approx. 5-6 years ago. I received a lump sum backpayment this year? Do I have to ... A: You may need to pay taxes on up to 85% of your SSDI depending on the amount and the amount of your ...
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| "side" business | 11/5/2007 |
Q: I am involved taking pictures for a local sports club. I am going to take pictures for them at no ... A: Since you are self employed, you will report your income and expenses on Schedule C. You can deduct ...
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| Rental property expenses | 11/4/2007 |
Q: I purchased a house I intend on renting as soon as it is ready. The house requires repairs and has ... A: Any repairs done before it is a rental are non-deductible. Once it is a rental you can deduct the ...
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| tax write offs | 11/3/2007 |
Q: The local us forestry department needs acorns to replant trees. Is there any way to write off the ... A: You can deduct the cost of the acorns (but not your time in harvesting them) as a charitable ...
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| capital gains | 11/2/2007 |
Q: My wife and I hold a Note in the state of California and were informed that it is to be paid in ... A: A 1031 exchange involves the exchange of business-use property for business-use property so the note ...
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| form 1099 | 11/2/2007 |
Q: Can u please tell me that is it legal to file income through form 1099 which comes from online ... A: You pay income tax on every dollar of net self employment income but self employment tax is paid on ...
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| Allowances and Tax | 11/2/2007 |
Q: I recently (today i.e. Nov 1) noticed that the number of allowances declared on my pay stub are 3. I ... A: If you will owe more than $1,000 when you file your return, you will be assessed a penalty for ...
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| form 1099 | 11/2/2007 |
Q: Can u please tell me that is it legal to file income through form 1099 which comes from online ... A: Those whose income is reported on a 1099MISC are considered self-employed and report that income and ...
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| beneficiary of 401k | 10/31/2007 |
Q: what are my options concerning the death of a 401k owner, as i am sole beneficiary? can i ... A: You can't roll it into your 401(k) plan but you can roll it to an inherited IRA and then take ...
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| Write offs for business's | 10/30/2007 |
Q: I am writing in regards to write off in business's. My husband had opened a new business and he has ... A: You didn't say if your husband owns the vehicles or if the drivers use their own. Either way he can ...
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| 401k & State Taxes | 10/30/2007 |
Q: Long story short...husband and I moved from NC to SC. We both cleaned out our NC-based 401k ... A: Since the 401(k) is NC source income, NC would be the recipient of the tax. I don't know whether or ...
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| donations | 10/27/2007 |
Q: I recently donated an electronic keyboard I bought six years ago for about $900. I donated it to a ... A: You need to have proof available if asked. If the thrift store sold it for $500, that would be ...
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| Exemption from 10% Early Withdrawal Penalty | 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: That exception to the penalty doesn't apply to IRAs. There is an exception that applies to both ...
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| married filing separetly | 10/25/2007 |
Q: I am a student and married i filed separately on my tax return. Am i required to file jointly ... A: The law doesn't require you to file jointly. However it might be to your benefit to do so. I ...
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| buying/selling house | 10/24/2007 |
Q: My present house is all paid for. No mortgage. I'm considering purchasing another house. Then try to ... A: That law has changed. Now if you own and live in a home as your main home for 2 years during the 5 ...
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| Personal loans and taxes | 10/23/2007 |
Q: I have about 60k in student loan debt, i want to know if i were to take out a personal loan for ... A: Loans have no effect on your income tax nor are they deductible. If you have a qualified student ...
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| Dependents | 10/23/2007 |
Q: My son is 18 and going to a community college full-time in New Jersey. He wants to move into his ... A: Support includes lodging, food, clothing, education, medical, dental, recreation, transportation and ...
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| house purchase benefits | 10/23/2007 |
Q: I bought a house this year. Are any of the closing costs deductible - anything other than real ... A: If you paid points to obtain a better interest rate, they are deductible along with mortgage ...
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| ESOP rollover | 10/23/2007 |
Q: I received a lump sum from ESOP and rolled it over into IRA years ago. Should I have received a 1099 ... A: You should have received a 1099 for the year you rolled it over (unless the law was different years ...
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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: For 2007 if your joint taxable income is $63,700 or less, you are in the 15% tax bracket. That ...
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| Amend tax return | 10/23/2007 |
Q: In 2006 I had $695.92 in qualified interest on my student loan but I failed to report that I think ... A: Yes you certainly can. You'll need form 1040X which you can obtain by mail from the IRS by calling ...
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| All taxes returned because business made no profit? | 10/22/2007 |
Q: Quick history - My husband got a large settlement and decided to open an antiques/consignment shop. ... A: If you have a loss to report on the business it could be used to offset other income (assuming it's ...
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| Bonds and School payments | 10/22/2007 |
Q: I have bonds that are mature and want to pay off some school loans. Is there a way to do this ... A: You could avoid taxation on interest earned on US savings bonds if you paid educational expenses in ...
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| annuity | 10/22/2007 |
Q: i have an annuity that i can use when i reach age of 55..i would like to know if i can turn over the ... A: Using the money to pay off a mortgage would not affect the taxation of a distribution from the ...
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| is it worth the deduction | 10/21/2007 |
Q: Question..i have a 2nd mortgage loan ( 8K ) at 4.9. I put that money in an account that is paying ... A: Generally speaking borrowing money to create a tax deduction isn't a good idea. In your case you're ...
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| Long term capital gains | 10/20/2007 |
Q: I am baffled as to how long term capital gains is taxed differently given that you are told to ... A: When you have capital gains and or qualified dividends, you do enter the capital gains on line 13 ...
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| claimimg my mother at tax time | 10/20/2007 |
Q: my mother has alzheimers and has been living with me for 7 years...the alzheimers has just been ... A: You can use the HOH filing status only if your mother is your dependent and you pay more than half ...
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| To sale or rent, relocating.. | 10/20/2007 |
Q: I currently have a mortgage and have been promoted within my company. This is a first mortgage ARM, ... A: You get a tax benefit when you claim depreciation so when you sell that property you pay back some ...
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| To sale or rent, relocating.. | 10/20/2007 |
Q: I currently have a mortgage and have been promoted within my company. This is a first mortgage ARM, ... A: I assume you are looking to exclude gain when you sell the home. For this purpose if you have owned ...
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| residency and taxes | 10/19/2007 |
Q: My daughter has always been a resident of PENNA., graduating from college in May. She then worked a ... A: For your Federal tax return it doesn't matter where you are a resident unless you are claiming ...
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| Possible IRA investments | 10/19/2007 |
Q: can I use my IRA money to buy property at delinquent property tax sales? If so how would I show IRS ... A: First of all if you take the money out of your IRA you will have to pay taxes on it and possibly a ...
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| money from 401k to pay off primary residense | 10/19/2007 |
Q: My wife has a 401k at an institution she no longer works for [she does not work as the present] she ... A: She will pay ordinary income tax on the money she withdraws from the 401(k). If she isn't planning ...
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| home/gift?/taxes | 10/18/2007 |
Q: We will be putting our home in our child's name age 29. There is a part in the deed that states that ... A: I'm sorry. I should have addressed the mortgage interest before. You didn't say who actually makes ...
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| selling home | 10/17/2007 |
Q: my name is Melissa and I have a question I live in Arizona in a home my dad put in his name i have ... A: To begin with the law has changed on the exclusion of gain on the sale of your main home. Anyone ...
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| avoiding taxes | 10/17/2007 |
Q: I jointly own a house with 2 brothers. One brother is willing to give me what will be my share, ... A: If your brother gives you (or anyone else) more than $12,000 annually, he is required to file a gift ...
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| dependent | 10/17/2007 |
Q: i have a cousin who came from another country to study in the U.S. She is about to get her social ... A: You didn't mention whether or not she lives with you so I'll assume that she does. If you provide ...
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| Tax Write Off | 10/17/2007 |
Q: My Father, who lives in a different state, wants to pay for my Son's child care every month ($800). ... A: Sorry but there is no way for him to deduct the expense. But if he gives you the money rather than ...
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| 2003 State & Fed | 10/16/2007 |
Q: 9/25/06 Recv'd a letter from the IRS.that I had not filed my '03 taxes. Then I recv'd two of the ... A: If I were you I would just pay the $624.01 and get on with my life. But if you think you can ...
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| Roth IRA rollover | 10/15/2007 |
Q: As I understand it, all contributions to a Roth IRA can be withdrawn at anytime, for any reason, tax ... A: When you convert a Traditional IRA to a Roth IRA you have to hold it 5 years and be over 59 1/2 ...
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| dependents | 10/15/2007 |
Q: My daughter and her children live in a trailer that I bought for them. It is on my property and I ... A: If you pay more than half of the children's support you could claim their dependency but you ...
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| unsure how to file | 10/13/2007 |
Q: My 12 year old daughter and myself have been living with my boyfriend for over 4 years. November ... A: He can claim your daughter if he paid more than half of her support and she lived with him all year ...
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| Capital Gains Tax | 10/13/2007 |
Q: My husband and I own a multi family home in MA and want to sell it to by a single family in CT. Can ... A: You can only exclude gain on the sale of your main home. You can defer taxation of gain on a ...
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| Sale of second home after death of spouse | 10/12/2007 |
Q: I live in California. My mother died back in 2003. My father recently sold the second home they ... A: The stepped-up value would apply for any asset that has a fair market value (such as stocks). I ...
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| Sale of second home after death of spouse | 10/12/2007 |
Q: I live in California. My mother died back in 2003. My father recently sold the second home they ... A: Since they both owned the home he would have a stepped-up basis in the half that he inherited but ...
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| W4 | 10/12/2007 |
Q: I currently have 9 allowances on my W4 Form and using a Quicken and past tax returns, I determine ... A: There is no maximum number but if you claim more than 10 the IRS might question it. If they ...
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| I want to file seperately from husband | 10/12/2007 |
Q: My husband and I have been married for 29 years, 2 children one of which is 26 and living on his own ... A: You aren't required to file jointly. You mentioned that you are on disability. If that isn't ...
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| capital gain tax | 10/11/2007 |
Q: my mother signed a cottage over to my sister and I back in 1985 and we just sold it Jan 2007 for ... A: When someone gives you a property you have a basis in the property which is the same as the donor's ...
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| when to file an income tax form | 10/11/2007 |
Q: I am age 70. What is the income allowed in order to avoid file a tax return? I make Soc Sec but I ... A: To determine if you need to file a tax return you compare your income to the total of your standard ...
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| claim dependency/exemptions | 10/11/2007 |
Q: I am a stay at home mom with 2 children. My husband is in the military. How should we file...Also, ... A: You should file jointly and claim your children - a total of 4 exemptions. If you mean how many ...
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| Inheritances/Stocks | 10/10/2007 |
Q: I will be inheriting stocks. I would like to cash them in ($70,000)the executor stop the ... A: You won't pay inheritance tax on the stock but you will pay income tax on gain from the sale of the ...
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| Taxes for contract work | 10/8/2007 |
Q: I was recently placed as a contract employee through a recruiter. The recruiter had me fill out ... A: Your employer should have had you complete a form W4 showing your marital status and exemptions. ...
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| home/gift?/taxes | 10/8/2007 |
Q: We will be putting our home in our child's name age 29. There is a part in the deed that states that ... A: Recipients of gifts do not pay gift tax. The donor of the gift is subject to gift tax. You are ...
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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: Repairs and maintenance are not deductible expenses nor do they add to the cost basis of the home. ...
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| Taxing IRA's | 10/6/2007 |
Q: I am a surviving spouse with a sizable IRRA. When I die, will my account be taxable before it is ... A: You should set up a beneficiary (or beneficiaries) for your IRA. If a person is a named beneficiary ...
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| IRA vs 403 distribution rules | 10/5/2007 |
Q: As a former hospital employee I have a 403 in addition to IRAs. I have been taking one distribution ... A: It is fact that you must take separate distributions from a 403 and an IRA. You could be penalized ...
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| Rental Sale | 10/5/2007 |
Q: My parents sold a home that they had owned since 1978 and had rented out since 1983. The do not ... A: I assume that they have been filing tax returns reporting their rental income and expenses, ...
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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: You will pay more taxes if you work but the tax isn't 100% so you will still have more money than if ...
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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 standard deduction for a married couple filing jointly for 2007 is $10,700. In addition you ...
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| Establishing residency to avoid capitol gains tax upon sale of seasonal out of state home | 9/24/2007 |
Q: My parents are residents of Florida. They also spend summers at their second home in upstate New ... A: To be considered their main home they must live in it as their main home for 2 years during the 5 ...
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| tax on sale of tax | 9/24/2007 |
Q: The company i work with and a stock purchase plan is merging with another corp. we had 2 options to ... A: If you exchange the stock for cash, it is a sale of the stock and would be reported on Schedule D. ...
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| per diem and taxes | 9/23/2007 |
Q: i am a contract worker. i receive a regular salary + per diem. how do i use the per diem rate on my ... A: There are 2 Federal per diem rates. One is for meals and incidental expenses and the other is for ...
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| Home Sale - Extensive Remodeling Exception | 9/22/2007 |
Q: My spouse and I bought a home in 2000 which was somewhere between a tear down and a major ... A: Generally appliances would not be considered a home improvement because they do not extend the ...
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| gift tax | 9/21/2007 |
Q: Can I give my daughter my house as a gift, so I won't lose it up to MEDICAL and California nursing ... A: If you are already in a convalescent home it's too late to give your house to your daughter. They ...
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| retirement taxation | 9/21/2007 |
Q: At age 58 I have received a lump distribution. I understand the 10% penalty rule and the 10k max. I ... A: The tax has to be paid by April 15, 2008, but if you're going to owe more than $1,000 you could make ...
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| retirement distribution taxation | 9/21/2007 |
Q: I have taken a lump distribution at age 58 to use for a home purchase. I know the amount used will ... A: The actual tax rate would depend on your total income and deductions. Your broker may be correct ...
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| taxes on stock | 9/21/2007 |
Q: The company that my husband (and the husband of a close friend of mine also) worked for has been ... A: I don't think you're doing anything wrong. You might try another site but I suspect that you won't ...
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| taxes on stock | 9/20/2007 |
Q: The company that my husband (and the husband of a close friend of mine also) worked for has been ... A: Yes, it's correct that your cost basis in the stock you inherited is the fair market value of the ...
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| tax deduction for assisted living | 9/20/2007 |
Q: My mother who has dementia will be entering the Dementia Unit at an Assisted Living facility. Her ... A: Your mother can deduct the part of her medical expenses that exceed 7.5% of her adjusted gross ...
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| ESOP Payout | 9/19/2007 |
Q: I am a 46yr. old man with advanced Diabetes and have been put on SS disability benefits. Due to all ... A: Since you are disabled you aren't required to pay the 10% penalty for early withdrawal. The 20% ...
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| Recent house sale | 9/19/2007 |
Q: I recently sold my house in NC, making about a 10K profit. I am renting now in another state. I ... A: If you owned and lived in it as your main home for 2 years during the 5 years preceding the date of ...
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| Real Estate Installment sale interest taxation | 9/19/2007 |
Q: If I sell my home and take back a note against it with an IRS acceptable interest rate, however the ... A: If you aren't receiving the interest you won't have any interest to report. Assuming that you are ...
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| TRUST VS ANNUITY | 9/19/2007 |
Q: My Mom has recently passed.My sister who I do not speak with ...had her lawywr call.He stated we ... A: An annuity is issued by a life insurance company as an investment vehicle. Apparently your mom ...
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| Non deductible IRA early withdrawal | 9/19/2007 |
Q: This year, 4.5 months ago, I withdrew only the capital amount I had in the Traditional IRA ... A: When you have both deductible and non-deductible IRA contributions and take a distribution, the ...
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| ESOP Distribution | 9/17/2007 |
Q: A company I no longer work for, is being sold. I still have an interest in the ESOP and was notified ... A: While the 10% penalty may be offset by the additional cash flow, you will still be paying 10% of ...
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| estate taxes | 9/16/2007 |
Q: i bought a condominium back in april 2007. property taxes a year are about 2200 dollars a year. ... A: It could mean that your property taxes and/or insurance have increased. Your local taxing authority ...
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| business tax | 9/15/2007 |
Q: Can you tell me a little about the tax benefits of renting as opposed to purchasing tanning ... A: You can deduct business use expenses on a car. You need to keep a written record of the mileage - ...
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| business tax | 9/15/2007 |
Q: Can you tell me a little about the tax benefits of renting as opposed to purchasing tanning ... A: You can deduct the expense of renting equipment. However you can also take depreciation on owned ...
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| Sale of rental property | 9/14/2007 |
Q: My husband sold rental property that we have held since 1998. We collected rent from jan to may of ... A: You report the rental income and expenses on Schedule E taking a partial year deduction for ...
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| SS benefits and taxes | 9/13/2007 |
Q: I am employed but my wife just started recieving SS disability benefits. Do those benefits have to ... A: Yes, you have to include her social security benefits on your return. Up to 85% of those benefits ...
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| Can I claim child care tax credit if I'm looking for a job | 9/12/2007 |
Q: Dunton: I'm in a middle of decision making. Your help will mean a lot to me FirstCan I claim child ... A: 1. No, you have to be working or in school inorder to claim that credit. 2. If you have income ...
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| Tax on retirement used to buy a house | 9/11/2007 |
Q: Is there a penalty if money is used for closing costs? A: If you took up to $10,000 from an IRA (not a 401(k) or other retirement plan) and used it for a ...
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| Tax question | 9/10/2007 |
Q: In advance, thank-you for your time. My husband and I live in Illinois and are planning to sell our ... A: If your mom owned and lived in her home as her main home for 2 years during the 5 years preceding ...
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| CDs Interest Income | 9/10/2007 |
Q: The interest earned on a Certificate of Deposit is integrated into our income correct? I am confuse ... A: The first $7,825 is taxed at 10%, then it goes to the 15% and 25% brackets. You don't actually do ...
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| ssi and ss diability taxes | 9/9/2007 |
Q: My mom has ssi which is called supplement, and another one ss disability, but i believe its called ... A: SSI is not taxable and couldn't be used as income on a tax return. Up to 85% of Social Security ...
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| Schedule D needed for 1065 and 1040? | 9/9/2007 |
Q: If I'm filing as a partnership 1065 and the 1065 has a schedule D with it, do I need to replicate a ... A: I believe the instructions for 6781 say to put the result on Schedul D form 1040 so, yes, you will ...
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| Schedule D needed for 1065 and 1040? | 9/9/2007 |
Q: If I'm filing as a partnership 1065 and the 1065 has a schedule D with it, do I need to replicate a ... A: You don't need to replicate the Schedule D. Just take the numbers from the K1 to report on your ...
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| original AT&T price and date of issuance | 9/8/2007 |
Q: How can I find the date of issuance and price of the original AT&T stock which merged with Cingular ... A: AT&T did have a ticker of ATT for a long period of time. More recently the ticker was T but I think ...
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| CDs Interest Income | 9/7/2007 |
Q: The interest earned on a Certificate of Deposit is integrated into our income correct? I am confuse ... A: For a single taxpayer for 2007 the 10% tax bracket is for taxable incomes up to $7,825; the 15% tax ...
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| 1099 deductions | 9/7/2007 |
Q: I work in an insurance office and we are all commission paid agents. This is new to all of us here ... A: I don't know of a website but there may be one for insurance salespersons. As a self-employed ...
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| sons are receiving ss after fathers death | 9/7/2007 |
Q: My boys (ages 9 and 11) have received ss checks since fathers death 2 years ago. I have always ... A: As long as you provide more than half of their support you can continue to claim them as dependents. ...
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| Tax capitol gain | 9/6/2007 |
Q: My grandmother left me her house in Calif 1992.It was worth 100k and now its worth 500k.I lived in ... A: It makes no difference whether or not you invest in another home. If you owned and lived in it as ...
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| tax question | 9/5/2007 |
Q: Can I claim the mother of my child as a dependant if we are not married? We have lived together for ... A: As far as the federal government is concerned you can claim her but if you happen to live in an area ...
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| second home sale | 9/4/2007 |
Q: I live in Denver in my primary residence and am selling a vacation home in Arizona. I hope to use ... A: Well that explains why I have never seen the spam guard although I have seen them on other sites. ...
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| IRA Inheritance by Spouse | 9/4/2007 |
Q: My dad died in 2005 & mom inherited his IRA. The IRA was set up as a beneficiary account & my mom ... A: She needs to roll the IRA over to another IRA with the new institution as the custodian. The new ...
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| second home sale | 9/3/2007 |
Q: I live in Denver in my primary residence and am selling a vacation home in Arizona. I hope to use ... A: Anything you spent to buy, build or improve the home increases your basis. Ordinary repairs and ...
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| second home sale | 9/3/2007 |
Q: I live in Denver in my primary residence and am selling a vacation home in Arizona. I hope to use ... A: Since the vacation home is not your primary residence you can't exclude any gain on the sale. It ...
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| tax | 9/2/2007 |
Q: If someone makes about 200,000.00 in one year in day trading and makes about 40,000.00 that year in ... A: Yes you'll get a refund if you have paid too much. Estimated payments are treated the same as ...
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| Sale of real property | 8/31/2007 |
Q: My wife and I owned a house, she passed away in 2003 and under NC laws the house then became totally ... A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ...
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| Taxes | 8/30/2007 |
Q: My sister is married and lives in SC. Her husband refuses to sign their federal and state tax ... A: Sounds like she needs to file since her income is more than the total of her standard deduction and ...
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| capital losses | 8/30/2007 |
Q: I was audit by IRS for 2001 and after redoing the tax,it was discovered that i under report the ... A: You can't claim losses from one year on another year's tax return except when you have a capital ...
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| mileage expense | 8/30/2007 |
Q: I get paid mileage from my work. I understand that the miles from my home to my first job (job 1), ... A: If you go to job 1 and return home and then go to job 2 and return home, you would have no business ...
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| Taxes | 8/30/2007 |
Q: My sister is married and lives in SC. Her husband refuses to sign their federal and state tax ... A: She can file her own return using the Married Filing Separately status. She can't compel her ...
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| 401k distribution | 7/24/2007 |
Q: My dad is 65+ and he says that his 401k from work tells him he has to withdraw the rest of his 401k ... A: Yes, he should rollover the 401(k) to an IRA and take distributions when needed. He should first ...
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| Employer Reimbursement for Relocation | 7/24/2007 |
Q: My son is being relocated for a new job. The company is reimbursing him for the closing costs on ... A: Yes, the company is correct. The moving expense reimbursements are taxable. But since he is paying ...
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| Annuity and Taxes | 7/23/2007 |
Q: My husband is very ill and had to quit work. To make a very long story short, we had to take about ... A: You will receive a 1099 form on this and will include it on your 1040 line 16. The total ...
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| IRA early withdrawl | 7/22/2007 |
Q: I intend to purchase my first home soon and would like to withdraw money from my IRA(s) for the ... A: You can withdraw a total of $10,000 penalty free from all or any one of your IRA's. You will have ...
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| IRA-> benificiaries .. how to get the cash... | 7/21/2007 |
Q: My mother passed away recently (she was 67) and left my self and my siblings as beneficiaries on her ... A: It is to your benefit to have inherited IRA's and there won't be any penalties because of the death ...
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| house inheritance | 7/19/2007 |
Q: Do to an inheritance I now jointly own a Santa Barbara, California house with my two brothers, one ... A: If you own and live in it as your main home for 2 years during the 5 years preceding the date of ...
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| house sale tax implications | 7/17/2007 |
Q: I sold my house for a profit and have put the proceeds in a CD until I am ready to buy another house ... A: There is a new law that has been in effect for a few years now regarding gain on the sale of your ...
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| real estate | 7/16/2007 |
Q: I purchased a vacant lot in a golf community in 2005 with the intention of holding it for three ... A: You could deduct mortgage interest on a second home but a vacant lot is not a home. However you can ...
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| tax return | 7/16/2007 |
Q: I used to work in US for about 4 years then I moved to China to work at a different company. When I ... A: If you are a US citizen you are subject to income tax on your world-wide income. Since you didn't ...
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| Real estate question | 7/15/2007 |
Q: I closed on a condo in March 2006 with the intent to sell it for a profit. Unfortunately the real ... A: I'm not familiar with that way of handling the mortgage interest on investment property and don't ...
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| State income tax for LLC | 7/14/2007 |
Q: I currently reside in Illinois. I am in the process of creating an LLC in Indiana in which I am the ... A: Residents of IL are required to file a state return if they are required to file a Federal return. ...
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| 1099 | 7/14/2007 |
Q: I may be starting a home assembly job and they say that they will send me a 1099 at the end of the ... A: Receiving a 1099MISC means that they are not withholding any taxes, including social security and ...
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| lump sum distribution | 7/13/2007 |
Q: My father has passed away, and I am receiving a pension benefit. The Pension Initiation Statement ... A: You would not have to pay the additional 10% on distributions because of your father's death. If ...
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| Capital gains exemption | 7/13/2007 |
Q: I am trying to figure out how the capital gains exemption can be used in my situation. We have ... A: As long as you have owned and lived in the home as your main home for 2 years during the 5 years ...
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| Sale of home capital gains | 7/12/2007 |
Q: I purchased a home in 2002, which is not my primary residence. I plan to sell it at a significant ... A: In order to exclude gain you must own and live in the home as your main home for 2 years during the ...
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| tax on real estate sale | 7/12/2007 |
Q: Good day. I am asking for this info for my mother. She is 89 and is going to sell property. ... A: Unless the children are part owners of the property, giving them the money will not reduce her ...
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| Schedule c | 7/12/2007 |
Q: Since I wrote my first question earlier today, I have not been able to go to sleep. I was reading ... A: Your chances of being audited aren't high since a very low percentage of returns are audited. If ...
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| Income Taxes and Dependants | 7/11/2007 |
Q: I'm 22 and live at home (finishing college). Last year my dad claimed me as a dependent and, out of ... A: If your father paid more than half of your support and you were a full time student, he is entitled ...
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| IRA and 401k distributions | 7/11/2007 |
Q: I was appointed executor to the will of a friend that passed away recently. His wife was appointed ... A: I really don't know the answer to that but presumably if there isn't enough withheld any balance due ...
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| Annuity vs. CD | 7/11/2007 |
Q: If I make $35,000.00 dollars a year at my job, and my pay is directly deposited into my checking ... A: There isn't just one tax rate for everyone. At your income you would be in the 15% bracket but that ...
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| IRA and 401k distributions | 7/10/2007 |
Q: I was appointed executor to the will of a friend that passed away recently. His wife was appointed ... A: The way you are planning to do it, the estate will have to file a return and pay taxes on the lump ...
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| Filed an Extension, Now Want to Ammend | 7/10/2007 |
Q: I originally filed for an extension as married filing jointly with my husband. Now, I need to change ... A: Had you actually filed a return, you could not amend it to file separately. But since you haven't ...
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| earned income credit | 7/10/2007 |
Q: My fiance and I are having a baby in October, she lives with me in a house I bought and I pay most ... A: The requirements for claiming the earned income credit do not include providing more than half of ...
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| social securiy benefits paid from UK to US citizen | 7/10/2007 |
Q: My aunt, 87 years old, a US citizen for the last 30 years but formally from England, receives her ... A: She can't report it as social security income because it is not from our country. Since she is a ...
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| Social Security and Filing Taxes | 7/10/2007 |
Q: I was wondering if Social Security is considered income when it pertains to filing taxes? I've read ... A: Whether or not you are over 65 you have to file a tax return if your income exceeds the total of ...
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| How much to withhold for 401k | 7/9/2007 |
Q: I have around $12,000 in a 401k plan from an employer from whom I was terminated. I intend to cash ... A: Normally the custodian of the 401(k) withholds 20% for federal income tax but not the additional ...
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| SALE OF HOME | 7/9/2007 |
Q: I am selling my house due to divorce and pending foreclosure. The house is valued at $103,000, with ... A: Have you been reporting rental income and expenses to the IRS? To calculate your gain you deduct ...
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| Schedule D | 7/9/2007 |
Q: How are SHORT SELL and CLOSE SHORT transactions entered on Schedule D? A: Short sales are entered on either line 1 (short term) or line 8 (long term). The date acquired in ...
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| depreciation on principal residence converted to rental | 7/9/2007 |
Q: I am looking to move out of my existing residence and am trying to figure out what my depreciation ... A: First of all you can't depreciate the land so you'll need to separate the cost of the house and ...
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| Prize tax question | 7/8/2007 |
Q: My wife recently won a trip (flight) to New York city for two, 4-day 3-night stay, and 5 thousand ... A: You will have to pay taxes on the whole prize. It's taxed as ordinary income at whatever rate your ...
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| Even Split Between "Ordinary & "Qualified Dividends on 1099s | 7/6/2007 |
Q: I am puzzled as to why my 1099s show stocks paying dividends split evenly between those that are ... A: Since you have more than met the required holding period, it may be that some of the securities ...
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| Lump Sum | 7/6/2007 |
Q: I will be receiving a lump sum payment of anywhere between $250,000 to $500,000 as an equity payout ... A: Good reasoning but take it one step further. See if the addition of the large lump sum will affect ...
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| Gift from uncle | 7/6/2007 |
Q: My uncle wants to give me a gift of 23000. I wanted to know what he has do in terms of claiming it ... A: Anyone can give an individual $12,000 per year without tax consequences. Gifts in excess of $12,000 ...
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| Sell of primary residence and capital gains | 7/5/2007 |
Q: We are in the process of selling our home of 11 years. We are planning to move in with my parents ... A: If you have owned and lived in the home as your main home for 2 years during the 5 years preceding ...
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| Primary Residence Capital Gain/Times Two | 7/4/2007 |
Q: We have lived in our home for 15 years and plan to sell it and move into a two-family we own...then ... A: As long as there is more than 2 years between the sales and you own and live in each as your main ...
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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: Assuming that the day trading profits were for stocks held one year or less, the profits will be ...
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| home sale tax 2 years | 7/2/2007 |
Q: purchadsed home 05-06 for 221K -put down 68K will sell home for 231K and have Real Estate fees for ... A: The money you put down when you purchased the home is not a factor in determining your gain. To ...
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| home sale tax 2 years | 7/2/2007 |
Q: purchadsed home 05-06 for 221K -put down 68K will sell home for 231K and have Real Estate fees for ... A: You can deduct the commission and other expenses from your gross selling price so you will not have ...
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| 401k withdraw | 7/2/2007 |
Q: ok, i am at the end of my rope. I know the fed. gov. has all these rules for 401 k accounts, but ... A: If the plan allows you can take an early distribution from the plan which would be subject to tax ...
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| Capital Gains Tax | 7/2/2007 |
Q: My mom owns a home with 38 acres. She has lived there sense 1990 and has a mortgage of $50,000. ... A: Unless your mom is planning to sell the rest of the property, including her home, within 2 years, ...
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| work expenses | 7/1/2007 |
Q: I just recently started a new job in a new field that requires I have a laptop handy so I purchased ... A: Assuming that you are an employee rather than an independent contractor, you can claim unreimbused ...
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| Esop and taxes | 7/1/2007 |
Q: I have an ESOP and will retire soon at age 61. If I roll the entire amount to an IRA, is any ... A: If the ESOP is part of a retirement plan and the plan allows, you can roll it over to an IRA. Any ...
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| money issues | 6/30/2007 |
Q: My husband left with all of our assetts and total control, he has been evading my attorney and ... A: Since the previous returns were filed jointly, you can request copies of them and transcripts of the ...
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| Capital Gains Impact on sale of Primary Residence | 6/30/2007 |
Q: My Mother in law is selling her home and moving into an assisted living facility due to health ... A: Since she has owned and lived in the house as her main home for 2 years preceding the date of sale ...
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| taxes on the sale of my house | 6/29/2007 |
Q: I read M/sgt Thomas question. I have been retired for 10 years and have worked with the local church ... A: If you are moving for reasons of health, employment or "unforeseen circumstances", you could ...
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| capital gains taxes | 6/28/2007 |
Q: As a part of the divorce settlement I will get stock with the market value of 120.000. It was bought ... A: That's essentially correct. However, adding $40,000 to your other income could cause your ...
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| selling house | 6/28/2007 |
Q: my mom put 30,000 and my grandmother put 220,000 into a new house they've owned for 3 years. Now ... A: I would reimburse them in accordance with their contribution. Perhaps the deed doesn't specify ...
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| interest write off | 6/27/2007 |
Q: My uncle is about to purchase a piece of property and he told me that he wanted to give me the ... A: Unless you are obligated to make the mortgage payments and actually make them, you wouldn't be able ...
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| Closing Cost - Tax Deductible | 6/26/2007 |
Q: I'm planning to sell my house. I stayed in the house for 2 years and i might be able to sell at the ... A: Unfortunately a loss on the sale of your residence is a non-deductible personal loss. The closing ...
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| disability payments and tax filing | 6/25/2007 |
Q: I am recently married and my husband did not file tax returns in 2005 and 2006 because he received ... A: It is normal for lenders to ask for tax returns when considering a loan. He could still file tax ...
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| considered income? | 6/25/2007 |
Q: Friends of our just cashed out a $100,000.00 cd and used the cash(minus the penalty) to build a ... A: The penalty is actually a reduction of interest and if they aren't paying tax on the interest they ...
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| Rental property tax deduction | 6/23/2007 |
Q: I have a client that wants to rent out his currently owner occupied home and purchase another one. ... A: He will report his rental income and expenses on Schedule E. His expenses will include mortgage ...
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| Depreciation Schedule | 6/23/2007 |
Q: I can not prove the cost of my tools in a automobile repair business. I have 8000.00 on my ... A: You could ask the business that sold you the tools if they have records of the sale (not likely but ...
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| Early ESOP distribution | 6/22/2007 |
Q: I was laid off after working 20 years at one company. I am to receive within the next 2 weeks a ... A: If the ESOP is a retirement plan you could take possession of the funds and establish a rollover IRA ...
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| Alimony & retirement buy out | 6/21/2007 |
Q: I have been divorced for almost 15 years. The settlement required my ex to pay me alimony for life ... A: The proposed buyout would still be alimony and taxable to you. You should ask your attorney about ...
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| Tax's on Property | 6/21/2007 |
Q: I purchased a small house in 2003 for my son to have a place to live after he was injured in a car ... A: Yes, you will have to pay capital gains tax on the gain. You can deduct expenses of the sale from ...
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| Taxes on IRA inheritance | 6/21/2007 |
Q: My Father recently passed away and had an IRA in the amount of approximately $10,000 at the time of ... A: When you set up a Traditional IRA you can make deductible or non-deductible contributions. If your ...
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| Deductions on new home construction | 6/21/2007 |
Q: I am building a new house through a nationwide home builder. Am I allowed to deduct the sales tax on ... A: I have had many clients who claimed a deduction for sales tax paid on building materials both in new ...
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| Short Run Stock Gains | 6/20/2007 |
Q: If I buy X stock at $10 per share today, sell it for $15 per share tomorrow, and gain $10,000 in the ... A: You are expected to pay your Federal income tax as you receive the income. If you will owe more ...
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| Home sale and capital gains | 6/20/2007 |
Q: I own a home which I purchased 14 years ago for $89,900 and would like to sell and move in the next ... A: Yes you can sell it to them for less than market value but the difference between the selling price ...
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| Deductions on new home construction | 6/20/2007 |
Q: I am building a new house through a nationwide home builder. Am I allowed to deduct the sales tax on ... A: Normally you would need receipts showing that you paid the sales tax to be able to deduct it. Most ...
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| taxes on disability benefits | 6/20/2007 |
Q: I'm a former nyc police officer retired on accident disability.Also due to several accumulated ... A: You are required to file when your income from all sources exceeds the total of your standard ...
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| Cap gains to earned income in an SMLLC | 6/19/2007 |
Q: I have a single member LLC that is an entity for trading equities. That is my full time job. I ... A: You can't file 2 Schedule C's for the same business. You report your income and expenses on one ...
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| Selling a rental property | 6/19/2007 |
Q: In June 2006 I purchased a new primary residence. I was not able to sell my old primary residence so ... A: You can exclude gain on the sale if you have owned and lived in the home as your main home for 2 ...
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| Taxes on IRA inheritance | 6/19/2007 |
Q: My Father recently passed away and had an IRA in the amount of approximately $10,000 at the time of ... A: An inherited IRA is taxable to the beneficiary if it would have been taxable to the IRA owner. You ...
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| Home sale and capital gains | 6/18/2007 |
Q: I own a home which I purchased 14 years ago for $89,900 and would like to sell and move in the next ... A: If this was your main home and you owned and lived in it for 2 years during the 5 years preceding ...
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| sale of primary home | 6/18/2007 |
Q: We sold our home this year and it was mortage free. We first rented, but rent to own. We started at ... A: I'm a little confused. You say you first rented the house and then you said your built the house. ...
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| disbursement of 401k in a divorce | 6/15/2007 |
Q: My husband was ordered thru our divorce to pay me $95,000. I am fifty--seven, live in Texas. Will I ... A: If the money is taxable to you it is taxed as ordinary income at whatever rate your total income ...
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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: If it is set up under the Uniform Gift to Minors Act he is the owner and it will transfer to him ...
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| Capital Gain Tax? | 6/13/2007 |
Q: About a year ago+ my mother put my brother and I on the deed of her house doing a $1.00 transfer. ... A: I would consider a transfer for $1 a gift rather than a sale. Your basis in a gift is the basis of ...
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| Capital Gain Tax? | 6/13/2007 |
Q: About a year ago+ my mother put my brother and I on the deed of her house doing a $1.00 transfer. ... A: Your mother can exclude $250,000 of gain on the sale. You and your brother would be subject to long ...
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| Change of title deed on property | 6/12/2007 |
Q: Can you please help me? I am thinking of transferring the title deeds of my house over to my Son. ... A: If you give the house to your son, you are required to file a gift tax return. Most likely you ...
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| Capital gain? | 6/12/2007 |
Q: I bought a condo for myself back in 2002 for 70k. I just sold it in May for $135k. I made about 43k. ... A: You don't have to buy another home ever unless you want one. You can do whatever you like with the ...
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| Sale of home in Pennsylvania | 6/10/2007 |
Q: My mother passed away 6 months ago. A year before that, she put her home (paid for) in my name. ... A: No, the tax won't be 15% of the proceeds. The tax is on the gain. For example, let us say your ...
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| Sale of home in Pennsylvania | 6/10/2007 |
Q: My mother passed away 6 months ago. A year before that, she put her home (paid for) in my name. ... A: You will be taxed on any gain when you sell the home. Your basis in the home if you sell it as a ...
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| IRA | 6/9/2007 |
Q: I want to cash in a small IRA ($12,000.)I'm 60 years old and I started this IRA with $2000.00 about ... A: You'll pay taxes on $10,000 (no penalty) unless you have other IRA's. If you have other IRA's, ...
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| Tax write-offs | 6/9/2007 |
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: You can deduct your auto expenses for business use. You can use the business portion of actual ...
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| gains from a stock | 6/8/2007 |
Q: My wife and I have a joint E-trade account. We have a particular stock that has had a gain of ... A: First of all, you don't report any gain until you sell the stock. But if you do sell the stock and ...
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| SUV Depreciation | 6/8/2007 |
Q: I work for a company who leases my vehicle from me. Should I take the depreciation on the vehicle ... A: You can either claim actual expenses, including depreciation, or you can use the standard mileage ...
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| Capital Gains safe harbor | 6/5/2007 |
Q: I purchased my property in May of 2006 and am considering selling this property and moving more than ... A: If your job doesn't require you to move then you wouldn't be able to use a reduced exclusion. Try ...
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| Personal income tax questions | 6/3/2007 |
Q: a couple of questions that I have. My husband and I are in the process of renting a home from his ... A: If she reported the $1,000 per month as rental income she would also deduct expenses on the rental ...
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| Capital Gains | 6/3/2007 |
Q: we have an elderly mother who just bought a house by us in Oregon 14 mo ago.If we are to move out of ... A: Your move may be for reasons of employment but her move could be considered to be for reasons of ...
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| tax write-offs for small business | 6/3/2007 |
Q: First, thanks for taking the time to do this. It's very helpful! I started a dog-walking, ... A: You should still continue to keep a record of your mileage whether the vehicle is owned or leased. ...
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| 1009R | 6/2/2007 |
Q: Unknown to me at the time (1996), an aunt had me named as a beneficiary and possibly an owner of an ... A: If you received money from the annuity, some or all of it would be taxable. Hopefully the 1099R ...
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| buying adjacent lot and whether interest on lot loan is deductible | 6/2/2007 |
Q: We purchased our home in 2005. It is our primary residence. There is adjacent lot next door that is ... A: I haven't seen any regulations addressing the acquisition of a parcel adjacent to your main home but ...
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| stock tax | 6/2/2007 |
Q: I know social security is not taxed.But if someone is on disability and they normally do not have to ... A: Actually social security can be taxable if your other income plus half of your social security ...
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| Taxes for Sole proprietorship | 6/1/2007 |
Q: I am hoping you can help me. My husband and I just stared our own business. He's in construction ... A: In addition to the 15.3% for social security and medicare, there is income tax. The rate would ...
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| supplemental taxes on severance pay | 5/31/2007 |
Q: . Does the amount of supplemental tax deducted from severance pay vary from state to state? I had ... A: The Federal income tax withholding on severance pay doesn't vary by state but an employer has more ...
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| Personal Income Tax | 5/31/2007 |
Q: I am planning to pay my mom to babysit my baby. My question is whether my mom can claim the payment ... A: Yes she can. She should report her income and expenses, if any, on Schedule C. She would be ...
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| Rental Mortgage Interest Tax Deduction | 5/29/2007 |
Q: My husband and I own a 2-family home, went rent out half and live in the other half full time. When ... A: You split the mortgage interest and real estate tax according to the size of each unit. If they're ...
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| Retirement Accounts | 5/26/2007 |
Q: You recently helped me out with SEP IRA's. This is the first year that I am self employed and am ... A: Yes, you can put away more with a 401(k)plan for sole proprietors. I know that Charles Schwab ...
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| Tax Bracket question | 5/24/2007 |
Q: my husband is starting a job that he will need to pay his own taxes. He will be paid based on each ... A: Since your husband is an independent contractor he will report his income and expenses on a Schedule ...
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| Babysitting Taxes | 5/24/2007 |
Q: My brain hurts from trying to figure this out. We have 1 child and 1 due in November, 2007. My wife ... A: Your wife will need to report her income and expenses on Schedule C. As a day care provider she can ...
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| income tax/capital gains | 5/23/2007 |
Q: I built my home in 2000 and have about $130,000 invested. I have an opportunity to sell a small ... A: There is no way to directly reduce the tax on the gain. However, there is the possibility of making ...
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| 401(k) in divorce | 5/23/2007 |
Q: I have a 401(k) from a previous employer with about worth about $6,000 right now. I just got ... A: If the 401(k) is not included in the divorce decree your ex is not entitled to any of it. However ...
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| Disability and taxes | 5/23/2007 |
Q: Do people on disability pay taxes on homes, cars or anything else in Alabama? A: People on Social Security Disability can pay federal income tax on the disability payments depending ...
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| income tax on stock sale | 5/22/2007 |
Q: 600.00 to pay off a loan. I will have to pay income tax on this I am aware, but where do I find how ... A: To calculate your gain you deduct what you paid for the stock from what you sold it for. The sale ...
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| income tax/capital gains | 5/22/2007 |
Q: I built my home in 2000 and have about $130,000 invested. I have an opportunity to sell a small ... A: You would need to pay long term capital gains tax (maximum rate 15%) on your profit. To calculate ...
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| Mortgage interest deduction for rental | 5/17/2007 |
Q: In July, I am preparing to move in with someone (rental situation) and rent my condo. What portion ... A: Your rental expense mortgage interest will be only for the rental period since the condo was not ...
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| property sale (partial) 1099-S | 5/17/2007 |
Q: Just sold the back part of our property. The money went directly to the mortgage company and we ... A: I know it's tough to establish a value of land when you bought it with a home. But your county tax ...
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| property sale (partial) 1099-S | 5/16/2007 |
Q: Just sold the back part of our property. The money went directly to the mortgage company and we ... A: When you sell an asset you are obligated to report the sale and pay tax on any gain regardless of ...
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| Under reported income | 5/16/2007 |
Q: I was laid off from my job in 2004 and took my retirement as a lump sum. I received a notice from ... A: If you didn't report the $20,000 and the $4,500 on your tax return and so didn't include them in ...
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| Under reported income | 5/16/2007 |
Q: I was laid off from my job in 2004 and took my retirement as a lump sum. I received a notice from ... A: They would set up an installment plan for you to pay it over time. Tell them how much you can ...
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| rental expense | 5/16/2007 |
Q: Client purchased rental property in 2006. Rented 1/2 and spent the rest of 2006 renovating the other ... A: If you offered it for rent in 2006, even if you didn't actually find a renter, you could deduct all ...
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| Under reported income | 5/16/2007 |
Q: I was laid off from my job in 2004 and took my retirement as a lump sum. I received a notice from ... A: Since you said you took the pension in a lump sum then you didn't roll it over to an IRA. In that ...
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| Claiming myself | 5/15/2007 |
Q: When is it that my parents can no longer claim me on their taxes? I moved out of their home and I ... A: If your parents don't pay more than half of your support, they aren't allowed to claim you as a ...
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| 401k Early Withdrawal:Quarterly TAX payment | 5/15/2007 |
Q: How do I prepare for Penalty and TAX payments on an early withdrawal of $70k? Do I need to pay ... A: You are expected to pay your income tax as you go so it's important to make estimated payments in ...
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| Self Employed Single LLC .... Social Security Tax | 5/15/2007 |
Q: My husband recently started his own business (lost his job) and we are still confused about how he ... A: When you do your tax return you will have income tax and self employment tax and a total of the two. ...
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| Long Term Disability lump sum monies | 5/14/2007 |
Q: I may receive a lump sum amount of $10000 to $30000 or more from an ongoing lawsuit of a insurance ... A: There isn't any way to avoid paying tax on whatever you receive from the insurance company. But it ...
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| Self Employed Single LLC .... Social Security Tax | 5/14/2007 |
Q: My husband recently started his own business (lost his job) and we are still confused about how he ... A: Since your husband is now self employed he will be required to pay self employment tax (social ...
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| 401k Early Withdrawal:Quarterly TAX payment | 5/14/2007 |
Q: How do I prepare for Penalty and TAX payments on an early withdrawal of $70k? Do I need to pay ... A: Assuming that your other 2007 income will be about the same as 2006 you will pay about 38% income ...
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| 401k early withdrawal | 5/14/2007 |
Q: I would like to an early withdrawal from my 401k to buy a home. I believe I've saved enough to do ... A: You can take a maximum $10,000 distribution from an IRA for the purchase of a first home and not pay ...
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| small business | 5/13/2007 |
Q: I have a couple of questions--sorry if they seem confusing, but I will try and make them as simple ... A: The expenses for your husband's business are what he actually spent including tools, materials to do ...
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| married but seperated | 5/13/2007 |
Q: "i am seperated from my husband but not divorced. I applied for financial aid for my college but was ... A: Your father could claim you as a dependent if he pays more than half of your support and you earn ...
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| Gas for business | 5/13/2007 |
Q: My husband is military, and he uses his car for job errands can we write that off? Also, I am buying ... A: Let us say that in a given year you drive your car a total of 20,000 miles. Your daily drive to and ...
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| Gas for business | 5/13/2007 |
Q: My husband is military, and he uses his car for job errands can we write that off? Also, I am buying ... A: If he is not reimbursed for the use of his car he can claim a deduction on Schedule A for ...
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| 401k early withdrawal | 5/12/2007 |
Q: I would like to an early withdrawal from my 401k to buy a home. I believe I've saved enough to do ... A: Unless you are age 59 1/2 or age 55 and separated from the service of the company, you will be ...
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| Tax on Gift Stock | 5/12/2007 |
Q: As a follow-up question to your answer for "Tax on Gift Stock" a few weeks back, what would be the ... A: The basis of a gift is the donor's basis plus any gift tax paid at the time of the gift. If the ...
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| Gift to wife | 5/11/2007 |
Q: I will soon be receiving a severance package from a former employer. I am of the understanding that ... A: I remember seeing that in a movie. Perhaps it was true at one time but if you receive taxable ...
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| 401k cash out | 5/10/2007 |
Q: i am retired with a pension but i have to much debt to pay all my bills would i be able to cash out ... A: If you take an early distribution from your 401(k)you will be subject to the 10% penalty unless you ...
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| Lump Sum Distribution | 5/8/2007 |
Q: If I take my pension as a lump sum distribution at age 62: do I have the option not to invest it ... A: You can begin taking distributions at any time but you are required to begin taking them at age 70 ...
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| Lump Sum Distribution | 5/8/2007 |
Q: If I take my pension as a lump sum distribution at age 62: do I have the option not to invest it ... A: If you take a lump sum distribution you would pay income tax on the entire amount in the year of ...
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| Withholding---claim "0" or "1" ? | 5/8/2007 |
Q: Backstory --- My daughter is a 21 yr old senior (next yr), full-time student in college. I pay for ... A: In order for you to claim her you must pay more than half of her support. Claiming 1 or 0 would ...
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| foreclosure | 5/8/2007 |
Q: our house went into foreclosure in california we bought it for 249,999 and refinanced twice we left ... A: A homeowner can exclude from taxation $250,000 gain on the sale of his/her main home if he/she lived ...
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| foreclosure | 5/8/2007 |
Q: our house went into foreclosure in california we bought it for 249,999 and refinanced twice we left ... A: Perhaps your girlfriend has income from relief of debt and that is what the new taxman was talking ...
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| Amending taxes | 5/7/2007 |
Q: I had been self employed for the last 3 years. I was not aware that when I fill my taxes I am ... A: You can file an amended return on Form 1040X for each year. You will also need to report your SE ...
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| How long to hold on to certain documents | 5/7/2007 |
Q: Two questions regarding how long to hold on to things.. 1) Having refinanced twice since purchasing ... A: 1. I would keep the escrow statements that show what fees you paid for as long as you own the home. ...
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| Schedule A | 5/6/2007 |
Q: Are amounts paid out to a Nursing Home for 24/7 care allowed as a medical deduction on Schedule A of ... A: Many patients with Alzheimer's simply need someone to guide their activities and medical care is ...
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| Schedule A | 5/6/2007 |
Q: Are amounts paid out to a Nursing Home for 24/7 care allowed as a medical deduction on Schedule A of ... A: Entire costs for medical care, including meals and lodging, are deductible if the main reason for ...
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| Rental property mortgage interest deduction | 5/5/2007 |
Q: I paid off my home (single family residence) in CA in 2003. I rented my CA home and moved out to ... A: Generally it doesn't matter how you spend the proceeds from a loan on your home. But, now that you ...
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| Mortgage deduction on rental property | 5/5/2007 |
Q: I am living with my parents (I do not pay them anything) and am in the process of buying a ... A: There is a special rule for taxpayers who are not real estate professionals and who actively ...
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| 1031 sale | 5/5/2007 |
Q: I just finished building a new house. I own no other real estate. If I sell it now before we live ... A: The real property you sell and the real property you buy must both be held for productive use in a ...
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| Mortgage deduction on rental property | 5/5/2007 |
Q: I am living with my parents (I do not pay them anything) and am in the process of buying a ... A: You can deduct your mortgage interest as a rental expense. You report your rental income and ...
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| Question Regarding Home sales | 5/4/2007 |
Q: I recently needed to sell my house in CO as a result of my company closing the factory and moving ... A: Because your move was for employment reasons, you are entitled to a reduced exclusion of gain. If ...
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| My sister | 5/3/2007 |
Q: how can my mother find out if my sister is claiming her on her income tax return and if so how long? ... A: You didn't say whether or not your mother has income but if she does and files a return, the IRS ...
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| Consulting Fees | 5/3/2007 |
Q: I just started consulting. I currently get paid $4,100 per month in consulting fees. How do I know ... A: I assume that you won't receive a W2 from this job and that you are an independent contractor. ...
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| sale of rental property | 5/3/2007 |
Q: We are military and had to move to a new location so we rented our old home. We had refinanced it ... A: Your basis is the cost plus any capital improvements less depreciation taken or which could have ...
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| Timeshare Special assessment | 5/3/2007 |
Q: My wife and I own a Marriott timeshare. In 2006 we (all owners) were assessed (a special ... A: No, the special assessment isn't deductible. It adds to your basis in the timeshare so when/if you ...
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| quesions on 1099 from.Urgent! | 5/3/2007 |
Q: I didn't file my stock 1099 from for 2005 because I thought I was lost money no need to file it. But ... A: You may have had a loss but if you don't tell the IRS (by filing a Schedule D) they only know your ...
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| Notice of deficiency | 5/2/2007 |
Q: I received this notice from my 2005 tax return, I deliver newspapers and I did not file form 1099... ... A: It's not too late to amend your 2005 return. When you do you should file your 1099 income and ...
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| claiming the children | 5/1/2007 |
Q: If I pay child support and I provide more than 50% of the household living income into my ex's and ... A: If you pay more than half of the children's support (not the support of the household) and the ...
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| Inherited IRA student taxation | 4/29/2007 |
Q: I am a senior in high school and my father passed away in 2005. He left behind an IRA for my sister ... A: There is no way to avoid taxation but if you use the money to pay for qualified higher education ...
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| Home Sale Tax Exclusion rules | 4/26/2007 |
Q: I own two homes. I bought my current primary residence in Dec 06. I converted my previous primary ... A: Yes you need to sell the first rental property by December 2009 in order to meet the 2 year ...
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| IRA mess | 4/26/2007 |
Q: I opened a Traditional IRA account on April 16 of this year and made my maximum 2006 contribution. ... A: You can't get anything changed through the IRS. Only your bank can make any changes and report the ...
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| selling stock | 4/25/2007 |
Q: I have 370 shares of FEDEX stock that I want to sell. I have accummulated this stock via Fedex ... A: Perhaps Scottrade can help you determine what you paid or Fedex. Or perhaps you paid nothing since ...
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| W2 | 4/25/2007 |
Q: is it unlawful to claim more dependents than you technically have? The reason I ask is I'm aware ... A: On your W4 you can claim as many exemptions as needed to ensure that the proper amount of tax is ...
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| SALES TAXES | 4/25/2007 |
Q: I'm going to be selling paintings that I've made from people's pet photographs. I do them in ... A: If you're talking about sales tax, that's a state issue. If you're talking about Federal income ...
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| Taxes and Budgets | 4/23/2007 |
Q: Carole, I am not sure if this question is "answerable," but I've got to give it a shot. I am ... A: You can look at your most recent return and calculate the effective tax rate (your total tax ...
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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 the 2 flats are equal in size you depreciate 50% of the building. If they are unequal you ...
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| partial exclusion on home gain | 4/20/2007 |
Q: spirit of the law vs. letter of the law: My husband tried to get into dental school in ky 2005. He ... A: In my opinion your situation would qualify as an unforeseen circumstance. That's not to say that ...
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| dependents | 4/19/2007 |
Q: Per a contract that ended badly, my son stayed with my mother for a little less than six months last ... A: You didn't say whether or not your son lived with you for more than six months. If he did, you ...
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| In home day care provider and taxes | 4/17/2007 |
Q: My wife and I pay a women to care for our son part-time, 5 mornings a week. We pay her cash which ... A: If your babysitter usually provides his or her own work tools and offers services to the general ...
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| Home sale | 4/16/2007 |
Q: I live in CA, and own a home in Maryland which I lived in for 2 1/2 years. After living in the home ... A: Since you owned the home and you are married, your wife need not be a joint owner. If both of you ...
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| W 2 box 12 | 4/14/2007 |
Q: Carole, I have w2 that has amount in box 12a D - $903.03 and another in box 12b V-$47,400, then ... A: The box 12a D amount represents contributions to a 401(k). This amount is excluded from your wages ...
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| Tax liability on disbursement used to purchase main home | 4/14/2007 |
Q: My husband and I had to take a disbursement from our 401K rollover account to pay for the purchase ... A: No it isn't true. If you take a disbtribution from an IRA ($10,000 maximum) and use it for a first ...
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| payroll tax deductions | 4/13/2007 |
Q: You must be inundated with questions right now, so thank you for any time you can give me! My ... A: Your employers should be withholding Federal Income Tax in accordance with the way you completed ...
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| Cap Gain Tax on Sale of property | 4/13/2007 |
Q: I am a Canadian citizen looking at purchasing a retirement home in Palm Desert California with ... A: You don't pay any income tax when you buy a home. If it's your main home and you own and live in it ...
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| dependent or not? | 4/12/2007 |
Q: "I became 24 in Oct-2006. I am also a full time graduate student. I stay with my parents and they ... A: No, your parents cannot claim you because even though you were a full time student, you were not ...
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| HELP PLEASE | 4/12/2007 |
Q: I hope you can ease my mind I was a widow with 4 kids from Ohio I married a man from TX he was the ... A: If he didn't work and had no income he wouldn't be filing a tax return so it may not be an issue. ...
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| Capital gains rollover | 4/11/2007 |
Q: I had a plot of land that I was going to build a home on. I moved out of that area and sold the ... A: Unfortunately you cannot roll the capital gain on the sale of land to your new home. There once was ...
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| Refile Gambling Winnings | 4/11/2007 |
Q: I won some money in 2005 and 2006, but did not report it in 2005. Should I refile my 2005 tax return ... A: You should file an amended 2005 return and report your gambling winnings for that year. That, by ...
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| recently married | 4/9/2007 |
Q: We where married in November, I understand that we file married. We are confused due to the fact ... A: You can file together or separately but if you file separately (Married Filing Separately, not ...
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| 2006 Mortgage Interest Deduction | 4/9/2007 |
Q: Carole - I am with the U.S. Army and was assigned overseas from Jan 1 - July 31 2006. During this ... A: You should report your rental income and expenses on Schedule E. One of your expenses is mortgage ...
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| Capitial Gains | 4/7/2007 |
Q: I am inheriting funds from a Trust Fund from my deceased grandfather and the Federal Tax Cost is ... A: The maximum long term capital gains tax rate is 15%. I assume from what you wrote that you will be ...
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| oversea tax | 4/7/2007 |
Q: I'm an US citizen. I worked and lived in China for the entire year of 2006 with my wife. We made ... A: Yes, as a citizen you are required to file a tax return reporting your worldwide income. You would ...
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| Wife got an Award under box 7 of 1099-MISC | 4/7/2007 |
Q: We're using Turbotax and it automatically wants to walk me through a schedule C as if my wife owns ... A: Yes she needs to complete a Schedule C-EZ and pay self employment tax (social security and medicare) ...
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| Self-employed | 4/5/2007 |
Q: 2007 will be my first time self-employed. I'm working for a tutoring business, but as a sole ... A: You will report your self employment income and expenses on Schedule C and then put your net self ...
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| sales tax deduction | 4/3/2007 |
Q: We built a new home in 2006. Can we claim all the sales taxes that we paid for building materials ... A: You can claim an itemized deduction either for state income tax or state sales tax, whichever is ...
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| Property taxes | 4/2/2007 |
Q: Almost a year and moved into refurbished apartment complex and builder has yet to devide complex ... A: If the property is not in your name, as far as the county is concerned the builder is the owner. ...
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| Per diem | 4/1/2007 |
Q: This is my first year itemizing. I am a freelance theatre designer. I was a guest/visiting in ... A: You can claim your expenses as an itemized deduction on Schedule A as unreimbursed employee business ...
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| Per diem | 4/1/2007 |
Q: This is my first year itemizing. I am a freelance theatre designer. I was a guest/visiting in ... A: In the Tulsa visit were you working or just visiting? If you were just visiting you can't claim any ...
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| Capital Gains tax | 3/31/2007 |
Q: These are the facts: Am I right or wrong. My mother owned a house, when she died my father was ... A: The amount the estate paid to Medicaid does not affect the capital gain on the house, although it ...
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| marriedfiling seperately? | 3/30/2007 |
Q: I was re-married on July 29,2006. Can I still legally file as "Single" or must I file "Married ... A: You couldn't file as Single so Married Filing Separately would be your filing status. But you could ...
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| 1040 Schedule C | 3/29/2007 |
Q: My son received a 1099-misc for for working an internship for his college degree. He is still being ... A: I don't know exactly how Turbo Tax works. But I do know that even if you provide more than half of ...
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| Rental Property and Capital Gains | 3/28/2007 |
Q: Dunton, My wife and I have owned and lived in a home with an attached rental unit for the last eight ... A: You can amend all the returns and pay whatever income tax might be due because of the smaller amount ...
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| State tax refund confusion | 3/28/2007 |
Q: There's something about the tax code involving state tax refunds I don't fully understand. I have ... A: If she made the estimated payments for 2005 in 2006 but couldn't report them on her 2005 return, ...
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| info on claiming a dependant | 3/28/2007 |
Q: My roommate and I have been in a relationship for 20yrs. Last year I was her sole provider (her ... A: You can claim her as a dependent unless your relationship violates local law. For example, in ...
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| Tax on Gift Stock | 3/26/2007 |
Q: My husband's parents gave him some stock that we in turn cashed in in order to buy our first home. ... A: By passed down I assume you mean his parents inherited the stock. That being the case the parents' ...
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| Capital Gains | 3/26/2007 |
Q: My daughter sold stocks which had been gifted to her by her grandfather over a period of 20 years. ... A: If she can establish her cost basis in the stock she will pay taxes only on the gain. Her cost ...
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| State tax refund confusion | 3/25/2007 |
Q: There's something about the tax code involving state tax refunds I don't fully understand. I have ... A: As I understand what you wrote, Alice made $4,000 in estimated state tax payments for 2005 and ...
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| Vacation home capital gains | 3/25/2007 |
Q: Company relocation forced me to see primary home which I excluded gain. One year later sold a ... A: You won't be able to exclude any gain on that home. First of all it wasn't your main home and even ...
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| Tax on Gift Stock | 3/25/2007 |
Q: My husband's parents gave him some stock that we in turn cashed in in order to buy our first home. ... A: When you sell stock you pay capital gains tax on the gain. To determine the gain you need to know ...
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| inherited 401 K and homes | 3/24/2007 |
Q: I have inherited several substantial 401k's from my mother and Grandmother. I had to use one to pay ... A: Distributions from inherited 401(k)'s are indeed taxable. It's not the same as inheriting cash. ...
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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 can't exclude gain from the sale of rental property and you need to report depreciation allowed ...
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| Rental Home | 3/23/2007 |
Q: I have a rental house where my expenses exceed my revenue without considering depreciation this year ... A: When you sell it, to calculate your basis in the property you deduct depreciation allowed or ...
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| Disability Taxes | 3/23/2007 |
Q: My son is 19 and is getting disability. He lives with me full time and pays me 400 a month from his ... A: If you pay more than half of his support, you can claim him. From what you wrote, he is paying $400 ...
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| Tax Fraud | 3/22/2007 |
Q: My wife and I have been seperated since Sept. 2006. She lives in Indiana and I moved to Louisiana. ... A: Since she obviously forged your signature, or had someone else do it, she has filed a fraudulent ...
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| sale of home after 28 yrs | 3/22/2007 |
Q: My mother bought a summer home 28yrs ago for $40,000 and recently sold got $260,000 for it. Her only ... A: Since you refer to it as a summer home I assume that it wasn't her main home. She needs to include ...
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| mother who is disabled | 3/18/2007 |
Q: Can i claim my mother as a dependant? She is disabled and lives with me. She does not work because ... A: If you pay more than half of her support you can claim her as a dependent so long as her income is ...
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| Payment to family Members for Services | 3/18/2007 |
Q: Payment to family Members for Services My sons and wife periodically perform legal, consulting, and ... A: You can't claim the meals or Roth contributions as business expenses. Recipients of gifts are not ...
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| Deductions | 3/15/2007 |
Q: How do i know how much i can take? I am still unsure if i can legally take the deduction. I will ... A: You deduct all reasonable and necessary expenses. Don't forget to take depreciation on the building ...
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| Deductions | 3/15/2007 |
Q: Ok, so let me get this stright the only way i can advertise "for rent" is in the newspaper? What if ... A: Advertising in a newspaper isn't the only way but it's easy to prove if it is ever questioned. If ...
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| estate, gift tax | 3/14/2007 |
Q: My husband and I currently rent my mother's rental home. She has offered to gift us the house. We ... A: You would have no tax consequences if she gives you the equity in the house. But she would be ...
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| Deductions | 3/14/2007 |
Q: I purchased a house in 2006 (2 unit)i live downstairs and I am doing all the renovations and repairs ... A: You report your rental income and expenses on Schedule E. If it was available for rent in 2006 and ...
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| money for car? | 3/11/2007 |
Q: I haven't filled my taxes yet and i heard that if you have bought a car then that could get you more ... A: You can deduct the sales tax paid on the car as an itemized deduction on Schedule A. The sales tax ...
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| capital gains(what % to IRS | 3/9/2007 |
Q: I bought property from my mother for 25 thousand in 1986 to pay for her health care. Later IRS made ... A: Explain it to your tax person just the way you explained it to me. If it was a purchase your basis ...
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| 1099-r related | 3/8/2007 |
Q: This past year I took 4000 dollars out of an American Express traditional IRA. American Express ... A: You should have received one 1099R, not two. You will pay taxes (plus a 10$ penalty for early ...
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| Schedule C Question | 3/6/2007 |
Q: I am a marketing consultant and purchase services from independent contractors (copywriters, ... A: I would issue 1099s to the corporations and include them in contract labor. There is no reason not ...
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| sale of investment home | 3/6/2007 |
Q: We purchased and sold an investment home this year. It was our only transaction of this nature - ... A: It's true that as an investor you can use only $3,000 of capital losses to offset other income. But ...
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| individual capitol gains | 3/5/2007 |
Q: in 2006 mother gifted to me $12000 cash and vacant land assessed at $6139. what is the appropriate ... A: You don't report the gifts. Your mother should file a gift tax return. Most likely she will owe no ...
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| Commuting or Personal Mileage | 3/3/2007 |
Q: Which one do I use for filing taxes? I am an independent contractor for a newspaper. I am getting ... A: You use business mileage rather than commuting or personal. If, for example, you deliver newspapers ...
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| charity donations | 3/2/2007 |
Q: I have 2 questions, both regarding charitable donations. We donate food and clothing to our church, ... A: Donations to individuals, however needy, are not deductible. The donation must be to a charitable ...
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| net small buisness loss | 2/26/2007 |
Q: can she call this a hobby if she recieves a tax form from Longaberger with earnings?...even though ... A: Whether or not she has a business rather than a hobby depends on how she conducts the activity. ...
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| Rental Mobile Home loss from tenants | 2/25/2007 |
Q: Goodmorning, I own a mobile home in Tennesse that I could not sell, in an effort to cover the ... A: Your rental income and expenses should be reported on Schedule E rather than Schedule C since this ...
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| milage | 2/23/2007 |
Q: how do i get refunded for mileage A: If you are an employee (you receive a W2 if you're an employee) you deduct your business mileage as ...
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| Social Security Benefits... | 2/20/2007 |
Q: Can you brief me how to go about paying self-employment tax? Is it complicated? Finally, after ... A: You report your self employment income and expenses on Schedule C or C-EZ. You calculate your self ...
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| Social Security Benefits... | 2/19/2007 |
Q: Dunton..Since Social Security points (years of employment) have to be met to get benefits. I'm ... A: You have to have earned income in order to pay into social security. Your husband cannot pay in for ...
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| Missing Purchase Date and Purchase Price From Brokerage | 2/17/2007 |
Q: How can I fill out my schedule D to reflect the entire selling of my mutual fund shares when the ... A: Normally brokerage firms do not put your purchase data on a 1099B. Have you asked them if they have ...
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| SOMEONE USED MY CHILD WITHOUT MY PERMISSION | 2/16/2007 |
Q: I just recently file my taxes with jackson hewit, and they told me that someone used one of my ... A: If you are entitled to claim the dependent, you can mail your return claiming him/her and the IRS ...
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| Medical, Dental & Vision costs paid by employee | 2/14/2007 |
Q: my husband is a county employee; the county pays a portion of our medical, dental and vision ... A: You say that your portion is deducted before taxes which leads me to believe that it is not ...
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| Roth IRA | 2/12/2007 |
Q: I am 69 years of age and I have had a Roth IRA account for about eight years now. I am considering ... A: Unless you converted a Traditional IRA to a Roth less than 5 years ago, your Roth distributions are ...
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| State and federal taxes for sole proprietorship | 2/8/2007 |
Q: I own a small business and moved in july of 2006 from columbus OH to Chicago IL. I earned income in ... A: You will need to file a state return with both states. On the Federal you combine the taxes paid to ...
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| Rental Property Depreciation | 2/6/2007 |
Q: In other words, I have to depreciate my rental property and furniture no matter what. If I do not ... A: They might flag it as an error but the important thing is you will have to calculate your gain as ...
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| income tax | 2/6/2007 |
Q: I am trying to do my own tax return this year. In the past year I sold some stock inherited by me ... A: You need to know the fair market value of the inherited stock when you inherited it. You can look ...
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| capital gain on real estate | 2/4/2007 |
Q: I recently sold a rental property, oroginally bought for 56500 in 2000, refinanced two times, sold ... A: You determine your gain by deducting your adjusted basis from your adjusted selling price. ...
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| disabled/unemployed/adult dependant? | 2/1/2007 |
Q: I am 37 years old, on Social Security disability, unemployed, I recieve Food Stamps and I live with ... A: If you have no income other than Social Security disability, you don't need to file a tax return. ...
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| llc | 2/1/2007 |
Q: me and my father have started a trucking business and have formed a llc. our goals are to pay our ... A: An LLC is not an entity as far as the IRS is concerned. You apparently have a partnership and can ...
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| IRA penalties | 1/29/2007 |
Q: After 20 years at my previous job, I quit in January 2006 to move to NM and pursue my art. Over the ... A: I'm sorry that things are not going well for you just now. There is no way to put off paying the ...
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| continued losses from real estate | 1/28/2007 |
Q: I am a real estate investor. I have owned property for about 4 years now. However, my first few ... A: As your accountant says, a lot of people lose money in real estate. If you report losses several ...
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| Income taxes and divorce | 1/28/2007 |
Q: My husband and I divorced last April, but continued living in the same house, sharing all expenses ... A: You can't file jointly since you weren't married. If you are both liable for the mortgage payments ...
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| child who works | 1/27/2007 |
Q: I am a single parent of a 17 year old. He worked and earned approximately 5000.00. Can I claim him ... A: If your 17 year old was a full time student, you can claim his exemption regardless of his earnings ...
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| Capital gains on duplex sale | 1/26/2007 |
Q: How can I determine to cost of the land?I bought a house in 1996 for 185K. Sub divided the land in ... A: The cost of the land is what you paid for it. You said you bought the house for $185,000. I assume ...
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| Filling status | 1/25/2007 |
Q: A married woman that is seperated with one child, how does she file. She is seperated for at least 6 ... A: If she didn't live with her husband during the last 6 months of the year and she maintains a home, ...
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| Capital gains on duplex sale | 1/25/2007 |
Q: I bought a house in 1996 for 185K. Sub divided the land in 90. Divorced in 2003 and got the new lot ... A: To calculate your gain on the sale, you deduct your adjusted basis from your adjusted selling price. ...
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| babysitter | 1/24/2007 |
Q: I babysat for two families and I wanted to know how should I file since I don't have a w-2.and what ... A: You report your babysitting income and expenses on Schedule C. Your net self employment income is ...
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| Dependency test question | 1/23/2007 |
Q: My brother was divorced in 2006, his new girlfriend moved over here early in Jan/Feb of 2006 and he ... A: In order to claim them as dependents, they must have lived with him the entire year and his ...
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| differance between 01 and 00 | 1/20/2007 |
Q: . now that i got married i still don't understand how to fill out the w2 form they give you when you ... A: You and your wife need to coordinate your W4s. If you each claim Married and 2, you won't have ...
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| deductions | 1/19/2007 |
Q: Within this last year I have both gotten married and bought a house. My mother tells me to save all ... A: The improvements you make to your home are not deductible. However, the cost of capital ...
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| question about claming dependants. | 1/19/2007 |
Q: I would like to know if or what am I to do, because my nephew was living with me until the end of ... A: From what you told me and assuming you paid more than half of his support, you would be entitled to ...
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| disability exemptions | 1/19/2007 |
Q: I've been on workman's comp, followed by LTD from Jan. 25, 2005 thru today(Jan. 18, 2007). I am ... A: If you have taxable income, you would have your own exemption and that of your child as well as your ...
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| recently purchased a home | 1/16/2007 |
Q: Good morning, My wife and I purchased a home Jan '06 we payed about 6000.00 in interest and 2900.00 ... A: Your standard deduction is $10,300. The itemized deductions you mentioned total less than that. ...
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| Charity Deduction for 2007 | 1/15/2007 |
Q: How can I find out if the law is changing for 2007 for charitable deductions? I've heard that the ... A: Go to the IRS web site www.irs.gov and type charitable contributions in the search box. That should ...
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| claiming child | 1/14/2007 |
Q: i am divorced, disabled woman who works only 10 hrs. a week. have one son age 16, me and my ex have ... A: You can't both claim him for half of the year but you can let your ex-husband claim his dependency ...
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| claiming someone | 1/13/2007 |
Q: i was wondering if i can claim my fiance, we live together and she hasnt worked all year. can i ... A: You can claim your fiance unless your relationship violates local law. For example, in Tennessee ...
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| house sale | 1/11/2007 |
Q: i sold moms house paid off bill at nursing home that was 69,000 sold house for 340,000.oo less ... A: I assume that mom owned the house. If she owned and lived in it as her main home for 2 years during ...
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| Capital Gain | 1/10/2007 |
Q: I own 2 Condos and I want to sell 1, and purchase a house How much capital gain will I have to pay? ... A: If the condo you sell is your main home and you have owned and lived in it as your main home for 2 ...
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| w2 for dependant child | 1/9/2007 |
Q: my 17 yr. old rec'd a w2 from a job she only worked at for a month. She is now 18 yrs old. I have ... A: Yes she can file a return but she can't claim her own exemption since you are claiming it. She will ...
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| HUSBAND & WIFE | 1/8/2007 |
Q: Can me and my wife file separate even while living together? A: Yes, you can file separately even though you live together. But there are disadvantages to filing ...
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| May I file HOH or use a dependent | 1/4/2007 |
Q: My boyfriend lived w/me for all of 2006 and had no income. I supported us both totally. May I claim ... A: Since he isn't related to you, you couldn't file as Head of Household. You can claim him as a ...
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| purchasing rental house | 1/4/2007 |
Q: We purchased a house for our daughter. We paid $25,000 down and she is making the mortgage ... A: If you are treating it as rental property you report your income and expenses on Schedule E. One of ...
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| taxes | 1/3/2007 |
Q: i am a single father and sole provider, however i share a home with a buddy of mine to whom i pay ... A: It's perfectly legal to use a PO box as your mailing address. But it isn't legal to claim you paid ...
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| Tax deduction | 1/2/2007 |
Q: While building our present home, we sold our previous home at a loss before the new home was ... A: Both losses are non-deductible personal losses. I know it doesn't seem fair that you have to pay ...
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| home sale exclusion | 12/31/2006 |
Q: I have been on my mother's deed since 2000 indicating joint ownership. My primary family residence ... A: In my opinion your mother's home would not qualify as the main home that you owned and lived in for ...
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| Changes | 12/31/2006 |
Q: " What do we need for this years taxes? My husband went through lots of chnges this year. My husband ... A: You can file a joint tax return since you were married before the end of the year. You will report ...
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| Sale of Mutual Funds for New Home Downpayment | 12/30/2006 |
Q: My question may be moot, but I appreciate your time and assistance. For a few years, we have been ... A: You will have to pay the full capital gains tax on the sale of your mutual funds. You've probably ...
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| Hope Credit | 12/29/2006 |
Q: Would I be able to get the Hope Tax Credit. I am currently enrolled in Coppin State University as a ... A: If you are enrolled on at least a half-time basis in a program that leads to a degree, certificate ...
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| Early Withdrawl Exceptions 401K Rollover - 1st time homebuyer | 12/27/2006 |
Q: It got me most of the way, now let me ask another. My wife's name is actually on the title to my ... A: Since your wife's name is on the title, she is a homeowner whether or not she is on the mortgage. ...
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| foreign income and roth iras | 12/27/2006 |
Q: I have a Roth IRA, and I live and work in Japan. I am an American citizen, and use my parents ... A: Assuming that you file a tax return reporting your foreign income, you can make contributions to an ...
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| Early Withdrawl Exceptions 401K Rollover - 1st time homebuyer | 12/26/2006 |
Q: Regarding the topic line, how to define a 1st time homebuyer? Who is qualified? I am not, but my ... A: The first time homebuyer exception to the penalty applies only to IRAs. So you would have to roll ...
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| Per Deim 1542 | 12/26/2006 |
Q: I'm an Over the road truckdriver. Can I use form 1542, per diem on my taxes. I've been told yes and ... A: Yes you can use per diem rates on your tax return. Pub 1542 gives the rates for various locations. ...
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| Two owners one property | 12/20/2006 |
Q: My fiance and I bought a home this Sept. We share all expenses. How do I claim the house - income ... A: Your name should be on the title to the home. Perhaps it is and the town tax receipt just shows the ...
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| Capital Gains on sale of duplex, lived in one half | 12/20/2006 |
Q: I was hoping you could answer the following questions: If I lived in 1/2 of a duplex and rented out ... A: Good job in calculating your gain on the rental. And, of course, you can exclude the gain on the ...
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| IRA contribution | 12/19/2006 |
Q: May I use a diamond purchase as an ira contribution? the purchase was for a wedding that did not ... A: IRA contributions have to be in cash. Once within the IRA you can purchase other things if a ...
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| student EIC | 12/17/2006 |
Q: I've been reading up on IRS.GOV and it's my understanding that since I was a fulltime student ... A: I don't know what you read to lead you to the $250/month EIC because you were a full time student ...
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| Tax on Land Sold | 12/16/2006 |
Q: My wife & I recently sold a piece of property in VA. We bought the land in April 2004 ($28,000), ... A: Yes you have to pay Federal capital gains tax on the difference between your adjusted selling price ...
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| diff. ways to file | 12/15/2006 |
Q: I am getting a divorce by the end of this year. Can I file as single for my '06 taxes? My W-2's ... A: If you are divorced by the end of the year you will have to file Single unless you maintain a home ...
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| Stocks, Capital Gains, and Tax Brackets | 12/13/2006 |
Q: #1 - i have heard conflicting reports about how capital gains tax works with regard to stock ... A: Long term capital gains (stocks held more than one year) are taxed at a maximum of 15%. The ...
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| student exempt | 12/13/2006 |
Q: I am a full time student at Maricopa community college in phoenix arizona i just wanted to know how ... A: Students aren't exempt from taxes simply because they're students. But a student working for a ...
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| 1099 | 12/12/2006 |
Q: I got a contact with a church, which is to setup the website. I will get paid $100 (setup fee) in ... A: You are required to report all your income including these small fees. If this is self employment ...
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| Child Credit and Divorce | 12/11/2006 |
Q: My ex-husband and I got divorced last March. I was wondering, we live in IL, is he legally ... A: You didn't say whether the children live with you or with him or who supports them. Generally the ...
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| Tax Excempt | 12/10/2006 |
Q: I heard that a family size of 8 was tax excempt. Could you tell me if this is true? Thanks so much. A: A family of 8 is not automatically tax exempt. However you get to claim 8 exemptions unless your ...
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| House Sale Tax | 12/9/2006 |
Q: I will be 65 in Nov of 2007, am selling a house in 2007 is my senior tax available during tax if I ... A: Since you will be 65 before the end of 2007 you will be considered 65 for the whole year and can ...
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| First-Time Homebuyer withdrawl from IRA | 12/7/2006 |
Q: Quick question. I have a Roth IRA and meet the qualification for a first-time homebuyer. In my ... A: I know of no revenue ruling about the first time home buyer exception to the 10% penalty. But the ...
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| Computers Tax Deductible for Career Development? | 12/7/2006 |
Q: I am a computer technician whose entire career has revolved around PCs. The company that I work for ... A: You could deducting the purchase as an unreimbursed employee business expense on Schedule A to the ...
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| Cap gains tax on sale of home | 12/6/2006 |
Q: and then rented it. If we sell that home now, we are exempt from Cap gains tax on that home. But ... A: You can no longer roll over gain on the sale of your home into a new home. That was replaced by the ...
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| Cashing out an IRA | 12/5/2006 |
Q: Approximately 2 years ago I rolled over my 401K into and IRA. I am currently going through a ... A: If you cash out your IRA you will pay ordinary income tax on the distribution at whatever rate your ...
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| i sold my home, capital gain? | 12/5/2006 |
Q: here it is: i sold my house and made 120k ,but during the sale of my house i bought another house. i ... A: You must have owned the house for 2 years as well as lived in it for 2 years to exclude the gain on ...
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| Tax advice | 12/4/2006 |
Q: I need some advice but I had better give you a little background. I purchased my home 5 years ago ... A: Taxwise it doesn't matter if you buy this year or next. So buy when you find the home you want at ...
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| Capital Gains | 12/3/2006 |
Q: I have not received an answer to my question about capital gains taxes. You asked if the property ... A: I'm not sure why but I never received the second message. Since you didn't inherit the property ...
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| gift taxes | 12/3/2006 |
Q: I'm confused. I know a person can GIVE up to a million dollars in their lifetime tax free. I would ... A: The recipient of a gift is not required to file a gift tax return or include the gift in taxable ...
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| filing taxes | 12/3/2006 |
Q: Im married and my husband is in the military. We lived in separate households for the entire year. ... A: You can't file as head of household because you are married and do not have a child for whom you are ...
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| Figuring basis when rental property sold | 11/30/2006 |
Q: I recnetly sold a condo townhouse. I purchased it in 1989 and used it as my primary residence until ... A: When you convert a property to rental property you use the lower of the fair market value or your ...
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| joint returns | 11/30/2006 |
Q: "What's gonna happen this year? My fiance and I are getting married on December 8 and I didn't work ... A: When you get married your fiance becomes the children's stepfather. You should file a joint return ...
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| Capital Gain Tax on First Home | 11/30/2006 |
Q: Carole, My wife and I purchased a home, which we were renting from my parents for three years, in ... A: What you heard is not true. You need to own and live in it as your main home for 2 years to be able ...
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| selling our home | 11/29/2006 |
Q: I live in Norhtern Michigan. I have owned property for several years, but only put a home on it in ... A: To calculate your gain you deduct your adjusted basis from your adjusted selling price. Your ...
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| filing taxes..which statte? | 11/29/2006 |
Q: I live in Maryland with my 2 kids and this is where our family owned house is. Currently my husband ... A: Since your main home is in MD, I would use that address. You can do multiple state returns with ...
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| Taking draws on my small business | 11/29/2006 |
Q: I take draws regularly from my business. I thought that this was considered income and now that I'm ... A: As a one-man business you should be filing Schedule C to report your income and expenses. Your net ...
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| gifting laws | 11/28/2006 |
Q: My parents are 82 years old. My father has an ongoing illness and is failing. They want to gift ... A: If your father should have to go into a nursing home and need assistance from medicaid, they look ...
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| 401K-PENSION DISTRIBUTION | 11/28/2006 |
Q: I am over 60. Is there a way to avoid the higher tax bracket that adding a distribution to my normal ... A: I, too, am over 60 and always looking for a way to avoid the higher tax bracket that adding a ...
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| Does my per diem expense need receipt? | 11/26/2006 |
Q: I am W2 contract job. So the company withhold all taxes. The company pay me the maximum per diem ... A: If your employer is paying more than the Federal per diem rate, they are required to include the ...
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| Tax/re-payment for HUD | 11/24/2006 |
Q: My mother, 80, is due to win a large monetary award for wrongful death suit against a hospital where ... A: Any interest on her award is taxable. Punitive damages are taxable except in certain wrongful death ...
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| capital gains | 11/23/2006 |
Q: My husband & I bought a home on 2 1/2 acres back in April 2003. We are in a dissolution of ... A: Normally your basis in property is what you paid for it - not what it is worth when you split ...
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| Capital Gains Tax on Sale of Home | 11/23/2006 |
Q: Carole, I read your answer to another post on 11/6. I am not really that literate on taxation. Can ... A: If you owned and lived in the Georgia home as your main home for 2 years during the 5 years ...
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| 401K | 11/22/2006 |
Q: so just to be clear, it would just be taxed as income and there would be no other penalities ... A: The 10% penalty isn't taken off the top by the fund manager. What they withhold is added to your ...
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| W2 contractors and deductions | 11/22/2006 |
Q: I've been a W2 contractor on-and-off and am wondering about deductions for various expenses. Are ... A: If you get a W2 you are an employee and any unreimbursed employee business expenses can be deducted ...
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| 401K | 11/22/2006 |
Q: We just had our first child and I am staying at home to take care of her. The extra money would ... A: The $8500 will be added to all your other income and taxed at whatever rate your total income and ...
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| Qualify dependent - student resident | 11/21/2006 |
Q: My partner and I moved to a new state after I graduated from school in the Spring of 2005. He ... A: He would need to have lived with you all year to qualify as your dependent. Temporary absences for ...
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| filing for doing babysitting | 11/21/2006 |
Q: I do babysitting in the home of the children not in my home, the question is do i have to file taxes ... A: Your employer is required to withhold and pay FICA taxes (social security and medicare) if they pay ...
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| selling of property/ tax questions | 11/20/2006 |
Q: We are trying to sell our rent house so that we can put the money into our own house. We are trying ... A: Assuming you have owned it more than one year, gain on the sale will be taxed as a long term capital ...
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| Tax on sale of inherited property | 11/18/2006 |
Q: In April 2001, my five cousins and I inherited the family farm of 276 acres with two houses. The ... A: Assuming that you sold the property at a gain, you will report that gain on Schedule D. Since you ...
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| Claiming my newborn child | 11/18/2006 |
Q: Me and my wife are proud parents of three children, and as of July 22,2006 a baby boy. I needed to ... A: Congratulations on your new son. Assuming that he lives with you, you will be able to claim him as ...
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| stock sale/rollover | 11/18/2006 |
Q: If the company you work for goes private, buys the stock you invested in the company previously for ... A: The sale of the stock will be a capital gain. If you held the stock more than one year, it will be ...
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| taxes | 11/15/2006 |
Q: the 5 jobs i have worked in the year od 2003 and 2005 i never recieved or did my taxes cause i was ... A: Assuming that you are single, if you earned more than $7800 in 2003 and more than $8200 in 2005, you ...
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| Capital Gain Taxation | 11/15/2006 |
Q: If we sell my Mother's house and use the capital gain to add an addition to our house for her to ... A: If your mother owned and lived in the home as her main home for 2 years during the 5 years preceding ...
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| Gift Of Equity | 11/14/2006 |
Q: I just sold my house to my married daughter, for $312,500, gave a $62,500 gift of equity, netting ... A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ...
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| Retirement income limit for tax | 11/13/2006 |
Q: My mom is recieving social securtiy and has a very part time job. At what point will her social ... A: When half of her social security plus all her other income exceeds $25,000 (assuming she is single), ...
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| Two states | 11/12/2006 |
Q: I work as a sales rep. in both Colorado and New Mexico. I live in Colorado. I spend most of my time ... A: I think your company should be withholding tax for Colorado, rather than New Mexico. Normally ...
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| Capital Gains | 11/11/2006 |
Q: We bought a home in Florida a year ago and are going to sell it and move back to Iowa this spring. ... A: If your move is for reasons of health, employment or certain unforeseen circumstances, you could ...
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| claiming the kids | 11/11/2006 |
Q: I have 4 kids, my X and I have been seperated for over a year and a half. (since august 05) . Last ... A: Unless there is a court order stating that he can claim any of the children, you aren't required to ...
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| tax liability | 11/9/2006 |
Q: My husband and I are retired and have been low income for the past twenty years. We have not filed ... A: If your inheritance was in the form of cash, you have no tax obligation. If you're the beneficiary ...
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| Claiming an unrelated child | 11/8/2006 |
Q: I was talking to my fiancee, and I left something out of my question. Her and her daughter are on ... A: If you have no way to prove your support of the child, you would not be allowed to claim her if your ...
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| Claiming an unrelated child | 11/7/2006 |
Q: Ok, me, my fiancee, and her 6 year old daughter have lived in an apartment for 14 months now and i ... A: Yes you can claim the child as a dependent but not for earned income credit. If you and her mother ...
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| company paying for your cell phone | 11/5/2006 |
Q: I USE MY CELL PHONE AT WORK,SHOULD MY COMPANY BE PAYING MY BILL SINCE I USE IT FOR MY COMPANY? A: You can certainly ask your boss about it, especially if they require you to provide a cell phone. ...
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| Capital Gains Tax on Sale of Home | 11/3/2006 |
Q: I recently sold a house after 19 months of ownership. My friend and I went half and half on the ... A: When you move for employment reasons, your reduced exclusion is calculated by comparing the number ...
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| Can I claim head of household | 11/2/2006 |
Q: I'm a 23 year old whom ned to know if i'm eligible to claim head of household. I live in an ... A: To file as Head of Household you would need to provide a home for a child so your filing status is ...
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| claiming mother as dependant | 11/2/2006 |
Q: My mother (88) has lived in our home for 6 years and filed taxes separatly. Her income is from SS ... A: If 2005 was a typical year, her income is too high for you to claim her. Assuming that you pay more ...
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| Insurance Settlements | 11/2/2006 |
Q: I was involved in a motorcycle/car accident and will be receiving a settlement in the near future. I ... A: Generally settlements for bodily injury are not taxable. But if any of the award is for punitive ...
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| selling my house | 11/1/2006 |
Q: Here is my question. I bought my house in Fairfax, VA in 1998 for around $189,000 now I live in ... A: The maximum long term capital gain tax rate is 15%. On $311,000 that would be $46,650. But when ...
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| spousal maintenance & car payment | 10/31/2006 |
Q: My husband and I had a discussion about tax write off's at lunch today. The question came up about ... A: It sounds to me as though it would qualify to be deducted as alimony but you might want to get the ...
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| Wrap fees in individual investment brokerage accounts | 10/31/2006 |
Q: Are "wrap fees" considered deductible that are taken out of individual brokerage accounts? Thank ... A: Yes you can deduct wrap fees as a miscellaneous itemized deduction subject to the 2% of AGI floor. ...
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| tax | 10/28/2006 |
Q: Carole, Thank you for taking my question. I own two investment properties, nice condos. I have ... A: You report your rental income and expenses (mortgage interest, HOA fees, etc.) on Schedule E unless ...
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| taxes for work boots and tools | 10/27/2006 |
Q: I am having trouble figuring this one out so maybe you can help. I am probably going to make about ... A: You didn't say whether you itemize deductions or take the standard deduction. The only way to ...
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| Disabled with 2 children | 10/27/2006 |
Q: I became disabled after 10 years of self employment in 10/05 due to a back injury I suffered while ... A: I'm sorry to say there are no tax benefits for someone in your situation. There is a tax credit for ...
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| mortgage interest deduction | 10/26/2006 |
Q: as I understand it the mortgage interest on a second residence escapes the alt minimum tax. I'm ... A: You seem to understand the alt min tax very well. Deductible mortgage interest on both homes would ...
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| sale of condo | 10/24/2006 |
Q: I realize that the profit on the sale of my Condo is taxable as a long term capital gain. ... A: Yes, the special assessments can be added to your basis along with most of the closing costs. If ...
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| tax deduction for mortgage interest | 10/24/2006 |
Q: During a lease-to-purchase arrangement with a seller, during which, the home will remain in the ... A: There has to be an obligation to pay the mortgage. If you have a binding agreement to pay the ...
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| Taking Care of Momma | 10/23/2006 |
Q: 1. My Primary Residence is New York. 2. Four years ago, My Momma (Who lives in South ... A: Your profit on the sale of the condo is taxable as a long term capital gain. What you did with the ...
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| How much capital gain will we pay? | 10/23/2006 |
Q: We have been in our house for 19 months (brand new) if we sold now, what percentage would we have to ... A: The maximum capital gains tax rate is 15%. But if you are moving for reasons of employment, health ...
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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: The deduction for donated items is the lower of your basis (generally what you paid for it) or the ...
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| 9mo Student Taxes | 10/23/2006 |
Q: I am employed like most graduate students asa part-time Teaching Assistant (20hr/wk). My paychecks ... A: As far as I know, your SS and Medicare status remains the same as in former years. The ...
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| tax questions on depenents | 10/22/2006 |
Q: I'm single with 2 daughters, one is 18 & living with me, she works full time, makesabout $1000 a ... A: Unless your daughter is a full time student you can't claim her. If the total of 7 included your 18 ...
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| 9mo Student Taxes | 10/22/2006 |
Q: I am a graduate student living in Texas. My income is less than $15,000, and I am single without ... A: I don't quite understand your question about SS, FICA and federal tax withheld. I assume you are ...
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| Quit Claim and Taxes | 10/22/2006 |
Q: Mom has quit claimed her home to me and moved into an apartment. The home is now up for sale. ... A: Yes it would be better to quit claim it back to her. She would qualify to exclude $250,000 of gain ...
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| Can I claim more allowances or exempt? | 10/21/2006 |
Q: I am hurting for money really bad right now. I have always had 0 allowances and have paid quite a ... A: You can change it as often as you like and you can claim more than 2 exemptions if, for example, you ...
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| CLAIMING GRANDSON? | 10/21/2006 |
Q: I am married and my grandson lives with us can i claim him? A: You can claim him if he lived with you for more than half the year, you paid more than half of his ...
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| Charitable contributions | 10/17/2006 |
Q: I created a software program (an Access database) for a public school and the principal thought we ... A: The value of your time is not deductible as a charitable contribution but any expenses you incurred ...
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| Tuition deduction/credit | 10/16/2006 |
Q: My husband and I filed married/jointly for our 2005 tax year. We paid over $12,294 in college ... A: The tuition and fees deduction is actually an adjustment to income and reduces your taxable income. ...
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| Capital gains tax | 10/13/2006 |
Q: If I sell a primary residence, under 2 years in the state of AZ, is there a period of time that I ... A: There is no longer a provision in the law to defer taxation of gain on your home by investing in ...
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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: I don't know how far back they can go, but you can call the IRS to find out about your previous tax ...
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| Per diem expenses | 10/12/2006 |
Q: We are an oil and gas employer. Our drilling rig workers receive a per diem amount ($32/day). Is ... A: If an employer pays less than the Federal per diem rates for their area, the employees are not ...
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| Claiming tools bought for work | 10/11/2006 |
Q: I'm a carpenter and figure I've spend around $800 at Home Depot this year on everything from power ... A: You could claim unreimbursed employee business expenses as an itemized deduction on Schedule A to ...
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| Rental Property Income | 10/10/2006 |
Q: So would you advise to set up an llc for liability purposes even if I have just one property and a ... A: I am not a big fan of LLCs especially when it's one structure and you have insurance. From a tax ...
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| IRA deadline | 10/10/2006 |
Q: Carole: Sorry I did not make my question clear enough (I try not to be too wordy). I have an ... A: You're right, I didn't understand. Unfortunately the deadline for funding an IRA is April 15th. ...
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| Capital Gains on Home Sales, wife going to Law School | 10/9/2006 |
Q: We bought a condo in Downtown Columbus and it is under construction and will be done soon. I ... A: To exclude gain on the sale of your main home you must have owned and lived in it as your main home ...
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| Rental Property Income | 10/9/2006 |
Q: I plan on buying a duplex as an investment. I'll probably have property mgt. company take care of ... A: I think it's a good idea to keep funds separate but unless you're in the business of renting ...
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| IRA deadline | 10/9/2006 |
Q: Greetings. I understand that one can make IRA contributions for last year until April 15th. My ... A: The money must be in your IRA by April 15th even if it's only in a money market account. After that ...
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| HI tax | 10/8/2006 |
Q: If I am hiring employees in Hawaii as independent contractors, do they need to pay GE excise tax? If ... A: I'm sorry but I've not heard of GE excise tax. What is it? As independent contractors they would ...
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| Follow-up / question asked on 9/8/06 re: stock sales | 10/8/2006 |
Q: This is more a thank you rather than a question, however I know of no other way to let you know how ... A: You're more than welcome. I'm glad I was able to help. I think the NC top tax rate is around 8%. ...
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| Follow-up / question asked on 9/8/06 re: stock sales | 10/8/2006 |
Q: You were most helpful in answering my question last month, (9/8/06 - stock sales/tax consequences), ... A: Unless you invested more money in the stock that you now own (and my memory says that you didn't), ...
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| rental house sale | 10/8/2006 |
Q: I purchased a rental property 12 years ago for $69,000 and will sell it for $175,000. If I don't do ... A: I assume you've been reporting your rental income and expenses over the past 12 years. I need to ...
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| Follow-up / question asked on 9/8/06 re: stock sales | 10/7/2006 |
Q: You were most helpful in answering my question last month, (9/8/06 - stock sales/tax consequences), ... A: Your basis in the stock is $36,805 ($39.875 X 923 shares rounded up to the next dollar). If you ...
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| Medi-cal and gifting money | 10/7/2006 |
Q: I recently got a workers comp settlemt. I have $85,000. I am in the process of starting kidney ... A: I'm so sorry for your situation and hope that you receive a new kidney soon. I'm no expert on ...
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| married filing seperate | 10/6/2006 |
Q: My spouse and I are still married but seperated over 6 months of the year.. I have not made more ... A: If your only income was $5,000 and you do not wish to file jointly with your husband, you have no ...
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| Personal or Business Invoice | 10/6/2006 |
Q: I just did a few hours of computer consulting on my own. I don't expect to do much more of this type ... A: It wouldn't be kosher unless you are a shareholder or partner in the LLC. You would need to report ...
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| Unmarried homeowner.... | 10/6/2006 |
Q: My boyfriend and I bought our first house together this summer and we are uncertain as to how we ... A: The way you're doing it will allow each of you to claim half the mortgage interest and half of the ...
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| Need to file? | 10/3/2006 |
Q: I have two questions. I'm my mother's adult caregiver. I don't work outside the home. What's the ... A: If your income exceeds your personal exemption ($3,300 for 2006) your mother cannot claim you. If ...
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| Capital Gains on undeveloped property that was gifted | 10/3/2006 |
Q: My father purchased 18 acres of undeveloped land 1973 for approximately $6,000 dollars. He gifted ... A: Yes you and your brother would have to pay long term capital gains tax on your gain. The maximum ...
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| Capital Gain on the sale of subdivided land | 10/2/2006 |
Q: Believe it or not, the lot was separately stated at the time by the local property tax assessor. ... A: If you deduct the $20,500 plus $500 for permits from $100,000, the gain is $79,000. You can add the ...
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| I don't work | 10/2/2006 |
Q: My fiance and I are getting married in the beginning of November and I don't work so how should he ... A: As long as you are married by 12/31, you are considered married for the entire year so you would ...
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| sales tax | 10/1/2006 |
Q: I was told that if i keep the receipts on all things I buy I can deduct the sales tax on my taxes ... A: It was true for 2005 and, if congress extends that provision of the tax law, it will be true for ...
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| TAX Break | 9/30/2006 |
Q: I was told that if you have 5 kids you are exempt from paying Federal Taxes is this true and if so ... A: No it is not true that if you have 5 kids you are exempt from paying Federal income tax. For 2006 ...
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| NC nonresident state tax | 9/29/2006 |
Q: I reside in TN and work in NC. NC state tax is withheld from my check each period. Does a ... A: I am also in Tn and have had many clients who worked in NC for a time although they live in TN. I ...
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| Single w-4 exceptions | 9/28/2006 |
Q: I am 21, single, no dependants, rent, and paying for a car. I have had 4 jobs this year and expect ... A: From what you wrote your total income for the year will be about $37,000. Since you didn't say how ...
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| Capital Gain on the sale of subdivided land | 9/28/2006 |
Q: A 3 family home purchased in 2000 for $120,000. It is currently being used as a primary residence ... A: You need to determine your cost basis in the land. How much of your purchase price of the property ...
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| partnerships and eins | 9/28/2006 |
Q: A co-worker and I are starting a new construction business and we have decided on a 50/50 ... A: No, the partnership only uses one EIN. I assume you're completing an SS4. The name on line 1 ...
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| Sale of inherited property | 9/28/2006 |
Q: My father inherited a home that was worth 55k. A developer offered to purchase the property 4 years ... A: Yes he will have to pay capital gains tax - maximum 15%. But such a large addition to his other ...
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| Sale of personal property - tax liability | 9/27/2006 |
Q: If I sell high value personal property (not real estate), what is my tax liability? There is no ... A: Yes, you've got it right. It's a capital gain determined by deducting your basis from your adjusted ...
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| Parent as a Dependent | 9/27/2006 |
Q: My mother is 59. She is divorced (twice-no alimony) and lives alone. She has struggled to make ... A: For income tax purposes you can claim her as a dependent if you pay more than half of her support ...
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| EE Savings Bonds | 9/27/2006 |
Q: I have several EE savings bonds and can't seem to find a straight answer about whether or not I can ... A: Good question! The issue is not addressed in the IRS Pubs but since the educational institution is ...
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| IRAs as Taxable Income | 9/26/2006 |
Q: I have a number of traditional IRAs in wish I want to cash in this year. If I take this money and ... A: If you take distributions from your traditional IRAs and you did not include them in income when you ...
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| Student loans & Taxes | 9/26/2006 |
Q: I have gone back to college this fall. In order to help with the cost of living expenses and ... A: The student loans are not accounted for on your tax return. When you start paying them back you ...
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| REAL ESTATE CAPITAL GAINS CROSS STATE BORDER | 9/26/2006 |
Q: MY FATHER PURCHASED LAND IN NEW YORK STATE WHILE HE WAS A RESIDENT IN NEW YORK IN 1965. IN 1990 HE ... A: Unfortunately the cross border taxation he is thinking of doesn't cover capital gains or many other ...
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| Individual Tax Dependant Claims | 9/25/2006 |
Q: I am 21 years old, single and do not own a car or house. I have always claimed zero on my personal ... A: I assume you mean claim additional exemptions on your W4 so that your employer withholds less ...
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| gift tax | 9/25/2006 |
Q: I wish to pay off the mortgage on my parent's home. Would this be considered a gift to them? Would ... A: If you pay off their mortgage it is a gift. You would be required to file a gift tax return. Most ...
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| Capital Gain tax | 9/24/2006 |
Q: I have lived in a Miami loft for 1 year.. This was a preconstruction project that I got involved ... A: Technically to exclude gain you must have owned and lived in the home as your main home for 2 years ...
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| Resendial exemption 1.5 yrs | 9/24/2006 |
Q: We moved to our current location and just added one to our family (a girl on Aug 31!). We live in ... A: To qualify for a reduced exclusion you need to have moved for reasons of employment, health or ...
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| Social Security Taxation | 9/23/2006 |
Q: When retired couple receives SS. Do we pay taxes on 50% of SS over certain amount of AGI, or 50% on ... A: There's a worksheet to determine how much of your SS is taxable. It isn't as simple as 50% of a ...
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| Capital Gains tax | 9/23/2006 |
Q: ..just still a little confused...How does that work if we file jointly? Does the limit for exclusion ... A: You can still file jointly. You don't report your share of the gain because you can exclude it. ...
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| Capital Gains tax | 9/22/2006 |
Q: We are thinking about selling our current residence in the near future, for moving in or out state. ... A: You will be able to exclude $250,000 of gain because you haven't excluded gain within 2 years of the ...
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| Selling stock given to me by a grandparent | 9/20/2006 |
Q: My grandfather gave me $15,000 worth of stock about 5 years ago. He passed away about 1 year ago. ... A: When you receive stock as a gift your basis is not what it was worth when it was given to you. Your ...
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| company stock in a qualified pension | 9/20/2006 |
Q: I am 47 years old and have a 401k with cash and also a seperate pension with company stock. I plan ... A: 1. Yes you would pay ordinary income tax on the original cost and, if under age 55, a 10% penalty. ...
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| Home sale deduction | 9/18/2006 |
Q: If one lives in their home as primary residence and sells the home, a $250k exemption can be taken ... A: Yes you can do that as long as you meet the 2 years ownership and use requirements during the 5 ...
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| Filing status | 9/18/2006 |
Q: I live with my friend i have one child and my friend has two children. Can we both file head of ... A: Assuming you are both unmarried, whichever one of you pays more than half the upkeep of the ...
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| Gift Tax for Real Estate | 9/15/2006 |
Q: My wife and I would like to transfer ownership of our second home (condo) to her sister (who has ... A: You and your wife could each give her $12,000 per year without any gift tax concerns. Perhaps you ...
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| capital gains tax | 9/15/2006 |
Q: My parents are in the process of selling a 2 family home in MA. they purchased the home nearly 30 ... A: They can exclude $250,000 of gain ($500,000 if married filing jointly) on the unit in which they ...
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| Personal tax deduction | 9/14/2006 |
Q: I am a state lawenforcement officer in Arizona. If I buy the some gun I use at work for personal use ... A: If you are required to carry a weapon when off duty and must provide it yourself, it would be a non ...
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| Is Fee Tax Deductible? | 9/13/2006 |
Q: I am W-2ed in the mortgage business and paid a commission. I pay a $1500.00 fee per month to my ... A: Are you sure that the increased commissions you receive are not considered a repayment of the $1500 ...
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| Claiming real estate loss even with AGI's over $150,000 | 9/13/2006 |
Q: I am aware of the 25K limit on deductions for actively participating in passive rental real estate ... A: A single member LLC reports their income and expenses on a Schedule C as a sole proprietor. However ...
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| Taxes on retirement disability | 9/12/2006 |
Q: If i become disabled at 51, when i get my retirement from where i work in a lumpsome, what kind of ... A: You would pay ordinary income tax on the lump sum distribution but if you're disabled you won't be ...
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| Tax write off questions | 9/11/2006 |
Q: i would like to know if certain things can be written off of personal taxes. I have to buy certain ... A: Unreimbursed employee business expenses are deductible as an itemized deduction on Schedule A to the ...
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| rv as second home | 9/9/2006 |
Q: If i take out a loan for a "partner" can i write off the loan even if the partner is making the ... A: You have to actually make the payments to be able to deduct the interest on a first or second home. ...
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| sale of personal residence | 9/9/2006 |
Q: I'm selling my home and am not yet decided as to whether I want to build or buy another one (as well ... A: It no longer matters whether or not you invest in another home. That law was changed several years ...
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| caiming dependants | 9/9/2006 |
Q: Does a depandant have to be a relative? A: No, a dependent need not be a relative if the person is a member of your household for the entire ...
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| stock sales / tax consequences | 9/8/2006 |
Q: My husband, now deceased, had worked for a company for 38 years. During his employment he was ... A: From what you wrote, you inherited the stock so your basis would be the fair market value on the ...
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| Taxes on Life Insurance | 9/8/2006 |
Q: My boyfriend set up a $20,000 life insurance policy and made me the primary beneficiary. He died ... A: Life insurance death benefits are not taxable. However, if you give half to his father you, not he, ...
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| taxes on injury settlements | 9/8/2006 |
Q: I received a settlement for $37,000. for a broken ankle received in an automobile accident. Do I ... A: Settlements and awards for actual damages paid on account of physical injury or sickness, including ...
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| Estimated taxes | 9/8/2006 |
Q: I work a full-time job for a large corporation, but I've recently taken on a temporary freelance ... A: If your withholding from your full-time job will cover the additional taxes due you need not make ...
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| Schedule C - Gross and Net Income | 9/7/2006 |
Q: I was checking our 2004 Return my husband did make about $14,000.00 more in 2004 and Contract Labor ... A: I would put fuel in other expenses rather than bury it in repairs and maintenance. Sorry but I ...
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| Schedule C - Gross and Net Income | 9/7/2006 |
Q: He hired laborers to load and unload his truck on local and out of town moves. We had a total gross ... A: As long as your husband has evidence to support his expenses and he reports all his income, there ...
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| Transfer UTMA to 529 Plan | 9/7/2006 |
Q: Carole, I recently redeemed all shares in a UTMA/Custodial Acct. (Mutual Funds) I had opened for my ... A: UTMA accounts are set up under the child's social security number so any activity is reported by the ...
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| Filing Taxes | 9/6/2006 |
Q: I make 27,000 a year and I'm getting maried and having a baby (26weeks pregnant) prior to the end of ... A: 1. Since you aren't married you cannot choose married on your W4. If you're going to be supporting ...
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| Capital Gains / gift from parents | 9/6/2006 |
Q: I asked a question about captial gains yesterday, and I forgot to mention another fact. I bought my ... A: Gifts are not taxable to the recipient so there is nothing for you to claim. There isn't any way to ...
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| Capital Gains | 9/5/2006 |
Q: Last year I purchased my parent's home at a discounted price. I am now selling the home (for a ... A: Reinvesting in another home no longer allows you to defer gain. In order to exclude gain you must ...
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| Capital Gains on sale of house | 9/4/2006 |
Q: A friend told me you can only exclude gain once in your lifetime. This isn't correct is it? Also, ... A: For a time you could exclude gain on only one home in your lifetime. But about 1997, they changed ...
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| Capital Gains on sale of house | 9/4/2006 |
Q: We live in Philadelphia and we are planning to sell our house next spring and then move to Toronto, ... A: If you owned and lived in your home as your main home for 2 years during the 5 years preceeding the ...
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| Working after retirement -consulting | 9/1/2006 |
Q: My father is retiring in January of 2007, but will be receiving some money monthly in exchange for ... A: When he says he will be receiving money from a fund, does he mean a retirement fund? If so he ...
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| taxes from stocks | 8/31/2006 |
Q: I had a question about how taxes are taken from short term (less than 1 year) and long term (more ... A: Gains from sale of stocks held one year or less are taxed as ordinary income. Gains from sale of ...
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| Capital Gain Taxes previous primary res | 8/30/2006 |
Q: Carole- I own a home in Miami, FL. It was my primary residence for many years. I went to ... A: You may be able to exclude some of the gain but you can't avoid capital gains taxes by putting the ...
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| Back Tax writeoffs | 8/30/2006 |
Q: I inheirited my mother house which was a wreck and took alot of money to renovate. is there anyway ... A: No, there is no way to claim a deduction for the renovation expenses unless you are using it as a ...
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| Medical expenses | 8/30/2006 |
Q: In calculating medical expenses (for itemizing), can one include 1: Premiums paid through payroll ... A: Yes to both 1 and 2. IRS Pub 502 gives you chapter and verse on medical expense deductions. I ...
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| Income Averaging | 8/30/2006 |
Q: We are considering pulling money from our 401K account under a 59 1/2 rule to pay off all mortgage ... A: Ten year income averaging is available only to those born before January 2, 1936. I assume that ...
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| TAXES, STOCK INVESTMENT | 8/29/2006 |
Q: I am interest to purchase some stocks in the market of an specific industry for long term ... A: There are no tax consequences when you purchase stock. When you sell the stock you are taxed on the ...
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| Taxation on House Sales | 8/29/2006 |
Q: My boyfriend and I each own a house. They both have about $50000.00 in equity. We're planning on ... A: Each thing you were told was once true but is no longer the law. Now you can exclude $250,000 gain ...
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| Purchasing a home ihnherited by aunts & uncle | 8/28/2006 |
Q: My great aunt and uncle just passed, leaving their estate in a living trust to their 2 sons and 1 ... A: What sort of tax benefits do you have in mind? There are no tax benefits when you purchase a home ...
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| tax deduction | 8/28/2006 |
Q: We are considering the installation of central heating and air. The esimates are coming in around ... A: I think he should stick to HVAC and not try to give tax advice. You can't deduct the cost of the ...
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| 2nd Home | 8/27/2006 |
Q: If I buy a second home is that intrest deductable? We are in the 33% tax bracket. If I rent the home ... A: Yes you can deduct mortgage interest on 2 homes (but not 3), if your acquisition debt is not more ...
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| Capitol Gains Tax on Rental Property | 8/25/2006 |
Q: What would the Capitol Gains Tax be if our rental property (less than 2 years) tenants were to ... A: The maximum long term capital gain rate is 15%. However, since this is rental property you would ...
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| per diem | 8/24/2006 |
Q: I work for a company that our techs travel alot, the company pays us $40.00 for meals if we have an ... A: I'm a little confused. You said "They add this in to our regular taxeble income so we don't taxes ...
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| stocks | 8/24/2006 |
Q: how do stocks affect your taxes? A: Gain on the sale of stocks is taxable. Losses on the sale of stocks are deductible within specified ...
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| Bodily injury award-car accident | 8/23/2006 |
Q: Does an award for an accident need to be reported to IRS? I am on Social Security and do not what to ... A: Awards for medical bills, pain and suffering or property loss are not reportable or taxable. If any ...
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| Capital Gains on Sale of Rental property | 8/22/2006 |
Q: I purchased a condo in 1983 for 42K and am selling it for 150K this year. What would my capital ... A: If you owned and lived in the condo as your main home for 2 years during the 5 years preceeding the ...
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| prepaprer to clint questions | 8/21/2006 |
Q: Is there a list of questions a preparer can go by when interviewing a client, that will give the ... A: There is no one set of questions for all clients. Basically you want to know their marital status, ...
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| how will marriage affect our taxes? | 8/20/2006 |
Q: I am wondering if me and my partner would save more money on taxes by being married. We have 2 ... A: If you are married neither one of you is the other's dependent even if one doesn't work. But you ...
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| Taxation on sale of land | 8/20/2006 |
Q: My wife and I have lived in our home on 3 1/2 acres for 21 years. We are zoned "CR-1" so we can ... A: First of all you need to determine how much you paid for the land not including the house. I know ...
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| Loss from sale of stock | 8/19/2006 |
Q: Just a simple question, I am no high roller but I picked up some employee purchase stock while ... A: Losses on stocks and mutual funds are reported on Schedule D, not Schedule A. So you don't need to ...
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| capital gains tax | 8/18/2006 |
Q: and thank you for the response. The title was more of a transfer, the grandma is still alive. Does ... A: Yes it changes your basis. The basis of gifted property is the donor's basis. Usually that would ...
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| Distribution of late father's 401k plan, | 8/17/2006 |
Q: My father recently died at 69 years of age. His company's 401k plan was with Vanguard. The ... A: First of all, there is no 10% penalty because of his death. Second, if there are taxes to be paid ...
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| capital gains tax | 8/17/2006 |
Q: my wife and I inherited 40acs in SE part of AZ. We are planning on selling all or part to buy a ... A: Your basis is the fair market value on the date of death unless the executor of the estate chose the ...
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| Qualified medical expense | 8/17/2006 |
Q: Carole, I will be installing a home standby generator at my home for the following two reasons: 1. ... A: I agree with you on number 1 meeting the requirements for a medical deduction. Having something in ...
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| Sale of In-laws house | 8/16/2006 |
Q: My inlaws came to live with us in Feb. 04, with my father-in-law having cancer and passing in Apr. ... A: It's too bad they put the home in your name. Has that actually been recorded showing you and your ...
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