Tax Law (Questions About Taxes) - Corporate Law - Business

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About Carole Dunton
(Top Expert on this page)

Expertise
Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions. General knowledge of schedule C for small sole proprietorships. No experience in corporate, estate, partnership or large business returns.

Experience
9 years as tax preparer for major national firm.

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Questions Answered By Expert Carole Dunton
In Category Tax Law (Questions About Taxes)

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 ...
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, ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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% ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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%, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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. ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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? ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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% ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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%. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
Mutual Fund and 1099	2/21/2008
Q: I had four mutual funds. They returned about $200 per month that was reinvested in more shares for ... A: You pay tax on the dividends but since they were reinvested in mutual fund shares that you sold, the ...
1099-B question	2/21/2008
Q: I think all together I spent about 11k$ 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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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%, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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). ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
"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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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. ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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% ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 - ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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) ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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' ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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), ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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%. ...
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), ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...