| Subject | Date Asked |
|
| Back taxes.. | 11/5/2009 |
Q: First I use to work for PWC in Chicago on the consulting side (SAP), just before the spin off, ...
A: The fact that the taxes have already been assessed means that he cannot lay low if he has a bank ...
|
| offer & compromise | 10/23/2009 |
Q: I have submitted an offer and compromise to the IRS and have not yet heard back. I am planning on ...
A: The times vary widely. You should allow 6 to 12 months from submission for it to be completely done. ...
|
| offer & compromise | 10/23/2009 |
Q: I have submitted an offer and compromise to the IRS and have not yet heard back. I am planning on ...
A: Yes, you should wait to get married until your Offer in Compromise is resolved. Getting married will ...
|
| Tax filing issues | 10/5/2009 |
Q: We have not filed a return in 3 years due to some issues my husband is having with his SSN matching ...
A: First, you are certainly not in any danger of jail. In fact, if you have had normal withholding or ...
|
| Delinquent taxes | 9/29/2009 |
Q: We did not file our federal taxes this year as we did not have the money and thought you could only ...
A: You simply need to file the return and get into an agreement to pay the tax due. You can file Form ...
|
| accounting from IRS | 9/18/2009 |
Q: I gave the IRS $10,000 at the San Diego office two months ago. I still owe about $8,000 in back ...
A: The IRS does not send acknowledgements of payments received. You can call (800) 829-1040 to find out ...
|
| Tax refund due to deceassed relative. | 8/28/2009 |
Q: A relative died in 2007. Upon settling her estate, the heirs discovered that she was owed nearly ...
A: Any refunds that are due would belong to the estate and as such, would be paid to the administrator ...
|
| mileage laws | 8/12/2009 |
Q: I started working with my insurance company as an agent last august. I bought a new gas efficient ...
A: I cannot say whether you will owe or not without all the details. Often the standard mileage rate ...
|
| Major income tax problems... | 5/28/2009 |
Q: I was divorced in Jan-2001...that year and the following years all up to 04' I have bulked together ...
A: I have many people come to me who have not filed in a few years and they are terrified of the ...
|
| IRS levy | 5/22/2009 |
Q: The IRS has sent me a notice saying they may levy my SSI in 30 days. Can they use this levy letter ...
A: A letter 1058 covers more than just your social security. A CP-90 is what is typically issued by ACS ...
|
| Taxes Payment Plan New Laws | 5/6/2009 |
Q: Do you know if it is truth that congress recently approved new laws that benefit people who are in ...
A: Congress has not passed any laws on the subject recently. The IRS did announce a relaxed policy on ...
|
| Tax Levy for 2003 tax | 4/20/2009 |
Q: I haven't filed taxes since 2002. Apparently the IRS extimated my 2003 taxes and I didn't know ...
A: Yes, you can file the actual return and it will replace the IRS assessment. However, this could take ...
|
| Delinquent Filer | 4/15/2009 |
Q: I have not filed income taxes since the 2003 tax year. I am expecting a refund for all delinquent ...
A: The years prior to 2008 are delinquent and filing an extension will not change that so there is no ...
|
| When Nothing Seems to Fit... | 4/13/2009 |
Q: should you decide to answer this one. You better sit down though. In late 2002, I had been making ...
A: Your situation is far from hopeless. There is no possibility of jail time either. The very worst ...
|
| IRS Tax Lien on My Property | 3/30/2009 |
Q: My ex-husband's and my divorce was final over two years ago. In the divorce, I received two ...
A: First of all, even if the lien had attached to the property, the IRS would not "take" the property. ...
|
| Tax audit | 3/29/2009 |
Q: My ex husband is incarcerated. He informed me that they are doing an audit review of his taxes for ...
A: First, who is doing the audit? The IRS cannot by law audit four years back, except in certain ...
|
| Tax Lien | 3/27/2009 |
Q: I am in the process of trying to get divorced. My husband left me and abandoned me financially. I ...
A: Since your husband is an owner of the house now, the lien attaches to the property and remains until ...
|
| Tax Lien | 3/27/2009 |
Q: I am in the process of trying to get divorced. My husband left me and abandoned me financially. I ...
A: If you were wanting to sell it, there is nothing you can do. However, the IRS recently announced ...
|
| how do I find a preparer with experience in delinquent tax returns? | 3/27/2009 |
Q: An accountant who said he had a lot of experience in dealing with the IRS and filing delinquent ...
A: Well, I have to tell you that I have a conflict of interest here since delinquent taxes and ...
|
| delinquent taxes and OIC | 3/26/2009 |
Q: Last fall I filed 2005, 2006, and 2007 tax returns, and as such have a significant liability. I am ...
A: (1) You can include the student loan payment on the 433-A, however, if you try to get into an ...
|
| penalty abatement | 3/19/2009 |
Q: Good afternoon, Wanting to respond to Irs to abate penalties. In 2007 payroll taxes were paid in ...
A: There is just not enough information here to give you an answer. Penalty abatement are based on ...
|
| repaying tax debt | 2/23/2009 |
Q: I became disabled on February 15, 2009,I proceed to draw my short term disability then went on to ...
A: When you get the bill for the tax due, you can get an installment agreement to pay the balance. ...
|
| On Payment Plan | 2/17/2009 |
Q: I was audited and it turned out I owed money in 2006. I signed up and was approved for the payment ...
A: There is nothing to do on your tax return this year regarding payments made under your installment ...
|
| deliquent taxes owed | 2/17/2009 |
Q: I owe taxes of approximately $2500 (before penalties or interest) on my Federal Tax Return for 2005. ...
A: There is no point in paying interest and penalties with the amended return because there is no ...
|
| Spouse owes taxes | 2/16/2009 |
Q: My spouse and I filed married for tax period 2005 & 2006, in 2005 my spouse failed to claim a 1099. ...
A: They will not keep your refund if you did not file jointly. There is certainly no requirement that ...
|
| Innocent Spouse Claim | 2/13/2009 |
Q: I was married for thirty-four years. My husband passed away May 26, 2006. I learned that he had ...
A: No you do not. You must meet all of the following conditions to qualify for "innocent spouse ...
|
| Applying Tax Refund to Taxes Owed | 2/12/2009 |
Q: I finally got caught up on my taxes using the services of a CPA. I owe the IRS $4000 from 2002 and ...
A: The answer is straight forward, the refunds for 2003 and 2004, assuming they were caused by ...
|
| Home Improvement | 2/11/2009 |
Q: I have been hearing that certain home improvements are tax deductible. Is a new concrete driveway to ...
A: Home improvements are not deductible unless you have a legitimate home-office situation and the ...
|
| OIC & Form 433-A | 1/27/2009 |
Q: I have questions about OIC Section VI, and Form 433-A, Section 4 and Section 9. According to the ...
A: Filing and offer in your circumstances is tricky and really not advised. Your roommate of course ...
|
| Haven't Paid Taxes in awhile... | 1/26/2009 |
Q: I have a problem that I've let linger far too long mainly due to confusion or a lack of ...
A: "1. I'm thinking now would be the best time to file but was unsure as to how to file since I have ...
|
| tax laws for 1099 | 1/18/2009 |
Q: i work for a small maintenance company and they take no taxes out of my check. the checks are wrote ...
A: Unfortunately, you will likely not get a refund and may owe a lot of tax because of the way you were ...
|
| LIEN | 11/6/2008 |
Q: I have a federal tax lien on my record from my ex-husband businesses dated back in 1987 thru 1992. ...
A: Showing the IRS this paperwork will do no good. Contracts that shift tax liabilities do not bind the ...
|
| 941 S-Corp Question | 11/4/2008 |
Q: I shut the doors of my mortgage brokerage firm in the summer of 2008. We were an s-corp in ...
A: You can wait and see if they do not assert the penalty. Not likely, but possible. If the do, you can ...
|
| 941 S-Corp Question | 11/4/2008 |
Q: I shut the doors of my mortgage brokerage firm in the summer of 2008. We were an s-corp in ...
A: If the corp. can or won't pay the taxes, the IRS will likely assess what is called the Trust Fund ...
|
| Tax withholding | 10/31/2008 |
Q: My son is working for a company that pays him as a contractor with no taxes withheld. He receives a ...
A: Yes he does. He also needs to understand what his filing responsibilities will be. Go to: ...
|
| OIC | 8/4/2008 |
Q: If a currently out of work, single (divorced) taxpayer that is seeking employment, but hasn't found ...
A: If you are currently not employed, the IRS will look at the last three years of income, typically ...
|
| K-1 question | 7/23/2008 |
Q: I think I understand the function of the K-1 but I am being asked to provide this form to a person ...
A: If she was a partner in 2007, she is entitled to a K-1 or a some statement showing her share of ...
|
| Injured spouse deductions allotment | 7/18/2008 |
Q: I am trying to fill out an injured spouse form, as I recently remarried and am not liable for my new ...
A: If you itemize your deductions, enter each of your separate deductions, such as employee business ...
|
| child support | 6/29/2008 |
Q: I have been married a year, and my husband and i just filed joint taxes. My husband has to pay ...
A: If his case has advanced to the stage where the IRS is involved - then the refund will likely be ...
|
| IRS Lien on Property | 6/26/2008 |
Q: The title search on the property my husband and I are in the process of purchasing (a short sale) ...
A: The lien will only be released if the tax is paid or the IRS subrogates the lien. If there is enough ...
|
| past year tax | 6/17/2008 |
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ...
A: If you do not know what your income or expenses were for 2006 and 2007, you can base it on your 2005 ...
|
| Bonus | 4/11/2008 |
Q: What does the tax law say about how bonuses must be paid and taxed. For example is a single bonus ...
A: If they will not make a manual adjustment than yes, spreading it out is better. They cannot pay it ...
|
| Bonus | 4/11/2008 |
Q: What does the tax law say about how bonuses must be paid and taxed. For example is a single bonus ...
A: A bonus is taxed just like regular salary. The problem comes in when you get a bonus in large lump ...
|
| 1099-misc question | 4/10/2008 |
Q: i recently received a 1099 misc. i know that i must file schedule se and schedule c. i was ...
A: You may not deduct as a business expense on your Schedule C the costs of educational expenses that ...
|
| 1099 and W-4 | 4/8/2008 |
Q: I am both a 1099 contractor (with one contract to only one company, making less than $3,000 in 2007) ...
A: You will report the W-2 income on your 1040 and your 1099 income on Schedule C or C-EZ. You can also ...
|
| WA State Sales tax | 4/4/2008 |
Q: Mr. Wellman, My construction company is currently two months behind on paying our states sales tax. ...
A: I cannot answer for Washington specifically, because I have not dealt with them. But I have dealt ...
|
| Engagement Letters for Tax preparers | 3/19/2008 |
Q: For the first time ever, we had an engagement letter added to our prepared taxes. This seemed like ...
A: No it is not true. It is a good idea for the preparer to get one because it protects them. It really ...
|
| 1099-Misc income | 3/1/2008 |
Q: I'm trying to help a friend with his tax return and I've never come across this issue. He got a W-2 ...
A: You could enter it on 4797 but the easiest thing is to put it on line 21 with an offsetting entry on ...
|
| delinquent federal tax questions | 2/22/2008 |
Q: I have not filed federal or state(CA.)income taxes since 2001. I am in the process of filing all ...
A: (1) No income - no requirement to file (2) You cannot get a refund if you had no income (3) No it ...
|
| debt settlements | 2/14/2008 |
Q: My ex-boyfriend and I got a loan together. Well to make a long story short when he promise that he ...
A: Debt cancellation is generally taxable. However, if you were insolvent at the time, you can exclude ...
|
| charged off loans and taxes | 2/7/2008 |
Q: I just received a tax statement from a credit card account that has been closed(charged off) for ...
A: Cancellation of debt is considered income and the lenders are required to send out a 1099-C on those ...
|
| childs disability award | 2/7/2008 |
Q: I was just recently approved for disabilty with social security. My son as a dependent will get an ...
A: The income is reported on the return of the person who has the legal right to receive the benefits. ...
|
| estate taxes vs. income taxes | 2/6/2008 |
Q: Among other assets my mother left me several stocks. (The total amount of the estate will be over ...
A: There is only one value for both. The value is the market value at the date of death or precisely ...
|
| why do i owe taxes | 2/1/2008 |
Q: i am 26 going on 27 years in age and i made an estimated 60k this past tax season. the irs takes ...
A: Most likely because you are claiming too many exemptions on your W-4 or using the wrong filing ...
|
| Married filing seperately with itemization, but spouse will not cooperate | 1/31/2008 |
Q: I am asking this in proxy for my girlfriend. She is still legally married, but living apart from her ...
A: If she filed MFS, the IRS will likely contact her husband and he may be compelled to file MFS and he ...
|
| Gift of Cash | 1/30/2008 |
Q: If I gave my children a cash gift for the 2007 tax year, does the money have to be deposited before ...
A: The date the checks were mailed or made available to the kids. If the gifts were less than $12,000 ...
|
| Dependant tax question | 1/30/2008 |
Q: I have a 18 yr old daughter that is a full time student and living with us, and working. She ...
A: You are entitled to claim your daughter as a dependent on your return but you cannot claim her ...
|
| 1099-A Deed in lieu of foreclosure | 1/30/2008 |
Q: I have a big problem. I did a deed in lieu of foreclosure with a lender in CA that had both the ...
A: I can't explain why you got two 1099's except that it makes sense that one was for the first and the ...
|
| claiming mortgage interest | 1/30/2008 |
Q: My grandparents recently fell ill and My uncle purchased their home. Via Mortgage. However, Due to ...
A: In order to claim the mortgage interest deduction, you must actually make the payments AND you must ...
|
| 1099 Misc wrong | 1/30/2008 |
Q: I received a 1099 Misc form and in box 7 the amount is way more than I actually received. The only ...
A: Report what he actually paid you. In about a year, you may receive a letter from the IRS asking ...
|
| Sole proprietor tax records request | 1/28/2008 |
Q: I was recently looking to buy a business from an associate of mine. I requested the tax returns for ...
A: You cannot compel the release of tax information and there is no place you can go to get it. The ...
|
| Rental Property | 1/28/2008 |
Q: I have a rental property that I purchased that needed a good amount of repairs to make to make it ...
A: Some items such as the floor and aluminum siding must be capitalized. Others, like the windows can ...
|
| Business Use of Home | 1/27/2008 |
Q: I work for a startup and out of convenience to my employer, I work out of my home. I plan to deduct ...
A: Yes, but I am speaking of things such as utilities, insurance and mortgage interest. You cannot ...
|
| Claiming dependants | 1/27/2008 |
Q: I was divorced several years ago and had agreed to allow my ex-husband to claim one of my children ...
A: Well, the worst thing that can happen is that they will disallow your deductions and any credits ...
|
| Income Tax Interception | 1/27/2008 |
Q: My daughters father has two warrants / judgements ($7740.00) for back child support. For the last ...
A: I am sorry but no. Since she will file as single - there will be no connection with her and your ...
|
| 2007 turbo tax for 2008 | 1/25/2008 |
Q: I know that there are new laws every year. What do you think the harm would be if I did my taxes up ...
A: Turbo Tax 2007 is the current year version for preparing 2007 taxes due in April 2008. Turbo Tax ...
|
| Follow up to Business Tax Question | 1/25/2008 |
Q: Sorry, we formed it under an S Corporation. Does this help? I asked the following question (see ...
A: If it was a Sub S, they should have filed an 1120S and sent you a K-1 each year. If they did not, ...
|
| Income Tax | 1/25/2008 |
Q: I am in a bit of panic mode here, I have had 2 jobs for a few years now and in Feb. of 2007 I was ...
A: The company has until 01/31 to mail NW-2's. They are required to mail to the last known address. I ...
|
| 1099 | 1/24/2008 |
Q: My son was hired by a gentleman to work in his buisness. He decided the hourly pay, gave my son a ...
A: Employers are responsible for withholding and paying over taxes of employees - but not for ...
|
| Withholding Payroll Taxes for Investment | 1/24/2008 |
Q: Is it legal to max out your dependency status to nine dependents on your W-4 when you are single ...
A: It is not legal and, if you owe more than $1,000 when you file your return, you will pay a 10% ...
|
| 2008 Capital Gains | 1/24/2008 |
Q: My father-in-law told me that in 2008, there will be no capital gains tax. As I read about it, it ...
A: Like most father-in-law advice, it has the ring of truth to it but it is not totally accurate. The ...
|
| Personal taxes | 1/24/2008 |
Q: My Fiancee is getting a 1099 (making no more than 9000 for the year) he is claiming his self, our ...
A: If you get a 1099 - you are considered by the IRS to be self-employed. His employer is just saving a ...
|
| question | 1/24/2008 |
Q: i did not work last year but had a baby can i still claim taxes?
A: You are not required to file. Since you had no earned income, you cannot get the earned income ...
|
| insurance reimbursements taxable? | 1/24/2008 |
Q: Our condo suffered interior water damage. Our homeowners Ins issued a check to us less the ...
A: Sure, but he will get in trouble for it. If he reports it, you may get a letter in a year from now ...
|
| Race Car Driver and sponsors | 1/24/2008 |
Q: I see that the expense for the sponsor maybe deductible but is it taxable to the individual who is ...
A: Yes, but only if his sponsorship income exceeds his expenses from racing (doubtful but possible). As ...
|
| insurance reimbursements taxable? | 1/24/2008 |
Q: Our condo suffered interior water damage. Our homeowners Ins issued a check to us less the ...
A: He only pays taxes on money he received. If he is an accrual basis taxpayer (unlikely) and he ...
|
| 1099 - But we never took the money. | 1/23/2008 |
Q: Last year, my husband had surgery. He was scheduled to take short-term disability payments while he ...
A: You have constructive receipt of the money so under the law, it is income to you - even if you do ...
|
| My deceased son | 1/21/2008 |
Q: I had my baby in may 2007 and he passed away the same day. I was told that as long as I have proof ...
A: I am sorry for your loss. I lost my nineteen year old a while back. This issue is a matter of state ...
|
| Real Estate Tax | 1/21/2008 |
Q: Greetings, I paid estimated property taxes in 2005 and 2006. Now the tax is finalized and I am ...
A: If you actually paid and deducted estimated taxes in 2005 and 2006, you would only report the actual ...
|
| taxes | 1/21/2008 |
Q: In 2006 my mother in-law transferred about $150,000 in stocks to my husbands account as a gift to ...
A: First, the lifetime gift exclusion is $1,000,000. When property of given to someone, the donee ...
|
| Tax Preparation Costs | 1/21/2008 |
Q: I am a Realtor in SC who formed an LLC last year and will be filing as a "S" Corporation. My ...
A: Well, it it like asking how much will it cost to paint your house without ever seeing your house. ...
|
| unpaid taxes | 1/20/2008 |
Q: I owe IRS about $1800.00 that I am making installments monthly on. That is such a small amount but I ...
A: First, you can request an abatement of interest and penalties without paying off the liability. You ...
|
| federal taxes | 1/18/2008 |
Q: My husband and I are seperated.We live in Pennsylvania.It is my understanding that we have to be ...
A: If you file separately, each of your refunds will be determined independently based on your separate ...
|
| 1099 | 1/18/2008 |
Q: Other than independent contractors and lawyers, who else should get a 1099 M(my CPA firm, etc.)? ...
A: It is not the type business that is important - it is the form of organization. Corporations do not ...
|
| Corporate draw | 1/17/2008 |
Q: My son & I started a corp in Aug and we are on a fiscal year.(july through June). I am not getting ...
A: If it is a corporation you must pay him a salary/wage and do all the payroll reporting and ...
|
| federal taxes | 1/17/2008 |
Q: My husband and I are seperated.We live in Pennsylvania.It is my understanding that we have to be ...
A: In order to claim head-of-household, you do not have to be legally separated. You must have lived ...
|
| delinquent tax notice for 2005 | 1/15/2008 |
Q: I received a deliquent tax notice from my 2005 tax return from the IRS. They claim I owe another ...
A: It depends on what you mean by "negative returns". If you had positive adjusted gross income but the ...
|
| Withholding Taxes | 1/15/2008 |
Q: I started my current job on August 28, 2005. Before i started, the office manager had me fill out a ...
A: First, you will not get in trouble but you may end up owing tax and your half of social security. ...
|
| Deducting rental property | 1/14/2008 |
Q: I'm a military member who moved from Florida to Illinois but due to the bad market I couldn't sell ...
A: You will claim the rental income on Schedule E, which is attached to your Form 1040. You can deduct ...
|
| W2 to 1099 | 1/14/2008 |
Q: I have been switched from W2 to 1099. What do I do first? How do I get set up to make quarterly ...
A: You will file your return reporting your income on a Schedule C, which is an attachment to your Form ...
|
| Taxes on Pension Plan Withdrawl | 1/10/2008 |
Q: I became separated from my employer in 2007 and have an opportunity to withdraw money that they ...
A: They will withhold 20% at the time of the distribution. You will pay the remainder of tax and ...
|
| Travel | 1/10/2008 |
Q: My husband worked out of state last year for about three months and he had to pay for his plane ...
A: If he was an employee, he can deduct these items as itemized deductions on his Schedule A - under ...
|
| Capital Gains Tax | 1/9/2008 |
Q: I bought a house four months ago and have been living in it as my primary residence. I bought it for ...
A: That is correct. If the primary reason the home is being sold is due to job related relocation, a ...
|
| tax write off | 1/8/2008 |
Q: I have a question, I own a small business,Last year I licensed It.I wanted just the name at ...
A: You will not be able to write off the equipment until you begin operation, regardless of the year. ...
|
| tax write off | 1/8/2008 |
Q: I have a question, I own a small business,Last year I licensed It.I wanted just the name at ...
A: You can write off all machinery and equipment as well as operating costs of your business. However, ...
|
| contract labor | 1/4/2008 |
Q: My boyfriend is an employee for this guy and he is full-time but is not taking out taxes and he ...
A: Whether he is an employee or an independent contractor is based on individual facts and ...
|
| 22 yr. old as a dependent | 1/3/2008 |
Q: I did not claim my daughter on my taxes for 2006. She was working full time but still living at ...
A: For 2006 you could not have because she was over 19 and not a full-time student. For 2007, she ...
|
| city taxes | 12/26/2007 |
Q: why do i have to pay city tax where i work at and residential tax where i live me and my wife both ...
A: I am sure you understand that I cannot give you specifics without knowing all the details That goes ...
|
| city taxes | 12/26/2007 |
Q: why do i have to pay city tax where i work at and residential tax where i live me and my wife both ...
A: The laws on local taxation vary by state and city. But as a general rule, you pay tax where you earn ...
|
| Newly established sole proprietorship | 12/20/2007 |
Q: I am a resident of CA. I normally file Married/Joint return. I started a sole proprietorship this ...
A: You report your loss using Schedule C, which is part of your Form 1040 filing. It is an attachment. ...
|
| Letter from IRS ref 1099 MISC | 12/19/2007 |
Q: I rec'd a letter stating that I did not report $27158.00 1099 MISC income from a employer. I did ...
A: Those are all valid depending on what your job was. There could be others. Mileage to and from work ...
|
| 1099's | 12/19/2007 |
Q: How does a company know which vendors are eligible for 1099's and which are not? Example... UPS ...
A: Yes - but only if the company that repairs the equipment is not incorporated or operating as a ...
|
| 1099's | 12/19/2007 |
Q: How does a company know which vendors are eligible for 1099's and which are not? Example... UPS ...
A: The law is very specific about that. Generally, 1099's are sent to individuals (not corporations or ...
|
| Letter from IRS ref 1099 MISC | 12/19/2007 |
Q: I rec'd a letter stating that I did not report $27158.00 1099 MISC income from a employer. I did ...
A: If you had expenses associated with the $27,158 in income then you should complete a Schedule C and ...
|
| Offer In Compromise | 12/19/2007 |
Q: I am preparing an offer in compromise. The taxpayer owns approximately 7 parcels of real property, ...
A: They will look at each property individually. The lowest a property can be valued is zero. That ...
|
| Filling Taxes for a LLC | 12/17/2007 |
Q: When does an LLC have to file their taxes by? Also when are W-2's and 1099's due out to our ...
A: If you are a single member LLC, then you file a Schedule C with your personal tax return, which is ...
|
| 2005 tax question | 12/13/2007 |
Q: My spouse (now ex in 2006) refuses to file 2005 taxes that were prepared as joint b/c the tax ...
A: Assuming your divorce decree does not state otherwise, you should file as married filing separately ...
|
| delequent tax returns for contractor | 12/11/2007 |
Q: I know someone who hasn't filed a tax return in several years. He has worked as a subcontractor in ...
A: The first thing he may find out is that the IRS has filed some of those returns for him based on the ...
|
| Racing Sponsorship Tax Wrte-Off | 12/10/2007 |
Q: Mr. Wellman, If a company sponsors a race car driver, how much of that is tax-deductible? Thank you ...
A: The entire amount is deductible as advertising expense. Where companies get in trouble is when they ...
|
| Racing Sponsorship Tax Wrte-Off | 12/10/2007 |
Q: Mr. Wellman, If a company sponsors a race car driver, how much of that is tax-deductible? Thank you ...
A: Theoretically, all the expenses can be deductible but they have to be considered thru the prism of ...
|
| Separation and Mortgage Interest Tax Deductions | 12/7/2007 |
Q: My husband and I have been living in separate residences for 16 months. He is staying in the home we ...
A: In order to deduct the interest you must be obligated on the note, it must be secured by the ...
|
| Inheritance Tax | 12/5/2007 |
Q: Mike, My wife's parents both passed away. They left to my wife and her brother their home (pretty ...
A: As for federal taxes, no taxes will be due. The federal estate tax provides a $2,000,000 exemption ...
|
| Husband is W2; I am W2 and 1099 | 12/5/2007 |
Q: Mike, I started the beginning of this year as a W2 employee and then left my job and was a nanny ...
A: You will file a Form 1040 and report all your W-2 income under "Wages". Your 1099 income will be ...
|
| What is the taxability of a cash "gift" to an employee | 12/4/2007 |
Q: We have an employee who lost her home in the California wildfires. A couple of years ago, the ...
A: The employee/employer relationship creates special problems with gifts. You are limited to $25 per ...
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| Sales Tax | 12/3/2007 |
Q: Can I claim sales tax, unemployment tax, etc. which I paid for each month/quarterly for my business ...
A: If you are talking about unemployment tax paid for your employees - sure. As for sales tax paid, if ...
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| Federal Tax lien | 12/3/2007 |
Q: I am trying to purchase a house through a short sale. Not only is the owner in financial distress, ...
A: What he would have to do is file a request for a subrogation of the lien. It requires a lot of ...
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| Internet Business | 12/2/2007 |
Q: I own a small Internet Business doing marketing online. One of my primary sources of income for 2006 ...
A: If you are talking about groceries and/or household items you would ordinarily purchase for personal ...
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| child care | 12/1/2007 |
Q: what do i need to claim child care i pay out to a person who is watching my child
A: You claim child care expenses on Form 2441, which is attached to your tax return. To complete the ...
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| Paying taxes | 11/28/2007 |
Q: SO I recently lost my "legit" job and have only been able to make ends meet at home by working an ...
A: You would be considered "self-employed". You report your income on a Schedule C, which is an ...
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| Cashing out my 401K | 11/27/2007 |
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ...
A: Yes, that is correct. So I advise you to put another $10,000 aside, in addition to what is going to ...
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| Cashing out my 401K | 11/27/2007 |
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ...
A: They will withhold taxes at 20% but it will not be near enough. Make sure you have about 40% set ...
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| Marriage | 11/21/2007 |
Q: I have recently gotten married, but my new husband doesn't want me to use his last name, because he ...
A: The IRS does not key on names, they key on social security numbers. You do not inherit his tax ...
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| payroll taxes | 11/16/2007 |
Q: I recently started with a company in which I work out of my home originating loans. Rather than ...
A: No, it is not normal and failing an agreement with you to do it, it is not legal. They benefit by ...
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| Tax Liens | 11/15/2007 |
Q: I own 2 corps. One went under but fed taxes were still owed for 941's. Fed Lien was placed on the ...
A: No. However, if you continued operating the same business under another corporate shell, using the ...
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| Soc Sec Taxes | 11/6/2007 |
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ...
A: If he is receiving a 1099-misc, he is considered self-employed. Whether he is or not is another ...
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| Tax implications of withdrawing principle from Roth IRA | 11/2/2007 |
Q: I would like to withdraw the principle from my Roth IRA - leaving all the interest still invested. ...
A: A qualified distribution is generally, any payment or distribution made after the 5–taxable–year ...
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| Tax implications of withdrawing principle from Roth IRA | 11/2/2007 |
Q: I would like to withdraw the principle from my Roth IRA - leaving all the interest still invested. ...
A: Unless an exception applies, most distributions from a Roth IRA before the owner reaches age 59 1/2 ...
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| taxes fertility treatment | 10/24/2007 |
Q: I am wondering if I can write off the cost of infertility treatments on my taxes. I live in ...
A: You can include in medical expenses the cost of the following procedures to overcome an inability to ...
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| Adult Student Dependent | 10/24/2007 |
Q: My unmarried 23 year old son is a graduate student at an out-of-state public university. He has ...
A: I think the confusion comes in when we talk about temporary absence. I assumed from your question ...
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| Adult Student Dependent | 10/24/2007 |
Q: My unmarried 23 year old son is a graduate student at an out-of-state public university. He has ...
A: Your son may meet all the requirements except the residency test. You can only claim him if he ...
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| Estimated Tax | 10/23/2007 |
Q: Mr. Wellman, in July I received a property lease check for mineral lease then received another more ...
A: I cannot tell you if you need to make estimated taxes on the lease payments without knowing ...
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| Filing Joint vs. Single & Money owed by and Ex | 10/22/2007 |
Q: I am planning on getting re-married in November. I had married my first wife in the month of ...
A: (1) No, you will have to file as Married Filing Jointly or Married Filing Separately. (2) Yes, the ...
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| What is a K1 Form? | 10/19/2007 |
Q: I am sure the answer is complex, but could you please give me an overview of what a K1 form is? How ...
A: Certain types of businesses like partnerships and Sub-Chapter S corporations do not pay taxes. The ...
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| How long to Hold these Forms? | 10/18/2007 |
Q: Quick question. How long are you supposed to keep past returns (both personal and business) on file ...
A: Assuming they are payroll taxes, I would tell the IRS that your partner was responsible for all ...
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| How long to Hold these Forms? | 10/18/2007 |
Q: Quick question. How long are you supposed to keep past returns (both personal and business) on file ...
A: It varies with the type of records but generally seven years is sufficient. However, records that ...
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| Previous years / amended return | 10/15/2007 |
Q: I was looking back at my previous tax returns this year and noticed that I may have not filed my ...
A: If you are also going to file as married filing separately, then your wife needs to do nothing. If ...
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| Claim Child | 10/15/2007 |
Q: If a mother is incarcerated (January 2007) and the child did not live with the father at all during ...
A: It will be hard to undue it. Typically, the other spouse claims the child too and then they present ...
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| vehicle deduction on ranch | 10/15/2007 |
Q: I operate a cattle ranch and have deducted a 4 wheel atv in the past for ranch use. I am now in need ...
A: As long as you can show the business use of it, it can be an ATV, go-cart, donkey or whatever. A ...
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| persoal loss carryover | 10/14/2007 |
Q: How do I report a personal loss carryover of $83,000. This is not a capital loss with the $3000 ...
A: If you are talking about a Net Operating Loss, which would be a business loss with some adjustments, ...
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| w9 | 10/8/2007 |
Q: When a company requests venders to sign w9, is the w9 ever expire? Do they have to sign again after ...
A: A W-9 does not expire. Another one would need to be filed only if something changes. The only thing ...
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| Gambler /Investor | 10/4/2007 |
Q: I have not filed my 2005 and 2006 Federal and Colorado returns. In 05 i took control of a 350k trust ...
A: In order to see where you stand, you will need to file the outstanding returns. If you owe for ...
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| Should i Ammend? | 10/4/2007 |
Q: I'm in Maryland. My ex-wife cashed/transferred/swept(?) a JOINT account 1 month AFTER our divorce ...
A: It is unfortunate, but a joint account is a joint account and if she had unfettered access then she ...
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| tax deductibility of HELOCs | 9/24/2007 |
Q: What are the rules regarding the tax deductibility of HELOC's for primary and second homes? Thank ...
A: When you refinance acquisition debt or take out additional debt such as a HELOC, you can deduct the ...
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| Corporate Income Tax | 9/18/2007 |
Q: If a corporation does not pay its income tax, are the shareholders personally and individually ...
A: As long as a corporation dots all the I's and crosses all the T's, the shareholders cannot be held ...
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| exempt | 9/13/2007 |
Q: i have been told that going exempt can be a good strategy.. last year i claimed exempt for 3 or so ...
A: I certainly agree with a strategy that allows for the smallest refund possible. It does not make ...
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| claim tax credit if I open a family childcare | 9/12/2007 |
Q: Mr.wellman: I plan to open a family child care in my house. Can I claim some tax credit since I use ...
A: You can deduct expenses associated with operating your home as a daycare including depreciation and ...
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| Oil Depletion allowance for Royalty owner | 9/11/2007 |
Q: Mr. Wellman, My question is regarding taking depletion allowances on my Federal Tax return. I have ...
A: Well, I do not think it is an excise tax but if the Oklahoma Tax Commission says it is not ...
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| I am filing for permenet disibility and we need to use money from my wifes 401k plan | 9/9/2007 |
Q: I had my own buseness and recently became sick and am applying for permenet disibility. I have no ...
A: There is a 10% penalty on early withdrawal - plus the tax on the withdrawal at your marginal tax ...
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| DOCTOR VISITS | 9/8/2007 |
Q: Wellman, I am a General Motors retiree and I have great insurance coverage benefits, but my ...
A: Medical costs are deducted on Schedule A, the form used to itemize deductions. In order to use ...
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| our last tax return | 9/1/2007 |
Q: My wife had our joint tax returns both state and federal put into her personal account and I have no ...
A: If the checks were made out to both of you, the bank should not have allowed them to be deposited ...
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| Phatom Income | 8/29/2007 |
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ...
A: No, he does not get the money he gets the stock. The company normally sells the shares, but as his ...
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| Phatom Income | 8/29/2007 |
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ...
A: Normally the corp will sell the shares. For example, assume the value of the stock is $10,000 when ...
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| Phatom Income | 8/29/2007 |
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ...
A: They are not taxable until he sells them. What happens in a lot of cases is they have to sell enough ...
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| Investment Club Question | 8/29/2007 |
Q: and thank you for providing this service. My question concerns a delinquent tax return I filed for ...
A: The IRS abates penalties for "reasonable cause". Reasonable cause is in the eye of the beholder. One ...
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| Question on taxes doing business over the internet | 8/29/2007 |
Q: Im a 20 year old college student, whois completely independent and reside in Raymond, Maine. I am ...
A: You really don't need to get a tax ID unless you intend to hire employees or operate the business as ...
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| Taxes on Legal Settlement? | 8/28/2007 |
Q: My husband and I just made settlement on a 10 year legal battle of emminent domain for our property. ...
A: If the property was abandoned by you to them, then the award is basically the sales price. You will ...
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| Business owner taking acquiring MBA - Mileage | 8/28/2007 |
Q: I'm a business owner of an LLC company. My business is expanding and I decided I need to continue ...
A: The mileage is not going to be deductible. In order to qualify, the expenses must be "required", not ...
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| Land sale contract | 8/27/2007 |
Q: Mike, I have a purchaser of a land contract who wants the ability to have tax deductions from his ...
A: No, he can't do that. He will have an installment sale and will recognize capital gain on the ...
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| Land sale contract | 8/27/2007 |
Q: Mike, I have a purchaser of a land contract who wants the ability to have tax deductions from his ...
A: In order for him to deduct the interest as personal residence interest he must: (1) Be legally ...
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| Taxing Mileage | 8/25/2007 |
Q: Recently our company was acquired by a larger entity and after reviewing my pay stubs it seems they ...
A: Mileage reimbursement for actual use of your car should not be taxed. However, if it is a ...
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| LLC vs. Corporation tax rates | 8/23/2007 |
Q: I'm a Speech Language Pathologist who needs to start a business in order to privately contract my ...
A: You can write of legitimate expenses regardless of the form of organization. Unless you are required ...
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| 2004 taxes | 8/20/2007 |
Q: What was the maximum income for a single person in 2004 before he had to file taxes? ANSWER: ...
A: The $7,950 applies to income such as wages earned working for someone else, the $400 applies to ...
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| back taxes | 8/18/2007 |
Q: will try and make short . We own back taxes to state of Ky been working with them this week to do ...
A: The state, like the IRS must notify you before a levy action on your bank account. Furthermore, ...
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| Retirement penaltiy | 8/17/2007 |
Q: For a first home purchase I want to pull out of my retirement plans with 2 different ...
A: First, I assume you are talking about IRA's. The exception applies to IRA's and not other retirement ...
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| gift tax/and property sale | 8/13/2007 |
Q: I understand that my mother can give me a yearly gift of up to $12,000 that will be tax exempt. My ...
A: First, no gift your mother gave you would ever be taxable to you. However, if a gift exceeds $12,000 ...
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| capitol gains on sale of house | 8/11/2007 |
Q: I am selling a house that my parents had transferred the title to me 6 years ago. Do I have to file ...
A: You do not need to file anything prior to your return, however, if the tax is significant, you may ...
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| Deliquent Taxes | 8/11/2007 |
Q: I was totally disabled for the years 2003 ad 2004. I received disabiliy income from disability ...
A: When you get your bill for the penalty and interest due, you will be able to get into an installment ...
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| Delinquent tax - capital gains? | 8/9/2007 |
Q: First, let me explain how I got into my predicament. And please bear in mind that I have VERY little ...
A: First, you can stop worrying about any criminal problems. There will be none. The worst thing that ...
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| tax liability on proceeds from inherited mutual fund shares | 8/3/2007 |
Q: My step-father passed away in June. I am one of 7 siblings that will will equally split shares in ...
A: You will not likely have any liability beyond the interest you spoke of. Whether any estate tax ...
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| taxable state refund | 8/2/2007 |
Q: The IRS has determined that there is a deficiency in our income tax this year. My husband's company ...
A: The deduction is taken on your Schedule A. Presumably you would not have deducted the tax from the ...
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| taxable state refund | 7/31/2007 |
Q: The IRS has determined that there is a deficiency in our income tax this year. My husband's company ...
A: The repayment of the tax from the state it was erroneously paid to is only taxable if you itemized ...
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| finace that owes taxes | 7/26/2007 |
Q: my finace' is in the process of OIC with the IRS, we plan on getting married in Decemeber. Does his ...
A: Possibly. You do not become liable for his taxes and they cannot look to your assets to satisfy his ...
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| Delinquent taxes, combat exclusion and amendmendts | 7/24/2007 |
Q: Wellman, First let me thank you for providing this service. I am trying to educate myself by reading ...
A: 1. If you were divorced on the last day of the year, you are considered divorced for the entire ...
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| Tax error | 7/24/2007 |
Q: I used Turbo Tax to file my 2005 tax return. In utilizing this a mistake was made in totaling the ...
A: The first question is - who's mistake was it? If there was an error in the Turbo Tax program itself, ...
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| 2000,2001,2002 Federal Tax Returns | 7/20/2007 |
Q: A friend informed me recently that he had purchased common stocks in the year 2000 with his IRA ...
A: A person has three years from the due date of a return to amend it, after that, any refund that may ...
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