Tax Law (Questions About Taxes) - Corporate Law - Business

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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

business v. commuting mileage & related expenses	11/11/2009
Q: My wife and I are independent contractors providing consulting and mgmt. services to small cities ... A: also any over night stay on your trips would be deductible as well as your meals if you stay ...
Business Travel Expenses	11/8/2009
Q: The situation: I am a sole propietor and work in a city, however have been traveling quite a bit to ... A: if this location is less than 50 miles from your home it would not qualify as a temporary ...
Tax Responsibilty	11/2/2009
Q: I am employed in Alaska full-time, and spend sixty percent of the year in Alaska, and the rest of ... A: however if you are trapped by the warm weather and spend more than 182 days in CA you will be ...
tax implications of partnership loan interest	10/20/2009
Q: If a partner finances the business though a loan and collects interest on that loan, is the interest ... A: ie, if the partner borowed the funds and is taking an interest deduction.
business taxes	10/9/2009
Q: i am thinking about starting a dba (sole proprietorship) home improvement company. this will be a ... A: Yes you need to have a proofit then you must file quarterly estimated taxes and add 15% for the self ...
Corporate Apartment	9/16/2009
Q: My spouse operates a one-person LLC 150 miles from Washington, D.C. The tax home is 150 miles from ... A: providing housing can get pretty complicated as having the use of the corporate apartment may cause ...
Perdiem's on your paycheck	9/1/2009
Q: My husband has a construction job that recently started putting their perdiem's on his paycheck as ... A: It appears that the company has decided that it will be up to the recipient to determine their tax ...
Double taxation of earnings	8/28/2009
Q: I am a VA resident who flies to CA weekly on a work assignment. My employer apportioned some of my ... A: good luck Compute all credits for taxes paid to other states on Schedule OSC and enter the total ...
S-Corp owner medical costs	8/25/2009
Q: My question is regarding medical insurance premiums/costs paid by the company on behalf of a greater ... A: !! what incorrect hapens is that S corp deducts the health insurance paid on behalf of the 2% ...
S-Corp owner medical costs	8/25/2009
Q: My question is regarding medical insurance premiums/costs paid by the company on behalf of a greater ... A: however it may still be deductible on your 1040 see below from publication 539 of the ...
S Corp Individual Return	8/20/2009
Q: My friend is an S Corp and is trying to do his taxes by himself. At the end of 2008 he lost ... A: Hi Ann the compensation would go under Salaries and wages the loss normally would be deductible as ...
moved to another state, wife maintaining permanent residence in NY	8/13/2009
Q: We moved to Rhode Island in March, this is now my permanent residence, my wife's is still in NY and ... A: as you say you will be subject to NY taxes only for the period you resided in NY however your and ...
Real Estate proceeds for small business capital	8/6/2009
Q: I have a new business and am selling my house to help finance it, but i have a few questions. I ... A: 1) 110k 2 NO 3) makes no difference (this provisition has been replaced ) see my comment above 4) ...
Spreading business losses over multiple years?	8/3/2009
Q: Is it possible (or smart?) to spread business losses over multiple years? I own a LLC that is just ... A: if you have basis to deduct your loses you are ok with the ordinary loss as long as they are not ...
Per deim	8/1/2009
Q: I work for a company out of Texas and I travel to our sister company in Dubai to work. When I first ... A: and the actual expense was at or more than the per diem amount I do not know what the amount is ...
Taxes	7/31/2009
Q: I started investing last year at the exact wrong time. I invested around 4000 dollars into the ... A: on short trades it is the date when you cover your shorts that determines what year you report gain ...
C-Corp Owner's pay	7/30/2009
Q: My husband started a C-Corp and we are trying to decide how he should be paid. Can he just take ... A: but when the salary is paid remember to withhold and pay the taxes due I suggest you go to ...
small business taxes	7/29/2009
Q: If I brought in (Grossed) 12,000.00 in one year in a cleaning service, with no employees, would I ... A: but remember that when you retire or become disabled your benefits will be based on your earnings. ...
subchapter S	7/28/2009
Q: I'm a sole proprietor earning about 150K (adjusted gross income)doing home repairs with no ... A: I would think that even as an S corp your earnings would be considered all from self employment, ...
Do I need to incorporate in NJ	7/20/2009
Q: I have an S-corp in New York (home office) but I, as a consultant employed by my corporation, do ... A: remember the minimum tax (you should consider terminating your NY corp and incorporate in NJ if ...
General Partnership tax in CA	7/15/2009
Q: we have a general partnership and were just alerted by CA that we owe them $800. I have seen that ... A: Filing Guidelines Every partnership that engages in a trade or business in California or earns ...
Telecommuting Income Taxes	7/13/2009
Q: I recently moved from Washington State to California. My employer has let me "work from home" ... A: but CA has other nice things to offer. Taxwise any income you earn while in CA is subject to the ...
MileageReimbursement and taxes	7/13/2009
Q: My husband has been working a seasonal position (May- Sept) and uses his own vehicle to travel from ... A: However you have a good point the best way for you to handle this is by using form 4562"employee ...
Stipend Tax Ramifications	7/12/2009
Q: I received an offer for employment at a salary that was a few thousand dollars below my stated ... A: If for some reason, so as to not show up on payroll record, your employer might issue a 1099 you ...
partner buy out from spouse	7/11/2009
Q: i and my wife formed a partnership with another couple to buy and rent a townhome. we each owned ... A: be sure that you dot all your is and cross your ts The final K1 issued to your ex should be ...
Moving out of state	7/8/2009
Q: I am moving to Florida permanently, however my NC employer has asked me to work for them remotely ... A: Hi Angela if you spent more than 183(it seems you are very close) days in NC you would be considered ...
taxation of proceeds from title insurance claim	7/8/2009
Q: My company recently bought property located next to a body of water. We later discovered that the ... A: irsustreas.gov Topic 507 - Casualty and Theft Losses Generally you may deduct losses to your home, ...
non-resident state source income	7/6/2009
Q: I am an artist and reside and work in Colorado. In Iowa, two parties, one private, one a ... A: you are right this would be similar to buying two cars and saying GM manufacturing was subject to ...
Indiana S-corporation shares give back	6/29/2009
Q: I am a minority shareholder (11.1%) in an Indiana sub-chapter S-corporation and would like to return ... A: you are part owner of a successful corporation( albeit minority, but even so you have legal ...
Federal 2009 Tax Credit	6/26/2009
Q: Roth: I am in the final stages of selling a manufactured home that has been parked in a ... A: So if you meet all the other requirements of a first time home buyer your new home could qualify ...
Taxes on chapter s business sale	6/25/2009
Q: I want to keep as much of the sale as I can. What tax advise can you give A: However there are special consideration for assets that go with the transfer such as inventories ...
Deducting estimated taxes from Returns	6/24/2009
Q: Good Afternoon, This is, I think, a relatively simple question I cannot seem to get my mind ... A: first any taxes you withold from your employee are the employeee's prpoperty and so you have no ...
Tx resident with desire for extensive travel	6/22/2009
Q: Our homestead is in Tx. Our business is based in Tx. Our bank accounts and mailing addresses are in ... A: but remember if you earn income derived from a state you do not reside in you may still subject to ...
interest expense	6/18/2009
Q: is the interest on a loan to purchase a work/business vehicle deductible? A: but if the business use exceeds 50% of the use the business could consider leasing a vehicle. ...
mileage/time compensation	6/18/2009
Q: If I am paid for some of my drive time(my hourly rate for some,not all, of the time it takes me to ... A: to and from your Job. but say this was from your first job to your second job then it would be ...
Simplifying taxes on shared rental property	6/11/2009
Q: Good Morning. My husband (NH resident, homeowner, filing taxes jointly) and his brother (CA ... A: if you want to be more formal you could file a form 1065 as a partnership and distribute income and ...
Filing a corperate tax return late	6/10/2009
Q: I am filing a corporate tax return for the first time, and it will be late. This is the first return ... A: Your problem is that you can only file an S election no later than 75 days from the begiming of the ...
house tax	6/10/2009
Q: I and my sister bought the house for 3 year. Her name is on the deed and on the loan but i'm the one ... A: both would require that you own the property. for more on this you can look up home mortgage expense ...
Corporate Housing Tax Laws	6/9/2009
Q: If a small corporation has offered me a position to come work for them and it's technically 75 miles ... A: if it is temporary housing it may not be taxable to you however if the housing is intended to be ...
Charging taxes	6/5/2009
Q: I have a cabinet shop in TX. I charge lump sum contracts and pay the taxes on all of my materials. ... A: having said that you do need to have valid sales tax certificates and file sales tax returns ...
Sale of limited partnership interest	6/4/2009
Q: We sold a limited partnership interest. The partnership was essentially worthless, yielding only ... A: now it gets complicated it seems that you have received pass through losses and cash in the past, ...
1120 and shareholder loans	6/3/2009
Q: If a C corp makes a loan to a shareholder it becomes an asset, but can the loan be deducted (the ... A: but if not properly documented and Bearing appropriate interest rates they could be considered ...
State Income Tax for California and New York	6/3/2009
Q: I am currently a New York State resident working in Los Angeles California as a summer associate in ... A: before April 15,2010 you will need to File US form 1040, and NY income tax returns as well as CA non ...
second home	5/22/2009
Q: Mr. Roth: I have a primary residence and no plans on selling it. I have a mortgage on it and I ... A: other than the piece under the motor home, would not qualify but also remember there are ...
State Tax - NY	5/18/2009
Q: I live in the State of NJ, but work in NYC. I also have a part time job in NJ, but work full time in ... A: also use IT 02 if you have w2 forms while it is a complicated process it will not result in taxation ...
CA residency tax	5/17/2009
Q: I work in TN for a global company. I can buy a house there or do whatever is necessary to establish ... A: depending on circumstances and time spent in that state, income earned by your wife and income you ...
Capital gain tax	5/16/2009
Q: I owned commercial land since may 2005, paid 350000.00 in full. I have buyer for 1200000.00. I have ... A: the form is pretty clear I figure in the first year you have a 125,000 gain taxed at 15% ==22,500 ...
Personal Service Corporation	5/8/2009
Q: We want to know whetehr we fall into the Personal Servcie Corporation -Our main business activity ... A: A personal holding company is: Defined in Internal Revenue Code section 542. A personal holding ...
debt foregiveness	5/6/2009
Q: AZ home may go to short sale. We will get around 250,000. Original purchase was 239,000, but took ... A: You The first 500,000 gain is excluded because because for both of you it was your principal ...
Did not recieve Sch K follow up ??	4/6/2009
Q: First off, thank you very much for the way you answered my ... A: for luck ,with you extension form 4868 you will be ok if you get your k1 soon you won't need to ...
Per diem	4/4/2009
Q: My husband and I are residents of Utah. He has been working in Virginia since November. He is paid ... A: if he is employed by the company he will be considered a permanent employee not eligible for per ...
1099B AND CA STATE TAX	4/4/2009
Q: Good Morning, I just received a letter from the state of California informing me I need to pay an ... A: Fitzpatrick remember the 1099B reports the proceeds of a sale of assets it does not report gain ...
IRA 401k early withdraw	4/3/2009
Q: We are being transferred to CA from IL for my wife's job. The cost of housing is considerable higher ... A: Aaron I am sorry this took so long to answer I was hopping to find an answer that would work for ...
travel expenses in a partnership	4/3/2009
Q: My sister and I are partners in a business and we do trade shows a few times a year. Where and how ... A: But you can use the rules the GSA uses to compensate federal employees these rules can be found at ...
Did not receive Schedule K	4/3/2009
Q: My husband worked for a company where he was contractually a 10% shareholder. January 2008 they ... A: you can file form 4868 for an automatic six month extension if you pay what you think you will owe ...
married but live in different states	4/2/2009
Q: My wife and I move from CA to PA in July, 2008. We rented a room in PA and she worked in PA for the ... A: i take the rent is cheaper in NJ otherwise you would be staying in NY thr only connection to NJ is ...
married but live in different states	4/1/2009
Q: My wife and I move from CA to PA in July, 2008. We rented a room in PA and she worked in PA for the ... A: Wow!!! you both are a part time CA residents you both can be PA residents or NJ your pick ( likely ...
Section 351 Transfer of Goodwill	4/1/2009
Q: I have just incorporated my long-running sole proprietorship in California, and am preparing to ... A: What is the benefit of capitalizing goodwill as compared to keeping it to get future capital gains ...
Expense Write Off Question...	3/31/2009
Q: I have started my own Sole Proprietorship and am relatively new to the part where I do my taxes. I ... A: if you use your car for business you may be able to deduct expenses including depreciation I suggest ...
1099-C and Timeshare	3/30/2009
Q: My husband and I did a "voluntary voneyence in lieu of foreclosure" in 4/2008 on our timeshare ... A: irs.ustreas.gov Topic 431 - Canceled Debt – Is it Taxable or Not? In general, if a debt for which ...
commercial real estate tax question	3/29/2009
Q: I purchased a Net leased commercial real estate building in partnership with a friend in an LLC ... A: as there is not a simple yes or no answer I have copied below the relevant section of publication ...
LLC Tax Return	3/28/2009
Q: Ivan, In 2001 I formed an LLC with some investors and partners for the purpose of producing an ... A: I am not an attorney I am not be able to give you legal advice. Taxwise if you are in CA or most ...
Tax real estate law	3/28/2009
Q: Is the 500,000 exemption for selling a home every two years as a primary residence without tax ... A: 000 for each individual that qualifies for the primary residence exemption by the way to qualify ...
NYC Tax on S-Corps	3/28/2009
Q: I have an S-corp (I am the single shareholder). I started the S-Corp a few months ago, so I was ... A: you may consider changing to an LLC that comes up with NYS taxes other than deducting deducting ...
state tax	3/27/2009
Q: I am a resident of Pennsylvania and go to school in Massachusetts. Over the course of the past ... A: However as to your earnings in MA you would need to file MA non resident, if your earnings are more ...
Rental loss creates negative AGI	3/26/2009
Q: I was unemployed throughout 2008. I changed my home to rental use in May 2008, finally renting it in ... A: remember you loss will be used against future rental profits I see no reason to do a schedule A if ...
MLP 2008 K-1, specifically Amerigas	3/25/2009
Q: I own shares in several MLPs, including Amerigas (APU), which I've held since 2001. Box #1 on the ... A: BUT in this day an age it still is nice to have a business that can produce positive cash flow, ...
inheired money / annunity investment	3/22/2009
Q: I inheirted some monies several years ago (no tax liability) which was invested in an anunity. I'm ... A: Hi Frances Annuity payments normally carry some capital returm but mostly consist of taxable ...
K-1 and Schedule C	3/17/2009
Q: I have received a K-1 from a LLC and I have been actively participating in the LLC's business ... A: The guaranteed payment goes on schedule C as to the expenses you will need to fil in form 2106 for ...
State back tax problem	3/15/2009
Q: I owe NYS about 11K in back taxes for failure to file for the years 1993 and 1994. I honestly ... A: However and I am not an attorney so I can not give you legal advice but I think that in this case ...
s corp income	3/12/2009
Q: My husband and I formed an s corp and bought a medical clinic in August. Part of the purchase ... A: Since you have accounts receivable you must use the accrual basis PS I do not understand why you ...
First Time Homebuyer Credit	3/11/2009
Q: My wife bought a house in October of 2006. She bought it together with her sister; they thought they ... A: IRS.ustreas.gov First-Time Homebuyer Credit Those who bought a main home recently or are ...
Tax of debt forgiveness	3/9/2009
Q: I purchased a home as a primary residence in Las Vegas, NV in Feb 2006 and lived in the home until I ... A: including the kind of liability so I copied below the information from the IRS site after you review ...
section 179	3/9/2009
Q: I have started up a side job in photography. In 2008, I spent a lot of timeand money purchasing ... A: The three of five years is not exactly correct if your motive is to make a profit you may have ...
1099C involving estate	3/8/2009
Q: My passed in 2005. She had a credit card that I was unaware of for$5519.84. She had no estate and ... A: Can I exclude cancellation of credit card debt? In some cases, yes. Nonbusiness credit card debt ...
first time homebuyer credit	3/7/2009
Q: I need to know if I can qualify for the $8000 first time homebuyer tax credit. I am married and my ... A: irs.ustreas.gov as to how to interpret first time home buyer read below Also I have included ...
How to handle different businesses under the umbrella of a 'C' corporation?	3/5/2009
Q: I am the owner of a 'C' corporation that I have been using for my freelance software consulting for ... A: and as to the new business it might be simpler to keep it separate from the existing business ...
joint return as a dependant	3/4/2009
Q: My soon to be ex husband and I filed a joint return in 2007. I had not worked since 2002 so he had ... A: Hi Enna when you signed the joint return you assumed responsibility howevr the IRS has rules ...
State Tax	3/3/2009
Q: I am a legal resident of FL. I have FL license and an apt in FL. I am an employee of a IL based ... A: Hi Naveen for state tax return you are a NC RESIDENT by spending more than one year you are now NC ...
gifting cash	3/1/2009
Q: i want to gift a large amount of cash to my son. rather than give him $250k and him receive a tax ... A: HI David the tax is your responsibility you need to file a gift tax return instead of leaving the ...
State tax	2/28/2009
Q: During 2008, I lived and worked in Virginia and my wife lived and worked in Michigan. I intend to ... A: In MI your wife will file a Joint Return even if she is the only one that reports income in MI The ...
taxes	2/27/2009
Q: Where can I get accurate info about the tax deduction for new car buyers under the stimulus bill? ... A: irs.ustreas.gov PS I would disagree about the Car dealer since it is their interest to know or you ...
inherited house sale - loss	2/25/2009
Q: My mother died 07/2007. Her house was deeded to me in 04/2008 - house sold on 12/16/2008. The house ... A: By the way your research was flawless I hope you have capital gains if not it is going to take a ...
Untruth on tax return.	2/24/2009
Q: How do I go about correcting information I withheld from my 2007 state return? I used TurboTax and ... A: you need to file a NYS income tax form there will be some penalty and interest you do not need a ...
Filing Taxes post Paid Internship	2/24/2009
Q: I am a resident of PA, but am going to school in Ohio. I had a paid internship in Ohio, where we ... A: 3 FOR SELF EMPLOYMENT TAX as an employee it would be half since the employer would pay the other ...
Rental Property	2/23/2009
Q: I live in MD. My friend and I decided to buy a house in FL in Jan. 2008. My friend, who lives in FL, ... A: however you friend is required to file schedule E and if she actively manages the property she may ...
small business line debt cancellation	2/20/2009
Q: Sold business was left with a loan. Have a net operating loss on previous 2007 taxes. Can I avoid ... A: the IRS instructions seem to be clear see below Use Part I of Form 982 to indicate why any amount ...
retail clothing inventory for tax purposes	2/20/2009
Q: I have read the IRS pubs, I am still not sure. I have a retail clothing, first year and am using ... A: If you had a loss last year and expect to have a profit you might be better off using Inventory ...
1120	2/19/2009
Q: my friend has a sub s corp. last year they stopped doing business, all inventory was either left ... A: it would be wise to file it in the future to report any expenses until such time that there are ...
1099-misc question	2/19/2009
Q: My company went out of business in 2007. Its assets were taken over by another entity that sold the ... A: Ask the payor to explain how you fit or else give you a corrected 1099 showing no amount in box3 (i ...
Capital gains tax exclusion	2/17/2009
Q: My wife and I own a home that we have never lived in and has been a rental for the last 30 years. ... A: rather then that and allowed depreciation I should have said " excluding depreciation I still do ...
tax question re insurance payment	2/16/2009
Q: My parents, who are in their 80s, lost their house in Fl due to a fire. Their ins. co paid them for ... A: 000 may have been tax exempt in this case please consult a paid tax professional who may be able ...
cost basis on capital gains	2/15/2009
Q: What can be included in the cost basis when a lot is purchased and a home is built on the same lot ... A: if they had not been previously expensed. Once the construction is completed the items are expensed ...
I need help finding out about taxes.	2/9/2009
Q: I just started a new job as an independent agent. I will be making 12.00 an hr. I am suppose to pay ... A: But whatever you calculate to be you quarterly income tax payment you would need to add 15% of your ...
dependent claims	2/9/2009
Q: After our son and daughter-in-law were arrested we were given guardianship of our granddaughter. ... A: Residency Test To meet this test, your child must have lived with you for more than half of the ...
teen mother	1/29/2009
Q: ok i am 16 i have an 8 month old. i made a little over 3,000 dollars in 2008. My parents want to ... A: you could but why? you do not have enough income to benefit from the deductions if there were ...
1099-C Cancellation of Debt	1/27/2009
Q: We did a short sale of our first house in Los Banos,CA. The Amount of debt canceled was 84,914.56 ... A: IRS Debt forgivness
NY State Tax	1/26/2009
Q: Ivan, I work part-time for a Real Estate auction company. The company is headquartered in CA, but ... A: Now you need to tell me how many days you spent in NY before you moved to CA if the answer is ...
are you considered independent at age 17 and if you have a son?	1/26/2009
Q: My boyfriend and I live with his parents. My boyfriend had just received his W2 and was planing on ... A: must be 25 years old to qualify. So there is no reason for him to file as head of household, ...
own home and rent	1/25/2009
Q: My husband is having to work 2 1/2 hours away from me and the family. He rents a town house and ... A: Generally, your tax home is the entire city or general area where your main place of business or ...
NY State Tax	1/23/2009
Q: Ivan, I work part-time for a Real Estate auction company. The company is headquartered in CA, but ... A: PS thank you for your review But I do not understand your review for knowledge I assumed that ...
Tax Return and Investments	1/18/2009
Q: I have a couple questions about filing my taxes and investing: 1) I bought some ETFs and Mutual ... A: When you sell the EFS or mutual funds you will get a 1099b that information and your cost will be ...
capital loss	1/14/2009
Q: I have owned a rental property of 4 years. If I sell it for a loss of $200,000 can I deduct some or ... A: you have a long term capital loss that can be offset against capital gains or certain suspended ...
w-2	1/10/2009
Q: Can employer portion of medical insurance be added to gross income on w-2. This is the first time ... A: if the plan is not qualified then the premiums would result in taxable income, your employer should ...
Capital Gain on a 1031 Exchanged Property	1/8/2009
Q: Mr. Roth....hopefully you can help me understand how capital gains will be calculated on a property ... A: irs.ustreas.gov filing out page 2 columns A&B If you still have questions after completing the ...
1099 per diem and self employment tax	1/5/2009
Q: I started working on 1099 as a consultant since Oct 2008. I have a 6 month contract and I get paid ... A: Your per diem for Sunday would be supper and the hotel. Air travel as well as other transportation ...
Mileage business/personal use of car	1/4/2009
Q: I do not have to report to any office. I am a sales rep and my employer requires me to use my ... A: But you may be able to justify some minor expense for use of your home for business the IRS is very ...
Contract Labor To Employ with Deductions	1/3/2009
Q: I have been self employed and paid as contract labor with no taxes with held for 30 years. I have ... A: The good news is that you do not end up paying your share of the self employment tax , the employer ...
Property Sale; Reduced Maximum Exemption	1/2/2009
Q: I am a citizen of Canada but worked in -California USA from Jan-2001 to Jan-2004 (with H1B Visa). ... A: I am not aware of Specific CA rules but normally they follow the Feds but the CA examiner wouldbe ...
Sales and Use Tax	1/1/2009
Q: My husband and I have a small business (S Corp) and we have fallen behind in paying our sales and ... A: I mean that on audit before you are required to pay there would be an appeals process and finally ...
Sales and Use Tax	12/31/2008
Q: My husband and I have a small business (S Corp) and we have fallen behind in paying our sales and ... A: and remember to finalize anything adverse they have to convince a judge and you have appeal rights ...
Sales and Use Tax	12/31/2008
Q: My husband and I have a small business (S Corp) and we have fallen behind in paying our sales and ... A: Having said that sales taxes are "trust funds" so they are considered personal liability (and bear ...
Legal Settlement	12/29/2008
Q: Our company is an s-corp and was recently involved in a non-compete lawsuit. We settled the dispute ... A: irs.ustreas.gov ask for Non Compete Happy New year
Tricky State Tax Question	12/24/2008
Q: For the first half of 2008 I lived in North Carolina and will pay state taxes there. In the middle ... A: As Far as I can tell you are only subject to the Federal taxes and if you are out of the country for ...
Student State of Residency	12/16/2008
Q: I am a student attending college in Texas, but I am originally from Colorado. I have had jobs in ... A: if you worked in CO you are subject to the Non resident earnings in CO but i would guess that unless ...
marital status for tax returm	12/16/2008
Q: Ivan, I married to a women with a child this July. However, by the end of the year we still live ... A: as to the states you will need to file in both and allocate income to each is up to you to ...
irs audit, corp and personal	12/13/2008
Q: I'm being audited without representation. The agents (2) are asking detailed questions about the ... A: the question about time devoted to business relates to the adequacy or in this case inadequacy of ...
Are S-Corp expenses tax deductible?	12/12/2008
Q: Very simpleI and 2 other people formed a California C-Corp (started as S-Corp) in September and are ... A: Hi Dave I am confused you don't start an S Corp you elect the status if you have not elected all ...
S Corp tax owed for 06 personal liability	12/8/2008
Q: My one man S Corp owes Calif State Taxes of $2000.00 for 2006. This corp has since closed down, gone ... A: but from experience CA tends to be very persistent in trying to collect their franchise taxes it ...
consolidating mortgage from rental property to primary residence	12/7/2008
Q: we have two 15 year fixed mortgages, one for primary residence and one on a rental property. we ... A: if any, also you may want to allocate some interest expense to the rental you should consult with an ...
C-corp deductions	12/2/2008
Q: I just set up a c-corp and hired myself as an employee. Here are my questions: 1) How do I deduct ... A: go to the IRS and look up Subchapter S Election and instructions !! C corp are not advantageous to ...
California Tax question	11/29/2008
Q: I am an IT consultant and I keep moving places on different assignments. My employer is located in ... A: For Now file a change of address with the Feds I suppose your primary residence is in NJ
IRA cash out	11/24/2008
Q: I am married, 62 1/2 and plan on working 5 to 7 more years. I want to cash out my IRA and want to ... A: Catherine my opinion is that you need to know how much risk you can stand at this point I am not as ...
IRA cash out	11/24/2008
Q: I am married, 62 1/2 and plan on working 5 to 7 more years. I want to cash out my IRA and want to ... A: however remember there still are ordinary income taxes, so if you take the money over two years say ...
From 1099 and Start-up Medical Practice Loan Forgiveness	11/20/2008
Q: What are the tax implications of a 'loan forgiveness' in physician recruitment agreements. The ... A: Hi Doctor this seems to be a complicated arrangement but if you are running a practice and paying ...
NYS Corporation	11/18/2008
Q: How is a NYS resident taxed on the following Salary from a NYS Corporation Gain from sale of land ... A: As to the items they are all taxed as ordinary income by NYS ( if you live in NYC the S income is ...
Taxes on investment	11/17/2008
Q: I am considering an investment in a small business owned by a friend. The arrangement would involve ... A: 9 ownership in any one year terminates the S Corp so watch it!!
Partnership Taxes	11/17/2008
Q: Ivan I am a member of an investment club (partnership). We are considering selling a losing stock ... A: As an estimate for the group benefit I would use 15% to 20%
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
Q: I registered a corp in New York State. It's a C-corp. I don't have any shareholders, do I need to ... A: second C corporations do not file k1s k1S are filed by Subchapter S corporations please note that ...
Partnership LLC and real estate investment	10/7/2007
Q: Ivan, My wife and I recently moved to a new state and decided to retain our home as a rental and ... A: Wes Why would anybody do an LLC with the wife( that is like kissing THE sister) fortunately the IRS ...
Entity Taxes	10/7/2007
Q: I have been a successful options trader for some time now and have decided choose an entity to use ... A: Since you are dealing in stocks you should be able to negotiate a margin loan with your broker but ...
Entity Taxes	10/6/2007
Q: I have been a successful options trader for some time now and have decided choose an entity to use ... A: unless you need liability protection. C corporations are taxed at 33% rate and do not get ...
tax exemptions & home repairs	10/6/2007
Q: My mom is selling her house. She is going to have a profit of over $250,000. She bought the house ... A: However if improvements were made after acquisition such as a new roof, window replacements or other ...
Business trip/cruise	10/4/2007
Q: My son collects cable boxes for a company in Wichita,Ks.they are requiring their employee's to go on ... A: Ryan it sounds somewhat unfair It appears that they are giving him some income on the portion of ...
Roth Conversion	10/3/2007
Q: My dad, 51, is an ex-consultant who has started his own business over the past year. He expects to ... A: I Suggest that you get a copy of the 2210 at the WWW.irs.ustreas.gov and do the calculation now to ...
self-employment tax	10/3/2007
Q: I am a self-employed Real Estate Agent, I was wondering at what point would it be beneficial to ... A: I would like to add to my pervious answer that any deductions you get on a sub S are also available ...
1040 ES	10/3/2007
Q: I have a couple different questions. I just recently filed my 2006 taxes through Turbotax. I am ... A: Ed the bottom line is if you have withholding taxes and pay estimated taxes so the total equals ...
IRA distribution for Education	10/1/2007
Q: I have some money in 1 traditional and one Roth IRA that I would like to use now for education ... A: if you think you can repay you might consider borrowing and paying interest to your IRA discuss this ...
TX dealer inventory tax charge	9/29/2007
Q: Just bgt a new Toyota. Purch agreement had line for "state sales tax." I did not question that. ... A: !! I have no idea but the amount seems to be too small to sweat it if the car and price is ok ...
change in NY tax law?	9/28/2007
Q: I am a teacher in NY and in the past I have selected a 26 pay check cycle. At the end of the school ... A: you might be thinking that instead of considering your pay check as a one period check say monthly ...
Florida & California Business incorporation + Doctor	9/28/2007
Q: Can I incorporate my Anesthesia Medical Group as an LLC in Florida (where I own a residence & have a ... A: LLCs are not available to professional practices also in CA LLCs are taxed more than corporations ...
Income Tax	9/28/2007
Q: I live in California, but work in Nevada. If I buy or rent a home in Nevada to claim it as my ... A: Rob for tax purposes residence is where you live ie sleep and maintain a residence,not work so if ...
Two States Taxation	9/26/2007
Q: I live in SC but work in NC. I was taxed by both states. Say for example my earnings was $34,000 ... A: do you participate in any pension plans or makes? or other employer plans? Do not despear we will ...
State income tax	9/23/2007
Q: I am a NY resident. I am in the military, living out of state and NY repays me all of my state ... A: Brian all I can say is ouch!! however remember that what you would pay RI will result in a lower NY ...
State income tax	9/21/2007
Q: I am a NY resident. I am in the military, living out of state and NY repays me all of my state ... A: Brian the answer is simply file "married filing separately" that way you have no obligation to RI ...
early IRA distribution	9/20/2007
Q: Roth, I would like to access the money in my Roth-IRA. However, I am only 36 years old. Is an early ... A: enjoy the next 23 years building up your retirement nest and the other pleasures of life!!
Loan to LLC	9/18/2007
Q: I have a new LLC that will be filing a 1065. I'm going to be funding the LLC business account with ... A: The portion of the $5000 that was for interest (using an arms length rate) would be interest expense ...
Loan to LLC	9/17/2007
Q: I have a new LLC that will be filing a 1065. I'm going to be funding the LLC business account with ... A: If it is a multiple member LLC then the interest is as you state no need for you to file a 1099 as ...
1031	9/17/2007
Q: I am a Florida resident. Can you do more then one 1031 transfer at a time. For instance buy one ... A: Keith you can do as many as you want but you can not deal with yourself and you can not receive tax ...
Defaulted Loan to a Company	9/13/2007
Q: I made a loan to a company which subsequently defaulted and went out of business. I have no assets ... A: However if you had a good business reason for making the loan that can stand close scrutiny you ...
State residency and federal home sale exclusion	9/12/2007
Q: I spend about 7 months in Florida and the remaining months in New Jersey. I have not claimed Florida ... A: lets start with 2 facts the maximum tax savings on the sale of a principal residence amounts to ...
florida resident nj income tax refund	9/10/2007
Q: I am a florida resident who took a job in nj and still reside in Fl. Am I eligible for a refund of ... A: Renne You may be able to get a refund of taxes paid by filing a NJ non-resident tax return on the ...
public accounting	9/9/2007
Q: what sort of mundane grunt work accounting can i expect in my first week of public accounting? ... A: If you end up in the tax department it will consist of reviewing or preparing depreciation schedules ...
LLC vs Corp.	9/8/2007
Q: I want to protect myself against liability in my business. My sole proprietorship grosses over ... A: if so taxwise CA seems to have it in for LLCs. and a C corp is not the best vehicle as far as ...
Per Diem	9/6/2007
Q: I started a contract job out of state on Jan 16 of this year. I will end this contract on November ... A: The per diem question depends on circumstanes I would suggest that you read publication 17 at the ...
Tax Lien reported on Credit Report	9/4/2007
Q: I have 2 tax liens that have been released on my credit report, the amounts that are reported are ... A: The lender is required to give you a copy of the report then contact the company that did the credit ...
living in MI and working in OH with work residence	9/2/2007
Q: ..I recently started a job in Ohio but still own a home and reside in MI. I am too far away from ... A: Your principal residence is now OHIO however for the current year you will need to file as a MI ...
Tax advantage?	8/31/2007
Q: Is there any tax advantage to charging interest on liquid assets held in the LLC and crediting it to ... A: Richard is either an LLC or an S corp it can't be both even in California!! Interest is charged on ...
help asap was informed wrong	8/30/2007
Q: at my husbands old job he was told by an accountant that he could claimed as many dependants as he ... A: When some one files the W4 form for withholding by the employer the form has a schedule for ...
2nd Apartment - Home office	8/29/2007
Q: Greetings: I am a married male who is starting a business in software development. The best form of ... A: Robert it could be considered a second residence but if you do remove personal items and use the ...
stste taxes	8/28/2007
Q: I worked in Virginia from jan-aug. 2007 and just moved to California and am working here now. Do i ... A: you would file as a VA resident and a part time CA resident if you do the forms correctly you ...
insolvency and 1099	8/27/2007
Q: i got into one of those bad adjustable loans, and expect to go to foreclosure. i found a buyer on a ... A: Alia the debt forgives results in a capital gain to you however if you lost 133k on the sale of the ...
losses on rental properties	8/27/2007
Q: Does the business/hobby rule apply to rental properties? If so, would it apply to each property or ... A: The hobby rules do not apply. however rental losses unless you are a Real Estate professional ...
c corp and personal loan losses	8/26/2007
Q: I am getting ready to disolve my c corp, but I have several personal loans that will be unrecovered. ... A: there are no limits to the lossses however unless you got capital gains to offset you only get to ...
paying taxes on W2	8/22/2007
Q: My boss paid me last year with a 1099 because I not only work for her and it isn't steady work. This ... A: Marie How do you know ? In any event an employer is responsible for filing Quarterly payroll tax ...
Income Tax	8/22/2007
Q: I am wondering about income tax (federal and state, North Carolina). I am planning on taking market ... A: Diana you could pay 20% of your income as quarterly estimated tax quarterly 1040es( you might also ...
Advantages of LLC or ?	8/21/2007
Q: I am working at home with my wife selling insurance and have brokers that run business thru us. We ... A: tax wise there are no tax advantage opreting a LLC rater than two individuals running a business. ...
Mileage Reimbursement	8/17/2007
Q: I'm considering a new job in outside support. The company is only reimbursing at a rate of .30 cents ... A: Keen the company is free to pay you whatever they deem appropriate. You are entitled to deduct the ...
Mileage Reimbursement and Car Allowance	8/16/2007
Q: Does the IRS permit mileage reimbursement for employees with a car allowance or it is one or the ... A: A car allowance is always a reportable event as additional compensation and is up to the employee ...
Fica Payments	8/15/2007
Q: I work in a office consisting of two employee's. My question is: How often is a FICA TAX paid? We ... A: You need to read Circular E which you should have received from the IRS if you do not have it you ...
Mileage Reimbursement and Car Allowance	8/13/2007
Q: Does the IRS permit mileage reimbursement for employees with a car allowance or it is one or the ... A: Unless you account for your car expenses to your employer the allowance is taxable to you subject to ...
house sale after divorce	8/7/2007
Q: My ex and I purchased a house in 1983 for $103,000. We divorced in 1997. The value of the house ... A: Anne I take you are not married now ! so you are correct about th 250,000 I am afraid your basis ...
Georgia State Sales & Use Tax	8/6/2007
Q: I tried to help a friend incorporate a business, by setting them up as a c-corporation and filing ... A: ! and the case. Good luck to you.
CA taxes on selling a house	7/30/2007
Q: We live in CA and intend to sell our home which we've lived in for 10 years. It's appraised at ... A: Wendy In my opinion it is clear that if your boyfriend sells the property he is entitled to $250,000 ...
Should I go LLC	7/29/2007
Q: I am interested in starting to work as a day trader. I was told that I should start a LLC to void ... A: Luis NO The rules for day trading are the same for for an individual or an LLC that chooses to ...
Roth IRA Accounts	7/27/2007
Q: I have a Roth account at my broker. I recently sold some of my stock till the market settles out. ... A: Sid you can have the new broker "roll over " the funds to your your new Roth IRA without any tax ...
Capital Gaines	7/27/2007
Q: My mother died three years ago. My stepdad was on the deed for her house, so he got the whole ... A: Donna congratulations on a good deal If the half of the residence was your principal residence ...
Sale of CA Primary Residence and move to another state	7/21/2007
Q: I plan to sell my CA primary residence, retire and move to Nevada. I have lived in this house for 3 ... A: CA follows the Federal rules so if you have no federal gain you have nothing to report to CA how ...
Income Taxes	7/19/2007
Q: My wife and I are planning to live in the United States when we have reached the age of 65 years. We ... A: Frans the taxes you are talking about are only imposed on employment earnings which would not be ...
Early withdrawal of TSP when leaving work and going back to school	7/18/2007
Q: I have no real knowledge of taxes. I am a current government employee who makes contributions to a ... A: Jeremy you asked what I think would be best for you in my opinion roll it over to an IRA so it will ...
Income Taxes	7/17/2007
Q: My wife and I are planning to live in the United States when we have reached the age of 65 years. We ... A: By the way the USA also has an estate tax on estates in excess of $1,000,000 I do not know how this ...
Chargin Taxes	7/17/2007
Q: I work for my mother who has a lingerie business, we have distributors all over the U.S. the ... A: Morma your best bet is to get a resale certificate from your distributors say Victoria's Secret, by ...
LLC florida sales tax	7/16/2007
Q: I own 54% of a pizza business, and my partner backed out of the business..he has 44%. He has not ... A: Sales taxes are considered as "Trust funds" which means if the business does not pay the state can ...
LLC, Corporation or Trust?	7/14/2007
Q: My brother and I recently inherited some property in CA (it has no mortgage - just a few operating ... A: Unless you are concerned with liability a general partnership between your brother and you would be ...
Prize taxation question	7/8/2007
Q: My wife recently won a trip (flight) to New York city for two, 4-day 3-night stay, and 5 thousand ... A: Ryan Prizes are taxed as ordinary income not being familiar with your tax situation I suggest you ...
Prize taxation question	7/8/2007
Q: My wife recently won a trip (flight) to New York city for two, 4-day 3-night stay, and 5 thousand ... A: keep your fingers crossed!!!
Reduced Maximum Exclusion on home	7/7/2007
Q: I have a tax question for you and hope that you can help me out. I am relocating 325 miles away ... A: WWW.irs.ustreas.gov publication 523 Also do not forget you may also be able to deduct against ...
Starting an LLC in one State, business in another...	7/6/2007
Q: I am thinking of starting a property management LLC. I live in IL but would like to begin to buy ... A: Since you are going to use your home as you need to file papers in IL ( do not forget you might have ...
Captial gains taxes on new construction	7/4/2007
Q: My wife and I have lived in our house for over 2 years. It is our only house and it is located in ... A: Austin thanks for an extremely interesting question my answer is no because the exception says ...
C-Corp to S-Corp	7/4/2007
Q: Ivan, I have a client that's presently a C-Corp with R/E looking to convert to an S-Corp. Upon the ... A: Jeff no need just keep th R/E separate on the books the 1120S has a schedule that keeps track of ...
Rental Proptery	7/4/2007
Q: 2 Questions: 1) My son and I are thinking about investing in some rental property. I understand that ... A: 5 years for residential property or 31 years for commercial property you are correct on the method ...
SCorp salary	7/2/2007
Q: I am a hairdresser in Florida and have set-up S-corp status for my business effective 1/1/07. How ... A: Katie is the 1099 the gross amount you earn from the customers or do they deduct rent and other ...
LLC owned property	6/30/2007
Q: Our FL LLC finds us doing business in another state. We spend 6 months of the year, intermittently, ... A: Warren the pro to buying personally is that whichever home is used as principal residence and meets ...
Sales Tax / General Contractors	6/28/2007
Q: I am having a major renovation done on my home (in NY state) by a general contractor. As per IRS ... A: Marc this is not a tax question I do not understand the accountants' thinking if you are entitled ...
LLC State taxes	6/26/2007
Q: My husband and I have just formed an LLC in Pennsylvania where we live. It is a purely consulting ... A: Also remember you may be eligible to have a home office deduction if you use a portion of your house ...
too much LLC loss this year	6/26/2007
Q: Ivan, my husband and I started a LLC in 2006 and lost $30K in a year. I also happened to lost my job ... A: but not by passing the timing of the loss however the tax code has a net operating loss provision ...
Capital Gains on House Sale	6/25/2007
Q: I have been renting a home form my stepfather for the past 3 years (less 1 week). I am pursuing a ... A: Jeremy you are not over complicating you better be sure to buy this week the moving in would not ...
One-Time Contract Lump Sum Tax	6/23/2007
Q: I have received a one-time lump sum amount March 1, 2007 for 'personal services'. I have no other ... A: If the amount is substantial you would be required to pay estimated taxes otherwise when you file ...
s-corp	6/19/2007
Q: I have an s-corp and I need to know what expenses can be paid for by the corporation. Can I be given ... A: reasonable and necessary for the business,so food and clothing do not qualify as business expenses ...
S Corp vs. LLC and lease agreements	6/13/2007
Q: I am currently an S Corp. If I change next year to a LLC do you know how that will effect my lease ... A: Taxwise it make no difference It is my understanding that even if the business goes bankrupt the ...
401 Loan Deferment with Job Change	6/10/2007
Q: I am changing jobs, but I have 20,000 in 401K loans. When I change jobs I know I will default on ... A: Yes In essence it is all your reponsibility If you want the Company to pay for you make sure you ...
taxes	6/10/2007
Q: He will be earning a big bonus this year from the sale of the company he works for (yeah!!!), but ... A: !) But I hate to rain on your tax parade any rental losses can only be offset against other passive ...
Business Tax	6/9/2007
Q: Good evening, I just got my real estate license and will be doing it on the side while maintaining ... A: 1 congratulations! 2 those items are good business expenses but all the items need to be allocated ...
estimated taxes when living and working in different states	6/8/2007
Q: I work for an academic institute in MA, but now live in New York City (after living in MA for half ... A: Haley from your answer at least for the present ,in my opinion you are doing business in New York ...
estimated taxes when living and working in different states	6/4/2007
Q: I work for an academic institute in MA, but now live in New York City (after living in MA for half ... A: NY and NYC do have the safe-harbor rules relating to estimated taxes however you need to calculate ...
capital gains tax ?	6/4/2007
Q: I am very interested in getting into the real estate biz. I'm not sure rather to buy the home fix it ... A: Eric Taxwise you should know that if you want to sell property you should hold the property for 366 ...
LLP's	6/3/2007
Q: I purchased some stock (through an online brokerage firm) in a limited liability partnership and ... A: Jo nobody but an accountant should enjoy doing taxes you are taking food out my babies mouth Why do ...
Gift tax.	5/31/2007
Q: MY wife and I have been leasing a property from the owner of the company i work for. We have paid a ... A: at any price she deems fair.if not related to you or for work you performed, that is the amount she ...
sub-contracted driver	5/31/2007
Q: Here's my deal. I drive for a sober escort service and drive clients to and from treatment centers. ... A: 5 cents/mile) but not to worry you still get to deduct all kinds of expenses including depreciation ...
LLC Owning Sub S	5/30/2007
Q: I am in the restaurant business for several years as an LLC with my wife. Last year I started ... A: if you wish to have a separate identity for you second restaurant you can either do a New LLC or ...
LLC to C-corporation	5/30/2007
Q: I want to start a company but want to have it incorporated as LLC. Then after some time I will form ... A: Anil Sorry all I see are unnecessary complications and taxes if you care to explain your thinking I ...
Tax structure for a kid run company	5/27/2007
Q: My 12 year old daughter wants to start a company for a toy that she has designed for 5-8 yr olds. ... A: It would have to be YOU (sounds like a song!) She and her friends can have stock but remember an S ...
Statutory Taxes	5/24/2007
Q: I am interested in applying for a payroll position and one of the requirements is knowledge of ... A: What I would suggest you become familiar with the Federal circular E at www.irs.ustreas.gov this ...
Profits interests - revisited	5/18/2007
Q: Ivan, thank you for your earlier response. It is my understanding that the day the profits interest ... A: Richard let me see if I understand say you get a 10% interest and the land is sold for a $100 and ...
Tax liablity on a property	5/17/2007
Q: Sir, I have a piece of property for sale and am interested on how I will be taxed on it. The story ... A: Year of gift/ Amount allocated to land/ Depreciation / ...
Profits Interests	5/16/2007
Q: Situation: Through an S-Corp I continue to consult to my former employer. In lieu of paying ... A: Capital gains would only be generated from then on until the time of sale. Assuming that you still ...
reall estate sales tax and special question	5/16/2007
Q: I have 2 questions: 1. What evidence does the IRS accept for having 2 years residence in a condo ... A: I commend you for you civic spirit if you can get the louse in jail try to loose the Key if you ...
Deduction for donating a car	5/15/2007
Q: I am thinking about donating my old car to skip the hassle of selling it as I move. I am 24, MA ... A: Matt even if you got a $2000 valuation for your donation you most likely be better off with the ...
reall estate sales tax and special question	5/15/2007
Q: I have 2 questions: 1. What evidence does the IRS accept for having 2 years residence in a condo ... A: Gregg except for the loss of the rent( as that would be taxable income so a wash) you have a ...
Tax on Bonus	5/13/2007
Q: I am currently employed by a company in NYC and am living in NYC. I will be buying a house and ... A: Jay normally I would say that when you file you final NY tax return CT3 resident/non resident return ...
Taxes on Student Loan payments	5/12/2007
Q: Since recently receiving an inheritance, my mother has offered to pay off my student loans for ... A: Zar the good news is that you will have no income if you receive a gift of any amount If your ...
Notice 779	5/11/2007
Q: Ivan, I filed my federal taxes electronically and have already received my refund. I filed a paper ... A: Josh you still need to file a paper tax return signed by you. As to what I think happened is that ...
Question about tax lien.	5/8/2007
Q: How long will it take for a federal tax lien to be removed from my credit report after it has been ... A: Kim it seems that to get a lien removed is a lot harder than getting one. I suggest you write to ...
Amending Taxes	5/7/2007
Q: I had been self employed for the last 3 years. I was not aware that when I fill my taxes I am ... A: The "implications " are you will have a 25% penalty each year .also there will be interest on the ...
Payroll Service--Do I Need It?	5/4/2007
Q: Do I need a payroll service for a mom & pop LLC, where the only transactions may be buying (1) ... A: Gary you do not need a payroll service however in the course of picking up rental properties you ...
Selling a shared house from a life estate	5/3/2007
Q: My mother deeded her house to my sister and I (who are now both married.. and not to each other! ;) ... A: How was the house handled relating to the Estate tax return? to your second question if you and ...
where to file state tax	4/30/2007
Q: I am living in Idaho currently. I am doing contract work for an architecture firm based in ... A: In my opinion you are not doing business in Colorado( but this is a legal definition and I am not an ...
where to file state tax	4/29/2007
Q: I am living in Idaho currently. I am doing contract work for an architecture firm based in ... A: Michael Where do you actually do the work? if all you do is send blueprints and ocassionally vist ...
TAX FORM QUESTION	4/29/2007
Q: Ivan Hi, I sent my taxes into the IRS and recently received a Notice 779 From them. I forgot to ... A: Normally you would not be required to attach a 1099 to your return. I suspect that some way you ...
Divorced with Head of Household	4/28/2007
Q: I got married in November 2006 and am getting divorce now (April 2007). Both myself and my wife ... A: Michael sorry but because you were not separated for six months neither of you qualify as head of ...
Business Owner of Corporation with No Employees	4/27/2007
Q: If a business owner applies for an EIN as a Corporation (not S-Corp), and wants to put himself on ... A: Rose before an owner can apply for an EIN for a corporation the corporation must have all the ...
taxes and ebay	4/25/2007
Q: I have been selling on ebay since January 2007. I probably average a profit of $50 a day. I know ... A: Donna you need to keep track of your sales and what you paid for what you sold you might want to ...
LLC Startup Husband/Wife	4/23/2007
Q: I am helping my wife start up a service industry LLC. We are registering in MN (non-community ... A: Ryan taxwise it is "six of one half a dozen of the other" However it is simpler to have a single ...
Taxes and Budgets	4/23/2007
Q: Ivan, I am not sure if this question is "answerable," but I've got to give it a shot. I am currently ... A: Chris it is answerable between the standard deduction and your personal exemption $5500+3300 your ...
Section 1244 Stock	4/23/2007
Q: Ivan, Is there anything specific that must be done to qualify or elect for Section 1244 stock ... A: Jeff you articles of incorporation must state than you will be issuing Section 1244 stock you should ...
Capital Gain with Gift of Equity	4/22/2007
Q: My husband and I helped his son by buying his home in January 2004 for $80,000. His son's home had ... A: Since you are receiving only $100,000 cash you would have a $20,000 capital gain the rest of ...
divorce decree/mortgage interest	4/18/2007
Q: i have been divorced since 04.my decree states that the home is mine and i will deduct the mortgage ... A: Cyn this is a quotation from the IRS www.irs.ustres.gov topic 505 ""Interest is an amount you pay ...
Subchapter S Shares	4/18/2007
Q: I have a subchapter S corp in Texas with one other partner. My partner is now moving, so I am buying ... A: Bobby it is six of one or half a dozen of the other. Money that is withdrawn from an S corp is not ...
Subchapter S Shares	4/17/2007
Q: I have a subchapter S corp in Texas with one other partner. My partner is now moving, so I am buying ... A: First buy out 49% of the stock or less because if you buy 50% in one year you will automatically ...
s-corps and payroll	4/17/2007
Q: Can/should an s-corp exist and not pay payroll, but rather only distribute its income through ... A: My suggestion would be for you two to form a new Scorp or LLC and distribute the profits directly to ...
divorce and home sale	4/16/2007
Q: My husband and I purchased a primary residence in 1997, which we both lived in until the home was ... A: If you and your ex resided and still reside in a community property state (see IRS publication ...
Tax Help	4/13/2007
Q: I have been self employeed since Jan. 07. I was working for corporatiosn. My taxes for 06 have ... A: You do not send you invoices or expenditure to the IRS a summary based on an excel schedule will be ...
W-2 vs 1099	4/12/2007
Q: I am preparing taxes for a pastor who received a 1099 when they should have received a W-2. As I ... A: I do not understand the reason for changing were there taxes withheld if there were not why bother. ...
Stock-Tax loss	4/7/2007
Q: On the stock market in year 1999, I lost approximately $14000. I claimed the loss of $14000 using ... A: I am not sure if the statue of limitations applies to anything that occurred before December ...
How to file joint venture in rental property	4/3/2007
Q: My friend and I have together purchased a co-op in NY. We both paid half of closing costs and pay ... A: Each of you would report 50% of the income and expenses of the joint venture if you wanted to make ...
Rules About Business Losses	4/1/2007
Q: I started a second business in 2002. I showed a net loss on this for three years,which I understood ... A: Bobby The 3 year is an arbitrary number I suggest that you look up the IRS www.irs.ustreas.gov ...
Selling a shared house from a life estate	3/29/2007
Q: My mother deeded her house to my sister and I (who are now both married.. and not to each other! ;) ... A: First the good news you and your sister have to pay capital gains on the increase value while you ...
Section 179 for Subchapter S LLC	3/29/2007
Q: I am one of two members of an LLC being taxed as S Corp (filing an 1120S). We bought a company truck ... A: yes From the facts it appears that until Jan 2007 you had a joint venture so you and your partner ...
capital gains tax	3/28/2007
Q: My husband bought a house 9 months ago for 85,000.00 and we are selling are home now for 132,000.00. ... A: Your gain will be considered a short term capital gain taxed at the same rate than ordinary income ...
truck as business expense	3/27/2007
Q: I am sole proprieter of a small business(construction). In 2006 i purchased a 2002 dodge ram 1500 ... A: Yes you can consider this truck and operating expenses as a business expense( You should deduct a ...
Can you defer income with the state tax deduction?	3/21/2007
Q: I'm having trouble understanding why the IRS allows people to deduct not just state tax payments ... A: as a cash tax basis you can make excess payments on you estimated to cover the two years but it ...
Payment to family Members for Services	3/18/2007
Q: My sons and wife periodically perform legal, consulting, and administrative services to my business ... A: If you do not deduct the meals and contribution they are gifts and there is nothing else to do. On ...
AMT tax	3/15/2007
Q: I sold an real estate investment in 2005 for a very small gain. The property had a high value and ... A: I would suggest that you recompute your 2005 tax return taking as a CA tax deduction only the ...
legal to file tax seperately?	3/15/2007
Q: me and my husband have a good marriage. but we want to file tax seperately.because last year we did ... A: it is legal to file separately but the tax status is "married filing separately "which is taxed ...
Selling and Buying a House	3/12/2007
Q: I sold my house in NY for 360,000 and brought a home in PA for 200,000. Am I responsible for any ... A: It does not matter what you bought You have a capital gain However if the house was your primary ...
Averages for Sch C deductions	3/11/2007
Q: Could you please email me a link for this information if you know of a source that publishes it. ... A: you might be able to find something like what you want in the IRS site .www.irs.ustreas.gov As to ...
Tax question relate to resident of multiple states	3/8/2007
Q: following is my status and it's kind of complicated. I am working in state A and live in state B ... A: You do not get to choose you are a resident of state B and file a tax return there. you are a non ...
C Corporation Tax	3/7/2007
Q: I prepare two small business corporate returns. In 2006, an attorney merged one of the corporations ... A: You need to file a final return for the "mergee' and then file a return for the survivor IS there ...
selling a business	3/4/2007
Q: I received a down payment from a proposed buyer of $50k. That buyer did not follow thru. I then ... A: Gina this is an interesting question. I racked my brain trying to come up with an answer that would ...
business tax due	2/27/2007
Q: Mr. Roth, My husband and I own a constuction trucking company in california. Our business is a ... A: Kirsten this is more of a legal question than tax Sorry to have to tell you But some taxes are ...
employee student interns and paying stipends	2/24/2007
Q: My daughter recently incorporated a small training development company. She is developing online ... A: ! The payments would not be considered stipends however if the work is casual and the interns earn ...
filing taxes while seperated	2/24/2007
Q: MY HUSBAND AND I HAVE BEEN SEPARATED SINCE AUGUST 2006, HE STOPPED PAYING MARITAL BILLS IN APRIL ... A: You have two choices you can file as married filing separately you still get head of household (this ...
capital gains on sale of income producing property	2/24/2007
Q: I have a LLC in Va that rents our various residential and commercial properties. The income from ... A: Two reasons One if you held the property for less than twelve months you would have a short term ...
small business tax	2/21/2007
Q: I have a side gig selling T-shirts on consignment & am putting together my Schedule C. I just ... A: The hard one first sales tax you need to contact your state tax department and get a resale number ...
401K early withdrawl for a new home	2/21/2007
Q: In 2006, I took out money from my 401K for a First time Home buyer. I got the 10% Penalty and they ... A: Jennifer You can'twithdraw funds to purchase a home however if your plan allows it you could have ...
x employeer 1099	2/19/2007
Q: I worked as 1 Mw employ. for a realest manage. company, I mange. co-ops and one of my co-op's I did ... A: you could write to your employer and CC the condo to correct your 1099 if you get no ...
Child care credit	2/16/2007
Q: I got married last year in November. My Husband and I want to file Married filing separate. We ... A: correct about the dependant. You can also claim the day care expense in a joint return I guess you ...
interst on land loan	2/15/2007
Q: We are considering buying property for retirement, if we do, can we write off the interst associated ... A: yes and maybe If you will construct your home or second home to be completed in the next 24 months ...
LLC Taxation	2/15/2007
Q: I am co-owner of a California LLC. In 2006, we took distributions, but also had a loss on our ... A: Your tax liability does not depend on cash distributions. these only reduce members capital. The ...
Inherited property	2/13/2007
Q: If someone inherets property and doesn't change the loan to his/her own name, but pays the mortgage ... A: Yes because she/or he is paying interest on their property. However if the property is not used as ...
corporation payroll	2/13/2007
Q: and thank you for taking my question. I am a commercial photographer, and I am already ... A: Yes one corp can reimburse payroll expense to the other and one corp can lend funds to the other ...
Tax question regarding my son	2/12/2007
Q: I'm currently doing my taxes and my question is this: Can I claim my 18 year old son as a dependent ... A: Yes you can and should When your son files he should for his tax computation He must check the box ...
Capital gains on inheritance.	2/10/2007
Q: My father died in 1984. His home was in Orlando. He left a life estate to his second wife. Upon ... A: BOTH!!! are right thee interest income is taxed. and Your CPA is correct but the amount of capital ...
involuntary dissolution and no W2	2/9/2007
Q: My husband is self-employed and in Dec of 2005 made a payroll payment so he would have earned income ... A: The main problem seem to be that he made a $2500 payment that he needs to have credit for so make ...
House Rental	2/9/2007
Q: I relocated to another area but I decided to keep my old house and use it as a rental property. I ... A: Yes to all put the POA as miscellaneous you can also depreciate he house over 27.5 years But ...
capital gains tax	2/8/2007
Q: Ivan, My mother changed the ownership of her NY primary residence to myself and sisters. She did ... A: My suggestion would be for your sister and you to return the house to your mother as if she sells ...
1099-r	2/8/2007
Q: Do you have any experience with a 1099-R? I recently wrote about stock when I got my 1099-b but I ... A: Not a lot but enough to answer your question in order not to speculate I need more facts did you ...
TAX	2/7/2007
Q: I bought a pre-construction house in Florida to be finished in about 4 months. If I sell it after it ... A: I am sorry to tell you NO except for $3000 What you have is a capital loss which you can only ...
Earned Income Credit	2/6/2007
Q: My question is in regards to the EIC for qualifying children. My circumstances are as follows - I ... A: If you file as single and have less than $12800 you would qualify for the credit on your on your ...
1099-misc	2/5/2007
Q: that is very helpful. Now, my ex-employer paid me monthly for the home and they were renting it out ... A: Well I wondered about this while giving you the answer and the compromise was the 1099S While if it ...
Looking for tax advisor	2/4/2007
Q: I live in the North Texas area on a 5 acre lot. I am interested in starting a pecan grove on these ... A: I love Pecans having said that In Texas your best tax status would be to operate as a single ...
purchasing home	2/4/2007
Q: I would like to know if it would be better for tax purposes (depreciation)to purchase a home (my ... A: I do not have enough facts but my inclination would be for you to buy it together with your mother . ...
Sole Propietership	2/2/2007
Q: I'm a Fleet Manager for petroleum tankers in Oklahoma. My company needed a night dispatcher 3 ... A: For last year it would cause a lot of paper work to consider her an employee Give her a Misc Income ...
Farm or Agriculture losses	2/2/2007
Q: I am leasing a 10 acre plot of land in Texas that contains the home in which I live and a farm on ... A: I am not familiar with the tax aspects of farming but if this is not considered a casualty loss. ...
1099-B	2/1/2007
Q: I traded stocks online and lost about 350$ this year and haved gained nothing in previous years. I ... A: you need to include the transaction in for D OF THE 1040 IT IS NOT HARD TO FIL. You will be able to ...
Income tax in two states	1/30/2007
Q: I was wondering if you knew anything about income tax in Maine and Massachusetts. I live in Maine ... A: As a Maine resident you are subject to the Maine Resident income tax((I am surprised that it is ...
Flight Instructor	1/28/2007
Q: I just started a job flight instructing in Houston, Tx. I was informed yesterday that they do not ... A: You will need to file a quarterly estimated tax 1040es I do not know your situation but 25% to 28% ...
Question regarding Childcare write-off	1/26/2007
Q: If I claim her as a dependent, do I also claim the stipend I received as income? Thank you. thank ... A: sorry I researched your question and I have been unable to ascertain wether your stipend is income I ...
mileage	1/25/2007
Q: this last year my wife and i were married, we will be filing together. while we were doing a motor ... A: You will need to file form 2106 make sure you when you file the 1040 you use Form C to report income ...
REALESTATE GIFT TAX	1/24/2007
Q: MY MOTHER IN-LAW TRANSFERED TITLE OF HER HOME TO MY WIFE'S NAME LAST YEAR, I ASSUME AS A GIFT. NOW ... A: you need to determine the fair market value of the house when you mother in law transferred it to ...
tax break for relocating	1/24/2007
Q: My husband and I live in Florida and we are moving (by choice) to another area in Florida. My ... A: Your hubby is right provided the move was to an area at at least 50 miles from your current home ...
divorce settlement	1/13/2007
Q: My sister is getting a divorce, but first, before the divorce, her husband is giving her half of ... A: No tax consequences they are dividing assets owned by the spouses she can deposit the money in a ...
Vehicle tax deduction	1/11/2007
Q: Ivan, My wife will become an independent contractor next year (physician). Coincidentally her car ... A: all vehicles used for business qualify for a depreciation expense which recovers the cost of the ...
cost-basis estimates	1/10/2007
Q: I've held mutual funds for more than 20 years. Some were bought with a lump sum payment. Others were ... A: this is a problem that a lot of mutual fund investors did you reinvest the dividends ? let me know ...
self employed childcare provider	1/7/2007
Q: I keep my sisters two kids and her and her husband pay me $200 a week. I made $10,400 for the year.I ... A: with your child care credit you should not have any payment on your earnings except for the self ...
investment loss	12/24/2006
Q: I invested 50000 in a company in year 2002. The company filed "cease of operation" in year 2005 and ... A: Use schedule Dof the 1040 show as long term loss use the 2006 date when you learned it was ...
IRA	12/22/2006
Q: Can my children get distributions from my IRA . How can they save on taxes. A: if you have reached 70 .5 years of age you must take out the mandatory minimum . I am not familiar ...
tax question	12/20/2006
Q: I don't know if this is your typical tax question but here we go. I have a friend that is very smart ... A: A few years back a Federal Judge was embarrassed when she was being considered to be Attorney ...
capital gains tax on rental property	12/16/2006
Q: We bought a house in Jan 97 and moved in Sept 97 due to military. Converted to rental property and ... A: Normally only your principal residence qualifies for the tax exemption (I do not understand "due to ...
tax return	12/15/2006
Q: I was staying at home with my parents and moved out and started living in the dorm on campus when ... A: if you are under the age of 24 a full time student and your parents provide for more than 50% of ...
K1 filing for LLC with loan payback to member	12/13/2006
Q: i am a member in a texas LLC that is taxed as a partnership. over the course of several years, i ... A: line 16d is to report property distribution( ie repayment of loans )line 16e is for reporting loans ...
Stock expenses	12/13/2006
Q: Ivan, I do quite a bit of short term stock trading and have had some related expenses; i.e. ... A: it becomes part of schedule A expenses deductible only they exceed 2% OF agi ALSO YOU MAY FIND that ...
Mother buying house before selling old house	12/12/2006
Q: My mother (77 years old) is thinking about buying a house to be closer to use. Her old house is ... A: as far as the tax implications of buying before selling is that if your mother is unable to sell ...
Partnership plus other full-time job	12/11/2006
Q: My husband and I just created a partnership e-commerce company. I will be working from home - full ... A: hopefully you company will be profitable else why bother with it !! your e commerce gets reported ...
Disability Taxes	12/10/2006
Q: After a wait of over 2 years I received a lump sum settlement and payments starting in December. How ... A: It depends on the circumstances : if the proceeds were received from insurance that your employer ...
HELOC on Rental Property	12/7/2006
Q: I was wondering about taking out a HELOC on a rental property I own. I was wondering if I take out ... A: I am not familiar with the term HELOC but if you take out the proceeds of a mortgage on income ...
Computers Tax Deductible for Career Development?	12/7/2006
Q: I am a computer technician whose entire career has revolved around PCs. The company that I work for ... A: most likely your expensed would fit under" improving you current skills" buts you have obstacles you ...
filing single/head of household	12/6/2006
Q: I filed head of household last year because I have kids living with me. Also I married October ... A: Per the IRS You are married and entitled to file a joint return "if you were married on the last day ...
Company doesn't take out taxes from my paycheck	12/2/2006
Q: I work 25 hours a week and he pays me $15/hr. He pays me straight pay (doesn't take out taxes or ... A: Your employer needs to withhold income taxes and your portion of social security as well as paying ...
When filing my taxes as a saleman what are my benefits	12/1/2006
Q: I am a traveling salesman for a communications company and talked to my co worker who advised me we ... A: As a salesman you do get to deduct expenses connected to your trade: suits and hair cuts are not! ...
about car allowance and milage	11/29/2006
Q: I am a traveling registered nurse.My home is in Tn and I travel to different states doing 13 wk ... A: You do not need to worry about keeping track of the per diem expenses. However if your employer ...
Personal liability for failure to pay franchise tax on S Corp?	11/27/2006
Q: I am so happy I found this site as I am in need of some help. A family member started an S Corp in ... A: this is a legal question but if she incorporated in NY they tend to be pesky about those ...
per diem	11/26/2006
Q: I moved to Nebrask from Oregon and am doing a w2 contract job for one year . The company pay me 220 ... A: Richard the per diem amount is ok. However in in order to qualify for the per diem rules the ...
Profit from Sole Proprietorship	11/24/2006
Q: As a sole proprietor, what portion of my total income do I need to declare as personal income? I ... A: As a sole owner you report the gross income and expenses on schedule C of your 1040.Expenses that ...
Loan repayment	11/24/2006
Q: but I don't think I made myself very clear. The real question is: is there a way to pay off this ... A: I can not think of any way you can repay the loan with pre-tax money. If you pay interest on the ...
at-home business to offer daycare for employees	11/21/2006
Q: I own a mail-order business that I run from home with 2 employees. We are thinking about hiring ... A: Your company could set up a "cafeteria plan" of employee benefits under section 125 of the IRC which ...
Personal Loan to our own Business	11/18/2006
Q: I lend $70,000.00 to my own company to buy an equipment. I have a S Corp Company. My net income so ... A: The loan is a wash you would have interest income and the subS would report to you an interest ...
Company stock that i cant trade	11/17/2006
Q: i have quite a dilemma; I have shares of a stock that has not been traded for several years. I ... A: Ask Fidelity to sell if they tell you there is no market ask them to buy them from you at $1 or .1 ...
Business Price	11/16/2006
Q: Say a business is being sold for $100,000.In general, what should I examine to help me evaluate ... A: this does not relate to taxes, howeverI have seenn formulas based on sales or amount available for ...
medical	11/14/2006
Q: It does exceed that the 7% .I was afraid to claim it because it was state/goverment insurance they ... A: you are allowed to claim any medical expenses that you paid But i still think that it is most ...
medical	11/13/2006
Q: I am paying $85.oo a month for access (kidscare) insurance.I still have other medical stuff that ... A: You can deduct health care insurance premiums as medical expense but you have two big hurdles to ...
Deductible Repair vs Capital Improvement	11/13/2006
Q: Am a small business owner leasing space in an industrial complex on a triple net lease. Is the ... A: I am a tax guy not an attorney however having said that you should look at you lease for the kind of ...
Renting My Home	11/13/2006
Q: I own my home in CA but I am moving to Nevada in April. I am going to rent my California home so I ... A: Yes the rent will be income to you however you will be able to deduct any expenses incurred such as ...
Basis In A Partnership	11/12/2006
Q: I would appreciate a most thorough clarification of the concept of basis in a partnership relative ... A: Your tax investment in the partnership consits of cash +profits less any cash distributed to you ...
merging	11/11/2006
Q: I have a C corp that is 15 years old and A LLC that is 4 years old and would like to merged the two ... A: For a small business it is more advantageous for the income or losses to be passed to the owners. so ...
business vehicle tax issues	11/11/2006
Q: I am a small business owner and am thinking of purchasing a vehicle under section 179 deduction ... A: Normally there is not a lot of section 179 write off as the amount is limited to the maximum allowed ...
Business Expense Classification	11/6/2006
Q: What is the difference between "Office Expense" (line 18)and "Supplies" (line 22) which are each ... A: I would not expand a lot of time in trying to get the exact classification as both are acceptable ...
house sale within 2 years	10/28/2006
Q: i sold my house before my 2 year grace period you might say i sold it just above my original ... A: You have no tax: If you lost $34,000 you have a long term capital loss of which you can deduct ...
TX Franchise Tax	10/26/2006
Q: I am the sole member of a LLC, and I pay Federal and Self-Employment taxes on all net income through ... A: All LLCs are subject to the Texas Franchise tax the tax is based on Income or Net worth depending ...
1099 vs. w2	10/26/2006
Q: Why do some accountants tell me that if I put my employee's on w-2 vs. the 1099 they are currently ... A: first the AMT applies equally to salary or other income the determination as to w2 or 1099 depends ...
Rental Property Expenses	10/25/2006
Q: What can I write off for a rental property in Florida. Can I write off furnishings, travel to check ... A: to the extent that you have income you can write off against it the expenses you list but note the ...
Tax write off question	10/23/2006
Q: We have a lot of things that we are getting rid of and we are considering donating everything and ... A: A contribution to a charity would get written off as a deduction on Schedule A ( at market ...
OK/CA Income Tax	10/21/2006
Q: I own homes in both OK and CA and, since retiring, split my time about 50/50 between them. I have ... A: if you spend more than 185 days in your OK residence you are an Ok resident I would have all my ...
Partnership income	10/20/2006
Q: At one time the tax law provided for the distribution of inventory to a limited partner as a non ... A: This is quite a question depending on the circumstances of the distribution my suggestion to you is ...
death of sole director of sub chapter S corp	10/18/2006
Q: I am the President, VP, Secretary and Treasurer of a Sub Chapter S Corp. in Florida. I am the only ... A: you should name members of your family as officers and have a least one director remember you may ...
Closely-held C Corp and Per Diem	10/18/2006
Q: I am considering a contract in which the agency would pay a C corporation owned largely by my Dad, ... A: I do not think so as long as the corporation uses the per diem rule as to any othher employee If ...
estate tax	10/17/2006
Q: fathers estate,house, appraised at $445,000.00, 3 siblings = $148,000.00 each minus cost. If one ... A: Pete very bad idea even if it worked one would not have a valid capital transaction as the family ...
Filing Back taxes - ivan roth	10/13/2006
Q: I'm an American citizen who's been living in Israel for the past seven years. I think the last time ... A: I am sorry to tell you that this is not my expertize however I have a suggestion for you check this ...
fla intangible tax	10/10/2006
Q: I recently made Fla my primary residence. I understand the state has an intangible tax. How do I ... A: Fla ha a web site try www.fl.gov also if you are in a large city the Fla department of taxation ...
capital gains taxs for S Corp	10/10/2006
Q: We formed an LLC Subchapter s corporation in the business of Internet Advertising. Last year we ... A: Skeptical is appropiate I think you sold a Sec1245 asset used in "trade and business" so you get ...
Real Estate Income	10/9/2006
Q: We bought 1/3 of the home from the Nursing Home in Jan 2005, it won't sell until next year, so we ... A: as far as your 1/3 it seems like a wash you put in 21,000 (you basis)and will get about that when ...
LLC capital gains tax	10/9/2006
Q: I understand that income/profits from an llc is reported on a schedule c and flows through on to the ... A: You are correct if you have a single member LLC if the LLC has more than one member you need to file ...
Insurance deductable being taxed?	10/7/2006
Q: I was in an auto accident while on the job in my own vehicle. My company said they would pay up to ... A: I do no know about legal! but common sense says if you incurred an expense for your employer they ...
Rental Property (LLC0	10/5/2006
Q: My brother and I purchased a commercial building. The first year we did 50% on a schedule E on our ... A: continue to file as you did in 2004 as you would be considered a joint venture (no separate tax form ...
How to file my return	10/5/2006
Q: I married a gentleman outside the US this year. I live in New York and he still lives in his country ... A: I am not an expert on this but I believe that You can file a joint tax return for 2006 if he is a ...
taxable income on investment	10/5/2006
Q: Let's say I take out an interest only loan for $100,000 at 10% from a family member and put it into ... A: you would have 20k of interest income and a deuctble item on shedule A investment interest of 10k ...
Real Estate Income	10/4/2006
Q: When my husband's grandmother went into the nursing home, the home was in her name and her two ... A: If you sold the house soon after inheriting you have no tax as the FMV on date of date equled your ...
LLC Distributions	10/4/2006
Q: I'm setting up an LLC and want to allocate 100% of the taxable income to one member who is willing ... A: Michael if you are willing to distribute funds to pay the taxes then my questtion why would you ...
rental property	10/3/2006
Q: Ivan, I recently purchased 5 investment properties (condos)in Largo Fla for cash. They have a ... A: As I stated: you would only offer an investment possition in your properties if you needed fund ...
income tax exemption	10/1/2006
Q: i am an ex-pat american living in paris, france. several of my american friends here work for an ... A: Bon Jour Chien I am not an expert in International taxation. However I do know thatUN salaries are ...
rental property	10/1/2006
Q: Ivan, I recently purchased 5 investment properties (condos)in Largo Fla for cash. They have a ... A: Is that like in Key Largo (one of my favourite movies staring Humprhey Bogart)? You can put a ...
tax income taxes	9/27/2006
Q: I am a resident of CT and work in NYC. I want to keep my CT home and also live in an apartment in ... A: if you live in NY for over 180 days you are a NY resident and you will only be taxed by New York and ...
capital gains for a LLC or Partnership	9/25/2006
Q: I am in a partnership (one other person) It is a LLP and we have also created a LLC. This ... A: I beleve you have given erroneous information it appears to me that you are in the bussiness of ...
Residency	9/20/2006
Q: I don't know if you can help me but I would be appreciative if you can. My wife and I are residents ... A: to be a Fla resident you must reside in the state for more than 183 days to qulify for the ...
Income tax for rental property	9/16/2006
Q: My wife and I are thinking of possibly buying a duplex, living in one and renting out the other. ... A: the rental income would be taxable however one half of your interest expense adn real estate taxes ...
business use of car	9/7/2006
Q: What is the IRS policy on business use of vehicle with regard to standard allowance and interest on ... A: If a car is used 100% for business then you can depreciate it and deduct all expenses relating to ...
Foreign Corporation Tax	9/4/2006
Q: I am an IT Auditor and likely to perform audits for clients in several States in the U.S. I reside ... A: It may be better for you to operate as an individual contractor unless you need liabilty protection ...
1031 exchange	8/29/2006
Q: Bonjour, If I inherit approxiately 100K from a sell of an estate house, what if any is taxable: ... A: If the estate sells the property and you are given a check then you would have no taxes on the ...
Real Estate Taxes	8/29/2006
Q: I am considering getting into single-family / multi-family real estate investing in and around ... A: if you have a gain it would be taxed as ordinary income as well as in CA if you have a loss it gets ...
paying employees with bonuses	8/29/2006
Q: I own a construction company and have heard that I can pay employees minimum wage and then give ... A: I do not agree with what you heard it would be a scheme that can get you in trouble! The bonusses ...
Loan Taxation	8/25/2006
Q: An S-Corp (Company A) has 2 partners. Company A aquired a line of credit of 100K Partner A used the ... A: As described. company A has a liability and a capital distribution to partner B this reduces Parner ...
state tax--LLC	8/23/2006
Q: Ivan, My question involves the payment of state business tax. My business (sole-member LLC) was ... A: The feds consider a single member LLC as an individual as you say so does NJ but I believe they may ...
K1 form / distributions upcoming	8/19/2006
Q: I own shares of Amerigas - ticker symbol APU... this is a publicly traded limited partnership. In ... A: once yourcapital +(any noon recourse debt allocated to you if,any) reaches Zero you won't be ...
Receipts	8/16/2006
Q: I receiving a Misc-Income 1099 this yr. I'm self employed/inde contractor & itemizing deductions ... A: what you have are business expense which go on schedule C to reduce the business income. This ...
Sub S Salary vs dividend	8/14/2006
Q: My wife and I own 50% shares of a 2 year old small building company that is taxed as a sub S ... A: no there is no penalty for holding back the cash as far as the money you pay yourself it is not a ...
Software expenses	8/12/2006
Q: I do not resell anything I purchase. The software and computer are my tools I use to build web ... A: If you buy off the shelf software you can expense as software expense under other expenses. Howeber ...
Tax on Receivables & Inventory	8/11/2006
Q: You are saying that an S corp. does NOT have to disribute earnings? I thought it had to, and THAT ... A: What I am saying is that the earnings are distributed on the K1 no cash needs to be distributed ...
LLC vs S-corp vs C-corp	8/9/2006
Q: I am starting a new service business, and many people including my accountant have suggested that ... A: your accountant is right the worst thing you could do is to be a C corp as they are taxed at a ...
Tax on Receivables & Inventory	8/7/2006
Q: We are a merchant wholesale distributor set-up as a sub S corp. Our growth has averaged 20 to 25% ... A: As far as I know the taxable income generated by the S corp is passed on to to the shareholders who ...
Shareholder on S Corp	8/4/2006
Q: what paperwork would that involve to do correctly? i have never dealt with shares before other than ... A: You do have a stok register? return your husbands share and cacel them attach to stock book stub ...
Capital gains on non-primary residence.	8/2/2006
Q: My parents own a house in Panama City Beach that is valued at approximately $1 million. My parents ... A: fortunately FL does not have an income tax As to the 1031 exchange rules they tend to get somewhat ...
Real Estate Taxes	8/2/2006
Q: My two brothers and I are interested in buying rental real estate properties in Texas where we live. ... A: The easiest way is for the three of you to agree to pay 1/3 of the expenses and get 1/3 of the ...
Quarterly Payment	8/1/2006
Q: Mr. Roth, I started a LLC in January (construction company) and since been trying to get it off the ... A: You are only subject to estimatedd taxes when your business has taxable income you would file a ...
S Corp Final Return	7/30/2006
Q: Following is the original question. Your reply was a question about why I was stuck with the ... A: Faye if the S corp was closed in 2005 and if you purchased the business you have a clean start so ...
rental houses	7/27/2006
Q: Here is my situation. I have a freind who is willing to pay all closing costs, taxes, and mortgage ... A: 1 not directly however you could set up a partnership to whichh your partner contributes the money ...
corporate income tax	7/20/2006
Q: I have a small C corp. that hasn't filed a 2005 1120c because the accountant that was given all the ... A: I do not know what kind of bussiness you have but for starters you can get duplicate bankstatement ...
corporation questions	7/16/2006
Q: where do you deduct corporation fed and state taxes on the books. A: Normally a state income tax has a franchise tax component and it is deducted as part of the ...
C Corp taxes	7/11/2006
Q: My partner and I did a stock purchase of a C Corp on August 1, 2001. The business fell off and at ... A: I am not a lawyer so I can't give legal advice but in my oppinion I presume the refund came from ...
GIFTING STOCKS	7/8/2006
Q: My in Laws donated $60K in stocks and equities to their daugther (my wife). 1- Do we need to ... A: there is nothing that gift recipients need to do but enjoy! Givers like your wife's parents are ...
LLC vs. S-Corp tax basis and tax implication	7/3/2006
Q: I am thinking about starting my first company and based on info from various website and from other ... A: NOOOOOOOOOOOOOOOO! LLCs and S corps pass their profits on to the owners even if they keep all the ...
CA LLC Tax and LLC Closing	7/2/2006
Q: What if I don't pay it? They just hound me or what (sue, forfeit, etc)?I closed my LLC (CA) on ... A: I do not know the legal responsibiolity but they will hound you and they are persistent ! how much ...
FOR a FOREIGN LLC, WHAT CONSTITUTES DOING BUSINESS IN CALIFORNIA?	7/1/2006
Q: A husband and wife living in Arizona start a small advertising consulting company which they ... A: If you reside in CA you are considered doing business in CA you might as well disolve the AZ LLC and ...
Purchasing a Vehicle Through an LLC	6/29/2006
Q: The LLC is taxed as a partnership. All taxable income will be passed on to myself as the owner. ... A: first as a single member LLC you will file the results on your own individual return unless you have ...
Purchasing a Vehicle Through an LLC	6/28/2006
Q: I own a Florida LLC Company that specializes in Sewer & Drain Cleaning. I would like to purchase a ... A: Yes ! and NO! YES Section 179 deduction applies but it is limited by icome cost etc. has you ...
LLC Taxes	6/21/2006
Q: There are two members of an LLC that was formed in Minnesota. One resides in MN and one resides in ... A: The llc does not file for the individuals the indivduals file for themselves based on the the k1s ...
Quarterly Payroll deductions	6/15/2006
Q: I have a question regarding the quarterly deposits of my FED/NJ State payroll taxes: As a single ... A: Yes but your byweekly cash draws should be considered an advance. but why are you paying yourself ...
Schedule C question	6/14/2006
Q: I am a small time entrepreneur and have several small businesses running - each is a sole ... A: File as many schedule Cs as you need If you use a Tax program for your 1040 it will have this ...
Tax loss on LLC	6/11/2006
Q: My wife and I own a subchapter S consulting business and a LLC retail clothing store in New Jersey. ... A: Unfourtunatelly your accountant is right even in a cash bussines Inventory is only considered when ...
Donations and tax deduxtions	6/9/2006
Q: Roth I am a sculptor, and recently another sculptor told me that his tax accountant told him that if ... A: Some of it happens to have some basis in fact.But it would have to be a "Bona Fide" Transaction ...
franchise taxes	6/8/2006
Q: Seller is Family Limited Partnership, with offices in Florida, selling property in New York. Are ... A: It would not be subject to Florida taxes, i am not familiar with this in NY But NY State and New ...
Home Sales of two primary residences	6/5/2006
Q: My wife and I were married about two years ago and we both had separate primary residences we each ... A: Very interesting question but if both of you file a joint return the exemption is $ 500,000 ...
w2 to 1099	6/2/2006
Q: I have been employed with this company since July 1995 in Florida. In October of 2001 I relocated ... A: I do not know the legal portion But it seems to me that they accomodated your needs when your ...
Federal withholding mistake	5/23/2006
Q: When my company changed payroll companies, my withholding information as filled out on my W-4 was ... A: when you file your tax return you should get a refund. However if you need the money sooner talk to ...
My employer did not withhold State taxes correctly	5/16/2006
Q: I discovered upon doing my 2005 State tax return (CA) that I owed WAY more than I thought I should - ... A: Sorry Erin I agree with your employer Ugh! you got the money! Think of it as a loan from the state ...
Expenses prior to Incorporating	5/16/2006
Q: This is regarding a C-corp with a single shareholder. Prior to finalizing his incorporation an ... A: yes add 8000 to paid in capital you will either be able to dewpreciate or if profit exceeds $8000 ...
Capital Gains Question	5/7/2006
Q: " My elderly Father recently came to live with me because of dementia. He has a condo in Cocoa, ... A: Yes buying another property has no tax benefit anymore the rules have changed the long term capital ...
tax	4/22/2006
Q: I own my own house plus two rental homes. I recently refinanced one rental and my own house with a ... A: the penalty to cancel the mortgage is deductable as an interest expense. your own management ...
Repayment of prior year wages in CA	4/20/2006
Q: My employer overpaid me $2000.00 by mistake in 2004. I made a repayment of $2000.00 back to the ... A: You need to ask your employer how did he reflect your repayment if he reduced your w2 income in ...
Form 941 for an LLC	4/18/2006
Q: I have a question regarding your answer. You said not to forget to pay quarterly estimates on what ... A: You will need to file 1040 ES you can get it from www.irs.ustreas.gov I figure if you are single ...
Form 941 for an LLC	4/16/2006
Q: I recently formed an LLC with two partners, but they are merely shareholders and are not active ... A: At this time you do not need a 941. the simplesr method would be to pay yourself a mangement fee ...
GIFTED STOCKS	4/16/2006
Q: In maybe 1996 I was gifted $10K in various Bell Stocks my mother purchased on the job through Ma ... A: your basis is the market price of the stocks on the date the stocks were gifted and transfered to ...
Living in one state and paying taxes to another	3/31/2006
Q: My brother lives in Kansas just across the Missouri border, however his place of employment is in ... A: Lisa as a resident of Kansas yor brother needs to file a Kansas resident return. However first he ...
past tax return deadline for refund	3/30/2006
Q: Here's an easy one for you. With the deadline approaching, I want to know: How many years back can I ... A: the statue runs for three years so you would be able to file for 2004,2003,2002 don't hold you ...
Estate tax for nonresident alien	3/30/2006
Q: Good afternoon Mr. Roth, I'm a Swiss citizen and have a US brokerage account at Fidelity which is ... A: My expertize is not estate law, having said that. I believe that a Trust for each other benefit ...
DBA to Corporation	3/29/2006
Q: I have someone that went from a DBA to a Corporation last year. They did this on their own and did ... A: Do first ask latter ! I have no idea why they incorporated other than liabilty protection ? if it ...
Dependent	3/28/2006
Q: My ex-husband came to live with me in 2005. I supplied all the support, as he was not working. He is ... A: I looked this up in the IRS site www.irs.us.treas.gov publication 501 q&a has an answer that ...
LLC Tax return	3/27/2006
Q: I am preparing a tax return for someone who formed a single entity LLC. According to IRS ... A: The election should be made on form ss4 when otaining the EIN number Furthermore I see no ...
DEPENDENTS	3/26/2006
Q: I live in NY and I pay a parent money for living expenses, She is over 70 years old. She Makes over ... A: sorry but unless you provide more than 50% of her support,includes Soc Sec, she can not be consider ...
fitness professional	3/23/2006
Q: I pursue fitness competitions as my career...thinking of incorporating. Can I deduct my expenses for ... A: If you are into this for profit you can report income and expenses, related to this bussiness, you ...
Medical reimbursement	3/21/2006
Q: I believe tax law allows you to write off medical expenses above 7.5% of your income. If you have ... A: No and Yes let me exlain Your total deductions are limited $218000 for a couple $149000 for a ...
llc tax help	3/16/2006
Q: I have an advertising company, i do placemats for restaurants and sell space on them to local ... A: You need to register as s foreign corp doing bussiness in NJ wih the New Jersey department of ...
Business taxes - Schedule A	3/14/2006
Q: I bought the assets of a day spa including tanning beds, hair stations, and some other odds and ... A: This is more of an acounting and planning question than a tax question.. however if your objective ...
Tax benefits to investor	3/13/2006
Q: I am entering into the world of real estate investing. I have a friend who has recently come into a ... A: On the contrary You guys ought to form a partnership whereby your friend retains the tqx ...
Finding a good accountant	2/12/2006
Q: I need to find a good accountant to help with filing Federal and State Income taxes. What questions ... A: I guess if you are doing your bookkeeping on quick books you should be able to do your own taxes ...
What forms and how ?	2/10/2006
Q: First let me say this is my first time filing. I've looked on the irs.gov website but cannot seem ... A: for occupation you put Graphic designer on schedule C for self employment you go to schedule SE ...
stocks loss	2/8/2006
Q: I am very new with money management...and I recently had to sell some stocks at a loss. Now, I know ... A: Yes you can deduct you losses against any future gains. If you have no gains you can deduct $3000 ...
k1	2/7/2006
Q: as a partner in a partnership would a program like turbotax business show me how to transfer a k1 to ... A: if you have the business tax preparation program it will put the items in the proper place on your ...
Bankruptcy...	1/30/2006
Q: I have a question.... I had a small business which was in bad condition so i had to file bankruptcy ... A: Guillermo Sorry to hear about your problems but you should file a Schedule C you even ...
mortgage interest	1/30/2006
Q: i didn't claim the interest i paid on my mortgage for 2004. is there any way of claiming this now on ... A: Sorry but the answer is no but because the standard deduction has increased you may want to ...
Capital gains/losses	1/26/2006
Q: How do I report a loss on a stock that was sold in 2004. It's long term. Schedule D seems to ... A: You offset the losses against gains if what is left exceeds your gains you can Take a $(3000) loss ...
State Sales Tax smartbox	1/24/2006
Q: I am working with an out of state company purchasing computer parts and software. I am in Indiana, ... A: Well I do not know their situation but I do know that Indiana ha a use tax for purchases that are ...
Capital Gaines taxes if relocating	1/21/2006
Q: My family and I moved to Florida last year due to my career. We purchased a house in July of '04 ... A: It does no look that your move would even qualify for job related but by june 2006 you will have 22 ...
LLC	1/18/2006
Q: If this is the first year of an LLC and I am filing a Form 1065 for the LLC for the initial tax year ... A: no if you do not file an 8832 and you have two members you are automatically classified as a ...
Tax Implications of Transferring Family Business	1/5/2006
Q: My family owns a small type-s corporation worth about $2M dollars. My family would like to begin ... A: Nathan the IRS considers family transactions as the equivalent of "kissing your sister" so A loan ...
Must someone with no income file 1040?	1/4/2006
Q: My name is Curtis. I'm writing on behalf of a lady I go to church with. I think she is a resident ... A: If she had no income on her own there is no problem. However if she signed a joint return with her ...
Deduction selling rental house and 1031 exchange.	12/25/2005
Q: I have rental properties held for 18 years and it was sold. Spend $65,000.00 for ... A: Yes you can add all the expenses to your basis if you took depreciation you will have to recapture ...
Cable TV Writeoff	12/15/2005
Q: I work for a Radio Station, and in the course of my workday activities I am occasionally asked to ... A: Normally this type of expense should be reimbursed by your employer If you have been told by your ...
Taxes on Real Estate	12/14/2005
Q: My friend and I bought a home in Florida. We put down $18k. We are gooing to sell it and want to do ... A: any cash you receive will not qualify: To do a 1031 exchange you will have to have an exchange agent ...
Obtaining a federal tax ID #	12/3/2005
Q: I am hoping to get some good advice from of you experts at this site. I am wanting to start an ... A: Various services can do it for you at a reasonable cost less than $500 or you can do it yourself ...
taxes	11/3/2005
Q: -My wife is in the Army with CO as her state of rec. -We lived in CA (2004) and I was employed ... A: keep your fed as is Ask Colorado to provide you with a form where you can separate your wife' income ...
Capital Gain on Personal Home	10/6/2005
Q: We are selling a home we have owned as primary residence for 18 months. We will have a gain of ... A: ok you have two posiblities for a tax free transaction if you stay in your present home for another ...
Raw Land Sale taxes	9/25/2005
Q: I want to know what would be taxes owe to the IRS on sales of a one acre lot located in Central ... A: if held for more than one year the sale would qualify as a long term capital gain because of the ...
500k exclusion	9/25/2005
Q: But our house is in the name of a revocable trust that we created 3 years ago with us as the ... A: I am not familiar with the trust concept but you should return the house to yourselfs from the ...
S corp salary to shareholder	9/9/2005
Q: Ivan, Should a 1 person Sub S corp owner take a salary equal to 100% of his net profit each year? A ... A: There is no reason for you to take a salary unless you are getting close to retirement and want to ...
TAXES	8/30/2005
Q: I'm opening a new job advertising business online in the State of California. I intend to ... A: Ca has an $800 minimum tax on corporations the minimum is even larger f0r an LLC taxwise your best ...
Starting an LLC to avoid self-employment taxes	8/29/2005
Q: I am the VP of a mortgage company located in Ca but I am in Texas. I am currently 1099ed as an ... A: you need to determine if you perform your services in Texas or CA in TX your best bet is to receive ...
Leasing versus Buying business auto	8/25/2005
Q: I am a Realtor in Portland, Oregon. I operate my business as an S-corp. I am looking at purchasing ... A: If you are using solely or mostly for bussines Leasing may work out best as the expense is ...
LLC software upgrades - tax-write off	8/8/2005
Q: I work for a NJ based LLC and we've recently upgraded the software used in ... A: LLCs are governed by the same rules as other business except the tax items are passed on to the ...
starting a small business	8/5/2005
Q: Mr. Roth, Thank you for taking the time to review my question. I am planning to start a small ... A: A good way to do this is to go toWWW.irs.ustreas.gov it has a section Starting a Business and it ...
LLC investing in Commercial Real Estate	8/4/2005
Q: I currently own a pass-thru LLC and looking into the possibility of buying commercial real-estate ... A: You can buy the Real Estate through the LLC. The cost of the real estate is capitalized there are no ...
state tax information	8/4/2005
Q: My supplier is located in Pennsylvania. Being a Canadian I'm not in the know on USA taxation and ... A: the easy way is to go to WWW.irs.ustreas.gov on their page on the upper left they have a box type ...
state tax information	8/3/2005
Q: I have an internet based website that I run from Canada. My supplier is located in Pennsylvania and ... A: This is not my expertize But it is my understanding that internet sales are exempt from the sales ...
Capital Gains	7/30/2005
Q: I own 2 condominiums, both are paid off. The one I have been residing in for the past 6 years is ... A: I would sell the residence as there would be no capital gain on that transaction due to th $250,000 ...
Record retention	7/27/2005
Q: Roth, I am a bookkeeper at a personnel agency in California. We've recently renovated the office ... A: Usually retention of employment records is detrmined by various labor agencies so there is no ...
Tax	7/20/2005
Q: Roth, I had a question regarding tax lein's. I don't know if you deal with that and I apologize if ... A: Mike this is not my field but in general a tax lien is the result of having unpaid property taxes if ...
Gift of Stock	6/29/2005
Q: My father has decided to present my wife and me with a gift of some company stock he received when ... A: you have no tax obligation on a gift enjoy it tax free and your basis would be your father's cost ...
Capital Gains	6/24/2005
Q: Roth, Quick question regarding capital gains taxes. I own a rental property that I just put on ... A: the actual tax will be be due next April 15 however there will be estimated taxes due October 15 ...
irc 1031-QI holding funds	6/11/2005
Q: A Qualified Intermediary (QI) holds funds from a real estate sale on behalf of an exchanger (me) for ... A: technically you had an instalment sale in 2005 but the reportable factor woul be 0% as no cash was ...
Ranch Tax Question	6/1/2005
Q: I have a property tax question. We had a Memorial Day Family picnic the other day at my 115 acre ... A: I am sorry this is not my expertize but I certainly would love to be in your family! That having ...
sub-s, llc, partnership	5/25/2005
Q: I am part of a band that grosses between 100-150K/year. We are currently a GP with each member a ... A: yes changing to a sub S would eliminate for the time being the self employment tax ( 13%) but there ...
Property Swap	5/23/2005
Q: A friend of mine wants to dispose of his primary residence in Nashville, TN that includes two ... A: if he sells the residential property and he is married he would have up to $500000 (250000 if ...
Capital Gains--Sorry! :)	5/21/2005
Q: I know this will be the umpteenth question you've had about capital gains, but I really can NOT seem ... A: You have held the house for more than 366 days so you have a long term capital gain taxed at 15% so ...
Taxes	5/18/2005
Q: I am looking at taking a new job but i'd be contractor. Can you tell me, if the rate of the job is ... A: as a contractor you are subject to back up withholding unless you sign a W9 form indcating that you ...
Working in One state living in another state	5/18/2005
Q: I had rented two different houses (my primary address) in Florida (I have the lease signed by me and ... A: your legal residence is Florida so any travel from your residence to work in New york should be a ...
Tax return never received by state	5/14/2005
Q: We self prepared our taxes as we do every year. This year we owed the state of California and filed ... A: yes (stop payment but that will cost you) or you can just send them a copy of the return you filed ...
reduce my tax burden by donating?	5/10/2005
Q: Do you know if I can offset my personal income tax liability by donating precious Opals from a mine ... A: This is not a simple question but I will try to answer as best as I can based on the above facts ...
tax	5/7/2005
Q: I did day trading over the past four months part time online with the foreign exchange rates (or ... A: normally trading in the market is considered capital transactions the losses would be deductable as ...
Late mortgage interest statement	4/24/2005
Q: We received a mortgage interest statement on APRIL 21 for a "silent second" loan we had in addition ... A: technically you need to file an amended return however from a practical point of view if the amount ...
Taxes on a rental in my multi-unit home	4/21/2005
Q: My husband and I co-own a 4 unit home with my parents. They live in one unit, we live in one, and ... A: Yes Congratulations on you creative thinking! If you have a gain from the rental activity you ...
Subchapter S corp	4/15/2005
Q: My boyfriend owns his own lawn business in FL. He says it's a subchaper S corp. We are engaged and ... A: After marriage I would insist in filing Married filing separately status even though it would cost ...
Self Employment Tax	4/14/2005
Q: I just recently completed my 1040 (using the HR Block online system) it asked me for the income from ... A: for self employment tax your income is the amount you received less expenses remember half of your ...
1099 Miscellaneous income	4/14/2005
Q: I received a 1099 Misc form this year with an amount for $1600 showing on box 7(non-employee ... A: if you have a simple return the misc income goes on the front of the 1040 there is a line for it ...
Inherited legal fees	4/12/2005
Q: My husband's aunt died while in the middle of a lawsuit. She was a partner in a restaurant with ... A: Your husband advance the money for the fees to the estate so the estate could have a deduction ...
Filing for IRA Portfolio	4/12/2005
Q: I have two limited partnerships in my regular IRA. They send me tax statements at the end of the ... A: yyou do not need to report anything on your IRA when you take out the money you will have to ...
S Corp taxes	4/8/2005
Q: I have a 5 family residentail real estate house owned by my S Corp. This property showed a loss for ... A: yes you do need to file 1120s and put your loss in line two of the K1 now it gets tricky if the ...
Depreciation	3/27/2005
Q: Two questions if you don't mind. My daughter/husband about to buy their first house in Louisville, ... A: number one is correct if it is their primary residence for more than 24 months number two the 39 ...
Start up LLC	3/22/2005
Q: I cashed in a IRA account in 2004 (paid the early withdrawl penalty)and put the lump sum ... A: Your start up period ends when you open your doors to the public and make your first sale. If you ...
$500,000 Home Sale Deduction	3/16/2005
Q: My wife and I have lived in a home in California for 7 years, and it has appreciated about ... A: Sorry but the corporation owned by you is a related party producing an invalid transaction see my ...
CAFRG	3/3/2005
Q: In Box #14 in a W-2 what does the CAFRG amount mean? I've been asked that by Turbotax and was ... A: The w2 IRS instructions indicateb this box should be used to give employyes additional information ...
income taxes	2/28/2005
Q: Fidelity Investments shows I took $52,000 from my IRA during 2004. However, $15,000 of this was a ... A: If you followed th appropiate rules for a tax free roll over then you report 37000 on the other ...
Health Insurance premium	2/27/2005
Q: I was self-employed for several years, so I began paying for my own health insurance. I am now ... A: yes your health insurance and all other medical expenses have to exceed the 7% Yes you might make a ...
Capitol Gains Taxes	2/26/2005
Q: What if you sell a rental property, and re-invest the profit made on the sale into another property. ... A: Yes but if it is a substantial amount you may want to look into a 1031 exchange whereby your old ...
dedudctions I can use regarding my partnership in a small buisness	2/25/2005
Q: I am a partner with my mother and father in a small construction buisness. I own 20% of the ... A: Yes but as an employee things become complicated on the other hand if the partnership owned the ...
Health Insurance premium	2/25/2005
Q: I was self-employed for several years, so I began paying for my own health insurance. I am now ... A: Tina the good news is yes the bad news is that you can only deduct as a medical expense deductable ...
Loans for Spec Homes	2/23/2005
Q: I have invested money with a builder I know, his company is an LLC. He is going to start building ... A: Jim if the property including the land was transfered to you and you were the borower of the loan ...
answer for cazza	2/16/2005
Q: I know very little about taxes and forms. Could you please elaborate a little on what you mean by a ... A: you are entitled to deduct some expenses such as charitable contributions and real estate taxes etc ...
Tax credit	2/16/2005
Q: How do I claim credit for the social security tax I paid for my employees in my restaurant? I am ... A: as an emploer you do not get a crredit as such what you paid instead you get a deduction the amount ...
answer for cazza	2/13/2005
Q: I have donated to Christian Organizations for a while now. I normally take my w2form to a tax person ... A: because your earnings exceeded the maximum for earned incom credit(about 11000) you will not get it ...
like kind exchanges / S corp discontinuance	2/12/2005
Q: 1)When real estate subject to long term cap gains is exchanged for like kind property what is the ... A: i will answer the second question first. If you liquidate the corp and contribute the same assets ...
Under Taxed	2/10/2005
Q: Ivan I didnt have enough taxes deducted from my personal income last year and fear the worst from ... A: i figure that if you paid 7000 you may owe at most 2000 also if 7000 exceeds your prior year tax ...
1099-MISC	2/9/2005
Q: I received a 1099-MISC for 2003 after I had already filed my 2003 tax return. Can I just add it to ... A: technically you should file an ammended return practically I would add to 2004 and attach a short ...
Rental Property	2/8/2005
Q: My parents house. They had someone do their taxes and now they want me to try to learn. Well, I can ... A: usually housing is depreciated over 27.5 years (since 1986) so if you multipy last years number by ...
taxes	2/6/2005
Q: my wife just got laid off from work. we usually make 75000.00 per year now I'll be making 45000.00. ... A: sorry to hear No you should look at the depandant worksheet of the W4 you should try to figure ...
Rental Property sale	2/6/2005
Q: Just some additional info..I bought the home as a my primary home in July 1997, and converted it to ... A: your original cost was the cash you put up plus any mortgage you took to finance the purchase you ...
Tax questions	2/4/2005
Q: First off, thank you for your time. I have a few tax questions for you. First, we recieved a $3900 ... A: yes because you deducted that amount in 2003 in excess of what you owed if you did not or used the ...
Taxes	2/3/2005
Q: What do I do if I receive my W-2 and it is postmarked after Jan 31st? I know the company can get in ... A: you have up to April 15 to file your return so if they are somewhat late live with it if you do ...
Employee Stock Option/1099 misc	1/30/2005
Q: I work for a company that was acquired. I had stock options at $0.01 per share. I exercised these ... A: there are various ways to treat this but you need to tell me were these qualified incentive stock ...
online tax prep	1/29/2005
Q: I been wondering about online tax prep,such as turbo tax.what do u think about online tax prep.or is ... A: if your situation is straight forward you should be able to file on line go to the IRS site ...
Setting up IP asset on the books of early stage company	1/29/2005
Q: I am helping an entrepreneur with financial projections. He has developed a software program over ... A: You would record the amounts spent as start up expense and issue stock as paid in capital for the ...
what do i get back now that I am a homeowner	1/28/2005
Q: -------------------------Hi there so we will get nothing back? we did pay taxes of $961.00 you say ... A: if you paid 961 in taxes this will reduce your taxable income by that amount aprox 200 dollars in ...
Questions about tax	1/27/2005
Q: I'm a 2nd Year college student with a part time government job (as a independent contractor), my mom ... A: if you file as a separately as a dependant of another you will have very little or no tax to pay do ...
W2 & Housing Allowance for Rental Mgrs	1/27/2005
Q: I am an asst mgr of a housing rental property in CA, and am paid by the hour. The property owner ... A: Ruby in short if you are required to live at the property the 1/3 discount is not taxable income to ...
real estate tax	1/27/2005
Q: I live in Florida and am selling a home (paid in full)in erie county, NYS. I heard that NYS may ... A: Rose is the home your previous residence (lived there for two years of the last five)? if so you ...
what do i get back now that I am a homeowner	1/26/2005
Q: My husband and I purchased a home in Maryland last year in March our 1098 is $11,592.00 how much of ... A: first congratulations on your new home As a homeowner you get nothing back However that portion of ...
child support	1/21/2005
Q: I pay child support can I claim this on my taxes or how do I go about claiming it thank you Answer ... A: child suppot is not deductable as it is considered your obligation however if you pay more than one ...
CA resident purchase house in AZ - tax implications	1/21/2005
Q: In Oct 2004, we purchased a house for $153,500 in AZ that we intend to rent out. We live in CA and ... A: i am not familiar as to AZ requirements for federal purposes it all goes into one pot and makes no ...
filing taxes while out of country	1/12/2005
Q: Hey, I am a college student who will be leaving very shortly to persue a semester abroad and have ... A: I think that you should have some one in your family forward your mail you can file a 4848 to get an ...
LLC - use of personal vehicles	1/6/2005
Q: I have recently formed a single-member LLC. It is a heating/air conditioning service and ... A: 1) if the company reimburses them for acounted travel then they will have no income and the company ...
Tax - Business Expenses & Deductions	1/6/2005
Q: Ivan - I'm starting a business and will be splitting my time between Houston (primary residence) and ... A: Don the rules applying to your situation get pretty complicated but in essence having two homes will ...
Tax question	1/6/2005
Q: We run a small property management business and have to file l099's for our owners rent that we paid ... A: first it should be $50 per owner so unless you had 50 owners the amount is wrong? second this does ...
Qualified Benefits for Owners/Shareholders	12/25/2004
Q: I am creating a new business entity for 2005 and have filed corporation papers. I understand I have ... A: an S corp is good for you but you need to apply before March 15 or 75 ays after your corp is ...
software development costs depreciation	12/21/2004
Q: As a followup, I read that IRS hasn't given any guidance on treatment of web site development ... A: I think based on the above you may have a reasonable possition to use three year depreciation but ...
software development costs depreciation	12/20/2004
Q: How do I deduct softare development costs for a website we have developed over the past 2 years. It ... A: If this is considered computer software it would need to be amortized over 15 years however there ...
Business Mileage Deduction	12/17/2004
Q: Ivan, I have a full-time job as well as I own a Laundromat business. From home, I go to my ... A: only your tavel fron work to the laundromat if your travel from the laundromat home is more than ...
C-Corp, TX	12/16/2004
Q: I have a C-Corp which earned real estate brokerage income this year. I am an officer of the company. ... A: Yes but remember that if you are paying out a salary that does not get taxed as corporate income ...
NOLs	12/14/2004
Q: If one C Corp is buying another (no owners in common) and the the latter has NOLs can and how are ... A: There are many posiblities the simplest I can think of simplest if you plan to continue in a ...
Deducting Office Equipment	12/10/2004
Q: Someone told me that 2004 is the last year you can deduct at 100% equipment such as personal ... A: I am not aware of this but I think whoever told you this must have been thinkink of section ...
No proof of purchase for resaleable items	12/8/2004
Q: I buy/sell items on ebay and other online venues. I also buy items to resell from local flea ... A: Karen sorry it took so long but I had computer problems You should try to pay by check if not ...
married couple owning individual homes	12/6/2004
Q: Is it legal for a married couple to individualy buy a home,(one in PA and one in FL) and deduct ... A: yes florida has a homestead for residents my suggestion is for you two to consider FL the main ...
Tax Schools	11/27/2004
Q: I would like some advice on where to take a tax preparation course. The class will have to be a ... A: I think any reputable school should be ok by the way when I went to college we had a texbook on ...
Claiming a child that is on welfare	11/22/2004
Q: Can I claim my little sister on my taxes who is 12 and has been living with me for the past 6 ... A: the fact that your parents are on social security is not significant as they may be required to file ...
Partnership tax returns	11/21/2004
Q: I am forming an LLC in Idaho, and will be taxed federally as a partnership. I have been looking over ... A: 1 yes 2 just attach a schedule as Misc Deduction listing ie advertising $$$ ...
property tax question	11/20/2004
Q: I have a coop in NYC. I have lived there for <2yrs and it has been my primary residence. If I sold ... A: if you mean less than 2 years you would be required to pay capital gains however if you kept your ...
Multi-state income tax responsibility	11/16/2004
Q: I am going to become a distributor for chemical products. My supplier is based in TX but the ... A: how will the orders be placed for your products? the diferent states have rules relating to what ...
Moving to Ct. work in NYC	11/11/2004
Q: My Husband & I are looking for a home i n CT, and he will be working both in CT and NYC, what are ... A: He will be a resident of ct and will have to file a CT income tax return for all income as reporte ...
quarterly taxes	10/12/2004
Q: my wife started working in february '04. she is a therapist and works at 2 different schools. at one ... A: You need to get a quarterly estimated tax form from the IRS however if you do not want to bother ...
Effect of Closing out a Roth IRA Account	10/8/2004
Q: I have two Roth IRA accounts. One in a mutual fund that has LOST $200 since it was opened a few ... A: therE is no tax AS SUCH however if you have not reached age 59/1/2 there is a penalty for early ...
Tax Preparer	10/5/2004
Q: I just sent a question and failed to ask one of the more important questions. If I wish to charge ... A: You do not need anything else however you won't be able to represent your client at the IRS ...
Preparing Taxes	10/5/2004
Q: I've always done my own taxes and those of family and friends every year and it has become easier ... A: Ed I answered you second question first what yo said is correct You should have H R Block prepare ...
Social Security	9/29/2004
Q: I would like to not pay into Social Security anymore. I currently am a V.P. (Independant ... A: Todd you have no choice However you may want to transfer your bussiness to a Subchapter S ...
real estate investment properties	9/23/2004
Q: Have talked to you before and really appreciate your help. Is there a correlation between ... A: depreciation relates strictly to a tax deduction that may be available to owners of commercial ...
Classes as a business expense	9/17/2004
Q: I am taking real estate classes and am wondering if these can be deducted from taxes as a business ... A: sorry the answer is NO education expenses incured to become anything are not deductable. however ...
1099m	9/16/2004
Q: My accountant want me to send him certified letter, ask him to correct it, but he never answer, I ... A: As we say in NYC FUGEDABOUDIDDDDDD! go on with your life if you think this ...
1099m	9/14/2004
Q: My ex-employer keep giving me trouble, from early of this year, he sent me 1099 tax form, the amount ... A: read the letter (the ostrich method does not change anything) when you file yor tax return report ...
State taxes to another state other than were I live	8/29/2004
Q: I am from Tennessee. I gamble frequently in Mississippi, and have won a considerable amount. The ... A: Yes also you may have a credit if you pay Tn resident Income tax (I am not familiar with Tn ...
Tax event or not?	8/27/2004
Q: I own a summer cottage that includes a house and a piece of land on the waterfront (all on one ... A: as you describe it would have Capital Gains now however if you and your neighbors would form a ...
CA mandatory withholding on real estate transactions	8/26/2004
Q: Is income from a real estate transaction taxable? If not why the withholding? A: it depends it could be yes or no Real Estate Transctions can have Taxable Capital Gains if it ...
Capital gains on real estate	8/9/2004
Q: 4 years ago my parents bought a home for my son and I, since due to a nasty divorce, my credit is ... A: take two excedrin ! but you might want to consult with some one in you local IRS office(don't ...
Tax position question	8/7/2004
Q: I am presently self-employed. Have been for 9 years full time. I do residential and light commercial ... A: Ken In the state of Texas taxwise your best bet is the Limited Liability partnership as it is not ...
Capital gains on real estate	8/6/2004
Q: 4 years ago my parents bought a home for my son and I, since due to a nasty divorce, my credit is ... A: if the title was in your name even if you parents paid for your house it is your your capital gain ...
non resident state tax	7/6/2004
Q: we have been offered a position at a NY Business. The salary will be from the NY company and we ... A: Normally there should not be however New York has taken the position relating to Homework in CT that ...
LLS versus S-Corpn ??	6/30/2004
Q: Is there a tax difference between an s-corpn and an LLC in regards to compensation for the officers ... A: if you treat it as a salary you would be subject FICA however if the income is passed ...
taxes	6/30/2004
Q: 3 questions: 1) I have a Rhode Island Corp and I drop ship merchandise from another state. From ... A: you seller ought to ask you for the proper resale certificate the user recipient of the merchandize ...
Capital Gains	6/28/2004
Q: I bought a condo in Florida for my daughters to live in while they went to College. 4 years later I ... A: First congratulations on your daughters and that inteligent move This would be a good time to ...
My aunt is giving me her 2000...	6/24/2004
Q: My aunt is giving me her 2000 acura 3.2TL. It is NY registered and NY plate. The car is worth in the ... A: If she sells it to you there will be a NY sales tax however if she transfers the car to you in CT ...
State Tax Laws Filings	6/24/2004
Q: Followup To Question - Dear Irxq I am an accountant of a delaware based LLC with offices in ... A: go to www.irs.ustreas.gov this is the federal site it has a link to the states a map of the ...
paper due in accounting	6/17/2004
Q: im a student at bryant & stratton college. I have a few questions to ask you. I need to know about ... A: Our corporate culture is driven by our founder basically a entrepenour in Real Estate our dress code ...
Tax	6/14/2004
Q: Which state is easiest to incorporate in as far as: Is there a state that does not have sales tax? ... A: All states have a sales tax however there is no sales tax on out of state internet sales Nevada is ...
Gift taxes	6/5/2004
Q: My mother wishes to gift her CA house to my brother and I. Do we need to claim as gift income? A: your mother may gift $11000 to each of you each year without having to file or pay a gift tax if she ...
exemption certificate	5/21/2004
Q: why would I need A FUND TAX EXEMPTION CERTIFICATE WHEN THE FUNDS WERE INHERITED. and how do i get a ... A: I am not aware of what a "fund tax exemption" is it sound like something in England In the USA ...
Tax Law for LLC business	5/6/2004
Q: I have registered a LLC software company from Delaware in July 2003 My question is even if I do not ... A: you have no payment due to the IRS if you are a single member and should have revenues and expenses ...
Hi I have registered a new...	5/6/2004
Q: But have not done any business through this company and nor have opened a bank account with this ... A: the minimum annual registration fee for an LLC in NYS is $325 if your LLC is not doing business in ...
Donating ESPP stock	4/16/2004
Q: Sorry for not being specific. I purchased all shares at 85% of FMV. I've owned some shares more than ... A: if you dispose of the stock in less than two years you would not qualify for ESPP rules and all the ...
Donating ESPP stock	4/14/2004
Q: I have purchased stock in my company through an ESPP account. It seems that donating this stock to ... A: If you purchased the stock at the fair market value or have held it for two years you would have a ...
new business tax laws	4/12/2004
Q: My father and I have just gotten a general contractor business license in Washington County, TN. ... A: It sounds to me that you are a partnership unless you have established a Corporation to run the ...
Franchise Tax for S Corporation	4/2/2004
Q: How do you know how much Franchise tax you pay for your S. Corporation. I am completly confused. I ... A: The answer to the franchise tax question depends in what State are you operating in As to the ...
renting a property to section 8 housing	3/30/2004
Q: First of all, thanks for the service. I'll keep the question short. I own two homes. one is ... A: Yes the total amount of rent will be income. You will be able to deduct any expenses you incur ...
Nevada corp	3/28/2004
Q: Irxq, A couple buddies and I started a few S corps 5 years ago. We have supplied the capital to ... A: I agree with your accountant A Nevada S still is subject to Federal taxes and if it is doing ...
s-corp dissolution	3/15/2004
Q: Followup To Question - I filed all the necessary dissolution forms with the state of new jersey ... A: I don't think so but the form seems to be simple enough and you have not distributed property other ...
income from 2 states	3/15/2004
Q: I worked in north carolina until June 30th 2004 and then I went to New York to work and stayed at a ... A: for 2003 you are a NC resident and a NY non resident be sure to prepare NY first so you can claim a ...
C Corporation problem	3/15/2004
Q: Here is my dilemna. I earned approx $95,000 last year and paid the taxes as I should have. I also ... A: No because the consulting or management fee income is subject to self employment and Medicare tax ...
final k-1 of partner	3/12/2004
Q: partner received final k-1 with 22000 line 22 distribution and no other items to report. the ... A: The capital account is the $$$$$ invested +/- any income( loss) allocated to the partner less any ...
Do I need an EIN?	3/11/2004
Q: I have been a sole proprietor with an EIN since 1986. A few weeks ago, I formed an LLC with my ... A: Yes you need an EIN for the LLC you can get by calling the IRS on the phone 1 800 829 993 or filing ...
Where do I report the profit on selling of my 4 duplexes	3/11/2004
Q: I live in Florida, and have sold my 4 rental duplexes in 2003. I bought them in 1998, which I took ... A: you need to use form 4797 which will take you to the 1040 D bottom line is sale price 270k ...
Student Tax Return	3/9/2004
Q: irxq Sent you this earlier but I forgot I can't receive email from Allexperts at dgoad@comcast.net. ... A: Yes she needs to file a schedule C which results on $400 of income tax and $1700 of self ...
S Corporation - Loans	3/9/2004
Q: I have a business which is set up under a S-Corporation. I am thinking of starting a second ... A: either way is ok but if a withdrawl leaves you with a negative capital you may not be able to pass ...
401k and Medical Insurance	3/8/2004
Q: Before tax 401k contributions: Tax deductible? Medical insurance withdrawn from my paycheck: ... A: no because they are not included in taxable on your w2 first if they were withheld undr a company ...
1120S	3/4/2004
Q: Hopefully you won't my asking a follow up... My question was that if my S-Corp had $126K in ... A: exactly unless you are talking a very large amount {for discussion purposes only say one Million) ...
1120S	3/3/2004
Q: Please excuse me, it's still not entirely clear to me how to classify the income. FIRST ----- I ... A: the S income goes on schedule E and then is transfered to line 17 in your case the 60k the Sub s ...
Margin interest expense	3/2/2004
Q: I have $16,000. in margin interest I paid in 2003. I have dividends earned of $25,000 which are all ... A: nothing has changed since your interest is an investment expense and deductable as interest expense ...
1120S	3/2/2004
Q: I'm a computer consultant incorporated as a S-Corp. I've read that I can structure the ... A: Salaries paid by a Sub S corp are treated as any other salaries and deducted on page 1 line 7 of the ...
TAX RETURNS	3/2/2004
Q: I WAS JUST WANTING TO KLNOW HOW MANY YEARS BACK I CAN FILE STATE TAXES FOR NEW YORK. I AM MILIOTARY ... A: the statue runs for 3 years so you are ok for 2002 2001 and 2000 I would also try 1999 and see what ...
Tax Question	2/24/2004
Q: I have a question that I am hoping that you can answer. There is a 2- family house that is owned by ... A: QUESTION 1 since the one sister is not paying the taxes etc the ones living there get to deduct ...
Question about purchasing back stock	2/20/2004
Q: I have given an employee several shares of stock in my S-corp company. I now have established a ... A: the purchase of the stock results in treasury stock or upu may cancel it ha no tax consequences ...
Sole Proprietorship Revunue Posting Question	2/20/2004
Q: I am a sole proprietor and have been in business for about 2 years. Last year I worked on a few ... A: OK CASH IT IMMEDIATELY! Since you are on the cash basis of accounting you should pick up the income ...
Rolling Traditional IRA Dist. to Roth IRA	2/19/2004
Q: I am receiving traditional IRA distributions under section 72(t) since I am younger than 59 1/2. ... A: Don I am as baffled by this as you are probably if you ask one or the other plan's administrator ...
We just started a C corp....	2/18/2004
Q: We just started a C corp. (a graphic dsign firm) and we were wondering how to go about paying ... A: the answer is yes but you should be an S corp rater than a C corp which is taxed at a higher rate ...
We just started a C corp....	2/18/2004
Q: We just started a C corp. (a graphic dsign firm) and we were wondering how to go about paying ... A: the answer is yes However in your situation a C corp is probably the wrong choice as they get taxed ...
Tax help	2/13/2004
Q: I'm starting a home business which is a partnership. I'm wondering about taxes and laws. What ... A: a partnership would file a 1065 information return it distributes the profit or loss to the partners ...
Fictitious Business Name vs. IRS	2/11/2004
Q: My fiance and I started a business in May of 2003. we filed for a fictitious business name in Los ... A: it seems to me that you have a joint venture and you can file your share on your 1040 and you could ...
partner sale to partnership	2/10/2004
Q: So, do I report interest charged to the LLC on the 1040 also or is there another form. (The ... A: the interest expense is shown on the partnership return form k1 and then you pick it up as an ...
partner sale to partnership	2/8/2004
Q: I purchased a rental property and sold it to a newly formed LLC (with partner) by a promissory note. ... A: you have two transactions you sold the property and you have a capital gain reportable on your ...
Working in another state part of the year.	2/7/2004
Q: he worked in PA, on a college co-op program for just under 6 months he also worked the rest of the ... A: he is still your dependant if he attends college and is under 19 years of age. If he is over 19 and ...
milage expences	2/7/2004
Q: If I claim vehicle expences by line item, can I also claim a standard milage expense. What is the ... A: 36 cents per mile if this is a bussines expense it goes on the schedule C and you are ok for the ...
Tax Withholdings	2/6/2004
Q: Is there a formula or way to figure out what percentage of my income is not taken out of my paycheck ... A: yes get a tax table form the 1040 instructions and look up your current tax and what it would be at ...

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