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About John Stancil, CPA
(Top Expert on this page)

Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.

Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.

You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes)

Questions Answered By Expert John Stancil, CPA
In Category Tax Law (Questions About Taxes)

Subject	Date Asked

2 jobs	11/17/2008
Q: i have an s corp and would like to employ my cousin part time until rest of year. i am planning to ... A: Unless he claims "exempt" on his W-4 which legally he is probably not entitled to to do so, the ...
2 jobs	11/17/2008
Q: i have an s corp and would like to employ my cousin part time until rest of year. i am planning to ... A: Robert, Thanks for your question. He is not exempt, he simply has not make enough in order to have ...
Passive versus active landlord	11/16/2008
Q: Last year, I could not deduct expenses and depreciation from my rentals because my wife and I made ... A: Thang, In order for the activity to be considered non-passive you must meet two requirements: 1. ...
Roth Early withdrawl for Home Purchase	11/15/2008
Q: My fiancee and I are about to make a first time home purchase. To speed up the closing, my ... A: Jonathan, Since you have not held the Roth for 5 years, your withdrawal of contributions will not ...
Daycare costs	11/14/2008
Q: Can infant daycare costs be written off? A: Phil, If you can claim the child as a dependent you get a credit of 20 to 35% of the first $3,000 ...
alimony	11/13/2008
Q: I got a divorce in 2007, the divorce started in 2006 and in ealry 2007 the courts issued me a ... A: Gary, The laws specifically state that any amount that is alimony must be stated as alimony and ...
tax exemption	11/12/2008
Q: In 1995, I signed IRS Form 8332, both parts I and II, allowing my ex, who was non-custodial parent, ... A: Leslie, Assuming that you assigned the exemption to your ex for all future years, the IRS has ruled ...
Student Tax	11/10/2008
Q: I am a full time college student and full time worker. I heard that when you work full time and go ... A: Autumn, As a student you do not get a larger exemption. Since you are a dependent, you cannot take ...
relationship violating local law	11/7/2008
Q: My fiance is wanting to claim me as a dependent since I am a Stay-as-Home Mom, and he is the father ... A: Jennifer, In some communities, there is a law prohibiting unmarried adults of the opposite sex from ...
IRA and revocable trust	11/6/2008
Q: I have an IRA that is part of a revocable trust. In the trust it states my children are the ... A: Anthony, There are two options with income taxes for trusts. The trust may pay the tax and pass ...
Residency Requirements	11/5/2008
Q: I am currently living in an income tax free state. My girlfriend lives in taxed state, and I've been ... A: Bill, The issue is not whether you intend to return there or not, the issue is where do you spend ...
capital gain tax	11/3/2008
Q: I have 2 homes. Me and my wife are both retired. Last year my wife started working part-time and we ... A: Rudy, You can exclude gain on your principal residence, which is defined as where you reside most ...
Real estate property tax question	11/2/2008
Q: Please help me with a question on real estate property taxes. I own some vacant land. There is some ... A: Arthur, My preference would be for them to pay you, then you pay the tax. This gives you assurance ...
tax credit and dependant inheritance	11/2/2008
Q: I have a two part question. My children under the age 12 received an inheritance from their uncle ... A: Samone, The money taken out of the 529 plan is not subject to tax unless the funds were not used to ...
amended filing	11/1/2008
Q: I lived in my home 6 mo out of 2007 w/2 children. My spouse & I seperated. I filed single/head of ... A: Stephanie, If you were married as of December 31, you cannot file single or head of household. ...
SSN 1 time disbursement tax liability	10/31/2008
Q: My wife just won her disability case in June and got a large 1 time disbursement for back pay. ... A: Phillip, I presume you are referring to Social Security Disability Payments. Yes, the money is ...
Pizza, Miles?	10/30/2008
Q: Can I deduct miles I put on my new car for deliveries. I deliver pizzas so I put alot on it. If so, ... A: Andrew, Thanks for your question. The mileage is deductible, but you must reduce the deduction by ...
Provided Ministerial Housing and a 1099	10/30/2008
Q: My husband and I work at a church. He is the youth pastor and I am the administrator. We have been ... A: Shannan, Thanks for your question. Two issue here. First, I presume that your husband is an ...
Sale/Lease of church property	10/30/2008
Q: 1st-My church owns a building and has an offer to sell it for 800k. Is this taxable or UBTI? 2nd- ... A: Allan, Thanks for your question. The sale of the building would not be taxable income as you are ...
reporting income	10/30/2008
Q: I work for an agency that has to verify client's expenses to verify eligibility. I have clients ... A: Gwendolynn, Thanks for your question. There is no minimum. All earned income must be reported and ...
llc and social security	10/30/2008
Q: I formed an LLC sole proprietorship. I am a business consultant. I am eligible for SS in december, ... A: Jeff, Thanks for your question. As a sole proprietor LLC you will be taxed on the entire earning ...
Claiming dependents after divorce	10/30/2008
Q: My wife and I separated and are sharing equal custody of our son. I have a dependent care account ... A: Brian, The IRS normally gives the dependency exemption to the custodial parent. However, they will ...
Hope Tax Credit	10/29/2008
Q: I am currently enrolled part time in College. I originally attended for about a semester and a half ... A: Justin, Thanks for your question. It does not matter if she took the Hope Credit or not. That ...
Federal/State Taxes for an Estate.	10/29/2008
Q: My questions are regarding an Estate in Maryland. I father passed away in March 2008 and his Estate ... A: You do not have to file if the estate income is under $600. I am not familiar with MD taxes so I ...
gambeling winnings	10/29/2008
Q: I live in Ky but gambel in Indiana. Most of my winnings have had federal taxes witheald at the ... A: Celia, Thanks for your question. 1. You report your gambling winnings on line 21 of the 1040 as ...
Traditional IRA and capital gains tax	10/28/2008
Q: John, I am 65 years old and have maintained a traditional IRA with periodic investments since 1993. ... A: Ernest, Thanks for your question. Since the funds were in an IRA, they are not taxed at the ...
How a bonus should be taxed?	10/28/2008
Q: I am paid my bonuses in full as I earn them. On my monthly paycheck the bonus is added into my ... A: Dan, Thanks for your question. That is one correct way of handling your bonus. The other is to ...
1031 Tax Exhange	10/28/2008
Q: I sold a 4-plex in 2007 and did a proper 1031 tax exchange and purchased 3 TIC properties using ... A: As I said, a foreclosure is considered to be a sale in which you sell the house to the lender for ...
1031 Tax Exhange	10/28/2008
Q: I sold a 4-plex in 2007 and did a proper 1031 tax exchange and purchased 3 TIC properties using ... A: Carla, If they properties are foreclosed on, it is considered a sale for the amount of debt owed. ...
Passive loss limitations with rental real estate	10/28/2008
Q: My wife and I are considering renting out our condo once we buy a house. Our AGI is greater than ... A: Pete, Thanks for your question. No, that is not true. The income from the LLC would pass to you ...
Sponsorships	10/27/2008
Q: I'm starting to get involved in a motor sport where I could be given sponsorships, money and or ... A: Jacob, Thanks for your question. Since the payments are being made by companies or organizations ...
Capital gains on inheritance	10/27/2008
Q: John, thank you so much for volunteering your time to help people with tax questions. We truly need ... A: Clay, Thanks for your question. It is the choice of the executor or administrator to select the ...
taxes from paycheck	10/27/2008
Q: My husband and mom have an ongoing argument about the taxes taken out of their paychecks. My husband ... A: Cheryl, Thanks for your question. The more you work, the more money you take home. The tax bracket ...
Bookkeeper for a church	10/27/2008
Q: I get 60 dollars per month for doing basic bookkeeping. Accounts Payable and keeping track of tithes ... A: It is improper to issue a 1099 to the pastor. He should be receiving a W-2. This applies to anyone ...
Bookkeeper for a church	10/27/2008
Q: I get 60 dollars per month for doing basic bookkeeping. Accounts Payable and keeping track of tithes ... A: Gina, Thanks for your question. It does not matter if the church issues a 1099 or not, that is ...
Timeshare abandonment	10/26/2008
Q: Stancil, First, thank you for your time. In 5/2007 I purchased a timeshare, and later tried to have ... A: Karen, Thanks for your question. If the form you received is a 1099-A you are not financially ...
overseas tax eemption	10/26/2008
Q: I am a federal civil service employee of the US Army Corps of Engineers.I own no property in the Us ... A: Don, Thanks for your question. Federal civil service employees are prohibited from taking the ...
Tax filing Question	10/26/2008
Q: I am 58 years old and my boyfriend is 61. We each own our own home in PA and NJ. He resides in NJ ... A: Ann, Thanks for your question. Filing status is determined by your marital status as of December ...
Marriage and tax filing	10/25/2008
Q: My fiance and I are jrs in college and want to get married without our parents knowing. How does ... A: Abida, Thanks for your question. First, if they claim you as dependents you cannot file a joint ...
claimming dependent child	10/25/2008
Q: Our daughter went to live with our friends. In 2006 they took us to court for legal guardian of our ... A: Debbie, Thanks for your question. Legal guardians can take the dependency exemption if they ...
Issuing From 1099 from church	10/24/2008
Q: My church is supporting someone who's studying in seminary school. The amount includes both the ... A: Helen, Thanks for your question. No, you do not need to issue two 1099's. The amount that is for ...
Paying only personal income taxes instead of corporate income taxes	10/24/2008
Q: I own a C-corporation (or more accurately, 93% of it) with minority shareholders owning the other 7% ... A: Jeremy, Thanks for your question. Probably not legal. You should pay yourself a reasonable salary ...
Capital gain basis?	10/24/2008
Q: I bought a property for $20,000 and paid interest on a real estate contract for 10 years to complete ... A: Salishan, Thanks for your question. If you were unable to deduct the interest expense on your ...
forgiveness of debt	10/24/2008
Q: My question is: How will I know, short of contacting credit card companies, and asking if they are ... A: Joy, Thanks for your question. You will know when you get a 1099-C from them. Regardless of ...
S-Corp membership	10/24/2008
Q: One of my friends has an S-Corporation and is looking to raise capital for his business. The S-Corp ... A: Jon, Thanks for your question. Doing this through another company is an unnecessary layer of ...
Contractor Expense	10/24/2008
Q: I operate a small law firm with another attorney. We are set up as a PLLC (LLC). One attorney is ... A: Rita, Thanks for your question. Your tax liability is only for the earnings that you do not pay ...
Deduct health insurance premiums that are paid by employee pre-tax?	10/24/2008
Q: In a previous answer, you stated that a C Corporation can deduct health insurance premiums for an ... A: The first employer is not deducting the part that your wife pays. You can only be reimbursed for ...
Savings Bonds	10/23/2008
Q: I have about $25k (total value including interest)in savings bonds which I have not redeemed as of ... A: Harry, Thanks for your question. If you qualify for an IRA investment, any amount you place into ...
Capital Gains	10/23/2008
Q: A partner and I started a Dump Truck LLC in 5/2005 in Washington State. We were doing pretty well ... A: Wendy, Thanks for your question. Either you misunderstood your accountant, or he is seriously ...
load to director	10/23/2008
Q: In 1998, the board of our state Association of churches [a 501(c)3 organization] lent the Missions ... A: Bryan, Thanks for your question. As a CPA and not an attorney, I am prohibited by law from ...
Gifting a motorcycle from Oregon to Ohio	10/23/2008
Q: My significant other is gifting his uncle a Harley motorcycle that is value around ... A: Patti, Thanks for your question. LIkely none. Since the amount of the gift exceeds $12,000, it is ...
IRS Withdrawl for Land Purchase	10/23/2008
Q: Mr. Stancil, My wife and I are considering withdrawing $8k from my IRA (I rolled it over from a ... A: Eddy, Thanks for your question. No, you would not qualify. The rules for avoiding the 10% penalty ...
Taxed on sign-on bonus, and now paying back sign on bonus. How do I get the taxed monet back?	10/22/2008
Q: I received $20,000 dollars last year as part of sign-on bonus. I earned 22,000 and they added the ... A: Chiraq, Thanks for your question. What you have is a refund of a previously taxed amount. There ...
Minister medical reinbursement taxable or nontaxable	10/22/2008
Q: I am the treasurer of my church and suggested that we get a payroll service. I thought that getting ... A: John, As far as the expenses are concerned, it does sound like an accountable plan to me. Just be ...
Rental property basis and tax questions	10/22/2008
Q: I bought my sister's house at foreclosure in Dec, 2007. She is now my tenant. My basis in the ... A: Jim, Thanks for your question. 1. No. you cannot apply the sale price to reduce your basis. 2. You ...
DEBT FORGIVENESS ACT	10/22/2008
Q: THIS IS THE SITUATION: About three yrs. ago, we "sold" our home in Las Vegas to a couple that was ... A: You must meet all three criteria. Canceled debt will not be included in taxable income if it is ...
computer deductions	10/22/2008
Q: I have a laptop bought in 2000 for $1200 and a desktop bought in 2003 for $500. Both personal ... A: Franko, Thanks for your question. The computers should be placed on you company books at fair ...
Deduct Cost of Purchasing Customer Accounts?	10/22/2008
Q: Last month I purchased a block of customer accounts and basic equipment from a local business. It's ... A: Paul, Thanks for your question. 1. Presuming you have a positive net income, you can take a Sec ...
Taxes to be withheld	10/21/2008
Q: John: I am trying to get information for my mother, who lives in Alabama and working in a child/day ... A: Barbara, Thanks for your question. Yes, taxes should be withheld - Federal income, state income, ...
restricted giving to individual	10/21/2008
Q: Can a person from outside our church donate funds to an individual on our church staff to help ... A: Steve, Thanks for your question. Someone can give to an individual staff member. However, if ...
dependent/ taxes	10/21/2008
Q: Can I claim my friend (who is age 41 & on disability/not working) who is living in my house for this ... A: It depends. If the disability income is of a nature that it is not taxable, it is not included. ...
Life Insurance Irrevocable Trust	10/21/2008
Q: John, My wife is a trustee for an irrevocable trust set up by her parents for our children's ... A: Mark, The statute of limitations is 3 years from the due date or the date the return was filed. ...
Depreciation	10/21/2008
Q: What is the correct way to depreciate a flat bed purchased in 2006 for a owner operater trucker? ... A: Not for MACRS, no salvage. The convention depends on which one you qualify for. Normally you use ...
dependent/ taxes	10/21/2008
Q: Can I claim my friend (who is age 41 & on disability/not working) who is living in my house for this ... A: Melissa, Thanks for your question. You can take a dependency exemption for her if all the ...
DEBT FORGIVENESS ACT	10/21/2008
Q: THIS IS THE SITUATION: About three yrs. ago, we "sold" our home in Las Vegas to a couple that was ... A: Karen, Thanks for your question. You can exclude the canceled debt from your income if you meet ...
Life Insurance Irrevocable Trust	10/21/2008
Q: John, My wife is a trustee for an irrevocable trust set up by her parents for our children's ... A: Mark, Thanks for your question. 1. A trust is required to file a return every year it is in ...
Taxes on sale of Easement rights.	10/21/2008
Q: John, Over twenty years ago I purchased some undeveloped land in the Cascade Mountains together ... A: Bill, Thanks for your question. Based on the information that I have at my disposal, it indicates ...
Single Member LLC	10/21/2008
Q: John, I am a secretary for a small courier company that began operations in 2006. In March 2008 the ... A: He should simply withdraw funds and pay his bills out of his personal checking account. This is ...
Owner Financed - Claiming the interest	10/21/2008
Q: My husband and I owner financed our home. There is an 8.6% interest rate on our loan. Are we able ... A: Michelle, By owner-financed, I presume you mean seller-financed - the previous owner financed the ...
Parsonage use by youth director	10/21/2008
Q: Our Church wants to let our youth director use our parsonage. Is he allowed to use the parsonage as ... A: David, Thanks for your question. Any minister who is ordained, licensed, or commissioned by the ...
CA State Tax	10/20/2008
Q: Here is my situation, I'm a software consultant, In 2005, I worked in CA for the whole year and ... A: Yogi, Thanks for your question. First, the IRS does not send out notices for state taxes. Most ...
Minister medical reinbursement taxable or nontaxable	10/20/2008
Q: I am the treasurer of my church and suggested that we get a payroll service. I thought that getting ... A: John, Thanks for your question. Unless there is a qualified medical plan in place for all ...
Single Member LLC	10/20/2008
Q: John, I am a secretary for a small courier company that began operations in 2006. In March 2008 the ... A: Sue, Thanks for your question. Yes it matters quite a bit. By intermingling funds he is ...
Income Tax on Lump Sum Payment	10/20/2008
Q: My position with my current employer is going to be terminated as of 12/31/08. I will be receiving a ... A: Peter, Thanks for your question. Yes, it will be subject to social security/Medicare. The amount ...
Same Sex property sale	10/20/2008
Q: My partner and I have ended our relationship and are close to a settlement agreement on the home we ... A: Debi, If you have owned the house and lived in it as your main home for 24 of the past 60 months, ...
Int'l Intern - Houseing	10/20/2008
Q: we have a buissness here in Floida - whereas we also have international students Interns come from ... A: You did not ask about the intern's tax treatment of the rent. There are two issues here. For the ...
Int'l Intern - Houseing	10/20/2008
Q: we have a buissness here in Floida - whereas we also have international students Interns come from ... A: Lucy, Thanks for your question. If I correctly understand, you are wanting the company to pay the ...
taxes on sale of vacant land	10/20/2008
Q: My grandmother recently inherited some property. She sold 10 acres to my mother for $20,000. Will ... A: Racheal, Thanks for your question. Your grandmother's basis in the property is the fair market ...
Injured Spouse	10/20/2008
Q: My husband and I file married, jointly. My question is, can I file injured spouse if I didn't work, ... A: Jennifer, Thanks for your question. No. One of the requirements for injured spouse relief is that ...
Can I be claimed as a dependant?	10/20/2008
Q: I'm a perminant resident of the US since July 17th 2008 and I'm 20. Since that time though my father ... A: Shirin, Thanks for your question. In order for you to be claimed as a dependent, the following ...
Capital Gains Tax on second home co-owned	10/19/2008
Q: Purchased condo in Florida as second home for my adult daughter to live in while attending college. ... A: David, Thanks for your question. Since the transaction has been completed there is only one way to ...
How to determine old fair market values	10/19/2008
Q: My sister and i inherited 3 undeveloped lots over 9 years ago and i have no idea of how to get a ... A: Thomas, Thanks for your question. For property values that old, you best bet would be to estimate ...
Business Taxes	10/19/2008
Q: Do I have to file annual taxes for my business although, all profits are paid to myself and ... A: Don, Thanks for your question. If it is income taxes you are asking about, the answer is "yes" you ...
Hobby	10/18/2008
Q: I currently am running a "hobby business". It is not a full business according to the IRS because I ... A: Tyler, Thanks for your question. As far as income taxes are concerned, it would be treated pretty ...
Can me and my fiance file joint	10/17/2008
Q: Can me and my fiance file joint tax return. we have lived together the whole year. if not can i ... A: Andrew, Thanks for your question. No, you must be married to file a joint return. If you are ...
Characterization of Lease Termination Payment	10/17/2008
Q: We have an opportunity to sell a commercial building but must deliver it free of tenants. The last ... A: David, Thanks for your question. Sorry, but the payment for lease cancellation is taxable income. ...
Property Damage Reimbusement	10/17/2008
Q: I work for a construction company that insists on issuing a W 9 form for checks that are written to ... A: David, Thanks for your question. Since the payments are being made to compensate for damages, the ...
2008 Income Tax Return	10/17/2008
Q: Mr. Stancil How are you? My question ... A: Annette, If you don't show a profit for 3 of 5 years, the IRS can reclassify your business as a ...
Taxes	10/17/2008
Q: Stancil, I have a tax question for you. Due to certain stocks, and some bad judgement on my part, I ... A: Duane, Thanks for your question. Capital losses are deductible on your state taxes as well. ...
Bonus Depreciation	10/17/2008
Q: A restaurant in New Orleans is making some improvements to a building in 2008. How long do they ... A: Brandi, Thanks for your question. Non-residential real estate is depreciated under Sec 168 ...
Claiming dependent child	10/17/2008
Q: My husband had a child with his ex girlfriend whom the child lives with. It was court order that he ... A: Debi, Thanks for your question. If more than one person claims the child, the IRS will send both ...
equity line deduction	10/17/2008
Q: I have a primary residence valued at $1,300,000. I took out a first mortgage of $960K, which is now ... A: Ray, Thanks for your question. Sorry, but it does not work that way. Interest on HELOC debt in ...
Insolvency, 1099C and Short Sale	10/17/2008
Q: I am selling a property as a short sale. The bank will send me a 1099c. In calculating assets ... A: Tony, Thanks for your question. You must include everything you own and everything you owe just ...
LLC (rental property) & personal income tax	10/16/2008
Q: Mr. Stancil, Our total income is about 260,000 last year. AGI is about 210,000 last year. Both of ... A: The salary is earned income and is in a different category than passive income. Passive losses can ...
rental and LLC	10/16/2008
Q: i want to get into the rental property business. a lot of people tell me to form LLC for protection ... A: Ervin, Thanks for your question. With an LLC you have the option to be taxed as a sole ...
breeder cattle sale	10/16/2008
Q: My Father passed away and left the farm to my Mother.She sold all the cattle. (Cows,bulls and ... A: Bljensen, I apologize for not answering your question sooner. It was one that required some ...
Employee v Independent Contractor	10/16/2008
Q: I have been helping my church with their finacials--a/p, g/l, etc...We were treating me as an ... A: Khaki, Thanks for your question. It sounds as if you are an employee. The cleanest approach is to ...
Taxation Question	10/15/2008
Q: I am new to the business world and a little confused on how I am going to be taxed this year. I set ... A: Brittney, Thanks for your question. If your businesses have not generated a profit, you will have ...
501c3 travel expense	10/15/2008
Q: I am a volunteer president of a 501c3. I am traveling as a representative of my 501 c3, in volunteer ... A: Tom, Thanks for your question. It doesn't matter, just report it as a volunteer out of pocket ...
LLC (rental property) & personal income tax	10/15/2008
Q: Mr. Stancil, Our total income is about 260,000 last year. AGI is about 210,000 last year. Both of ... A: Lily, Thanks for your question. No, the characteristic of the income pass from the LLC to you ...
Federal First Time Homebuyers Credit	10/15/2008
Q: My cousin and I are co-borrowers on a mortgage for our first home. I checked into the qualifications ... A: Mike, Thanks for your question. I can find nothing that specifically addresses that issue. Since ...
filing TR in different states	10/15/2008
Q: John, I am preparing tax return for my friend that lives in Oregon but he works in California. He ... A: Alex, Thanks for your question. California has an income tax and he must file in that state as a ...
Vehicle expenses for a business	10/15/2008
Q: Under what circumstances can a vehicle purchased for a business be treated as an expense and have ... A: Laurel, Thanks for your question. What you are referring to is a Sec. 179 deduction. There are ...
Tax treatment related to sale of private company stock	10/14/2008
Q: John, In 2007, my company was sold in a 100% cash transaction. We received 85% of the proceeds at ... A: Chris, Thanks for your question. You can make an estimated payment now. When you complete your ...
Sale of Primary Residences	10/14/2008
Q: I purchased a home in DC in 2000 and used it as my primary residence. Prior to our marriage, my ... A: James, Thanks for your question. 1. If the Maryland house that you sold was in your wife's name ...
Collection	10/14/2008
Q: A collection agency gave me a call last week to collect a 10 year old debt they said they bought the ... A: Ziad, Thanks for your question. Yes, they can file a 1099C for the unpaid debt regardless of age. ...
Tax	10/14/2008
Q: Here is the situation I inherited 250K in a traditional IRA from my father that recently passed. He ... A: If you currently have income of $100,000, then approximately $28,000 would be taxed at your current ...
Tax	10/14/2008
Q: Here is the situation I inherited 250K in a traditional IRA from my father that recently passed. He ... A: Tom, Thanks for your question. You would be taxed at the applicable marginal rate, the same as ...
401k and 457 to use for college	10/14/2008
Q: I mistakenly started a 401k and a 457 for my kids college. Now the time has come and I can't use it. ... A: John, Thanks for your question. A rollover is not difficult. Just decide what company you wish to ...
w-4 forms	10/14/2008
Q: I am currently residing in a different state(WI) than I work(KS) how am I supposed to fill out my ... A: I can't say if you will owe at the end of the year or not. It depends on the relative tax rates ...
2nd job milage	10/13/2008
Q: Work as a manager for wood shop but also to cabinet drawings (CAD) at home, this brings up to 30K ... A: Steve, Thanks for your question. No, the trip from work to home is considered commuting. If you ...
Ministerial housing allowance	10/13/2008
Q: I have been licensed by my church in California and sent out as a missionary to New York City. ... A: Tom, Thanks for your question. You would need to set up a tax exempt organization to receive the ...
monetary gifts and transfer of deed	10/13/2008
Q: my father was recently incarcerated and had left around 50,000 in cash to me as well as a home. I ... A: Nicole, Thanks for your question. These items are considered gifts and are not taxable income. ...
Tax on sale of rental property	10/13/2008
Q: I used to co-own a piece of rental property in NYS. Me and my partner owned it for 20 years and ... A: Jeff, Thanks for your question. First, it is likely that your taxable gain exceeds $1,000. If it ...
Own Two Houses - Which one should I rent out?	10/13/2008
Q: I currently own two homes. House #1 was purchased in April 2006 (and we have lived in it since ... A: I can't tell you that. The projects are most likely capital projects and could not be written ...
Form 673 OCONUS and taxes	10/13/2008
Q: I entered Iraq in June of 2008. I will be contracting for more then a year and I will not enter ... A: John, Thanks for your question. That is correct. Since you were in Iraq starting in June, you ...
claiming grandchildren on our tax return	10/13/2008
Q: My two young grandchildren live with me and my husband and. Up to now my daughter has claimed them ... A: Nancy, Thanks for your question. You could file, claiming the children. The IRS will then send ...
Own Two Houses - Which one should I rent out?	10/13/2008
Q: I currently own two homes. House #1 was purchased in April 2006 (and we have lived in it since ... A: Rachel, Thanks for your question. As long as you meet the 24/60 rule you can exclude gain on the ...
Claiming mileage	10/13/2008
Q: John, my in-laws have recently moved out of state and gave my husband the family business which they ... A: Jon, Thanks for your question. First, since they no longer are involved in or own the business, ...
Per Diem in Cook County Chicago	10/13/2008
Q: I am planning to join a company as a contractor which is willing to pay a per diem rate of $25/Hr, ... A: Dillon, Thanks for your question. Per-diem amounts are usually taxable, as they fall under what ...
Timeshare deduction	10/13/2008
Q: this is a follow up question to the one you answered regarding giving up a timeshare. I have had a ... A: Joyce, Thanks for your question. Probably not. To the extent that the timeshare was personal use ...
church offering SEP-IRA	10/13/2008
Q: If a church decides to offer a SEP-IRA to it's full time paid staff, is it required that the church ... A: Steve, Thanks for your question. If you offer a SEP-IRA, an employee must be covered if they are ...
Business loss	10/13/2008
Q: I have an LLC Auto Body Shop Business that I have been operating for several years. A few years ... A: Sandi, Thanks for your question. Upon liquidation of the business, the business had certain assets ...
Payment deemed as a gift or 1099 income	10/13/2008
Q: I work for a small closely held corp with about 8 shareholders. Two of the shareholders are wealthy ... A: The issue is, "would this amount be paid to you apart from the employment relationship?" Likely not, ...
short sale and 1099 reporting	10/13/2008
Q: Do we pay income tax on the difference of what the house sold for and the appraised value, or is the ... A: Diane, Thanks for your question. The 1099 will be issued with the selling price and the amount of ...
To sell or not to sell, that is the question...	10/13/2008
Q: McConnaughy, I am 56 years old, and hope to be able to continue working for another 10 years full ... A: Deborah, Mr. McConnaughy could not answer your question, but I think I can help you. If you ...
Rental of a home and IRS home exemption	10/12/2008
Q: My 84 year mom has owned her house for 40 years. During the last 2 years she rented her home out ... A: Jonathan, Thanks for your question. She would have to live in the house as her principal residence ...
retirement	10/12/2008
Q: my father is 75 years old and retired from work 2 years ago. he wants to go back to work part time ... A: Manuel, Thanks for your question. If his filing status is single, he can have up to $10,300 in ...
California Tax for Non-Resident Property Owner	10/12/2008
Q: I am a US citizen working as an expatriate in Thailand for last 3 years (since October 2005) and ... A: Nichada, Thanks for your question. Owning a house or a lot is not really a determining factor, ...
fair market Value	10/11/2008
Q: My mother-in-law passed away this year. We inherited her land. We've sold 12 1/2 acres. Do we have ... A: Kathy, It depends on what you sold it for. Your basis in the land is its fair market value as of ...
2 homes and seperated: tax implications	10/11/2008
Q: My wife and I recently seperated on good terms and have purchased a second home together as my ... A: Bill, Thanks for your question. It does not matter. Since you are filing a joint return, just put ...
w-4 forms	10/11/2008
Q: I am currently residing in a different state(WI) than I work(KS) how am I supposed to fill out my ... A: Jennifer, Thanks for your question. You can have taxes withheld for both states if your employer ...
2008 Income Tax Return	10/11/2008
Q: Mr. Stancil How are you? My question ... A: Annette, Thanks for your question. Unless you are realizing losses every year, the advice to file ...
TAX ON PER-DIEM / MEALS AND INCIDENTALS	10/11/2008
Q: I work for a U.S. company overseas I have been here for 11 months and our company has just sent out ... A: Tim, Thanks for your question. If you assignment is for more than 12 months or for an indefinite ...
Transfer of property	10/10/2008
Q: My client's parents are transferring their primary home and residential rental property to their son ... A: Jeff, There is no stepped up basis as it is a gift. It is not a good idea to transfer the primary ...
Gift money from parents	10/10/2008
Q: My mother is deceased. My father is in an Alhzeimer's Faciltiy. My brother has POA over my dad's ... A: Shelly, Thanks for your question. From a tax standpoint, there are no returns to file or papers to ...
Non-filed Tax Returns	10/10/2008
Q: I hoping to obtain information for my father-in-law and mother-in-law. She was recently diagnosed ... A: Patricia, Thanks for your question. If their income level has been sufficiently low so they do not ...
Short Sale Vs Foreclosure Vs. Divorce	10/10/2008
Q: I own a home in my PERSONAL TRUST (in Florida). It is my primary residence. Due to my divorce I am ... A: I can't recommend either way. There will still be a 1099 regardless of which route you take. As ...
Schedule C	10/9/2008
Q: I contracted with a company to do some office work for them from my home and they will be sending me ... A: Home office expenses are determined on Form 8829. To deduct a home office, you must have an area of ...
foreign tax - us citizen	10/9/2008
Q: I moved to Germany in 2006 and plan to stay here. I converted most of my savings to euros. I have ... A: Jeff, Thanks for your question. Yes, you will have a conversion gain or loss only upon the sale of ...
Tax law for a business	10/9/2008
Q: This is a three part question. First can I own a bussiness that just deals with buying/selling ... A: Eric, Thanks for your question. It is possible to own such a business, but the IRS would ...
Business expenses	10/9/2008
Q: and thank you for volunteering your time. I am a professional golfer who is just getting started out ... A: John, If you are employed as a pro at a golf club or course, that would be considered your tax ...
real estate	10/9/2008
Q: I could not sell my first home by the time I closed on my second home. The first home is now vacant ... A: No, it is a personal residence, not a rental or investment property. You can only deduct interest ...
Short Sale Vs Foreclosure Vs. Divorce	10/9/2008
Q: I own a home in my PERSONAL TRUST (in Florida). It is my primary residence. Due to my divorce I am ... A: Elizabeth, Thanks for your question. Based on the numbers you have provided, you would have debt ...
back taxes for students	10/9/2008
Q: i live in colorado, in 2004 i had two children living in florida, going to college full time and ... A: Jim, Thanks for your question. I don't know how diligent the Colorado Department of Revenue is in ...
dependent question	10/9/2008
Q: My ex boyfriend and I are having a baby in December. We are unsure how this will change our taxes. ... A: Sara, Thanks for your question. The child can only be claimed by one taxpayer as a dependent. ...
Home Rental	10/9/2008
Q: Two questions please. (1) I rent a portion (10%) of my primary residence that has its own seperate ... A: Syed, 1. That is correct. First, your Schedule A will show less interest than the 1098 so the IRS ...
DEATH OF A TAXPAYER WHO OWES PAST MONIES	10/9/2008
Q: MY HUSBAND DIED IN JUNE AND OWES THE IRS ABOUT 10K IN PAST SOLE PROPRIETORSHIP TAXES. MY NAME IS NOT ... A: Patty, Thanks for your question. Since you filed joint returns you are liable for the debt. ...
rental property	10/9/2008
Q: I have a home that I am renting out,can I use it as a tax deduction? When you have a rental property ... A: Shannon, Thanks for your question. With a rental you must file Schedule E as part of your 1040. ...
Gifted money	10/8/2008
Q: I am in real estate, and given the current market, I'm not making much money. While I try to build ... A: Angie, Thanks for your question. Gifts are not income, so you do not have to include them on your ...
Missionary tax issues	10/8/2008
Q: My husband sold our two businesses to go into full-time missionary service at an orphanage in ... A: Michelle, Thanks for your question. I can't tell you how to find a person capable of preparing ...
Capital Gains question/sale of second home	10/8/2008
Q: I will put this in chronological order to help you in offering your expertise in what kind of tax ... A: Tina, Thanks for your question. Inheritance taxes and income taxes are two different issues, you ...
Corporate Vehicle	10/7/2008
Q: I have a client who personally owns a truck, which is registered to him, and insured personally, ... A: Soraya, Thanks for your question. Since this is a volunteer forum, I do not cite code sections or ...
monthly employee withholding	10/7/2008
Q: I started an S-Corporation and I'm the only employee. The corporation gets a 1099 from it's client ... A: Max, Thanks for your question. Yes, if you do not pay yourself a salary with withholding and a ...
Personal income tax	10/7/2008
Q: My employer takes out income taxes on the following four codes: FEDM, GSM1, MEDI, & SOSC. (By the ... A: Maria, Thanks for your question. The FEDM and GSM1 are based on your level of income, frequency of ...
Claiming Child Dependent	10/7/2008
Q: My stepson just turned 9, my wife and his dad were never married. She has never claimed him on her ... A: Robert, Thanks for your question. Unfortunately, the judge can rule who is entitled to the ...
Lending a church vehicle to a pastor that resigned	10/7/2008
Q: Our church pastor resigned and used a church vehicle. The board wants to let the pastor still use ... A: Bobby, There are several approaches. Probably the simplest is the cents-per-mile method in which ...
taxes on a lufe estate	10/7/2008
Q: My Mom died earlier this year.(we live in Wisconsin) Her surviving kids became owners of her home, ... A: Joe, Thanks for your question. You will owe income tax on the gain from the sale of the house. ...
Sale of daughter's house	10/7/2008
Q: My daughter bought a house in 2002 for 260,000, but as a relatively new member of the workforce, ... A: Allan, Thanks for your question. Unfortunately, you are on the hook for 2/3 of the profit earned ...
Lending a church vehicle to a pastor that resigned	10/7/2008
Q: Our church pastor resigned and used a church vehicle. The board wants to let the pastor still use ... A: Bobby, Thanks for your question. Since there was an employer-employee relationship the use of the ...
Renting an inherited property	10/7/2008
Q: My question is regarding the tax treatment of an inherited property. Do we get a two year exemption ... A: No, it is not quite accurate. Your losses only reduce your basis if the losses are not deductible. ...
investment loss through fraud	10/7/2008
Q: I invested in a company over 2 years ago. I was supposed to receive 8% interest quarterly. In the ... A: Rachelle, Thanks for your question. Most likely not. The requirements for Sec. 165 are pretty ...
Trust disbursement	10/7/2008
Q: My sister died in 1999. I was the successor trustee of her living trust. In her trust, she left my ... A: Chris, Thanks for your question. Based on your description, there should be no taxes involved ...
ESOP / 401K	10/6/2008
Q: I recently left an ESOP company after 10 years. At the time I was leaving, I found out that they ... A: Steve, Thanks for your question. Although plans differ significantly, it is not uncommon for an ...
internship tax question.	10/6/2008
Q: I am an international student on F1 visa(non-resident alien), who recently acquired a paid ... A: Saahil, Thanks for your question. If you make estimated payments, you would send them on Form ...
Renting an inherited property	10/6/2008
Q: My question is regarding the tax treatment of an inherited property. Do we get a two year exemption ... A: You can exclude the capital gains up to $250,000 ($500,000 married filing jointly) if you have owned ...
mileage reimbursement	10/6/2008
Q: John, I am an ordained minister with the Christian Church. I have an approved form 4361. I work ... A: Robert, Thanks for your question. I presume this is a paid position. As such, the mileage between ...
deduct property tax.	10/6/2008
Q: I live in a property which I partly own. The portion which I don't own, belongs to other family ... A: Gino, Thanks for your question. There are two criteria for deducting property taxes. You can ...
Death of spouse	10/5/2008
Q: Wife Carol died in Sept. I need to prepare HER return for jan-sept 2008.One 1099 and one K-1 is ... A: Joel, Thanks for your question. First, whatever return you file will be for the entire year. You ...
equity allowance advice	10/5/2008
Q: Recently, my husband(full time pastor)had additional duties put on him by the death of a fellow ... A: Wilma, Thanks for your question. My advice would be for the church to increase his salary by that ...
depreciation recapture	10/5/2008
Q: I purchased two rental homes last year. I plan to sell them for a gain in two years. I understand ... A: Everett, The gain on the real estate will not exceed your marginal ordinary income rate. Some of ...
My own business	10/3/2008
Q: I jsut started my own catering business and and set up as an S-Corp, which my CPA told me that ... A: Mary, A couple of issues. You many not want to do payroll, but if you have people whom you ...
Severance Pay Taxes	10/3/2008
Q: I'm receiving severance pay at this time after 9 years of service and the information I received ... A: Wanda, Severance pay can be taxed at a flat 25% or at your usual withholding rate depending on how ...
Relocation PKG Taxes	10/2/2008
Q: I recently relocated, my company moved me from one facility to another. They offered a relocation of ... A: Stephen, That's pretty much correct. The amounts paid to the movers should not be taxable income ...
Employee or independent contractor	10/1/2008
Q: I have been working for a company most of this year as an independent contractor, but I believe ... A: James, From your description, it sounds as if you are a W-2 employee rather than a 1099 independent ...
Partnership	9/28/2008
Q: I am in a partnershp, 1 of 2 equal partners and contributed land with a basis of 15,000 and a FMV of ... A: Bobby, Thanks for your question. You will report your share of the loss on the sale of the land as ...
Unreimbursed employee expenses	9/28/2008
Q: I have about $25,000 in unreimbursed expenses from my old company that was bought over by another ... A: Sheela, Those expenses can be deducted as miscellaneous itemized deductions on Schedule A. You can ...
Capital Gains Tax	9/28/2008
Q: I inherited a piece of undeveloped land about 6 years ago. I am selling the land and want to know ... A: Chris, Since he land was inherited, your basis is the fair market value as of date of death. You ...
1099 and W2 forms	9/28/2008
Q: Is it legal to receive W2 and 1099-misc form from the same company? A: Natalia, Thanks for your question. Not usually. If an employer-employee relationships exists you ...
Vehicle Expence Check	9/28/2008
Q: I receive a monthly "vehicle expense" check of $500. I have always received this check at the end of ... A: Rick, You did not state a question, but I assume you are wanting to know if what the company is ...
Use of Company car	9/27/2008
Q: I use a company car during work hours, I am not granted to use it to personal matters, but I drive ... A: Antonio, Thanks for your question. You should report to your employer the amount commuting ...
Temporary living expenses	9/27/2008
Q: I work as an independent contractor for a roofing company in the Dallas/Fort Worth area, but will ... A: Jeff, Thanks for your question. Deduct the portion of the cost of the travel trailer that is ...
Repayment of loan using personal property	9/26/2008
Q: During 2007 and 2008 my in-laws contributed to the cost of a piece of property that we put a modular ... A: Jennifer, Thanks for your question. First, a quit-claim deed is probably not the safest way to go. ...
Home Based Travel business	9/26/2008
Q: I own a home based travel agency and have been told that my personal vacations with kids are ... A: Lauren, Thanks for your question. You can't. You can deduct the portion of the travel expense for ...
contract workers - taxes	9/26/2008
Q: I work for a neighbor in a contract capacity. I am provided with a 1099 at the end of the year. I ... A: Karen, Thanks for your question. If you will owe more than $1,000 at the end of the year, or if ...
Church accounting software	9/26/2008
Q: Good morning John, I new to accounting and was in the need of purchasing an accounting software for ... A: There are several reference guides for using quickbooks. I would just look at the user ratings on a ...
Church accounting software	9/26/2008
Q: Good morning John, I new to accounting and was in the need of purchasing an accounting software for ... A: If you already have a version of QB, I would not purchase something else unless there was a ...
Church accounting software	9/26/2008
Q: Good morning John, I new to accounting and was in the need of purchasing an accounting software for ... A: Michael, Thanks for your question. There are advantages to both. As you may or may not know, QB ...
deliquent taxes and remarriage	9/25/2008
Q: I lost my wife last year after years of MS and cancer. For about the last 5 years, I was working ... A: I apologize. I failed to make clear a point that is critical. In order to file as injured spouse, ...
deliquent taxes and remarriage	9/25/2008
Q: I lost my wife last year after years of MS and cancer. For about the last 5 years, I was working ... A: David, Thanks for your question. Getting married is not really a relevant factor. How you file ...
Transfer property to child	9/25/2008
Q: My mom owns two houses and would like to give my sister one of them. What are her tax consequences ... A: Leslie, Thanks for your question. You mom would have to file a gift tax return. However, since ...
deductibles working out of state	9/25/2008
Q: my wife started to work for a new company in SC in Sept. 08 while I continue to work and live (we ... A: Ben, Thanks for your question. I presume that the job is SC is a permanent situation not a ...
Corporate Tax	9/25/2008
Q: I recently started my own P.C. My questions pertains to the corporate tax laws. My P.C. will make ... A: Darren, Thanks for your question. The after-tax profit can remain with the corporation. However, ...
Freelance Payment to employee	9/24/2008
Q: I have two related small businesses. One of my employees who is paid from my business A on payroll ... A: Marshall, Thanks for your question. Since it is two separate businesses, I see no problem if he is ...
IRS Tax Audit	9/24/2008
Q: I received a letter from the IRS saying that I owed over $8,000 in taxes for my 2006 tax return. ... A: Renee, Thanks for your question. I see no reason to pay an accountant or lawyer since you are not ...
Rent from a property	9/24/2008
Q: I recently bought a home out of state and went in 1/2 with my fiance.We have a real estate agent in ... A: Steven, Thanks for your question. Each of you must report your half of the income and expenses on ...
Who gets to claim me	9/24/2008
Q: First off I would like to explain my situation. I am an 18 year old female, and I lived with my ... A: Kinda, Thanks for your question. At an income level of $5,000 you will get anything you paid in ...
Form 1041 Estate Tax Return Deductions	9/24/2008
Q: Is it true that you can deduct expenses to administer the estate that were in excess of the estate ... A: You select the fiscal year on the return. It must be no later than 12 months after the death of ...
Tax on 401K as divorce settlement	9/24/2008
Q: I have recently been approved for social security disability. My husband is taking early retirement ... A: Evelyn, Thanks for your question. You will be subject to tax on the 401(k) but not an early ...
Form 1041 Estate Tax Return Deductions	9/24/2008
Q: Is it true that you can deduct expenses to administer the estate that were in excess of the estate ... A: David, Thanks for your question. Your attorney should stick to legal matters. The attorney fee ...
Gift Tax	9/23/2008
Q: Stancil, my name is David, I am currently 20 years old, living in Florida and unemployed. Soon a ... A: David, Thanks for your question. Gifts are not taxable income, so you have no tax obligation. ...
Do I pay state taxes in the state I work in or the state I live in?	9/23/2008
Q: I am planning to telecommute and since I can live anywhere I thought I might live in a state without ... A: Kevin, Thanks for your question. If you do not work at all in the state where the company is ...
partnership investment	9/23/2008
Q: I took money out of my IRA to invest in a restaurant. We (One partner and me)formed an LLC to buy ... A: Carolina, Thanks for your question. Unless you sold your ownership to him and agreed that the ...
Capital Gain Reporting	9/23/2008
Q: My wife and I have been considering selling our shares in life insurance stocks. They have been held ... A: Craig, Thanks for your question. The $65,100 represent your taxable income including the capital ...
Student Loan Payoff - Income or Gift ??	9/23/2008
Q: Mary pays off Bob's (her nephew who is more than 37.5 years younger) student loans of $90,000. Mary ... A: I did not state that very clearly, I apologize. You stated Bob is Mary's nephew. That is not a ...
Student Loan Payoff - Income or Gift ??	9/23/2008
Q: Mary pays off Bob's (her nephew who is more than 37.5 years younger) student loans of $90,000. Mary ... A: Larry, Thanks for your question. There are no income tax consequences here. This is simply a gift ...
Mileage reimbursement	9/23/2008
Q: I am a full time employee living in Georgia with a home office and a corporate office in Louisiana. ... A: Lisa, Thanks for your question. You need to distinguish between company policy and IRS rules. ...
child living in 2nd home	9/23/2008
Q: Our 19 year old daughter is a full time student attending a local college. Since she wanted the ... A: Gary, Thanks for your question. First, you cannot treat the unit as a rental and get the tax ...
Smokers' Class Action Lawsuit -Florida	9/22/2008
Q: I'm part of the class-action lawsuit called the Engle Trust Fund out of Florida. It's paying out ... A: Ten, Thanks for your question. I would have to study the settlement in detail to be certain, but ...
Property Tax	9/22/2008
Q: Sir/Ma'am - I'm trying to help answer a question for my mom and brother. My brother's wife recently ... A: Michael, Thanks for your question. Your brother's wife's mother will pay tax on the gain from the ...
Employer Tuition Payment	9/22/2008
Q: I am expecting an increase in my salary. The employer is also giving me an option of giving tuition ... A: Norman, Thanks for your question. You can get a partial deduction depending on your level of ...
Long-term disability income	9/22/2008
Q: I received long-term disability payments this year ('08) for 6 months and have since returned to ... A: Yes, you can play catch up through your withholding, but that is the not the best of the ...
Long-term disability income	9/22/2008
Q: I received long-term disability payments this year ('08) for 6 months and have since returned to ... A: Edward, Thanks for your question. First, there are three safe harbors that can help you avoid a ...
Dependent with Social Security Number	9/22/2008
Q: My daughter was born at home and we never got a her Social Security Number. We've been trying to ... A: Jeric, Absolutely not. The IRS will not allow a dependency exemption without a valid SS number. ...
2 incomes, file sep or joint	9/22/2008
Q: My spouse and I earn just enough income to disqualify us for all the higher education deductions. I ... A: PJ, Thanks for your question. Most likely your tax liability would be less if you file jointly. ...
selling a rental house	9/22/2008
Q: My wife and I own a home in California. It was our primary residence from 1996 until 2000. From June ... A: Vance, Thanks for your question. You will owe tax on the gain. Your gain is determined by ...
Residency questions	9/21/2008
Q: Here's the possible scenario: My wife and I are married. She owns a house in her state and I own a ... A: Charlie, Thanks for your question. Your state taxation depends on where you earn your income and ...
Student Loan Payment/Sign-on Bonus for New Job	9/21/2008
Q: John, I wanted to know whether or not I needed to put money back for taxes on a "scholarship" my ... A: Walt, Thanks for your question. Unless you are covered by an exception for certain professions, ...
Alabama State Income tax	9/21/2008
Q: My wife and I live in Japan for the last five years. I work for DODDS on a military base. I also ... A: Stan, Thanks for your question. If you were a resident of Alabama immediately prior to going to ...
Selling Co-Owned Property	9/20/2008
Q: My sister and I inherited two properties (with houses) in Louisiana back in 2005. My wife and I ... A: Rick, Thanks for your question. You will owe tax, at capital gain rates on the profit from the ...
Form 982 - Cancellation of automobile debt for loan secured for family member	9/20/2008
Q: I guaranteed an auto loan for my brother, he could not make the payments, and the car was ... A: Jillian, Insolvency is more than just your house. To determine insolvency, you should total up the ...
filing tax exempt	9/19/2008
Q: I would like to know if it will hurt to file tax exempt for these last three months of the year and ... A: Lavonne, Thanks for your question. You can change the number of withholding allowances at any ...
taxable monetary gifts	9/19/2008
Q: I saw this answer from you online, and just had to double-check -- "Gifts are not considered ... A: Jim, There is no federal income tax on gifts. I am unaware of any state that taxes gifts. I do ...
Mileage deduction	9/19/2008
Q: My mother is been in the hospital 5 times in the last 2 months. Is any of the mileage deductible ... A: Jeffrey, Thanks for your question. A trip to the hospital and a trip to bring her from the ...
tail insurance	9/18/2008
Q: if someone had a claims based malpractice insurance policy and terminated it in 2008 due to ... A: Jeffrey, Thanks for your question. Since it has a benefit for a period in excess of one year, the ...
Ministrial taxes	9/17/2008
Q: I am a Minister, my wife and I have come from Washington State to Dayton Ohio to help in the church ... A: Since you do not get paid, the move cannot be considered a job-related move and moving expenses ...
Ministrial taxes	9/17/2008
Q: I am a Minister, my wife and I have come from Washington State to Dayton Ohio to help in the church ... A: McDaniel, Thanks for your question. You can take a deduction for moving expenses. This would ...
Social Security or TIN	9/17/2008
Q: I am a babysitter both in and out of my home. For tax purposes do I need to give the parents' my ... A: Lisa, Thanks for your question. A TIN is normally issued for a business or other entity such as a ...
Deed in Lieu & 1099's	9/16/2008
Q: We have been approved for a Deed in Lieu; the lender had the house appraised, and the value exceeds ... A: Dawn, If you have owned the house for 24 of the past 60 months, lived in the house for 24 of the ...
Transfer from Bank Retirement account	9/16/2008
Q: I was told that FDIC insures retirement accounts up to 250k. I have aprox 350k which means that ... A: Manuel, Thanks for your question. That is correct, IRA's are insured for up to $250,000 through ...
Depreciation Confusion	9/16/2008
Q: My Question is: The person who processed my taxes for 2004 depreciated my car because I used it all ... A: You need to report the 1099 for the year in which it is dated. Otherwise the IRS computers will ...
stimulus check	9/16/2008
Q: John, the irs told us today they will not send our stimulus check. The problem stems from an error ... A: Sam, Thanks for your question. Most likely not. I have not found the IRS easy to deal with on ...
Artists, Taxes and Audits!	9/16/2008
Q: I am a working artist who like most creative folks, has a full time day job as well to make ends ... A: If you are not a corporation you will most likely be a Schedule C business. If your preparer is not ...
Artists, Taxes and Audits!	9/15/2008
Q: I am a working artist who like most creative folks, has a full time day job as well to make ends ... A: Blanchjoe, Thanks for your question. You don't say for sure but I assume you are a Schedule C ...
"Deemed Gift" Taxes	9/15/2008
Q: I want to increase FDIC limit of protection on my bank accounts (savings and CDs) by putting my two ... A: Richard, Thanks for your question. No gift occurs until a son withdraws more than he puts into the ...
Depreciation Confusion	9/15/2008
Q: My Question is: The person who processed my taxes for 2004 depreciated my car because I used it all ... A: Dale, Thanks for your question. Once you have taken depreciation by any method other than ...
Loan repayment and Taxes	9/15/2008
Q: Stancil, When I repay a loan to my son, will my son be required to pay state or federal taxes on the ... A: Ivan, Thanks for your question. The repayment of principal is not taxable, but he will owe tax on ...
house as a gift	9/15/2008
Q: my mother-in-law wants to sign her house over to my husband so he can live in the family home once ... A: Kay, Thanks for your question. She would have to file a gift tax return. There is a $12,000 ...
Taxes	9/15/2008
Q: My mother moved in with my boyfriend and myself to help care for our daughter while we work. So far ... A: Juanita, Thanks for your question. She must report the income on Schedule C. You can take a child ...
inherited home	9/14/2008
Q: Good afternoon john, I inherited my father's home when he passed away last year. It has not been ... A: Diane, Thanks for your question. Most, if not all, of the costs you mention are capital costs and ...
payroll tax fraud question	9/13/2008
Q: We were using an out of town payroll company in 2006 that went out of business in april 2006 and ... A: Anil, This is basically a legal issue, and as a CPA I am prohibited by law from dealing with ...
1099A	9/13/2008
Q: I got (1) 1099a with Principal balance 668th and Market Value 630th...and another 1099a with ... A: Flor, Thanks for your question. Yes, you must report both. If you were insolvent you can complete ...
1099	9/12/2008
Q: we are on short sale of our second house with our lenders approval for full settlement of the loan. ... A: Irene, Thanks for your question. Unfortunately, you will get a 1099 for the difference in the ...
schedule d and short sell (not covered yet)	9/12/2008
Q: How am I suppose to show short sells of stocks which are not closed by the end of fiscal year ... A: Bruce, One approach is to complete the Schedule D as follows: Description Date acquired Date Sold ...
Taxable income - Home Office & Parking	9/12/2008
Q: I am an employer. We give an employee $250 a month towards their home office expenses. (We do not ... A: Denise, Thanks for your question. The $250 must be included in their W-2 wages as this is a ...
Associate Pastor moving into our parsonage	9/12/2008
Q: We have a Ass. Pastor Moving into the Parsonage, are we suppose to charge him rent? and if so, with ... A: Bonnie, Thanks for your question. You could do it that way, but the simplest thing is to let the ...
Giving	9/12/2008
Q: What is the maximum amount you can give away in a lifetime per individual? A: Kurtis, Thanks for your question. The law does not limit the amount of gifts you may make. ...
"Benefit" Car Show	9/12/2008
Q: I have a friend that had an accident almost a year ago and is now a quadraplegic. He was the sole ... A: Brian, You have good intentions, but the profits would be taxable to you and you could not get a ...
Debt Forgivenss Taxed as income	9/12/2008
Q: I just received a letter from the IRS stating that I owe taxes on a debt that was forgiven in 2006. ... A: John, Thanks for your question. Simply prepare a listing of any assets you did have - clothing, ...
child claiming	9/12/2008
Q: my ex has not worked all year but chooses to live off my child support and her parents.if my child ... A: Darrin, Thanks for your question. That depends. If the divorce decree or other document specifies ...
1099-R: 7 Distribution Code = Q	9/11/2008
Q: IRS complained, complained, and asked for backup withholding for 85 yr old mother's 2006 return ... A: Laron, Thanks for your question. As you have determined Code Q is a non-taxable Roth IRA ...
exemptions	9/11/2008
Q: On my W4, I claim single with 2 exemptions. I'm head of household, with one dependent. We have a ... A: You can determine the amount of withholding allowances you are entitled to by completing the ...
housing tax credit & owning home abroad	9/10/2008
Q: My husband and I just bought a house in Louisville, KY (I noticed you also take KY tax questions so ... A: Bridget, Thanks for your question. Used to live in Kentucky, but moved away about 10 years ago to ...
tax exemptions for live away full time student	9/10/2008
Q: In my divorce, I was given primary custody of both children and the tax exemptions for both ... A: Since you do not meet all the criteria, and he does not meet all the criteria, the two of you would ...
tax exemptions for live away full time student	9/10/2008
Q: In my divorce, I was given primary custody of both children and the tax exemptions for both ... A: Shelley, Thanks for your question. Since you are the custodial parent, her time away at school ...
exemptions	9/10/2008
Q: On my W4, I claim single with 2 exemptions. I'm head of household, with one dependent. We have a ... A: Cindy, Thanks for your question. It is illegal to claim more withholding allowances than you are ...
Tax Code View Of Investment & Trades	9/10/2008
Q: I believe this question falls mostly into the tax definition category. Although I'm on Social ... A: JR, That is not a well-defined line. The IRS looks more at consistency rather than number of ...
LLC estimated tax	9/9/2008
Q: Married file jointly. My spouse is employed and has withholding taxes. I am part of a two member ... A: Jeff, Thanks for your question. As an owner of an LLC, you owe taxes on your share of the profits. ...
Tax liability for contracting work	9/9/2008
Q: I have recently taken on some 'side' work for a company needing a few hours a week IT stuff done. I ... A: Tina, Thanks for your question. An LLC will not have any effect on your taxes, it is purely for ...
foreign gift under $100000	9/9/2008
Q: I will be receiving a gift from a friend in Europe, it's $60000. I was only able to find form 3520 ... A: Joanna, Thanks for your question. Gifts of real or tangible property located in the United States ...
Inheritance tax question	9/9/2008
Q: I understand that NY State does not have "inheritance tax" that it falls to the federal government. ... A: Kallyann, Thanks for your question. You seem to be confusing estate taxes and inheritance taxes - ...