| Subject | Date Asked |
|
| Transportation worker per diems | 11/16/2008 |
Q: I am trying to find out what the transportation employee (like a pilot) per diem rates were in ...
A: Harold, For airline workers, here are MIE rates and the percentages can be deducted by year: MIE ...
|
| tax on commercial property | 11/1/2008 |
Q: tax break from commercial property sold in 2007.. property was deeded to the son 1980. last parent ...
A: Linda, If the property was deeded to the son in 1980, it doesn't matter when the either of the ...
|
| life estates...capital gains and gifts | 10/26/2008 |
Q: In 2002, My mother put her principal residence ( in New York) into a life estate, and put my name ...
A: Theresa, Since your mother is still alive, the life estate is not a factor for tax purposes. A ...
|
| Definition of "Gross Proceeds" on 1099 B | 10/15/2008 |
Q: In the context of exercising a stock option, on a 1099 B in Box 2, should Gross Proceeds be ...
A: Matt, Gross proceeds on a 1099-B refers to the net sales price of the stock. Net sales price is ...
|
| short sale and 1099 | 10/6/2008 |
Q: I thought the president passed a law that if you sale your home as a short sale and it is your ...
A: Kim, The lenders are required to send either 1099-C when a debt is cancelled. The new tax law does ...
|
| K1 form on limitted partnership | 9/17/2008 |
Q: I am considering making an investment in a limited partnership where the investment returns are ...
A: Lorenzo, When you receive your K-1 package, the partnership should provide you with the necessary ...
|
| Artists, Audits and Taxes! | 9/16/2008 |
Q: I am a working artist who like most creative folks, has a full time day job as well to make ends ...
A: Blanchjoe, I work with a large number of creatives. The biggest hurdle you would have in an IRS ...
|
| Claiming a child | 5/16/2008 |
Q: When I divorced my ex-husband, he was able to afford an attorney and I wasn't. I tried to get as ...
A: Julie, Sorry about the delay in answering your question. I forgot to change my availability dates ...
|
| Charitable Donation - Business | 5/5/2008 |
Q: I'm on the board of a foundation that sponsors a race every year. Local businesses donate cash and ...
A: Ann, If you contribute to a charity and receive something in return, then the charitable deduction ...
|
| Life Estate and Taxes | 5/4/2008 |
Q: Last year, my mother deeded me her 4 family house and reserved a life estate. She is not living at ...
A: Angel, In most places, a life estate has the right to do anything in terms of use of the property ...
|
| quit claim deed | 5/3/2008 |
Q: my wife's mother owns two pieces of rental property which her children will inherit.she is 86 years ...
A: Jack, If your mother-in-law quit claims a rental property to your wife, there are a few tax issues ...
|
| my ex and his tax return | 5/2/2008 |
Q: My question is: my ex owes back child support to me and his ex wife. She is suppose to be owed about ...
A: Sherrie, Based on the amount of your ex-husband's refund of $6,895, you would receive your $1,800 ...
|
| error amt put on fed and state tax form | 5/1/2008 |
Q: After I went ahead and efiled both state & fed return, was expecting a refund from both then a few ...
A: Laura, Typically when you file a tax return, one of the initial things that happens during IRS or ...
|
| Sale of CA residence | 3/2/2008 |
Q: Aunt and Uncle were married but divorced in the early 1980’s but never separated. They bought their ...
A: Andrew, I'm going to answer your questions assuming your uncle's living trust named your aunt as ...
|
| IRA Distribution for home purchase | 2/29/2008 |
Q: My wife and I have done all of our savings in our retirement accounts. Now we want to purchase our ...
A: Ryan, You and your wife should be commended for diligently saving for retirement. I have some ...
|
| Home Flipping Business Related expenses | 2/28/2008 |
Q: My girlfriend and I bought a house to flip 1/07. We currently(2/08) have it up for sale and hope to ...
A: Ed, Any costs you incur while improving or maintaining the property you plan to flip are added to ...
|
| Mortgage Interest after divorce | 2/21/2008 |
Q: I am paying the mortgage on a home that I received as part of a divorce settlement. Both my ...
A: Jennifer, You are entitled to the deduction. The issue you will have is the IRS routinely matches ...
|
| Loan Defalcation and Unified Tax Credit | 2/19/2008 |
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ...
A: Steven, Even though the loans were made to a business. The bad debt is considered nonbusiness. If ...
|
| Loan Defalcation and Unified Tax Credit | 2/19/2008 |
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ...
A: Steven, Even though the loans were made to a business. The bad debt is considered nonbusiness. If ...
|
| Loan Defalcation and Unified Tax Credit | 2/19/2008 |
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ...
A: Steven, Even though the loans were made to a business. The bad debt is considered nonbusiness. If ...
|
| Loan Defalcation and Unified Tax Credit | 2/19/2008 |
Q: Actually I have 2 short questions: (1) I made a $15,000 loan to a business 3 years ago which they ...
A: Steven, Even though the loans were made to a business. The bad debt is considered nonbusiness. If ...
|
| Injured spouse | 2/18/2008 |
Q: I usually file my taxes on line using turbotax or a related product. Is there a way to file an ...
A: Kim, Unfortunately, there is no way to file an injured spouse claim electronically. I usually have ...
|
| internship | 2/17/2008 |
Q: My daughter graduated from college in June 2007 with a degree in nutrition. In September she ...
A: Mary, In order to deduct costs associated with the internship, the costs must be required by your ...
|
| Rental of personal property | 2/16/2008 |
Q: I'm currently in the process of filing my income taxes. I have a rental property that I started ...
A: Brandon, The income and expenses which relate to your rental property are reported on Schedule E. ...
|
| converting a home to a rental | 2/13/2008 |
Q: If I convert my home to a rental and only rent for 3 years, is it possible not to depreciate the ...
A: Sandy, You could choose not to take depreciation on your rental, but it won't help. When you sell ...
|
| 1099 form | 2/11/2008 |
Q: My husband grandmother opened a $1000.00 Cd for him when he was younger. Last Feb-Mar. He cashed it ...
A: Mandi, The bank should be issuing a 1099 for the interest earned in 2007. If you haven't received ...
|
| tax question on forfeited earnest money | 2/10/2008 |
Q: I am a buyer for a property in florida. I put $5000 as downpayment and would like to get out of this ...
A: Elizabeth, If the down payment was for a primary or second home, the forfeited amount would not be ...
|
| Self-employed health insurance question | 2/9/2008 |
Q: I am currently working as a self-employed consultant (sole proprietor for now) and was wondering ...
A: Jon, As long as you are self employed and pay your own health insurance premiums, the full amount ...
|
| company employee tax issues | 2/6/2008 |
Q: at my current place of employment, we recieved w-2 and just recently recieved 1099 for certain ...
A: Anthony, My apologizes for the delay in responding to your questions. Over the years I have dealt ...
|
| Dependant | 2/5/2008 |
Q: I am a junion in college who made about 25,000 last year. My parents pay for my school each ...
A: Angie, If your parents provided more than half of your support, they would be entitled to claim you ...
|
| MI tax question | 2/4/2008 |
Q: I live and work in michigan and the company i work for is also based out of michigan. My employer ...
A: Sierra, Nothing illegal is happening. It's just an unfortunate clerical error made by your ...
|
| Partial Year Incorporation | 2/4/2008 |
Q: I formed a single-owner (I'm the only employee) S-Corp. in Aug. 07. Prior to that I was a ...
A: Les, On Schedule C, deduct the amount paid to the S corporation as a miscellaneous expense. You ...
|
| Contract Labor | 2/4/2008 |
Q: I am working part-time and also receiving Soc. Sec. Benefits. As you know, I can only make ...
A: Margie, Asking your employer to pay you "off the payroll" puts your employer at risk. Paying you ...
|
| NYC resident working in NJ | 2/3/2008 |
Q: I live in NYC but im working in NJ. I started to do my taxes. It seems now since my company only ...
A: Sean, If you live in one state (New York) and work in another (New Jersey) you must first pay state ...
|
| Final K-1 needed | 2/3/2008 |
Q: I was one of three persons listed on an LLC, when I filed taxes for 2006 with my husband. My name ...
A: Maureen, K-1 forms are part of the LLCs partnership tax return. Partnership tax returns are due on ...
|
| Schedule D | 2/3/2008 |
Q: I've already filed my 2007 federal return electronically. Now I realize that I had forgotten to ...
A: Don, You have three years to amend your tax return. I recommend amending your tax return before ...
|
| bad refunds | 2/2/2008 |
Q: Every year my husband and i file our taxes, we always owe state but get a refund on federal. The ...
A: Kate, You might want to revise the W-4 forms with your employers. Employer's use the allowances ...
|
| filing for 17 yr old student | 2/2/2008 |
Q: My daughter was a 17 yr old full time student and made 4645.00 without any fed tax taken out. Not ...
A: Anne, Unfortunately, you can't ignore the the W-2 without any federal income tax withheld. The IRS ...
|
| Quit Claim and Taxes | 2/2/2008 |
Q: I'm in the military stationed in Germany. I owned a house in Florida for aprox 3 years. My ...
A: Darryl, If you simply quit claimed the property to your father-in-law. You don't have a sale or a ...
|
| insurance settlement tax question | 2/1/2008 |
Q: In Gilbert Arizona where I reside. I finally came to an agreement on the amount just a couple of ...
A: Marco, One of the most basic tenets of tax practice is that if money received merely returns you to ...
|
| Child credits | 2/1/2008 |
Q: My child lives with my ex-wife who is claiming her as a dependent. Since I am Single, can I claim ...
A: Kas, Even though your ex-wife is claiming your daughter as a dependent, you may still qualify as ...
|
| tax on house flip | 2/1/2008 |
Q: I am a realtor and made a first attempt at flipping a house and had a substantial(but documentable) ...
A: Tracy, The loss on flipping an investment property is reported on Schedule D. Schedule D is used ...
|
| W-2's | 2/1/2008 |
Q: Today is January 31st and my wifes employer has still not distributed to its employees their ...
A: Robin, I have two possibilities to offer. First, your wife's employer is currently under a payroll ...
|
| Short Sale and 1099's | 2/1/2008 |
Q: Three years ago I purchased a home that was represented to be worth $330,000. The government and ...
A: Jim, Fraud or no fraud, your purchase price for the home was $330,000. When you give up your home ...
|
| deposit on home sale | 1/31/2008 |
Q: I got a 40K deposit on a home I was selling. The buyer did not follow through on the purhcase. I ...
A: Jerry, A seller who retains both the down payment and property must treat the forfeited amount as ...
|
| A previous employer that is currently out of business | 1/31/2008 |
Q: I was employed by a daycare facility from 7/07-9/07 and they decided they were going to shut down. ...
A: Heather, If you have copies of the payroll checks stubs reflecting your year to date wages and ...
|
| taxes, ira and first home (sort of) | 1/31/2008 |
Q: My wife has had a tratditional IRA for a while. she stopped making contributions a while ago. we ...
A: Bob, Unfortunately, you have already purchased the property. Taking a withdrawal from an IRA to ...
|
| 1099-A Amabdonment of Secured Property | 1/31/2008 |
Q: I just received a 1099-A for the year of 2006, the lender said they sent it last year but did not ...
A: Gaila, When you lose a home to foreclosure, the tax reporting is the same as if you sold your home. ...
|
| 1099-Misc From Vendors | 1/31/2008 |
Q: what should I do with 1099-Misc from vendors? I have recieved tons of them lately.
A: Stephen, You might want to consider comparing the amounts reported on the 1099s to what you have ...
|
| W-2's | 1/31/2008 |
Q: In the state of Georgia do you have to send in copy 1 into the state department and if so what is ...
A: Erica, The state copy of your W-2 gets attached to your state income tax return. Here is a link to ...
|
| New S Corp | 1/31/2008 |
Q: My nephew started an Electrical Company in 2007 and invested $50,000 toward material, equipment, ...
A: Candi, As a shareholder of the S-corporation, your nephew will receive a K-1 reporting the income ...
|
| Filing form 944- employer's annual federal tax return | 1/30/2008 |
Q: my husband owns a small company (sole proprietorship). I am his only employee. He pays me $200 a ...
A: Trish, The IRS must notify your husband whether or not his business meets the eligibility ...
|
| daycare | 1/30/2008 |
Q: is it my responsibility to give daycare parents a total or is it theirs to give me one?
A: Heather, If you are a child care provider, you should be providing parents a receipt for the ...
|
| Dependents | 1/30/2008 |
Q: If a father pays child support to the mother of their child and she doesn't work, can her boyfriend ...
A: Magen, Only the parent with whom a child spends most of the year with is entitled to claim the ...
|
| 401K loan | 1/30/2008 |
Q: I was laid off in Nov 2006, and my husband's company was acquired by another in 2007, both after ...
A: Cami, Unfortunately, you are going to be stuck with paying the tax and 10% on the defaulted loan ...
|
| Rental Property - Secondary residence | 1/30/2008 |
Q: I am trying to fill ou my taxes through turbo tax online and I had a question about the treatment of ...
A: Mary, Your vacation home unit can be considered a second home for tax purposes. The mortgage ...
|
| 2 Offices | 1/30/2008 |
Q: I have an office in which I pay rent. I was going to write the rent off as an expense. I have a ...
A: Peter, I am assuming you are deducting the office rent on a Schedule C. The rent payments for your ...
|
| Claiming minors that work | 1/30/2008 |
Q: I am the head of household, married with 4 children. My 15 year old twins boys got their first job ...
A: Steve, You can still claim the boys as dependents as long as you provide more than half of their ...
|
| taxes ib bonus and incentive pay | 1/28/2008 |
Q: At my company, we can opt out of making a 401(k) contribution on any variable pay (bonus) we ...
A: Pat, Actually there no real difference between having your 401(k) contributions coming out of your ...
|
| 1099 | 1/28/2008 |
Q: I am getting ready to send out a 1099 Misc, to a guy who did some work for me on a rental property ...
A: Steve, The IRS would prefer you submit a type written 1099, but there is nothing prohibiting you ...
|
| 1099-INT | 1/27/2008 |
Q: I sold my shares in a "S" corporation to my brothers for a lump sum of $1,000,000 and monthly ...
A: Steve, The amount reflected on the 1099-INT should represent the interest portion of the monthly ...
|
| ROTH IRA Conversion | 1/26/2008 |
Q: I am currently doing volunteer work so my income is very low. I made a partial ROTH IRA conversion ...
A: Norman, If you are still within the 60 day rollover period, there is an easy fix to this issue. ...
|
| Rental Property | 1/25/2008 |
Q: IF we sold our rental property in 2007, I broke even, no profit from the sale, however we did have ...
A: Ti, Any time you sell depreciable property, Form 4797 is required to prepared. Tax law requires to ...
|
| Filing business taxes quarterly | 1/25/2008 |
Q: Is there a tax program (like taxcut) that will allow me to file my small business taxes quarterly?
A: Jenny, There really aren't many retail business tax return preparation software packages out there. ...
|
| 401k | 1/25/2008 |
Q: Who determines that you are permanent disability for taxes on this as the Doctor has declared this ...
A: Marlene, As long as licensed physician certifies you with a permanent disability, you qualify for ...
|
| Sub S Corporation | 1/24/2008 |
Q: Can I use an HSA plan for medical expenses if I own more than 5% in my company (California)?
A: Sue, If you are more than 2% shareholder of a S-Corporation, the company will not be able to make ...
|
| LLC, C-Corp, or S-Corp | 1/24/2008 |
Q: I have a question regarding the three types of Corporations. Myself and two friends of mine are ...
A: Richard, Most real estate investors are using LLCs because you have more options available for tax ...
|
| delaware/maryland taxes | 1/24/2008 |
Q: I just recieved a letter stating i owe the state of maryland $1,700, from 2004! In 2004 i never ...
A: Jamie, I imagine if you used a Maryland address to file your 2004 tax returns, Maryland probably ...
|
| Single status when separated | 1/23/2008 |
Q: I live in Pennsylvania. My husband and I have been separated since June and have a signed and ...
A: Barbara, Unless you are legally divorced, you will need to file as Married Filing Separately. ...
|
| bus office | 1/23/2008 |
Q: I have an S corp. My office is located in my house. HOw do I reflect the expense on 1120S and on ...
A: Dina, The office in home deduction for a S corporation shareholder/employee should be calculated on ...
|
| tax question | 1/23/2008 |
Q: Me and my husband have three children together we were sepeated for over six months.living in ...
A: Michelle, If you were not living with your husband for the last six months of the year, you could ...
|
| Rental Property - Income and deductions among joint owners | 1/22/2008 |
Q: Situation: A rental house is owned by two brothers (both on the deed); however, only one of the ...
A: Steve, Typically if two parties own a rental property, each party would report rental income and ...
|
| 1099-misc bonus income | 1/22/2008 |
Q: I received a 1099-misc with an amount on line 7 from my recruiter for my new job. I don't work for ...
A: Gil, The arrangement for payment of your signing bonus is a bit unusual. With that said if your ...
|
| Filing Exempt | 1/22/2008 |
Q: Is there a penalty for filing exempt for the year and just paying all the taxes at the end of the ...
A: Toni, Penalties are assessed when taxes are not paid by the appropriate due dates. Will you owe ...
|
| claiming son on taxes | 1/22/2008 |
Q: my son lived with me untill graduating high school in june He had a baby with a girl who moved to ...
A: Kris, Only one tax return can claim an allowance for your son and it can't be the girl's ...
|
| splitting rental income and deductions | 1/21/2008 |
Q: Situation: A rental house has two brothers on the deed; however, only one of the brothers is on the ...
A: Steve, Typically if two parties own a rental property, each party would report rental income and ...
|
| Income tax | 1/21/2008 |
Q: I live in pennsylvania and im 19 and go to college. I live with my father. My mother has been ...
A: Michael, If you live with your father, he should be claiming you as a dependent. Unless your ...
|
| tax write offs | 1/21/2008 |
Q: I am a territory salesperson who pays for all of my own gas, vehicle expenses, clothes, food, home ...
A: Richie, There isn't an all inclusive list of deductible business expenses. The rule for a ...
|
| capital gains questions - sale of company | 1/21/2008 |
Q: I owned 12% of a software company that was based in Australia. I am in the US. The assets of the ...
A: Drew, When you sell the assets of a company, the sales price is generally allocated among different ...
|
| 1099-A | 1/20/2008 |
Q: I received a 1099-A will this effect any return that I will be getting? I left the home in 2003. I ...
A: Karie, Form 1099-A is used to report a foreclosure from a lender. Foreclosures are treated the ...
|
| Contract Labor | 1/16/2008 |
Q: I have paid our contract labor with cash the past year. How would I show this on the 1099.
A: Cindy, The amounts you report on 1099 forms are the amounts actually paid to your contract labor. ...
|
| 1099Misc | 1/16/2008 |
Q: I have a website on which I sell a test preparation service, and I have agreed to pay a person $500 ...
A: Filip, There is no requirement to send 1099s to individuals who you pay less than $600 annually. ...
|
| gifts | 1/16/2008 |
Q: My mother has given each of her grandchildren a gift of 10,000 apiece for a total of 40,000. Is this ...
A: Diane, Gifts are not deductible on your mother's income tax return. The purpose of gifts is to ...
|
| Exempt status for federal income tax | 1/12/2008 |
Q: I have been reading a lot of articles lately on how it is possible to not pay any FICA on my wages. ...
A: James, Unless you are clergy member, your chances for avoiding FICA on wages is practically zilch. ...
|
| disability taxes | 1/11/2008 |
Q: is a lump sum social secuity disability payment taxed?
A: SSDI payments may be taxable based on the amount of income you are reporting on your tax return. ...
|
| Living with roomates | 1/11/2008 |
Q: I have recently bought a house in January of 07. I live there with my roomate and my finace and we ...
A: Chris, Your roommate (and possibly your fiance if she doesn't co-own the house) is a renter and you ...
|
| TAX RETURN | 1/10/2008 |
Q: My husband and myself work full-time and are full-time students. I was wondering since we are both ...
A: Jennifer, Since you are a household of students, hopefully you are taking advantage of the ...
|
| Converted Primary Residence to Rental Property | 1/8/2008 |
Q: In June of 2007 we converted our primary residence into a rental property. (This property was ...
A: Mechelle, Real estate taxes are usually paid in arrears. As a cash basis taxpayer, you are ...
|
| newborn | 1/8/2008 |
Q: how much per newborn do you get on your taxes
A: Sondra, If your child was born on or before 12/31/07, you will be able to claim the newborn as a ...
|
| 1099's | 1/7/2008 |
Q: ello, I work for a law firm and I am in the process of preparing 1099's for 2007. I think that ...
A: Jen, Generally speaking 1099s are not issued to corporations. There are some exceptions to this ...
|
| child claim on taxes | 1/7/2008 |
Q: my son is 18 soon to be 19 in jan.2008, but he is a senior in high school living at home can we ...
A: Carla, As long as your son is 24 years old or younger, a full-time student and you provide more ...
|
| sale of business | 1/7/2008 |
Q: we sold our restaurant last May, and the manner in which it was sold was 70% cash, and 30% on a ...
A: Delia, Installment sales are reported on Form 6252. You will need to include this form for every ...
|
| IRS: Divorce & Pension | 1/4/2008 |
Q: As per a divoce decree I have paid a portion of my pension to my ex-wife each month after I receive ...
A: Nick, Until your pension administrator is served with a Qualified Domestic Relations Order (QDRO), ...
|
| State Tax Attributes | 12/31/2007 |
Q: Many documents concerning taxes include the term " State Tax Attributes". However, none seem to ...
A: Liz, The definition of a tax attribute is a characteristic or factor that could result in taxable ...
|
| Post divorce & asset transfer - who gets the 2007 1099Rs? | 12/30/2007 |
Q: My ex-spouse just transferred several taxable mutual funds to me (all remained within same ...
A: Carol, 1099s for mutual funds will be issued to the owner of record for the period ownership. One ...
|
| LLC & Vehicle Tax Deduction | 12/28/2007 |
Q: Good morning Mike. My Wife will be starting her own "in home" business (licensed home daycare, as ...
A: Ryan, Business use of vehicle is a tax deductible expense no matter the type of business entity ...
|
| LLC in New Hampshire | 12/22/2007 |
Q: I am a one-person LLC. My business is contracted to provide services to government assistance ...
A: Gary, It seems to me you are providing commissions to your clients. You should be deducting these ...
|
| Annuity | 12/22/2007 |
Q: I receive Social Security Disability. I'm almost 58 and have been receiving it for 7 years. I have a ...
A: Dan, You can receive the qualified plan funds before age 59½ without incurring the 10% penalty if ...
|
| Dependent deductions | 12/22/2007 |
Q: My ex-wife and I have 3 children together. We were divorced in 2005. She is the primary custodial ...
A: Randy, Starting with the 2005 tax year, the rules for who can claim a child as a dependent have ...
|
| estate tax | 12/21/2007 |
Q: My situation is a woman died ten years ago and left her 2 young children her residence in her will. ...
A: Les, The property was held in the estate for ten years! Are you sure? It seems to me the probate ...
|
| Storage Writeoff? | 12/21/2007 |
Q: I own a contracting business set up as an LLC. I have a utility trailer that I use exclusively for ...
A: Cliff, Sorry, there is no deduction for parking your utility trailer at your residence. The same ...
|
| Farm Sale Due to Divorce | 12/21/2007 |
Q: I am in the process of getting a divorce and my husband and I own a small farm-15 acres-where he has ...
A: Deborah, Even though your husband used part of the property to operate his business, the issue ...
|
| son | 12/21/2007 |
Q: My son went to school in 07 senior year--got a small job in the fall--lives with me at home--just me ...
A: Bill, You can still claim your son as a dependent and use the head of household filing status. ...
|
| sell real estate | 12/21/2007 |
Q: I have residence type real estate that we have been using as a remote business location for four ...
A: Gerald, Owner financed installment sales are a great way to spread out the income tax on a capital ...
|
| sale of real estate | 12/20/2007 |
Q: I have residence type real estate that we have been using as a remote business location for four ...
A: Gerry, Owner financed installment sales are a great way to spread out the income tax on a capital ...
|
| Home improvements | 12/20/2007 |
Q: I have $40,000. in receiptes for my home. I have lived there since Jan 06. What percenteg would I be ...
A: Leopold, Home improvements are not deductible on your tax return. They do increase your cost basis ...
|
| 529 College Savings Plan Gift from Business | 12/18/2007 |
Q: Can a small company (one employee) make a gift donation to a 529 college saving plan. How does the ...
A: Andy, Actually, a contribution to a 529 plan would be considered taxable compensation to the ...
|
| Per diem | 12/17/2007 |
Q: I recently read a per diem discussion on the site and clarified a few details, but there is still ...
A: Chad, I found your question in the Question Pool, so I'm not sure that Carole answered your ...
|
| Minister's Housing Allowance | 12/17/2007 |
Q: I am a Trustee at at Baptist Church and have some concerns regarding the amount of money the Pastor ...
A: IRA, The IRS hasn't established a percentage for a clergy person's housing allowance. It's not ...
|
| Inheriting part of a c-corp | 12/14/2007 |
Q: We are settling my mother's estate. She and her brother were the the only shareholders in a c-corp ...
A: Frank, The best way to handle this is to have your uncle buy your mother's shares of the C-corp ...
|
| Schedule D | 12/13/2007 |
Q: I have to file the schedule D form, and there were several days where I bought and sold the same ...
A: David, The IRS would rather you list each sale separately, especially as the sales have wash sales ...
|
| LLC / Capital Gains | 12/13/2007 |
Q: If you trade stocks / futures in a LLC, how is the taxable LT / ST capital gains offset by business ...
A: Bill, I'm not sure if you really want to be treated as professional trader for tax purposes. By ...
|
| SUV Depreciation | 12/12/2007 |
Q: Wellman, In August, 2004, I purchased a new Chevy Suburban and depreciated the entire cost in that ...
A: Joseph, I found your question in the pool. I'm not sure that Mike answered your question or not. ...
|
| SUV Depreciation | 12/12/2007 |
Q: In August, 2004, I purchased a new Chevy Suburban and depreciated the entire cost in that year ...
A: Joseph, I found your question in the pool. I'm not sure that Ivan answered your question or not. ...
|
| Recently purchased company | 12/12/2007 |
Q: I work for company "A" and a group of investors purchased company "A", We are now putting in a new ...
A: Jim, I found your question in the pool. The business can expense up to $125,000 of assets placed ...
|
| filing an amended joint return | 12/12/2007 |
Q: If spouse A has not filed a return and spouse B has filed a married/separate return, then I ...
A: Chris, Spouse A does not need to file a married filing separate return in order to participate in ...
|
| LLC and sub entities | 12/12/2007 |
Q: I am about to form an LLC in New York State, I would like to have a parent company and sub-entities. ...
A: Nicole, It's certainly possible to have a parent company and subsidiaries. In order to have ...
|
| Distribution of ltcl to Estate Beneficiaries | 12/12/2007 |
Q: I used TurboTax to help me through the initial 1041. I have ltcl to distribute to the ...
A: Felix, TurboTax is correct. Capital gains and losses are only distributed to the beneficiaries ...
|
| RV tax deduction | 12/11/2007 |
Q: I am a retired police officer running my own private investigation business. I have for several ...
A: Jim, You shouldn't have a problem deducting the business use of the RV. In order to protect your ...
|
| Volunteer Fire Department Stipends | 12/11/2007 |
Q: I am currently a firefighter for a volunteer organization in NH. Every December we usually receive ...
A: Ken, Technically speaking, uniform stipends are considered taxable compensation. In order for the ...
|
| Bene-IRA trfr and rmd | 12/11/2007 |
Q: son was to have inherited fathers IRA Sept 06 at fathers death. took 06 rmd for dad. has never ...
A: Ralph, The beneficiary of an IRA needs to retitle ownership within 5 years of the decedent's date ...
|
| Taxes on property condemned by eminent domain | 12/11/2007 |
Q: I am a member of a HOA. The state of Alabama acquired a portion of our common property. The ...
A: Byron, Capital gain rules that apply to individuals do not apply to homeowners associations. ...
|
| money received from sale of parents home | 12/8/2007 |
Q: My parents had their home in their name& alson my name & my son's name. They had life estate. On ...
A: Jackie, Gifts are not taxable income to the recipient. The donor is generally responsible for ...
|
| Estimated Tax? | 12/5/2007 |
Q: Our adjusted gross income in 2006 was around $35,000, and this year would have been the same, except ...
A: Joseph, As long as your 2007 Federal income tax withheld is equal to or greater than your 2006 ...
|
| From K1 back to W2 | 12/5/2007 |
Q: Can I go back to filing a W2 after I have received a K1 from the same company?
A: Tammy, I'm going to present some situations in which you could receive a W-2 and/or K-1: If you ...
|
| tax | 12/5/2007 |
Q: in a business if i own it how do i get paid, and file a personal return at closing of the tax year
A: Incorporated, How you pay yourself depends on what kind of entity you are for Federal income ...
|
| treasury stock | 12/5/2007 |
Q: If a company has treasury stock that was recently turned in by a shareholder and wishes to issue ...
A: Laurie, I could give you a lengthy, complicated answer to your question. The simple answer is the ...
|
| Self-Contractor Taxes and Paying Minor Children | 12/5/2007 |
Q: My wife is going to be doing the cleaning at our church. We have a contract stating that she is a ...
A: Joe, I'm going to address your questions in the same order: 1. As a sole proprietor, your wife's ...
|
| Self-Contractor Taxes and Paying Minor Children | 12/5/2007 |
Q: My wife is going to be doing the cleaning at our church. We have a contract stating that she is a ...
A: Joe, I'm going to address your questions in the same order: 1. As a sole proprietor, your wife's ...
|
| Self-Contractor Taxes and Paying Minor Children | 12/5/2007 |
Q: My wife is going to be doing the cleaning at our church. We have a contract stating that she is a ...
A: Joe, I'm going to address your questions in the same order: 1. As a sole proprietor, your wife's ...
|
| Foreclosure as income | 12/5/2007 |
Q: I lost my Michigan home to foreclosure in 2006. My tax advisor said Michigan did not consider this ...
A: Patty, Whenever there is a foreclosure, there is the possibility of debt forgiveness. Debt ...
|
| GIFT TAX | 12/5/2007 |
Q: this past weekend my wife won a fishing boat valued at about 40k from a local radio station. i will ...
A: Leonard, I'm sure it was very exciting to learn your wife won a boat. Now comes the bad news. You ...
|
| Allowable Deduction | 12/4/2007 |
Q: Greetings! I am a sole proprietor with a home office. I primarily create and maintain web pages for ...
A: Lynn, Unfortunately, your five stunning new suits are out. Although you generally can deduct the ...
|
| forgiveness of debt | 12/4/2007 |
Q: I am married and have filed previous returns with my husband. I also had a home accounting business ...
A: Brenda, Submitting a married filing separate tax return is not a factor is determining if one is ...
|
| capital gains tax on charitiable gift in will or beneficiary | 12/4/2007 |
Q: If I name a charity as beneficiary on an investment account - either with the brokerage or in my ...
A: Robert, Charitable organizations with a 501(c)3 classification will not need to recognize your ...
|
| IRA and Roth IRA conversion | 12/3/2007 |
Q: I was laid off in 2006 and took my 401K and rolled it into a IRA at my investment firm. My account ...
A: Sharman, At the time you converted the rollover IRA to the Roth IRA, you had a taxable event. You ...
|
| S-Corp loss deduction against personal income | 12/3/2007 |
Q: I have formed an S-Corp for my restaurant business and I am the 100% owner. My wife is an employee, ...
A: Jittra, As long as you have basis in your stock, you will be able to deduct the losses from the S ...
|
| S-Corp loss deduction against personal income | 12/3/2007 |
Q: I have formed an S-Corp for my restaurant business and I am the 100% owner. My wife is an employee, ...
A: Jittra, As long as you have basis in your stock, you will be able to deduct the losses from the S ...
|
| real estate sale | 12/3/2007 |
Q: When a person sells a business property and the sales price is 500k, and if he gets 200k down and ...
A: John, Essentially you have the right idea. The first step is to compute the gain on the sale. The ...
|
| S-Corp loss deduction against personal income | 12/2/2007 |
Q: I have formed an S-Corp for my restaurant business and I am the 100% owner. My wife is an ...
A: Jittra, As long as you have basis in your stock, you will be able to deduct the losses from the S ...
|
| S-Corp loss deduction against personal income | 12/2/2007 |
Q: I have formed an S-Corp for my restaurant business and I am the 100% owner. My wife is an ...
A: Jittra, As long as you have basis in your stock, you will be able to deduct the losses from the S ...
|
| 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: Norm, You should expect to have Federal income tax of $108,750 ($725,000 at 15%) and Colorado ...
|
| Help - can I claim my mother in law? | 12/1/2007 |
Q: My mother in law is in an adult asst. living facility-(dementia and needs total care in every ...
A: Tami, In order to claim your mother as a dependent, you will need to provide more than half of her ...
|
| Carryover on 1041 Schedule D | 12/1/2007 |
Q: Last year I prepared the worksheet that showed a long term loss carryover (for a trust) from 2006 to ...
A: Herb, There will be a line on the 2007 Schedule D that you will report the capital loss ...
|
| Independent Contractor - 1099Misc | 12/1/2007 |
Q: This is my first year with an income as an Independent Contractor, therefore will be receiving a ...
A: Becky, As an independent contractor, you don't file quarterly tax returns. It may be necessary to ...
|
| spec houses | 12/1/2007 |
Q: When can I begin depreciation on a spec house that I am building to sell? thank you
A: Patches, You can't depreciate a spec house. Technically what you are doing is the same as ...
|
| Establish Primary Residence in NV | 12/1/2007 |
Q: If my primary residence is in NV on December 31, 2007, would I file NV state income taxes for 2007 ...
A: Beatrice, The move to Nevada is a clever idea, but it won't work out the way you hope. ...
|
| gift tax? | 11/30/2007 |
Q: After my father passed away three years ago, my mother had a rental house put in mine and my ...
A: Jo Ellen, You should be able to argue the gift of the rental property was not a completed gift, ...
|
| tax ques | 11/30/2007 |
Q: I am living in AL and I have created a learning center that I would like to sell at a teacher ...
A: Lauren, Sounds to me like you are starting a business selling the learning center you have created. ...
|
| capital gains tax | 11/29/2007 |
Q: I understand that in 2008, 2009, and 2010 that capital gains earned by individuals in the 2 lowest ...
A: Martha, I think you have the right idea. While it's possible to have a 0% tax on capital gains if ...
|
| Condemnation | 11/28/2007 |
Q: We have been offered $750,000 for our investment property in a condemnation proceeding; however, we ...
A: John, The clock starts when constructive ownership is transferred. This would be at the time the ...
|
| Capital gains vs. Normal Income | 11/28/2007 |
Q: Starting this year on a part-time basis, my wife began purchasing foreclosures, rehabing them, then ...
A: Matthew, The short term loss incurred with the 2007 sale is reported on your 2007 tax return. ...
|
| benificiary of IRA | 11/28/2007 |
Q: My dad died in September 2007. His IRAs, insurance and other assets were all left equally to my 4 ...
A: Diana, I can appreciate why you are confused. Something isn't right. There is no way your ...
|
| land in miami | 11/25/2007 |
Q: I bought a land in miami (5 acres) in 1986. I payed taxes for 3 years and then after I leaved ...
A: Ali, Chances are the county took possession of the land and auctioned the property to pay the back ...
|
| Foreclosed Property | 11/24/2007 |
Q: In 2006, I sold vacant land to an LLC. I received 25% down payment and I held the mortgage. THe ...
A: Brian, You want to amend the tax return in which you reported the sale. Since the sale never ...
|
| 401K hardship withdrawal and penalties | 11/24/2007 |
Q: I am purchasing a home in Nevada to be closer to my company. this home will be my primary residence. ...
A: Andy, Unfortunately, there are no exceptions to the 10% penalty or the income tax when taking a ...
|
| Vehicle mileage log | 11/24/2007 |
Q: I am wondering if there is any legitimate way to avoid having to keep a mileage log for business use ...
A: Jonathan, I can certainly appreciate the pain of keeping a contemporaneous log of your business ...
|
| Tax question ref to car | 11/24/2007 |
Q: I bought a 1995 Honda 2 door civic in June of 2007. I paid 3500.00 for the car at a small dealer. ...
A: Jeannie, I'm sorry your automobile purchase didn't turn out so well. Unfortunately, there isn't ...
|
| Tax | 11/24/2007 |
Q: I bought a 1995 Honda 2 door civic in June 2007. Paid 3500.00 from a small dealer. I took the car ...
A: Jeannie, I'm sorry your automobile purchase didn't turn out so well. Unfortunately, there isn't ...
|
| Vehicle mileage log | 11/23/2007 |
Q: I am wondering if there is any legitimate way to avoid having to keep a mileage log for business use ...
A: Jonathan, I can certainly appreciate the pain of keeping a contemporaneous log of your business ...
|
| Medicare and gift laws | 11/23/2007 |
Q: My Mom is currently residing in an assisted living facility in Illinois. The facility has notified ...
A: Joanne, Your mother is in a tough spot. When applying for Medicaid, there is something called a ...
|
| RV as a vacation home | 11/22/2007 |
Q: My family and I enjpy using our 5th wheel trailer for camping,hunting and fishing trips. It is a ...
A: William, In order for a RV to save at tax time, it needs to pass the test of being a second home. ...
|
| 401 account withdrawal | 11/22/2007 |
Q: Hey "Tax Dude", I'm 58 years old (soon to be 59; and not long thereafter to be 59 1/2). I work in ...
A: Barry, I'd love to answer your question, but it's impossible to answer without knowing more ...
|
| Tax question | 11/22/2007 |
Q: I was named as Executor of my mother's estate. Taxes were filed for 2005. A distribution of $62,000 ...
A: Paul, I'm not really clear on a number of things. Was the distribution to you as a beneficiary or ...
|
| inheritance tax | 11/22/2007 |
Q: I ask this question once but did not explain it enough. I am purchasing my house through a divorce ...
A: Cathy, I understand your issue, but fail to understand why you think you are liable to pay the ...
|
| Per diem for OCONUS travel | 11/22/2007 |
Q: I work for a helicopter company based near my home town in Oregon, half of the year I am traveling ...
A: Andrew, Here is the best solution for you. Have your employer pay for your airfare and provide you ...
|
| inheritance tax | 11/21/2007 |
Q: I ask this question once but did not explain it enough. I am purchasing my house through a divorce ...
A: Cathy, I understand your issue, but fail to understand why you think you are liable to pay the ...
|
| 401 account withdrawal | 11/21/2007 |
Q: Hey "Tax Dude", I'm 58 years old (soon to be 59; and not long thereafter to be 59 1/2). I work in ...
A: Barry, Any withdrawals taken after age 59 1/2 are subject to tax at your individual tax rates. ...
|
| 1031 EXCHANGE DEPRECIATION | 11/21/2007 |
Q: if I exchange raw land (non depreciable) for a building can I depreciate the building?
A: Jerry, If you use the building in a trade or business you can depreciate the building. Rental ...
|
| Inheritance tax | 11/21/2007 |
Q: I am purchasing the house because of a divorce that I live in that my husband purchased 31 years ago ...
A: Cathy, It was quite clever of you to do a deed search on the house. You can learn a lot about a ...
|
| TAXABLE REFUNDS AND CAPITAL GAINS & LOSSES | 11/20/2007 |
Q: HOW DO YOU DETERMINE A TAXALBE REFUND OR WHEN DOES IT APPLY? ...
A: Carolyn, Generally speaking, you have a taxable state refund if you deducted state income taxes on ...
|
| IRA withdraw | 11/20/2007 |
Q: I'm 62 and no income. I want to withdraw $50K from IRA each year until 66 instead of (wages)then get ...
A: Anna, IRA distributions are not subject to Social Security tax. Withdrawals from your IRA will not ...
|
| Early ESOP distribution rollover | 11/20/2007 |
Q: I am age 57. Last year I took my first ESOP early distribution with a rollover into our 401K plan. ...
A: Harry, There are no Federal standards that define distribution schedules for early distributions. ...
|
| IRA withdraw | 11/20/2007 |
Q: I'm 62 and no income. I want to withdraw $50K from IRA each year until 66 then get full social ...
A: Anna, IRA distributions are not subject to Social Security tax. Withdrawals from your IRA will not ...
|
| CPA Mistakes - Who is liable? | 11/20/2007 |
Q: Tax Dude! We had a move to a new state and an extension filed. When the CPA estimated our return ...
A: Lisa, I'm sorry to hear the IRS audited your tax return and you are looking at some significant ...
|
| 401 account withdrawal | 11/20/2007 |
Q: Hey "Tax Dude", I'm 58 years old (soon to be 59; and not long thereafter to be 59 1/2). I work in ...
A: Barry, Whenever you leave a job, you have the ability to withdraw your 401(k) account. No matter ...
|
| estate account, form 1041 | 11/20/2007 |
Q: my grandfather past away and split his estate [ his house]roughly $100,000 between me and my uncle, ...
A: Andrew, When an individual dies, there are potentially three tax returns which need to be filed. ...
|
| work for one state and live in another | 11/20/2007 |
Q: I work at home in Wisconsin for a company in Arizona. I noticed that they are only taking out ...
A: Angie, Have you discussed this with your company's payroll or HR department? They should be able ...
|
| filing returns while spouse is incarcerated | 11/19/2007 |
Q: My husband is currently incarcerated. On last year's return I filed "married filing separate" and ...
A: Debra, There is no reason you couldn't file a joint tax return with your incarcerated husband. You ...
|
| tax on condo | 11/19/2007 |
Q: I have owned a very nice condo (good location in Pasadena, CA in a historic building) since May ...
A: Alex, Unless your adjusted gross income is over $150,000, you should be receiving some tax benefit ...
|
| Stepped up basis on assets from Irrevocable Trust | 11/19/2007 |
Q: Facts: Grandfather died in April 1964. Upon his death his will split his assets and set up 2 ...
A: John, There are no additional step-ups on the basis of the assets held in an irrevocable trust. ...
|
| Is it legal for businesses to tax shipping & handling online | 11/19/2007 |
Q: I usually like to purchase online products because it's convenient and sometimes cheaper, but the ...
A: Madeleine, It's true some state do require sales tax for sales of service. Service is typically ...
|
| sale of residence | 11/19/2007 |
Q: My client lives in a rent controlled apartment. He was asked to sell his "rights" to this apartment ...
A: Following up to my previous response: Contrary to my earlier position, I have concluded the sale ...
|
| US Tax Law on Rental Income from Apt in Dubai | 11/19/2007 |
Q: I was wondering what the US Tax Implications are for rental income obtained from an investment ...
A: Alok, You will need to report the rental income on Schedule E of your US tax return. You will also ...
|
| mom going to college | 11/18/2007 |
Q: I am currently getting divorced from my husband. Next year my children and I will be moving back ...
A: Katie, Child support and student loans are not taxable income. Most grants are also not taxable. ...
|
| Short term investment property | 11/18/2007 |
Q: I invested in a property for 17,000 and invested about 12,000 in materials. I did most of the repair ...
A: James, Unfortunately, the value of your labor can not be added to the cost basis of the property. ...
|
| gas mileage deduction | 11/18/2007 |
Q: My wife is a Social Worker who travels a lot as part of a mobile unit. When she asks her boss about ...
A: Frank, Your wife is entitled to deduct all business mileage which is not reimbursed by her ...
|
| Multiple Home Offices | 11/18/2007 |
Q: ..I am in the midst of an audit where the agent stated I could not have more than one office. I am a ...
A: Suzanne, What a tough spot you are in? While it's possible to have more than one office, ...
|
| deductions for advertisers | 11/18/2007 |
Q: my partner and i are starting a small newspaper publication containing current arrests, missing ...
A: Susan, This is quite an endeavor! Have you considered setting up your activity as a not for profit ...
|
| Paid in one state and Living in another | 11/17/2007 |
Q: I just got a great job with a international company. My pay comes from San Fran, my "local" office ...
A: Eric, I'm not sure you have a situation. "PRI State Tax" probably refers to Primary State Tax. ...
|
| Is it legal for businesses to tax shipping & handling online | 11/17/2007 |
Q: I usually like to purchase online products because it's convenient and sometimes cheaper, but the ...
A: Madeleine, Shipping and handling is not subject to sales tax in any state I am aware of. You need ...
|
| Taxes from paycheck | 11/17/2007 |
Q: The Fed and State taxes were taken out of my paychecks each week, however, she is behind on paying ...
A: Juanita, From a personal tax filing standpoint, your taxes are considered paid when withheld. It’s ...
|
| donation of family loan to start up business | 11/17/2007 |
Q: i got a loan of $9000 and donated it to my business start up capital what are the tax implications ...
A: John, While it may seem overly formal to document a loan to a family member, without one, the ...
|
| S-corp transfer of assets | 11/16/2007 |
Q: Situation: the sole shareholder of two S-Corps is considering dissolving one and transferring assets ...
A: Eli, Fortunately, since we aren't dealing with C-corporation we don't have any issues with built-in ...
|
| US Tax law | 11/16/2007 |
Q: I've heard that before WWII there was no wage taxation and President Roosevelt(with US Congress ...
A: Jack, Wages were subject to income tax before World War II. Prior to World War II, most people ...
|
| gift of real property | 11/16/2007 |
Q: I own 2/3 of an acre zoned residential and adjacent to a hospital. I am interested in donating the ...
A: Ron, Form 8283 will be required, but I would get an actual appraisal or have a realtor prepare a ...
|
| tax | 11/15/2007 |
Q: I had my taxes prepared by H&R Block last year. How can I look at my tax papers and find out what % ...
A: Al, I'm not sure which two lines you are wanting to subtract. However, the formula I provided ...
|
| Short Sale vs Foreclosre | 11/15/2007 |
Q: What is the difference between a short sale and foreclosure? What are the tax ramifications on each ...
A: Lois, From a tax reporting standpoint, there is no difference between a short sale and a ...
|
| Withholding from a distribution | 11/15/2007 |
Q: If an S-Corp shareholder employee takes a distribution in addition to his salary on one check, can ...
A: David, Shareholder distributions should not be run through payroll unless you are intending these ...
|
| gave my share of the house to my sister | 11/15/2007 |
Q: I bought a house with my two brothers in 1993. I gave my share of the house ( 1/3 )to my sister ...
A: Ann, You should have filed a gift tax return for 2006. You wouldn't owe any gift tax assuming you ...
|
| Business charitable contribution | 11/14/2007 |
Q: If my business (carpentry) makes a donation of building materials to Habitat for Humanity, can I ...
A: Bob, If your business is a sole proprietorship (reporting business income and expenses on Schedule ...
|
| audit question | 11/14/2007 |
Q: can a business be shut down for not paying taxes during a sales use and withholding tax audit? I ...
A: Suzanne, I'm not an expert on sales and use taxes, but a business can not be shut down until the ...
|
| Who gets it? | 11/14/2007 |
Q: Neil, My mother owns a dance studio; she and her husband, my stepfather, both file jointly each ...
A: Roxie, This really couldn't be Joe's business expense, because it's not Joe's business. Assuming ...
|
| Inheritance | 11/14/2007 |
Q: My 96 year old uncle in NY has an estate worth over $10 million. There are 4 heirs and the estate ...
A: Ruth, This is a hard question to answer without knowing if your uncle has any taxable gifts made ...
|
| Sale of Inherited Real Estate | 11/13/2007 |
Q: My siblings and I are beneficiaries in a trust that is split evenly between the three of us. We ...
A: Gary, K-1 forms are used to report income, losses and deductions. Based on your scenario, I would ...
|
| federal income tax on inheirtance | 11/13/2007 |
Q: In 2006 I received an inheritance from my uncle in California (I live in Texas) regarding the ...
A: Irene, If you received cash, there is no income tax due to the IRS, California or Texas. The IRS, ...
|
| 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: Vic, You should draft a letter to your employer that you will not be able to fulfill the terms of ...
|
| where do i claim a fire in rental property | 11/13/2007 |
Q: I had a fire in a rental. Insurance paid me $37000 but spent over $40000. I originally bought the ...
A: Daryl, I'm at a loss for why the insurance company would issue a 1099-MISC for proceeds from the ...
|
| Stepped up basis on trusts | 11/12/2007 |
Q: My father wants to put his stocks and mutual funds into a trust for my brother and I. My question ...
A: Lindsay, When securities are transferred to an irrevocable trust, the basis remains the same as the ...
|
| Sub S Corp - Taxpayer sells his interest | 11/12/2007 |
Q: How is the tax liability determined for a taxpayer who no longer owns an interest in a Sub S corp at ...
A: Bill, You should be receiving a final K-1 from the S-Corporation reflecting any pass through ...
|
| Minor's Earned Income | 11/12/2007 |
Q: I have a 17 year old daughter who worked part-time over the last year. What amount of gross wages ...
A: Danielle, Yes, you can claim your daughter as a dependent on your tax return. On your daughter's ...
|
| perdiem overage | 11/12/2007 |
Q: On the matter of per diem, if I am paid x per day in per diem and my documented expenses are 1/2x, ...
A: Mark, The amounts not used for lodging and meals while away from home are considered taxable ...
|
| trust account | 11/11/2007 |
Q: Before my Dad passed away he set up a trust account through Merril Lynch for my son to use for ...
A: Bill, If handled properly, the trust should have been filing income tax returns and paying it's own ...
|
| Transfer real estate to corporation | 11/11/2007 |
Q: If I run a small strip center as sole propriety and now I want to switch to corporation, how do I ...
A: Phy, There would be no income tax due with transferring the real estate to the corporation. The ...
|
| federal income tax on inheirtance | 11/11/2007 |
Q: In 2006 I received an inheritance from my uncle in California (I live in Texas) regarding the ...
A: Irene, The amount you receive as an inheritance is not taxable income. No special reporting is ...
|
| casualty loss deductions | 11/10/2007 |
Q: Are casualty losses limited to physical casualties? What if land is rezoned from the 500 year flood ...
A: Pat, If you've suffered the results of a theft, accident, fire, flood, or some other casualty ...
|
| LLC in a Living Trust | 11/10/2007 |
Q: I have a client who has 3 LLCs in his Living Trust. The Living Trust has its own separate tax id. ...
A: Nikki, Since each LLC has more than one member and assuming it has not elected to be treated as a ...
|
| Inheritance | 11/10/2007 |
Q: My questions are: 1) If an American citizen has inherited money in another country because her ...
A: Nikki, Inheritances are not taxable to the recipient, no matter if the decedent is a US resident or ...
|
| exemption | 11/10/2007 |
Q: I currently claim single and 2 exemptions--divorced with son in school---son now is out of school ...
A: Bill, This is not an easy question to answer with out knowing your salary, whether or not you ...
|
| LLC taxation | 11/9/2007 |
Q: I'd like to ask for help in below simple case: Limited Liability Company formed in Delaware has 2 ...
A: Jerzy, In your scenario and the LLC members or the business do not have a physical presence in the ...
|
| Minor's Earned Income | 11/9/2007 |
Q: I have a 17 year old daughter who worked part-time over the last year. What amount of gross wages ...
A: Danielle, If your daughter had less than $5,350 in gross wages, she will not be required to file a ...
|
| Corporation taxes | 11/9/2007 |
Q: We plan to buy a small real estate property under a corporation. If we file for the corporation now ...
A: Phy, You can absolutely deduct any business expenses on the initial return without showing any ...
|
| Home Office ded. >2% S-corp Shareholder | 11/8/2007 |
Q: When the owner of an S-corp runs the business our of their home and wants to take the home office ...
A: Warren, If you own your home it makes little sense to claim an office in home deduction. The two ...
|
| business exp. - contract work | 11/8/2007 |
Q: I am working with Robert Half doing temp contract work. Sometime the gig is a week, or a month or 6 ...
A: Michael, The drive to and from the assignment is considered commuting. Commuting expenses are not ...
|
| Divorce and Dependent Spending Account | 11/7/2007 |
Q: I was recently divorced in January of this year. I have one kid which i have joint custody. Both ...
A: Mecklin, The best way to figure this out in future years is to determine which of you will be ...
|
| Per Diem while using Secondary Residence | 11/7/2007 |
Q: There is an employee whom was hired at a company who lives in Seattle. He has an office in Seattle, ...
A: Katy, The company can treat the per diem payments as a travel expense. In this scenario, the ...
|
| Assets | 11/7/2007 |
Q: I'm thinking of starting a business with a friend from college. He is 45, but I have just come to ...
A: Brandon, I seriously doubt your friend is under the IRS radar. Not filing tax returns doesn't keep ...
|
| Recently Divorced | 11/7/2007 |
Q: My ex-husband and I will finalize our divorce on Dec 3, 2007. Should we file the 2007 return ...
A: Josie, If you are no longer married as of December 31st, you will not be able to file a joint tax ...
|
| Claiming Dependants | 11/7/2007 |
Q: Last year my two sons lived with me for 5.5 months and lived with their father for 5.5 months, ...
A: Yvette, Beginning in 2005, the rules for who can claim a qualifying child as a dependent changed. ...
|
| Estimated Taxes when Divorced | 11/7/2007 |
Q: Our divorce was final 11/01/07. We have been paying estimated taxes jointly all year. How do we pay ...
A: Wayne, The fourth quarter payment should be made with separate estimated tax vouchers. Before ...
|
| Obtaining ITIN & Tax Filing | 11/6/2007 |
Q: I am currently working in US on H1B visa, came in 11th Jan 2007 and planning to stay till 31st Jan ...
A: Subbanna, You should try and visit an IRS authorized Acceptance Agent for processing the W-7. You ...
|
| 501c7 | 11/6/2007 |
Q: I am the treasurer of a military spouse club. We have a 501c7 status. How much can we make in fund ...
A: Tara, A section 501(c)(7) organization may receive up to 35% of its gross receipts, including ...
|
| tax | 11/6/2007 |
Q: I had my taxes prepared by H&R Block last year. How can I look at my tax papers and find out what % ...
A: Al, Nothing on your tax return will tell you what tax bracket you are in. Federal income tax is ...
|
| social sec taxes | 11/6/2007 |
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ...
A: Joy, Schedule C and SE will not be required. You should report the 1099 income as wages on the ...
|
| social sec taxes | 11/6/2007 |
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ...
A: Joy, You have great timing with this question. IRS just announced a new form (Form 8919) to deal ...
|
| Rental Property LLC Protection | 11/6/2007 |
Q: My husband and I purchased an investment property in Alabama in our names and now have formed an LLC ...
A: Karen, Placing a rental property in a LLC can protect your personal assets in the event the LLC is ...
|
| self employed contract work per diem | 11/5/2007 |
Q: My husband is going to be an independent contract working out of state for 3 months. Currently our ...
A: Laura, It's fine to use per diem payments as long as you follow two rules. 1. The per diem ...
|
| SHORT SALE AND 1099's | 11/5/2007 |
Q: When a property is sold as a short sale is the lender required to file a 1099 for the amount not ...
A: Dawn, The lender will report the difference between the amount owed on the mortgage and the amount ...
|
| College Tuition Tax deduction | 11/5/2007 |
Q: My husband has two sons and he and his exwife decided to split when it comes to claiming dependents. ...
A: Heidi, Only the parent who claims the student as a dependent can claim the education credit or ...
|
| deductability of interest on Hm Eq Line | 11/5/2007 |
Q: My husband and I have recently converted our primary residence into a rental home. (We moved into a ...
A: Doris, A clever tax pro could make an argument to deduct the equity line interest against your ...
|
| retirement from Greece | 11/4/2007 |
Q: My husband is a military retiree in Greece and we are planning on moving to the state of Florida. ...
A: Lisa, While living in the U.S., you will be required to file U.S. income tax return. Florida does ...
|
| Tax Impact of Charitable Donation | 11/4/2007 |
Q: I run a self storage business and am investigating the potential of approaching charities in the ...
A: Bob, You handle this one of two ways. You can give the charitable contribution to the new ...
|
| relocation with 2 houses | 11/2/2007 |
Q: If we own a primary residence and a secondary residence which is a rental in California and I take a ...
A: Cathy, Selling your second home will not qualify for the capital gain exclusion. In order for the ...
|
| Inheritance tax | 11/2/2007 |
Q: I have an uncle that passed way and has left me and my 3 siblings in his will we will be getting ...
A: Renee, Assuming your uncle's gross estate was under $2,000,000 there would be no Federal estate ...
|
| Taxability of IRA Distribution to an Estate | 11/2/2007 |
Q: My mother died in July, leaving a small ($2650) regular IRA payable to the estate. Since the total ...
A: Don, Assuming the estate's assets were distributed to the beneficiaries within one year of your ...
|
| Renting a recently inherited home | 11/2/2007 |
Q: Recently my father passed away. His home was in a trust for which I am the sole trustee. Now, I am ...
A: Allyson, If you decide to sell the property, you would only pay tax on the capital gain. The ...
|
| Taxability of IRA Distribution to an Estate | 11/1/2007 |
Q: My mother died in July, leaving a small ($2650) regular IRA payable to the estate. Since the total ...
A: Don, Generally speaking, inherited assets are not considered taxable income. Retirement assets, ...
|
| Tax on bonds | 11/1/2007 |
Q: My mother bought a number of bonds for me in her name while I was a child and she recently cashed ...
A: Daniel, Unfortunately, your mother will have the burden of reporting and paying the tax on the ...
|
| Stock option tax | 11/1/2007 |
Q: I am Japanese working for a American company in Tokyo. Recently I exercised my stock options and 40% ...
A: Jiaeyo, The withholding was on the gross proceeds of the stock sale and not on the capital gain. ...
|
| 1099 for foreigh employees | 11/1/2007 |
Q: We are a small LLC company and we are looking to get some short term employees. All work is done via ...
A: David, Your "employees" will need to obtain ITIN numbers from the IRS. The ITIN is used in place ...
|
| Roth IRA Contribution | 11/1/2007 |
Q: I am currently working overseas and would like to open a Roth IRA. In the past few years I have not ...
A: Daniel, Assuming your adjusted gross income is under $110,000 (assuming you are single), you could ...
|
| Per Diem--tax home | 10/31/2007 |
Q: I have a similar question as a couple that you have already addressed but mine may be a little ...
A: Ron, Assuming your are "living" in Kentucky while on a "temporary" assignment, you should be able ...
|
| Sale of Land | 10/31/2007 |
Q: We bought a piece of land to build a retiring home for 52000 in Year 2006 and taxes paid are 1800$. ...
A: Chetna, You will have a taxable capital gain on the sale. The gain is the difference between the ...
|
| Per diem and working out of state as a contractor | 10/31/2007 |
Q: I am going to be starting a new job in Erlanger, KY. I live in Dayton, OH. A current co-worker ...
A: JC, Per Diem is one of the most misunderstood terms used as it relates to our tax system. To help ...
|
| Subcontract Labor Taxation | 10/31/2007 |
Q: Please advise on the followingWe issue 1099's for non-incorporated subcontractors that we pay over ...
A: Amy, There is nothing that prohibits you from issuing 1099s to corporations. The instructions for ...
|
| Sales of inherited property | 10/31/2007 |
Q: My mother passed away in August, there are 4 heirs. I wish to get her house on the market right ...
A: Bridget, You basically have two options. First would be to disclaim your interest in your mother's ...
|
| Per Diem--tax home | 10/31/2007 |
Q: I have a similar question as a couple that you have already addressed but mine may be a little ...
A: Ron, Per Diem is one of the most misunderstood terms used as it relates to our tax system. To help ...
|
| failing business | 10/30/2007 |
Q: Would it be better for me tax wise to sell for whatever I can get for the business and equipment or ...
A: Wanda, Tax wise it really doesn't make a difference. When you sell a business, the purchase price ...
|
| Tax Saving | 10/30/2007 |
Q: My husband has a salary of about 130K. We are NRI's, I am not working as we are on H1b/H4 visa. ...
A: Annie, It's better to itemize deductions if you can. You should be claiming the higher of your ...
|
| per diem | 10/30/2007 |
Q: I AM WORKING FOR A COMPANY THAT HAS ALWAYS PAYED A PER DIEM PER DAY RATE. THIS COMPANY IS NOW BEING ...
A: Danielle, Per Diem is one of the most misunderstood terms used as it relates to our tax system. To ...
|
| s corp | 10/30/2007 |
Q: Are the distributions from an S corporation taxed as a qualified divedent at 15% or at the ...
A: Russ, Distributions from S corporations come first from the entity's Accumulated Adjustments ...
|
| 1099-misc. vs 1099-B | 10/29/2007 |
Q: I am an art dealer in Chicago. I acquire work to sell by two methods: 1. Buying it outright from ...
A: Tom, I can appreciate your frustration with the 1099 issue. The IRS admits its difficult to ...
|
| Babysitter tax responsibilities | 10/29/2007 |
Q: My husband and I are planning to pay my father to babysit our child two days a week. What is the ...
A: Danette, The figure is $1,500 in 2007. Unless that babysitter is your parent, spouse, under age 21 ...
|
| Investment vs Day trading | 10/28/2007 |
Q: I have 2 brokerage accounts with different brokers. One account is used for day trading. The other ...
A: Richie, What an interesting question! You must be thinking about the application of the wash sale ...
|
| Inheritance IRA | 10/27/2007 |
Q: I inherited an IRA account from my mother who passed away. If I withdraw the money, can I return it ...
A: Doug, As long as you didn't roll your mother's IRA into an existing IRA of your own, the ...
|
| Incorporation | 10/27/2007 |
Q: I plan on starting an acupuncture practice and a (separate private investigation agency; a little ...
A: Mike, Unless your Article of Incorporation or By-Laws prohibit you from operating different ...
|
| hi neighbor | 10/27/2007 |
Q: i have a friend who has had to become corperate and the taxes are eating him up 2500.oo every three ...
A: Barbara, The amount your neighbor is paying quarterly is a reflection of his income. Will it get ...
|
| Per diem | 10/26/2007 |
| Q: My husband has been getting per diem at his current job. He is almost at the one |
