| Subject | Date Asked | Expert |
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| Taxes | 6/25/2008 | Mike Wellman |
Q: Well this may come as a surprise, but I'm trying to help my ex-husband file his taxes for the past ...
A: If he owes no tax, he will owe no penalties. If he does, he will have a failure to file penalty of ...
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| C-Corporation set-up | 6/24/2008 | Richard Fritzler |
Q: I want to set-up a c-corp for my commissions. I currently am salaried and do other work for the ...
A: Nope, you are intelligently choosing to do business as a Real Corporation. As long as you live by ...
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| I need tax planning help | 6/14/2008 | Richard Fritzler |
Q: I plan to form a C Corp or some type of a inenity for my self employment i need help deciding on ...
A: Hurray, you are one of the first people to actually consider a Real Corporation, as your primary ...
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| Charity deductions | 4/6/2008 | Richard Fritzler |
Q: I have a sub s corp. I wrote a few checks (donations) to my church. Can that be deducted from my ...
A: The Sub-s doesn't pay any taxes, and therefore can't take these deductions. The Sub-s would ...
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| per diem | 2/18/2008 | Richard Fritzler |
Q: My past employer utilized a per diem structure by which he paid an average of the IRS designated ...
A: There is no "Minimum" / "Maximum" rate. The IRS has two rate schedules, the "Hi-low" schedule and ...
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| income limits eligible deductions from real estate | 2/17/2008 | Richard Fritzler |
Q: I just had my taxes done and was told that I couldn't deduct any of the expenses i had related to ...
A: I can't state loudly enough "If you are going to be successful in business, DO THAT BUSINESS as all ...
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| switching | 2/16/2008 | Richard Fritzler |
Q: How do you go about swithching n llc to a c corporation
A: Let me congratulate you on making the informed decision to get out of the LLC and into business with ...
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| Clergy Deductable Expenses | 2/15/2008 | Richard Fritzler |
Q: I am an ordained but unpaid clergy member of a 501(c)(3) church. While I do not receive clergy ...
A: prescript: as I reread this answer it seemed less friendly than I intended. Please believe that I do ...
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| Help with tax for small biz | 2/9/2008 | Richard Fritzler |
Q: I am lost on this particular issue, and need some advice. For the past five years, I have owned ...
A: I usually like to reserve the word idiot for those that are intentionally incompetent, people who ...
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| 2-family, single utility meters | 2/7/2008 | Richard Fritzler |
Q: Bought a 2 family 2007. It has one gas, water, electric meter. The much larger unit is our home. ...
A: Only if it part of the agreement you have with the tenant. If you have a tenant already and have ...
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| Form LLC Or Corp? | 2/6/2008 | Richard Fritzler |
Q: I am an independent contractor with a sales company, and I am wondering if I formed an LLC or(?), ...
A: The Corporation pays it's own tax, which does separate your income from your husbands. The ...
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| Social Security Income | 1/8/2008 | Mike Wellman |
Q: I am still employed and my spouse is not. She is eligable to take her social security benefit. My ...
A: Your earnings will not affect her social security benefits. Her SS should be reported and portion of ...
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| Rental property & mortgage interest exp under joint co-owners | 12/19/2007 | Mike Wellman |
Q: This might be a more complex question but I need to find a right answer. If a rental property has ...
A: In order to deduct mortgage interest, the following conditions must be met: (1) You must own (or ...
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| Real Estate Agency | 12/17/2007 | Mike Wellman |
Q: Good Afternoon Mr. Wellman, I recently earned my real estate license and will do it on the side ...
A: An LLC will provide no significant tax benefits and will just add to your paperwork. A single member ...
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| Sub contractors | 12/6/2007 | Richard Fritzler |
Q: I am a sole proprietor of a software engineering company. I've never used subcontractors before, but ...
A: The money that you pay others to help in your business is deductible, whether they are employees, or ...
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| Tax Planning | 12/5/2007 | Mike Wellman |
Q: Mike, I recently made an early withdrawl of about $30K from my 401K to start a home business and I ...
A: First of all, the withdrawal will be subject to an immediate penalty of about $3,000. The tax ...
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| SEP | 12/2/2007 | Richard Fritzler |
Q: I MAX OUT ON MY ROTH EVERY YEAR. I JUST WENT FROM A SOLE PROPRIETOR TO AN LLC. SHOULD I TRY TO MAX ...
A: Follow up to the question below: In your rating you said "he gave me just enough to bate me and try ...
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| Best tax Structure for startup | 11/15/2007 | Mike Wellman |
Q: I am currently starting an online business. I do not plan on being a "big" business, but I am still ...
A: A single member LLC is disregarded for federal income purposes. It is treated as a sole prop. so ...
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| S-Corp Benefits | 11/6/2007 | Richard Fritzler |
Q: I currently own a business and taxed as a sole proprietor. My profits are about $150,000 and my ...
A: Well, as you are now, the taxes are horrendous, that is true, and a Sub-S corporate structure would ...
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| Small Real Estate Investment, Requires C-corp? | 11/3/2007 | Richard Fritzler |
Q: My husband and I are thinking to start a real estate investment business. We are looking to start ...
A: I am also amazed at how confusing the accounting dogma tries to make it. At first glance it would ...
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| 1099 form | 11/3/2007 | Richard Fritzler |
Q: I am currently employed and use the W2, but I want to switch to another company to be a loan ...
A: As a payrolled employee, your employer pays 1/2 of social security and medicare (7.65%) they pay all ...
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| Tax Deductions (Assessments) | 10/22/2007 | Mike Wellman |
Q: Hey Mike, I was wondering if Homeowners' Association dues or special assessments paid for my ...
A: Home owner's association dues are not deductible on your Schedule A as an itemized deduction but are ...
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| Just starting selling CD's | 10/18/2007 | Mike Wellman |
Q: My partner and I are just about to release our first CD. It will be available on the web as well as ...
A: Since you are partners, you cannot be a sole proprietor. You are a partnership. You need to get an ...
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| avoiding taxes | 10/12/2007 | Mike Wellman |
Q: I am join owner of a house with my brothers. My brother is going to give me my share in cash - ...
A: If you are being paid $300,000 for your share of the house, you would not have any interest in the ...
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| avoiding taxes | 10/12/2007 | Mike Wellman |
Q: I am join owner of a house with my brothers. My brother is going to give me my share in cash - ...
A: Gifts are not taxable to the receiver. Your brother will have to file a gift tax return however. He ...
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| Taxes | 10/3/2007 | Richard Fritzler |
Q: I am president of a c-corp and owner of 49% of the stock.My mother is the other owner at 51%.We take ...
A: Leave the money in the corporation!!! If that is all you did you would reduce the taxes ...
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| The right form of business structure for a part-time business | 9/20/2007 | Richard Fritzler |
Q: Fritzler, I am planning on setting up a part-time home-based business that involves the following: ...
A: Your list does not include one (1) very critical bit of information that is really the lynch pin for ...
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| tax plans | 9/11/2007 | Richard Fritzler |
Q: fritzler! i have a question about tax planning. now, my annual salary is 48,835. we get paid every ...
A: Using your withholding as a forced savings plan is poor tax planning. You are giving an interest ...
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| filing income taxes | 9/6/2007 | Mike Wellman |
Q: this year my life has changed quite a bit and my wife and i have never filled a joint return before. ...
A: I am sorry perhaps I didn't understand the question. I thought you were asking what to do if you had ...
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| Paying quarterly contractor taxes | 9/4/2007 | Mike Wellman |
Q: I am a contractor and thus have to use 1099-R forms for filling out my taxes. I have recently been ...
A: There is a 10% penalty on the amount underpaid. As long as you have paid in at least 100% of last ...
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| Paying quarterly contractor taxes | 9/4/2007 | Mike Wellman |
Q: I am a contractor and thus have to use 1099-R forms for filling out my taxes. I have recently been ...
A: Since you have no withholding you will need to to make estimated tax payments using the 1040-ES ...
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| filing income taxes | 9/4/2007 | Mike Wellman |
Q: this year my life has changed quite a bit and my wife and i have never filled a joint return before. ...
A: I have many people come to me who have not filed in a few years and they are terrified of the ...
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| Personal Holding Company | 8/23/2007 | Richard Fritzler |
Q: What is a personal holding company? If I incorporate myself for insurance purposes, will I be ...
A: A PHC is any corporation that receives 60% or more passive income AND the 5 largest stockholders own ...
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| Tax on sale of house | 8/18/2007 | Richard Fritzler |
Q: My mother is 86 years old. She lives with my sister. Sometime within the next two years I am sure ...
A: She would be taxed at 5% on the part of the gain that stayed below the 25% tax rate ceiling for her. ...
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| Tax on sale of house | 8/17/2007 | Richard Fritzler |
Q: My mother is 86 years old. She lives with my sister. Sometime within the next two years I am sure ...
A: Okay, Alabama. Assuming that she is eligible for the $250k exemption from Federal gain taxes on her ...
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| Tax on sale of house | 8/17/2007 | Richard Fritzler |
Q: My mother is 86 years old. She lives with my sister. Sometime within the next two years I am sure ...
A: What State are we talking about? A "Structured Sale" would not reduce the overall tax, and If she ...
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| Tax on sale of house | 8/15/2007 | Richard Fritzler |
Q: My mother is 86 years old. She lives with my sister. Sometime within the next two years I am sure ...
A: The big items: $250,000 of that sale would be exempt from Federal taxes, assuming that she has ...
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| Real Estate. | 8/1/2007 | Richard Fritzler |
Q: I have two questions: 1) What are the tax implications if I am a owner/occupier in one unit of ...
A: 1. You still have to pay personal taxes on the rents received from the other units. Although because ...
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| inherited house | 7/19/2007 | Richard Fritzler |
Q: Do to an inheritance I now jointly own a Santa Barbara, California house with my two brothers, one ...
A: All of the wranglings that you are considering are moot. Since you inherited property you already ...
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| extra income | 7/13/2007 | Richard Fritzler |
Q: I have just started a new job,and I have the opportunity to make lots of overtime pay. How can I put ...
A: Your new employer is going to withhold all the taxes that are due on all the money (even the ...
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