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Tax Law (Questions About Taxes)/Questions Answered by Expert John Stancil, CPA

SubjectDate Asked
Form 83322/10/2012
  Q: My son divorced, he pays child support, and the children live with his exwife while he is in the ...
  A: Deb, Thanks for your question. If your son has a Form 8332, signed by his ex wife releasing the ...
Schedule E Rental Real Estate Losses2/10/2012
  Q: I have approximately $20,000 this year in expenses on a rental real estate home I have owned for ...
  A: Lyndon, Thanks for your question. The amount of deduction you can take for passive real estate ...
Form 7092/10/2012
  Q: A parent had his house named to his 4 kids in his trust, then he titled it to them for about 4-5 ...
  A: Jan, Thanks for your question. You will need to know the original purchase price of the house by ...
Independent contractor/tutor report on Schedule C2/10/2012
  Q: I received a 1099-MISC from an Educational Service, LLC that I worked for. I received $600 under ...
  A: Michael, Thanks for your question. It is your business, use your name, business name, address, and ...
Discharged debt2/9/2012
  Q: I had two rental properties discharged in Chap 7 last year. Both properties were 40% underwater. ...
  A: Will, Thanks for your question. the $240,000 is taxable income, reported on line 21 of the 1040. ...
State Taxes2/9/2012
  Q: My husband and I live full time in NC but in 2011 he got his paycheck from PA with PA taxes taken ...
  A: Martha, Thanks for your question. If he did not work in PA, those taxes should not have been ...
tax exemption?2/9/2012
  Q: First off thanks for your professional advice. Here is my situation. I have been a contractor ...
  A: Ed, There are actually two ways to qualify. I was working under the assumption that you were using ...
Per Diem2/8/2012
  Q: I receive a W2 from my employer. I travel out of state for my job every other week - 8 days on and ...
  A: Tammy, Thanks for your question. No, you cannot take a deduction as you are being paid for them. ...
Deed in lieu and no 10992/8/2012
  Q: My ex-husband and I completed a deed in lieu of foreclosure June 2011. The mortgage company told me ...
  A: Shannon, Thanks for your question. I can't say why they aren't going to issue a 1099. They said ...
Taxable Lawsuit Settlement2/8/2012
  Q: I settled a lawsuit this year between myself and my home's builder. The lawsuit began in 2006 and ...
  A: Sally, Thanks for your question. The document you cite does not give complete information. While ...
Form 7092/8/2012
  Q: A parent had his house named to his 4 kids in his trust, then he titled it to them for about 4-5 ...
  A: Jan, Thanks for your question. The answer, by necessity, is somewhat complex, so if any part is ...
Inheritance after the fact2/8/2012
  Q: In 2010, I learned that my mother (who died in 1988) had unclaimed money in New Jersey from MetLife ...
  A: OK, it would be reported on your 2011 return. It is taxed because the law provides that an ...
Inheritance after the fact2/7/2012
  Q: In 2010, I learned that my mother (who died in 1988) had unclaimed money in New Jersey from MetLife ...
  A: Bill, Thanks for your question. Actually it is taxed. You owe tax on the excess of the sale price ...
Dependent2/7/2012
  Q: I'm about to file my taxes and have someone who has been living with me for a while now. I've been ...
  A: Mavi, Thanks for your question. His tax liabilities will have no effect on you if you can claim ...
Tax Residency Question2/7/2012
  Q: John, First thank you for posting this blog - I think we can all agree we usually have more ...
  A: S, Thanks for your question. You are a resident of MD, even though you have not transferred your ...
Schedule C Questions2/7/2012
  Q: This year I started generating 1099 revenue as sole proprietor and used my personal vehicle for ...
  A: Lisa, Thanks for your question. The in service date would be 7/1/2011. You should, however, ...
University Stipend tax treatment2/7/2012
  Q: My daughter is working toward her PHD at an American Graduate University in NYC. She gets paid on a ...
  A: Federal tax being withheld is not an indication one way or the other of it being earned income. ...
University Stipend tax treatment2/7/2012
  Q: My daughter is working toward her PHD at an American Graduate University in NYC. She gets paid on a ...
  A: Richie, Thanks for your question. That is rather strange, I have never seen a 1099 MISC issued and ...
Head of Household2/6/2012
  Q: John, First off, thinks for doing this. I love this site. I got divorced in 2008 and have a ...
  A: Chris, Thanks for your question. Your interpretation is correct. You can file amended returns for ...
Tax Refund for 17 year old2/6/2012
  Q: My ex-husband pays child support on our 17 year old daughter. Thus he can claim her as a dependent. ...
  A: Mitzi, Thanks for your question. Sure. She just files her own return, probably a 1040EZ and does ...
Rent Income2/6/2012
  Q: My wife has a small business and she rents the bottom floor of a small office building that has ...
  A: David, She will need to report her rental income on Form 8825 as a part of her 1120-S. On that ...
2011 Taxes, student loans & employer compensation2/6/2012
  Q: I attend college full time and receive student loans (subsidized and unsubsidized) to pay for it. ...
  A: Kevin, Thanks for your question. You deduct the qualified student loan interest on page 1 of the ...
IRA2/6/2012
  Q: I am under age 50 and working with no retirement benefits. May I transfer stock from my regular ...
  A: Jackie, Thanks for your question. Yes, you can put stocks into your IRA. However, when ...
tax exemption?2/6/2012
  Q: First off thanks for your professional advice. Here is my situation. I have been a contractor ...
  A: Ed, Your exemption for 2010 would be approximately $80,970, so none of your 72K earned income would ...
Head Of Household2/5/2012
  Q: My daughter turned 19 on Nov,2011.She had registered for college for the Fall/Spring (2011/2012). ...
  A: Jeff, Thanks for your question. Dependents are classified as a qualifying child or a qualifying ...
alimony2/5/2012
  Q: i got divorced last year. we split the property half and half. I have to pay my ex 20K a year. Can i ...
  A: RT, Thanks for your question. It alimony and deductible by you if all of the following apply: 1. ...
Tax Question Regarding Business Partnership2/5/2012
  Q: I am in the early stages of starting a small business with several partners. One of my partners ...
  A: Krissy, You and your business are not responsible for the tax transgressions of others. As long as ...
Fraudulent filing status2/3/2012
  Q: I was divorced in Oct. Efiled my taxes last night as single. It got rejected from IRS for filing ...
  A: Angela, Thanks for your question. Unfortunately, it is a drawn-out process. You must file a paper ...
fundraising taxes2/3/2012
  Q: who has cancer. We are expecting to raise $50,000 + as each team is asked to come up with a certain ...
  A: Brandi, Thanks for your question. The money is not income to the family so they do not report it ...
tax exemption?2/3/2012
  Q: First off thanks for your professional advice. Here is my situation. I have been a contractor ...
  A: Ed, First, it is not a tax exempt situation. It is an exemption. If you qualify, you may exempt ...
How to account for Cost to manage real estate LLC and non property specific costs?2/3/2012
  Q: I am in the process of preparing my income statement for the tax filing for my rental real estate ...
  A: John Thanks for your question. Since the LLC is engaged solely in real estate, the costs should be ...
taking out tax for someone else2/2/2012
  Q: I chose you to ask because I knew a John Stancil from Ohio...OK, here's the situation. I got my ...
  A: Jill, Thanks for your question. If you pay him $600 or more including any taxes withheld, you must ...
Church Designated Offering2/2/2012
  Q: I remain confused on how this should be handled. A church member gave a check to the church and in ...
  A: No, again the issue is one of undue control. A donor cannot specify the specific use of the funds. ...
Camper Deduction2/2/2012
  Q: a few years ago you answered my questions about the use of a camper for business use. thanks for the ...
  A: Chad, Thanks for your question. To the extent the new camper is used for business, it can be ...
Church Designated Offering2/2/2012
  Q: I remain confused on how this should be handled. A church member gave a check to the church and in ...
  A: Trudy, Thanks for your question. The Busby book is a good one. I commend you for having a copy. ...
Head of Household2/2/2012
  Q: Here is my situation: I got divorced in August 2011 but continued to live in the household until Oct ...
  A: William, Thanks for your question. You can claim head of household if you provided over half the ...
NY State tax when working there as a consultant through another company2/2/2012
  Q: I'll be working for a consulting company based in NJ. I will be living in VA, and I'll be working ...
  A: John, Thanks for your question. It depends. You state that you will be working for a client in ...
home warranty settlement2/2/2012
  Q: Mr. Stancil, The new home I purchased in 2007 has a major structural defect (foundation) which was ...
  A: Joy, Thanks for your question. The settlement you received is not taxable to the extent the value ...
calculating business miles question2/1/2012
  Q: I am an ordained minister working as a youth pastor in a church. I get a Professional Expense ...
  A: Howard, Thanks for your question. The basic rule is that the first trip and the last trip of the ...
IRA and Capital Gains2/1/2012
  Q: John: This is a "PS" to my qyestion and example regarding a $500 IRA withdrawal and a subsequent ...
  A: Nicholas, I can't recall the specifics of your original question, but the IRA withdrawal is taxable ...
Tax On IRA Withdrawals2/1/2012
  Q: John: My wife had a small IRA, and at the age of 72 1/2 received quarterly withdrawals which we ...
  A: Sorry, I saw your other question first. I think I covered it all in the first response, you do ...
Filing Income Taxes2/1/2012
  Q: Mr. Stancil, I had a person contact me and asked me a question in which I did not know how to ...
  A: Billy, Thanks for your question. If his net income from his side business exceeded $400 he is ...
babysitting income1/31/2012
  Q: i babysit my friends daughter during 2011 and receive $5000. i received cash payment. i heard that ...
  A: Maria, Thanks for your question. Not quite correct. In order to take the child and dependent care ...
lotto tickets1/30/2012
  Q: My husband won lottery money this year. We have losing tickets to claim. Where do we claim them? ...
  A: Cindy, Thanks for your question. You are required by law to file a separate Schedule C for each ...
IRA Early distribution1/30/2012
  Q: I opened a rollover IRA in 1996. I cashed in the IRA in 2011 for college/wedding expenses for my ...
  A: Craig, Since the IRA was funded with pre-tax monies (I assume) you will owe tax on the amount of ...
State and City Tax?1/29/2012
  Q: I live in Delaware and am a resident of Delaware, while working in Phildelphia. I currently pay 10% ...
  A: Andrew, Thanks for your question. City taxes and state taxes are two different levels of taxation. ...
debt cancellation/insolvency exception1/29/2012
  Q: John, I have a question as it relates to debt cancellation and the insolvency exception to paying ...
  A: Mike, Thanks for your question. First, if you file a joint return, it does not matter, assets and ...
addendum1/29/2012
  Q: Yes I filed my taxes through H&R block this year and I was afraid my daughters father was going to ...
  A: Brooke, You can file an amended return on Form 1040X, it is not referred to as an addendum. I ...
401k loan1/29/2012
  Q: I took a $1200.00 loan from my 401k in 2010, a co worker told me she was told by a woman from ...
  A: Crystal, Thanks for your question. A loan is not income, so you do not report the proceeds on your ...
RE: Filling taxes after fundraiser1/29/2012
  Q: We held a fundraiser to pay for medical bills. We applied for an IRS EIN in order to open a bank ...
  A: Jessica, Thanks for your question. It depends on what type of organization you are - corporation, ...
received stock as a gift1/28/2012
  Q: I received stock as a gift, but i m unable to determine the donor's adjusted basis. I sold stock as ...
  A: Rich, Thanks for your question. No, the FMV as of the date of the gift is not acceptable. You ...
Check routing1/28/2012
  Q: My son needs his money today and I was wondering if it is legal to have his check routed to my bank ...
  A: I did not give you an incorrect answer, but it was incomplete. It is not illegal, per se. However, ...
Adoption1/26/2012
  Q: How far back can you claim expenses for the adoption of a child? It has taken 5 years to complete ...
  A: Sheldon, If it is a foreign adoption, you can take all the expenses in the year in which the ...
tax dependent1/26/2012
  Q: My son's girlfriend has lived with him for the entire year of 2011. She is unemployed and had no ...
  A: Dan, Thanks for your question. You state she had no earned income, but that is not relevant. If ...
parents claim me?1/26/2012
  Q: I just want to know who is the right person to claim me if possible my parents or my fiance. I am ...
  A: Nicole, Thanks for your question. Since you did not live with your fiance for the entire year, he ...
Capital Gains tax1/26/2012
  Q: I bought a vacation home about 5 years ago, a 'fixer-upper', as they say. I had a new roof put on, ...
  A: Shawn, Thanks for your question. The repairs that you did will add to your cost basis, so based on ...
Schedule C Mileage Deduction when you also are employed1/25/2012
  Q: I am looking for clarification about which miles are deductible given that I have both business and ...
  A: Lisa, Thanks for your question. Your mileage from home to the first stop each day is not ...
Non Profit donations1/25/2012
  Q: Stancil, I work for a non-profit church (501 c3). Can you please tell me what the IRS requirements ...
  A: Becki, Thanks for your question. Basically, there are no requirements. It is permissible to send ...
Church giving car to Pastor1/25/2012
  Q: The church board would like to give our pastor and his family a new car. We initially thought we ...
  A: Randy, Thanks for your question. Whether you give him a car or $25,000 does not matter, it is ...
deducting legal expense in defending civil litigation1/25/2012
  Q: I am being sued by my ex. Unfortunately, I am forced to defend my assets(home, cars, rental ...
  A: Sara, Thanks for your question. Unfortunately, I do not have the answer you want. Legal ...
Should I file Jointly1/25/2012
  Q: I recently got married on September 22nd, 2011. I'm in the process of filing my taxes and want to ...
  A: Latoya, Thanks for your question. Since you were married as of December 31, you do not have the ...
23 yr. old son1/24/2012
  Q: My son is 23 yr old single and lives with me just me and him and he made $3000 in 2011 will I be ...
  A: Bill, Thanks for your question. If he lived with you for the entire year and his gross income was ...
tax owed on in inheritance ?1/24/2012
  Q: I may receive a $20,000 inheritance from a friend. Do I need to declare this to the IRS? ...
  A: Gabe, Thanks for your question. Inheritances are not subject to income tax, so you do not report ...
179 deduction and other income1/24/2012
  Q: please advise on how to handle the following situation. I have a professional salary and I started a ...
  A: Thhe 100% bonus depreciation and Sec 179 are two different things. You can offset salary against ...
recapturing depreciation on property sold at a LOSS1/23/2012
  Q: John: I've been reading your very informative q and a's, and I understand that depreciation must be ...
  A: Bob, Thanks for your question. If there is a loss, there is no depreciation recapture. However, ...
Minister Withholding1/23/2012
  Q: I am the secretary at our church & no CPA. I do the W-2's for the ministers & other employees. In ...
  A: Chris, Thanks for your question. First let's talk about the right way to do it. The minister's ...
expense cutoff dates1/23/2012
  Q: John, I have started a major repair/remodel on one of my rental houses in December and most of my ...
  A: Frank, Thanks for your question. You have two important dates to consider. First is the date ...
179 deduction and other income1/22/2012
  Q: please advise on how to handle the following situation. I have a professional salary and I started a ...
  A: Antonio, Thanks for your question. You can take the losses on your 1040. When you complete the ...
state taxes1/21/2012
  Q: I live in North Carolina and work in North Carolina & South Carolina my employer is out of Florida ...
  A: Robert, You will need to file in South Carolina as a non-resident, reporting your SC earnings on ...
taxed military seperation pay1/21/2012
  Q: I received a severance pay from the military of 49820 which I was taxed about 12400. I understand ...
  A: Bobbie, Thanks for your question. Separation pay is included on your W=2 and reported on your 1040 ...
Tax treatment on vacation home sale1/21/2012
  Q: We plan to sell our vacation home on the Cape to acquire a larger vacation home on the Cape, which ...
  A: John, Since the vacation home does not qualify as your primary residence, you will owe tax, at ...
Cash Transfer1/21/2012
  Q: In 2011, as a gift, I transferred $50,000 from my savings account to my son's savings account; both ...
  A: Yes, you will need to file a return. Take the $50,000 gift and subtract the $13,000 annual ...
Child Care Expenses/Divorced Parents1/20/2012
  Q: If you are a divorced parent with shared parenting, meaning we each have our child equal amounts of ...
  A: Jana, Thanks for your question. The parent not taking the dependency exemption and child credit ...
nondeductable ira1/20/2012
  Q: i have a question about nondeductable ira. i dont qualify to open a tranditional or roth ira. so i ...
  A: You need to check with the plan trustee to see if what you wish to do is allowed. Also, IRS ...
nondeductable ira1/20/2012
  Q: i have a question about nondeductable ira. i dont qualify to open a tranditional or roth ira. so i ...
  A: Rob, Thanks for your question. No, the amount rolled over would not be subject to tax, as you ...
Cash Transfer1/20/2012
  Q: In 2011, as a gift, I transferred $50,000 from my savings account to my son's savings account; both ...
  A: Joyce, Thanks for your question. Since the gift exceeded the $13,000 annual exclusion amount a ...
taxes on 401K & 457 after death1/19/2012
  Q: I am trying to avoid paying taxes and for my beneficiaries (children) to pay taxes upon my death for ...
  A: On the first point that is correct. If it is an inherited IRA the funds must be withdrawn within a ...
1099 for rent and builder1/19/2012
  Q: "I was told I need to issue 1099 now from 2008 Tax Law for any services I paid like remodeling the ...
  A: Couple of problems with that. First, that would be an improperly issued 1099 and there can be ...
My teenager's earned income1/19/2012
  Q: Two questions concerning my teenage daughter ! 1) what is the most she can earn without having to ...
  A: Ben, Thanks for your question. Assuming she has unearned income of less than $950 (interest, ...
w2 being withheld by employer1/18/2012
  Q: Can an employer withhold a w2 from an employee or former employee? I was contacted by a former ...
  A: Ruth, Thanks for your question. I can't provide you a code citation, as that would take more time ...
Ministers Houssing Allowance1/18/2012
  Q: Is a cell phone considered a cost to provide a home? Also, when determining the deduction limit of ...
  A: Peggy, Thanks for your question. No, that does not qualify for inclusion in the housing allowance. ...
dependent?1/18/2012
  Q: I have a question about claiming my son ( 22 years old). He lives at home and attends a local ...
  A: Daryl, Thanks for your question. You can claim him as a dependent if 1) he lived with you the ...
1099 for rent and builder1/18/2012
  Q: "I was told I need to issue 1099 now from 2008 Tax Law for any services I paid like remodeling the ...
  A: John, Thanks for your question. From the tone of your question, it would appear to me that you are ...
stock loss reporting1/17/2012
  Q: I had stocks of two corporations which went bankrupt. I did not claim the capital loss on tax ...
  A: Harry, Thanks for your question. When a corporation stock becomes worthless, the loss is to be ...
business tax1/16/2012
  Q: I took over a sole propietorship in July of this year. I have been paying the former owner 15% of ...
  A: Susan, Thanks for your question. Since it is a sole proprietorship, you purchased the assets - ...
Tenant broke the lease1/15/2012
  Q: I have a single family rental property where the tenant broke the lease by leaving 4 months early ...
  A: Ken, Thanks for your question. You cannot take a deduction for the unpaid rent, because you never ...
taxes on 401K & 457 after death1/13/2012
  Q: I am trying to avoid paying taxes and for my beneficiaries (children) to pay taxes upon my death for ...
  A: Nina, A 401(k), 475, and traditional IRAs will be subject to income tax on the person or persons ...
Minister's Expense Reimbursements1/13/2012
  Q: Mr. Stancil, My church pays the minister a salary and also has a professional expenses account in ...
  A: It is a technical issue. From one standpoint you can't reclassify salary as business expense ...
Minister's Expense Reimbursements1/13/2012
  Q: Mr. Stancil, My church pays the minister a salary and also has a professional expenses account in ...
  A: Greg, Thanks for your question. Yes, as long as the plan meets the requirements for an accountable ...
Medical Expenses & Filing Status1/13/2012
  Q: I'm sorry hopefully I can ask two they are very short. First Question. My husband and I both had ...
  A: Amy, Thanks for your question. You deduct the expenses in the year paid, not the year incurred. ...
Tax laws for parents of a disabled child who recieves SSI1/13/2012
  Q: We have a 19 year old daughter (she is a full time high school student) who receives SSI for ...
  A: Rachel, Thanks for your question. The amounts she pays you in "rent" is not taxable to you, but is ...
lotto tickets1/13/2012
  Q: My husband won lottery money this year. We have losing tickets to claim. Where do we claim them? ...
  A: Cindy, Thanks for your question. You can take a deduction for any lottery tickets purchased during ...
Am I still a dependent or should I file on my own?1/13/2012
  Q: I am a 20 year old full-time community college student as well as being employed full-time. I have ...
  A: Candace, Thanks for your question. There are three tests that are relevant in your case. 1. Age. ...
tax liability after two deaths in the family1/12/2012
  Q: I'm 22 and am very unfamiliar with anything to do with taxes. My mother died about 7 years ago and ...
  A: Deborah, Thanks for your question. Inheritances are not subject to income tax, only the income ...
S corp, Used Car1/12/2012
  Q: I am active army, my wife is a freelancer interpreter (gets 1099, not an employee). We formed a S ...
  A: Kris, Thanks for your question. I can't address the insurance issue, as that is not tax and ...
1120-H1/12/2012
  Q: I am the treasurer of a condominium association that files an 1120-H tax return every year. In the ...
  A: Jennifer, Thanks for your question. That should not be a problem. The $30,000 is not reported as ...
State Taxes1/12/2012
  Q: I am a resident of Kansas and work part time for a company based in Iowa. My work for them consists ...
  A: Richard, Thanks for your question. You owe Iowa taxes based on the amount of time you spent in ...
1099 misc1/12/2012
  Q: Can an employer take out federal and or state taxes on a employee on a 1099 misc if the employee ...
  A: Susan, If the person is an employee, he/she cannot receive a 1099, but must be given a W-2. ...
income tax problem1/11/2012
  Q: I just received my w-2 form from my employer today and after reading over it, I noticed that they ...
  A: Kristyn, Thanks for your questions. Federal law provides a rate for them to use for withholding if ...
reporting taxes on pension1/11/2012
  Q: I am 60 yrs old and have always done my own taxes for the IRS, form 1040. Sometimes it's complicated ...
  A: Lee, Thanks for your question. It is fairly simple but not quite like you have stated. Your ...
Missionaries expenses1/11/2012
  Q: I recently began working for a missions organization as their finance officer and have some ...
  A: Pam, Thanks for your question. Q1. The way the expense payments are being treated is not the best ...
independent contractor expenses for tax purposes1/11/2012
  Q: My nephew is a college student in a different state from where his parents lived. He spent the last ...
  A: Sometimes you hit the "send" key too quickly. I need to clarify something from the answer I just ...
lotto tickets1/10/2012
  Q: My husband won lottery money this year. We have losing tickets to claim. Where do we claim them? ...
  A: Cindy, Thanks for your question. The lottery winnings are reported on line 21 of the 1040. You ...
medical deductions1/10/2012
  Q: My husband has medical insurance on me, but I'm filing separate. Can I deduct money I paid for Dr. ...
  A: Cindy, Thanks for your question. You can deduct the amount of medical expenses that were not ...
write offs1/10/2012
  Q: I published a book in 2011. I had to buy a computer to do so. I do use the computer for personal ...
  A: Cindy, Thanks for your question. You can deduct a percentage of the cost of the computer based on ...
partnership tax deduction1/10/2012
  Q: My husband and his brother have a lawn service company which is taxed as a partnership using Form ...
  A: Carol, Thanks for your question. They cannot deduct the full cost. Since the truck is not owned ...
Tax on a settlement1/10/2012
  Q: My son Connor recently passed away. He had an insurance settlement due to a car accident that placed ...
  A: Joe, Thanks for your question. If the settlement was for physical injuries and/or medical expenses ...
1099A Acquisition or Abandonment of Secured Property and Chapter 131/10/2012
  Q: John: I previously read your reply to another person in 2011 regarding the 1099-A Acquision or ...
  A: Paul, Thanks for your question. Chapter 11 bankruptcy is the only one to which the exclusion is ...
independent contractor expenses for tax purposes1/9/2012
  Q: My nephew is a college student in a different state from where his parents lived. He spent the last ...
  A: Andreaa, Thanks for your question. Since he was an independent contractor and was living in the ...
Where To File Taxes for Son's Internship1/9/2012
  Q: Our son was a full-time student and graduated from college in May 2011 in NC. He had no earned ...
  A: Martha, Thanks for your question. Since he was a full time student for five months during the year ...
dependents1/8/2012
  Q: My daughter is in the process of a divorce. He has not lived in the home for over a year. I(her ...
  A: Joanell, Thanks for your question. In order for you to claim the children, you must provide over ...
rental income and FAMILIES1/8/2012
  Q: I just made a donation but it may not have been credited--sorry. I will check soon. My mother is ...
  A: CC, Thanks for your question and the donation. There are a couple of scenarios that could help you ...
Capital Gains on sale of inherited Mutual Funds1/7/2012
  Q: Hopefully I can craft a better question than the one I asked a few weeks ago. My Mother-in-law died ...
  A: Mary, Thanks for your question. #1 Capital gains would be reported on the estate return, any ...
Exempt Income From Series EE Bonds1/6/2012
  Q: Interest income on Federal obligations (ie., Series EE, Series HH, etc) is exempt from state and ...
  A: Pete, Thanks for your question. There are numerous federal statutes that exempt interest on ...
roth ira1/6/2012
  Q: i have a roth ira and know that in order to contribute money of $5k limit a year you need to have ...
  A: John, Thanks for your question. Take action NOW to avoid a really, really bad result. You have ...
filing jointly1/5/2012
  Q: I've been married 2 years and we've filed jointly. My husband and I have been separated a few month. ...
  A: Karen, That is strictly up to you. Since you are in a community property state, you would have to ...
How to file taxes for babybsitting?1/4/2012
  Q: I am 22 and live in Ohio. My source of income is through babysitting. I babysit for one child, in ...
  A: Katy, Thanks for your question. You report your earnings on Schedule C where you can deduct any ...
Bonus Repayment in Prior Year1/3/2012
  Q: I read your reply to a previous question concerning a bonus repayment for income received in a prior ...
  A: Greg, Thanks for your question and the compliment. Since the bonus was in 2009, you (presumably) ...
Gas lease1/3/2012
  Q: We have a hunting club with 22 members and own 55 +/- acres in PA. Our Club was established in 1960 ...
  A: Wolf, Thanks for your question. Yes, you can keep your 501 status but you must file a Form 990-T, ...
Gas Mileage Reimbursement1/2/2012
  Q: I read one of the answers to the question on gas mileage and it stated that you could not pay pastor ...
  A: Myra, If the church does not provide him a office, he can deduct expenses of a home office, but ...
tax return regarding a property with lease option12/29/2011
  Q: I purchased a property on October 2010 and fixed it, I tried to sell it but on August 2011 I got a ...
  A: Ari, Thanks for your question. You need to report the rental activity on Schedule E, including ...
Can A Self Employed Web Developer Deduct Rent of Apartment?12/29/2011
  Q: Over the last few years I never filed a form 8849 because I figured it would be hard to prove my ...
  A: Joel, Thanks for your question. I think you mean Form 8829. You can deduct the expenses of a home ...
gift tax12/28/2011
  Q: My brother would like to transfer a house he owns to me. The house is paid off. If we prepare the ...
  A: Kelly, Thanks for your question. Most likely there will be no tax consequences to either of you. ...
Missionary Taxes12/26/2011
  Q: I am a new missionary as of August of 2011 and I'm not sure how to go about filing my taxes. Before ...
  A: Laura, Thanks for your question. The organization paying you should issue you a W-2. However, ...
Sec 179 Write Off for Cars12/24/2011
  Q: I have been trying to get some of my questions answered related with Sec 179 deduction. I have a ...
  A: Ainee, Thanks for your question. You do not have to prorate the Sec 179 deduction, for this ...
Mid year Clergy tax status12/20/2011
  Q: Individual employed by church becomes licensed mid year. Are wages earned first half of year and ...
  A: Bruce, Thanks for your question. That is a good one. Never encountered that question. As I see ...
Deduction question12/19/2011
  Q: I'm a independent contractor. I drive for a driveaway company. A vehicle relocation/fleet management ...
  A: Adam, Thanks for your question. Commuting is not a deductible expense despite the circumstances. ...
IRA annunity12/17/2011
  Q: I have a traditional IRA in a fixed annuity. My husband who is 79 is my beneficiary. We are in a ...
  A: Mary, Thanks for your question. I presume that he would inherit from you. He would pay taxes on ...
Taxes on Inheritance12/17/2011
  Q: I have just received an initial distribution of $81,000 from my aunt's estate. The final (next) ...
  A: Don, Thanks for your question. There are no income taxes on inherited property. However, if the ...
Changing Withholdings for Bonus $12/16/2011
  Q: We are receiving bonus' next week, which will be included with our regular bi-weekly payroll check. ...
  A: Lisa, Thanks for your question. The number of withholding allowances you select will NOT appear on ...
Family gift12/15/2011
  Q: We received a personal check from an aunt for $10,000 to help with mortgage, credit cards, and our ...
  A: KH, Thanks for your question. The money is not taxable. You do not need to report it. However, ...
s corp12/15/2011
  Q: my father has an s corp. he retired from his full time job and setup a s corp a while back. he ...
  A: Will, Thanks for your question. Employee/shareholders should be paid a reasonable salary for work ...
Amended Tax Returns12/15/2011
  Q: Are there circumstances when you can file an amended return beyond the three year limit? If there ...
  A: Sara, I cannot imagine a valid reason for the IRS to tell you to file an amended return, changing ...
Amended Tax Returns12/14/2011
  Q: Are there circumstances when you can file an amended return beyond the three year limit? If there ...
  A: Sara, Thanks for your question. If you file an amended return for a year that is past the ...
K1 partnership12/14/2011
  Q: I read a response on this site regarding partnership shares that were given as a perk of employment ...
  A: Michelle, Thanks for your question. They don't necessarily have to buy you out, but some ...
A gift to a church12/14/2011
  Q: I am preparing to give my minerals and associated royalty income to my church in a gift deed. Will ...
  A: Clint, Thanks for your question. I am not qualified about the deed language. That is a legal ...
Sale of my right away12/13/2011
  Q: I am thinking of selling my right away , and was offered a good sum of money, if I sell will I have ...
  A: Doug, Thanks for your question. You will owe income taxes on the gain from the sale of your ...
W2 FOR PREACHERS12/12/2011
  Q: I KEEP RECORDS FOR SMALL CHURCH. DO I HAVE TO GIVE MY PASTOR A W2 FORM OR A 1099. THANK YOU SHARON
  A: Sharon, Thanks for your question. The law requires that you give your pastor a W-2, indicating in ...
tax refund12/12/2011
  Q: My boyfriend and I purchased a house together and received the tax credit (4000 each). We now want ...
  A: Tiffany, Thanks for your question. Refinancing is not a sale, so that is not an issue. However, ...
2009 Tax Issue12/11/2011
  Q: Name of Taxpayer: Mark A & Dee A David - December 31, 2009 The IRS states: We have disallowed: 1) ...
  A: Mark and Dee, Thanks for your question. The IRS does not have a Form 1081-T. I presume you mean ...
3 jobs12/10/2011
  Q: I held 3 jobs in 2011. Will filling my taxes be complicated next year? And will my former employers ...
  A: K, Thanks for your question. No more complicated than entering three W-2's instead of one. Your ...
Converting Personal Resident into Rental Property12/9/2011
  Q: John Stencil, Thank you for being there to answer questions. 1.)In 2010, Husband and wife move ...
  A: Neha, Thanks for your question. 1. You cannot take a partial exclusion on the sale of your primary ...
Foreign Currency Trading12/9/2011
  Q: A friend is handling my Currency trading account. We agreed on a $5,000 up front fee for him to make ...
  A: Richard, Thanks for your question. No, that is not deductible as a management fee as it is merely ...
MILITARY INVOLUNTARY SEP. PAY12/9/2011
  Q: Sir, Regarding your earlier response about Military Involuntary Separation pay, does the 10 to ...
  A: Ryan, Thanks for your question. No, it is not taxed. Taxes are withheld from it upon receipt, ...
income tax in two states12/8/2011
  Q: My wife and I have lived, worked and filed joint income tax returns in California. I am retired and ...
  A: Steve, Thanks for your question. If your work in Oregon is of unlimited duration or for a period ...
1099 independent contractor taxes12/7/2011
  Q: In New Mexico, what taxes will I have to pay as a 1099 independent contractor? Federal "self ...
  A: Michael, Thanks for your question. You will owe federal income taxes at your marginal rate, plus ...
IRA Contribution Question12/7/2011
  Q: Stancil, Thank you again for your help,(you previously offered some guidence on a question about ...
  A: That is correct as a non-working spouse you are entitled to a spousal IRA. If she is covered by a ...
Spousal Maintenance used as child support12/7/2011
  Q: If I receive spousal maintenance only, meaning no child support, and use the spousal maintenance as ...
  A: Karla, Thanks for your question. No. The critical factor is how the payments are characterized. ...
deduction for son living in home12/6/2011
  Q: My son was diagnosed with a brain tumor in February of 2011 and has lived with us since then due to ...
  A: Trudy, Thanks for your question. Sorry about your situation. If he has been certified by a ...
2011 BONUS DEPRECIATION FOR RESTAURANTS12/3/2011
  Q: For 2011, is the remodel of a fast food restaurant, including the exterior, eligible for 100% bonus ...
  A: Jeff, Thanks for your question. Qualified leasehold improvement property is 1. any improvement to ...
Loan12/2/2011
  Q: I have an scorp. My friend would like me to lend him money So that he can invest it. Can I make a ...
  A: The existence of the loan should be included on your year-end balance sheet if your corporation is ...
Loan12/2/2011
  Q: I have an scorp. My friend would like me to lend him money So that he can invest it. Can I make a ...
  A: Will, Thanks for your question. I am not sure what you mean by "writing it in your corp taxes," ...
Llc12/2/2011
  Q: my friend told me he has a single member llc. He put his own personal money and usd Llc to trade ...
  A: Setting up a S corp or an LLC will be of no benefit to you from a tax standpoint. If you are an LLC ...
Llc12/2/2011
  Q: my friend told me he has a single member llc. He put his own personal money and usd Llc to trade ...
  A: Rob, Thanks for your question. Theoretically possible, but practically not possible. Any corporate ...
Per Diem12/1/2011
  Q: We are a staffing company. Several of our clients request that the employees get a per diem. The ...
  A: Russ, Thanks for your question. You are using a non-accountable plan since they are paid a flat ...
personal miles11/30/2011
  Q: Executives at my firm get company vehicles. The company pays all lease, gas, maintenance and ...
  A: The FEI meetings are presumably to help him improve himself as a CFO (or whatever title he holds). ...
personal miles11/30/2011
  Q: Executives at my firm get company vehicles. The company pays all lease, gas, maintenance and ...
  A: James, Thanks for your question. Taking the car on his vacation is personal mileage, as there is ...
deducting bank service charges on Form 112011/28/2011
  Q: Stancil: My corporate checking account requires five checking debits per month to waive the ...
  A: Fred, Thanks for your question. You can deduct the bank service charges that are business related. ...
Construction worker travel expenses11/26/2011
  Q: My husband is a construction worker and works for a company that does contract work in gas plants. ...
  A: Nancy, Thanks for your question. For any job that is of indefinite duration or is expected to last ...
bad debts11/22/2011
  Q: i lend $10k to my brother's wife to help out with her buying a house. she was paying until one day ...
  A: Ervin, Thanks for your question. You may be able to take a deduction for the bad debt loss. You ...
Return for an estate11/22/2011
  Q: My mother-in-law died October 21, 2010 leaving an estate consisting of mutual funds, a condo in ...
  A: Mary, Thanks for your question. The income received after her death is known as income in respect ...
sale of S-corp shares11/21/2011
  Q: The Minority Owner (1/3 owner) of an S-corp wishes to buy out the Majority Owner. Buyer wishes to ...
  A: Suzanne, Thanks for your question. Absolutely not. Profits and losses for an S corporation must ...
Inheritance tax forms11/21/2011
  Q: You've helped answer some questions before and so I thought I'd seek your advice again. I'm a New ...
  A: Chris, Thanks for your question. Inherited property receives a stepped up basis to the fair market ...
roth ira11/21/2011
  Q: i have a question or two about roth ira. i am 80 yeards old and have a roth ira. i read online ...
  A: Robert, Thanks for your question. Your IRA contribution, Roth or Traditional is limited by your ...
Tax implications of SMLLC11/20/2011
  Q: I am interested in forming a Delaware single member LLC. I am a non-resident alien. The LLC is not ...
  A: But I stated that because is is a US based business and you are dealing with U. S. companies, the ...
Car Lease Benefits for a Buiness Owner??11/19/2011
  Q: I own a photography business that is an LLC and requires me to drive, but less than 12,000 miles per ...
  A: Todd, Thanks for your question. If the vehicle is used 100% for business you can deduct all costs ...
File a 1041?11/18/2011
  Q: My mother died 16 March 2011. My father continues to receive royalties and stock dividends (over ...
  A: Donna, Since he will be permitted to file a joint return for 2011, include the income on the 1040 ...
Gift for donation11/18/2011
  Q: I've got another donation question - if I give money to a non-profit org. and receive a "gift" in ...
  A: Kate, Thanks for your question. You get a deduction for the excess of the contribution over the ...
Fundraising for medical expenses11/18/2011
  Q: In follow-up to questions asked of you regarding medical expenses. We have a friend/employee who ...
  A: Laura, Thanks for your question. Unless you incorporate, you can use the social security number of ...
Taxes11/17/2011
  Q: I am 16 years old in the state of Kentucky. I have made over 10 Thousand this year from where I ...
  A: Dillon, Thanks for your question. Yes, you will have to file a federal return. Age does not ...
Per diem11/16/2011
  Q: John, On 4/5/11 you answered my question and it is know being scrutinized by KPMG who has to do our ...
  A: Diane, Thanks for your question. The information is contained in IRS Publication 17. I do not ...
tax (deed transfer11/15/2011
  Q: i have a question that maybe you can help me with.. my mom owns a house in NY its currently worth ...
  A: Danny, Thanks for your question. Big mistake unless the house is your primary residence. There ...
Tax implications of SMLLC11/15/2011
  Q: I am interested in forming a Delaware single member LLC. I am a non-resident alien. The LLC is not ...
  A: Summ, Thanks for your question. Since it will be a U. S. based business, the profits from the ...
adoption11/12/2011
  Q: I paid $1350 for adoption this year. Where do I claim that and how much of it can I claim? Thank ...
  A: Cindy, Thanks for your question. The costs of an adoption may be reported on Form 8839 "Qualified ...
Scheduel C11/12/2011
  Q: I already file a scheduel C because I'm self employeed. This year I paid for a book to be ...
  A: Cindy, Thanks for your question. You must file a separate Schedule C for each business you ...
Deductibility of Donation on Behalf of Another11/11/2011
  Q: When a person A makes a charitable donation on behalf of another person B, who gets the deduction on ...
  A: Kate, Thanks for your question. The person actually making the contribution gets the charitable ...
Child Tax Credit for Child in January11/11/2011
  Q: My child's due date is January 4. I thought that if you had one more child at the time you're filing ...
  A: Matt, Thanks for your question. The child tax credit, as with the dependency exemption is an all ...
Class Action Lawsuit Enhancement Fee11/8/2011
  Q: I received a letter stating that as the named person in a class action lawsuit, I will receive an ...
  A: Harv, Thanks for your question. Probably not, but it depends on the nature of the lawsuit and what ...
401k state,federal taxes11/8/2011
  Q: Fired from my job in nc after ten years-have lived in Florida for the past year or so-I anticipate ...
  A: Steven, Thanks for your question. If Florida is now your official residence full-time, you will ...
Tubal Ligation Reversal11/7/2011
  Q: I was checking to make sure that a Tubal Ligation Reversal procedure is deductible on a persons ...
  A: Amy, Thanks for your question. A tubal ligation reversal is tax deductible as a medical expense. ...
Taxes on Loan to Friend Interest Income11/7/2011
  Q: I have a friend that recently started a business in Foreign Currency Exchange Trading and is doing ...
  A: The only way for it to be treated as capital gains is for you to purchase an ownership interest in ...
form 1099M11/7/2011
  Q: I received an award as a member of a 16 year long class action lawsuit along with a form 1099M. From ...
  A: I was not aware you were referring to property damages. Compensatory damages are not taxable to the ...
Taxes on Loan to Friend Interest Income11/7/2011
  Q: I have a friend that recently started a business in Foreign Currency Exchange Trading and is doing ...
  A: Jason, Thanks for your question. You would simply report on Schedule B the amount of interest ...
Reponse to a CP 200011/6/2011
  Q: Mr. Stancil, I am in the process of helping a friend respond to a IRS CP 2000. The items in ...
  A: Billy, Thanks for your question. That sounds like a good plan of response. I would complete a ...
work in NC but company wants me to file tax form for VA11/6/2011
  Q: I recently started a job with a Virginia based company. The company has received a federal grant to ...
  A: Glenda, Thanks for your question. I presume that you reside in Virginia. If this is the case, you ...
Fundraiser Taxes11/6/2011
  Q: I actually have two questions on the subject of Fundraising Taxes and hope you can help me. My 54 ...
  A: Sherry, Thanks for your question. In order to be a 501(c)(3) organization, you must file a Form ...
109911/3/2011
  Q: I left my job in March and made some W-2 income 20k. My wife also works and will make W-2 income ...
  A: Glenn, Thanks for your question. You have been doing consulting, you do have an actual business ...
form 1099M11/3/2011
  Q: I received an award as a member of a 16 year long class action lawsuit along with a form 1099M. From ...
  A: Patrica, You would have to investigate the terms of the settlement or court decision to determine ...
Taxes and Retirement11/3/2011
  Q: John, I am trying to figure out what income we will have after retirement. My husband will have a ...
  A: Jane, Thanks for your question. It depends on the type of retirement plan you have, but most are ...
deductions for moving11/2/2011
  Q: We left our job in August in Washington state. We moved all of our belongings back to our home in ...
  A: Jayne, Thanks for your question. One of the requirements that must be met in order to deduct ...
Taxable event10/28/2011
  Q: A client's uncle, US Citizen, lives in Greece. He wants to wire $70k from Greece to the US. This ...
  A: Jeff, Thanks for your question. That is not taxable income as it is merely a transfer of funds, ...
Taxation on IRA withdrawals10/26/2011
  Q: Stancil, I read a question posed to you on this website in 2009 about withdrawing a lot of money ...
  A: That would be a workable strategy. Taking it out over a period of years would place you in a lower ...
First Time homebuyer credit10/25/2011
  Q: Stancil, I think you may have answered a similar question to this, but since my situation seems a ...
  A: Joseph, Thanks for your question. 1. You appear to be eligible for the credit, assuming you meet ...
auto repair expense pastoral allowance10/25/2011
  Q: We need to know if a pastor can pay for repairs on his car from the church checking account? And if ...
  A: Alice, Thanks for your question. First, you state that the pastor gets a "gas allowance." If it is ...
First Time Homebuyer Tax Credit10/24/2011
  Q: My wife and I purchased a home in May 2008 using the $7500 First time homebuyer tax credit. ...
  A: Kurtis, Thanks for your question. Because you had a loss on the sale, you do not have to repay the ...
Taxation on IRA withdrawals10/23/2011
  Q: Stancil, I read a question posed to you on this website in 2009 about withdrawing a lot of money ...
  A: Cecelia, Thanks for our question. I presume that you are over 59 1/2 years of age and would not be ...
Business Credit Carryover10/21/2011
  Q: In years 2003-2007 we forgot to file a certain business credit each year. It did not impact our tax, ...
  A: Jim, Thanks for your question. The credit would be on line 5g. However, it will probably not be ...
S Corp purchase of house10/20/2011
  Q: I am a 48% partner of an S Corp in Texas. We are considering accepting a 5 year contract for a job ...
  A: Kimberley, Thanks for your question. Since the contract is for more than a year, your partner's ...
Who files Sch C10/18/2011
  Q: Bob wants to start a business but cannot meet the licensing financial requirements, so the legal ...
  A: Greg, Thanks for your question. You have a very perilous legal situation on your hands as you have ...
Taxes10/18/2011
  Q: As an international graduate on an OPT can i work as an independent contractor? Also, how would I ...
  A: You would have to acquire a business license depending on the requirements in the state/city/county ...
Taxes10/17/2011
  Q: As an international graduate on an OPT can i work as an independent contractor? Also, how would I ...
  A: Ayesha, Thanks for your question. Yes you can be an independent contractor. As an independent ...
Gambling Losses10/17/2011
  Q: I have accrued a large sum of gambling losses this year (approaching 8k). I have never claimed ...
  A: Jason, Thanks for your question. You must report gambling winnings and deduct losses in the year ...
Child income10/16/2011
  Q: A client of mine's daughter is making money doing acting and modeling and it's only increasing. ...
  A: 1. Yes. 2. That could be done. 3. Yes a salary would have to be taken, and they may be some issues ...
Child income10/16/2011
  Q: A client of mine's daughter is making money doing acting and modeling and it's only increasing. ...
  A: Jeff, Thanks for your question. You could set up an LLC or corporation, but I don't see any tax ...
Non-Resident State Filing10/15/2011
  Q: NY resident, two incomes, both 1099 (real estate agent/opera singer), each on seperate Schedule C, ...
  A: Tom, Thanks for your question. You should not be subject to MA tax on your entire income, only the ...
switch from W-2 to 109910/15/2011
  Q: I am currently working for XYZ company as a contractor through a staffing agency. That means I am ...
  A: Mindy, Tread carefully here. The issue is not quite like the staffing company stated, but they ...
Gifting taxation in regards to ineritance10/14/2011
  Q: I’m a New Zealand citizen with US residency currently living in Orange County, CA. Prior to my ...
  A: Chris, Thanks for your question. As a resident alien you are subject to the same tax rules as a ...
1120 Amendment10/12/2011
  Q: I just discovered there are typos on the Sch. L (Balance sheet) from 1120S. These typos don't affect ...
  A: Rich, Thanks for our question. That can go both ways. On the one hand, you might say "no harm, no ...
Retirement Account Transfer10/12/2011
  Q: A few years ago, I transferred from one employer to another, and though both of them do have ...
  A: Tax Stumped, You should file an amended return, reporting the withdrawal as a rollover, not subject ...
501(c)3 gifts10/12/2011
  Q: Our non-profit received a trust. Included was a vehicle. I am the founder of the company, and an ...
  A: Greg, If the company gives you the vehicle it would have to be permitted by the terms of the trust. ...
Roth IRA excess contribution 1099-r10/8/2011
  Q: After realizing I had made an excess contribution to my Roth IRA in 2010, I got an extension for my ...
  A: Drew, Thanks for your question. You can file a 1040X amended return. However you should not file ...
long term disabilty10/8/2011
  Q: my wife is going on long term disability, which is employee provided thru a third party insurance ...
  A: Zach, Thanks for your question. You state that it was employee provided through a third party ...
Church renting rooms10/4/2011
  Q: Can you please tell me if the monthly income received by a nonprofit church from renting out rooms ...
  A: Becki, Thanks for your question. No, the renting of rooms is not considered unrelated taxable ...
Divorce Transfer of Property to non-U.S. citizen10/4/2011
  Q: I am separating from my wife who is solely a Canadian citizen. I am a dual citizen, U.S. and ...
  A: D, Thanks for your question. Transfer of property as part of a divorce settlement has no tax ...
MILITARY INVOLUNTARY SEP. PAY10/4/2011
  Q: I MAY BE FACING INVOLUNTARY SEPARATION DUE TO DOWNSIZING ALONG WITH MANY OF MY TROOPS IN THE NEAR ...
  A: Christopher, Thanks for your question. Involuntary separation pay is taxable as ordinary income, ...
LLC and Net Operating Loss10/3/2011
  Q: I am a sole owner of an LLC whose area of business is construction management as well as residential ...
  A: Joe, Thanks for your question. Yes, you can deduct the loss against other income, either from the ...
Overseas exemption10/2/2011
  Q: John, I have been working in Afghanistan since June of 2010. I postponed my 2010 return until July ...
  A: John, Thanks for your question. It is not really a 12-month exemption. If you are physically ...
corporate tax10/2/2011
  Q: in 2005 I opened an LLC with a partner. It was going to be an Internet based business, however we ...
  A: Mike, Thanks for your question. There is no minimum tax that corporations must pay. If they do ...
IRA Rollover due to disability9/30/2011
  Q: I am trying to rollover my 401(k) from a well-known mutual fund/insurance company to my individual ...
  A: Bill, Thanks for your question. Normally a 401(k) is rolled over into an IRA upon termination of ...
per diem taxes9/30/2011
  Q: My employer recently changed our per diem rates. We were receiving the federal guideline amount but ...
  A: Donald, As far as the withholding on the per diem amount, they are correct that a per diem is ...
capital gain tax9/30/2011
  Q: Ten years ago my parents deeded their house to me. Now they are both deceased and I am going to ...
  A: Richard, Thanks for your question. Most likely you will owe taxes at the capital gain rate. You ...
Inherited IRA9/29/2011
  Q: My 3 brothers and I recently inherited an IRA from our mother. She was almost 85 and the IRA value ...
  A: Mark, Thanks for your question. There must be an RMD taken in the year of death. If it was not ...
Multi-State Residency9/29/2011
  Q: In 2010, I worked in NY City for nine months and rented an apartment there. However, my wife stay ...
  A: Ralph, Thanks for your question. Since your work period in NY was less than a year and not a ...
Capital Gains Tax/Condemnation Proceeding9/29/2011
  Q: Our weekend home/farm is under threat of condemnation for a reservoir.We purchased a replacement ...
  A: Robert, The other property owner is partly right. There is no $600,000 exclusion. The only ...
Capital Gains Tax/Condemnation Proceeding9/28/2011
  Q: Our weekend home/farm is under threat of condemnation for a reservoir.We purchased a replacement ...
  A: Robert, Government gets us coming and going, don't they. If you do not qualify under Sec 1033, ...
income tax9/28/2011
  Q: I'm a veterinary nurse and I work every other week on a perminant contract. I'm concidering locum ...
  A: Sarah, Thanks for your question. Your employer would not learn of the additional work through ...
K1 Partnership Agreements9/26/2011
  Q: My husband worked for a couple of few years ago that as a perk gave him 5% ownership of the ...
  A: Darla, Thanks for your question. You don't state if the business is a partnership or a ...
Non-Profit donations9/26/2011
  Q: We run a 501(c)3 corp. We have a website where concerned neighbors can post stories about friends ...
  A: The issue is larger than that. Obviously, you have safeguards in place to prevent someone from ...
gold sold that was originally a gift9/25/2011
  Q: I sold two gold coins recently that were sold as a gift several years ago. Since I don't know what ...
  A: Amanda, Thanks for your question. Basically you have two choices. You can make a defensible ...
LLC State income Tax9/24/2011
  Q: I will be setting up single person LLC for a financial trading company operating in 1056 contracts. ...
  A: Kevin, Thanks for your question. Most likely you would not have to set up an new LLC in NY, ...
Non-Profit donations9/22/2011
  Q: We run a 501(c)3 corp. We have a website where concerned neighbors can post stories about friends ...
  A: Bruce, Thanks for your question. No, you do not need to issue a 1099 to the recipient, it is not ...
Active Military and spouse self employed (S Corp)9/21/2011
  Q: My wife opened S corp and would like to know being Interpreter (Work from Home) what can be expenses ...
  A: Kris, Thanks for your question. You can deduct an reasonable and necessary expenses incurred in ...
S corp to LLC9/21/2011
  Q: What do I need to do if I wanna change my S corp to LLC? Do I keep my same EIN?
  A: Rich, Thanks for your question. An LLC and a corporation are two separate, distinct entities. You ...
tax exempt 501 (c) (12) organization9/21/2011
  Q: (1) If a small PA water association, a 501(c)(12) organization loses it's tax exemption, would it ...
  A: Peggy, The organization would file an 1120 unless it were a corporation operating on a cooperative ...
1099 Reporting of Expenses9/21/2011
  Q: If a business invoices a company and they are 1099 withholding and they have expenses and hours ...
  A: Rachel, Thanks for your question. The rules do not directly address this issue. Obviously, from a ...
Quick W-4 Question9/20/2011
  Q: I am a recent college grad (as of May), and I just started my new full-time job for which I'm ...
  A: K, Thanks for your question. Based on what you have said, your parents should claim you as a ...
ITIN for employment9/20/2011
  Q: A client asked me that she would like to hire a person who only has an ITIN and not a SSN. I told ...
  A: Jeff, Thanks for your question. An ITIN is an individual taxpayer identification number that is ...
401k Hardship Withdrawl for Medical9/20/2011
  Q: John, I really need you expertise. My wife (6th grade teacher) and I (Boeing Employee) are trying ...
  A: You are not taxed twice. The former employer will withhold the funds, but they will be shown on the ...
Safe Planning9/17/2011
  Q: My mother is 82 years old and has been hospitalized twice within the past 6 months for health ...
  A: Debra, Thanks for your question. The income on the CD's will be taxable to the social security ...
Taxes for missionaries9/16/2011
  Q: I sent a note to the IRS but didn't quite understand. I have been a missionary in the middle east ...
  A: Johnny, Thanks for your question. You need to be making estimate payments of your tax liability ...
pastor appreciation event9/15/2011
  Q: Are we allowed to pay expenses for the event from church funds? (ie banners, meat for the meal, ...
  A: Sue, Thanks for your question. From a legal/tax standpoint you can pay the expenses from church ...
Change Ownership in a C-corp9/15/2011
  Q: My question involves business law in California. We changed ownership in 2011, but not update yet. ...
  A: Maggie, Thanks for your question. A change in ownership in a C (or any other) corporation is ...
Form 86069/13/2011
  Q: Mr. Stancil Today I was looking at Form 8606 in regard to Non Deductible IRA contributions. I did ...
  A: Ron, Thanks for your question. Yes, you need file a Form 8606 every year, for the total of all ...
Taxes on home after fathers death9/13/2011
  Q: More than 10 years ago, my parents put all 5 children on the title to their home and took their ...
  A: Marcy, Thanks for your question. First, to clear up a misconception. There is really no such ...
401k Hardship Withdrawl for Medical9/9/2011
  Q: John, I really need you expertise. My wife (6th grade teacher) and I (Boeing Employee) are trying ...
  A: John, Thanks for your question. The rule is that you can exclude from penalty any withdrawal to ...
16 yrs old and first job + soc. sec & "gift"9/8/2011
  Q: My son worked his first summer and earned approx. $2500.00. His grandma gave him a "gift" of ...
  A: Gina, Thanks for your question. The gift is not taxable income. Due to his income level, the ...
tax9/8/2011
  Q: 1. I live in Maryland and drive a 2005 Ford Taurus and do pizza delivery for Dominos pizza. If I ...
  A: Al, Thanks for your question. You can deduct mileage at the IRS rate, currently 55 cents per mile ...
Biz Accounts and Self-Employment9/6/2011
  Q: I recently gave my last two years of 1040 returns to a loan officer at State Farm bank to refinance ...
  A: Ken, Thanks for your question. One of the items that indicates the legitimacy of your business to ...
Living Expenses Deductible?9/5/2011
  Q: My job is 65 miles from home and I work long hours. If I take an apartment near my job can I deduct ...
  A: Brian, Thanks for your question. No expenses associated with your commute or your living in the ...
Tax consequences of gifting a gift9/2/2011
  Q: I received an inheritance of twenty gold coins in 2008 worth about $20,000 in those days. I assume ...
  A: Andy, Thanks for your question. A gift is valued a current fair market value for gift tax ...
Singing Groups or (Individuals)9/1/2011
  Q: when a group or soloist is invited to the church to sing for the congregation during a service and ...
  A: Michael, Thanks for your question. It has no effect on the church - even if the church were ...
loss on sale8/31/2011
  Q: I'm considering a job opportunity with my current employer. They would pay all my relocation ...
  A: Scott, Thanks for your question. The payment for your loss on sale is taxable. The loss you ...
Electronics8/31/2011
  Q: I have been given the opportunity to go back to school to get my Bachelors Degree. Since it is an ...
  A: Brett, Thanks for your question. If you are eligible for the American Opportunity Tax Credit, the ...
Medical Expenses8/29/2011
  Q: John I am interested in the possibility of claiming a Moving and Storage Expenses as a Medical ...
  A: Wayne, Thanks for your question. Unfortunately, neither of those items qualifies as a medical ...
Delivery Driver8/28/2011
  Q: I am a delivery driver for a sandwich shop in Michigan and I was wondering if I will be able to ...
  A: Zane, Thanks for your question. You can deduct you mileage on Schedule A as a miscellaneous ...
tax question8/27/2011
  Q: my question is this. my wife collects social security and i collect social security and a non ...
  A: Anthony, Thanks for your question. You probably will not have to file. Your SS becomes taxable ...
Income Tax8/27/2011
  Q: My question is.. Can my kids father take me to court to get the right to claim the kids on his ...
  A: Kisha, Thanks for your question. However, the question is not can he take you to court, the ...
Gift Taxes8/26/2011
  Q: My mother recently transferred a mutual fund she owned into my name. It was worth over $13,000. ...
  A: It is not a matter of refiling her 1040. The 709 is a gift tax return, it is totally unrelated to ...
Gift Taxes8/26/2011
  Q: My mother recently transferred a mutual fund she owned into my name. It was worth over $13,000. ...
  A: Vince, Thanks for your question. First, it does not appear that she will owe any taxes on the gift ...
Taking pension money in one lump sum8/25/2011
  Q: I am 4 months shy of 71 years of age. I retired a couple of weeks ago. If I choose to take out my ...
  A: Arunchalam, Thanks for your question. You would pay tax on the entire withdrawal, assuming that ...
Gift of Church Parsonage to Pastor8/25/2011
  Q: What would be the best way for a church to give the pastor the mortgage free parsonage in which he ...
  A: Daniel, Thanks for your question. Regardless of how you convey the parsonage to the pastor, it ...
Gainfully Employed Clarification8/24/2011
  Q: I currently work in colorado for the next 9 months. I get colorado state tax taken out of my pay ...
  A: Patrick, Thanks for your question. You are gainfully employed in CO and should file as a ...
IRA DISTRIBUTIONS8/22/2011
  Q: Mr. Stancil Lets take a scenario and allow me to ask a few questions please. When I turn age 72 ...
  A: The money you would be putting into a Roth would be a new contribution, not a rollover. Therefore ...
IRA DISTRIBUTIONS8/22/2011
  Q: Mr. Stancil Lets take a scenario and allow me to ask a few questions please. When I turn age 72 ...
  A: Ron, Thanks for your question. She would take the distributions over her remaining life expectancy ...
ira8/21/2011
  Q: I know that I have to pay a 20% penalty for cashing in my IRA but my question is: does this affect ...
  A: Carol, Thanks for your question. You have been seriously misinformed. When you take an early ...
Residual Scholarship8/20/2011
  Q: I'm a college freshman who recently just received several outside scholarships from various ...
  A: Sabrie, Thanks for your question. Any amounts you receive in excess of tuition, books, and fees ...
employer issued 1099-MISC for tool allowance8/19/2011
  Q: The company my husband worked for issued him a W-2 for all of his income except $1,000.00. This was ...
  A: Kristy, Thanks for your question. It should have been included on his W-2 as taxable income, with ...
major 1099 descrepancy8/19/2011
  Q: I work a cash job. I have been paid in cash the entire year , not one check , just straight cash . ...
  A: Brent, Thanks for your question. First of all, it sounds as if you were in reality an employee who ...
income tax8/17/2011
  Q: i am 40 years old and a disable person taking social security benefits early due to my disability. i ...
  A: Joan, Thanks for your question. You appear to be eligible for dependency exemptions for you ...
Gift tax8/16/2011
  Q: My Mother transferred some stock to me and my brother earlier this year. The stock value on the day ...
  A: Vince, When someone makes a gift in excess of the annual exclusion amount (currently $13,000 per ...
Can a Non-profit school make a donation to repair the roof of the church that they rent from?8/15/2011
  Q: We have a non-profit school 501-C Independent Corporation that rents and is housed in our church. ...
  A: Teach, Thanks for your question. From a tax standpoint, there is no issue with the school helping ...
Can a Non-profit school make a donation to repair the roof of the church that they rent from?8/15/2011
  Q: We have a Pre-K Non profit 501-C school that rents and is housed in our church. They have asked us ...
  A: Jerry, Thanks for your question. From a tax standpoint, there is no issue with the school helping ...
Does a bad investment in an LLC qualify as a long term capital loss?8/15/2011
  Q: Three years ago we made a 62K investment in a multiple member LLC formed to rent drilling rigs to ...
  A: Douglas, In order for the loss to offset a capital gain, it must be a capital loss. Capital losses ...
Estate vs Inheritance tax?8/14/2011
  Q: at the federal level is there a distinction between estate and inheritance tax? does the exemption ...
  A: Peter, Thanks for your question. There is no federal inheritance tax. Those are levied strictly ...
Decease person8/12/2011
  Q: one of my family member who is window die last year. While going through his belonging, I found a ...
  A: John, Thanks for our question. No, the IRS will not forget about it. The taxes must come from the ...
state to state taxes8/11/2011
  Q: I am a permanent resident who has been paying taxes in NY, however I recently got married and move ...
  A: Krystale, Thanks for your question. Your residency is where you are living. It becomes your legal ...
Sell Shares8/10/2011
  Q: My husband owns 19.5% of an S corporation. He is looking to retire. His shares are worth ...
  A: Kay, Thanks for your question. You would pay taxes on the gain from the sale. Gain is determined ...
$8000 1st Time Home Buyer Credit-Repay8/9/2011
  Q: Mr. Stancil, My boyfriend and I bought a home in 12/09. We are both on the title/loan. He ...
  A: Lisa, Thanks for your question. Physically living there is not enough. However, you may be mixing ...
Personal Service Agreement income/taxes8/8/2011
  Q: I recently read a response of yours wherein you mentioned that income from a PSA should be reported ...
  A: Marc, Thanks for your question. The income should be divided based upon who earns it and to whom ...
LTD & taxes8/7/2011
  Q: I have LTD insurance which I have paid into and I know it is a non-taxable income. My question is ...
  A: Norman, Thanks for your question. The W-2 will not get you any type of refund unless there was ...
Tax Implications of Donating Land to a Church8/4/2011
  Q: Here's some background – I am looking to purchase a piece of property that is about 1.1 acres and ...
  A: Kristin, Thanks for your question. I can't give you a definitive answer because much of the answer ...
International inheretance8/3/2011
  Q: I’m a New Zealand citizen with US residency currently living in Orange County, CA. I will be ...
  A: Maybe, maybe not. If the trust pays tax on the gains from selling the property, you do not have to ...
tax treatment for ministers/missionaries8/3/2011
  Q: I am the Treasurer for a church and we have a new pastor who is also a missionary. Rather than get ...
  A: That is correct. As an ordained minister he is considered self-employed for social security and ...
Dependent Care FSA8/3/2011
  Q: We own a small ranch and fill out a Schedule F for tax purposes, which has shown a net loss for the ...
  A: Shelia, There is a difference in a dependent health care FSA and a dependent care FSA. With a ...
International inheretance8/3/2011
  Q: I’m a New Zealand citizen with US residency currently living in Orange County, CA. I will be ...
  A: Chris, Thanks for your question. Inheritances are not subject to income tax, so you have nothing ...
tax treatment for ministers/missionaries8/3/2011
  Q: I am the Treasurer for a church and we have a new pastor who is also a missionary. Rather than get ...
  A: Robert, Thanks for your question. Since you have hired him as your pastor and not contracted with ...
Per Diem and "Tax Home"8/2/2011
  Q: My company pays per diem when I am assigned away from the home / corporate office on a jobsite ...
  A: Nathaniel, Yes, if you do not have a tax home, you are considered an itinerant. As you have ...
401K to ira8/1/2011
  Q: I have a new employer. I have a 401k with my old employer. My new employer says that I can have ...
  A: Barbara, Thanks for your question. If you do a direct rollover from the 401(k) to an IRA (or to ...
Investment property, never rented8/1/2011
  Q: In two separate transactions, I planned to purchase a mobile home and land for it, to be held as ...
  A: Larry, Thanks for your question. Sure. Since it was never used for personal reasons and your ...
stepchild on taxes7/31/2011
  Q: Can a person claim the child tax deductions/credits for stepchildren on there taxes? Or only the ...
  A: Jim, Thanks for your question. If you meet the requirements to take a dependency exemption, you ...
Gift deed tax implications7/31/2011
  Q: I have 2 real estate properties and I want to change title or give them to my father. At the same ...
  A: JA, Thanks for your question. Probably no tax implications. If the amount of the gift is more ...
IRS Transportation Deduction7/31/2011
  Q: I volunteer to do lawn work at my Church and at a Monastery. I receive no compensation for the work. ...
  A: Gary, Thanks for your question. That is deductible on Schedule A as a charitable contribution. ...
write offs and school7/30/2011
  Q: I apologize if this is the wrong place to ask, I am quite new to this so please bare with me. I ...
  A: Matt, Those items are considered personal use items unless actually used in a business in which you ...
Taxes on Stocks held by an LLC7/27/2011
  Q: I am interested in forming an LLC in a business favorable state (lets use Delaware) to use as a ...
  A: Andrew, Thanks for your question. You are somewhat mistaken about the role of an LLC. An LLC is a ...
401k tax7/27/2011
  Q: I am 46 and completely disabled. I have only 1270.00 dollars in my 401k and am obviously not ...
  A: Jay, If this is your first house, you can exclude up to $10,000 (one time only) for the purchase of ...
NOL7/26/2011
  Q: Does the IRS allow to have a NOL for 2010 and 2008 or can only one year be selected for a NOL? I ...
  A: This additional detail caused me to realize that you have missed the boat. The five-year carryback ...
NOL7/26/2011
  Q: Does the IRS allow to have a NOL for 2010 and 2008 or can only one year be selected for a NOL? I ...
  A: Charlie, Thanks for your question. If you are eligible for the special five-year carryback, you ...
Taxes on Company Issued Stock7/26/2011
  Q: I work at a small company that has been operating "in the red" for the past several years. The ...
  A: Jen, Thanks for your question. Just because a company operates in the red does not mean the stock ...
housing stipend7/25/2011
  Q: I work for a home health agency with the understanding of an area approximate 69 miles out one way. ...
  A: Kim, Thanks for your question. You could pursue a "housing stipend" if you wish, but it would be ...
real estate sale capital gain taxes7/25/2011
  Q: In early 2007 my father added me to the deed of land that he had purchased in the 1980's for 25K. ...
  A: Lynne, Thanks for your question. You will pay taxes on the gain over your basis. Since 1/2 the ...
Capital Gains Tax7/24/2011
  Q: Greetings, I am a long term resident of Florida 35+ years and about to enter into a transaction to ...
  A: Joseph, Thanks for your question. Since the business is Georgia-based you will be subject to tax ...
Fiance owes student loans7/23/2011
  Q: My fiance owes student loans, the IRS and state have been withholding his refund. I'm putting off ...
  A: Amber, Thanks for your question. Head of household is available only if you are not married. Your ...
SUB S DISTIBUTIONS7/22/2011
  Q: What is tax status of a distribution of current year earnings by a Sub S corporation that has ...
  A: Henry, Thanks for your question. If the S Corp. makes a distribution when AAA is negative, stock ...
Pre Tax Commuter benefits7/21/2011
  Q: I have been participating in my companies pre tax parking program and contributing the maximum ...
  A: Michelle, Thanks for your question. I am unaware of any IRS restriction on receiving the commuter ...
cost basis7/21/2011
  Q: i have a quick question on regards to s corp. what does it mean when accountant use this term "your ...
  A: 1. You are confusing a stock redemption with a distribution. Depending on how it was handled, it ...
cost basis7/21/2011
  Q: i have a quick question on regards to s corp. what does it mean when accountant use this term "your ...
  A: 1. You don't have to have a physical certificate prepared, just a memo or book entry in the ...
cost basis7/21/2011
  Q: i have a quick question on regards to s corp. what does it mean when accountant use this term "your ...
  A: William, Thanks for your question. First, if you have a corporation you must issue stock. ...
EMPLOYER PAYING EMPLOYEE STUDENT LOANS7/20/2011
  Q: Regarding the question from Joe and your response: If the employee has already gradulated and wants ...
  A: Thomas, Thanks for your question. I do not recall the details of the question you cite. I've ...
Disability Payments7/19/2011
  Q: I was paid long term disability insurance payments from an insurance co in 2009. Also, in 2009, I ...
  A: Karen, Thanks for your question. If the $24K you repaid was repaid in 2009, your 1099 should ...
how to show IRS "capital-loss-carry-forward" in a tax filing7/18/2011
  Q: single tax filer in tax year of 2009 has a $5000 capital loss carrying forward to "future years". ...
  A: Andrew, Thanks for your question. Since it occurred in 2009, you must apply it to any gains in ...
Overseas military contractor7/18/2011
  Q: I have been contracting overseas off and on since 2005. I have not filed taxes for several years. ...
  A: Pete, Thanks for your question. It would appear that you should have filed taxes for each year ...
what number can this person write down on schedule d, line 21?7/18/2011
  Q: person: single tax year: 2009 schedule D, line 16: -$8000 all other income: $100 1.what number ...
  A: I can't speak for what other people do, I gave you the law. If others are deferring it, they are ...
property7/18/2011
  Q: i am near retirement and i have my own s corp. about 7 years ago i bought property under s corp ...
  A: The corporation pays taxes on the gain, $115 - 80 = 35. You do not pay any taxes on the ...
property7/18/2011
  Q: i am near retirement and i have my own s corp. about 7 years ago i bought property under s corp ...
  A: Roberts, Thanks for your question. You can transfer property to yourself. It would be treated as ...
ira/gift7/18/2011
  Q: i have a traditional ira and i would like to know if i can give stocks that are hold in my ira to a ...
  A: John,m Thanks for your question. No, in order to give the stock, you would have to withdraw them ...
what number can this person write down on schedule d, line 21?7/18/2011
  Q: person: single tax year: 2009 schedule D, line 16: -$8000 all other income: $100 1.what number ...
  A: You must take the maximum LTCL each year, so you must show a $3,000 loss on line 21 Schedule D and ...
s corp and assets7/17/2011
  Q: i am the owner of an s corp based on NJ. i will be expanding to florida and will be buying property. ...
  A: Ervin, In most cases, that would be a taxable transfer. However, if the provisions of Sec. 351 ...
s corp and assets7/17/2011
  Q: i am the owner of an s corp based on NJ. i will be expanding to florida and will be buying property. ...
  A: No. Your book value (basis) is cost minus depreciation allowed or allowable. To use your example, ...
s corp and assets7/17/2011
  Q: i am the owner of an s corp based on NJ. i will be expanding to florida and will be buying property. ...
  A: Ervin, Thanks for your question. That is not correct. Any transfer of property from a corporation ...
offestting 1099a income with carry over capital loss7/17/2011
  Q: we are working with a lender on a deed in lieu. the property in question was our principle ...
  A: Meg, Thanks for your question. Your capital losses cannot be used to offset any 1099-A amounts as ...
ira7/16/2011
  Q: i have a traditional IRA. the money in the ira are invested in stocks. i started with $87k but ...
  A: It is difficult for me to say without a complete evaluation of your tax/financial situation. Even ...
Commisions7/15/2011
  Q: I am in sales, recently i received my second quarter commission. My employer put my commission check ...
  A: Eli, Partially correct. If the commission was paid as a separate check, it would be classified as ...
Business deduction7/10/2011
  Q: As an employee of a company, if I live in Texas and fly to Connecticut weekly to my office, can I ...
  A: Frank, Thanks for your question. Unfortunately not. Since your work location is in Connecticut, ...
Disability Payments7/7/2011
  Q: I was permanently disabled in 2008. In 2009, I applied and received Social Security Disability. The ...
  A: Karen, I answered this question for you earlier today. In case you did not get it for some reason, ...
Disability Payments7/7/2011
  Q: I was permanently disabled in 2008. In 2009, I applied and received Social Security Disability. The ...
  A: Karen, Thanks for your question. Depending on the amount, there are a couple of ways this is ...
State Income Taxes - Live in NC, Work in NC for VA based Company7/4/2011
  Q: I live in NC and will be working as a temp on assignment in NC for a VA based company. To which ...
  A: Amanda, Thanks for your question. Since you are not a resident of VA and not working in VA, you ...
Supply Clergy Honorarium7/4/2011
  Q: We had no minister for our congregation and cannot afford a full-tme one. A retired minister, ...
  A: Milton, Thanks for your question. Depending on the terms of the relationship, you may need to ...
Investment w/o ROI7/1/2011
  Q: I'm looking to fund a particular start-up and although I'm not overly concerned about my return on ...
  A: Sultan, Thanks for your question. You are not taxed on an investment - that is not income. You ...
Property Tax6/29/2011
  Q: If two people are on the deed for a single family dwelling, can one of them pay all of the property ...
  A: Forrest, Thanks for your question. There are two requirements to take the property tax deduction - ...
1099 C / Bankruptcy6/29/2011
  Q: I have a question concerning income tax and cancellation of debt through bankruptcy chapter 7. The ...
  A: Miki, Thanks for your question. A Chapter 7 bankruptcy does not exclude cancellation of ...
abandon S corporation stock6/29/2011
  Q: I am the owner of a small s-corporation. The corporation had 3 members and 1 of them abandoned their ...
  A: Aaron, Technically, you can't abandon the stock. But how can you prevent someone from walking away ...
abandon S corporation stock6/29/2011
  Q: I am the owner of a small s-corporation. The corporation had 3 members and 1 of them abandoned their ...
  A: Aaron, Thanks for your question. Since you did not distribute any assets when the stock was ...
sale of non primary residence6/28/2011
  Q: I am on the title of my parents house (my name was on the mortgage as well but it was paid off in ...
  A: Anna, Thanks for your question. Since you are on the title, you are a 1/3 owner. All the other ...
"Prize taxes"6/27/2011
  Q: I've recently entered into a prize sweepstakes for a chance to win a computer system with an ARV ...
  A: Jess, Thanks for your question. There is no separate tax on prize winnings, but a prize of any ...
dependent6/27/2011
  Q: welcome back from vacation. i hope you enjoy yourself. i have a quick question. my daugther is 24 ...
  A: Beto, Thanks for your question. The law provides that you cannot take a dependency exemption for ...
Deducting Mileage Expense6/7/2011
  Q: I am employed as an outside sales rep in Wisconsin and the Company I work for is in Michigan. All ...
  A: Steve, Thanks for your question. Yes, you can take the standard mileage deduction. However, it is ...
Guardianship and tax deduction6/6/2011
  Q: I am my aged father's legal guardian. Am I able to claim expenses from my own pocket, such as legal ...
  A: Pamela, Thanks for your question. If you claim him as a dependent, you can deduct medical expenses ...
transfer 1099-C due to divorce6/5/2011
  Q: I have an unusual situation. I have been divorced for 5 years. I took title of the home so only ...
  A: Christina, Thanks for your question. The 1099-C would be issued in his name because he is the only ...
Capital gain on a trust6/3/2011
  Q: My daughter has a trust from my mother-in-law who passed away 2 years ago. My husband is the ...
  A: Maggie, Thanks for your question. If there is a capital gain, or any other income, taxes must be ...
Tax exempt6/2/2011
  Q: My husband is a contractor in Afghanistan. He is on a 60/30 rotation. He is in Afghanistan for 60 ...
  A: Heidi, Thanks for your question. I presume you are referring to the foreign earned income ...
disability pension taxability5/31/2011
  Q: I received a disability pension about 20 years ago from Colorado PERA (Public Employees Retirement ...
  A: Bob, Thanks for your question. The law has not changed, so if it was not taxable earlier, it is ...
Tax on Reimbursed Real Estate Closing Costs5/31/2011
  Q: I am selling my home for about $17,000 less than I owe for it (not including closing costs). I am ...
  A: Pedro, Thanks for your question. No, I am afraid not. The loss on a sale of a personal residence ...
tax filing help5/31/2011
  Q: Sir, thank you for taking my question, i am a missionary working in South America (Venezuela)i am ...
  A: Robert, Thanks for your question. You should file a 1040 for each applicable year, using Form 2555 ...
gifting money5/30/2011
  Q: I would like to gift money to my son and to 2 of his sons (my grandsons, ages 22 and 24). They are ...
  A: Bob, Thanks for your question. You can give such a gift to your grandsons. However, for it to be ...
International Taxes5/30/2011
  Q: I have an international business tax question. I own a USA business and sometimes outsource to China ...
  A: Phillip, Thanks for your question. By "claiming taxes on services that are out-sourced" I assume ...
property sale /income tax?5/28/2011
  Q: Stancil, My father got a notice from the Franchise Tax Board (CA) stating he may need to file a tax ...
  A: Cynthia, Thanks for your question. Assuming he is a CA resident, he is subject to tax on all his ...
taxes5/28/2011
  Q: Right now I live in Maine. We are trying to sell and move to Florida. This is NOT our first home. I ...
  A: Joyce, Thanks for your question. You should have a copy of the records of your home purchase. If ...
Early withdrawal from 401K5/28/2011
  Q: I have been told that I can take money from my 401K and if it is returned within 60 days I will not ...
  A: David, Thanks for your question. Borrowing from your 401(k) can be a risky situation. Different ...
IRS Tax liability and my deceased brother5/28/2011
  Q: My brother recently passed away and his family has come to the knowledge that he owed a very large ...
  A: Ideally, you would have a tax attorney who can handle the entire estate including dealing with the ...
IRS Tax liability and my deceased brother5/27/2011
  Q: My brother recently passed away and his family has come to the knowledge that he owed a very large ...
  A: Christy, Thanks for your question. Since your brother had already negotiated a settlement, I doubt ...
telecommuting FL to MA5/26/2011
  Q: My family will be relocating to Florida this summer from MA. I have read through many of the ...
  A: Tina, Thanks for your question. You would not be subject to MA income tax, as you have no physical ...
Bldg not in use5/25/2011
  Q: Commercial building is no longer in use, basically it's abondoned. Can you write off the full ...
  A: Jeff, "In service" is the determination. In your example of a rental unit, if it is being held for ...
Bldg not in use5/25/2011
  Q: Commercial building is no longer in use, basically it's abondoned. Can you write off the full ...
  A: Jeff, Thanks for your question. It depends. There is a difference is not in use and abandoned. ...
stocks are not defined as marketable securities4/29/2011
  Q: per your request I started a new thread and would appreciate your help with this scenario: Assume ...
  A: There is no tax on distributions of profits from a partnership, as the tax has already been paid on ...
stocks are not defined as marketable securities4/29/2011
  Q: per your request I started a new thread and would appreciate your help with this scenario: Assume ...
  A: Bob, First off, by definition you do not appear to have a partnership. If one person contributed ...
tax question college dependent4/29/2011
  Q: My daughter is 19 and a full time college student. Her mother (my x) is trying to claim her as a ...
  A: Jesse, Thanks for your question. 1. Health insurance coverage is available for dependent children ...
Estate IRA4/28/2011
  Q: I am executor for my mother's estate, with only my brother and I as heirs. Mother died in 2010 and ...
  A: Keith, Thanks for your question. As long as the IRA is in the name of the estate, you must file ...
Standard Milage deduction4/28/2011
  Q: My wife's employer offers a program that will pay a stipend on a monthly basis for miles driven and ...
  A: Matt, Thanks for your question. The program is one devised by her employer, it is not a matter of ...
misstatement of compensation on 9904/28/2011
  Q: I left employment at a non-profit in 2009 under a mutual agreement. It was a bad fit and we ...
  A: Barbara, Thanks for your question. The money was taxable income to you. The only thing the ...
Back taxes4/26/2011
  Q: I left the US after I graduated university; and never having worked in the US - was unaware that ...
  A: Michael, Thanks for your question. To rectify the situation, you will have to file returns for ...
capital gains tax4/26/2011
  Q: My Mother left me shares in the family corporation, at the time of her death the share value was ...
  A: Having brought up that it is a related party sale, that changes things potentially. The corporation ...
nj 10654/26/2011
  Q: I am a resident of New Jersey and am a partner of an LLC (which is registered to do business in NY ...
  A: In giving you my answer, I was responding based on how most states treat partnership income. I was ...
Joe and Homework4/24/2011
  Q: Mr Stancil Apparently my questions' formulation has caused some misunderstanding. In fact, I have ...
  A: Correct. The shares held for more than 12 months are subject to long term capital gain treatment. ...
IRS Liability After Death4/23/2011
  Q: As a matter of curiosity and following a family argument/discussion: Is there any situation where ...
  A: Clark, A beneficiary of a decedent's estate is not normally liable for tax debts of the decedent. ...
Foreign employment & U.S. Tax obligations4/22/2011
  Q: My son, a U.S. citizen & Texas resident begins employment in Jamaica May 1 (10 days) for a Cayman ...
  A: Joann, Thanks for your question. He will need to submit his estimated payments on Form 1040-ES. ...
Federal form 9414/22/2011
  Q: Stancil, I've asked you a series of questions in the past, and I'm pretty sure I'll ask more in ...
  A: Connie, Thanks for your question. The adjusted amount is used because, in having the amount taken ...
990 forms4/22/2011
  Q: I understand that 990 forms can be accessed online. If an exempt organization, such as a church, ...
  A: Charles, Thanks for your question. Churches are not required to file Form 990, they do not even ...
California - New York double tax?4/21/2011
  Q: I was working in NY till Aug 2009. In September after my company shut down, I moved to California to ...
  A: Nesh, Thanks for your question. No, you do not owe any CA tax. Hopefully this will work itself ...
Payroll tax?4/21/2011
  Q: Last summer, the non-profit organization I am a part of paid 3 individuals $700 a month to help out ...
  A: Ryan, Thanks for your question. I am not sure what you are referring to when you say "fill our ...
First Time Homebuyer Tax Credit - Expatriate4/20/2011
  Q: I purchased a condo this past year and received the $8,000 First Time Homebuyer tax credit. I am ...
  A: Matt, Thanks for your question. The difference in your usual situation and the assignment in Guam ...
Investment Property4/20/2011
  Q: I purchased a property in 2010 that I have been doing a little construction on, and it won't be ...
  A: Mike, Thanks for your question. FMV is not a concept that you would use for this tax purpose. You ...
Head of Houshold w/83324/19/2011
  Q: I'm actually using you as a 3rd party to help solve a friendly debate that me and a colleague are ...
  A: 1. Sure, an 8332 is simply a document that releases the right to the dependency exemption. Does not ...
Ga Dept. of Revenue4/19/2011
  Q: My Husband died in 2007. I rec a letter from Ga Dept of Revenue in his name requesting payment of ...
  A: Susann, I was rather disappointed in the ratings you gave me, especially you reasoning. You did not ...
Rollovers4/19/2011
  Q: One nagging question remains from the tax season: Does the IRS allow removing money from an IRA, ...
  A: Larry, Thanks for your question. The rules specify that a rollover is a transfer from one ...
Head of Houshold w/83324/19/2011
  Q: I'm actually using you as a 3rd party to help solve a friendly debate that me and a colleague are ...
  A: Des, Thanks for your question. That would be a situation where you had a qualifying child that ...
Dependent Mother4/19/2011
  Q: Can I claim my mother as a dependent if she doesn't live with me? I have been paying her bills and ...
  A: Lauren, Thanks for your question, Most likely you can claim her. A parent does not have to live ...
Canadian Real Estate Sale4/19/2011
  Q: My brother and I are planning to sell my mother's home in Canada as she recently moved into a ...
  A: Elinor, Thanks for your question. I presume you are a citizen or resident of the United States. ...
Summer internship taxable or scholarship?4/18/2011
  Q: My son spent 15 weeks last summer serving in a church as a ministerial intern. He was not ...
  A: Linda, Thanks for your question. The church is incorrect. He performed services, it is taxable ...
Communication with the IRS4/18/2011
  Q: Doctor Stancil, cpa. My name is Hernan Rodriguez, I am a Bookkeeper and I do bookkeeping and tax for ...
  A: Hernan, Thanks for your question. After the audit is performed, the IRS will send him a notice of ...
Origination Fee on a Refinance Home not on 10984/18/2011
  Q: I recently refinanced my home, but when the bank sent home the 1098, the origination fee was not on ...
  A: Christina, Thanks for your question. Line 12 of Schedule A is specifically for this situation. ...
1099 income4/18/2011
  Q: I did some independent work for a company last year and now they no longer exist. I have a pretty ...
  A: Greg, Thanks for your question. If you did not receive a 1099, it is not likely that the company ...
Taxes4/18/2011
  Q: Sir, I currently work overseas as a contractor for the State dept. , last year I was only in the US ...
  A: Justin, Thanks for your question. No, you must maintain a presence in a foreign country for 330 ...
old gm common stock4/18/2011
  Q: Can I deduct old gm common stock which I still own as a long or as a short term loss on my income ...
  A: Leo, Thanks for your question. The stock can be deducted as a long term loss in the year in which ...
OTR Truck Driver Tax Return4/18/2011
  Q: This is our first year of husband being an OTR driver. Wife not work. We want to file our tax return ...
  A: The quarterly estimates are estimated taxes you are paying in for income and self-employment. You ...
529 College Savings Plan4/17/2011
  Q: I have accumulated a large 529 plan ($225K)to fund my daughter's college education. She was awarded ...
  A: Chris, Thanks for your question. The 10% penalty does not apply for a distribution up to the ...
OTR Truck Driver Tax Return4/17/2011
  Q: This is our first year of husband being an OTR driver. Wife not work. We want to file our tax return ...
  A: Tina, Thanks for your question. Since he received a 1099, he is self employed and reports his ...
reduce my tax refund4/17/2011
  Q: I'm hoping you can direct me to a site or give me an idea on how to calculate the best way to reduce ...
  A: Brad, Thanks for your question. Not really. With the complexity of our tax system, the precise ...
EIN vs SSN4/17/2011
  Q: I have a 1 person s-corp. The payer issues a 1099misc to my SSN instead of my s-corp EIN. I filed my ...
  A: Jeff, Thanks for your question. The only problem is that the IRS is going to be looking for that ...
Schedule E vs Incorporating - effect on 10404/17/2011
  Q: Good morning, Mr. Stancil. My husband and I own 50% of a rental property. We are buying another ...
  A: Sharon, Thanks for your question. You seem to be using the terms corporation and partnership as if ...
S corp filing question4/17/2011
  Q: I filed a final tax return for my S corp at the end of 2009. The S corp then had some unexpected ...
  A: David, Thanks for your question. The first thing you need to do is determine is the corporation ...
Form 1040 Line 30 when penalty is paid directly by the taxpayer4/16/2011
  Q: I have a 1099-R showing IRA early distribution; No penalty was wihheld by the institution; Four days ...
  A: yfraser, Thanks for your question. The payment you made was nothing more than a payment of ...
Taking off percentage of interest on personal credit cards for business expenses4/16/2011
  Q: I've heard that you can take off a percentage of the interest on personal credit cards that relates ...
  A: Catherine, Thanks for your question. Technically, yes. The better practice is to have a separate ...
Youth With a Mission Discipleship Training School Fundraising4/16/2011
  Q: I raised support to do missionary training and mission work at a Youth With a Mission Discipleship ...
  A: You say "the organization," if you mean YWAM, it should be taxable. If it is from another ...
State Tax Question4/16/2011
  Q: I lived in MD for one month and then moved to Florida. I earned income from MD for that one month. ...
  A: Robert, Thanks for your question. Regarding the interest and dividends. Technically, they should ...
Money from babysitting in other families home?4/16/2011
  Q: My wife is a teacher and as such has summers off. She was offered a job this summer just babysitting ...
  A: Chris Thanks for your question. Sure, you could do that. That law is in place mostly to assure ...
taxation on forgivness of debt4/16/2011
  Q: My husband and I abandonded our primary residence in May 2010 as both of us are disabled and could ...
  A: Dave, Thanks for your question. Assuming you lived in the house as your primary residence for 24 ...
capital gains4/16/2011
  Q: I'm interested to know more about capital gains tax. I'm aware Obama extended the reduced capital ...
  A: Paul, Thanks for your question. You sell the shares, you pay the tax. Reinvesting the profits ...
Schedule C4/15/2011
  Q: I am self-employed with a lawncare business. On Schedule C, I am claiming the standard mileage ...
  A: Ted, Thanks for your question. Unless you sell merchandise and have cost of goods sold nothing ...
Federal tax laws for overseas employment4/15/2011
  Q: John, I saw one of your replies on this issue and thought I'd ask for some clarification on how this ...
  A: Steve, Thanks for your question. Sorry but you are out of luck on all counts. The exclusion for ...
adjusting the cost basis4/15/2011
  Q: I was reading an answer of yours from 5/11/09 in which you say that the government does not receive ...
  A: Laura, Thanks for your question. I haven't seen the details of how the new 1099-B is going to ...
health insurance premiums deduction for self-employed4/15/2011
  Q: My husband is self-employed. I am not employed. The only health insurance we have now is Medicare ...
  A: Elaine, Thanks for your question. Do not include the Medicare premiums when completing the ...
Ga Dept. of Revenue4/15/2011
  Q: My Husband died in 2007. I rec a letter from Ga Dept of Revenue in his name requesting payment of ...
  A: Susann, Thanks for your question. Without knowing more about what is being alleged, I could only ...
LLC SS-4 shb corp not Sch C4/14/2011
  Q: Heard some good things about you! Will return the favor if you can help me out with this question. ...
  A: Dennis, Thanks for your question. I am thinking that you are asking for trouble. You are ...
State tax laws4/14/2011
  Q: I am a tax preparer and as well as I know federal taxes I am often stumped when doing state taxes ...
  A: Dee, Because of the diversity of state tax laws, there is not (to my knowledge) a comprehensive ...
K-14/13/2011
  Q: I recently filed my 2010 taxes. I have a K-1 that was included in my filing. I expected a loss until ...
  A: Basis is your cost. Income increases it, distributions of cash to you decrease it. Withdrawals ...
excutor of estate a multi dwelling building4/13/2011
  Q: my mom passed on April 18 2010 how do i go about filing her taxes for 2010
  A: Michael, Thanks for your question. File them as you normally would, indicating on the return the ...
Royalties Expense4/13/2011
  Q: My wife is a musician who receives royalty checks from ASCAP and SoundExchange. This income ...
  A: Kevin, Thanks for your question. Her royalties should be reported on Schedule C. If she incurs ...
K-14/13/2011
  Q: I recently filed my 2010 taxes. I have a K-1 that was included in my filing. I expected a loss until ...
  A: Gail, Thanks for your question. You have invested in a partnership or an S Corporation. These ...
tax4/13/2011
  Q: Two tax questions: Last year I filed for ch. 7 in Maryland and was discharged. I released two ...
  A: Al, Thanks for your question. The 1099-C indicates that you had debt of $93K cancelled and the ...
IRA4/13/2011
  Q: I'm using H&R Block online to do my taxes and it's listing my deductible IRA contribution as $0 and ...
  A: Chris, Thanks for your question. If you are not covered by a plan at work, and your spouse is not ...
original issue discount (OID)4/13/2011
  Q: I acquired 11 years ago, through exchange of stock, a debenture with a 15-year maturity which had a ...
  A: Roland, Thanks for your question. The amount of the OID is determined each year by the ...
Business office in home4/12/2011
  Q: I am a US citizen and Canadian Resident. My Canadian wife and I live in Canada, I earn all my income ...
  A: Idiot. Not you - the IRS agent. He should know that. The B column is for indirect expenses. You ...
Taxation and foreign employment4/12/2011
  Q: You were kind enough to give me some good advice in the past and I'm hoping you can help me again. ...
  A: Charlie, You cannot file a CA return without filing a Federal return, as the state return is based ...
Roth tax rules4/12/2011
  Q: I hope you can clarify or give me a resource that will. I have been trying to interpret IRS ...
  A: Regi, Thanks for your question. In order to make a contribution to an IRA (Roth or traditional) ...
Childs W-2 under my name4/12/2011
  Q: My child (15) has a weekly newspaper route that she earned ~$1700 on. However the employer sent the ...
  A: Rich, I would suggest that you file a Schedule C with your return including the 1099 from the ...
Distributions4/12/2011
  Q: Good Evening! My friend owns a business. On 12/31/08 I contributed $10K to the business and became ...
  A: Jerry, Thanks for your question. Since you state that you are a shareholder, that would mean that ...
Enron stock settlement tax treatment4/12/2011
  Q: In May 2002, I purchase a Fidelity fund which included Enron shares. I sold the total fund in ...
  A: The fact is that a sale did not occur in 2010, this payment was related to a sale that occurred in ...
Taxation and foreign employment4/11/2011
  Q: You were kind enough to give me some good advice in the past and I'm hoping you can help me again. ...
  A: Charlie, Thanks for your question and the kind comments. Couple of issues here. When he has been ...
fund raising4/11/2011
  Q: My question is like Gregory's, only bigger: I'm a sole proprietor in NC. I started a program to ...
  A: Claude, I deeply appreciate your interest in retaining my services. However, providing the level ...
Roth IRA eligibility4/11/2011
  Q: MY income for 2010 is $163,807. What is my limit on a Roth IRA? Can I open a Roth IRA CD for ...
  A: Dennis, Thanks for your question. If your filing status is married filing jointly you can fund a ...
primary residence for short sale?4/11/2011
  Q: in the last 5 years, I bought a home, I lived in it for 22 months, rented it for 4 months, lived in ...
  A: Dominic, Thanks for your question. Doesn't sound like it. Based on your description it sounds as ...
Telecommuter tax4/11/2011
  Q: I reside in Florida, a no state income tax state. I work for a consulting firm headquarterd in San ...
  A: Just complete a SC non-resident return. Apportion your income based on the time spent in SC as ...
Telecommuter tax4/11/2011
  Q: I reside in Florida, a no state income tax state. I work for a consulting firm headquarterd in San ...
  A: Andy, Thanks for your question. State tax is based on nexis - having sufficient presence in a ...
State Tax reporting requiements for rental income4/10/2011
  Q: and own a rental property in MA that generates rental income. Where do I have to report that ...
  A: Dan, Thanks for your question. Since the property is in MA you must report that income to MA. ...
1065 filing for ein when no business transacted4/10/2011
  Q: I received an ein for an llc partnership) in 2010. However it was not used in 2010, transacted no ...
  A: Harry, Thanks for your question. A pass-through entity such as a partnership, S Corporation, or ...
Filing for deceased taxpayers - parents4/10/2011
  Q: I am the appointed administrator for my father's estate. My mother died 9/3/2010 and my father died ...
  A: Wanda, Thanks for your question. You do need to file a joint 1040 return for 2010 for them, unless ...
property tax deduction after divorce4/10/2011
  Q: I received the house in our divorce of August last year, but with the agreement that I did not have ...
  A: Lynn, Thanks for your question. The property tax and mortgage deduction can be taken if he meets ...
sch k1---phantom income4/10/2011
  Q: i want to question accurateness of k1 recd from constellation energy partners llc "cep" a publicly ...
  A: Stu, Thanks for your question. If you think the K-1 is incorrect, the first thing to do would be ...
Truck Driver Per Diem Over The Road4/10/2011
  Q: Is there a Standard deduction when I am away from home, sleep in my truck and eat at a truck stop, ...
  A: Joe, Thanks for your question. As a qualified transportation worker you are entitled to a per deim ...
Gift Tax4/10/2011
  Q: My wife and I, both resident aliens gave our son and daughter-in-law checks of $13,000 each (total ...
  A: Ryan, Thanks for your question. Gifts are not income and are not reported on a 1040 either by the ...
Deductibles4/10/2011
  Q: A quickAre nursing home expenses fully deductible on Schedule A under medical? Thank you.
  A: Larry, Thanks for your question. If the main reason for being in the nursing home is to obtain ...
sale of grandmother's house4/9/2011
  Q: My grandmother transferred title to her house to me and 5 other relatives in 1990 (I didn't know ...
  A: Kim, Thanks for your question. Yes, the sale must be reported on Schedule D. You will pay tax on ...
Sale of a Condominium4/9/2011
  Q: In 2006, my husband and I purchased a condo (not our primary residence). We used our credit cards ...
  A: Juanita, Thanks for your question. The credit card companies do not hold a mortgage on your house, ...
Youth With a Mission Discipleship Training School Fundraising4/9/2011
  Q: I raised support to do missionary training and mission work at a Youth With a Mission Discipleship ...
  A: The money paid to you directly is considered a gift, as it was not given for services. If it was ...
Schedule C4/9/2011
  Q: My husband has been running a tennis instruction business from our home for a few years now. ...
  A: Jeanne, Thanks for your question. At this point the assets are not being used in the business, so ...
claiming insolvency4/9/2011
  Q: My husband settled cc debt and received 1099-c from 2 credit companies. It is his debt only, but we ...
  A: Yes, you need to be insolvent as a couple if you file jointly. You do not need to provide any proof ...
Income for an single member LLC owner4/9/2011
  Q: Can a member of a Single member LLC pay himself a salary? If so, how do we go about reflecting that ...
  A: Mirna, Thanks for your question. Unless you have elected to have the LLC taxed as a corporation ...
claiming insolvency4/9/2011
  Q: My husband settled cc debt and received 1099-c from 2 credit companies. It is his debt only, but we ...
  A: Betty, Thanks for your question. If you are filing a joint return, the two of you combined must be ...
Renting A Guest House4/9/2011
  Q: My house has a detached mother-in-laws quarters that I decided to rent out this year. I still live ...
  A: Bill, Thanks for your question. You need to take the approach that the rental is a different ...
Youth With a Mission Discipleship Training School Fundraising4/9/2011
  Q: I raised support to do missionary training and mission work at a Youth With a Mission Discipleship ...
  A: Sara, Thanks for your question. The money paid directly to you is not taxable. It is given to you ...
inheritance tax4/9/2011
  Q: A sister living in Pennsylvania recently passed away and left me a sizable inheritance (less than ...
  A: Russ, Thanks for your question. There is no withholding for estate and inheritance taxes. That is ...
schedule C filling4/8/2011
  Q: I have a small business in Delaware and I do some work in Pennsylvania, my question is what is ...
  A: Robert, Thanks for your question. You will have to apportion your Schedule C income between ...
windstorm ins & tax4/8/2011
  Q: summer house a total loss from hurricane IKE, settled for $22,000 on a $88,000 policy. No house to ...
  A: Tom, Thanks for your question. You don't make it clear if it is a personal residence or a rental. ...
Capital Lease4/8/2011
  Q: I'm looking for some clarification. A friend and I formed a partnership. We leased a rig and ...
  A: Mike, Thanks for your question. There are specific criteria to determine whether a lease is ...
Do I claim rental income?4/8/2011
  Q: My mother in law has been living with our family in our finished basement for 8 months rent free. ...
  A: McCarthy, Thanks for your question. It sounds to me as if you have a family member living in you ...
1099-A4/8/2011
  Q: A friend of mine received a 1099-A only and didn't receive a 1099-C for Timeshares she had with ...
  A: Kelly, Thanks for your question. Yes that is income to her in the manner you have stated. I don't ...
Mileage reimbursement vs mileage deduction4/7/2011
  Q: Mr. Stancil, My employer chooses to reimburse at a rate less than IRS allowable. Reimbursed ...
  A: Donn, I have just received new information about a recent court decision that may affect your ...
CPA kept W2's didn't notify me4/7/2011
  Q: I gave my husband my W2's in Jan of 2010. He gave them to his accountant as we had done for the past ...
  A: Bridget. Thanks for your question. Malicious would signify intent. Since I am not a party to the ...
Lost investment in startup business4/7/2011
  Q: Mr. Stancil, In June 2009 I invested 55,000 in a startup business. I received a promissory note ...
  A: John, Thanks for your question. You can deduct it as a bad debt, but as a capital loss on Schedule ...
Limited Partnership Distribution4/7/2011
  Q: Greetings, I am a first time owner of stock in a LP. I just received my Schedule K-1(form 1065). ...
  A: Ray, Thanks for your question. On the back of the form should be instructions for what to do with ...
IRA 10% penalty question4/6/2011
  Q: My wife put's $5,000 into a Traditional IRA. I put $5,000 into my Traditional IRA. When it comes ...
  A: Tim, Thanks for your question. The use of funds withdrawn for an IRA as a first-time homebuyer is ...
Who can claim child?4/6/2011
  Q: My son and his girlfriend had a baby last year. She qualified for Texas Medicaid based on both ...
  A: Laura, Thanks for your question. You do not mention where the child lives. If the baby lived with ...
Foreign Earned Income4/6/2011
  Q: I have been living abroad for two years now and did not pay taxes last year since I submitted form ...
  A: Ben, Thanks for your question. Yes, he is correct. The foreign earned income exclusion/credit ...
forgiven debt tax4/5/2011
  Q: I foreclosed on a piece of raw land that i was going to build my next house on.The bank 1099 me for ...
  A: Jay, Thanks for your question. Yes, it is taxable income. You borrowed money and did not repay ...
rental property interest deduction4/5/2011
  Q: In January 2011 I inherited a duplex (both sides rented) which currently has no mortgage. Can I ...
  A: Jerre, Thanks for your question. You can take a mortgage on the condo and deduct the interest from ...
501c(3) tax law question4/5/2011
  Q: We were wondering if you had any info or knew of a website where we could get info about a situation ...
  A: Barney, Thanks for your question. She is running a business out of her home. Your organization ...
Mortgage Interest and Double Dipping4/5/2011
  Q: We file MFJ. We rent our property for less than mortgage payment (cos of military) and therefore ...
  A: Gail, Thanks for your question. The house is a rental you cannot deduct the interest on Schedule ...
1099-misc living in mexico4/4/2011
  Q: My husband and I always file jointly federal tax every year as we live in Mexico full time. I am a ...
  A: File as a California non-resident jointly, excluding any non-CA income. His income will not affect ...
Form 1099-A Abandonment of secured property4/4/2011
  Q: I had a spec house that the bank foreclosed on.I got a 1099A for 2010 Blk 2- $ 291,286.64 and Blk 4- ...
  A: Robert, Thanks for your question. Since the amount of debt cancellation was less than the FMV you ...
Tax implications: fundraiser for cancer patient4/4/2011
  Q: Stancil, this is a follow up question to another question you answered on this site. A friend of ...
  A: Irene, Thanks for your question. There are very few circumstances where the donations would be a ...
Tax filing for co-own condo4/4/2011
  Q: for a jointly owned condo - 1) can we decide who claims property tax on their tax return? Is it ...
  A: EC, Thanks for the clarification. 1 - The property tax can be deducted by whoever is legally ...
Tax filing for co-own condo4/4/2011
  Q: for a jointly owned condo - 1) can we decide who claims property tax on their tax return? Is it ...
  A: EC, Thanks for your question. I cannot answer it without more information. Your question is not ...
Physical Presence4/4/2011
  Q: I am departing Iraq 12 days shy of my 330 days. I would like to travel to Puerto Rico on vacation ...
  A: Michele, Thanks for your question. Unfortunately, Puerto Rico is a U. S. possession and, as such, ...
LLC Rental Property Mortgage Interest Deduction4/4/2011
  Q: Taxpayer (husband/wife) plans to re-title a rental property into an LLC (owned by husband/wife). ...
  A: Morgan, Thanks for your question. For all tax purposes, the LLC is a disregarded entity. You are ...
Deductions4/3/2011
  Q: We built our primary residence in 2010, I was the building contractor. Can the amount that I paid ...
  A: Sandy, Thanks for your question. The amount that you paid others can be included in the cost basis ...
Gift tax on new car purchase4/3/2011
  Q: Ok I want to purchase a new truck for my parents. The truck is going to cost around 25K. If we walk ...
  A: James, Thanks for your question. You will not have to pay any gift tax, as the annual exclusion is ...
Unreimbursed Mileage4/3/2011
  Q: My employer reimburses me for mileage, but at only .45 cents per mile. I understand the federal rate ...
  A: Chris, Thanks for your question. Your Google answer is correct. Unreimbursed employee business ...
Investment interest expense deduction4/2/2011
  Q: We borrowed money from a friend who charged us interest and used the proceeds to buy 3 townhomes. We ...
  A: You can only deduct investment interest to the extent you have investment income. However, for ...
International Volunteer out of pocket expenses4/2/2011
  Q: I volunteered for a US-based 501 (c) (3) in another country. We spent 2 and a half weeks building a ...
  A: Ruby Lee, Thanks for your question. I did basically the same thing last year, spending time in ...
Certified common stocks and DRS4/2/2011
  Q: In August 1996 the company I worked for gave me 50 certified shares of their company stock. ...
  A: They won't tell you what is taxable or not. They MIGHT have your cost, but the responsibility for ...
Certified common stocks and DRS4/2/2011
  Q: In August 1996 the company I worked for gave me 50 certified shares of their company stock. ...
  A: Kathy, Thanks for your question. Your basis in the shares purchased with reinvested dividends is ...
Living Allowance4/2/2011
  Q: In July I was laid-off from the company. My living allowance was taxed for the entire year of 2009 ...
  A: Keri, Thanks for your question. Probably not. If the original term of the assignment was for an ...
1099 A4/2/2011
  Q: A couple filed bankruptcy in 2010 and had their rental property foreclosed. They received a 1099A ...
  A: The excess of debt cancelled over the fair market value of the property is COD income - line 21 of ...
Investment interest expense deduction4/2/2011
  Q: We borrowed money from a friend who charged us interest and used the proceeds to buy 3 townhomes. We ...
  A: Mike, Thanks for your question. You can use the interest expense as an investment interest ...
Traveling Evangelist4/2/2011
  Q: Traveling, itinerant, evangelist lives in a motor home and is paid for services by a single ...
  A: Richard, Thanks for your question. I would agree with Worth with one qualification. He must have ...
Loss On Investment Real Estate4/2/2011
  Q: I had invested $25K in a real estate project that has now gone into default and the banks had first ...
  A: Jerry, Thanks for your question. This is a capital loss, reported on Schedule D. The loss is ...
Traveling Evangelist4/2/2011
  Q: Traveling, itinerant, evangelist lives in a motor home and is paid for services by a single ...
  A: Richard, Thanks for your question. First, based on your description, he should be receiving a W-2 ...
Tax Dependency Exemption4/1/2011
  Q: My daughter was divorced in 2009 in the state of wisconsin. There is one minor 4 year old child. The ...
  A: Brian, Thanks for your question. There is the correct answer, and there is what is likely to ...
employee or contract worker4/1/2011
  Q: We are starting a company that will work with wine suppliers and distributors by setting up people ...
  A: Roy, Thanks for your question. It sounds as if they should be W-2 employees, but I urge you to ...
Self Employed Income4/1/2011
  Q: This year I am earning self employed income, via a 1099. I realize I am subject to self employment ...
  A: Matthew, Thanks for your question. The LLC is a disregarded entity for tax purposes, so just ...
Education Credits4/1/2011
  Q: I am currently a second year student at a four year public university. I've heard about the 1098-T ...
  A: Demone, Thanks for your question. The 1098-T serves two purposes. First, if your scholarships ...
Business office in home4/1/2011
  Q: I am a US citizen and Canadian Resident. My Canadian wife and I live in Canada, I earn all my income ...
  A: Rich, Put the full amount in the "Indirect Expense" column. If you are using software, it will ...
Excess Contribution in Self-Employed 401k3/31/2011
  Q: I own a small business, which is a sole proprietorship without any employee. I don't pay myself any ...
  A: Kath, Thanks for your question. You will need to remove the excess contribution. Essentially it ...
Rental Real estate3/31/2011
  Q: Owner is gifting rental real estate to daughter who will not continue renting it out. How is the ...
  A: John, Thanks for your question. I presume you are referring to a 1040 return. Simply remove it ...
Per diem3/30/2011
  Q: My husband is paid a per diem rate that is 1/2 the amount the IRS lists for per diem for San ...
  A: Diane, Thanks for your question. Yes, complete Form 2106 showing the amount allowed then show the ...
Taxable Income for Pastor3/30/2011
  Q: Our pastor wants to take himself and his family on a trip to a Christian family camp and is asking ...
  A: Connie, Thanks for your question. This is not a matter of opinion, but law. The church can pay ...
Head of Household question3/29/2011
  Q: My question is in regards to my mother. She is married, has one depended son but has not lived with ...
  A: Irfan, Thanks for your question. If her husband did not live in her household at any time during ...
2010 tax credit for air/heat system3/29/2011
  Q: I am in the middle of my 2010 taxes and they will not allow me to get a credit of $1500.00 for a new ...
  A: Peggy, Thanks for your question. The residential energy credit is a non-refundable credit. This ...
Business office in home3/29/2011
  Q: I am a US citizen and Canadian Resident. My Canadian wife and I live in Canada, I earn all my income ...
  A: Rich, Thanks for your question. Yes and yes. You can deduct 10% of those items plus repairs, ...
Estate Closing3/29/2011
  Q: A neighbor lost her husband last year. he had assets but no trust of any kind. The assets were ...
  A: Larry, Thanks for your question. Just to be sure you are clear, a 1041 is an Estate Income Tax ...
Residency Issues3/29/2011
  Q: I am a Georgia resident (I own permanent home in GA, born there, family, hold ID, etc.), and have ...
  A: Britt, Thanks for your question. For tax purposes, you are considered a NY resident. If you are ...
Vacant lot - investment3/29/2011
  Q: My wife & I bought a buildable, vacant lot last year. After getting some builder quotes, we decided ...
  A: Jason, Thanks for your question. Since it is investment property, you can deduct the property ...
legal guardianship3/29/2011
  Q: Starting in May 2010, our daughter (age 16) has been living with another couple. We granted legal ...
  A: Joe, Thanks for your question. That gets rather complicated. For you to claim her, you must ...
Claiming Dependents3/29/2011
  Q: John, I have just finished filling out our tax forms, using H & R Block's program. I have used it ...
  A: David, Thanks for your question. I really don't have sufficient information to give you an answer. ...
gift tax3/28/2011
  Q: I am confused about the difference between "annual gift tax exclusion" and "lifetime gift tax ...
  A: That is correct. No tax until you have used up your $5,000,000 exemption. I would add that you can ...
Business Mileage Expense vs. Commuting3/28/2011
  Q: I recently asked another AskExperts person a question. I got an answer but had a follow-up ...
  A: Dan, Thanks for your question. The rules are pretty simple when explained properly. Her first of ...
tax preparers3/28/2011
  Q: I've always done my own tax return (form 1040)and usually owe around $200 because of self-employment ...
  A: Lee, Thanks for your question. I can't speak for Block, but I charge based on the difficulty of ...
gift tax3/28/2011
  Q: I am confused about the difference between "annual gift tax exclusion" and "lifetime gift tax ...
  A: Ed, Thanks for your question. The annual exclusion is there to avoid having to file a gift tax ...
Report Real Property Inheritance on Schedule D3/28/2011
  Q: My mother died CA on July 7, 2010. Her only asset was her house which was in a trust. Me and my ...
  A: The appraised value is stronger if you have a appraisal or a letter from a Realtor, but your ...
Report Real Property Inheritance on Schedule D3/28/2011
  Q: My mother died CA on July 7, 2010. Her only asset was her house which was in a trust. Me and my ...
  A: Mike, Thanks for your question. You do have a long term capital loss. But you have calculated it ...
1040 Credit for Taxes paid on Estate 1041 for IRA distribution3/28/2011
  Q: My Father in law passed and the IRA money was withdrawn and not rolled over by the executor. The ...
  A: Jeanne, Thanks for your question. You are confusing two types of taxes - estate tax and estate ...
schedule C3/28/2011
  Q: I add to fill out a schedule C (for which I am stil confused about why) regarding some work I did. ...
  A: Thomas, Thanks for your question. It is quite common and acceptable to use you personal name and ...
Rent house from self3/26/2011
  Q: I own a commercial farm with a house on it. I am considering renting the house to myself and ...
  A: Mark, Thanks for your question. Unless your farm is a corporation you cannot rent to yourself. ...
SEP IRA Contributions3/26/2011
  Q: Am I free to consider earned income from ALL sources when calculating my annual SEP IRA ...
  A: Shelly, Thanks for your question. Your SEP contribution should be based on your earned income from ...
Fuel Reimburstment3/26/2011
  Q: I work as a outside sales man for moving storage company. I receive $600. per month for fuel ...
  A: Joe, Thanks for your question. It is taxable income to you and the company is deducting it as an ...
1099 Nonemployee3/26/2011
  Q: My husband and I divorced in 2010. Part of decree was he got to keep corporation, I received 1/2 ...
  A: Margie, Thanks for your question. If you owned stock in the corporation and sold it, then a ...
trust distribution reporting3/26/2011
  Q: My Mom has an irrevocable trust from my Dad where the income from the trust is distributed to her ...
  A: Julie, Thanks for your question. If the trust did not take the gain or loss on its return, the ...
tax on church rental property3/25/2011
  Q: In looking at the IRS publication on religious organizations, in the section on church owned rental ...
  A: Ben, Thanks for your question. That would something like maid service, lawn care, and the like. ...
Head of Household3/25/2011
  Q: My brother and I have lived together for 5 years. I am 62 and receive SS survivor benefits plus ...
  A: Carol, Thanks for your question. You cannot claim head of household or claim him as a dependent as ...
Should Religious non profit issue 1099 if it passes on a gift?3/25/2011
  Q: John, I am on the board of a small 501c3 designed to help some full time Christian evangelists from ...
  A: Jesse, Thanks for your question. If the amounts were paid to an organization rather than to an ...
Form 843 abaitment on1120 s corp3/25/2011
  Q: I just found out I owe $1092 (penalties and interest) because I filed my 2009 taxes 1120 form late. ...
  A: Tom, Thanks for your question. Form 843 is fairly easy to complete. In fact, I sometimes feel like ...
deduction of sales tax on federal form3/25/2011
  Q: I live in NY and bought an auto in 2010. Can I deduct the taxes paid on that car from my income ...
  A: Barbara, Thanks for your question. You have a choice. You can deduct the sales tax paid on the ...
Family Trust/ Inheritance3/25/2011
  Q: The trust is in stocks, bonds, mutual funds etc., I thought I wanted my third,some in cash, but to ...
  A: Craig, Thanks for your question. If you liquidate and take cash, you have a sale that must be ...
Taxes for LLC, filing 10653/24/2011
  Q: Last year 3 friends set up an LLC, planning to open a business which would include selling quilting ...
  A: Mary, Thanks for your question. The unreimbursed expenses can be treated as a capital contribution ...
meal allowance3/24/2011
  Q: I drive a motor coach and I'm away from house for 14 to 15 hours a day. I have a 4 1/2 to 5 hour ...
  A: Wayne, Thanks for your question. Normally you cannot deduct meals when you are now away from home ...
referral fee3/24/2011
  Q: I am trying to get additional business from existing satisfy customers to refer new buyers for our ...
  A: Laulau, Thanks for your question. The $10 should be reported on your tax return as advertising ...
Debt Cancellation3/24/2011
  Q: I'll attempt to shorten my last question with less detail. Primary residence purchased in 2004 was ...
  A: Jeff, Thanks for your question. Report the COD income on line 21. Report the sale on From 4797. ...
Driving to/from job site(s)3/24/2011
  Q: Instead of taking a bus I plan on driving about 20+ miles to my new job site. Monthly parking is ...
  A: Tom, Thanks for your question. No, that is a commuting cost and is not deductible. However, if ...
Funds Never Taken Posession Of3/24/2011
  Q: http://www.ag.org/top/Church_Financial_Matters/ch_finance_contributrions.cfm Referring to rule #2 ...
  A: These are not church expenditures and definitely not petty cash. They are expenditures made on ...
Pastor Appreciation Payment3/24/2011
  Q: How should the church code the pastor's appreciation payment? In the past the church has made this ...
  A: Dan, Thanks for your question. Coding is strictly an internal matter to be decided by those at the ...
RV rental tax filing3/23/2011
  Q: When not using our Motor Home it is rented to others by an agency. I would like to know the proper ...
  A: John, Thanks for your question. Schedule E is for real estate rentals. This is taxable and would ...
Gift Card as income3/23/2011
  Q: We are concidering starting an incentive program for our employees but don't want to increaase their ...
  A: Laura, Thanks for your question. The IRS treats gift cards as cash and must be reported as taxable ...
Partnership personal expenses3/23/2011
  Q: Mr. Stancil, A friend and I each owned 50% of two rental houses. We recently quit claimed them to ...
  A: Mike, Thanks for your question. Yes, those can be deducted on Schedule E. Enter your Partnership ...
LLC/personal and utility deductions3/23/2011
  Q: We have a small HOME based LLC (multi member - all family members). Our business advertising is ...
  A: The law has not been successfully challenged. Bottom line is that is it not worth the effort, as ...
LLC/personal and utility deductions3/23/2011
  Q: We have a small HOME based LLC (multi member - all family members). Our business advertising is ...
  A: Ken, Thanks for your question. You can split the cable/web access bill. However, law prohibit the ...
Tuition Reimbursement3/22/2011
  Q: My company is paying for my graduate courses. I have 6,000 in tuiton expenses for the calender year ...
  A: Matthew, Thanks for your question. You might be better off if you took the lifetime learning ...
Not Rented for Profit3/22/2011
  Q: I file a Schedule E and have for several years. Last year my parents move into the home I own in ...
  A: Donna, Thanks for your question. You DO NOT have to list income of fair market rent. Your parents ...
income averaging3/22/2011
  Q: In March 2010 I took $15,500 out of an annuity to purchase a car; it appears to be taxable income. ...
  A: Mack, Thanks for your question. This is a rather obscure section of the law as it does not apply ...
unreported income3/22/2011
  Q: My wife received a w-2 for hours work. She was also paid $455 in bonuses which is unreported income. ...
  A: Ken, Thanks for your question. It should have been included in her W-2. Therefore it should be ...
Tax treaty benefit3/22/2011
  Q: If I am a US teacher, and I work in Italy for 2 years, there is the tax treaty that says I am exempt ...
  A: Jim, You are not totally exempt from U. S. taxation. Any interest, dividends, or other ...
State Tax Split3/22/2011
  Q: I need help. The State of Virginia has sent me a request for tax return from 2008. In that year, I ...
  A: Frederick, Thanks for your question. Nevada has no state income tax, so you did not pay state tax ...
Repaying employer-paid moving expenses3/22/2011
  Q: My husband relocated our family from one city to another (200 miles away). We sold our house and ...
  A: Elizabeth, Thanks for your question. There are a couple of options for handling it. I'll give you ...
convert for profit rental to not for profit?3/21/2011
  Q: Rental income from a single family dwelling does not cover all the expenses much less the ...
  A: I do not understand what you mean by the losses hurting you when you sell. If you have suspended ...
convert for profit rental to not for profit?3/21/2011
  Q: Rental income from a single family dwelling does not cover all the expenses much less the ...
  A: A not-for-profit rental does not indicate results it indicates intent. Usually this status is ...
Mileage deduction3/21/2011
  Q: I travel from my w-2 job to my independent contractor job and then home from my IC job. I know that ...
  A: Warren, Thanks for your question. Basically the rules state that your first trip in the morning ...
Tax question.3/21/2011
  Q: I was wondering if you could help me with this. My w2 was due to be sent out at the end of January. ...
  A: David, Thanks for your question. Time to call in the big boys. You have done all you can. You ...
accountable vs. non accountable plan for reimbursements3/21/2011
  Q: I am an author and traveled in 2010 on business and was reimbursed by my publisher. I presented ...
  A: Hope, Thanks for your question. What you have stated applies to the employee/employer ...
Tax question3/21/2011
  Q: I have a quick question that I hope you can answer before I file my return. I married last ...
  A: Most programs that I am familiar with allow you to do a comparison. However, I am not familiar with ...
Filing status3/21/2011
  Q: John, my wife and I usually file jointly. I lost my job in early 2010. Due to severance pay and 401k ...
  A: Ed, Thanks for your question. Probably not, but the only way to tell is by preparing the returns ...
Tax question3/21/2011
  Q: I have a quick question that I hope you can answer before I file my return. I married last ...
  A: Alex, Thanks for your question. No tax deductions for the wedding. To determine if it would be ...
double taxation by OR and CA3/20/2011
  Q: I moved from Oregon to California in 2008 and had a full-time job in San Diego for two years. I ...
  A: Chris, Thanks for your question. States today are being very aggressive at asserting right to tax ...
inherited stocks3/20/2011
  Q: i inherited stock from my father in 2008 i cashed them out for 25,600 and paid 3500 in witheld tax. ...
  A: The fact it is a 1099-R changes everything. When a disbursement is made from a qualified retirement ...
w2 forms3/19/2011
  Q: My last employer has not sent my w2 form yet. I wondered if I can take action against them. What is ...
  A: Harvey, Thanks for your question. The law in Kansas is the same as throughout the US in this ...
taxes from a trust3/19/2011
  Q: I am trying to determine, for a friend, how to pay taxes from a irrevocable trust with a EIN number. ...
  A: Daniel, Thanks for your question. With a trust you have the option of letting the trust pay the ...
dependent parent3/19/2011
  Q: My mother, who is 67 came came to USA 2 years ago and got her Green Card and social security number ...
  A: Sandi, Thanks for your question. Gifts are not deductible items, so you get no tax benefit there. ...
Is there a limit on capital loss for rentals3/19/2011
  Q: Is there a limit on capital loss for rentals foreclosure/abandonment w/ 1099-A? No 1099-c s yet. ...
  A: Jerry, Thanks for your question. There is no limit per se, but you are only allowed to offset ...
Primary Residence Converted to Rental3/18/2011
  Q: We began 2010 owning a primary and secondary/vacation home, neither as a rental (I'll call them A ...
  A: Tevis, A couple of issues here. First, a not-for-profit rental refers to intent, not results. It ...
education credit3/18/2011
  Q: My daughter is in her third year of college, she receives more in grants & scholarships than her ...
  A: Terry, Thanks for your question. No you cannot make that assumption. The 1098T you get from the ...
trust & estate return 10413/18/2011
  Q: My father passed away in Sept 2009 and he had a living trust. The only account in the trust's name ...
  A: Lori, Thanks for your question. You use the rates for the year in which the account was ...
Childs W-2 under my name3/18/2011
  Q: My child (15) has a weekly newspaper route that she earned ~$1700 on. However the employer sent the ...
  A: It can be changed, they are just not willing to do so. I would suggest you call the IRS at 1 800 ...
Childs W-2 under my name3/18/2011
  Q: My child (15) has a weekly newspaper route that she earned ~$1700 on. However the employer sent the ...
  A: Rich, Thanks for your question. The W-2 shoud be issued in your child's name and social security ...
dependant3/17/2011
  Q: I am legally married but living separate from my husband for 1 year. There is no separation ...
  A: CBaker, Thanks for your question. Without knowing all the details, I couldn't say. In order to ...
church designated & housing3/17/2011
  Q: Is there an IRS pub that gives information on designed accounts? Who determines there will be a ...
  A: Bennie Jo, Thanks for your question. No, there is no specific IRS publication on that topic. It ...
form 1065 balance sheet3/17/2011
  Q: I personally loaned my LLC money. I wrote a check to myself, from the LLC. Where do I account for ...
  A: Leigh, Thanks for your question. I am a little confused. You state that you loaned the LLC some ...
Tax Question3/17/2011
  Q: We were going to get a house build in 2010 and got into a contract with a builder and gave him about ...
  A: Susan, Thanks for your question. That is a marginal issue. The IRS states that a theft is the ...
State Filing3/17/2011
  Q: I worked and was living in Louisianna for 6 mo's of 2010, then I moved back home to WI, I was not ...
  A: Sara, Thanks for your question. Due to a lack of information, this is a tricky answer. The ...
Corrected 1099-R Do I need to revise my 1040 return?3/16/2011
  Q: After filing my 2010 1040 return I received a revised 1099-R from a broker which 'fortunately' ...
  A: Roland, Thanks for your question. The only reason to not file an amended return would be to make ...
marital status3/16/2011
  Q: Got married in Nov 2010. We are filing MFS, but I forgot to change my status to "Married" and ...
  A: Courtney, Thanks for your question. You should file an amended return after you have received your ...
1099-C cancellation of Debt3/16/2011
  Q: Purchased primary residence in 2004 with an interest only loan of 370K. Added a 25K home equity loan ...
  A: Tim, Thanks for your question. One thing is not clear. You borrowed 370K, then 25K. So that ...
S-Corp3/16/2011
  Q: I'm the sole owner of an S-Corp. As I was doing my business taxes, I posted expenses that should ...
  A: Mimi, Thanks for your question. Technically, no. Since you are a cash basis corporation, you ...
S-Corp renting office in home of owner3/16/2011
  Q: I saw in an earlier post of yours that an S-corp owner could charge rent to his s-corp, and that he ...
  A: Mimi, Thanks for your question. I can't say for certain what I said in a particular post, ...
Schedule SE3/15/2011
  Q: On the short form of SE Line 4 ....." do not file this schedule unless you have an amount on line ...
  A: Jan, Thanks for your question. You are reading the form correctly, unfortunately, the wording on ...
marriage penalty3/15/2011
  Q: I didn't completely understand your answer to a previous questions. What did you mean by saying the ...
  A: Sandra, The so-called marriage penalty exists wherever there is a difference between filing married ...
Flight Attendant deductions3/15/2011
  Q: My wife was force-assigned to a new base in Fort Lauderdale. We have our marital home in MI. To ...
  A: Will, Thanks for your question. No. Since she has been assigned to a new location, that is your ...
Research Grant3/15/2011
  Q: I am a PhD student....I received a $3150 research grant. This grant was a competitive, merit based ...
  A: Thomas, Thanks for your question. Unfortunately, it is taxable. However, you may deduct any ...
Interest and other Homeowner deductions when not married3/14/2011
  Q: my gf and I bought a home together and need to file our taxes. I paid for the down pmt but we ...
  A: George, Thanks for your question. I assume that each of you are liable on the mortgage debt and on ...
Bonus Repayment3/14/2011
  Q: I Received a bonus of $10k, that was paid $7K in 2010 and $3k in 2011. If I left the company before ...
  A: Mike, Thanks for your question. Since the amount of the reimbursement exceeds $3,000, you have a ...
1099b3/14/2011
  Q: Dad died & everything split with my sister. I rec'd a 1099b for 2010 indicating staggered proceeds ...
  A: Kay, Thanks for your question. Yes, taxes must be paid. Your basis is the fair market value as of ...
Shareholder Loan3/14/2011
  Q: The business ended and there were still shareholder loans outstanding owed to the shareholder. ...
  A: Jeff, Thanks for your question. The loss from unpaid loans would be reflected on Schedule D of ...
marriage penalty3/14/2011
  Q: My wife and I each made over 100k. We seems to have a lower combined tax liability if we file as ...
  A: John, Thanks for your question. Filing single is not an option if you are married. The marriage ...
1099misc box 143/14/2011
  Q: I received a 1099misc box 14. How to report it?
  A: JJ, Thanks for your question. I presume it is a personal, not business, item. You probably don't ...
Rental property3/14/2011
  Q: John, I'm going to attempt and revise my last question to you. Hi John, Rental property in a ...
  A: Jeff, Thanks for your question. You will report as debt cancellation income the excess of the debt ...
Italian postal bonds3/14/2011
  Q: My friend's mother was born in Italy, but is a US citizen. From time to time she cashed in her ...
  A: Jeff, This is reportable on the 1040, as U. S. citizens are subject to tax on their worldwide ...
Depreciation3/14/2011
  Q: If I want to depreciate a rental home, I know the land is not depreciable, so if the building is ...
  A: Tina, Thanks for your question. First, you cannot expense the value of the land. It is an asset ...
Loans to Family Members3/13/2011
  Q: I loaned $30,000 to a family member and her spouse in 2009 and received principal and interest ...
  A: David, Thanks for your question. You can't redo history in this case. It is a loan, was treated ...
fed filing joint, state filing separate3/13/2011
  Q: I got married in May of 2010 and my husband and I subsequently moved to Georgia. Previously he lived ...
  A: Sarah, Thanks for your question. State laws vary about having a separate filing status than you ...
Real Estate Tax3/9/2011
  Q: I am a real estate agent and buying a house for myself. I plan to contribute all the buyer agent ...
  A: Ashley, Thanks for your question. It depends on how it is handled. If the closing statement does ...
lump sum3/9/2011
  Q: Will retire from USPS with large lump sum for retiring early . How can I save taxes on this money
  A: Chuck, Not meaning to be flippant, but not taking it in a lump sum is about the only strategy. ...
Foreign Royalty Income3/9/2011
  Q: I have some Royalties coming in from Canada on NR4 forms. There is Interst and Gross Income as well ...
  A: Mike, Thanks for your question. It would be reported on Schedule E, just like a royalty from a U. ...
Church designations3/9/2011
  Q: Can an individual make out a check to the church designating that money be used for a certain person ...
  A: Trent, Thanks for your question. That is exercising undue control over the contribution and the ...
501 c 3 incorporated in November 2010, started operations in January 20113/8/2011
  Q: Our company that has been incorporated as 501 c 3 in November 2010 did not start operations until ...
  A: Kathy, Thanks for your question. An organization such as a not-for-profit or a corporation is ...
Non-Profit3/8/2011
  Q: A senior continue learning association was formed 8 years ago with the support of a local ...
  A: I cannot take the time involved to research and cite specific code sections. Since this is a ...
S-corp vehicle reimbursement3/8/2011
  Q: Is it Ok for an S-corp with 2(husband & wife) 50% members to reimburse each of them for their ...
  A: Justin, Thanks for your question. Yes, However, if the reimbursement total exceeds the IRS ...
can I claim interest on an undeveloped lot purchased 3 years ago3/8/2011
  Q: I purchased a lot 3 years ago with the intent to build a new home. I have been unable to move ...
  A: Suzanne, Thanks for your question. You may file an amended return to deduct the interest for up to ...
volunteer charitable work3/8/2011
  Q: There is an organization call The Sojourner Mission out of Texas that recruits and directs retired ...
  A: Jackie, Thanks for your question. Out of pocket expenditures, plus mileage at 14 cents per mile ...
Line 30 form 10403/8/2011
  Q: Is a surrender charge on a non-retirement annuity the same as a penalty on early withdrawal of ...
  A: Karen, Thanks for your question. No, the penalty for early withdrawal is basically a reduction in ...
Joint Tenants3/8/2011
  Q: I am organizing info to do my widowed, elderly mother's tax forms for 2010. She needed to sell some ...
  A: Who provided the original funding and how your mother's name came to be on the account is not ...
Non-Profit3/8/2011
  Q: A senior continue learning association was formed 8 years ago with the support of a local ...
  A: Marie, Thanks for your question. The amounts, paid on behalf of the corporation, should be ...
custodial parent and tax return3/8/2011
  Q: I am a single mother of a 15 and 17 year old. I was divorced in 1997. The divorce decree grants me ...
  A: Jeannie, Thanks for your question. What is right and what has to be done are two different things ...
Question3/7/2011
  Q: my grandmother (85 years old), brother and I currently co-own a condo. My grandmother purchased the ...
  A: Edward, Thanks for your question. If, at the time of sale, the condo was your personal residence ...
Easements3/7/2011
  Q: Received $ for a permanent and $ for a temporary easement(for damages). Land is in Miss, I am a ...
  A: In that situation, you would report both payments as capital item, allocating basis to each and ...
Easements3/7/2011
  Q: Received $ for a permanent and $ for a temporary easement(for damages). Land is in Miss, I am a ...
  A: Deb, Thanks for your question. Since you are a resident of GA, it should be reported there. But ...
Joint Tenants3/7/2011
  Q: I am organizing info to do my widowed, elderly mother's tax forms for 2010. She needed to sell some ...
  A: Vicki, Thanks for your question. First, check with the mutual fund company. They may track basis. ...
dependent3/7/2011
  Q: My son, 24, insists to claim himself. He made $700 W-2 income and nothing else. He live with me all ...
  A: JJ, Thanks for your question. If you meet all the criteria, he does not have the option to refuse. ...
Roth IRA Distribution3/6/2011
  Q: I had a Roth IRA for 13 years. I ended up in a divorce of which my ex-spouse received 50% ...
  A: Veda, Thanks for your question. You will pay taxes on the earnings only. In other words, if you ...
Commute ?3/6/2011
  Q: I have worked for a municipality in Colorado for 22 years where I also resided. Last year, I bought ...
  A: David, Under the IRS regulations, your tax home is Denver, even if you sleep under a bridge. The ...
social security benefits to children3/6/2011
  Q: Mr. Stancil, under what conditions is it required for a child who is receiving social security ...
  A: Debbie, Thanks for your question. The rules would be the same as for anyone who can be claimed as ...
Claiming a MET on income when it is activated3/6/2011
  Q: About 10 years ago my wife and I purchased a 2 year MET (Michigan Education Trust) for our son. We ...
  A: Joe, Thanks for your question. Withdrawals from such a plan are not taxable income unless they are ...
designated donations to church tax-deductible3/6/2011
  Q: If a church member designates monies to the pastor's salary - is this a tax deductible donation? I ...
  A: Deanna, Thanks for your question. The contribution designating money to the pastor is not tax ...
1099-B sale description3/5/2011
  Q: My 1099-B has proceeds from muni's in Box 2 and the transaction type says principal distribution. ...
  A: Jeff, William was unable to take your question, but I can give you an answer. It means that what ...
Health insurance prem & aid worker3/5/2011
  Q: You've been extremely helpful to me in the past and I really appreciate what you do and all your ...
  A: That amount would not trigger a gift tax unless the $1,000,000 lifetime exemption were used up. ...
Sole Proprietorship3/5/2011
  Q: Stancil, I worked for a university full time and contributed $16500.00 to my university sponsored ...
  A: Yan, Thanks for your question. You are limited to a total contribution of $16,500 to a ...
Health insurance prem & aid worker3/5/2011
  Q: You've been extremely helpful to me in the past and I really appreciate what you do and all your ...
  A: Jeff, Thanks for your question. Technically no. The brother must pay the expenses himself if he ...
1099-C and Deceased Taxpayer3/5/2011
  Q: My brother died on disability in Jan, 2008. His wife filed a joint return for 2008 to include the ...
  A: Bob, Thanks for your question. You said he had an insolvent estate, but the house passed to his ...
business tax filing 1st time3/4/2011
  Q: ""Hello, I have started a business (retail and Service) last June 2010. It is a Sole ...
  A: Mansoor, Thanks for your question. First, you don't get a credit for expenses, you get a ...
Second residence3/4/2011
  Q: My husband held a job for four years which was over 70 miles from our primary residence. He bought a ...
  A: Suzanne, Thanks for your question. Unfortunately not. When you husband changed jobs, the location ...
house sale3/4/2011
  Q: Good afternoon, I inherited a house from my father in 2007 when he passed away. I paid PA ...
  A: Diane, Thanks for your question. A couple of issues here. You do not get a deduction for the ...
Dependant Status3/4/2011
  Q: Can a TP who is sending money home to Mexico claim his wife and son, assuming they get an ITIN, who ...
  A: Jason, Thanks for your question. No, as non-resident aliens you cannot take a dependency exemption ...
How lawsuit award for casualty loss is counted3/4/2011
  Q: Our home, along with others in the neighborhood, was flooded in 2006 as a result of negligence by ...
  A: Sherri, Thanks for your question. The payment for reduced home value reduces your cost basis in ...
Form 21063/4/2011
  Q: My wife and I are trying to file our taxes using Turbo Tax Home & Business. During the "wrap-up" ...
  A: Jeff, Thanks for your question. It must be a glitch with your software, as I have successfully ...
Capital Gains on Real Estate3/3/2011
  Q: We have an income property we are selling. We have been taking depreciation on it for about 25 ...
  A: Bill, Thanks for your question. After the depreciation capture, any remaining gain is taxed at the ...
1099-MISC form3/3/2011
  Q: I relocated to MD in 2009 and my employer covered most of my relocation expenses (~2,600) after I ...
  A: Diego, Thanks for your question. Since it was based on reimbursements, it should not be taxable ...
Over The Road Truck Driver Tax Prep.3/3/2011
  Q: I am looking for someone in the Florida area who know all the tricks of trade regarding doing a Over ...
  A: Teofilo, Thanks for your question. I am fairly well acquainted with per diem issues for ...
sole proprietor and solo 401K3/3/2011
  Q: I am an independent contractor (single member LLC) and my question is about taxes. My spouse has a ...
  A: Ainee, Thanks for your question. Still report your business on Schedule C. You report your 401(k) ...
Overseas tax exemption3/3/2011
  Q: I work in Iraq as a contractor, I will be leaving early using my remaining leave time on the ...
  A: Mary Ann, Thanks for your question. Since you did not tell me when you went to Iraq, I can't ...
fund raising3/2/2011
  Q: My question is like Gregory's, only bigger: I'm a sole proprietor in NC. I started a program to ...
  A: Claude, Thanks for your question. I've answered over 24,000 questions, I can't remember what ...
income tax return for s corp3/2/2011
  Q: I filed for an Inc in November of 2010 but i did not start the business until feb 1 of 2011. Do i ...
  A: The IRS has no way of knowing if a corporation has any activity, therefore, if it is an active ...
Determining State Residency3/2/2011
  Q: I am having some difficulty in figuring out how I should file my state taxes, because I have ...
  A: Alexis, Thanks for your question. If Utah is your permanent residency, you need to file there as a ...
Who can claim dependent?3/2/2011
  Q: At his parents request, my 17 year old great nephew, Justin, lived with me from mid June until the ...
  A: Rebecca, Thanks for your question. Technically no one qualifies to take the dependency exemption ...
ACCOUNTABLE REIMBURSMENT3/2/2011
  Q: Can you tell me where I can find a detailed list of what is approved for reimbursments for a ...
  A: This is from IRS Publication 463 and is a pretty good summary of an accountable plan. For more ...
income tax return for s corp3/2/2011
  Q: I filed for an Inc in November of 2010 but i did not start the business until feb 1 of 2011. Do i ...
  A: Jer, Thanks for your question. A corporation must file a return for each year of its existence. ...
Hi John3/1/2011
  Q: I have an investment property that I purchased for $500,000.00 in 2007. In 2010 I executed a Deed In ...
  A: Since I do not know what the building will sell for, I have no way of knowing what your cancellation ...
Booster club Applying for 501 (C) 3 status3/1/2011
  Q: I am currently on the board of booster club for high school cheerleaders. I have been given the task ...
  A: Lisa, Thanks for your question. I presume that prior to now, the organization had no legal status ...
Follow up Question re RMD's & taxability3/1/2011
  Q: I recently cashed in a $10,000 EE bond which I held for the maximum 30 years. I was shocked to learn ...
  A: Irv, No, that's not a gimmick at all. Unfortunately the best opportunity to convert to a Roth ...
Phantom income from S-corp distributions3/1/2011
  Q: I am a minority shareholder of and S Corporation. I own restricted common stock with personal ...
  A: Lisa, Thanks for your question. Under an S Corp, you pay tax on the profits. This increases your ...
US Savings Bonds/529's & theirTaxability3/1/2011
  Q: I recently cashed in a $10,000 EE bond which I held for the maximum 30 years. I was shocked to learn ...
  A: Irv, Thanks for your question. Unfortunately not. A 529 plan is funded with after-tax dollars, ...
inherited 401k account2/28/2011
  Q: I inherited a 401k account from my step-mother who recently passed away. She resided in RI and I ...
  A: Randy, Thanks for your question. Because it is a tax-deferred qualified retirement plan, ...
Question about long-term lease with large pharmacy chain and demolition of original building.2/28/2011
  Q: I have a client whom purchased a portion of a shopping center a few years ago which already ...
  A: Alfredo, Thanks for your question. I presume this is a sale/lease arrangement in which they built ...
Tax Credits/Exemptions2/28/2011
  Q: Can we claim any of his living expenses on our tax return? He is totally our responsibility. Can ...
  A: D, Thanks for your question. Only required books and course materials in addition to tuition are ...
tax home vs physical test2/28/2011
  Q: What is different between tax home and physical test. Can I say if meeting 330 full days physical ...
  A: Tina, Thanks for your question. Your tax home is the area of your main place of business. This is ...
Tax Refund - Legal Question2/28/2011
  Q: Mr. Stancil, Thank you for your time and help. I am disabled (but AM able to sign my name), and ...
  A: Marie, Thanks for your question. No that is not legal. There is no way for you to obtain the ...
One spouse working abroad and one in the US2/28/2011
  Q: Can you please tell me how the foreign earned income exclusions and deductions work if one spouse is ...
  A: Elizabeth, Thanks for your question. The foreign earned income exclusion applies to an individual ...
NJ Tax on pension earned in Penna.2/27/2011
  Q: My wife and myself moved to NJ from Pa, and receive pensions from our PA state civil service jobs. ...
  A: Bill, Thanks for your question. Most likely, her contributions were taken out pre-tax. If this is ...
W22/27/2011
  Q: I am a recent widow, age 73. I have no dependents. My annual income is $12,624.00 from a pension ...
  A: Heather, Thanks for your question. Assuming that the numbers you gave me are your total income and ...
Early withdraw of Ira funds and tax deferrment2/27/2011
  Q: Stancil. Thank you in advance for your time taking my question. My sister has been involved in a ...
  A: Linda, Thanks for your question. Unfortunately there is no deferment on paying the taxes. I don't ...
tax home test for foreign earned income exclusion2/27/2011
  Q: I have some questions about the qualification of Foreign Earned Income Exclusion. How to prove "TAX ...
  A: Tina, Thanks for your question. To file the return, you do not have to prove it. Only in the ...
Leaving the country2/27/2011
  Q: My family and I have decided to move out of the country at the end of this year. How can we file our ...
  A: Jenny, Thanks for your question. If eligible, you would file Form 2555 as a part of your 1040. ...
College expenses2/27/2011
  Q: i am the non custodial parent of a first year college student. My question is, I am the only parent ...
  A: Leeann, There are several credits or deductions available, each depends on income and the student ...
Ministerial taxation2/26/2011
  Q: I am a pastor at a church, but received a W-2, it was my understanding that I should receive a 1099, ...
  A: Adam, Thanks for your question. As a minister you are a dual-status employee - considered an ...
Volunteer firefighter stipend taxes2/25/2011
  Q: My son is a volunteer firefighter who receives a quarterly reimbursement based on a per-call answer ...
  A: Gina, Thanks for your question. Yes, he does have to pay income tax as well as self-employment ...
Pastor housing income2/25/2011
  Q: I am the pastor of a church in Jacksonville, Florida. I have taken a church check each month to a ...
  A: Adam, Thanks for your question. In order for funds to count as a housing allowance, it must be ...
Hi John2/25/2011
  Q: I have an investment property that I purchased for $500,000.00 in 2007. In 2010 I executed a Deed In ...
  A: This is not a normal situation. I do not know whey they will not be sending a 1099-C. I would ...
Hi John2/25/2011
  Q: I have an investment property that I purchased for $500,000.00 in 2007. In 2010 I executed a Deed In ...
  A: Genaro, Thanks for your question. The sale price is the amount of cancelled debt. However, a ...
Indendent vs. Dependent2/24/2011
  Q: I am 19 years old and since graduation in June of 2010, I moved out of my parent's home into that of ...
  A: There is not tax status as "independent." If you are eligible to take your own personal exemption, ...
Clothing donations2/24/2011
  Q: We donated a large quantity of clothes and have a list of the items donated along with a signed ...
  A: Jen, Thanks for your question. The rules specify that the amount requiring an appraisal is $5,000 ...
Wiring money2/24/2011
  Q: I am a U.S citizen who has been living and working overseas in South Korea for the past 10 years. I ...
  A: Normally, the IRS could look at past returns that have been filed and determine the likely source of ...
Wiring money2/24/2011
  Q: I am a U.S citizen who has been living and working overseas in South Korea for the past 10 years. I ...
  A: Erica, Thanks for your question. You are mixing two issues. You are required by law to report and ...
Documentation for charitable contributions--out of pocket expenses and contributions of items other than cash2/24/2011
  Q: 1. My husband incurred out of pocket expenses in the course of volunteer work. In the first case, ...
  A: Mary, Thanks for your question. 1. Those receipts that you have should be sufficient. 2. To do it ...
401k withdrawal2/24/2011
  Q: I was laid off from my job in May 2010 and am still unemployed. I was forced to withdraw funds from ...
  A: Harold, Thanks for your question. Probably not. You will likely owe tax on the withdrawal at your ...
incarcerated spouse2/24/2011
  Q: Stancil, My husband and I have been married for over seven years and have two daughters. He is ...
  A: Ginette, Thanks for your question. First, you should know that you do not have to file as married. ...
Can a Volunteer be 1099'd?2/23/2011
  Q: As a parent that has a skill(I am a Chef) I offered to set up a lunch program for the small private ...
  A: Leigh, If you do not provide your SS#, they are required to initiate backup withholding of 20%. ...
Can a Volunteer be 1099'd?2/23/2011
  Q: As a parent that has a skill(I am a Chef) I offered to set up a lunch program for the small private ...
  A: Leigh, Thanks for your question. If you get a 1099 you are no longer a volunteer. The entire ...
lottery winnings as gift2/23/2011
  Q: My mother won $3000 on a scratch-off lottery ticket and gave the entire amount to my niece for ...
  A: Anthony, Thanks for your question. She will have to report the winnings on line 21 of her 1040 and ...
State Tax on IRA Withdrawal2/23/2011
  Q: When I retired, I rolled my pension and 401K into a traditional IRA; most of the funds in the IRA ...
  A: Lawrence, Thanks for your question. IRA's are taxed in you state of residence when withdrawn. ...
Rental property repair expenses2/23/2011
  Q: can you please tell me if I am allowed to claim any repair expenses for a house I bought as a rental ...
  A: Magdalena, Thanks for your question. Yes, you can deduct the repairs, but you must be careful to ...
inherited stocks2/23/2011
  Q: i inherited stock from my father in 2008 i cashed them out for 25,600 and paid 3500 in witheld tax. ...
  A: Timothy, Thanks for your question. Because you did not report the sale, the IRS assumes a zero ...
What is considered "income" on Form 1041?2/23/2011
  Q: I am executor for my Mom's Estate (she passed in 2010 in Georgia), and have already filed her final ...
  A: Ed, Thanks for your question. Income is dividends, interest, or gains on the sale of property. ...
deeding out property from subchapter S2/23/2011
  Q: There are 10 members in my family and we each own 10 percent of a Subchapter S. The subchapter S ...
  A: Beth, Thanks for your question. You should have been in my class tonight. That's what we talked ...
Mortgage origination fee deduction2/23/2011
  Q: I purchased a home in 2010 but when I got my IRS form 1098 from the mortgage company the box 2 for ...
  A: RL, Thanks for your question. Frequently a mortgage broker who arranges the loan receives an ...
Married Filing Separately2/22/2011
  Q: Last year I received a past wages settlement and have been budgeting all year to pay the taxes due. ...
  A: Joe, Thanks for your question. If you file a separate return, you are not responsible for the tax ...
Taxable Inheritance2/22/2011
  Q: My wife's mother died last year and left $100,000 in a Schwab investment account. The account has ...
  A: Bill, Thanks for your question. It doesn't matter how you receive it, it does not change the ...
LLC- Draws- Earned Income Q2/22/2011
  Q: In 2010 I opened an LLC and I am it's only employee no one else in the LLC, but me. In 2010, I ...
  A: A draw is nothing more that you withdrawing money from the business for personal use. You are not ...
form 88252/22/2011
  Q: i have a partnership which owns a two family. how do i report the days of fair market value rental ...
  A: Bern, Thanks for your question. Not necessarily. However, if it is not a rental property, you ...
State of AZ Form 1099-G2/21/2011
  Q: I received a form 1099-G from the Arizona Department of Revenue. It is for the tax year 2009 in the ...
  A: Tina, Thanks for your question. If it is just a state refund and you took the standard deduction, ...
EFILING2/21/2011
  Q: If I work at a tax firm and also have a sole proprietorship at home, are the amount of returns filed ...
  A: Les, Thanks for your question. As I understand it, the number is based on the number of returns ...
SELLING FARM - BUYING NEW FARM -TAXES2/21/2011
  Q: I AM LOOKING AT SELLING ONE FARM AND USING THE MONEY TO PURCHASE ANOTHER FARM. I WANT TO TAKE MY ...
  A: Mark, Thanks for your question. You cannot transfer the capital gains from the sale of one farm to ...
tax on trust disbursement2/21/2011
  Q: My father died in July, 2010 and my mother is in a skilled nursing facility with dementia, so we ...
  A: Jill, Thanks for your question. No, gifts are not taxable income. Since the house was sold for a ...
Accounting for non property specific expenses in real estate LLC2/20/2011
  Q: I am in the process of preparing my income statement for the tax filing for my rental real estate ...
  A: 1. That is the rule, rather than the exception, for LLC's that have real estate activities. Nothing ...
1099 vs W22/20/2011
  Q: I have been working as a contractor, paid a daily rate only when I work for the last year. I was ...
  A: Bill, Thanks for your question. You cannot file as a contractor, but will include these earnings ...
claiming children2/20/2011
  Q: my ex claimed our daughter before i did for 2010 even though she was with me more than half of the ...
  A: Gregg, Thanks for your question. If the divorce agreement specifies that you take the dependency ...
1099-A reporting2/20/2011
  Q: My question is in regards to a principal residence. The owner abandoned her home, turning it over ...
  A: Brian, Thanks for your question. This is a a primary residence. The loss is not deductible. It ...
Accounting for non property specific expenses in real estate LLC2/20/2011
  Q: I am in the process of preparing my income statement for the tax filing for my rental real estate ...
  A: The Schedule E is for expenses related only to the rental activities. The corporate level expenses ...
Totaling the tax lose on line 192/20/2011
  Q: When totaling the amounts on 1040 Pg 1. Are all the ammounts from line 1-22 all totaled including ...
  A: Fred, Thanks for your question. You total the amounts from line 1 through 21, deducting any ...
American Opportunity Credit2/20/2011
  Q: My son had not completed his 4-year degree as of Jan 1, 2010. During 2010 he completed his ...
  A: John, Thanks for your question. The American Opportunity Tax Credit is available for the first ...
Mileage Reimbursements2/20/2011
  Q: I have an S-Corp and pay myself a salary as an employee. I have a home office and put in alot of ...
  A: Kevin, Thanks for your question. Yes, you can reimburse yourself from the corporation for your ...
Taxable living allowance vs per diem2/19/2011
  Q: I am a UK citizen, working in Houston for a Houston company with a 5 year E2 visa, I receice an ...
  A: Michael, Thanks for your question. That is partially correct. The rule is that if your assignment ...
S-Corp Officer/shareholders compesation2/19/2011
  Q: S-Corp Officer Compensation when husband is 100% shareholder and also and officer, and wife is an ...
  A: Not really, they look at individuals. The key is not that you a a couple received compensation, but ...
Personal Svc contract for Medicaid2/19/2011
  Q: John: My father in law who is 86 and now resides in a nursing home. He had an attny write up a ...
  A: Barbara, Thanks for your question. The bottom line here is that the money is listed as ...
S-Corp Officer/shareholders compesation2/19/2011
  Q: S-Corp Officer Compensation when husband is 100% shareholder and also and officer, and wife is an ...
  A: ib1kid, Thanks for your question. To address your questions in reverse order, I don't know why you ...
Condo Investment2/19/2011
  Q: In 2010 we purchased a condo for investment. What items from the HUD-1 can we write off on our ...
  A: Danny, Thanks for your question. The only deductible items are property taxes and interest. The ...
Reporting Sale of Residential Rental Property Aquired via a Life Estate2/19/2011
  Q: In September 2009, our mother who owned a two family home, where she occupied one apartment and ...
  A: Joe, Thanks for your question. Report the rental income and the expenses associate only with the ...
Adoption Tax Credit2/19/2011
  Q: I am hearing a lot of talk about passing spending cuts in the House and the Senate. My wife and I ...
  A: Dave, Thanks for your question. The refundable aspect of the credit expires at the end of 2012. ...
IRA Tax2/19/2011
  Q: William, My sister was listed as benificiary of my deceased father's IRA and a large check was sent ...
  A: Bonnie, William couldn't handle your question but I can give you an answer. From a tax standpoint, ...
1099-Mic2/19/2011
  Q: I did a small amount of freelance work on the side last year and this year. When I prepared my ...
  A: Emily, Thanks for your question. You are, I presume, a cash-basis taxpayer like most individuals. ...
Form 1041 Capital Loss vs. Non taxable investment income2/18/2011
  Q: If an Trust has non taxable income (ie. municipal bonds) and also incurs capital losses, are the ...
  A: Steve, Thanks for your question. The capital loss can carry forward to the beneficiaries. This is ...
Form W2, Box 12, Letter C2/18/2011
  Q: My question has to do with the W2 Form, Box 12, Letter C and then there is a $ amt in the box. My ...
  A: Rebecca, Thanks for your question. That is the value of premiums paid on group-term life ...
Tuition Reimbursement over $5,2502/18/2011
  Q: I am pursuing a Masters degree that improves my current job skills. My previous employer had ...
  A: Matt, Thanks for your question. In the current political environment it is difficult to make any ...
Dependents2/18/2011
  Q: My neighbor just electronically filed his taxes. He has a 21 year old daughter and her infant son ...
  A: Tim, Thanks for your question. If the daughter is not claiming him and if the father of the child ...
1099-A abandonment of prop2/18/2011
  Q: I am trying to help my son with his taxes and I am concerned about this 1099-A form he received. He ...
  A: Karen, Thanks for your question. A 1099-A is not evidence of a cancellation of debt. It is issued ...
1099-R questions2/18/2011
  Q: I was laid off in 2010. I have two 1099-Rs that have an amount in box 2a equal to the total amount ...
  A: Rick, Thanks for your question. You can't change the code, but you should show the amount of the ...
child exemption2/18/2011
  Q: My wife and i have claimed her 20yr old daughter the past 8 yrs. She is a fulltime college student ...
  A: Joe, Thanks for your question. Assuming she lives with you (or comes to your house when school is ...
K-1 Tax Form2/17/2011
  Q: My father died in 2008. We did partial dispursements in 2008 and 2009 of some money. Total worth of ...
  A: Bev, Thanks for your question. You should have filed an estate income tax return, Form 1041 for ...
filing seperately2/16/2011
  Q: i wanted to know if filing seperately would be better considering our high incomes. my wife works ...
  A: Jer, The business portion is not itemizing. That is a Schedule C deduction which has nothing to do ...
Selling a home2/16/2011
  Q: I am unclear on a home I sold in Nov 2010. I inherited the home and it was free and clear. I sold ...
  A: If you elect out of the installment method the only reporting you do each year would be the interest ...
depreciation2/16/2011
  Q: I depreciated my remodel repairs on my rental house in 2009 and last year I remodeled it again and ...
  A: From your prior questions, I had assumed that the renovations were structural. Items such as ...
When to file 10412/16/2011
  Q: I've been probating my mother's estate for three years, and will soon have it sold. I know the forms ...
  A: You should have been filing a 1041 each year based on the taxable year of the estate. You say she ...
Selling a home2/16/2011
  Q: I am unclear on a home I sold in Nov 2010. I inherited the home and it was free and clear. I sold ...
  A: Josh, Thanks for your question. If you elect the installment method, you would only pay tax based ...
1099 MISC and Housing Allowance2/16/2011
  Q: I have read your previous answer in 2006 regarding 1099 MISC and housing allowance for a minister. I ...
  A: Amanda, Thanks for your question. He can only claim a housing allowance if it is designated in ...
When to file 10412/16/2011
  Q: I've been probating my mother's estate for three years, and will soon have it sold. I know the forms ...
  A: Dana, Thanks for your question. The estate tax year should have been established with the initial ...
tax deduction for loss & theft?2/16/2011
  Q: We had 2 storage units holding our household goods while having a home built. One was broken into ...
  A: Carol, Thanks for your question. The theft losses definitely qualify as a casualty loss for tax ...
What are the specific implications of my" taxable event"?2/16/2011
  Q: Here is my situation: I currently have a non-retirement mutual fund account in the amount of ...
  A: Kristen, Thanks for your question. All that means is that you will pay tax on the increase in ...
LLC's2/16/2011
  Q: John, I am part owner of an LLC. The LLC was formed as part of the launch of a website. My ...
  A: Harrison, Thanks for your question. You should receive a K-1 form from the LLC. Any such form ...
depreciation2/16/2011
  Q: I depreciated my remodel repairs on my rental house in 2009 and last year I remodeled it again and ...
  A: Frank, Thanks for your question. You have a new remodeling project, you must list it as a new ...
Form 1099-A2/16/2011
  Q: I had a home that was foreclosed on back in 2010 and I received a 1099-A form from the lender. The ...
  A: Jeremy, Thanks for your question. Since you do not appear to meet the criteria to exclude the debt ...
filing seperately2/16/2011
  Q: i wanted to know if filing seperately would be better considering our high incomes. my wife works ...
  A: Jer, Thanks for your question. Normally, it is more advantageous to file a joint return, but you ...
Refinanced my rental property's mortgage2/16/2011
  Q: Last year (June, 2010) I refinanced the mortgage on my rental property. What fees can be deducted? ...
  A: Steve, Thanks for your question. Basically all the fees associated with the refinancing can be ...
1099A question2/16/2011
  Q: John, My husband and I just received a Acquistion or Abandonment of Secured Property 1099A form ...
  A: Jennifer, Thanks for your question. Ch 7 bankruptcy will not allow you to exclude the cancellation ...
Clinical Research as a sole form of income2/15/2011
  Q: I do clinical research as my sole source of income. The majority of the clinics put the amount in ...
  A: Paul, Thanks for your question. It doesn't really matter from your standpoint whether they put it ...
Deducting health insurance premium2/15/2011
  Q: I am full-time graduate student. I also do freelance work part-time during the school year and ...
  A: Katrina, Thanks for your question. I did some research on this and did not find anything ...
forclosure2/15/2011
  Q: My Primary house was forclosed on in september of 2010. The house was not sold it was transfered to ...
  A: You should get a 1099-C for 2011 as the house was not sold until that year. You will possibly get a ...
forclosure2/15/2011
  Q: My Primary house was forclosed on in september of 2010. The house was not sold it was transfered to ...
  A: Brian, Thanks for your question. You cannot deduct a loss on the sale or foreclosure of your ...
IRS Ruling 2008-292/15/2011
  Q: Since severance payments are generally not necessarily supplemental or additional (in reality to ...
  A: Ani, Thanks for your question. Rev Ruling 2008-29 is the most recent IRS ruling on this. If the ...
Contract Labor2/15/2011
  Q: I will be working a part-time job along with my full time job as a collector for a finance company ...
  A: Kim, Thanks for your question. You will need to report the earnings and expenses on Schedule C and ...
S-corp sale of business2/15/2011
  Q: On Nov 30 2010 we sold our corporate assets(building and F&F) We are filing the form 8883 with our ...
  A: Richard, Thanks for your question. You have not sold the business - you sold the assets. You ...
1099C date issue2/15/2011
  Q: John: I had an approved short sale on a commercial building that housed my business at one point. ...
  A: Andy, Thanks for your question. You should report the cancelled debt in the year in which the ...
Independant Contractor - Vehicle Tax deduction2/14/2011
  Q: I am an Independent Contractor (teacher of the handicapped) and I use my vehicle for work . This ...
  A: Mike, Thanks for your question. If you have been taking the standard mileage rate in the past ...
qualifying widower2/14/2011
  Q: my wife passed away in 2010. I've been doing HOH for the last 3 years since we didn't live together. ...
  A: Rich, Thanks for your question. No. Since you were not qualified to file a joint return in the ...
tax break2/14/2011
  Q: .i did a google today about tax breaks for 2011. it took me to energy star, which said that things ...
  A: James, Thanks for your question. There are tax credits for certain energy-efficient improvements ...
1041 for Irrevocable Trust2/14/2011
  Q: My father created an irrevocable trust in 1994 and died in 2006. The only trust asset was a variable ...
  A: A trust reports the income, but can have the beneficiaries pay the tax regardless of what is on the ...
1041 for Irrevocable Trust2/14/2011
  Q: My father created an irrevocable trust in 1994 and died in 2006. The only trust asset was a variable ...
  A: Lynn, Thanks for your question. Yes, you must file a K-1 for each beneficiary even though the ...
Am i reqired to pay income tax on $15,000.00 in 2010 from my share of sale of deceased mom's home. She died in 20102/14/2011
  Q: Am I required to pay federal income tax on my share of the sale of my mom's home . . .$15,000. She ...
  A: Pat, Thanks for your question. You must pay tax on the GAIN from the sale of the home. Your basis ...
Non profit church related question2/13/2011
  Q: I have been a member of my church for 12 years. I am also a paid employee as church organist/worship ...
  A: Kari, Thanks for your question. There is no tax reason that you offering lessons at the church ...
Baseball non-profit keeping fundraising money2/13/2011
  Q: Recently, I just finished working a 8 week fundraiser to raise money for my son's baseball team and ...
  A: Leonard, Thanks for your question. You are in no position to redirect the money. It is ...
Qualifying child2/13/2011
  Q: I lived all year with my brother her wife and their small child. My AGI is higher than theirs. My ...
  A: Ron, Thanks for your question. I doubt if you qualify. First, you can only take the exemption as ...
Inheritance/estate tax2/13/2011
  Q: If my parent puts my name on the deed to the house before she dies,will I still have to pay ...
  A: Michael, Thanks for your question. First, a clarification. Estate taxes are paid by the estate. ...
rental property2/13/2011
  Q: I have a rental property in VA but reside in MI. I have never shown a profit on this property. ...
  A: Karen, Thanks for your question. As a resident of MI, you must report all your income on your MI ...
Expenses on property2/12/2011
  Q: I have a 1099-S from a sale of some ground we bought many years ago. The ground is mostly timber ...
  A: There is no difference. By selling a house, I presume you mean selling your personal residence. In ...
Mary Kay business to hobby?2/12/2011
  Q: I have recently read on the Internet where a lady was audited by the IRS and told her Mary Kay ...
  A: Frank, Thanks for your question. A complex issue, to be certain. Each case is determined on an ...
sale of residential rental real estate2/12/2011
  Q: I sold a piece of residential rental real estate (that I owned for many years) in 2010 for a loss. I ...
  A: Sue, Thanks for your question. If the house was your personal residence you cannot deduct the ...
Hobby Income2/12/2011
  Q: My husband drives a race car during the summer months on weekends. This is a hobby. We have never ...
  A: Kerry, If it is a truly a hobby, you are doing the correct thing by including it on line 21. If ...
sale of real estate asset tax2/12/2011
  Q: I have owned a income property house for 14 years. It was for investment, never rented. I did not ...
  A: Investment interest expense is deductible if you have investment income equal to or greater than the ...
sale of real estate asset tax2/12/2011
  Q: I have owned a income property house for 14 years. It was for investment, never rented. I did not ...
  A: Kathy, Thanks for your question. The improvements would be an addition to your basis. The ...
LLC Rental property2/11/2011
  Q: My sons and I have formed an LLC. I loaned the partnerhip the monies to buy 4 rental properties. I ...
  A: Diana, Fees or costs that are associated with a particular property go as an expense of that ...
Divorce - Mortgage Interest & Property Tax Deduction2/11/2011
  Q: I was divorced in May 2010. The divorce decree required that I pay my former spouse $2000 cash upon ...
  A: Mike, Since you made the payments and were legally liable to do so, you can take the mortgage ...
LLC Rental property2/11/2011
  Q: My sons and I have formed an LLC. I loaned the partnerhip the monies to buy 4 rental properties. I ...
  A: Diana, Thanks for your question. Unless you hold a security interest (recorded at the court house) ...
Tax on IRA2/11/2011
  Q: I would like to ask a tax question on behalf of my mother: She will start collecting social security ...
  A: Tricia, Thanks for your question. IRA is taxed as ordinary income, the rates does depend on filing ...
W4 form fraud?2/11/2011
  Q: I recently received my W2 form from my employer. I put in the predictor thinking I would be ...
  A: Tosha, Thanks for your question. Yes, you have to pay the taxes. Legally, you have suffered no ...
1099C2/11/2011
  Q: I contracted with a builder in 2005 to construct a new investment home. The builder never completed ...
  A: Wil, Thanks for your question. First, you don't have much debt cancellation income. You are taxed ...
estate taxes2/11/2011
  Q: John - You've been very patient with me and if you want to quit I'll understand. This is a followup ...
  A: Sorry that I steered you wrong on a technicality. Capital losses do not go on 4a-c, but on box 11 ...
Deduct insurance premiums2/11/2011
  Q: We had an unusually high amount of medical bills this year. We were wondering if we can claim the ...
  A: Pamela, Thanks for your question. It depends. If your insurance premiums were deducted pre-tax, ...
self employment tax necessary?2/11/2011
  Q: For 8 years i worked as the director of a small religious non-profit organization (not a church) in ...
  A: Jon, Thanks for your question. You must be ordained, licensed, or commissioned in order to be a ...
State Tax and 10 Percent Penalty2/11/2011
  Q: I withdrew my teacher retirement pension/fund in December 2010 and the 20 percent Federal tax was ...
  A: The federal tax will far exceed the 10% rate. Depending on your filing status and total taxable ...
business tax law2/11/2011
  Q: my question is that I work for a small business and receive the 1099 MISC. The situation is the ...
  A: Thu, Thanks for your question. You have a couple of problems. If you are an employee of the firm, ...
Per diem being taxed2/11/2011
  Q: I have been employed by a company for over a year and working in the same location which is 600 ...
  A: Randy, Thanks for your question. Since it lasted over a year, your per diem from day one is ...
Per Diem Claim2/11/2011
  Q: Ok, this is my first time filing taxes while working with these conditions and type of job. I ...
  A: Jeff, Thanks for your question. On Form 2106 show the allowable amount of $51 x number of days as ...
1099 Received for Money Never Received2/10/2011
  Q: A company sent me a 1099 form for monies that were never received. I have checked both my accounts ...
  A: David, Thanks for yoru question. It appears that you have done all you can do about it. At this ...
W2 and 1099 to increase return?2/10/2011
  Q: I am a working musician. I received W-2's from several people, but also did some freelancing work. ...
  A: Brian, Thanks for your question. It is all integrated into one return. Standard ...
Premature dist from ROTH2/10/2011
  Q: I'm 40, and my ROTH is over 5 years old. I took a $10k distribution to have cash reserves, and ...
  A: Robert, Thanks for your question. Withdrawals from a Roth are deemed to come first from ...
Moving Expense on 1099-MISC2/10/2011
  Q: in 2010 I changed my job from one state to another. My new employer paid me $3000 for relocation ...
  A: June, Thanks for your question. Your employer should have included it on the W-2. It is not ...
w4 withholding2/10/2011
  Q: i was wondering what i can do about my ex-employer not adhering to the w4 withholding allowances i ...
  A: Christy, Thanks for your question. Withholding for income tax may or may not be greater than the ...
Adoption Credit Carryover2/10/2011
  Q: I adopted a son (non-special needs) in 2004 (finalized that year). Since then I have carried over ...
  A: Paul, The language you quote is somewhat vague. I interpret it to mean that the five year limit is ...
housing allowance2/10/2011
  Q: I'm a pastor with a $22k salary and $26k housing allowance. I file with Turbo Tax and after entering ...
  A: Ryan, Thanks for your question. The SE tax is due on both your salary and hosing allowance. I ...
sub s and personal 2009 taxes2/10/2011
  Q: I just filed (and sent in my 2009 Sub-S corp.(4 months late with extension) and personal taxes ...
  A: Ed, Thanks for your question. First, I am somewhat puzzled that you say you have a refund coming ...
Virginia and NC taxes2/9/2011
  Q: I lived in NC, moved to VA during the year. I continued to work for the same company and they ...
  A: Linda, Thanks for your question. You will file as a part-year resident in both states. You will ...
HOUSING ALLOWANCE2/9/2011
  Q: Is housing allowance paid to a minister taxable only as self employment not income tax
  A: Jeff, Thanks for your question. Housing allowance is not subject to income tax and is subject to ...
Capital Gain on home2/9/2011
  Q: John, my siblings and I were listed on a Quick Claim Deed on mom's home that we recently sold ...
  A: Sandie, Thanks for your question. If you had owned the house for more than a year, you will be ...
Living Expenses/Mileage Deduction2/9/2011
  Q: I live in Virginia and worked in a town about 115 miles away from my tax home. Obviously, this was ...
  A: Gary, Thanks for your question. The rent and mileage are not deductible. From an IRS standpoint ...
STUDENT LOANS EMPLOYER PAID2/9/2011
  Q: Can my church pay one of it ministers student loans at the 5250 amount. How is that taxable to the ...
  A: Jeff, Thanks for your question. There is no law preventing them from doing so. However, since it ...
2009 Return error2/9/2011
  Q: My husband & I were married last year. He is retired on 100% disability and I work full-ime. How ...
  A: Linda, Thanks for your question. It depends on what type of disability income he has, on your ...
US Military Married to Foreign Military2/8/2011
  Q: I had asked the following question; I'm helping my son complete his taxes and not sure how to treat ...
  A: Juan, Thanks for your question. If he files a joint return with her, she must have an ITIN or SSN. ...
Mileage deduction for son2/8/2011
  Q: We gave my son a car that is titled in my name. He has 12,400 legitimate work related miles for ...
  A: He can deduct the mileage, based on what you have said. I really can't answer the question about ...
Roth IRA distribution for qualified education expenses2/8/2011
  Q: I am thinking to do an early distribution from my ROTH IRA. I am not 59.5 years old and I have not ...
  A: There are ordering rules that determine what is withdrawn when the entire balance is not withdrawn. ...
Roth IRA distribution for qualified education expenses2/8/2011
  Q: I am thinking to do an early distribution from my ROTH IRA. I am not 59.5 years old and I have not ...
  A: Will, Thanks for your question. You can withdraw the funds without penalty, but since the account ...
1099-Cancellation of Debt2/8/2011
  Q: In 2010, I received a loan modification under the Home Affordability Program for my primary place of ...
  A: George, Thanks for your question. Since it was your main home you will not have to pay taxes on ...
Disabled child giving parents rent/room and board from SSI2/8/2011
  Q: I know you recently answered a similar question from another person, but we are really unsure what ...
  A: Tim, Thanks for your question. It is not taxable income to you. He is merely helping to pay his ...
Gifted house in Montana2/8/2011
  Q: My boyfriend's father wants to buy him a house in Montana. The sellers of the house are asking ...
  A: Amanda, Thanks for your question. Gifts are not taxable income so he will not have any taxes to ...
Moving Expenses2/7/2011
  Q: I retired from Civil Service in March of 2010 and relocated from Mississippi to Texas at the end of ...
  A: Paul, Thanks for your question. Certainly! Since your wife has a change of employment, the move ...
Adoption Tax Credit2/7/2011
  Q: In 2009 we hired an agency (Agency 1) to adopt a child and had a failed adoption in Sept 2009, ...
  A: Denise, Thanks for your question. The problem that you have is that the law now states that the ...
1099's2/7/2011
  Q: If I work for a company but they do not withhold social security or medicare, and send me a 1099 ...
  A: Tim, Thanks for your question. Yes. You would report the earning on Schedule C and take any ...
401K Educational Gift2/7/2011
  Q: I am 67. I would like to pay for my childrens' college tuition for years 3 and 4, along with other ...
  A: Jim, Thanks for your question. Gifts to or on behalf of specified individuals cannot be used as a ...
Mineral Interest Income2/7/2011
  Q: John, my family owns a 50% mineral interest for some 2000 acres of farmland in ND which received ...
  A: The date is not an issue, they paid you in 2010, so the 1099 should reflect that payment. Schedule ...
Mineral Interest Income2/7/2011
  Q: John, my family owns a 50% mineral interest for some 2000 acres of farmland in ND which received ...
  A: John, Thanks for your question. Report it on Schedule E. Since that is also the schedule for ...
deed in lieu2/6/2011
  Q: Five years ago I bought an unimproved beach lot for $295,000 with a loan for $275,000. Today that ...
  A: Lisa, Thanks for your question. You will owe tax on the difference in what you owe and the fair ...
Acquisition or Abandonment of Secured Property2/6/2011
  Q: I have read your answer stating to input the numbers in line 21 (other income) if the balance owing ...
  A: Ben, Thanks for your question. If you have a higher value than the mortgage, you do not have a ...
401k cash out2/6/2011
  Q: Background: retired, age 62, cashed out 401K, put $60,000 (of $101,000) into 5 CD's. Do CD's ...
  A: Jenny, If, by reinvenstment, you mean a rollover of your retirment plan, it is only a rollover if ...
State Tax and 10 Percent Penalty2/6/2011
  Q: I withdrew my teacher retirement pension/fund in December 2010 and the 20 percent Federal tax was ...
  A: Stephanie, Thanks for your question. The 1099-R that is issued by the pension fund should have a ...
Should I have received a W22/5/2011
  Q: I moved from CT to SC in April. I work in NC. My NC employeer sent me a W2 got both CT and NC. ...
  A: Denise, Thanks for your question. I can only speculate about why this happened, but my guess would ...
estate taxes2/5/2011
  Q: John - You've been very patient with me and if you want to quit I'll understand. This is a followup ...
  A: Paul, Forget the 250,000 exclusion for now. If that's the route you take, there is no effect on the ...
acquisition or abandonment of secured property after filing2/5/2011
  Q: I foreclosed in 2010 but had not received any information from BofA regarding the next steps to take ...
  A: If you have not refinanced and taken money out, the COD income is not taxable. You probably cannot ...
acquisition or abandonment of secured property after filing2/5/2011
  Q: I foreclosed in 2010 but had not received any information from BofA regarding the next steps to take ...
  A: James, Thanks for your question. You will need to file an amended return, Form 1040X. The ...
1099 issued to my son2/4/2011
  Q: My son is 16 and races dirt bikes . He is sponsored by a motorcycle manufacturer and also by ...
  A: Rhonda, If the product or money is availale to him, it would be included on the 1099 whether or not ...
income2/4/2011
  Q: The person who pay me will put my social security. For deduction in babysitting. My Accountant told ...
  A: Rob, Thanks for your question. That is not true. You have income, you must file and pay income ...
1099 issued to my son2/4/2011
  Q: My son is 16 and races dirt bikes . He is sponsored by a motorcycle manufacturer and also by ...
  A: Rhonda, Thanks for your question. A 1099 must be issued for anything of value that is received (in ...
Estate taxes2/4/2011
  Q: I was executor for the estate of a man who died in 2008. His estate was valued at about $200,000 ...
  A: Paul, The problem is two-fold. First, there is a 1099-S issued to the estate. If that is not ...
acquisition or abandonment of secured property2/4/2011
  Q: My husband and I filed Chapter 11 bankruptcy in 2/10. We just received an acquisition or ...
  A: That changes things significantly. Chapter 13 bankruptcy does not exempt you from being taxed on ...
Tuition assistance and filing taxes2/4/2011
  Q: my employer pays the institution directly and I have no out of pocket cost. I received the tax form ...
  A: Jessica, Thanks for your question. I presume you mean Form 1098-T and Strayer is your university. ...
flight attendant deductions2/3/2011
  Q: Good morning sir. I was displaced to another crew base in 2008. Instead of moving, I chose to ...
  A: When you are in Ft. Lauderdale, your expenses are not deductible. Your tax home is Ft. Lauderdale. ...
Shortsale w/COD2/3/2011
  Q: Mr. Stancil, your help has been very valuable so far in helping me navigate this complex maze that ...
  A: Bob, Did a little research. Even if you only own one rental property the IRS treats that as a ...
Estate taxes2/3/2011
  Q: I was executor for the estate of a man who died in 2008. His estate was valued at about $200,000 ...
  A: Paul, Thanks for your question. Estates under $2,000,000 in 2008 do not have to pay estate tax. ...
income2/3/2011
  Q: The person who pay me will put my social security. For deduction in babysitting. My Accountant told ...
  A: Rob, Thanks for your question. That is not true. You have income, you must file and pay income ...
flight attendant deductions2/3/2011
  Q: Good morning sir. I was displaced to another crew base in 2008. Instead of moving, I chose to ...
  A: James, Thanks for your question. No, when you were assigned to the new crew base, your tax home ...
Taxes2/3/2011
  Q: Me and my wife are filing a joint return. I work full time and she is a student and has a work study ...
  A: Jeremiah, Thanks for your question. Yes, you need to include her information. You owe money ...
Earned income tax credit2/3/2011
  Q: My husband and I had a baby in December 2010. He is self employed and received a 1099 Misc in the ...
  A: Misty, Thanks for your question. Since I don't use Turbo Tax and I don't have your complete ...
1099-a acquisition or abandonment of secured property2/3/2011
  Q: I completed bankruptcy on my home in 2009, today I received the above form, the outstanding balance ...
  A: Karen, Thanks for your question. There are three ways to avoid taxation on the cancellation of ...
1099 misc2/3/2011
  Q: I have been all over the web and cannot get a straight answer. Any help will be appreciated. ...
  A: James, You are not considered a professional gambler so you cannot report it on Schedule C. You ...
Tuition Reinbursement2/3/2011
  Q: My employer reimbursed my tuition in 2010 exceeding $5250. Tuition incured was to improve my skill ...
  A: Shawn, Thanks for your question. Yes, but...The amount is deductible, but is is a miscellaneous ...
1099-C & Rental Property Shortsale2/2/2011
  Q: I want to short sell an underwater residential rental condo in San Diego. Bought at $374k, ...
  A: Any COD income that is not exempt must be shown on line 21. You are likely thinking about the ...
1099-C & Rental Property Shortsale2/2/2011
  Q: I want to short sell an underwater residential rental condo in San Diego. Bought at $374k, ...
  A: Bob, Thanks for your question. You can take the loss on the sale. However, with a capital loss ...
Filing Status2/2/2011
  Q: I am preparing my son's taxes with Turbo Tax and I don't know what to put for his filing status. He ...
  A: Carolyn, Thanks for your question. Since he is technically married, he could file married or ...
Tax Payments2/2/2011
  Q: Our family has just started recieving royalty payments on natural gas on property that is split ...
  A: Mari, Thanks for your question. Yes, you need to send in estimated tax payments on the 15th of ...
Taxes on Inherited IRA2/2/2011
  Q: My son (age 9) inherited a simple IRA from my mother when she died. We converted it to a Beneficiary ...
  A: I apologize. You are correct. Thanks. I had never dealt with this situation and IRS Pub 17 says ...
Taxes on Inherited IRA2/2/2011
  Q: My son (age 9) inherited a simple IRA from my mother when she died. We converted it to a Beneficiary ...
  A: Jeff, Thanks for your question. The penalty is not directly related to the IRA, but is a penalty ...
interest earned2/2/2011
  Q: we sold a garden spot to the neighbors and they are paying us interest as well as principle. Do we ...
  A: Gloria, As you are not a financial instituion you do not need to give them a 1098 for the interest. ...
401-k- tax -Id - number2/2/2011
  Q: , I allready got my taxes done,, but they cant send it in, because they need a 401-k-Id tax ...
  A: Richard, Forms 1099-R showing 401(k) distributions is supposed to be sent by Jan 31. If you have ...
Regarding mileage from a home office to main office2/2/2011
  Q: I work for a fairly large company in Austin, TX who has started to switch over to 'work from home' ...
  A: Richard, Thanks for your question. It is not a "black and white" issue but one calling for ...
1099-A after BK2/1/2011
  Q: Its was discharged in 3-2010. My home went into foreclosure after that and I just received a 1099-A. ...
  A: That portion does not mention the chapter, but the Code specifies Chapter 11 only. The bankruptcy ...
1099-A after BK2/1/2011
  Q: Its was discharged in 3-2010. My home went into foreclosure after that and I just received a 1099-A. ...
  A: Creig, Thanks for your question. If the debt on the house was, indeed, discharged in bankruptcy ...
Form 45622/1/2011
  Q: I am currently working on my 2010 tax return and have the following question regarding Form 4562: I ...
  A: Edward, Thanks for your question. Bonus depreciation is an option, you don't have to take it. ...
Vacation Time2/1/2011
  Q: If an employee "donates" back to his not for profit employer, accrued but unused vacation time does ...
  A: Paul, Thanks for your question. No it would not create a charitable conatribution. The value of ...
employer didn't withold w2 taxes2/1/2011
  Q: I live in Missouri and have never had a w2 before, always 1099's. My employer didn't withhold any ...
  A: Rebecca, Thanks for your question. If you got a W-2 and no income taxes were withheld, it would be ...
Recieved a 1099 Misc form from my previous employer1/31/2011
  Q: I took an account executive job (sales) in 2010 with a Computer Manufacturer as an employee who ...
  A: Christie, Thanks for your question. You have two options. First, just let go. File the 1099 as ...
2010 Form 1099A1/31/2011
  Q: When I file my income taxes what do I need to do with this form? I filed Chapter 7 bankruptcy and ...
  A: Tina, Thanks for your question. You will need to complete Form 982 and report the amount shown as ...
Live in NJ, Work part in SC, paid in Ohio1/31/2011
  Q: Sir, I work for a company in Ohio and they withhold Ohio state tax. I now live in NJ and work about ...
  A: Mike, Thanks for your question. You will owe state tax to NJ for all your income, since you are ...
Knotty Student Payroll Tax Question1/31/2011
  Q: I work at a university and I have learned that I mis-keyed the hours for one of my student ...
  A: It simply has to do with the fact that she was reflected as earning more in that period. The tables ...
1099-Q and 1098-T1/31/2011
  Q: We claim our 21 yr old son on our taxes but I have to do a tax return for him also. Can I claim the ...
  A: Starlyn, Thanks for your question. The 1098-T must be utilized by the party who takes the ...
Form 1099 (rev. 9-07)1/31/2011
  Q: I received a Form 1099 (rev.9-07). Their are five boxes with no numbers in them. I am using turbo ...
  A: Mike, Thanks for your question. If you look closely at the form, you should see it indicated which ...
tax dedcution1/31/2011
  Q: We are an LLC that has partnered with an individual. We produce a food crop that we want to give to ...
  A: Jason, Thanks for your question. LLC's are allowed flexibility in this area, so you could allocate ...
wash sales1/30/2011
  Q: Last month I was looking through several years worth of my mom's old tax returns to find a detail ...
  A: Mary, Thanks for your question. You are apparently a little misinformed about how a loss on a wash ...
1099 for W-2 Employees1/30/2011
  Q: My employer wants to process 1099s for our W-2 employees that have received payments for car ...
  A: Victoria, Absolutely not. Allowances paid to an emplolyee as a part of a non-accountable plan are ...
Self Employment Income1/30/2011
  Q: I have 2 separate businesses plus some W-2 income for 2009. Do I have to file 2 separate tax returns ...
  A: Debra, Thanks for your question. I presume both businesses are sole proprietorships or sole member ...
Demolition of residentila rental property1/30/2011
  Q: I have owned a single family rental property, received income and claimed depreciation since 1998. ...
  A: John, Thanks for your question. The loss would be reported on Form 4797 and would be the current ...
claiming children on income taxes1/30/2011
  Q: Can you claim your child on you taxes if you only keep them every other weekend for a whole year,The ...
  A: Debra, Thanks for your question. In order to claim a dependency exemption for a child, the child ...
State disallowing federal per diem?1/30/2011
  Q: My husband is a truck driver (I am a former truck driver). We live in Alabama. Our last 3 years of ...
  A: Karen, Thanks for your question. As you probably know, Alabama is a difficult state do deal with ...
Form 8917 - Tuition & Fees Deduction1/29/2011
  Q: John, I can't find any information on this and was hoping you could help. I have a student in ...
  A: Robert, Thanks for your question. You probably do not have a deduction. You should get a 1098-T ...
w21/29/2011
  Q: my husbands last day at a job was dec 23,3009 and all of a sudden after we file taxes for 2010 we ...
  A: Angie, Thanks for your question. The important date is not when his last day of work was, but when ...
tuition1/29/2011
  Q: My question stems from a tuition question. My parents paid for one of my classes. I am 26 and go ...
  A: Ryan, Thanks for your question. I presume you are talking about taking one of the education ...
Federal Tax 20101/29/2011
  Q: Good Day, My wife and I file jointly with her earned income and my 1099G & 1099 forms from SS & ...
  A: Ray, Thanks for your question. Not to be evasive, but it depends. Unemployment is taxable at the ...
added to my mom's1/29/2011
  Q: My 74 yr old mother lives in the state of oklahoma, recently placed me as joint tenantcy oher house ...
  A: JJ, Thanks for your question. Frankly that is not a good idea. As it stands now, you are a ...
Husband lives in FL, works in NYC1/28/2011
  Q: My husband's state of residence is FL, and he works for a Virginia-based corporation as a ...
  A: Linda, Thanks for your question. He owes NY state and city taxes because he is has earned income ...
Knotty Student Payroll Tax Question1/28/2011
  Q: I work at a university and I have learned that I mis-keyed the hours for one of my student ...
  A: Whitney, Thanks for your question. It did not cost her $50 in extra taxes, as you said it is ...
income tax1/28/2011
  Q: If I inherit a sum of money and it is put directly from the estate account into a joint account I ...
  A: Elisa, Thanks for your question. Inheritances are not subject to income tax. If the asset is ...
K1 vs paycheck1/28/2011
  Q: I am a part-time freelance bookkeeper. I have a client with an S corp - he is the only 'partner'. ...
  A: Dorothy, Thanks for your question. Unfortunately you are incorrect. The laws requires an ...
International Student1/28/2011
  Q: I'm international student, I've got married since July 2010, my wife is permanent resident. We have ...
  A: Jorge, Thanks for your question. If you do not have a social security number you cannot file or be ...
wrong deduction amount1/28/2011
  Q: I did my dads taxes for him yesterday. I thought he had 4000+5000 wrote down for Dr. bill ...
  A: Shasta, Thanks for your question. Not a problem. All you need to do is file a 1040X amended ...
Temporary employee/per diem tax question1/28/2011
  Q: My daughter-in-law is moving with her family (husband is being transferred) to a new location 100 ...
  A: Louise, Thanks for your question. The employer is certainly free to pay her anyway that he/she ...
income tax on land disturbance1/28/2011
  Q: John, I live in New Jersey and have property in PA.where they are drilling for Natural gas all over ...
  A: Mike, Thanks for your question. I do not research and cite code sections in the forum. Since it ...
taxes on selling inventions1/28/2011
  Q: Good morning I have an invention that I want to sell to my employer. I will be asking for x amount ...
  A: Mike, Thanks for your question. It would be taxed as ordinary income subject to self-employment ...
Deductions and depreciation for first year of rental home1/27/2011
  Q: I was living in my first home for about 7 years. In February of 2010, we started construction of a ...
  A: Dave, Thanks for your question. Any expenses incurred while you were still living in the house are ...
Taxes on Prize or Award Winnings1/27/2011
  Q: This past year my husband and I participated in a DIY REality show where we won the difference of ...
  A: Julie, Thanks for your question. No. You cannot reduce the taxable amoun of the prize for ...
Tax on early 401(K) distribution1/27/2011
  Q: I left my job and apartment in MN in June 2010 and have been traveling in multiple states in the US ...
  A: Roger, Thanks for your question. When you gave your mailing address as WI, that established a ...
Clarification of when to issue 1099-MISC forms1/27/2011
  Q: My question concerns clarification of rules for a business to issue 1099-MISC forms to service ...
  A: Mike, Thanks for your question. For 2011 and prior years, you issue a 1099 to any unincorporated ...
Convention reimbursement1/27/2011
  Q: This past year our church voted to send the pastor's wife to their National Convention as a ...
  A: Marsha, Thanks for your question. If the pastor's wife was at the convention as a representative ...
W-21/27/2011
  Q: Good evening, The company my husband worked for was closed by the SEC and Department of Justice due ...
  A: Jennifer, Thanks for your question. The trustee would be the one responsible for the W-2's. The ...
Alternative to 501 c 31/26/2011
  Q: Most churches file as nonprofit organizations 501 c3's, but that limits one's freedom to preach ...
  A: Francine, Thanks for your question. IRS Code Section 408 deals with Individual Retirement ...
head of household1/26/2011
  Q: Two of my five kids Were born in sept 2010. My mom is supporting them Until I get back on my feet. ...
  A: Ed, Thanks for your question. If they lived with her from the time they were born through the end ...
Sole Proprietorship tax1/26/2011
  Q: Am starting a bookeeping business in Florida. Is there any tax advantage between having a self ...
  A: Karen, Thanks for your question. An LLC is a disregarded entity for tax purposes, meaning that a ...
Paid with a W2 but used a home office and commuted to clients biweekly1/26/2011
  Q: I was a W2 employee, but there was no physical office for my employer. So I had to keep a home ...
  A: Amy, Thanks for your question. In order to deduct home office expenses, the home office must be ...
American Opportunity Credit1/25/2011
  Q: I have a question about whether or not my son is an eligible student for the AOC $2500 credit. He ...
  A: Marina, Thanks for your question. His academic classification (Fr, So, Jr, or Sr.) is not a ...
adoption tax credit question (failed adoption)1/25/2011
  Q: John- My husband and I recently had a failed adoption (baby had to be returned to birth parents ...
  A: Rebekah, Thanks for your question. You can take a credit for the failed adoption, there are ...
No federal taxes witheld1/25/2011
  Q: I work for a small church school in CO, and recently received my W2. I noticed that there were no ...
  A: Jayme, Thanks for your question. Nothing may have been taken out because you claimed a large ...
Babysitting claims1/25/2011
  Q: I have seen various answers to this question and wanted to find out what is the real answer. My ...
  A: Jon, Thanks for your question. Yes, the money is taxable and should be reported on her return. ...
Form43611/25/2011
  Q: My husband is a pastor and receives Ministerial earnings for over 5 years,last year 2010 he is ...
  A: Sharon, Thanks for your question. No, he does not qualify as the rules state that the election ...
IRA missed contribution1/25/2011
  Q: My ex employer handed me 2 checks for previous Simple IRA contributions that he/she should have been ...
  A: Phyllis, Thanks for your question. First, the penalty is only 10%. But it is in addition to any ...
First Time Home buyers Credit1/25/2011
  Q: my husband I bought a house in April of 2009. Both of our names are on the mortgage. He moved out of ...
  A: Johna, Thanks for your question. That is not a concern. Temporary absences due to work do not ...
Filing an addendum1/25/2011
  Q: I was divorced in 2008. In 2007 I claimed my wife and child for tax purposes. We legally seperated ...
  A: Anthony, You can file an amended return, 1040X. It is not referred to as an addendum. Get a copy ...
1099-R1/24/2011
  Q: i made a rollover in 2010 from 401k in one institution to a traditional ira in another institution. ...
  A: William, Thanks for your question. Box should show a code of "G" indicating a direct rollover. If ...
Owner's Equity Account1/24/2011
  Q: Mr. Stancil. I will be transferring ownership of a rental property into an LLP. Will my equity ...
  A: Mike, Thanks for your question. I would need a great deal of additional information in order to ...
tax1/24/2011
  Q: About a year ago I filed for bankruptcy and released a rental row house in Baltimore, md. The ...
  A: Al, Thanks for your question. Bankruptcy does release you from the debts that are included in the ...
Foreign income exclusion1/24/2011
  Q: If I have self employment income earned in a foreign country and qualify for the Foreign Earned ...
  A: Michael, Thanks for your question. The foreign earned income exclusion for 2010 is $91,500; for ...
Per Diem1/24/2011
  Q: Sir, I am working 240 days per year in Afghanistain. Can I claim Per Diem for that period of time ...
  A: Michael, Thanks for your question. International per diem rates can be found at ...
Inherited house sold in 20101/24/2011
  Q: A couple years prior to my mom's passing in 2005 she did a quit claim deed on her house and put it ...
  A: Julie, Thanks for your question. It does not matter where the house is located. For federal tax ...
My son used my home equity line1/24/2011
  Q: Last July, I paid off my son's student loan of about $200,000.00 using my home equity line of credit ...
  A: David, Thanks for your question. You have interest income and interest expense that must be ...
Can I claim Schedule K-1 Losses from Prior Years?1/23/2011
  Q: I filed my taxes last year, and wasn't aware that I would be receiving a Schedule K-1 (Form 1065) ...
  A: Tyler, Thanks for your question. No, you must report each year's income and deductions in the year ...
My mothers refund1/23/2011
  Q: My mother passed away in October of 2010. She worked for a hospital in Southern California. My ...
  A: Sacha, Thanks for your question. Someone is required by law to file her final return. It would be ...
File self employment taxes I made while overseas1/23/2011
  Q: What is the form that I would need to file when filing for any self employment income that I made ...
  A: Heather, You would have to complete Schedule C to report your self-employment income. You report ...
Understanding impact of debt settlement on investment property1/23/2011
  Q: I wondered if I could get your thoughts on my situation. In 2005 I purchased a parcel of vacant ...
  A: BR, Thanks for your question. Hate to be the bearer of bad news, but COD income is not classified ...
mortgage interest question1/23/2011
  Q: I got married in July of 2010. My new husband and I live in my house. My husband divorced in 2010 ...
  A: Brenda, Thanks for your question. If he is legally liable for the payments and he make the ...
Home in two states1/23/2011
  Q: I live in IL and am looking to get out of here with the recent tax changes. I am interested in ...
  A: Scott, Thanks for your question. It is not so much a matter of time, but what you do in IL. Since ...
Military Member1/23/2011
  Q: Sir- I am in the military and am under the impression that I would get 100% of my state of Maine ...
  A: Erika, Thanks for your question. That is not true. Maine state income tax follows federal rules, ...
Gift tax or interest income1/22/2011
  Q: I received a backpack as a gift. Now the people who gave me the backpack sent me a 1099INT form and ...
  A: Delana, Thanks for your question. Although it would not make any difference on the bottom line, it ...
16 yr old income1/22/2011
  Q: My 16 yr old grossed under $2500 in 2010. He had no federal taxes taken out. My understanding is ...
  A: Sue, Thanks for your question. He does not have to file a return, assuming he received a W-2 and ...
Live in one state work in another1/22/2011
  Q: John, I live in NJ for a company headquartered and am paid out of Ohio but I split my time working ...
  A: Mike, Thanks for your question. You owe NJ tax on your entire earnings, since that is your state ...
eic credit1/22/2011
  Q: me and my daughter get ssd i get ssd maybe she gets ssi i am not sure but can i claim the earned ...
  A: William, If SSD is your only source of income you cannot ge the earned income credit as you do not ...
Inherited 2004, rehabed 2009, rented 20101/22/2011
  Q: My mother passed away in 03, leaving me the house (I already lived there and had for many years) I ...
  A: Donna, Thanks for your question. The costs of rehabbing the home must be capitalized and added to ...
10991/22/2011
  Q: http://www.ag.org/top/Church_Financial_Matters/ch_finance_contributrions.cfm Referring to rule #2 ...
  A: Ron, Thanks for your question. Rule #2 does not apply in this case, as the funds are not really in ...
SEP Eligibility1/21/2011
  Q: I was wondering if I'm eligible to contribute to an SEP IRA if I'm an adjunct instructor at a major ...
  A: David, Thanks for your question. Since you are not self employed, your employer must establish a ...
claiming attorney fees1/21/2011
  Q: I know that legal fees can be claimed on your taxes ONLY IF they are related to "producing or ...
  A: Sue, Thanks for your question. Two aspects of the definition. First, if you have a business it is ...
Gift Tax Reporting1/20/2011
  Q: It is my understanding that if I were to give my brother a gift of $13,000 or less, I would not be ...
  A: Roger, Thanks for your question. Filing a joint tax return has nothing to do with it as gift taxes ...
Mobile ad revenue as hobby income?1/19/2011
  Q: I made a free iPhone app in my spare time that displays ads. The ad network will be sending a 1099. ...
  A: Jason, Just an additional comment. I would not call the IRS, but use your best judgement. They ...
Minister's housing allowance1/19/2011
  Q: Is there a comprehensive list of what is allowable as far as inclusions in our housing allowance? I ...
  A: Sarah, Thanks for your question. The IRS does not have such a list. However, there are a number ...
Church Fed'l Tax Filing Requirements1/19/2011
  Q: We are a newly-formed church and I'm the Administrator. What are the requirements for us to file? ...
  A: To cite code sections takes more time than I can devote to this volunteer activity. Howver, if you ...
Church Fed'l Tax Filing Requirements1/19/2011
  Q: We are a newly-formed church and I'm the Administrator. What are the requirements for us to file? ...
  A: Debra, Thanks for your question. You do need to file a 941 if you have employees. And, of course ...
miscalculation1/19/2011
  Q: I had payed in my estimated 2009 taxes to the sum on 12,928.00. When my CPA completed my return, he ...
  A: Michael, Thanks for your question. Since you would have owed the tax had it been done correctly ...
SSI Representative Payee and taxes1/19/2011
  Q: My son is 19 and receives SSI payments. I am his appointed SSI Representative Payee. He pays a ...
  A: Carla, Thanks for your question. No, you do not have to report the payments he makes to you as ...
tax fraud1/19/2011
  Q: I was going thru a divorce last year and my ex wife filed head of house hold and claimed my daughter ...
  A: David, If the divorce was final by 12/31 she can file as head of household if she can claim the ...
Question re California DBA and taxes...1/19/2011
  Q: Good Afternoon Dr. Stancil, I have read a few of your responses to questions posed and believe you ...
  A: David, Thanks for your question. When you state that you will be itemizing deductions for business ...
Can we file joint or separate1/19/2011
  Q: we go married in September 2010, i moved from MD to PA to live with my wife. My wife has lived and ...
  A: Jeff, Thanks for your question. You can file a federal return jointly - state does not matter. ...
32 yr old adult son - dependent??1/19/2011
  Q: my 32 year old son has been living with me since July. The first half of the year he was ...
  A: Pam, Thanks for your question. You can claim him as a dependent if you paid over half the cost of ...
1099 MISC box 71/18/2011
  Q: I received a 1099 MISC with an amount in box 7 that includes the total payment received from a ...
  A: Rudy, Thanks for your question. That is a fairly common practice - to write the 1099 for the gross ...
Acquisition or Abandonment of Secured Property1/18/2011
  Q: I had a post on 01-14-11 and this was your answer: If the fair market value exceeds the amount ...
  A: Carolyn, Thanks for your question. Since you had refinanced and taken money out you will have some ...
self employment tax1/18/2011
  Q: I became self employed for the first time in my life in 2010. I was told and was under the ...
  A: Sam, Thanks for your question. The penalty determination is dependent on your total tax liability ...
Travel expanses1/18/2011
  Q: I live in Maryland and work in Alaska on 3 week rotation. Is my airfare an allowable deduction?
  A: Sheila, Thanks for your question. I presume the Alaska work is a permanent situation and not just ...
Injured Spouse Form1/18/2011
  Q: I have a question regarding Form 8739 and the best way in which to file taxes. I am recently ...
  A: Kristin, Thanks for your question. If you file a joint return, your portion of the refund or ...
401k hardship withdrawl1/18/2011
  Q: If we took a hardship withdrawal from my husband's 401k to get our house out of foreclosure, are we ...
  A: Beth, Thanks for your question. Unfortunately, there is no exception to a hardship withdrawal. ...
Claiming Dependants1/18/2011
  Q: I am looking for information on whether I may claim my girl-friend as a dependant. She has lived ...
  A: Tim, Thanks for your question. You can claim her as a dependent if you meet all of the criteria: ...
Do I have to take depreciation on a commercial property?1/18/2011
  Q: I want to ask a similar question already ask of you. I own a commercial property which I have ...
  A: Mary, Thanks for your question. Yes, you must take depreciation. If you sell the property, the ...
SSI survivors benefits1/18/2011
  Q: My wife and I got married in Oct of 2010. She received benefits for both herself and the kids until ...
  A: Travis, No, if I said that it was incorrect. Her SSI is income and must be included on the return. ...
Georgia State taxes for part time non resident1/17/2011
  Q: I'm recently retired, and my wife and I are considering buying a 2nd home in Ga. We would still be ...
  A: Actually, I did not directly address that. They do, but they only tax income that is GA based. Your ...
SSI survivors benefits1/17/2011
  Q: My wife and I got married in Oct of 2010. She received benefits for both herself and the kids until ...
  A: Travis, Thanks for your question. I can't tell you which would be the best way to file. Usually ...
write-offs1/17/2011
  Q: My wife and I just purchased a condo rental property in another state. Can we use travel (plane, ...
  A: Scot, Thanks for your question. You can deduct your travel expenses to check on your rental ...
vacant land sale1/17/2011
  Q: Along with my partner we sold a piece of vacant land. What forms do we need to supply to the ...
  A: Dave, Thanks for your question. Since you are not in the business of lending money, you only need ...
Health/Pension1/17/2011
  Q: John, I am an S Corp. I only employ 1, "my self". My Company pays me wages with all taxes withheld. ...
  A: Gary, Thanks for your question. Since you are a "more than 2% owner of the S Corp, your helth ...
Georgia State taxes for part time non resident1/17/2011
  Q: I'm recently retired, and my wife and I are considering buying a 2nd home in Ga. We would still be ...
  A: Vic, Thanks for your question. No, you are taxed on income earned while in Georgia and on income ...
Can I deduct interest I pay as a a result of promossory note?1/17/2011
  Q: My have received a loan of $400K from my dad so I can buy my second home without a mortgage and rent ...
  A: That is correct. The note should be sufficient. However, since it is a related party transaction, ...
social security disability1/17/2011
  Q: 1. Are my monthly disability payments taxable income? 2. Are my back benefits payed to me for the ...
  A: Richard, Thanks for your question. It depends on your level of gross income. Your benefits will ...
claiming a parent1/17/2011
  Q: my mother lived with my brother from jan thru april of 2010 she then came to live with me and my ...
  A: Ardis, Thanks for your question. An exemption cannot be divided between two or more parties in a ...
Handling taxes on rental property in another state1/16/2011
  Q: I bought a rental house in North Carolina in November 2010. It isn't rented yet although I have ...
  A: Drew, Thanks for your question. Once the house is ready to be rented you can report income and ...
earned income credit1/16/2011
  Q: Is the non residential parent allowed to claim earned income on q child or jus a dependent? And also ...
  A: Stephanie, Thanks for your question. In order to claim the EIC the child must meet the ...
Rental Property Depreciation upon death of taxpayer1/16/2011
  Q: My step father passed away in May 2010. My mother and he each owned rental property separately but ...
  A: Ted, Thanks for your question. When a piece of property is inherited, it starts fresh with a new ...
Can I deduct interest I pay as a a result of promossory note?1/16/2011
  Q: My have received a loan of $400K from my dad so I can buy my second home without a mortgage and rent ...
  A: Tzvi, Thanks for your question. Assuming it is totally a rental property, the interest is ...
1099-MISC1/16/2011
  Q: I neeed to file some 1099-misc for prior years. All i can find at IRS.GOV is PDF files that can't ...
  A: Mike, You would probably have the most success looking for an online source. You could also ...
Several Tax Question1/16/2011
  Q: 1. It was just told to me that I may claim my live in boyfriend as a dependent. He was unemployed ...
  A: Cristie, Thanks for your question. 1. If he lived in your household for the entire year. you ...
Married Filing Separately - Dvision of Interest & Capitol Gails1/15/2011
  Q: My wife and I have been filing our taxes as Married Filing Separately for several years without any ...
  A: Billy, Thanks for your question. Income and expenses from joint funds are normally considered to ...
grandma is babysitting1/15/2011
  Q: My wife is babysitting our grandson at my daughter's home 4 days a week. We do not accept payment ...
  A: Phil, Thanks for your question. In order for your daughter to claim the fuel reimbursement as a ...
Adoption Tax Credit1/15/2011
  Q: We adopted in 2006, but turbo tax didn't file form 8839. We had no tax liability to use any. we ...
  A: I recommend you do not amend. Show a supplemental calculation that illustrates and explains the ...
Securities Litigation1/15/2011
  Q: I recently received 3 checks for a securities litigation involving Sequenom Inc. I'm trying to ...
  A: Jason, Thanks for your question. Yes, those are taxable amounts. Most likely you will receive a ...
Adoption Tax Credit1/15/2011
  Q: We adopted in 2006, but turbo tax didn't file form 8839. We had no tax liability to use any. we ...
  A: pAM, Thanks for your question. The credit can be carried forward for up to five years, so you are ...
interest write of for the buyer of my home (seller financed)1/14/2011
  Q: John, A person buying my home does not qualify with a bank. He is giving me a down payment. He will ...
  A: Javier, Thanks for your question. From you description, it sounds as it if may be a land contract. ...
Acquisition or Abandonment of Secured Property1/14/2011
  Q: What is the difference considered (added income) and I have to report? Is it true that MI has an ...
  A: Carolyn, Thanks for your question. If the fair market value exceeds the amount owed, you do not ...
Taxes1/14/2011
  Q: I purchased a used Box truck for the Corp. in 2010 I installed a side door and a ramp at a cost of ...
  A: Tom, Thanks for your question. First, to answer your question - the $2,500 would be added to your ...
Untaxed Income From A Research Stipend1/14/2011
  Q: Over the summer I worked at a government facility doing scientific research and they paid me a ...
  A: Bruce, Thanks for your question. I anticipate that you will receive a 1099-MISC. It would probably ...
Primary residence1/13/2011
  Q: We bought our 1st primary residence in 2005, decided to rent it out in 2008. We also bought a new ...
  A: Amy, Thanks for your question. When you rented the house, it became rental property, and no longer ...
Property, Head of Houshold, Child Daycare1/13/2011
  Q: My ex-wife and I became divorced on Sept 27th 2010, I kept the house and have been make the mortgage ...
  A: Jeremy, Thanks for your question. You are correct on the interest from the mortgage payments. To ...
exemption1/13/2011
  Q: Can I use my military son who is single,in college and 21 years of age. Although he lives in texas ...
  A: Bonnie, Thanks for your question. Probably not. He must be a full time college student and you ...
Deduction of HELOC on rental property1/13/2011
  Q: I took out a $100,000 HELOC on my primary home in June of 2009 as a down payment on my new primary ...
  A: Sorry, I misread your time line. Since it does have the rental as security for the home, I would ...
Deduction of HELOC on rental property1/13/2011
  Q: I took out a $100,000 HELOC on my primary home in June of 2009 as a down payment on my new primary ...
  A: Doug, Thanks for your question. It will qualify as a second home - you did not have to live in it. ...
Guest speakers and singers1/13/2011
  Q: I understand I must issue form 1099mis when the amount we give them is over $600. Do I subtract the ...
  A: Robert, Thanks for your question. The 1099 should be issued for the amount given to the speaker or ...
filing children1/12/2011
  Q: I have a child which lives with me all year, I recently filed for chilsupport against the father and ...
  A: Karen, Thanks for your question. No. You are only entitled to a dependency exemption if you meet ...
pastor's w21/12/2011
  Q: Should money allotted for convention expense and self-employment tax be placed on the pastor's w2 ...
  A: Terry, Thanks for your question. The self-employment tax payment should be included on the W-2. ...
Soc Sec Taxes/Self Employment1/12/2011
  Q: Self employed, odd jobs, retired. Not incorporated. If, for example, I charge $50 labor to do a ...
  A: Deb, Thanks for your question. You pay self-employment taxes (both sides of SS) on your profit as ...
exemptions1/12/2011
  Q: I am presently studying tax preparation with one of the large franchises, and I would like ...
  A: Debbie, Thanks for your question. In order to take a dependency exemption for the girlfriend and ...
OCCUPATIONAL tax1/12/2011
  Q: Mr. Stancil, I had asked a question earlier about opportunity tax, but I misspoke. What is an ...
  A: Connie, Thanks for your question. Occupational taxes are fairly common. Basically they are a flat ...
Church tax question1/12/2011
  Q: I work for a church and we just hired an employee that has her office in her home.  We reimburse for ...
  A: Michael, Thanks for your question. My response is conditioned on one factor. If the home office ...
Tax1/11/2011
  Q: If I have 100.000 in money market cds. My name or my daughter's name is on them will she have to pay ...
  A: Bob, Thank for your question. Not sure what kind of tax you are referring to. If they are in your ...
car registration1/11/2011
  Q: the people who do my taxes say i can claim the amount i paid for licensing my car in KY. my friends ...
  A: Janie, Thanks for your question. If you itemize deductions, you can deduct the amount of tax paid ...
Head of Household1/11/2011
  Q: I was laid off April 28, 2009 and started receiving unemployment through Dec 2009. I was living with ...
  A: Alejandro, Thanks for your question. Since you apparently did not provide the cost of maintaining ...
Tax question1/10/2011
  Q: I use a small utility trailer for my business, but I would like to know if it is alright to use it ...
  A: Tony, It is ok to use it for non-business use. However, when you do that, you should keep track of ...
self-employment taxes1/10/2011
  Q: I have been babysitting/watching a few families children since April, only one family at a time. I ...
  A: Nichole, You would report your income and your expenses incurred in performing the babysitting on ...
Can we claim our daughter?1/10/2011
  Q: My daughter was born Jan 8, 2010 she only lived for 2 hours we have a ss card, birth an death ...
  A: Tiffany, Thanks for your question. Please accept my sympathies. Yes, you are entitled to a full ...
Head of Houshold1/10/2011
  Q: I have been separated from my husband and living separately since November 2009. I provided a home ...
  A: Kathy, Under IRS rules, if you and your spouse have not lived together at any time during the last ...
address and head of household1/9/2011
  Q: i am trying to find out more info about my situation. I lived in one address during 2010 for four ...
  A: Rob, Thanks for your question. The address would not normally be an issue, but you need to be able ...
Confused on Taxes!1/9/2011
  Q: We presently own a home which is our primary residence in CA. and go there every other month. We ...
  A: SA, Thanks for your question. Your primary residence for tax purposes is where you spend the most ...
In Which State do I File Taxes?1/8/2011
  Q: I am a recent college graduate. I am working in a paid fellowship position in Chicago, IL. I am ...
  A: Aaron, Thanks for your question. You did not have any income while a resident of MN, so you do not ...
Audit1/7/2011
  Q: We received a letter from the IRS stating we owe $4,100.00, due to some untaxed income not reported. ...
  A: Christina, Thanks for your question. She can be held responsible for any penalty, but since you ...
Wash Sales Rule1/6/2011
  Q: On Jan 3, I buy 100 shares of SPY. On Jan 4, I sold 100 shares of SPY, losing $250 on the trade. ...
  A: John, Thanks for your question. When you made the sale on the sixth your $400 gain was reduced by ...
Estate Taxes1/5/2011
  Q: my question is, my father passed away in DEC 08, he had no will, my brother and I filed probate ...
  A: Louise, Thanks for your question. If the property was still in the name of the estate and not you ...
Commuting mileage follow up question1/5/2011
  Q: John, you mentioned in a previousSince he is working in the general metropolitan area of his tax ...
  A: Christian, Thanks for your question. I don't recall the details of the question you cite. ...
Tax Dependent1/5/2011
  Q: My son turned 19 in August 2010. He was in college until March 2010 then returned home. Once he got ...
  A: Lupe, Thanks for your question. Since he was not under age 19 at the end of the year and not a ...
Housing Expense on Assignment1/5/2011
  Q: I have been reassigned by my agency to a location 140 miles from my home. I will be renting a ...
  A: George, Thanks for your question. It depends on the duration of the assignment. If it is for an ...
1099-MISC1/5/2011
  Q: Aloha, As a graphic designer, I have a question about form 1099-MISC. If someone sells shirts ...
  A: Ray, Thanks for your question. A 1099-MISC is a document that someone would give you when you ...
Freelance photographer for local paper as second job.1/5/2011
  Q: I started shooting photos for a local paper under 1099, I'm new to this and I'm getting quite busy ...
  A: Sergio, You will report these earnings on Schedule C, where you can deduct any expenses incurred in ...
fed. tax1/5/2011
  Q: Let me first say thanks for taking my question. I really appreciate you taking the time. It is ...
  A: No, there is a distinction for tax purposes between a marriage settlement and alimony. Alimony can ...
IRS mileage allowance1/5/2011
  Q: Is there a mileage allowance accepted by IRS when using a small private aircraft for business ...
  A: Jack, Thanks for your question, a rather obscure one at that. The current rate, as of January 1, ...
State taxes1/4/2011
  Q: Does Florida, Colorado, Texas and/or Alabama tax rental property (fourplex)income? If so, what ...
  A: Gloria, Thanks for your question. Florida and Texas have no personal income tax, so rental ...
individual taxes1/4/2011
  Q: I am an 18 year old sophmore that qualifies to use the hope tax credit, but does not have taxes ...
  A: Brittney, Thanks for your question. You should get a W-2. If not, you need to contact the ...
MGIB1/4/2011
  Q: I'm in the military, and this year I contributed 800 dollars into my MGIB (GI Bill). Can I claim ...
  A: Christopher, Thanks for your question. No, your contributions into the MGIB are not deductible ...
Over Seas Tax Exemption?1/3/2011
  Q: I work for the Army as a civilian employee. I am preparing to deploy to Kuwait/Iraq for 13 months. ...
  A: Ken, Thanks for your question. It does not have to be 330 days in a calendar year. You must be ...
medical deduction question1/2/2011
  Q: I have a sister with Alzheimer's who lives in a different state than I do. I have traveled to her ...
  A: Joyce, Thanks for your question. Unfortunately you cannot take a deduction for your expenses. ...
I am a full time over the road truck driver1/2/2011
  Q: I would like to know if there is a deduction for over the road truck drivers. I drive the whole US ...
  A: Ray, Thanks for your question. The only "standard deduction" is the per diem meal allowance that ...
dependent12/31/2010
  Q: i have a daughter which i support in 2010. she in terms has a 1 year old daughter. my daughter ...
  A: Yes, that is all true and I confirm your statements. However, it is rather unusual for someone to ...
dependent12/31/2010
  Q: i have a daughter which i support in 2010. she in terms has a 1 year old daughter. my daughter ...
  A: Rob, Thanks for your question. It depends. If she is a full time student under age 24 and you ...
SSD AND CHILD SUPPORT12/31/2010
  Q: THIS YEAR WE ARE FILING JOINT AND NEED TO KNOW IF I HAVE TO DECLARE MY SSD INCOME AND MY BACK CHILD ...
  A: Tanya, Child support is not taxable. SSD may be taxable depending on your total income level. You ...
Question about 2010 taxes12/31/2010
  Q: My fiancee and I are getting married in a week in 2011. A few months ago, in 2010, we bought a house ...
  A: RL, Thanks for your question. You are correct, you cannot file as married for 2010. There are ...
Inherited houses12/30/2010
  Q: My wife and her sister inherited 2 houses that are in a trust. Both sisters are Successor Trustees ...
  A: A 2011 return will not be required if the trust did not have $600 or more of income, or no expenses ...
Inherited houses12/30/2010
  Q: My wife and her sister inherited 2 houses that are in a trust. Both sisters are Successor Trustees ...
  A: Rob, Thanks for your question. I presume the property taxes are being paid by the trust. If this ...
Medical FSAs12/30/2010
  Q: I have a couple questions about FSAs: 1) Does the 7.5% of AGI threshold on deductible medical ...
  A: Chris, William could not take your question, but I can give you an answer. 1) The 7.5% of AGI ...
New York physical presence for non-resident tax purposes12/30/2010
  Q: I live, reside and mostly work out of my house in Texas. At times I have to visit New York for ...
  A: Pedro, Most likely not. From you description, it sounds as though you are not conducting business ...
Gifts Paid to Church Employees12/30/2010
  Q: Members of the congregation gave money designated for staff Christmas Gifts. The money was paid to ...
  A: Linda, Thanks for your question. The money is taxable income to the employees and should be ...
Monetary gift to church member12/21/2010
  Q: We have recently started a benevolence fund in our church to help some of our needy and elderly ...
  A: Colin, Thanks for your question. It is legal for the church to accept the contribution and send ...
Donating a house to the ministry12/20/2010
  Q: I have a member of the church that wants to give a house to the ministry to use to house battered ...
  A: Jerry, Thanks for your question. Paying them a small amount of money would only tend to complicate ...
first time home buyer12/20/2010
  Q: took first time buyer credit for 08,IRS says now I am not due it.My spouse died early this year,my ...
  A: Larry, Thanks for your question. If you did not qualify for it, the entire amount must be repaid. ...
Christmas bonuses12/20/2010
  Q: I understand that bonuses must be taxed, but just want to be clear on one thing. I work at a church ...
  A: Luci, Thanks for your question. Yes, the bonus payments are subject to the same rules as the ...
Home stepped up basis after spouse dies12/20/2010
  Q: What are the rules for ascertaining the stepped up basis after a spouse dies?
  A: Norine, Thanks for your question. Assuming that the spouse was a co-owner of the house, there ...
online earnings12/19/2010
  Q: I have been making a small profit online with PTC (paid-to-click) websites (they pay you to view ...
  A: Misti, Yes, that is taxable income. You will need to report the earnings as a self-employed ...
Small business deductions and charitable donations12/18/2010
  Q: My family and I are interested in starting up an agricultural small business and rather then selling ...
  A: Jason, Thanks for your question. You could not deduct any of the costs involved as business ...
Distribution of Irrevocable Trust12/18/2010
  Q: My siblings and I are receiving distributions from a trust which is being distributed after our ...
  A: Bill, Thanks for your question. The liquidated fund would be handled the same as the distributions ...
Loan Forgiveness12/17/2010
  Q: I am an accountant for an S-Corp and have a tax question. We had a woman who cleaned our office ...
  A: Kelli, Thanks for your question. Simply issue a 1099-MISC as non-employee compensation. ...
Husband DOD contractor overseas12/17/2010
  Q: My husband is a DOD Contractor in Afghanistan. We are from California and I am employed as well. My ...
  A: 2 1/2 weeks is approximately 18 days so it is not sufficient to disqualify him. It just lowers the ...
Husband DOD contractor overseas12/17/2010
  Q: My husband is a DOD Contractor in Afghanistan. We are from California and I am employed as well. My ...
  A: Melissa, Thanks for your question. Without more details it is difficult to give you a precise ...
1099 Fuel Reimbursements12/16/2010
  Q: I am working for a trucking company. They hire owner operators and deduct the amount of fuel ...
  A: Kate, Thanks for your question. As independent contractors, you should reflect on their 1099-s ...
Transferring Earnings to Another SSAN12/16/2010
  Q: I am agent for banking transaction for my mother, by PoA. Local financial institutions will not ...
  A: John, Thanks for your question. Not really. The bank is required to issue the 1099 to the holder ...
mileage for volenteer firefighters12/16/2010
  Q: i was wondering if we as volunteer firefighters can claim mileage for drills calls meetings and ...
  A: Todd, Thanks for your question. Yes, those are miles incurred in relation to the activity, the ...
benefit tax reporting12/16/2010
  Q: I am heading a benefit and checks are being written to me so that I can organize the event. When it ...
  A: Kay, Thanks for your question. The problem is that you are conduting an activity in which, I ...
Christmas bonus and gifts12/16/2010
  Q: I own an AZ PLLC and would like to give X-mas bonuses to my staff. How do the taxes work on gifts ...
  A: Matt, Thanks for your question. You cannot give any "gift" of cash to your employees. You can ...
tax filing question12/16/2010
  Q: My wife has worked as an independent insurance for the past two years and filed a schedule c return. ...
  A: Len, Thanks for your question. To answer it, yes, the 1099 would be Schedule C. However, the ...
stock12/15/2010
  Q: i was thinking of transferring my brokerage account to family/friends. i contact my broker and they ...
  A: Robert, Thanks for your question. You are making a gift which does not create any income tax ...
Contract Labor12/15/2010
  Q: What happens to an employer that only pays employees using "Contract Labor"? What are the tax ...
  A: Jana, Thanks for your question. The employer can be subject to fines for improper classifying an ...
Collision12/15/2010
  Q: I rear-ended someone with minor damage. Rather than report it to my insurance company, I told them ...
  A: Bill, Thanks for your question. A couple of issues. First, since you have insurance coverage and ...
Theft tax write off12/15/2010
  Q: My truck was stolen back in 07 or 08. I didn't write it off at the time as a theft loss. My loan ...
  A: Robert, Thanks for your question. You must take the theft loss in the year it occurs, or the year ...
Investment Land12/14/2010
  Q: Own a waterfront vacant lot in VA. Bought it for an investment. I know I can't depreciate land but ...
  A: Alan, Thanks for your question. The taxes are deductible on Schedule A. The interest is ...
Personal taxes12/13/2010
  Q: I am getting married on Dec 23rd. My husband and I will be going on honeymoon and when we get back ...
  A: Gale, Thanks for your question. Since your marital status on Dec 31 is married, your choices are ...
NJ LLC Fees/filing requirements12/13/2010
  Q: I formed a NJ LLC in 2008 in anticipation of a few orders I was going to receive. Unfortunately, ...
  A: Larry, Thanks for your question. For income tax purposes an LLC is what is known as a "disregarded ...
Taxes on inactive llc12/13/2010
  Q: I asked the below question  and was told it won't be taxable if I gave my friend proof of ...
  A: An investment is not income to you, nor to your friend. He must report any gain from the ...
Contract labor taxes12/12/2010
  Q: My son is 21 and is working in a greenhouse. He was asked to fill out a W9 form I believe, and it is ...
  A: Mike, Thanks for your question. A W-9 is that provides his social security number to the company ...
Rental12/11/2010
  Q: My sister signed and financed the mortgage of a condo I am living in California. The deed is in her ...
  A: Antony, Thanks for your question. You are in a tax "no man's land" at this point in time. Since ...
loaning money to my son to buy a house together12/10/2010
  Q: My son and I plan to buy a house together. Since he doesn't have enough money to pay 50% of the ...
  A: Shell, Thanks for your question. He can only deduct the interest on his debt if the mortgage you ...
Partially Paid Corporate Housing12/10/2010
  Q: I am in a management training program and as a condition of the program I am required to move around ...
  A: Nick, Thanks for your question. The housing supplement is taxable income. You cannot deduct the ...
moving expenses12/10/2010
  Q: One more question. Thanks so much for your time. Regarding the moving expenses deductions. The ...
  A: James, I don't see any problem with that. It is certainly reasonable to take a route where there ...
moving expenses12/10/2010
  Q: Im moving out of state in a couple weeks and marrying my fiance there. I am leaving my current job ...
  A: Sorry, I gave too brief an answer on the lodging. Lodging enroute is decutible, but not once you ...
moving expenses12/10/2010
  Q: Im moving out of state in a couple weeks and marrying my fiance there. I am leaving my current job ...
  A: Jim, Thanks for your question. You can deduct the cost of moving your household goods to your new ...
filing status12/10/2010
  Q: I live in Arizona. Fiance is in New York. We will be getting married December 23rd and I am moving ...
  A: James, Thanks for your question. You can file a joint federal return. State laws vary - most ...
Rental Property12/9/2010
  Q: John, what's the best way to save on taxes and max $$ flow from a rental home I'm considering ...
  A: Greg, An LLC is a disregarded entity at the IRS, meaning you would report it on a Schedule E, the ...
Spec House 1099s for labor12/9/2010
  Q: My husband and I are almost finished with our first spec house. The house will be completed and put ...
  A: Pam, Thanks for your question. You must send out the 1099's in the year the income is earned. The ...
tax on Social Security Income12/9/2010
  Q: I know a custodial account is not taxable up to a certain income level for a child (custodial ...
  A: Robert, Thanks for your question. The social security would be taxable. However, it is unlikely ...
Sale of home12/9/2010
  Q: William, My wife and I sold our home in Maryland in 2010 at a profit of about $100k. We hired a tax ...
  A: Scott, William couldn't take your question at this time, but I will give it a shot. Since you ...
Residency/State income taxes12/9/2010
  Q: Today I received a letter from the NC Dept of Revenue stating I failed to pay taxes for 2006. In ...
  A: Jimmy, Thanks for your question. NC has the right to tax property or earnings occurring in the ...
tax12/8/2010
  Q: I recently received a patent and am starting to market it. I received advise to incorporate our ...
  A: Meshia, Thanks for your question. It would have been better to form a corporation in which to ...
VA benefits12/8/2010
  Q: John: I am trying to help a neighbor. She receives $1,600 a month from the VA for taking care of ...
  A: Larry, Thanks for your question. According to my information, that income is taxable to her and is ...
Rental Property12/8/2010
  Q: John, what's the best way to save on taxes and max $$ flow from a rental home I'm considering ...
  A: Greg, Thanks for your question. Since your income is in excess of $150K, you cannot deduct any ...
deducting bad loan on tax return12/7/2010
  Q: Money (over 3 million) was loaned (some may be secured by Trust Deeds and other unsecured Personal ...
  A: Hal, You do not have to issue a 1099 for cancellation of debt, as those are only issued by ...
nonprofit CHURCH12/7/2010
  Q: MY QUESTION IS REGARDING IF A CHURCH WAS TO DISLOVE ITSELF AND THEY DECIDE TO SELL THERE BUILDING ...
  A: margorobinson, Thanks for your question. If they sold any of the property there would be no income ...
Per Diem for 13 month contract12/6/2010
  Q: John, I am looking at taking a contract job with a 13 month duration in TN. I am currently living ...
  A: Jason, Thanks for your question. The IRS will consider TN as your tax home under those ...
Taxes while deployed as a civilian contractor12/5/2010
  Q: John, I a single 23 yr old male currently deployed to Iraq as a civilian Contractor and i am also ...
  A: Al, Thanks for your question. As you apparently know, if you are physically present in a foreign ...
Capital Gains on inherited stocks12/4/2010
  Q: I inherited some stock in Duke Energy in 2000. Since then, Duke Energy split into Spectra Energy and ...
  A: Jill, Thanks for your question. Your total basis is the fair market value of the Duke stock on the ...
State income tax residency law12/4/2010
  Q: I live in North Carolina and am considering purchasing a second home close to family in Tennessee. ...
  A: Jake, Thanks for your question. For tax purposes, for Tennessee to be your residence, or tax home, ...
Tax questions on IRS Form 98212/4/2010
  Q: I was married for 40 years and went through a divorce and remarried again at 60 years old and have ...
  A: Richard, Thanks for your question. You must be insolvent just prior to the debt cancellation. ...
Childcare expenses12/3/2010
  Q: Over the course of this past year I paid my mother just shy of $1000 to babysit the kids afterschool ...
  A: Jenn, Thanks for your question. You can take a credit for the childcare expenses if you provide ...
eminent domain and condo association property12/2/2010
  Q: The state recently purchased a strip of land from our Condo Association under eminent domain. The ...
  A: Ken, Thanks for your question. Distributing the money to the members depends upon state law and ...
Designated church funds12/1/2010
  Q: Our church has several designated funds that have been inactive for several years but still have ...
  A: Stan, Thanks for your question. Since the funds are not subject to taxation, the only tax issue is ...
When to Report Business Start-Up Costs12/1/2010
  Q: John, I'm beginning to incur start-up costs (under 2K)for my small home-based business that I plan ...
  A: Scott, Thanks for your question. Start up costs are to be capitalized and amortized over a 15 year ...
401K withdraw 1st year of retirement12/1/2010
  Q: I'm retiring in July 2011 and want to pay off my 80K mortgage January 2011 which will have 42 ...
  A: Manfred, Thanks for your question. You should focus on your marginal rate rather than the ...
401k converstion11/30/2010
  Q: i would like to convert partial portion of my 401k into a roth IRA this year. lets say i convert ...
  A: John, Thanks for your question. If you make the rollover to a Roth IRA, you will owe tax on the ...
how my 18 year old should file11/29/2010
  Q: My daughter works summers and holidays at the V.A. hospital in Cleveland Ohio while attending ...
  A: Michael, Thanks for your question. First, there is no filing status as independent. She is either ...
Filing married/jointly without spousal consent11/29/2010
  Q: My inlaws have been separated, but not divorcerd for 20 years. My mother-in-law lives in Europe ...
  A: Thomas, Thanks for your question. A few issues I see here. First, he has acted fraudulently by ...
Consequences of not filing for inactive LLC11/29/2010
  Q: in 2005 I set up a single-member LLC to use to do freelance consulting business. The LLC was active ...
  A: Hank, Thanks for your question. If you did not have a separate tax ID number and filed the LLC as ...
Per Diem11/29/2010
  Q: I work at a job where I recieve per diem, however I am paid 1/2 of what the gov. allows per day, can ...
  A: Tracy, Thanks for your question. Yes, you can calculate your allowed travel expense (or per diem) ...
HOH filing.11/24/2010
  Q: Beginning this year, wife and I lived apart, each with a child, and both of us will qualify to file ...
  A: It would be the move back to MFJ. If that occurred, they would be concerned that your HOH filing ...
HOH filing.11/24/2010
  Q: Beginning this year, wife and I lived apart, each with a child, and both of us will qualify to file ...
  A: Josh, Thanks for your question. They would not necessarily frown on you filing jointly in the ...
security dates11/23/2010
  Q: Could you clarify "date of record" and "ex-dividend" date, in relation to purchase date and ...
  A: The settlement date is the date by which the transaction must be "settled," - that is, the date by ...
security dates11/23/2010
  Q: Could you clarify "date of record" and "ex-dividend" date, in relation to purchase date and ...
  A: Dave, Thanks for your question. Date of record and ex-dividend dates do not relate to purchase and ...
Acme Step-up11/22/2010
  Q: Mr. Stancil Initially, I had noted that the old "step-up" rules were no longer in effect, and so I ...
  A: Dave, Currently $1.3 million can receive a step-up in basis. However, that is a decision made by ...
Promised "Acme" stock followup11/22/2010
  Q: Mr Stancil Returning to the two $50K worth of "Acme" stock bequests, there is possibly a way to ...
  A: Dave, Couple of things. The estate would be entitled to a charitable contribution deduction - not ...
Tax question11/22/2010
  Q: My sole source of income for 2010 has been child support $131.oo wk, a one time SSI payment, back ...
  A: Chris, Thanks for your question. Assuming that there are no legal documents such as a divorce ...
Bookkeeping11/22/2010
  Q: I have a small business where I provide bookkeeping services for small businesses. I have a client ...
  A: Krista, Thanks for your question. The only way to classify them is as distributions to the ...
1041 Tax Return11/21/2010
  Q: My question is very simple. A Irrevocable complex trust that earns income (interest or dividends) ...
  A: Abe, Thanks for your question. The amount of distributions to each beneficiary is shown on the K-1 ...
Coropration and basic tax11/21/2010
  Q: I had spoken to a Tax Attorney and he said that if I have an out of state corporation and I reside ...
  A: Jonathan, Thanks for your question. The issue is not where there corporation is chartered, but ...
Indeterminate basis11/21/2010
  Q: (Oops! Sorry, Mr. Stancil; I've blown my cover, haven't I?)Mr. Stancil I have in my estate $100K in ...
  A: Any charitable contributions made by the estate are dedutions on the estate return. The private ...
Indeterminate basis11/20/2010
  Q: (Oops! Sorry, Mr. Stancil; I've blown my cover, haven't I?)Mr. Stancil I have in my estate $100K in ...
  A: Dave, Thanks ffor your question. Willing the stock to a charitable organization such as a college ...
Taxes while creating a small business11/20/2010
  Q: I work as a full time as a health-care employee earning 82,000 gross per year. I would like to ...
  A: Brett, Thanks for your question. Any equipment would have to be depreciated, rather than taking an ...
State of Residency11/19/2010
  Q: My wife and I are both Federal employees. She works in DC and I work in Virginia, and we have been ...
  A: Phil, Thanks for your question. To be a resident of Florida you have to live there. Your tax home ...
qualifying child question11/19/2010
  Q: I have a question about my son, he will turn 19 on December 8th 2010 and graduated high school at ...
  A: Kimberly, Thanks for your question. According to IRS regulations, you can take a dependency ...
Cap gain tax minimizing california income tax11/18/2010
  Q: My wife and I are considering moving out of CA; possible Nevada where there is no state income tax. ...
  A: Ralph, Thanks for your question. No, that would not result in any savings, as CA (like all states) ...
truck llc fl corporate tax11/18/2010
  Q: i and considering forming a llc in fl for my trucking co. i am leased to a major carrier (swift ...
  A: John, Thanks for your question. Since the LLC will be a sole owner enterprise, you can file the ...
executive compensation11/18/2010
  Q: if the board of directors of a company approves that the company will pay for the personal housing ...
  A: Edward, Thanks for your question. Yes, that would be taxable compensation. The only way to avoid ...
Filing final business return after personal bankruptcy11/17/2010
  Q: our S-corp business closed it's doors this year and we filed personal bankruptcy due to personal ...
  A: Laurie, Thanks for your question. You may include any expenses incurred by the business, the ...
Disability benefits from my employer11/17/2010
  Q: I am currently off work due to an on-the-job accident. The worker's compensation case is pending. My ...
  A: It sounds as if you have a cafeteria plan in which you pick the benefits you want up to a certain ...
1099-stipend11/16/2010
  Q: We have doctors that we recruit and as part of that we offer them a fellowship stipend while they ...
  A: Kathryn, Thanks for your question. It depends on the status of the relationship. If they are ...
1099-Relocation11/16/2010
  Q: We recruit doctors and some of them are coming on as employee's with a certain amount guaranteed for ...
  A: Kathryn, Thanks for your question. No, these are moving expense payments which should be reflected ...
Disability benefits from my employer11/16/2010
  Q: I am currently off work due to an on-the-job accident. The worker's compensation case is pending. My ...
  A: Rose, Thanks for your question. The STD benefits are taxable if the employer paid the cost of the ...
claiming interest on savings bonds11/16/2010
  Q: My dad has about $20,000 worth of series E and EE bonds that were purchased between 1965 and 1984. ...
  A: Joe, Thanks for your question. You are mixing two different issues. First is the issue of ...
CDL tax preparation11/15/2010
  Q: What forms do I need when preparing taxes to itemize from trying to lease/purchase option a truck? ...
  A: Jean, I think you may be in luck. First, I presume that you are leasing the truck to use in your ...
Section 179 deduction11/14/2010
  Q: I own a small business and also work for an outside employer. I file a schedule E for the business ...
  A: John, Thanks for your question. The Sec 179 limitation applies to your "aggregate taxable income ...
land sold after house fire11/13/2010
  Q: I paid $75,000 cash for a house on 20 acres of land. I lived in the house for 5 years. Then the ...
  A: Leonard, You will need to allocate the $75,000 original cost between the house and the land. ...
Taxable Income for Full Time Grad Student Filing Individual11/13/2010
  Q: I reside in NYC. I am considering going back to grade school full-time and working full-time, ...
  A: Andrew, Thanks for your question. Your student status does not have any effect on the taxability ...
Energy Tax Credit (Replacement Windows)11/12/2010
  Q: Question concerning the Energy Tax credit for replacement windows -- it is 11 Nov 2010; I want to ...
  A: Sean, Thanks for your question. No, the law specifcally states that the windows must be in service ...
Church contributions and Social Security number11/11/2010
  Q: Sir, I have recently been told that congregates who are interested in receiving tax exemption for ...
  A: Brad, Thanks for your question. At this time, to the best of my knowledge there is no truth to ...
Sign On Bonus Repayment11/10/2010
  Q: In June of 2009, I accepted an offer for employment which included a $15,000 sign on bonus. The ...
  A: Steven, Thanks for your question. You have a couple of options. Since the amount in question ...
Traveling employee11/10/2010
  Q: I am a traveling employee with residency in WI, my company is based in MD - I can travel weekly to ...
  A: Saj, Thanks for your question. Your situation is rather complex, and I doubt if I can give you ...
Tax treatment of a perpetual easement11/10/2010
  Q: I have a farm and I have been paid $300k by a wireless company for rights to put a tower on my land. ...
  A: Catherine, Thanks for your question. If it is a perpetual easement that denies you the beneficial ...
Is Missionary Employee or Self Employed11/10/2010
  Q: The church I do financials for is planning to send an individual into the field (out of country). ...
  A: He will contintue to be an employee as long as he is paid directly by the church. If he forms a ...
Is Missionary Employee or Self Employed11/10/2010
  Q: The church I do financials for is planning to send an individual into the field (out of country). ...
  A: Elizabeth, Thanks for your question. Since you are paying the missionary directly and not through ...
Tax Liability11/9/2010
  Q: Hopefully you can shed some light on this. I took out a couple of 100Ks from my 401k and savings ...
  A: Greg, Thanks for your question. The amount is probably correct. If you withdrew funds from a ...
Tax Bill11/9/2010
  Q: I am a 32 yr old male living in New York City. I currently owe back taxes for the years 2003-2008. ...
  A: Avi, Thanks for your question. You have limited options. First, the "tax attorneys" and others ...
Buying a home from a friend11/9/2010
  Q: I am thinking about buying a home from a dear friend who says due to his business he needs more tax ...
  A: Mel, Thanks for your question. Assuming it is his personal residence and not a rental unit, there ...
Deductions11/9/2010
  Q: I have found anything that explicitly stated what is deductible for rental properties. I am set to ...
  A: Parker, Thanks for your question. When you are rehabbing a house, you are getting it ready for ...
Partial Property Gifts to stay under gift tax exemption11/8/2010
  Q: My parents helped my husband and I buy our home. They would now like to gift their ownership ...
  A: Robin, Thanks for your question. That would work, but it would be a lot of unnecessary bother and ...
109911/8/2010
  Q: I'm stuck with preparing the 1099s for my company. I've been hearing that there are some changes as ...
  A: Greg, William couldn't take your question, but I can give you an answer. The new 1099 rules do not ...
stupid question about worldwinner 109911/8/2010
  Q: i'm embarrassed to ask this but i've been playing on worldwinner for a few years and for the 1st ...
  A: Donna, Thanks for your question. You report the gross amount of gambling winnings on line 21 of ...
sale of property at primary residence11/7/2010
  Q: In early 2010 we paid $60,000 for our house on 38 acres. We have been offered $35,000 for 5 of our ...
  A: Judy, Thanks for your question. No, it would not qualify as you are not selling your residence. ...
taxes on inherited stocks11/7/2010
  Q: my dad left me 2700 shares of J.P. Morgan bank. i cashed them in,how much tax do i owe
  A: Shannon, The answer depends. If you inherited the stock in 2010, your basis is his original basis. ...
Physical Presence Test for tax exemption11/7/2010
  Q: Mr. Stancil, I arrived overseas 12 Sep 09 and am still working overseas to this date, 7 Nov 10. ...
  A: Rod, Thanks for your question. Your tax lady is incorrect. The 330-day physical presence test is a ...
Churches and 1099's11/7/2010
  Q: My some years ago started helping as the Parish Administrator as the Church grew. The Church board ...
  A: Jack, Thanks for your question. This has not been handled properly. She is an employee and should ...
CPA exam fees and tax effects11/5/2010
  Q: I came across this website while researching some information on any tax breaks related to the CPA ...
  A: Joseph, Thanks for your question. The exam fees for taking the test and the Becker course are not ...
Nanny Tax11/4/2010
  Q: I currently watch my friend's daughter 4 to 5 days a week while my friend and her husband work. They ...
  A: Leticia, Thanks for your question. The nannie tax occurs when the payor withholds taxes from you ...
2009 Tax Amendments11/4/2010
  Q: My husband and I are having a difficult time qualifying for home loan. He claimed too many ...
  A: Aimee, Thanks for your question. Although I doubt the IRS would prosecute you for paying too much ...
Capitol gains on home percentage that's owner financed ?11/4/2010
  Q: I am aware of the Capitol Gains Home Sale Exclusion up to $250k. I was wondering if I lose a ...
  A: Nikki, Financing and any gain on the sale are two totally different issues, unrelated to each other ...
taxes on an investment11/3/2010
  Q: I am making an investment on a business in South Dakota. Because I live in Nevada, it is easier for ...
  A: Jessica, If she is listed as the owner, she must pay tax on any gain. Any transfer to you would be ...
Deed-in-Lieu11/2/2010
  Q: I have just completed a deed in lieu last month with property's FMV at $40,000 and my mortgage at ...
  A: Joe, Thanks for your question. The difference is taxable income unless you can prove insolvency or ...
Capital Tax Gains on Gifted Stock11/2/2010
  Q: I received a stock gift of 100 shares in Aug. 2010. The original cost basis(in 1988) was ...
  A: Josie, Thanks for your question. Your gain is $62 dollars a share, but it is long term, since the ...
TAX10/31/2010
  Q: If a home is foreclosed on and sold by the bank for less than the mortgage amount will the previous ...
  A: al, Thanks for your question. Yes, that will be taxable income unless you meet one of the ...
Tax on Transfer of Annuity10/30/2010
  Q: Mr. Stancil I am the owner of a Annuity that has no surrender penalty with a present value of ...
  A: Ron, Thanks for your question. There would likely be no gift taxes. The $10,000 annual exemption ...
Distribution of Irrevocable Trust10/30/2010
  Q: My grandmother created a trust many years ago that paid income to our parents during their life with ...
  A: Bill, Thanks for your question. Two issues arise here. First is the income earned by the assets ...
Back pay10/29/2010
  Q: Recently it was identified that I was not paid for some overtime that I worked for my company. ...
  A: Jared, Thanks for your question. You don't have any options and you don't have to do anything ...
Bowling Tournament Winnings10/29/2010
  Q: I have heard that if you win more than $599 that you need to show it as income. Can you tell me ...
  A: Cory, Thanks for your question. That's not correct. Any amount of winnings are considered taxable ...
help w/ inheritance10/29/2010
  Q: in 8/2008 i paid portion of inheritance tax on property that I received when mom passed so we could ...
  A: Margaret, Thanks for your question. You will owe income tax, at capital gain rates on the gain on ...
Charitable Contribution Payment Method10/28/2010
  Q: Can a person make a charitable contribution for another person? For example, can person A use their ...
  A: I do not quote IRS sources in this forum, as it would take too much time to cite all the relevant ...
Charitable Contribution Payment Method10/28/2010
  Q: Can a person make a charitable contribution for another person? For example, can person A use their ...
  A: Desi, Thanks for your question. No, if the person does not actually make the contribution ...
Rental Property Depreciation10/28/2010
  Q: John, I recently refinanced my rental property and I was wondering if this will have any affect on ...
  A: Dan, Thanks for your question. Your mortgage and your basis are two different items. Refinancing ...
Land Purchase10/27/2010
  Q: John, I read that generally to purchase of land with the intent to build a home is not covered in ...
  A: Bill, Thanks for your question. There are no credits available for the purchase of land, ...
permenant move10/26/2010
  Q: In relation to temporary work expenses: I am starting a new job out of state. This will entail ...
  A: Alan, Thanks for your question. Your tax home will be the place of your new place of work, so any ...
Tax Question10/25/2010
  Q: I am working overseas for a US company supporting the war effort. My question is if I return back to ...
  A: Roger, It does not matter what the reason, if you are not physically present in a foreign country, ...
Tax Exemption10/25/2010
  Q: As an embedded civilian contractor, I arrived in Iraq 11 (1st full 24hours date) July 2010. I will ...
  A: Michele, Thanks for your question. It is not exactly "tax free" time, but an exclusion amount. ...
injured spouse10/25/2010
  Q: I was a stay @ home mom this year because I have A 1yr old & a 2yr old. My ? Is my current husband ...
  A: Tiffany, Thanks for your question. Theoretically, you could file a Form 8379 as an injured spouse, ...
109910/22/2010
  Q: With the new health care laws passed this year we are now req'd to send 1099's to individuals and ...
  A: Molly, Thanks for your question. The law provides that a 1099 be issued for any goods and services ...
Starting one's own business10/22/2010
  Q: I am in the process of starting a film production company, under an LLC, but it will be a ...
  A: Vanessa, Thanks for your question. An LLC or a partnership does not pay taxes, the income is ...
tax free overseas10/22/2010
  Q: My husband left in July 2010 for Iraq where he will work for one year for KBR. He is having the ...
  A: Tanya, Thanks for your question. You will file Form 2555 in 2010 and 2011 to take the foreign ...
Unreimbursed Mileage10/21/2010
  Q: John, The company that I work for reimburses 50% of the IRS mileage when employees use their ...
  A: Crystal, Thanks for your question. To deduct the mileage you would need to complete Form 2106. ...
student and contract labor10/21/2010
  Q: My step daughter is a full time student. She now has a job that she is getting paid as contract ...
  A: Joy, Thanks for your question. As long as she is a full-time student under age 24, her earnings ...
pastor anniversary gift10/20/2010
  Q: An announcement was made at church(and put in the bulletin) that "they" are collecting money to send ...
  A: Lori, Thanks for your question. If it comes from the church, it is taxable income and should be ...
nonprofit church preschool fed id#10/20/2010
  Q: We have a preschool in the basement of our church. It was set-up as a ministry of the church and ...
  A: Tammie, Thanks for your question. It is not required that you get a separate tax ID#, but it would ...
form 112010/20/2010
  Q: what kind of taxes can be deducted on line 17 on form 1120? line asks for taxes and licenses.
  A: Josie, Thanks for your question. Any taxes that you pay that are classified as deductible taxes - ...
Energy Credit10/19/2010
  Q: My husband and I were not married when we filed 2009 tax returns. He filed as single and took the ...
  A: J Thanks for your question. There is a lifetime limit on the the various energy credits. If you ...
corporate gift or loan to our daughter10/19/2010
  Q: My daughter is a college student and would like to "borrow" money from my husbands company "PC" to ...
  A: What you cite is correct, but it must come from the individual. If it comes from the corporation, ...
corporate gift or loan to our daughter10/19/2010
  Q: My daughter is a college student and would like to "borrow" money from my husbands company "PC" to ...
  A: Dina, Thanks for your question. Having the corporation loan your daughter money for college ...
Mid-Year Transfer from MD to CT10/18/2010
  Q: I was transferred from the Maryland location of my company to the Connecticut location on July 5, ...
  A: Adam, Thanks for your question. You can't deduct the withholding but you can get a credit for any ...
Commission Checks10/18/2010
  Q: I get 2 paychecks per month, one being salary plus commission on the same check. Is there a way to ...
  A: Mike, Thanks for your question. The salary and the commission are taxed at the same rate, in the ...
sale of deeded property10/16/2010
  Q: My brother had terminal cancer, in February, 3 days before he passed away he did a quit deed and ...
  A: If you don't know the original cost basis, you will need to come up with a "defensible, reasonable" ...
How Do We File?10/16/2010
  Q: I am need in some help on how to file jointly with my husband. I am a sole proprietor of a small ...
  A: Sounds like he would not have any deductions on his Schedule C. You deduct the 1099 on your return, ...
sale of deeded property10/16/2010
  Q: My brother had terminal cancer, in February, 3 days before he passed away he did a quit deed and ...
  A: Kern, Thanks for your question. Your basis in the land is his original cost basis. You will ...
how to account for a capital loss on an LLC investment which went back to the lender in 200910/16/2010
  Q: I am about to file my 2009 taxes, on which I am due a refund. One nagging question which Turbo Tax ...
  A: Tom, Thanks for your question. Actually there are two issues. The K-1 is a report of the ...
CA Taxable Income10/15/2010
  Q: Spouse $90K all year TX. Transferred no plans on returning to CA. I all year CA.$28K Relocating to ...
  A: Louise, Thanks for your question. Fine as usual with the federal return. Income earned while a ...
1099-C Forgiveness of Debt10/15/2010
  Q: John, I have a $880,000 A&D loan with an institution that has been shut down. The development was ...
  A: David, Thanks for your question. 1. You can work out a payment plan with the IRS to pay your tax ...
Buildout of a duplex apartment10/15/2010
  Q: I am a new landlord. I rented a mother-in-law apartment that I had built in the bottom floor of my ...
  A: NO - The cost of building the apartment are included as a part of the cost of the apartment, which ...
donation to a mission foundation for a particular person10/14/2010
  Q: I've donated certain amount of money each month for the past 16 month to a 501 (c) (3) mission ...
  A: Aria, Thanks for your question. The issue is that you are presuming that your contributions ...
Buildout of a duplex apartment10/14/2010
  Q: I am a new landlord. I rented a mother-in-law apartment that I had built in the bottom floor of my ...
  A: Kathleen, Thanks for your question. Since it was a new apartment, all of the expenses incurred are ...
Sale of land10/14/2010
  Q: My wife has land that she inherited back in 1989 in Illinois. She sold half of it to her brother for ...
  A: You would have to go to IRS Publication 17, or the instructions for Form 1040. Determine your ...
allocation of asset purchase price10/14/2010
  Q: Taxpayer bought assets from a seller for $5,950,000.00. Assets bought were accounts receivable, ...
  A: Jimcpa1981, Thanks for your question. You don't recognize a gain from purchasing. Under proper ...
Coverdell ESA Withdrawals10/14/2010
  Q: In Aug 2010 I paid tuition for my 2 sons at a parochial elementary school in the amount of ...
  A: Donna, Thanks for your question. You do not need to prove it to the IRS unless there is an audit ...
94110/14/2010
  Q: I am confused on 941 line 1. I am wondering if the pay period has to fall on the specific ...
  A: Jason, Thanks for your question. The dates are not a factor in determining if someone is an ...
Writing off an MBA10/13/2010
  Q: I've been self-employed since 2001, operating as a New York LLC. From 2007-2009 I entered a ...
  A: Steve, Thanks for your question. You cannot deduct your loan repayments. You would have to deduct ...
how much do you have to make per year before you are required to pay taxes?10/13/2010
  Q: I am doing a personal home job of babysitting and am making 80 bucks a week. What is the amount ...
  A: Susan, Thanks for your question. It depends on your filing status, your age, and your dependency ...
first time homebuyer's credit10/12/2010
  Q: My husband and I got married in June 2009. I have own a home on my own in the past 3 years. This ...
  A: Candice, Thanks for your question. Unfortunately you were given incorrect information. In order ...
can I 1099 a sub10/12/2010
  Q: I am a sub contractor in GA receiving a 1099 from a client. I need to bring in help to finish a job ...
  A: Michael, Thanks for your question. Not only can you give them a 1099, you are required by law to ...
SEP IRA for individual LLC member10/12/2010
  Q: Can a member of an LLC set up his own SEP Plan outside of the LLC or must it be set up inside the ...
  A: Pam, Thanks for your question. If it is a single-member LLC being taxed as a sole proprietorship, ...
small business education10/12/2010
  Q: I am the owner of a S corp. I have two employees who likes to pursue higher education. i read ...
  A: Ervin, Thanks for your question. Your company must have a written, non-discriminatory plan that ...
taxes10/10/2010
  Q: I am on ss disabuility. I recieve 1200.00 per month. My wife worked this year and made 7200.00 with ...
  A: Bud, I assume your wife is a W-2 employee, and had social security/Medicare withheld. If this is ...
partnership property date of death valuation10/5/2010
  Q: Upon the death of my husband, I inherited his 1/3 interest in a partnership which sole asset is real ...
  A: Lois, Thanks for your question. I wish I knew the answer, but the law in this area is currently in ...
Extension and now how can I file10/4/2010
  Q: Ok my husband and I are going through a divorce and he wanted me to file and extension for him. Well ...
  A: Amy, Thanks for your question. The Form 4868 does not ask for fling status. You can file under ...
capital gaines taxes on divorce land10/4/2010
  Q: My ex husband wanted to keep the house and land in the divorce. I was to receive $55,000. He sold ...
  A: Michelle, Thanks for your question. Since it is a part of the divorce settlement, it is not ...
Capital Gain Tax10/4/2010
  Q: I live in Ohio, I am currently in the process of selling my half of the home I live in to my ...
  A: Kathy, Thanks for your question. There is no provision to avoid the taxation on the sale unless it ...
milage reimbursement10/1/2010
  Q: I am a nurse practitioner working in a cardiology group. We have two offices: the main one I work ...
  A: Anne, Thanks for your question. Unless you can take a deduction for a home office, you cannot take ...
Tax Planning for Sales Commissions From Mexico10/1/2010
  Q: If I earned about $ 300k as sales commission as an agent of real property in Mexico, what is the ...
  A: Santos, Thanks for your question. I presume you are self-employed. You need to report the ...
windfall tax9/30/2010
  Q: I may be receiving a windfall from foreign currency sale. What kind of a tax situation will I be ...
  A: Wayne, Thanks for your question. Most likely that would be classified as a short-term gain (unless ...
S.S. &earnings tax liability9/30/2010
  Q: I retired in Feb. at 62 but continue to work part time. I worked more than I planned and will earn ...
  A: If you pay it back in a subsequent year, you will have to pay tax on the full amount in the year ...
field audit9/29/2010
  Q: I have an upcoming examination and as usual, can't find halt the stuff. what is the best way to ...
  A: Sam, Thanks for your question. I would attempt to reconstruct the mileage, based on your existing ...
Incorporation9/28/2010
  Q: I was self employed for most of 2010 and decided to incorporate in September. Is there any way I ...
  A: Steve, Thanks for your question. No, the corporation was not in existence prior to September so ...
Taxes9/28/2010
  Q: I live in Massachusetts and owe the state 4500 for a 401K balance I took out when I left my past ...
  A: Gary, Thanks for your question. I can tell you what NOT to do. Avoid these companies that ...
Disability and Owed Taxes9/27/2010
  Q: I am on permanent disability. I am not married. I owe Federal taxes from back years. I have spoken ...
  A: Linda, Thanks for your question. If you were to marry and file a joint return, the IRS could ...
Church designations9/27/2010
  Q: What are the requirements for a church establishing a designated account, such as building fund? ...
  A: Van, Thanks for your question. Most of your question is a legal issue outside the area of tax, and ...
Taxes on Tips9/26/2010
  Q: I recently got a promotion into Catering where I make a decent amount of tips on deliveries and what ...
  A: David, Thanks for your question. Tips are taxable income at the state and federal levels, and they ...
Capital Gains Tax Cut9/26/2010
  Q: I recently read an article that stated "taxpayers in the two lowest tax brackets will pay no capital ...
  A: Craig, Thanks for your question. That item is part of the Bush tax cuts and expires at the end of ...
Pregnant and Filing For Taxes9/26/2010
  Q: I am 30 weeks pregnant, and throughout my pregnancy I worked. The baby is going to be born in Mid ...
  A: Shar, Thanks for your question. Unless there is an agreement or court order to the contrary,the ...
Taxes deductible for HELOC9/24/2010
  Q: I have a 500k heloc on a 1.05M house. I bought it cash and plan to use this money to have cash about ...
  A: John Thanks for your question. If you borrow any amount in excess of the mortgage amount at ...
How do I initially fill out form 6739/24/2010
  Q: I recently got hired on with a company that is going to deploy me to Iraq. My hire date is ...
  A: Rey, Thanks for your question. There are actually two components to the foreign earned income ...
1099-C9/23/2010
  Q: I received a 1099-C for a rental property I short saled in the State of Florida in 2009. I purchased ...
  A: AB, Thanks for your question. You have two different issues that you are confusing. First is the ...
social security payback9/23/2010
  Q: I took social security at age 62 and now at 66, I am thinking of paying back my benefits I have ...
  A: Rod, Thanks for your question. The repayment alone is not likely to create an audit regardless of ...
Can SMLLC elect to be taxed as S-corp9/22/2010
  Q: Can Single Member LLC elect to be taxed as S-corp?
  A: Timothy, Thanks for your question. Yes, a single member LLC may elect to be taxed as a S Corp. It ...
Inhertance Tax9/22/2010
  Q: John, I live in California. My mother is in Pennsylvania. Her home has been in a trust since ...
  A: Joselle, Thanks for your question. First, giving the house to yourself is self-dealing and could ...
tax question9/19/2010
  Q: Can I claim my girlfriend on my taxes, she had no income I provided everything for her,but she past ...
  A: Rick, Thanks for your question. If she lived in your household for the entire time she was alive ...
Contract Labor9/18/2010
  Q: I have been working at a company for a little over 2 months now. They pay weekly and I am paid ...
  A: Brittani, Thanks for your question. First, from your description, it sounds as if you should be an ...
Inheritance Gifts9/18/2010
  Q: My mother-in-law sold her house and wants to gift $25,000 to each daughter and $75,000 to her son. ...
  A: Jon, Thanks for your question. She can give the gifts as you specify, probably with no tax ...
TX resident, going to work in CA for 4-6 months9/17/2010
  Q: I have a home in Texas that I intend to keep. I am being transferred temporarily to San Diego to ...
  A: Scott, Thanks for your question. You will owe taxes to CA and will need to file as a non-resident, ...
Tax Deduction on Travel expenses9/17/2010
  Q: I have been hired as a consultant for 3 months and was wondering if I can deduct my commuting ...
  A: Stephanie, Thanks for your question. I presume you are an independent contractor receiving a 1099. ...
State taxes of federal income9/16/2010
  Q: I am a federal civil servant about to transition from a Dept of Treasury job in Colorado to a DoD ...
  A: Dan, Your CPA is correct. For tax purposes, your "tax home" will be NM. The effect of this is ...
Dependent adult9/15/2010
  Q: My recently widowed aunt, age 86, has only social security of $1250/month. We would like to put her ...
  A: John, Thanks for your question. Based on the information you have provided, it appears that you ...
Parents claiming me as a dependent9/15/2010
  Q: I am 23 years old, a non-student (taking an extended break until I know what to go to school for), ...
  A: AJ, Thanks for your question. Since you are not a full time student, are over age 18, do not live ...
filing status for Federal tax return9/15/2010
  Q: I am a 26 year old married female with a son who is almost 3. I'm in the process of getting a ...
  A: Lisa, Thanks for your question. If you husband has not lived in your house at any time during the ...
Please help9/15/2010
  Q: I had a few questions. I do have about 10000 dollars and I am a physician in united states.I am on ...
  A: Nataraj, Thanks for your question. In the US, the long term capital gain rate for someone in your ...
ANNUITY9/14/2010
  Q: MY QUESTION IS; IF I OPEN AN ANNUITY IS THE INITIAL DEPOSIT REPORTED TO THE IRS ?? DO I GET A 1099 ...
  A: Mike, Thanks for your question. I suggest you take the caps key off. Typing in all caps is more ...
Tax question regarding travel9/14/2010
  Q: I live in NJ and work in NJ. My wife accepted a job in Connecticut. She works there 3 days a week. ...
  A: Asim, Thanks for your question. No the rent payments are not deductible. In IRS language, her ...
Eyeglasses9/14/2010
  Q: I have an astigmatism and my vision was bad enough for prescription glasses. Are the eyeglasses and ...
  A: Christopher, Thanks for your question. Those items are deductible as itemized deductions on ...
Medical Expenses9/14/2010
  Q: I usually have a straight forward tax return and file 1040A. Recently I incurred medical expenses ...
  A: Ash, Thanks for your question. Probably not. In order to deduct medical expenses you must ...
California Income Tax9/14/2010
  Q: I live in Las Vegas, NV and I provided my services to a company in Los Angeles, CA on 1099 basis. ...
  A: Nexus in this case means that you have sufficient contact or activity in the state to warrant them ...
Kids Inheriting 401K9/14/2010
  Q: My husband passed away a couple of months ago and my children, ages 7 and 4, inherited a portion of ...
  A: Lenore, Thanks for your question. You would have to file a return for them if you make a ...
Sales Tax9/13/2010
  Q: My father-in-law has recently purchased a vehicle for his brother. While I understand there is no ...
  A: Scott, Thanks for your question. Registration and taxes are not deductible. However, if your ...
Eminent Domain9/13/2010
  Q: I saw on a previous question that you have two years to buy a replacement property if your property ...
  A: Melanie, Thanks for your question. The law applies to any property taken by eminent domain, ...
Depletion on gas well royalties9/12/2010
  Q: My wife inherited several Texas gas well royalties from an aunt in 1993. Reviewing old 1040's I ...
  A: Ed, You are entitled to take depletion from gross royalties. This is a percentage as defined in ...
transfer of assets prior to sale of business9/11/2010
  Q: I am going to sell my S Corp (just elected S Corp status from C Corp status at the end of last ...
  A: Dayna, Not much in terms of ways to reduce your tax liability from such a transaction. They will ...
Nanny - self-employed vs. employee9/11/2010
  Q: I recently became a live-out nanny for a family. I supply the care in their home, as well do light ...
  A: Jessica, Thanks for your question. If you work exclusively for them and do not do this for others ...
church & rental property9/9/2010
  Q: In the state of Florida can a church own property & rent it to a business? Will this effect it's ...
  A: Crystal, Thanks for your question. The location does not matter, this is a federal issue. The ...
foreign income exclusion9/8/2010
  Q: I read an answer with regards to claiming a partial exclusion for the physical presence test for ...
  A: No, in 2009 you can take a reduced exclusion as I previously stated. The number of days in a ...
Gifts and Tax Liability9/7/2010
  Q: My questions concern the gifting of monies to someone and the tax liability involved. Through my ...
  A: Louise, Thanks for your question Your understanding is correct. The only issue with your final ...
Gift Tax/Inheritance9/6/2010
  Q: My father and mother were co-owners of a stock [$100,000]. When my father passed away, my mother ...
  A: Art, Thanks for your question. First, the annual gift exclusion is now $13,000 not #11,000. ...
foreign income exclusion9/6/2010
  Q: I read an answer with regards to claiming a partial exclusion for the physical presence test for ...
  A: You do meet the test for 2009 and would take a pro-rated maximum exclusion. Divide the number of ...
Section 152 of Internal Revenue Code re: full time student requisites9/5/2010
  Q: My 20 year old son has approved accommodations on file, with his community college, due to several ...
  A: Kathy, I did not give you a full answer, as there are different definitions of full-time for ...
Section 152 of Internal Revenue Code re: full time student requisites9/5/2010
  Q: My 20 year old son has approved accommodations on file, with his community college, due to several ...
  A: Kathy, Thanks for your question. Probably not. The definition of a full time student depends on ...
which state do i pay taxes on while working over sea9/5/2010
  Q: I am working in Afghanistan my company is base in NY. My family use to live there but now living in ...
  A: Alfred, Thanks for your question. You will normally owe taxes to your state of residence when you ...
tax exemption for working oversea9/5/2010
  Q: I was wondering working out of the country 330 days qualify you for tax exemption up to $91,000. So ...
  A: Alfred, Thanks for your question. The first $91,400 would be exempt and the additional would be ...
writing of my dispatching for husband9/4/2010
  Q: I have a question. My husband has his own authority and I write off everything I can. Since July ...
  A: You would have to get an EIN (if you don't already have one) from the IRS. With each check you ...
writing of my dispatching for husband9/4/2010
  Q: I have a question. My husband has his own authority and I write off everything I can. Since July ...
  A: Barbara, Thanks for your question. If you have a qualified home office, you can deduct a ...
working overseas9/4/2010
  Q: I am working for a foreign company. I am a U.S. citizen. If I work ten months and return to the U.S. ...
  A: Ron, Thanks for your question. Sorry about the thank you note you received. I hit the wrong ...
LLC or FLP9/4/2010
  Q: My wife and I need advice on the best method to lower our taxes. My wife and I are Registered ...
  A: Alex, Thanks for your question. An LLC is not designed as a tax savings vehicle, it would not help ...
Which state gets my income tax?9/3/2010
  Q: I received a notice of deficiency from the state of MO and I don't agree with it. I have lived in AZ ...
  A: James, Thanks for your question. From your description, you do not appear to owe MO taxes. Your ...
stock loss9/3/2010
  Q: I have a st