About Experts Sitemap - Group 50 - Page 55 2014-10-28

Tax Law (Questions About Taxes): passive loss, ground improvements, trash removal
ground improvements, trash removal, weeks per year: Hi, You re quite correct about the passive loss. The passive refers to the type of activity which produced the income. If, as in the case of your condo, you do not take an active part in the real estate rental, it is considered passive income. By contrast...

Tax Law (Questions About Taxes): passive loss, ground improvements, interest dividends
ground improvements, interest dividends, profit motive: This treatment is correct. Your passive loss is deductible against passive income(interest, dividends, capital gains, etc)only. Your active loss is called rental loss. You must be an active participant in collection of rent, arranging for repairs, choosing...

Tax Law (Questions About Taxes): passive loss, passive losses, ground improvements
passive losses, ground improvements, mike thanks: Mike, Thanks for your question. Your tax preparer is correct. The law defines rental activities as passive. Normally, you can only deduct passive losses against passive income. However, if you actively involved in the rental activity (as defined by...

Tax Law (Questions About Taxes): passive loss, ground improvements, dear mike
ground improvements, dear mike, weeks per year: Dear Mike, Your accountant is TOTALLY correct in taking this venture as a passive venture and YES this does limit the amount of loss each person can claim on the schedule-E.. You and the other must actively and materially participate in the rental and...

Tax Law (Questions About Taxes): past due taxes, initial diagnosis, diagnosis treatment
initial diagnosis, diagnosis treatment, cognitive dysfunction: Loretta, the IRS will not talk to you unless he gives you power of attorney. But yes, someone needs to talk to them and he really needs to be the one to do that. He is 45, a grown man. Yes, I know he has problems, but there is no reason to be ashamed to...

Tax Law (Questions About Taxes): past tax return deadline for refund, tax return deadline, refund checks
tax return deadline, refund checks, right question: the statue runs for three years so you would be able to file for 2004,2003,2002 don t hold you breath while waiting for any refunds also there may be late filing penalties. by the way if you have not filed prior to 2002 the statue does not stop for non-filers...

Tax Law (Questions About Taxes): past tax returns, irs gov, tax returns
irs gov, tax returns: Dear Janelle, Right off hand I do not know the IRS form number, but you do have 2 options here.... You can call the IRS at 1-800-829-1040 and they can give you the form number and then you can go to www.irs.gov and download it or they can send it to you........

Tax Law (Questions About Taxes): past year filings, buying a house, ramifications
buying a house, ramifications, 3 years: Dear Chris, If you owe NO taxes and are due a refund each year, then there are NO ramifications at all... There are NO penalties or interest if there are no taxes due.... However, since this is 3 years, I would STRONGLY suggest that you get them filed...

Tax Law (Questions About Taxes): pastor's car allowance, car allowance, tax return
car allowance, tax return, proof: Robert: No he is not required to have a car in his name. Since, the car allowance is considered income to him/her, the person only is required to show proof if he claims a deduction on his/her tax return of the expense used for transportation. Joh...

Tax Law (Questions About Taxes): Can I pay my 13 years old niece for babysitting?, form 1040 schedule c, form 1040 schedule se
form 1040 schedule c, form 1040 schedule se, social security and medicare: Dear Lou, By law, any money a person receives as wages or income should be reported to the IRS.... However, this could be considered a gray area and you need to call the IRS at 1-800-829-1040 just to be on the safe side.... If she is required to claim...

Tax Law (Questions About Taxes): Do I have to pay Capital gain tax, capital gain tax, maximum exclusion
capital gain tax, maximum exclusion, capital gains tax: Evelyn, Thanks for your question. If you occupy a house for 24 of the past 60 months as your principal residence, you may exclude up to $250,000 of the gain ($500,000 if married filing jointly). However, you can receive a reduced maximum exclusion...

Tax Law (Questions About Taxes): back pay for disability, disability payments, tax practitioner
disability payments, tax practitioner, ssdi: Keith, you still itemize, it just has no direct affect on her SSDI. If you follow the tax form, around line 19-20 will do the taxability of her benefits. For your child, unless he/she is required to file a return, you just ignore it. This may be a...

Tax Law (Questions About Taxes): pay/hire friends, payroll taxes, personal driver
payroll taxes, personal driver, gift taxes: You can. . . and people do, sometimes when you have an extra few hours and a high tolerance for B-Movies, notice how many people in the credits have the last name of Norris in a Chuck Norris Movie. Other celebrities, from rappers to fighter have an Entourage...

Tax Law (Questions About Taxes): pay off house ?, home owners insurance, insurance premiums
home owners insurance, insurance premiums, full insurance: Leonard: I can not assist you on this question. First, I would not pull the money out of the 401k plan to pay off the house. But, that is your call. Depending on your company rules, you can use 401K money to pay for a house, but, if the rules are not...

Tax Law (Questions About Taxes): do i have to pay if i have low income?, income tax liability, qualified education expenses
income tax liability, qualified education expenses, self employment taxes: Sara, Thanks for your question. I presume you are claiming your own personal exemption. If this is the case, you must file if your income exceeds $7,950. However, if the $1,500 consists of qualified education expenses at a qualified educational institution,...

Tax Law (Questions About Taxes): should we pay the tax on this appreciation?, capital improvements, adjusted basis
capital improvements, adjusted basis, principal payments: It is unusual for a disallowed loss on a property with this much increase in value. Generally her mother would have had a gain. The records of a disallowed loss would have been in the mother s return in the first year of the sale. You may wish to sell...

Tax Law (Questions About Taxes): Do I pay taxes?, stancil, tax liability
stancil, tax liability, scams: Debbie, Thanks for your question. Your tax liability is based on your gain, which would be the 20% that you keep. However, I would caution you to proceed very cautiosly in this situation. Arrangements like this are often scams leaving you with a loss...

Tax Law (Questions About Taxes): How I can pay taxes if I'm here illegally, social security number, federal offense
social security number, federal offense, breaking the law: Dear Abing, You are already breaking the law and could get arrested for what you are doing... Your employer is going to know about this the first time they file a 941 or state quarterly department of labor form, so I would suggest 1. that you get a proper...

Tax Law (Questions About Taxes): how much can you make before you have to pay taxes, social security disability, federal tax return
social security disability, federal tax return, online shopping mall: You will need to report the income on Schedule C as well as any related expenses for the business. He will use Schedule SE only if he has a profit(as shown on Schedule C) of 400 or more. Even if a return must be filed, no tax will be due until your gross...

Tax Law (Questions About Taxes): paycheck received (long question, but well-written), business expenditures, payroll system
business expenditures, payroll system, reimbursement check: Dear Ed, this company had every right to cut the check for 12/31/04 since you ACTUALLY did the work in 2004 and whether intentional or not you were held responsible for getting your hours to them in a reasonable amount of time (1 week is reasonable) instead...

Tax Law (Questions About Taxes): paying employees with bonuses, work comp insurance, paying employees
work comp insurance, paying employees, insurance costs: I do not agree with what you heard it would be a scheme that can get you in trouble! The bonusses would be considered payroll and taxed as such.While not being an expert in worker s compensation I would believe that they would also consider the bonus as...

Tax Law (Questions About Taxes): paying freelancer outside of U.S., overflow work, payroll laws
overflow work, payroll laws, sole proprietor: Dear Eric, I am not familiar with the tax/payroll laws of Australia and how the citizens of that country have to report their income... I do know that if you pay this person more than $599.00 and want to take this as an expense deduction that if she were...

Tax Law (Questions About Taxes): paying income taxes of a deceased, ira withdrawals, personal tax
ira withdrawals, personal tax, tax liability: Guy: He would be responsible for the tax on anything he withdrew while he was alive. His estate would be responsible on anything that was withdrawn to pay anything estate related. The beneficiaries would be responsible if any on anything they received....

Tax Law (Questions About Taxes): paying mileage, mileage reimbursement, union steward
mileage reimbursement, union steward, question deals: Ray, Thanks for your question. You are dealing with two different issues here. One is the tax issue. The other is company policy. From the tax standpoint, since your place of business is your home, you can deduct mileage from home to a training...

Tax Law (Questions About Taxes): paying for ministers docrite, irs rate, taxable income
irs rate, taxable income, payed: Teri, I answered your questions previously, but allexperts has had some trouble with their website, so it may not have gotten through. Glad you are helping him get his doctorate. If these were paid for him under an accountable plan they are not taxable...

Tax Law (Questions About Taxes): paying taxes concerning class action suits!, class action suits, hancok
class action suits, hancok, lawers: If there is a settlement, the terms of the settlement must be set out in writing, and you have an absolute right to see those terms. the attorneys could be taking 1/3, or 1/2 or some other amount. But again that would all be set out in the written agreement....

Tax Law (Questions About Taxes): paying taxes to two states, arkansas department of revenue, office hope
arkansas department of revenue, office hope, stancil: Rachel, Thanks for your question. No, his income will be taxed only by one state. Normally, he would be taxed in the state of residence, but it does vary and depends on the agreements between the two states. I am not familiar with the laws of those...

Tax Law (Questions About Taxes): paying taxes on stock gains, stock market gains, stock gains
stock market gains, stock gains, stancil: Heath, Thanks for your question. When you make a sale of securities at a gain, you must pay tax on that gain regardless of what you do with the proceeds. If you have held the securities more than 12 months, the rate is only 5 or 15% depending on...

Tax Law (Questions About Taxes): paying taxes on W2, w2 form, quarterly payroll
w2 form, quarterly payroll, pay stubs: Marie How do you know ? In any event an employer is responsible for filing Quarterly payroll tax returns (FED form 941) and paying withholding taxes at least quarterly as long as you receive a W2 at the end of the year showing correctly your wages and withholding...

Tax Law (Questions About Taxes): paying taxes, irs gov, self employment taxes
irs gov, self employment taxes, estimated tax payment: Dear G. Ballone, You will have to do your bookkeeping once a month..... At the end of each month you will have to determine your NET PROFIT (gross income LESS expenses EQUALS net profit .... Your NEXT 1040-ES (estimated payment is due September 15th...

Tax Law (Questions About Taxes): payment of student loans, stancil, dear john
stancil, dear john, student loans: Barbara, Thanks for your question. No, you will not have to pay taxes, as this is considered a gift, and gifts are not considered income. However, if the amount they pay on the loans exceeds $11,000 per person given, they should file an gift tax return....

Tax Law (Questions About Taxes): up front payment for taxi service, definate answer, taxie
definate answer, taxie, taxi company: Dear Ismael, Once again I simply do not have enough information here to answer this question specifically.... If you are considered as leasing this vehicle and not actually putting $6000 down as a purchase of this cab, then you take the $6000 as leasing...

Tax Law (Questions About Taxes): payroll, form 5500, eligible employees
form 5500, eligible employees, qualified health: Hi Trang Thanks for the question 1. I assume you are talking about qualified Health Plans and not retirement plans. A qualified health plan must include 80% of eligible employees, and can not discriminate against high paid employees. 2. Only qualified...

Tax Law (Questions About Taxes): payroll tax, payroll service, payroll tax
payroll service, payroll tax, quarterly return: Hi Raj Thanks for the follow-up. For the 1st year a new payroll payor must deposit monthly. After the 1st year the IRS, does a look back at your deposit requirements and payments and may allow you to deposit on a quarterly basis. It is up to the...

Tax Law (Questions About Taxes): payroll tax deductions, payroll tax deductions, federal tax deductions
payroll tax deductions, federal tax deductions, publication 15a: Hi, Your employers should be withholding Federal Income Tax in accordance with the way you completed your W4. They have more than one option they can use to compute the actual deduction. You could look on the IRS website www.irs.gov at Publication 15A...

Tax Law (Questions About Taxes): payroll taxes, payroll taxes, medicare
payroll taxes, medicare, social security: No, it is not normal and failing an agreement with you to do it, it is not legal. They benefit by not having to pay it. It saves then 7.65% of your salary. If you have a written contract with them, look at it and see if it is addressed. If not, they can t...

Tax Law (Questions About Taxes): payroll taxes for sub-s, social security tax, sole proprietor
social security tax, sole proprietor, payroll taxes: Your accountant is not on target with his recommendation. Doing business as a sub-S is possibly better than being a sole proprietor which is the worst way to do business, but it is not the Best not even good . If you ask him about doing business as...

Tax Law (Questions About Taxes): payroll taxes, state unemployment compensation, www irs gov
state unemployment compensation, www irs gov, state income tax: Michele, Thanks for your question. You need to file late returns for that period of time. Just complete the returns and send them in to the IRS as a batch. They will bill you for penalties and interest. You may be able to negotiate the penalties,...

Tax Law (Questions About Taxes): payroll, sole proprietor, payroll taxes
sole proprietor, payroll taxes, executive benefits: The IRS has deemed the LLC to be a Disregarded Entity . That means for tax purposes, you are a sole proprietor, and have no tax advantage. You will be required to pay all the income and payroll taxes on all the money that make in that business. If you...

Tax Law (Questions About Taxes): pERSONAL FURNITURE A WRITE OFF?, new furniture, charitable foundation
new furniture, charitable foundation, charitable organization: Dear Daniela, Personal furniture that you buy for a NEW HOUSE or any house is NOT a write off... It is purely for personal use.... However, if you ever decide to DONATE this furniture to the Goodwill or another charitable foundation, then you can deduct...

Tax Law (Questions About Taxes): pell grant work study program, jesup ga, stancil
jesup ga, stancil, pell grant: Lisa, Thanks for your question. Since you are performing services for the funds, it is taxable income to you. The College should give you a W-2 that you will need to include with your return when you file. Hope this helps. John Stancil, CPA...

Tax Law (Questions About Taxes): Will I be penalized for my company not withholding taxes?, job acceptance letter, dod contractor
job acceptance letter, dod contractor, payroll taxes: Mark, Thanks for your question. Most likely, yes. If you owe less than $1,000, if you paid in an amount equal to your 2005 tax liability, or if you paid in 90 of your tax liability, there will be no penalty. Otherwise, you will owe a penalty. You...

Tax Law (Questions About Taxes): how will pending marriage affect ability to sell 2 primary residences tax free?, capital gains tax, home hope
capital gains tax, home hope, stancil: Casey, Thanks for your question. You meet the ownership and use requriements for selling your home and excluding the gain. The same holds true for your fiance. Each of you can sell your respective homes in 2006 and each exclude up to $250,000 of gain....

Tax Law (Questions About Taxes): pension distribution, lump sum distribution, rollover ira
lump sum distribution, rollover ira, pension distribution: Hi Mark, It s better to make a custodian to custodian rollover. That way no tax will be withheld. If you take the money and then reinvest it in a rollover IRA within 60 days, there will be no tax or penalty BUT most likely there will be Federal tax...

Tax Law (Questions About Taxes): pension fund deductions, federal governments, wife works
federal governments, wife works, irish company: Bert: If your wife is working in New York for a company that is domesticated in Ireland but has an office in New York then the company is already reporting the correct information to the city, state and federal governments which includes the pension plan....

Tax Law (Questions About Taxes): pension plan, money market account, family considerations
money market account, family considerations, retirement home: Jessica, Thanks for your question. Yes, you will pay taxes on the $44,000 if not rolled over into a qualified retirement plan, such as an IRA. Since you are receiving the payment directly, 20% will be withheld. This amount can be taken as a credit...

Tax Law (Questions About Taxes): pension, ira withdrawals, adjusted gross income
ira withdrawals, adjusted gross income, ira account: Hi, You are required to file a tax return if your gross income (excluding social security) exceeds the total of your standard deduction and your personal exemption. In 2003 your standard deduction (assuming you are single) was $5,900 ($4,750 plus $1,150...

Tax Law (Questions About Taxes): pensions soc sec, social security benefits, tax booklets
social security benefits, tax booklets, 1099r: Hi, The taxable amount of pensions is generally included on the 1099R sent you by the custodian of the pension plan. The taxable amount of social security is determined by filling out a worksheet which is included in tax booklets sent out by the IRS....

Tax Law (Questions About Taxes): perdiem overage, per diem, taxable income
per diem, taxable income, tax rate: Mark, The amounts not used for lodging and meals while away from home are considered taxable income. Excess per diem doesn t receive any special tax treatment. The excess is taxed as ordinary income as what your tax rate will be. Regards, Neil Johnson...

Tax Law (Questions About Taxes): perdium, trip miles, perdiem
trip miles, perdiem, per diem: Let s use numbers. Your pay is $100, your perdiem is $25. So your total check is $125, then they pull out the $25, tax the $100 - making it a pretend $80, then add back the $25 for a total check of $105. Is that correct? If it is, they are saving you...

Tax Law (Questions About Taxes): What is "peripheral equipment", peripheral equipment, computer package
peripheral equipment, computer package, seperately: You are correct. Peripheral equipment are the items used to operate the computer(etc) that are generally not listed as a seperately stated item. These can include cables, modems, scanners, printers, etc that are included in the package deal of a computer...

Tax Law (Questions About Taxes): -------------------------..., rental subsidy, disability income
rental subsidy, disability income, government benefit: Dear Yom, YES, $12k is too much for her to earn and still be classified as a dependent unless she would meet other qualifications and with out knowing all of HER family income and situation and her age etc and her school enrollment etc, etc, etc I can t help...

Tax Law (Questions About Taxes): i got permission from a friend..., rental subsidy, disability income
rental subsidy, disability income, advi: Yom: I can not answer this question. A horrible violation of the US tax law has taken place. When detected, you and your friend will be in serious trouble. I will be in serious trouble if I give any advice to continue this scheme. I hope for your sake...

Tax Law (Questions About Taxes): i got permission from a friend..., rental subsidy, social security number
rental subsidy, social security number, disability income: Yom, What you are doing is illegal. You cannot work using the social security number of another. This can result in fines and penalties. As a CPA who must uphold ethical standards, the only advice I can give you is to undo this fraud and report the...

Tax Law (Questions About Taxes): persoal loss carryover, loss carryover, business loss
loss carryover, business loss, personal loss: If you are talking about a Net Operating Loss, which would be a business loss with some adjustments, you can carry the loss back two years and apply it to prior income or you can elect to carry it forward to next and future years. You must file your return...

Tax Law (Questions About Taxes): Same person EE and 1099, self employment taxes, independent test
self employment taxes, independent test, tax advantage: Well, the 1099 by design is an audit flag. If the person was truly independent, that means had full rights to determine how to do the job, or even the right to hire someone else to do the job, and you didn t provide any training, or tools, or the place...

Tax Law (Questions About Taxes): personal bussiness writeoffs., form 4562 instructions, www irs gov
form 4562 instructions, www irs gov, art and crafts: Dear Nathan, These are called expenses, not writeoffs... Tools, machinery, etc must be depreciated for 7 years and you can take the depreceiation each year as an expenses or you can section 179 the items and take it in the first year it is in service. ...

Tax Law (Questions About Taxes): personal funds loaned to corp. considered taxable income?, equity investments, ownership shares
equity investments, ownership shares, small construction: Gale, I read where you manage the corporation and jumped to the conclusion that you were an owner. I apologize. If you do not own stock, and if no stock ownership in the company can be attributed to you under the attribution rules of the code, it...

Tax Law (Questions About Taxes): personal income tax, irs publication 54, personal income tax
irs publication 54, personal income tax, foreign earned income: Sheila, The problem is that if they find you first, they are less likely to be accommodating. Since you never made $80,000 it might be a good idea to contact them, explain the situation, and ask what you need to do. Be prepared to prove your income was...

Tax Law (Questions About Taxes): personal income taxes for an overseas worker, self employment income, personal income taxes
self employment income, personal income taxes, american citizenship: Joy, Thanks for your question. Presuming that you are retaining your American citizenship and filing the good old 1040, I know of no reason why you would be exempt from self-employment taxes if your income is consideed self-employment income. John...

Tax Law (Questions About Taxes): personal income taxes, personal income taxes, personal property taxes
personal income taxes, personal property taxes, state income taxes: Wanda, Thanks for your question. In the area of deducting taxes, you have a choice. You can deduct state income taxes or you can deduct sales taxes. If you choose to deduct sales taxes, you can add the tax paid on a car, motorcycle, or boat to the...

Tax Law (Questions About Taxes): personal loan to my s corp, irs rate, www irs gov
irs rate, www irs gov, s corp: Greg, Thanks for your question. You can pay yourself back whenever you choose. A safe rate to use for interest is the current IRS rate which can be located on at www.irs.gov. Anyyhing close to market would be sufficient, however. Hope this helps....

Tax Law (Questions About Taxes): personal and misc. income question, adjusted gross income, unreimbursed expenses
adjusted gross income, unreimbursed expenses, itemized deduction: Hi Bob, If you and your wife file jointly you can t file another return separate from your joint return. I don t know what you want to achieve but if, for example, your business expenses for that vehicle are more than the amount the company gives you,...

Tax Law (Questions About Taxes): personal residence exclusion, planting trees, current capital
planting trees, current capital, stancil: Scott, Thanks for your question. As long as you have treated the entire parcel as your home you can take the exclusion on the entire 66 acres. You realize, however, that the exclusion is limited to $500,000 of gain if married filing jointly, otherwise...

Tax Law (Questions About Taxes): personal residence - sale - tax implications, short term capital gain, long term capital gain
short term capital gain, long term capital gain, involuntary conversions: Hi Patrick, Unless you meet one of the criteria for excluding a part of your gain, you will be subject to taxation on a short term capital gain - in other words ordinary income tax. Investment in another home is no longer a way to postpone taxation of...

Tax Law (Questions About Taxes): personal residence tax, partial exclusion, expensive place
partial exclusion, expensive place, personal residence: To qualify for a partial exclusion of the capital gain, the move must be work related(change of job location, etc) or medically related(Dr says no more stairs, etc). The deferred gain into another home is no longer current law. You can exclude gain no...

Tax Law (Questions About Taxes): personal residense, residense, harland
residense, harland, tax filing: This is the perfect example of how tax planning could have saved you a lot of money. Had you asked me about 5 years ago, I would have told you to make sure your car was registered in AZ, you file your taxes from your AZ home, you vote in AZ, the bills end...

Tax Law (Questions About Taxes): personal tax allowances questions, personal tax allowances, sailing company
personal tax allowances, sailing company, meal allowances: Dear Ronan, If you claim less exemptions than the 2 you are claiming, they will take out MORE in taxes on each pay check and if you continue to have the extra $70 taken each pay check you MAY get back more... You have to remember that the congress can change...

Tax Law (Questions About Taxes): personal taxes, beneficial manner, tax areas
beneficial manner, tax areas, stancil: Jeanne, Thanks for your question. No, you cannot deduct anything. As the owner of the corporation and the owner of the home, you do not have an arm s length transaction since no rent was paid. In getting into the issue of renting a portion of your...

Tax Law (Questions About Taxes): personal taxes, stancil, back taxes
stancil, back taxes, cpa: Timmy, Thanks for your question. The CPA should pay the penalty. However, they should not pay the back taxes as you would have owed those anyway. Also, you should pay the interest as you had use of the money. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): personal taxes, state tax return, nj state tax return
state tax return, nj state tax return, state return: Dear Dee, You will file a MA state tax return as a non-resident and show the income earned in MA and if you overpaid MA taxes you will get that in a refund.... Then you will also file a NJ state tax return, BUT you will show the MA wages as NON-Taxable...

Tax Law (Questions About Taxes): personal vehicle, adjusted gross income, miscellaneous itemized deductions
adjusted gross income, miscellaneous itemized deductions, contemporaneous records: Brent, You could deduct the difference between the cost of the work related expense and reimbursement received from your employer. If you use your truck for both business and personal purposes, you must divide your expenses between business and personal...

Tax Law (Questions About Taxes): personal vehicle used strickley for business, mileage deduction, rules of professional conduct
mileage deduction, rules of professional conduct, mileage allowance: Hi Susan: Thanks for your question. The mileage allowance has figured into it the depreciation of the vehicle, so there isn t any additional expenses that you can take. However, you should be keeping a record of your actual expenses (including Depreciation)...

Tax Law (Questions About Taxes): personal write-offs, cost basis, tax return
cost basis, tax return, receipts: Dear Damon, NO.... You can not take a deduction for your own labor and the materials you need to keep receipts for since you can ONLY add the cost of these repairs to the cost basis of the house when you finish it and sell it... There are no personal write-off...

Tax Law (Questions About Taxes): planning for deductibility of Health insurance, excess earnings, s corp
excess earnings, s corp, schedule c: Hi Alan Thanks for the question. You might try having your client create a s-corp and have the insurance paid through that It really depends on how much money in social security and income from the business we are talking about. But run the numbers...

Tax Law (Questions About Taxes): planning on seeling a piece of land, cabana boy, realtor commission
cabana boy, realtor commission, strong drinks: It s true. If you wait a year and a day after buying it, it is a long term gain and only taxed at 15% (federally). Closing costs and commissions are cost of sale and deducted from the sales price. And right now, if it is beach front (and a really nice...

Tax Law (Questions About Taxes): please explain term "write off" in detail, accounting term, salvation army
accounting term, salvation army, charitable deduction: Simon: write off is not an accounting term in use it is an otherwise general statement. Correctly used you may donate used clothing to a qualified charity. To obtain the value of the used clothing at the time you donate them get a receipt of the value...

Tax Law (Questions About Taxes): pools and property taxes, question property, ground pool
question property, ground pool, local issue: Nick, Thanks for your question. Property taxes are strictly a local issue, so I really cannot answer your question. However, most municipalities do not consider an above ground pool as real property so it would not afffct your property taxes if this...

Tax Law (Questions About Taxes): how can poperty be tax defered, adjusted gross income, personal residence
adjusted gross income, personal residence, tax situation: Hi Terrence Thanks for the question: If you give the house to the church, you will receive a tax deduction equal to the fair value of the house, less any debt that the church assumes. The amount of deduction you can take is equal to 30% of your adjusted...

Tax Law (Questions About Taxes): pre construction condo, capital losses, pre construction
capital losses, pre construction, tax time: Lou Ann, The loss would be considered a capital loss. Capital losses can be used to offset capital gains. If your capital losses exceed capital gains this year, you will be limited to a $3,000 capital loss on your tax return. The losses in excess of...

Tax Law (Questions About Taxes): pre-construction taxes, good faith estimate, pre construction
good faith estimate, pre construction, sales person: Hi Bridgette, That sounds about right to me but I don t know what the tax rates are in your area. Often the pre-construction tax rates are only a fraction of what they will be when everything is completed because they re only taxing the value of the land...

Tax Law (Questions About Taxes): prep for 2001, 1099misc, rate reduction credit
1099misc, rate reduction credit, head of household: You have used standard deduction on your return. Gambling losses are deductible only on Schedule A. This may change your return considerably. There are several issues with your return as it stands. Usually a 1099MISC will be listed elsewhere on your...

Tax Law (Questions About Taxes): prepaprer to clint questions, itemized deductions, dependents
itemized deductions, dependents, marital status: Hi Terry, There is no one set of questions for all clients. Basically you want to know their marital status, dependents, type of income and possible itemized deductions. From there it varies depending upon the client s situation. No one-size-fits-all....

Tax Law (Questions About Taxes): preparing for taxes..., federal income taxes, form 1040 es
federal income taxes, form 1040 es, self employment taxes: Will, Thanks for your question. The amount to set aside depends on your total level of income, but 15.3% for self-employment taxes plus 15 -25% for federal income taxes should be sufficient. In addition, you should probably set aside 5% or so for state...

Tax Law (Questions About Taxes): prepayment charge, prepayment charge, interest points
prepayment charge, interest points, capital gain: Dear Ferd, ONLY if it is interest, POINTS or taxes.... Anything else is simply added to the basis price of the house so if and/or when you sell the home, it will increase the basis of what you have in the house and help reduce the capital gain... Thank...

Tax Law (Questions About Taxes): i was a primary care-giver..., irs gov, head of household
irs gov, head of household, dear linda: Dear Linda, Primary care-giver does not necessarily mean that you paid MORE than 50% of her support.... Inorder to determine if you can claim her as a dependent, you will have to go to www.irs.gov click on forms and publications and then click on publications...

Tax Law (Questions About Taxes): primary residence capital gain exemption, lock stock and barrel, gain exemption
lock stock and barrel, gain exemption, personal residence: Unless you voted where your lake home was, had all your mail forwarded there, had the address of your car registration listed as the vacation home, etc, those months do not count. You need 2 years of living there and using it as your personal residence...

Tax Law (Questions About Taxes): primary residence exemption capital gains, tax bracket, capital gains
tax bracket, capital gains, depreciation: Linda, you have a couple of issues and you probably will like MOST of the answers. First of all, you can sell your home on the installment sale, but when you do your taxes, you want to elect out of the installment sale so that you can take the full exclusion....

Tax Law (Questions About Taxes): primary residence owned by revocable trust, revocable trusts, irs
revocable trusts, irs, assets: Hi, Generally the IRS disregards revocable trusts because they are revocable. Your sale will be treated as a sale by individuals and assuming your meet the 2 year ownership and use requirements you can exclude $500,000 of gain if you file jointly. Regards,...

Tax Law (Questions About Taxes): primary residence/rental property, temporary absence, principal residence
temporary absence, principal residence, california residents: Hello, Here is the rule. Gain may only be excluded if during the 5 year period ending on the date of sale . The property was used for 2 years as the principal residence.Could meet the 2 year requirement in nonconcurrent periods. Short temporary absences...

Tax Law (Questions About Taxes): primary residence rental, stancil, buying a house
stancil, buying a house, roommates: David, Thanks for your question. Yes, the money is taxable. It makes no difference if they pay the utilities that would also be taxable. Report the income on Schedule E, along with any allowed deductions. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): private stock "cram down", cram down, private stock
cram down, private stock, stancil: Derald, Thanks for your question. There are only two ways in which you can take a loss on the stock. The first is by selling the shares. The only other way is for the stock to be declared worthless and write off the entire investment. However, if...

Tax Law (Questions About Taxes): problem with accountant & 2003 returns, phone mail, anne connolly
phone mail, anne connolly, proof of delivery: The H&R Block Premium Office is located at 1071-73 Main Street, River Edge, NJ 07661 and their phone number is 201-342-8072. The closest office is open by appointment only. It is located at Shop Rite Plaza, 457 Old Hook Road, Emerson, NJ 07630. Their...

Tax Law (Questions About Taxes): professional baseball player, professional baseball player, employee business expenses
professional baseball player, employee business expenses, 1099 misc: Bill, Thanks for your question. He is not self-employed, so he would not file a Schedule C. I am not familiar with Form 2109, perhaps you mean 2106, which is for employee business expenses? I would need to know more about the situation, but probably...

Tax Law (Questions About Taxes): For-profit school at our church, preschool daycare, unrelated business taxable income
preschool daycare, unrelated business taxable income, profit school: Marilyn, It would not directly affect your not-for-profit status but the rental income would be considered unrelated business taxable income. If over $1,000 it should be reported and tax paid on that amount. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): profit sharing withdrawl to 529 plan, hca healthcare, qualified education expenses
hca healthcare, qualified education expenses, stancil: Jim, Thanks for your question. First, one clarification. They will be withholding 20% for income taxes. The actual amount of taxes to be paid on this depends on your total taxable income. The rate can be between 10 and 35%. With a 76,000 withdrawal...

Tax Law (Questions About Taxes): No proof of purchase for resaleable items, several thousand dollars, initial purchase
several thousand dollars, initial purchase, legitimate business: Karen sorry it took so long but I had computer problems You should try to pay by check if not accepted just keep a meticoulus diary showing all the detail you can about your purchase do not worry as the IRS will accept your basis if you made a reasonable...

Tax Law (Questions About Taxes): property donation to my church, capital gains tax, workable plan
capital gains tax, workable plan, maximum benefit: Janet, Thanks for your question. That sounds like a plan that would work. However, before completing the deal, you should consult with a tax professional to make certain that it is properly handled so that you can get the maximum benefit from this move....

Tax Law (Questions About Taxes): property sale, e mail address, tax software program
e mail address, tax software program, dear kelly: Dear Kelly, Every tax software program or on-line tax company is fully equiped to handle this.... All you have to do is make sure you have all the information you need inorder to complete that section.... Sale of home falls under either other income or...

Tax Law (Questions About Taxes): property sale (partial) 1099-S, local realtor, capital improvements
local realtor, capital improvements, adjusted basis: Hi, I know it s tough to establish a value of land when you bought it with a home. But your county tax assessor or a local realtor may be able to help determine what an acre of land in your area was selling for at that time. Good luck! Regards, Carol...

Tax Law (Questions About Taxes): property sale, residence in canada, residential property
residence in canada, residential property, proceeds: Hi Eugene, There is no longer a provision in the law to defer tax on the sale of a main home by investing in another main home. Under current law, if you own and live in your home as your main home for 2 years during the 5 years preceeding the date of...

Tax Law (Questions About Taxes): property tax deduction, property tax deduction, income beneficiary
property tax deduction, income beneficiary, living trusts: If the title has more than one owner, any owner is usually fully responsible for the taxes, so the one who pays could take the deduction. If the trust paid the tax, the loss could be transferred to the beneficiary of the trust. John Stancil, CP...

Tax Law (Questions About Taxes): property tax question, irs gov, capital gains tax
irs gov, capital gains tax, publication 523: Dear John, The current tax law for sale of primary residence has nothing to go with putting the gain towards another purchase as it did 8 years ago.... The current law is that you must live in the house as your primary house for 2 of the past 5 years as...

Tax Law (Questions About Taxes): property tax question, capital gains tax, profits tax
capital gains tax, profits tax, exchange agent: if you mean less than 2 years you would be required to pay capital gains however if you kept your residence for more than two years your first $250,000 gain would not be subject to tax. you can not use the profits tax free but you could avoid the tax by...

Tax Law (Questions About Taxes): property taxes, leap year, stancil
leap year, stancil, proration: Henry, Thanks for your question. Very simply, property tax is paid based on the portion of the year the home is owned. If the house is sold on Febaraury 1 (not a leap year) the seller owned the house for 31 days so his share of the taxes is 31/365 x...

Tax Law (Questions About Taxes): property taxes and mortgage interest, stancil, mortgage interest
stancil, mortgage interest, contracter: Chris, Thanks for your question. The taxes and interest should be divided based on legal liability. If you both own the home and are equally liable for the expenses, you should allocate the amounts 50-50. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): property taxes, stancil, property taxes
stancil, property taxes, cpa: Karla, Thanks for your question. You are only allowed to deduct the property taxes that you actually paid and were legally liable for. Since you were reimbursed for the $2,000, that amount is not deductible to you. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): property, cost basis, peice
cost basis, peice, 3 years: Your cost basis is whatever your parents paid for the property and you know what you sold it for. The difference is your taxable amount. That is what you will pay taxes on, up to 15% for federal. But you have another issue and that is gift tax. You will...

Tax Law (Questions About Taxes): public accounting, internal revenue bulletins, irs publications
internal revenue bulletins, irs publications, depreciation schedules: Hi Paul welcome to the profession If you end up in the tax department it will consist of reviewing or preparing depreciation schedules I would suggest that you visit the IRS site WWW.irs.ustreas.gov (see IRS publications on the subject)( or imputing tax...

Tax Law (Questions About Taxes): purchase of easement, severance damages, home hope
severance damages, home hope, steve thanks: Steve, Thanks for your question. Show this on Schedule D as you have proposed but show the $1,500 and the $3,500 separately. The $3,500 is technically known as severance damages. You can reduce the basis of your property by this amount, so you will...

Tax Law (Questions About Taxes): purchase new computers (exp or asset), sec 179, software purchases
sec 179, software purchases, stancil: Jim, Thanks for your question. All of the costs should be capitalized. However, if the company did not purchase in excess of $500,000 of qualifying personal tangible property during the year, you can take a Sec 179 deduction for the entire amount. ...

Tax Law (Questions About Taxes): purchasing home, stepped up basis, elderly mother
stepped up basis, elderly mother, mortgage payment: I do not have enough facts but my inclination would be for you to buy it together with your mother . The IRS does not look kindly at family transactions and should you want to sell at least your mother s half would not be subject to capital gains and also...

Tax Law (Questions About Taxes): purchasing rental house, mortgage payments, rental house
mortgage payments, rental house, tax professional: Hi, If you are treating it as rental property you report your income and expenses on Schedule E. One of your expenses is depreciation of the building (not the land). Your basis for depreciation is what you paid for the building. It is depreciated over...

Tax Law (Questions About Taxes): Q, tax law changes, knowledgable friend
tax law changes, knowledgable friend, scheudle: Dear Tim, There is no way that this can be done except for her either issuing YOU a 1098 or other official document the IRS will accept.... Also, incase you have not heard, there are proposed tax law changes that, if passed by the congress and senate that...

Tax Law (Questions About Taxes): Qualified Benefits for Owners/Shareholders, irs pub, collective bargaining agreement
irs pub, collective bargaining agreement, fringe benefit: an S corp is good for you but you need to apply before March 15 or 75 ays after your corp is established C corps also have non discriminatory rules Since the employees will be you wifes it does not seem that you will be discriminatory when you set up the...

Tax Law (Questions About Taxes): Qualified dividends, qualified dividends, form 1040 schedule b
qualified dividends, form 1040 schedule b, forward loss: Dear Fred, If you received form 1099-DIV, then this income MUST be reported on form 1040-schedule-B if it is $1500.00 or more.... If less than $1500.00, then it MUST be reported on form 1040 line 9a.... It can NOT be reported on the 1040-schedule-D........

Tax Law (Questions About Taxes): Qualified educational expenses, irs website, educational expenses
irs website, educational expenses, rickshaw: Sorry Dad, but there are no commuting or travel expenses allowed your daughter. Just her tuition is the only thing that you can use for the educational deductions. But if you can get her to ride a bike rickshaw to school, I ll toss in 10 bucks to her pocket!...

Tax Law (Questions About Taxes): Qualified medical expense, home standby generator, mechanical ventilation
home standby generator, mechanical ventilation, medical deduction: Hi Joe, I agree with you on number 1 meeting the requirements for a medical deduction. Having something in writing from your doctor would help for backup in case there is a question. I believe that installing a standby generator would increase the...

Tax Law (Questions About Taxes): Qualifing Relative, dependency exemption, custodial parent
dependency exemption, custodial parent, stancil: Eric, Thanks for your question. Since you provided over 50% of their support and I presume neither one had gross income of $3,300 or more, the important question is When did she move in with you? In order to claim a dependency exemption for a...

Tax Law (Questions About Taxes): Qualify dependent - student resident, dependent student, special circumstances
dependent student, special circumstances, school vacation: Hi, He would need to have lived with you all year to qualify as your dependent. Temporary absences for special circumstances, such as for school, vacation, medical care or military services count as time lived with the taxpayer. Regards, Carole ...

Tax Law (Questions About Taxes): Qualify for E-filing, chapter 13 bankruptcy, bankruptcy law
chapter 13 bankruptcy, bankruptcy law, e filing: Lori, Thanks for your question. The fact that you are in bankruptcy should not affect your ability to use e-file. I can t answer the part about having to go through the attorney, as this relates to bankruptcy law and I cannot render legal advice...

Tax Law (Questions About Taxes): Would I Qualify for head of household?, head of household, fiancee
head of household, fiancee, stephanie: Hi Stephanie, Since you and your fiancee are not related you cannot file as Head of Household. If he lived with you all year and you paid more than half of his support he may qualify as your dependent. He must have had less than $3,100 of income last...

Tax Law (Questions About Taxes): Qualifying Child rule: temporary absences, temporary absence, exact situation
temporary absence, exact situation, permanent residence: As a Mom that was in the same exact situation, her apartment is temporary and she is still considered your dependent as long as she is in college full time. It is the same as a dorm, with more parental worries, that trust me, are unfounded. :) Helen,...

Tax Law (Questions About Taxes): Qualifying child/dependent..., additional child tax credit, child tax credit
additional child tax credit, child tax credit, dependent exemption: Mark, Thanks for your question. First I would point out to you that the additional child tax credit is primarily for situations in which there are more than 2 children. It is available if you have 1 or 2 children and are unable to use the full child...

Tax Law (Questions About Taxes): Qualifying Dependent, social security disability, irs pub
social security disability, irs pub, disability payments: Dear Jim, My concern was that the father of this child was going to claim her and if he did and you did, then of course you would be audited or he would be audited or both inorder to prove why you claimed this child.... You do qualify.... You have to be...

Tax Law (Questions About Taxes): Quarterly Estimated Tax Payments, federal tax liability, estimated tax payments
federal tax liability, estimated tax payments, underpayment penalty: Sorry Charles, sometimes I just talk tax and think I should be understood, my fault and a bad habit. Withheld ratably means that even if your entire year s withholding is done at the last check of the year, the IRS says it has been withheld all year long...

Tax Law (Questions About Taxes): Quarterly Payment, self employment tax, quarterly payment
self employment tax, quarterly payment, remenber: You are only subject to estimatedd taxes when your business has taxable income you would file a 1040ES quarterly remenber to add about 8% of your income for the self employment tax. Good luck in your new enterprise. Ps if your business expands you...

Tax Law (Questions About Taxes): Quarterly Payroll deductions, paycheck deductions, quarterly payroll
paycheck deductions, quarterly payroll, state payroll: Yes but your byweekly cash draws should be considered an advance. but why are you paying yourself payroll since you have no emoloyees and file schedule c What you could do is pay estimated taxes quarterly and eliminate the payrol paper work ( I doubt...

Tax Law (Questions About Taxes): Quarterly Taxes, payroll taxes, quarter thanks
payroll taxes, quarter thanks, stancil: Jerra, Thanks for your question. You should complete one for each quarter. You should have been making deposits of the estimated payroll taxes on a weekly, monthly or other basis depending on the amount of tax. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Quarterly Taxes, www irs gov, irs website
www irs gov, irs website, form 1040 es: Liz, Thanks for your question. You need to estimate your personal tax liability, since this is an S Corp. The best way to do this is to complete the worksheet that accompanies Form 1040-ES. You can find this on the IRS website, www.irs.gov. The problem...

Tax Law (Questions About Taxes): Quarterly taxes, quarterly tax, quarterly payment
quarterly tax, quarterly payment, jan mar: You need not file your quarterly tax payment for 1/15/05(for 2004 income) if you will file your return and pay any balance due by that date. If you will file your 2004 return later, make the estimated payment if you will have a balance due of 1500 or more....

Tax Law (Questions About Taxes): Question, stancil, vacation pay
stancil, vacation pay, vacation time: Sammie, Thanks for your question. Either way, the taxes would be the same. However, taking 3 days of vacation pay at once could result in having a higher amount withheld. Of course, if more is withheld, that means a larger refund when you file. ...

Tax Law (Questions About Taxes): Question about 1099-misc, web design business, sole proprietor
web design business, sole proprietor, 1099 misc: Mr Epand: When you add up your 1099 and your other sales which is your gross sales for the year put it on schedule c that is what you offset your expense to determine if you have a profit or loss for the year. You do not have to send a 1099 or receive...

Tax Law (Questions About Taxes): Question about 1099-misc, web design business, sole proprietor
web design business, sole proprietor, 1099 misc: Just report the income that was not 1099 reported on line 1 of Schedule C. They do not have to file a 1099 if they paid you less than $600. Clients outside the US do not have to file 1099 s. Even if they paid you over $600, you report the income and don...

Tax Law (Questions About Taxes): Question, vacation days, vacation time
vacation days, vacation time, income tax: It will cost you an additional 2 in withheld tax if you take 3 days in 1 week. There will be no change in your income tax amount at all. With such a small difference, I suggest you go with your own convenience rather than a difference in the money amount...

Tax Law (Questions About Taxes): Question, standard oil company, citrus producers
standard oil company, citrus producers, potato farmers: In no way shape or form. A monopoly would only exist if you had the corner on a specific industry and could unfairly force competitors out of business, not merely a player in a lot of industries. You are effectively intending to create a co-op. Where a...

Tax Law (Questions About Taxes): Question, ebay sales, stancil
ebay sales, stancil, schedule c: Mitch, Thanks for your question. First, filing a Schedule C may increase the chances of an audit, but I would not say it triples them. Most likely the items you sold on eBay were sold for less than you paid for them, so you do not have to report those...

Tax Law (Questions About Taxes): Question about Charities..., form 1040ez, charitable donations
form 1040ez, charitable donations, standard deduction: Dear Brad, First of all you do NOT get a return on your charitable donations... You would have to itemize deductions inorder to do that and your itemized deductions I m sure are not more than the standard deduction for a single filer... If you are not...

Tax Law (Questions About Taxes): Question about Duplexes, mortgage income, rental expenses
mortgage income, rental expenses, mortgage note: Wen, Half of the duplex would be considered a personal residence and the other half rental property. The mortgage interest and real estate taxes would be split equally between the two. The residential portion would be deductible on Schedule A as itemized...

Tax Law (Questions About Taxes): Question on IRS letter, irs letter, 1099b
irs letter, 1099b, etrade: Srinim, Thanks for your question. If Etrade withheld taxes, that is not the tax liability. That is simply taxes withheld, just like taxes are withheld from your regular paycheck. The proceeds and cost of those trades, along with the withheld taxes...

Tax Law (Questions About Taxes): Question about purchasing back stock, capitol investment, stock results
capitol investment, stock results, treasury stock: the purchase of the stock results in treasury stock or upu may cancel it ha no tax consequences When you issued the stock you could have had a deduction by specifing the services rendered however you would have had to put the amount on the employees W2....

Tax Law (Questions About Taxes): Question Regarding Home sales, long term capital gain, rough calculation
long term capital gain, rough calculation, maximum gain: Hi, Because your move was for employment reasons, you are entitled to a reduced exclusion of gain. If you are single the maximum gain that can be excluded is $250,000. The reduced exclusion is calculated by comparing the number of days you actually owned...

Tax Law (Questions About Taxes): Question Regarding Solo 401K, retirement benefit, retirement plan
retirement benefit, retirement plan, quick reply: AS the name implies the solo/individual 401k is related to you personally. Either entity could contribute. HOWEVER, a 401k, or any other tax deferred plan gives you no real tax advantage, except for employer contributions, which if you were working for...

Tax Law (Questions About Taxes): Question re: purchase price of a business, irs gov forms, www irs gov
irs gov forms, www irs gov, school counselor: Dear Bob, You can only take the amount of this $27,000.00 that is for the building.... So, for example, if the purchase price was $27,000.00 AND this includes the land it sits on, then you must deduct the value of the land from the $27k and that will be...

Tax Law (Questions About Taxes): Question regarding Childcare write-off, foster daughter, dependency status
foster daughter, dependency status, single mom: sorry I researched your question and I have been unable to ascertain wether your stipend is income I belive that is not but if it is you should be getting a 1099 stating so. or you might contact the stipend provider PS if you get an answer would you...

Tax Law (Questions About Taxes): Question regarding Gifts, stancil, responce
stancil, responce, good deed: Scott, Thanks for your question. There is no tax deduction for wht you want to do. You should be aware that a gift of more than $11,000 to one person in a single year may require you to file a gift tax return, although no tax would probably be due....

Tax Law (Questions About Taxes): Question regarding where to report this income.., business scheme, schedule c
business scheme, schedule c, capital gain: Dear Wally, You say this is an ONLINE INVESTMENT, but it is not shares or stocks etc.... Is this investment really an online business.... What type of payments are these really called.... If this is some sort of business or business scheme, then you...

Tax Law (Questions About Taxes): Question regarding service giveaways, advertising costs, tax deduction
advertising costs, tax deduction, giveaways: There isn t any tax deduction for giveaways of services, as you would have to include the fair value of the service in revenue as well as expensing it as advertising costs. However you may want to record it to see how productive the program is. John Kirk,...

Tax Law (Questions About Taxes): Question about Schedule C, macrs depreciation tables, web design business
macrs depreciation tables, web design business, sole proprietor: Victor, Thanks for your question. Your computer hardware and software should be treated as capital assets and depreciated over their useful lives based on the IRS MACRS depreciation tables. As a web design business, you have no inventory, everything...

Tax Law (Questions About Taxes): Question about tax lien., federal tax lien, irs lien
federal tax lien, irs lien, good luck: Kim it seems that to get a lien removed is a lot harder than getting one. I suggest you write to the credit report provider with a CC to the IRS attach a copy of the IRS lien satisfaction notice and be persistent. good luck to you. pS liens shuld beremoved...

Tax Law (Questions About Taxes): Question about tax return, child care expenses, long term capital gain
child care expenses, long term capital gain, child care credit: Helen, Thanks for your question. 1. Report this on Schedule D as a short or long term capital gain. 2. This is an investment expense, deductible as a miscellaneous itemized deduction subject to the 2% limitation. 3. Expenses for kindergaraten may...

Tax Law (Questions About Taxes): Question on taxes doing business over the internet, self employment tax, raymond maine
self employment tax, raymond maine, ebay: You really don t need to get a tax ID unless you intend to hire employees or operate the business as a corporation or other entity. Definitely check on the sales tax permit - you can use it to buy tax free from your suppliers. You may also want to check into...

Tax Law (Questions About Taxes): Question about taxes and selling internationally in ebay, irs publication 587, federal tax purposes
irs publication 587, federal tax purposes, ebay business: Yes you do own a business. In the eyes of the IRS, you have a business and must file the Schedule C. Your ID number for federal tax purposes can be your social security number as long as you do not have employees. You cannot deduct your mortgage payments...

Tax Law (Questions About Taxes): Question, higher tax bracket, income tax return
higher tax bracket, income tax return, payroll office: Hi Sammie, Your tax liability when you file your income tax return will not change whether you put all 3 days in one week or one day a week for 3 weeks. However it s possible that adding 3 days to one week will push that week s total into a higher tax...

Tax Law (Questions About Taxes): Questions about 1098 T and other stuff, hope scholarship credit, 1098t
hope scholarship credit, 1098t, lifetime learning credit: Confused, Thanks for your question. One suggestion. You might check to see if there are any VITA sites in your area. This is an organization, sponsored by the IRS, that prepares income taxes at no charge by volunteers. In addition, most sites will e-file...

Tax Law (Questions About Taxes): Questions related to business structure etc, self employeed, business entities
self employeed, business entities, c corp: 1. yes, no. 2. yes, no. 3. All of the MOST successful large, medium, and small businesses are real corporations. They have lower taxes, better deductions, proven liability protection, and are well understood by other businesses and investors. 4. An LLC...

Tax Law (Questions About Taxes): Questions about tax, form 1040ez, time government
form 1040ez, time government, retirement plan: if you file as a separately as a dependant of another you will have very little or no tax to pay do a form 1040EZ if you are under 25 years and a full time student you will be a dependant of Mom she may qualify for some earned income credit 2) NO 3)Sorry...

Tax Law (Questions About Taxes): Questions, child tax credit, head of household
child tax credit, head of household, paystubs: You could easily owe, it will depend how much your spouse has had withheld. The only real way to find out is do the return and see. You can use your last paystubs to get a general idea. And then make sure to change your withholding at work. Helen,...

Tax Law (Questions About Taxes): Quick Claim Deed and Capital Gains Tax, quick claim deed, section 1031 exchange
quick claim deed, section 1031 exchange, capital gains tax: Federally, his income tax is 15%, I don t know IL s rate. As for the like kind exchange, there are reverse exchanges allowed and that is about the extent of my knowledge. He needs to find someone that knows every in and out of 1031 exchanges to see...

Tax Law (Questions About Taxes): Quick Q - Thanks, rental purposes, inorder
rental purposes, inorder, auto travel: Dear Mo, Unfortunately, you can NOT deduct expenses for something that did not make you income.... Therefore, these expenses for the fallen deal can not be expensed off on the schedule-C or the schedule-E.... For future reference, this is why you always...

Tax Law (Questions About Taxes): Quit Claim Deed - Basis of property, stancil, claim deed
stancil, claim deed, hi john: Jean, Thanks for your question. Because it is considered a gift, the capital gain is based on the cost to build the house. If she had not deeded the house to you, and you inherited it, your capital gain would be based on FMV at death. Hope this helps....

Tax Law (Questions About Taxes): Quit Claim and Taxes, short term capital gain, spur of the moment
short term capital gain, spur of the moment, capital improvements: Hi, Yes it would be better to quit claim it back to her. She would qualify to exclude $250,000 of gain if she owned and lived in the home as her main home for 2 years during the 5 years preceeding the date of sale. You would not qualify to exclude any...

Tax Law (Questions About Taxes): Quit Claiom Deed Sale of Home, tax ramifications, split basis
tax ramifications, split basis, mark thanks: Since your mother inherited the house, one half of its basis is the FMV as of the date of death of your grandmother. The other half is based on the FMV when you mother died. You will most likely need to contact a realtor or appraiser to determine the value...

Tax Law (Questions About Taxes): Quit Deed - Taxes, capital gain tax, inheritance taxes
capital gain tax, inheritance taxes, capital gains taxes: Hi Ronni Thanks for the question. When you sell the property, you will be paying capital gain tax on it, so that is not an issue in your question. It would be best to have the property transferred to you either through a trust or by the estate, especially...

Tax Law (Questions About Taxes): Quitclaim Deeds and Capital Gains, capital gains on property, capital gains tax
capital gains on property, capital gains tax, quitclaim deeds: Chris, Thanks for your question. If the title to the property is conveyed to you by gift, the basis does not get stepped up. Only upon inheriting the property or purchasing it for fair market value do you get a new basis from what her current basis...

Tax Law (Questions About Taxes): Quitclaim & Taxes, cumulative lifetime, lifetime gifts
cumulative lifetime, lifetime gifts, time property: J, Thanks for your question. 1. That would constitute a gift of the value of the house. If it exceeded the annual exemption, she would have to file a gift tax return. You would receive her basis in the house. 2. The one-time exemption was repealed...

Tax Law (Questions About Taxes): Quitclaim, tax liabilities, death time
tax liabilities, death time, mortgage companies: Mortgage companies and lawyers do not know tax, at times they make up what they think you want to hear. If the folks have not used all their life and death time gifting (around a million each) they would not have to pay gift tax, just reduce the amount...

Tax Law (Questions About Taxes): qualified as dependent?, dependency exemption, charitable contribution
dependency exemption, charitable contribution, stancil: Dianne, Thanks for your question. Since she is not a US citizen or resident, you cannot take a dependency exemption for her. As you mentioned, this cannot be considered a charitable contribution, so you get no tax benefit from support his mother. ...

Tax Law (Questions About Taxes): who qualifies to claim a child, dependency exemption, divorce decree
dependency exemption, divorce decree, stancil: Laura, Thanks for your question. Normally the custodial parent has the right to take the dependency exemption and child credit. However, the IRS will honor a divorce decree or court order. So if the courts allow him to do so, the IRS will allow it....

Tax Law (Questions About Taxes): Who qualifies as a dependant?, time melissa, relationship test
time melissa, relationship test, fiance: Melissa, Your fiance will not be able to claim you or your son as a dependent on his tax return. One of the requirements to claim a dependent is passing the relationship test. Until you are married, you and your son can not be dependents on your fiance...

Tax Law (Questions About Taxes): What qualifies as a home mortgage loan?, home mortgage loan, mortgage interest
home mortgage loan, mortgage interest, stancil: Nathan, Thanks for your question. No, you cannot include the interest on the second loan as mortgage interest. One of the requirements for deductible mortgage interest is that the home is given as security for the loan. Since this is not the case,...

Tax Law (Questions About Taxes): qualifying for head of household?, adjusted gross income, head of household
adjusted gross income, head of household, qualifying for head of household: Hi, You don t qualify as Head of Household because you don t pay more than half the upkeep of the household. You can deduct shoes required for your job to the extent the cost exceeds 2% of your adjusted gross income. It s an itemized deduction on Schedule...

Tax Law (Questions About Taxes): qualifying relative, relationship test, stancil
relationship test, stancil, permanent residence: BJ, Thanks for your question. From your description, you are the only one who has the right to claim the exemption. The member of the household/relationship test requires that the qualifying relative live with you for the entire year. However, if the...

Tax Law (Questions About Taxes): quarterly estimates, high yield savings, quarterly estimates
high yield savings, quarterly estimates, interst rate: Hi Mike, Income tax is a pay as you go system. If you don t make quarterly estimated payments you run the risk of penalties. The penalties are computed at the federal interst rate applied to the underpaid amount for the number of days late. It is charged...

Tax Law (Questions About Taxes): quarterly taxes, form 1040 schedule c, self employment tax
form 1040 schedule c, self employment tax, form 1040 schedule se: Dear Josh, You are going to have to fill out form 1040-schedule-C for your wife s 1099-MISC income.... From this you will take any qualified expenses she incurrs inorder to get a NET PROFIT figure.... IF that net profit figure is $400 or more, then you...

Tax Law (Questions About Taxes): quarterly taxes, quarterly payment, income taxes
quarterly payment, income taxes, last quarter: You can certainly adjust your quarterly payment. As long as you are within reason when you file the tax return there are no penalties. Are you profitable? or is this mostly payroll and income taxes for just what you need to support your personal overhead?...

Tax Law (Questions About Taxes): quarterly taxes, self employment tax, tax form
self employment tax, tax form, w2: You need to get a quarterly estimated tax form from the IRS however if you do not want to bother the easiest way to handle is to have the employer to withold an amount equal to what she would have to pay in if you figure the tax on the 1099 will...

Tax Law (Questions About Taxes): quesions on 1099 from.Urgent!, form 1040x, trading stocks
form 1040x, trading stocks, quesions: Hi, You may have had a loss but if you don t tell the IRS (by filing a Schedule D) they only know your selling price, not what you paid for the stock. So file an amended return (form 1040X) and report the sales proceeds and what you paid for the stock...

Tax Law (Questions About Taxes): Had a question about banks and fraud..., personal bank account, legal question
personal bank account, legal question, jail time: Duane: If a person notifies the bank within in 60 days of the illegal transaction it becomes a bank problem and your account is fully restored. All the rest of you question is a legal question. I am not an attorney and can not legally answer your question....

Tax Law (Questions About Taxes): question about claming dependants., child tax credit, dependants
child tax credit, dependants, stepfather: Hi, From what you told me and assuming you paid more than half of his support, you would be entitled to his exemption. But if his stepfather has already claimed him, you would need to mail your return and wait until the IRS determines who is entitled to...

Tax Law (Questions About Taxes): question concerning daycare costs, childcare, child care
childcare, child care: Val: The one who pays the child care can take it off. Its not can we split it. The who can show that he/she paid for the childcare can deduct the amount they paid for child care if that individual qualifies to file itemize deduction form. Joh...

Tax Law (Questions About Taxes): question about deductions, www irs gov, sole proprietor
www irs gov, sole proprietor, form 1040: Dear Chris, You can take SOME of these deductions on the 1040-scheudle-A (itemized deductions)....Get the instructions for form 1040-schedule-A and it will tell you what you can deduction and the limitations of the amount... you can get all forms and...

Tax Law (Questions About Taxes): question about head of household, social security income, head of household
social security income, head of household, message thanks: Hi Lisa, Keep trying the link. Sometimes the site is very busy and it takes a few tries to get in. If you included your email address in your question I could email you directly but I don t have access to your email address on the AllExperts site. ...

Tax Law (Questions About Taxes): I have a question about a newly formed LLC, full time job, irs regulations
full time job, irs regulations, service corp of retired executives: D, To fully answer your question would require much more than is appropriate in this forum. An LLC provides no tax advantages over other forms of organization. Under IRS regulations, an LLC is taxed as partnerhship or proprietorship (if only one owner)...

Tax Law (Questions About Taxes): question regarding claiming a child on income taxes, morals and ethics, relationship tests
morals and ethics, relationship tests, dependency exemption: Louise, Thanks for your question. The relevant factors that must be met to claim the dependency exemption for her are: 1. She must have lived in the household for over half the year. 2. Over half her support must have been provided by the person...

Tax Law (Questions About Taxes): question on taxes, medicare withholding, dependents
medicare withholding, dependents, federal tax: Benjamin your employer is deducting correctly the Federal tax on $30,000 is about $600,your state is the best it has no Income tax however soc sec and medicare Withholding should be about $2100 But if you qualify for the Earned income Credit your employer...

Tax Law (Questions About Taxes): question on taxes for options trading, charles schwab, sole proprietor
charles schwab, sole proprietor, trader status: Not wanting professional trader status is a good thing. however you are in business and since you are doing that business as a sole proprietor, you will have to file business taxes on your 1040 schedule. Richard Fritzler www.owelesstax.com phone 800...

Tax Law (Questions About Taxes): question, head of household, stancil
head of household, stancil, single father: David, Thanks for your question. Head of household is a preferred filing status to single, as it results lower taxes. If your child lives with you over half the year and you provide over half his support, you can file HOH. Hope this helps. John...

Tax Law (Questions About Taxes): two questions, standard mileage rate, foreign earned income
standard mileage rate, foreign earned income, earned income credit: I can t begin to address all your issues. If your support is given directly to you, it may not be taxable income - such as with the car. It doesn t sound as if you qualify for the foreign earned income exclusion due to the time spent in the US plus the...

Tax Law (Questions About Taxes): questions on how to file-with a pending divorce, child support arrears, injured spouse
child support arrears, injured spouse, head of household: Sarah, Thanks for your question. If your husband has not lived in your home at any time during the last 6 months of the year, you are considered unmarried and can file head of household (if you qualify) or single. If you do not qualify as considered...

Tax Law (Questions About Taxes): questions on foreign properties, italian citizen, form 1116
italian citizen, form 1116, worldwide income: Pio, Thanks for your question. As a US citizen or resident, you are subject to tax on all your worldwide income. However, if you pay income tax to another country on any of this income, you may receive a credit on your 1040 for those taxes on Form 1116....

Tax Law (Questions About Taxes): questions about paying taxes, tax brackets, state taxes
tax brackets, state taxes, paying taxes: Dear Danielle, Some people do not have to file a tax return because of their LOW amount of wages earned... However, if you are in business for yourself or get a 1099-MISC you must file a tax return no matter what your income is.... If you had W-2 wages...

Tax Law (Questions About Taxes): two questions-one sale, constructive receipt, capital gains tax
constructive receipt, capital gains tax, settlement sheet: Robert, Thanks for your question. If the monies the title company used to pay the taxes were funds that are (were) yours, you can deduct the taxes they paid. Since the sale is not really complete - a trade is contemplated, you do not have to pay tax...

Tax Law (Questions About Taxes): questions about tax, federal withholding taxes, time government
federal withholding taxes, time government, retirement plan: Dear Pauline, Based on what you are telling me here, it would be better for you to file your own tax return and claim yourself as a dependent... Your mother would file her own tax return as SINGLE... She would also qualify for some EIC money if you do...

Tax Law (Questions About Taxes): questions, long term capital gain, dependency exemption
long term capital gain, dependency exemption, 1099r: Linda, Thanks for your questions. The remodeling costs are added to the cost of the house if they are capital expenses. This only includes items such as an addition or major improvement such as a roof. Replacing broken windows, painting, central air,...

Tax Law (Questions About Taxes): quick claim deed and capital gains, quick claim deed, tax consequences
quick claim deed, tax consequences, gift taxes: If they quit claim the home to you and do the proper filing - ie gift tax return, then it is your home and you can do what you want with it. After the quit claim, the folks are out of the picture. If you don t own and live in it 2 out of 5 years, then YOU...

Tax Law (Questions About Taxes): quickest way to get resale certificates in many States, resale certificates, duluth minnesota
resale certificates, duluth minnesota, business presence: In most states the Sales and Use tax permits are handled by the Local business license department, that may be a city or county. I have never seen a site that would be comprehensive enough to have contact info for each locality. But, in order to apply...

Tax Law (Questions About Taxes): quit claim deed, real property act, gifted property
real property act, gifted property, claim deed: The cost basis of gifted property is the same cost basis as the donor s plus the cost of any improvements made to the property. The holding period is the same as the donor. That means that however much your mom paid for the house, plus any improvements she...

Tax Law (Questions About Taxes): quit claim deed transfer reporting, form 709, deed transfer
form 709, deed transfer, stancil: Frank, Thanks for your question. You can only report the income and expense for the time you owned the property. The transfer of the property to you constitutes a gift, as the price is considerably below market value. The amount of the gift is the...

Tax Law (Questions About Taxes): quit claim deed, lifetime gifts, stancil
lifetime gifts, stancil, claim deed: Paula, Thanks for your question. From a tax standpoint, adding you to the deed would constitute a gift. If the value of what is conveyed exceeds $12,000 your mom would have to file a gift tax return. Unless she has given over $2,000,000 in prior...

Tax Law (Questions About Taxes): quit claim gift tax, mark thanks, stancil
mark thanks, stancil, cost basis: Mark, Thanks for your question. I can t address if the gift is allowed under Medicare. However, it can be done from a tax standpoint. The problem, however is that the transfer is considered a gift. If the value of the gift exceeds $12,000 a gift...

Tax Law (Questions About Taxes): R & D Tax Benefits, personal bikes, new bikes
personal bikes, new bikes, road motorcycles: Let s start with depreciation of a vehicle is bad. Now, you can do it, in fact it is viable that you could put these purchases under the 179 deduction, and fully depreciate these machines in the first year, treating them ALMOST like a full write off in...

Tax Law (Questions About Taxes): Racing Sponsorship Tax Wrte-Off, race car driver, racing sponsorship
race car driver, racing sponsorship, target market: The entire amount is deductible as advertising expense. Where companies get in trouble is when they own the car and it never breaks even or makes money. Then you get into hobby loss issues. But if you are sponsoring an unrelated party - it is all currently...

Tax Law (Questions About Taxes): Ranch Tax Question, family picnics, family picnic
family picnics, family picnic, expertize: I am sorry this is not my expertize but I certainly would love to be in your family! That having been said be careful as old Ben Franklin said after three days fish and guests begin to stink there may be gift tax inplications as well as the agricultular...

Tax Law (Questions About Taxes): Ranch Tax Question, family picnics, family picnic
family picnics, family picnic, federal income tax: Hi, It s very nice of you to open your land to family. There are no Federal income tax issues unless you sell land or give it away. From what you said you plan simply to let them build there but not hold title to the land. It might be a good idea to...

Tax Law (Questions About Taxes): Ranch Tax question, family picnics, texas property tax
family picnics, texas property tax, tax ramifications: Brison, There would be little or no income tax ramifications, as the entire 115 acres is probably not (for tax purposes) considered your main home, so it would not be subject to exemption from income tax if sold. If you sold the tract on land on which...

Tax Law (Questions About Taxes): Raw Land Sale taxes, long term capital gain, alternate minimum tax
long term capital gain, alternate minimum tax, precise number: if held for more than one year the sale would qualify as a long term capital gain because of the Alternate minimum tax I can not give you a precise number but most likely it would be taxed at around 15% If held less than a year it is tax at the ordinary...

Tax Law (Questions About Taxes): RE: Personal Tax, stancil, personal tax
stancil, personal tax, time student: Shishana, Thanks for your question. Your mother can claim you as a dependent if she provided over half your support, you are under age 19 or a full time student under age 24, and you do not file a joint return. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): RE reposession, capital improvements, stancil
capital improvements, stancil, rental property: Jaromir, Thanks for your question. The seizure of your property by the county is treated as a sale, for tax purposes. Therefore, you can deduct your loss. The loss, however, is calculated by determining the difference in your basis and the proceeds...

Tax Law (Questions About Taxes): RE: What Tax Schedule Should Be Used, form 1040 schedule e, form 6198
form 1040 schedule e, form 6198, real estate taxes: Dear Binh, I can t help you with this because I do not know everything there is to know to tell you with one or if both need to be filed or if none need to be filed.... All you can do is read the 1040-schedule-E instructions on regarding both of these...

Tax Law (Questions About Taxes): RE Taxes, capital gain taxes, tax implication
capital gain taxes, tax implication, pre construction: Hi, Assuming that you never move into the house it would be considered investment property. When you sell it you will have a capital gain on which you will pay either short term (held for one year or less) or long term (held more than 1 year) capital gain...

Tax Law (Questions About Taxes): REAL ESTATE CAPITAL GAINS CROSS STATE BORDER, new york state taxation, new york state taxation department
new york state taxation, new york state taxation department, real estate capital gains: Hi, Unfortunately the cross border taxation he is thinking of doesn t cover capital gains or many other types of income. It prohibited states from continuing to tax retirement income when retirees moved to another state. For example, if you lived in CA,...

Tax Law (Questions About Taxes): REAL ESTATE TAX QUESTION, divorce decree, real estate tax
divorce decree, real estate tax, property settlement: 1. I am not a lawyer. My opinion is that your wife is entitled to any increase in value as well as interest accrued on the late settlement of the divorce decree requirements for the property settlement. 2. Your wife is not entitled to claim the payment...

Tax Law (Questions About Taxes): REAL ESTATE, joint tenant with right of survivorship, right of survivorship
joint tenant with right of survivorship, right of survivorship, stancil: Narine, Thanks for your question. You cannot take a $500,000 exemption on the profits, as you are not filing a joint return. You can exclude up to $250,000 of gain from taxation. Your basis one half of your original cost plus one half of the fair...

Tax Law (Questions About Taxes): REAL STATE CAPITAL GAIN EXCLUSION, capital gain, mr garcia
capital gain, mr garcia: Mr. Garcia: The rule is 3 of the last 5 years. You must have lived in the house 3 of the last 5 years since you lived in it 4 you met that test. Another test is this the first HOME that you have sold for a profit you have a one time exclusion. Joh...

Tax Law (Questions About Taxes): REALESTATE GIFT TAX, state income tax, principal residence
state income tax, principal residence, mother in law: you need to determine the fair market value of the house when you mother in law transferred it to your wife if it was not your principal residence for at least 24 months of the last sixty there would be 15% federal gain plus a state income tax. Your mother...

Tax Law (Questions About Taxes): RESELLER TAX, purchaser name, record retention
purchaser name, record retention, ebay: A waiver is allowed if you have a document which includes the id# of the purchaser, name of the business, name of purchaser, address, invoice of items purchased including amount per item. This must be retained for the full life of your required record retention...

Tax Law (Questions About Taxes): RETAIL/TAX QUESTION, cash register co, state sales tax
cash register co, state sales tax, state legislators: Are you asking if your register could be set to charge tax on full retail then give the discount only on the purchase Price? I would have to answer with I could imagine the register could be set up for that. Or do you want to know if Minnesota requires...

Tax Law (Questions About Taxes): Re: Deposited Cash Exceeds Income, tax auditor, downpayment
tax auditor, downpayment, sister in law: Dear Binh, All you need is the transaction dates for BOTH of these deposits, an explanation from your sister in-law that she gave you this money for investment and your brother that he LOANED you this money for downpayment of your house and you should be...

Tax Law (Questions About Taxes): Re: Fee to prepare amended taxes, percentage fee, personal travel
percentage fee, personal travel, business from home: Hi Maggie, I believe that a percentage fee for an amended return is acceptable. However, deducting personal travel expenses and personal furniture is definitely not acceptable. I would be looking for another place to have my taxes done if I were you....

Tax Law (Questions About Taxes): Re-Filing, 1040x, irs
1040x, irs, tax credits: Dear Joseph, You can NOT send the check back.... What you have to do is file a 1040X, which is an amended tax return for 2005.... Do NOT do this until you get your refund check, just incase the IRS catches this mistake themselves.... Once you get the...

Tax Law (Questions About Taxes): Re: Gift taxes on capital gains from stock sale, marginal tax bracket, brokerage account
marginal tax bracket, brokerage account, stancil: Brian, Thanks for your question. There is no such thing as claiming a gift tax on the capital gains. When you gave him the shares, he received your basis in the stock. So, whatever you paid for the shares is his cost basis. Any amount above this cost...

Tax Law (Questions About Taxes): Re: Healthcare Traveler Per Diem, credit card receipts, agi limitation
credit card receipts, agi limitation, income tax purposes: Lea, Thanks for your question. You can take a standard meal deduction, which will vary depending on where you are traveling. www.gsa.gov/perdiem lists these amount. MI&E is for meals. Although there are other derdiems listed there they are not applicable...

Tax Law (Questions About Taxes): Re: Inheiritance & Delinquent Taxes, franchise tax board, stancil
franchise tax board, stancil, delinquent taxes: Diane, Thanks for your question. In a situation with the IRS, it is always possible that they will seize taxholder property to help satisfy deliquent taxes. It would depend on the amount of the delinquency as well as how long the taxes have been due,...

Tax Law (Questions About Taxes): Re: Past years Child Tax Credit, child tax credit, stancil
child tax credit, stancil, birth dates: Tiff, Thanks for your question. Yes, you can file an amended return, 1040X, taking the child tax credit if you were eligible for it. Normally, the software automatically calculates this if you included full and complete information for your dependent...

Tax Law (Questions About Taxes): Re: Retirement Funds, ira trustee, income tax rates
ira trustee, income tax rates, traditional ira: Joann, Thanks for your question. You cannot roll the fund into a Roth. My suggestion would be to roll the account over into a traditional IRA. This can be done with no tax consequences if it is a direct rollover - you never touch the funds, just direct...

Tax Law (Questions About Taxes): Re: Roth 40l and 403b, roth conversions, roth conversion
roth conversions, roth conversion, ira money: Joann, Since a 403(b) is considered a qualified plan, it can not be rolled over to a Roth 401(k). Contributions made to a 403(b) plan are made with pre-tax dollars. Contributions to a Roth 401(k) are made with after-tax dollars. If you are interested...

Tax Law (Questions About Taxes): Re: Tax exemption of DoD Contractor, earned income exclusion, foreign earned income exclusion
earned income exclusion, foreign earned income exclusion, foreign earned income: Edward, Thanks for your question. You are referring to the Foreign Earned Income Exclusion. This allows you to exclude up to $80s.000 (for 2005, I do not have the 2006 numbers) from taxation. To qualify for this you must have been a bona fide resident...

Tax Law (Questions About Taxes): Re Taxation of deffered interest on EE Bonds, www irs gov, ee bonds
www irs gov, ee bonds, tax free exchange: Hello, If the bonds are in the name of the trust. I do not understand why it is necessary to convert to cash now. I assume there is sufficient liquidity. The trust could hold bonds. A conversion of the bonds to cash in my opinion is a taxable event....

Tax Law (Questions About Taxes): Re Taxation of EE bonds, ee bonds, clu chfc
ee bonds, clu chfc, assets value: One of the basic tenents of funding a trust is to do it with appreciating assets. Living trusts are generally not set up to pay their own taxes, they tansfer the tax liability to the Grantor, so there would be effective trust Tax Rate . By putting the...

Tax Law (Questions About Taxes): Re: tax audits, tax audits, tax audit
tax audits, tax audit, health problem: Hi Michael, There is no way to tell what a tax audit might cost you. It would depend on whether or not there are disallowed deductions or unreported income. If there were no deductions disallowed or unreported income discovered, it would cost you nothing....

Tax Law (Questions About Taxes): Real Estate and Cap Gains Tax, cap gains tax, mail
cap gains tax, mail, stancil: Leana, Thanks for your question. Yes, you can go ahead and purchase the second home at any time, just don t move in until September. Generally, they take your word for it, you don t have to prove it, but if they audit you, they would be looking at things...

Tax Law (Questions About Taxes): Real Estate Capital Gains, real estate capital gains, capital gains tax
real estate capital gains, capital gains tax, third house: Hi Jennifer, Yes you must pay capital gains tax on the sale of the house (assuming that you have a gain) because you did not live own and live in it as your main home for 2 years during the 5 years preceeding the date of sale. The depreciation allowed...

Tax Law (Questions About Taxes): Real Estate & Capital Gains, real estate capital gains, long term capital gains
real estate capital gains, long term capital gains, capital gains tax: Anthony: Remember as a real estate agent any property sales is considered as ordinary income that you are involved in. However as an owner of investment property (home) you are entitled to be treated as the same. With that in mind, if the house was owned...

Tax Law (Questions About Taxes): Real Estate Capital Gains Tax, real estate investor, real estate capital gains
real estate investor, real estate capital gains, capital gains tax: Hi Scott, What you re describing is an installment sale. The seller would pay capital gains tax on a portion of the gain each year. Part of the payments would be interest and they would also report that interest income each year. You would take title...

Tax Law (Questions About Taxes): Real Estate Capital gain, real estate capital gain, short term capital gain
real estate capital gain, short term capital gain, capitol gain: No, capital gain rates are always lower under the current code. Capital gain rates are 5 or 15%, ordinary income rates are 10 - 35%. What I said was that capital gain rates are lower. It is not considered inventory if you sell within a year, it is a...

Tax Law (Questions About Taxes): Real Estate Expense, miscellaneous itemized deductions, cleint
miscellaneous itemized deductions, cleint, investment expenses: Matt, Thanks for your question. Travel for this purpose is deductible. If you are filing a Schedule C, they would be deductible there. This sounds like where you should be reporting this activty as the IRS would classify you as a dealer and, therefore...

Tax Law (Questions About Taxes): Real Estate Gains, real estate commissions, short term capital gain
real estate commissions, short term capital gain, long term capital gain: Hi Mark, If you owned and lived in the house as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 of gain ($500,000 if married filing jointly)....

Tax Law (Questions About Taxes): Real Estate Gains, stancil, cpa
stancil, cpa, proceeds: David, Thanks for your question. If the house served as your main residence for 24 of the past 60 months, it qualifies for exclusion of any gain up to $250,000 ($500,000 if married filing jointly). Any gain above this is subject to tax. If it does...

Tax Law (Questions About Taxes): Real Estate Gift Tax question, taxable gifts, john thanks
taxable gifts, john thanks, question question: The 100K is a one time gift. You fill out a return in the year of the gift. The 12K is per year, it does not carry forward. In this case, you have an $88K taxable gift and a return is filed. However, due to the $1,000,000 lifetime exemption, no tax is...

Tax Law (Questions About Taxes): Real Estate Gift Tax?, estate tax purposes, claim deeds
estate tax purposes, claim deeds, claim deed: Greg, I would recommend all of the heirs to sign the quit claim deeds to your mother. There is no income tax issue for the heirs. In fact, I don t believe there is a gift tax issue. If handled properly when a life estate is retained, the transfer of...

Tax Law (Questions About Taxes): Real Estate gift taxes, market interest rate, elderly parents
market interest rate, elderly parents, taxable gifts: Bonnie, Thanks for your question. You are correct on the gift tax issue. You can give them a mortgage for the amount transferred and they can forgive $44K each year. Please note, however, that you must attach a market interest rate to the loan, and...

Tax Law (Questions About Taxes): Real Estate Income, long term capital gain, procced
long term capital gain, procced, tax consequences: as far as your 1/3 it seems like a wash you put in 21,000 (you basis)and will get about that when you divide the proceed if you have a small profit it would be a long term capital gain taxed at 15% As to the sisters I have no idea what their basis might...

Tax Law (Questions About Taxes): Real Estate Installment sale interest taxation, www irs gov, irs pub
www irs gov, irs pub, irs website: Hi, If you aren t receiving the interest you won t have any interest to report. Assuming that you are selling at a gain, you will have to report the installment sale in the year you sell assuming that you receive some money that year - a downpayment for...

Tax Law (Questions About Taxes): Real Estate Investment, personal income tax, irs rulings
personal income tax, irs rulings, sole proprietor: The reason that an LLC was recommended was to limit your individual liability. The reason for each in its own LLC was to separate them, so that liability of one would not affect the others. HOWEVER. . . The LLC has not proven to limit liability, for...

Tax Law (Questions About Taxes): Real Estate License tax deductions, www irs gov, realtor fees
www irs gov, realtor fees, national ass: 1. Nothing you paid up to the point of acquiring your license is deductible. 2. As a real estate agent, you will incur ordinary and necessary expenses in your business. Those expenses will be deductible. If you have losses in 3 consecutive years, the...

Tax Law (Questions About Taxes): Real Estate losses, subchapter s corporation, passive losses
subchapter s corporation, passive losses, types of corporations: Mike, There are only two types of corporations. A regular corporation and a Subchapter S corporation. The regular corporation can t pass losses to the shareholders. The losses stay in the corporation. Another problem will occur if you sell the property....

Tax Law (Questions About Taxes): Real Estate Parnership Taxation, partnership interest, tax consequences
partnership interest, tax consequences, nominal value: Hi Franklin if sold or foreclosed your capital account would be assigned enough Capital gain to bring the balance up to ZERO and if any more gain is available you would receive more gain and hopefully cash Your heirs would have a basis of Zero or market...

Tax Law (Questions About Taxes): Real Estate Partnership, partnership tax return, form 1065
partnership tax return, form 1065, stancil: Jack, Thanks for your question. Since you are operating as a partnership, you should have the partnership as primarily liable on the loan, and give the lender the partnership tax ID. You would then allocate the income and expenses on the K-1 of Form...

Tax Law (Questions About Taxes): Real Estate: preforeclosures, marginal tax rate, loan 20k
marginal tax rate, loan 20k, short term capital gain: Gina, Thanks for your question. First, you don t make a profit when you buy. Profit is realized upon the sale. You have two types of income from this transaction. First, you will recognize rental income on Schedule E where you report income, expenses...

Tax Law (Questions About Taxes): Real Estate Sale , taxes, gross profit percentage, capitol gains taxes
gross profit percentage, capitol gains taxes, lump sum payments: Larry, Thanks for your question. You could use the installment method. Under this method, you determine your gain by subtracting the proceeds from your basis in the property. Then you divide your gain by the proceeds. This gives you your gross...

Tax Law (Questions About Taxes): Real Estate Tax, legal standpoint, social security number
legal standpoint, social security number, rental expenses: D, Thanks for your question. 1. You will pay tax on the gain at capital gains rates, which is probably 15% for you. 2. Investing in a new home will not avoid any taxes or penalties. Your problem is the house in in your name and all tax documents...

Tax Law (Questions About Taxes): Real Estate Tax, rough calculation, rental expenses
rough calculation, rental expenses, verbal agreement: Hi, To calculate your gain you deduct your adjusted basis from your adjusted sellng price. It isn t just the difference between what you receive and what you owe. Your adjusted basis is what you paid for it plus any capital improvements less certain...

Tax Law (Questions About Taxes): Real Estate Tax, irs law, rental expenses
irs law, rental expenses, verbal agreement: Dear D, You have a difficult situation her with regards to the second question and you will have to contact a local CPA for full aspects to this particular problem... As for the basic selling of the house, if it is in YOUR name only, then YOU will be...

Tax Law (Questions About Taxes): Real Estate Tax Law, tax portion, taxable gifts
tax portion, taxable gifts, estate tax law: Laura, Thanks for your question. You can either transfer title to 50% of the property, in which case you will have a gift. If the value of the gift exceeds $12,000, you will need to file a gift tax return. However, unless you have given prior lifetime...

Tax Law (Questions About Taxes): Real Estate Tax Law, estate tax law, rental expenses
estate tax law, rental expenses, real estate tax: No, because you cannot charge yourself rent and you cannot charge off owner s expenses as rental expenses. The only income you will include on Sch E is the boarder s portion and I would assume 50% of the total expenses. The other person expenses would go...

Tax Law (Questions About Taxes): Real Estate & Tax License, income tax returns, jackson hewitt
income tax returns, jackson hewitt, accounting firm: Hi Tyrone, Having knowledge in both fields would certainly make you more well rounded. You could look for a job with an accounting firm that also does income tax returns for clients or at one of the national firms such as H&R Block or Jackson Hewitt....

Tax Law (Questions About Taxes): Real Estate Tax question, long term capital gain, real estate tax
long term capital gain, real estate tax, tax question: Hi Juan, If you owned and lived in the house as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 of gain ($500,000 if married filing jointly)....

Tax Law (Questions About Taxes): Real Estate Tax, tax implication, real estate tax
tax implication, real estate tax, cost basis: Dear Richard, If you sell this property, you are looking at paying taxes on the difference between the cost basis and the sale price.... This is considered investment property right now since it is not your main home and you can not lived in it for 2 out...

Tax Law (Questions About Taxes): Real Estate Taxes, texas secretary of state, gowww
texas secretary of state, gowww, limited partnership: The easiest way is for the three of you to agree to pay 1/3 of the expenses and get 1/3 of the income the above just made you a general partnership. If you are concerned about liability you may want to form an S corp, in Texas a limited partnership is more...

Tax Law (Questions About Taxes): Real Estate Taxes, real estate taxes, passive income
real estate taxes, passive income, tax bracket: if you have a gain it would be taxed as ordinary income as well as in CA if you have a loss it gets more complicated with the passive income rules. you can learn about this at WWW.irs.utreas.gov in the upper right ue rental Income also the IRS has a link...

Tax Law (Questions About Taxes): Real Estate Taxes, real estate taxes, barnyard
real estate taxes, barnyard, selling a home: Okay that is good. Now, more questions. How much is Mom selling EVERYTHING for (including the lots) and what is her basis? Basis is what was paid for it, plus improvements, plus any step up in basis if a spouse has passed away. If her spouse did pass...

Tax Law (Questions About Taxes): Real Estate Taxes, unforeseen circumstances, real estate taxes
unforeseen circumstances, real estate taxes, tax implications: Remember, it is not what you walk away with, as your mortgage, etc has nothing to do with anything. You take what you bought your home for (adding in purchase costs) and what you sell it for (subtracting sales costs like commission) and that is what is...

Tax Law (Questions About Taxes): Real Estate Taxes, real estate taxes, mortgage company
real estate taxes, mortgage company, question thanks: Russ, Thanks for your question. You can deduct the actual amount of taxes paid by you or on your behalf by the mortgage company. However, in the event of audit, you need to be able to prove that the proper amount is not the amount reflected by the mortgage...

Tax Law (Questions About Taxes): Real Estate Taxes, capital gain taxes, capitol gains
capital gain taxes, capitol gains, unforeseen circumstances: Hi David, Since you lived in the home for less than 24 months you cannot exclude any of the gain unless your moved for employment or health reasons or for certain unforeseen circumstances. You can no longer postpone capital gain taxes by investing in a...

Tax Law (Questions About Taxes): Real Estate tax, stancil, real estate tax
stancil, real estate tax, paying taxes: Duane, Thanks for your question. If the title company will not split the proceeds, you can attach an explanation of the facts. A second, more complicated alternative is for the person whose SS # is on the 1099 to issue 1099 s in his name to the others....

Tax Law (Questions About Taxes): Real Estate taxes, capital gain taxes, internal revenue code
capital gain taxes, internal revenue code, section 1031: Borrowed money is not taxable. However, if you borrow it and spend it, when you go to sell the property the gain will be attributed to you, and you will have to come out of pocket for the taxes on it. Many people have gotten upside down in realestate...

Tax Law (Questions About Taxes): Real Estate transfer, tax implication, messy situation
tax implication, messy situation, cost basis: Andrew, I would discuss the situation with the mortgage company. They will probably suggest refinancing the mortgage to get your parents off the loan. If this was the original mortgage from 1990, chances are you will get a much better interest rate on...

Tax Law (Questions About Taxes): Real Estate, income tax bracket, stancil
income tax bracket, stancil, prepayment penalties: Jessie, Thanks for your question. Since you have not lived in the house as your principal residence for 2 of the past 5 years, you will be taxed on the gain. If you have not owned the house for 12 months or more, the gain will be taxed at your margninal...

Tax Law (Questions About Taxes): Real estate appreciation, real estate appreciation, tax consequences
real estate appreciation, tax consequences, paying taxes: Billy, As long as you can exclude all of your capital gain from the sale of your house, the proceeds are free and clear of income taxes. You would only pay tax on the income those proceeds earn while it is invested. Enjoy the tax free income and don...

Tax Law (Questions About Taxes): Real estate capital gains, real estate capital gains, capital gains tax
real estate capital gains, capital gains tax, rental property: Dear Melrose, There is NO way to avoid paying capital gains tax on the rental property..... However, if the residential property is considered your MAIN home and you have lived in it for 2 out of the last 5 years, then you can be exempt from up to $500,000.00...

Tax Law (Questions About Taxes): Real estate Income, state tax returns, state return
state tax returns, state return, rental property: Dear Steve, I do not do state tax returns and since I do not live in either of these states, I do not know their filing requirements... You will have to read the instructions for each states return to see exactly where to report this and to see if the DE...

Tax Law (Questions About Taxes): Real estate Investment, passive losses, real estate investment
passive losses, real estate investment, allowable deduction: Marie, Thanks for your question. It depends. If you show a loss on your rental activity, you may be able to deduct it. You report your rental income on Schedule E. On that schedule, you also deduct any expenses incurred in the activity. Normal expenses...

Tax Law (Questions About Taxes): Real estate and income tax deduction, income tax deduction, stancil
income tax deduction, stancil, mortgage interest: Hop, Thanks for your question. Presuming this is not a rental property, but one you will use as your home, there are two criteria for deductions. First, you must be legally liable, second you must be the one actually making the payments. Therefore,...

Tax Law (Questions About Taxes): Real estate & income taxes, rental losses, mortgage fees
rental losses, mortgage fees, passive activity: Curt, Active involvement, or material participation in the words of the IRS occurs if one or more of the following criteria exists: 1. Participated in the activity for more than 500 hours during the year. 2. Substantially all the participation in...

Tax Law (Questions About Taxes): Real estate question, fees insurance, portfolio income
fees insurance, portfolio income, investment interest: Hi, I m not familiar with that way of handling the mortgage interest on investment property and don t find any mention of that in my reference materials. But I did not do an exhaustive search. I suggest you go back to the someone who mentioned it and...

Tax Law (Questions About Taxes): Real estate sale taxes, capital gains tax, tax liabilities
capital gains tax, tax liabilities, john thanks: Erick, Thanks for your question. If you have occupied the house for 24 of the past 60 months as your main home, you can exclude up to $500,000 of gain on the sale of the house if you are filing a joint return. This assumes that you have taken no depreciation...

Tax Law (Questions About Taxes): Real estate tax question regarding in-laws, tax implication, right on target
tax implication, right on target, estate purposes: Erin, You and your husband s inclination that this was a bad move is right on target. When it comes to estate planning, verbal agreements are pretty useless. This especially true when there is more than one beneficiary. There are three ways to view...

Tax Law (Questions About Taxes): Real State Tax, income tax bracket, tax implication
income tax bracket, tax implication, propperty: Richard, Thanks for your question. If you sell the property, you will have to pay tax on the amount by which your proceeds from the sale exceed your cost basis. If you have held the propperty more than 12 months, it will be taxed at the preferred capital...

Tax Law (Questions About Taxes): Realestate, legal answer, personal assets
legal answer, personal assets, investment property: Ms. Barber: The question you are asking requires a LEGAL answer. I am not an attorney. I can not give you a legal answer to that question. You must pose that question to an attorney. However, thank you for asking me a question. I am sorry that I...

Tax Law (Questions About Taxes): Realestate capatial gains, capital gain tax rate, long term capital gain tax rate
capital gain tax rate, long term capital gain tax rate, capital gain tax: Hi Robert, The long term capital gain tax rate is a maximum of 15%. If you re in the 10% or 15% tax bracket the capital gain tax rate is 5%. There really isn t any way to negate/offset those taxes since it wasn t your main home. The fencing you put...

Tax Law (Questions About Taxes): Recapture Tax, federal tax returns, income tax purposes
federal tax returns, income tax purposes, housing development authority: Hi Joseph, There is no Federal recapture tax so I can t say how the state of Virginia calculates it. Since you are not married you would have to file separate tax returns. If your fiancee s only income is from SSDI she would not be required to file...

Tax Law (Questions About Taxes): Receipts for tax purposes, social security and medicare, stancil
social security and medicare, stancil, tax purposes: Kally, Thanks for your question. If you are audited and cannot show receipts for your expenses, the IRS will disallow the deduction. In addition, if you pay these individuals more than $600 in a year and they are not considered employees, you...

Tax Law (Questions About Taxes): Receipts, itemizing deductions, orginial
itemizing deductions, orginial, standard deduction: what you have are business expense which go on schedule C to reduce the business income. This treatment will let you use the standard deduction. You only need to keep the receipts and if you pay by check that should be adequate to sustain the expense....

Tax Law (Questions About Taxes): Received an erroneous 1099-misc, 1099 misc, stancil
1099 misc, stancil, employee compensation: CZ, Thanks for your question. The commissions should have been included on the W-2. However, you will probably have difficulty convincing your boss of this. Your only recourse is to file that way, or to get them to amend both the W-2 and and the 1099....

Tax Law (Questions About Taxes): Receiving a Gift of Stock, brokerage account, stancil
brokerage account, stancil, taxable income: Pete, Thanks for your question. A gift is not taxable income. However, when you sell it, your basis is the same basis as your father had in the stock. Your gain or loss will be measured by subtracting the basis from your proceeds. Hope this helps....

Tax Law (Questions About Taxes): Receiving a Gift, cost basis, cows
cost basis, cows, gift tax return: You will not report the gift in any way. You do need to know the value of the cows on the date of the gift as well as what his cost was in the cows. The lesser of these 2 amounts is your own cost basis. Your father does need to file a gift tax return(unless...

Tax Law (Questions About Taxes): Receiving money from Grandmother's trust/estate, inheritance taxes, dollar figures
inheritance taxes, dollar figures, stancil: Sandra, Thanks for your question. Inheritances are not considered income, so you will not owe any income taxes on those amounts. However, if the property increased in value from the time of death until it was sold by the estate, you will owe income...

Tax Law (Questions About Taxes): Recent house sale, house sale, time don
house sale, time don, money: Hi, If you owned and lived in it as your main home for 2 years during the 5 years preceding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 gain ($500,000 if married filing jointly). You are no...

Tax Law (Questions About Taxes): Recent Property buyer and soon to be married, ira limits, withholding allowances
ira limits, withholding allowances, property buyer: Cortez, Thanks for your question. You can deduct interest expense on the mortgage and the property taxes as itemized deductions. I can t tell you if you should increase the number of withholding allowances. This is something that varies with the...

Tax Law (Questions About Taxes): Recently Divorced, head of household, dependent children
head of household, dependent children, e mail: Josie, If you are no longer married as of December 31st, you will not be able to file a joint tax return with your ex-husband. You can file as a single individual or if you have dependent children as head of household. If you have any other questions,...

Tax Law (Questions About Taxes): Recently purchased company, section 179, software purchases
section 179, software purchases, e mail: Jim, I found your question in the pool. The business can expense up to $125,000 of assets placed in service during 2007 under Section 179. The computers and software in the new network can be expensed under Section 179, if the network is up and running...

Tax Law (Questions About Taxes): Recharacterizations Of IRAs, ira deduction, 2006 tax deductions
ira deduction, 2006 tax deductions, traditional ira: Helen, Thanks for your question. You are correct in that you do not have to complete Form 8606. However, you do reflect the IRA deduction on page 1 line 32 of the 1040, as though it were a traditional IRA without a recharacterization. On line 15a,...

Tax Law (Questions About Taxes): Record retention, quarterly tax returns, universal answer
quarterly tax returns, universal answer, personnel agency: Usually retention of employment records is detrmined by various labor agencies so there is no universal answer you may contact the labor board in Ca . My advise would be unless the records are thaking up space that you need hbadly keep them. Remeber you...

Tax Law (Questions About Taxes): Reduced Capital Gains Exclusion, marginal tax bracket, stay at home mom
marginal tax bracket, stay at home mom, capital gains rate: Brad, Thanks for your question. The qualifications for a reduced maximum exclusion are 1) change in employment, 2) change in health, 3) death, 4)divorce, 5) multiple births from the same pregnancy, 6) unemployment (must draw unemployment compensation),...

Tax Law (Questions About Taxes): Reduced exclusion, maximum exclusion, rough calculation
maximum exclusion, rough calculation, relocation: Hi Mark, Yes if your move was for employment reasons you would qualify for a reduced exclusion. If you are single the maximum exclusion is $250,000. The reduced exclusion is based on the actual number of days which you owned and lived in it as your main...

Tax Law (Questions About Taxes): Reduced Maximum Exclusion - CG from selling your home, irs publication, maximum exclusion
irs publication, maximum exclusion, gain exemption: Mariana, Thanks for your question. You are eligible for a reduced maximum exclusion. The amount of gain that can be excluded would be 10/24 x 500,000or $208,000. However, your basis is reduced by the depreciation allowed or allowable during the...

Tax Law (Questions About Taxes): Reduced Maximum Exclusion on home, meridian mississippi, maximum exclusion
meridian mississippi, maximum exclusion, home in louisiana: Hi Matt because you are your sale is related to your employment you will be able to exclude most of the gain you need to fill out a worksheet look it up at WWW.irs.ustreas.gov publication 523 Also do not forget you may also be able to deduct against...

Tax Law (Questions About Taxes): Reduced Maximum Exclusion, long term capital gain, unforeseen circumstance
long term capital gain, unforeseen circumstance, maximum exclusion: Dustin, Thanks for your question. Marriage is not one of the events listed by the Commissioner of the IRS as an unforeseen circumstance. Therefore you are not eligible for a reduced maximum exclusion. The gain should be reported in full as a long term...

Tax Law (Questions About Taxes): Refi points on rental mortgage, personal residences, stancil
personal residences, stancil, standard deduction: Arch, Thanks for your question. Just a point to keep in mind for the future. If it is a rental property, you cannot deduct the points on Schedule A. That is for personal residences only. A rental is a business property. The points are included on...

Tax Law (Questions About Taxes): Refile Gambling Winnings, red flag, tax rate
red flag, tax rate, tax return: Hi, You should file an amended 2005 return and report your gambling winnings for that year. That, by itself, would not raise a red flag. Just be sure you have documentation showing when you won the money in case there are ever any questions. Regards,...

Tax Law (Questions About Taxes): Refiling 2005 taxes, www irs gov, tax forms
www irs gov, tax forms, tax return: As long as you were married as of one minute before midnight on 12/31/05, you are considered married the entire year. To find the refund, the easiest way is to do the tax return as a joint return. You can find tax forms and tables at www.irs.gov Helen,...

Tax Law (Questions About Taxes): Refiling Taxes, head of household, stancil
head of household, stancil, working mother: Lauren, The problem is that if ofile and he has not done so, the IRS will realize that your kids have been claimed on two returns and deny your amended return. So he must refile first, not claiming the kids, or your amendment will get kicked out. John...

Tax Law (Questions About Taxes): Refinance costs on rental property, stancil, previous question
stancil, previous question, rental property: Linda, Thanks for your question. Rental property is handled differently than real estate that is used as your home, or second home. The items you mention are expenses of the rental property and are deducted on Schedule E. This assumes that the property...

Tax Law (Questions About Taxes): Refinance mortgage for 2003., loan fees, mortgage interest
loan fees, mortgage interest, cost basis: Dear Doug, The only closing cost items that you can use are any mortgage interest, realestate taxes that were figured into the refinancing.... All the rest are simply information for you to be added to the COST BASIS of your house if or when you ever...

Tax Law (Questions About Taxes): Refund Anticipation Loan Fee - Deductible?, refund anticipation loan, schedule a itemized deductions
refund anticipation loan, schedule a itemized deductions, tax refund anticipation loan: Ellen, Thanks for your question. You may deduct the fees you pay for income tax preparation including the electronic filing fee. However, the fee paid for the refund anticipation loan is considered a fee associated with the borrowing of money and is...

Tax Law (Questions About Taxes): Refund Statute, irs service center, overnight mail
irs service center, overnight mail, refund request: Unfortunately the received date is used. Should this happen to anyone else you know, I strongly suggest taking the return to the nearest IRS Service Center and make sure the received date is stamped on the top of the return. Request a copy of that stamp...

Tax Law (Questions About Taxes): Regarding United Nations Pension, irs publication 575, irs gov
irs publication 575, irs gov, elective deferrals: Hello, If the wages were taxed annually, I would assume the pension is too. Elective deferrals or the investment in the contract might reduce the taxable portion. An exclusion ratio per IRS publication 575 is to be computed. www.irs.gov Is a 1099R...

Tax Law (Questions About Taxes): Rehab Tax Credit for Non-Historical Bldg., irs document, www irs gov
irs document, www irs gov, irs info: Merv, Thanks for your question. I am not an expert on this area of tax law, but on page 4-1 of the document you cite, it specfically states that the credit may be utilized provided th building...is used for non-residential rental purposes. This would...

Tax Law (Questions About Taxes): Reim Expenses become taxable after 1 year, irs publications, stancil
irs publications, stancil, travel expenses: Martin, Thanks for your question. IRS Publications 463 and 535 may shed some light on your situation. An assignment lasting more than a year is not considered a temporary assignment by the IRS. Consequently, travel expenses are not deductible for...

Tax Law (Questions About Taxes): Reimbursable Expense Tax Question, family memeber, nsf fees
family memeber, nsf fees, stancil: Tina, Thanks for your question. If it is shown as a finder s fee, it would be taxable income to the other party. Since he apparently is not a business, the NSF fees would not be deductible by him, causing him to be responsible for additional taxes....

Tax Law (Questions About Taxes): Reimburseable Expenses for a contracted consultant, schedule c, business expenses
schedule c, business expenses, tax expense: Hi Robert. Truth be told, I do not use Quicken, as I m a big fan of QuickBooks, so I m not precisely sure of how this will all integrate with your software. That said, for tax purposes, you will want to include the reimbursement as income, and report all...

Tax Law (Questions About Taxes): Reimbursed Expenses as Taxable Income, state taxation, expense allowance
state taxation, expense allowance, stancil: Jill, Thanks for your question. If you submit your expenses to the company and are reimbursed for actual expenses, the reimbursements are not considered income. This would be what is referred to as an accountable plan. Under a non-accountable plan,...

Tax Law (Questions About Taxes): Reimbursed Expenses vs Taxable Income, irs scrutiny, long distance phone
irs scrutiny, long distance phone, stancil: Wade, Thanks for your question. Technically, your wife is correct. Although the bottom line makes no difference, a large number in other expenses would invite IRS scrutiny. The fact is, you incurred expenses for travel, phone, and the like. A proper...

Tax Law (Questions About Taxes): Reimbursed Mileage Deduction, sign language interpreter, mileage deduction
sign language interpreter, mileage deduction, mileage reimbursement: Jmmie any mileage reimbursement up to the per diem limit is not taxable and not reported as income so there is no deduction. However if she is not reimbursed for all the travel she might want to use the actual cost method I recommend you look up form 2106...

Tax Law (Questions About Taxes): Reinvesting Capital Gains, capital gains exclusion, irs pub
capital gains exclusion, irs pub, permanent change: Hi Charles, Since your move is because of a change in place of employment you would qualify for a reduced capital gains exclusion on your home. The amount of the exclusion is based on the number of days you actually owned and lived in the home as your...

Tax Law (Questions About Taxes): Relative caregiver benefits, dependants, 7 months
dependants, 7 months, nephews: Dear Ken, If this is part of your STATE S welfair then the money will NOT be income to you... However, there is still the issue of whether or not you can claim these children because they only lived with you 7 months AND even though this is not TAXABLE...

Tax Law (Questions About Taxes): Rent claimed on Federal Income Taxes?, first 9 months, federal income taxes
first 9 months, federal income taxes, t claim: Jeff, you are a landlord and you have a tenant. It does not matter that he has paid you with a personal check, business check, an awesome steak dinner once a month at a really swanky place, or whatever. It is all taxable to you. But remember, you have...

Tax Law (Questions About Taxes): Rent you own residence, tax liability, tax planning
tax liability, tax planning, depreciation: You can only exclude a sale every two years, so if you want to exclude house one and two, you need to do more tax planning. But to answer your question - you would be liable for the rent received and you will pay tax on the depreciation allowed or allowable....

Tax Law (Questions About Taxes): Rental Business Entity, stancil, apartment building
stancil, apartment building, tax write offs: Jonathan, Thanks for your question. The IRS does not recognize an LLC as a separate entity, they are taxed as corporations or partnerships. Since there are two of you, an individual proprietorship is not allowed. An LLC does provide protection against...

Tax Law (Questions About Taxes): Rental - Casualty Gain and Sale, long term capital gain, residential rental property
long term capital gain, residential rental property, insurance proceeds: Denis, There are a couple of issues here. First, you really shouldn t have reported the insurance proceeds on your 2005 tax return. This was not a sale of the property. The proper treatment of the insurance proceeds would be a reduction in your cost...

Tax Law (Questions About Taxes): Rental changed to Personal, residential rental property, dear cheri
residential rental property, dear cheri, cost basis: Dear Cheri, Even though you did NOT rent the property in 2003, you must still count the depreciation against the cost basis... So for 2003, you will show depreciation that you could have taken if it were rented and treat it as a depreciation deduction against...

Tax Law (Questions About Taxes): Rental Home, rental house, depreciation
rental house, depreciation, foreseeable future: Hi, When you sell it, to calculate your basis in the property you deduct depreciation allowed or allowable. That means that even if you didn t take the depreciation you must deduct allowable depreciation from your basis. Yes you will have to recapture...

Tax Law (Questions About Taxes): Rental Income, h r block tax, mortgage payment
h r block tax, mortgage payment, stancil: D, Thanks for your question. No, you cannot deduct the mortgage payment or the difference. You can deduct the interest you paid on the mortgage and you can deduct depreciation. You can also deduct any other expenses related to the rental activity....

Tax Law (Questions About Taxes): Rental Income, passive losses, old apartment
passive losses, old apartment, stancil: Tadd, Thanks for your question. If you file a separate return you cannot deduct any of the rental loss. If your combined incomes is less than $150,000 you may take a reduced amount of deduction filing jointly, however. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Rental Income on Church Parsonage, unrelated business income, unrelated business income tax
unrelated business income, unrelated business income tax, business income tax: Mary, Thanks for your question. This is a gray area. If you are holding on to the property for possible future use as a parsonage for a future pastor, I think you could legitimately exclude it as a part of your exempt purpose. There should be something...

Tax Law (Questions About Taxes): Rental Income/Loss, marriage issues, second marriage
marriage issues, second marriage, stancil: Marilyn, This is a situation that you should change immediately. You can file a Schedule E on the property. However, you cannot take a deduction for the mortgage interest unless the mortgage is in your name. Likewise you cannot take a deduction...

Tax Law (Questions About Taxes): Rental Income, h r block tax, insurance mortgage
h r block tax, insurance mortgage, itemized deduction: Hi, No you can t deduct the difference between the rent and the mortgage payment as an expense. You report your rental income ($950 per month) on Schedule E and then deduct your expenses including repairs, insurance, mortgage interest, taxes, etc. The...

Tax Law (Questions About Taxes): Rental income and LLCs, income tax purposes, question pool
income tax purposes, question pool, federal income tax: Hi Robert. Your question was initially directed at a different expert, but I picked your question up out of the question pool because these are issues I deal with all the time. First of all, unless you elect to have your LLC taxed as a corporation (which...

Tax Law (Questions About Taxes): Rental income on primary residence, mortgage interest deductions, robby robby
mortgage interest deductions, robby robby, casualty losses: Robby, There are different tax implications for renting your home for more or less than a total of 15 days each year. If you rent your principal residence to others for fewer than fifteen days per year, any rental income you derive is not considered taxable...

Tax Law (Questions About Taxes): Rental income, irs pub 527, residential rental property
irs pub 527, residential rental property, rental expenses: Hi Judy, You could tell him that when he reports his rental income he can deduct his rental expenses including depreciation on the house. He could actually end up with a loss which would offset up to $25,000 of his other income. Get him a copy of IRS...

Tax Law (Questions About Taxes): Rental Mobile Home loss from tenants, www irs gov, leasing professional
www irs gov, leasing professional, red flags: Hi, Your rental income and expenses should be reported on Schedule E rather than Schedule C since this is a residential rental. You can report a loss on Schedule E of up to $25,000 that can be used to offset other income. Get the form and instructions...

Tax Law (Questions About Taxes): Rental Mortgage Interest Tax Deduction, mortgage interest deduction, mortgage interest tax deduction
mortgage interest deduction, mortgage interest tax deduction, real estate tax: Hi, You split the mortgage interest and real estate tax according to the size of each unit. If they re both the same size, you claim half on Schedule E and half on Schedule A. Square footage is the easiest and most accurate way to determine the percentage...

Tax Law (Questions About Taxes): Rental of our Primary Residence, rental losses, passive losses
rental losses, passive losses, adjusted gross income: Priya, You would use Schedule E to report the rental income on your property. You will still be able to deduct mortgage interest and real estate taxes, but not as itemized deductions. Those deductions and others such as repairs, insurance, utilities,...

Tax Law (Questions About Taxes): Rental Prop. Capital Gains, form 3115, rental prop
form 3115, rental prop, hi adam: Hi Adam. It can be adjusted using form 3115, but you will pay taxes now on what was deducted then. If I were you, I would put your return on extension for 2006 and see a tax professional that understands over and under claimed depreciation. If you...

Tax Law (Questions About Taxes): Rental Properety - Tax consequences, marginal tax rate, tax evasion
marginal tax rate, tax evasion, tax consequences: Robert, Thanks for your question. You are very perceptive. The real estate agent is wrong. You are totally correct, you must live in the house as your main home for 24 of the past 60 months in order to avoid taxes on your gain. The other alternative...

Tax Law (Questions About Taxes): Rental Property, daughter graduates, depreciation schedule
daughter graduates, depreciation schedule, interest property: Dear Dan, YES, If you have the intention of making a profit and you charge Fair Market Value for rent based on the going rate for that area, then you will use 1040-schedule-E and show the rental income from both occupants.... You will depreciate the condo...

Tax Law (Questions About Taxes): Rental Property, publication 527, rental property
publication 527, rental property, depreciation: If 50% is rented out and 50% is yours, then you depreciate 50% of the entire building (not land ever) and 100% of things that are in the rented unit. So you don t depreciate your stove for example, but you do your rental unit stove by 100%. Helen,...

Tax Law (Questions About Taxes): Rental Property, publication 527, sqare feet
publication 527, sqare feet, proportionate share: Hi, If the 2 flats are equal in size you depreciate 50% of the building. If they are unequal you depreciate whatever percentage it works out to be. For example if your unit is 2000 sqare feet and the other is 1200 square feet you would depreciate 37 1/2%...

Tax Law (Questions About Taxes): Rental Property, american citizenship, property question
american citizenship, property question, europe thanks: If you retain your American citizenship, you are subject to taxation on your worldwide income. If you do not retain citizenship, your AGI is based on whatever income you have - however the rules regarding rental property may be different for a non resident...

Tax Law (Questions About Taxes): Rental Property, tax professional, capital gain
tax professional, capital gain, rental property: Dear Spencer, Other than having to recapture the depreciation that you have taken on the rental which may even increase the capital gain, I can t think of any more... However, I do not know all the facts and how the tax returns have been filed in the...

Tax Law (Questions About Taxes): Rental Property, carpet tile, irs gov
carpet tile, irs gov, income cap: Dear Mike, Any MAJOR expenses like carpet, tile, A/C and heating units, appliances, etc MUST be depreciated just like the depreciation on the rental house itself at 27 1/2 years... Maintenaance and simple repairs like for plumbers, or supplies for cleaning...

Tax Law (Questions About Taxes): Rental Property, residential rental property, insurance repairs
residential rental property, insurance repairs, stancil: Jhay, Thanks for your question. No, you cannot deduct your mortgage payment. However, you may deduct the interest paid on the mortgage and depreciation on the house. In addition, you may deduct any other expenses associated with the rental property,...

Tax Law (Questions About Taxes): Rental Property, return answer, work sheets
return answer, work sheets, rental property: usually housing is depreciated over 27.5 years (since 1986) so if you multipy last years number by 27.5 you might get the cost as to how much is depreciated you should be able to get the date they started renting from your parents ( of course they might have...

Tax Law (Questions About Taxes): Rental Property, stancil, rental payments
stancil, rental payments, wise choice: Kate, Please forgive me if this answer arrives twice. The allexperts web site is messed up and says I haven t responded to this question, although I have sent an answer. Please use this answer, as I have included more detail than in my previous one. ...

Tax Law (Questions About Taxes): Rental Property, upstairs portion, capital gains tax
upstairs portion, capital gains tax, dear brian: Dear Brian, First of all the windows and siding that you are adding are IMRPOVEMENTS and NOT direct expenses that you can take on either your 1040 or the 1040-schedule-E )rental form)..... You should not start renting this upstairs till ALL improvements...

Tax Law (Questions About Taxes): Rental Property, maximum exclusion, rv park
maximum exclusion, rv park, school question: Janice, Thanks for your question. You can only gain by claiming them as renters if you charge them rent at fair market value. If you charge less, the position of the IRS is that you are not in it for profit and therefore do not have a legitimate rental...

Tax Law (Questions About Taxes): Rental Property Business, rental property business, passive activity losses
rental property business, passive activity losses, denise thanks: Hi Denise Thanks for the question Unfortunately there is no way to by bypass the passive activity losses. All other forms of business except a C-Corp are pass through entities that you report on sch E. A C-corp will not pass those losses on to you,...

Tax Law (Questions About Taxes): Rental Property and Capital Gains, time adam, dunton
time adam, dunton, term gain: Hi, You can amend all the returns and pay whatever income tax might be due because of the smaller amount of expenses to deduct from the rental. If your rental was showing a net loss in any of the years, it s possible there would be no income tax due if...

Tax Law (Questions About Taxes): Rental Property Deductions, debt loss, tax allowance
debt loss, tax allowance, bad debt: Hi Larry, Lost income is not deductible because you never paid tax on the income. A bad debt could be deductible if you had included the income in a prior year s return (for example a check was given to you near the end of the year and you included it...

Tax Law (Questions About Taxes): Rental Property Depreciation, rental property depreciation, federal tax forms
rental property depreciation, federal tax forms, 2005 federal tax forms: Hi, They might flag it as an error but the important thing is you will have to calculate your gain as though you had taken the depreciation. If you haven t been claiming depreciation you should amend your returns to claim it. You can still fine amendments...

Tax Law (Questions About Taxes): Rental Property Depreciation, irs publication 527, rental property depreciation
irs publication 527, rental property depreciation, macrs depreciation: Mike, Thanks for your question. Yes, depreciation is very much worth computing, for two reasons. First, it will result in a significant decrease in your taxes. Second, if and when you sell the property, the government requires that you reduce your...

Tax Law (Questions About Taxes): Rental Property depreciation, rental property depreciation, capital gains tax
rental property depreciation, capital gains tax, stancil: Jason, Thanks for your question. Yes, you are missing something. When you sell the house and you are qualified to exclude the gain due to it being your principal residence you must pay tax on the amount of gain equal to the depreciation taken when it...

Tax Law (Questions About Taxes): Rental Property Expenses, rental property in florida, insurance mortgage
rental property in florida, insurance mortgage, real estate taxes: to the extent that you have income you can write off against it the expenses you list but note the furniture and moving it to Fl needs to be depreciated over a 5 year life if this activity results in a loss you may not be able to deduct the loss.other expenses...

Tax Law (Questions About Taxes): Rental Property Expenses, passive losses, passive activity
passive losses, passive activity, business loss: Micheal: Unfortunately, redeeding the property to the LLC or reporting the income/loss to the LLC will not change how much you can deduct any more than reporting it on schedule E of your 1040. When the irs considers deductible losses, the first question...

Tax Law (Questions About Taxes): Rental Property Expenses, rental expenses, carpet cleaning
rental expenses, carpet cleaning, rental property: Hi, Technically if you are no longer offerring the home for rental, expenses should not be claimed especially if there is a long delay. I would have the work done immediately after the tenants leave and claim it as a rental expense but that s just my opinion....

Tax Law (Questions About Taxes): Rental Property, Improvements and Capital Gain, depreciation schedule, property improvements
depreciation schedule, property improvements, substantial capital: First of all, you cannot sell and buy, you must exchange within the time frames allowed. The minute you touch the money, you blow the exchange. Your taxes are based on the depreciation, which would be 27K plus the rolled depr of 45K. Make sure you have...

Tax Law (Questions About Taxes): Rental Property Income, property mgt, liability purposes
property mgt, liability purposes, management decisions: Hi, I am not a big fan of LLCs especially when it s one structure and you have insurance. From a tax standpoint the IRS doesn t recognize a single person LLC as an entity. Also in my state LLCs have to pay state taxes. Your state may have different rules....

Tax Law (Questions About Taxes): Rental Property LLC Protection, personal tax return, personal assets
personal tax return, personal assets, property mortgage: Karen, Placing a rental property in a LLC can protect your personal assets in the event the LLC is a party to a lawsuit. In order for your investment property to be considered a LLC asset, two things need to happen. 1. The title of the property must...

Tax Law (Questions About Taxes): Rental Property (LLC0, fed id, personal return
fed id, personal return, legal question: continue to file as you did in 2004 as you would be considered a joint venture (no separate tax form reqired) as to being an LLC that is a legal question (not tax) youd want to have if you are concerned with uninsured liability ! then you need to consult...

Tax Law (Questions About Taxes): Rental Property and the MAGI limits, real estate professionals, corporate taxation
real estate professionals, corporate taxation, active real estate: David, The loss would carry forward until used or until the property is sold. At that point, you could deduct the suspended losses. You could form a corporation, but that would subject you to corporate taxation and the losses may not benefit you personally....

Tax Law (Questions About Taxes): Rental Property Sale-Capital Gains, form 4797, capital improvements
form 4797, capital improvements, form 1099: A. J., Thanks for your question. You report this as a sale of business property on Form 4797. You will pay tax on your gain, which is determined by taking the proceeds from the sale and subtracting your adjusted basis. Your adjusted basis is your cost...

Tax Law (Questions About Taxes): Rental Property Sale, stancil, adjusted basis
stancil, adjusted basis, rental period: Joyce, Thanks for your question. No, you cannot take a loss based on the fair market value. To determine your gain or loss you start with your basis (normally your purchase price)then subtract any depreciation that you were allowed to take on the...

Tax Law (Questions About Taxes): Rental Property Schedule E allowable expenses, home heating oil, vacant apartment
home heating oil, vacant apartment, business checking account: AJ, Thanks for your question. Yes, you can deduct all those expenses, presuming that the apartment was held for rent even though it was vacant. If you were not attempting to rent it, the items are not deductible for the period in which you were not...

Tax Law (Questions About Taxes): Rental Property or Second Home? - Capital Gains, new york apartment, cooperative apartment
new york apartment, cooperative apartment, cooperative apartments: Lara, Thanks for your question. The issue is not can you call it a second home or a rental. When you rented the property, you were allowed to take depreciation. The depreciation portion is what will be taxed at ordinary rates. Any depreciation...

Tax Law (Questions About Taxes): Rental Property Selling costs, residential rental property, remodeling project
residential rental property, remodeling project, capital improvements: Hi, Capital improvements are added to the basis of the house. They would not be deductible expenses even if you were continuing to rent it. It sounds as though you did everything in a project which probably included capital improvements and repairs....

Tax Law (Questions About Taxes): Rental Property Selling costs, residential rental property, irs publication
residential rental property, irs publication, work thanx: Call IRS at 1-800-829-1040 to request the pub 573 be sent to you at no cost. You will list the remodeling as a capital improvement to the property. The repairs required for the sale will be deductible as well. You need not prorate since the remodeling...

Tax Law (Questions About Taxes): Rental Property sale, income tax returns, real estate taxes
income tax returns, real estate taxes, settlement statement: your original cost was the cash you put up plus any mortgage you took to finance the purchase you sale price is the amount of the sale contract before deducting the remaining mortgage payment However you should check into your situation as you moved...

Tax Law (Questions About Taxes): Rental Property Tax Law, passive activity losses, modified adjusted gross income
passive activity losses, modified adjusted gross income, adjusted gross income: P.J., Thanks for your question. That is not quite correct. A rental activity is defined by law as a passive activity. Losses on passive activities are limited. For an individual the loss limitation is $25,000 per year. However, this is further limited...

Tax Law (Questions About Taxes): Rental Property Taxes, relevant number, stancil
relevant number, stancil, current mortgage: Tracy, Thanks for your question. Your financing of the house is merely the amount you owe or have borrowed on the house. What you owe on the house is not your basis. The relevant number is what you paid for the house when you purchased it - the contract...

Tax Law (Questions About Taxes): Rental Property, schedule a itemized deductions, www irs gov
schedule a itemized deductions, www irs gov, income losses: You will list the income on line 21 of Form 1040 with the notation RNFP on the line to the left. Any expenses up to the amount of income will be reported on Schedule A with the same notation. Expenses must be taked in a specific order as listed in Pub...

Tax Law (Questions About Taxes): Rental Proptery, deprecation, rental property
deprecation, rental property, depreciation: Hi Sandy depreciation is 27.5 years for residential property or 31 years for commercial property you are correct on the method of computing . However most likely you will only be able to deduct it against the rental income. Yes all depreciating works...

Tax Law (Questions About Taxes): Rental property, irs gov, publication 523
irs gov, publication 523, cost basis: Dear Shirley, The reinvestment thing went out 10 years ago..... Since this is NOT you MAIN HOME, then you will have to pay taxes on the income that is Sale Price less cost basis of this home (including improvements and costs of selling the house..... Go...

Tax Law (Questions About Taxes): Rental property, adjusted gross income, passive losses
adjusted gross income, passive losses, profit motive: Janet, Thanks for your question. Two factors to consider here. First, if your adjusted gross income exceeds $150,000 none of the passive losses from the rental activity will be deductible. Between $100,000 and $150,000 the $25,000 maximum deduction...

Tax Law (Questions About Taxes): Rental property, stancil, tennants
stancil, tennants, itemized deductions: Chris, Thanks for your question. You will need to classify it as a rental, just like your other rental unit, just take 2/3 of the expenses. The other 1/3 of the mortgage interest and taxes can be deducted as itemized deductions on Schedule A. Hope...

Tax Law (Questions About Taxes): Rental property expenses, full time job, capital improvements
full time job, capital improvements, repair materials: Hi, Any repairs done before it is a rental are non-deductible. Once it is a rental you can deduct the cost of repairs as an expense. If you make any capital improvements such as a new roof or new furnace or a remodeling project, you can add those to...

Tax Law (Questions About Taxes): Rental property expenses, full time job, material expenses
full time job, material expenses, capital improvements: Randal, Thanks for your question. First, you must distinguish between ordinary repairs and capital improvements. Since these expenses are incurred to get it ready for rental, most of them probably would add to your basis and be depreciated. Others can...

Tax Law (Questions About Taxes): Rental property expenses, itemized deduction, e family
itemized deduction, e family, stancil: Darin, Thanks for your question. You can deduct only expenses that relate to the rental. Anything related to the one for personal use does not give rise to a deduction. However, you can deduct interest and taxes on that house as an itemized deduction...

Tax Law (Questions About Taxes): Rental property mortgage interest deduction, mortgage interest deductions, mortgage interest deduction
mortgage interest deductions, mortgage interest deduction, self employment tax: Hi, Generally it doesn t matter how you spend the proceeds from a loan on your home. But, now that you mention it, the home on which you borrowed the money was a rental property at the time of the loan. Since income from residential rental property is...

Tax Law (Questions About Taxes): Rental property tax deduction, property tax deduction, adjusted gross income
property tax deduction, adjusted gross income, insurance repairs: Hi, He will report his rental income and expenses on Schedule E. His expenses will include mortgage interest, real estate taxes, insurance, repairs, maintenance, utilities, lawn care, pool care and depreciation as well as any other reasonable and necessary...

Tax Law (Questions About Taxes): Rental property, residential rental property, tenent
residential rental property, tenent, management fees: Bob, Thanks for your question. Anything that did not actually happen is fraud, pure and simple. If he did not pay management fees, if the tenant did not perform services, etc., than including anything like that on the return is fraud. Presuming that...

Tax Law (Questions About Taxes): Rental question, adjusted gross income, mortgage income
adjusted gross income, mortgage income, mortgage note: Wen, Thanks for your question. Basically, you account for it as two separate properties. Split the mortgage interest, taxes, and other common items allocating a portion to the rental. The interest and taxes related to your residence can be deducted...

Tax Law (Questions About Taxes): Rental Sale, www irs gov, copies of tax returns
www irs gov, copies of tax returns, long term capital gain: Hi, I assume that they have been filing tax returns reporting their rental income and expenses, including depreciation. If they didn t keep copies they could get copies from the IRS for a fee. The problem with assuming a $0 basis is that gain attributable...

Tax Law (Questions About Taxes): Rental sale, being a landlord, capital gain
being a landlord, capital gain, rental house: Robert, It s true you will have to recapture the depreciation as taxable income. The tax rate on depreciation recapture is maxed at 25%. You will also have tax on the capital gain. The tax rate on the capital gain is maxed at 15%. There aren t any other...

Tax Law (Questions About Taxes): Rental, snow blower, depreciation
snow blower, depreciation, capital gains: Joe, There is nothing you need to do currently about the depreciation. It just stops once you convert the property from rental to personal. The depreciation lowers the basis of the apartment and equipment. This will only become a factor when you sell...

Tax Law (Questions About Taxes): Renters filing under Parents house and Church Donations, church donations, church donation
church donations, church donation, itemized deduction: R, Thanks for your question. Being a renter and having your mail sent to another address does not directly affect your ability to take a deduction for your charitable contributions. However, if your charitable contribution are your only itemized deduction...

Tax Law (Questions About Taxes): Renters, www irs gov, irs website
www irs gov, irs website, tax time: Hi Christine, You report your rental income and expenses on Schedule E. One of your expenses is depreciation of the rental portion of the house. I suggest you get the form and instructions which you can download and print at the IRS website www.irs.gov....

Tax Law (Questions About Taxes): Renting below fair market value, miscellaneous itemized deductions, rental expenses
miscellaneous itemized deductions, rental expenses, stancil: C, Thanks for your question. In tax terms, that is considered renting not for profit. The rental revenues are shown on line 21 of the 1040, Other Income. Since you live in the structure, you can deduct the applicable portion of mortgage interest and...

Tax Law (Questions About Taxes): Renting My Home, principal residence, 250k
principal residence, 250k, california home: Yes the rent will be income to you however you will be able to deduct any expenses incurred such as repairs etc you will also be able to depreciate the property at cost less cost of land over a 27.5 year life. PS. If the CA home was your principal residence...

Tax Law (Questions About Taxes): Renting from my in-laws, tax losses, tax penalties
tax losses, tax penalties, vacation property: Patty, There is no requirement that a second home needs to be a certain distance from the primary home. In the eyes of the IRS, you could live in the in-laws second home the same as the primary home. There is no requirement for collecting rent, unless...

Tax Law (Questions About Taxes): Renting a recently inherited home, long term capital gain, gross rents
long term capital gain, gross rents, sole trustee: Allyson, If you decide to sell the property, you would only pay tax on the capital gain. The capital gain is the difference between the sales price and the property s fair market value as of the date of your father s death. Selling the property now is...

Tax Law (Questions About Taxes): Repaid wages, irs publication 17, loan repayment program
irs publication 17, loan repayment program, student loan repayment program: Angela, Thanks for your question. If the amount of the repayment is under $3,000 you can deduct the repayment as a miscellaneous itemized deduction not subject to the 2% limitation. If the amount was greater than $3,000 you have the choice of deducting...

Tax Law (Questions About Taxes): Repayment of Prior Wages, irs publication 525, higher tax bracket
irs publication 525, higher tax bracket, state income taxes: Roger, Thanks for your question. You cannot take a standard deduction and the $15K. However, for repayments in excess of $3,000 you may be eligible to take a credit. It is rather complicated and much too long for this forum, but basically, 1) you...

Tax Law (Questions About Taxes): Repayment of prior year wages in CA, ca sdi, state tax return
ca sdi, state tax return, state withholding: You need to ask your employer how did he reflect your repayment if he reduced your w2 income in 2005 and your circumstances were similar to 2004 ten you should be even if not you might have to ask for a corrected 2004 w2 and file an ammended return. if...

Tax Law (Questions About Taxes): Repayment of prior year wages, payroll tax return, state tax return
payroll tax return, state tax return, income tax return: Peter, Thanks for your question. The repayment is shown as a Miscellaneous Itemized Deduction on Schedule A and is not subject to the 2% limitation. The recovery of Social Security taxes should be handled by your employer in that he can report a...

Tax Law (Questions About Taxes): Form 8332, etc..., form 8332, form 2120
form 8332, form 2120, confusing question: Nathan, Thanks for your question. Form 8332 is designed to allow the custodial parent to release the dependency exemption to the non custodial parent. He did not live with your mother for over half the year, and she did not provide over half his support....

Tax Law (Questions About Taxes): Reporting 1099-Misc income, line 7, www irs gov, filing an amended return
www irs gov, filing an amended return, 1099 misc: Jodi, You should be reporting this income on Schedule C (or C-EZ) or on line 21 of Form 1040. The net amount from Schedule C or the amount reported on line 21 should be reflected on Schedule SE. There are times when reporting the 1099-MISC on line 7...

Tax Law (Questions About Taxes): Reporting Babysitting Income, dependent care expenses, self employment tax
dependent care expenses, self employment tax, stancil: Noel, Thanks for your question. They may provide you with a 1099-Misc, but it is not a required form for you to file your taxes. You should report your income, along any expenses incurred in earning that income on Schedule C. You will also need...

Tax Law (Questions About Taxes): Reporting bonus error, stancil, w2
stancil, w2, cpa: Kellie, Thanks for your question. I really can t determine if you will owe anything or not. I would have to know the amount of taxes withheld, your total income, your deductions and exemptions, filing status, and credits available. John Stancil,...

Tax Law (Questions About Taxes): Reporting Corporate Business Losses, dividend distributions, limited liability company
dividend distributions, limited liability company, delaware limited liability company: John Paul, Thanks for your question. If the LLC chose to be taxed as a partnership or S Corp, you should receive a K-1 for your share of the gains or losses and it would be reported on Schedule E. If they chose to be taxed as a C corporation,...

Tax Law (Questions About Taxes): Reporting my consulting earnings, irs web site, form 1040 schedule se
irs web site, form 1040 schedule se, www irs gov: Dear Lisa, You can figure out how to estimate your taxes by going to www.irs.gov and click on forms/publications and then forms and then scroll down to form 1040ES.... Print out the forms and the instructions and read them carefully and also figure the...

Tax Law (Questions About Taxes): Reporting error & Amended returns, federal tax return, factual information
federal tax return, factual information, tax liability: Dear Glen, You can ONLY amend 2002 return IF you made errors like you did for 2001.... For 2003, file it correctly using the factual information and then you will not have to file an amended since the original 2003 will be correct..... As for the state,...

Tax Law (Questions About Taxes): Reporting foreign tax paid, form 1099, foreign taxes
form 1099, foreign taxes, international terrorism: Hi Jane, I don t use Turbo Tax but clearly it is looking for a dollar amount so it can calculate your foreign tax credit. The rate for the foreign tax credit is determined by the amount of foreign tax not to exceed US tax multiplied by the ratio of foreign...

Tax Law (Questions About Taxes): Reporting gross proceeds of a mutal fund that didn't sell., mutal fund, gross proceeds
mutal fund, gross proceeds, stancil: Sue, Thanks for your question. You need to check with your mutual fund company. The fact that you got a 1099-B is an indication that it did sell, at least according to their records. If it sold, it is a Schedule D transaction. Hope this helps. ...

Tax Law (Questions About Taxes): Reporting Income from Sale of Property required by Utility, income tax form, easment
income tax form, easment, sewer district: Dear Stephen, It is reported on the schedule-D of the 1040 and you should receive a 1099-S showing the sale price and then you figure the cost basis..... Since this is NOT a total sale of property and only a partcial sale you should break even based on...

Tax Law (Questions About Taxes): Reporting Income, www irs gov, irs forms
www irs gov, irs forms, self employment taxes: Schedule C is one of the many tax forms associated with the 1040. It is where you report income and expenses from a business activity in which you are self-employed. In the eyes of the IRS you are operating a business. You can get all IRS forms at www.irs.gov....

Tax Law (Questions About Taxes): Reporting income from babysitting, social security number, self employment taxes
social security number, self employment taxes, stancil: Vicki, Thanks for your question. Just because a 1099 is not issued does not mean the income is not taxable. All earned income is taxable and her earnings will also be subject to self-employment taxes as well. She will need to file a Schedule C and...

Tax Law (Questions About Taxes): Reporting K1 info on 1040, return thanks, virginia tax
return thanks, virginia tax, state return: Tobey, Yes, you do need to include Schedule E (second page) to both the Federal and Virginia tax returns. The IRS has been doing a better job of tracking K-1s to tax returns for the last couple of years. I realize there is no amount for income on the...

Tax Law (Questions About Taxes): Reporting not-yet-known real estate loss, real estate investments, lien holders
real estate investments, lien holders, question thanks: You are confusing the loss on the sale of the property with your loss on your investment in the LLC. The LLC has sold the property - most likely it is a known amount what the property was sold for. Assuming the LLC is being taxed as a partnership, the LLC...

Tax Law (Questions About Taxes): Reporting a Loss of Mutual fund sale, cost basis, mutual fund company
cost basis, mutual fund company, mutual funds: Hi Jim, Your cost basis is whatever you paid for the mutual funds plus what you paid for shares purchased with reinvested dividends. If your mutual fund company reported that you had a loss they must have the cost information as well so if you aren t sure...

Tax Law (Questions About Taxes): Reporting loss on distribution from 401k _after tax_ account, 401k plans, form 8606
401k plans, form 8606, 1099r: Claim the loss on Schedule A(subject to 2% of AGI reduction) only when you have distributed ALL of the funds from ALL 401K plans. Since Code 1 is on your 1099R, you are also subject to the additional 10% penalty tax unless you qualify for a exception. ...

Tax Law (Questions About Taxes): Reporting Sells from Ebay for Income Taxes, ebay fees, quick books
ebay fees, quick books, ebay: Amy: Yes you must report the sales as income. To offset the sales will be the cost of doing business that will be the cost of the items sold. How much you paid for the shoes, the sales fees to ebay, paypal fees, the internet cost and any other cost you...

Tax Law (Questions About Taxes): Reporting subcontractor income, correct assumption, statement of earnings
correct assumption, statement of earnings, fitness instructor: Erin, first of all, let s go back to last year. If you made a dollar, you needed to claim that dollar, so you may want to go back and amend your return. You will file a Sch C and SE with your 1040. The Sch C will have your income and expenses on it. ...

Tax Law (Questions About Taxes): Reporting vehicles..., standard mileage rate, sole proprietorship
standard mileage rate, sole proprietorship, melissa jones: Dear Melissa, You can NOT complete this 2001 return until you know for SURE what was done with the ORIGINAL pickup truck that he bought and depreciated etc for 2000..... This truck would then have to be treated as a sale/trade-in for the NEW CAR..... ...

Tax Law (Questions About Taxes): Repossessed property, repossessed property, late date
repossessed property, late date, ustreas: Hi Brian Publication 537 available at WWW.IRS.ustreas.gov relates to your situation it has examples that apply to various situation and your options unfortunately your election to opt out of the instalment sale method is not reversible at this late date....

Tax Law (Questions About Taxes): Repossession of property sold on installment, mark thanks, taxable gain
mark thanks, taxable gain, stancil: Mark, Thanks for your question. You do not have a recognized gain on the repossession. The realized gain will be used to adjust your basis in the house. Any costs of the repo would add to your basis. If, and when, you sell the house again, use the...

Tax Law (Questions About Taxes): Repossession of real estate, irs pub, form 6252
irs pub, form 6252, form 4797: Hi, That s a darned good question! Actually I was thinking of either Schedule D or Form 4797. On Form 6252 it would have to be in Part II but the calculations don t seem to fit. The instructions for the form weren t helpful to me and neither was the...

Tax Law (Questions About Taxes): Requesting Exrtension To File, mail thanks, e filing
mail thanks, e filing, stancil: Anne, Thanks for your question. At this point it probably does not matter when you file, from the standpoint of creating an audit red flag. Getting an extension itself is not necessarily a red flag, but having to pay in an additional $5,000, coupled...

Tax Law (Questions About Taxes): Required Minimum Distribution, form 5329, mrds
form 5329, mrds, minimum distribution: Hi, For starters take the MRDs required for previous years as soon as possible. You are subject to a 50% penalty on each MRD that was not taken but you may be able to get this excise tax waived if you establish that the shortfall in distributions was due...

Tax Law (Questions About Taxes): Required Professional Training, employee business expenses, continuing education courses
employee business expenses, continuing education courses, itemized deduction: Gary: Your continuing education is tax deductible either on Form 1040 Schedule A or Schedule C. If you are an independent contractor (i.e., they don t withhold taxes for you) for your R.E. Broker and receive a 1099, you report all of your income on schedule...

Tax Law (Questions About Taxes): Resendial exemption 1.5 yrs, unforeseen circumstance, unforeseen circumstances
unforeseen circumstance, unforeseen circumstances, new girl: Hi Joe, To qualify for a reduced exclusion you need to have moved for reasons of employment, health or certain unforeseen circumstances. The arrival of a new child could be considered an unforeseen circumstance. The amount of the reduced exclusion is...

Tax Law (Questions About Taxes): Residence of California, Working in Michigan, filing tax returns, dual residency
filing tax returns, dual residency, california residency: If you have been in MI over a year, MI is your tax home. Thus, none of your deductions for flying to home are deductible. You have a dual residency, MI and CA and you need to look at the tax laws of those 2 states to see how to file. I do not practice...

Tax Law (Questions About Taxes): Residence exclusion, www irs gov, publication 523
www irs gov, publication 523, married couple: Dear Koma, Once a spouse dies, the other spouse is considered SINGLE and therefore, your exclusion would be $250,000.00...... I am not familiar with the term Step-up basis, but publication 523 should help you with that and you can get this publication...

Tax Law (Questions About Taxes): Residency Filing, single mom, stancil
single mom, stancil, state tax: Elissa, Thanks for your question. What you must do is file a part year resident form for Kentucky and for Ohio. Each state will tax you on your income while a resident of that state. Whether you get a refund depends on how much was withheld and you tax...

Tax Law (Questions About Taxes): Residency, florida property taxes, state pensions
florida property taxes, state pensions, property taxes in florida: to be a Fla resident you must reside in the state for more than 183 days to qulify for the homestaead you will be asked to sign a statement stating that under oath.if yopu are a Fla resident the good news is that Fla does not have an Income tax. As far...

Tax Law (Questions About Taxes): Resident of CA work in CO, stancil, oil industry
stancil, oil industry, cpa: Kim, Thanks for your question. Laws vary from state to state, but most likely he will have to file a non resident form in Colorado and a resident form in California. He will probably be allowed a credit in CA for taxes paid to CO. Hope this helps....

Tax Law (Questions About Taxes): Residents of 2 different states, spouse works, state returns
spouse works, state returns, stancil: Charlie, Thanks for your question. Sure, they can file a joint federal return. The IRS doesn t care where you live. Depending on the states involved there may be some issues with the state returns, however. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Restricted Stock Units - how to report?, restricted stock units, tax preparation software
restricted stock units, tax preparation software, autosell: Ian: I believe that its all considered ordinary income when it sells and is included in you regular wages and also the withholding tax has the amount going to pay taxes already reported. I do not believe that its considered income until it sells. ...

Tax Law (Questions About Taxes): Retention Bonus, retention bonus, stancil
retention bonus, stancil, lump sum: Edward, Thanks for your question. The money is taxable in whatever year it is received, so postponing its receipt would postpone the tax. However, since this is taxed at regular rates, you need to look at your total income for that year to see what...

Tax Law (Questions About Taxes): Retirement Accounts, sole proprietors, sep ira
sole proprietors, sep ira, investment counselor: Hi, Yes, you can put away more with a 401(k)plan for sole proprietors. I know that Charles Schwab offers these plans so undoubtedly other brokerage firms do as well. Schwab s website has a lot of information on the subject so that might be a good place...

Tax Law (Questions About Taxes): Retirement Contributions, non deductible ira, www irs gov
non deductible ira, www irs gov, tax literature: Since you were covered for a day in 2006, you can always contribute to an IRA (and the whole amount, nothing needs prorated), HOWEVER, you must look at your income level and filing status to see if you can deduct it or not. See pub 17 at www.irs.gov for...

Tax Law (Questions About Taxes): Retirement income limit for tax, social security benefits, excess earnings
social security benefits, excess earnings, social securtiy: Hi, When half of her social security plus all her other income exceeds $25,000 (assuming she is single), part of her social security will be taxed. But if she is under the full retirement age, her social security benefits could be reduced by excess earnings....

Tax Law (Questions About Taxes): Retirement Plan Participation, left hand column, irs gov
left hand column, irs gov, plan participation: Dear Ron, I am NOT wrong and neither is the IRS... You are WANTING things to go your way and point of view and since YOU seem to have this letter, and since the IRS is questioning your IRA contribution, I would suggest that you send a copy of this letter...

Tax Law (Questions About Taxes): Retirement penaltiy, marginal tax rate, withdrawals
marginal tax rate, withdrawals, ira: First, I assume you are talking about IRA s. The exception applies to IRA s and not other retirement plans. If so, each of you may withdraw $10,000. Any amount over $10,000 for either of you, will be subject to the penalty. So in your example, you would pay...

Tax Law (Questions About Taxes): Retirement & taxes, security retirement benefits, social security retirement
security retirement benefits, social security retirement, form 1040es: Dear MBW, You do NOT pay s.s. or medicare on your retirement income.... However, if you or your wife are also going to be drawing Social Security Retirement benefits PLUS the teacher retirement income, then SOME or ALL of your s.s. will be taxable.... ...

Tax Law (Questions About Taxes): Retirement, adjusted gross income, state retirement
adjusted gross income, state retirement, retirement account: Hi, The withholding is treated just as withholding from wages. The entire amount goes on line 64. The penalty is a separate issue and goes on line 60. You ll add the penalty to the tax on your total taxable income (which includes the amount of the distribution)...

Tax Law (Questions About Taxes): Returns, stancil, question right
stancil, question right, taxable income: Kyle, Thanks for your question. If you are single claiming yourself as a dependent, you can earn up to $8,450 without having to file. Above that amount you will pay some tax. I would add that your under the table pay is subject to taxation. Hope...

Tax Law (Questions About Taxes): Revenue Posting ? - Sole Proprietorship, sole proprietorship, sole proprietor
sole proprietorship, sole proprietor, postdated check: The date the check was made available to you is the date it should be included in your tax return. If you knowingly accepted a postdated check, you have unofficially accepted the check effective that date and should treat it in that manner. If you refuse...

Tax Law (Questions About Taxes): Revenue Sharing Investment Transfer, capital gains tax rate, long term capital gains tax rate
capital gains tax rate, long term capital gains tax rate, revenue participation: Lee I had not heard from you, my email is expert !at! owelesstax.com I m dashing off a quick answer because I have been out of the office and time keeps marching. I d like to answer this in far more detail, so call me and I ll go through it. 1. Yes,...

Tax Law (Questions About Taxes): Review of past tax filings, 401k funds, colon cancer
401k funds, colon cancer, turbo tax: Hi John, If only for your peace of mind I think you should have a tax professional review your returns. Last year H&R Block offered a free review of past years tax returns. If they don t find anything you overlooked you pay nothing. Of course if they...

Tax Law (Questions About Taxes): RMD's & Roth Ira, minimum distributions, roth ira
minimum distributions, roth ira, s roth: Hi Dave, Depending upon how the plan is written, the 73 year old may not have to start taking minimum distributions until retirement. If the plan doesn t allow for that, distributions should have begun at age 70 1/2. The amount of the distribution is...

Tax Law (Questions About Taxes): ROTH IRA DISTRIBUTION, ira distribution, bcck
ira distribution, bcck, roth ira: Yes, three years. So right now, 2006, 2005 and 2004 are fixable. And Fidelity was in the wrong if the account was with them since you opened it as they should have known your contributions. But if you had put in 10K in contributions, none of it should have...

Tax Law (Questions About Taxes): Rock Band, personal income, rock band
personal income, rock band, irs: Is the band profitable? If not, trying to legitimize it for deductions would ultimately result in penalties and interest. The IRS has the right to recharacterize a business that constantly loses money as a hobby and then reclassify all of the claimed expenses...

Tax Law (Questions About Taxes): Rolling Traditional IRA Dist. to Roth IRA, traditional ira distributions, ira contribution limit
traditional ira distributions, ira contribution limit, roth ira contribution: Don I am as baffled by this as you are probably if you ask one or the other plan s administrator they would be able to answer your question . However I am always surprised that anyone one would wish to pay a tax to roll funds from an IRA to a Roth IRA....

Tax Law (Questions About Taxes): Rollover Distribution, retirement specialist, rollover ira
retirement specialist, rollover ira, retirement account: Hi Bill, Report the total amount on line 16a of your 1040 and the taxable amount on line 16b regardless of the G code. The bank will be reporting to the IRS the amount they received for your rollover IRA and the IRS would spot the difference Regards,...

Tax Law (Questions About Taxes): Roth Conversion, roth conversions, paying estimated taxes
roth conversions, paying estimated taxes, roth conversion: Hi Tom if your dad were to pay all the tax due for 2007 by way of the estimated tax payment due Jan 15 2008 he would be meeting one of the safe harbors on the form 2210 penalty calculation so there would be no penalty. I Suggest that you get a copy of the...

Tax Law (Questions About Taxes): Roth distribution of my contribution, adjusted gross income, 1099r
adjusted gross income, 1099r, medical bill: Dear Gary, You have to have medical bill over the 7.5% of your adjusted gross income before this withdrawal is NOT a penalty withdrawal.... It will ALWAYS be an income item, but the way it is figured on your 1040-schedule-A (medical expenses) will determine...

Tax Law (Questions About Taxes): Roth IRA, ira custodian, irs pub
ira custodian, irs pub, mail drop: Hi Cindy, They sound reliable to me and they are upfront about the prohibited transactions which lends credibility. They have a physical location, although it could be a mail drop. Before investing I would contact the Chamber of Commerce in Elria Ohio....

Tax Law (Questions About Taxes): Roth IRA, roth ira account, traditional ira
roth ira account, traditional ira, initial contribution: Hi, You don t need to contribute for 5 years. You only need to leave the initial contribution in place for 5 years. The 5 year clock starts ticking in the year you make your first contribution. Subsequent contributions do not have to be in the Roth for...

Tax Law (Questions About Taxes): Roth IRA, roth ira account, irs
roth ira account, irs, money: You do not need to contribute to the ROTH more than your original contribution. You can withdraw from the fund any of your contribution amounts at any time. The income earned by the fund must remain in the fund for 5 years in the case of a rollover to the...

Tax Law (Questions About Taxes): Roth IRA, roth ira account, al brown
roth ira account, al brown, stancil: Al, Thanks for your question. If you make a non-qualified withdrawal (under age 59 1/2 or disabled), the amount of your withdrawal that represents earnings is taxable, but the amount you contributed to the plan is not subject to tax. In addition to...

Tax Law (Questions About Taxes): Roth IRA, roth ira account, traditional ira
roth ira account, traditional ira, al brown: Hi, Unless you converted a Traditional IRA to a Roth less than 5 years ago, your Roth distributions are tax free. You said that you have had the Roth more than 5 years and you are over age 59 1/2. You didn t say if the Roth included a conversion from...

Tax Law (Questions About Taxes): Roth IRA, early withdrawal penalty, 5000 investment
early withdrawal penalty, 5000 investment, roth ira: David, Thanks for your question. Since you did not have the funds in the Roth for 5 years, you are subject to the 10% penalty. However, you are not subject to income tax on the amount of the withdrawal, as it was not previously deducted on your taxes....

Tax Law (Questions About Taxes): Roth IRA Accounts, money market account, roth ira
money market account, roth ira, brokerage account: Sid you can have the new broker roll over the funds to your your new Roth IRA without any tax consequences or if you take the cash then you will need to re deposit the money to you IRA in sixty days I recommend the first option[ it is easier and...

Tax Law (Questions About Taxes): Roth IRA Contribution, roth ira contribution, earned income exclusion
roth ira contribution, earned income exclusion, foreign earned income exclusion: Daniel, Assuming your adjusted gross income is under $110,000 (assuming you are single), you could make a Roth contribution based on the taxable earnings in excess of your foreign earned income exclusion. Please note, the adjusted gross income figure of...

Tax Law (Questions About Taxes): Roth IRA and college tuition, roth ira account, traditional ira
roth ira account, traditional ira, buying a new car: Woody, Thanks for your question. First, if it is a Roth, the amount of your contributions are not taxable, only the earnings from the investments are taxable. Secondly, if the Roth has not been established for 5 years, there will be a penalty. ...

Tax Law (Questions About Taxes): Roth IRA contributions, roth ira contributions, air force rotc
roth ira contributions, air force rotc, insurance agent: Hi Justin You need taxable income but you can accomplish the same results by purchasing an annuity most likely some sort of variable or universal annuity that guarantees your investment you should see an insurance agent. PS Thank you for your service from...

Tax Law (Questions About Taxes): Roth IRA distribution, ira distribution, roth ira
ira distribution, roth ira, medical bills: Hi Rick, You can take your contributions (the amount you paid taxes on) out of a Roth with no tax and no penalty. If you take out earnings and you re under 59 1/2 you will pay income tax at whatever rate your total income dictates plus a 10% penalty on...

Tax Law (Questions About Taxes): Roth IRA Early Sale, medical donations, adjusted gross income
medical donations, adjusted gross income, roth ira: No, you can withdraw the entire balance and close the account. I do not understand your statement If you answer tax ? Medical expenses cannot be carried over to a future year. Charitable contribution are limited in any one year to 50% of your adjusted...

Tax Law (Questions About Taxes): Roth IRA Excess Contributions, irs pub 590, ira custodian
irs pub 590, ira custodian, roth ira: Hello Call the IRA custodian administrator again and send them a certified letter return receipt. Tell them to characterize a certain amount for 2003 and characterize a certain for next year. Attach a statement to your form 1040 with your ssn on it and...

Tax Law (Questions About Taxes): Roth IRA rollover, irs pub 590, roth ira rollover
irs pub 590, roth ira rollover, irs website: Hi, When you convert a Traditional IRA to a Roth IRA you have to hold it 5 years and be over 59 1/2 before you can take a qualified distribution and not pay taxes or penalty. If a distribution is non-qualified there can be taxes and the 10% penaly. See...

Tax Law (Questions About Taxes): Roth IRA Withdrawal for Owner-Occupied Rental Property, ira withdrawal, roth ira
ira withdrawal, roth ira, traditional ira: Andy, Thanks for your question. You can withdraw your contributions without penalty. Because it was deposited as after tax money, it is not subject to income tax. The $10,000 is a one time withdrawal for a first time home buyer. It exempts the withdrawal...

Tax Law (Questions About Taxes): Roth IRA w/drawl, taxpreparer, roth ira
taxpreparer, roth ira, stancil: Steve, I don t cite code (too long and hard to look up), but the CCH U. S. Master Tax Guide paragraph 2180A states 1. Withdrawals are deemed to come first from contributions and contributions are not included in income. 2. The penalty applies to any...

Tax Law (Questions About Taxes): Roth IRA withdrawal - 1st time home buyer, ira withdrawal, 1st time home buyers
ira withdrawal, 1st time home buyers, roth ira: Roger, Thanks for your question. The first part of the distributions is considered to be contributions. Any earnings that are withdrawn will be subject to income tax. Withdrawals in excess of the $10,000 for first time homebuyers would be subject to...

Tax Law (Questions About Taxes): Roth-IRA, irs publication 590, www irs gov
irs publication 590, www irs gov, rollover ira: Hello, Yes, you can put money into the Roth IRA. If the 5 year holding period has passed on each conversion contribution then you could take distributions without penalty or tax. You may be required to pay tax on the earnings (e.g. interest or dividends)....

Tax Law (Questions About Taxes): Roth ira Followup, roth ira, form 5329
roth ira, form 5329, stancil: Lisa, Thanks for your question. You will owe taxes on the earnings of $3500 at ordinary income rates, which vary depending on your total taxable income. This can be between 10 and 35 percent. You will also owe a 10% penalty on the earnings distributed....

Tax Law (Questions About Taxes): Roth Question, irs gov, roth ira
irs gov, roth ira, traditional ira: Dear Mike, There are a LOT of rules and regulations regarding not having to pay the 10% penalty on early distributions from Roth IRA s and they are the same as a Traditional IRA.... Because I really don t know your entire situation or prior home purchases...

Tax Law (Questions About Taxes): Rules About Business Losses, business losses, publication 535
business losses, publication 535, arbitrary number: Bobby The 3 year is an arbitrary number I suggest that you look up the IRS www.irs.ustreas.gov for publication 535 and see if you meet the rules for a business rather than a hobby also you might want to file form 5213 also mentioned on the above...

Tax Law (Questions About Taxes): Rumored Change to Raise Inheritance Tax Ceiling, federal inheritance taxes, inheritance tax
federal inheritance taxes, inheritance tax, sunset provision: John, Thanks for your question. There are no federal inheritance taxes. The federal government has an estate tax, but no inheritance tax. The difference is that an estate tax is levied on the estate prior to distribution to the beneficiaries. An inheritance...

Tax Law (Questions About Taxes): RV tax deduction, private investigation business, mileage log
private investigation business, mileage log, business miles: Jim, You shouldn t have a problem deducting the business use of the RV. In order to protect your deduction, you will need to maintain a mileage log for business and personal miles. Your percentage of business miles versus the total miles driven will determine...

Tax Law (Questions About Taxes): RV as a vacation home, 5th wheel trailer, motor homes travel
5th wheel trailer, motor homes travel, folding campers: William, In order for a RV to save at tax time, it needs to pass the test of being a second home. To be considered a second home, all an RV needs is cooking, sleeping and bathroom facilities. Virtually all RV types-motor homes, travel trailers, truck...

Tax Law (Questions About Taxes): rate of bonus pay taxes withheld, federal tax rate, bonus pay
federal tax rate, bonus pay, bonus payments: Rebecca, Thanks for your question. There is no set rate for withholding on bonus payments. It depends on the amount of the bonus and the number of withholding allowances you take. However, some companies streamline it and just take a flat 20%. Hope...

Tax Law (Questions About Taxes): re: disabled & cc write off, debt forgiveness, business credit card
debt forgiveness, business credit card, credit card debt: Brenda: Your disability is paid in your name therefore it is considered income as any other disability would be considered income. Since you are a bookkeeper you know that if your husband files a separate return he may not be able to claims some deductions...

Tax Law (Questions About Taxes): re-filing past years taxes, mike thanks, stancil
mike thanks, stancil, previous years: Mike, Thanks for your question. Since it was a joint filing, you would have to sign an amended return for yourself filing as married, separate. He could file his married, separate return, but lacking your corresponding filing, the IRS would probably...

Tax Law (Questions About Taxes): re-filing past years taxes, felony crime, acceptable reason
felony crime, acceptable reason, 1040x: Dear Mike, IF you filed married filing joint she can not amend ANY tax return that you filed that way WITHOUT having your signature on the 1040X also..... Therefore, she can t do it without your knowledge or consent.... If she does file amended...

Tax Law (Questions About Taxes): re: financing the business, time share property, sole propietorship
time share property, sole propietorship, stancil: Nikki, Thanks for your question. You would contribute the property to the LLC and receive an ownership interest based on the value of the assets contributed to the business. On the books, debit the various asset accounts for their value and credit...

Tax Law (Questions About Taxes): re: forgiveness of debt, payoff period, unearned income
payoff period, unearned income, interest charges: Hi, You will declare the income in the year you are sent a 1099 by the credit card company(ies). Presumably that will be the last year of the payoff period. But until you receive that 1099 you don t have any forgiven debt to report. Regards, Carol...

Tax Law (Questions About Taxes): re: LLC, livingtrust, outstanding finance
livingtrust, outstanding finance, finance companies: I want it to be protect for from any lawsuits against myself personally, Even the charging order argument is moot and has been since the LP failed. Since you indirectly own it entirely the hostile side gets to take your ownership without affecting the...

Tax Law (Questions About Taxes): re: Reduced Maximum Home-Sale Gain Exclusion, capital gains exclusion, maximum exclusion
capital gains exclusion, maximum exclusion, stancil: Tim, Thanks for your question. Yes you qualify for 13/24 x $250,000 (or 500,000 if married filing jointly) as a maximum exclusion, since your move was due to a change in employment. However, any depreciation taken or allowed on the rental must be...

Tax Law (Questions About Taxes): re: taxes, business expenses, stancil
business expenses, stancil, personal account: Sunil, Thanks for your question. Just go through your bank account and identify what expenses relate to the business. Since it is a single member LLC, I presume you will be reporting on Schedule C, so there should be no problem of intermingling personal...

Tax Law (Questions About Taxes): real estate, capital gains tax rates, income tax rates
capital gains tax rates, income tax rates, long term capital gains: Hi, You could deduct mortgage interest on a second home but a vacant lot is not a home. However you can deduct the real estate taxes. If you have investment income from any other source, you can deduct investment interest up to that amount. Even long...

Tax Law (Questions About Taxes): real estate cap gain tax, bobby bell, stancil
bobby bell, stancil, 1031 exchange: Bobby, Thanks for your question. No, that is not true. What you have probably heard about is a 1031 exchange. If you exchange an asset (such as a building, land, equipment) for a similar asset, this is treated as an exchange rather than a sale and...

Tax Law (Questions About Taxes): real estate capital gain, real estate capital gain, capital improvements
real estate capital gain, capital improvements, unit apartment: I can t really plug in the numbers you gave me. Your first step is to allocate the $1.5 million purchase price between the units to be sold and those being retained. Second, you will need to subtract from this number depreciation allowed or taken on...

Tax Law (Questions About Taxes): real estate capital gain, real estate capital gain, capital gain taxes
real estate capital gain, capital gain taxes, gain thanks: Hi Anthony, If you own and live in your home for 2 years during the 5 years preceeding the date of sale, you can exclude $250,000 of gain ($500,000 if married filing jointly). If you do not meet the 2 year requirement you may be able to exclude a reduced...

Tax Law (Questions About Taxes): real estate capital gains, real estate capital gains, personal residence
real estate capital gains, personal residence, depreciation: Hi Paul, You can exclude gain on only one primary residence in a given tax year and there must be at least 2 years between exclusions. Also when you have used the property as a rental, you cannot exclude the gain attributable to depreciation taken...

Tax Law (Questions About Taxes): real estate cost bases, cost basis, capital gain
cost basis, capital gain, mother and father: If the home is NOT in a community property state, your calculation is 1/2 the purchase price ($11,500) and one half any improvements up to your father s death. Then one half the date of death value (67,500) plus the full value of any improvements after his...

Tax Law (Questions About Taxes): real estate gift, elizabeth terrill, elizabeth thanks
elizabeth terrill, elizabeth thanks, professional appraisal: Elizabeth, Thanks for your question. I am not sure what you mean by settle in this instance. From a tax standpoint, you need place the title in her name with no strings attached. As far as the gift tax is concerned, there is a $12,000 annual...

Tax Law (Questions About Taxes): real estate investiment as LLC or close corporation, real estate investiment, close corporation
real estate investiment, close corporation, principal residence: Hi PhuongY Thanks for the question. Before I can answer your question I would need to know some other information. Why did you file a 8832 for treatment as a Corporation? What is your intent in investing in the property? What tax bracket are you in?...

Tax Law (Questions About Taxes): real estate investment properties, investment property owners, estate investment analysis
investment property owners, estate investment analysis, real estate investment analysis: depreciation relates strictly to a tax deduction that may be available to owners of commercial property. Interest on the other hand affects the property s cash flow a much more inportant consideration when acquiring or dispossing of property . However...

Tax Law (Questions About Taxes): real estate investment, higher tax bracket, real estate investment
higher tax bracket, real estate investment, flipping houses: An LLC is not going to save you any tax dollars. Both the partnership or S corp are flow thru entities, which means you and your brother pay taxes on your portion, no matter what. A corporation has a higher tax bracket. I know a TON of tax pros in Pittsburgh...

Tax Law (Questions About Taxes): real estate rental property expense, real estate investor, realestate agent
real estate investor, realestate agent, lodging expenses: Dear Steven, NO, you can not list these espenses on another schedule-E....Also, unless you are a licensed realestate agent, I don t see where you can deduct these expenses anywhere..... Simple investors, have NOT expense until they acquire the property...

Tax Law (Questions About Taxes): real estate sale, gross profit percentage, installment sales method
gross profit percentage, installment sales method, irs publication: John, Thanks for your question. From your description, I cannot determine if you would be eligible for the installment sales method. If you do qualify, you determine your gross profit percentage from the sale, then apply that percentage to funds received...

Tax Law (Questions About Taxes): real estate sale, real estate sale, principal payments
real estate sale, principal payments, business property: John, Essentially you have the right idea. The first step is to compute the gain on the sale. The first year, 40% of the gain will be taxable ($200,000 divided by $500,000). In the subsequent years, the principal payments will be divided by the sales...

Tax Law (Questions About Taxes): real estate sale and capital gain taxes, capital gain taxes, maximum exclusion
capital gain taxes, maximum exclusion, real estate sale: Angela, Thanks for your question. Good news and bad news. First the bad news. It does not matter what you do with the proceeds from the sale of your house. It does not affect the taxability of the transaction. The good news is that if you have owned...

Tax Law (Questions About Taxes): real estate sale/non primary residence, real estate sale, stancil
real estate sale, stancil, 1031 exchange: Mark, Thanks for your question. Once you sell the condos you will owe tax on the gain regardless of what you do with the proceeds. In order to avoid tax on the gain, you would have to execute a 1031 exchange. Basically, this involves trading your property...

Tax Law (Questions About Taxes): real estate sale sub S versus C corp, tax deductible expenses, income tax rate
tax deductible expenses, income tax rate, leasor: a rule of thumb that is always true, is that any profitable business , retail, property leasing, real estate investing, etc, is best done through a C-Corporation. Since you both work and make enough money to be paying horrendous taxes anyway, you are losing...

Tax Law (Questions About Taxes): real estate sale and tax, unforeseen circumstances, current real estate
unforeseen circumstances, current real estate, real estate sale: Tom, The IRS has been fairly liberal on the unforeseen circumstance front. With that said, I don t think #2 is viable. Divorces have certain legal characteristics that vary dramatically from a break up . The best argument would be the fallout from...

Tax Law (Questions About Taxes): real estate sale taxes, volunteer service, real estate sale
volunteer service, real estate sale, mike thanks: Mike, Thanks for your question. I presume you are referring to the exemption of income tax from the sale of your personal residence. That law was repealed in 1968. However, current law allows you to exempt up to $250,000 ($500,000 if married filing...

Tax Law (Questions About Taxes): real estate tax, passive losses, passive activity
passive losses, passive activity, real estate tax: Hello, If the loss is generated from a passive activity. The loss and suspended passive losses can be taken in the year of disposition. So these losses if passive could offdset nonpassive income in the year of disposition. I am unfamiliar with a carryover...

Tax Law (Questions About Taxes): real estate tax, it200, real estate sale
it200, real estate sale, real estate tax: Rose is the home your previous residence (lived there for two years of the last five)? if so you have no gain for the Federal and NY follows the Federal rules if this is a real capital gain then it will also be taxed by New York either as resident or non...