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About Ivan Roth
(Top Expert on this page)

Expertise
Federal and State Income taxes I do tax returns for partnerships and C corporations I am well versed with State Franchise taxes for CA, CT, FL,NY,TN,TX.

Experience
Eight years as tax manger for a real estate company

Publications
Florida CPA

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

Questions Answered By Expert Ivan Roth
In Category Tax Law (Questions About Taxes)

Subject	Date Asked

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 ...
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:
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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:
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 !!!!
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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% ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 !!
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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% ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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!!
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 ...
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 ...
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 ...
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! ...
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 ...
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 ...
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 ...
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. ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ( ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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!!
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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!! ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
"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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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" ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 !!
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
coporate tax	10/9/2007