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| Subject | Date Asked |
| Form 8332 | 2/10/2012 |
| 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 Losses | 2/10/2012 |
| 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 709 | 2/10/2012 |
| 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 C | 2/10/2012 |
| 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 debt | 2/9/2012 |
| 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 Taxes | 2/9/2012 |
| 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 Diem | 2/8/2012 |
| 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 1099 | 2/8/2012 |
| 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 Settlement | 2/8/2012 |
| 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 709 | 2/8/2012 |
| 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 fact | 2/8/2012 |
| 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 fact | 2/7/2012 |
| 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 ... | |
| Dependent | 2/7/2012 |
| 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 Question | 2/7/2012 |
| 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 Questions | 2/7/2012 |
| 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 treatment | 2/7/2012 |
| 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 treatment | 2/7/2012 |
| 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 Household | 2/6/2012 |
| 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 old | 2/6/2012 |
| 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 Income | 2/6/2012 |
| 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 compensation | 2/6/2012 |
| 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 ... | |
| IRA | 2/6/2012 |
| 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 Household | 2/5/2012 |
| 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 ... | |
| alimony | 2/5/2012 |
| 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 Partnership | 2/5/2012 |
| 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 status | 2/3/2012 |
| 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 taxes | 2/3/2012 |
| 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 else | 2/2/2012 |
| 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 Offering | 2/2/2012 |
| 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 Deduction | 2/2/2012 |
| 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 Offering | 2/2/2012 |
| 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 Household | 2/2/2012 |
| 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 company | 2/2/2012 |
| 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 settlement | 2/2/2012 |
| 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 question | 2/1/2012 |
| 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 Gains | 2/1/2012 |
| 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 Withdrawals | 2/1/2012 |
| 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 Taxes | 2/1/2012 |
| 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 income | 1/31/2012 |
| 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 tickets | 1/30/2012 |
| 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 distribution | 1/30/2012 |
| 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 exception | 1/29/2012 |
| 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 ... | |
| addendum | 1/29/2012 |
| 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 loan | 1/29/2012 |
| 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 fundraiser | 1/29/2012 |
| 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 gift | 1/28/2012 |
| 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 routing | 1/28/2012 |
| 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, ... | |
| Adoption | 1/26/2012 |
| 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 dependent | 1/26/2012 |
| 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 tax | 1/26/2012 |
| 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 employed | 1/25/2012 |
| 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 donations | 1/25/2012 |
| 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 Pastor | 1/25/2012 |
| 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 litigation | 1/25/2012 |
| 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 Jointly | 1/25/2012 |
| 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 son | 1/24/2012 |
| 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 income | 1/24/2012 |
| 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 LOSS | 1/23/2012 |
| 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 Withholding | 1/23/2012 |
| 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 dates | 1/23/2012 |
| 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 income | 1/22/2012 |
| 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 taxes | 1/21/2012 |
| 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 pay | 1/21/2012 |
| 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 sale | 1/21/2012 |
| 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 Transfer | 1/21/2012 |
| 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 Parents | 1/20/2012 |
| 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 ira | 1/20/2012 |
| 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 ira | 1/20/2012 |
| 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 Transfer | 1/20/2012 |
| 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 death | 1/19/2012 |
| 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 builder | 1/19/2012 |
| 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 income | 1/19/2012 |
| 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 employer | 1/18/2012 |
| 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 Allowance | 1/18/2012 |
| 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 builder | 1/18/2012 |
| 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 reporting | 1/17/2012 |
| 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 tax | 1/16/2012 |
| 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 lease | 1/15/2012 |
| 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 death | 1/13/2012 |
| 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 Reimbursements | 1/13/2012 |
| 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 Reimbursements | 1/13/2012 |
| 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 Status | 1/13/2012 |
| 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 SSI | 1/13/2012 |
| 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 tickets | 1/13/2012 |
| 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 family | 1/12/2012 |
| 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 Car | 1/12/2012 |
| 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-H | 1/12/2012 |
| 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 Taxes | 1/12/2012 |
| 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 misc | 1/12/2012 |
| 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 problem | 1/11/2012 |
| 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 pension | 1/11/2012 |
| 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 expenses | 1/11/2012 |
| 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 purposes | 1/11/2012 |
| 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 tickets | 1/10/2012 |
| 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 deductions | 1/10/2012 |
| 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 offs | 1/10/2012 |
| 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 deduction | 1/10/2012 |
| 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 settlement | 1/10/2012 |
| 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 13 | 1/10/2012 |
| 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 purposes | 1/9/2012 |
| 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 Internship | 1/9/2012 |
| 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 ... | |
| dependents | 1/8/2012 |
| 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 FAMILIES | 1/8/2012 |
| 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 Funds | 1/7/2012 |
| 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 Bonds | 1/6/2012 |
| 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 ira | 1/6/2012 |
| 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 jointly | 1/5/2012 |
| 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 Year | 1/3/2012 |
| 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 lease | 1/3/2012 |
| 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 Reimbursement | 1/2/2012 |
| 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 option | 12/29/2011 |
| 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 tax | 12/28/2011 |
| 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 Taxes | 12/26/2011 |
| 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 Cars | 12/24/2011 |
| 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 status | 12/20/2011 |
| 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 question | 12/19/2011 |
| 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 annunity | 12/17/2011 |
| 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 Inheritance | 12/17/2011 |
| 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 gift | 12/15/2011 |
| 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 corp | 12/15/2011 |
| 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 Returns | 12/15/2011 |
| 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 Returns | 12/14/2011 |
| 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 partnership | 12/14/2011 |
| 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 church | 12/14/2011 |
| 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 away | 12/13/2011 |
| 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 PREACHERS | 12/12/2011 |
| 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 refund | 12/12/2011 |
| 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 Issue | 12/11/2011 |
| 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 jobs | 12/10/2011 |
| 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 Property | 12/9/2011 |
| 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 Trading | 12/9/2011 |
| 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. PAY | 12/9/2011 |
| 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 states | 12/8/2011 |
| 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 taxes | 12/7/2011 |
| 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 Question | 12/7/2011 |
| 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 support | 12/7/2011 |
| 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 home | 12/6/2011 |
| 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 RESTAURANTS | 12/3/2011 |
| 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 ... | |
| Loan | 12/2/2011 |
| 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 ... | |
| Loan | 12/2/2011 |
| 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," ... | |
| Llc | 12/2/2011 |
| 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 ... | |
| Llc | 12/2/2011 |
| 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 Diem | 12/1/2011 |
| 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 miles | 11/30/2011 |
| 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 miles | 11/30/2011 |
| 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 1120 | 11/28/2011 |
| 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 expenses | 11/26/2011 |
| 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 debts | 11/22/2011 |
| 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 estate | 11/22/2011 |
| 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 shares | 11/21/2011 |
| 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 forms | 11/21/2011 |
| 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 ira | 11/21/2011 |
| 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 SMLLC | 11/20/2011 |
| 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 donation | 11/18/2011 |
| 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 expenses | 11/18/2011 |
| 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 ... | |
| Taxes | 11/17/2011 |
| 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 diem | 11/16/2011 |
| 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 transfer | 11/15/2011 |
| 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 SMLLC | 11/15/2011 |
| 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 ... | |
| adoption | 11/12/2011 |
| 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 C | 11/12/2011 |
| 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 Another | 11/11/2011 |
| 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 January | 11/11/2011 |
| 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 Fee | 11/8/2011 |
| 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 taxes | 11/8/2011 |
| 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 Reversal | 11/7/2011 |
| 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 Income | 11/7/2011 |
| 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 1099M | 11/7/2011 |
| 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 Income | 11/7/2011 |
| 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 2000 | 11/6/2011 |
| 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 VA | 11/6/2011 |
| 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 Taxes | 11/6/2011 |
| 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 ... | |
| 1099 | 11/3/2011 |
| 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 1099M | 11/3/2011 |
| 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 Retirement | 11/3/2011 |
| 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 moving | 11/2/2011 |
| 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 event | 10/28/2011 |
| 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 withdrawals | 10/26/2011 |
| 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 credit | 10/25/2011 |
| 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 allowance | 10/25/2011 |
| 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 Credit | 10/24/2011 |
| 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 withdrawals | 10/23/2011 |
| 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 Carryover | 10/21/2011 |
| 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 house | 10/20/2011 |
| 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 C | 10/18/2011 |
| 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 ... | |
| Taxes | 10/18/2011 |
| 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 ... | |
| Taxes | 10/17/2011 |
| 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 Losses | 10/17/2011 |
| 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 income | 10/16/2011 |
| 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 income | 10/16/2011 |
| 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 Filing | 10/15/2011 |
| 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 1099 | 10/15/2011 |
| 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 ineritance | 10/14/2011 |
| 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 Amendment | 10/12/2011 |
| 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 Transfer | 10/12/2011 |
| 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 gifts | 10/12/2011 |
| 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-r | 10/8/2011 |
| 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 disabilty | 10/8/2011 |
| 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 rooms | 10/4/2011 |
| 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. citizen | 10/4/2011 |
| 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. PAY | 10/4/2011 |
| 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 Loss | 10/3/2011 |
| 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 exemption | 10/2/2011 |
| 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 tax | 10/2/2011 |
| 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 disability | 9/30/2011 |
| 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 taxes | 9/30/2011 |
| 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 tax | 9/30/2011 |
| 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 IRA | 9/29/2011 |
| 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 Residency | 9/29/2011 |
| 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 Proceeding | 9/29/2011 |
| 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 Proceeding | 9/28/2011 |
| 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 tax | 9/28/2011 |
| 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 Agreements | 9/26/2011 |
| 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 donations | 9/26/2011 |
| 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 gift | 9/25/2011 |
| 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 Tax | 9/24/2011 |
| 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 donations | 9/22/2011 |
| 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 LLC | 9/21/2011 |
| 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) organization | 9/21/2011 |
| 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 Expenses | 9/21/2011 |
| 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 Question | 9/20/2011 |
| 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 employment | 9/20/2011 |
| 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 Medical | 9/20/2011 |
| 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 Planning | 9/17/2011 |
| 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 missionaries | 9/16/2011 |
| 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 event | 9/15/2011 |
| 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-corp | 9/15/2011 |
| 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 8606 | 9/13/2011 |
| 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 death | 9/13/2011 |
| 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 Medical | 9/9/2011 |
| 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 ... | |
| tax | 9/8/2011 |
| 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-Employment | 9/6/2011 |
| 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 gift | 9/2/2011 |
| 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 sale | 8/31/2011 |
| 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 ... | |
| Electronics | 8/31/2011 |
| 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 Expenses | 8/29/2011 |
| 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 Driver | 8/28/2011 |
| 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 question | 8/27/2011 |
| 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 Tax | 8/27/2011 |
| 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 Taxes | 8/26/2011 |
| 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 Taxes | 8/26/2011 |
| 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 sum | 8/25/2011 |
| 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 Pastor | 8/25/2011 |
| 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 Clarification | 8/24/2011 |
| 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 DISTRIBUTIONS | 8/22/2011 |
| 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 DISTRIBUTIONS | 8/22/2011 |
| 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 ... | |
| ira | 8/21/2011 |
| 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 Scholarship | 8/20/2011 |
| 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 allowance | 8/19/2011 |
| 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 descrepancy | 8/19/2011 |
| 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 tax | 8/17/2011 |
| 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 tax | 8/16/2011 |
| 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 person | 8/12/2011 |
| 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 taxes | 8/11/2011 |
| 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 Shares | 8/10/2011 |
| 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-Repay | 8/9/2011 |
| 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/taxes | 8/8/2011 |
| 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 & taxes | 8/7/2011 |
| 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 Church | 8/4/2011 |
| 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 inheretance | 8/3/2011 |
| 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/missionaries | 8/3/2011 |
| 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 FSA | 8/3/2011 |
| 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 inheretance | 8/3/2011 |
| 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/missionaries | 8/3/2011 |
| 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 ira | 8/1/2011 |
| 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 rented | 8/1/2011 |
| 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 taxes | 7/31/2011 |
| 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 implications | 7/31/2011 |
| 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 Deduction | 7/31/2011 |
| 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 school | 7/30/2011 |
| 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 LLC | 7/27/2011 |
| 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 tax | 7/27/2011 |
| 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 ... | |
| NOL | 7/26/2011 |
| 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 ... | |
| NOL | 7/26/2011 |
| 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 Stock | 7/26/2011 |
| 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 stipend | 7/25/2011 |
| 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 taxes | 7/25/2011 |
| 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 Tax | 7/24/2011 |
| 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 loans | 7/23/2011 |
| 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 DISTIBUTIONS | 7/22/2011 |
| 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 benefits | 7/21/2011 |
| 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 basis | 7/21/2011 |
| 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 basis | 7/21/2011 |
| 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 basis | 7/21/2011 |
| 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 LOANS | 7/20/2011 |
| 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 Payments | 7/19/2011 |
| 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 filing | 7/18/2011 |
| 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 contractor | 7/18/2011 |
| 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 ... | |
| property | 7/18/2011 |
| 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 ... | |
| property | 7/18/2011 |
| 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/gift | 7/18/2011 |
| 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 assets | 7/17/2011 |
| 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 assets | 7/17/2011 |
| 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 assets | 7/17/2011 |
| 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 loss | 7/17/2011 |
| 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 ... | |
| ira | 7/16/2011 |
| 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 ... | |
| Commisions | 7/15/2011 |
| 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 deduction | 7/10/2011 |
| 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 Payments | 7/7/2011 |
| 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 Payments | 7/7/2011 |
| 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 Company | 7/4/2011 |
| 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 Honorarium | 7/4/2011 |
| 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 ROI | 7/1/2011 |
| 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 Tax | 6/29/2011 |
| 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 / Bankruptcy | 6/29/2011 |
| 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 stock | 6/29/2011 |
| 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 stock | 6/29/2011 |
| 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 residence | 6/28/2011 |
| 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 ... | |
| dependent | 6/27/2011 |
| 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 Expense | 6/7/2011 |
| 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 deduction | 6/6/2011 |
| 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 divorce | 6/5/2011 |
| 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 trust | 6/3/2011 |
| 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 exempt | 6/2/2011 |
| 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 taxability | 5/31/2011 |
| 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 Costs | 5/31/2011 |
| 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 help | 5/31/2011 |
| 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 money | 5/30/2011 |
| 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 Taxes | 5/30/2011 |
| 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 ... | |
| taxes | 5/28/2011 |
| 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 401K | 5/28/2011 |
| 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 brother | 5/28/2011 |
| 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 brother | 5/27/2011 |
| 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 MA | 5/26/2011 |
| 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 use | 5/25/2011 |
| 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 use | 5/25/2011 |
| 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 securities | 4/29/2011 |
| 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 securities | 4/29/2011 |
| 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 dependent | 4/29/2011 |
| 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 IRA | 4/28/2011 |
| 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 deduction | 4/28/2011 |
| 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 990 | 4/28/2011 |
| 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 taxes | 4/26/2011 |
| 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 tax | 4/26/2011 |
| 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 1065 | 4/26/2011 |
| 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 Homework | 4/24/2011 |
| 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 Death | 4/23/2011 |
| 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 obligations | 4/22/2011 |
| 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 941 | 4/22/2011 |
| 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 forms | 4/22/2011 |
| 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 - Expatriate | 4/20/2011 |
| 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 Property | 4/20/2011 |
| 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/8332 | 4/19/2011 |
| 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 Revenue | 4/19/2011 |
| 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 ... | |
| Rollovers | 4/19/2011 |
| 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/8332 | 4/19/2011 |
| 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 Mother | 4/19/2011 |
| 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 Sale | 4/19/2011 |
| 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 IRS | 4/18/2011 |
| 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 1098 | 4/18/2011 |
| 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 income | 4/18/2011 |
| 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 ... | |
| Taxes | 4/18/2011 |
| 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 stock | 4/18/2011 |
| 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 Return | 4/18/2011 |
| 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 Plan | 4/17/2011 |
| 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 Return | 4/17/2011 |
| 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 refund | 4/17/2011 |
| 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 SSN | 4/17/2011 |
| 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 1040 | 4/17/2011 |
| 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 question | 4/17/2011 |
| 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 taxpayer | 4/16/2011 |
| 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 expenses | 4/16/2011 |
| 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 Fundraising | 4/16/2011 |
| 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 Question | 4/16/2011 |
| 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 debt | 4/16/2011 |
| 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 gains | 4/16/2011 |
| 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 C | 4/15/2011 |
| 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 employment | 4/15/2011 |
| 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 basis | 4/15/2011 |
| 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-employed | 4/15/2011 |
| 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 Revenue | 4/15/2011 |
| 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 C | 4/14/2011 |
| 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 laws | 4/14/2011 |
| 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-1 | 4/13/2011 |
| 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 building | 4/13/2011 |
| 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 Expense | 4/13/2011 |
| 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-1 | 4/13/2011 |
| 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 ... | |
| tax | 4/13/2011 |
| 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 ... | |
| IRA | 4/13/2011 |
| 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 home | 4/12/2011 |
| 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 employment | 4/12/2011 |
| 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 rules | 4/12/2011 |
| 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 name | 4/12/2011 |
| 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 ... | |
| Distributions | 4/12/2011 |
| 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 treatment | 4/12/2011 |
| 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 employment | 4/11/2011 |
| 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 raising | 4/11/2011 |
| 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 eligibility | 4/11/2011 |
| 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 tax | 4/11/2011 |
| 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 tax | 4/11/2011 |
| 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 income | 4/10/2011 |
| 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 transacted | 4/10/2011 |
| 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 - parents | 4/10/2011 |
| 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 divorce | 4/10/2011 |
| 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 income | 4/10/2011 |
| 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 Road | 4/10/2011 |
| 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 Tax | 4/10/2011 |
| 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 ... | |
| Deductibles | 4/10/2011 |
| 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 house | 4/9/2011 |
| 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 Condominium | 4/9/2011 |
| 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 Fundraising | 4/9/2011 |
| 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 C | 4/9/2011 |
| 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 insolvency | 4/9/2011 |
| 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 owner | 4/9/2011 |
| 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 insolvency | 4/9/2011 |
| 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 House | 4/9/2011 |
| 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 Fundraising | 4/9/2011 |
| 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 tax | 4/9/2011 |
| 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 filling | 4/8/2011 |
| 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 & tax | 4/8/2011 |
| 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 Lease | 4/8/2011 |
| 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-A | 4/8/2011 |
| 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 deduction | 4/7/2011 |
| 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 me | 4/7/2011 |
| 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 business | 4/7/2011 |
| 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 Distribution | 4/7/2011 |
| 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 question | 4/6/2011 |
| 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 Income | 4/6/2011 |
| 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 tax | 4/5/2011 |
| 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 deduction | 4/5/2011 |
| 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 question | 4/5/2011 |
| 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 Dipping | 4/5/2011 |
| 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 mexico | 4/4/2011 |
| 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 property | 4/4/2011 |
| 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 patient | 4/4/2011 |
| 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 condo | 4/4/2011 |
| 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 condo | 4/4/2011 |
| 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 Presence | 4/4/2011 |
| 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 Deduction | 4/4/2011 |
| 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 ... | |
| Deductions | 4/3/2011 |
| 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 purchase | 4/3/2011 |
| 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 Mileage | 4/3/2011 |
| 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 deduction | 4/2/2011 |
| 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 expenses | 4/2/2011 |
| 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 DRS | 4/2/2011 |
| 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 DRS | 4/2/2011 |
| 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 Allowance | 4/2/2011 |
| 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 A | 4/2/2011 |
| 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 deduction | 4/2/2011 |
| 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 Evangelist | 4/2/2011 |
| 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 Estate | 4/2/2011 |
| 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 Evangelist | 4/2/2011 |
| 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 Exemption | 4/1/2011 |
| 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 worker | 4/1/2011 |
| 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 Income | 4/1/2011 |
| 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 Credits | 4/1/2011 |
| 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 home | 4/1/2011 |
| 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 401k | 3/31/2011 |
| 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 estate | 3/31/2011 |
| 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 diem | 3/30/2011 |
| 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 Pastor | 3/30/2011 |
| 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 question | 3/29/2011 |
| 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 system | 3/29/2011 |
| 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 home | 3/29/2011 |
| 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 Closing | 3/29/2011 |
| 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 Issues | 3/29/2011 |
| 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 - investment | 3/29/2011 |
| 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 guardianship | 3/29/2011 |
| 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 Dependents | 3/29/2011 |
| 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 tax | 3/28/2011 |
| 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. Commuting | 3/28/2011 |
| 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 preparers | 3/28/2011 |
| 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 tax | 3/28/2011 |
| 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 D | 3/28/2011 |
| 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 D | 3/28/2011 |
| 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 distribution | 3/28/2011 |
| 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 C | 3/28/2011 |
| 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 self | 3/26/2011 |
| 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 Contributions | 3/26/2011 |
| 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 Reimburstment | 3/26/2011 |
| 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 Nonemployee | 3/26/2011 |
| 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 reporting | 3/26/2011 |
| 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 property | 3/25/2011 |
| 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 Household | 3/25/2011 |
| 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 corp | 3/25/2011 |
| 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 form | 3/25/2011 |
| 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/ Inheritance | 3/25/2011 |
| 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 1065 | 3/24/2011 |
| 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 allowance | 3/24/2011 |
| 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 fee | 3/24/2011 |
| 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 Cancellation | 3/24/2011 |
| 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 Of | 3/24/2011 |
| 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 Payment | 3/24/2011 |
| 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 filing | 3/23/2011 |
| 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 income | 3/23/2011 |
| 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 expenses | 3/23/2011 |
| 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 deductions | 3/23/2011 |
| 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 deductions | 3/23/2011 |
| 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 Reimbursement | 3/22/2011 |
| 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 Profit | 3/22/2011 |
| 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 averaging | 3/22/2011 |
| 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 income | 3/22/2011 |
| 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 benefit | 3/22/2011 |
| 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 Split | 3/22/2011 |
| 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 expenses | 3/22/2011 |
| 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 deduction | 3/21/2011 |
| 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 reimbursements | 3/21/2011 |
| 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 question | 3/21/2011 |
| 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 status | 3/21/2011 |
| 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 question | 3/21/2011 |
| 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 CA | 3/20/2011 |
| 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 stocks | 3/20/2011 |
| 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 forms | 3/19/2011 |
| 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 trust | 3/19/2011 |
| 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 parent | 3/19/2011 |
| 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 rentals | 3/19/2011 |
| 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 Rental | 3/18/2011 |
| 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 credit | 3/18/2011 |
| 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 1041 | 3/18/2011 |
| 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 name | 3/18/2011 |
| 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 name | 3/18/2011 |
| 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 ... | |
| dependant | 3/17/2011 |
| 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 & housing | 3/17/2011 |
| 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 sheet | 3/17/2011 |
| 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 Question | 3/17/2011 |
| 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 Filing | 3/17/2011 |
| 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 status | 3/16/2011 |
| 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 Debt | 3/16/2011 |
| 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-Corp | 3/16/2011 |
| 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 owner | 3/16/2011 |
| 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 SE | 3/15/2011 |
| 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 penalty | 3/15/2011 |
| 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 deductions | 3/15/2011 |
| 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 Grant | 3/15/2011 |
| 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 married | 3/14/2011 |
| 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 Repayment | 3/14/2011 |
| 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 ... | |
| 1099b | 3/14/2011 |
| 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 Loan | 3/14/2011 |
| 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 penalty | 3/14/2011 |
| 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 14 | 3/14/2011 |
| 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 property | 3/14/2011 |
| 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 bonds | 3/14/2011 |
| 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 ... | |
| Depreciation | 3/14/2011 |
| 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 Members | 3/13/2011 |
| 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 separate | 3/13/2011 |
| 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 Tax | 3/9/2011 |
| 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 sum | 3/9/2011 |
| 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 Income | 3/9/2011 |
| 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 designations | 3/9/2011 |
| 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 2011 | 3/8/2011 |
| 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-Profit | 3/8/2011 |
| 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 reimbursement | 3/8/2011 |
| 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 ago | 3/8/2011 |
| 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 work | 3/8/2011 |
| 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 1040 | 3/8/2011 |
| 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 Tenants | 3/8/2011 |
| 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-Profit | 3/8/2011 |
| 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 return | 3/8/2011 |
| 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 ... | |
| Question | 3/7/2011 |
| 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 ... | |
| Easements | 3/7/2011 |
| 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 ... | |
| Easements | 3/7/2011 |
| 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 Tenants | 3/7/2011 |
| 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. ... | |
| dependent | 3/7/2011 |
| 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 Distribution | 3/6/2011 |
| 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 children | 3/6/2011 |
| 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 activated | 3/6/2011 |
| 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-deductible | 3/6/2011 |
| 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 description | 3/5/2011 |
| 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 worker | 3/5/2011 |
| 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 Proprietorship | 3/5/2011 |
| 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 worker | 3/5/2011 |
| 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 Taxpayer | 3/5/2011 |
| 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 time | 3/4/2011 |
| 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 residence | 3/4/2011 |
| 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 sale | 3/4/2011 |
| 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 Status | 3/4/2011 |
| 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 counted | 3/4/2011 |
| 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 2106 | 3/4/2011 |
| 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 Estate | 3/3/2011 |
| 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 form | 3/3/2011 |
| 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 401K | 3/3/2011 |
| 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 exemption | 3/3/2011 |
| 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 raising | 3/2/2011 |
| 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 corp | 3/2/2011 |
| 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 Residency | 3/2/2011 |
| 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 REIMBURSMENT | 3/2/2011 |
| 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 corp | 3/2/2011 |
| 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 John | 3/1/2011 |
| 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 status | 3/1/2011 |
| 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 & taxability | 3/1/2011 |
| 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 distributions | 3/1/2011 |
| 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 & theirTaxability | 3/1/2011 |
| 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 account | 2/28/2011 |
| 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/Exemptions | 2/28/2011 |
| 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 test | 2/28/2011 |
| 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 Question | 2/28/2011 |
| 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 US | 2/28/2011 |
| 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 ... | |
| W2 | 2/27/2011 |
| 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 deferrment | 2/27/2011 |
| 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 exclusion | 2/27/2011 |
| 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 country | 2/27/2011 |
| 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 expenses | 2/27/2011 |
| 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 taxation | 2/26/2011 |
| 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 taxes | 2/25/2011 |
| 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 income | 2/25/2011 |
| 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 John | 2/25/2011 |
| 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 John | 2/25/2011 |
| 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. Dependent | 2/24/2011 |
| 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 donations | 2/24/2011 |
| 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 money | 2/24/2011 |
| 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 money | 2/24/2011 |
| 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 cash | 2/24/2011 |
| 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 withdrawal | 2/24/2011 |
| 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 spouse | 2/24/2011 |
| 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 gift | 2/23/2011 |
| 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 Withdrawal | 2/23/2011 |
| 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 expenses | 2/23/2011 |
| 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 stocks | 2/23/2011 |
| 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 S | 2/23/2011 |
| 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 deduction | 2/23/2011 |
| 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 Separately | 2/22/2011 |
| 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 Inheritance | 2/22/2011 |
| 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 Q | 2/22/2011 |
| 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 8825 | 2/22/2011 |
| 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-G | 2/21/2011 |
| 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, ... | |
| EFILING | 2/21/2011 |
| 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 -TAXES | 2/21/2011 |
| 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 disbursement | 2/21/2011 |
| 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 LLC | 2/20/2011 |
| 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 W2 | 2/20/2011 |
| 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 children | 2/20/2011 |
| 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 reporting | 2/20/2011 |
| 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 LLC | 2/20/2011 |
| 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 19 | 2/20/2011 |
| 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 Credit | 2/20/2011 |
| 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 Reimbursements | 2/20/2011 |
| 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 diem | 2/19/2011 |
| 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 compesation | 2/19/2011 |
| 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 Medicaid | 2/19/2011 |
| 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 compesation | 2/19/2011 |
| 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 Investment | 2/19/2011 |
| 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 Estate | 2/19/2011 |
| 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 Credit | 2/19/2011 |
| 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 Tax | 2/19/2011 |
| 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-Mic | 2/19/2011 |
| 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 income | 2/18/2011 |
| 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 C | 2/18/2011 |
| 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 $5,250 | 2/18/2011 |
| 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 ... | |
| Dependents | 2/18/2011 |
| 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 prop | 2/18/2011 |
| 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 questions | 2/18/2011 |
| 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 exemption | 2/18/2011 |
| 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 Form | 2/17/2011 |
| 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 seperately | 2/16/2011 |
| 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 home | 2/16/2011 |
| 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 ... | |
| depreciation | 2/16/2011 |
| 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 1041 | 2/16/2011 |
| 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 home | 2/16/2011 |
| 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 Allowance | 2/16/2011 |
| 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 1041 | 2/16/2011 |
| 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's | 2/16/2011 |
| 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 ... | |
| depreciation | 2/16/2011 |
| 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-A | 2/16/2011 |
| 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 seperately | 2/16/2011 |
| 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 mortgage | 2/16/2011 |
| 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 question | 2/16/2011 |
| 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 income | 2/15/2011 |
| 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 premium | 2/15/2011 |
| 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 ... | |
| forclosure | 2/15/2011 |
| 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 ... | |
| forclosure | 2/15/2011 |
| 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 2008-29 | 2/15/2011 |
| 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 Labor | 2/15/2011 |
| 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 business | 2/15/2011 |
| 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 issue | 2/15/2011 |
| 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 deduction | 2/14/2011 |
| 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 widower | 2/14/2011 |
| 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 break | 2/14/2011 |
| 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 Trust | 2/14/2011 |
| 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 Trust | 2/14/2011 |
| 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 2010 | 2/14/2011 |
| 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 question | 2/13/2011 |
| 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 money | 2/13/2011 |
| 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 child | 2/13/2011 |
| 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 tax | 2/13/2011 |
| 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 property | 2/13/2011 |
| 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 property | 2/12/2011 |
| 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 estate | 2/12/2011 |
| 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 Income | 2/12/2011 |
| 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 tax | 2/12/2011 |
| 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 tax | 2/12/2011 |
| 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 property | 2/11/2011 |
| 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 Deduction | 2/11/2011 |
| 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 property | 2/11/2011 |
| 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 IRA | 2/11/2011 |
| 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 ... | |
| 1099C | 2/11/2011 |
| 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 taxes | 2/11/2011 |
| 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 premiums | 2/11/2011 |
| 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 Penalty | 2/11/2011 |
| 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 law | 2/11/2011 |
| 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 taxed | 2/11/2011 |
| 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 Claim | 2/11/2011 |
| 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 Received | 2/10/2011 |
| 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 ROTH | 2/10/2011 |
| 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-MISC | 2/10/2011 |
| 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 withholding | 2/10/2011 |
| 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 Carryover | 2/10/2011 |
| 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 allowance | 2/10/2011 |
| 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 taxes | 2/10/2011 |
| 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 taxes | 2/9/2011 |
| 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 ALLOWANCE | 2/9/2011 |
| 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 home | 2/9/2011 |
| 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 Deduction | 2/9/2011 |
| 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 PAID | 2/9/2011 |
| 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 error | 2/9/2011 |
| 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 Military | 2/8/2011 |
| 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 son | 2/8/2011 |
| 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 expenses | 2/8/2011 |
| 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 expenses | 2/8/2011 |
| 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 Debt | 2/8/2011 |
| 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 SSI | 2/8/2011 |
| 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 Montana | 2/8/2011 |
| 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 Expenses | 2/7/2011 |
| 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 Credit | 2/7/2011 |
| 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's | 2/7/2011 |
| 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 Gift | 2/7/2011 |
| 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 Income | 2/7/2011 |
| 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 Income | 2/7/2011 |
| 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 lieu | 2/6/2011 |
| 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 Property | 2/6/2011 |
| 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 out | 2/6/2011 |
| 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 Penalty | 2/6/2011 |
| 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 W2 | 2/5/2011 |
| 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 taxes | 2/5/2011 |
| 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 filing | 2/5/2011 |
| 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 filing | 2/5/2011 |
| 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 son | 2/4/2011 |
| 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 ... | |
| income | 2/4/2011 |
| 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 son | 2/4/2011 |
| 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 taxes | 2/4/2011 |
| 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 property | 2/4/2011 |
| 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 taxes | 2/4/2011 |
| 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 deductions | 2/3/2011 |
| 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/COD | 2/3/2011 |
| 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 taxes | 2/3/2011 |
| 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. ... | |
| income | 2/3/2011 |
| 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 deductions | 2/3/2011 |
| 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 ... | |
| Taxes | 2/3/2011 |
| 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 credit | 2/3/2011 |
| 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 property | 2/3/2011 |
| 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 misc | 2/3/2011 |
| 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 Reinbursement | 2/3/2011 |
| 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 Shortsale | 2/2/2011 |
| 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 Shortsale | 2/2/2011 |
| 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 Status | 2/2/2011 |
| 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 Payments | 2/2/2011 |
| 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 IRA | 2/2/2011 |
| 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 IRA | 2/2/2011 |
| 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 earned | 2/2/2011 |
| 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 - number | 2/2/2011 |
| 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 office | 2/2/2011 |
| 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 BK | 2/1/2011 |
| 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 BK | 2/1/2011 |
| 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 4562 | 2/1/2011 |
| 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 Time | 2/1/2011 |
| 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 taxes | 2/1/2011 |
| 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 employer | 1/31/2011 |
| 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 1099A | 1/31/2011 |
| 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 Ohio | 1/31/2011 |
| 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 Question | 1/31/2011 |
| 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-T | 1/31/2011 |
| 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 dedcution | 1/31/2011 |
| 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 sales | 1/30/2011 |
| 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 Employees | 1/30/2011 |
| 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 Income | 1/30/2011 |
| 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 property | 1/30/2011 |
| 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 taxes | 1/30/2011 |
| 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 Deduction | 1/29/2011 |
| 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 ... | |
| w2 | 1/29/2011 |
| 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 ... | |
| tuition | 1/29/2011 |
| 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 2010 | 1/29/2011 |
| 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's | 1/29/2011 |
| 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 NYC | 1/28/2011 |
| 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 Question | 1/28/2011 |
| 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 tax | 1/28/2011 |
| 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 paycheck | 1/28/2011 |
| 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 Student | 1/28/2011 |
| 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 amount | 1/28/2011 |
| 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 question | 1/28/2011 |
| 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 disturbance | 1/28/2011 |
| 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 inventions | 1/28/2011 |
| 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 home | 1/27/2011 |
| 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 Winnings | 1/27/2011 |
| 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) distribution | 1/27/2011 |
| 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 forms | 1/27/2011 |
| 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 reimbursement | 1/27/2011 |
| 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-2 | 1/27/2011 |
| 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 3 | 1/26/2011 |
| 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 household | 1/26/2011 |
| 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 tax | 1/26/2011 |
| 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 biweekly | 1/26/2011 |
| 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 Credit | 1/25/2011 |
| 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 witheld | 1/25/2011 |
| 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 claims | 1/25/2011 |
| 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. ... | |
| Form4361 | 1/25/2011 |
| 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 contribution | 1/25/2011 |
| 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 Credit | 1/25/2011 |
| 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 addendum | 1/25/2011 |
| 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-R | 1/24/2011 |
| 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 Account | 1/24/2011 |
| 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 ... | |
| tax | 1/24/2011 |
| 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 exclusion | 1/24/2011 |
| 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 Diem | 1/24/2011 |
| 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 2010 | 1/24/2011 |
| 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 line | 1/24/2011 |
| 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 refund | 1/23/2011 |
| 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 overseas | 1/23/2011 |
| 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 property | 1/23/2011 |
| 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 question | 1/23/2011 |
| 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 states | 1/23/2011 |
| 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 Member | 1/23/2011 |
| 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 income | 1/22/2011 |
| 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 income | 1/22/2011 |
| 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 another | 1/22/2011 |
| 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 credit | 1/22/2011 |
| 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 2010 | 1/22/2011 |
| 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 ... | |
| 1099 | 1/22/2011 |
| 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 Eligibility | 1/21/2011 |
| 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 fees | 1/21/2011 |
| 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 Reporting | 1/20/2011 |
| 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 allowance | 1/19/2011 |
| 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 Requirements | 1/19/2011 |
| 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 Requirements | 1/19/2011 |
| 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 ... | |
| miscalculation | 1/19/2011 |
| 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 taxes | 1/19/2011 |
| 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 fraud | 1/19/2011 |
| 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 separate | 1/19/2011 |
| 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 7 | 1/18/2011 |
| 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 Property | 1/18/2011 |
| 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 tax | 1/18/2011 |
| 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 expanses | 1/18/2011 |
| 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 Form | 1/18/2011 |
| 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 withdrawl | 1/18/2011 |
| 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 Dependants | 1/18/2011 |
| 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 benefits | 1/18/2011 |
| 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 resident | 1/17/2011 |
| 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 benefits | 1/17/2011 |
| 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-offs | 1/17/2011 |
| 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 sale | 1/17/2011 |
| 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/Pension | 1/17/2011 |
| 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 resident | 1/17/2011 |
| 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 disability | 1/17/2011 |
| 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 parent | 1/17/2011 |
| 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 state | 1/16/2011 |
| 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 credit | 1/16/2011 |
| 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 taxpayer | 1/16/2011 |
| 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-MISC | 1/16/2011 |
| 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 Question | 1/16/2011 |
| 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 Gails | 1/15/2011 |
| 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 babysitting | 1/15/2011 |
| 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 Credit | 1/15/2011 |
| 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 Litigation | 1/15/2011 |
| 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 Credit | 1/15/2011 |
| 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 Property | 1/14/2011 |
| 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 ... | |
| Taxes | 1/14/2011 |
| 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 Stipend | 1/14/2011 |
| 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 residence | 1/13/2011 |
| 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 Daycare | 1/13/2011 |
| 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 ... | |
| exemption | 1/13/2011 |
| 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 property | 1/13/2011 |
| 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 property | 1/13/2011 |
| 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 singers | 1/13/2011 |
| 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 children | 1/12/2011 |
| 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 w2 | 1/12/2011 |
| 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 Employment | 1/12/2011 |
| 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 ... | |
| exemptions | 1/12/2011 |
| 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 tax | 1/12/2011 |
| 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 question | 1/12/2011 |
| 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 ... | |
| Tax | 1/11/2011 |
| 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 registration | 1/11/2011 |
| 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 Household | 1/11/2011 |
| 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 question | 1/10/2011 |
| 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 taxes | 1/10/2011 |
| 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 Houshold | 1/10/2011 |
| 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 household | 1/9/2011 |
| 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 ... | |
| Audit | 1/7/2011 |
| 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 Rule | 1/6/2011 |
| 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 Taxes | 1/5/2011 |
| 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 question | 1/5/2011 |
| 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 Dependent | 1/5/2011 |
| 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 Assignment | 1/5/2011 |
| 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-MISC | 1/5/2011 |
| 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. tax | 1/5/2011 |
| 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 allowance | 1/5/2011 |
| 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 taxes | 1/4/2011 |
| 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 taxes | 1/4/2011 |
| 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 ... | |
| MGIB | 1/4/2011 |
| 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 question | 1/2/2011 |
| 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 driver | 1/2/2011 |
| 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 ... | |
| dependent | 12/31/2010 |
| 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 ... | |
| dependent | 12/31/2010 |
| 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 SUPPORT | 12/31/2010 |
| 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 taxes | 12/31/2010 |
| 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 houses | 12/30/2010 |
| 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 houses | 12/30/2010 |
| 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 FSAs | 12/30/2010 |
| 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 purposes | 12/30/2010 |
| 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 Employees | 12/30/2010 |
| 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 member | 12/21/2010 |
| 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 ministry | 12/20/2010 |
| 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 buyer | 12/20/2010 |
| 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 bonuses | 12/20/2010 |
| 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 dies | 12/20/2010 |
| 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 earnings | 12/19/2010 |
| 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 donations | 12/18/2010 |
| 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 Trust | 12/18/2010 |
| 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 Forgiveness | 12/17/2010 |
| 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 overseas | 12/17/2010 |
| 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 overseas | 12/17/2010 |
| 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 Reimbursements | 12/16/2010 |
| 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 SSAN | 12/16/2010 |
| 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 firefighters | 12/16/2010 |
| 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 reporting | 12/16/2010 |
| 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 gifts | 12/16/2010 |
| 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 question | 12/16/2010 |
| 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 ... | |
| stock | 12/15/2010 |
| 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 Labor | 12/15/2010 |
| 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 ... | |
| Collision | 12/15/2010 |
| 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 off | 12/15/2010 |
| 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 Land | 12/14/2010 |
| 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 taxes | 12/13/2010 |
| 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 requirements | 12/13/2010 |
| 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 llc | 12/13/2010 |
| 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 taxes | 12/12/2010 |
| 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 ... | |
| Rental | 12/11/2010 |
| 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 together | 12/10/2010 |
| 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 Housing | 12/10/2010 |
| 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 expenses | 12/10/2010 |
| 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 expenses | 12/10/2010 |
| 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 expenses | 12/10/2010 |
| 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 status | 12/10/2010 |
| 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 Property | 12/9/2010 |
| Q: John, what's the best way to save on taxes and max $$ flow from a rental home I'm considering ... A: Greg, An LLC is a disregarded entity at the IRS, meaning you would report it on a Schedule E, the ... | |
| Spec House 1099s for labor | 12/9/2010 |
| Q: My husband and I are almost finished with our first spec house. The house will be completed and put ... A: Pam, Thanks for your question. You must send out the 1099's in the year the income is earned. The ... | |
| tax on Social Security Income | 12/9/2010 |
| Q: I know a custodial account is not taxable up to a certain income level for a child (custodial ... A: Robert, Thanks for your question. The social security would be taxable. However, it is unlikely ... | |
| Sale of home | 12/9/2010 |
| Q: William, My wife and I sold our home in Maryland in 2010 at a profit of about $100k. We hired a tax ... A: Scott, William couldn't take your question at this time, but I will give it a shot. Since you ... | |
| Residency/State income taxes | 12/9/2010 |
| Q: Today I received a letter from the NC Dept of Revenue stating I failed to pay taxes for 2006. In ... A: Jimmy, Thanks for your question. NC has the right to tax property or earnings occurring in the ... | |
| tax | 12/8/2010 |
| Q: I recently received a patent and am starting to market it. I received advise to incorporate our ... A: Meshia, Thanks for your question. It would have been better to form a corporation in which to ... | |
| VA benefits | 12/8/2010 |
| Q: John: I am trying to help a neighbor. She receives $1,600 a month from the VA for taking care of ... A: Larry, Thanks for your question. According to my information, that income is taxable to her and is ... | |
| Rental Property | 12/8/2010 |
| Q: John, what's the best way to save on taxes and max $$ 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 return | 12/7/2010 |
| 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 CHURCH | 12/7/2010 |
| 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 contract | 12/6/2010 |
| 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 contractor | 12/5/2010 |
| 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 stocks | 12/4/2010 |
| 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 law | 12/4/2010 |
| 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 982 | 12/4/2010 |
| 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 expenses | 12/3/2010 |
| 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 property | 12/2/2010 |
| 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 funds | 12/1/2010 |
| 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 Costs | 12/1/2010 |
| 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 retirement | 12/1/2010 |
| 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 converstion | 11/30/2010 |
| 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 file | 11/29/2010 |
| 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 consent | 11/29/2010 |
| 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 LLC | 11/29/2010 |
| 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 Diem | 11/29/2010 |
| 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 dates | 11/23/2010 |
| 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 dates | 11/23/2010 |
| 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-up | 11/22/2010 |
| 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 followup | 11/22/2010 |
| 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 question | 11/22/2010 |
| 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 ... | |
| Bookkeeping | 11/22/2010 |
| 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 Return | 11/21/2010 |
| 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 tax | 11/21/2010 |
| 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 basis | 11/21/2010 |
| 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 basis | 11/20/2010 |
| 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 business | 11/20/2010 |
| 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 Residency | 11/19/2010 |
| 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 question | 11/19/2010 |
| 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 tax | 11/18/2010 |
| 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 tax | 11/18/2010 |
| 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 compensation | 11/18/2010 |
| 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 bankruptcy | 11/17/2010 |
| 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 employer | 11/17/2010 |
| 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-stipend | 11/16/2010 |
| 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-Relocation | 11/16/2010 |
| 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 employer | 11/16/2010 |
| 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 bonds | 11/16/2010 |
| 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 preparation | 11/15/2010 |
| 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 deduction | 11/14/2010 |
| 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 fire | 11/13/2010 |
| 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 Individual | 11/13/2010 |
| 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 number | 11/11/2010 |
| 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 Repayment | 11/10/2010 |
| 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 employee | 11/10/2010 |
| 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 easement | 11/10/2010 |
| 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 Employed | 11/10/2010 |
| 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 Employed | 11/10/2010 |
| 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 Liability | 11/9/2010 |
| 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 Bill | 11/9/2010 |
| 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 friend | 11/9/2010 |
| 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 ... | |
| Deductions | 11/9/2010 |
| 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 exemption | 11/8/2010 |
| 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 ... | |
| 1099 | 11/8/2010 |
| 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 1099 | 11/8/2010 |
| 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 residence | 11/7/2010 |
| 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 stocks | 11/7/2010 |
| 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 exemption | 11/7/2010 |
| 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's | 11/7/2010 |
| 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 effects | 11/5/2010 |
| 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 Tax | 11/4/2010 |
| 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 Amendments | 11/4/2010 |
| 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 investment | 11/3/2010 |
| 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-Lieu | 11/2/2010 |
| 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 Stock | 11/2/2010 |
| 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 ... | |
| TAX | 10/31/2010 |
| 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 Annuity | 10/30/2010 |
| 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 Trust | 10/30/2010 |
| 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 pay | 10/29/2010 |
| 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 Winnings | 10/29/2010 |
| 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/ inheritance | 10/29/2010 |
| 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 Method | 10/28/2010 |
| 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 Method | 10/28/2010 |
| 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 Depreciation | 10/28/2010 |
| 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 Purchase | 10/27/2010 |
| 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 move | 10/26/2010 |
| 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 Question | 10/25/2010 |
| 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 Exemption | 10/25/2010 |
| 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 spouse | 10/25/2010 |
| 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, ... | |
| 1099 | 10/22/2010 |
| 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 business | 10/22/2010 |
| 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 overseas | 10/22/2010 |
| 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 Mileage | 10/21/2010 |
| 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 labor | 10/21/2010 |
| 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 gift | 10/20/2010 |
| 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 1120 | 10/20/2010 |
| 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 Credit | 10/19/2010 |
| 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 daughter | 10/19/2010 |
| 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 daughter | 10/19/2010 |
| 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 CT | 10/18/2010 |
| 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 Checks | 10/18/2010 |
| 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 property | 10/16/2010 |
| 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 property | 10/16/2010 |
| 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 2009 | 10/16/2010 |
| 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 Income | 10/15/2010 |
| 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 Debt | 10/15/2010 |
| 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 apartment | 10/15/2010 |
| 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 person | 10/14/2010 |
| 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 apartment | 10/14/2010 |
| 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 land | 10/14/2010 |
| 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 price | 10/14/2010 |
| 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 Withdrawals | 10/14/2010 |
| 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 ... | |
| 941 | 10/14/2010 |
| 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 MBA | 10/13/2010 |
| 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 credit | 10/12/2010 |
| 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 sub | 10/12/2010 |
| 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 member | 10/12/2010 |
| 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 education | 10/12/2010 |
| 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 ... | |
| taxes | 10/10/2010 |
| 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 valuation | 10/5/2010 |
| 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 file | 10/4/2010 |
| 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 land | 10/4/2010 |
| 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 Tax | 10/4/2010 |
| 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 reimbursement | 10/1/2010 |
| 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 Mexico | 10/1/2010 |
| 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 tax | 9/30/2010 |
| 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 liability | 9/30/2010 |
| 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 audit | 9/29/2010 |
| 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 ... | |
| Incorporation | 9/28/2010 |
| 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 ... | |
| Taxes | 9/28/2010 |
| 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 Taxes | 9/27/2010 |
| 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 designations | 9/27/2010 |
| 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 Tips | 9/26/2010 |
| 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 Cut | 9/26/2010 |
| 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 Taxes | 9/26/2010 |
| 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 HELOC | 9/24/2010 |
| 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 673 | 9/24/2010 |
| 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-C | 9/23/2010 |
| 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 payback | 9/23/2010 |
| 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-corp | 9/22/2010 |
| 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 Tax | 9/22/2010 |
| 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 question | 9/19/2010 |
| 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 Labor | 9/18/2010 |
| 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 Gifts | 9/18/2010 |
| 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 months | 9/17/2010 |
| 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 expenses | 9/17/2010 |
| 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 income | 9/16/2010 |
| 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 adult | 9/15/2010 |
| 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 dependent | 9/15/2010 |
| 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 return | 9/15/2010 |
| 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 help | 9/15/2010 |
| 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 ... | |
| ANNUITY | 9/14/2010 |
| 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 travel | 9/14/2010 |
| 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 ... | |
| Eyeglasses | 9/14/2010 |
| 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 Expenses | 9/14/2010 |
| 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 Tax | 9/14/2010 |
| 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 401K | 9/14/2010 |
| 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 Tax | 9/13/2010 |
| 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 Domain | 9/13/2010 |
| 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 royalties | 9/12/2010 |
| 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 business | 9/11/2010 |
| 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. employee | 9/11/2010 |
| 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 property | 9/9/2010 |
| 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 exclusion | 9/8/2010 |
| 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 Liability | 9/7/2010 |
| 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/Inheritance | 9/6/2010 |
| 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 exclusion | 9/6/2010 |
| 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 requisites | 9/5/2010 |
| 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 requisites | 9/5/2010 |
| 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 sea | 9/5/2010 |
| 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 oversea | 9/5/2010 |
| 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 husband | 9/4/2010 |
| 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 husband | 9/4/2010 |
| 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 overseas | 9/4/2010 |
| 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 FLP | 9/4/2010 |
| 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 loss | 9/3/2010 |
| Q: I have a st | |