| Subject | Date Asked |
|
| No 1099 | 7/21/2009 |
Q: We applied for a tobacco-related health class-action suit and have received several checks (total ...
A: Sue, Damages for personal injury or sickness and the related legal fees and costs are excludable ...
|
| accountant fees | 7/20/2009 |
Q: 1 for a tax return of a family are there any " usual fee " amonts ? 2007, we paid 500 dollars. ...
A: Bart, Low fees speak directly to the competence of a tax professional. Qualified tax professionals ...
|
| taxes | 7/20/2009 |
Q: I'm not sure who to ask this to... I just got my first paycheck at American Senior Lending. They ...
A: Madelyn, Are you sure the deduction is for medical insurance and not Medicare? All employers are ...
|
| per diem | 7/18/2009 |
Q: Greetings! I am a resident of California. Last year, I was hired by a company to do contract ...
A: Wil, Per diem is strictly related to overnight travel for business purposes. There are times when ...
|
| first per diem question! | 7/17/2009 |
Q: Schnabel, I have never received a response from you before this. The only one I got was from ...
A: Wil, Per diem is strictly related to overnight travel for business purposes. There are times when ...
|
| Inheritance Taxes | 7/16/2009 |
Q: Upon my uncle's death in 2009, he left a portfolio of stocks to be split amoung many people. The ...
A: Lionel, Typically when an estate sells securities before any distributions are made to the ...
|
| per diem | 7/15/2009 |
Q: Greetings! I am a resident of California. Last year, I was hired by a company to do contract ...
A: Wil, Per diem is strictly related to overnight travel for business purposes. There are times when ...
|
| Out of state per diem | 7/15/2009 |
Q: Greetings! I am a resident of California. Last year, I was hired by a company to do contract ...
A: Wil, Per diem is strictly related to overnight travel for business purposes. There are times when ...
|
| pers serv corp net operating loss carryback | 7/14/2009 |
Q: Can a fiscal year personal service corporation carry back a net operating loss to preceding ...
A: Joe, Assuming the preceding tax years are on a fiscal year, you can carry back the Net Operating ...
|
| perdiem | 7/12/2009 |
Q: my job is forcing me to take per diem,and I do not wish to .the reason is ,once I go into overtime ...
A: Michael, Per diem payments are strictly for the purpose of covering overnight business related ...
|
| tax liability on exspouse buyout of my interest in jointly owned home | 7/9/2009 |
Q: My husband and I divorced in Jan.'09. I moved out of our home, which we bought in Sept.'74, in ...
A: Linda, As long as you can claim the property was your primary residence for 24 of the 60 months ...
|
| babysitter | 7/7/2009 |
Q: I have a dependent care account and plan to pay my mother to baby sit for my son. My mom leaves ...
A: Rodie, If your babysitter is your parent, spouse, your child under-age-21 or someone under age 18 ...
|
| California capital gains on home sale | 7/6/2009 |
Q: I saw a response from Carole Dunton to a question on 10/3/2005 concerning the sale of a california ...
A: John, Since the property was located in California, the sale was subject to California income tax. ...
|
| Proving Insolvency | 7/6/2009 |
Q: What is the rule of thumb or formula IRS uses in determining insolvency?
A: Katrina, Insolvency is when your total debts exceed your total assets. When using the insolvency ...
|
| Owner Compensation | 6/27/2009 |
Q: It is a two part question. First, if the CEO/full time employee borrows money from the Corp for ...
A: Tana, The CEO in your question could have a loan made to him by the corporation reclassified as a ...
|
| Company medical reimbusement to Directors | 6/26/2009 |
Q: My company is reimbursing our directors for medical costs. These directors are on medicare because ...
A: Mandy, Medical reimbursement plans open a whole can of worms. First of all, medical reimbursement ...
|
| Mileage Reimbursement | 6/25/2009 |
Q: I travel extensively for my job - approximately 25,000 miles per year. Which is of greater benefit ...
A: Vince, It seems to me you would be better off taking the standard mileage rate from your employer. ...
|
| K1 | 6/23/2009 |
Q: what is a k1?
A: Tiffany, K-1 forms are issued by partnerships, S-corporations, trusts and estates to report a ...
|
| vacation pay taxed | 6/23/2009 |
Q: I took all my vacation pay up front. they taxed as a bonus check tax rate. instead of my regular ...
A: Paul, The rules for withholding federal income tax from salary and other compensation-related ...
|
| 1099-r vs. divorce decree | 5/5/2009 |
Q: As per my divorce decree, I was to receive half of my former husband's excess 401K contributions for ...
A: Traci, You are correct that transfers incident to divorce are not taxable events. The problem is ...
|
| Form 8332 | 5/5/2009 |
Q: New Law for 2009 taxes - release of exemption. Does this law also apply when you have a divorce ...
A: Sheree, For tax years beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new ...
|
| rental property short sale | 5/4/2009 |
Q: I have a rental property that I am short selling. I owe $96,000 and I curently have an offer of ...
A: Nelson, Your question is difficult to answer without an understanding of your entire tax situation ...
|
| Real Estate Loss | 4/29/2009 |
Q: We have a company that rents real estate and during 2008 sold one of its properties for a big loss. ...
A: Ed, Passive losses become available when there is an entire disposition of the passive activity. ...
|
| Per diem | 1/19/2009 |
Q: My husband is starting a new job as an employee of a corporation that contracts with the military. ...
A: Anne, There are three ways an employer can deal with business related travel expenses. The ...
|
| Do I Need A EIN? | 1/9/2009 |
Q: I do have a small business (no employees). I did hired a contractor do some work for me and I want ...
A: Hector, Technically, you don't need an EIN to issue a 1099 to an independent contractor. There are ...
|
| Non resident father/mother in-law helping with down payment on home | 1/8/2009 |
Q: my in-laws who are not residents of this country are willing to help my wife (recently married but ...
A: John, Only US citizens or residents of the US are required to file gift tax returns. The donor is ...
|
| Paychecks vs Distributions | 12/19/2008 |
Q: If you have an S-Corp (only 1 shareholder) and take paychecks and distributions/dividends totaling ...
A: Karen, This a very good and difficult question you are asking. One of the advantages of having an ...
|
| Gift to Employees | 12/18/2008 |
Q: We would like to give a Holiday gift to all our employees of $50.00, must this be considered taxable ...
A: Steven, Prizes, gifts, and awards, when given to employees, are generally subject to Federal ...
|
| Selling expense | 12/17/2008 |
Q: I have a partner with which I owned a condo (rental property) together at 50/50. We sold it in ...
A: Jim, Commissions and closing costs are not deductible as itemized deductions. These expenses do ...
|
| Inheritance from Investment Account | 12/16/2008 |
Q: A family member passed away leaving an investment account, not a retirement type account or 401K, ...
A: G.O., When you receive an inheritance, the inheritance is not considered taxable income and there ...
|
| Paying my sister's mortgage | 12/15/2008 |
Q: If I have been living with my sister, in her condo, for the past 6 months and have been paying her ...
A: Tony, Since you are not on the condo's title as an owner and your are not obligated to fulfill the ...
|
| relative custody | 12/14/2008 |
Q: My husband and I have been caring for my niece for two years. Her grandparents have custody of her, ...
A: Natalie, If you and your husband were your niece's parents, you would certainly be able to claim ...
|
| Regarding taxes and back child support | 12/13/2008 |
Q: I plan in getting married in April 2009 my fiance owes back child support for another child a large ...
A: Faye, If you file a joint tax return for 2009 and your husband still owes back child support, any ...
|
| gift tax implication | 12/12/2008 |
Q: I live in US as a permenant resident.My parents live overseas. Both dont work and aged and depend on ...
A: Sundar, You can certainly gift money to your US non-resident parents. Gifts of $12,000 per person, ...
|
| solo 401(k) contributions | 12/11/2008 |
Q: I am self employed and I receive a mixture of W-2 and 1099 earned income. My W-2 income comes from ...
A: Mary, You are certainly on the right track on determining how much you can fund your solo 401(k) ...
|
| payroll taxes | 12/10/2008 |
Q: i live in waterford michigan,talking to an employer in london ontario.almost all my work for this ...
A: Steven, There a couple of items which need to be considered in answering your questions. First, ...
|
| Vehicle Compensation & Tax | 12/3/2008 |
Q: Neil, I recently went through an audit, and am compelled to pay the IRS for claims I made on ...
A: Kenn, Some employers chose to offer auto allowances to reduce their paperwork. This eliminates the ...
|
| Travel/business expenses taxed as income | 12/2/2008 |
Q: I've heard that if you travel to the same business for a full year as a consultant, without 25 ...
A: Andy, None of your reimbursed expenses will be considered taxable income to you. The tax law you ...
|
| How to file without a 1099 | 12/1/2008 |
Q: I worked as an exotic dancer over the summer. I assume I would be considered an independent ...
A: Cory, You are on the right track in thinking of yourself as an independent contractor. As an ...
|
| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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. ...
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| 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 ...
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| 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. ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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), ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| SUV Depreciation | 12/12/2007 |
Q: In August, 2004, I purchased a new Chevy Suburban and depreciated the entire cost in that year ...
A: Joseph, I found your question in the pool. I'm not sure that Ivan answered your question or not. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| capital gains | 12/2/2007 |
Q: I bought 12 acres of raw land 16 months ago for $650,000 in Colorado. I just got it under contract ...
A: Norm, You should expect to have Federal income tax of $108,750 ($725,000 at 15%) and Colorado ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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, ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| SIGNING BONUS REPAYMENT | 11/13/2007 |
Q: I recently took a job starting September 2007 and received a total of $25,000 in signing bonuses. ...
A: Vic, You should draft a letter to your employer that you will not be able to fulfill the terms of ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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, ...
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| 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 ...
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| 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. ...
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| 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 ...
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| 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 $110,000 (assuming you are single), you could ...
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| Per Diem--tax home | 10/31/2007 |
Q: I have a similar question as a couple that you have already addressed but mine may be a little ...
A: Ron, Assuming your are "living" in Kentucky while on a "temporary" assignment, you should be able ...
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| Sale of Land | 10/31/2007 |
Q: We bought a piece of land to build a retiring home for 52000 in Year 2006 and taxes paid are 1800$. ...
A: Chetna, You will have a taxable capital gain on the sale. The gain is the difference between the ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| 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 ...
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| Incorporation | 10/27/2007 |
Q: I plan on starting an acupuncture practice and a (separate private investigation agency; a little ...
A: Mike, Unless your Article of Incorporation or By-Laws prohibit you from operating different ...
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| 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 ...
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| Per diem | 10/26/2007 |
Q: My husband has been getting per diem at his current job. He is almost at the one year mark and we ...
A: Melanie, Taxable per diem is treated the same as wages for income tax purposes. Per diem does not ...
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| how do i calculate tax deductions on extra income | 10/26/2007 |
Q: I have a question that I'm unsure as to where to find the answer so I hope you are the right person. ...
A: Kris Based on what you are telling me, you could expect to pay approximately 25% in Federal income ...
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| sale of home | 10/25/2007 |
Q: My brother and I helped our parents purchase a home in 2001. My parents supplied the down payment ...
A: Doris, The idea of gifting the your ownership in the home is clever. Honestly, it may be a bit ...
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| converting primary home to rental | 10/25/2007 |
Q: Neil- If I move a primry home into an LLC, would the cost basis of the property for the LLC then ...
A: Adam, Transferring your home your home to an LLC will not increase your cost basis to the ...
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| sale of home | 10/25/2007 |
Q: My brother and I helped our parents purchase a home in 2001. My parents supplied the down payment ...
A: Doris, It sounds like you and your brother, along with your parents own the property. With this ...
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| tax law on life insurance inheritance | 10/25/2007 |
Q: My fiance and I have a life insurance policy together and listed each other as the sole beneficiary ...
A: Rachel, From an income tax standpoint, proceeds (death benefits) from a life insurance policy is ...
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| how do i calculate tax deductions on extra income | 10/25/2007 |
Q: I have a question that I'm unsure as to where to find the answer so I hope you are the right person. ...
A: Kris, I found your question in the pool, probably because it is difficult (if not impossible) to ...
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| head of household | 10/24/2007 |
Q: i live in a home that i guess it would be renting a room in. i pay rent make my own meals. public ...
A: Tiffany, It really depends on the facts and circumstances of the room you rent. For example if ...
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| 1041 Grantor Trust | 10/24/2007 |
Q: Do you know if a deferred compensation plan has to file a 1041? ANSWER: Don, The annual filing for ...
A: Don, Okay, we are talking about a nonqualified deferred compensation plan. A rabbi trust is ...
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| 1041 Grantor Trust | 10/24/2007 |
Q: Do you know if a deferred compensation plan has to file a 1041?
A: Don, The annual filing for a deferred compensation plan is done using either Form 5500 or Form ...
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| US taxation of Income in Mexico | 10/24/2007 |
Q: My friend is a US citizen moving to Mexico to work and live the rest of her life in Mexico and ...
A: Ty, Citizens of the U.S. are taxed on their worldwide income regardless of where they live. She ...
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| Non US resident sales tax rebate | 10/24/2007 |
Q: We have recently moved to a border town in Canada (Sarnia). When we shop in the US - Michigan - we ...
A: Brian, Sales tax is on goods and services and is set by each of the fifty states, and state ...
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| S-Corp Fringe benefits | 10/23/2007 |
Q: Do fringe benefits get S Corporations in trouble due to the possibility of disproportionate ...
A: Brian, Fringe benefits should not be treated as shareholder distributions. They need to be ...
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| Airline per diem on a CDO | 10/23/2007 |
Q: I work for an airline, and get paid per diem for all of my trips that I work. I get taxable and ...
A: Marc, Based on a Federal Circuit case in 2000 between American Airlines and the IRS, it was ...
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| 401k hardship | 10/23/2007 |
Q: My wife and I are adopting a baby. The expenses have been almost double what we originally thought ...
A: Tim, Adoption expenses are not considered a hardship for the purposes of getting a withdrawal from ...
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| Tax laws on Grants | 10/23/2007 |
Q: I have been seeing internet sites that say that the US government has billions of dollars in grants ...
A: Coby, I have no way of knowing if the advertised grants are legitimate. If they were, chances are ...
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| 2005 Amended Return | 10/23/2007 |
Q: In paying this year's taxes, I noticed that my father -- who prepared my 2005 federal return -- ...
A: Shawn, You will need to complete Form 1040X for your amended tax return. When preparing the 1040X, ...
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| Mutual Funds LTCG tax | 10/22/2007 |
Q: I bought shares in early 2006, and more a few months ago. What I want to do is sell the exact ...
A: Cliff, You can certainly use the FIFO method for selling mutual fund shares. There something you ...
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| IRA 60 Day Rollover | 10/21/2007 |
Q: Mr. Johnson Regarding the 60 day rollover rule for a traditional IRA, I have a CD that is maturing ...
A: Ron, As long as the new account is not funded before the date the old account is distributed, you ...
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| Inherited pension taxes | 10/21/2007 |
Q: I inherited rights to my deceased husband's vested qualified pension. I (at age 58) elected to ...
A: Janet, There are actually two problems. First if you elected to take monthly pension payments ...
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| deduction | 10/21/2007 |
Q: A couple of weeks ago I purchased “Energy Star” Pella windows. My understanding is that if I ...
A: Al, You don't get a deduction. You actually get a tax credit. Tax credits are more valuable than ...
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| is it worth the deduction | 10/21/2007 |
Q: Question..i have a 2nd mortgage loan ( 8K ) at 4.9. I put that money in an account that is paying ...
A: Bailey, There can be a slight advantage (based on your federal and state tax rates) for using the ...
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| shareholder loan | 10/20/2007 |
Q: If a person made a business loan to his s Corporation, the s Corporation went out of business and ...
A: Karen, It is reported as a long term capital loss on Schedule D. To qualify as a loan, an advance ...
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| Long term capital gains | 10/20/2007 |
Q: I am completely baffled as to how long term capital gains get treated at a different tax rate than ...
A: David, Capital gains to get added to income on line 13, but you compute the tax differently. There ...
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| Life estate sale of property | 10/20/2007 |
Q: My mother did a life estate on her house with my sister & I as remaindermen on the deed. My mother ...
A: Judy, A capital gain is the difference between the sales price and cost basis. Generally, cost ...
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| capital gains | 10/20/2007 |
Q: I purchased 10 acres of land over a year ago for $650,000 I have it under contract for $1,050,000 ...
A: Norm, There is a little more to the capital gain issue. It's true your gain will be taxed at a ...
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| 1099 commissions vs. W-2 salary | 10/20/2007 |
Q: ..hopefully this will be an easy one for you. Simply put, if you are a 100% commissioned sales rep, ...
A: Scott, Honestly, it's really the other way around. As a 1099 "employee", you are subject to Self ...
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| renting a room(s) in my home | 10/20/2007 |
Q: I am currently renting a room out in my mobile home to an unrelated friend. I was for part of the ...
A: Amy, You may be required to report the rental income on your tax return, but rental income is not ...
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| Parent as Dependent | 10/19/2007 |
Q: If I am married, can I have my Dad as a dependant? And does it make a difference if I do it under ...
A: Luly, As long as you provide more than half of your father's support, you can claim him as a ...
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| Audit Letter | 10/19/2007 |
Q: I received an audit letter for the Head of Household (California). I filed under this with my parent ...
A: Mary, Under the Federal tax rules as long as you did not live with your husband the last six months ...
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| 1099c | 10/19/2007 |
Q: I was leasing a vehicle from a company that I also paid them for inhouse comp and collision ...
A: Josh, Here is what I suggest. You need to report the 1099-C as other income on your tax return. ...
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| U.S. income when living outside US | 10/18/2007 |
Q: If I am an American citizon but my wife and children not, and I live outside the US, but I earned ...
A: Abe, You can file a joint tax return with your wife and claim your children as dependents. Since ...
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| Tax lien | 10/18/2007 |
Q: Once a tax lien judgement has been entered, can interest still continue to be assessed and ...
A: Beverly, You should contact the title company and find out if they actually paid the IRS. If they ...
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| Tax lien | 10/18/2007 |
Q: Once a tax lien judgement has been entered, can interest still continue to be assessed and ...
A: Beverly, The IRS files tax liens to increase their collection capabilities and to protect their ...
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| What can I claim on a home I'm leasing? | 10/17/2007 |
Q: I am "leasing" a home from my parents. When the home was purchased, I didn't have good enough ...
A: Jennifer, First, are your parent's claiming rental income and deducting your home's expenses on ...
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| Deductions for lease option | 10/17/2007 |
Q: I have a friend/client that was purchasing a home in 2006 under a lease option contract. The sale ...
A: Tania, The lease payments are considered rent payments. The property's owner should be reporting ...
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| inheritance tax question | 10/17/2007 |
Q: I have a question about my inheritance. My grandfather passed away and left a will to nine ...
A: Sheena, Sorry for the delay in responding to your questions. I wanted to think through my reply. ...
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| Who claims the child? | 10/17/2007 |
Q: My bf just got 50% custody of his child. I know he wont be able to claim him this year but for the ...
A: Lian, If it's not addressed in the mediation order, it should be. The court will not add it. Your ...
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| Who claims the child? | 10/17/2007 |
Q: My bf just got 50% custody of his child. I know he wont be able to claim him this year but for the ...
A: Lian, Beginning with 2005, the rules for who can claim a dependent have changed. The issue of who ...
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| Money from an inheritance | 10/17/2007 |
Q: ...I'm picking you as I've seen other inheritance questions directed to you. I and my sister are ...
A: Dave, Sorry to hear of your mother's passing. Assuming all of the estate taxes have been paid, one ...
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| IRA early withdrawal penalty | 10/16/2007 |
Q: I receive systematic monthly payments on my IRA. In the past I have been charged the pre-age 59 1/2 ...
A: Dorothy, If you were receiving substantially equal periodic payments from your IRA, you shouldn't ...
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| Who is tax exempt? | 10/15/2007 |
Q: Are government contractor in Iraq tax exempt for their hole tour over there in Iraq? My husband ...
A: Darbi, Government contractors do not qualify for the exclusion for income earned while in a combat ...
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| federal withheld taxes | 10/15/2007 |
Q: My recent paycheck showed a slight increase in the federal tax withheld (meaning I got less money in ...
A: Lisa, There hasn't been any changes to the withholding tables during this year. My guess is your ...
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| form 1041 - Decedants estate | 10/14/2007 |
Q: I am having to file form 1041 for my late father's estate. His income consisted of social security ...
A: Casaundra, Both items should be reported as other income on Form 1041. Social Security benefits ...
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| nonrental real estate deductions in LLC | 10/14/2007 |
Q: I am a sole owner of a LLC that brokers forest products to wholesale distributors and OEMs. For tax ...
A: Dean, The purchase of a "business" condo would be similar to if the business purchased an ...
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| FSA Dependent Day Care | 10/14/2007 |
Q: My husband contributes to a flexible spending account for dependent daycare. I have my own ...
A: Jill, The rules for using a flexible spending account for child care differs from the rules for ...
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| sale of nonprimary residence | 10/14/2007 |
Q: This question is somewhat similiar to a previous one you answered. When my mother was 90ish, her ...
A: Virginia, Your friend/lawyer is correct about your basis being $175,000. I can certainly ...
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| foriegn tax credit | 10/14/2007 |
Q: my wife is from Colombia, she gets about 50k a year from a business she owns in Colombia. she pays ...
A: Larry, This is true. Foreign tax credits are only available at the Federal level. New Jersey ...
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| Taxes | 10/14/2007 |
Q: I am self-employed...housecleaning business/sole propriership. How much should I be sending in ...
A: Pam, Tax is based on taxable income, not on gross income. Taxable income is gross income less ...
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| joint ownership tax question | 10/13/2007 |
Q: I am a Florida resident. My sister is a Massachusetts resident. In 1984 we inherited rental ...
A: Elizabeth, Your sister seems to be wrong. If she pays you a sum equal to half the present value ...
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| Potential taxes on criminal restitution | 10/13/2007 |
Q: My brother was murdered in 2004, in Waterloo, Iowa. As a result of the criminal trial, the ...
A: Rick, I deeply sorry for the loss of your brother. Restitution is reimbursement for loss and not ...
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| shipping and handling | 10/13/2007 |
Q: I own a web based business and would like to know if I should charge tax on S&H and are big ...
A: Jim, You don't charge sales tax on shipping and handling charges. Most businesses that charge ...
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| spouse death | 10/12/2007 |
Q: My husband died suddenly 2 weeks ago. He has a car financed in his name.I notified the company that ...
A: Darlene, I'm sorry to hear of the sudden death of your husband. What a horrible thing to happen. ...
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| deductionson sale of investment property | 10/12/2007 |
Q: I am selling an investment property i have owned for 9 months. What are all the deductions from the ...
A: Monica, Basis is your investment in property for tax purposes. The difference between the selling ...
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| Form 1041 | 10/12/2007 |
Q: I have a relative who is in the process of creating a Grantor’s trust. It will consist of various ...
A: Ray, My first choice would be your relative to be the trustee and you being the successor trustee. ...
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| tax deduction of tuition | 10/11/2007 |
Q: I am looking at going back to school while continuing to work. Are tuition, books, fees a tax write ...
A: Jude, The Hope Scholarship is a tax credit, not a scholarship. Tax credits are subtracted directly ...
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| estate tax return involving an IRA | 10/11/2007 |
Q: I hope you can help, my mother in law passed away in August 2003 leaving a will with my husband and ...
A: Teresa, Did your mother-in-law designate your husband and his sister as beneficiaries of the IRA ...
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| Who qualifies as a dependant? | 10/11/2007 |
Q: O.K. My fiance and I live together and have all year. We aren't planning on getting married until at ...
A: Melissa, Your fiance will not be able to claim you or your son as a dependent on his tax return. ...
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| LLc and start up costs | 10/10/2007 |
Q: I started an LLC this year and was in business for one, yes, just one day. Long story. Anyways, I ...
A: Beth, Income tax deductions are allowed with respect to expenditures incurred while carrying on a ...
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| child tax fraud | 10/10/2007 |
Q: me and my ex have a four year old daughter together, we were never married , and he is the ...
A: Jessica, Beginning with the 2005 tax year, new rules were put in place regarding who can claim a ...
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| Can't sell house - tax implications of renting | 10/10/2007 |
Q: I recently moved for employment purposes from MD to PA. The housing market in MD has dropped and ...
A: Russell, Renting the Maryland property is not a bad idea. Many people are faced with the same or ...
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| Income tax on an estate | 10/10/2007 |
Q: My father in law died March'07 and my wife is the estate executor. In '06 he had an unpaid income ...
A: Nathan, One of the most important tasks of an executor is to pay the debts of a decedent. Income ...
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| Real estate appreciation | 10/10/2007 |
Q: It was bought in 2004 and sold in 2007, so we meet the total exclusion. My question is this; are we ...
A: Billy, As long as you can exclude all of your capital gain from the sale of your house, the ...
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| worker comp settlement | 10/9/2007 |
Q: My wife's grandmother ( 85)lives in Arkansas and has been offered a $45K settlement to close out her ...
A: James, Amounts received under a worker's compensation settlement due to a work-related injury ...
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| DBA/Ficticious Business Name question | 10/9/2007 |
Q: I was recently offered a job where I can be placed on the payroll or be payed as a business. I was ...
A: Skylar, An employer that offers this option clearly hopes you will choose to be an independent ...
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| Capital Gains | 10/9/2007 |
Q: In the fall of 1996 I brought my mother and stepdad from California to Oklahoma to live with us for ...
A: Susan, Owning a property under joint tenancy with right of survivorship works if the intent is to ...
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| Investment real estate | 10/8/2007 |
Q: I live and work in Pa and I own investment property in FL which I rent it out. every year I am ...
A: Vladimir, Florida doesn't have a state income tax, so there are no worries in this regards. ...
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| becoming independent maybe | 10/8/2007 |
Q: I am disabled (paralyzed waist down) and I work in a call center taking customer orders. I have seen ...
A: Preston, Many employers want to hire people as independent contractors to avoid employer payroll ...
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| Loan to LLC | 10/8/2007 |
Q: I have a LLC with 3 members. The LLC is a broker firm, to put it simply, we broker energy and make ...
A: NL, As I understand this, you paid $90,000 for the right to receive $128,000 in commissions. This ...
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| loss carryover? | 10/8/2007 |
Q: If our income this year is maybe $7000 less than the standard deduction plus our two personal ...
A: Priscilla, It sounds like you have a net operating loss. The losses from the farm and Schedule C ...
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| Deductibility of Rental Property Auction Fee | 10/7/2007 |
Q: My father engages owns rental property and reports this activity on Schedule E. During 2006, he ...
A: Mike, I would deduct this on Schedule E. Treat this as a separate property on Schedule E. The ...
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| 2 houses, LLC | 10/7/2007 |
Q: Neil, This one gets tricky... I have two houses. House #1 I purchased in 2000 as my primary ...
A: Mike, Transferring the house to an LLC won't work. If you sell that property to the LLC, you won’t ...
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| disability and stock options | 10/7/2007 |
Q: My uncle opened an online trading account to trade options, he place 10k to start the account, with ...
A: Drew, Income from trading options is considered investment income. You can not lose disability ...
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| Loan to LLC | 10/7/2007 |
Q: I have a LLC with 3 members. The LLC is a broker firm, to put it simply, we broker energy and make ...
A: NL, You are correct, the $42,000 isn't the profit of the LLC. There needs to be some kind of ...
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| llc to possibly c | 10/6/2007 |
Q: I am about to startup a small company with the potential to grow in the future (ipo possible). I ...
A: Jeff, For tax purposes, a LLC is not taxable entity. This means a LLC could be a sole ...
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| NYS child support querstion | 10/6/2007 |
Q: My husband is a contractor and starting working for a company. He filled out a W-2 instead of 1099 ...
A: Anjie, Ultimately your husband is responsible for paying the child support. When someone falls ...
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| 1031 reverse | 10/6/2007 |
Q: I'm not an accountant but I do have a question to which I can't find an answer after hours or ...
A: Eric, The interest would be deductible somewhere on your tax return. If the 1031 is an exchange of ...
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| tax exemptions & home repairs | 10/6/2007 |
Q: My mom is selling her house. She is going to have a profit of over $250,000. She bought the house ...
A: David, Improvements are expenditures that add life to your home, increase its value or adapt it to ...
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| Consultant living in NJ working for a company based in NY | 10/6/2007 |
Q: I just moved to NJ this month and will be working as a consultant part time for the few months. I ...
A: Jenifer, To answer your questions in the order asked: 1. Yes, you will be able to deduct those ...
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| Gifts | 10/6/2007 |
Q: Does one need to claim taxes on a gift received in the form of money(Large Sum)?
A: Chris, Gifts are not taxable income to the recipient. Depending on the amount of the gift, the ...
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| LLC Guaranteed Payments / SE Tax | 10/6/2007 |
Q: Is there any difference regarding when SE Tax is due if a member receives a guaranteed payment on a ...
A: Bob, The total amount of the SE tax doesn't change based on the frequency of payments. You may ...
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| Divorce and claiming children | 10/5/2007 |
Q: I was divorced halfway through this year (2007) and my ex and I have joint custody, with the ...
A: Adam, Since you were divorced during 2007, you can not file a joint tax return with your ex-wife. ...
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| IRS per diem policy change | 10/5/2007 |
Q: I had a contract house call me about a new job, and in the course of our discussion I was told that ...
A: Brad, I have never hear of a 7-day or a 5-day per diem. Per diem is literally per day and ...
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| Waitstaff | 10/5/2007 |
Q: I need help on claiming/filing tips earned. Obviously I waitress :). The restaurant takes out a ...
A: Pamela, What you need to know if you earn tips ... 1. 100% is the magic number: All tips are ...
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| Form 1041 and 1116 | 10/5/2007 |
Q: I'm trying to help a friend, and maybe you can help me. She's filing a 2006 Form 1041 for a complex ...
A: Stan, To ensure the foreign tax credit carryforward, attach the completed Form 1116. This will be ...
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| Form 1041 and 1116 | 10/5/2007 |
Q: I'm trying to help a friend, and maybe you can help me. She's filing a 2006 Form 1041 for a complex ...
A: Stan, Any unused capital losses from the 2006 tax return are carried forward to subsequent tax ...
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| capital gains on home | 10/4/2007 |
Q: I have owned and lived in my home for 17 years (in California) and have rented it out for the last ...
A: Teri, Converting your former residence to a rental property can cause a little bit of complication ...
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| IRA transfer to spouse | 10/4/2007 |
Q: I am 68 and my wife is 60. I have heard that I can do a one time transfer of my traditional IRA to ...
A: Ernest, Not true while you are alive. Your wife would need to be the beneficiary of your IRA and ...
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| estate tax | 10/4/2007 |
Q: My father died in May 2000. Brother 1 and 3 (I am 1) did not know what was in his estate. He was ...
A: Scott, It's safe to say brother #2 and the attorney are doing a poor job of effectively ...
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| Rental of our Primary Residence | 10/4/2007 |
Q: My husband and I recently purchased our first house, but due to a job transfer were forced to move ...
A: Priya, You would use Schedule E to report the rental income on your property. You will still be ...
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| Per Diem | 10/4/2007 |
Q: My company is located in Louisville, KY. I was deputed to a client side in April '06 for short term. ...
A: Aqeel, I'm not sure what you mean when you ask if you are eligible for per diem. Here is the way a ...
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| Per Diem | 10/4/2007 |
Q: My company is located in Louisville, KY. I was deputed to a client side in April '06 for short term. ...
A: Aqeel, I'm not sure what you mean when you ask if you are eligible for per diem. Here is the way a ...
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| Ohio income taxes | 10/3/2007 |
Q: Does Ohio have a statute of limitations as far as collecting passed due income taxes?
A: Loren, Sorry, there is no statue of limitations for collecting past due taxes. Past due taxes are ...
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| carryback and finders fee | 10/3/2007 |
Q: Maybe I should refer the wholeJed johnson is the owner and president of Teal Bank. One day last ...
A: Pedro, The $25,000 finder's fee is considered taxable income in the year of receipt. The finder's ...
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| Buying a house while offer in compromise pending | 10/3/2007 |
Q: I have sumbitted an offer in compromise in July 2007. How long it takes to be adjudicated. Does it ...
A: Shahid, In my experience, it usually takes two to three months to get an answer from the IRS on an ...
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| 1040 ES | 10/3/2007 |
Q: I have a couple different questions. I just recently filed my 2006 taxes through Turbotax. I am ...
A: Ed, Without looking at your tax return, it's hard for me to say whether or not you should be making ...
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| Taxes | 10/2/2007 |
Q: My husband and I are thinking about traveling around to churches and holding concerts for a love ...
A: Sarah, If you are not being paid for these concerts, you may have some charitable deductions for ...
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| Buying a house while offer in compromise pending | 10/2/2007 |
Q: I have sumbitted an offer in compromise in July 2007. How long it takes to be adjudicated. Does it ...
A: Shahid, In my experience, it hasn't taken a year and a half to get an offer in compromise ...
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| Real Estate Gift Tax? | 10/2/2007 |
Q: My mom's husband signed a warrantee deed giving the condo he and my mom were living in 50% to his ...
A: Greg, I would recommend all of the heirs to sign the quit claim deeds to your mother. There is no ...
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| Unified Tax Credit Question | 10/1/2007 |
Q: Over the last 30 years my wife and I have gifted money to our children with the understanding that ...
A: Steven, Both of your sons can each gift $12,000 per year to you and your wife. This could ...
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| personal vehicle | 10/1/2007 |
Q: I work in the gas&oil fields industry I use my personal truck to travel to location to location and ...
A: Brent, You could deduct the difference between the cost of the work related expense and ...
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| Corporate CEO payroll | 9/30/2007 |
Q: I have a client who has come up with the scheme of paying himself an annual salary of $100,000 on a ...
A: Connie, I have a number of business client who take one paycheck on December 31st. We do this to ...
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| Inheritance Tax? | 9/30/2007 |
Q: Our father died Feb. 8, 2007. Our mother (his wife) died June 28, 2006. My brother and I are their ...
A: Donda, There are no income tax implications with the receipt of inherited assets. However when you ...
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| College deductible expenses | 9/30/2007 |
Q: My daughter is going to be studying abroad next year for 6 months. I pay a certain portion of her ...
A: David, Travel expenses are not considered qualified education expenses. Once qualified education ...
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| tax ramification for me as inheritor of property | 9/29/2007 |
Q: After my friend's death, I will be inheriting her home. My friend (87) and I (55) would like to know ...
A: Mika, Here is an idea. Have your friend visit her attorney and draft a living trust agreement. ...
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| working out of state | 9/28/2007 |
Q: In terms of tax burden, would there be any advantage to claiming residence in one state (TX) and ...
A: James, If you will be in California longer than a year, you can't consider this a temporary ...
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| Tax Return | 9/28/2007 |
Q: I used the web site, TurboTax to file my 2006 federal return. Because I did not have the information ...
A: Sean, Did you receive an acknowledgement from Turbo Tax that the Federal and Ohio tax returns have ...
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| w4 withholding | 9/28/2007 |
Q: i was reading a book on real estate and they said that to get a max return i should not wait until ...
A: Ervin, Yes by increasing your W-4 allowances, your take home pay will increase. The reason is you ...
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| Gifting property | 9/27/2007 |
Q: What, if any, are the tax implications of filing a quit claim from myself (sole owner of a rental ...
A: Trent, There are no income tax implications with doing this transfer. You will need to file a gift ...
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| Real Estate losses | 9/27/2007 |
Q: I am trying to figure out if the limits ($1 for every $2 of income from $100,000-150,000) on taking ...
A: Mike, There are only two types of corporations. A regular corporation and a Subchapter S ...
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| filing taxes sperate | 9/27/2007 |
Q: My husband owns his own business and I was wonding if I can file my own taxes, We always have to pay ...
A: Michelle, In my experience, 95% of my clients do not benefit by using the married filing separate ...
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| w4 withholding | 9/26/2007 |
Q: i was reading a book on real estate and they said that to get a max return i should not wait until ...
A: Ervin, Without working through calculating the W-4, the idea the book is trying to get across is ...
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| Government per diem | 9/26/2007 |
Q: I am a government civil servant on a temporary assignment. I'm retired but was "re-hired" as an ...
A: Maynard, There really isn't any guidance regarding the amount of time you need to return home ...
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| Estate - capital gains tax | 9/26/2007 |
Q: My father died last year. In 1999, 2000, and 2001, he transfered portions of his property (his ...
A: Tracey, You will certainly have some capital gains to pay tax on. The upside is capital gains are ...
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| Tax question regarding estate | 9/26/2007 |
Q: My father died last year and I was on his bank accounts as a right to survivorship. I have 6 ...
A: Tracey, You won't be liable for any taxes on the inherited accounts, but you will be paying taxes ...
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| Rental sale | 9/26/2007 |
Q: I am considering selling my rental house in Fl. This house is paid off and has been a rental for ...
A: Robert, It's true you will have to recapture the depreciation as taxable income. The tax rate on ...
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| Real Estate losses | 9/25/2007 |
Q: I am trying to figure out if the limits ($1 for every $2 of income from $100,000-150,000) on taking ...
A: Mike, Nice idea, but it really doesn't work. The losses from your S-corp would also be treated as ...
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| Income tax | 9/25/2007 |
Q: I have been working as an independent contractor doing transcription work, so I will receive a 1099. ...
A: T.S., How much you will owe in taxes? The amount varies depending on your filing status, other ...
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| exchange student | 9/25/2007 |
Q: I know I can claim up to $50.00 monthly while hosting an exchange student. Since the student is ...
A: Michaek, You can claim a charitable contribution up to $50 per school month for housing an exchange ...
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| Gift Tax (Shares) | 9/25/2007 |
Q: In 1995 Darlene's father gave her 3600 class B shares (non voting) in a privately held company. The ...
A: Stephen & Darlene, The IRS is partially correct. You should have reported the stock sale on your ...
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| 10 Year Old 501(c)7 - Never Filed IRS 990 | 9/25/2007 |
Q: I just took over the leadership of a 10 year old 501(c)7 organization. It appears that we have not ...
A: Eric, I always advise my clients (even the tax exempt ones) to always file a return. This way ...
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| Delinquent tax information | 9/24/2007 |
Q: I recently heard that CPA's routinely receive information from the IRS listing delinquent tax ...
A: Charlie, CPAs do not receive information from the IRS regarding delinquent taxpayers. The IRS can ...
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| donation | 9/24/2007 |
Q: "If you donate $10 million in goods as a company and take the tax credit and then after the tax ...
A: Ernie, If you take the goods back, then you really don't have a charitable contribution. The ...
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| Tax Deduction | 9/24/2007 |
Q: My spouse salary is 130K. I am not working. We dont have any kids. How much deduction max. can he ...
A: Annie, I am assuming you file a joint tax return with your husband. You can not claim a spouse as ...
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| Do I file for taxes? | 9/24/2007 |
Q: I am currently starting my last year at UCLA. I am working 21 hours a week and bring home $180/week. ...
A: Sam, Since your employers are treating your compensation as an independent contractor and not an ...
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| Government per diem | 9/24/2007 |
Q: I am a government civil servant on a temporary assignment. I'm retired but was "re-hired" as an ...
A: Maynard, The reason you are getting the per diem is because your are on "temporary assignment". ...
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| Establishing residency to avoid capitol gains tax upon sale of seasonal out of state home | 9/24/2007 |
Q: My parents are residents of Florida and own a home there. They are snowbirds and spend their summers ...
A: Lori, First of all, the New York property needs to be their primary residence. How would they ...
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| Capital gains tax on sale of non-primary home | 9/23/2007 |
Q: The home was originally purchased in 1977 by myself and my parents for 34,000. In 1980, I moved out. ...
A: Adam, The taxable capital gain is computed like this. You take the gross proceeds, subtract the ...
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| Government per diem | 9/23/2007 |
Q: I am a government civil servant on a temporary assignment. I'm retired but was "re-hired" as an ...
A: Maynard, Personally, I rather see you return home for a period of time. How much time? Well, ...
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| Gift from brother! | 9/23/2007 |
Q: My brother wants to give me his car with a market value of $35,000. Since my brother and I are both ...
A: Wing, If your brother and his wife made split gifts to you and your wife, no gift tax would be due. ...
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| Do I file for taxes? | 9/23/2007 |
Q: I am currently starting my last year at UCLA. I am working 21 hours a week and bring home $180/week. ...
A: Sam, It's not easy to tell you how much you should expect to pay in taxes. Are your parents ...
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| Capital gains tax on sale of non-primary home | 9/22/2007 |
Q: The home was originally purchased in 1977 by myself and my parents for 34,000. In 1980, I moved out. ...
A: Adam, To better answer your question, I need some additional information from you. First, how did ...
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| Housing Allowance | 9/22/2007 |
Q: I am planning to provide housing allowance to my employees. do I put it as non taxable allowance on ...
A: Ibrahim, Company-provided housing is generally a tax-free benefit for travelers who, during a ...
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| scorp | 9/21/2007 |
Q: Client owns property and debt in an scorp holding all shares. Would it be reasonable to recap and ...
A: Brian, Your client could take a S-Corp distribution of property in lieu of cash. This would ...
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| land tax | 9/21/2007 |
Q: Im non resident and have held land from 2001 in Florida. If i sell i know there is a percentage ...
A: Dave, I made a mistake in mentioning the withholding rate is 30%. The withholding rate is 10% on ...
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| Sales Incentive pay deductible to employer? | 9/20/2007 |
Q: I am an independent insurance agent with several agents working with me on my team. I want to ...
A: Bo, You have two choices. Deductions for business gifts are limited to $25 per person, per year. ...
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| retirement taxation | 9/20/2007 |
Q: I have cashed in all funds from IRA's. Some is for home purchase. What is the common tax rate for ...
A: Joe, It's a little hard to answer your question about a "common tax rate". IRA distributions (even ...
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| Trust bene for Deferred comp | 9/20/2007 |
Q: I live in the State of CA. My father-in-law (FIL), passed away a few months ago. His estate will ...
A: Susan, Estates can file two types of returns. The first type is an estate tax return filed on Form ...
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| My Mother's Trust | 9/20/2007 |
Q: My mother and father are now deceased. I am the trustee of their estate. There is about $400,000 in ...
A: Cheryl, How much tax will you pay will be determined on how much income is earned at the trust ...
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| Gift tax credit | 9/20/2007 |
Q: My family friends wants to give me money for a down payment on a house for me and my wife. Are they ...
A: Charles, It's great to have such generous friends. An individual can gift you up to $12,000 per ...
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| land tax | 9/20/2007 |
Q: Im non resident and have held land from 2001 in Florida. If i sell i know there is a percentage ...
A: Dave, You could do a 1031 exchange as long as it's a like kind (land) located in the U.S. A ...
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| Rental - Casualty Gain and Sale | 9/19/2007 |
Q: I have a Residential rental property that was severely damaged by flood waters in 2005 and then sold ...
A: Denis, There are a couple of issues here. First, you really shouldn't have reported the insurance ...
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| Amanded Tax Return Question! | 9/19/2007 |
Q: My name is Arshak. And I would appreciate if you could help me with my question. I recently filed ...
A: Arshak, Are you married or single is the first question? If you are married, you can not file as a ...
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| Amanded Tax Return Question! | 9/19/2007 |
Q: My name is Arshak. And I would appreciate if you could help me with my question. I recently filed ...
A: Arshak, Are you married or single is the first question? If you are married, you can not file as a ...
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| Foreign partnership | 9/19/2007 |
Q: If I have a foreign partner who has US Tax ID too and he gets a $20000 share, how much should he ...
A: Jimmy, The IRS doesn't require a written contract, but it couldn't hurt considering this is a ...
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| FULL-TIME STUDENT QUESTION | 9/19/2007 |
Q: I AM A 22 YEAR OLD FULL-TIME COLLEGE STUDENT WITH A FULL-TIME JOB AS WELL. I WOULD LIKE TO KNOW IF I ...
A: Zahavah, The reason you don't know any full-time student exempt from income taxes is because there ...
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| Tax | 9/19/2007 |
Q: My sister had a baby recently. She is working a minimum wage job and her husband does not work. She ...
A: Rose, It's very generous of you to help out your family. You might be able to claim your niece as ...
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| Lump Sum Tax Changes | 9/18/2007 |
Q: Neil, I've heard rumblings of a new tax law that supposedly is coming with regards to Lump Sum Tax ...
A: Ray, I suspect it's just rumor, since this is the first I have heard of any new legislation in this ...
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| Medicare or gov't lookback on assets | 9/18/2007 |
Q: We have a mother that may enter a nursing home/assisted living center. The nursing home and Medicare ...
A: Randy, Every state handles qualifying for Medicare a little differently. Most states seem to want ...
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| Sale of home | 9/18/2007 |
Q: I purchased a 3 family home in Feb,2005. I lived in one unit for 2 months then switched it to ...
A: Jeanne, The rental portion is reported on Form 4797. The amounts from 4797 are carried over to ...
|
| Sale of home | 9/17/2007 |
Q: I purchased a 3 family home in Feb, 2005. I lived in one unit for 2 months and then switched it to ...
A: Jeanne, First, you will need to compute the gain or loss on the sale of the property. Your gain or ...
|
| Small Business Startup Tax Information | 9/17/2007 |
Q: My fiance and I recently started building a home based internet business in Arizona. We will offer ...
A: Trinity, You probably should have incorporated before starting your business. Internet businesses ...
|
| Paying taxes in 2 states | 9/17/2007 |
Q: I have a coworker that lives and works in VA, but his family (wife and children) reside in GA. He ...
A: DJ, Your co-worker is required to file tax returns for Virginia and Georgia, but really doesn't get ...
|
| Business transfer upon death of sole proprietor | 9/17/2007 |
Q: I am the sole proprietor of a soon to be new LLC business in Ohio and am presently writing up my ...
A: Sue, I'm not sure you need to have a provision in the LLC operating agreement to deal with the ...
|
| Dad's inherited property transferred to me to protect it... | 9/17/2007 |
Q: My grandmother's home has been in my father and his brother's name for at least the past 10 years to ...
A: Jennifer, Sorry to hear about the loss of your grandmother and uncle. If you decide to rent the ...
|
| capital gains on sale of rental house | 9/17/2007 |
Q: We have recently sold our rental house after having it 3 years. What portion of that income has to ...
A: Graham, Assuming you haven't taken receipt of the proceeds from the sale, you may be able to do a ...
|
| Rental income on primary residence | 9/15/2007 |
Q: I am considering selling my home in Louisiana and buying a condo in Florida. I will continue to ...
A: Robby, There are different tax implications for renting your home for more or less than a total of ...
|
| IRS mileage reimbursment | 9/15/2007 |
Q: I work for a large company, whose corporate office (In New Jersey)is about 200 miles, round trip ...
A: Steve, All the commuting mileage from your home office to various temporary work locations (client ...
|
| Farm residence | 9/14/2007 |
Q: According to www.irs.gov (Farmers ATG - Chapter Three - Basis on Farm Assets, Farm Sale) Land ...
A: Dan, More info...Revenue Rulings and the Treasury Regulations governing Section 121. In Rev. Rul. ...
|
| Farm residence | 9/14/2007 |
Q: According to www.irs.gov (Farmers ATG - Chapter Three - Basis on Farm Assets, Farm Sale) Land ...
A: Dan, I haven't worked with many farms but my understanding is, there is no maximum size of property ...
|
| Buying a Home | 9/14/2007 |
Q: I am buying a first home. I have thirty thousand in a mutual fund. I know I can take out ten ...
A: Bruce, Is your mutual fund held as an IRA? If not, there is no penalty on liquidation. You would ...
|
| Profit Sharing Question | 9/14/2007 |
Q: My husbands employer had a profit sharing plan and then the place of business changed owners so the ...
A: Tracy, The 20% withholding is required by the IRS when a retirement plan distribution is not rolled ...
|
| Donation | 9/14/2007 |
Q: 1. If I give $1000 to my poor sister, can I claim it as donation in my personal tax return. 2. ...
A: Jimmy, The same rules apply. If she is not a US citizen and does not have a social security number ...
|
| EE Saving Bond Taxes | 9/14/2007 |
Q: I was left some EE Savings bonds and from what i understand there is federal tax on the interest. ...
A: Darryl, The only way to figure this out is to obtain copies of the decedent's prior tax returns and ...
|
| Sale of home | 9/13/2007 |
Q: I purchased a 3 family home in Feb,2005. I lived in one unit for 2 months then switched it to ...
A: Jeanne, First, you will need to compute the gain or loss on the sale of the property. Your gain or ...
|
| inheritance tax | 9/13/2007 |
Q: I am one of six siblings who will share equally in the 80k cash estate of my mom who died recently. ...
A: Jim, There is no Federal estate tax due on your mother's estate since it is under $2,000,000. ...
|
| Donation | 9/13/2007 |
Q: 1. If I give $1000 to my poor sister, can I claim it as donation in my personal tax return. 2. ...
A: Jimmy, Money given to your sister is not a tax deductible donation. It can only be a gift, loan or ...
|
| Taxing of Disability & (Early) Pension | 9/12/2007 |
Q: Have been on SDI since 2000 & will be 61 in Jan. I expect 1662/mo in 2008 after Cola and could ...
A: Hugh, You haven't filed a tax return in six years. Even if you don't owe any taxes this is not a ...
|
| Donating Land to a church | 9/12/2007 |
Q: I would like clarification on the value of the donation of land to a church with a basis to my ...
A: Joan, You will be able to deduct the FMV of the donated land on your Schedule A. Charitable ...
|
| estate income tax | 9/12/2007 |
Q: Is the amount paid to a state (pa) for the value of an estate deductible on the federal estate ...
A: Jon, Generally state inheritance taxes are not deductible on the 1041. There is one exception. The ...
|
| margin loans | 9/12/2007 |
Q: I want to buy a flip house without getting a mortgage. I would like to get a margin loan against my ...
A: Keith, If you are not a professional flipper, you might be able to justify the margin interest as ...
|
| medicaid | 9/11/2007 |
Q: This question may not be up your alley but if you can shine light and give direction, Thanks. I ...
A: Cynthia, I'm sorry to hear of your troubles with Medicaid. The problem with Medicaid is each state ...
|
| Filing Taxes for a 16 year old | 9/11/2007 |
Q: My 16 year old just started working. Someone at work told me to have her fill out her W-2 forms as ...
A: Cindy, As long as your 16 year old will earn less than $5,350 (total income) and have less than ...
|
| Mileage per diem | 9/11/2007 |
Q: "I am working on a loan file for a truck driver and I am being required to explain a situation I ...
A: James, I've written a number of loan packages and I can certainly tell you the reimbursement is not ...
|
| Mileage per diem | 9/11/2007 |
Q: "I am working on a loan file for a truck driver and I am being required to explain a situation I ...
A: James, It sounds like your loan applicant's employer is using a per diem rate to reimburse their ...
|
| No Taxable Mileage rate | 9/11/2007 |
Q: I am working on a loan file for a truck driver and I am being required to explain a situation I ahve ...
A: James, Reimbursements to employees for business-related overnight lodging and meals can be handled ...
|
| Tax on Death Benefits | 9/10/2007 |
Q: My wife and I each received money from my Daughter's life insurance policy. I assume this is ...
A: Pat, Proceeds from life insurance policies are not considered taxable income. Sometimes an ...
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| Real estate tax question regarding in-laws | 9/10/2007 |
Q: My husband's parents made a move in 2004 that both my husband and I felt was a bad move. They went ...
A: Erin, You and your husband's inclination that this was a bad move is right on target. When it ...
|
| Defense Base Act Settlement -- Taxable or not? | 9/10/2007 |
Q: Are the settlements under the DBA taxable fromthe point of personal income tax? Thanks, Dragan
A: Dragan, It would depend on the nature of the payments. If the payments are for a personal injury ...
|
| Independent Contractor or employee? | 9/10/2007 |
Q: My husband has been doing tiling work for a man who has been paying him as an independent ...
A: Lynn, This is one of those areas where if you think you are an employee, then you probably are one. ...
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| dependents | 9/9/2007 |
Q: How do i go about stopping my ex from filing the kids on his taxes. Many places dont ask for proof ...
A: Billie, Short of getting a court order (which may be cost prohibitive), this will be handled ...
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| dependents | 9/9/2007 |
Q: How do i go about stopping my ex from filing the kids on his taxes. Many places dont ask for proof ...
A: Billie, If both of you claim the kids as dependents, here is what to expect. The IRS will send ...
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| dependents | 9/9/2007 |
Q: My ex said he was claiming our kids this year, he only pays child support nothing more. he sees them ...
A: Billie, As long as you are the custodial parent and the kids spend more than half the year with ...
|
| depreciaiton of residential rental property | 9/9/2007 |
Q: Alas, I have read that depreciation taken is taxed at 25 percent. But, where is it reported? on ...
A: John, The 25% tax on depreciation occurs in the year you sell the asset. Sales of business use ...
|
| Employee Business Expense Deductions | 9/8/2007 |
Q: My Husband is a salesman and gets paid salary and commission. His commission is based on a ...
A: Charlotte, You can deduct unreimbursed out of pocket work expenses on Form 2106. If the employer ...
|
| I owe a lot in Taxes | 9/7/2007 |
Q: I have a payment plan paying $300 a month for taxes from 2002 to 2006 (federal for about $45,000). ...
A: Hector, The one thing I wouldn't do is contact those firms who advertise they can settle your back ...
|
| 1041 Deductions | 9/7/2007 |
Q: Neil, I am the Administrator and sole heir to my brother's estate which has completed probate and am ...
A: Matt, Here is an outline with answers to your questions. 1. The realtor commissions and other ...
|
| 1099 sign on bonus | 9/7/2007 |
Q: We will be hiring independent contractors(1099)and would like to offer a sign on bonus. How would ...
A: Troy, The simple answer is to add the sign on bonus to the 1099 with the other non-employee ...
|
| taxes on short sale | 9/7/2007 |
Q: I have a house in Az in a short sale for $169,000. I owe $218,000 and have $20,000 invested in it. ...
A: Marilyn, Assuming the sale does occur this year and the lender agrees to accept the short sale, you ...
|
| IRS Audit | 9/6/2007 |
Q: I own a house with my cousin. We are both on the title and live there as roommates and we split the ...
A: Terri, I'm sorry to hear you are being audited. Your situation is not that unusual. The 1098 form ...
|
| Filing quarterly taxes | 9/6/2007 |
Q: I recently left my job voluntarily to take some time off and think about starting my own busines ...
A: Frances, If you expect to report a loss on your tax return for the new business, its unlikely you ...
|
| Taxes on 401k Cash out | 9/6/2007 |
Q: I am aware of the 20% income tax and 10% penalty on cashing out 401k plans prematurely. My question ...
A: Sharron, Technically, there isn't a 20% tax on premature distributions from 401(k) plans. The 20% ...
|
| Closed Corporation which was losing money | 9/6/2007 |
Q: I recently closed down operations of a corporation that I was sole stockholder of. It had loss carry ...
A: Bill, If the loans were made to the company and personally secured by you, I don't think you need ...
|
| Sale of business | 9/6/2007 |
Q: Hopefully you can help me out on this one. A client of mine is selling their business, a diner they ...
A: Jeff, I would try to get as little as possible allocated to goodwill. Goodwill is taxed as ...
|
| taxes on short sale | 9/6/2007 |
Q: I have a house in Az in a short sale for $169,000. I owe $218,000 and have $20,000 invested in it. ...
A: Marilyn, I am assuming what you mean as a "short sale" is you have held the property less than one ...
|
| Mortgage Interest & Principal in Divorce | 9/5/2007 |
Q: My soon to be ex-husband and I each paid 50% of the mortgage on our house Jan - Aug 2007. He moved ...
A: Beth, If you file a joint tax return for 2007, allocating the mortgage interest will not matter. ...
|
| Filing Requirements of Club | 9/5/2007 |
Q: I have a client who just took over the books for a Veteran Descendants organization. They applied ...
A: Barb, Even though the organization is under the limits for filing a 990, you might have some state ...
|
| Closed Corporation which was losing money | 9/5/2007 |
Q: I recently closed down operations of a corporation that I was sole stockholder of. It had loss carry ...
A: Bill, The loss carryforward at the corporate level will be lost as the corporation is dissolved. ...
|
| Selling house before 2 years due to divorce | 9/5/2007 |
Q: My wife and I have been in our house for 20 months. We are divorcing and the terms of the ...
A: Jason, IRS Publication 523 defines an unforeseen circumstance as "the occurrence of an event that ...
|
| Home Office | 9/4/2007 |
Q: I work full-time for IBM and have a home office as my only office. I have purchased several items ...
A: Jan, You will be able to expense these items using Section 179 as unreimbursed business expenses. ...
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| Filing Requirements of Club | 9/4/2007 |
Q: I have a client who just took over the books for a Veteran Descendants organization. They applied ...
A: Barb, You really need to get the 1024 filed. Without it, the organization is a taxable entity. ...
|
| Child dependant | 9/4/2007 |
Q: My husband is divorced and his daughter is in college out of state. We are paying for her college ...
A: Ebbie, The tax laws for claiming a dependent changed in 2005. Under the old rules a parent ...
|
| Reporting K1 info on 1040 | 9/4/2007 |
Q: I received my one and only K1, which is also a final K1. On my 1040, I know where to report from ...
A: Tobey, Yes, you do need to include Schedule E (second page) to both the Federal and Virginia tax ...
|
| write offs | 9/4/2007 |
Q: I was curious if receipts are required for write offs? I currently have not been saving my receipts ...
A: Brent, The burden of proof for your deductions is on you. If your tax return is examined by the ...
|
| convert IRA to Roth now or wait to keep EIC | 9/4/2007 |
Q: My husband and I file joint returns, have 3 kids, and expect to have about $27,000 in taxable earned ...
A: Kim, I usually tell my clients not to pay tax before they have to. This typically means I don't ...
|
| 1031 exchange and section 121 exclusion | 9/2/2007 |
Q: I have been residing in one of the apartments of a two family home ( equal size units)for the past ...
A: Alfredo, The $500,000 exclusion applies only to your principal residence. If half of the building ...
|
| Capital Gain or Loss on Sale of house | 8/31/2007 |
Q: My siblings and I inherited a house that was in my Father's Trust and subsequently passed on to us. ...
A: Kenny, Life estates can sometimes complicate matters, but I believe this one is reasonable to deal ...
|
| taxes | 8/31/2007 |
Q: the tax arte on harriet walker's 80,000 vacation home is 20 mills. the property is assessed at full ...
A: Danie, I'm sorry, but I don't quite understand your question. Is Harriet selling the vacation ...
|
| Home purchase for disabled adult | 8/31/2007 |
Q: I am in Texas, disabled on SSDI, single. I would like to know if there are any tax advantages for my ...
A: Kely, Since your mother and sister do not give you any financial support right now, they can not ...
|
| INHEIRITANCE | 8/31/2007 |
Q: MY HUSBAND IS AN ONLY CHILD, BOTH PARENTS DECEASED (MOTHER MOST RECENT). OUR DILEMMA IS, HIS MOM'S ...
A: Sharon, First of all, profits from the of your mother-in-laws house are not tax free. This doesn't ...
|
| Capital Gains Tax while separated | 8/31/2007 |
Q: My soon to be ex-husband and I will file taxes married/separately this year. For tax filing ...
A: Beth, Before you file married filing separate tax returns, I might reconsider filing a joint return ...
|
| Home purchase for disabled adult | 8/31/2007 |
Q: I am in Texas, disabled on SSDI, single. I would like to know if there are any tax advantages for my ...
A: Kely, There aren't any special tax incentives to helping family members with disabilities. If your ...
|
| Mileage to college - Write Off | 8/30/2007 |
Q: I'm a business owner of an LLC company. My business is expanding and I decided I need to continue ...
A: Scott, If your home office qualifies as your "principal place of business," you can deduct daily ...
|
| Gifting a car | 8/30/2007 |
Q: We live in SC and wish to give our son, who lives in GA, an older car. Do we/does he have to pay ...
A: Mary, Recipients of gifts do not pay gift tax. Gift tax is the obligation of the donor. If the ...
|
| Little brother on taxes filed | 8/30/2007 |
Q: My husband and I for the past 2 years have had his little brother as a dependent on our taxes, we ...
A: Elsie, First of all even though your brother-in-laws parents are illegal, he is probably still your ...
|
| Inherited Money | 8/30/2007 |
Q: I live in CA, but my Aunt from PA left me money when she died. I am about to recieve the payout, ...
A: Heather, If you owe any tax, it will not be on the principal part (the bulk) of your inheritance. ...
|
| Sale of Rental Property after Divorce | 8/29/2007 |
Q: In my recent divorce, I gave my ex-husband the marital house and I kept the house next door which ...
A: Cynthia, If you live in your current residence for two out of the last five years, you could ...
|
| Investment property which did not rent | 8/29/2007 |
Q: I purchased an out of state investment property (the property is in Texas and I live in Illinois) ...
A: Paul, There is three possible ways to go about this. First, you could treat this as investment ...
|
| not filing taxes for 8 years | 8/29/2007 |
Q: My ex-husband (8 years divorced) has refused to file taxes for the last 8 years due to the fact that ...
A: Chrystal, The failure to pay child support has developed into a quasi-criminal type of case, in ...
|
| W4 and Tax Return Filing | 8/29/2007 |
Q: How do I fill W4 withholding for I am on H1-B visa and my wife on G-4 visa.(International ...
A: Wunna, Here is a web link which has instructions for filling out the W-4 form for your employer: ...
|
| buy out other owners on a deed | 8/28/2007 |
Q: I hope you can add some insights to this situation. My parents purchased a house in california by ...
A: Carmen, Assuming she meets the lenders criteria, it won't be a problem for your sister to get a ...
|
| DEPENDANT | 8/28/2007 |
Q: I WANT TO CLAIM MY MOTHER SHE IS 65YR OLD AND IS ON DISABILITY. I GIVE HER MORE THAN 1/2 OF WHAT ...
A: Louis, You could claim your mother as dependent without affecting her disability payments. The ...
|
| Capital Gains / Social Security Tax on Sale of Company | 8/28/2007 |
Q: I was involved in starting a company with two other persons. I have a letter showing the amount of ...
A: Jerry, Without the stock purchase and other agreements to review, it's really difficult to give you ...
|
| Staffing agency switch from w2 to 1099? | 8/27/2007 |
Q: I've be employeed along with 18 other workers at a Staffing agency to provide work for one company, ...
A: Claude, Working for temporary staffing agency does not make you an independent contractor. Seems ...
|
| inheritance/tod account taxes | 8/27/2007 |
Q: My mother died in June, leaving behind myself, and my brother and sister. In terms of cash assets, ...
A: Jocelyn, Here is an action plan to help get you started in the right direction and answer your ...
|
| real estate sale and tax | 8/27/2007 |
Q: I purchased a condo in May of 2006. Both my girlfriend and I are on title, although I am the only ...
A: Tom, The IRS has been fairly liberal on the unforeseen circumstance front. With that said, I don't ...
|
| real estate sale and tax | 8/27/2007 |
Q: I purchased a condo in May of 2006. Both my girlfriend and I are on title, although I am the only ...
A: Tom, How did you get a lender to only put your name on the mortgage when the title is in both of ...
|
| 1041 form | 8/27/2007 |
Q: A woman inherited only $335.00 from her mother's estate. She was told that she had to fill out a ...
A: Shelia, Was the $335 the total amount received from the estate? Chances are there is little to no ...
|
| Social Security Entitlement | 8/27/2007 |
Q: I'm trying to find out if I'm entitled to any of the money my Mom paid into social security all her ...
A: Susie, You can not transfer Social Security retirement benefits from parent to child. Your ...
|
| Mileage to college - Write Off | 8/27/2007 |
Q: I'm a business owner of an LLC company. My business is expanding and I decided I need to continue ...
A: Scott, If you are making this commute from home and back it's not deductible. If you are going to ...
|
| K-1 | 8/27/2007 |
Q: Neil, How does one determine what figure is entered on Form K-1? I have muddled through Form 1041 ...
A: John, First of all, there will be two K-1 forms. One for each heir. The amounts transferred to ...
|
| 401K disbursement | 8/27/2007 |
Q: I am single, started a new career a few months ago and like everyone else already has bills to pay. ...
A: Christine, The IRS code that governs 401k plans provides for hardship withdrawals only if: (1) the ...
|
| Form 1041 | 8/26/2007 |
Q: I'm handling my aunt's estate which had CD's and tax free municipal bonds. She died in January 07 ...
A: Jeri, You should absolutely file the 1041. The lawyer and fiduciary fees are required to be ...
|
| non profit assoc's | 8/26/2007 |
Q: Is money paid to officers of a non profit association considered taxable income and should a 1099 be ...
A: Grumpy, Monies paid to officers of for profit and not for profit entities are taxable income. How ...
|
| Dependent? | 8/26/2007 |
Q: I got a question. I am a us resident and my fiancee she is an international student and I am paying ...
A: Kayam, The tax laws for claiming a dependent changed in 2005. Under the old rules for dependents, ...
|
| Taxes For Civilian Contractors | 8/25/2007 |
Q: Mr Johnson, I'm Luke, and I'm working for L3 Vertex Aerospace here in Mosul, Iraq. We were told ...
A: Luke, You can exclude $82,400 of earned income while living abroad. There is some truth to the ...
|
| rental property | 8/25/2007 |
Q: I have property I recently gained possesion of from my ex. I am renting it out and having it ...
A: Mary, The remodel costs are generally considered improvements and must be depreciated. Most ...
|
| resident alien estate taxation | 8/24/2007 |
Q: Both of my parents are resident aliens (greencards) in the US and have been since 1960. In terms of ...
A: Stewart, Resident aliens are for the most part treated the same as US citizens for estate tax ...
|
| Reporting 1099-Misc income, line 7 | 8/24/2007 |
Q: On our joint return, my husband and I were unsure about how to report 1099-Misc funds of $3520.00 ...
A: Jodi, You should be reporting this income on Schedule C (or C-EZ) or on line 21 of Form 1040. The ...
|
| Assets In/Out of Trust | 8/24/2007 |
Q: My parents are recently deceased. They have a revocable trust that contains most of their assets ...
A: Tony, If the securities were sold by the estate before distribution, the estate would be liable for ...
|
| Assets In/Out of Trust | 8/24/2007 |
Q: My parents are recently deceased. They have a revocable trust that contains most of their assets ...
A: Tony, Your tax basis in the inherited assets will get a step up. Assets held outside of the trust ...
|
| Filing status for next 3 yrs | 8/24/2007 |
Q: I have accepted a 3yr contract to work in Dallas,TX. in oilfields starting in Oct of 2007. My wife ...
A: James, You only have two choices for the federal filing status, married filing jointly and married ...
|
| Is a settlement for injuries recieved taxable | 8/23/2007 |
Q: Neil; As a professional driver I was forced to drop down from a full time schedule to very part time ...
A: Stefan, Internal Revenue Code Section 104(a)(2) excludes from gross income amounts received from ...
|
| Taxes on a Divorce Settlement | 8/23/2007 |
Q: My ex owes me $48,000 for 4.5 acres of land that she wanted to keep. Full sum to be paid this month. ...
A: Ken, There is no IRS reporting requirement. The general rule under Section 1041 is that no gain or ...
|
| 1099 | 8/23/2007 |
Q: My fiancee just got a new job where he was hired as an employee. After over a month's work (and ...
A: Cristen, You fiance's employer is full of it. Decreasing his pay because it will save him money? ...
|
| Min Dist/ when | 8/22/2007 |
Q: I see when I need to start different than plan person. Was 70 on 8-14-07, so I turn 70-1/2 in 08 and ...
A: Curtis, You are required to take a minimum distribution in the year you turn 70 1/2. In your case, ...
|
| Preparation of form 1041 | 8/22/2007 |
Q: I am looking a the instructions for Form 1041 "deductions subject to the 2% limitation" and I see ...
A: Jennifer, Unfortunately, the expenses for maintaining the home or storage costs before distribution ...
|
| Inheritance tax | 8/22/2007 |
Q: I live in Florida My father in law passed no will the house went in the children name the house has ...
A: Kim, Beneficiaries from an estate do not pay inheritance taxes. The estate would be liable for ...
|
| Re: Roth 40l and 403b | 8/22/2007 |
Q: Can one roll over employer 403b amount to individual Roth 401 because I changed employers and would ...
A: Joann, Since a 403(b) is considered a qualified plan, it can not be rolled over to a Roth 401(k). ...
|
| chart for 70-1/2 min dist. | 8/22/2007 |
Q: Where may I find a chart to figure Min. distribution. thanks, Curtis
A: Curtis, Here is a weblink for the required minimum distribution table: ...
|
| Do I have to file? | 8/22/2007 |
Q: I was payed 1600$ in 1099 this year. I have $1660 in expenses. Do I need to include this in my end ...
A: Robert, You will include the 1099 income earned in 2007, on your 2007 tax return (due by 4/15/08). ...
|
| Stipend | 8/22/2007 |
Q: I apologize if this question is not in the correct forum and I have included what I feel is ...
A: David, If your employer provides you with a computer, car and housing it's still taxable ...
|
| individual taxes | 8/21/2007 |
Q: I am trying to find in the tax guide where I am required to file taxes on my labor, while ...
A: John, If you get paid (in cash, goods or services) for your labor, it's taxable income. Here's a ...
|
| foreclosed home | 8/20/2007 |
Q: hey neil, i hope you can help me. the short version. due to illnes,i wound up foreclosing on my home ...
A: Al, Unfortunately you can't take a capital loss on the sale of residence. A residence is ...
|
| Rental | 8/20/2007 |
Q: I have a apartment above my garage that I have rented for 2 years. My current tenants are moving out ...
A: Joe, There is nothing you need to do currently about the depreciation. It just stops once you ...
|
| Loaning money | 8/20/2007 |
Q: Is there a limit as to how much I can loan a person (brother, friend, etc.) as long as I don't ...
A: Jer, With that kind of an amount, you need to charge interest. I suppose you can stretch out the ...
|
| Loaning money | 8/20/2007 |
Q: Is there a limit as to how much I can loan a person (brother, friend, etc.) as long as I don't ...
A: Jer, There are some rules for interest free loans. The easiest interest free loans are those ...
|
| divorce claiming children | 8/20/2007 |
Q: my ex-husband and I have been divorced for 2 years.In our divorce degree nothing was mentioned about ...
A: Christie, There are new guidelines beginning this year for claiming dependent children. The ...
|
| Form 1041 | 8/20/2007 |
Q: I am the PR of my deceased brother's estate. After selling his house, it's time to file the estate ...
A: John, Your brother's last tax return would be for 2006. You actually have a choice to elect a ...
|
| living in one state and working in different state | 8/20/2007 |
Q: i am living in Nj and got a job in NYC, so i want to know how this will work .Do i have to pay 2 ...
A: Soha, The tax reporting is not too complicated. Your situation happens quite frequently. Your new ...
|
| Form 1041 | 8/19/2007 |
Q: I am the PR of my deceased brother's estate. After selling his house, it's time to file the estate ...
A: John, Let's try to address your questions, one by one. 1. The proceeds from a savings account are ...
|
| selling my house | 8/19/2007 |
Q: My name is Jill and I had a question about selling my home. I hope it's somthing you can help me ...
A: Jill, In theory, you could sell half the duplex without selling the other. There is no income tax ...
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| selling a second house | 8/19/2007 |
Q: I sold a house that was inherited to me in 2005. I owned the house the two year period.I am 71 years ...
A: Arthur, I think you should be filing a tax return. The title company which handled the closing ...
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| LOSS | 8/18/2007 |
Q: I HAVE EXPERIENCED A SUBSTANTIAL LOSS OF MONEY THAT WAS INVESTED BY MY QUALIFIED RETIREMENT PLAN. ...
A: Paul, What a terrible thing to happen. Unfortunately, my news won't be much comfort. You really ...
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| health insurance deductibility | 8/18/2007 |
Q: I have a small LLC and want to hire someone [my first employee]. She lives in California, and I am ...
A: Kyle, You can pay her COBRA premiums directly, take a deduction as an employee benefit. This would ...
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| 1099 taxes | 8/18/2007 |
Q: I am self employed and will get a 1099 at the end of the year. How do I know what my taxes are going ...
A: Sherri, Here is a breakdown of your projected federal tax return: Net Schedule C income: $23,000 ...
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| stock gift basis | 8/18/2007 |
Q: My father received stock from his employer over a period of time at no cost or very little cost to ...
A: Terry, Your mother's basis would be the stock's fair market value on the date of your father's ...
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| 1099 taxes | 8/18/2007 |
Q: I am self employed and will get a 1099 at the end of the year. How do I know what my taxes are going ...
A: Sherri, As a self employed individual, you will report your 1099 income and business expenses on ...
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| Inheritance from abroad. | 8/17/2007 |
Q: My grandfather was a citizen of a different country and recently passed away. Me left some money and ...
A: Ed, Beneficiaries do not pay inheritance tax. If your grandfather's assets were all abroad, the ...
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| Giving Family Members a Portion of Lottery Winnings | 8/17/2007 |
Q: My wife and I recently won a large amount of money in our state lottery: $5.2 million is what we ...
A: John, I might have a waited a bit before cashing in the lottery ticket. There are ways to help out ...
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| rent to own and capital gains | 8/16/2007 |
Q: My husband and I are renting to own our current home. The rent to own agreement was on paper, but ...
A: Nancy, This is a really good question. Here are the IRS requirements: To claim the exclusion, you ...
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| step up estate tax | 8/16/2007 |
Q: Mother died in 2005 and that set up a family trust and my Father's trust. When my Father died in ...
A: Richard, Your father's trust (often referred to as the marital trust) will get the step up for the ...
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| Basis in Property with Life Estate | 8/16/2007 |
Q: My 95-year old aunt transferred title to her home to me two years ago and retained a life estate. ...
A: Larry, Clearly you have done a bit of research on this issue. If you are comfortable with taking ...
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| income tax and college grants | 8/16/2007 |
Q: I got married on April 13 2004, and on March 2006 I kicked his butt out. It wasn't till the very ...
A: Danica, The problem is both you and your husband can not file as head of household. Generally to ...
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| gifting a car | 8/15/2007 |
Q: I live in MA, and as part of an arrangement we made to purchase a condo from a private seller my ...
A: Tiffany, Here is a link to a MA website for transferring automobile titles: ...
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| selling a lot | 8/15/2007 |
Q: my wife and i currently live in NC,we are in the process of making settlement on a lot in Pa we have ...
A: Wilson, Honestly the only options are to sell the lot and pay the tax, or do what is called a 1031 ...
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| estate tax | 8/15/2007 |
Q: I am executrix for as estate. No estate taxes will be due since the value of the estate is below $1 ...
A: Sharon, Yes, you will need to file a 1041 for the estate. The IRS hasn't finalized the 2007 forms ...
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| Basis in Property with Life Estate | 8/15/2007 |
Q: My 95-year old aunt transferred title to her home to me two years ago and retained a life estate. ...
A: Larry, The code section applies to the estate's valuation of the life estate for Form 706 purposes, ...
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| Protecting Assets when Making Gifts to Children | 8/15/2007 |
Q: We are considering gifting one of our children with a home they are currently renting from us. How ...
A: Marilyn, I would consider creating an irrevocable trust and placing the house in the trust. This ...
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| Sale of an inherited house | 8/15/2007 |
Q: My mom passed in 2006.We(5 sibblings) inherited the house. We are selling it August 2007 now that ...
A: Shari, You and each of your siblings should be reporting 1/5 of the sale on your individual tax ...
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| Malpractice insurance | 8/15/2007 |
Q: Is there any other way to deduct, besides on Form 2106, a physician's malpractice insurance premium ...
A: Dan, Moving expense...I don't think that will fly. The revenue agent was correct in wanting to ...
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| tax lien, OIC | 8/14/2007 |
Q: Here's my story in a nutshell: Due to a major mistake made by a lack of filing of some conversion ...
A: Jeff, Unfortunately if #1 and #2 doesn't apply, then the 240 rule is irrelevant. You need to meet ...
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| tax lien, OIC | 8/14/2007 |
Q: Here's my story in a nutshell: Due to a major mistake made by a lack of filing of some conversion ...
A: Jeff, I'm sorry to hear about your experience. Somehow I'm not surprised hear about the finger ...
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| Basis in Property with Life Estate | 8/13/2007 |
Q: My 95-year old aunt transferred title to her home to me two years ago and retained a life estate. ...
A: Larry, The constructive use argument is a good try, but it doesn't work. In order to accomplish ...
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| who can claim a dependant? | 8/13/2007 |
Q: I told my ex he could claim my son on his taxes for 3 years, starting with 06 to 08, even though my ...
A: Kim, If your return is rejected online, then by all means file a paper return with an attachment ...
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| Basis in Property with Life Estate | 8/13/2007 |
Q: My 95-year old aunt transferred title to her home to me two years ago and retained a life estate. ...
A: Larry, I recently answered a similar question a couple of days ago. The person who asked question ...
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| who can claim a dependant? | 8/13/2007 |
Q: I told my ex he could claim my son on his taxes for 3 years, starting with 06 to 08, even though my ...
A: Kim, Under the new rules (starting with this year) if the children live with you more than half of ...
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| eldercare | 8/13/2007 |
Q: My parents have reached a point where they can no longer stay alone. They do not, however, want to ...
A: Kim, If you go with the gifting option, you would have no taxable income. Your parents would not ...
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| eldercare | 8/13/2007 |
Q: My parents have reached a point where they can no longer stay alone. They do not, however, want to ...
A: Kim, This may be something you can do yourselves or maybe have an accountant help set up. An ...
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| Home based business | 8/13/2007 |
Q: I am trying to start a Home Business on the internet by joing a couple businesses( marketing ...
A: Stephen, I would file your next tax return with a Schedule C. This form is for self-employed ...
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| Capital gains from trust | 8/13/2007 |
Q: I am executor of a trust for which I can use the income to live on. I also have my own trust which ...
A: Chuck, It depends if your trust document allows for capital gains to be passed to the ...
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| gifting a home | 8/13/2007 |
Q: My mother wrote over the deed to her home to me("gifted it" to me). She left in the deed a ...
A: Thomas, I would love to read the article you have referenced. When a property is placed into a ...
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| Capitol Gains - primary residence or rental property? | 8/12/2007 |
Q: I recently built a new house on the Oregon coast which has already increased in value quite ...
A: Alexis, As long as you have the Portland apartment, it would be hard to argue the beach house as a ...
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| tax-protecting a lump sum employee stock payout | 8/12/2007 |
Q: My husband worked for a company in which he participated in an employee stock ownership plan. He no ...
A: Tracey, Unfortunately, the only thing to do is report the capital gain on your tax return. ...
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| eldercare | 8/12/2007 |
Q: My parents have reached a point where they can no longer stay alone. They do not, however, want to ...
A: Kim, It depends on how much you will need to offset your salary. Each of your parents can gift you ...
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| newly married, bought a house, what to put on W-4? | 8/12/2007 |
Q: I got married last July and we just bought a house this year. My husband lost his job and drew ...
A: Tiffanie, You might not be doing anything wrong. If your husband collected unemployment benefits, ...
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| newly married, bought a house, what to put on W-4? | 8/12/2007 |
Q: I got married last July and we just bought a house this year. My husband lost his job and drew ...
A: Tiffanie, Try doing the calculator again. On the Deductions screen, input an estimate for mortgage ...
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| newly married, bought a house, what to put on W-4? | 8/12/2007 |
Q: I got married last July and we just bought a house this year. My husband lost his job and drew ...
A: Tiffanie, This is one of the hardest questions I get. The calculation is not hard. There are a ...
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| sale of house inherited | 8/10/2007 |
Q: I received my share ($22,000)of the sale of my mother's house this year. (She died 2 years ago) How ...
A: Autumn, The taxable amount from sale of your mother's house will be your share of the difference ...
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| Inheritence Tax | 8/9/2007 |
Q: I'm receiving a small inheritance (less than $10k) and I'm curious how it will be taxed? Should I ...
A: Sean, Beneficiaries do not pay inheritance taxes. Estates pay these taxes before final ...
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| inheritance/estate tax | 8/8/2007 |
Q: My fiance recently purchased a new home for us. He paid cash (approximately $500,000 )and the home ...
A: Jennifer, Texas is a community property state. Since the house was purchased before marriage it ...
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| Renting from my in-laws | 8/8/2007 |
Q: My in-laws own a second home(not considered a vacation property) near their home. They would like ...
A: Patty, There is no requirement that a second home needs to be a certain distance from the primary ...
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| Will I be responsible for my fiance's balance with the IRS | 8/7/2007 |
Q: My fiance has a payment arrangement with the IRS for his 2005 return. Last year he was laid off and ...
A: Shay, I might consider postponing the wedding until your fiance has settled up with the IRS. If ...
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| Estate/inheritence | 8/7/2007 |
Q: I was just asked for my social security number by the accountant and Attorney for my Aunt's estate. ...
A: Liz, Generally, you would receive your share of the estate from the attorney's office and the K-1 ...
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| Real Estate transfer | 8/7/2007 |
Q: Due to financial problems, I have been paying my parents mortgage for about 4 1/2 years now totaling ...
A: Andrew, I would discuss the situation with the mortgage company. They will probably suggest ...
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| Tax Treatment of a lump sum payout | 8/7/2007 |
Q: An individual (over age 70) sold his share of ownership in his small business. As part of the term ...
A: Lori, Having the new owners put money into the annuity is really the same as handing cash to ...
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| Estate/inheritence | 8/6/2007 |
Q: I was just asked for my social security number by the accountant and Attorney for my Aunt's estate. ...
A: Liz, This is a common occurrence. Estate's can generate income before assets are passed to ...
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| Real Estate transfer | 8/6/2007 |
Q: Due to financial problems, I have been paying my parents mortgage for about 4 1/2 years now totaling ...
A: Andrew, This sure is a messy situation. From a tax perspective, it's not too complicated. If the ...
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| Social Security/Sale of Land | 8/6/2007 |
Q: My parents are retired and aged 75 and 78. The only income they receive is Social Security Income. ...
A: Debra, The worst case scenario is your will be your parents will need to file a tax return and ...
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| Tax Treatment of a lump sum payout | 8/6/2007 |
Q: An individual (over age 70) sold his share of ownership in his small business. As part of the term ...
A: Lori, Unless the new owners would like to defer the final lump sum payment into another installment ...
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| giving money to family member without it being income... | 8/5/2007 |
Q: I live in Michigan, and was wondering how much money a family member(father and mother, brother, ...
A: Duane, There is no limit to the amount of money you can give to a family member. A long as it's a ...
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| More onTaxes on retirement funds | 8/5/2007 |
Q: Neil, I am a single woman, nearing retirement, and am concerned about possible taxes my children ...
A: Jane, The issue with the 403(b) account depends on the plan itself. Some 401(k) and 403(b) plans ...
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| Estate taxes on retirement funds | 8/5/2007 |
Q: Neil, I am a single woman, nearing retirement, and am concerned about possible taxes my children ...
A: Jane, I'm not sure where you read that qualified plans are not subject to federal estate taxes. ...
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| U.S. military + German national married tax implications | 8/5/2007 |
Q: I am a U.S. military soldier and I recently married a German national (not a U.S. resident and no ...
A: Ricky, Congratulations on getting married! Honestly, I really can't answer the question about the ...
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| Renting from my in-laws | 8/5/2007 |
Q: My in-laws own a second home(not considered a vacation property) near their home. They would like ...
A: Patty, Your in-laws will have to report the rental income and expenses on their tax return. When ...
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| Filing Form 1041 | 8/4/2007 |
Q: A client of mine formed a revocable trust for tax planning purposes. It's a family trust and my ...
A: Jeff, As long as the income is not being reported under the TIN of the trust, I would prepare 2007 ...
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| Filing Form 1041 | 8/4/2007 |
Q: A client of mine formed a revocable trust for tax planning purposes. It's a family trust and my ...
A: Jeff, Without reading the trust document itself, it is difficult to answer your question. If the ...
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| INSOLVENCY | 8/4/2007 |
Q: Iam negtiating a short sale with the bank. I owe 400,000. The bank accepts 300,000. 1099s me for ...
A: Jay, I apologize, but perhaps I'm not entirely clear what you are asking. The bank sends you a ...
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| Educational tax write-off for a small buisiness... | 8/3/2007 |
Q: I'm an engineering intern for a small civil firm. I'm also a student of engineering. I'm curious ...
A: Eli, The company is getting a deduction no matter the amount. You can receive $5,250 of benefit ...
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| Penalties for Not Taking IRA Distributions | 8/3/2007 |
Q: My father had an IRA at the time of his death which I inherited. I had the acct retitiled in my ...
A: Nancy, New rules were enacted 1/1/07 that allowed non-spouse beneficiaries to rollover IRA proceeds ...
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| Inhertance Tax | 8/2/2007 |
Q: My wife will be receiving 1.7 million dollars from the death of her father. No property etc...only ...
A: Alex, The is no income tax for the inheritance. There may be some income tax due on the amount of ...
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| INSOLVENCY | 8/2/2007 |
Q: Iam negtiating a short sale with the bank. I owe 400,000. The bank accepts 300,000. 1099s me for ...
A: Jay, The bank will issue a 1099-C for the $100,000. This amount will be reported on your tax ...
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| Educational tax write-off for a small buisiness... | 8/2/2007 |
Q: I'm an engineering intern for a small civil firm. I'm also a student of engineering. I'm curious ...
A: Eli, Your company can provide you with tuition assistance up to $5,250 per year, tax free to you. ...
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| Home selling question | 8/1/2007 |
Q: I am remodeling my house to sell. I have lived here for 1 1/2 yrs and will have to relocate for my ...
A: Kelly, If you lived in your house for less than two years, you can exclude a part of your gain on ...
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| tax on sale of home by estate | 8/1/2007 |
Q: I am personal representative of my deceased brother's estate. He died intestate, with my two ...
A: Patrick, The gain on the sale of his residence is the difference between the sales price and it's ...
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| selling off a lot | 8/1/2007 |
Q: We are planning to buy a vacation home, which includes an extra lot, from our parents. After the ...
A: Jane, Did you inherit the lot from your parents? If not, the fair market value for cost basis ...
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| Question about Duplexes | 7/31/2007 |
Q: Neil, If I purchase a duplex and live in one while renting out the other, how do I account for it ...
A: Wen, Half of the duplex would be considered a personal residence and the other half rental ...
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| 401k cash out | 7/31/2007 |
Q: I need to come up with $72,000 to buy out my soon to be Ex’s share of our house. My 401K is worth ...
A: Mike, Can you borrow from your 401(k) plan? Most 401(k) plans have provisions to borrow up to half ...
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| taxes on sale of second nonrental home | 7/30/2007 |
Q: We are selling our second home, which we use for personal/vacation purposes. We do NOT rent it out. ...
A: Jennifer, Unfortunately, you will have to pay tax on the capital gain. Be sure to gather all of ...
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| pre construction condo | 7/30/2007 |
Q: I put a 20% down payment down and now the market is falling. I am considering walking away from my ...
A: Lou Ann, The loss would be considered a capital loss. Capital losses can be used to offset capital ...
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| Renting from my in-laws | 7/30/2007 |
Q: My in-laws own a second home(not considered a vacation property) near their home. They would like ...
A: Patty, Your in-laws can charge you below market rent. If they incur any tax losses on the property, ...
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| Tax Exemption- income | 7/28/2007 |
Q: I am writing this because I filed for a tax exemption from state and federal taxes with the human ...
A: Kathy, For 2007, you wouldn't pay any Federal income tax on the first $5,350. I don't know what ...
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| family trust tax | 7/28/2007 |
Q: my dad died this past march after having set up a family trust. the house just recently sold for ...
A: Catherine, This a little difficult to answer because it really depends on when the house was ...
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| Trust accounts and taxes | 7/27/2007 |
Q: I have a hypothetical question. If the rent for a dwelling is paid out of a trust account and the ...
A: Lon, In many ways this more of a legal question than a tax question. Here's what I do know about ...
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| How are unpaid loans taxed back? | 7/27/2007 |
Q: Neil - I used to be a minority shareholder (1%) of a small sub-S corp. I took small loans from the ...
A: Chris, You shouldn't receive amended W-2 forms for 2005 or 2006. If reported correctly, you would ...
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| Stipend Tax Question | 7/26/2007 |
Q: I am a fellow and receive a stipend. At the end of the year I receive a 1099MISC tax form. I am not ...
A: Sherri, Under these circumstances, yes you would be considered self-employed. First, you would ...
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| Capital Gains Tax on Sale of Rental Property | 7/26/2007 |
Q: I purchased a property in late 2006--used it as a rental property and then after holding it for less ...
A: Michael, It depends on a couple things. First it will depend on how much your gain is and much the ...
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| Joint Tenancy w/Rights of Survivorship | 7/25/2007 |
Q: My wife's dad passed away on 1/31/07 and she was the only joint owner on his home (his wife passed ...
A: Fran, If your father-in-law didn't report the non deductible loss on his 1997 tax return, he should ...
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| Joint Tenancy w/Rights of Survivorship | 7/25/2007 |
Q: My wife's dad passed away on 1/31/07 and she was the only joint owner on his home (his wife passed ...
A: Fran, On 7/15/97 your father-in-law's cost basis on the PA home would be one-half of the original ...
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| Capitol Gains Tax on primary residence. | 7/25/2007 |
Q: We are selling our home that we lived in for just over a year in a rent-to-own situation, and have ...
A: Kimberly, If you have lived in your residence over one year the capital gains tax rate is 15% for ...
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| LLC Withholding | 7/24/2007 |
Q: I am starting an LLC with a partner. We are going to file as a partnership; my understanding of ...
A: Emily, A simple question without a simple answer. Each member (LLC term for partner) will need to ...
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