| Subject | Date Asked |
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| filing status | 11/17/2009 |
Q: i've been married for 25 years and my wife has never worked during that time. i['ve always filed my ...
A: Flip: If you file as "Married, filing separately" you will lose half of your standard deduction and ...
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| Tax on Investment Gains | 10/29/2009 |
Q: Im looking to buy a computer in order to research and trade more easily. I recently set myself up ...
A: In that case, Bill, you are limited in your deduction. Your deduction would come in on Schedule A ...
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| Tax on Investment Gains | 10/29/2009 |
Q: Im looking to buy a computer in order to research and trade more easily. I recently set myself up ...
A: Bill: If you are in the business of trading (or your LP is in the business of trading) and it is a ...
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| energy efficiency tax credit | 10/26/2009 |
Q: I am currently having a new heating system installed in my home and hoped to take advantage of ...
A: It's always good to check with a tax professional rather than someone who may or may not know the ...
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| Father's Estate | 10/17/2009 |
Q: New York State: Hi, I will be getting about $50,000 from my father's estate. I live in NY State. ...
A: Shelley: You do not have a Federal taxable event when you inherit money. Any taxes would be paid ...
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| Tax on selling a car | 10/16/2009 |
Q: I am considering "trading down". I have a cash offer of $25,500 from carmax for my old car. I can ...
A: Jo: You don't say whether this is a personal use vehicle or for business use. Since you didn't ...
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| passive losses | 10/2/2009 |
Q: I have taxable income (line43-1040) of $30,000 from wages only. I am a passive limited partner in a ...
A: Rod: This is an excellent question. Here is the rule: As you have surmised, if you fully dispose ...
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| Business Special Assessment | 9/25/2009 |
Q: We own a small business and have received a special assessment for road improvements. I understand ...
A: Debbie: You didn't say whether the assessment was for your home (maybe your business works out of ...
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| Sold small business for a loss | 9/22/2009 |
Q: In 2007 we bought 50% of a retail store for 120K. The business is structured as an LLC. In 2008 we ...
A: Brian: I am assuming that you are being taxed as a partnership, but you may be taxed in another ...
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| Company Structure | 9/21/2009 |
Q: Owen, Many thanks for your time. Wish to clarify just a point that you seem to have misunderstood, ...
A: Ryan: You're welcome. Hope it helped somewhat. Please be sure to fill out the rating survey. ...
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| Business Structure | 9/20/2009 |
Q: My wife (home maker) and I (retired corporate executive & professional engineer) are both Canadians. ...
A: Ryan: It appears you have done quite a bit of research on the subject at hand. There are many ways ...
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| donating used car vs. private sale | 9/18/2009 |
Q: I live in Massachusetts and am wondering how I can best evaluate whether to sell my 96 Corolla (for ...
A: Tom: I'm happy to answer this question for you. Take the cash because it is worth more to you. ...
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| Avoid/Minimize Taxes on Cancelled Debt on Recourse Home Loan | 9/15/2009 |
Q: I am going on a foreclosure and expected to finalize it by mid November since NOD has been filed ...
A: Teatro: There are a few things at work here. First, is this your primary residence? If so, this ...
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| amount of federal tax due | 9/1/2009 |
Q: I am withdrawing 50,000 from my IRA to purchase a home I am 60yrs so no penalty applies other than ...
A: Candice: I will give you an estimate based on 2008's tax rates (which are substantially similar to ...
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| amount of federal tax due | 9/1/2009 |
Q: I am withdrawing 50,000 from my IRA to purchase a home I am 60yrs so no penalty applies other than ...
A: Candice: It is nearly impossible for me to give you a figure for what your taxes would be without a ...
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| quarterly tax payments | 8/28/2009 |
Q: I was a full-time employee of a company through Feb 2009, received only unemployment payments from ...
A: Larry: There is no exemption for quarterly estimated payments, first year or otherwise, unless you ...
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| 108(d)(3) determining insolvency | 8/27/2009 |
Q: To avoid income on the cancellation of indebtedness, one exemption is where the tax payer is ...
A: Steve: First, just to clarify, I'm not a CPA; I am an Enrolled Agent. Second, your original ...
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| 108(d)(3) determining insolvency | 8/27/2009 |
Q: To avoid income on the cancellation of indebtedness, one exemption is where the tax payer is ...
A: Steve: One has to be careful in picking out specific points from a Tax Court case to support ...
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| 108(d)(3) determining insolvency | 8/27/2009 |
Q: To avoid income on the cancellation of indebtedness, one exemption is where the tax payer is ...
A: Steve: Under Section 108 of Internal Revenue Code, 401(k)s and IRAs are included. For a helpful ...
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| Capital gains/losses | 8/23/2009 |
Q: In July a stock fund that I held for 12.5 months sold for a $20,000 loss. Is it true that only ...
A: Linda: It is true that you are limited to a $3,000 maximum deduction for capital losses each year. ...
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| Lease or finance electronics for business | 8/21/2009 |
Q: I'm trying to figure out from a tax standpoint is it better to lease or finance electronics for my ...
A: Jack: One of the factors to take into consideration would be what type of lease it is. There are a ...
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| Day Trader tax calculation | 8/17/2009 |
Q: I am a day trader with LLC this year. My question is when I file income tax (I usually file it by ...
A: Jim: As a day trader, since you're looking for simplification, the best arrangement for you would ...
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| tax rate schedule | 8/3/2009 |
Q: What are tax rate schedules used for? Can they be used to give someone an idea of what their income ...
A: No; taxable income is a figure with a lot of adjustments. In short, it is your total income from ...
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| tax rate schedule | 8/2/2009 |
Q: What are tax rate schedules used for? Can they be used to give someone an idea of what their income ...
A: Danielle: As long as you know your TAXABLE income, tax rate schedules can, indeed, give you an idea ...
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| social security | 7/27/2009 |
Q: I am a babysitter, and I don't file taxes because I don't make enough money to... My clients were ...
A: OK. If I understand you correctly, since your parents can claim you on their tax return, the people ...
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| social security | 7/24/2009 |
Q: I am a babysitter, and I don't file taxes because I don't make enough money to... My clients were ...
A: Felicia: First off, I don't have enough information to properly answer your question. How old are ...
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| Accountant's Responsibility? | 7/20/2009 |
Q: I have been using a CPA for several years to do my 1040 and Schedule C. He seems to be competent ...
A: Jon: This is a fantastic question! I would love to find hundreds of small business owners like ...
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| EE Bonds | 7/14/2009 |
Q: I have some EE bonds purchased in Feb of 1993 for my daughters college education. My eldest daughter ...
A: Marshall: Answers below: a) Line 37 & 38 (1040 TY 2008) is your adjusted gross income (the line ...
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| Federal taxes on my lottery win. | 7/11/2009 |
Q: I won recently $1.5 million in a state lottery. 33.5% in taxes was taken out upfront(25% Fed & 8.5% ...
A: Sheila: It would depend entirely on the amount on the 1099 that you receive which will govern your ...
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| Barter child care in exchange for rent | 7/10/2009 |
Q: I have a room in my home that I would like to offer to a college student. Instead of rent, I was ...
A: Rachel: This sounds like a case of bartering. That being the case, you would likely have to count ...
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| deductability of residential real estate tax | 6/27/2009 |
Q: The surviving spouse is the beneficiary of a marital deduction trust which holds full title to the ...
A: Nicholas: I think you're getting more into a legal question versus a tax question. Again, the ...
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| deductability of residential real estate tax | 6/26/2009 |
Q: The surviving spouse is the beneficiary of a marital deduction trust which holds full title to the ...
A: There are many variables to this scenario. I would assume the following: 1) This is an irrevocable ...
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| employee withholding allowances/moving expense | 6/19/2009 |
Q: I moved to Arizona from Hawaii in April in order to get a job in this economy. The first 4 months ...
A: Rosalie: The best thing you can do is to fill out the W-4 form as instructed and based on what you ...
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| My Sole Proprietorship - Filing Taxes | 6/3/2009 |
Q: I formed a sole proprietorship in the beginning of March 2009. I am based in New York City. It is an ...
A: Joshua: When you are a sole proprietor, you file Schedule C with your regular tax filing (Form ...
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| Taxes While Overseas | 6/2/2009 |
Q: Good Afternoon, Thank you for making yourself available for advice. I'll be teaching English in ...
A: Aneika: Yes, all worldwide income is taxable and you have the same filing obligations. I hope this ...
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| Learning bookkeeping | 6/2/2009 |
Q: I want to list myself as a professional stock trader next year, mainly to have more tax flexibility. ...
A: John: Try this: http://www.accountingcoach.com/ Hope this helps! I hope this answers your ...
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| state taxes after moving | 5/31/2009 |
Q: We are planning to leave California on Sep 1, 2009 to live in Missouri. If we wait until we are ...
A: George: It appears from your question that you will be a partial year resident in both states. I ...
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| reporting S-Corp losses on personal return | 5/26/2009 |
Q: My husband and I incorporated last year as an S-Corp for my husband's IT consulting services. Since ...
A: Mina: Did you have any income or expenses in 2008 under the sole proprietorship (Schedule C)? If ...
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| reporting S-Corp losses on personal return | 5/26/2009 |
Q: My husband and I incorporated last year as an S-Corp for my husband's IT consulting services. Since ...
A: Mina: The way income/losses from an S-corp is handled is through a K-1 form from the Form 1120S. ...
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| How taxes are figured on stock trades | 5/26/2009 |
Q: I recently started doing a little swing trading and I have a question. If I buy say 10 different ...
A: Bill: To answer your question in the briefest and most understandable manner, any profits and ...
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| Sole Propreitorship to LLC | 5/4/2009 |
Q: I am in process of going from Sole proprietorship to LLC. I would like to know if I should wait ...
A: I am not familiar with Indiana's laws on LLCs, but I do know that there are filing and tax ...
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| Sole Propreitorship to LLC | 5/4/2009 |
Q: I am in process of going from Sole proprietorship to LLC. I would like to know if I should wait ...
A: Jennifer: There is no simple answer to your question because there are a lot of variables, such as ...
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| transfer of mutual fund in a partnership | 4/27/2009 |
Q: A partner in our partnership wants to redeem a portion of his partnership interest. Can we defer ...
A: The answer depends on how the partner got his share of the partnership interest, including those ...
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| ? IN RE: lottery winnings | 4/27/2009 |
Q: I was looking through your previous answers and saw this question & answer:A friend and I won a ...
A: If I understand your question correctly, the answer is that the winnings (earnings from Sch K-1) ...
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| Our recent dialog on energy credits | 4/22/2009 |
Q: Our local CPA tells me that the credits for a furnace and A/C in the house we are building are NOT ...
A: Lou: The credits for furnace and AC is not valid for new construction, only replacement. It is ...
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| Claiming on ebay | 4/22/2009 |
Q: I am starting to sell items on eBay and am trying to figure out if I need to report that imcome to ...
A: Jamie: Since you are not in business and if you are just getting rid of old items, the chances are ...
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| 2009 energy tax credits | 4/20/2009 |
Q: We are building a new home to be completed about July 1, 2009. Are we eligible for tax credits for ...
A: Lou: As you can see from the reference below, there are certain requirements as you indicated: ...
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| tax question on 2nd home | 4/20/2009 |
Q: My wife and I are considering purchasing a vacation condo in Florida with my in-laws. My ...
A: Dave: It would seem that the interest deduction for you is pretty straight-forward; it is ...
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| 2009 energy tax credits | 4/17/2009 |
Q: We are building a new home to be completed about July 1, 2009. Are we eligible for tax credits for ...
A: Lou: Please note that these credits are for 2009 ONLY: 1. Energy efficiency improvements-10% of ...
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| Tax Owed | 4/14/2009 |
Q: Mike, I am 60 yrs old, disabled and would like to know how much taxes would I owe if I withdrew ...
A: The answer depends on your total income in the year of the withdrawal. Since you are past 59 1/2, ...
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| Construction Loan Interest/Selling of House | 3/27/2009 |
Q: Can you please explain how an individual working as a sole proprietor would handle the following in ...
A: The answer depends on what the purpose of the building of the house was. Since you didn't live in ...
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| Taxes | 2/27/2009 |
Q: Where can I get accurate info about the tax deduction for new car buyers under the stimulus bill? ...
A: http://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022503668.html?hpid=moreheadli ...
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| Energy Tax Credit | 2/26/2009 |
Q: My parents (who live in Indiana) purchased a new electric air handler in August 2008. Their A/C and ...
A: Unfortunately, non-business energy property credits do not qualify in 2008, only 2006, 2007 & 2009. ...
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| Stock losses/gains | 2/24/2009 |
Q: For 2008 I had "net" short term losses on stocks in the amount of $15,000. I also had "net" long ...
A: You are limited to a maximum of $3,000 in capital losses each year; that's why you're getting that ...
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| solo Roth 401(k), TSP | 2/24/2009 |
Q: I am in the military and have a small amount oif ndependent contractor income ($3400) and would like ...
A: Julie: A thrift savings plan is a defined contribution plan and, as such, is subject to the same ...
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| first time homeowner credit | 2/22/2009 |
Q: My daughter and fiance bought a house in late March of 2008, they would love to take advantage of ...
A: Jen: I was wondering what you mean by why THEY wouldn't pick January 1? Well, it is congress, ...
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| Dependent status for 20 year old son | 2/21/2009 |
Q: My son is 20 years old, and was a full time student for only 4 months in 2008. The rules are 5 ...
A: Wes: Strict or not, the issue is a matter of honesty. If your son doesn't qualify, he doesn't ...
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| Tax Preparation Fees | 2/21/2009 |
Q: I just wanted to know what you think is a reasonable fee to pay for Business Tax and personal tax ...
A: Jay: This is one of the all-time great questions that all tax professionals wrestle with. It helps ...
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| rental income | 2/21/2009 |
Q: I could really use your expert advice. During 2008 I rented my home out to a woman who stopped ...
A: Sam: First, income is income and expenses are expenses. You don't claim the income unless and ...
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| 1099 vs incorporating | 2/19/2009 |
Q: My husband is a police officer and former special forces marine. Two or three times per year he is ...
A: Anna: I'm glad to answer your question. Whether or not your husband incorporates, there is still ...
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| Multiple businesses | 2/18/2009 |
Q: Owen. My name's Pam. I'm a little confused about how to go about my taxes for '08. I work as an ...
A: The Big Apple, eh? That's where I'm from...born in Washington Heights and raised in Riverdale in ...
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| Turbo Tax | 2/18/2009 |
Q: I am thinking about using Turbo Tax online to file my 2009 taxes. My wife is a teacher, w-2 ...
A: I love questions like this, seriously. Software is NO SUBSTITUTE for a professional who knows the ...
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| Multiple businesses | 2/18/2009 |
Q: Owen. My name's Pam. I'm a little confused about how to go about my taxes for '08. I work as an ...
A: You will need to be sure what you are so you can be sure...! If you are an independent contractor, ...
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| Multiple businesses | 2/18/2009 |
Q: Owen. My name's Pam. I'm a little confused about how to go about my taxes for '08. I work as an ...
A: You raise a lot of issues here, Pam. First, are you REALLY an independent contractor where you work ...
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| Small home business....quilting | 2/17/2009 |
Q: My spouse has run a home business for 4 years from one room in our home devoted solely to quilting ...
A: You can claim home expenses for the portion that is used exclusively for business. Depending on ...
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| w2's for non profit (labor union) employees | 2/17/2009 |
Q: I reported information for 15 members of our Labor Union to the SSA Online to create their w2's. ...
A: Let me make sure I understand the main point - the person whom you issued a corrected W-2 to had no ...
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| Amanded Joint Return | 2/16/2009 |
Q: I have a question about amending a joint (married) tax return. My spouse wants to amend our 2007 ...
A: First consider: are you sure it's not a proper deduction? Maybe you'd like me to evaluate that ...
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| Taxation on lottery winnings | 2/16/2009 |
Q: A friend and I won a handsome sum of money on a scratch off lottery ticket. We are contemplating ...
A: A partnership is a pass-through entity and pays no tax (generally-speaking). Therefore, the ...
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| Taxation on lottery winnings | 2/16/2009 |
Q: A friend and I won a handsome sum of money on a scratch off lottery ticket. We are contemplating ...
A: There's a few things I need to know before I can answer this question. First, how are the winnings ...
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