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About Carole Dunton
(Top Expert on this page)

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

Experience
8 years as tax preparer for major national firm.

   

You are here:  Experts > Business > Corporate Law > Tax Law (Questions About Taxes)

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

SubjectDate Asked

1065 & LLC11/17/2008
  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 deduction11/17/2008
  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 property11/17/2008
  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 transactions11/17/2008
  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 filing11/16/2008
  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 Costs11/14/2008
  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) beneficiary11/13/2008
  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 FSA11/12/2008
  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 employed11/12/2008
  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 land11/11/2008
  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 transfer11/10/2008
  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 201011/9/2008
  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/ mortg11/8/2008
  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 DEPENDENTS11/7/2008
  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 Home11/7/2008
  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 Home11/6/2008
  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 201011/6/2008
  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 Trust11/6/2008
  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 taxes11/6/2008
  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 intrest11/5/2008
  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 deductions11/3/2008
  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 Employed11/2/2008
  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 ...
withholdings11/1/2008
  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 expensing11/1/2008
  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 ...
TAXES10/31/2008
  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 seperately10/29/2008
  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 SS10/28/2008
  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 claim10/28/2008
  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 ...
pension10/28/2008
  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 Texas10/27/2008
  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 etc10/27/2008
  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 Taxes10/26/2008
  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 tax10/25/2008
  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 ...
IRA10/24/2008
  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 gains10/23/2008
  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 implications10/22/2008
  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 taxes10/20/2008
  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 deduction10/20/2008
  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 ...
dependent10/19/2008
  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 Question10/19/2008
  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 ...
tolls10/17/2008
  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 D10/15/2008
  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 Deposits10/14/2008
  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 ...
Mileage10/14/2008
  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 credit10/14/2008
  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 ...
Mileage10/14/2008
  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 consideration10/14/2008
  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 ...
dependants10/14/2008
  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 paycheck10/13/2008
  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 Dium10/12/2008
  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/stipend10/12/2008
  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 withdrawal10/10/2008
  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 Rental10/9/2008
  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 Rental10/9/2008
  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 Sale10/7/2008
  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 job10/7/2008
  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 land10/6/2008
  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 Residence10/6/2008
  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 divorce10/6/2008
  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 gain10/5/2008
  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 IRA10/5/2008
  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 gain10/5/2008
  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 gains10/4/2008
  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 gains10/4/2008
  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 question10/2/2008
  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 accounts10/2/2008
  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 Pension10/2/2008
  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 ...
Pension10/1/2008
  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 received10/1/2008
  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 ...
divorce9/30/2008
  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 withdrawal9/29/2008
  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 Tax9/29/2008
  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 taxes9/27/2008
  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 Distribution9/27/2008
  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 Credit9/25/2008
  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 property9/24/2008
  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 money9/22/2008
  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 FRAUD9/20/2008
  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 sell9/20/2008
  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 question9/19/2008
  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 FRAUD9/19/2008
  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 Residence9/17/2008
  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 ...
Hi9/17/2008
  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 - Deductions9/17/2008
  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 residece9/15/2008
  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-49/13/2008
  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 Farmhouse9/12/2008
  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 shortage9/12/2008
  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 accounts9/3/2008
  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 sale9/1/2008
  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 Tax8/30/2008
  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 wife8/30/2008
  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 Taxes8/29/2008
  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 Taxes8/29/2008
  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 exemption8/28/2008
  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 ...
question8/28/2008
  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 Withdrawal8/28/2008
  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 tax8/26/2008
  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 taxes8/25/2008
  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 Liability8/23/2008
  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 Liability8/23/2008
  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 benefits8/21/2008
  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 sold8/21/2008
  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 Deducations8/20/2008
  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 Tax8/20/2008
  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 designation8/20/2008
  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 divorce8/19/2008
  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 Check8/18/2008
  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 Babysitters8/17/2008
  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 gains8/17/2008
  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 Babysitters8/17/2008
  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-1099s8/15/2008
  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 Years8/15/2008
  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 Inventory8/14/2008
  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 basis8/14/2008
  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 TX8/14/2008
  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 Filing8/14/2008
  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 deceased8/14/2008
  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 ...
taxes8/10/2008
  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 ...
taxes8/10/2008
  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 tax8/7/2008
  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 rebate8/6/2008
  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 work8/6/2008
  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 work8/5/2008
  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 rollover8/4/2008
  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 Reimbursemt8/3/2008
  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-28/1/2008
  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 Gains7/31/2008
  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 Retirement7/31/2008
  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 Tax7/29/2008
  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/fuel7/29/2008
  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 stock7/28/2008
  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 options7/27/2008
  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 equipement7/27/2008
  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 distribution7/23/2008
  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 care7/22/2008
  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 rollover7/20/2008
  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 Estate7/18/2008
  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 losses7/16/2008
  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 taxes7/16/2008
  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 losses7/15/2008
  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 SMLLC7/14/2008
  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 property7/13/2008
  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 - EIN7/11/2008
  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 Reimbursement7/10/2008
  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 ...
land7/9/2008
  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 heat7/9/2008
  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 ss7/8/2008
  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 Security7/8/2008
  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 taxes7/7/2008
  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 DISTRIBUTION7/7/2008
  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 retirment7/2/2008
  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 retirment7/2/2008
  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 ...
Renters6/30/2008
  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 Deed6/30/2008
  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 Tax6/26/2008
  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 home6/25/2008
  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 taxes6/25/2008
  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 claim6/25/2008
  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 CP20006/24/2008
  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/farm6/24/2008
  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 ...
Gains6/23/2008
  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 Divorce6/23/2008
  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 ...
telecommuting6/22/2008
  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 distribution6/22/2008
  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 Reimbursement6/19/2008
  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 10316/18/2008
  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 deduction6/17/2008
  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 ...
taxes6/17/2008
  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 tax6/17/2008
  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 Penalty6/16/2008
  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 Hospital6/14/2008
  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 form6/13/2008
  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 Return6/12/2008
  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 members6/11/2008
  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 401k6/11/2008
  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-off6/9/2008
  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 ...
Annunity6/9/2008
  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 taxes6/9/2008
  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 ...
10996/8/2008
  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 withdrawal6/7/2008
  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 gains6/3/2008
  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 gains6/3/2008
  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 ...
IRAs6/2/2008
  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 Gains6/2/2008
  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 underpayment6/2/2008
  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 overseas6/1/2008
  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 overseas6/1/2008
  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 distribution5/30/2008
  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 Reimbursement5/29/2008
  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 Taxes5/28/2008
  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 liability5/28/2008
  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 contributions5/27/2008
  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 Equity5/25/2008
  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 question5/24/2008
  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 deductions5/22/2008
  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 offs5/21/2008
  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 deduction5/21/2008
  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 reimbursement5/21/2008
  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 Taxes5/21/2008
  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 Options5/18/2008
  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 allownces5/17/2008
  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 domain5/17/2008
  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 changes5/17/2008
  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 Bonus5/16/2008
  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 land5/15/2008
  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 Ownership5/13/2008
  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 Basis5/12/2008
  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 tax5/10/2008
  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 employed5/6/2008
  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 person5/6/2008
  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 contract5/5/2008
  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 20055/5/2008
  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 sale5/1/2008
  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 sale4/30/2008
  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 proceeds4/29/2008
  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 Residence4/28/2008
  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 funds4/27/2008
  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 Residence4/27/2008
  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 mailed4/22/2008
  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 ...
dependent4/15/2008
  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 player4/13/2008
  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 rebate4/6/2008
  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 85823/29/2008
  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 purchase3/28/2008
  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-b3/26/2008
  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 filing3/26/2008
  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's3/25/2008
  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 royalties3/24/2008
  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 plastic3/22/2008
  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 overseas3/21/2008
  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 claim3/20/2008
  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 Credits3/3/2008
  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 Credit3/2/2008
  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 ...
Deductions2/28/2008
  Q: My wife (as of December 2007) got word today that she owes something like $