You are here:
| Subject | Date Asked |
| Filing Status | 2/9/2012 |
| Q: Last year my wife and I filed Married Separately. This year, I will owe taxes and she will get a ... A: I mean it its generally beneficial to both parties, you and your wife. There are exceptions. For ... | |
| Gift to child | 2/1/2012 |
| Q: During 2011 my wife and I gave our 42 year old son a $30,000 gift to use as down payment on a house. ... A: You can give anyone $13,000 per year with no gift tax consequences. If your son is married you and ... | |
| injured spouse/unemployed defaulter | 1/31/2012 |
| Q: I have had no income in the past year and have a defaulted student loan. In the past year, when I ... A: Since you have no income or withholding, the Injured Spouse would give you limited relief. He could ... | |
| newspaper delivery | 1/27/2012 |
| Q: I was helping a family member deliver newspapers under no contract and was paid cash most of the ... A: You have to file that money as self employment income on Schedule C or C-EZ. You can deduct your ... | |
| 1099-c and divorce | 1/25/2012 |
| Q: I divorced in 2009 and transferred the title of an investment property from joint to my wife's name. ... A: Since your name is on the property, you are responsible along with your wife. If that was your main ... | |
| IRA withdrawal | 1/23/2012 |
| Q: My RMD from my traditional IRA ( Bank CD ) is approximate. $8000. for this yr., 2011. I want to ... A: Yes I missed your age before so you are not subject to a penalty on the distribution. The bank may ... | |
| Feess for tax prep | 1/22/2012 |
| Q: For the past several years, my wife and I have had our returns prepared by a local tax service. WE ... A: I think you are being overcharged. I have done a number of reaturns with self employment income and ... | |
| IRA withdrawal | 1/22/2012 |
| Q: My RMD from my traditional IRA ( Bank CD ) is approximate. $8000. for this yr., 2011. I want to ... A: You didn't mention your age but, assuming your are more than 59 1/2, you reasoning is sound and ... | |
| 1099-R Ohio public emp ret sys | 1/21/2012 |
| Q: My mother passed in 2010. I am the beneficiary on her Ohio Public Employee Ret Sys. I received the ... A: You include that income and withholding along with your other income and withholding. Whether you ... | |
| legal guradian and taxable dependent | 1/17/2012 |
| Q: I have been legal guardian of child who receives some SSDI through a parent. I have been supporting ... A: You can file an amended return for any year where she lived with you for 12 months. When you became ... | |
| Capital Gains on Mutual Fund Sale | 1/10/2012 |
| Q: My husband thought he had asked this question but never got a receipt. Since it probably did not go ... A: Since the $11,000 was in your sister-in-law's name, she would not have received his share as his ... | |
| w-2 | 1/9/2012 |
| Q: I was wondering, i made under $500 for a comapany i worked part-time for this year. I also work a ... A: They need to send you a W2, unless your were paid as an independent contractor - in which case they ... | |
| return | 1/4/2012 |
| Q: If I have a professional tax service do my federal income tax return and they make a mistake, ... A: If you used someone like H&R Block and they made an error they would pay the penalties and interest ... | |
| tax forms | 12/26/2011 |
| Q: I am 67 single, retired, on Social Security and disabled. I went on total disability in 2000. As you ... A: If your income other than social security totals more than your standard deduction plus your ... | |
| maxmizing medical deductions by prepaying a medical bill | 12/23/2011 |
| Q: For the last month, I have been trying to do something that appears to be unheard of in the medical ... A: Since you don't have a bill I would not deduct it in 2011 in case of an audit. But it isn't likely ... | |
| 401k pre tax distribution losses deduction claim If I want to withdraw 100% completely | 12/22/2011 |
| Q: I want to 100% COMPLETELY withdraw my 401k before the end of the year. I want to know whether I ... A: You can't deduct losses on an IRA or any other retirement plan. It's contained within the ... | |
| Student expenses | 12/18/2011 |
| Q: I am a US citizen and my sister is in US with F-1 visa (nonsitizen). I pay all her tutions in ... A: If you can claim her as a dependent you could use one of the education credits or tuition and fees ... | |
| Proceeds from Broker & Barter Exchange Transactions | 12/12/2011 |
| Q: Carole, I received a notice from the IRS stating that I did not report some income on my 2009 ... A: It shouldn't have been reported to the IRS. Ask Merrill Lynch what happened since gains or losses ... | |
| Distribution from annuity, SS | 12/7/2011 |
| Q: I retired in July 2007. I have $222k in an annuity. I am 55 and started receiving SS in Jan. 2008. ... A: 72t is taking substantially equal payments over a period of time for at least 5 years. That would ... | |
| NOL carryback | 12/4/2011 |
| Q: I started a freelance business in 2010 and for 2011 will incur about a $5000 NOL. I want to do a ... A: Yes you can carry it back whether or not the business existed. Go to the IRS website www.irs.gov. ... | |
| First Time Homebuyer Tax Credit | 10/24/2011 |
| Q: My wife and I purchased a home in May 2008 using the $7500 First time homebuyer tax credit. ... A: Since you are selling at a loss, the following would apply to you. I copied this from the IRS ... | |
| taxes on sale of rental proptery | 10/16/2011 |
| Q: I PURCHASED A RENTAL PROPERTY IN 1986 FOR 65.000. OVER THE YEARS I SPENT APPROX. 100,000 IN ... A: If you sell it toyour son for less than fair market value it is considered a gift. His basis would ... | |
| Retirement Fund Transfer | 10/12/2011 |
| Q: A few years ago, I transferred from one employer to another, and though both of them do have ... A: You should file an amended return for that year showing that you put the money in your employer's ... | |
| deed transfer without tax penalty | 10/2/2011 |
| Q: My father-in-law signed his house over to both my husband and his sister last year. I am not sure ... A: You can give $13,000 per year to any or many individuals. Gifts in excess of that amount are ... | |
| House Flip | 9/30/2011 |
| Q: I have a house to flip and I've been working on it for 13 months. My possible deductions are: ... A: Capital improvements are added to the basis of the property. Routine maintenance would be an ... | |
| SSDI, back pay, sell house, | 9/22/2011 |
| Q: Ms Dunton, Thank you for assisting others In January 2011 I was determined disabled by SSA. It ... A: No you do not need to amend your returns. If you had income in 2011 in addition to the amount ... | |
| SS and Real estate | 9/19/2011 |
| Q: My husband will be retiring soon and we are considering a full duplex purchase in another state. We ... A: You should report the payments as rental income and deduct your expenses (mortgage interest, taxes, ... | |
| tax | 9/8/2011 |
| Q: I just sent you a question. I re-wrote number 2 to make it clearer. 1. I live in Maryland and drive ... A: The expenses you want to deduct are Unreimbursed Employee Business Expenses which are deductible to ... | |
| taxed on pension | 9/5/2011 |
| Q: I recently turned 60 and received my first pension payment, where approximately 8.6% was taken out ... A: Normally pension payuments are not taxed for social security. It's probably Federal withholding for ... | |
| KY & PA Withholdings | 9/5/2011 |
| Q: My husband & I live in PA. He has worked for a company out of KY for the past several years. His ... A: I believe that the company is wrong about KY requirements because I have had clients who had KY ... | |
| Loss on sale of land | 8/26/2011 |
| Q: We purchased land in TN in 2006 for $25K and are selling it in 2011 for $13.5K. Is this recorded as ... A: Yes you report the loss on Schedule D. You'll be able to take $3,000 to offset other income. If ... | |
| Senior income;sale of home | 8/21/2011 |
| Q: My Mother is 95 years old. She has been living in my home since March of 2011. She hasn't filed ... A: Yes you can claim her. It's unfortunate that she put the home in your names. You should quit claim ... | |
| Toll & Mileage deductions | 7/19/2011 |
| Q: 4-5 days per week I commute from one job directly to another and pass through tolls to reach my ... A: You can deduct the expense of going from one job to another as an unreimbursed employee business ... | |
| taxes on ssd | 7/3/2011 |
| Q: I applied for Social Security Disability 5 years ago and I was just granted SSD and they went back 5 ... A: Yes you have to pay income tax on SSD. But there is a way to possibly reduce the amount of tax when ... | |
| I need help! | 7/1/2011 |
| Q: I do live in Monterrey Mexico but I am an american citizen. I am working in Mexico but for a mexican ... A: As an American citizen you are required to report your world-wide income wherever you live. You may ... | |
| Personal Tax Return | 6/22/2011 |
| Q: Over 2010, I worked for a month for a local realtor, and received a 1099-MISC for 2,240.00, as ... A: You should file a Schedule C to report your income and expenses. The net results is subject to both ... | |
| Residency/Filing Married | 6/17/2011 |
| Q: My husband and I are residence in Oregon. He is a truck driver and is gone a lot. I would like to ... A: It doesn't matter whether or not you get a job. You can still file a joint return. If you live in ... | |
| 1099 help? | 6/17/2011 |
| Q: Carole, I work in the world of political elections here in Ohio, which is obviously a very ... A: Yes you are self employed and will file a Schedule C. Also you'll pay self employment tax(social ... | |
| RMD's | 6/16/2011 |
| Q: How can I calculate the amount of the RMD I am required to take out of my IRA CD's? Thanks Jon A: First you need to know the fair market value of each IRA as of December 31 of the preceding year. ... | |
| selling a lot to daughter below appraised value | 6/7/2011 |
| Q: What are the tax considerations for selling a real estate lot to my daughter for $50,000 when the ... A: You would be giving your daughter and her husband a gift. You can give each of them $13,000 this ... | |
| part time deductions | 6/3/2011 |
| Q: I am a retired Air Traffic Controller living in Florida. If I work in Oklahoma City for a ... A: Yes you can deduct all those expenses. If you receive a W2 you will deduct them as unreimbursed ... | |
| Tax exemption when selling home | 5/28/2011 |
| Q: What is the current status of the 250k/500k tax exemption when selling your home? I've heard too ... A: The current law is that if you owned and lived in your main home for 2 years during the 5 years ... | |
| LLC | 5/20/2011 |
| Q: I am an independent contract radiologist and I have a LLC. My income will only be via 1099. Do I or ... A: As an individual independent contractor you need not pay yourself a salary. You will pay your ... | |
| Husband's 401k | 5/19/2011 |
| Q: My husband passed away 3 weeks ago. He had a 401k. I was told that I could leave the 401k with his ... A: You will not be penalized wherever you put it. A new custodian won't know whether or not it should ... | |
| 1099-R Roth IRA Code 4 in Box 7 | 5/10/2011 |
| Q: My wife inherited several Roth IRA's from her father in 2005. He had this IRAs for several years, ... A: No it should not be taxable. The code 4 on the 1099R indicates that it was because of death. It ... | |
| SSI and Subchapter S | 5/7/2011 |
| Q: Can I take (receive) my Social Security Income (I am 63) and run a sub chapter S Corp as I have been ... A: If you are receiving social security benefits(either disability or retirement benefits) you won't ... | |
| Deductible Expenses When Working Away From Home | 5/4/2011 |
| Q: I am about to start a job where I will be working out of state on a contract basis. I will be paid ... A: Your vehicle expenses and anything else you pay to allow you to do your job. For instances internet ... | |
| Deductible Expenses When Working Away From Home | 5/3/2011 |
| Q: I am about to start a job where I will be working out of state on a contract basis. I will be paid ... A: Yes, all those expenses are deductible. If you will receive a W2, they are unreimbursed employee ... | |
| Summer Job Consulting? | 4/25/2011 |
| Q: I have a summer internship (3-4 mths full time) at a firm in Tampa, the owner wants to pay me as a ... A: Title doesn't matter. If you receive a 1099MISC you will have to file a Schedule C or C-EZ. You ... | |
| efile | 4/24/2011 |
| Q: My tax preparer sent in my efile, and then told me to wait until I hear from the IRS. I owe the ... A: Your preparer should have told you to send the money by 4/18. Since he didn't you will be faced ... | |
| Divorce and One time exemption on capitol gains | 4/22/2011 |
| Q: I married X in 2000 he had been married to Y until 1998. X divorced Y and continued to pay for house ... A: In order to exclude gain on the sale of your main home, you had to own and live in it 2 years during ... | |
| Elderly Tax exemptions | 4/21/2011 |
| Q: Carole, I have heard that elderly over 75 do not have to pay income taxes on UNEARNED income such as ... A: No that isn't true. Whether or not you need to file is based on your income and deductions. If ... | |
| Tax Credits for Companies | 4/20/2011 |
| Q: Our organization provides leadership training for women. Companies pay to send their top female ... A: If it is held at an acredited institution of higher learning, it would be eligible for a tax credit. ... | |
| do i need to file tax return | 4/18/2011 |
| Q: I am 67, retired and recieve less that 16000 in SS benefits. I withdrew 3800 from a bond fund this ... A: If you made a gain on the sale of the bonds, you should file a Schedule D to report the gain. Your ... | |
| Pension Dispersement | 4/14/2011 |
| Q: I had a pension dispersed and had taxes taken out at the time of disbursement. Do I have to add that ... A: Yes it should be included with your other income and the tax on your total income determined. The ... | |
| Capital Loss | 4/5/2011 |
| Q: I just found out recently that my husband has an joined investiment account with his mother that had ... A: His mother would have to file an amended return in order for you two to file an amended return ... | |
| Unreimbursed Mileage | 4/3/2011 |
| Q: My employer reimburses me for mileage, but at only .45 cents per mile. I understand the federal rate ... A: No you won't be able to take the deduction. 2% of $70,000 is $1400. The deduction is taken as an ... | |
| Tax Sheltered Retirement Funds | 4/1/2011 |
| Q: I am going to receive a mineral lease bonus payment this year that will increase my taxable income ... A: I know of no way to put it into a pre-tax retirement fund. You could put it into a Traditional IRA ... | |
| Inherited Property | 3/30/2011 |
| Q: I inherited a home back in the 90's from my grandmother (FMV approximately $50,000). I have rented ... A: First of all I hope you took a deduction for depreciation during the rental period. If you didn't ... | |
| Unemployment & Private Contractor Taxes | 3/29/2011 |
| Q: In 2010 I was an exec on a company and I became unemployed mid year and received $9900 of ... A: You don't pay social security tax on unemployment. The amount of income tax will depend upon your ... | |
| per-diem | 3/28/2011 |
| Q: my husband and I are both truck drivers. I have only worked for one company and do not get per-diem. ... A: Truck drivers subject to DOT regulations can take a daily per diem for meals. It must be reduced ... | |
| withdrew "free" money and also took out loans of a Master-X Annuity to purchase a home for my daughter | 3/26/2011 |
| Q: My husband and I have three separate annuities and IRAs that we pulled money out of to purchase a ... A: Code 1 means that it may be subject to a 10% penalty for early distribution. The code 7's may be ... | |
| Social security disability income and form 1040 | 3/22/2011 |
| Q: I've been using Turbo Tax to do my taxes for 12 years, however now I have social security disability ... A: Sorry but I can't do your taxes. I have a contract with my employer and I can only do tax returns ... | |
| Traditional IRA to Roth IRA | 3/21/2011 |
| Q: I hope you can clear this up for me! On 10/05/2010 I opened a new Traditional non-deductible IRA ... A: Since your Traditional IRA's were non-deductible you have already paid the tax on them. If you have ... | |
| Sale of parent's house | 3/18/2011 |
| Q: My mother moved from her Fla house to an assisted living facility here in Ga 18 months ago. I ... A: To claim an exclusion your mother must have owned and lived in the home as her main home for 2 years ... | |
| Tax deductions for work | 3/17/2011 |
| Q: My husband works for a construction company that builds bridges. His job requires him to be out of ... A: Yes his expenses are deductible. If your husband receives a W2, they are deductible as an itemized ... | |
| Lump sum from Pension Plan and taxes | 3/12/2011 |
| Q: I took out a lump sum distribution from my company's Pension Plan after the company shut down its ... A: There should be no tax. Try something other than Turbo Tax. Go to a professional tax preparer, ... | |
| car allowance question | 3/10/2011 |
| Q: I work for a pharma company and drove over 28000 last year. I recieve a $650/month car allowance ... A: You can claim 55 cednts per mile for business mileage but you have to deduct the money they pay you ... | |
| Form 8606 | 3/8/2011 |
| Q: This is my first time filling out form 8606. I don't need to fill out part one. What do I put in ... A: You use part II only if you had a conversion from Traditional SEP, SIMPLE or SOMPLE IRAs to Roth ... | |
| ADOPTION TAX | 2/27/2011 |
| Q: I ADOPTED 2 SPECIAL NEEDS CHILDREN, 1 CHILD IN 2004, THE OTHER 2005. I HAVE NOT CLAIMED ANY TAX ... A: You can file an amended return for each year. Usually you do not get a refund if it's more than 3 ... | |
| Nondeductible IRA | 2/25/2011 |
| Q: This year, my wife, 74 years old, cashed out the remaining balance of $3,579 on a nondeductible ... A: She will receive a 1099R for the distribution. She should also file an 8606 since some of the basis ... | |
| 1040 child tax credit and agi | 2/24/2011 |
| Q: i am completing my taxes with turbo tax but i am really confused. what is my agi and on what line ... A: Your adjusted gross income is all your income less any adjustments (for example contributions to an ... | |
| 1099s filed in error by escrow company | 2/16/2011 |
| Q: In 2007 we sold our home, we were unmarried at the time and we each filed out a 593c for the escrow ... A: While most states follow Federal law regarding sale of your main home, perhaps your state does not. ... | |
| 1099G from bank | 2/12/2011 |
| Q: In 2010 a bank foreclosed on my house and sold it. The difference between what I owe the bank and ... A: You don't need to prove that it is your primary home but if you don't file a form you're likely to ... | |
| filing status | 2/7/2011 |
| Q: i had some one help me do my taxes and i think they made a mistake . they clamed me as the head of ... A: You can file HOH if you didn't live with your spouse in the last 6 months of the tax year. If you ... | |
| Newspaper delivery | 2/1/2011 |
| Q: I realize that you're probably busy with tax questions this time of year, so I appreciate you giving ... A: You will need a Schedule C and a Schedule SE. You will be subject to self employment tax (social ... | |
| Consulting and taxes | 1/20/2011 |
| Q: I have taken a consulting-ontracting position and have no idea what my tax burden should be and if I ... A: You should make quarterly estimated payments on 4/15, 6/15, 9/15 and 1/15 of the folliowing year. ... | |
| Tax Return | 1/17/2011 |
| Q: My husband is currently incarcerated and this is my first time being married. I'm not sure how to ... A: You can file a joint return. But if you have a child(ren), you could file as head of household ... | |
| sell of house | 1/15/2011 |
| Q: i just sold my house for 100000.00 after pay off i have 71000.00 how much taxes am i going to pay on ... A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ... | |
| Deductions & claims | 1/15/2011 |
| Q: I am living with my parents and for the last year have been doing business at home for a local ... A: They cannot take a home office deduction. If you pay any of the home expenses, such as rent or ... | |
| Extra Income | 1/12/2011 |
| Q: I am a recent college graduation. During the time between when I graduated (June 2010) and when I ... A: Yes you should report all your extra income. The babysitting money would be reported on Schedule C ... | |
| 1040 or 1040a | 1/11/2011 |
| Q: I am single, on disability and have proof of same. I am 68. I have started to withdraw from my IRA ... A: I would use form 1040. If you have enough to itemize your deductions, do so. Otherwise you can use ... | |
| tax return | 1/10/2011 |
| Q: what is the average tax return if i claim head of household and my 8 month old baby? A: Your refund will depend upon your income. You will get the child tax credit and possibly earned ... | |
| Seperated | 1/6/2011 |
| Q: I am on my 2nd marriage and my husband and I are seperated and I have two children from my first ... A: If you and your husband lived together in the last half of 2010, you cannot claim to be Head of ... | |
| medical deductions on federal return | 1/2/2011 |
| Q: I have a sister with Alzheimer's who lives in a different state than I live. If I make home ... A: Improvements made for medical purposes are deductible over the amount they increase the value of ... | |
| capital gains | 1/1/2011 |
| Q: I am selling my home of 22 years this year. I purchased the home I am moving to 9 years ago. How ... A: If you lived in the home you are sellling as your main home for 2 years during the 5 years preceding ... | |
| Mineral Lease taxes | 12/31/2010 |
| Q: I am currently negotiating a mineral lease for some property I have, I would like to know how to ... A: You didn't mention the amount of the income from the mineral lease so it's hard to determine how ... | |
| propety gift received | 12/28/2010 |
| Q: I received property in 2010 valued at 20k. I also have been building a residence on that property ... A: Recipients of gifts are not taxed. The donor should have filed a gift tax return and paid any tax ... | |
| Personal residence exclusion after marriage? | 12/11/2010 |
| Q: I bought a condo in 2003 and lived in it until August 1 this year, when I moved in with my ... A: The capital gain exclusion is calculated using days. The day you last lived there is the end of ... | |
| land frommy dad paasing away that i got | 11/25/2010 |
| Q: i got about 28 ac of land when my dad passed away i sold it a few weeks ago this is the first time i ... A: If you sold the land at a gain you pay long term capital gains tax on the gain. Your basis in the ... | |
| 401k withdrawl for home purchase | 11/19/2010 |
| Q: I'm currently on disability and receiving SDI benefits as income. I am purchasing a home for the ... A: There is no provisionn to avoid the penalty when you take money from a 401(k) but if you roll the ... | |
| Parents Townhouse Sale | 11/17/2010 |
| Q: My parents signed their townhouse over to me 6 years ago with a life estate for them. About a year ... A: It no longer makes any difference whether or not you purchase a new residence. The law now allows ... | |
| estimated tax | 11/5/2010 |
| Q: My friend works for the Federal court and has a court case coming up next yr. They have hired him to ... A: Since he will have to pay the money back if the case if thrown out, he can wait until he files his ... | |
| Tax Return | 10/28/2010 |
| Q: My husband is currently incarcerated and this is my first time being married. I'm not sure how to ... A: You can file a joint return even though he is incarcerated. Or you can file a separate return ... | |
| 401K Beneficiary | 10/28/2010 |
| Q: My sister and I are 50/50 beneficiaries of my father's 401K, but he also has two other children ... A: To avoid gift tax why not give $12,000 per year. If the person is married you can give them each ... | |
| Minister Retiring -Moving Expenses | 10/22/2010 |
| Q: My husband is retiring from full time ministry after 35 years. Are our moving expenses to relocate ... A: The only time you can deduct moving expenses is when you are moving to accept or look for full time ... | |
| Business Expense Reimbursement | 10/19/2010 |
| Q: My employer has been reimbursing me for travel/business expenses in my regular pay check and I have ... A: Since your employer is including the reimbursed expenses in your taxable income, you can take the ... | |
| Taxes/Insurance for college student | 10/10/2010 |
| Q: I am a 21 year-old college student. I don't live at home, but in a property owned by my parents. I ... A: If you pay more than half of your own support, you can claim yourself. Be sure to include the ... | |
| Working on another state | 10/8/2010 |
| Q: I live in NJ and was offered a full time job in Atlanta. For a variety of reasons, my wife and ... A: You cannot claim the NJ home as your primary home once you have established GA residency. But if ... | |
| Can I claim his daughters? | 10/3/2010 |
| Q: Ok here's the situation. My boyfriend of 2 yrs hasn't worked this year. He has 2 daughters from his ... A: Unless you live in an area where cohabitation is against the law (such as it is in Tennessee) you ... | |
| Tax Credits | 10/1/2010 |
| Q: I understand the tax credit is on your primary residence. Here's my question. I am a widow and was ... A: If the home you bought is your principal residence, you can claim the credit. Don't worry about ... | |
| Tax Credits | 9/30/2010 |
| Q: I understand the tax credit is on your primary residence. Here's my question. I am a widow and was ... A: If you are inquiring about the homebuyer's tax credit, it is too late to claim that. There is an ... | |
| 1099 vs W2 | 9/28/2010 |
| Q: The company I'm working for hired me with the option to be 1099 or a w2. I chose 1099 so that I ... A: When you report 1099MISC income you have to pay self employment tax. Since the employer is paying ... | |
| State of Residence | 9/26/2010 |
| Q: How much time do you have to spend in one state annually to declare it as your state of residence? A: Each state has their own requirements for residency. But, in general, if you live there, have a ... | |
| 401K early withdrawal taxes and penalty | 9/24/2010 |
| Q: ...while my wife was working she participated in the company 401K and profit sharing plan. The ... A: It may reduce the income tax if you file separately. Calculate it both ways and take the best ... | |
| Delphi Stock | 9/23/2010 |
| Q: My mother received 72 shares of Delphi Co. stock on 5/28/99 as a result of a spinoff from General ... A: She could have claimed a loss in the year Delphi stock became worthless. I don't know what year it ... | |
| individual taxes on babysitting | 9/23/2010 |
| Q: I help run a babysitting business on Tues, Thurs mornings for moms that want some free time. We do ... A: She should give you a 1099MISC for your share of the income and you should file a Schedule C and ... | |
| Umreimbursed Job Expenses-Meals/Mileage | 9/15/2010 |
| Q: I am a traveling union laborer who regularly travels away from my PA home on temporary work ... A: The days you drive back and forth to work rather than stay overnight are commuting and expenses are ... | |
| Expenses as Income? | 8/28/2010 |
| Q: I was reimbursed to review grants for a state agency. I was paid a minimal amount($200). They paid ... A: Since you are not in business for yourself you should pay taxes on the hotel, food and air expenses. ... | |
| Disability income tax rules | 8/25/2010 |
| Q: If someone receives disabiility payments, it is tax free or is it reported as income to the IRS. ... A: If it is Social Security Disability part of it may be taxable depending upon the amount of your ... | |
| Mutual Fund Proceeds Taxable | 8/20/2010 |
| Q: In my late teens and early 20's (I'm in my late 30's now) I used to send in $50 - $200 to my mutual ... A: You can try to look up their historical price at Big Charts or other sites that provide that ... | |
| Roth IRA withdrawls | 8/19/2010 |
| Q: In early 2000's we opened Roth IRAs for both my husband and myself. We contributed a little each ... A: I don't know whether or not it is still within an IRA. Check with your bank. But whether or not it ... | |
| Write off | 8/16/2010 |
| Q: I will be attending law school this fall in a night school division (considered full time though). ... A: Yes, since you are going directly from work to school you can deduct the difference between a normal ... | |
| Tax on stock | 7/13/2010 |
| Q: In the mid 80's I purchased about 35 shares of stock in a company that I worked for at the time and ... A: Any gain on the sale of the shares will be taxed as a long term capital gain. Be sure to keep track ... | |
| fling independent | 7/9/2010 |
| Q: within the past 6mo i have left my mothers household. i am paying for my college education totally ... A: Since you are supporting yourself you can claim your own exemption and perhaps one of the education ... | |
| Land Contract Sale & Capital Gains Taxes | 7/8/2010 |
| Q: I am interested in purchasing a piece of farm ground as an investment. I have sufficient funds for ... A: The seller would still have to report capital gain but just a portion each year instead of the whole ... | |
| taxable short term gains | 7/6/2010 |
| Q: I became a self employed currency trader this year. After I started making money a few family ... A: You can issue a 1099 to each of the family members to show their gross proceeds. Then each of them ... | |
| Short Sale Tax Question | 6/21/2010 |
| Q: Owe 68,000 on a Michigan rental/investment property, Short sold it for only 10,000. I anticipate ... A: There is no way to avoid tax on the forgiven debt. If it were your primary residence you would need ... | |
| Mother selling residence | 6/21/2010 |
| Q: .. My mother is 84, and wants to sell her primary residence soon and downsize. My parents purchased ... A: The children would not have to pay any tax on the gift. Your mother would be required to file a ... | |
| IRA Beneficiary | 6/17/2010 |
| Q: My father passed away April 2010 at the age of 82 and I am 50% beneficiary of a $12,000 traditional ... A: The tax is determined by your total income, including the IRA distributions, and your deductions and ... | |
| capital gains tax | 6/12/2010 |
| Q: We purchased some property in 1999 and built a house on it. In 2005 we purchase 12 acres for ... A: Yes you will have to pay capital gains tax on the 12 acres if you sell them now. If you sell your ... | |
| Premature IRA Distributions | 6/7/2010 |
| Q: I was laid off in 2008 but have been unable to find a job, even though I hit the pavement everyday ... A: You can exclude from the 10% penalty the portion of your medical expenses that exceeds 7.5% of your ... | |
| Premature IRA Distributions | 6/7/2010 |
| Q: I was laid off in 2008 but have been unable to find a job, even though I hit the pavement everyday ... A: You can exclude from the penalty the portion of your medical expenses that exceed 7.5% of your ... | |
| Short sale tax implications | 6/4/2010 |
| Q: I moved to TN a little over 3 years ago & have been trying to sell my house in fla ever since. I ... A: Forgiven debt is taxed as ordinary income. The rate depends upon your total income and deductions. ... | |
| babysitting tax | 5/27/2010 |
| Q: im 17 and a full time student but i make $9000 a year babysitting how much taxes including self ... A: You will report your income and expenses on Schedule C. Your net self employment income is subject ... | |
| Home Rental Implications | 5/26/2010 |
| Q: So, I am moving to Maryland/West Virginia for my job, but I cannot afford to sell me home in ... A: You are required to report your rental income and expenses on Schedule E. One of your expenses is ... | |
| Claiming a dependent on Taxes. | 5/22/2010 |
| Q: I just recently filed my taxes. I used H%26R Block to do this. They had informed me that I can claim ... A: If cohabitation is illegal in Arizona, you cannot claim her on your Federal or state return. H&R ... | |
| Can I refile our 2008 return if I made a mistake? | 5/19/2010 |
| Q: In 2008 we made a hardship withdrawal from my husband's 401k to cover some huge medical expenses. ... A: Yes you should file an amended return and use the 5329 to reduce the penalty. The amount of your ... | |
| Sell of land | 5/19/2010 |
| Q: My mother's 2 acres was in her name and mine, becoming completely mine upon her death. After her ... A: You inherited the portion of the property that was in your mother's name. You will have a long term ... | |
| tax forms for babysitting | 5/19/2010 |
| Q: I babysat a child out of my home for almost 3 months. Now I need to know what forms I need to fill ... A: You should file a Schedule C or CEZ to report your income and expenses. The net income will be ... | |
| Tax return | 5/17/2010 |
| Q: How many prior years of tax papers should one keep. A: Generally 3 years is sufficient since that is the time the IRS normally has to audit a return. But ... | |
| Can I pay taxes as a Sole Proprietor & Get them back? | 5/15/2010 |
| Q: I just got my EIN number from the IRS (starting a small internet business)and I was wondering if ... A: You can request Schedule C and Schedule SE from the IRS or you can download them at the IRS website ... | |
| Can I pay taxes as a Sole Proprietor & Get them back? | 5/15/2010 |
| Q: I just got my EIN number from the IRS (starting a small internet business)and I was wondering if ... A: You can make estimated payments of taxes and if you have overpaid you would get a refund. I assume ... | |
| IRA inheritance | 5/7/2010 |
| Q: I recently found an IRA that belonged to My mother who recently passed away. I am the only ... A: You can't add beneficiaries to her IRA. If you want to share the IRA you could reduce their amounts ... | |
| Taxes on SSD payments | 5/6/2010 |
| Q: My wife's disability back to 2006 was determined last June. She just received a large lump sum ... A: There is a way to calculate the benefits received for prior years as though they had been received ... | |
| early dispersement | 5/4/2010 |
| Q: I took an early dispersment from an investment. I re-invested it within 3 days of receiving ... A: Many year ago there was a reinvestment time allowed on the sale of your main home. I don't remember ... | |
| Tax Rules on House Sale | 4/28/2010 |
| Q: We are embarking on a spec home build and we would like to get information on how the taxes work ... A: There would be no tax advantage to forming an LLC. When you sell the spec house the gain will be ... | |
| Withholding taxes as a consultant/ independent contractor | 4/26/2010 |
| Q: I recently took a consultant position in NJ. based on what i've read on the IRS website, I guess ... A: Yes you should make quarterly payments of self employment tax and income tax to avoid penalties. ... | |
| another question re childcare | 4/20/2010 |
| Q: What she doesn't want is for her to have to pay back. My father in law only gets ss check now and ... A: She would have to report her income as self employment and pay social security and medicare at a ... | |
| childcare | 4/19/2010 |
| Q: My husband has a small cabinet account. We were wanting to pay my mother in law as an employee to ... A: You can't use the company account for a personal expense. You could get an EIN and withhold taxes, ... | |
| self employment | 4/13/2010 |
| Q: I do have a couple of questions I hope you can help me with. I became self employed, for the first ... A: You report your self employment income and expenses on Schedule C. Your net self employment income ... | |
| Schedule L income | 3/28/2010 |
| Q: Do I include pension and SS when calculating income on schedule L? It doesn't mention those lines ... A: You only use Schedule L if you are increasing your standard deduction with real estate taxes or ... | |
| Dependent | 3/27/2010 |
| Q: Dunton, In my divorce agreement it saya that my ex-wife can claim our daughter as a dependent--for ... A: You should enter part of the year and calculate how many months that comes to. If you said she ... | |
| IRA contribution after losing a job | 3/22/2010 |
| Q: Carole, I lost my job in June. I rolled over my 401k into an IRA in July. I had invested $6,100 ... A: You won't be able to make a deductible contribution to an IRA because if you are covered by a ... | |
| Excess Traditional IRA Contributions | 3/14/2010 |
| Q: was doing my taxes using tax software and received the follwing message: You made contributions in ... A: It sounds like you made excess contributions to an employer's retirement plan - perhaps a 401(k). ... | |
| Mistake on Schedule C | 3/8/2010 |
| Q: I just noticed on my printout that on a Schedule C of 2008, that i didnt include the income, the ... A: Since you show a net profit there must have been income. But if you got a 1099MISC the IRS will ... | |
| sale of 2 family home | 3/8/2010 |
| Q: I have a 2 family home but have not rented the upstairs apartment for more than 2 years and use the ... A: Tax-wise if you ever claimed depreciation on the apartment, you have to recapture that depreciation ... | |
| 1099-misc | 2/23/2010 |
| Q: My 20 year old son received a 1099-misc for $1,739.50. This is the only income he had except ... A: Yes he needs to file a tax return. He won't owe any income tax but that 1099MISC income is self ... | |
| Bad Debt | 2/16/2010 |
| Q: I divorced my spouse and we had a joint student loan debt for a kid, the divorce decree states that ... A: Actually alimony is deductible so if you are paying that take the deduction. From what you wrote ... | |
| 1099-misc | 2/6/2010 |
| Q: my daughter (my dependent for filing purpose) received a 1099-misc with an amount filled in in box 7 ... A: She reports the 1099MISC income on Schedule C (or CEZ) and it is subject to income tax and self ... | |
| Tax on gift | 2/1/2010 |
| Q: My family is going to help me out to pay for a house that I plan to buy here in the US. My question ... A: Recipients of gifts pay no tax. If the amount is over $13,000 this year, the donor is required to ... | |
| 1099-B | 1/31/2010 |
| Q: My husband and I received a 1099-B : Proceeds from Broker %26 Barter Exchange Transactions. Do I ... A: You enter the stock sale on Schedule D.. If you held the stock more than one year, it is a long ... | |
| farm sold, | 1/27/2010 |
| Q: I sold some property to a party of three, two parties paid in cash and the third party has a ... A: The portion of the sale that will be paid over time is an installment sale. With an installment ... | |
| dependant claim | 1/26/2010 |
| Q: ncluded below is a question I asked of another expert. Her reply was clear and quick, but I have ... A: I think she said to file paper because she believed the father had filed electronically. If he did, ... | |
| charging boyfriend rent | 1/22/2010 |
| Q: I have been charging my boyfriend rent for the last few years ($200 a month). I own the home and pay ... A: You should claim the rental as income on Schedule E where you report your rental income and ... | |
| Child care provider 1099 question | 1/20/2010 |
| Q: If we have someone watch our child in their home, are we required to file a 1099 for that person, or ... A: Unless the person is an independent contractor you are required to treat him/her as a household ... | |
| Reporting Financial Aid | 1/18/2010 |
| Q: I have a daughter in her first year of college. She lives on campus away from home and is a full ... A: No you don't include the scholarships or grants on your return. If you took out the loan you could ... | |
| Property Rental | 1/17/2010 |
| Q: I have limited knowledge in renting out property, but I've been put in a situation where I needed to ... A: In order to report your rental income on Schedule C you have to be a real estate professional in the ... | |
| IRA RMD distributions | 1/13/2010 |
| Q: If you have an IRA CD how do you get distributions (RMD or otherwise) from a timed account without ... A: There really isn't any way to avoid the interest penalty. You could split the IRA into a few CD's ... | |
| Social Secuity & Private Disability Lump Sum Back Payments. | 1/12/2010 |
| Q: Carole, Thank you for taking the time to read my question. As I am beginning to prepare my 2009 tax ... A: You're right, income averaging is no longer an option. However the social security lump sum ... | |
| tax consequences on a foreclosure | 1/12/2010 |
| Q: I had a 2nd home in Arizona that was foreclosed. I received a 1099-A form today that stated that ... A: Since it is not your main home you are required to report the forgiven debt on your Federal return ... | |
| Dependents, Divorced parents and personal income taxes | 1/10/2010 |
| Q: My daughter is 19. I was divorced in 2007 and the divorce decree states that every other year we ... A: The new IRS rule is that whether or not a divorce degree addresses the dependency deduction for the ... | |
| Tax Cut and 2008 Homebuyers credit | 1/10/2010 |
| Q: Is Obama's 2009 Tax cut going to make us owe the money that we saved on our 2009 return. In other ... A: The reduced withholding is causing many taxpayers to get a smaller refund or pay more. It doesn't ... | |
| Dependency | 1/4/2010 |
| Q: "I am 22 years old and a full-time college student. I live with my parents and do not pay rent or ... A: If you pay more than half of your own support you could claim yourself. Support includes the fair ... | |
| 1099 waiver for Short Sale transaction | 1/3/2010 |
| Q: Entered into a short sale and will receive a 1099 waiver from the bank. The home is my principal ... A: Sorry but I can't help you with your tax returns since I have a contract with my employer which has ... | |
| US citizen abroad | 1/2/2010 |
| Q: my husband and i have been living and working in Saudi Arabia since the mid 80's... and all the time ... A: I don't think you need to worry about anything. You can exclude most of your foreign earned income. ... | |
| stocks and taxes | 12/31/2009 |
| Q: I bought $250.00 worth of a stock. It is now worth $6,000.00. what is my tax liability on that??? A: When you sell it you will pay capital gains tax on the difference between what you sell if for and ... | |
| No reportable income | 12/30/2009 |
| Q: As someone who has been unemployed for all of 2009, I have questions about what tax liabilities ... A: You report your rental income and expenses on Schedule E. Be sure to take a deduction for ... | |
| mileage write-offs 2009 | 12/29/2009 |
| Q: please answer this question. i live in baton rouge, la., my employer's office is in slidell, la.; ... A: You didn't say whether or not your employer reimburses you for mileage. If you are reimbursed you ... | |
| Federal Tax Treatment of Financial Aid | 12/23/2009 |
| Q: I understand that scholarship payments are exempt from federal income tax if they are used for ... A: It would apply to any type of grant or scholarship. Loans are not subject to income tax. ... | |
| tax liability for sale of property | 12/19/2009 |
| Q: Ms. Dunton - I am selling a small (3 acre) parcel in Wisconsin and would like to know what my tax ... A: Yes it would be a long term capital loss, assuming you held the property more than one year. You ... | |
| tax liability for sale of property | 12/19/2009 |
| Q: Ms. Dunton - I am selling a small (3 acre) parcel in Wisconsin and would like to know what my tax ... A: You will have a long term capital gain. To determine your gain you deduct your cost basis from your ... | |
| defined contribution plan distribution | 12/15/2009 |
| Q: I am 61years old considering retiring from a company after 35 years with a profit sharing/defined ... A: Whether or not you can take a distribution while still working there is up to the plan. Once you ... | |
| Sole Proprietorship: Taxable income | 12/14/2009 |
| Q: I'm trying to determine exactly what income from sales I'll need to pay taxes on. These probably ... A: You report the $10 as income. Then you deduct the fee as one of your business expenses. If you ... | |
| Tax on property sale | 12/9/2009 |
| Q: My Mom is a widow in New york and would like to sell her co-op owned over 17 years(not used as ... A: Her gain attributable to depreciation taken (or which could have been taken even if she didn't ... | |
| claiming childcare | 12/8/2009 |
| Q: This is my first year doing childcare in my home I also have a part time job an a 3 year old child. ... A: The things you mentioned would do it. You will be reporting your income and expenses on Schedule C ... | |
| Filing Taxes | 12/4/2009 |
| Q: I have recently obtained a position as an intern at a local business. I was never told anything ... A: It sounds as though you will receive a 1099MISC for your income. If that is so you will report your ... | |
| Health Tax Breaks? | 12/2/2009 |
| Q: I am curious to know if there are any tax breaks available related to health and medical categories. ... A: You can itemize your medical expenses on Schedule A. They're deductible to the extent they exceed ... | |
| TANF and taxes | 11/28/2009 |
| Q: My husband and I are currently recieving TANF benefits for taking care of our two nieces which got ... A: Calculate how much the girls cost you. Include the fair rental value of their rooms, food, ... | |
| Capital gains tax on land sale | 11/23/2009 |
| Q: I have 20 acres in Cass County, MO. My primary home residence sits on 10 acres of it. The other 10 ... A: The sale will be taxed as a long term capital gain at a maximum rate of 15% (at least until Congress ... | |
| rollover ira | 11/21/2009 |
| Q: I am 49 years old,I recently became disabled. I dont have alot in my ira but I thought it would be ... A: I don't know whether or not you have to use all your funds before you can get government aid because ... | |
| Rental to Primary Residence | 11/20/2009 |
| Q: How long do you have to live in a previous rental property for it to be considered your primary ... A: You have to live in your main home 2 years during the 5 years preceding the date of sale to exclude ... | |
| 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 a | |