About Experts Sitemap - Group 51 - Page 3 2015-05-19

Tax Law (Questions About Taxes): Inquiry, earned income exclusion, foreign earned income exclusion
earned income exclusion, foreign earned income exclusion, foreign earned income: Dear Hector, This is true, as a U.S. citizen by birth you are required to file U.S. income tax return (see http://www.taxesforexpats.com/expat-tax-advice/expat-tax-obligations.html). You will not have to pay any U.S. tax because your income will be excluded...

Tax Law (Questions About Taxes): inventory, industry classification system, american industry classification
industry classification system, american industry classification, north american industry classification system: Ron, Thanks for your question. You haven t been talking to the right people. If a business produces, purchases, or sells merchandise, the business must keep an inventory and use the accrual method for sales and purchases.The accrual method for businesses...

Tax Law (Questions About Taxes): Investment interest expense deduction issue, investment interest expense, income tax payments
investment interest expense, income tax payments, margin loan: That s one of the problems with tax law. You can say always in all cases. Not excluding it is not a specific inclusion, however. A specific inclusion would have to mention it specifically. By not excluding it, the assumption would generally be that it...

Tax Law (Questions About Taxes): Irrevocable trust - expenses from income or capital?, form 1041, irrevocable trust
form 1041, irrevocable trust, stancil: Fay, Thanks for your question. As you may have discovered, there is not much that is black and white in the area of trust taxation. In your case, expenses are paid based on the terms of the trust. If the trust does not make any specification in this...

Tax Law (Questions About Taxes): IRS form 982, 1099c, total forgiveness
1099c, total forgiveness, jewelry clothing: Chris, Thanks for your question. First, I want to be certain you understand insolvency as it relates to your situation. Insolvency involves more than the house. If you are insolvent, the fair market value of everything you own - houses, vehicles, jewelry,...

Tax Law (Questions About Taxes): Issuing a 1099-MISC for my Property Manager, social security number, federal identification number
social security number, federal identification number, business thanks: Michael, Thanks for your question. Yes if the property manager is an individual and not a partnership or corporation. If you complete a 1099-MISC, you must send a copy to the IRS. Your social security number is your FIN. Hope this helps. John...

Tax Law (Questions About Taxes): K-1 vs 1099, s corporation, business expenses
s corporation, business expenses, schedule c: A K-1 is a document showing the share of profits or losses of a Partnership or S-Corporation. Unless you are an actual owner of the business, you should not be getting a K-1. If you are an owner and NOT getting a K-1, then something is wrong there, too....

Tax Law (Questions About Taxes): Like-Kind-Exchange, mileage deduction, personal portion
mileage deduction, personal portion, sure what this means: Wendy, Thanks for your question. If you received the $1,000 in cash you do not have a like kind exchange, but a sale of your asset. You would subtract 1/2 of your adjusted basis (representing the business portion) from $500 to determine your gain or...

Tax Law (Questions About Taxes): lease-option, lease purchase option, ramification
lease purchase option, ramification, stancil: Rob, Thanks for your question. A lot depends on the terms of the lease/purchase option but since you will be leasing it for two years, you still fall within the requirements that you live in the house for two years of the most recent five year period....

Tax Law (Questions About Taxes): Life Estate - Capitol Gains, ownership share, life estate
ownership share, life estate, fmv: When you took title to the home prior to your mother s death, even though you did not live there, you effectively kept the basis in the property at the 2004 level. It does not get a step up in basis in 2011. Since you sold the home for less than 2004 s...

Tax Law (Questions About Taxes): LLC - online retailer, handmade boots, correct application
handmade boots, correct application, amazon: The area of state tax and online retailing is rife with complexity and abuse. I would strongly suggest that you do more than have a two minute chat on a free board to ascertain the correct application of how tax might impact you on a state level. Nexus...

Tax Law (Questions About Taxes): loss on lakefront condominium, blue green algae, celina ohio
blue green algae, celina ohio, property appreciation: Gene, Thanks for your question. If you can demonstrate that it was intended as an investment/rental property and was not used for personal purposes you can deduct the loss. Since it was never rented, you would likely have to classify it as investment,...

Tax Law (Questions About Taxes): Married filing separately, mortgage interest deduction, wisconsin community
mortgage interest deduction, wisconsin community, state returns: Brad, Thanks for your question. I m not deeply familiar with most tax packages, as I use a professional version. However, my experience is that most packages will do that allocation, you just need to enter the correct settings. I can t guide you specifically...

Tax Law (Questions About Taxes): missionaries and the EITC, schedule eic, professional answer
schedule eic, professional answer, eitc: Steven, Thanks for your question. No. The rule is that the child must live with you in the United States for the entire year. The only exception is for military personnel stationed outside the U S on extended active duty. It does not apply to non-military...

Tax Law (Questions About Taxes): missionary taxes, physical presence test, earned income exclusion
physical presence test, earned income exclusion, self employment tax: Steven, The answer is still no. Claiming physical presence is one of the two tests under which you may qualify for the foreign earned income exclusion. To qualify for this exclusion, you must pass the physical presence test by being physically present...

Tax Law (Questions About Taxes): Must we depreciate immediately, depreciation system, macrs
depreciation system, macrs, flatbed trailer: Linda, Thanks for your question. The IRS will reduce your basis in depreciable assets for depreciation allowed or allowable. In plain English, that means that they will treat the asset as though you took depreciation on it, whether you did or not, so...

Tax Law (Questions About Taxes): where is your ofc, office address, ofc
office address, ofc, joanne: Hello Joanne, I have never been asked this question before and am very wary of providing my office address on a forum such as this. If you need help preparing your taxes, my telephone number appears below, along with my email address. If we determine...

Tax Law (Questions About Taxes): Payments for course materials, 1099 misc forms, llc members
1099 misc forms, llc members, itemized deduction: Mary, Thanks for your question. You are correct on the paying for materials, it is a Miscellaneous itemized deduction as you stated. As an individual, he does not need to issue any 1099 s. He can show the income as other income on line 21 or he can...

Tax Law (Questions About Taxes): Pension, work pension, pension administrator
work pension, pension administrator, question line: The 1099-R should indicate the taxable amount in box @A. If not amount is entered, it is likely fully taxable. If box is checked taxable amount not determined, you should check with the pension administrator or your ex. Taxes that are withheld monthly...

Tax Law (Questions About Taxes): Primary residence turned rental: Repairs/, home improvements, stancil
home improvements, stancil, management agreement: Carolyn, Thanks for your question. The repairs can be counted against the rental once it is no longer your residence. However, some of the items you mentioned are considered improvements rather than repairs. An improvement must be capitalized and depreciated...

Tax Law (Questions About Taxes): property tax deduction, property tax deduction, upkeep costs
property tax deduction, upkeep costs, real estate taxes: Tom, Thanks for your question. In order to deduct the real estate taxes you must actually pay the taxes and you must be legally liable for the taxes. Since the house is owned by your daughter, it appears you cannot deduct them. Hope this helps. ...

Tax Law (Questions About Taxes): Property tax exempt, exempt purposes, definite plan
exempt purposes, definite plan, stancil: Miguel, You won t lose your tax exemption, but you might have to pay tax on the income. There is an exception in Code Sec 514 that allows allows you to avoid paying tax on debt financed income. Basically, you must have a definite plan to use to property...

Tax Law (Questions About Taxes): Question in how to handle this, price question, stepped up basis
price question, stepped up basis, life estate: That is correct on Question 7. It depends on state law, most likely it is taxable in MS since the property is located there. You would file as a non-resident if it is taxable. It will also be taxable in your states of residence, but you can take a credit...

Tax Law (Questions About Taxes): Received 1099-K, conference of catholic bishops, u s conference of catholic bishops
conference of catholic bishops, u s conference of catholic bishops, paypal account: Jeff, Thanks for your question. You did not get one in 2011 because they were not issued, to my knowledge. Yes, this is something you should definitely be concerned with as the income will be attributed by the IRS to the EIN that is on the form. It...

Tax Law (Questions About Taxes): rental income from a relative living with us, deductible expenses, tax return
deductible expenses, tax return, heather: Heather, It depends on what the money was for. Was it a gift and under $13,000? If so, then no. On the other hand, if the money was for rent, i.e. use of part of your home, then yes, it is reportable as income. On the third hand, if the money was...

Tax Law (Questions About Taxes): S-Corp Officer Compensation when shareholder has no involvement, full time job, tax filer
full time job, tax filer, payroll tax: Sammy, Thanks for your question. Since you are not an employee of the corporation you do not have to pay yourself a salary. I don t think you have any concerns in this regard. However, under the family attribution rules, your stock ownership is attributed...

Tax Law (Questions About Taxes): S-Corp Officer Compensation when shareholder has no involvement, full time job, tax filer
full time job, tax filer, payroll tax: Only persons that have an active role in the business are expected to have a W-2. Investors do not get a W-2 if they did not actually work in or for the corporation. Your wife still may count as a 2% shareholder because the ownership is less than an...

Tax Law (Questions About Taxes): Sale of rental property, capital improvements, form 4797
capital improvements, form 4797, adjusted basis: Jody, Thanks for your question. You should get a 1099-S. It will be reported on Form 4797. A rental is not classified as investment property, therefore it is not a capital gain/loss. If you did sell at a gain, the gain is you sale price minus cost...

Tax Law (Questions About Taxes): Sale of stock, stancil, selling shares
stancil, selling shares, cost basis: Wanda, Thanks for your question. You must enter the selling price of the stock net of commissions and your cost basis in the stock including commissions. This would be on Form 8949 and transferred to Schedule D. You pay tax on the difference in the...

Tax Law (Questions About Taxes): schedule c, www irs gov, irs forms
www irs gov, irs forms, schedule c: Mark, There is a delay in filing a return with certain forms --- Sch C is NOT one of them. However, frequently, Schedule C has Form 4562 attached which is a delayed form. Here is a link of delayed forms: http://www.irs.gov/uac/Newsroom/List-of-IRS-forms-that-1040-filers-can-begin-filing-in-late-February-or-into-March-2013...

Tax Law (Questions About Taxes): Schedule C expenses, mileage expense, fraudulent act
mileage expense, fraudulent act, business miles: Marty, Thanks for your question. If you reduce the amount of miles you claim on your return in order to qualify for credits, and thereby get a larger refund, you have committed a fraudulent act. Tax fraud can result in hefty fines as well as imprisonment....

Tax Law (Questions About Taxes): Small Part Time Job, irs audit, part time job
irs audit, part time job, second job: Drew, Thanks for your question. The IRS and state government have copies of your W-2. You won t get an audit, you ll get a letter with a bill for the taxes, penalties, and interest. Not reporting all your income is fraudulent. Hope this helps....

Tax Law (Questions About Taxes): Spouses live and work in different states for the year, connecticut income tax, income tax filing
connecticut income tax, income tax filing, tax filing status: Jane, Thanks for your question. I presume your job in CT is a more or less permanent arrangement. Answers are based on that. 1. You cannot claim GA as your primary residence as you did not spend most of the year there. The IRS considers CT as your...

Tax Law (Questions About Taxes): SS income, stancil, cpa
stancil, cpa, ss: Rose, Thanks for your question. Yes, the SS income should be included because the law provides that a portion of it is taxable. Depending on your total income and filing status 85%, 50% or none of it is taxable, but it must be shown on the return. ...

Tax Law (Questions About Taxes): State Tax, earned income tax, lancaster county tax collection bureau
earned income tax, lancaster county tax collection bureau, income tax return: You PA return should include any income earned while working in PA or while you were a resident of PA. I failed to mention earlier you will probably need to file as a part-year resident. For some states, that is a different return. For others, it is just...

Tax Law (Questions About Taxes): state tax consequences of relocation, california property taxes, state income taxes
california property taxes, state income taxes, mortgage deduction: Paul, You do not appear to be subject to CO taxes. If you establish your primary residence as NV, you would then be free of state income taxes. Otherwise, you would in in CA and subject to their taxes. You and your wife do not have to have the same primary...

Tax Law (Questions About Taxes): state taxes, income tax form, royalty payment
income tax form, royalty payment, mineral extraction: Mary Jo: I do not know the answer to your question. I have not had a reason to delve into Louisiana Income Tax Law. However to be on the safe side I would go to their web sight and review the income tax form and the reporting requirements. I assume...

Tax Law (Questions About Taxes): tax, part time jobs, student loan interest
part time jobs, student loan interest, child care credit: Al, Thanks for your question. Filing separately would not allow you to take a credit for education expenses and the deduction for student loan interest. In addition, you would probably not be able to take the child care credit and your child tax credit...

Tax Law (Questions About Taxes): tax amendment, w2 form, stancil
w2 form, stancil, irs: Samantha, Thanks for your question. You cannot include the 2011 W-2 on your 2012 return. You should file an amended return for 2011. IF you don t the IRS will pick up on the fact you have not included the W-2 on your return and will be contacting you....

Tax Law (Questions About Taxes): tax deductions, home equity loan, energy efficient appliances
home equity loan, energy efficient appliances, personal expense: Great. I hope your remodeling job turns out nice. But don t count on Uncle Sam helping pay much of the bill. If you take out a home equity loan to pay for this work, the interest may be deductible. There s probably nothing else that will affect your tax...

Tax Law (Questions About Taxes): TAX DEDUCTIONS STATE OF ALABAMA, federal govt, stancil
federal govt, stancil, state of alabama: Eugene, Sorry but no deduction. The IRS has denied these deductions under the theory that the house was about worthless to begin with. In fact, some believe you have income in the value of the demolition that you received and did not have to pay for. ...

Tax Law (Questions About Taxes): tax filing requirment and EIC, irs publication, year 2012
irs publication, year 2012, stancil: Dan, Thanks for your question. If she meets the age, dependency, investment income, citizenship, and dependent tests she can file for the EIC. I would list each of these, but there are 16 rules that apply under various scenarios, and it would take...

Tax Law (Questions About Taxes): Tax Free Per diem allowance, irs rule, overtime rate
irs rule, overtime rate, proof of address: Eric, Thanks for your question. Sounds like things were not fully explained. First, if the assignment in CT is for of undetermined duration or for more than 12 months, the per diem amount is taxable income. The IRS rule is that your tax home is...

Tax Law (Questions About Taxes): Taxes, adjusted gross income, itemized deduction
adjusted gross income, itemized deduction, steve thanks: Steve, Thanks for your question. No, parking is not deductible for college or work. Work parking is deductible if traveling. He can claim those living expenses if he includes the income on his return. If he files a Schedule C, he can deduct it here....

Tax Law (Questions About Taxes): Television/cable write off, irc section 162, cable bill
irc section 162, cable bill, poker face: Eric, I had an interesting audit a few years back. A Registered Nurse wrote off her entire cable bill claiming she watched the Heath Channel and that it aided her in her job. I was hoping that that auditor would not notice the cable bill write off but of...

Tax Law (Questions About Taxes): Time to Receive Tax Docs, tax documents, stancil
tax documents, stancil, cpa: Kee, Yes and no. Most documents are required to be given to the recipient by Jan 31. This includes Forms 1099. However, due to the late changes in the tax law, many companies are late in distributing them. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Tuition and Fees Deduction, federal adjusted gross income, adjusted gross income
federal adjusted gross income, adjusted gross income, lifetime learning credit: Vanessa, Thanks for your question. I did not know the answer and my research did not show any prohibition of this, so I checked with a practitioner in Kentucky. She agreed with my assessment. You can take the tuition and fees deduction and not back...

Tax Law (Questions About Taxes): U.S. Tax Consequences, family trust account, right of survivorship
family trust account, right of survivorship, brokerage account: Frank, Thank for your question. It depends on how it is handled. If it is simply a transfer of the same stocks to a new brokerage account, it should not generate any tax consequences. However, if they treat it as a sale of the stocks, then a 1099-B...

Tax Law (Questions About Taxes): untaxed.., schedule c, candice
schedule c, candice, earnings: Candice: If you were paid CASH (no with holding) then you are saying you were in business for your self. Therefore, your gross sale (earnings) needs to be put on a Schedule C. If your sales were $600.00 more you should be getting a 1099 with the total...

Tax Law (Questions About Taxes): w-9s Question - Haven't Yet Filed, tax law questions, ogla
tax law questions, ogla, allexperts: Ogla: If you qualify for the education expense including the payment on the interest of a qualified education plan you may list it as a deduction. The W-9 you file now well be for the current year 2013 it will not apply to 2012. You should file a W-9...

Tax Law (Questions About Taxes): Working 18yo daughter, social security number, dependency exemption
social security number, dependency exemption, stancil: I don t use TurboTax so I can t answer that part of your question. For the other part, she can (and should) file her return not claiming her own personal exemption, since you are entitled to her dependency exemption. She is the only taxpayer on the return,...

Tax Law (Questions About Taxes): Wrongful termination, self employment tax, social security tax
self employment tax, social security tax, social security and medicare: Kevin, Thanks for your question. The amount probably should have been placed in box 3, but it wasn t. Show it on line 21 of the 1040 (other income) and don t pay the self-employment tax, just the income tax. If the IRS inquires, explain that it is...

Tax Law (Questions About Taxes): 1040, salary reduction agreement, occupational disability
salary reduction agreement, occupational disability, disability fund: Dave, You would have to check with your HR or Payroll Department to determine the answer to #1. Those taxes would not be included with the box 17 amount, probably listed in box 14 but there is no standard location for it. Hope this helps. John...

Tax Law (Questions About Taxes): 1099B for stock sale for estate, 1041 form, 1099b
1041 form, 1099b, administartor: Kathryn, Thanks for your question. Assuming that the stocks were in her name when sold, you would have to file a 1041. You can choose to pass the income through the 1041 to the beneficiaries and have them pay the tax. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): 2012 federal tax form 1040: Gain-Loss, federal tax form 1040, tax form 1040
federal tax form 1040, tax form 1040, federal tax form: Abraham, Thanks for your question. The loss is a long term capital loss and can be deducted using Form 8949 and Schedule D. You can use the loss to offset capital gains plus $3,000. Any unused loss carries over indefinitely until used up. Hope this...

Tax Law (Questions About Taxes): amended return, 1040x, stancil
1040x, stancil, standard deduction: Crystal, Thanks for your question. You will need to include any forms or schedules that have changed or been added. In your case, that would be Schedule A. Depending on what your itemized deductions consist of, it could include Forms 8283, 2106, 4684...

Tax Law (Questions About Taxes): Basis of Stock thru Bankruptcy, solutia inc, eastman chemical
solutia inc, eastman chemical, solutia: Rich, Thanks for your question. Since you received new shares in place of your old Solutia shares, your basis in the old shares transfers to the new shares. When you received cash and Eastman shares for your new Solutia shares you need to allocate that...

Tax Law (Questions About Taxes): boat slip for nightly rental condo, lake condo, john thanks
lake condo, john thanks, stancil: John, Thanks for your question. The buy-in would not be deductible, as it is technically an investment in a corporation. Upon sale of the shares in the corporation you would realize a profit or loss on your investment. Any ongoing costs that you pay...

Tax Law (Questions About Taxes): Cancellation of Debt, irs publication 17, irs regulations
irs publication 17, irs regulations, cancellation of debt: There are two different issues. One is the loss on the sale of the unit, the other issue is the income you have from cancellation of debt. You pay taxes on the money you borrowed but did not repay. If you have a loss on the sale of the condo it is...

Tax Law (Questions About Taxes): Cancellation of Debt on Rental Property, cancellation of debt, debt cancellation
cancellation of debt, debt cancellation, form 4797: Kishore, Thanks for your question. Since you occupied the condo as your primary residence for at least 24 of the previous 60 months, it does qualify as your primary residence. Assuming you meet the other requirements, you may exclude the COD income...

Tax Law (Questions About Taxes): Car Shared between Two Businesses and Personal Use, sole proprietor business, personal tax return
sole proprietor business, personal tax return, section 179 deduction: Paul, Thanks for your question. This gets somewhat complex. I hope your reporting to this point has been correct. You cannot use the standard mileage rate unless it was taken in the first year of business use. So you can t switch. At this point,...

Tax Law (Questions About Taxes): Casualty Gain! Form 3684 necessary?, bearer of bad news, hail storm
bearer of bad news, hail storm, casualty loss: I apologize profusely, I misread your question. A roof has an expected life. 30, years, 40 years, etc. If the damage required the replace of the entire roof that would be an improvement to the property (enhancing the longevity and the value of the home...

Tax Law (Questions About Taxes): Church tax withholding for Musician planner fees, weddings and funerals, sound technician
weddings and funerals, sound technician, stancil: Robert, Thanks for your question. It depends. If those individuals are employees of the church, then the amounts would be included on their respective W-2 s. If they are not church employees, you do not have to withhold, but you must issue them...

Tax Law (Questions About Taxes): Claiming a dependent, court paperwork, irs notice
court paperwork, irs notice, sole provider: Shelley, Thanks for your question. The IRS will made a decision based on the rules. The rules state that the exemption goes to the person with whom the dependent lived with over half the year and who provided over half the support for the child. In...

Tax Law (Questions About Taxes): commission with no 1099, bad decisions, c schedule
bad decisions, c schedule, schedule c: If you want to keep things similar to how they are, are going to increase the Gross Revenue on your schedule C and have a high cost of goods sold. You ll still net your $150 and pay taxes on it. At these revenue levels it may not be worth making changes...

Tax Law (Questions About Taxes): Corporation and 1099-misc, irs requirement, payroll deductions
irs requirement, payroll deductions, 1099 misc: Diego, Thanks for your question. Writing yourself a 1099 from your corporation is inappropriate and is likely to get the attention of the IRS. You need to pay yourself a reasonable salary complete with payroll deductions. This is an IRS requirement....

Tax Law (Questions About Taxes): Deducting medical insurance premiums - 1065 vs. 1040, medical insurance premiums, health insurance premiums
medical insurance premiums, health insurance premiums, employed health insurance: If the software is working correctly, and if you entered the data on the proper lines in the business return software, the output would be correct. What needs to be realized is that the LLC CANNOT deduct your medical insurance premium nor can it deduct...

Tax Law (Questions About Taxes): depletion, oil royalties, mineral rights
oil royalties, mineral rights, stancil: Scott, Thanks for your question. You don t need to know anything about the past depletion or value. Depletion can be done as a percentage of the revenues. For oil and gas it is 15%. You can do cost depletion, but would need to determine the value...

Tax Law (Questions About Taxes): Depreciation on Rental Property, kitchen remodeling, stancil
kitchen remodeling, stancil, cost basis: Ronda, Thanks for your question. 1. The placed in service date is the date is was placed into service as a rental unit. 2. No, the improvements were in place when it was converted, they are included in the FMV on teh date it was placed in service....

Tax Law (Questions About Taxes): How do I determine the total assets to write in on my 1120 s form, capital improvements, company thanks
capital improvements, company thanks, s corp: Staying with the property value: The value for the tax return would be what the S-corp paid for it (the fair market value at the time of purchase.) The depreciation is accounted each year. Your property may appraise differently, go up or down in value from...

Tax Law (Questions About Taxes): per-diem, income tax returns, adjusted gross income
income tax returns, adjusted gross income, form 2106: Rose, Thanks for your question. Basically you can only deduct the taxable per diem. The way it works, though is that, on Form 2106 you list your entire travel expenses (most likely just the per diem, but there could be other expenses). Then you subtract...

Tax Law (Questions About Taxes): Is per diem an income?, tax law change, form 8843
tax law change, form 8843, nonresident alien: Britta, Thanks for the additional information. Your J-1 intern status allowed the company to pay you a non-taxable per diem. So you are ok for 2012. It appears that the company has changed how they classify your pay, so they are correct in regard to...

Tax Law (Questions About Taxes): Early distribution of 401k and IRA, health insurance premiums, 401k account
health insurance premiums, 401k account, loan repayments: Patricia, Thanks for your question. You do not have to provide any evidence in support of the items when you file your return. However, you should keep a record of them in case the IRS makes an inquiry regarding one or more of the items. Keep the paid...

Tax Law (Questions About Taxes): EIC (Earned Income Credit), www irs gov, free hope
www irs gov, free hope, year 2012: Mike, Thanks for your question. If you meet the income requirements, you should be eligible for the EIC. The big hurdle is your earned income level. If it is over $13,980, you do not qualify. Here is a link that will help you determine your eligibility....

Tax Law (Questions About Taxes): EITC, refundable credit, 1099 misc
refundable credit, 1099 misc, stancil: Leslie, Thanks for your question. No, that does not make sense. The EIC is a refundable credit, meaning that it should reduce your tax liability and (in your case) generate a refund for you. Apparently you have checked a box incorrectly or something,...

Tax Law (Questions About Taxes): ESOP withdrawal and offset rental loss, rental losses, adjusted gross income
rental losses, adjusted gross income, esop: Rob, Thanks for your question. If you have been diagnosed as totally and permanently disabled you can make a withdrawal of your funds without suffering the 10% penalty. You will still be subject to income tax however. The income can be offset by...

Tax Law (Questions About Taxes): Federal taxes and mortgage interest and property taxes, payment arrangement, mortgage interest
payment arrangement, mortgage interest, federal taxes: Lori, Thanks for your question. If you are claiming 12 withholding allowances, there should not be much in taxes taken out. I suggest you check with your employer to see if it is being done properly. You can request a specific amount be withheld from...

Tax Law (Questions About Taxes): Do I have to file state taxes if I work on a cruise ship?, hawall, h r block
hawall, h r block, hawaii state: Lance, Thanks for question. Things do get complicated when we move around, don t they? First, let me give you a general rule. You owe taxes on all your earnings to your state of residency. You also owe taxes to a state in which you earn the income....

Tax Law (Questions About Taxes): Foreign Income and US taxes, foreign earned income, earned income credit
foreign earned income, earned income credit, worldwide income: Emilio, Thanks for your question. As a U. S. citizen or resident you are subject to tax on your worldwide income regardless of source. You were not present in a foreign country long enough to qualify for the foreign earned income credit, but you can...

Tax Law (Questions About Taxes): Forgiven debt and Form 982, 1099c, home equity loan
1099c, home equity loan, c corp: Suzanne, Thanks for your question. What you did with the proceeds and what was pledged for the loan are two separate, unrelated items for this purpose. The loan was on the house, you must reduce the basis in the house. Hope this helps. John...

Tax Law (Questions About Taxes): Form 1099-MISC, Box 3 (Other Income), form 1099 misc, prepaid visa card
form 1099 misc, prepaid visa card, self employment tax: Nicole, Thanks for your question. I would report it on Schedule C showing the $816 as income and taking a deduction for the amounts that you gave to the techs. This will create a problem since you did not use all of it, there will be tax to pay on...

Tax Law (Questions About Taxes): form 4361, standard mileage rate, excess mileage
standard mileage rate, excess mileage, mileage reimbursement: I would not report it at all. As long as it is under the standard mileage rate for business it should not be reported. This assumes that the mileage reimbursement was under an accountable plan whereby she reported her mileage to the church. As it stands,...

Tax Law (Questions About Taxes): Form 709 Gift Tax Return, form 709, supplementary sheet
form 709, supplementary sheet, purchase dates: No, not at all. Do something like this: Date Joe Smith, Son Property Basis Value 100 Shares XYZ 1000 1500 50 shares ABC 544 1200 I think this gives you the idea. I hope this formats so you can read it, once hit...

Tax Law (Questions About Taxes): Form 8594, form 8594, stancil
form 8594, stancil, cpa: Pandey, Thanks for your question. Yes, you need to put the fair market value of each class of assets. For a particular class of assets, enter the total fair market value of all the assets in the class and the total allocation of the sales price. For...

Tax Law (Questions About Taxes): Form 982, irs instructions, irs gov
irs instructions, irs gov, internal revenue service: The 982 is included with your 1040. That s why there are no mailing instruction on the instructions to the 982. If you are not including a payment, it should go to: Department of the Treasury Internal Revenue Service Kansas City, MO 64999-0002 ...

Tax Law (Questions About Taxes): Gifted bond tax liability, bond maturity, ee bonds
bond maturity, ee bonds, stancil: Randall, Thanks for your question. Assuming that the deceased did not pay tax on the interest as it was earned, you would be responsible for the tax on the interest you received. Most likely interest was not paid on it, as that is the most common practice...

Tax Law (Questions About Taxes): Gifted Rental Property, income tax implications, stancil
income tax implications, stancil, rental condo: Lisa, Thanks for your question. No, the gift has no income tax implications. However, when the children sell it, there will be depreciation recapture as the children s basis is a transferred basis from the mother. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Hotel expenses, hotel expenses, hotel costs
hotel expenses, hotel costs, stancil: Lisa, Thanks for your question. Those reimbursements are taxable income to her. Since she chooses (for whatever reason) to live 52 miles away that is her choice. The reimbursements are no different than if my employer decided to reimburse me for my...

Tax Law (Questions About Taxes): HSA overcontribution, stancil, hsas
stancil, hsas, turbotax: Trey, Thanks for your follow up. Since the HSA deduction has been reduced, you don t need to include it as income. As I understand it, the correction will appear on a subsequent statement from your HSA administrator. At this point, you don t need to...

Tax Law (Questions About Taxes): hypo tax, hypo tax, dear kathy
hypo tax, dear kathy, overseas assignment: Dear Kathy, Unfortunately, so called Tax Equalization system often benefits the employer rather than employee. The rules for calculation of Hypo Tax are not set by the IRS - each company has their own policy. Hypo tax calculation usually implies return...

Tax Law (Questions About Taxes): Illinois personal state income tax, usmilitary about, state income tax
usmilitary about, state income tax, joe thanks: Joe, Thanks for your question. I hate to break the bad news to you, but when someone enters the military, their state of residence when the joined is usually their state of residence for the entire time they are serving in the military. This might...

Tax Law (Questions About Taxes): income loss, stock loss, stancil
stock loss, stancil, hi john: Rob, Thanks for your question. The loss is reported in the year in which it is incurred, on Schedule D (and Form 8949). Any prior carryover is reflected on Schedule D and is added to the current year loss to determine the amount available. After the...

Tax Law (Questions About Taxes): income tax for rental income, stancil, rental house
stancil, rental house, depreciation: Jamie, Thanks for your question. You will have to report your half of the income, expenses and depreciation on the rental unit on Schedule E of 1040. You cannot take all the income or expenses, as they must be allocated based on your share of ownership....

Tax Law (Questions About Taxes): Individual tax return, standard mileage rate, per diem rate
standard mileage rate, per diem rate, per diem rates: Don, Thanks for your question. You can t use a per diem rate for housing. Employers may reimburse you at that rate, but you can only deduct actual housing costs. You can use per diem for meals. And you can take the standard mileage rate for travel to...

Tax Law (Questions About Taxes): inherited IRA, ira rules, sole beneficiary
ira rules, sole beneficiary, stancil: Diane, There is not an easy answer to that. The quick answer is that as a non-spousal beneficiary you must start taking distributions in the year after death of the owner. The RMD is based on your age. You do have the option to withdraw the entire amount...

Tax Law (Questions About Taxes): inheritence tax/1099, exxon mobile, stancil
exxon mobile, stancil, capital gain: Lori, Thanks for your question. The tax would be the difference in his basis, which is the fair market value as of date of death, and the proceeds from the sale. This would be at the capital gain rate. He can pay the tax on the full amount and ask...

Tax Law (Questions About Taxes): IRA Withdrawals, ira withdrawals, minimum distribution
ira withdrawals, minimum distribution, stancil: Char, Thanks for your question. Not at 59 1/2. That s the age where you can start withdrawing without a penalty. However, IRA s have a required minimum distribution (RMD) beginning in the year following reaching age 70 1/2. Failure to make an RMD...

Tax Law (Questions About Taxes): iTunes store, state sales tax, apple itunes
state sales tax, apple itunes, radio air: Let s ignore taxes for a moment. Apple Itunes signs an agreement with the Artist/Developer. In that agreement both parties determine how much apple will get and how much the other party gets for each sale. I don t know what that agreed amount is and quite...

Tax Law (Questions About Taxes): K-1, risk category, filing taxes
risk category, filing taxes, substantial basis: Carrie, Thanks for your question. Normally, all of the numbers from the K-1 are used on the return, although some may not affect the tax. There are some that would not be entered. Generally, a passive activity is any rental activity OR any business...

Tax Law (Questions About Taxes): LLC personal taxation, personal income taxes, brick and mortar
personal income taxes, brick and mortar, mortar location: Your confusion is shared by many. Lots of people actually say they chose to do business as an LLC for tax advantages. Many websites recommend setting up LLC s and make less than truthful statements about tax advantages. But ask anyone to give a specific...

Tax Law (Questions About Taxes): LLC v. S-Corp for an Insurce Agent, self employment tax, sole proprietor
self employment tax, sole proprietor, social security number: Travis, Thanks for your question. You re making this unnecessarily difficult. First, you cannot file as an LLC. An LLC is a disregarded entity with the IRS. If you form and LLC, you have the option of filing as a Schedule C sole proprietor (or a...

Tax Law (Questions About Taxes): How long to keep financial records, income tax returns, passive losses
income tax returns, passive losses, brokerage accounts: Mark, Thanks for your question. That varies depends on the type of record. This chart is a pretty good guideline. http://www.bankrate.com/finance/personal-finance/how-long-to-keep-financial-records.aspx I would add that, for tax purposes, if there...

Tax Law (Questions About Taxes): marriage - 2 homes & taxes, mike thanks, stancil
mike thanks, stancil, rental period: Mike, Thanks for your question. If, when the houses are sold, the respective owner has lived in the house for 24 of the previous 60 months as their primary residence they would be eligible for the exclusion of gain on the sale of the home. However,...

Tax Law (Questions About Taxes): Medical reimbursement, medical reimbursement, stancil
medical reimbursement, stancil, navistar: Michael, Thanks for your question. I am not familiar with the specific details involved in the settlement but normally it would have to be reported as income if the employee/retiree took a deduction on Schedule A for the medical costs. Hope this helps....

Tax Law (Questions About Taxes): Mileage Deduction, mileage deduction, second job
mileage deduction, second job, stancil: Brian, Thanks for your question. No, it works the other way. When you have a second job, or when you are travelling for your main job the first and last trips of the day are not deductible - as long as they are within the same geographic area. So...

Tax Law (Questions About Taxes): mileage deduction, irs standard mileage rate, standard mileage rate
irs standard mileage rate, standard mileage rate, mileage deduction: Dulce, Thanks for your question. Normally, you would be able to deduct the mileage at the IRS standard mileage rate. However, since there was a company car available, the IRS prohibits you from taking a deduction. The choice you made was to drive your...

Tax Law (Questions About Taxes): misc expenses on rental property, sec 179, stancil
sec 179, stancil, rental houses: Freddie, Thanks for your question. The trailer would be depreciated, assigning a portion of the depreciation to each unit. Depending on the amount involved you would do the same for the tools or allocate the expense to each unit if the dollar amount...

Tax Law (Questions About Taxes): Mother-in-law apartment, s corp, personal activity
s corp, personal activity, stancil: Dawn, Thanks for your question. You state that the home is taken as a deduction on your S corp return. You can only do this if the house is titled in the name of the S corp. If it is, you cannot deduct anything related to it on your 1040. It is...

Tax Law (Questions About Taxes): muni bond income reporting, zero coupon bond, muni bond
zero coupon bond, muni bond, stancil: Louis, Thanks for your question. Report the sale of the bond on Form 8949, showing the sale proceeds and the adjusted basis in the bond. Your basis will be your original purchase price plus any interest accrued on the bond. Hope this helps. John...

Tax Law (Questions About Taxes): Do I need to file, social security benefits, time robert
social security benefits, time robert, stancil: Robert, Thanks for your question. No, her income level is insufficient to require filing a return. One half of her social security plus all her other taxable income must exceed $25,000 for her to be required to file. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Officer Life Ins Prems 1120s, life insurance premiums, s corp
life insurance premiums, s corp, insurance payment: Life insurance premiums are generally not business deductions. If you are referring to Schedule M-2 Analysis of Unappropriated Retained Earnings per Books A life insurance payment is not retained nor is it an earning . Unappropriated retained earnings...

Tax Law (Questions About Taxes): Pa.state taxes, pa state taxes, corix
pa state taxes, corix, fide resident: Leonard, Thanks for your question. There is nothing special about the state return. She will be considered to be a PA resident wile in St. Corix unless she becomes a bona fide resident of another country or state. So you would just report all the income...

Tax Law (Questions About Taxes): pension income on state tax return/1099, state tax return, income tax form
state tax return, income tax form, federal tax return: Lee, Thanks for your question. Don t worry about it. The state should receive a copy of the 1099, but if they don t they still have access to your IRS return. It doesn t matter that the federal return will be filed later, because they don t do an immediate...

Tax Law (Questions About Taxes): Petty cash at work, form 2106, stancil
form 2106, stancil, petty cash: Sara, Thanks for your question. If you show it as tips you will also have to pay SS tax on it. Show it on Form 2106 as a reimbursement. Show your mileage and report the difference as income or expense as the case may be. Hope this helps. John...

Tax Law (Questions About Taxes): PLLC in 2 States with same EIN, federal tax return, nc secretary of state
federal tax return, nc secretary of state, absolute accuracy: Okay, let me start with your stated question: One EIN is enough. That is for your Federal Tax Return, you wouldn t want to be filing 2 federal returns, especially if your accounting isn t tracking your income properly. You need to file a total of...

Tax Law (Questions About Taxes): Possible tax deduction?, longtime hobby, sole proprietor
longtime hobby, sole proprietor, answerable question: FI, When you are operating a business, any ordinary and necessary expenses may be deducted as long as they are reasonable in amount. Those terms need some explanation, as they have particular meaning in the tax world. Business expenses are costs associated...

Tax Law (Questions About Taxes): primary residence rental depreciation sale of property, straight line depreciation, bonus depreciation
straight line depreciation, bonus depreciation, accelerated depreciation: AMT depreciation is basically straight line depreciation, without any bonus depreciation or accelerated depreciation. Real property (this is the legal definition of the house or other building) held for rental/investment may only be depreciated for Regular...

Tax Law (Questions About Taxes): Question about 1099, independent real estate, stancil
independent real estate, stancil, real estate agent: Nadine, Yes, if you pay another agent $600 or more during a given year, you should issue that agent a 1099. There is a website that will prepare, file, and mail such documents at a reasonable fee. http://www.eagleviewfiling.com/ Hope this helps. ...

Tax Law (Questions About Taxes): Rental Income, itemized deduction, stancil
itemized deduction, stancil, deductible expenses: George, Thanks for your question. You ve got it right, almost. The income is reported on line 21 of the 1040. Any otherwise deductible expenses such as mortgage interest and taxes are deductible on Schedule A. If the interest and taxes are not...

Tax Law (Questions About Taxes): Rental income & repair expenses, personal income tax, central air conditioning
personal income tax, central air conditioning, repair expenses: Richard, Thanks for your question. The expenditures for the repairs should be deducted in the period in which they were paid. Thus, if you made a repair in 2012 and paid for it then, you should deduct it on your 2012 return. You must be careful to...

Tax Law (Questions About Taxes): Rental of Primary Residence for a one-year Sabbatical, semester sabbatical, mortgage interest
semester sabbatical, mortgage interest, itemized deductions: I wasn t thinking clearly on the days. Just leave it as you have it. I usually deal with long term rentals, and didn t think through that part. I apologize. Use the 215/366 allocation for all the items I discussed. Obviously, things like HO insurance...

Tax Law (Questions About Taxes): Rental Property, local taxing authority, real estate taxes
local taxing authority, real estate taxes, stancil: Jeff, Thanks for your question. Most likely PCDA is a local taxing authority. All of the expenses of the purchase such as title charges are included in the cost of the house. Taxes can be expensed when paid. Hope this helps. John Stancil, CPA...

Tax Law (Questions About Taxes): Rental Real Estate LLC, report fire damage, gross rents, form 4684
gross rents, form 4684, theft losses: Rick, Thanks for your question. Form 4684 is not appropriate in this situation as it is for personal casualty and theft losses. This is a business loss. Although it does not make any difference in the tax, you have mis-characterized your return....

Tax Law (Questions About Taxes): Reporting scholarships, dependency exemption, personal exemption
dependency exemption, personal exemption, stancil: Rhonda, Thanks for your question. You area confusing two issues. The five tests criteria is the test to determine if he is a qualifying child that allows you to take a dependency exemption for him. This is totally unrelated to whether or not he must...

Tax Law (Questions About Taxes): Residency at year-end, dividend income, little rock ar
dividend income, little rock ar, stancil: Susan, Thanks for your question. In your case, your residency is AR for 1/1 - 12/3 and is TN for 12/4 -12/31. You will need to file a part-year resident return for AR, reporting your earnings during the period you were an AR resident. Your other income...

Tax Law (Questions About Taxes): Sale of hp,e in trust from inheritance, stancil, long term capital
stancil, long term capital, capital gains: Bob, Thanks for your question. When you receive inherited property, your basis in the property is the fair market value as of date of death. Therefore, your basis would be $300,000. Selling it for less creates a long-term capital loss which you can...

Tax Law (Questions About Taxes): sales and property tax, polk county florida, personal property tax
polk county florida, personal property tax, vehicle registrations: CJ, Thanks for your question. You can take the tax (at 6%) paid on the vehicle and boat. This amount of tax paid should be shown on your purchase invoice. Note that there is an additional $50 amount (at least for the car) listed as local or county...

Tax Law (Questions About Taxes): Schedule C/ 1040SE, federal tax returns, social security and medicare
federal tax returns, social security and medicare, medicare tax: Ed, Schedule C is the form on which you file to report you revenue and expenses for a business in which you are self-employed. This is to determine the amount of income tax payable on the earnings. Schedule SE is to calculate the self-employment (social...

Tax Law (Questions About Taxes): Schedule C per diem, publication 1542, salt in the wound
publication 1542, salt in the wound, year 2012: I apologize, I assumed that you meant the entirety of the Per Diem allowance. You are right for meals, you can use the per diem rate for substantiation. But only the meal rates. Here is a link to the 2011 Internal Revenue Bulletin that explains it: http://www.irs.gov/irb/2011-42_IRB/ar12.html...

Tax Law (Questions About Taxes): Selling deeded property, stancil, capital gain
stancil, capital gain, capital gains: Tanya, Thanks for your question. If you have owned and lived in the house for 24 of the previous 60 months, you can exclude gain on the sale of the house. Otherwise, you will owe tax, at capital gain rates on any gain from the sale. Hope this ehlps....

Tax Law (Questions About Taxes): Social Security, social security retirement, self employment tax
social security retirement, self employment tax, social security and medicare: Marta, Thanks for your question. The social security is not determined automatically, you have to calculate,report and pay it. You report your babysitting earnings on Schedule C, showing your income and business-related deductions. The net profit...

Tax Law (Questions About Taxes): State of residency, montana john, montana tax
montana john, montana tax, seasonal job: Probably not. If you re using free software, it probably has limited capability, but usually you can pick PY for part year. If you file as a MN resident, you will pay taxes on the earnings in ND and Montana as a non-resident. You will report all your...

Tax Law (Questions About Taxes): State Tax, joe joseph, stancil
joe joseph, stancil, w2: Joseph, Thanks for your question. You will have to file in NC as a non-resident, paying tax on your NC earnings. You will also file as a resident of VA, paying tax on all your earnings. VA will give you a credit for taxes paid to NC, so you are not...

Tax Law (Questions About Taxes): Stipends, stancil, travel days
stancil, travel days, pocket expenses: Robert, Thanks for your question. Not sure what you mean by stipend calculator but you can deduct your meals at the actual amount spent or the per diem that is allowed for the city where you were located. You can also deduct actual out-of-pocket expenses...

Tax Law (Questions About Taxes): Stock loss carryover if spouse dies, stock loss, loss carryover
stock loss, loss carryover, stancil: Francis, Thanks for your question. If the stock was held jointly or in your name alone, you can continue to take the deduction until it is used up. However, if the stock was in the name of your spouse, the loss terminate upon the death of the owner....

Tax Law (Questions About Taxes): Stock options tax for non-residents, singapore tax, resident citizens
singapore tax, resident citizens, stock options: Dear Harpreet, Stock options is a deferred compensation for prior personal services from U.S. sources. You are required to file U.S. non-resident tax return and report this income. (see http://www.taxesforexpats.com/expat-tax-advice/Residents-Non-Resident-Citizens-and-Non-Citizens.html)...

Tax Law (Questions About Taxes): Stock sale, finial, tax bracket
finial, tax bracket, tax liability: Ruth: You will not know for sure until you sell determine what you will be reporting for tax purposes what your finial tax rate will be. You can use a 1040 form as a guide to calculate your tax liability based on what you think you sale price of the stock...

Tax Law (Questions About Taxes): Tax deduction of Vacation rental home, income tax return, full time real estate
income tax return, full time real estate, hawaii home: Nadine, Thanks for your question. In order to qualify as a real estate professional and treat the Hawaii home as an active income/loss you must meet the material participation hurdle. This requires that you spend at least 750 hours during the year on...

Tax Law (Questions About Taxes): tax liability, stancil, tax consequences
stancil, tax consequences, form 1040: Patricia, I did answer the part about how much rent your can charge with no tax consequences. OUT OF POCKET COSTS. Any other amount you charge for rent is reportable. If you are not charging fair rental value it is a rental not for profit and reported...

Tax Law (Questions About Taxes): Tax Mistake by hired CPA, roth ira contributions, contacting the irs
roth ira contributions, contacting the irs, office of professional responsibility: Mike, Thanks for your question. It is the responsibility of the tax return preparer to file a correct return. Knowing the limits is a part of what he should know. Most preparers, especially CPA s, will pay the penalty for a mistake made on their part....

Tax Law (Questions About Taxes): back taxes, tax receipts, federal taxes
tax receipts, federal taxes, dependents: Christopher, Thanks for your question. First, DO NOT go to any of the tax relief services you see advertised on TV. They frequently take your money and get no results, doing very little. If you allow the IRS to calculate your taxes, you have very...

Tax Law (Questions About Taxes): Trading/Investing on Social Security Disability, social security disability, ssa office
social security disability, ssa office, disability checks: I look forward to finding out what you get from the Local SSA Claims Rep since you going to talk to them about NOT A CLAIM I doubt they will have authoritative answers for you and they will have a personal agenda. I can t say what their personal agenda...

Tax Law (Questions About Taxes): travel nursing, days in a year, stancil
days in a year, stancil, advisement: Bart, Thanks for your question. Yes, you can do either of these. However, the rental income (and expenses) are taxable and reported on Schedule E of your tax return. As a consequence of renting the house, if the rental activity is significant enough,...

Tax Law (Questions About Taxes): write offs, student loan interest, meal allowance
student loan interest, meal allowance, stancil: James, Thanks for your question. If the new job is permanent, expected to last for more than 12 months, or is of indefinite duration, the travel back to you home is not deductible. In addition, the per diem and value of the lodging is taxable income....

Tax Law (Questions About Taxes): 1098-MA, stancil, mortgage assistance
stancil, mortgage assistance, assistance payments: Deigo, Thanks for your question. The amount represents mortgage assistance payments you received. You do not report it on your tax return, but if you itemized deductions, you must reduce your mortgage interest expense by the percentage of your mortgage...

Tax Law (Questions About Taxes): 1099-A, principle residence, cancellation of debt
principle residence, cancellation of debt, stancil: Edna, Thanks for your question. Normally a 1099-A is only issued indicating that there is an abandonment of the property. This is usually a foreclosure or simply a default where the bank takes over the property, but no cancellation of debt. Since...

Tax Law (Questions About Taxes): Accountants responsibility?, www irs gov, army trucks
www irs gov, army trucks, competency test: Dear Sue, All paid tax preparers are responsible for compliance to IRS code of tax return they sign for the clients. Please see http://www.irs.gov/Tax-Professionals/Return-Preparer-Regulations-Overview and http://www.irs.gov/Tax-Professionals/Registered-Tax-Return-Preparer-Competency-Test-Information...

Tax Law (Questions About Taxes): what amounts included on form 8880, form 8880, retirement savings
form 8880, retirement savings, stancil: Terrelle, Thanks for your question. I assume the boxes you refer to are from your W-2. Both of those amounts may be entered into the Form 8880. Code D represents payments into a 401K, while AA is a Roth contribution. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): annuity proceeds, marginal tax bracket, effective tax rate
marginal tax bracket, effective tax rate, tax brackets: The marginal bracket is the rate at which the next dollar of income is taxed. This link shows the marginal brackets. Just find your filing status and your taxable income to determine your marginal bracket. http://taxfoundation.org/blog/2013-tax-brackets...

Tax Law (Questions About Taxes): award, stancil, cash awards
stancil, cash awards, taxable income: Sara, Thanks for your question. If your employer did not include it on the W-2 it should not be taxable income unless they made a mistake. Non-cash awards when given for longevity or other achievement are not normally taxable. Hope this helps....

Tax Law (Questions About Taxes): My company, s corp, big deals
s corp, big deals, autoimmune disease: You are in a tough spot. There is nothing that you can do that will make it easy. It will be entirely up to you. No one including me can manage your situation for you. Hiring an attorney without a critical path predetermined for the attorney to follow would...

Tax Law (Questions About Taxes): Company Taxes, steve thanks, business deductions
steve thanks, business deductions, s corp: Steve, Thanks for your question. First, I would hazard a guess that you do not owe as much in taxes as you anticipate. IF the $250K is gross, then you likely have some business deductions against that income. Of course, penalties and interest can mount...

Tax Law (Questions About Taxes): Corp tax, irs, unfiled returns
irs, unfiled returns, settlement: Let me tell you how I would handle it if I were retained by you. The first step is to prepare the returns and get them filed. Once filed, it will take them a couple of months to be posted and come into collections. During that time, we would be doing an analysis...

Tax Law (Questions About Taxes): How do I take deduction for money lost with S-Corp, comparable gains, rv trailer
comparable gains, rv trailer, verbal agreements: Well let s start with the Shareholder part. What ever you paid for your 15% ownership would be a capital loss. But, you need to make sure that all the formalities were followed. Did you actually receive shares? Was there a record of the transaction. Did you...

Tax Law (Questions About Taxes): Dependents, personal exemption, stancil
personal exemption, stancil, dependents: Linda, Thanks for your question. Neither can be claimed as a dependent because they are over 2 years of age and have over $3,650 in earnings. And, for the record, you can only get a dependency/personal exemption on one return. First son doesn t have...

Tax Law (Questions About Taxes): Estate and Transfer on Death account income, social security number, gross proceeds
social security number, gross proceeds, smaller bank: Karen, Thanks for your question. What the accountant told you is pretty much correct. 1. With under $600 in income, no estate income tax return is necessary. 2. The income from the various sources should be allocated to the respective beneficiaries....

Tax Law (Questions About Taxes): Favorable home purchase, current market value, taxable gifts
current market value, taxable gifts, party transaction: There is no capital gains tax per se. It is income tax using the capital gain rate. Tax at the capital gain rate is zero, 15, or 20% depending on your marginal tax bracket. You would not be responsible for any gift tax. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): FHA refinance, income tax return, origination charge
income tax return, origination charge, fha loan: Chris: You will be able to deduct from your income tax return what you actually paid out of your pocket in interest and fees. If at one part in the loan they charge you a fee and at a later point give you a credit greater than your charge then that charge...

Tax Law (Questions About Taxes): Do I have to file?, italian citizenship, resident alien
italian citizenship, resident alien, worldwide income: Matthew: If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income...

Tax Law (Questions About Taxes): Form 8275, tax position, stancil
tax position, stancil, charitable contributions: Robert, Form 8275 is not appropriate in your situation. It is to be used when you are disclosing a tax position that the treatment of the item has not been settled and you are telling the IRS your reasoning (citing statutory authority) for the tax position....

Tax Law (Questions About Taxes): Form 8829, form 8829, miscellaneous itemized deductions
form 8829, miscellaneous itemized deductions, stancil: Richard, When filing a 1040X you would provide copies of any form that changed. It would include the ones you mention, but could also include Schedule A if your AGI changed and you had deductible medical or miscellaneous itemized deductions. I don t know...

Tax Law (Questions About Taxes): Gift, volunteer firefighter, www irs gov
volunteer firefighter, www irs gov, irs website: I am unaware of any provision in the tax code that make such a pension tax free. There are no exceptions for firefighters from the penalty. This from the IRS website. http://www.irs.gov/Government-Entities/Federal,-State-&-Local-Governments/Issues-for-Firefighters....

Tax Law (Questions About Taxes): health insurance deduction for self employed, employed health insurance, health insurance policy
employed health insurance, health insurance policy, self employed health insurance: Theo, Thanks for your question. No, you cannot deduct the COBRA payments as self-employed health insurance. As a matter of fact, they would not be deductible even if it was insurance on you. The IRS position is that COBRA is health insurance provided...

Tax Law (Questions About Taxes): Injured spouse, injured spouse form, www irs gov
injured spouse form, www irs gov, taxpayer advocate: Danielle, Join the club. The IRS is notoriously slow and often missed their own deadlines. If you have exhausted all normal routes of communication with the IRS and are suffering undue hardship, you can complete Form 911 or contact the Office of Taxpayer...

Tax Law (Questions About Taxes): insurance proceeds, insurance proceeds, computer laptops
insurance proceeds, computer laptops, stancil: Fred, Thanks for your question. They probably should not have sent the form and definitely not in box 7. Box 7 is compensation for services you rendered to them. I would contact them and inform them that it is improperly issued and please rescind it....

Tax Law (Questions About Taxes): IRA funds to pay medical insurance premiums, medical insurance premiums, health insurance premiums
medical insurance premiums, health insurance premiums, ira funds: James, Thanks for your question. Distribution from an IRA to an unemployed individual to pay for health insurance after leaving a job if the individual has received unemployment compensation for 12 consecutive weeks is an exception to the 10% penalty....

Tax Law (Questions About Taxes): LLC or Corp, federal tax id, www irs gov
federal tax id, www irs gov, legal formalities: Karl, Thanks for your question. First, you should know that any business entity you select is not retroactive. Anything you have done to this point is simply a sole proprietorship, filing a Schedule C as a part of your 1040. An LLC is the simpler...

Tax Law (Questions About Taxes): Mortgage Debt Forgiveness, cancellation of debt, debt forgiveness
cancellation of debt, debt forgiveness, mortgage debt: Michael, Thanks for your question. Unfortunately, for you, the law was written so that when it became a rental unit, it was no longer classified as a primary residence. The ability to exclude the COD income is contingent on it being your primary residence....

Tax Law (Questions About Taxes): musical instrument sale, return thanks, stancil
return thanks, stancil, original cost: David, The cost of repairs cannot be added to your cost. Actually, if you depreciated the cost of the instrument or if you expensed it outright, you have an reduced basis in the instrument. For example, if you expensed it, your basis is now zero, so...

Tax Law (Questions About Taxes): Non-profit donations, moose international, profit donations
moose international, profit donations, fraternal organization: Debbie, Thanks for your question. First, you can only deduct an item in the year in which it was paid. Thus, you can deduct the contribution in 2011, if it is deductible. You can file an amended return for that year. Second, Moose International...

Tax Law (Questions About Taxes): non-resident alien spouse filing question, alien spouse, stancil
alien spouse, stancil, guatamala: Bill, Unless she agrees to have her income treated as taxable in the U. S., he must file as single. If she has a TIN and agrees to subject her income to U. S. taxation, they can file a joint return. This is actually pretty basic information. Hope this...

Tax Law (Questions About Taxes): Overpaid wages - repaid in subsequent year, but don't itemize, 1040x, wages
1040x, wages, tax return: Mike: In this situation the employer must give you a corrected w-2 for the year of 2012 or make an adjustment to the 2013 w-2. Since you were over paid in 2012 its my opinion that the adjustment must be made for 2012. In that case you would file a 1040X....

Tax Law (Questions About Taxes): Owe back taxes from the year 2001, back taxes, IRS
back taxes, IRS, old taxes: The bad news is that the $6,000 will have grown quite a bit. But the good news is that the balance may be written off soon. The IRS has ten years from the date of assessment to collect the tax. Assuming that the liability was assessed in 2002 or 2003, it may...

Tax Law (Questions About Taxes): part year residency, self employment income, self employment tax
self employment income, self employment tax, longtime residents: Jeanette, Thanks for your question. It s not quite that simple. You will file as a part-year resident in both states. Earned income (such as your SE income) attaches to the state where it was earned. So, in you case you need to allocate it between the...

Tax Law (Questions About Taxes): Question..., insurmountable obstacle, sole proprietor
insurmountable obstacle, sole proprietor, dbas: Yes, you can file new names for your LLC to operate under. Those would be DBA (Doing Business As) or Fictitious Name Filings. The recording of DBAs are handled at the county level. But let s take that a step further. You use the word separate . A DBA is...

Tax Law (Questions About Taxes): reduced maxiumum exclusion, 1099c, maximum exclusion
1099c, maximum exclusion, principal residence: Christine, Thanks for your question. You do not meet the exclusion criteria, as the house was not occupied by your as your main home for 24 of the previous 60 months prior to sale. Since is it not a principal residence, it does qualify as business property....

Tax Law (Questions About Taxes): sale of dad's condo, critical element, elderly father
critical element, elderly father, stancil: Lynda, Thanks for your question. Some clarifications. First, you do have basis in the condo. Your basis is a transferred basis from him. In other words whatever basis (cost) he had in the condo transferred to you. Second, the critical element...

Tax Law (Questions About Taxes): Self-Employed Health Insurance Deduction, employed health insurance, self employed health insurance
employed health insurance, self employed health insurance, self employed health insurance deduction: The health insurance deduction is not limited to the self employed. Your wife may be able to reduce your taxes by a portion of the premiums that she has paid in. The Health insurance deduction is simply an extension of the itemized deductions. This...

Tax Law (Questions About Taxes): Self Employment for monir child, legal formalities, sole proprietorship
legal formalities, sole proprietorship, sewing projects: Amanda, Thanks for your question. She can file her taxes as a Schedule C sole proprietorship which doesn t require any legal formalities. The Schedule C will be a part of her 1040 and she will also need to include a Schedule SE for the self-employment...

Tax Law (Questions About Taxes): SMLLC, checkout counter, unexpected expense
checkout counter, unexpected expense, specific home: While many promoters of the LLC claim liability protection. . . It s in the name isn t it? The courts have not necessarily given in to the hype. The serial LLC is just the latest attempt, another stab at the apple so to speak, for liability protection...

Tax Law (Questions About Taxes): Spouses filing residency in two different states, sctax org, duty army
sctax org, duty army, tuition credits: Stanley, Thanks for your question. The answer is a qualified Yes. You can file that way, but it is somewhat complex and available only under certain circumstances. This link is to the NC rules for filing status. http://www.dor.state.nc.us/taxes/individual/status.html...

Tax Law (Questions About Taxes): Stcok transfer tax consequences, timely reply, private shares
timely reply, private shares, tax consequences: No. That would be illegal as the transfer is being made in consideration services rendered. Due to the amount involved, if the IRS picked up on it, you (and he) could be liable for a substantial understatement of tax liability. This penalty can be up to...

Tax Law (Questions About Taxes): tax deductions, adjusted gross income, irs rules
adjusted gross income, irs rules, itemized deduction: Ron, Thanks for your question. If the damage that you were responsible for qualified as a casualty under IRS rules, you could deduct it as an itemized deduction. However, the loss must first be reduced by $100, then reduced by 10% of your adjusted gross...

Tax Law (Questions About Taxes): Tax Status of Disability Benefits, medical insurance premiums, 3rd party insurance
medical insurance premiums, 3rd party insurance, long term disability benefits: Frank: It is but at this moment I can not locate which pamphlet it is. Usually when taxed an un taxed money is involved in any situation with the IRS the un taxed money used is reported first before any after taxed money is used. When it come to disability...

Tax Law (Questions About Taxes): Tax woes, tax woes, military retirement
tax woes, military retirement, adult daughter: Yes, if he filed without your knowledge or consent, he had committed fraud, regardless of when it occurred. You could file a return claiming what you have a right to claim. Even though he claimed it, if he did not have the right to do so, you are still...

Tax Law (Questions About Taxes): taxation, form 4868, stancil
form 4868, stancil, irs: Peter, Thanks for your question. Filing a federal extension will cover you for Maryland. You get a refund. When you file your return show your payment, along with any W-2 or other withholding. The only penalties are if you owe and do not pay the...

Tax Law (Questions About Taxes): Taxation on the dividends of a LLC in Delaware, taxation of dividends, income tax rates
taxation of dividends, income tax rates, personal holding company: Erik, Thanks for your question. The income would be taxed at ordinary income tax rates, which depend on the level of your income. A single member LLC is taxed as a sole proprietorship unless you elect tax treatment as a corporation. These rates vary...

Tax Law (Questions About Taxes): Using IRA to pay for medical expenses and premiums, medical insurance premiums, ira funds
medical insurance premiums, ira funds, adjusted gross income: Thanks for your question. You can withdraw from your IRA to pay for any medical expense that would be deductible on Schedule A. However, only the amount withdrawn that exceeds 7.5% of your adjusted gross income can be excepted from the penalty. On line...

Tax Law (Questions About Taxes): Vacant Land Sale Tax, cancellation of debt, gross proceeds
cancellation of debt, gross proceeds, stancil: Mary, Thanks for your question. Your cost basis is somewhat complex. If you paid tax on the cancellation of debt income, your basis is $68,900. If you excluded the cancellation of debt income on your return, you must reduce your basis by the amount...

Tax Law (Questions About Taxes): Write-off, necessary business expense, irs office
necessary business expense, irs office, vacation rental property: I want you to succeed. I appreciate that you have given direction to your plan. You see an opportunity and want to take it. But Scott, you have to execute perfectly. Tax application is a grey area. Everyone has what they believe to be hard and fast lines that...

Tax Law (Questions About Taxes): Church Daycares, daycares, tax question
daycares, tax question, health department: Your tax question is too broad for me to give a specific answer. But generally if the daycare is operated by the church. It would have the same exclusions as the church. However, if the daycare is ran by an individual at the church building it would not...

Tax Law (Questions About Taxes): dependent qualification, time college student, including college
time college student, including college, time student: How would they (IRS) know is not the legal threshold that you want to rely upon, is it? Actually upon second thought, The fact she is away at college allows you to take her as resident of your home - as long as she is considered full time student....

Tax Law (Questions About Taxes): emplyment and self-employment SS taxes, self employment tax, www irs gov
self employment tax, www irs gov, medicare portion: Todd, Thanks for your question. You will only need to pay the Medicare portion of the self-employment tax. However, depending on your filing status, you may be liable for the .9% additional Medicare tax. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Questions-and-Answers-for-the-Additional-Medicare-Tax...

Tax Law (Questions About Taxes): Estate tax apportionment, texas probate code, applicable state law
texas probate code, applicable state law, residuary estate: Estate tax is an expense of administration If the estate is taxable, then by all means the tax prep person (you!) should have done this!!! Taxable estates are not for beginners. Generally wont change net distributable unless there are specific cash...

Tax Law (Questions About Taxes): Expatriate Purchasing Vacation Home in US, income tax purposes, individual income tax
income tax purposes, individual income tax, dwelling place: Dear Nathan, Purchase of vacation home in Montana will not trigger residency. Having a primary residency indeed will weaken your position. The rules for residency requirements in Montana are unambiguous: You are a resident of Montana for individual...

Tax Law (Questions About Taxes): Hunt Club Tax Exemption, irs income tax, www irs gov
irs income tax, www irs gov, homework section: Do you ask about exemption for a club for the IRS income tax regulations? which it would seem as though you are not making income (charging fees or other costs or services for running the club - so there is no real income tax issue here). from what i see......

Tax Law (Questions About Taxes): international money transfer to US, international money transfer, friend in russia
international money transfer, friend in russia, tax accountant: no tax, but the bank is correct - they would report it but you can explain it away as the repayment of a loan - especially if you have documentation to this effect. Did you report and pay tax on interest in the interim? do you have any paperwork to...

Tax Law (Questions About Taxes): large deposits from abroad, friend in russia, tax accountant
friend in russia, tax accountant, plausible explanation: Dear Alla, Foreign bank transfer will be reported by the bank and you have to be able to explain the source of funds - if IRS asked. Return of the loan is a plausible explanation - however, the loan has to be documented and you must have a promissory...

Tax Law (Questions About Taxes): Loss on Sale of Vacation Rental Property, irs publication 17, www irs gov
irs publication 17, www irs gov, vacation rental property: Penny, Thanks for your question. Your tax accountant is correct. This is a link to IRS Publication 17 dealing with that topic. http://www.irs.gov/publications/p17/ch14.html#en_US_2012_publink1000172296 Hope this helps. John Stancil, CPA...

Tax Law (Questions About Taxes): MA Resident but Live Overseas, living in vietnam, resident cards
living in vietnam, resident cards, state residency: Dear Heather, State residency issues is the most complicated area of expat returns - albeit the federal part can hardly be considered simple. You are not required to file MA tax return (see http://www.taxesforexpats.com/expat-tax-advice/state-residency-rules.html...

Tax Law (Questions About Taxes): Paying tax on money raised through crowdfunding, R&D, Crowd Funding
R&D, Crowd Funding, Funding: Dear Eddie, Thank you for such a relevant and timely question, and best of luck on your development of your device. In answering your question we have to understand what is considered income in the eyes of the Internal Revenue Code (IRC). The IRC does...

Tax Law (Questions About Taxes): Quarterly Estimated Tax Payments, estimated tax payments, irs publication
estimated tax payments, irs publication, self employment taxes: June 15 is the timeframe... You project the earnings ytd and send in the tax on or before the 15th Then in sept, do it again. And again at jan 15, 2014... If income grows (or shrinks) you will naturally annualized income each quarter Self leveling...

Tax Law (Questions About Taxes): Sale of Home, Cost Basis, l 113, principal residence
l 113, principal residence, cost basis: you can exclude up to 250k of gain. so unless you paid next to nothing for it.. and add to the inherited value.. you are in the clear. irc 121 is the exclusion section - note you have two years to get the full 500k (250 each) exclusion for your wife...

Tax Law (Questions About Taxes): Sch C NOL, citations, assumption
citations, assumption, losses: The key(ES) Are two year carry back and ejection to carry forward or back and not just to 2011... P Hi Your assumption (2011) is wrong Before you totally F it up, give me half your fee and I will do it right for you and send u the return done...

Tax Law (Questions About Taxes): Sole proprietor, sole proprietor, tax compliance
sole proprietor, tax compliance, compliance requirements: Dear Pat, You are mixing two contradicting concepts: Sole proprietor and foreign company. Sole proprietor is unrelated to any company. If you are a shareholder (perhaps a single shareholder) in a foreign company you can avoid paying SECA taxes if company...

Tax Law (Questions About Taxes): SUB S CORP, DIVORCE TRANSFER, DISTRIBUTIONS, MORE, financial affidavit, income tax returns
financial affidavit, income tax returns, sworn affidavit: I advise you to (quickly, immediately, and sooner) go hire a good local cpa or someone with a head on their shoulders ad your new accountant does not sound like a winner.. I would make sure they know about innocent spouse law and how to approach the amended...

Tax Law (Questions About Taxes): Tax on Business, business purpose, business trip
business purpose, business trip, tax deduction: Are you already in the business of real estate professional? No deduction unless you are And then trip has to be primarily for research. Can t have too much fun while you are there. But it sounds like a fun adventure that you want to layer In a...

Tax Law (Questions About Taxes): tax forms required, federal tax form, federal tax forms
federal tax form, federal tax forms, income tax return: Tom, Thanks for your question. Any income that is received to the estate should be reported on Form 1041, and a NY estate income tax return. If there was income to her prior to her death, that should be reported on her 1040 and corresponding state return....

Tax Law (Questions About Taxes): tax laws, finance courses, law expert
finance courses, law expert, public finance: I graduated first in my class with a 4.0 gpa, took a MS in tax and extra post graduate public policy and public finance courses and have been a cpa preparing taxes for over 20 years with well more than the required 40 hours annually of CPE is how I do (sic)...

Tax Law (Questions About Taxes): Tax on sale of a co-op apt. in NYC, qust, taxable estate
qust, taxable estate, executor: Bigger picture. How much is Mom s estate going to be? Roughly? Taxable estate or not? Generally, adding you only guarantees that you don t get a step up in basis on 1/2 of any increase in value from now till her death. I don t think I would...

Tax Law (Questions About Taxes): Taxes on sale of gifted land, inheritance taxes, mark thanks
inheritance taxes, mark thanks, stancil: Mark, Thanks for your question. You will owe tax at the capital gain rate on the excess of the sale price (minus selling expenses) over your parents cost basis. What you do with the proceeds does not have any effect on its taxability. The gift will...

Tax Law (Questions About Taxes): Unemployment and 1099 in California, unemployment checks, stancil
unemployment checks, stancil, freelance job: Nay, Thanks for your question. He can t be penalized but his employer can get into trouble with the IRS for misclassifying him as a contractor when he is indeed an employer. Since he is self-employed he no longer qualifies for unemployment. If he...

Tax Law (Questions About Taxes): 1099 and taxpayer identification numbers, taxpayer identification numbers, solicitation letter
taxpayer identification numbers, solicitation letter, social security numbers: Dear Kristina, You were supposed to take tax ID numbers from the contractors before you hired them. Aside from the need to deduct those expenses, you were required to do so to prevent hiring illegal immigrants with no right to work in the U.S. Now you...

Tax Law (Questions About Taxes): 2011 return being audited, payment voucher, letter answer
payment voucher, letter answer, running the risk: I would give them a listing of the expenses by category: office supplies, meals, etc. than total them up. Show the expenses you did take and those you did not deduct. Don t send the a picture of the receipts, its not that serious, yet. It is highly likely...

Tax Law (Questions About Taxes): 2nd home for family member, irs purposes, personal residence
irs purposes, personal residence, necessary expenses: Whether or not it is a personal residence or a rental, the property taxes and interest are deductible. the 14 day personal use limitation allows you to rent your primary residence to someone else for any amount of rent and not have to account for that...

Tax Law (Questions About Taxes): 401K, stancil, smartmoney
stancil, smartmoney, taxable income: Susan, Thanks for your question. Most likely your 401(k) is taxable income, so you should file a return if you are above the threshold for filing. That threshold depends on your filing status and the year that you are making reference to. http://www.smartmoney.com/taxes/income/in-some-cases-you-dont-need-to-file-a-tax-return-20713/...

Tax Law (Questions About Taxes): Canadian working in California, state disability insurance, state income tax
state disability insurance, state income tax, working in the usa: Ricky: I have plenty on Americans working abroad. However, In my tax practice in 40 years I have never filed a tax return for a Canadian working in the USA. We have several Tax Deferred programs but in order benefit from them you must be a citizen or...

Tax Law (Questions About Taxes): Cash in stocks, 25th wedding anniversary, stancil
25th wedding anniversary, stancil, capital gain: Mike, Thanks for your question. That depends on your basis in the stock. You will pay tax, at capital gain rates on the excess of your proceeds minus your basis. Since the stocks were inherited, your basis is the fair market value as of date of death....

Tax Law (Questions About Taxes): Church charging rent, irs requirement, irs audit
irs requirement, irs audit, 501 c3: Shantel: The rent income is the same as the collection plate on Sunday. Its not PROFIT until expenses are deducted from the income (rent + collection plate) - expenses = profit or loss. Anyway I am sure you file a 990C information return at the end of...

Tax Law (Questions About Taxes): Church Preschool, tax id number, limit liability
tax id number, limit liability, stancil: Tasha, Thanks for your question. Since you have chosen not to use the church tax ID number, you are separate from them and must establish your own 501(c)(3) exemption. I would suggest that you consult an attorney about limiting your liability through...

Tax Law (Questions About Taxes): Estate Tax, executrix of an estate, estate interest
executrix of an estate, estate interest, stancil: Linda, Thanks for your question. The loss on the sale of the house is fully reported on line 4 of page 1 of the 1041 in the year of sale. The full loss is not included on line 1 of the K-1, but on line 4a as a negative amount. Each beneficiary then...

Tax Law (Questions About Taxes): Foreign earned income, irs issues, oil rig
irs issues, oil rig, foreign earned income: Jay, Thanks for your question. Unfortunately, the IRS is correct. In order to qualify for the foreign earned income you must reside or have a physical presence in a foreign country for 330 days in a 12 month period. When you are working on the oil...

Tax Law (Questions About Taxes): Ga tax and 401K, personal income tax, georgia taxes
personal income tax, georgia taxes, retirement income: Anita, Thanks for your question. The 401(k) will be taxed in your state of residence at the time of withdrawal. As you probably know, Florida has no personal income tax. In Georgia, you can exclude up to $35,000 of retirement income from state tax...

Tax Law (Questions About Taxes): HOA - Applying for EIN, quarterly estimates, letter of resignation
quarterly estimates, letter of resignation, assessment payments: Each year the responsible party is declared on the tax return. As you migrate out of the position and someone else takes control the IRS will be notified at least at the filing of the tax return and possible at that the filing of the quarterly estimates. ...

Tax Law (Questions About Taxes): Job Seeking Expenses (tax), irs auditor, allowable deduction
irs auditor, allowable deduction, seminar event: Chris: Yes you may take one or the other but not both on the same trip. When using mileage as a deduction you MUST/SHALL keep a yearly log of all your miles driven including the miles that are not a deduction. The lunch/entertainment expenses only half...

Tax Law (Questions About Taxes): New HOA: Applying for EIN, necessary paperwork, occupancy level
necessary paperwork, occupancy level, responsible party: Jeremy: A corporation must have a physical address and it must have a telephone number of a person that IRS can contact who has legal authority to make decisions for the corporation. That is a decision that the corporation should make when it has a meeting...

Tax Law (Questions About Taxes): Personal Taxes, self employment income, self employment tax
self employment income, self employment tax, minimum threshold: Sharon, Thanks for your question. It depends on your filing status, age, and the nature of your income. If you are under 65 and single, you don t have to file if your income is under $9,750. However, if your income is self-employment income you must...

Tax Law (Questions About Taxes): phantom tax cost basis, cost basis, shares trade
cost basis, shares trade, adjusted basis: Your cost basis in the stock is equal to your purchase price if purchased with cash, or the adjusted basis of the asset that you exchanged for the stock. You exchanged a patent for stock. What was your basis in the patent? If you had purchased the patent,...

Tax Law (Questions About Taxes): Redfin rebate?, merriam webster dictionary, real estate commissions
merriam webster dictionary, real estate commissions, deductible expense: Maggie: I have not a clue. Until I read your e-mail I thought redfin was a breed of tuna. If the buyer is getting a portion of the cash he/she paid as the down payment on a real estate transaction it may not be income. Since the net result of his cash...

Tax Law (Questions About Taxes): reporting income from oil pipeline easement, irs info, 1099misc
irs info, 1099misc, oil pipeline: Charles, Thanks for your question. The damages are not taxable income, but the amount must be used to reduce the basis in your property. The 1099S amount is taxable income. You would allocate basis from the entire property to this and pay tax (at capital...

Tax Law (Questions About Taxes): selling stocks, Stocks, Basis
Stocks, Basis, Estate: Dear Mike, I am sorry for your loss, below is the answer to your question. First we have to determine the nature of the gain or loss that you will sustain when you will sell the stocks. 1-In general a taxpayer who inherits property is considered...

Tax Law (Questions About Taxes): Shutting down llc, personal tax return, llc report
personal tax return, llc report, arizona llc: Is your LLC a pass through entity? Most are. Do you realize that the debt, when deemed Bad Debt by the lender, will be attributed to the LLC and therefore to you as income, and taxable? If you close the LLC then the debt goes directly to you, if you...

Tax Law (Questions About Taxes): Spouses residents of different states, illinois state income tax, income tax return
illinois state income tax, income tax return, nonresident returns: Steve, Thanks for your question. For Illinois, if you file a joint federal return and one spouse is a full-year Illinois resident while the other is a part-year resident or a nonresident (e.g., military personnel), you may choose to file “married filing...

Tax Law (Questions About Taxes): Tax break on not claimed dependent?, income tax purposes, dependency exemption
income tax purposes, dependency exemption, t claim: Stephanie, Thanks for your question. You can t. In order to take the education credits, you must be able to take a dependency exemption on your taxes. You can make a gift of the tuition to your child but gifts are not deductible for income tax...

Tax Law (Questions About Taxes): Tax Free Meals, employee meals, regional utility
employee meals, regional utility, contractor association: Lisa, Thanks for your question. Meals that are purchased as a part of a conference are non-taxable to the employee when reimbursed or paid for on behalf of the employee. Meals consumed as a part of trade show participation are also non-taxable to...

Tax Law (Questions About Taxes): Tax Returns for Condominium HOA, tax period, unincorporated association
tax period, unincorporated association, do the right thing: Accrual is normally the method used to attribute income to future expenses. Accrual allows you to foresee and prepare for future expenses in the current years tax calculations. For example, the streets within the association have a projected life of...

Tax Law (Questions About Taxes): Taxes, S-corp, Election
S-corp, Election, 2553: Dear Carlos, A Sub-Chapter S-Corporation is a federal election done after form a regular C-Corporation. You will have certain time limit to make the election (form 2553) were all the shareholders have to consent to the S-Corp election. Since you have...

Tax Law (Questions About Taxes): Taxes on Contest Winnings, irs gov, irs agent
irs gov, irs agent, contest winnings: Any payment of any kind for services can be attributed as income and taxable. If I was a car salesman and the owner paid me in cars, the FMV, fair market value of the cars would be attributable to me as income. Winning a game show is taxable. In the...

Tax Law (Questions About Taxes): unearned income-code v, 83b election, unearned income
83b election, unearned income, 12a: wow. what part of the following was unclear? and to not be a 10 for knowledge, I would have to be wrong, which I am not.. so what is up with that? you simply dont like the answer? they are not earned in earlier periods (unless you made an...

Tax Law (Questions About Taxes): Benevolence question, needy person, stancil
needy person, stancil, benevolence: M, Thanks for your question. The funds are not taxable income to the recipient. I would add tha if funds are given to the church designated for that individual and not to the general budget or the benevolence fund, the contributions are not deductible...

Tax Law (Questions About Taxes): capital gains taxes, capital gains tax exemption, income tax bracket
capital gains tax exemption, income tax bracket, capital gain tax: David, Thanks for your question. I hate to be the bearer of bad news, but precious metals are classified by the IRS as collectibles. This means that they are not subject to the usual capital gain treatment, but are subjected to a 28% collectibles capital...

Tax Law (Questions About Taxes): church tax law - 501 C(3), property tax exemption, c organization
property tax exemption, c organization, parsonage: church may purchase land. no problem there. church may rent house to pastor. no problem there. if church rent at below fmv, then pastor has income, but he might be able to avoid recognition of income for the imputed gain by using parsonage exemption....

Tax Law (Questions About Taxes): Company vehicle - personal use, income tax rate, s corp
income tax rate, s corp, typical work: they are exempt. the easiest (and fairest and legal, too) method to pick up income for personal use is to take the $1.5 per trip x 2 x 5 x 50 weeks is 750 of income PER YEAR x the roughly 25% income tax rate is a cost of like $200 per year of real economic...

Tax Law (Questions About Taxes): Per Diem question..., california state tax, gross pay
california state tax, gross pay, staffing agency: Hi Sorry for delay - vaca and I forgot to set out if office She is much better off having a portion of her pay marked as per diem and excluding it versus taking gross pay and deducting meal and travel costs 2% threshold on schedule a deductions and standard...

Tax Law (Questions About Taxes): Donations to the US Government, morale welfare and recreation, indian tribal government
morale welfare and recreation, indian tribal government, us air force: Bruce, Thanks for your question. It probably is deductible similar to a contribution to a 501(c)(3) organization. The IRS states that contributions made to the United States or any state, the District of Columbia, a U.S. possession (including Puerto...

Tax Law (Questions About Taxes): Estate Stock Sale Reporting, income tax return, income tax return form
income tax return, income tax return form, successor trustees: Nicholas, Thanks for your question. If the stock is sold by the trust, it would be reported on the trust income tax return (Form 1041). There will be a stepped up basis of FMV as of date of death. It would be best to then have the tax (if any) paid...

Tax Law (Questions About Taxes): estimated tax payments and a past balance due, irs estimated tax payments, irs estimated tax
irs estimated tax payments, irs estimated tax, estimated tax payments: Kristina, Thanks for your question. In theory, the payments will be applied to your 2013 taxes if you submit the estimated payments on a properly completed 1040-ES for 2013. One can never guarantee what the IRS will do, however. Most likely, they will...

Tax Law (Questions About Taxes): Income tax deductions, income tax deductions, social security and medicare
income tax deductions, social security and medicare, federal income tax: Your calculations are correct, Half of more goes to taxes. Did you calculate in Social Security and Medicare? That is an additional 7.65% of the first $106,800, and 1.45% of everything else. And your employer has to pay an additional matching amount. Sadly,...

Tax Law (Questions About Taxes): Inherrited IRA Question, private letter rulings, state tax exemption
private letter rulings, state tax exemption, ira distributions: Tim, Thanks for your question. Probably not. There was a private letter ruling in 2005 in Illinois on this issue and the State ruled that the exemption is available for inherited IRA s. Therefore, this is most likely the law that applies. However,...

Tax Law (Questions About Taxes): Innocent spouse rule applies??, innocent spouse rule, irs representation
innocent spouse rule, irs representation, divorce decree: you should be safe.. what does the divorce decree say about old taxes and the house equity. ? are you still in the house? he moved out? divorce is now final? what does lien say as to years in issue. ? this is not something to leave to a free chat...

Tax Law (Questions About Taxes): IRS LETTER, irs letter, form 1098
irs letter, form 1098, stancil: Carol, Thanks for your question. I presume the document was a CP-2000 from the IRS. Initially you need to respond to the letter, explaining the situation. Don t go into the detail about how you used to claim it, just state something to the effect that...

Tax Law (Questions About Taxes): paying my accountant, tax preparer, business practice
tax preparer, business practice, small claims: Very little is standard when it comes to business. But there are many things that are reasonable. If the tax preparer filed the return and then was not paid, he would have little recourse other than litigation trying to collect. And the cost of litigation...

Tax Law (Questions About Taxes): paying caregiver/employee taxes, irs web site, household employees
irs web site, household employees, eftps: Andrea, Thanks for your question. You can make quarterly payments by going to www.eftps.gov and enroll to make those payments. You can report the taxes on Schedule H as a part of your 1040. This schedule is to report earnings paid to household employees....

Tax Law (Questions About Taxes): Property in Dissolved Subchapter S Corporation, orange county california, income tax returns
orange county california, income tax returns, lawyer check: theoretically, by closing the corporation, you did indeed transfer assets to the shareholder(s)... filing a quitclaim is likely the only way to get the title clear. as long as you have not had any issues since the corp closed which would impact the clear...

Tax Law (Questions About Taxes): Real Estate upon Death, tax burdens, stancil
tax burdens, stancil, fmv: Josephine, You can use Zillow as an estimate of the FMV. I would suggest talking to another Realtor. Most would be willing to give you an estimate of the FMV - it doesn t have to be a full market analysis, just an expert opinion. Hope this helps. ...

Tax Law (Questions About Taxes): is tuition deductible?, mental health discipline, licensed clinical social worker
mental health discipline, licensed clinical social worker, clinical social worker: Jackie, The key is does the additional education qualify you for a new job? It does not matter that you do not intend to work in that field, but only use it for improving your new job skills. For example, as a CPA in the tax area, I would be greatly...

Tax Law (Questions About Taxes): 1099-B and 1099-R, irs document, distribution boxes
irs document, distribution boxes, e trade: Chris, Thanks for your question. In cashing out the IRA you should only have received a 1099-R, which is a distribution from a qualified retirement account. A 1099-B is used for the sale of securities. You should check with e-trade and definitely...

Tax Law (Questions About Taxes): 401k retirement, 401k distribution, 401k withdrawal
401k distribution, 401k withdrawal, 401k tax: Your 401k withdrawals may be fully or partially taxable. If all contributions to the 401k were made pre-tax, then your distribution will be fully taxable. If you contributed some after-tax dollars to your 401k, then you have what is known as cost basis (i.e....

Tax Law (Questions About Taxes): Charitable Contribution of $5,000+, electric wheelchair, miscellaneous itemized deductions
electric wheelchair, miscellaneous itemized deductions, party transaction: Lisa, Got me there. In other cases, where insurance payments are made for a loss on an items, the payments reduce the basis. So that would argue for a basis of $1,000. But I am not certain of this, as I can find nothing that deals with the specific issue....

Tax Law (Questions About Taxes): DCG&T IRA Beneficiary, ira beneficiary, tax consequences
ira beneficiary, tax consequences, stancil: Alex, Thanks for your question. Since it is an IRA inherited from a spouse, she can: 1. Treat it as her own by designating herself as the account owner. This will not change the name of the account. 2. Treat is as her own by rolling it over to her...

Tax Law (Questions About Taxes): EIN, industry classification system, american industry classification
industry classification system, american industry classification, employer identification number: There is a difference between and EIN and a NAICS code (Employer Identification Number, North American Industry Classification System) formerly known as an SIC (Standardized Industry Classification). When you applied for an EIN, you registered your business...

Tax Law (Questions About Taxes): filing exempt, accurate answer, ugly thing
accurate answer, ugly thing, spending habits: It all comes down to actual numbers. If you use the IRS standard dependents, all year there is usually a small refund. Some people spend time to do the actual calculations so that they do break even, but that is a complex calculation not just rounding...

Tax Law (Questions About Taxes): Form 8863, lifetime learning credit, american opportunity
lifetime learning credit, american opportunity, bachelors degree: Larry, thanks for your question. Unfortunately, that is all inclusive. Once you have completed four years of college, you are no longer eligible for the AOTC. You may be eligible for the lifetime learning credit, however. Not as good as the AOTC, but...

Tax Law (Questions About Taxes): husband/wife LLC, self employment tax, sole proprietor
self employment tax, sole proprietor, partnership return: The type of business is not a determinant as to business structure. The key determinant that most people fail to consider is Profit . Is the business profitable? Will it be profitable? If the answer is no then any choice will work just fine. If they...

Tax Law (Questions About Taxes): Income as Business income; Section 179, business tax deductions, home business tax deductions
business tax deductions, home business tax deductions, home business tax: Your business income is calculated on schedule C, attached to your 1040 personal tax return. Your salary or wage that you receive from your employer is NOT calculated on your schedule C. Having not read that book I can t direct you to where the miscommunication...

Tax Law (Questions About Taxes): IRA conversion to ROTH IRA tax, medical expense deduction, ira conversion
medical expense deduction, ira conversion, roth conversion: Stephanie, Thanks for your question. You don t state if you have any unemployment compensation, which is taxable income. I presume that you are filing single. Your income and deductions, based on what you have said are as follows: Interest income...

Tax Law (Questions About Taxes): IRA withdrawal, ira withdrawals, ira withdrawal
ira withdrawals, ira withdrawal, traditional ira: Dean, Thanks for your question. The number is hard to pin down because at that level 50% or none of your SS is taxable. However, you would not have any SS taxed and your marginal bracket would be 15% if you had $24,178 in withdrawals. Above that...

Tax Law (Questions About Taxes): LLC, ground slopes, personal return
ground slopes, personal return, tax consequences: When their mother passed away, the basis of the property was set at FMV (Fair Market Value) the only true way to find the Fair market Value is to put it on the market and sell it, at arms length, to the highest bidder. The IRS can t argue an arms length...

Tax Law (Questions About Taxes): M&EI for self-employed family singing group, irs publication 17, expense deduction
irs publication 17, expense deduction, stancil: Tim, Thanks for your question. The M&IE would be allowable for all member of the group if they qualify. You state that they travel full time. One of the requirements for deducting travel expenses is that you be away from your tax home. The rate can...

Tax Law (Questions About Taxes): mileage, standard mileage rate, stancil
standard mileage rate, stancil, overnight travel: Lynn, Thanks for your question. If he has no tax home, he is considered an itinerant. If this is the case, he cannot deduct any travel expenses, including mileage. You tax home is usually the entire city or general area in which his business or work...

Tax Law (Questions About Taxes): mortgage question, loan forgiveness, mortgage question
loan forgiveness, mortgage question, federal gov: Sue, Thanks for your question. Yes, you will owe taxes on the amount of loan forgiveness. This will be reported on Form 982. If you are insolvent, it may cause at least some of the debt to be non-taxable. Also, since it is a rental you must report...

Tax Law (Questions About Taxes): Question about casualty loss of inventory..., casualty loss, replacement hardware
casualty loss, replacement hardware, stancil: Kris, Thanks for your question. Assuming the equipment is now useless, you can deduct your basis in the equipment. That would be trade in allowance that you gave the buyer - assuming that you booked the sale at full price. In other words, assume...

Tax Law (Questions About Taxes): rental properties, stancil, concrete work
stancil, concrete work, tax form: Sue, Thanks for your question. The only possibility is that you would need to provide a 1099-MISC to any one performing services for which you paid $600 or more and they do not have their own company (Corporation, Partnership, or LLC). Hope this helps....

Tax Law (Questions About Taxes): retirement account rollover, long term investment, roth ira
long term investment, roth ira, taxable benefit: If you are and always will be an employee, then I can t (nobody can) give you a great solution as an . Here are the base facts: 1. That tax differed retirement plans provide no net taxable benefit in most cases. (The math only works if you assume...

Tax Law (Questions About Taxes): roth ira, roth ira, stancil
roth ira, stancil, cpa: Angel, Thanks for your question. You would have to open a separate account in her name. Since you are over age 55 you can contribute $6500 as can she if she is over that age. Additionally, I am sure you know and it is not a problem, but you one of...

Tax Law (Questions About Taxes): Sale of Church Property, tennessee church, outreach center
tennessee church, outreach center, exempt purpose: Gary, Thanks for your question. You will not owe any taxes on the sale. You are not in the real estate business, the property was purchased for use in your exempt purpose, and you have decided that you are not going to use it for that purpose. ...

Tax Law (Questions About Taxes): sdi, disability payments, eitc
disability payments, eitc, income tax credit: Nancy: It could effect your receipt of EITC. That will not be known until you receive your W2 at the end of the year. I am not from California and do not study California law. Some disability payments are not reported as income and some are depending...

Tax Law (Questions About Taxes): Tax liability for relinquishing of LPR status, fawaz, dear mr
fawaz, dear mr, green card: Dear Fawaz, In order to relinquish Green Card, you need to have 5 years of tax returns completed before you submit form 8854. You should also present FBAR reports for the preceding 6 years. You have to file 2011 and 2012 tax returns, pay tax due and...

Tax Law (Questions About Taxes): Business Structure Formation
I think everyone from accountants, lawyers, Brothers-in-law, neighbors, have recommendations. Unqualified, absolute, one-size-fits-all recommendations. So if you have asked this question of someone and they gave you an answer, let s consider that unqualified....

Tax Law (Questions About Taxes): Car allowance, irs mileage rate, company car allowance
irs mileage rate, company car allowance, writing resolutions: Have you documented all of this? that the employees have agreed? that the policy is set in writing? Resolutions, agreements, etc. If that is the case then it is completely valid. Reimbursements to employees cannot exceed government limits, or if they do,...

Tax Law (Questions About Taxes): contribution?, organization travel, travel meals
organization travel, travel meals, restaurant meals: Jo, Thanks for your question. The cost of the trip is a deductible contribution but you must have a letter from the sponsoring organization stating that you were an authorized participant in the trip and that you did make the trip, representing the organization....

Tax Law (Questions About Taxes): death stock cost basis, stock cost basis, rights of survivorship
stock cost basis, rights of survivorship, brokerage account: term has nothing to do with it. could have been 20 years or three weeks ago. you (son) get half when dad did the jtwros. son gets HALF basis as he just did the reverse - gifted to dad. (ouch!) half of everything is dod. reason to fix while...

Tax Law (Questions About Taxes): Deductions for conference host
This is a good example of why you need to manage your own tax issues. The CPA s that say that only 50% of meals are deductible are correct. http://www.irs.gov/publications/p535/ch11.html But your situation doesn t fit squarely into the bucket regarding...

Tax Law (Questions About Taxes): Deemed revenue or deemed gifts?, ownership percentages, s corp
ownership percentages, s corp, vacation location: there really is no provision for additional capital without additional shares in an s corp. it should be structured as a loan. but at the end of the day, there really is no business purpose either... I would think the IRS would actually disallow all losses...

Tax Law (Questions About Taxes): employer paid retirement plan, roth ira, retirement plan
roth ira, retirement plan, 401k plan: taxed when you take it out or receive it. you cannot (generally) roll it into a Roth -- but if you do, it would still be taxable upon the rollover/conversion and then grow tax free and distributed to you tax free in the future. ask employer when you...

Tax Law (Questions About Taxes): Foreign Corporation paying US contractor IRS Question, tax obligations, freelancer
tax obligations, freelancer, irs: no. none. as long as you (and your company) don t come to the usa and do stuff/perform services or have assets and or employees. what is the freelancer doing ? what type of services? how much control do you exercise over them? are they in the business of...

Tax Law (Questions About Taxes): foreign sourced income, student loan interest deduction, capital loss carryover
student loan interest deduction, capital loss carryover, student loan interest: Shone: Yes under some circumstances you can file the foreign tax credit amount on schedule A. Please read the instructions for form 1116 before using Schedule A to understand the do s and do not s. Yes you use 1040 to report your foreign wages and...

Tax Law (Questions About Taxes): Form 1116
Assumes you actually have a cap loss from 2011? Prior loss does not affect current 1116 Pro rata stu loan is apparently a valid deduc on 3b. But I have never seen it down Are u a USA citizen? Or green card? Foreign wages go on line 7 How long...

Tax Law (Questions About Taxes): gift taxes, annual exclusion, donee
annual exclusion, donee, stancil: Yudi, Thanks for your question. If it exceeds the exclusion amount for gifts you would have to pay gift tax on the transfer. There are two types of exclusions. First, is an annual exclusion of $14,000 per donee. If it is less than this amount no tax...

Tax Law (Questions About Taxes): gifts/follow-up, ohio state income taxes, income tax deduction
ohio state income taxes, income tax deduction, operative number: You can give up to $14,000 in gifts to an unlimited number of persons each year and it will be excluded. For this purpose the total of gifts to a particular person is the operative number. For example, you could give $14,000 to 100 different people and...

Tax Law (Questions About Taxes): Hiring a CPA, irs enrolled agent, certified public accountant
irs enrolled agent, certified public accountant, business tax returns: Whether you hire a certified public accountant (CPA) or an enrolled agent (EA) to help you with your tax needs depends on your specific situation. Certified Public Accountants’ (CPA), who are state licensed, specialize in accounting and may or may not choose...

Tax Law (Questions About Taxes): Income guarantee forgiveness, income guarantee, principal portion
income guarantee, principal portion, report interest: Good morning Are you a recruiting agency? or the actual employer? Do you charge (and report) interest? How much and how long is the loan? How often have you done this? for how many doctors? Where (state) are you located? What do you...

Tax Law (Questions About Taxes): IRA Distribution no beneficary, deceased return, final return
deceased return, final return: Hi Fawn, My condolences on your loss. The personal representative is responsible for filing any final individual income tax return(s) and the estate tax return of the decedent when due. A personal representative of an estate is an executor (executrix),...

Tax Law (Questions About Taxes): IRA rollovers, ira rollovers, roth 401k
ira rollovers, roth 401k, roth ira: your 401k was not post tax. it is pre tax dollars (yes, a roth 401k was avaialble recently, but if you worked there very long it is unlikely that it was roth and not regular). did you have any employer stock in the plans? as i said in other reply....

Tax Law (Questions About Taxes): NYC and Tax Questions, income tax withholding, ny state taxes
income tax withholding, ny state taxes, interest dividends: Mike, Thanks for your question. NYC does have a state income tax, or payroll tax. I don t know the rate but it applies to all earnings within the state. You will be subject to income tax to the states of NY and PA. As a PA resident, you will get...

Tax Law (Questions About Taxes): Overseas tax, physical presence test, earned income exclusion
physical presence test, earned income exclusion, foreign earned income exclusion: Hi Mostafa, since you will continue to reside overseas, you will continue to be eligible for the foreign earned income exclusion as long as you qualify under either the bona fide resident or physical presence test. The move of your spouse and kids has no impact...

Tax Law (Questions About Taxes): Questions on Rental Property, cancellation of debt, personal residence
cancellation of debt, personal residence, s gross: Kendra, Thanks for your question. 1. It is a rental property from the first day it is rented. However, you do not lose the exclusion of gain until you have not lived in it for 24 of the prior 60 months as your main home. The item here that often trips...

Tax Law (Questions About Taxes): Re-issue of EE & I Bonds, annual exclusion, current liability
annual exclusion, current liability, steve thanks: Steve, Thanks for your question. Actually the annual exclusion amount is now $14,000. The gift will not create a current liability for you. When you redeem the bonds, you will pay tax on the increase in value from their basis. Alternatively, you...

Tax Law (Questions About Taxes): resident and non resident, double taxation, state return
double taxation, state return, stancil: Diego, Thanks for your question. You owe tax to CT because you are a resident of that state. As a CT resident you are subject to tax on all your earnings regardless of source. You will file a CT resident return. Since you had earnings in NY, you...

Tax Law (Questions About Taxes): S-Corp Salary, s corp, ethical approach
s corp, ethical approach, stancil: Kimberly, Thanks for your question. You could refile for 2012. You could treat it as all being paid on 12/31 so you would only need to file one 941. That is the most ethical approach. If the company did not have a large amount of earnings in 2012,...

Tax Law (Questions About Taxes): shareholder distribution to deceased?, income tax return, income tax return form
income tax return, income tax return form, 1041 instructions: Guest, You are correct on the first three items. The box 16 item does not go on the return, it is informational for a reduction in basis in the S Corp due to distributions received. The box in line 17 goes on Form 4952 line 5. This is a 1040 Form,...

Tax Law (Questions About Taxes): Stock tender proceeds
The proceeds is income, but there is no separate capital gains tax. Sales of investments held more than 12 months are taxed at the preferred capital gain rate. You will pay tax, on the gain only. That tax will be at the capital gain rate if you owned it more...

Tax Law (Questions About Taxes): Student loan repayment and tax obligation, public benefit corporation, student loan repayment
public benefit corporation, student loan repayment, eligible educational institution: Brian, Thanks for your question. It depends. If the lender is a qualified lender, which includes the following: 1. The United States, or an instrumentality thereof. 2. A state, territory, or possession of the United States, or the District of...

Tax Law (Questions About Taxes): Tax Costs for Employer, minimum franchise tax, payroll taxes
minimum franchise tax, payroll taxes, tax partners: It is universally accepted that having employees in a State is one of the criteria for Doing Business . As in: if a corporation is doing business within a state it is obligated to comply with the rules of that state including pay taxes in that state. There...

Tax Law (Questions About Taxes): Taxes for Independent Contractor, free efile, state software
free efile, state software, stancil: Donna, Thanks for your question. You can file your tax return online, but you will need software in order to prepare the return. Programs such as TaxACT (wwww.taxact.com) have free programs and free efile. However, if you are subject to state taxes,...

Tax Law (Questions About Taxes): Trust Taxes, trust assets, stancil
trust assets, stancil, time of death: Christian, Thanks for your question. The basis of inherited property is the fair market value as of date of death. That is the value you should use. Assuming that the trust assets remained in his name and you inherited the trust assets. Hope this...

Tax Law (Questions About Taxes): 1099R
Sam, Thanks for your question. The original broker has to report the transfer via a 1099-R. If it was done correctly, the code in box 7 the 1099-R should be a code G which is a direct rollover. If this is not the code, the form was completed improperly...

Tax Law (Questions About Taxes): Over $200K
Bob, Thanks for your question. No, when you make a non-deductible contribution to your IRA, you should complete Form 8606 as a part of your return every year, whether a contribution is made or not. When you start making withdrawals, your account...

Tax Law (Questions About Taxes): 401K after 70 1/2
moron. give me a zero. I didnt answer anything. without understanding your other income and living situation, no comprehensive answer would be accurate. so, i again say - how the hell do u pay for your living on a few hundred dollars? just social security?...

Tax Law (Questions About Taxes): You may not be able to help, but...
Kayla, Thanks for your question. The amount likely increased because they added the accrued interest to the amount owed. You will probably not get any notice, merely a notice that the amount of your refund has been adjusted. However, if your loan...

Tax Law (Questions About Taxes): Attitude
If you want to DIY, you should have been able to look up what I looked up even if it took 10 min instead of two And if you have rental income you have coin to hire if you can t DIY And... If you have one error, there are 99#•% surely more lurking...

Tax Law (Questions About Taxes): Can my boyfriends mom claim our son
Ciera: You and your boyfriend can not file a joint tax return. You must file your own tax return and your boyfriend must file his own tax return you CAN NOT file a Joint return. But neither you, your boyfriend, nor your mother can claim the child as a...

Tax Law (Questions About Taxes): Capital loss carry over limit?
Frank, Thanks for your question. The loss carries forward indefinitely until it is used up or the taxpayer dies. You apply the loss to capital gains +$3,000 each year. So in your example you take $3,000 loss in 2012, $3,000 loss in 2013, and use...

Tax Law (Questions About Taxes): Charitable contributions paid to an individual
Lillie, Thanks for your question. You are correct in that the gifts would not be deductible for the donor. Any gift tax would be paid by the donor, but one can give up to $14,000 per year to an unlimited number on individuals. There are no income tax...

Tax Law (Questions About Taxes): Commision Checks
Kenneth, Thanks for your question. The employer is wrong. I broached this subject with an IRS agent once with the question, Would there every be a circumstance where someone would legitimately be an employee receiving a W-2 and also a 1099-MISC. ...

Tax Law (Questions About Taxes): Corporate Ownership
i am patrick medusa... not william you dont file a new 2553... you dont need to assign a par value (that usually only has an issue with the secretary of state for your home state. not an IRS tax issue. essentially, you have to sell him his pro rata...

Tax Law (Questions About Taxes): Depreciation for Water Heater in Residential Rental
hi michael if you have a residential home... means you have a few extra dollars to pay a cpa to do your taxes... I only charge $500 a return. depending upon where you live, you could even do better at HR Block. I am serious. I wonder what else you...

Tax Law (Questions About Taxes): Disability code 3 on 1099-R
Carolyn, Thanks for your question. There is no disability code for the 1099-B, as the reason for such a code is to enable you to avoid the 10% penalty for early withdrawal. You will need to have Publix reissue the 1099-R for a disability exception code....

Tax Law (Questions About Taxes): Estate taxes - Gift Taxes - Intestate
I am in VA a few days a week.if you bed help let me know (my home is in CT) I am happy to meet if close to NOVA. CALLS IF DOWN AT THE SHORE We can (easialy) get you where you want to be Also, the Ira will cause income tax inclusion on your 1040 ...

Tax Law (Questions About Taxes): Estimated Income Tax
Winnie, Thanks for your question. When your income changes from year to year, as in your case, you can adjust the amount of estimated payments you are making to conform to your current level of income and estimated taxes. Hope this helps. John...

Tax Law (Questions About Taxes): Estimated Taxes and Self-Employment
David, It may or may not increase your EIC. That is a number that is difficult to predict without more detailed information about your tax situation. There is a point where it maxes out and additional income reduce the EIC. It depends on the number (if...

Tax Law (Questions About Taxes): Farm selling
Ms. Lynch: When your mother inherited the property from your father she received it at one value. When she gave it to your brothers and sisters the value of the property for income tax purposes should have been stepped up to the current market value. ...

Tax Law (Questions About Taxes): How do I file?
Emily, Thanks for your question. Technically, you were an employee and should receive a W-2. But companies often pay interns with a 1099-MISC because they are uninformed or they know there is little likelihood of the IRS catching the erroneous filing....

Tax Law (Questions About Taxes): Filing married
Ed, Thanks for your question. They cannot file as married unless they are married or reside in a state that recognizes common law marriages and they comply with the state laws. Texas is one of those states, calling it an informal marriage. Under...

Tax Law (Questions About Taxes): Form 709
sort of like speeding. no harm no foul if the tree falls and nobody notices. the law is that you need to file a return. true, no tax due if you dont. but i cant advise you to skip it but likely 99.99999% never any damage. in the 1 million th chance...

Tax Law (Questions About Taxes): Fractional reserve Lending
Wake up Juan. Splash water on your face and listen... In your examples, you made a 500 deposit into the bank and they will pay you a pittance of interest and send you a 1099 detailing the amount paid. Period You report that income on schedule b and...

Tax Law (Questions About Taxes): Gift tax?
Your gain would be taxable income at the capital gain rate, based on what you have told me, some of it would be eligible for the zero rate. The remainder would be at the 15% rate. Also, I did not mention that the tax would be on the sale price unless...

Tax Law (Questions About Taxes): home office deduction
Joe, Thanks for your question. The storage areas are not office space, so I would simply put them on as depreciable assets - Storage shed or Storage area. Assign the shed its actual cost or an allocated cost as part of the basis of the house if it was...

Tax Law (Questions About Taxes): income tax
Mike, Thanks for your question. No, if your income level exceeds the minimum for filing you must file regardless of any amount owed or refund due. This amount varies depending on your age, filing status, and dependency status, so I can t tell you that...

Tax Law (Questions About Taxes): interest paid on contract for deed
Phil, Thanks for your question. Since you are not in the business of lending you do not have to issue a 1098. Just give him a statement that includes your name, address, and SSN along with the amount of interest paid during the year. The IRS will...

Tax Law (Questions About Taxes): LLC member and Futa calculation
Abby: For both the state (SUTA) and federal (FUTA) the income of the members of the LLC are excluded (not exempt) from being put on either reporting form. A member is not a paid employee but rather an investor able to receive a return on investment. At...

Tax Law (Questions About Taxes): LLC tax question
Joseph, Thanks for your question. If you have made the election to have the LLC taxed as a partnership or S Corp, the profit is passed to the owners and they pay tax on their share of the profits regardless of how much they took out of the business....

Tax Law (Questions About Taxes): Long Term Disability Payments
generally, if you paid for the premium with after tax dollars then the receipts are not taxable, if you paid for it with pre tax dollars (or the employer paid) then it is taxable. sounds like employer paid the premiums and you received replacement income...

Tax Law (Questions About Taxes): Military Retirement and Taxes
you are taxed on all income where you are a resident. if you are working in arizona, and have done for a little while, you are likely now an arizona resident. you can return to texas and then be a texas resident, but in the meantime, you are an arizona...

Tax Law (Questions About Taxes): oversea employee tax
If you are able to exclude the maximum amount of the foreign earned income exclusion, you will have no tax liability. If you can t use the exclusion, you liability depends on your marital status, filing status, itemized deductions (if any) and any dependency...

Tax Law (Questions About Taxes): overseas work, military contractors, foreign earned income exclusion
military contractors, foreign earned income exclusion: Hi Greg, you would likely qualify for the foreign earned income exclusion under the physical presence test. Since your likely qualification period (assuming less than 35 days in the US during the 365 days qualification period) will include only part of 2013,...

Tax Law (Questions About Taxes): Personal income tax
a. if you did not pay for their care and they did not live with you 185 days, she gets the kids and child tax credits and also the right to claim head of household (with commensurate lower rates). period. this is the case - REGARDLESS OF THE AGREEMENT....

Tax Law (Questions About Taxes): property taxes
Depending upon local rules You do owe tax when you buy it I the property (home) not land Likely also owe the land owner for the portion of tax you owe If you own it you owe tax What am I missing - it seems pretty simple. Even if the seller is...

Tax Law (Questions About Taxes): Question About Rules Governing Who Can Claim a Dependent
John, Thanks for your question. If you provide over half the support and the child lived in your household for over half the year (while he was born), you can claim the child as a dependent. The fact that it is not your wife s child is not an issue...

Tax Law (Questions About Taxes): refund for FICA tax on severance pay
If you will look at a 1040X, you will see a box for making an explanation of the changes you are making. File your regular return, then file the amendment at least a month after you file the original. Otherwise the IRS may get the X form first, and get confused....

Tax Law (Questions About Taxes): Rental property
Form 4797. (Sale of biz property) Amount received less amount if basis. (The lower !!! Of what you have into the property basis less depreciation. Or or or fair market basis when you converted from personal to rental (lower of, I did mention?) ...

Tax Law (Questions About Taxes): Sale of home with multiple owners
Charlotte, Since the house was a gift to the children, the value as of the date of the gift is not relevant. The children s basis will be a transferred basis from the parents. But at that point you only owned 20% each as your parents still had an ownership...

Tax Law (Questions About Taxes): sale of rental property
A You need a better lawyer B It should be a 2014 adjustment unless you knew of it and were reasonably certain of the expense at end of 2013 Reasonably complicated area of law - much more at play - recapture of depreciation, did you make an overall...

Tax Law (Questions About Taxes): scorp disolve
When a business is terminated, the IRS requires notification so that they can deactivate the Tax ID number. If the business starts anew, the IRS will reactivate the number. Chances are that nothing will occur if you don t deactiviate the number. But...

Tax Law (Questions About Taxes): self-employment tax
Lee, Thanks for your question. First, any income must be reported regardless of amount. So, yes you need to report it. Second, you do not need to worry about the self-employment tax as your profit is under $400. Any profit less than that amount...

Tax Law (Questions About Taxes): SEP IRA for LLC
Yes, in both cases. Nothing will appear on the 1065 in regard to the SEP, it will basically be a SEP for a self-employed person, so each partner is on his own as to how much to fund. You can contribute the lesser of 52,000 or 20% of net SE income after one-half...

Tax Law (Questions About Taxes): Social Security Benefits and Claiming and Dependent
It still might be more advantageous financially for mom to take Have to compare with and without for both Also need to confirm mom can claim based upon her relative other inputs. Which if he only gets 10k in income - house value etc should cover it...

Tax Law (Questions About Taxes): Out of state dependent student
Kendra, Thanks for your question. They don t need to do anything special, just claim you as a dependent. Since your earnings were under $500, the only reason you would need to file would be to get any income taxes that were withheld. If you do file,...

Tax Law (Questions About Taxes): Tax filing
Dear Golnar, Thank you for your inquiry. We would gladly handle your U.S. tax reporting needs and will provide you with tax advice most suitable to your situation. If you would like to engage our services, you should sign up as a new client at the Sign...

Tax Law (Questions About Taxes): tax help
Ask, but you probably won t receive. As I stated in my previous answer to you, many companies use a 1099 because they can get away with it. It you wanted to pursue it, Complete a SS-8 Form and send it to the IRS. They will make a determination as to...

Tax Law (Questions About Taxes): Tax for IRA early withdrawl.
Heon, Thanks for your question. Since you withdrew the $5,000 before the end of the year of the contribution, it is as if it did not happen. No penalty, and obviously no deduction. To get a deduction you would have to contribute new money. You...

Tax Law (Questions About Taxes): Tax Question on Church Purchasing a Car for the Pastor
Tammy, Thanks for your question. The car is considered compensation to the pastor, even if it is a gift to both he and his wife. She received it because of the position held by her husband. The cost of the car is reported in box 1 of the W-2, along...

Tax Law (Questions About Taxes): Tax on rental income for mon residents
Jeff, Thanks for your question. Basically you report the rental income in CA on a CA non-resident return. Report everything on your MN return. MN will give you a credit for tax paid to CA, but you will have to show it on your MN return. Hope this...

Tax Law (Questions About Taxes): Taxes Filing
Ang, Thanks for your question. If that is your only income you do not need to file. However, if you received unemployment benefits, those are taxable and you may need to file. Also, if any income tax was withheld, you may want to file to get those...

Tax Law (Questions About Taxes): Taxes On Royalties for Gifted Land to Church
Tammy, Thanks for your question. First things first, the royalties are NOT taxable income. A not-for-profit organization is subject to tax on it unrelated business income. In order to be subject to that tax, three requirements must be met: 1. It...

Tax Law (Questions About Taxes): Working in different states
Brian, Thanks for your question. You can have the withholding changed, but you will have to file an AZ return. You will have to file in SC as a full year resident, reporting all your income to SC. You can take a credit on the SC return for taxes...

Tax Law (Questions About Taxes): 401k
no you cant do a super stuff 401k if they dont offer. you can do a roth or regular ira. just for jollies. do you have employer (ex) stock in the 401k? with increased value over basis? if so, I just earned my 6pack of beer :) send new question...

Tax Law (Questions About Taxes): 401k and taxes
Lou, Thanks for your question. Unfortunately, a 401(k) is always tied to your employer and you can only make contribution to the plan as an employer. As an employee, your options for a retirement plan are limited to a traditional or Roth IRA, with a...

Tax Law (Questions About Taxes): amendment and form 982
James, Thanks for your question. If you included the 982 with your original return, I do not understand why the IRS did not accept it, unless the form was not completed properly. First, if the CPA did not know what a Form 982 was, I would find another...

Tax Law (Questions About Taxes): Capital gains tax
Tim, Thanks for your question. First, her basis in the house depends on whether or not she was a co-owner when your father was alive. If this is the case, her basis is 1/2 of the original cost plus 1/2 of the fair market value at the time of his death....

Tax Law (Questions About Taxes): Contractor state taxes
Susan, Thanks for your question. The employer is not correct, but it is not likely you will convince them otherwise. However, you can file a Form NC-4 EZ. On line 3, check that you are exempt from NC withholding because you expect no tax liability....

Tax Law (Questions About Taxes): Distributions
Kenneth, You might want to structure the whole thing as an investment club.http://www.sec.gov/investor/pubs/invclub.htm IRS Publication 550 has some information on Investment Clubs.http://www.irs.gov/publications/p550/ch01.html#en_US_2013_publink100010157...

Tax Law (Questions About Taxes): Filing back-taxes
Dear Tuan, You are a strong candidate for filing through the Streamlined Foreign Offshore Procedure (aka amnesty program). You can find the program details at http://www.taxesforexpats.com/services/new-irs-program-delinquent-taxes.html. I would not...

Tax Law (Questions About Taxes): Final Form 1065 return
Jeff, Thanks for your question. I presume that you are still utilizing the same EIN number. You don t have a taxable transaction, as he did not sell his interest in the business. It is still the same LLC,the only change that occurred is that it is now...

Tax Law (Questions About Taxes): foreign retirement package
Eric, Thanks for your question. You would report that on line 16, just as you would with a domestic pension plan. However, you need to consult a tax advisor (CPA or enrolled agent) about how much of it is taxable in the US. This is dependent on what...

Tax Law (Questions About Taxes): Inheritance Tax Question
Ally, Thanks for your question. Not unless the amount transferred was in excess of $5,340,000. The Federal government does not have an inheritance tax, but does have an estate tax. No tax is due unless the value of the estate exceeds $5,340,000. ...

Tax Law (Questions About Taxes): Multiple W-2 forms from the same employer
David, Thanks for your question. Even though they are owned by the same person/organization, each of company or EIN is independent of the other for these purposes. Therefore you will get a separate W-2 for each company, reflecting your status with that...

Tax Law (Questions About Taxes): NJ-NY income taxes
Dear Chaim, You have to file NY resident return and report income derived from NJ. NY residents pay tax based on NY income source (which is not the case) and also based on residency (this is your case). You also file NJ non-resident return and reconcile...

Tax Law (Questions About Taxes): NQ 457 Plans held in a Rabbi Trust
no form 5500 (not a 1041 either) see for the short story. long is in the code and regs of 457. http://www.irs.gov/Retirement-Plans/Non-Governmental-457(b)-Deferred-Compensation-Plans 5 for politeness... Should I have said, please? Mother...

Tax Law (Questions About Taxes): Real estate gifts
Donna, Thanks for your question. I would find another accountant. When a gift is given, it must be without any strings. Your agreement for her to gift it back to you in eight years renders the original gift void. If she is the sole owner, the tax...

Tax Law (Questions About Taxes): REITs
this depends. upon what is in the reit. you go from captive reit (bank moves the branches to a reit and pays rent to an essentially tax free entity and then reports divided income back to bank at less than 100% inclusion. same for franchise restauarnts...

Tax Law (Questions About Taxes): rental property
Rob, Thanks for your question. Yes, you must report the income on Schedule E. You can also deduct expenses of the condo, including the interest on the loan, but not the full mortgage payment. You must also deduct depreciation based on the lower of your...

Tax Law (Questions About Taxes): Tax Lien.
Dennis, Thanks for your question. 1. Social security cannot do anything about it, you will have to contact the IRS. 2. Call or fax the IRS, preferably call. Use a stateside number if necessary. 3. File a return for 2004 and petition for a refund...

Tax Law (Questions About Taxes): Taxable..???
Alex, Thanks for your question. Yes, it is taxable, but you may not have a gain. When you inherited his portion of the business, your basis in the business is the fair market value of his portion of the business as of the date of death. If you sell...

Tax Law (Questions About Taxes): Taxable ???
first of all, sorry for your loss! not if you structure it properly how much? where do you live? what sort of business? what was the business? do you know if it was corporate, partnership? llc, s corp? did dad just pass (you need to do...

Tax Law (Questions About Taxes): taxable income offered to an employee
Jim, Thanks for your question. It can be legal. You cannot force them to go on Medicare instead of the company plan, and you need to be aware of the rules that prohibit you from discriminating between employees in the provision of health care. You may...

Tax Law (Questions About Taxes): Unforeseen Circumstances Exclusion from Gain
I agree with all that you say. However, the nonspecific event I was referring to was the circumstances surrounding the disposition of the sale - the fact that it took place so long after the flood. I still think you have a good case and will likely prevail....

Tax Law (Questions About Taxes): 2013 taxes.oil gas royalties
Linda, Thanks for your question. If you have zero taxable income, the only thing I can think of is that it calculated (incorrectly) self-employment tax on the royalties. If you reported those on Schedule E, it should not have done so. Hope this helps....

Tax Law (Questions About Taxes): cash donation to NPO
The problem with that is two-fold. One, it would have to be a non-interest bearing note and you could not compel them to pay the interest. Second, depending on the amount of the note, the IRS could impute interest. When this happens they make you pay tax on...

Tax Law (Questions About Taxes): classification
for book or tax ? book it is unearned revenue. then reverse it when you spend the money. for tax, assuming you meet the thresholds and timing etc. (complicated) you dont report income either. but that sure sounds like a homework question. isnt...

Tax Law (Questions About Taxes): eminent domain
Les, Thanks for your question. If you purchase replacement property that costs at least as much as you received Within two years, you do not pay any tax on the involuntary conversion. If you don t, you report it on Schedule D and form 4797. Hope...

Tax Law (Questions About Taxes): Filing Late/Amending Tax Returns
15th day of the year after close is original due, add extension of 6 months and it was originally due oct 15, 2012. IF you had any payments paid in, they are lost after 3 years (refund opportunity goes away). but you could have carried back the loss...

Tax Law (Questions About Taxes): Hell, I have a questions.....
buying something is not a taxable event (usually). SELLING it (presumably at a profit) is, however. The IRS cares little (if any) about activity a company in the middle east... but they care much about what you do with the product you buy and...

Tax Law (Questions About Taxes): Hello, I have questions about....
Hello Jack, If you buy products for personal use from the foreign company you don t have to pay tax on purchases. Neither the foreign company must pay tax to IRS for export of goods (although they may have tariff payments, which is the foreign trade issue,...

Tax Law (Questions About Taxes): insurance/filing separate
Health insurance won t affect your return. Do the kids stay with you more than half the year? Who pays costs of the house? Do you own it? What about prop tax and mortgage interest? Are you both on the mortgage? Do you have an agreement yet about...

Tax Law (Questions About Taxes): Moving expense deduction
Eric, Thanks for your question. No moving expenses are deductible. First, you did not leave your old job, but merely took a leave of absence. Second, you maintained your FL residence as evidenced by keeping your Florida driver s license and similar...

Tax Law (Questions About Taxes): Rules for Determining Geography
The vehicle does not have to be registered where the corporation is located. However, if the corporation is not located in SC, or doing minimal business in South Carolina, it is a suspicious situation. It is not a matter of tracking business use, but personal...

Tax Law (Questions About Taxes): sales tax
hi the sales are taxable unless you get what is called a resale certificate from the distributor you sell to. your sales are low enough you dont have to worry a lot... but you should be charging sales tax. minny has different rates http://www.revenue.state.mn.us/businesses/sut/Pages/SalesTaxCalculator.aspx...

Tax Law (Questions About Taxes): tax
the contract work for engineers is where you have possible exposure (not to sound too much like a lawyer) but can t you fix that with either insurance or via risk shifting to the engineers? I have cpa insurance and an llc, but my real risk is when I...

Tax Law (Questions About Taxes): tax, llc, tax
llc, tax, Schedule C: Hi Al, as far as a tax advantage of an LLC for an internet business, are you considering other entity types. If you are a single-owner LLC, the LLC is treated by default from a tax perspective as a sole proprietorship in which reporting would be done on Schedule...

Tax Law (Questions About Taxes): tax law - ACA
David, Thanks for your question. Since the withdrawal is not taxable you would be committing fraud by reporting it as taxable in order to receive a tax benefit (I.e. The subsidy). The IRS would likely investigate the inclusion of income from an annuity...

Tax Law (Questions About Taxes): taxes
Al, Thanks for your question. The IRS treats LLC s as disregarded entities, meaning you elect how to file. For tax purposes you would file as a corporation, S corp, partnership, or sole proprietor. Your choice. So the short answer is that there are...

Tax Law (Questions About Taxes): Cell Phone Tower on Church Property
Billy, Thanks for your question. While this is an issue that has many variables to it, this will definitely not affect your tax exempt status. It could create unrelated business income, which would be taxable at corporate rates. To avoid the tax,...

Tax Law (Questions About Taxes): Cost Basis of Limited Partnership Shares
Lee, Thanks for your question. The answer depends on a number of factors, based on what is reflected on the K-1, as well as any distributions that were received. The nature of the situation would not give rise to answering this question fully without...

Tax Law (Questions About Taxes): Dependents
Ed, Thanks for your question. Unfortunately not. All of them must live with you for the entire year (adult child) or form more than half the year (grandchildren). In addition, the adult child cannot have more gross income than the amount of the dependency...

Tax Law (Questions About Taxes): Per Diem and changing Tax Home
If the length of the project exceeds 12 months the per diem is taxable and the travel expenses are not deductible. IF 12 months or less the per diem is taxable, but the expenses are deductible as miscellaneous itemized deductions on Schedule A. Hope this...

Tax Law (Questions About Taxes): Forms 2555 and 2350, bona fide, physical presence
bona fide, physical presence: Dear Ben, The answer to your first question: You don t need to file form 2350 since you meet the Physical Presence test before October 15th. Regular extension form 4868 will suffice. In order to meet the Bona Fide residence test you would indeed...

Tax Law (Questions About Taxes): Innocent Spouse relief
Mandana, Thanks for your question. Under the law, a forged signature is not a voluntary signature. So, you actually have not filed a return for that year. You will have to show the IRS that the signature on the return is not yours. In most cases you...

Tax Law (Questions About Taxes): Inventory
Peggy, Thanks for your question. It is a judgement call. If you are selling the antiques through your business, they would be reported as business income. You would move them (figuratively) to the business books at your cost or fair market value as...

Tax Law (Questions About Taxes): Inventory
they go in at current fmv. then any income above current fmv is income to the business but it is part of your basis and calculations when you take money out (are you doing this as a corp or llc or just as a schedule c on your 1040 ?) how much stuff...

Tax Law (Questions About Taxes): knowing qualified dividends without a 1099
I have never faced this issue to be honest. I actually have my accounts with ubs and I love my service. I will ask my broker if he can get more detailed information. Otherwise I would strongly suggesting just converting accounts to money markets for the...

Tax Law (Questions About Taxes): lump sum pay out
You live in Phillipines and are a usa citizen? Why did you take the lump sum? Did you just retire recently? Did you previously work in the usa? I need more info Send me new question and mark it private. I will give you contact information ...

Tax Law (Questions About Taxes): Owner financing & capital gains
you cant exchange and sell on your own. to avoid tax you need an intermediary (called a 1031 exchange - google it) and you cant buy personal residence on the other side (have to be like kind property = same type). you will defer gain under the installment...

Tax Law (Questions About Taxes): Real estate contract expenses from bad deal
Does not have to, but can equally attribute to the 3 owners, or if the owners don t have equal ownership, could attribute as per their ownership percentage, or not. . . Do all the owners have the same potential to use the loss? or will some of that loss...

Tax Law (Questions About Taxes): Roth IRA
Mike, You can make the maximum contribution to a Roth or Traditional IRA each year, not to exceed the current limit for all IRA s. With a Roth, you do not get a current deduction, so it is not a part of your 1040 each year. Tuition and some fees may...

Tax Law (Questions About Taxes): tax question homework problem
I ve answered this one before: Since this is an LLC, it is disregarded for tax purposes. So the four are just partners, and WE four LLC files a general partnership return 1065. The 1065 attributes all the profits (and much of the expenses to the individuals...

Tax Law (Questions About Taxes): telecommuting
Lorraine, As a resident of CA, you are subject to tax on all your income, regardless of source. If TN had a state income tax, CA would give you a credit for TN taxes paid. But since there is no TN tax, no credit. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Transfer of House to Family Member
Carl, Thanks for your question. If you make a gift of your interest in the house to her, the value of the gift would fall below the annual exclusion amount of $14,000. So there would be no gift tax concerns for you. Once you transfer title to her...

Tax Law (Questions About Taxes): 1099 Other Income
Pam, Thanks for your question. That is most properly recorded as a box 7 item. I would treat it as Schedule C income, subject to SE tax. The IRS states in the instructions that if it is trade or business income it goes on Schedule C, if it is recurring,...

Tax Law (Questions About Taxes): 1231 or 1244 loss from S Corp sale
Rachel, As you state it, it would be a 1244 loss if you meet the criteria. 1231 is for the sale of assets and you stated that you sold shares, making it a securities transaction. The carryforward amount would be reflected on Schedule D. Negative AGI...

Tax Law (Questions About Taxes): Amended return - error didn't affect taxes owed
Joan, Thanks for your question. Just to be on the safe side, I would file an amended return, attaching a correct Schedule D. In the explanation on the 1040X simply state that the loss carryover was incorrectly stated and the amended return does not...

Tax Law (Questions About Taxes): aoc
Laura, Thanks for your question. FAFSA is only an application that makes you eligible for financial assistance for your college costs. If you receive a scholarship you cannot use those amounts to claim the AOTC. If you borrow money and pay for your...

Tax Law (Questions About Taxes): Basis on Rollover to a Roth IRA
Shirley, Thanks for your question. Tax basis is the amount of your contributions that you have paid tax one. In a typical 401(k) or traditional IRA your contributions are not taxed, so the amount of contributions are your basis. In your case, the taxable...

Tax Law (Questions About Taxes): Bequeathment
the point being more appropriately, didnt you pay tax on the income and dividends over the last few years? Just report the income on your return and figure out the net and give it to brother to settle the account. and get a waiver when you pay him. things...

Tax Law (Questions About Taxes): Bequeathment
James, Thanks for your question. On Form 8949, just show your brother s half as a negative amount on a separate line, and call it co-owner s share. Your basis in the fund is the fair market value as of date of death. Profit or loss is determined...

Tax Law (Questions About Taxes): Called Municipal Bonds
Martin, Thanks for your question. Assuming that the bonds are not tax free bonds, you can take the gain and the loss on each respective bond. If one or both is a tax free bond, you have a taxable gain but a non-deductible loss, as the case may be....

Tax Law (Questions About Taxes): capital gains
Marie, Thanks for your question. First, your basis is NOT the value upon completion, but your cost - the cost of materials, etc. You cannot include the value of your husband s labor in your cost basis. The only thing I can tell you in this regard is...

Tax Law (Questions About Taxes): Capital Gains
Tehany, Thanks for your question. Report the sale, with proceeds and cost, on Form 8949, then transfer the information to Schedule D. The points paid on refinancing are amortized over the life of the loan. For example, if it is a 30 year loan (360...

Tax Law (Questions About Taxes): carrying losses over and over on rental property
Frank, Thanks for your question. Technically, there is no limit. Obviously, continued losses year after year might prompt an IRS investigation into the validity of your deductions, but as long as you are charging rent at fair market value and can justify...

Tax Law (Questions About Taxes): Carryover
Dave, The ordering rules state that you first deduct the current year s contributions, then apply any carryover. So, in the sceanario you give you would lose the 10K that is a part of the carryforward. About the only thing you could do would be do defer...

Tax Law (Questions About Taxes): Carryover of Unused Foreign Taxes
Shone, Thanks for your question. You have correctly stated the treatment of the carryforward. However, you should be aware that if you claimed the credit directly on Form 1040 or Form 1040-NR without filing Form 1116, you cannot carry back or carry...

Tax Law (Questions About Taxes): Charitable Contributions
No, the 30% is a secondary limit. You take your allowable 30% contributions and add them to your 50% contributions to get the overall limitation. With an AGI if 100k, you could deduct the 30K capital asset plus up to 20K in cash or non capital property....

Tax Law (Questions About Taxes): charitable donations
If you transfer it to a relative, it would have to be for value. You could not transfer a $10,000 asset for something worth $1,000, for example. Any difference in the value of the exchange between related parties would be treated as a gift. An outright...

Tax Law (Questions About Taxes): claiming children
Melissa, Thanks for your question. In filing head of household, you are claiming that you provide over half the cost of keeping up a household. Your children are living with you in that household. This, along with the support that you provide the children,...

Tax Law (Questions About Taxes): Claiming my wife for 2012
The additional or reduced amounts for box 4 and 6, respectively. The $250 is a per month calculation. So, if in a given month you earned $200 you would only add $50 to the amount. If that same month your wife earned $300 you would use that number and...

Tax Law (Questions About Taxes): Commission tax
the amount withheld should not have exceeded 25% for fed tax. I would ask payroll for a detailed calculation as to how it was calculated. Also, if this was 2014 pay, you could have them adjust it or next month s as well. if it was 2013 pay, you should...

Tax Law (Questions About Taxes): dependency exemption for student
Peggy, Thanks for your question. The law provides that they must have been a full time student during some part of any five calendar months during the year. It does not state that classes must have begun, as long as she is enrolled. Hope this helps....

Tax Law (Questions About Taxes): Dependent
OJ, Thanks for your question. No, that is not correct. The $3,950 (went up this year) income limitation only applies when someone is qualifying as a dependent under the qualifying relative criteria. Since your son is a full time student under the age...

Tax Law (Questions About Taxes): Division of 1099c
Royce, Thanks for your question. As a CPA and not an attorney, I can t tell you the best legal way to divide the debt, but I can guide you through the tax part. Per the IRS, if the deed does not specify percentages of ownership, it is presumed...

Tax Law (Questions About Taxes): Error on Schedule B, Fincen Form 114, Form 114
Fincen Form 114, Form 114, Schedule B: Hi Mark, if this is your 2013 return all you need to do is simply mail in a second original return. By sending in a second original return prior to the tax due date of April 15, 2014, your replacement return will replace the efiled return. An amended return...

Tax Law (Questions About Taxes): do i have to file this ?
Jeremy, Thanks for your question. Yes, you will need to report that on Schedule C of your 1040. If the net profit shown is $400 or more you will also need to complete Schedule SE for the self-employment tax. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): How to File
R Thanks for your question. There is no tax reason to file other than jointly. Assuming that your business is s sole proprietorship, file a Schedule C with your joint return. If it is a partnership or corporation, file a separate return for the business....

Tax Law (Questions About Taxes): File jointly even if only married for 9 days in 2013?
Bernie, Thanks for your question. Your filing status is determined by your marital status as of December 31. Since you were married on that date, you can file married filing separately, or married filing jointly. Usually, it is advantageous to file...

Tax Law (Questions About Taxes): File tax returns in 3 states?
Bernie, Thanks for your question. His LA filing will be as a non-resident. He should file a GA return as a part year resident, reporting the income he earned (in LA) as a Georgia resident. He will also need to file as NY part-year resident for the...

Tax Law (Questions About Taxes): filing a personal loan
you dont need to do anything with the loan... the IRS does not care what mom did with the cash. if you have brother or sisters, you might want to document the loan so they dont accuse you of defrauding mom, but if is just you and everyone knows what she...

Tax Law (Questions About Taxes): filing status
Dear sd, You can file married jointly, however it would require taking a number of steps: see http://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html. Your question about form W4 is unclear; therefore I cannot answer. Anyway, you cannot...

Tax Law (Questions About Taxes): Final 1120-S return
Robert, Thanks for your question. Two factors involved here. First, the property should be treated as a liquidating distribution to the shareholder. The distribution will be at fair market value, so the corporation should report the distributions...

Tax Law (Questions About Taxes): Foreign income
Mo, You don t give dates, but I imagine that she will not have any federal tax liability. The proration I mentioned is gives the maximum exclusion. Assuming that she was in Japan for 355 days in 2013, her maximum exclusion would be 333/365 x 97600 =94,672....

Tax Law (Questions About Taxes): Which Form 4797, 8949 and Schedule D and 982?
I apologize. I misstated earlier. Since it is considered business property, you complete Part II of the 4797 and do not use 8949 or Schedule D. I don t know where my mind was. I think it because I need to eat lunch. You can take the entire loss as...

Tax Law (Questions About Taxes): Fraud and Lien
Lori, Thanks for your question. I would most definitely contact the office of taxpayer advocate. If fraud has been committed against him, there is no way that he should have been set up with a payment plan. In these situations, just going in to the...

Tax Law (Questions About Taxes): gift of equity
If done in the same year, the combined total appears to me that you have exceeded (albeit barely) the 56k that you can be given without requiring filing. No tax is due, but legally, form IS required to file You can t get around the annual limit by...

Tax Law (Questions About Taxes): Income taxes and quit claim
Douglas, Thanks for your question. No, the loss must be allocated based on the ownership interests. You don t mention the use made of the house. If it was a personal use residence, the loss is not deductible. If it was a rental, you must reduce...

Tax Law (Questions About Taxes): Independent Contractor Question
Jessica: Yes, your boyfriend could get into trouble. It only depends if the IRS either audits your boyfriends return or your uncle s return. You do realize that your boyfriends must file his own return and you must file your own return. You can not...

Tax Law (Questions About Taxes): how long should keep tax returns?
Lee, Thanks for your question. The IRS can audit a return for three years from the date filed or due date, whichever is later. So, for most people, that means that 2010 is still an active return until April 15 since it was due April 15, 2011. Beyond...

Tax Law (Questions About Taxes): LTD settlement benefits
Carol, Thanks for your question. The portion of the long term disability payments that came from the part the employer paid are taxable income. It would be the full amount before attorney fees. The portion that you paid is not taxable. Since some...

Tax Law (Questions About Taxes): Medicare & Supplement Insurance Premiums
I couldn t tell you a dollar amount for the threshold. I presume you are 65 or over. That means that you can only deduct medical expenses that exceed 7.5% of your adjusted gross income. For example, if your AGI (line 37 of page 1 of the 1040) is $30,000,...

Tax Law (Questions About Taxes): mortgage interest deduction
Hi Ian. I am in CT happy to do your returns... this is just chat among friends, not an engagement letter to represent you. But short story long, either of your stated options are legal and correct. and yes, you would take the remainder on schedule...

Tax Law (Questions About Taxes): mutual fund cost
you dont say what you paid for the 100 shares accumulated but yes, the purchase price plus dividends reivnested is your new total basis. call the brokerage fund and ask for an analysis/calculation of their determination. i agree that if you paid...

Tax Law (Questions About Taxes): MW507
Kay: If the MW 507 does for the Maryland Tax calculation as the W-4 does for the Federal Tax calculation. Then yes you can claim yourself as an exemption for future tax payment deducted from you gross pay at work. It would not effect your dad s 2013 tax...

Tax Law (Questions About Taxes): Payments on business loan
Scott, Thanks for your question. You can t deduct the payment amount, but you can deduct the interest portion of each payment. The principle is not an expense because you did not report the loan proceeds as income. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Personal Income Taxes
Dawn, Firefighters have a number of tax deductions not generally available to other taxpayers. The basic local telephone service costs of the first telephone line in your residence are not deductible. However, toll calls from that line are deductible...

Tax Law (Questions About Taxes): Property for rent not ready yet... lots of expenses
Richard, Thanks for your question. Since this is basically a rehab to prepare it for rental the expenses you have incurred should be capitalized, added to basis, and depreciated. Any items that might be expense can only be deducted in the year paid....

Tax Law (Questions About Taxes): Purchasing a condo for son
Paul, Thanks for your question. Actually you are somewhat behind on the exemption amounts. The annual exclusion is now $14,000. If you are married and you son is married you can utilize gift splitting with you giving him 28k and it can be treated as...

Tax Law (Questions About Taxes): Regarding IRS K1
Danny, Thanks for your question. It depends on how you are owning this house and if it is rental property or your residence. If it is your residence, there is no way a K-1 should be issued. If it is a rental, a K-1 is required if it is being held...

Tax Law (Questions About Taxes): Renting below fair rent / taxes
Margie, Thanks for your question. In a rental not-for profit, income is reported on line 21 of the 1040. The expenses (up to the amount of income reported)are deductible on Schedule A in a specified order. First, would be the otherwise deductible...

Tax Law (Questions About Taxes): Reporting Inherited home sale
Unless the trust document specifically states that all properties in the trust automatically transfer upon your death (a highly unusual provision) the property remains in the trust until actually transferred out by an act of the trustee. As long as the property...

Tax Law (Questions About Taxes): Sale of Main home with leased farm land
David, Thanks for your question. Since the land was used as rental, it must be separated from the residence. You would divide the sale price utilizing fair market value. The basis should be divided based on the purchase price - divided by FMV at the...

Tax Law (Questions About Taxes): Sale of Sch C
George, Thanks for your question. First, you cannot sell a Schedule C business, so you are merely selling the assets of the business. And, since you are selling business assets, you need to complete Form 4797. This may or may not involved the inclusion...

Tax Law (Questions About Taxes): Soc Sec Disability - Followup
No, you are not correct. The pension may have had taxes withheld, but it (along with the withheld taxes) is still reportable on your 1040. The pension is taxable income that is fully included in the calculation to determine the taxability of your social...

Tax Law (Questions About Taxes): Soc Sec Disability - taxable ?
Gary, Thanks for your question. Social security disability is subject to the same taxation rules as regular social security income. There are three levels - 85% of the benefits will be taxed, 50% of the benefits will be taxed, or none of the benefits...

Tax Law (Questions About Taxes): Special Depreciation for Rental property
Tehany, Thanks for your question. You must report your share on your return. It has to do with the at-risk rules. In other words, if he is not 100% at risk for loss of the property, he can t deduct 100% of the losses. Since you are a co-owner, he cannot...

Tax Law (Questions About Taxes): Splitting rental income
Not only will you want to depreciate but you will lose basis even if you don t take it. (Depreciation reduces basis for amount taken or allowed but not taken... If you went 5 years and then sold the equipment, you would have zero basis (and bigger gain) but...

Tax Law (Questions About Taxes): tax returns
Hi Nikki, as long as you qualify to claim your children as dependents. Yes, you can do so even if filing separately. However, if filing separately, you would be automatically disqualified for many credits that you may otherwise qualify for if filing jointly...

Tax Law (Questions About Taxes): Tax treatment of compensation for tree removed from easement
Maureen, Thanks for your question. What you actually received was a payment for damage to your property, which is not taxable. I would suggest that you enter it on line 21 of the 1040 as the software is telling you. But in addition, I would make a...

Tax Law (Questions About Taxes): taxes
Maria, Thanks for your question. There are three types of taxes that may be of concern. There is a federal estate tax, which would be paid by the estate out of the trust if there were any taxes involved. Most likely there are none, as there is a...

Tax Law (Questions About Taxes): Truck Driver - Per Diem - Overnight Only?
Melissa, Thanks for your question. You are correct. If the individual is not away from his/her tax home overnight, the per diem rates do not apply and are not deductible. Another place in the 463 states your lodging and meals if your business trip...

Tax Law (Questions About Taxes): Unreimbursed employee expense
Gary, Thanks for your question. That is correct. Compute your unreimbursed expenses and enter them on Form 2106. Carry that amount to line 21 of Schedule A. You will only be able to deduct those expenses that exceed 2% of your adjusted gross income....

Tax Law (Questions About Taxes): W-9 or W-4
w9 means then intend to pay him on 1099 (which is likely wrong). see form S8 (ssss as in sam eight). That means they wont take out tax or pay fica. nor pay unemployment for when they fire him after he complains to labor board :) son could do...

Tax Law (Questions About Taxes): W-9 or W-4
Bill: It appears that the employer wants to report your son as an independent contractor not as an employee. Its that simple, he wants to pay as little taxes as he can possibly get away with paying. You know and I know that if you son works in his store...

Tax Law (Questions About Taxes): W2
Yes You could also try to fly a plane without practice If you want, get a copy of the 1040x instructions and form from irs.gov. and see if you can manage You can also make an appointment at your local irs office If your income is low enough,...

Tax Law (Questions About Taxes): W2 Box 12a Item "P"
Dear Suruj, H&R Block did half of the job. With code P used on W2 they were supposed to file form 3903 (Moving Expenses) and exclude $4995 reported as conditional income on W2. Without form 3903 amount under code P is not substantiated as qualified...

Tax Law (Questions About Taxes): w4 allowances
Scott, Thanks for your question. At one time that was the case, the employer had to send the IRS any W-4 claiming 10 or more withholding allowances, but that requirement no longer holds. You can raise it to whatever you choose. Also make sure you are...

Tax Law (Questions About Taxes): 1120 S
In a word, no. No you can t protect the 1120 S sharholders from future and past IRS judgements by throwing it all on the full corporation because the tax liability happened in the past and we can t erase the past. Could you petition the bankruptcy...

Tax Law (Questions About Taxes): 2013 Education expenses
I was less than complete with my answer and a reader pointed that out. I said the scholarship would be attributed to your child as income and it would be taxed. However there are offsets that are available and your accounting software or accountant should...

Tax Law (Questions About Taxes): Amend prior tax year
no you can not amend to change from joint to separate but that is not necessarily a bad thing. you are both jointly and severally liable for any tax changes (that means the irs can take all the money from EITHER of you REGARDLESS of any divorce decrees....

Tax Law (Questions About Taxes): C corp info
Well, Our perspective is a little different. The phrase our office is: Deductions are not GOOD, deductions only make bad things less bad. But, many have been convinced by their accountant to load up on deductions so they can reduce their taxes....

Tax Law (Questions About Taxes): Double 1099 Form - one from a Company & another from CC Merchant Svcs provider
You can contact them. You can ask them to reissue. But, looking at accounting in general. Expenses/outgo are all listed on the books together. They are not separated by method of payment. Probably the accountant, completed all the 1099s and did so automatically....

Tax Law (Questions About Taxes): employer education assistance & taxation
Kerry: The employer can set his own rules but his rules can not exceed the IRS rules. It appears that the employer decided that the cost of your education will be included in you gross income for the year and you will pay taxes on the income. The employer...

Tax Law (Questions About Taxes): Employer won;t release w-2 forms
Russell: I personally would contact the IRS and file a complaint and also I would try to get an attorney to subpoena the W-2 thru some legal action. Its important to have the W-2 s to file your tax return. I am not an attorney and I am not giving you...

Tax Law (Questions About Taxes): filing and tax debt, back tax returns, late tax return
back tax returns, late tax return: Mike, My recommendation and the requirement from the IRS to get started with any resolution would be to file your late returns. Once the returns prepared (and filed), your situation can be assessed to determine what your options are for any outstanding...

Tax Law (Questions About Taxes): Filing taxes after incarceration and a long lapse in filing
Sue: It is my opinon that he should go to the IRS office an clear up any past due tax he may owe. Then you will know if you should marry him. If he doesn t corrected it now and you do get married to him it could cause you a lot of grief if not a tax debt...

Tax Law (Questions About Taxes): form 2555, foreign tax credit, foreign earned income exclusion
foreign tax credit, foreign earned income exclusion: Hi Kurt, income over the exclusion amount is considered taxable income. However, if you have paid any income taxes in China, it is possible that a portion of the U.S. tax may be offset by claiming the foreign tax credit. Below is an article that I have written...

Tax Law (Questions About Taxes): Grain gift/sale
Amy: The person who gave you the gift are the one who must pay the gift tax on the gift. You will not be taxed for receiving the gift. That is the federal tax. I do not know about the Iowa state tax. I have never studied Iowa state tax. Joh...

Tax Law (Questions About Taxes): Inequitable distributions from an LLC
Bad debt is something entirely different. Bad debt is a write-off of an uncollectable loan. Distributions is not a loan. I commiserate with you, that you trusted without knowing the facts. You got snookered, are you going to let that happen this year?...

Tax Law (Questions About Taxes): IRA Missed Distribution
i asked you three questions.... you need to reply to them to get a complete (and accurate) answer. First figure out the reason. Did broker screw up? That speaks to if she can get out of penalty What was the rmd amount? How much...

Tax Law (Questions About Taxes): Irrevocable Living Trust Grantor income reporting
Report the financial institution as the payer. The EIN for the trust is just an extension of the grantor, like any pass-through/Sole Proprietor (you can get a separate EIN for a SoleProp). Naming the Trust would just cycle it back to the Grantor. Not...

Tax Law (Questions About Taxes): Lawsuit settlement distribution to an estate
Anita, Thanks for your question. Since the money was paid the the estate, you should file an estate tax return Form 1041. Each beneficiary should receive a Form K-1 from the estate. You may elect to have the estate pay the tax, or the tax withholding...

Tax Law (Questions About Taxes): Lawsuit settlement to an estate
It is likely that taxes should not have been withheld, no tax is due and the lawyers screwed it up. And it (settlement) is not taxable to you and beneficiaries. A. How much? B. What for? C. How much fee did lawyers take? Make a new question and direct...

Tax Law (Questions About Taxes): LLC question.
do we need to file business tax? Yes, whether you pay any tax or not your business needs to memorialize your cash flow. Without a tax return the IRS could create their own and ignore all of your reasonable deductions. do we need a cpa? No, you need...

Tax Law (Questions About Taxes): Manufacturer or Retailer
There is no difference on rates at federal level Make 100 and uncle Obama will tax it. He does not care how you made it. Retail or manufacturing Maybe Texas has a special state rule. But that is the franchise tax. I think Less familiar with Texas...

Tax Law (Questions About Taxes): married and 2 homes to sell
Vicky: I would use the 2013 tax return to see how it would have effected your return this year an the will give you an idea how it would effect your taxes next year. Remember it the net of the sale after the original purchase price plus the selling cost...

Tax Law (Questions About Taxes): NJ tax
10/40=.25=25% credit If your tax in NJ is 100 and tax in state x is 30, you can only offset your NJ tax by 25. If your tax in state x is 20, you only get a 20 cr we sit in NJ Lesser of not actual tax paid. Essentially it is rate arbitrage. If you...

Tax Law (Questions About Taxes): repayment of wages $800
Ken: Have you contacted the company to determine which W-2 they will be correcting for the error. One of the w-2 s has an error. They must correct one or the other. Either the 2011 or the 2013. I do not believe that you should absorb the cost of your...

Tax Law (Questions About Taxes): S-Corp intracacies
The bigger questions are: Will you continue to do IT Consulting? Will you continue to do it in your existing S-Corp? Before we jump to a conclusion we should know the foundation upon which assumptions are based. The claim is: The S-Corp can provide...

Tax Law (Questions About Taxes): S corp taxes
Gerald, Thanks for your question. It appears that you sold the assets of the business but not the business itself, meaning you still own the Corporation itself. For 2012, you should report on the corporate return the sale of the assets, showing any...

Tax Law (Questions About Taxes): Sale Of Assets Of S Corp
Let s try to eliminate confusion. While the status of a S-Corp as separate from the owner, is debatable, let s just say it is separate from you the stockholder. Did the S-Corp sell its assets? or; Did you sell your stock? Those weren t your assets. Those...

Tax Law (Questions About Taxes): Schedule D
Brittany: You only report the shares you sell the per share purchase price and the per share selling price. The difference between the purchase price and the selling price is either a profit or a loss. The share you still hold is not part of the equation...

Tax Law (Questions About Taxes): Schedule E Rental Income
John: Since you rent it out and also stay in at times it is an investment property. You can file I believe a Schedual E income/loss on rental property should be used. The commission received could be lumped in with the rental sales to off set your expenses....

Tax Law (Questions About Taxes): tax filing for family trust
Before we cover the tax implications of your intended path. . . A trust is separation of the aspects of ownership. The grantor places an asset into a trust and effectively divides the ownership between separate parties, there is the beneficial interest...

Tax Law (Questions About Taxes): tax law
No income tax to yiu. He might have an issue but I would bet he has not given away more than the $1m life exemption. So no gift tax to him. But form is required (irs709). Are you married? He could give you and your spouse each 12.5 and no form is required....