| Subject | Date Asked |
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| Taxes on investment | 11/12/2008 |
Q: I am considering an investment in a small business owned by a friend. The arrangement would involve ... A: Normally profits and losses are distribute to shareholders based on ownership so say your 75K ...
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| new york state taxes | 11/8/2008 |
Q: I am a bit confused. My mother is a retired senior citizen who based on her income is not required ... A:
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| Married living in two states | 11/6/2008 |
Q: My wife and I live and own a home in CA. Unfortunately, I am moving out of my home and looking for ... A: you can own a second home anywhere without subjecting you to their state taxes an the FED second ...
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| claiming corp. owner as employee, how to do it, , corporate and tax reqirements. | 11/6/2008 |
Q: I started a C-corporation in March, 2006 with no employees. I had net operating losses for ... A: if so you would be treated as any other employee get Circular E at the IRS site at ...
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| Relocated mid year | 10/29/2008 |
Q: I relocated from California to South Carolina in May...how do I figure how much income I pay taxes ... A: You will need to file as Part time resident for CA and pay CA on your earnings there then you will ...
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| Rental property expenses | 10/29/2008 |
Q: I have a rental property in which I had one tenant and one apartment was vacant. I was recently ... A: I think you should ask to see the taxpayers representative at the IRS office for clarification
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| C-Corporation bonusing all rev in profits. | 10/24/2008 |
Q: I own a regular corporation (or more accurately, 93% of it) with minority shareholders owning the ... A: if the IRS were to find the Bonus to be be for tax avoidance it would be considered a dividend SO ...
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| Reimbursing an employee | 10/17/2008 |
Q: I have an employee/manager that has a truck and transports things for our business a few times a ... A: no tax consequence to the employee As to the refreshment if the amounts as I take are small just ...
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| BABYSITTER | 10/15/2008 |
Q: I JUST GOT NOTICE I OWE 1700 TO IRS FOR 2006; BRIEFLY TELL YOU THE STORY; MY DAUGHTER A SINGLE ... A: then the two of you then amend your returns to reflect the new dependency status However ...
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| setting up a c corp and transferring assets | 10/11/2008 |
Q: I have been a sole prop. for several years.I am now going to form a C corp. I have equipment that is ... A: If you need liability protection consider an LLC or Sub S corp. As to the value of equipment ...
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| Sale of Land | 10/9/2008 |
Q: If a farm is purchased for $330,000 and the land is subdivided and sold,what portion of the basis ... A: as to allocating your cost to each parcel a common sense approach might be take the total FMV then ...
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| LLC taxes and questions | 10/9/2008 |
Q: I hate to take advantage and ask more than one question, but I am. 1) 2 people formed an LLC. It is ... A: then pay B the true value of services distribute the remaining gain or loss in the membership ...
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| Moving out of CA to WY | 10/4/2008 |
Q: This month (10/08) I will be moving from CA to WY. I would like to establish residency in WY, but ... A: Hi Will once you establish a residence in WY only earnings in ca will be subject to CA taxes ...
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| C Corp Gifts | 10/3/2008 |
Q: My parents have their business set-up as a C-Corp (not sure why they went this way vs. an S-Corp). ... A: Eric this is a toughie but the consulting fee if reasonable is the better way to go also he may wish ...
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| 401k + divorce | 10/3/2008 |
Q: I gave my wife $30,000 out of my 401k. I had them take the taxes out. now the irs says that I still ... A: if this is not the case, which I assume it is you do owe a 10% penalty for early withdrawal the ...
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| capital gains | 10/1/2008 |
Q: I hope you can help because I have asked this question to a few accountants and I get many different ... A: Michael you are right this gets complicated I will Mull it over and try to give you an answer ...
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| Working in 2 states | 9/30/2008 |
Q: I work for a national company in NY state. I have been required to work in the state of MD for about ... A: Ray unless you are considered a MD temporary resident and that depends on your living arrangement ...
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| stockholder/employee bonus' subject FICA | 9/30/2008 |
Q: I am asking for a friend of mine. He married a C Corp owner, started working there and drawing a ... A: since the intention clearly was a bonus unless the amount was material you would be better off ...
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| stockholder/employee bonus' subject FICA | 9/30/2008 |
Q: I am asking for a friend of mine. He married a C Corp owner, started working there and drawing a ... A: but in any event Bonus is subject to FICA Income tax withholding can be waived but the employer ...
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| Partnership Sale of Rental Residential Property- Form 4797, 1065 Sch D | 9/29/2008 |
Q: My questions relate to the Partnership tax forms 4797, 1065 Schedule K, and 1065 Schedule D (?? if ... A: Bill I think you need to look up publication 544 if the property qualifies as section 1250 it ...
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| NY Company Structure | 9/29/2008 |
Q: I am embarking on the independent contractor route of employment where I will be taking up ... A: Unless you need liability protection you best tax strategy is to operate as an individual both NYS ...
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| Dual state income tax | 9/24/2008 |
Q: I own a home in North Carolina, commute there every weekend. I work full time in New York City and ... A: Richard I am sorry to tell you have a problem NYS and NYC consider you a resident requiring filing ...
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| Procedure For Reporting Untaxed Income | 9/22/2008 |
Q: I just began a job with a private company here in CT. I have gotten one paycheck from this company ... A: Hi Barbara the withholding rules state that if an employer those not withhold correctly and the IRS ...
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| hi | 9/22/2008 |
Q: i wanna cash a student loan check sub and unsub from the feds and dept of education , wachovia ... A: Bottom line if legit it does not matter and should no cost except nominal charges
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| Nonresident, Work From Home, Maine, NH | 9/20/2008 |
Q: I live in NH (no state income taxes) and am considering an opportunity in Maine (high state income ... A: Your best bet maybe to have your employer keep track and deduct Maine taxes when appropriate. You ...
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| Business losses | 9/20/2008 |
Q: We have a S Corp that set up a LLC that operated a business that lost a lot of money. All the funds ... A: make your life simple and terminate one or the other by a tax free transfer of assets,but have a ...
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| taxes and houses | 9/19/2008 |
Q: my question is complicated. i bought a house in 2005 and lived there for 4 months. my exwife took ... A: James I would simplify this situation by amending 2005 and show the transfer date and take a short ...
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| LLC medical isurance deduction | 9/15/2008 |
Q: My husband and I would like to form a LLC in CA. Can we deduct 100% of our medical insurance? A: Unless you need liability protection having a CA LLC is expensive at least $800 in annual fees ...
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| Bonus paid in a different year | 9/12/2008 |
Q: If my 2007 bonus is paid in 2008, should that bonus go on my 2007 tax returns? also, in my case i ... A:
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| Health Insurance Premium for S corp - how taxed personally | 9/12/2008 |
Q: I have an S corp, and I am the sole partner (now). I recently switched from personal and now ... A: and yes it will become a personal expense do not ask me what the logic of this rule is but it is ...
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| capital gain | 9/11/2008 |
Q: I and my sister bought a property at $360k in 2002 and put it under the name of a S corp. We are the ... A: Yvonne the two are not necessarily related your property sale is a separate event than the ...
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| IRA distribution | 9/9/2008 |
Q: Some of my IRA contributions were before tax dollars and some were after tax dollars. Now that I ... A: irs.ustreas.gov if you follow the form you should be able to sort out the percentage you need to ...
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| Tax related to outsourced contractor payment. | 9/7/2008 |
Q: I am a California C Corp. I paid a foreign individual (in China) for developing software for me. ... A: 1) yes the payment is an expense 2) yes to both But FYI you contractor was subject to withholding ...
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| Inherited Coin Collection | 9/6/2008 |
Q: I inherited a coin collection upon the death of my mother. I realize I have long term capital gains ... A: Hi Michael if the estate filed a tax return they might have needed an appraisal to establish the ...
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| DEBT COLLECTOR'S & 1099C | 9/5/2008 |
Q: DEBT COLLECTION AGENCY STILL TRYING TO COLLECT ON DEBT THAT A 1099C WAS ISSUED FOR 2007; I'VE PAID ... A: but according to the tax rules to write off a debt they would have made every effort to collect if ...
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| LLC Taxation | 9/4/2008 |
Q: we have a two-member LLC that was incorporated in December 2007 but has had no revenue until August ... A: You will need to file by dec 31 and need to elect to file either as a partnership or corporation ...
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| Own Townhouse,,, Inherited Single Family Home | 9/3/2008 |
Q: I have a couple questions, so I'll need to provide some background information first... - In 1988 I ... A: 1 the residence question is based on various factor but you do not need to fudge as you have time 2 ...
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| Long Term Disability Payments and Taxes | 9/3/2008 |
Q: 1. I receive ERISA group long term disability payments through an employer sponsored plan ... A: 1 yes 2 yes 3 if you don't pay Soc SEC TAXES you will still get social security benefit based on ...
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| Working/Living out of state | 8/28/2008 |
Q: Ivan, I own a house in Alabama where my wife and children currently are. I am starting to work on a ... A: irs.ustreas.gov Please be sure to look up the instructions for form2106 Employee Expenses at ...
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| gift tax help | 8/26/2008 |
Q: My grandmother recently send me a personal check for $30,000. She said she is dispersing what would ... A: John the gift is totally tax free to you as to your grandmother she will need to file a gift tax ...
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| employee travel expenses | 8/25/2008 |
Q: I live in City A and work as a medical sales rep. Twice a week I travel to City B staying overnight ... A: 2)if the distance on a overnite stay is more than 50 miles from your home the travel it is ...
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| Sole Proprietorship, TX, Divorce | 8/25/2008 |
Q: My wife has had a sole proprietorship in TX for aproximately 8 years. we are divorcing, for ... A: suggest to her that the divorce decree become effective after Jan1.2009 so that in 2008 you would ...
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| LP with Corporate General Partner | 8/23/2008 |
Q: I have organized a Limited Partnership dealing in commodity/futures trading of which the sole ... A: Don why not trade as an individual and eliminate the complications? by the way trading profits are ...
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| Medical Insurance Premium Deduction | 8/22/2008 |
Q: I am employed part time and not eligible for medical insurance with my employer. I have a high ... A: the other gentlemen can get a management fee to account for yoour salary beanies and payroll taxes ...
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| capital gain | 8/21/2008 |
Q: I and my sister bought a property at $360k in 2002 and put it under the name of a S corp. We are the ... A: When transfering property from the S corp to shareholders, if done properly, there would not be tax ...
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| FL & NY residency? | 8/21/2008 |
Q: My husband owns homes in both NY and FL. We live and work in NY full time, but visit FL often. Will ... A: and remember if you sell the NY house at a later date the issue of principal residence comes into ...
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| Divorce settlement and taxes | 8/18/2008 |
Q: My divorce was finalized in February of 2005 in Texas, after being married for 11 years. My ... A: PS if money changed hands you only had 60 days to rollover !!!!
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| per diem and taxes | 8/18/2008 |
Q: Is per diem taxable, should it be reported as income and what is the limit for monthly per diem. ... A: Per diem if it meets the rules is not taxable unless you calculate that your expenses were less than ...
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| c-corp conversion to s-corp tax year question | 8/16/2008 |
Q: Currently in the process of converting a closely held c-corp to an s-corp, however the c-corp tax ... A: In any event you will need IRS permission to a change in accounting method
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| State Residency | 8/14/2008 |
Q: I have a home in Florida and a home in NY. I declared Florida as my state of residence and I vote ... A: make sure that your traveling days were outside NY as you are close to becoming a Resident. Also ...
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| Reimbursement Policy | 8/11/2008 |
Q: Our church has a reimbursement policy which explicitly states that any (Texas) Sales tax incured by ... A: Purchases made by individuals even if doing church business normally are not exempt from the sales ...
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| Living in NY, Working in VA | 8/8/2008 |
Q: Im hoping you can help me. I am moving to VA to start a teaching job. However, I am not changing ... A: But you will need to file the VA non resident tax return. Then you will need to file a NY resident ...
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| LLC vs S-corp in Texas | 8/6/2008 |
Q: I am starting a dental practice in Texas and choosing an entity. I am getting lots of conflicting ... A: Tax -wise in Texas an LLC pays somewhat higher franchise fees than an S corp but this is so ...
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| SALES TAX | 8/5/2008 |
Q: IF A CORPORATION DID NOT COLLECT THE REQUIRED STATE SALES TAX FROM CUSTOMERS, AND IS AUDITED BY THE ... A: However being practical since use taxes are considered part of purchases and business interest ...
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| Corporate gift tax to my son | 8/3/2008 |
Q: I have a small LLC of which I am the sole owner/member. On 12-30-06 my LLC gifted my son $40,000. ... A: single member llc are not a separate tax entity from the individual member. So all goes as your ...
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| Form 982 | 8/1/2008 |
Q: I received form 982 after I had already filed my 2007 tax return. As it turns out, I was insolvent, ... A: if the forgiven debt was not under bankruptcy you need to show on this form how much was not ...
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| working and living different states | 7/30/2008 |
Q: I am living in Texas right now and they have no state taxes. I will be working in California for a ... A: Tom If you spend more than 183 days in any state you are considered a resident of that state so ...
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| head of household | 7/30/2008 |
Q: I am divorced and in my decree I will get to claim one of my sons as a dependent. Since their mom ... A: if each of you provide a residence to one of the kids the IRS has a tie breaking rule that gets ...
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| Which Form to Use for Home Office Utility Deductions? | 7/29/2008 |
Q: ..My husband is a contractor in Florida. Although we are NOT self employed, we use our home office ... A: Form 2106 does not apply unless your hubby utilizes vehicles and computers for the business PS if ...
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| Forming a business | 7/27/2008 |
Q: I am in the process of starting a cleaning company in NYC, Brooklyn to be exact. I was going about ... A: You do need to obtain the certificate to collect the sales tax the sales tax people usually include ...
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| Owner financing tax rate. Mineral lease bonus tax rate. | 7/27/2008 |
Q: I have two questions. We, using company name LLC corporation, bought a piece of land at auction for ... A: ( this may be something for you to consider as it appears that the capital gains tax rate may be ...
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| land | 7/9/2008 |
Q: I have just been quick deeded two lots in Bend, Oregon worth about $85,000.00 each. -Do I need to ... A: land is capital asset taxed as any other capital asset so if held for more than one year it ...
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| health insurance for employees | 7/6/2008 |
Q: I am a single member LLC in the state of New Mexico. I am 65, thus elgible for Medicare. If my ... A: set up a cafeteria employee benefit plan ,under 105HRA, for your employees ,In this case your wife ...
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| capital gains tax in california | 7/6/2008 |
Q: my fiance and i just bought a condo in san diego. we bought it for $150,000 while it was in ... A: As far as the federal Tax if he holds the property for more than one year he would be taxed at ...
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| 401K payout | 7/6/2008 |
Q: I was laid off from a job last July, I am 56yrs old, will be 57 this Sept. I had only been with this ... A: Gary If you can hold off until you are 59and 1/2 there will be no penalty (you have 59 days to roll ...
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| Taxes on Sale of Property- California | 7/6/2008 |
Q: My father sold his first and only property(it was his residence since 1956) in 2006. He had not ... A: but here is an idea remember if the house was owned jointly when your mother died the basis on one ...
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| Taxation for consultants | 6/14/2008 |
Q: We have started a c-corporation with no paid employees as of yet. we have been working unpaid as ... A: so the corporation will have more income to to pay income tax on income if any.!! By the way if the ...
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| Complex: PER DIEM Reimbursement - Deductibility | 6/2/2008 |
Q: I work as a Consultant for an END CLIENT through several 'layers' of consulting companies. Here is ... A: I have copied below the IRS position on travel expenses pleaase note the 50% limitation on per diem ...
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| Complex: PER DIEM Reimbursement - Deductibility | 6/1/2008 |
Q: I work as a Consultant for an END CLIENT through several 'layers' of consulting companies. Here is ... A: using common sense your "employer" is paying for your travel the prior consultants are billing your ...
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| 401K Early Withdrawl | 5/29/2008 |
Q: I am thinkng about withdrawing money from my current 401K plan to fund a company that I have ... A: Larry two questions does your 401 allow for loans? and if it does would you be able to come up with ...
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| IRA with drawl | 5/22/2008 |
Q: I am falling behind on bills because of the economy change, I need to get caught up but do not have ... A: . If your problem is temporary you should ask your trustee if your plan allows for loans or use it ...
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| Capital Gains on Residence | 5/19/2008 |
Q: We have been homesteaded in Florida for 2 years, our former primary residence in MA has been rented ... A: PS the capital gains favourable treatment may expire by Jan 1,2009 so it may be wise to consider ...
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| First residence that became an investment | 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: PS by the use of coop I guess you are in NYC so the state & city would be about an effective 10% ...
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| Restraunt Tax | 5/18/2008 |
Q: So I am a server at a restraunt. We get paid about $3 an hour and get our tips (cash and credit ... A: Your employer is required to allocate tips based on total sales (some compute it directly others do ...
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| Capital Gains on Residence | 5/17/2008 |
Q: We have been homesteaded in Florida for 2 years, our former primary residence in MA has been rented ... A: Marie if the MA residence was you principal residence for 24 months out of the last 60 on the ...
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| Do I owe taxes to California State? | 5/17/2008 |
Q: My wife moved to Washington state from California due to a change of job in June, 2005. I was in ... A: Hi nPari in 2005 you and your wife should have filed separate returns that having said your lawyer ...
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| Incorporating a global, online business | 5/16/2008 |
Q: I have a growing online marketing business. I live in New York, and currently do business as a sole ... A: Corporations are taxed at higher rates than individuals. The corporation would not be in the state ...
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| LLC with income in different States | 5/15/2008 |
Q: We have an LLC and have done most of the business based from a contract in Virginia with employees ... A: PS normally withholding is based on the location where the employee works ,not where the employee ...
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| decreasing tax burden | 5/15/2008 |
Q: I wanted your input on ways to decrease my tax burden. I live in NY, am a physician in training, ... A: irs.ustreas.gov if you use the car personally you need to apportion it I do not think this will ...
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| Injured Spouse | 5/14/2008 |
Q: My mother was in a messy divorce in 2005 and she has a court order in her divorce decree stating ... A: I have researched the IRS site(www.irs.ustreas.gov) relating to this my findings are below but I do ...
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| House left in Trust | 5/12/2008 |
Q: My father passed away in 2006.He left a house in a trust to me.I can`t sell it due to the realestate ... A: as a NY resident the rent will also be subject to NYS taxes When you sell the house there will be ...
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| tax rebate | 5/12/2008 |
Q: i am a 74 year old widow. when i had my tax prepared 2 years ago i was told that i didn't have to do ... A: the IRS (www.irs.ustreas.gov) provides help in preparing the tax return if you access the IRS and ...
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| buy out of partner in an S Corp | 5/11/2008 |
Q: I am co-owner in an S Corp with another individual. We each own 50%. We pay ourselves salary and ... A: Lately the IRS has issued an IRb warning tax professionals of the need to allocate reasonable ...
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| buy out of partner in an S Corp | 5/10/2008 |
Q: I am co-owner in an S Corp with another individual. We each own 50%. We pay ourselves salary and ... A: (49.9 is ok) Remember the earnings are distributed in an ownership basis so the billing idea is not ...
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| Not recieving tax refunds | 5/9/2008 |
Q: The IRS has reviewed our taxes from 2006 and in that year told us that they haven't received our ... A: Good luck !!
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| 1031 Exchange | 5/5/2008 |
Q: Developers wish to exchange two dilapidated houses for our one functional house (it's not our ... A: moved out you should consider an outright sale as $250,000 /($500,000 if filing a joint return )of ...
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| What is the difference between CCA and depreciation? | 5/5/2008 |
Q: I am studying income tax planning and I am still confuse about the difference between the 2. Below ... A: Mitchell CCA is not used in the US A) as you describe it appears to paralel the US tax code for ...
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| tax law and mileage reimbursement | 5/4/2008 |
Q: This is related to the 8/16/07 reponse for "Mileage Reimbursement and car allowance" response with ... A: 485 per mile then the next question is did employee X get taxable compensation? if the answer to ...
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| 1031 Exchange | 5/4/2008 |
Q: Developers wish to exchange two dilapidated houses for our one functional house (it's not our ... A: The current capital gain tax is 15% but it is set to expire this year so you might be facing a ...
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| llc | 5/3/2008 |
Q: I have an LLC that owns a commercial building. I have another LLC that owns my business. The ... A: Second if your are the single member of your LLCs you report the operations on your 1040 schedules ...
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| Paying for nieces education. | 5/3/2008 |
Q: I am a widower. I am looking to pay for my nieces education to be an Orthodontist. She lives in ... A: Glenn you are to be commended for your generosity but unfortunately I can not think on any but I ...
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| Flight Attendant Deductions | 5/2/2008 |
Q: I was told by my inflight supervisor that my makeup bills as well as my hair and fingernail expenses ... A: Shirley remember all rules have exemptions the cosmetic expenses that exceed what your regular ...
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| taxes not filed for 3 years | 5/1/2008 |
Q: What is the penalty for not filing taxes for 3 years? The question is needed for a friend who is ... A: Kristin normally the IRS would penalize 25%of the tax due plus interest ont he tax and the ...
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| step up basis for property at time of death | 4/30/2008 |
Q: My uncle left me his house,,,,,,,,,,,he paid %76k, in 1976 for it. He has just died. I understand ... A: also you should take into account,that with the existing RE Market ,the FNV may be lower on the date ...
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| Tax Benefits of Individual Law Corporation | 4/29/2008 |
Q: I am a lawyer working at a law firm. I have seen that some of the lawyers at my firm get paid their ... A: Morm Not really because you would be responsible for estimated taxes including providing for 15.2% ...
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| CA taxes due for Florida resident? | 4/29/2008 |
Q: I just received notice from the CA Franchise Tax Board that I owe taxes for 2004. In November 2003, ... A: Lance a As a Fla resident you should not be taxed by CA but you need to straighten this ...
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| how much do I take out? | 4/28/2008 |
Q: I make about 31,000 at my full time job. They take taxes out. I am 1099 part time and make aprox ... A: 000 is subject to the self emploment tax( 15%) Not knowing your filing status I would think you ...
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| Tax Deductions | 4/28/2008 |
Q: I am a little confused about tax deduction with real estate. I know I can deduct certain things ... A: Michael if the house is your own residence you would be able to get a deduction for the interest and ...
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| Business meals & entertainment | 4/25/2008 |
Q: I'm not clear as to the tax deductions in these situations. 1) On occasion, we have employees ... A: you have read correctly for about employer meals provided for the convenience of the employer the ...
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| estate tax | 4/24/2008 |
Q: My wife and I hold a joint tenants title on a house. If I die, the house ownership will pass to her ... A: not estate tax Having said that if she sells the house the year you die she gets to exempt ...
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| LLC & house transfer | 4/23/2008 |
Q: What are the tax consequences of transferring my parents house to me (son), in the state of ... A: however it will require your parents to file a Gift tax return depending on previous gifts and the ...
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| Schedule D | 4/21/2008 |
Q: My understanding of the instructions for 2006 taxes was that it was not necessary to file a Schedule ... A: a sale of a mutual fund or any other investment is reported on a 1099b most mutual funds send out ...
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| income tax forms | 4/18/2008 |
Q: I'd really appreciate any insight into this tax matter. I work construction and was encouraged to ... A: so the two tax returns should be prepared and filed ASAP to avoid serious penalties 5% per month ...
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| income tax forms | 4/16/2008 |
Q: I'd really appreciate any insight into this tax matter. I work construction and was encouraged to ... A: Bill Yes you need to file an extension for the 1040 As to the S corp the extension should have ...
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| Gift tax? | 4/12/2008 |
Q: My husband's grandmother wants to give us $100,000(a huge blessing, we know!) as a downpayment on a ... A: 500 to any one individual without needing to report) so most likely she will have no tax to pay As ...
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| part time resident state taxes | 4/9/2008 |
Q: Mr Roth: I was born and raised in NY. After graduation I moved to Oklahoma with the intent of ... A: Josh unfortunately yes because you are a NY resident, but if you do not want to pay for another ...
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| Working in different states | 4/7/2008 |
Q: My husband and I live and work in MA. My husbands job requires him to travel to different states for ... A: Rashi yes you can file joint returns but your husband would be more likely to file as a non resident ...
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| employed for vet clinic - paid as contract labor is this legal | 4/5/2008 |
Q: I HAVE BEEN A FULL TIME VET TECH..WORKING FOR A VET SINCE 9/07. HE TAKES TAXES OUT ETC....WELL SINCE ... A: Holly as you point out you are not an independent contractor However you are not obligated to ...
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| need to retreive old K1's from business | 4/3/2008 |
Q: I am trying to file personal taxes for 2003, 04 and 05.. Divorce, don't ask! I was told they needed ... A: Stephanie; please give me more info on the structure of the S where you the only stockholder who ...
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| can i start a business if i owe past business taxes? | 4/3/2008 |
Q: I had a business that went under in 2002 due to losing a contract.I owed a lot of federal taxes and ... A: Teresa this is more of a legal question than a tax question but it is very unlikely that the IRS ...
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| LLC | 4/2/2008 |
Q: What are the different ways to withdraw funds from a LLC and what forms or schedules you will need ... A: Michael I take it that your LLC has chosen to be taxed as a partnership else disregard the ...
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| Two Primary Residences on Tax Return? | 4/1/2008 |
Q: My wife and I are considering the following situation -- We currently live and work in California ... A: however if your total mortgages for both homes do not exceed $1,000 000 you can file jointly ...
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| FL home rental | 3/30/2008 |
Q: If I rent my home for 6 month and 1 day is there suppose to be a tax saving for either the renter or ... A: Carol I am not familiar with the FL sales tax law but I do recall that a lease in FL exceeding six ...
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| State taxes for living/working in different states | 3/29/2008 |
Q: I am a full-time resident of Massachusetts but work across the border in CT. I am using tax prep ... A: !!one of the highest taxed states on the other hand CT and PA are no slouches when it comes to ...
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| tax | 3/29/2008 |
Q: My wife sends $200 every month to South America to pay for her nephews' college tuition. Is that tax ... A: AL I take it the nephews are not USA residents if so the answer is no deduction I think you might ...
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| Home Office Deductions | 3/28/2008 |
Q: I am a teleworker for a major corporation and receive a W-2 each year. However, since my principal ... A: William the main characteristic of a home office is meeting clients there. lets try another ...
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| Home Office Deductions | 3/28/2008 |
Q: I am a teleworker for a major corporation and receive a W-2 each year. However, since my principal ... A: William please define what a teleworker does? and when?I have no way to tell what facts you bring ...
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| Pipeline construction damage payment | 3/27/2008 |
Q: looking for a second opinion on this. Pipeline company has easement through portion of my ... A: Kenneth I do not understand how this could be INCOME as it seems that you were being compensated for ...
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| Deductions | 3/26/2008 |
Q: I have recently started working in Texas. I was laid off in Michigan. With no hope of working out ... A: Craig your travel and housing and meals away from home(more than 50 miles) will be deductible ...
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| long term capital loss | 3/25/2008 |
Q: I'd been asking questions on this matter to one of the other accountants on this forum but he has ... A: Mary bottom line take your checkbook add up all the cash you put into both corps. take out your tax ...
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| CD matured, confused about 1099-B | 3/24/2008 |
Q: I'm doing my own taxes via TurboTax this year, and I'm having trouble entering info from a 1099-B ... A: Kerry is the wrong form the burucracy of the banks is "nuts" but since the result is Zero don't ...
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| K-1 if I can write off and how much? | 3/24/2008 |
Q: I was an investor in a motel last year. I had already done my taxes for 2006 and received a K-1 for ... A: Rob you should amend 2006 as if the K1 was received in time. Your legal expense is deductible on ...
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| MD tax, Lived in TX and Moved to PA | 3/22/2008 |
Q: I am a computer consultant. I lived in TX till Aug'07, and then moved to PA in Sep'07. During the ... A: Lets do item 2 as the state taxes reflect the Federal income You are entitled to deduct any expenses ...
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| Form 1099-A | 3/19/2008 |
Q: I helped relatives purchase a property in 2005 property went into foreclosure and I have now ... A: Remember no good dead goes unpunished you should find out from th lender what were they thinking!!
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| Taxes on inherited real estate | 3/18/2008 |
Q: My widowed mother recently died and left her house in San Diego to be divided between my two sisters ... A: Donna my condolences on your mother' passing. If this happened recently you might have a small ...
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| partnership to S-corp effect on individual | 3/17/2008 |
Q: A partnerhsip terminates as of 12/31/07. According to investment papers drawn up by the attornery ... A: Tanya this should result in a tax free transaction the partners contributed the partnership assets ...
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| K1 | 3/17/2008 |
Q: From what I understand, 1098's are due to the taxpayer by 2/1. Is there a deadline that a ... A: You are entitled to file an extension on form 4868 which extends your tax return due date to ...
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| CPA leaves me in the lurch | 3/16/2008 |
Q: My husband and I had used the same Florida CPA for the past six years. Last year (2007) my husband ... A: Kelly This is not common your old CPA is not only unprofessional but seems to lack common sense! ...
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| Income from 2 States | 3/16/2008 |
Q: Ivan, This question is similar to another one you received. I lived and worked in NC, and then ... A: David your New York income is subject to the New York Non-resident income probably reflected on the ...
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| all around earnings and tax | 3/13/2008 |
Q: yes i just started work for a delivery company and i amm a 1099 worker. i am spending about 100-120 ... A: Josh it does matter Only the legal owner can deduct the vehicle expenses (the cost of gas ...
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| all around earnings and tax | 3/13/2008 |
Q: yes i just started work for a delivery company and i amm a 1099 worker. i am spending about 100-120 ... A: Josh if you are using your own vehicle it is most likely you would be better off using the actual ...
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| Taking off Tax Deductions | 3/13/2008 |
Q: I wish to not pay personal federal income tax. There is limited resouce to find information and ... A: I take you mean withholding at the end of the day you still have to pay the income tax due. ...
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| Real Estate deductions | 3/12/2008 |
Q: My income ranges between 500,000 and 1 million annually. I'm attempting to find a way to write off ... A: As I said this is highly technical you should have a professional looking into this (7) Special ...
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| income tax while living in NY and working in VA | 3/11/2008 |
Q: I just accepted a job in Virgina, staying with friends in Maryland but I own a house and still ... A: Haydee most people would much rather pay income tax to any other state than NY (possibly MA has a ...
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| active participation in real estate | 3/11/2008 |
Q: My husband is a real estate professional. We have a huge passive loss carried over from last year. ... A: Grace I am going to use logic rather than what will the IRS think If you were to use the 25K your ...
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| Contract Position | 3/9/2008 |
Q: I recently went to a job interview and the company said they could not afford me as an employee. OK, ... A: Jeane as an Independent contractor they would save the social security tax which you would pay as ...
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| Internships, Contract Labor, and Self-Employment Tax | 3/8/2008 |
Q: I recently worked an internship at a small company for a little under a year. They categorized my ... A: Chris you are correct on your employee status furthermore the IRS takes a dim view of employers ...
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| work in CA, live in ID | 3/7/2008 |
Q: I am a RN, I having a family and home in Idaho, working in CA. What state is considered my tax ... A: Sandra your tax home and and hubby's is ID your travel to CA and other costs in CA are ...
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| Mileage Deduction and Health Ins Premiums K1 | 3/7/2008 |
Q: I have a partnership that I drive for to deliver product in my personal vehicle. Can I deduct the ... A: Larry Yes you can deduct your mileage (except the first trip times two considered commuting) start ...
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| LLC Closing and impact on personal taxes | 3/6/2008 |
Q: Myself and two other members formed an LLC in California in 2005, and dissolved it in 2007. We ... A: Greg if you sell your stock to smebody for $10 you would have a 9990long term capitral loss. PS ...
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| Mileage | 3/4/2008 |
Q: I have a couple of mileage questions. I work as an independant contractor doing house cleaning and ... A: Michelle all the mileage except the round trip to the first place you service would be considered ...
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| LLC Partnership and Capital Contribution | 3/3/2008 |
Q: My mother and I have been partners in an LLC since 1995. Over the years we have each contributed ... A: Frances what was your mother's intention when she put in her additional money? in any event ...
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| Live in NJ, company based in NY, client in MI | 3/1/2008 |
Q: my question is along the lines of living in one state but working in another with the added ... A: Philip in my opinion if you are filing the business income as an individual; your business is ...
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| Are taxes necessary to every nation? | 2/27/2008 |
Q: I would like to know from you whether in your capacity as a Federal and State Income tax specialist ... A: Joseph some nations may not have taxes referred to as such but there is always a need to fund the ...
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| gas deductions | 2/27/2008 |
Q: I'm an employee of a contractor who works for a cable televison company.. My employer provides the ... A: JP you can deduct this expense on line 3 of form 2106 unfortunately this limit your deduction to the ...
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| Employee receiving 1099-MISC | 2/25/2008 |
Q: I earn a salary and a commission from my employer. I must fill out weekly expense reports (they ... A: Jordan I do not know the conditions of your employment But you are correct you are subject to the ...
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| tax write offs | 2/24/2008 |
Q: hey im not sure if you can answer my question but i figured it was worth a shot. I am in the U.S ... A: Matthew First I thank you for your service to our country. I did some research on this at ...
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| 1099-MISC for LLC | 2/18/2008 |
Q: I have an insurance agency. The 1099-MISC for some commission income has been reported to my ... A: Beatrice if you are the only member of the LLC .Then single member LLC reports business income ...
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| Tax bracket | 2/16/2008 |
Q: The 401K accounts are created so employees can put part of their income away and reduce the incone ... A: SUMANA When you retire the tax brackets do not change the reason why you fall in a lower ...
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| tax law | 2/7/2008 |
Q: If I receive a gift for $35,000 from a friend will I need to claim this on my taxes next year ? Will ... A: so as long as your friend has not give any amount adding up to more than at least half a million ...
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| 19 year old dependent | 2/5/2008 |
Q: My son turned 19 on 7/16/2007. He graduated high school May of 2007. He did not choose to go to ... A: Pat you can claim your son as a dependant I take he was a full time student for five months . He ...
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| 2 seperate subjects | 2/4/2008 |
Q: 1stMy mother in law and father in law (divorced) both live with us. My father in law has lived with ... A: Jennie as long as your in laws do not have AGI over $3000 each they qualify as dependants(remember ...
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| Taxes | 1/31/2008 |
Q: Our 17 year old started working in July of 2007. She kept every penny she made and put most of it ... A: 000 she may file SINGLE but then you loose your exemption for her In the later event you ...
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| Did I jump the gun? | 1/29/2008 |
Q: I got my W2 early and was excited about filing electronically for the first time (my father would ... A: Brittany I would say YES!! I APOLOGIZE FOR THE DELAYED ANSWER I was trying to find the best way ...
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| Real Estate | 1/27/2008 |
Q: I appreciate you taking the time to answer my question. I currently have a few rental properties and ... A: also to have liability protection if you decide to go the corporate route you should elect to have ...
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| filing single head of household | 1/25/2008 |
Q: my question is if i am married only four months out of the tax year 2007, can we still both file ... A: you were separated at the end of the year and each of you had at least one child or dependant ...
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| Per diem rates | 1/24/2008 |
Q: I receive per diem for my constant travel from construction job sites around the country. My per ... A: irs.ustreas.gov
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| Business deduction for RV | 1/22/2008 |
Q: I have a full time job and am 5 years away from an early retirement. I started an online retail ... A: Erik vehicle deductions are based on actual business travel so you need to figure what % of your rv ...
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| tax | 1/20/2008 |
Q: who needs to claim higher dependent on pay check me or my wife ?now i claim 3 on my paycheck my ... A: even if you took the highest rate on the withholding charts at $2,000 single it would only result ...
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| mother in law | 1/20/2008 |
Q: my question is that my mother in law moved in with us in 2007, she has no pension or retirement her ... A: One did she live with you more than six months two did she have taxable income less than $3000 (non ...
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| Unreimbursed Personal expenses | 1/19/2008 |
Q: I do our taxes. My husband has a partnership in a business. Because of finances in the business he ... A: While this will give you a smaller deductions it will resul in higher cash flow when the ...
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| tax write offs | 1/19/2008 |
Q: My daughter turned 19 in Nov.07. She did a commercial in March 07 while she was a senior in high ... A: for the rest I will refer you to publication 529 at the IRS site www.irs.ustreas.gov PS probably ...
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| tax liability for type of buiness established | 1/18/2008 |
Q: My son purchased a corp. Dec. 1; was advised to use "sweat equity" to purchase the business, his ... A: PS if the decision is to be an S corp there will be a need to file the election with the by March ...
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| 1099 not done by tax professional | 1/18/2008 |
Q: My finacee recently was employed by a national company. He worked for them also in 2006. He did ... A: if he was a self employed contractor box 3 is correct The preparer does not have to be a ...
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| Dissolving a LLC | 1/17/2008 |
Q: My husband and I recently formed an LLC with another couple (Nov 07) we have $4,000 in income ... A: If you end up paying the $10,000 one half of the amount will be a business bad debt the other half ( ...
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| Kentucky and Missouri Tax Dillema | 1/15/2008 |
Q: This is a really long story...but hopefully you can help! I live in Missouri normally, but have ... A: File a MO part time resident You should be getting money back in both states. good luck with the ...
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| Itemizing | 1/14/2008 |
Q: Ivan. My hubby and I bought our first home in July. So, for the first time, I'm itemizing to see ... A: if you were paying the insurance with after tax dollars it would work as follows: the portion of ...
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| Real estate taxes on earned equity. | 1/13/2008 |
Q: Ivan, we own a home in Michigan which is our main home. We purchased a house in TN some 7 years ago ... A: The exchange rules would only apply to like property such as another house for rental if that is ...
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| Deductions for Court Ordered College Expenses | 1/12/2008 |
Q: In 2007 I was ordered by the Courts to pay for my 19 year old son's college tuition and expenses. He ... A: However unless you can claim your son as a dependant they are unavailable to you. PS you can see ...
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| self employed | 1/11/2008 |
Q: i am a contracted with a company to teach esl in texas. i work 20 hrs/wk and make 25/hr. they do ... A: You will need to file quarterly estimated taxes on form 1040ES Texas does not have an income tax ...
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| year to year basis determination of S-corp | 1/10/2008 |
Q: I am sole shareholder of a very tiny S corp. I have not every had a basis done on my corporation ... A: www.ustreas.gov ask for "home Office" and also form 2106 after you review the above please do not ...
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| Figuring net income | 1/10/2008 |
Q: I am considering changing jobs to be able to stay home more with my children. I am in the process of ... A: Meredith you will be subject to the self employment tax equivalent to employee and employer social ...
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| IRA THEFT | 1/9/2008 |
Q: TO FOLLOW UP A PREVIOUS QUESTION. MY IRA FUNDS WERE STOLEN BY A CURRENTLY INCARCERATED BROKER. THIS ... A: in a case of enbezelment you have choices. Since your cash was never invested in your IRA it seems ...
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| year to year basis determination of S-corp | 1/9/2008 |
Q: I am sole shareholder of a very tiny S corp. I have not every had a basis done on my corporation ... A: Your basis is still the $5,000 you put in originally the only way that will change is if you put in ...
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| tax rates on salary vs. commissions | 1/8/2008 |
Q: If an employee receives salary plus commissions are the commissions paid subject to a higher ... A: keep those commissions up!!
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| recieve money in 2007 but really is back pay owed from 2002,2003,2004 | 1/6/2008 |
Q: 000 on december 31st 2007 but this is back pay owed from 2002,2003,2004. She was told by her boss in ... A: Vicki This appears to be truly 2007 income unless there was a solid reason for your friend to ...
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| Tax savings strategy for a group of independent contractors | 1/6/2008 |
Q: We are a group of radiologists who have full time jobs. On the side, we are working as independent ... A: you may possibly have car expenses traveling to the second job also if you use part of your homes ...
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| Inventory & COGS for small business | 1/5/2008 |
Q: I am preparing taxes for my partner's plumbing business and have some questions about inventory. He ... A: irs.ustreas.gov expenses are incurred when paid. However if you have used the accrual method in ...
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| Partnership tax return - car expenses | 1/4/2008 |
Q: I own a partnership with my sister and we just started recording our business mileage last August ... A: however if you feel that you can prove your travel by other means ,say hotel bills or being able to ...
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| Per Diem and 1099 | 1/3/2008 |
Q: I contract with an engineering company and work 117 miles from home. The company refers to me as a ... A: Ray your understanding is correct however there are other reasons that may be to your advantage ...
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| Per Diem and 1099 | 1/2/2008 |
Q: I contract with an engineering company and work 117 miles from home. The company refers to me as a ... A: Ray between your travel expenses and use of your car for business you should be able to deduct the ...
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| rental property | 1/2/2008 |
Q: I bought a foreclosure last summer to remodel and rent out. I have had a guy "living" there in ... A: Hi mark you will need to exchange 1099Bs you get one for rental income he gets one for repair ...
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| Reimbursed Mileage Deduction | 12/31/2007 |
Q: My wife is a free-lance sign language interpreter. She travels extensively to different sites for ... A: Jmmie any mileage reimbursement up to the per diem limit is not taxable and not reported as income ...
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| CA franchise tax | 12/21/2007 |
Q: We were a foreign corp in CA for one year 03/04. Now, 4 yrs later, CA wants the $800+penalties for ... A: Melisa first sorry about the delay on the answer I was on vacation More important Yes they can and ...
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| mortgage Interest deductions | 12/20/2007 |
Q: I recently purchased a home in Austin, TX. Due to some hits on my credit, a good friend agreed to ... A: first in the future make the payments directly to the bank they do not care as long as they get the ...
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| contract labor and wages | 12/20/2007 |
Q: I work for a company and earn wages. I also clean offices and do it as contract labor. I need to ... A: the good news is that you may be able certain expenses against income such as transportation to get ...
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| W-9 Requirement | 12/20/2007 |
Q: I am an employee of a corporation, and a client has just notified me that I have to submit at W-9 ... A: Marion sometimes corporations go nuts with 1099s on the other hand they can hold up your money!! ...
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| Did not receive Schedule K-1s | 12/19/2007 |
Q: I was a parnter in a business which opened in NOV 2004 and closed in MAR 2006 (thus effectively ... A: since you seem to have all the facts to prepare your tax return . when you file it add a letter to ...
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| theft or capital loss | 12/19/2007 |
Q: I made an investment with a private investment advisor who then transferred my funds to a publid ... A: Paul it sure does especially if the funds were stolen from an IRA funded with pre-tax contributions ...
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| theft or capital loss | 12/17/2007 |
Q: I made an investment with a private investment advisor who then transferred my funds to a publid ... A: Paul you have choices maybe even an ordinary loss!! I would suggest you look up publication 547 ...
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| carry over losses | 12/17/2007 |
Q: What is the purpose of claming a net carry over loss? What are some of the most common reasons they ... A: Jenna net operating loss carryovers occur when a loss form operating a business is not totally ...
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| requesting W-9 form | 12/16/2007 |
Q: I work for a city. The auditor says that he can request a W-9 form even where the payment is less ... A: David yes all payers can request the W9 Back up withholding signature .The $ 600 is for the ...
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| SUV Depreciation -- Follow up | 12/16/2007 |
Q: I would appreciate some further clarification: If I trade in the 2004 Suburban (purchase price ... A: Joseph YES since you are only depreciating the amount of cash paid even though the value if the ...
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| co vehicle liability | 12/16/2007 |
Q: the co i work work provides vehicle which is driven 100% for their business. they are now telling me ... A: 50 per trip to work and home as taxable income. (so if you worked 200 days it would be $600 on your ...
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| Tax Obligation | 12/15/2007 |
Q: I set myself up as a corporation in April of this year because of a job opportunity that was ... A: As far as the Feds you have no problem doing nothing
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| deductions for small businesses on SUVs | 12/15/2007 |
Q: Will a small business still be eligible for a depreciation deduction and eligible for the $25,000 ... A: 2009 But as they say a bird on hand,..... so you might enjoy you new SUV and deducrion sooner ...
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| SUV Depreciation -- Follow up | 12/14/2007 |
Q: I would appreciate some further clarification: If I trade in the 2004 Suburban (purchase price ... A: I need to ask you what is the trade in value of the old SUV, the rules for sale of business ...
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| Capital Gains & LLC | 12/14/2007 |
Q: If you trade stocks / futures in a LLC, how is the taxable LT / ST capital gains offset by business ... A: Bill Capital gains and losses are reported separately Partnership expenses are reported as ...
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| Capital Gains & LLC | 12/13/2007 |
Q: If you trade stocks / futures in a LLC, how is the taxable LT / ST capital gains offset by business ... A: stock,options,futures,etc. are capital gains or losses . depending on what the business expenses are ...
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| SUV Depreciation | 12/12/2007 |
Q: In August, 2004, I purchased a new Chevy Suburban and depreciated the entire cost in that year ... A: if you receive cash it would be a different story but I DO NOT BELIEVE THIS CASE if it is please ...
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| "c" bonuses | 12/12/2007 |
Q: We have a C corporation with one shareholder and a 9/30/07 fiscal year-end. A son and grandson of ... A: Jack If the corporation is on the accrual method of accounting and the Bonus was approved and ...
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| Live in FL, Work in NY | 12/11/2007 |
Q: My permanent residence is Florida, but I just got a long term contract assignment in NY. I'm renting ... A: just kidding done that myself. you do not need to change your address But NY == is your residence ...
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| Sole Proprietor looking at incorporating in Texas | 12/11/2007 |
Q: I am a sole proprietor who runs a remodeling/cabinetry business in Texas. I have also recently ... A: Leo I think the 300K is wrong it should be $3,000 but of course you are right if you pay yourself a ...
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| Sole Proprietor looking at incorporating in Texas | 12/10/2007 |
Q: I am a sole proprietor who runs a remodeling/cabinetry business in Texas. I have also recently ... A: If you incorporate in Texas you will be subject to the Texas Franchise tax as you know Individuals ...
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| Working out of State Taxation | 12/10/2007 |
Q: I took a job in VA, but have kept my legal address as NY since I own a house there and am only ... A: I take you moved this year so you will have to file taxes in both NY and VA when you do this the ...
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| Capital gains taxes and residence in two states | 12/9/2007 |
Q: I would like to sell some stock, but I do not know whether I should do so before the end of the ... A: Amenedo Normally you pay taxes to the state you are a resident at the time of the sale of the ...
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| taxability of employer provided housing | 12/5/2007 |
Q: A not for profit moved to NY in 2006 from Philadelphia. The executive director agreed to come to ... A: Fank thank you for you rating relating to your comment about IRS regsI would point you to ...
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| Corporate Taxes | 12/4/2007 |
Q: I just started a new business and incorporated in April of this year. I'm in New York City. This ... A: Liz you do needs to file as inactive but remember that NYC and NYS have a minimum Franchise taxes ...
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| Leased Vehicle Provided by Company | 12/3/2007 |
Q: My Company provides us with a leased vehicle for some and a $600/month car allowance for others. ... A: The lease is easy the employee gets the car and account for the business use the non business use is ...
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| corporate tax preparation | 12/3/2007 |
Q: With the thoroughness of QuickBooks I am wondering if I need professional tax preparation (I know ... A: if you keep track of the business on Quick Books you can download most of the information required ...
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| capital gains | 12/2/2007 |
Q: I bought 12 acres of raw land 16 months ago for $650,000 in Colorado. I just got it under contract ... A: 750) but because the amount of gain you will be subject to the AMT so I would guess depending on ...
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| Capitol gains on home in probate | 12/1/2007 |
Q: There are 3 children left with 210,000 cash , already split 3 ways. There is also a house just ... A: the future basis for the purchasing sister will be 105,00
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| question on taxes | 11/30/2007 |
Q: sorry to bother you ... I have a wife and she don't work and I have a step son and 2 of my own with ... A: Benjamin your employer is deducting correctly the Federal tax on $30,000 is about $600,your state ...
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| TRAILER FOR BUSINESS | 11/30/2007 |
Q: DOES IT MATTER? ALSO WHEN I BUY IT DO I USE THE BUSINESS CREDIT CARD OR COULD I USE MY PERSONAL ... A: Joey either way is ok but if you register it under the business you have a better chance of ...
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| Maximum Allowances | 11/29/2007 |
Q: What is the maximum number of allowance I should declare on my w 4 for federal and state without the ... A: Alex you need to figure out what your tax will be and adjust your deductions accordingly ask your ...
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| Sale of Primary Residence and Repurchase | 11/28/2007 |
Q: A builder has offered to purchase my home and 2.5 acres to subdivide into 6 lots which can be built ... A: Roy I am afraid that in the above case you would not be able to take the exclusion.The IRS takes a ...
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| Sell rental property | 11/27/2007 |
Q: I sold the rental single fam. home that I bought as my personal residence, moved away and kept as a ... A: Gary You have not provided enough information for me to give you an answer. Your depreciation ...
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| Vioxx Insurance Settlement | 11/26/2007 |
Q: I am wanting to know if my settlement is taxable? I believe that I am getting over 1 million dollars ... A: Your disability has no effect on this You will have to pay the income tax. your generous ...
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| S-Corp as home office | 11/26/2007 |
Q: A client of mine is a single-member LLC in NYS. They currently take the home office deduction. For ... A: ! you are right NYS follows the Federal rules. as to the deduction yes the income would be ...
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| S-Corp as home office | 11/26/2007 |
Q: A client of mine is a single-member LLC in NYS. They currently take the home office deduction. For ... A: in any case the home office deduction would not be lost you would file a Home office form I do not ...
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| Repossessed property | 11/24/2007 |
Q: In 2006, I sold vacant land. I received 25% down payment and I held the mortgage. I did NOT elect ... A: IRS.ustreas.gov relates to your situation it has examples that apply to various situation and your ...
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| LLC Taxes and Payroll | 11/24/2007 |
Q: I am a freelancer that designs websites, programs and markets businesses online. I want to protect ... A: At the beginning of 2008 prior to March 15 you should file an election with the IRS (form 2553) for ...
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| tax on condo | 11/21/2007 |
Q: I have owned a very nice condo (good location in historic building) since May 2004. I initially ... A: Alex you are welcome. as far as the financial implication it depends on various factors: the ...
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| residence sale | 11/20/2007 |
Q: I'm going to be 56 in April when the sale of my second home closes. What qualifies as a primary ... A: any money you give as a contribution will not reduce your CG income however it may affect your ATM ...
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| tax on condo | 11/19/2007 |
Q: I have owned a very nice condo (good location in historic building) since May 2004. I initially ... A: Alex you can not just transfer tax deduction but it seems to me that tax wise you could ...
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| Non-Resident State Taxes | 11/18/2007 |
Q: I work for a company located in New Jersey, but live and work in Texas (I am a permanent resident of ... A: this being November it is the easy way!!! By the way ask your employer if he is reporting you as ...
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| C Corp Capital Gains Primary Residence | 11/17/2007 |
Q: I am selling my primary residence after 14 months. I will earn aprox. $120,000 on the sale and will ... A: (the state tax will mostly depend on the location of the property I would suggest that if you can ...
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| W2 or 1099 and Write Off of Expenses | 11/17/2007 |
Q: Current situation is a Married filing Joint situation with AGI of $150,000 to $180,000. Spouse is ... A: Between being a W2 employee or self employed there is no big difference except as an employee your ...
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| Self Employment tax | 11/13/2007 |
Q: Is bottom-line profit considered earned income in alabama? Would that mean it would not incur ... A: If this is not clear please do not hesitate to follow up
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| SIGNING BONUS REPAYMENT | 11/13/2007 |
Q: I recently took a job starting September 2007 and received a total of $25,000 in signing bonuses. ... A: For the above reason it is much better if you handle in 2007 and avoid complication trying handle ...
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| sales tax | 11/12/2007 |
Q: is there sales tax on items purchased from NC when we live in AZ. A: Jason if you purchased it personally in NC and had it shipped from the store to you in AZ the NC ...
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| soc sec taxes | 11/6/2007 |
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ... A: You are right your husband is an employee and should be receiving a w2 rather than a 1099 ...
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| 1099 State Tax | 10/30/2007 |
Q: Ivan, I currently live in Florida. I work as a consultant for a company in New Jersey in which I ... A: Jayson you will need to file the NJ non resident tax for the income earned in NJ if the amount is ...
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| Incorporation | 10/27/2007 |
Q: I plan on starting an acupuncture practice and a (separate private investigation agency; a little ... A: You can run two businesses out of one corp but make sure you elect( with the IRS) Sub S status so ...
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| Mileage Reimbursement | 10/26/2007 |
Q: Is there a Law - Federal or State of NJ that requires an employer to reimburse for mileage- any ... A: 5 cents per mile or at your actual cost including depreciation which may be higher you should get ...
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| Capitol gains | 10/26/2007 |
Q: My husband and I have been married for 11 years. In 2003, we purchased a condo in Las Vegas, and I ... A: Brandi this is a very interesting question there can only be one principal residence the IRS has ...
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| Investment partnership tax | 10/25/2007 |
Q: I have a couple of questions regarding taxation of investment partnerships. The limited partnership ... A: if all you are doing is investing in stocks maybe you should consider if you need additionally ...
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| short sale tax implications | 10/25/2007 |
Q: Does a short sale qualify under the home sale gain exclusion, in my case since I am married, up to ... A: Miichael since you have not told me which I have included below the information provided by the IRS ...
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| LLC or C-Corp, based on tax savings? | 10/25/2007 |
Q: My husband and I are thinking to start a real estate investment business. We are looking to start ... A: I somewhat agree with you accountant however you should ask the accountant to compute the amount of ...
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| Company Setup- different states | 10/23/2007 |
Q: My sister-in-law and I have started a business and need direction on the correct way to setup and ... A: If you are not worried about liability you can operate as individuals (joint venturers) once you ...
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| Real Estate Parnership Taxation | 10/23/2007 |
Q: I am a owner of a 1% interest in a real estate genral partnership. My k-1 report shows a negative ... A: Your heirs would have a basis of Zero or market value if any! The value of this asset to your ...
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| State Sales Tax Due on Liquidated Inventory | 10/22/2007 |
Q: About 2 1/2 years ago I formed an LLC in Texas in which I am the sole proprietor. My plan was to ... A: I must tell you I am not an expert on sales taxes However I would like you to think and see if ...
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| sole proprietorship | 10/22/2007 |
Q: ! I am going to start a kiosk at a shopping Mall in Delaware selling handbags. The initial leasing ... A: So answer ""partneship.Form 1065 but ifyour LLC is a single member which I believe it is the ...
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| 1099 commissions vs. W-2 salary | 10/22/2007 |
Q: ..I sent this question to another "expert" yesterday and got a reply very quickly, but really was ... A: but thanks for the oportunity to clarify. Of course I meant your interpretation. Any "necessary" ...
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| Equipment donation to church | 10/21/2007 |
Q: We're a FL S-corp, a computer consulting firm. We'd like to make a donation to a church in need - a ... A: Cathy since the equipment is on the corporation books it should be donated by the corp and ...
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| deduction | 10/21/2007 |
Q: A couple of weeks ago I purchased “Energy Star” Pella windows. My understanding is that if I ... A: Al i do not know to which "useless" credit this belongs (useless in the manner of saying why is the ...
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| shareholder loan | 10/20/2007 |
Q: If a person made a business loan to his S Corporation, the S Corporation went out of business and ... A: please do the math if you still have capital left please give me more details to work with. Feel ...
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| 1099 commissions vs. W-2 salary | 10/20/2007 |
Q: ..I sent this question to another "expert" yesterday and got a reply very quickly, but really was ... A: A 100,000 in wages is the same income as a $100,000 in commissions since in both cases you can only ...
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| housing stipen | 10/19/2007 |
Q: I have been a traveling nurse since Jan 06 in california but come from ohio is there a limit on how ... A: as you asked I visited the IRS site www.irs.ustreas.gov on the upper right hand box ask ...
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| Paying off personal debt with business loan | 10/18/2007 |
Q: A recent refinance of rental income property allowed us to take cash from that and pay off a ... A: however if your rental property shows a loss then you need to be familiar with the rental loss ...
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| llc | 10/18/2007 |
Q: I bought 12 acres of land over a year ago for $650,000 in my own name. I gave a good friend an ... A: Norm the important thing here is the holding period if your friend exercises the option he needs to ...
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| FL vacation rental/income tax | 10/18/2007 |
Q: I live in MA and want to purchase a home (or a couple eventually) to rent in FL. Hypothetically, if ... A: which can only be deducted against passive income however you get to carryover There is no tax ...
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| Sub chapter S | 10/17/2007 |
Q: My partner and I own a trucking company in the state of FL. We are a Sub Chapter S corp. A lot of ... A: FIRST MAKE A CASH CALL FROM YOUR PARTNER AND HAVE HIM PUT IN SOME $$$ IF HE BALKS take the check ...
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| Roth IRA contributions | 10/17/2007 |
Q: Im a cadet in the Air Force ROTC and just received a big loan at a very low interest rate. I want to ... A: PS Thank you for your service from an ex airman !!
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| sole proprietorship | 10/16/2007 |
Q: ! I am going to start a kiosk at a shopping Mall in Delaware selling handbags. The initial leasing ... A: Your bigger problem will be the payroll taxes forms 940 941 state unemployment W2s withholding etc ...
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| Sub chapter S | 10/16/2007 |
Q: My partner and I own a trucking company in the state of FL. We are a Sub Chapter S corp. A lot of ... A: Having said that and having seen the bankruptcy process as an employee and claims manager of a large ...
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| Claim for expenses spent by an Independent contractor. | 10/16/2007 |
Q: Mr. X is an independent contractor working in Russia on Per diem basis for a company ABC. Due to the ... A: I can not think of anybody so busy that can not get a receipt furthermore the employer will need to ...
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| Defunct LLC due to embezzlement | 10/14/2007 |
Q: I am an investor that was formed in Jan 07 and is now defunct. All of the funds are gone, the ... A: they do it all the time ,to establish a short term capital loss Good luck do let the LLC know you ...
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| Taxes on residents | 10/14/2007 |
Q: If I become a resident will I be required to pay full taxes on earnings from investment in the ... A: Hi I take it you are from a foreign country thinking to become a US resident the answer is yes but ...
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| Tax Ramifications on Short Sales | 10/12/2007 |
Q: I am a liscensed Real Estate agent in Ca with an enormous amount of Short Sale Listings. My question ... A: but first short sale for real estate is a misnomer it mostly refers to stock there is a saying "he ...
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| taxes on selling a house | 10/12/2007 |
Q: I live in Florida, and my Mom did a quit claim deed adding me to the title of the house as joint ... A: so you would have a gain(or with the way Real Estate Home values have gone in Florida probaly ...
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| LLC Taxes | 10/11/2007 |
Q: I currently have a home based LLC formed in FL. My question is how would I file my taxes for myself ... A: The following does not relate to your question but it may be helpful being in FL you have no income ...
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| what is deductable for dependent in college | 10/10/2007 |
Q: Our son,18 is a freshman in college. He has 2 Stafford loans designated for registration ($3,500). ... A: the hope credit or the lifetime learning deduction what I suggest is that you look up the IRS site ...
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| Joint cd | 10/10/2007 |
Q: I live in New Jersey, I have an older parents, lattly, my father told me, that he wants to add my ... A: PS I am not an attorney but in a layman's view if the concern is because of health consideration or ...
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| C Corp, S Corp, or LLC also paying self | 10/9/2007 |
Q: Set up now as C-corp. I have 40%, wife 40%, sister 20%. Making $$$ and spending it on marketing, ... A: Rick I understand the import of your question to establish a Salary Your best bet is to elect for ...
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| signing of a return | 10/9/2007 |
Q: My husband was in a business in which the majority stockholder let the business fail. Now that ... A: if they go into bankruptcy the trustee will be required to file tax returns. Meantime if you reach ...
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| coporate tax | 10/9/2007 |
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