| Subject | Date Asked |
|
| 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 ...
|
| 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. ...
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| Taxes on land sale | 9/1/2008 |
Q: My cousin and I jointly own undeveloped land that was a part of my grandfather’s estate. We are in ...
A: The one who receives the payments can transfer half to the other and issue a 1099 at the end of the ...
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| Income Tax | 8/30/2008 |
Q: I am the executor of my mother's small estate. She had two stocks. I filled out the paperwork to ...
A: Since you inherited the stocks and sold them immediately there would be little or no gain on the ...
|
| 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 ...
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| Quick Deed Transfer Tax Liability | 8/23/2008 |
Q: My husband and I are in the process of quick deeding a home we own to our mother. We added our ...
A: When you give more than $12,000 in a given year to an individual, you are required to file a gift ...
|
| 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 ...
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| Social Security Tax | 8/20/2008 |
Q: I am on Social Security and it is my only source of income. I draw $1180 per month and am 85 years ...
A: No you don't have to pay taxes on your social security income if it is your only income. But you ...
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| capital gain?? | 8/20/2008 |
Q: My husband and I started to build a house in the winter of 2006 and moved in February. 2007. Now we ...
A: The two year period is the time you owned and lived in it as your main home. If you move prior to 2 ...
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| IRA beneficiary designation | 8/20/2008 |
Q: I'm a 22 year old Canadian citizen and my grandmother (a US citizen) wants to designate me as the ...
A: Depending upon the custodian of your grandmother's IRA, you may not need a Social Security Number. ...
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| Taxes due for Contractor (what, how much and when) | 8/20/2008 |
Q: Hope you can help me with my tax related question. I work as an employee and earn about $100K per ...
A: You will report your income amd expenses from the contractor job as self-employment income on ...
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| Draws with out with taxes. | 8/19/2008 |
Q: Three men started up a business. We take a draw. All the same. First year in business. Do we have to ...
A: When you file a partnership return, net partnership income is passed to each of the partners via a ...
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| Timing of 401K Distribution before or after divorce | 8/19/2008 |
Q: Carol, My wife of 14 years and I are getting divorced and we have agreed that my 401K will not be ...
A: Assuming you are not yet 59 1/2, there will be a 10% penalty in addition to income tax on ...
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| Stimulus Rebate Check | 8/18/2008 |
Q: When I filed the tax return for 2007, I filed as married jointly..But I used ITIN number for my ...
A: Unfortunately the IRS is correct. Had you filed Married Filing Separately, you would have qualified ...
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| Capitol Gains ( Wash Sale) | 8/18/2008 |
Q: I am new to stock trading and as such was ignorant to the wash sale regulation when I made this ...
A: As I understand from what you wrote, you no longer have any shares of the stock. That being the ...
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| Taxes for Babysitters | 8/17/2008 |
Q: We have paid our sitter over $6,000 this year. We are not using her anymore - had to fire her. Do ...
A: I don't know of a web site to calculate how much you will owe the government. You will calculate it ...
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| capital gains | 8/17/2008 |
Q: My grandmother,grandfather, and mother were all on the title and lived in the house together.The ...
A: In a word, yes. Assuming it was everyone's main home and they lived in it 2 years during the 5 ...
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| Taxes for Babysitters | 8/17/2008 |
Q: We have paid our sitter over $6,000 this year. We are not using her anymore - had to fire her. Do ...
A: If she worked in your home as your employee, you need to pay the employer's share of social security ...
|
| Selling home-1099s | 8/15/2008 |
Q: My wife and I are selling a home for aprrx. 25k more than we paid for it. Physically we will not ...
A: If the home is your main home and you have owned and lived in it for 2 years during the 5 years ...
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| Filing Tax Return for Multiple Years | 8/15/2008 |
Q: What is the best way to file unfiled prior years tax returns? Send them one at a time and what for ...
A: Send them all at once but in separate envelopes. You can file the current year at the same time ...
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| Tax Question around Inventory | 8/14/2008 |
Q: I have a start up sole proprietorship of selling items (toys) I collected for a while. I am unsure ...
A: The easiest way to value inventory is cost. You start with your beginning inventory - which will be ...
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| real estate cost basis | 8/14/2008 |
Q: situation: recently divorced - husband did all the taxes - I received rentals in the divorce - my ...
A: If you filed joint returns reporting the rentals in the past, you can get a copy of prior year tax ...
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| Business in OR, Work in TX | 8/14/2008 |
Q: I own a small e-business (sole proprietorship) in Oregon but have recently relocated for a job in ...
A: Reregister the business in Texas so that in future years you won't have to worry about Oregon. I ...
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| Income Tax Filing | 8/14/2008 |
Q: My fiance is divorced with 5 children. Their mother has residental custody. He claims 2 or 3 every ...
A: If you file jointly, your standard deduction will be higher than that for head of household and any ...
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| Stock sale from deceased | 8/14/2008 |
Q: I am the personal rep. for my aunt who died in 2006. I discovered additional stock after the bulk ...
A: I believe that you would need to file a tax return for the estate. Estate tax rates are higher than ...
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| taxes | 8/10/2008 |
Q: My mother-in-law "gifted"her house over to my husband and sister-in-law in 2004(Aug).At that time we ...
A: Perhaps the county or tax assessor's office has records that would help you find what was paid. Or a ...
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| taxes | 8/10/2008 |
Q: My mother-in-law "gifted"her house over to my husband and sister-in-law in 2004(Aug).At that time we ...
A: To determine the gain or loss on the sale, you need to know what your mother-in-law paid for it ...
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| capital gains tax | 8/7/2008 |
Q: My fiance' and I currently we own separate homes. I will not be ready to sell my home for another ...
A: If you owned and lived in the home as your main home for 2 years during the 5 years preceding the ...
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| tax rebate | 8/6/2008 |
Q: my 89 year old neighbor wants me to fill out a form she received from the IRS. they said that she ...
A: Assuming you are not being paid to help her and you won't sign the return as a paid preparer, you ...
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| IRA Withdrawal for dental work | 8/6/2008 |
Q: My 79-year-old mother must have some major dental work done, which will be not be reimbursed by her ...
A: Since her income is relatively small it should work out ok for her. A small amount of her social ...
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| IRA Withdrawal for dental work | 8/5/2008 |
Q: My 79-year-old mother must have some major dental work done, which will be not be reimbursed by her ...
A: She can claim as an itemized deduction her dental work as well as other medical expenses, including ...
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| Taxes paid on retirement rollover | 8/4/2008 |
Q: I recently rolled over my retirement funds from a previous employer. I had 25% distributed directly ...
A: When you said you paid taxes on the amount distributed to you, do you mean that they withheld taxes? ...
|
| 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 ...
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| Capital Gains Tax | 7/29/2008 |
Q: I was left a large amount of money last year. I have spent some of it and right now it is in an ...
A: If you sell the investments within your account you will be taxed on the gain over what you paid for ...
|
| 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 ...
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| withholding allownces | 5/17/2008 |
Q: Can my wife and I with one child claim as many exemptions as needed to break even or get close at ...
A: Yes you can claim as many exemptions as you need to reduce withholding so that you break even at tax ...
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| eminate domain | 5/17/2008 |
Q: My business building and land property was taken in Pa for 150,000 it was appraised for 240,000 ...
A: You can deduct a loss if you actually had a loss. To determine your loss or gain, you deduct your ...
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| taxes incured when property tile changes | 5/17/2008 |
Q: What taxes will I or my father incur if he transfers his personal residence out his name and totally ...
A: Your father would need to file a gift tax return to report a gift of more than $12,000 to another ...
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| Sign on Bonus | 5/16/2008 |
Q: Carole, Could you tell me on adverage what you would be taxed on a $30,000.00 sign on bonus? We are ...
A: Your sign on bonus would be added to your other income and taxed at whatever rate your total income ...
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| what capital gains do I have to pay after selling vacant land | 5/15/2008 |
Q: We purchased a lot 2 years ago for 52,000 and built a house on the one side of it. We are just ...
A: The maximum long term capital gains tax rate is 15%. But adding a large amount to your other income ...
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| Joint Home Ownership | 5/13/2008 |
Q: I am thinking about purchasing a home with my sister. She will live in the home in a neighboring ...
A: Assuming that both of you would be obligated to make the mortgage payments, each of you would deduct ...
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| Real Estate Cost Basis | 5/12/2008 |
Q: I am the executor of my mothers estate. We recently sold her condo. After the buyer had it ...
A: Those costs would be expenses of the sale rather than added to the cost basis but they do reduce ...
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| land capital gains tax | 5/10/2008 |
Q: In 2005 we bought a densely forested house lot: we had it cleared, and had it stumped out. We had ...
A: Actually you add the cost of improvements to your cost basis in the land so that your gain is ...
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| Self employed | 5/6/2008 |
Q: I just recently started baby-sitting for my sister's children. It is the only source of income that ...
A: When you are self employed you report your income and expenses on Schedule C and pay self employment ...
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| retired person | 5/6/2008 |
Q: My father is retired and he recieves social security and a small pension. however he wants to work a ...
A: Yes, his employer should withhold social security and medicare as well as income tax. Your father ...
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| capital gains on sale of home sold on land contract | 5/5/2008 |
Q: i hope this isnt too complicated & that it doesnt cost me an arm & a leg but, it looks like it will. ...
A: First of all you need to determine whether or not you had a gain. You do that by subtracting your ...
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| Sale of Non-primary property in 2005 | 5/5/2008 |
Q: Elderly parent, then 87 yrs. old. sold non-primary residence for $415K; allegedly giving grandson ...
A: Assuming he/she owned the property for more than one year, any gain will be taxed as a long term ...
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| capital gains tax on vacant land sale | 5/1/2008 |
Q: I was willed a 10 acre parcel of land 5 years ago. I am currently selling the land for 65,000 and ...
A: Your cost basis in the property is the fair market value of the property on the date of death of the ...
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| tax issues with a short sale | 4/30/2008 |
Q: what would be the tax implications if i do a short sale on my home. i owe $450,000 and I have an ...
A: Normally forgiven debt is taxable income but since this is your principal residence, you may be able ...
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| Taxes of gross proceeds | 4/29/2008 |
Q: I forgot to claim that I exchanged shares of one mutual fund into another in 2006. The IRS says I ...
A: You need to amend the 2006 return to report the sale and your cost basis in the sale. The IRS ...
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| Capital Gain on Primary Residence | 4/28/2008 |
Q: We own a 2 family home and we've been living here for about 7 years. If we sell and buy a new home, ...
A: Since you rented out one apartment, you have, in effect, 2 sales. Let us assume that the apartments ...
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| esop funds | 4/27/2008 |
Q: first time home buyer ( age 51 ) can i use my esop funds ( company got sold and need to place funds ...
A: Any funds withdrawn from a retirement account are taxable and subject to an additional 10% penalty ...
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| Capital Gain on Primary Residence | 4/27/2008 |
Q: We own a 2 family home and we've been living here for about 7 years. If we sell and buy a new home, ...
A: You wrote that it is a 2 family home. Have you been occupying both portions? If you have and you ...
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| Contribution Deadline for IRAs-timely mailed | 4/22/2008 |
Q: I was curious if the timely mailed - timely filed principle applied to the IRA funding ? My daughter ...
A: The IRA contribution for 2007 had to be in the account no later than 4/15/2008. In the mail by 4/15 ...
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| dependent | 4/15/2008 |
Q: Can my parents really claim me on their taxes? What qualifies me to be claimed on their taxes. I ...
A: If your parents paid more than half of your support for the entire year, they are entitled to claim ...
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| Tax deductions for minor league baseball player | 4/13/2008 |
Q: My son is a minor league baseball player; he was informed he there are many deductions he can claim, ...
A: As an employee, he can claim unreiumbursed employee business expenses as an itemized deduction on ...
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| tax rebate | 4/6/2008 |
Q: I have a few questions. I am the payee for Social Security for my wife who is disabled and her son. ...
A: If you claim your son as a dependent he will not get anything on the rebate. If he files his own ...
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| Moved from India in 2006, rent deduction? | 4/4/2008 |
Q: I moved from India in Sep 06 and am a computer programmer by profession. I work with a company in ...
A: If the assignment was temporary and expected to last one year or less and actually lasts one year or ...
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| Underpayment Penalty? | 4/1/2008 |
Q: I recently prepared my 2007 tax return and was informed by Tubro Tax that I fall into the category ...
A: What you're referring to is the annualized method. Turbo Tax should allow you to choose that method ...
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| whether or not to use forms 6198 or 8582 | 3/29/2008 |
Q: My husband and I bought a rental fixer-upper house in mid October in 2007. We hired a contractor to ...
A: If you tried to rent it in December and simply didn't find a tenant, you could complete Schedule E ...
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| Employed + Self-Employed? | 3/29/2008 |
Q: I am currently working as a freelance makeup artist and also teach professional makeup courses ...
A: You will file form 1040 and report your wages on line 7. In addition, you will file Schedule C to ...
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| tax on sale of inherited land/new home purchase | 3/28/2008 |
Q: the person he inherited it from died in 2002 but my son did not find out about the land or get it ...
A: He needs to report the sale and pay long term capital gains tax on the gain - maximum rate 15%. ...
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| 1099-b | 3/26/2008 |
Q: My wife sold some partnershare stock form Wells Fargo & Co. The realized gain is shown as income on ...
A: If you don't report the gross sale proceeds shown on the 1099B, you can expect a letter from the ...
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| Dependent college 20 year old tax filing | 3/26/2008 |
Q: Can I e-file for free my 20 year old full-time student (being paid for by Mom and Dad)daughter's ...
A: There are sites where you can e-file for free. Go to the IRS website www.irs.gov and click on Use ...
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| W-2's | 3/25/2008 |
Q: Where do I get copies of my w-2's for the last 3 years, I live in California. Thanks.
A: For 2007 W2's you need to contact your employer(s). If that is unsuccessful you should contact the ...
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| Oil and gas royalties | 3/24/2008 |
Q: I have oil and gas royalties that are being paid on property that is my primary residence. I have ...
A: Since the royalties are paid on property that is your primary residence, it makes sense to deduct ...
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| pay taxes with plastic | 3/22/2008 |
Q: card a.so controlled (2 agencies)and a wopping 2.49 %(i think it was)of what you owe-was wondering ...
A: Normally when you use a credit card to pay for something the company selling to you pays the credit ...
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| DoD Contractor overseas | 3/21/2008 |
Q: I am in Japan with my military husband and was recently hired as a contractor by a stateside ...
A: US citizens are required to report their world-wide income regardless of where they are living. ...
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| how many children? | 3/21/2008 |
Q: I was talking with my co-workers and they told me if you have a certain number of kids, you dont ...
A: You have to pay taxes if your income exceeds the the total of your exemptions and standard deduction ...
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| What to claim | 3/20/2008 |
Q: I was laid off so I traveled to Texas and am currently working there as a "traveler" How do I ...
A: First you need to estimate what your income will be for the year. I don't know exactly what a ...
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| Education Credits | 3/3/2008 |
Q: I have a question concerning education credits. I was unaware that I could take an education credit ...
A: Yes, you can file amended returns for 2004, 2005 and 2006. You could file amended returns for prior ...
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| Earned Income Credit | 3/2/2008 |
Q: I am a single parent and have a young son. I claimed him the first year, but now the court documents ...
A: Your filing status doesn't affect the Earned Income Credit. You don't have to claim him as a ...
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| Deductions | 2/28/2008 |
| Q: My wife (as of December 2007) got word today that she owes something like $ |
