About Experts Sitemap - Group 51 - Page 3 2015-06-30

Tax Law (Questions About Taxes): contract labor, material tools, contract labor
material tools, contract labor, kentucky department: Tommy: Even if you moved from Florida to Kentucky to work it does not relieve them from reporting you as an employee. You need to file a complaint with the Kentucky Department of Labor and or the Kentucky Department of Employment Security regarding your...

Tax Law (Questions About Taxes): donation of home to charity, irs pub 526, bargain sales
irs pub 526, bargain sales, allowable deduction: There are lots of things to consider. Be sure it is a qualified charity. You will also want to make sure that you use a qualified and licensed appraiser to appraise the property. From IRS Pub 526: Property Subject to a Debt If you contribute property...

Tax Law (Questions About Taxes): Employee Travel Expense Reimbursement, Fringe Benefits, Business Travel
Fringe Benefits, Business Travel: Hey Mike, No, this is not taxable to the employee based on the way you have presented it. 1) It would not be commuting in any way but rather business travel. 2) Allowing the employee to work from home, regardless how far away it is, must provide some...

Tax Law (Questions About Taxes): Employment Taxes, Employment Taxes, Salary Increase
Employment Taxes, Salary Increase: Hey Kenneth, The short answer is YES. Employment taxes are a calculated as a percentage of your gross earnings. The only one that has a cap is the Social Security tax which stops once your gross earning reach $106,800 for the year 2010. I know it is...

Tax Law (Questions About Taxes): Extra job, is it worth it?, higher tax bracket, earning extra money
higher tax bracket, earning extra money, full time job: Samantha, Thanks for your question. Couple of points that you need to be aware of. First, I presume the paper route would be treated as a 1099, independent contractor situation as are most paper routes. This means that you file your earnings from...

Tax Law (Questions About Taxes): Extra job...is it worth it (tax-wise)?, Independent Contractor
Independent Contractor: Sorry for the delayed response... As contractor yes you will have to file a few extra schedules at year end with your 1040 but in your case is pretty straight forward. Income LESS Mileage Deduction Less Any Other DIRECT Expenses EQUALS Net Taxable Income....

Tax Law (Questions About Taxes): early pension withdrawal, early withdrawal
early withdrawal: If you are in the 25% tax bracket you will pay 35% (25% + 10% penalty) on this so you would have an additional 5% federal. Then there is your state tax implications depending upon where you are. In NC you would just pay the normal state income tax rate on...

Tax Law (Questions About Taxes): earnings and social security taxes, social security tax, income tax withholding
social security tax, income tax withholding, social security and medicare: Severance payments are subject to income tax withholding and should be on a W-2, but their status for social security and medicare is currently unsettled. There was a recent court decision that held that severance payments are not earned income and not subject...

Tax Law (Questions About Taxes): ebay/etsy/etc. sales taxes, Sales Tax, Texas Laws
Sales Tax, Texas Laws, Business: Laura, If these are your personal items then no, sales tax does not apply. However if these are items you have purchased to sale on ebay/etsy, or made yourself, then that activity is business by definition. In that case you are a business and those...

Tax Law (Questions About Taxes): Filing late for 2009, Information Request, Prior Year Filing
Information Request, Prior Year Filing, Late Filing: Hey Barbara, a) You can call (800)829-1040, You will need to request both a record of your account and an information return transcript for the Tax Year 2009. (an information return transcript includes the data from forms w-2, 1099, 1098, etc) OR...

Tax Law (Questions About Taxes): Forigen earned Income, personal income tax, foreign earned income
personal income tax, foreign earned income, earned income credit: Kimbale, Thanks for your question. Yes, I do prepare taxes. You can get my pertinent contact information at my website, www.johnstancilcpa.com. It is possible to file an amended return to claim the foreign earned income credit/exclusion. You have...

Tax Law (Questions About Taxes): fling independent, school purposes, college education
school purposes, college education, checking account: HI, Since you are supporting yourself you can claim your own exemption and perhaps one of the education credits. I don t know what you mean about the most time efficient manner. If you mean getting your refund, if any, the quickest, you should file...

Tax Law (Questions About Taxes): foreign tax free income, Foreign Earned Income Exclusion, Physical Presence test
Foreign Earned Income Exclusion, Physical Presence test, bona fide residence test: Mr. Dickson, Unfortunately you will not qualify for the foreign earned income exclusion. In order to qualify, you must satisfy the following 3 requirements: 1. Establish abode in the foreign Country. Always a challenge for contractors in your situation,...

Tax Law (Questions About Taxes): form ss-4, LLC Election, Form 8832
LLC Election, Form 8832, S-Corp: Hey Ken, You, like many others, are doing your best to self-navigate the process of starting a business. The instructions are stating that because just by checking the box does not make you a partnership, corporation, trust, etc. So they are wanting...

Tax Law (Questions About Taxes): gift tax, lifetime gift, inheritance tax
lifetime gift, inheritance tax, gift taxes: It is a complex situation to discuss electronically. That being said, individuals can file a gift tax return (if they give more than $13K to an individual in a year) and not necessarily pay gift taxes. However, realize that the exclusion that is used towards...

Tax Law (Questions About Taxes): gift tax exemption, Gift Taxes
Gift Taxes: Hey Shiva, I am picking up your question out of the Question Pool as I just wanted to get you some sort of response from us. I am not exactly sure what you are ask but it appears your grandfather has given a gift, or wants to give a gift that falls under...

Tax Law (Questions About Taxes): Housing allowance, Fringe Benefits, US Tax
Fringe Benefits, US Tax, UK Tax: Hello Lawrence, Thank you for your question and yes this is consider a fringe benefit for US tax purposes thus required to be included in taxable income. No treaty to date between the US and the UK have made provision to exclude such from a non-resident...

Tax Law (Questions About Taxes): home received as a gift, Gift Taxes
Gift Taxes: Hey Dwight, No, gifts are excluded from Gross Income and your mom will be dealing with any gift taxes depending on how she transfered it to you. This is of course assuming she is not asking you to pay the gift taxes, if applicable. On a side note, I...

Tax Law (Questions About Taxes): INHERITANCE, inheritance tax, substantial money
inheritance tax, substantial money, decedent: Not typically. There are a few ways it could be- if the decedent gifted away substantial money while they were alive. Another way would be if the $15,000 is from a cashed out retirement. If it is just straight cash and there is no way they gave away substantial...

Tax Law (Questions About Taxes): Inheritance..., Basis, Fair Market Value
Basis, Fair Market Value, Rental Property: Hey Jenn, Yes, you calculate the depreciable basis for residential real property with the value of the land excluded. You can also verify, or support, the value of the land by reviewing the 2009 tax assessors assessment data sheet for the property. ...

Tax Law (Questions About Taxes): Inherited IRA, inherited ira, estate ira
inherited ira, estate ira: This can get complicated. Having the estate named as the beneficiary of an IRA does not give you a lot of flexibility. Typically, in that case you have 5 years to draw the money out of the IRA. It depends upon the amounts involved as to whether it is worth...

Tax Law (Questions About Taxes): individual taxes - exemption, Employment Tax, Amended Returns
Employment Tax, Amended Returns: Roe, Ultimately it his responsibility as the Employer to accurately withhold and pay in the taxes. She is responsible for at least the 7.65% of her gross earnings for Social Security and Medicare. He could catch up that in her next check or recover...

Tax Law (Questions About Taxes): inherited ira, inheritance taxes, john ira
inheritance taxes, john ira, federal gov: John, IRA s are taxable income when the amount is withdrawn - whether in payments or in a lump sum. Depending on your state of residence, there may be inheritance taxes on it when she passes away. Currently, there is no federal estate tax, but it...

Tax Law (Questions About Taxes): investment property/second home/college expense???, tuiton
tuiton: College deductions generally only include tuition and mandatory fees so I don t think that is an option. If you are purchasing this property and renting it out then your only real option is to treat it as a rental property. Adam http://www.wilmingtontaxesandaccounting.co...

Tax Law (Questions About Taxes): ira beneficiaries, IRA, Beneficiary Elections
IRA, Beneficiary Elections: Hey Norm, I am picking up your question out of our Question Pool and apologize for the short delay in getting you a response. So to answer your questions in order: 1) How beneficiaries are listed depends ultimately on your desires and intentions....

Tax Law (Questions About Taxes): irs, Prior year returns
Prior year returns: Steve, I am sorry for you loss and having to deal with this so soon. You prepare them Married Filing Joint and in her signature line you write Deceased rather than a signature. Please let me know if you need any help what so ever.... Sincerely,...

Tax Law (Questions About Taxes): Joint Account Tax Question, income tax return, inheritance taxes
income tax return, inheritance taxes, threshold limit: It would not be a gift if it happened after she passed away. You have to file a estate income tax return if the estate (while settling) has over $600 in income (such as interest), etc. The $ amount would not require an estate income tax return (which is...

Tax Law (Questions About Taxes): Land Contract Sale & Capital Gains Taxes, lump sum payment, capital gains taxes
lump sum payment, capital gains taxes, capital gains tax: Hi, The seller would still have to report capital gain but just a portion each year instead of the whole amount in one year so his tax should be reduced. His gain is the difference between the selling price and what he paid for it. The value of the property...

Tax Law (Questions About Taxes): Laws regarding KY sales tax, FOB, Sales and Use Tax
FOB, Sales and Use Tax, Kentucky: Hey Sylvia, You are correct. So long as either you deliver with your vehicles or a common carrier is selected to deliver to a point outside of the State of Kentucky then the transaction is exempt from Sales and Use Taxes to Kentucky. Here is the law...

Tax Law (Questions About Taxes): LLC the first months, self employment tax, income tax purposes
self employment tax, income tax purposes, self employment taxes: Guillermo, Thanks for your question. You could classify some of it as a loan, but you also need to show a significant capital investment in the business. If there is a loan, any repayment of the loan is not taxable income to you. However, the interest...

Tax Law (Questions About Taxes): Lump sum from LTD settlement., lump sum settlement, disability payments
lump sum settlement, disability payments, stancil: Tim, Thanks for your question. That depends on how the settlement is structured. If the payments are characterized as disability payments under the policy, they would not be taxable. If they were structured as a settlement (not payments under the policy)...

Tax Law (Questions About Taxes): living out of town for work, travel expense, temporary assignment
travel expense, temporary assignment: If it is 6 months max than it should qualify as temporary and he should be able to deduct rent and utilities. You do lose the deduction on the amount that is less than 2% of his income. Also, realize that deductions are not worth in dollars the same amount...

Tax Law (Questions About Taxes): loaning my child money to buy a house, irs web site, irs document
irs web site, irs document, social security number: Sue, Thanks for your question. If you are listed as an owner, when the house is sold you will owe tax on any gain for your portion. Additionally, if you are an owner, it would probably be difficult for you to hold a mortgage for the loan you are making...

Tax Law (Questions About Taxes): Missionary/Missions Tax, missions fund, stancil
missions fund, stancil, hotel food: On the 1040 itself, file as you normally do. I presume this would be as a minister. On the Schedule C, list the type of business that applies, using the standard business codes - based upon you activities that generated the Schedule C income. John Stancil,...

Tax Law (Questions About Taxes): just married want to sell my house and not pay CGT, Section 121 Exclusion, Capital Gain Tax
Section 121 Exclusion, Capital Gain Tax: Hey Andrea, No you should file joint and claim a Section 121 Capital Gain Tax Exclusion for the property. It was your primary residence for 2 out of the last five years and since you have lived there for 11 years have not claim the exclusion before. You...

Tax Law (Questions About Taxes): just married want to sell my house and not pay CGT, www irs gov, time andrea
www irs gov, time andrea, capital gains tax: I believe that you should still be able to avoid it. This is also from that page: Married Persons If you and your spouse file a joint return for the year of sale and one spouse meets the ownership and use tests, you can exclude up to $250,000 of the...

Tax Law (Questions About Taxes): medical research compensation, medical research study, marquette university
medical research study, marquette university, stancil: Kim, Thanks for your question. The Amazon gift card would be taxable income. The fair market value of the fertility monitor would also be taxable unless the research study is using it as a part of their follow-up to the study. Hope this helps. ...

Tax Law (Questions About Taxes): milage taxing, Fringe Benefits, Employee Mileage Reimbursement
Fringe Benefits, Employee Mileage Reimbursement : Hey Stephanie, The issue here is it seems you and your employer operate the mileage reimbursement on what is known as an accountable plan thus as you have experienced it is not subject to Income, Social Security, Medicare, or even Federal Unemployment...

Tax Law (Questions About Taxes): mileage reimbursement, profit retirement community, www irs gov
profit retirement community, www irs gov, employee business expenses: Hi Rob in theory Yes!! but from a practical point of view NO it can get very complicated unless you have many miles. you should look at www.irs.ustreas.gov and ask for instructions for form 2106 I expect that various limitations will result in no deduction...

Tax Law (Questions About Taxes): mortgage interest, stancil, mortgage interest
stancil, mortgage interest, rate of interest: Liz, Thanks for your question. If it is a legitimate loan, with appropriate documentation, scheduled payments that are made, and a reasonable rate of interest you can deduct the interest assuming that the family member has a recorded lien against the...

Tax Law (Questions About Taxes): New York State tax on gift of cooperative apartment shares, New York State Tax, Gift Tax
New York State Tax, Gift Tax, Cooperative Apartments: Hey Sean, I am sorry about the delayed reply, I was informed that my reply on 7/2 did not go through? In general, my original response was this: 1) Shares in a Cooperative Apartment are not Real Property but in fact Personal Property like any...

Tax Law (Questions About Taxes): Do you need to file return when you lose money?, trade stocks, tax forms
trade stocks, tax forms, tax returns: Robert: You are REQUIRED to file tax returns reporting your investing transactions. When you buy and sale stocks some sales are losses and and some sales are losses. YOU must REPORT these transaction only from the tax forms can you determine if you owe...

Tax Law (Questions About Taxes): Partnership-owned LLC, entity selection, llc
entity selection, llc, partnership: If you select pass thru entities (LLCs, partnerships, S corporations, etc) income should pass thru until it gets to an entity which will be taxed. In your case, this would ultimately be the partners. As long as you avoid a C corporation, you generally avoid...

Tax Law (Questions About Taxes): Payroll taxes, household employee
household employee: I would classify that individual as a household employee. As a result, there are a whole bunch of things involved. Depending upon how much you pay them, you may need to withhold taxes. I ll give you the summary link from the IRS site. Otherwise, this is...

Tax Law (Questions About Taxes): Personal Vehicle Rental, irs rate, mileage reimbursement
irs rate, mileage reimbursement, personal truck: No, it does not change anything per se. However, from your description, it sounds like an arrangement that is not acceptable to the IRS. Most likely, they would classify the rental paid to him as mileage reimbursement, eliminating the rental aspect and treating...

Tax Law (Questions About Taxes): Potential Tax on Divorce Settlement, capital gains tax, divorce settlement
capital gains tax, divorce settlement, marital debt: Janel, Thanks for your question. Assuming you have lived in your residence as your main home for 24 of the past 60 months, up to $500,000 in gain is not taxable ($250,000 for other filing statusus). The gain on the investment house will be taxable...

Tax Law (Questions About Taxes): Private Benefit, Private Benefit, Inurement
Private Benefit, Inurement, 501 (c)(3): Hey Don, The Inurement/Private Benefit limitation in no way apply to you just because you are supplying the needs of independent missionaries along with affiliate missionaries. The limitation restricts suppling those that benefit only a private interest...

Tax Law (Questions About Taxes): Private School, Coverdell, ESA
Coverdell, ESA, Education Savings Account: Hey Rich, Unfortunately there are not really any options for you tax wise. The only provision that would have helped you would have been an Education Savings Account (ESA), also referred to as a Coverdell Account. Contributions are not tax deductible...

Tax Law (Questions About Taxes): Property Tax Assessment, Assessments, Property Tax
Assessments, Property Tax: Joe, I can relate to the having so much going on in life and just missing things. Unfortunately, in most cases the taxing authorities only have an obligation to disclose, or report, to you what they are assessing the value of your property to be for taxation....

Tax Law (Questions About Taxes): partnership syndication costs, amortization period, partnership level
amortization period, partnership level, limited partnership: Beverly, Thanks for your question. If the partnership is liquidated before the amortization period ends, the unamortized portion of the organization (syndication) costs generally could be deducted under Sec. 165 as a business loss in the liquidation...

Tax Law (Questions About Taxes): payroll, bonus payment, bonus level
bonus payment, bonus level, paystub: I am not aware of any bonus to the company. With a bonus payment, you will typically see more taxes withheld at the time that it is paid but your overall tax rate should not be impacted when you file your taxes. I can t speculate as to why they choose to...

Tax Law (Questions About Taxes): who pays the tax?, Transfer Pricing, Sales Tax
Transfer Pricing, Sales Tax, Inventory: Jackson, More than likely the US operations should be collecting sales tax if it is a taxable sale in the jurisdiction of the customer. Even though the physical product is shipped from the UK it is more than likely just be transfered on the books to the...

Tax Law (Questions About Taxes): Question on taxaation., Form w-9, Form w-8BEN
Form w-9, Form w-8BEN, Form 1099-Misc: Hey Ryan Tan, Very complicated and multi-variable question but here are a few thoughts: 1) My expertise is ONLY in US Tax Law and International Treaties between the US and other countries regarding taxation. 2) Having documentation such as an invoice...

Tax Law (Questions About Taxes): Recording work done in lieu of rent, rental property
rental property: Barter work is still recorded as income at fair market value of the service/product provided so you would record the value of the work as rental income. You would also have a capital improvement on the rental property that you could depreciate over time....

Tax Law (Questions About Taxes): Renting house I'm trying to sell, capital gain tax, partial exclusion
capital gain tax, partial exclusion, rental purposes: As you mentioned you should have a partial exclusion (which should cover your whole gain) based upon the job relocation. The rental should not affect the capital gain as long as you do not rent it for a long enough time to push your use outside the 5 previous...

Tax Law (Questions About Taxes): Roth IRA - Withdrawl and taxes, Roth IRA, Distributions
Roth IRA, Distributions, Exemptions: Hey Patrick, Sorry if you are receiving two responses. They are telling me that my 7/1 reply did not go through. A great resource for you on all individual retirement accounts can be found on the IRS website: http://www.irs.gov/pub/irs-pdf/p590.pdf...

Tax Law (Questions About Taxes): refund check interception, Tax Refunds, Court Orders
Tax Refunds, Court Orders : Dear Sue, Unfortunately this is not a tax question as this relates back to the state agency who intercepted your refund check. If you owe the state and the state owes you (refund) then this comes down to the legal rights of the state to off set, garnish...

Tax Law (Questions About Taxes): About Schedule C, jennifer thanks, jennifer jennifer
jennifer thanks, jennifer jennifer, stancil: Jennifer, Thanks for your question. The only child that can be claimed as a dependent is Child 3. The daughter that got married is filing a joint return and it is not just to get a refund. Fines are not deductible for tax purposes. Hope this helps....

Tax Law (Questions About Taxes): Small business/Booking Agency, money flow, booking agency
money flow, booking agency, agency management: To make sure I understand correctly, payment goes to the client and they pay you a percentage from that? Or do you get money from a third party and disburse it? Or just keep your share. Spell out the money flow completely and I ll give you a clear answer...

Tax Law (Questions About Taxes): State income tax on pension, retirement residence, state income tax
retirement residence, state income tax, service retirement: It really depends upon the state you move to. It will most likely be taxed in that state, but some states have full or partial exceptions for retirements from governments (sometimes more for federal than state). Unfortunately, you ll need to check with someone...

Tax Law (Questions About Taxes): State income tax withholding requirement, state unemployment tax, income tax withholding
state unemployment tax, income tax withholding, state tax return: Philip: Yes your company is required to with hold state income tax on your California employee and report that employee s wages to the state for income tax purposes. If your employee only works in the state of California then you are required to report...

Tax Law (Questions About Taxes): s corporation, Personal Service Corporation
Personal Service Corporation: Hey LES, A chiropractor, or any health professional, can operate as an S-Corporation and still provide Personal Services. The Personal Services Corporation legislation was intended to prevent the use of a corporation solely for the avoidance of the individual...

Tax Law (Questions About Taxes): sale of inherited family home, capital losses, capitol gains
capital losses, capitol gains, depressed market: The basis in the property is $520,000 and you are correct that you could realize a $60,000 loss for the sale. However, the loss may not be entirely realized in the given year. Capital losses can mostly be used only to offset capital gains. If capital losses...

Tax Law (Questions About Taxes): sales tax, Sales Tax Exemptions, Tennessee Budget
Sales Tax Exemptions, Tennessee Budget: Hey Dwight, Complicated question even though it seems so simple on the surface. The answer in my professional opinion is YES, it is taxable if it is purchased, used or intended for PERSONAL use. However if it is for the benefit of the organization, use...

Tax Law (Questions About Taxes): self employed versus agent, foreign earned income, earned income credit
foreign earned income, earned income credit, self employment taxes: Daniel, Thanks for your question. Without additional information, it sounds as if the church is your mission organization and you are an employee of the church. You would apparently qualify for the foreign earned income credit, but would still be...

Tax Law (Questions About Taxes): settlement taxes, workers compensation tax, US taxes
workers compensation tax, US taxes: Under code Section 104, amounts received from Workers compensation are not taxable. I would however be sure to consider to what extent you have deducted medical expenses (or any other expense) in connection to that injury in the past, and review the verbiage...

Tax Law (Questions About Taxes): state gambling taxes, state tax return, state income tax
state tax return, state income tax, state taxes: Since I am in the southeast I am not familiar with the specifics of Wisconsin and Michigan. However, typically you have to report income to the state in which it is earned/reaceived (in this case Wisconsin) and the state in which you reside (Michigan). Often,...

Tax Law (Questions About Taxes): student as dependent, Tuition Residency, Dependent
Tuition Residency, Dependent, Property Tax: Hey Stacey, Dependency for tax purposes and residency for tuition purposes are completely separate issues. If he moves to Texas with you there are clear cut requirement to claim him as a dependent for federal tax purposes. For further reference I am including...

Tax Law (Questions About Taxes): Tax Payments for our LLC, lori ann, hockey schools
lori ann, hockey schools, earning income: Lori-Ann, Thanks for your question. Most likely. It would probably be taxed to you at the individual level, but state laws vary. Since you have a presence in the different states and are earning income in those states, that income would be subject to...

Tax Law (Questions About Taxes): Tax on sale of rental property, tax liability, rental property
tax liability, rental property, depreciation: The only way that I can think that there would be tax liability is if the depreciation lower your basis (cost enough) that it is less than what you sold it for. It would have to be a pretty expensive home to depreciate $75,000 in 5 years. Be sure to include...

Tax Law (Questions About Taxes): Tax on stock, dividend reinvestment plan, capital gains tax rate
dividend reinvestment plan, capital gains tax rate, long term capital gain: Hi, Any gain on the sale of the shares will be taxed as a long term capital gain. Be sure to keep track of the dividends reinvested as they add to your cost basis. It s hard to say what the capital gains tax rate will be since it depends on what congress...

Tax Law (Questions About Taxes): Taxes, Unemployment, Inheritance Tax
Unemployment, Inheritance Tax: Hey Lori, Unfortunately, yes, you may have to pay taxes this year. The inheritance will generally be excluded from tax however you will still have the 2 months of earnings from employment and the amount of your unemployment for the year that you do not...

Tax Law (Questions About Taxes): Back Taxes, tax debts, retirement account
tax debts, retirement account, stancil: OK, thanks for the clarification. You are only liable for his tax debts in a year in which you filed a joint return. The IRS does have claim to any assets of the deceased prior to distribution to the beneficiaries. So the IRS can take the taxes from the...

Tax Law (Questions About Taxes): Taxes for house, air traffic controller, chapter 11 bankruptcy
air traffic controller, chapter 11 bankruptcy, hose repairs: Karen, Thanks for your question. I can t address all the bankruptcy issues, but I can advise you on taxes on the sale of your home. You can exclude the gain if you are in Chapter 11 bankruptcy or if you are insolvent. To determine insolvency, you...

Tax Law (Questions About Taxes): tax, early withdrawal penalty, retirement account
early withdrawal penalty, retirement account, retirement accounts: Early distributions from most types of retirement accounts will result in a 10% early withdrawal penalty. Depending upon the details if you roll it over into another retirement account you may avoid the 10% early withdrawal penalty. Adam http://www.wilmingtontaxesandaccounting.co...

Tax Law (Questions About Taxes): Am I tax exempt?, federal tax return, time college student
federal tax return, time college student, higher tax bracket: Latest info I have seen from the IRS is as a single individual you are not required to file a federal tax return unless you make over $9,350 (which means below that amount you don t have any taxes for the year). If you make below that but they have withholding...

Tax Law (Questions About Taxes): tax fraud, tax fraud, term hope
tax fraud, term hope, filing taxes: Kyle, Thanks for your question. Since the IRS has already contacted you, you can tell them that the return you filed was false and you did not have any income during the year. However, you may wish to contact a tax attorney or CPA who deals with the...

Tax Law (Questions About Taxes): tax prep, online filing
online filing: That depends upon who you are dealing with. Prior years (anything before 2009 at this date) can not be filed online. They can only be paper filed. You may be able to online filing software to print them but that would depend upon the software. With paper...

Tax Law (Questions About Taxes): tax prep, filling out an application, oic
filling out an application, oic, wellman: I am sorry to take so long to answer your question but I was out sick a few days. The fastest way to file a return is to walk it in to a local office. Ask for a date stamped copy. It will only take a few days for the OIC to be received but it may be a...

Tax Law (Questions About Taxes): taxable short term gains, capital gains tax, gross proceeds
capital gains tax, gross proceeds, currency trader: Hi, You can issue a 1099 to each of the family members to show their gross proceeds. Then each of them will report the sales on Schedule D showing what they paid for the shares and what they sold them for and, of course, the dates of purchase and sale....

Tax Law (Questions About Taxes): taxes on inheritance from Ireland, foreign inheritance, foreign will
foreign inheritance, foreign will, foreign probate: Hi Ann. Sorry to hear about your mother. In general, Inheritance received abroad is taxed the same way as inheritance received here. I would highlight 2 things: From a tax point what is really happening is that you acquired an asset with a basis equal...

Tax Law (Questions About Taxes): 1099-Misc and computer tax deduction, self-employment, depreciation
self-employment, depreciation: It depends upon your business use % for the computer for the year. If it is high enough, you can probably take a section 179 deduction and depreciate the computer in the first year. As for the iPad, if it is still used primarily for business purposes it...

Tax Law (Questions About Taxes): 179 deduction for laptop, 179 deduction, fritzler
179 deduction, fritzler, tax expert: Schedule E would not change the tax status of the 179 deduction. But there is a crucial detail. . . the 179 deduction is only available out of Profit . If the business was not profitable, then the 179 deduction does not exist for that business. So if,...

Tax Law (Questions About Taxes): 401K Cash Dividend - 1099-R, dividend distribution, cash dividend
dividend distribution, cash dividend, distribution code: I have never heard of this happening before. If you are receiving a 1099-R then they are treating it as a distribution and you would be subject to the 10% penalty as well as income tax. If I were you, I would either ask the employer if you can return the...

Tax Law (Questions About Taxes): 401k withdraw, early withdrawal penalty, ameriprise
early withdrawal penalty, ameriprise, retirement plan: Jay, Thanks for your question. A couple of observations. First, if you are married filing jointly your taxable income would have to be under $16,700 to avoid any taxes. This includes the pension plan withdrawal. However, unless you are 55 or older...

Tax Law (Questions About Taxes): 7500 tax repayment, first-time homebuyer
first-time homebuyer: You don t really want a 1099-C. Since it is your primary home you probably wouldn t have to pay taxes on the cancellation of debt but 1099-Cs are generally bad. It seems as if you meet the last criteria and can avoid repayment. Just double-check that you...

Tax Law (Questions About Taxes): Adoption tax credit, adoption tax credit, adoption expenses
adoption tax credit, adoption expenses, foreign adoption: Chris, Thanks for your question. For a domestic adoption, you can take the credit in the year following the expenditure or the year the adoption is final, whichever comes first. For a foreign adoption, you cannot take the credit until the year in...

Tax Law (Questions About Taxes): Beneficiary of Friend's IRA, ira beneficiary
ira beneficiary: Were you name the beneficiary on the IRA or are you just an heir? I know you said beneficiary but I want to be sure because it has implications. Since it was not your spouse you will be required to start taking portions of the IRA as a distribution. http://www.irs.gov/publications/p590/ch01.html#en_US_publink1000230753...

Tax Law (Questions About Taxes): Best way to file taxes for babysitting income, sole proprietorship, babysiting
sole proprietorship, babysiting, protection purposes: Lara, Thanks for your question. It doesn t make any difference. Number one, an LLC is not designed for tax savings, it is primarily for liability protection purposes. Secondly, the IRS does not recognize the LLC as a separate type of entity. What...

Tax Law (Questions About Taxes): Business downsizing, unemployment benefit, social security payments
unemployment benefit, social security payments, unemployment insurance: Ryan: The question you have should best be answered by an attorney that you hire to write the contract for the purchase of the assets of the LLC. Personally I would never buy an ongoing LLC or Corporation. I would only buy the assets. I do not know...

Tax Law (Questions About Taxes): Cash Accounting and Inventory, accounting for inventories, cash accounting
accounting for inventories, cash accounting, method of accounting: Warren, Thanks for your question. As long as you are not a manufacturer, you are permitted to use the cash method of accounting for inventories when your average gross annual receipts is less than $1,000,000. This is detailed in Rev. Proc 2001-10. ...

Tax Law (Questions About Taxes): Church Gifts to Individuals, volunteer forum, family contributions
volunteer forum, family contributions, ill wife: Patricia, Thanks for your question. Since the funds are being raised for a particular individual or family, contributions cannot be tax deductible. However, the church could have a fundraiser and donate the money to the family. But, I emphasize, the...

Tax Law (Questions About Taxes): COST BASIS NON MARITAL COOP STOCK, tax law changes, long term capital gains
tax law changes, long term capital gains, sales commissions: I am not aware of tax laws for 2010 that should affect it. However, capital gains rates are set to rise in 2011. If you can get someone to appraise a value for July 2010 then you are looking at minimal gains (I would expect). If not, you are looking at...

Tax Law (Questions About Taxes): Conversion to Roth IRA, roth ira, steve thanks
roth ira, steve thanks, retirement plan: Steve, Thanks for your question. You do not have to pay tax on the amount of the IRA that consists of non-deductible contributions. You will owe tax on the earnings and on any deductible contributions that have been made. Hope this helps. John...

Tax Law (Questions About Taxes): Corporate Retreats, deductions, luxury
deductions, luxury: There is no code section that allows a corporate retreat . Just like there is no code section that allows for the purchase of a forklift, or paying for yellow page advertising. All of these deductions are only available if they are reasonable and necessary...

Tax Law (Questions About Taxes): CP 2000 Form, amended tax returns
amended tax returns: As you infer, perhaps a thorough review of all possible deductions that could have been claimed for the year in question could offset at least in part the newly assessed tax due. Of course this should have been done in the first place when the return...

Tax Law (Questions About Taxes): childcare, social security number, stancil
social security number, stancil, eight hours: Megan, Since she is performing the services in her home, you don t have to worry about providing her any forms. She, however, must give you her social security number to allow you to take the childcare credit. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Can he claim me as a dependent?, divorce and the military, military offices
divorce and the military, military offices, stancil: Sam, Thanks for your question. As long as you are married, he cannot claim you as a dependent, the two of your would have to file a joint return. If you are not married, he can claim you only if you live in his household for more than half the year,...

Tax Law (Questions About Taxes): co-owned property with a NR, 1040nr rental income, non resident alien rental income
1040nr rental income, non resident alien rental income: I ll answer this question assuming you want to report your income as if you are in Business with your dad (i.e. once the deed and all other documents are in both of your names). The first number is net income. You will deduct all related expenses from the...

Tax Law (Questions About Taxes): cost basis, investment interest, borrower defaults
investment interest, borrower defaults, fmv: Steven: No that is not what I am saying. It is my contention that all you have invested is 120K Therefore you can only depreciate what you have invested you can not depreciate fair market value however you can use fair market value as basis for the resell...

Tax Law (Questions About Taxes): cost basis, stancil, investment interest
stancil, investment interest, fmv: No. You purchased a loan for $120K. If it is not repaid, your basis in the property is $120K (or whatever the outstanding balance is on the loan). If it is repaid, any amount above $120K that you collect on the principle is gain on your investment. Interest...

Tax Law (Questions About Taxes): Day allowed in US when working overseas, physical presence test, irs publication 54
physical presence test, irs publication 54, stancil: Janeatmaciel, I don t know who your tax man is, but he is wrong. Look at IRS Publication 54 at the Physical Presence Test. It specifically states that you must be physically present in a foreign country for 330 days in a 12 month period. You can be in...

Tax Law (Questions About Taxes): Disability income tax rules, social security disability, disability plan
social security disability, disability plan, disability income: Hi, If it is Social Security Disability part of it may be taxable depending upon the amount of your other income. If it s from a private disability plan, it may be taxable or partly taxable depending upon who paid the premiums for the coverage. Regards,...

Tax Law (Questions About Taxes): Divorce and split rental property, depreciation expense, capital gains taxes
depreciation expense, capital gains taxes, stancil: Dean, Thanks for your question. Not sure what you are getting at. You determine the total amount of gain, distinguishing between the depreciation recapture and capital gain portions. Then you divide it between the two of you equally. Each of you reports...

Tax Law (Questions About Taxes): Donation to a Boy Scout Troop, boy scout troop, www irs gov
boy scout troop, www irs gov, boy scouts of america: Matt, Thanks for your question. Donations to the national organization, Boy Scouts of America, are deductible. You would have to check at this link http://www.irs.gov/app/pub-78/ to determine if the specific troop is included. It is possible that the...

Tax Law (Questions About Taxes): Establishing Nevada Recidency, Consultant in California, stateline nevada, nevada residency
stateline nevada, nevada residency, sf bay area: Sam, Thanks for your question. In the year you change your residency to NV you will need to file in CA as a part year resident. You will owe tax on your earnings while a CA resident, and for any earnings that were made while physically present in CA....

Tax Law (Questions About Taxes): Estate taxes, state inheritance tax, income tax return
state inheritance tax, income tax return, irs issues: David, Thanks for your question. I cannot address the liability issue in the event someone gets hurt and sues. That is a non-tax legal question. As a CPA and not an attorney, I am prohibited by law from answering such questions. You cannot be held...

Tax Law (Questions About Taxes): Expenses as Income?, hotel food, unpaid taxes
hotel food, unpaid taxes, time event: Hi, Since you are not in business for yourself you should pay taxes on the hotel, food and air expenses. If you are in the business of reviewing grants, you could deduct your expenses from your income. But this sounds like a one-time event to me. ...

Tax Law (Questions About Taxes): Filing Exempt, employer tax, stancil
employer tax, stancil, tax liability: Alexandra, Thanks for your question. There is no such thing as filing your tax return as exempt. Filing exempt applies only to the W-4. You can file exempt if you had no tax liability in the previous year and do not anticipate any tax liability for...

Tax Law (Questions About Taxes): Filling out a W-4 form, social security card, tax forms
social security card, tax forms, middle name: Charles: All tax forms must be filled out using the information provided on you Social Security Card. You can be known as you want to be known except on tax forms you must be known on those as the government knows you. Employers can not pick and choose...

Tax Law (Questions About Taxes): Hedge Fund State Taxes, how to set up a hedge fund, interstate tax rates
how to set up a hedge fund, interstate tax rates, passive income: When it comes to resources I would always recommend the actual statutes and regulations. In this case you are looking at AZ tax code. For example: If you were operating in NY, NY has specific tax code that requires that all NY pass-through entities must...

Tax Law (Questions About Taxes): HOH Status, j k lasser, dependent daughter
j k lasser, dependent daughter, head of household: Dan: I appears that you want to debate the issue and from other markers you do not appreciate my thoughtful response. As always each tax question may have more than one answer depending on the set of facts. I do not get paid for this abuse, I donate...

Tax Law (Questions About Taxes): House for sale, expat real estate, foreign capital gain
expat real estate, foreign capital gain: Hi Brett, Coincidence, I live and work out of Colombia! :D Selling your house will trigger a capital gain like selling any other piece of real estate. Likely you will pay taxes to Colombian DIAN, which will will reduce your taxable income on your US...

Tax Law (Questions About Taxes): Income tax withholding, ny state taxes, federal income taxes
ny state taxes, federal income taxes, stancil: Brenda, Thanks for your question. It does not matter where you live, your federal taxes will be the same. However, as a resident of NY you will be liable for NY state taxes. Depending on where in NY you live, you may also be liable for local income...

Tax Law (Questions About Taxes): Individual car mileage deduction, mileage deduction, car mileage
mileage deduction, car mileage, grocery chain: Hank, Thanks for your question. If you report in to the home store first, then go to the other stores, the mileage from your home store to the other stores is deductible. Likewise, if you stop by the home store at the end of the day before going home,...

Tax Law (Questions About Taxes): Getting Inheritance Early in WA state, taxable interest income, joint checking
taxable interest income, joint checking, best direction: Patkenna1, Thanks for your question. First, if you are paying them interest on the money, the only thing that has happened is that they have loaned you the money with you and it is still theirs. It is not an inheritance, as they are still living....

Tax Law (Questions About Taxes): Inheritance tax., inheritance tax, stancil
inheritance tax, stancil, face value: Monroe, Thanks for your question. The inheritance itself is not taxable, but any gain on the sale of the assets in the estate would be taxable. Since I do not know the basis in the 1/5 of the estate that was not CD s I can t tell you how much, if any,...

Tax Law (Questions About Taxes): Interest claimed (Divorce), stancil, mortgage interest
stancil, mortgage interest, ssn: M, Thanks for your question. No you are not correct. In order to deduct mortgage interest one of the requirements is that you must be legally liable for the debt. Since the loan is in his name, you cannot deduct the interest. The other requirement...

Tax Law (Questions About Taxes): IRA Gift to Child, gift ira
gift ira: If your father (I assume that is the he) takes a distribution from the IRA he will be taxed on it as ordinary income. An additional tax consideration is the gift tax. An individual can gift up $13,000 a year to an individual without filing a gift tax return....

Tax Law (Questions About Taxes): independent contractor, stancil, independent contractor
stancil, independent contractor, hot button: Wayne, Thanks for your question. If she is truly an independent contractor she is responsible for her own taxes. However, you state that she is working there and that leads me to believe that she should be a W-2 employee. You can complete Form SS-8...

Tax Law (Questions About Taxes): inheritance tax, federal inheritance tax, water intrusion
federal inheritance tax, water intrusion, fed gov: Laura, There is no federal inheritance tax and never has been. You are referring to the estate tax. With an estate of under $1,000,000 it is not likely that there would be no estate tax, even if it is retroactively reinstated. This, however, is highly...

Tax Law (Questions About Taxes): ira contributions, ira contributions, previous years
ira contributions, previous years, flexibility: The only real time you have flexibility is for contributions made between 1/1 and 4/15 of a given year. Those can be allocated to the prior year or the current year but generally need to be specified at the contribution. As for the contribution you made...

Tax Law (Questions About Taxes): Labor Taxable or not?, business pays sales tax, resale license
business pays sales tax, resale license, nevada corporation: You didn t give me a lot of detail to go on, so let me make a few stabs at it. What does your contract say? Are we talking Sales tax? Do you have a resale license for Granite and Marble Installation? If not then he has an obligation to collect the tax...

Tax Law (Questions About Taxes): Late Taxes, back taxes, tax problem
back taxes, tax problem, irs help: You should be worried; very worried, and rightfully so. Failure to pay over withheld payroll taxes to the government is considered by IRS and state tax agencies to be little more than thinly disguised theft, and they take the most stringent collection and...

Tax Law (Questions About Taxes): Life insurance money, life insurance proceeds, life insurance money
life insurance proceeds, life insurance money, annual exclusion: Matthew, Thanks for your question. Life insurance proceeds paid by reason of death are not subject to income taxes. Any use she makes of the money would constitute a gift since she is withdrawing more from the account than she placed into the account....

Tax Law (Questions About Taxes): LLC Taxes, sole proprietorship, georgia thomas
sole proprietorship, georgia thomas, michigan company: Thomas, Thanks for your question. Your LLC is officially a company of the state in which you received the LLC license/charter. I presume you are electing to have the LLC taxed as a sole proprietorship. You will have to pay taxes in MI as a non-resident...

Tax Law (Questions About Taxes): LLC Taxes, sole proprietorship, kirkland wa
sole proprietorship, kirkland wa, stancil: Srimathi, Thanks for your statement. If the LLC is being treated as a sole proprietorship, any portion of rent that is deducted must qualify under the home office rules. There must be an area of your home that is used exclusively and regularly for business...

Tax Law (Questions About Taxes): Marriage between a professional and student who live in different states, income tax return, meager earnings
income tax return, meager earnings, stancil: Bryan, Thanks for your question. Gifts are not a part of your income tax return. If the total amount of gifts exceeds $13,000 in any given year you must file a gift tax return. However, it is likely that there would be no tax, as there is an additional...

Tax Law (Questions About Taxes): Minimizing tax on sale of property and reinvestment, stancil, living in florida
stancil, living in florida, income taxes: Erica, Thanks for your question. If you have owned and lived in your current home as your primary residence for 24 of the past 60 months, you may exclude up to $250,000 ($500,000 married filing jointly) of gain from the sale. It does not matter what...

Tax Law (Questions About Taxes): Monetary gifts from parents, stancil, monetary gifts
stancil, monetary gifts, tax penalties: Paul, Each parent can give up to $13,000 per year per child without having to file a gift tax return. Above that amount a return must be filed. However, there is an additional lifetime exemption of $1,000,000 so it is likely that no tax would be due....

Tax Law (Questions About Taxes): Mutual Fund Proceeds Taxable, tax nightmare, hands in the air
tax nightmare, hands in the air, s 70: Hi, You can try to look up their historical price at Big Charts or other sites that provide that information. But you re going to have to pick a date and know the funds ticker. You may just have to guess as you did when you sold the others. Regards,...

Tax Law (Questions About Taxes): Mutual fund shares change of ownership, income tax consequences, mutual fund shares
income tax consequences, mutual fund shares, kiddie tax: Stanley, Thanks for your question. Since the shares are valued at less than $13,000 there would be no gift tax consequences. Also, gifts are not considered income, so he would have no income tax consequences until he sells. His cost basis would be...

Tax Law (Questions About Taxes): Need answer??, self employment tax, home health agency
self employment tax, home health agency, income tax return: Griselda, Thanks for your question. This would be considered self-employment and you would report it on Schedule C and pay the 15.3% self employment tax on Schedule SE. I would add that this is probably an illegal move on the part of employer. It...

Tax Law (Questions About Taxes): nj unemployment benefits, state unemployment, unemployment benefits
state unemployment, unemployment benefits, seasonal job: Dominick: You can always file a claim for unemployment. It will depend on your work history if you draw any benefits. When you file in November the wages in the base period should be the 1st 2 quarter of 2010 and the last 2 quarters of 2009. Since...

Tax Law (Questions About Taxes): Overnight Business Travel Nearby, per diem rate, irs regulations
per diem rate, irs regulations, overnight business: Charles, Thanks for your question. There is no distance rule but IRS regulations state that you must be away from your tax home. This is defined as the entire city or general area in which you regularly conduct business. This applies to both the...

Tax Law (Questions About Taxes): Pastor gas allowance & love offering, irs website, volunteer forum
irs website, volunteer forum, guest minister: Retta, Thanks for your question. Since this is a volunteer forum, I cannot take the time to research and quote code sections. It would simply be more time consuming that I could allow. Both statements are true, but in a limited context. First, churches...

Tax Law (Questions About Taxes): Pastoral Medical Help, medical reimbursement plan, john thanks
medical reimbursement plan, john thanks, hi john: Adam, I am not conversant with the details of the plan rules, particularly as they relate to non profits. In my experience with small churches, it has been my experience that they usually do not have the personnel available to properly administer the plan....

Tax Law (Questions About Taxes): Paying Taxes on a Home Warranty Settlement, foundation issue, home warranty
foundation issue, home warranty, tax consequences: David, Thanks for your question. No, the cash amount you are being paid is payment for damages to your home. If you choose not to use it for that or if you get it done for less, there are no tax consequences. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Perdiem after 364 days on assignment, perdiem, request reimbursement
perdiem, request reimbursement, staffing company: jcb: That I can not answer, only you can answer the question. Will your company pay the expenses that you are incurring if you submit the bills to them and request reimbursement rather than per diem. Per diem is not suppose to be supplemental income rather...

Tax Law (Questions About Taxes): Personal Use of Company Vehicle, irs website, equity account
irs website, equity account, account thanks: Victor, Thanks for your question. Since the personal use was accounted for correctly on your W-2 the entire balance in the Auto account should have been closed when the vehicle was sold, creating a gain or loss on the sale for the corporation. Hope...

Tax Law (Questions About Taxes): Pre signon bonus, remittance, accountant
remittance, accountant, irs: I think you definitely have a case that he/she was not an employee back in January, especially if you did not do the hire, docs, etc. The recommendation you were given sounds reasonable. You are fortunate that the employee was willing to pay back the $4K...

Tax Law (Questions About Taxes): preaching and taxes, self employment income, self employment taxes
self employment income, self employment taxes, 1099 misc: That is correct. Since you are not working for them regularly, you are not an employee and a 941 is not necessary. However, if you should become their regular pastor, they would then need to issue you a W-2 rather than a 1099 and file the 941 and appropriate...

Tax Law (Questions About Taxes): Rental property sale taxes, irs publication 523, kitchen remodel
irs publication 523, kitchen remodel, tax publication: Barry, Thanks for your question. Since it was sold at a loss, you do not likely have any taxes on the sale. The cost of remodeling the kitchen would add to the basis, but a loss on the sale of your personal residence is not deductible. IRS Publication...

Tax Law (Questions About Taxes): Roth IRA withdrawls, roth ira withdrawls, employer 401k
roth ira withdrawls, employer 401k, roth iras: Hi, I don t know whether or not it is still within an IRA. Check with your bank. But whether or not it is, you still can take out your contributions with no penalty. You can t put the money in your 401(k)s. Only monies within an employers retirement...

Tax Law (Questions About Taxes): real estate investment tax, 1040nr rental income, non resident rental income
1040nr rental income, non resident rental income, non resident capital gains: Hello, The rental income tax rate, as well as the capital gain tax rate is the same as for US Citizens. Generally, gain from the sale of long-term capital assets is subject to a maximum capital gains tax rate of 15% for high income taxpayers, with...

Tax Law (Questions About Taxes): did not receive k-1, filing an amended return, stancil
filing an amended return, stancil, s books: Jill, Thanks for your question. You cannot properly complete the return without the K-1. You can use a Form 8082, but without access to the company s books the numbers are likely to be incorrect. This would necessitate filing an amended return when...

Tax Law (Questions About Taxes): Sale of Property, irs rules, form 3115
irs rules, form 3115, stancil: Warren, Unfortunately, IRS rules state that you must reduce the basis for depreciation allowed or allowable, even if you did not take it. You may be able to file an amended return or file a Form 3115 and be able to take some of the depreciation. Hope...

Tax Law (Questions About Taxes): Sale of rental Property, form 8582, john thanks
form 8582, john thanks, stancil: John, Thanks for your question. When the property is sold in a taxable transaction, you can deduct suspeneded lossess. The suspended losses are deducted on Schedule E, not against the capital gain. This will likely work in your favor as opposed to deducting...

Tax Law (Questions About Taxes): Savings Bond Treatment for Foreigners, 1040nr interest, foreign person interest income
1040nr interest, foreign person interest income, FDAP: You can absolutely gift him that savings bond! Nonresident aliens and foreign corporations are not subject to U.S. taxes on interest from bank deposits that are not effectively connected with a U.S. trade or business. Code Secs. 871(i) and 881 If you...

Tax Law (Questions About Taxes): SS disability and income taxes, disability income, disability benefits
disability income, disability benefits, stancil: Lisa, Thanks for your question. The earned income will be reported on line 7 of the 1040 if you receive a W-2. If you don t get any document or get a 1099 for the earned income, it is reported on Schedule C. The disability income is reported on line...

Tax Law (Questions About Taxes): sale of deceased mother's life-estate non-homestead land, homestead land, taxable gain
homestead land, taxable gain, deceased mother: Terry, Thanks for your question. Yes, you will owe tax, at capital gain rates on the gain from the sale. The gain depends on when she died. If she died prior to 2010, your basis in the land is the fair market value as of date of death. Any difference...

Tax Law (Questions About Taxes): sale of gifted rental property, depreciation schedule, gifted property
depreciation schedule, gifted property, capital gains tax: Steven, The donee receives the gifted property at the donor s adjusted basis. This would be the basis after any depreciation has been taken. When sold, the new owner would have depreciation recapture on any depreciation allowed or allowable during his/her...

Tax Law (Questions About Taxes): How to start withholding taxes for our church secretary, withholding taxes, church secretary
withholding taxes, church secretary, backtrack: George: It is better that you do it now than at the end of the year. You will need to correct it for this year at least. The previous years may stand on their own. But you know that this has been done in error in the past. You may be asses a penalty...

Tax Law (Questions About Taxes): stock loss, stock loss, party transaction
stock loss, party transaction, stancil: Rod, Slightly different situation, same result. If you give him the stock, a sale has not occurred and you have nothing to report on your 1040. His basis would normally be a transferred basis from you. However, since it has declined in value, his basis...

Tax Law (Questions About Taxes): Tax credit for hot water heaters, hot water heaters, refundable credit
hot water heaters, refundable credit, stancil: Jeanette, Thanks for your question. You should go with line 60. The EIC is a refundable credit so it comes after other credits. Different states have different rules about the credit, so I can t help you with that part. It depends on your state...

Tax Law (Questions About Taxes): Tax deduction on land mortgage, home mortgage interest, land mortgage
home mortgage interest, land mortgage, form 4952: Eric, Thanks for your question. Not deductible as home mortgage interest. However, it may be deductible as investment interest. In order to deduct investment interest you must have investment income at least equal to the expense. Form 4952 would be...

Tax Law (Questions About Taxes): Tax on IRA withdrawal, estimated tax payments, ira withdrawal
estimated tax payments, ira withdrawal, ira funds: Paul, Thanks for your question. When you complete your return, if it shows a penalty for late payment, you will have to complete form 2210, indicating when during the year your income was received. This would eliminate the penalty for not paying evenly...

Tax Law (Questions About Taxes): Tax Question, llc ownership, passive investment
llc ownership, passive investment, self employment tax: I ll need a little more information to give you a credible answer that will actually apply to your situation. Do you distribute 100% of the net revenue to the investors/owners/employees now? What percentage ownership interest does each LLC member own?...

Tax Law (Questions About Taxes): Tax or no tax?, canadian, capex
canadian, capex, us real estate: There are many facets to this question not just the broad Can my taxes this year be lower? but also multi year tax issues, If you do rent the value and are Given the property then your basis is zero and when you sell you d have far higher taxes on gains....

Tax Law (Questions About Taxes): Taxation, most advantageous business structure, richard fritzler
most advantageous business structure, richard fritzler: Oh. . . so many options; And it can seem really confusing. Partnerships of different flavors, General Partnerships, Limited Partnerships, Limited Liability Partnerships and even Limited Liability Limited Partnerships; then the LLC, Serial LLC; Let s not forget...

Tax Law (Questions About Taxes): Taxes on cars as gifts, stancil, gift taxes
stancil, gift taxes, bargain price: Dwayne, Thanks for your question. Gift taxes, if any, are borne by the donor. As the recipient you have no gift tax obligation. Gifts are not considered income, so they are not subject to income tax. Sale of an items at a bargain price is still considered...

Tax Law (Questions About Taxes): Trucking tax question - loss in truck in shop, 1099 or w-2, nevada corporation
1099 or w-2, nevada corporation, incorporate in nevada: The W-2 wages have already had the Payroll taxes paid on them, social security and medicare. Putting them on the schedule C as 1099 income would mean he was responsible to pay those again as Self Employment Tax . That would be bad, and that would...

Tax Law (Questions About Taxes): Trust questions, stancil, cpa
stancil, cpa, fair market value: Terrie, Thanks for your question. Any gain on the sale is taxable. If your mother died prior to 2010, your basis in the house is the fair market value as of date of death. Any sale price (minus costs of sale) in excess of that value is taxable. ...

Tax Law (Questions About Taxes): tax gain - sale of vacation home, marginal rate, stancil
marginal rate, stancil, private pension: Jim, Thanks for your question. Assuming it was never used as a rental, capital gain rates would apply. In your case, a portion would be at zero and the rest at 15%. It depends on your marginal rate and total taxable income. This applies only to 2010,...

Tax Law (Questions About Taxes): Unclaimed dependent?, stancil, due date
stancil, due date, child support: Rob, You can file amended returns for three years after the due date or the date the return was filed, whichever is later. As far as finding out which years she was not claimed, you would have check with her mother (or whoever may have claimed her). ...

Tax Law (Questions About Taxes): uncollectable from irs, stancil, irs
stancil, irs, beneficiaries: Yes, any one who receives anything from the estate can be held liable for the taxes, up to the extent of the value of the assets received. It you take title prior to their deaths the IRS may take the view that the transfer was an attempt to evade the taxes...

Tax Law (Questions About Taxes): untaxed income, 1099 employee
1099 employee: You are required to pay taxes on your total income. It gets really sticky. There are two types of taxes. Payroll Taxes (social security, medicare, workers comp and unemployment) and Income Taxes (Federal and State). Income taxes, are paid 100% from...

Tax Law (Questions About Taxes): W2 Gross Pay, poor economy, page adam
poor economy, page adam, gross pay: They should know to not include missed paychecks (unless they wrote the checks and he did not turn them over to you). I would express my concerns with the employer and make sure everyone is on the same page. Adam http://www.wilmingtontaxesandaccounting.co...

Tax Law (Questions About Taxes): Withholding for work in a different state, stancil, law states
stancil, law states, east texas: Al, Thanks for your question. Laws vary from state to state, but it appears that you do have a presence in AR that gives you nexus in that state. Nexus basically means that you have a sufficient presence within a state to subject you to the tax laws...

Tax Law (Questions About Taxes): Write off, adjusted gross income, itemized deduction
adjusted gross income, itemized deduction, 50 cents: Hi, Yes, since you are going directly from work to school you can deduct the difference between a normal home to work commute and a work to school to home commute. For example if you normally travel 30 miles per day and adding the school mileage brings...

Tax Law (Questions About Taxes): work related living expenses, irs rules, stancil
irs rules, stancil, living expenses: Thomas, Thanks for your question. Unfortunately not. Under IRS rules, your tax home is the place where you regularly work. Each of you has a separate tax home and, therefore cannot deduct the living expenses that you incur. Hope this helps. John...

Tax Law (Questions About Taxes): Can we write off damage to real property that was not disclosed to us prior to sale?, damage occured, rentor
damage occured, rentor, stancil: Jonathan, Thanks for your question. Sorry, but you cannot treat that as a casualty/theft loss. First, mold damage and possibly water (depending on how it happened) do not meet the criteria for a casualty as it is not sudden and unexpected. Secondly,...

Tax Law (Questions About Taxes): write offs, Medical Deduction for Breast Implants, Breast augmentation
Medical Deduction for Breast Implants, Breast augmentation, fake boobs: Let me see if I could clear up some confusion. I am not trying to make light of the topic, and I am sorry for your loss, and your mother. Your mother (as an Individual) had a right to include in her deduction any medical expenses that exceeds 7.5% of here...

Tax Law (Questions About Taxes): 1099-C, depreciation expense, debt cancellation
depreciation expense, debt cancellation, saled: AB, Thanks for your question. You have two different issues that you are confusing. First is the debt cancellation issue. You will owe tax on the cancelled debt that exceeds the FMV. 281K - 105K. Second, since this was a rental property, you...

Tax Law (Questions About Taxes): 1099 vs W2, self employment tax, w2
self employment tax, w2, business purposes: Hi, When you report 1099MISC income you have to pay self employment tax. Since the employer is paying none you have to pay both your portion and the employer s portion. The W2 will save you 7.65% so the W2 is the better way to go. Regards, Carol...

Tax Law (Questions About Taxes): 401K early withdrawal taxes and penalty, early withdrawal penalty, 401k withdrawal
early withdrawal penalty, 401k withdrawal, profit sharing plan: Hi, It may reduce the income tax if you file separately. Calculate it both ways and take the best option. Make sure you can still use the education credits or tuition and fees deduction. The penalty could be set aside because she was over age 55 and...

Tax Law (Questions About Taxes): 501(c)3 and form 990, form 990, stancil
form 990, stancil, clearing house: Daniel, Thanks for your question. Among not for profit organizations, only churches are exempt from filing. I would be concerned. It probably would not affect you directly, assuming they give you a W-2, but it would reflect on your reputation if the...

Tax Law (Questions About Taxes): ANNUITY, mike thanks, stancil
mike thanks, stancil, initial deposit: Mike, Thanks for your question. I suggest you take the caps key off. Typing in all caps is more difficult to read and is considered shouting on the internet. No, deposits are not taxed, you will be taxed on the gain upon withdrawal. Hope this helps....

Tax Law (Questions About Taxes): Better late than never ?, start up, capital
start up, capital, losses: as to equity, the only thing that counts for the IRS would be the $5000. The Sweat Equity, hasn t been taxed yet, so it doesn t count, and unless someone is trading you dollars for your time, there is no value placed on it. Now you might your time for stock...

Tax Law (Questions About Taxes): California Income Tax, california income tax, presence presence
california income tax, presence presence, physical presence: Nexus in this case means that you have sufficient contact or activity in the state to warrant them to subject you to tax. Physical presence; presence of an agent, warehouse, office, and the like are sufficient to give you nexus. Any one criteria would suffice....

Tax Law (Questions About Taxes): California NOL, sole proprietorship business, personal vehicle
sole proprietorship business, personal vehicle, sales tax: Robert: Net operating loss from a business and the purchase of a personal vehicle are not equals. Carrying forward a net operating does not allow you to exclude sales tax on anything. If your business is still operating you may have additional net operating...

Tax Law (Questions About Taxes): California State Disability Insurance Taxes, california state disability insurance, california state disability
california state disability insurance, california state disability, state disability insurance: Suzanne: If the disability is state funded, I do not know if it will be taxed. If you filled out the paper work and you had to declare dependents for with holding purposes then it may be. However, if you did not it may not be taxable. I know third party...

Tax Law (Questions About Taxes): Capital Gains Tax Cut, proposal hope, bush tax cuts
proposal hope, bush tax cuts, capital gains taxes: Craig, Thanks for your question. That item is part of the Bush tax cuts and expires at the end of 2010 unless extended. It would then go to 10 or 20% depending on your marginal bracket. However, Obama could submit a totally different proposal. Hope...

Tax Law (Questions About Taxes): Church designations, stancil, designations
stancil, designations, inactivity: Van, Thanks for your question. Most of your question is a legal issue outside the area of tax, and I cannot by law address those points. I will, however, give you a tax response. There are not tax requirements for setting up a designated fund, it must...

Tax Law (Questions About Taxes): Contract Labor, leasing office, self employment taxes
leasing office, self employment taxes, contract labor: Brittani, Thanks for your question. First, from your description, it sounds as if you should be an employee, receiving a W-2. You can complete Form SS-8 and submit it to the IRS for a determination of your status. As a self-employed individual, you...

Tax Law (Questions About Taxes): Contract labor, irs gov, social security and medicare
irs gov, social security and medicare, state income tax: Sarah: Your are an employee and should be reported as such. Yes the company can probably terminate you for no reason. At some point if they are audited by the state this practice will be discovered and probably changed. You probably have this same...

Tax Law (Questions About Taxes): Corporate Implications of Telecommuting Employee in Massachusetts, Nexus, out of state employee
Nexus, out of state employee: Under the Nexus Rules there isn t much question. Having an Employee living AND WORKING in another state IS a definition of doing business in that state. The normal formula to determine How Much business is done in MA, is based on payroll ratios. If your...

Tax Law (Questions About Taxes): church & rental property, unrelated business taxable income, exempt purpose
unrelated business taxable income, exempt purpose, stancil: Crystal, Thanks for your question. The location does not matter, this is a federal issue. The church can have rental property. However, since it is not a part of their exempt purpose and mission, it will be treated as unrelated business taxable income...

Tax Law (Questions About Taxes): Which corporation is best for me?, Self Employment tax, type of corporation
Self Employment tax, type of corporation: I can answer your second question right off. Yes, have them pay your business directly and use your business tax ID number. AS to the first question. . . I ll need a little more info. First question: Do you intend to be profitable? This seems to...

Tax Law (Questions About Taxes): Delphi Stock, gm stock, zero value
gm stock, zero value, spinoff: Hi, She could have claimed a loss in the year Delphi stock became worthless. I don t know what year it was but if was within 3 years she could file an amended return to claim the loss. Otherwise she can t sell it unless a broker will help her out and...

Tax Law (Questions About Taxes): Dependent adult
John, Thanks for your question. Based on the information you have provided, it appears that you may be able to take a dependency deduction for her. If you provide over half her support, you can take a dependency exemption. This would presume that you...

Tax Law (Questions About Taxes): Depletion on gas well royalties
Ed, You are entitled to take depletion from gross royalties. This is a percentage as defined in tax law. The amount varies from time to time. You can file an amended return for 2009, 2008 and 2007. 2007 would have to be filed by April 15, 2011. Hope...

Tax Law (Questions About Taxes): Per Diem for meals/lodging, schedule a, unreimbursed business expenses
schedule a, unreimbursed business expenses, itemized deductions: He can not use the per diem rates - in the event of an audit you will need to prove actual cash outlay. Best thing you can do is get a credit card to be used exclusively for this purpose. Ideally you will staple all receipts to the statement at the end...

Tax Law (Questions About Taxes): Disability and Owed Taxes, collectable status, form 8379
collectable status, form 8379, innocent spouse: Linda, Thanks for your question. If you were to marry and file a joint return, the IRS could withhold the refunds (not the returns) for your back taxes. However, he could file a Form 8379 as a innocent spouse to avoid this happening. It is recommended...

Tax Law (Questions About Taxes): dissolution of LLC, state tax rate, corporate veil
state tax rate, corporate veil, brokerage account: Okay, you have followed me so far. We have overcome the stripmall accounting dogma in the previous areas, let s take one more step. Let s throw out the Don t put real estate in a Corporation myth. Why can t the corporation. . . that already has the...

Tax Law (Questions About Taxes): divorce debt, innocent spouse relief, fraud audit
innocent spouse relief, fraud audit, nephews: I am not sure what you mean by years later . The IRS only has three years from the due date to get an audit completed. There are exceptions for fraud or substantial understatement of income but the claiming of her nephews is not likely to trigger a fraud...

Tax Law (Questions About Taxes): Eminent Domain, stancil, tax forum
stancil, tax forum, previous question: Melanie, Thanks for your question. The law applies to any property taken by eminent domain, regardless of use. State laws vary, so PA may treat it differently, however. This is a federal tax forum, and I am not familiar enough with PA law to give you...

Tax Law (Questions About Taxes): Estimated taxes/tax return for self-employment, credit card debts, www irs gov
credit card debts, www irs gov, irs website: I would recommend paying estimated taxes once your tax liability for the year gets to $1,000 or more. Typically, that won t happen until you net over $10,000 in a given year. If the IRS determines after you file your taxes that you should have paid estimated...

Tax Law (Questions About Taxes): Eyeglasses, adjusted gross income, prescription glasses
adjusted gross income, prescription glasses, stancil: Christopher, Thanks for your question. Those items are deductible as itemized deductions on Schedule A. However, you must first have enough deductions to itemize and you can only deduct the medical expenses that exceed 7.5% of your adjusted gross income....

Tax Law (Questions About Taxes): Foreign Earned Exclusion, bona fide residence test, physical presence test
bona fide residence test, physical presence test, foreign earned income exclusion: That is correct - but qualifying for the Bona Fide residence test can be more challenging, there are more areas where they could contest. See: http://taxplannercpa.com/WP/foreign-earned-income-exclusion/abode-in-the-context-of-the-foreign-earned-income-exclusion/...

Tax Law (Questions About Taxes): Foreign Earned Income Exclusion 2010: Vacations and Proof, physical presence test
physical presence test: Hi Tom. Strictly answering your question, yes you could spend your vacation in Mexico to protect your physical presence test - as the test requires that you be physically present in a foreign country or countries for 330 days. What I would wonder is...

Tax Law (Questions About Taxes): Foreign money and how to file on tax return, gift tax non resident alien
gift tax non resident alien: Hi Mel, I beleive this would be considered a gift from your parents, unless you are performing work in exchange which would give you a different answer (And higher taxes). The first 13,000 would be tax free ,and would not count towards the lifetime maximum...

Tax Law (Questions About Taxes): family trust employee, sole proprietor, successor trustee
sole proprietor, successor trustee, consultant agreement: Kruse: The trust should already have an FEIN. Anyway, you can hire an individual to be the care giver, However, the individual care giver will be an employee of the trust and be treated as such. The trust will be the employer and will withhold social...

Tax Law (Questions About Taxes): field audit, field audit, stancil
field audit, stancil, business records: Sam, Thanks for your question. I would attempt to reconstruct the mileage, based on your existing business records and your memory. When you present it to the IRS, do not try to hide the fact it is reconstructed, but explain how you determined the amounts....

Tax Law (Questions About Taxes): filing status for Federal tax return, federal tax return, getting a divorce
federal tax return, getting a divorce, head of household: Lisa, Thanks for your question. If you husband has not lived in your house at any time during the last six months of the year you are considered unmarried for tax purposes and may file as head of household even if the divorce is not final. If you...

Tax Law (Questions About Taxes): how can i find out if i will have to pay, irs gov, 1040 ez
irs gov, 1040 ez, 19 years: Jasmine: Go to www.irs.gov print a copy of 2009 1040 EZ and fill it out with the income and with holding information that you have this year and see where you are. Also, you can project the rest of the year based on what you have been paid up to this...

Tax Law (Questions About Taxes): foreign income exclusion, physical presence test, partial exclusion
physical presence test, partial exclusion, maximum exclusion: No, in 2009 you can take a reduced exclusion as I previously stated. The number of days in a foreign country in 2009 divided by 365. Multiply that by $91,400 for your maximum 2009 exclusion. For 2010 the number of days in a foreign country in 2010 divided...

Tax Law (Questions About Taxes): Gift, state citizen, old mother
state citizen, old mother, life time: Mary: In order for you to claim her as a dependent she must live with you. You do not get to deduct a gift, however, if you exceed $100,000 in a life time an I believe this year you can gift her 12,000 before you are required to pay taxes on it. Joh...

Tax Law (Questions About Taxes): Gift Tax/Inheritance, annual gift exclusion, split basis
annual gift exclusion, split basis, art thanks: Art, Thanks for your question. First, the annual gift exclusion is now $13,000 not #11,000. However, this has no relevance to you. This gets kind of complicated. When she made you co-owner that was a gift for 1/2 the total value of the stock at...

Tax Law (Questions About Taxes): Gifts and Tax Liability, form 709, liftime
form 709, liftime, stancil: Louise, Thanks for your question Your understanding is correct. The only issue with your final scenario is that it is not considered a gift unless it is a completed gift. This means that the gift must be given with no strings attached, including...

Tax Law (Questions About Taxes): HOH Status, j k lasser, dependent daughter
j k lasser, dependent daughter, head of household: Dan: This list below is the rule I follow for head of household: You are considered unmarried, You paid more than half the cost of keeping up a home for the year, and A qualifying person (usually a dependent) lived with you for more than half...

Tax Law (Questions About Taxes): Home based franchisee: what legal form, s-corp, home based franchise
s-corp, home based franchise, Nevada Corporate Services: I d need more information to give you a credible answer to that first question. So let me start with the second question. Yes you can set any amount you want and vary it from day to day if you choose. HOWEVER, that probably won t change the amount of tax...

Tax Law (Questions About Taxes): Home Loan Interest, home loan interest, new mortgage
home loan interest, new mortgage, stancil: Warren, Thanks for your question. No, it cannot. The rules state that a refinancing cannot be counted as acquisition debt to the extent that it exceeds the debt on the previous mortgage. Even though you were not refinancing, you had no mortgage, thus...

Tax Law (Questions About Taxes): Incorporation, corporate charter, s corp
corporate charter, s corp, steve thanks: Steve, Thanks for your question. No, the corporation was not in existence prior to September so you cannot include income and expenses earned and incurred prior to the date of incorporation on the corporate return. Additionally, you cannot treat anything...

Tax Law (Questions About Taxes): Inheritance Gifts, annual gift exclusion, stancil
annual gift exclusion, stancil, legal questions: Jon, Thanks for your question. She can give the gifts as you specify, probably with no tax liability. However, since the gifts exceed $13,000 per person a gift tax return must be filed. U. S. gift tax law allows a $13,000 per person annual gift exclusion....

Tax Law (Questions About Taxes): Inhertance Tax, stancil, federal estate tax
stancil, federal estate tax, original cost: Joselle, Thanks for your question. First, giving the house to yourself is self-dealing and could create problems if any others are involved. Basically, you don t have any taxes to worry about until and unless you sell the house for a gain. Unless...

Tax Law (Questions About Taxes): individual schedule C estimated taxes, majority member, self employment taxes
majority member, self employment taxes, schedule c: I would say not at this point, although the safe thing (to avoid potential late payment penalties and interest) to do is to always pay it. The only tax he should have to pay on that is the 15.3% self-employment taxes. Adam http://www.wilmingtontaxesandaccounting.co...

Tax Law (Questions About Taxes): individual taxes on babysitting, payroll tax returns, self employment tax
payroll tax returns, self employment tax, income tax purposes: Hi, She should give you a 1099MISC for your share of the income and you should file a Schedule C and deduct your share of any expenses. Since you are each earning $9,000 per year you should make quarterly estimated payments of income tax and self employment...

Tax Law (Questions About Taxes): How do I initially fill out form 673, foreign earned income, form 673
foreign earned income, form 673, earned income credit: Rey, Thanks for your question. There are actually two components to the foreign earned income credit/exclusion. The first is an exclusion of up to $91,500 in salary. The other component is an exclusion of housing expenses reimbursed or paid by your...

Tax Law (Questions About Taxes): Kids Inheriting 401K, file taxes, stancil
file taxes, stancil, lenore: Lenore, Thanks for your question. You would have to file a return for them if you make a withdrawal of that amount. It does not matter what you do with the funds. The rate would be 10% on the taxable income amount. You cannot roll this over into...

Tax Law (Questions About Taxes): LLC or FLP, school science teacher, high school science
school science teacher, high school science, self employment taxes: Alex, Thanks for your question. An LLC is not designed as a tax savings vehicle, it would not help any, tax wise, in your situation. An FLP is more of an entity to hold investments and minimize estate taxes. Leasing your autos to the corporation...

Tax Law (Questions About Taxes): Medical Expenses, adjusted gross income, return thanks
adjusted gross income, return thanks, itemized deductions: Ash, Thanks for your question. Probably not. In order to deduct medical expenses you must overcome two hurdles. First, you can only deduct medical expenses that exceed 7.5% of your adjusted gross income. Secondly, medical expenses are a part of itemized...

Tax Law (Questions About Taxes): Nanny - self-employed vs. employee, light housework, self employment taxes
light housework, self employment taxes, stancil: Jessica, Thanks for your question. If you work exclusively for them and do not do this for others you would most likely be an employee. For an official determination you can file Form SS-8 with the IRS. As a self-employed person you are responsible...

Tax Law (Questions About Taxes): Offer in Comp & Delinquent Filing, tax court offer in compromise irsos wellman
tax court offer in compromise irsos wellman: On the first question, you are in no danger of anything beyond interest and penalties on your 2008 return. You may even have a chance to get some of the penalties abated because of your medical situation. As for the second, an Offer in Compromise is something...

Tax Law (Questions About Taxes): Overseas contracting position tax question, physical presence test, foreign earned income
physical presence test, foreign earned income, fail to meet: Good morning. You are correct that leaving before the 330 days would make your income earned there, $50,000, taxable. There are many factors that would go into a proper calculation (Filing status, any other sources of income, credits, etc), but to give...

Tax Law (Questions About Taxes): Overseas tax obligation, foreign earned income exclusion, expat tax
foreign earned income exclusion, expat tax, expat taxes: US Citizens or residents are subject to US tax law no matter where they live. You are indeed to file a tax return for each year your gross annual income exceeds about $8k ($700 if self employed). See http://www.irs.gov/newsroom/article/0,,id=105097,00.html...

Tax Law (Questions About Taxes): Parents claiming me as a dependent
AJ, Thanks for your question. Since you are not a full time student, are over age 18, do not live with them, and presumably your gross income is over $3,650 they cannot claim you. Each of the above factors must be in place for them to take you as a...

Tax Law (Questions About Taxes): Partner buying a partnership with high debt, partnership, basis
partnership, basis, sale of partnership interest: If the transaction was between the partners. . . A one dollar billed was taken out of Bobs personal wallet and given to Jim who put it in his wallet, then the partnership is not involved in any of the accounting. For the partner that is receiving payment,...

Tax Law (Questions About Taxes): Passive activity loss/arm's length trans., Best Corporation attorney, need corporate attorney
Best Corporation attorney, need corporate attorney: Are you the attorney or are you the tax preparer? I don t want anything to sound offensive in this explanation. But, that is whole lot of cycles of action for very little benefit. Let s first declare that it is not arm s length. Whether the attorney owns...

Tax Law (Questions About Taxes): PLLC electing to be taxed as a C-Corp, PLLC, professional corporation tax rate
PLLC, professional corporation tax rate, 35%: If you file the 8832 and the IRS allows it, then your LLC would fall into the corporate tax structure and you would comply with all the rules. And Yes, you would have the privilege of paying the PC tax rate. Would this be a single member LLC or Multi-Member...

Tax Law (Questions About Taxes): Please help, long term capital gain, long term investment
long term capital gain, long term investment, long term capital gain rate: Nataraj, Thanks for your question. In the US, the long term capital gain rate for someone in your bracket would be 15%. The property must be held for more than a year to qualify. Otherwise, it would be taxed at your marginal rate, which would likely...

Tax Law (Questions About Taxes): Pregnant and Filing For Taxes, dependency exemption, mid nov
dependency exemption, mid nov, stancil: Shar, Thanks for your question. Unless there is an agreement or court order to the contrary,the dependency exemption goes to the parent where the child lived the longest during the year. There are other factors such as support, but residency is usually...

Tax Law (Questions About Taxes): PSC Tax rate 35%, PSC, PC
PSC, PC, tax: All Professional Corporations avoid the PSC classification. PSC stands for Personal Services Corporation. Professional Corporations are classified as PC. Both classes are taxed at the same 35% rate. I make the distinction not simply to be tedious. ...

Tax Law (Questions About Taxes): S.S. &earnings tax liability, www irs gov, stancil
www irs gov, stancil, thous: If you pay it back in a subsequent year, you will have to pay tax on the full amount in the year received. You would then follow the rules in Publication 17 regarding taking a credit or deduction for the amount repaid. The rules vary depending on the amount...

Tax Law (Questions About Taxes): Sales Tax, state income taxes, itemized deduction
state income taxes, itemized deduction, deductible amount: Scott, Thanks for your question. Registration and taxes are not deductible. However, if your father-in-law chooses to take sales tax instead of state income taxes as an itemized deduction, the sales tax paid on the vehicle would be an additional deductible...

Tax Law (Questions About Taxes): SEP IRA Inclusion, retirement plan, stancil
retirement plan, stancil, sep ira: Bruce, Thanks for your question. A SEP-IRA is probably your best option, as the contribution limits are significantly higher than for an IRA. Basically, it is set up for self-employed persons so there is no obligation to contractors who receive a 1099....

Tax Law (Questions About Taxes): Section 152 of Internal Revenue Code re: full time student requisites, internal revenue code, semester basis
internal revenue code, semester basis, learning disabilities: Kathy, I did not give you a full answer, as there are different definitions of full-time for different purposes. For purposes of the education credits, full time is defined by the IRS as what constitutes full time at the educational institution. Most...

Tax Law (Questions About Taxes): Can SMLLC elect to be taxed as S-corp, s corp, form 2553
s corp, form 2553, stancil: Timothy, Thanks for your question. Yes, a single member LLC may elect to be taxed as a S Corp. It would need to file Form 2553 on a timely basis to make the election. The LLC would have to pay a reasonable salary to the owner, assuming profitability....

Tax Law (Questions About Taxes): State of Residence, time resident, part time
time resident, part time: Hi, Each state has their own requirements for residency. But, in general, if you live there, have a driver s license and are registered to vote there, you are a resident or possibly a part time resident if you also lived in another state(s) part of the...

Tax Law (Questions About Taxes): State taxes of federal income
Dan, Your CPA is correct. For tax purposes, your tax home will be NM. The effect of this is that none of your living expenses in NM are deductible. You do not have to change your legal residency for tax purposes, although there may be other reasons...

Tax Law (Questions About Taxes): s-corporation taxes, s corporations, federal income tax
s corporations, federal income tax, corporation taxes: S corporations are flow-through entities that pass their income on to the shareholder. If an s corporation is showing a loss then they do not pay federal income tax on their income (since they don t have any positive income). Most states are the same way....

Tax Law (Questions About Taxes): selling house to sibs after close of probate, income tax returns, tax implications
income tax returns, tax implications, capital gain: Den: You will fill out schedule D. This is considered an investment. Once your 1/3 interest came into your possession the value was stepped up to the current value and your profit will be the difference between the stepped up value and what your inherited...

Tax Law (Questions About Taxes): selling of shares, LLC Stock, Articles of Incorporation
LLC Stock, Articles of Incorporation: This gets a little confusing. The State of California requires nothing in this section. BUT, if you intended to sell shares you d be subject to the SEC. The SEC won t allow you to actively Sell shares; you need a brokers license. You can allow people...

Tax Law (Questions About Taxes): short sale and rentals, loss carry forward
loss carry forward: Well, it did sell for less than you bought it for, that would be a loss. And the loss isn t bad. It does give you some tax deductions in the future (deductions are not something we should be out looking for and collecting, but if we end up with them they at...

Tax Law (Questions About Taxes): social security payback, irs publication 17, social security administration
irs publication 17, social security administration, www irs gov: Rod, Thanks for your question. The repayment alone is not likely to create an audit regardless of which approach you take. You should use the method that is the best for you. If you choose the deduction it is an itemized deduction. Page 90 of IRS...

Tax Law (Questions About Taxes): Which state gets my income tax?, trucking company, exact definition
trucking company, exact definition, stancil: James, Thanks for your question. From your description, you do not appear to owe MO taxes. Your case is strengthened by the fact that you paid taxes to AZ. I suggest responding to their notice with proof of AZ residency and proof that you paid...

Tax Law (Questions About Taxes): which state do i pay taxes on while working over sea, stancil, state taxes
stancil, state taxes, san diego ca: Alfred, Thanks for your question. You will normally owe taxes to your state of residence when you left the U. S. However state laws vary, so you should check with each state to see if 1) they allow the exemption amount as some states do not and 2) they...

Tax Law (Questions About Taxes): stock loss, stock loss, party transaction
stock loss, party transaction, stancil: Rod, Slightly different situation, same result. If you give him the stock, a sale has not occurred and you have nothing to report on your 1040. His basis would normally be a transferred basis from you. However, since it has declined in value, his basis...

Tax Law (Questions About Taxes): Tax Credits, homebuyer tax credit, widows pension
homebuyer tax credit, widows pension, principle residence: Hi, If the home you bought is your principal residence, you can claim the credit. Don t worry about Illinois. If you owned a previous home and lived in it for 5 years during the 8 year period, you can claim a credit of $6500. If you never owned a home...

Tax Law (Questions About Taxes): Tax Deduction on Travel expenses
Stephanie, Thanks for your question. I presume you are an independent contractor receiving a 1099. If this is the case, you can deduct your travel expenses if you qualify for, and have, a home office. If you are a W-2 employee, the travel is not...

Tax Law (Questions About Taxes): Tax deduction for Immunizations, unclean water, stancil
unclean water, stancil, mission trip: James, Thanks for your question. I was in the same situation this year, as I went on a mission trip to Ghana and had several hundred dollars in inoculations, etc. Unfortunately, you cannot deduct their cost as a charitable contribution. They would...

Tax Law (Questions About Taxes): Tax Exclusion for Independent Contractors Overseas, fide residence test, physical presence test
fide residence test, physical presence test, irs pub: Toni, Thanks for your question. If you do not meet the 330 day test (or the bona fide residence test) you cannot take the foreign earned income credit/exemption. The part-year exclusion applies when you meet the 330 day physical presence test, but...

Tax Law (Questions About Taxes): Tax litigation, tax litigation, tax case
tax litigation, tax case, sum of money: I don t know that there is a standard answer to this in the U.S. My answer is that it really depends upon the IRS or state agent who is working your case. In addition, they generally have to notify you with a couple of letters before they take immediate...

Tax Law (Questions About Taxes): Tax question regarding travel, stancil, tax question
stancil, tax question, personal choice: Asim, Thanks for your question. No the rent payments are not deductible. In IRS language, her tax home is her place of business, i.e. Connecticut. Therefore these costs are considered personal living expenses and not deductible. Her choice to come...

Tax Law (Questions About Taxes): Taxable Excess Per Diem, per diem, owners per diem
per diem, owners per diem, 1542: IRS Publication 1542 covers the CONUS. You d have to go to the GAO website to get rates for non-CONUS and foreign currency rates. For CONUS, there are 2 possible options: the High/Low method or the actual rates. Use one and stick with it throughout...

Tax Law (Questions About Taxes): Taxes, irs taxpayer advocate, first hope
irs taxpayer advocate, first hope, enrolled agent: Gary, Thanks for your question. I can tell you what NOT to do. Avoid these companies that advertise that they can get you a settlement with the IRS for cents on the dollar. Generally, they are scams who take large upfront fees and don t get you any...

Tax Law (Questions About Taxes): Taxes in another country, foreign earned income exclusion, expat tax
foreign earned income exclusion, expat tax, expat taxes: Hello, Because he is coming home early, he wont qualify for the foreign earned income exclusion, which would exempt him from paying taxes on the first $91,400 of income. See http://taxplannercpa.com/WP/category/foreign-earned-income-exclusion/ Hence,...

Tax Law (Questions About Taxes): Taxes deductible for HELOC, john thanks, qustion
john thanks, qustion, stancil: John Thanks for your question. If you borrow any amount in excess of the mortgage amount at purchase, the excess is home equity interest. Your interest deduction is limited to interest on $100K. This is true even if there was no mortgage at purchase....

Tax Law (Questions About Taxes): Taxes on Tips, self employment taxes, tip income
self employment taxes, tip income, gross pay: David, Thanks for your question. Tips are taxable income at the state and federal levels, and they are subject to self-employment rather than social security/Medicare. You will not be double taxed. Your employer has withheld for an reported your self-employment...

Tax Law (Questions About Taxes): TX resident, going to work in CA for 4-6 months, stancil, per diem
stancil, per diem, cpa: Scott, Thanks for your question. You will owe taxes to CA and will need to file as a non-resident, reporting only the income earned in CA. It will have no effect on your federal filing. The W-2 issue should not be a problem. You do not pay Texas...

Tax Law (Questions About Taxes): tax exemption for working oversea, higher hope, marginal rate
higher hope, marginal rate, stancil: Alfred, Thanks for your question. The first $91,400 would be exempt and the additional would be taxed at your marginal rate above $91,400. The rate would depend on your filing status but would be 25% or higher. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): tax question, dependency exemption, stancil
dependency exemption, stancil, tax question: Rick, Thanks for your question. If she lived in your household for the entire time she was alive in 2010, had under $3,650 in gross income, and you provided over half her support, you can claim a dependency exemption for her. Hope this helps. John...

Tax Law (Questions About Taxes): what is taxable in the US
For 2009, assuming you meeting the requirements for foreign earned income exclusion, the first $91,400 of wage income can be excluded. Mechanically, the wages go on the return in the normal place. However you attached Form 2555 which backs out the first $91,400...

Tax Law (Questions About Taxes): transfer of assets prior to sale of business
Dayna, Not much in terms of ways to reduce your tax liability from such a transaction. They will be treated as distribution to you at fair market value. Any difference in FMV and the tax basis of the assets is gain to the corporation. Hope this helps....

Tax Law (Questions About Taxes): What type of Entity?, Which business entity, s-corp owned by c-corp
Which business entity, s-corp owned by c-corp, c-corp own s-corp: I appreciate that you have done some research. There could be some limitations as to entity choices, but no limit that would be disadvantageous to you. A Real Corporation, sometimes misnamed a C-Corp cannot be a stockholder of an S-corp. That would disallow...

Tax Law (Questions About Taxes): Umreimbursed Job Expenses-Meals/Mileage
Hi, The days you drive back and forth to work rather than stay overnight are commuting and expenses are not deductible. If your temporary assignments cause you to stay away from home until they are completed, those expenses would be deductible. The deductible...

Tax Law (Questions About Taxes): unemployment, unemployment office, minimum wages
unemployment office, minimum wages, living allowance: Martha: Go to the nearest claims office an file a claim for unemployment. Then go to the nearest Federal Department of Labor office an file a complaint about you being paid less than minimum wages. Do not ask you employer (boss) if you can file, everyone...

Tax Law (Questions About Taxes): Volunteer Fire Department, volunteer fire department, stancil
volunteer fire department, stancil, exempt organization: Rachel, Thanks for your question. It depends. If it is a part of the local government, it does not file a return. If it is a separate organization, it would likely need to file. What it files and if it files depends on its status. If it is an IRS...

Tax Law (Questions About Taxes): windfall tax, windfall tax, long term capital gain
windfall tax, long term capital gain, marginal rate: Wayne, Thanks for your question. Most likely that would be classified as a short-term gain (unless you held it for over a year) and would be taxed as ordinary income. This means it would be taxed at your marginal rate, which can be between 10 and 35%...

Tax Law (Questions About Taxes): working overseas, foreign earned income, earned income credit
foreign earned income, earned income credit, physical presence: Ron, Thanks for your question. Sorry about the thank you note you received. I hit the wrong button. If you have a physical presence in a foreign country for 330 days in a 12-month period you are eligible for the foreign earned income credit/exclusion....

Tax Law (Questions About Taxes): working out of town, time is time, double time
time is time, double time, nephew: Cindy: The employer get to choose what his week is that is what day begins his week and what day ends his week. His week can begin on Monday then it must end on Sunday. When a worker works over 40 hours in that 7 day period all time must be over time....

Tax Law (Questions About Taxes): writing of my dispatching for husband, payroll taxes, withholding tables
payroll taxes, withholding tables, form 941: You would have to get an EIN (if you don t already have one) from the IRS. With each check you would have to withhold according to the withholding tables in Circular E, make regular deposits of payroll taxes (frequency depends on the amount), Submit Form...

Tax Law (Questions About Taxes): 1040 or 1040a, medical deductions, 1040a
medical deductions, 1040a, standard deduction: Hi, I would use form 1040. If you have enough to itemize your deductions, do so. Otherwise you can use the standard deduction. Soc Sec is not taxable in the state and could be taxable on the federal depending upon the amount of your other income. ...

Tax Law (Questions About Taxes): 1098-T Inconsistencies?, academic quarters, 1098t
academic quarters, 1098t, taxable income: Hi Magali, Scholarships and grants are not taxable income as long as they were paid to the school or used for qualified costs. Just because the timing does not match does not mean you have any taxable income to report. There is nothing that needs filed...

Tax Law (Questions About Taxes): 1099, 1099 employee, Common Law Employee
1099 employee, Common Law Employee: Since you are posing the questions, I assume you already have a sense that something is not right. Your sense is correct. Just from what I know, from what you wrote and from the IRS s perspective, the 1099 relationship is false. You would be deemed a Common...

Tax Law (Questions About Taxes): Funds Never Taken Posession Of, inner city teens, missionary activities
inner city teens, missionary activities, gang affiliation: These are not church expenditures and definitely not petty cash. They are expenditures made on behalf of the church but the church s records should not reflect the revenues or the expenditures. And they cannot get a statement from the church for those contributions....

Tax Law (Questions About Taxes): 1099-INT for deceased, income tax return, cash basis
income tax return, cash basis, decedent: Hi Ellen, If the interest is small enough then no 1041 needs to be filed that is correct. I would report on the beneficiary s return the exact amount of the 1099 in the beneficiary s name. This should solve the matching issue. Hope that helps...

Tax Law (Questions About Taxes): 1099-MISC, form 1099 misc, stancil
form 1099 misc, stancil, ray ray: Ray, Thanks for your question. A 1099-MISC is a document that someone would give you when you perform services for them, or you would give them when they perform services for you. The income from 1099 s (and other sources) would be reported on Schedule...

Tax Law (Questions About Taxes): 1099-MISC, irs gov, stancil
irs gov, stancil, tax preparers: Mike, You would probably have the most success looking for an online source. You could also contact the IRS for some forms from past years. A third option would be to see if any local bookkeepers or tax preparers have any old forms lying around. They...

Tax Law (Questions About Taxes): 1099 MISC box 7, local taxing authority, gross receipts tax
local taxing authority, gross receipts tax, 1099 misc: Rudy, Thanks for your question. That is a fairly common practice - to write the 1099 for the gross amount paid to the contractor. Their records are probably set up to reflect the full amount paid you with no breakdown for what it covered. I don t...

Tax Law (Questions About Taxes): 1099-Misc, travel reimbursements, mileage allowances
travel reimbursements, mileage allowances, 1099 misc forms: Chuck: An independent contractor has the ability to make a profit or suffer a loss based on their own action. However, where do the ones working for you suffer a loss. It appears they are guaranteed a profit regardless of what they do. You are paying...

Tax Law (Questions About Taxes): 1099-Misc for Contracted Speech Therapist, irs 1099 misc instructions, irs 1099 misc
irs 1099 misc instructions, irs 1099 misc, health care payments: yes. 1099 is required. corporations are not included in the exemption because the IRS said so. It is pretty much that simple. They can (and frequiently do) what they want and the rules are pretty clear. you can google IRS 1099 misc instructions, but...

Tax Law (Questions About Taxes): 1099-Misc question, 1099 misc instructions, professional basketball team
1099 misc instructions, professional basketball team, irs gov: yes I would think that you are safe because you paid the organization, not the individual - the rules dont require 1099 for not profit organizations. If you want to be safe, I d request a w9 with the id (you should have for all payables anyway) and include...

Tax Law (Questions About Taxes): 1099-Q and 1098-T, dependency exemption, stancil
dependency exemption, stancil, ssn: Starlyn, Thanks for your question. The 1098-T must be utilized by the party who takes the dependency exemption for your son - in this case it would you. The 1099-Q would be reported on the tax return for the person whose SSN is listed on the form....

Tax Law (Questions About Taxes): 1099-R, ira william, traditional ira
ira william, traditional ira, direct rollover: William, Thanks for your question. Box should show a code of G indicating a direct rollover. If not, you should contact the issuer for a corrected 1099-R. Report the distribution on line 16a and enter a zero on 16b. Hope this hleps. John...

Tax Law (Questions About Taxes): 1099's, irs gov efile, www irs gov efile
irs gov efile, www irs gov efile, contemporary art gallery: Hi Cathey, Here is where the IRS explains what needs to have a 1099 issued. http://www.irs.gov/efile/article/0,,id=98114,00.html I think your case would be treated very similar to a consignment sale. Consignment sales do not require a 1099 MISC to...

Tax Law (Questions About Taxes): 1099 for W-2 Employees, payroll service, car allowances
payroll service, car allowances, 1099s: Victoria, Absolutely not. Allowances paid to an emplolyee as a part of a non-accountable plan are taxable income that should be included on the W-2. It is not proper to issue a 1099 to an employee in most circumstances. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): 1099a after bankruptcy, 1099a form, cancellation of debt
1099a form, cancellation of debt, tax return: Hi Sean, This is cancellation of debt income. You should be able to exclude all of it from your income if you filed bankruptcy. There will be an extra form to file with your taxes. I recommend using a CPA to prepare this tax return. Hope that helps...

Tax Law (Questions About Taxes): 16 yr old income, self employment income, self employment tax
self employment income, self employment tax, irs limit: Sue, Thanks for your question. He does not have to file a return, assuming he received a W-2 and not a 1099. If he got a 1099, it is considered self-employment income and he must file a Schedule C and Schedule SE with his return and pay self-employment...

Tax Law (Questions About Taxes): 2008 First Time Homebuyer Credit Repayment, irs search, www irs gov
irs search, www irs gov, true answer: first. you need a new tax pro second, go TIGERS... (I grew up in Missery :) third, you are correct! the repayment is only required to the extent of gain and as you have no gain (you get to include roof in basis), you have no recapture. see: ...

Tax Law (Questions About Taxes): 2010 Form 1099A, form 1099a, chapter 7 bankruptcy
form 1099a, chapter 7 bankruptcy, debt cancellation: Tina, Thanks for your question. You will need to complete Form 982 and report the amount shown as income on line 21 of the 1040. Chapter 7 bankruptcy does not cancel out the tax on the debt cancellation income. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): 32 yr old adult son - dependent??, cell phone bills, head of household
cell phone bills, head of household, adult son: Pam, Thanks for your question. You can claim him as a dependent if you paid over half the cost of supporting him for the year and his gross income was under $3,650. If he is your dependent you can file head of household. Otherwise, you must file as...

Tax Law (Questions About Taxes): 401k hardship withdrawl, hardship withdrawal, stancil
hardship withdrawal, stancil, hardship withdrawl: Beth, Thanks for your question. Unfortunately, there is no exception to a hardship withdrawal. You will be subject to the 10% penalty. The code will be a Code 1, meaning early withdrawal no known exception. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): 673 form, tax exemption, Foreign income exclusion, expat tax
Foreign income exclusion, expat tax: He has to file extensions through October 2011 and report his earning in 2010 (2 months). By October 2011 he will meet the physical presence test and be able to exclude his foreign earnings. When he files his taxes for 2011, he will exclude his foreign earnings...

Tax Law (Questions About Taxes): Acquisition or Abandonment of Secured Property, chapter 11 bankruptcy, debt cancellation
chapter 11 bankruptcy, debt cancellation, partial exclusion: Carolyn, Thanks for your question. Since you had refinanced and taken money out you will have some debt cancellation income. Bankruptcy is a legal status that you choose to undertake. If your debts exceed your assets you can file bankruptcy. However,...

Tax Law (Questions About Taxes): Acquisition or Abandonment of Secured Property, partial exclusion, debt cancellation
partial exclusion, debt cancellation, poor economy: Carolyn, Thanks for your question. If the fair market value exceeds the amount owed, you do not have any debt cancellation income. Additionally, since you have lived in the house for 24 years, you would qualify for a full or partial exclusion based...

Tax Law (Questions About Taxes): Adoption Tax Credit, irs demands, adoption tax credit
irs demands, adoption tax credit, adoption credit: I recommend you do not amend. Show a supplemental calculation that illustrates and explains the amount of prior unused credit. If they want amended returns, you could file them upon demand. In dealing with the IRS, there is always a risk that they will...

Tax Law (Questions About Taxes): Alabama state income tax on money made over seas, foreign income
foreign income: Hello Sean, Alabama is one of the few states where a taxpayer can choose filing status as Married Filing Separately even if they filed Federal tax return as Married Filing Jointly. So, you can file as Married Filing Jointly on your Federal tax return...

Tax Law (Questions About Taxes): Allowences on W4, irs websites, pay stub
irs websites, pay stub, zero interest: personally, the way i like to ensure the w4 is right to where i want to be is to get one paycheck with the current elections and project the total tax due... and then adjust the w4 via box 6 (additioanl tax taken out). for example, you can reasonably project...

Tax Law (Questions About Taxes): Alternative to 501 c 3, irs code section, tax exempt status
irs code section, tax exempt status, compensation arrangements: Francine, Thanks for your question. IRS Code Section 408 deals with Individual Retirement Accounts; 409 deals with nonqualified deferred compensation arrangements. Churches do not have to file a tax return and they do not have to apply for 501(c)(3)...

Tax Law (Questions About Taxes): American Opportunity Credit, felony convictions, opportunity tax credit
felony convictions, opportunity tax credit, lifetime learning credit: Marina, Thanks for your question. His academic classification (Fr, So, Jr, or Sr.) is not a factor. The IRS looks at the number of years he has been enrolled. Since he has taken a credit four time, he is not eligible for the American Opportunity Tax...

Tax Law (Questions About Taxes): American Opportunity Tax Credit, opportunity tax credit, american opportunity
opportunity tax credit, american opportunity, turbo tax: actually you are getting the full benefit you can get a refund of 40% of the total credit in cash. and as you earned less then $3k, you owe no tax - so all you get is the 40% limit portion. if you are using turbo tax, for kicks.. up your w2 to 30,000...

Tax Law (Questions About Taxes): Audit, state board of accountancy, board of accountancy
state board of accountancy, board of accountancy, stancil: Christina, Thanks for your question. She can be held responsible for any penalty, but since you properly owed the tax and had use of the money during that time, she cannot be held liable for the tax and interest. If she refuses to pay the penalty, you...

Tax Law (Questions About Taxes): added to my mom's, mother lives, taxable gain
mother lives, taxable gain, stancil: JJ, Thanks for your question. Frankly that is not a good idea. As it stands now, you are a co-owner of the house, receiving your ownership by means of a gift. Since the house qualifies for her as her primary residence, if the house sells, she can avoid...

Tax Law (Questions About Taxes): address and head of household, irs audit, head of household
irs audit, head of household, stancil: Rob, Thanks for your question. The address would not normally be an issue, but you need to be able to prove that you paid more than half the cost of maintaining the household for the entire year. If you can t prove that, you would be shot down in the...

Tax Law (Questions About Taxes): adoption tax credit question (failed adoption), adoption tax credit, irs website
adoption tax credit, irs website, adoption baby: Rebekah, Thanks for your question. You can take a credit for the failed adoption, there are specific instructions for how to handle this. It s more complicated than this but basically treat it as an incomplete adoption, providing the info on the child...

Tax Law (Questions About Taxes): Babysitting claims, social security number, ss number
social security number, ss number, self employment taxes: Jon, Thanks for your question. Yes, the money is taxable and should be reported on her return. She will owe income tax and self-employment taxes on the profit. If she will not provide the SS number, indicate on the 2441 enter see attched statement...

Tax Law (Questions About Taxes): Business tax, responsible party, taxes
responsible party, taxes: The IRS has used this logic in the past: If you have signing authority on the bank account, and you chose to pay another bill instead of the taxes, then you are culpable, and responsible for the taxes. Can the Company pay the taxes? It might be painful,...

Tax Law (Questions About Taxes): bakery buisness, unit trust company, wholesale bakery
unit trust company, wholesale bakery, income tax filings: hi gst is either canada or EU - both of which I am less familiar with. same with a unitrust business structure. This is clearly not a usa/domestic operation. ??? why would you get a refund? you generally only get refunds when you pay in more then required....

Tax Law (Questions About Taxes): What business are they in?, 1099 employee
1099 employee: While nothing is absolute, your relationship to them (if you are getting commissions or affiliate fees) is as an Independent Contractor. They pay you a gross amount and you are required to pay your Social Security, Medicare, and withholdings, instead of as...

Tax Law (Questions About Taxes): business bad debt or capital loss?, self employment tax, debt losses
self employment tax, debt losses, passive losses: When it comes to the IRS you can always make an argument. Our first recommendation is to avoid the argument, and our fall back position is to be prepared to make a strong and accurate argument. Just to be exquisitely clear, loan and investment are not interchangeable...

Tax Law (Questions About Taxes): buyout of non-compete, yellow brick road, private question
yellow brick road, private question, several thousand dollars: What part of my answer is too complicated? REDUCE the amount realized and proceed Plus, I said email private question and I would take you all the way down the yellow brick road to the promised land - I just did not want to do so publicly Now you...

Tax Law (Questions About Taxes): C corporation/paid in capital versus loans from shareholders, loan or capital, stock in a corporation
loan or capital, stock in a corporation: The IRS would rather you consider your contribution as Capital instead of a Loan. And could reclassify it that way. You are correct, that in theory, A loan could be repaid to you without a tax event. Which is the very reason the IRS would rather it be consider...

Tax Law (Questions About Taxes): CA taxes for an ExPat, state tax obligations, federal tax return
state tax obligations, federal tax return, california residents: Hi Matt, The simple answer would be no. However, getting free from CA state tax obligations does not happen automatically. In most cases, expats are not required to pay state taxes if they do not have rental property left in those states. However, some...

Tax Law (Questions About Taxes): CA taxes for an ExPat, California Expat
California Expat: If you do not have State sourced income you should not have to pay state taxes. California makes it difficult to do the above because they will try to argue that your domicile is still in California and impose filing requirements - which in turn may result...

Tax Law (Questions About Taxes): California Taxes - Double taxation treaty with India, double taxation treaty, federal tax purposes
double taxation treaty, federal tax purposes, tax treaties: Hi Nick, This is true. Tax treaties only apply at the Federal level. As a resident of California, you pay state tax on all your income regardless of the source. Besides, there is no double taxation here. You paid one tax on your Indian income, and that tax...

Tax Law (Questions About Taxes): CC block 12a W2, Code cc
Code cc: Dear Mandy, This is a new code introduced by the IRS for tax year 2010. Your brother pays taxes on what is shown in Box 1. Code CC is for his employer to get exemptions from payroll taxes for hire back. Please do not worry - there is no error and your...

Tax Law (Questions About Taxes): Church Fed'l Tax Filing Requirements, tax law questions, clergy tax
tax law questions, clergy tax, payroll service: To cite code sections takes more time than I can devote to this volunteer activity. Howver, if you would refer to Richard Hammar s Church and Clergy Tax Guide, you can find the reference and a detailed explaination of this and just about anything you would...

Tax Law (Questions About Taxes): Church tax question, outreach events, ministry trips
outreach events, ministry trips, office meetings: Michael, Thanks for your question. My response is conditioned on one factor. If the home office arrangement is for the convenience of the employee then the first and last trips of the day are considered commuting and not deductible. In other words,...

Tax Law (Questions About Taxes): Not Claiming Child Care Credit, tax cheat
tax cheat: Of course it is not true. Your childcare provider is a simple tax cheat and should be reported to the IRS. Not only is she paying no taxes, she is making you pay more in taxes. That is insult to injury. She has no tax professional. Of that you can be sure...

Tax Law (Questions About Taxes): Claiming Dependants, head of household, stancil
head of household, stancil, girl friend: Tim, Thanks for your question. You can claim her as a dependent if you meet all of the criteria: 1. Her gross income is under $3,650. 2. You provided over half her support. 3. She lived in your household for the entire year. Hope this helps....

Tax Law (Questions About Taxes): Clarification of when to issue 1099-MISC forms, small construction company, 1099 misc forms
small construction company, 1099 misc forms, sole proprietorships: Mike, Thanks for your question. For 2011 and prior years, you issue a 1099 to any unincorporated business or individual to which you pay them $600 or more during the year. Stay alert however. Current law is going to require you to issue a 1099 to...

Tax Law (Questions About Taxes): College student - taxes, research stipend, vp finance
research stipend, vp finance, research seminars: research stipend should be taxable if you had to perform services in order to receive. did you host research seminars, tutor, or perform other misc activity - in other words, if you took the money and ran, would you still get the payment? if answer is no....

Tax Law (Questions About Taxes): Commuting mileage follow up question, irs publication 17, stancil
irs publication 17, stancil, previous question: Christian, Thanks for your question. I don t recall the details of the question you cite. However, driving from home to a regular place of work is commuting and not deductible regardless of the distance. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Company Vehicle, irs website, trip lease
irs website, trip lease, google: here is the scooop. quick and dirty and very straight forward. personal use is taxable. period. if an employee takes a car home for commuting purposes... even if they are on call for use over the weekend, they have to pick up income in their...

Tax Law (Questions About Taxes): Confused on Taxes!, car insurance policy, sm bus
car insurance policy, sm bus, license insurance: SA, Thanks for your question. Your primary residence for tax purposes is where you spend the most time. I will assume this is CA. Additionally, to be a CA resident you must maintain your driver s license, insurance, etc. in CA. However, if you spend...

Tax Law (Questions About Taxes): Consulting and taxes, self employment income, gross income
self employment income, gross income, tax burden: Hi, You should make quarterly estimated payments on 4/15, 6/15, 9/15 and 1/15 of the folliowing year. You will have to pay self emploment tax (social seclurity and medicare) in addition to income tax. The calculation for se tax is gross income less...

Tax Law (Questions About Taxes): Contractor Taxes, income tax bracket, quarterly estimates
income tax bracket, quarterly estimates, state income tax: Hi pocketsofpeace, You will pay these taxes my making quarterly estimates to the IRS and your state. That is the easy part. Figuring how much can be a little more difficult without looking at your entire tax situation. You will owe 15.3% in self employment...

Tax Law (Questions About Taxes): Convention reimbursement, stancil, attendee
stancil, attendee, taxable income: Marsha, Thanks for your question. If the pastor s wife was at the convention as a representative of the church and was a registered attendee at the convention, the $500 is not taxable to the pastor. However, if she merely accompanied him and did not...

Tax Law (Questions About Taxes): Corporate Sponsorship, other income 1099
other income 1099: Well, they are not gifts. Gift would be with no strings attached, AND, the corporation would have to pay taxes on the value of the gift of anything above deminimus . They are income, they just aren t dollars. But they do have a dollar value, which is what...

Tax Law (Questions About Taxes): cancer insurance, cancer insurance, cancer policy
cancer insurance, cancer policy, accident plans: Hi James, Sorry to hear you had to use it. Hope all is well. Payments received under health and accident plans generally are not taxable unless they were paid under an employer-maintained plan or with pre-tax dollars. So the real key is how were the...

Tax Law (Questions About Taxes): capital gain tax rate in puerto rico, capital gain tax rate, capital gain tax
capital gain tax rate, capital gain tax, minor exceptions: i BELIEVE that the PR taxes follow the US code with only a very few minor exceptions... that said, it would be the same treatment as in the us - but here is the rub, you say gains working... usually the two are separate and distinctly different....

Tax Law (Questions About Taxes): capital gains, happy new year, capital gain
happy new year, capital gain, capital gains: Hi, If you lived in the home you are sellling as your main home for 2 years during the 5 years preceding the sale date, you can exclude $250,000 of capital gain ($500,000 if filing a joint return). If not, there is no way to exclude the capital gains tax....

Tax Law (Questions About Taxes): capital gains, principle residence, capital gains
principle residence, capital gains, taxpayers: Hi Doug- First of all, congratulations on the sale of your home for a profit! I m sure the moment is a tad bittersweet, but hopefully you have some good plans for that money! If you were living in that home for all 20 years as your primary residence,...

Tax Law (Questions About Taxes): car registration, deductible amount, stancil
deductible amount, stancil, car registration: Janie, Thanks for your question. If you itemize deductions, you can deduct the amount of tax paid on your car on Schedule A. The deductible amount is the tax paid on the value of the car - you cannot deduct the flat-rate registration or license fee....

Tax Law (Questions About Taxes): Can we claim our daughter?, ss card, stancil
ss card, stancil, live birth: Tiffany, Thanks for your question. Please accept my sympathies. Yes, you are entitled to a full exemption for your daughter, as it was a live birth. If you are using software, indicate that she lived with you the entire year. Hope this helps....

Tax Law (Questions About Taxes): claim five year old tax, form 1040a, wheeler accident
form 1040a, wheeler accident, legal custody: so sorry for your situation. yes. as long as your father (child s grandfather) provide more then half the child s care and expenses. he can take him as a dependent. if you help your father pay by paying some money - that is a gift from you to dad... he...

Tax Law (Questions About Taxes): Can I claim Schedule K-1 Losses from Prior Years?, form 1040x, form 1065
form 1040x, form 1065, stancil: Tyler, Thanks for your question. No, you must report each year s income and deductions in the year in which it happened. You will need to file an amended return for 2009 to deduct the losses. Form 1040X. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): claiming attorney fees, discrimination suit, deductible business
discrimination suit, deductible business, misappropriation of funds: Sue, Thanks for your question. Two aspects of the definition. First, if you have a business it is a deductible business expense for any business-related attorney fees. Second, on an individual level, it means that the fees were incurred in relation...

Tax Law (Questions About Taxes): claiming children on income taxes, divorce decree, dependency exemption
divorce decree, dependency exemption, custody agreement: Debra, Thanks for your question. In order to claim a dependency exemption for a child, the child must live with you for more than half the year. However, if the divorce decree gives it to the other parent, or if the custodial parent gives up the right...

Tax Law (Questions About Taxes): claiming a parent, stancil, gross income
stancil, gross income, cpa: Ardis, Thanks for your question. An exemption cannot be divided between two or more parties in a given year. It must be claimed by the taxpayer who meets the following criteria. Both must be met. 1. You must have provided over half the support for...

Tax Law (Questions About Taxes): How to correct taxes withheld for wrong state?, state tax withholding, ira beneficiary
state tax withholding, ira beneficiary, ira distribution: Hi Joyce, If you make the payment to CA by Jan 15th you should avoid penalties and interest. This is a little more complicated as you will need to file a form that annualizes your income in order to avoid the penalties and interest. I would highly recommend...

Tax Law (Questions About Taxes): cost basis for lendingclub note, cost basis, cash basis
cost basis, cash basis, tax payer: Hi Jason, Your cost basis will always be what you pay for it no matter what the value is. In your example your cost basis is $20 and sale is $15, causing a loss of $5. You are a cash basis tax payer so also think of it as cash in and cash out. If you...

Tax Law (Questions About Taxes): cp 2000 notice, CP-2000, Innocent Spouse
CP-2000, Innocent Spouse, Installment Agreement: A CP-2000 notice is just a proposed assessment. No tax has been assessed and it will be four to five months before it is. So if you file in the next few months, that proposed tax is not going to affect your refund. Next year may be a different story. If...

Tax Law (Questions About Taxes): DEPENDENT, irs audit, deceased mother
irs audit, deceased mother, sole provider: Dale: Since she had an IRA, I assumed she had worked at one time, drew social security, had medicare, and other benefits, such as retirement. My experience with tax payers is more educational and usually the taxpayers do not calculate their contribution...

Tax Law (Questions About Taxes): Deduction of HELOC on rental property, irs publication 535, www irs gov
irs publication 535, www irs gov, property question: Sorry, I misread your time line. Since it does have the rental as security for the home, I would treat it as rental interest. IRS Publication 535 states: Generally, mortgage interest paid or accrued on real estate you own legally or equitably is deductible....

Tax Law (Questions About Taxes): Deductions & claims, doing business at home, adjusted gross income
doing business at home, adjusted gross income, daily basis: Hi, They cannot take a home office deduction. If you pay any of the home expenses, such as rent or utilities or part of the phone bill, you can take a deduction. You can deduct the mileage for business trips. If you have medical expenses they are an...

Tax Law (Questions About Taxes): Deductions and depreciation for first year of rental home, several thousand dollars, dave thanks
several thousand dollars, dave thanks, stancil: Dave, Thanks for your question. Any expenses incurred while you were still living in the house are not deductible. However, if they add to the value of the house they can be included in the fair market value as of the date it becomes a rental. I would...

Tax Law (Questions About Taxes): Default Promissory Note, promissory note, someway
promissory note, someway, melinda: Hi Melinda, A couple things I am going to assume and if they are different let me know and I will see if it changes the answer. You being a cash based taxpayer should claim the income from the buyout each year as you received the money. If this is true...

Tax Law (Questions About Taxes): Delinquent tax return filing, delinquent tax return, social security number
delinquent tax return, social security number, letter answer: You seem to think you have all the answers Resident wife with investments outside the USA (and obviously NOT reporting any income) and the fact the IRS has connected the obvious dots.... And you remain indignant that you think ignore the IRS letter ...

Tax Law (Questions About Taxes): Demolition of residentila rental property, depreciation expense, form 4797
depreciation expense, form 4797, john thanks: John, Thanks for your question. The loss would be reported on Form 4797 and would be the current basis of the home. Since you would still have the land, it would not be affected by this action. The actual cost of demolition cannot be currently...

Tax Law (Questions About Taxes): Per Diem, military meals, menu id
military meals, menu id, stancil: Michael, Thanks for your question. International per diem rates can be found at http://aoprals.state.gov/content.asp?content_id=184&menu_id=78. I would point out that you can only deduct a per diem for meals. Your deduction for lodging is limited...

Tax Law (Questions About Taxes): debt cancellation, www irs gov, 1099c
www irs gov, 1099c, debt cancellation: yes they will (should) send you a 1099c how you report it depends if you have other assets or if you are insolvent. http://www.irs.gov/pub/irs-pdf/f1099c.pdf is the form try reading http://www.irs.gov/publications/p4681/ch01.html pay particular...

Tax Law (Questions About Taxes): Can I deduct interest I pay as a a result of promossory note?, stancil, interest value
stancil, interest value, party transaction: That is correct. The note should be sufficient. However, since it is a related party transaction, the IRS may look to see if payments (including interest) are being paid as specified. Also, they could look to see if your father is reporting the interest...

Tax Law (Questions About Taxes): dependent, irs gov, compliance publication
irs gov, compliance publication, having twins: hi congrats on your new kids... so let me get this right, you are having twins and you are going to separate them on day one? can I ask the really stupid question and ask why you dont have dad take care of one of the other children??? especially...

Tax Law (Questions About Taxes): Do I have to take depreciation on a commercial property?, time mary, stancil
time mary, stancil, mary mary: Mary, Thanks for your question. Yes, you must take depreciation. If you sell the property, the IRS reduces your basis for depreciation allowed or allowable. However, the situation is not as bleak as you seem to paint. When you sell the property...

Tax Law (Questions About Taxes): Per-diem, form 2106, government rate
form 2106, government rate, perdiem: Mike: Do you know how PER DIEM works? Do you know that when your employers pays you per diem that your employer is shifting the requirement for accounting for your expenses from him, the employer, to you the employee? The end result require you to maintain...

Tax Law (Questions About Taxes): per-diem, tax accountant, renting apartments
tax accountant, renting apartments, s corp: Hi John, You have quite a lot going on here. Let me give you a excerpt form the IRS and a recent court case addressing some of these issues plus I will give you my thoughts. You will see in these two things below that you can deduct the expenses up...

Tax Law (Questions About Taxes): Education reimbursements, rate job, hi mary
rate job, hi mary, worth the risk: Ah- I see. Generally not. Which is why I didn t even consider this loophole in my answer. There are a couple of court cases in which employees tried to claim that exemption and lost. Best to include it in taxable income. I don t think it s worth the risk....

Tax Law (Questions About Taxes): EIC, gross income test, www irs gov
gross income test, www irs gov, wage earnings: If it is on a W-2 listed as wages it would qualify. I will tell you that small amount will not result in much refund just so you know. http://www.irs.gov/publications/p501/index.html This is the publication, about mid way down you will see Exemptions...

Tax Law (Questions About Taxes): Employee Mileage deduction, mileage deduction, wear and tear
mileage deduction, wear and tear, amount of money: Hi Matt, You can take either mileage or gas, wear and tear, and depreciation. You would figure both deductions and reduce them by the amount of money put on the company credit card. This deduction is on the 2106 and will be limited. Hope that helps...

Tax Law (Questions About Taxes): Employer provided tuition assistance, education credit
education credit: Hello Tim, To calculate the basis for hope/lifetime learning tax credit, you deduct all reimbursed amount. It does not matter whether the reimbursement was made on a pre- or after-tax basis. After all, you will not pay tax for the second time on the reimbursement...

Tax Law (Questions About Taxes): Estate Taxes, personal income taxes, income tax return
personal income taxes, income tax return, household items: Louise, Thanks for your question. If the property was still in the name of the estate and not you as individuals, you will need to file a 1041. If it was in your names, you do not need an estate income tax return. If you file a 1041, any losses and...

Tax Law (Questions About Taxes): Extra Income, federal income taxes, college graduation
federal income taxes, college graduation, federal returns: Hi, Yes you should report all your extra income. The babysitting money would be reported on Schedule C EZ. The book sales on Schedule D. You ll need to know what you paid for them and the dates of sale and purchase. I would file part year residency...

Tax Law (Questions About Taxes): earned income credit, earned income credit, child hope
earned income credit, child hope, stancil: Stephanie, Thanks for your question. In order to claim the EIC the child must meet the relationship, age. and residency tests. The residency test requires that the child live with you more than half the year. This requirement precludes more than one...

Tax Law (Questions About Taxes): eic credit, self employment income, stancil
self employment income, stancil, ssd: William, If SSD is your only source of income you cannot ge the earned income credit as you do not have any earned income. Earned income is salary or wages (or self-employment income) that you get for working. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): esop pay out, normal distributions, accounting fees
normal distributions, accounting fees, esop: Hi Blaine- Let me get this straight- you still work for the company? As in, the company that bought the old company? Hm. That does make things a little more complicated. But you DO have rights here. You are entitled to a plan summary and statements...

Tax Law (Questions About Taxes): exemption, time college student, full time job
time college student, full time job, dependency exemption: Bonnie, Thanks for your question. Probably not. He must be a full time college student and you must provide over half his support. Additionally, he must live with you over half the year. Normally, time away at college counts as living with you but...

Tax Law (Questions About Taxes): exemptions, dependency exemption, stancil
dependency exemption, stancil, gross income: Debbie, Thanks for your question. In order to take a dependency exemption for the girlfriend and child, they must have lived in his household the entire year, had less than $3,650 in gross income,and he must have provided over half their support. ...

Tax Law (Questions About Taxes): Federal Tax 2010, unemployment claim, unemployment compensation
unemployment claim, unemployment compensation, 1099 forms: Ray, Thanks for your question. Not to be evasive, but it depends. Unemployment is taxable at the federal level and would be taxed at your marginal rate, which can be between 10 and 35%. Social security may or may not be taxable depending on your...

Tax Law (Questions About Taxes): File self employment taxes I made while overseas, earned income exclusion, self employment income
earned income exclusion, self employment income, self employment tax: Heather, You would have to complete Schedule C to report your self-employment income. You report the income and deduct any expenses associated with the business on this form. You will use Schedule SE to report the self-employment tax on your profits....

Tax Law (Questions About Taxes): Filing an addendum, stancil, box c
stancil, box c, h r block: Anthony, You can file an amended return, 1040X. It is not referred to as an addendum. Get a copy of the 1040X and complete Box A with your new filing status, explain the reason in Box C, then show the correct amounts for your tax return on lines 1-31...

Tax Law (Questions About Taxes): Filing a return for untaxed wages, self employment taxes, gross amount
self employment taxes, gross amount, best of luck: Hi Melissa- You ll need to wait for your tax forms to be able to file. Yesterday was the deadline, but, generally, small businesses don t give them out until the end of February (when they re required to be filed with the IRS.) If no taxes were taken...

Tax Law (Questions About Taxes): Final 1041, cpa tax, engagement letter
cpa tax, engagement letter, tax filings: I have a friend who read a flight manual. Should I let them fly my. Plane ? First Review the engagement letter with the CPA If the final rerTurn is not final. He should file at least send in a letter But yes no harm no foul on filing another...

Tax Law (Questions About Taxes): First Time Home buyers Credit, irs rules, time home buyers
irs rules, time home buyers, first time home buyers: Johna, Thanks for your question. That is not a concern. Temporary absences due to work do not count against you. Under IRS rules you have not changed your tax home unless he is on an assignment of more than 12 months. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Foreign Earned Income Exclusion, foreign earned income exclusion, military
foreign earned income exclusion, military, physical presence test: Ms. I would unfortunately have to look at his exact travel dates to understand why you are having issues meeting the physical presence test. The best advice I could give you is to seek a qualified practitioner to help you with your tax returns this year....

Tax Law (Questions About Taxes): Foreign earned exclusion, Foreign income exclusion, expat tax
Foreign income exclusion, expat tax: Dear Theodore, Yes, after 5 years you should be able to claim the previously revoked exclusion. If you wish to change your option for exclusion earlier, that also can be done by requesting a ruling from IRS. There can be a number of reasons why Turbotax...

Tax Law (Questions About Taxes): Foreign income exclusion, earned income exclusion, foreign earned income exclusion
earned income exclusion, foreign earned income exclusion, self employment income: Michael, Thanks for your question. The foreign earned income exclusion for 2010 is $91,500; for 2011 it is $92,900. It applies only to income tax, you would still owe self-employment taxes on your profit. I would add that most states do not recognized...

Tax Law (Questions About Taxes): Foreign pension, Greece tax treaty, totalization
Greece tax treaty, totalization, foreign tax credit: Yvon, You will not be taxed on your Greek Pension in the US, nor will you be taxed on your US pension in Greece, thanks to the US/Greece tax treaty. You are correct that neither of these qualify for the foreign earned income exclusion - but I would have...

Tax Law (Questions About Taxes): Form 1099 (rev. 9-07), form 1099, mike thanks
form 1099, mike thanks, stancil: Mike, Thanks for your question. If you look closely at the form, you should see it indicated which type of 1099 it is. I can t tell you which one is the corret form as I do not know what type of income you received in order for the company to generate...

Tax Law (Questions About Taxes): Form 8917 - Tuition & Fees Deduction, scholarships grants, stancil
scholarships grants, stancil, pocket expenses: Robert, Thanks for your question. You probably do not have a deduction. You should get a 1098-T from the college indicating the amount of tuition and fees that were paid or billed and the amount of scholarships/grants that were credited to the student...

Tax Law (Questions About Taxes): Form4361, self employment tax, ordained ministry
self employment tax, ordained ministry, stancil: Sharon, Thanks for your question. No, he does not qualify as the rules state that the election must be made by the second year in which he has ministerial earning of $400 or more. Since he has been in the ministry for five years, he has passed the time...

Tax Law (Questions About Taxes): Freelance photographer for local paper as second job., self employment tax, income tax rates
self employment tax, income tax rates, self employment taxes: Sergio, You will report these earnings on Schedule C, where you can deduct any expenses incurred in earing the money - supplies, depreciation of equipment, travel, etc. Your net income from Schedule C will be added to your other income to determine your...

Tax Law (Questions About Taxes): 1099's, irs instructions, 1099 misc
Tax Law (Questions About Taxes): 1099's, irs instructions, 1099 misc, consigner

Tax Law (Questions About Taxes): cost basis for lendingclub note, cost basis, capital gain
Tax Law (Questions About Taxes): cost basis for lendingclub note, cost basis, capital gain, principal and interest

Tax Law (Questions About Taxes): Return Sign-On Bonus, gross pay, bonus
Tax Law (Questions About Taxes): Return Sign-On Bonus, gross pay, bonus

Tax Law (Questions About Taxes): over seas taxes, citizenship
Tax Law (Questions About Taxes): over seas taxes, citizenship

Tax Law (Questions About Taxes): fed. tax, marriage settlement, marital assets
marriage settlement, marital assets, divorce papers: No, there is a distinction for tax purposes between a marriage settlement and alimony. Alimony can be deducted and not payments for her share of the house because that is the way the law is written. The marriage settlement is basically a dividing of the marital...

Tax Law (Questions About Taxes): federal income tax return, income tax return, irs office
income tax return, irs office, social security number: more concerned about paying your rightful debt... but one way to avoid having refunds attached is to lower the amount taken out of each paycheck. if you owe money each april 15, it is hard to have refunds garnished. no ? Unfortunately, this does not help...

Tax Law (Questions About Taxes): No federal taxes witheld, head of household, withholding allowances
head of household, withholding allowances, filing head of household: Jayme, Thanks for your question. Nothing may have been taken out because you claimed a large number of withholding allowances on your W-4. If this is not the case, it is likely that the church made a mistake in your withholding. I would add that...

Tax Law (Questions About Taxes): Can we file joint or separate, stancil, cpa
stancil, cpa, earnings: Jeff, Thanks for your question. You can file a federal return jointly - state does not matter. You will need to file as a part year resident in MD and in PA. You can file jointly for both states. If this situation continues next year you will...

Tax Law (Questions About Taxes): can i file taxes?, playing chess, zero return
playing chess, zero return, incapacity: well. we have no idea what your circumstances are .. so no clue. but if you let us know what is your circumstances, we d be more then happy to help. about the only thing I can think of is are you stuck in the Chilean mine 2 miles under ground and out...

Tax Law (Questions About Taxes): filing children, dependency exemption, child hope
dependency exemption, child hope, childsupport: Karen, Thanks for your question. No. You are only entitled to a dependency exemption if you meet all the criteria. One of the criteria is that the child must live with you more than half the year. A second criteria is that you provide over half the...

Tax Law (Questions About Taxes): filing exempt, irs form w4, irish citizen
irs form w4, irish citizen, foreign spouse: Hello Liane, Having a foreign spouse and children allows you to file as head of household. This is an advantageous filing status (compared to married filing separately), which will give you a number of tax credits exceeding your tax liability. You can...

Tax Law (Questions About Taxes): form 1099-B, charles schwabb, employer stock
charles schwabb, employer stock, selling stocks: sounds like you have employer stock? it is the only reason why you would get it in your w2. therefore, we need to know what the option price was (or restricted stock, etc) you likely received 5,125 but you paid $3850 for the option strike... ...

Tax Law (Questions About Taxes): I am a full time over the road truck driver, road truck drivers, adjusted gross income
road truck drivers, adjusted gross income, miscellaneous itemized deductions: Ray, Thanks for your question. The only standard deduction is the per diem meal allowance that you are allowed. It varies depending on your location for a particular day. If you are self-employed it is deductible on Schedule C, along with any other...

Tax Law (Questions About Taxes): Georgia State taxes for part time non resident, ira withdrawals, ira distributions
ira withdrawals, ira distributions, speedy reply: Actually, I did not directly address that. They do, but they only tax income that is GA based. Your retirement income is NOT GA based, therefore not subject to GA for a non-resident. Sorry for any confusion. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Gift Tax Reporting, irs guidelines, tax areas
irs guidelines, tax areas, stancil: Roger, Thanks for your question. Filing a joint tax return has nothing to do with it as gift taxes and income tax are two totally different tax areas. Under the concept of gift splitting, a married couple can treat a gift as coming half from each...

Tax Law (Questions About Taxes): Gift tax, tax consequences, personal check
tax consequences, personal check, mother in law: Hi Bella, What a wonderful wedding gift. There is nothing that you need to report or pay tax on. Your mother in law will need to file a gift tax return, but no tax will probably be due on her end either. Moving the money to their joint account does...

Tax Law (Questions About Taxes): Gift tax or interest income, stancil, interest income
stancil, interest income, financial institution: Delana, Thanks for your question. Although it would not make any difference on the bottom line, it is probably not correct. They should give you a 1099-MISC and it be reported as other income on line 21. However, if it is a financial institution...

Tax Law (Questions About Taxes): Gifting, tax ramifications, 1 million dollars
tax ramifications, 1 million dollars, gold coins: Hi Charles, You actually have a lot of planning that needs taken into consideration. It might be easier to answer all the issues with a phone call. Feel free to call my office at 614-755-2727. I will try to point out a couple things. First, you are...

Tax Law (Questions About Taxes): Gifting of Precious Metal Bullion, silver bullion coins, inheritance tax purposes
silver bullion coins, inheritance tax purposes, safe deposit box: My thoughts were if you were trying to gift before you passed you would want to have the bullion in the possession of the people you gifted to not in your safe deposit box. Basically saying if you claimed to have gifted it to your relative, but it was still...

Tax Law (Questions About Taxes): Guest speakers and singers, guest speakers, stancil
guest speakers, stancil, cpa: Robert, Thanks for your question. The 1099 should be issued for the amount given to the speaker or singer. This would include any offerings for them. Any offerings should be administered through the church. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): general tax question, head of household, education loans
head of household, education loans, tax question: generally yes. on both counts. depends upon how much you spent and how much you got grants/scholarships. assuming you paid more then you got (loans count as paid now) you will get larger refund. the 1098 is not due to be mailed until jan 31. if you...

Tax Law (Questions About Taxes): gift tax, tax liabilities, tax liability
tax liabilities, tax liability, gift tax return: Hi Danny, I can t really give you my recommendation without a lot more information. I will try to answer some of the questions for you. There is no tax liability for gifting her estate unless it is over $1 million. She can not sell and forgive the...

Tax Law (Questions About Taxes): grandma is babysitting, child care tax credit, household employee
child care tax credit, household employee, lots of trouble: Phil, Thanks for your question. In order for your daughter to claim the fuel reimbursement as a child care tax credit, your wife needs to report the income on Schedule C. Just report it as income, then take a deduction for the mileage and you should...

Tax Law (Questions About Taxes): gratitious gifts vs. wages, senior health center, home health aide
senior health center, home health aide, money situation: Audrey: You are correct. Someone need to go to the local law enforcement agency and file a complaint. The one who is a guardian can not enrich themselves from the funds of the one they are in charge of. The one who is paid to care for another is an employee...

Tax Law (Questions About Taxes): Handling taxes on rental property in another state, state income taxes, stancil
state income taxes, stancil, rental house: Drew, Thanks for your question. Once the house is ready to be rented you can report income and deduct expenses on Schedule E of your federal return. Since you are a resident of MD, you are subject to tax on all your income, so it should also be reported...

Tax Law (Questions About Taxes): Head of Household, head of household, dependency exemption
head of household, dependency exemption, education credit: Alejandro, Thanks for your question. Since you apparently did not provide the cost of maintaining a household for the entire year, you cannot file as head of household. You should be eligible for some education credit amounts. I can t address the...

Tax Law (Questions About Taxes): Head of Houshold, irs rules, head of household
irs rules, head of household, head of houshold: Kathy, Under IRS rules, if you and your spouse have not lived together at any time during the last six months of the year, you are considered unmarried and can file as head of household if you qualify. You meet this criteria. However, you may not qualify...

Tax Law (Questions About Taxes): Health/Pension, health insurance plan, helth insurance
health insurance plan, helth insurance, medicare tax: Gary, Thanks for your question. Since you are a more than 2% owner of the S Corp, your helth insurance benefits paid by the corporation are taxable income to you, included in box 1 of the W-2. However, they are not subject to social security/Medicare...

Tax Law (Questions About Taxes): Home in two states, stancil, florida resident
stancil, florida resident, paying taxes: Scott, Thanks for your question. It is not so much a matter of time, but what you do in IL. Since you work at an internet business, you are subject to tax in the state(s) in which you are working. This means, that as a Florida resident you would owe...

Tax Law (Questions About Taxes): Housing Expense on Assignment, renting a room, miles from my home
renting a room, miles from my home, lodging expenses: George, Thanks for your question. It depends on the duration of the assignment. If it is for an indefinite period or for more than a year, your tax home has changed to your new location and expenses incurred are not deductible. If the assignment...

Tax Law (Questions About Taxes): Husband lives in FL, works in NYC, corporate apartment, tax authorities
corporate apartment, tax authorities, state return: Linda, Thanks for your question. He owes NY state and city taxes because he is has earned income in NY. When you work in a location you normally owe taxes to that state/city even if it is not your residence. He will need to file a non-resident NY State...

Tax Law (Questions About Taxes): head of household, head of household, stancil
head of household, stancil, hi john: Ed, Thanks for your question. If they lived with her from the time they were born through the end of the year and if she provides over half their support she can claim them as dependents. If she can claim them as dependents, and if she provides over...

Tax Law (Questions About Taxes): head of household, head of household status, irs publications
head of household status, irs publications, head of household: from publication 501. it is pretty clear. she did not live with spouse. you are going to have difficulty with paying more then half costs usually. not one night shack job here and there. that said, ask the seasonal preparer for a citation if they...

Tax Law (Questions About Taxes): Incorporating Rental Properties, rental property, taxes
rental property, taxes: Your personal Income level is too high. You are experiencing the phantom taxes of Phase Out and AMT. the S-corp does not alleviate any of that tax burden. It is a pass-through entity, It passes all the tax liability to you personally and is accounted for and...

Tax Law (Questions About Taxes): Inheritance of foreign property, perspective residents, income tax return
perspective residents, income tax return, property inheritance: from a US perspective... residents (and citizens) have to report income from all sources wherever earned. However, that said, inheritance is not income to US resident or citizen. therefore, the transfer of the cash to the us is not income. even...

Tax Law (Questions About Taxes): Inherited 2004, rehabed 2009, rented 2010, rehabbing, stancil
rehabbing, stancil, fmv: Donna, Thanks for your question. The costs of rehabbing the home must be capitalized and added to your cost basis in the house. You would then depreciate the house based on the FMV plus the cost of your improvements to the house. Fair market value...

Tax Law (Questions About Taxes): Inherited house sold in 2010, federal tax purposes, capital gains taxes
federal tax purposes, capital gains taxes, approximate values: Julie, Thanks for your question. It does not matter where the house is located. For federal tax purposes, the laws are the same. If you owned the house and lived in it for 24 of the prior 60 months, you could exclude up to $250,000 ($500,000 married filing...

Tax Law (Questions About Taxes): Inherited IRA beneficiary, ira beneficiary, lump sum distributions
ira beneficiary, lump sum distributions, conduit ira: Hi Emily- Unfortunately, because the account was a Traditional IRA, you don t qualify to use for 4972. That Form is only for distributions from qualified plans (provided by employers.) On the bright side, form 4972 doesn t usually reduce the tax by much...

Tax Law (Questions About Taxes): Injured Spouse Form, injured spouse form, form 8379
injured spouse form, form 8379, tax debts: Kristin, Thanks for your question. If you file a joint return, your portion of the refund or credit can be used to satisfy your husband s tax debts. You can file separately or your can file a joint return along with Form 8379 (Injured Spouse) and...

Tax Law (Questions About Taxes): International Student, personal tax return, form i 485
personal tax return, form i 485, social security number: Jorge, Thanks for your question. If you do not have a social security number you cannot file or be a dependent on a U. S. personal tax return. If you obtain a social security number you would have to file as married, either joint with your wife or...

Tax Law (Questions About Taxes): IRA CONTRIBUTION, required minimum distribution, ira contribution
required minimum distribution, ira contribution, traditional ira: Hi Gino, It is too late, but you can take the amount now, file your return listing the penalty for taking it late and then asking for an abatement of the penalty. The IRS is very lenient in these cases if you correct the error very quickly. My recommendation...

Tax Law (Questions About Taxes): IRA missed contribution, simple ira contributions, ira funds
simple ira contributions, ira funds, ira account: Phyllis, Thanks for your question. First, the penalty is only 10%. But it is in addition to any tax due on a withdrawal. Since it is a Simple account I would presume that this was an employer s contribution and was never deducted by you on your 1040....

Tax Law (Questions About Taxes): IRA Transfer, rotting in hell, legal recourse
rotting in hell, legal recourse, beneficiary: Jennifer: I am not an attorney and can not render you an opinion. You need to consult with an attorney. However, I do feel for all persons who have been prayed upon by fraudulent investors and consultants. There should be no place for them to hide and...

Tax Law (Questions About Taxes): IRS form 8832, IBC, International Business Corporation
IBC, International Business Corporation, BVI: No, this is not too specific. The IBC by definition is a homeless business. If you file it in BVI, you can t operate there. But you also can t operate anywhere else. It is a fiction, with no real foundation. It was a money maker for the countries that allowed...

Tax Law (Questions About Taxes): IRS form 8832, Per Se corporation, 5471
Per Se corporation, 5471: Nice question. A BVI IBC is not in the list of Per Se Corporations ( Per Se Corporations Reg Code Sec. 301.7701-2(b)(8)(i) ), which means you can indeed file an election to treat it a pass through entity. Electing to tax it that way does not sound...

Tax Law (Questions About Taxes): IRS mileage allowance, irs mileage allowance, cessna 172
irs mileage allowance, cessna 172, elps: Jack, Thanks for your question, a rather obscure one at that. The current rate, as of January 1, 2011 for the use of private aircraft is $1.29 per mile. This link contains more detail. www.gsa.gov/mileage Hope this elps. John Stancil, CPA ...

Tax Law (Questions About Taxes): income tax, income tax refund, federal income tax
income tax refund, federal income tax, bad faith: Madelyn: That would be bad faith on their part if they sign an agreement and then intercept your income tax refund check. I do not believe that they would do that if not for the bad faith issue. However, if you sign a pay agreement and the department...

Tax Law (Questions About Taxes): income tax, irs office, private question
irs office, private question, tax question: you can file 2010 as if you were married for all of 2010. The irs does not take away your ability to file joint even though he passed during the 2010 year. if you want, send a new question and mark it private with your town - if close to me, I ll prepare...

Tax Law (Questions About Taxes): income tax, stancil, inheritances
stancil, inheritances, sum of money: Elisa, Thanks for your question. Inheritances are not subject to income tax. If the asset is something other than cash and is sold for more than its value on the date of death, the owner would owe income tax on the gain. Hope this helps. John...

Tax Law (Questions About Taxes): income tax on land disturbance, land disturbance, gas pipeline
land disturbance, gas pipeline, sales pitch: Mike, Thanks for your question. I do not research and cite code sections in the forum. Since it is strictly volunteer, I cannot spend the time required to do such research to dig out the applicable code sections. The landman is partially correct. ...

Tax Law (Questions About Taxes): independent contractor from overseas, independent contractor, tax withholding
independent contractor, tax withholding, w8: tooo complicated an answer? I think I wrote my questions at a 5th grade level. lets try again. Where does the contractor live? Did they come to the USA to perform the work? Did they stay at home (not in usa) and do the work remotely without...

Tax Law (Questions About Taxes): individual taxes, hope tax credit, opportunity tax credit
hope tax credit, opportunity tax credit, hope scholarship: Brittney, Thanks for your question. You should get a W-2. If not, you need to contact the employer. However, the Hope Scholarship is no longer in existence. It was replaced by the American Opportunity Tax Credit. The maximum credit is $2,500 with...

Tax Law (Questions About Taxes): inheritance vs. wages, senior health center, home health aide
senior health center, home health aide, money situation: Hi Audrey, I think you have some serious issues going on here. I am right there with you that this is tax fraud. We see these types of problems all the time. Getting these worked out is usually messy. I would recommend looking at appointing someone outside...

Tax Law (Questions About Taxes): interest write of for the buyer of my home (seller financed), lease purchase agreement, amortization table
lease purchase agreement, amortization table, investment interest: Javier, Thanks for your question. From you description, it sounds as it if may be a land contract. If, so he can deduct interest. The payments he is making must include a reduction of principal. If they are strictly rent payments and none of the payments...

Tax Law (Questions About Taxes): K1 vs paycheck, s corp, stancil
s corp, stancil, paycheck: Dorothy, Thanks for your question. Unfortunately you are incorrect. The laws requires an employee/shareholder of an S Corp to pay himself/herself a reasonable salary. So would be at risk if he just put the entire amount on a K-1. Hope this helps....

Tax Law (Questions About Taxes): Knotty Student Payroll Tax Question, higher tax bracket, student payroll
higher tax bracket, student payroll, payroll tax: It simply has to do with the fact that she was reflected as earning more in that period. The tables are based on that amount per period as your annual income, so it would react as if she were in a higher tax bracket. For example. If she earned $200 per...

Tax Law (Questions About Taxes): Live in NJ, Work part in SC, paid in Ohio, ohio state tax, mike thanks
ohio state tax, mike thanks, earning income: Mike, Thanks for your question. You will owe state tax to NJ for all your income, since you are now a resident of that state. You will also need to file as a non-resident in SC since you are physically present in that state and earning income. However,...

Tax Law (Questions About Taxes): Live in one state work in another, state income tax, mike thanks
state income tax, mike thanks, stancil: Mike, Thanks for your question. You owe NJ tax on your entire earnings, since that is your state of residence. If you spend sufficient time in SC to give them jurisdiction over you, you should file a SC non-resident return for the income earned there....

Tax Law (Questions About Taxes): LLC phantom income, llc compensation, incorporate in Nevada
llc compensation, incorporate in Nevada: You have enough to make an argument for distribution. Sadly the place that you can make that argument is in court. Hire an Attorney, spend more than a year with filings and depositions, and claims and counter claims, etc. It ll cost you more than the taxes...

Tax Law (Questions About Taxes): Local office or Collections Customer Service?, OIC, currently not collectible
OIC, currently not collectible: You deal with it where it is. This is determined by the last notice you received from them. Unless it is assigned to a person in the field, going in will do no good. Call the number on the notice you received. If you have not gotten any notices in a while,...

Tax Law (Questions About Taxes): living expences, electricians union, www irs gov
electricians union, www irs gov, irs publication: that silly tax man you have had for 25 years... gee, he is right. go figure. what was he thinking? see irs publication number 463 at... http://www.irs.gov/publications/p463/ch01.html temporary job away from home more then one year you can not deduct...

Tax Law (Questions About Taxes): llc, realty broker, schedule c
realty broker, schedule c, turbo tax: you should really have a pro prepare your return. but that said, all your commissions were paid to the LLC? and included in the 1099.... the w9 is what you give to the realty broker for them to send you a 1099. that has no amount of income on it....

Tax Law (Questions About Taxes): llc filing as an S-corp, s corp, repayment schedule
s corp, repayment schedule, cash loan: Yes, you can. Should You? that one you get to decide. If you are going to make a loan, make it legitimate. You ll need to create a note. You ll need to determine an interest rate. And you ll need to have an intent to repay, a repayment schedule is a good...

Tax Law (Questions About Taxes): long overdue taxes, part time job, cpa license
part time job, cpa license, standard deduction: depends upon how much you actually earned. you should go to a local office - or mail if not near a local office with form 4506T completed and specifically ask for a transcript of all income activity related to your account. The IRS will be able to...

Tax Law (Questions About Taxes): Married Filing Separately - Dvision of Interest & Capitol Gails, brokerage account, interest dividends
brokerage account, interest dividends, capitol gains: Billy, Thanks for your question. Income and expenses from joint funds are normally considered to be divided equally between the two unless you can prove it should be otherwise. You would have to be able to show that the funds in the brokerage account...

Tax Law (Questions About Taxes): Member Managed LLC and Operations Agreement, member need, protection features
member need, protection features, detailed explanation: The LLC has no proven protection features. (Call me for a more detailed explanation) Yes it is legal, however, FL would then have a right to require the LLC be registered in FL and a tax return to be filed. (having a bank account in a state is qualification...

Tax Law (Questions About Taxes): Merging LLC and C Corp, merging two businesses
merging two businesses: You have options. You could transfer the ownership of the LLC to the Corporation. You could sell the assets of the LLC to the Corporation and then have one entity. That entity could file a DBA ( Doing Business As ) or Fictitious Firm Name and operate...

Tax Law (Questions About Taxes): MGIB, education benefit, education expenses
education benefit, education expenses, stancil: Christopher, Thanks for your question. No, your contributions into the MGIB are not deductible education expenses. At this point, you are funding an education benefit, not spending the money on education. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): MIleage for Consultants, business expense, convience
business expense, convience, form 1040: LeeAnn: Personal use/ Business use of a vehicle is the most mis-understood business expense. If the business owns a vehicle and provides it to you to use you must pay for the personal use of the vehicle and the company claims the business use. Since...

Tax Law (Questions About Taxes): Mileage Question, miles from my home, mileage
miles from my home, mileage: commuting miles are not deductible. anyway. so it does not matter where you live or stay or how far you actually drove. but think about it - even if they were, would you deduct what you actually did drive or what you think might have been allowable? ...

Tax Law (Questions About Taxes): US Military Married to Foreign Military, foreign spouse, nra spouse
foreign spouse, nra spouse, non resident aliean spouse: Hello Juan, In its simplest form, yes, you are correct - he should file Married filing separate and include only his income on his 1040. However, they do have the option of electing to treat her as a US Citizen for tax purposes, to allow him to file...

Tax Law (Questions About Taxes): Military Member, true maine, maine resident
true maine, maine resident, state income tax: Erika, Thanks for your question. That is not true. Maine state income tax follows federal rules, which means that if it is taxable at the federal level, it is taxable in Maine. Since Texas does not have an income tax, you would not be able to file...

Tax Law (Questions About Taxes): Minister's housing allowance, video game system, clergy tax
video game system, clergy tax, b j worth: Sarah, Thanks for your question. The IRS does not have such a list. However, there are a number of books that you could reference. Richard Hammar s Church and Clergy Tax Guide; B. J. Worth s Tax Guide for Ministers; and Dan Busby s Minister s Tax and...

Tax Law (Questions About Taxes): Mobile ad revenue as hobby income?, free iphone, stancil
free iphone, stancil, iphone: Jason, Just an additional comment. I would not call the IRS, but use your best judgement. They would most likely tell you it is a hobby. They don t give detailed answers nor do they inqire about the details of your situation. John Stancil, CP...

Tax Law (Questions About Taxes): Mortgage Interest, mortgage interest, tax situation
mortgage interest, tax situation: Hi Frances, In order for her to get the deduction she must be legally responsible for the mortgage and have ownership in the home. So you must put her on the mortgage and deed. The question of worthwhile can only be answered by looking at your tax...

Tax Law (Questions About Taxes): medical deduction question, medical expense deduction, irs rules
medical expense deduction, irs rules, medical deduction: Joyce, Thanks for your question. Unfortunately you cannot take a deduction for your expenses. First, they are not qualified medical expenses under IRS rules. Second, you can only take a medical expense deduction for you or someone you can claim as...

Tax Law (Questions About Taxes): medical deductions on federal return, medical deductions, home improvements
medical deductions, home improvements, happy new year: Hi, Improvements made for medical purposes are deductible over the amount they increase the value of your home. For example adding a bedroom and bath increases the value of your home so there would be no deduction. But if you do things such as widening...

Tax Law (Questions About Taxes): mileage, kansas city mo, 12 volt
kansas city mo, 12 volt, phaseout: Hi Jason, You can claim mileage for the miles driven for work on the 2106 that flows to the schedule A. Some things to keep in mind. Just because you come from home does not necessarily mean that is where you start figuring mileage. If you company has...

Tax Law (Questions About Taxes): mileage deduction, mileage deduction, individual district
mileage deduction, individual district, substitute teacher: Hi Patty, You aren t going to like the answer. You can not deduct mileage to and from work each day. You can deduct any miles that are driven throughout the day if you were going to more than one school in a day. If this takes place those miles can...

Tax Law (Questions About Taxes): mileage question, federal tax returns, federal tax return
federal tax returns, federal tax return, www irs gov: hi read the section in http://www.irs.gov/publications/p463/ch06.html on accountable plans (you have to submit your miles to boss is key for accountable plan). you should not have to pay tax on the receipt of payments. It would be hard to get 25c per...

Tax Law (Questions About Taxes): miscalculation, state board of accountancy, board of accountancy
state board of accountancy, board of accountancy, stancil: Michael, Thanks for your question. Since you would have owed the tax had it been done correctly the CPA is not liable for the additional tax. Likewise, since you had the use of the funds, he is not liable for the interest. However, he should be willing...

Tax Law (Questions About Taxes): My mom, irs office, state income taxes
irs office, state income taxes, volunteer service: sorry for the loss of your father... depends upon the split between ssi and retirement and how it is paid. generally, the threshold for inclusion of ssi into taxable income would exclude that amount from tax... but it is reasonably close. If...

Tax Law (Questions About Taxes): mortgage interest question, interest question, wife lives
interest question, wife lives, mortgage interest: Brenda, Thanks for your question. If he is legally liable for the payments and he make the payments with his funds, he can deduct the mortgage interest. About the only way to be certain if you should file separately or jointly is by doing the taxes...

Tax Law (Questions About Taxes): My mothers refund, stancil, personal representative
stancil, personal representative, immediate family: Sacha, Thanks for your question. Someone is required by law to file her final return. It would be signed as the personal representative of the deceased. If there is a refund you should attache Form 1310 in order to obtain the refund on behalf of the...

Tax Law (Questions About Taxes): If net gross is $400 or more. Part2, social security and medicare, irs code
social security and medicare, irs code, massive headache: I seriously question whether he is tax savvy. Just because someone does taxes or say they do doesn t make them tax savvy. I would recommend you talk with a CPA in your area. I couldn t advise you in an open forum anything other than the IRS code which...

Tax Law (Questions About Taxes): If net gross is $400 or more., tax threshold, own a car
tax threshold, own a car, elderly couple: While I am not trying to say whether you are self-employed or an employee the point is you must be one or the other. If you are an employee you would be receiving a W-2 and there would be no requirement to file under the threshold of $9,350 as you stated....

Tax Law (Questions About Taxes): non dependant child deduction, custody rights, niece
custody rights, niece, child support: Hi Jane, There is no such thing as a non-dependent deduction. He is not able to claim the child unless he provides over half of the support for the child. Whoever the child lives with and if that person provides over 50% of the support they should be...

Tax Law (Questions About Taxes): non resident, individual income tax, state income tax
individual income tax, state income tax, interstate business: I think starting at the end will help clear this up. your example is excellent to visualize the situation. The Delaware Registration is almost meaningless. Registration is NOT a feature of doing Business in that state. It has a home office in NY, Physical...

Tax Law (Questions About Taxes): OCCUPATIONAL tax, gross wages, connie
gross wages, connie, cpa: Connie, Thanks for your question. Occupational taxes are fairly common. Basically they are a flat income tax levied at the city or county level. They normally are a percentage of gross wages for individuals and a percentage of profit for companies....

Tax Law (Questions About Taxes): Owner's Equity Account, equity account, mike thanks
equity account, mike thanks, time mike: Mike, Thanks for your question. I would need a great deal of additional information in order to give you a complete answer. Basically, if you transferred property for an interest in the LLP it is a non-taxable exchange and the same basis transfers to...

Tax Law (Questions About Taxes): office in home mileage reimbursement, mileage reports, mileage reimbursement
mileage reports, mileage reimbursement, outreach events: primarily from home is the issue. if you said she works from the church, only the net beyond the commute miles are reimbursable. ie, 10 mi from home to work, each way and you then drive to client location on the way instead of going to work first......

Tax Law (Questions About Taxes): Will my ownership of an S-Corp from which I no longer receive any pay or distribution still impact my taxes?, stock certificates, tax preparations
stock certificates, tax preparations, s corp: The stock certificate should have an endorsement section on the back. In that section it should name someone to effect the transfer. Once that is done on the corporate records. You are free and clear, and yes, you can do the paperwork that memorializes your...

Tax Law (Questions About Taxes): Paid with a W2 but used a home office and commuted to clients biweekly, home office expenses, miscellaneous itemized deductions
home office expenses, miscellaneous itemized deductions, amy thanks: Amy, Thanks for your question. In order to deduct home office expenses, the home office must be for the convenience of the employer. If you meet this criteria the home office and other employee-related expenses are miscellaneous itemized deductions...

Tax Law (Questions About Taxes): Preschool Teacher, high school dropout, child molester
high school dropout, child molester, kids camp: to be an independent contractor - they must have close to total control. see IRS form ss-8 for identity of various factors. This is widely written about and discussed an nauseum. So, your thought is to have one school = joes kids camp. and then have one...

Tax Law (Questions About Taxes): Primary residence, insolvency law, debt cancellation
insolvency law, debt cancellation, amy thanks: Amy, Thanks for your question. When you rented the house, it became rental property, and no longer qualified as your primary residence. So you cannot escape taxation of the cancelled debt under that provision. If you are insolvent you can exclude...

Tax Law (Questions About Taxes): Property, Head of Houshold, Child Daycare, household expenses, head of household
household expenses, head of household, split custody: Jeremy, Thanks for your question. You are correct on the interest from the mortgage payments. To qualify as head of household, you must have an eligible dependent who lived in your household for over half the year and you must have paid over half...

Tax Law (Questions About Taxes): pastor's w2, self employment tax, w2 form
self employment tax, w2 form, stancil: Terry, Thanks for your question. The self-employment tax payment should be included on the W-2. The convention expense depends on whether there is an accountable plan or a non-accountable plan in place. If the pastor is given a fixed dollar amount...

Tax Law (Questions About Taxes): peer to peer notes, cpa services, cost basis
cpa services, cost basis, engagement letter: cost basis is original purchase price. value at purchase has no bearing on the equation. you paid $20 for it. period. 20.00, less payments applied to principal (interest and principal in the payments - allocated at either FMV if unstated or at stated...

Tax Law (Questions About Taxes): personal use of company vehicle, electric distribution system, irs rate
electric distribution system, irs rate, municipal vehicles: The IRS has the right to disregard ALL Estimates. They re policy requires an actual log that is updated daily and accurate. From there you can make a qualified argument, but for many people that have access to company or municipal vehicles they use them occasionally...

Tax Law (Questions About Taxes): Qualifying Child for the earned income credit, c2b, eic
c2b, eic, principal place: the key is that you have to have higher agi then does your sister. see C4C at the bottom. C2B allows... nephew (as child of sister....) but C4C would prevail if she does not take them and has higher income then you do. If she did not earn more then...

Tax Law (Questions About Taxes): Question re California DBA and taxes..., dba name, social security number
dba name, social security number, itemizing deductions: David, Thanks for your question. When you state that you will be itemizing deductions for business expenses, I presume you mean that you will be filing a Schedule C for this business. That is the proper way to report your business income and expenses....

Tax Law (Questions About Taxes): Quick Question, ss office, source summary
ss office, source summary, skyler: Would you really risk your SSi on a free chat board??? Duh! Get WRITTEN answers from your local ss office! Did I say written? From the source? Summary, Work (full time?) and make how much? And lose your SSi? Mmm. I would...

http://en.allexperts.com/q/Tax-Law-Questions-932/2011/1/Re-Non-Performing-Real.htm


Tax Law (Questions About Taxes): Recieved a 1099 Misc form from my previous employer, self employment income, 1099misc
self employment income, 1099misc, self employment taxes: Christie, Thanks for your question. You have two options. First, just let go. File the 1099 as Schedule C self-employment income and pay the income and self-employment taxes on it. Obviously, this route will result in you paying more tax, but is could...

Tax Law (Questions About Taxes): Relocation package paid back before year end due to job change - Taxes &W-2 ?, relocation package, easiest thing
relocation package, easiest thing, best of luck: Hi Wayne- The amount you paid back should not have been included in your W-2. The best and easiest thing to do would be to have them issue you a corrected W-2. Hopefully they won t hassle you about it. If you have to itemize the amount as a deduction,...

Tax Law (Questions About Taxes): Rental, rental loss, partnership
rental loss, partnership, LLC: Dear Shelley, Your question has some unknown variables. First, how many member the LLC will have? If this is a single-member LLC, it is treated as disregarded entity. Which means, rental loss will flow directly to your schedule E, subject to the same income...

Tax Law (Questions About Taxes): Rental Property Depreciation upon death of taxpayer, rental property depreciation, executrix
rental property depreciation, executrix, stancil: Ted, Thanks for your question. When a piece of property is inherited, it starts fresh with a new basis and new depreciation. The prior depreciation is simply gone with no recapture. A final 1040 must be filed by the administrator of the estate. ...

Tax Law (Questions About Taxes): Return Sign-On Bonus, paycheck stub, gross wages
paycheck stub, gross wages, return thanks: you paid the $3k back and your wages were reduced... which means your tax paid was also reduced. no? what part do you think needs to be fixed? essentially, they should adjust your w2 just like you never earned the $3k... which includes adjusting for the tax...

Tax Law (Questions About Taxes): Are reports needed?, snack chips, microwave popcorn
snack chips, microwave popcorn, winston salem north carolina: http://www.cityofws.org/Home/Departments/FinancialManagementServices/RevenueCollections is the local office for licenses. you do need a business license in forsyth county. also, you should register for sales tax collection. lastly, my guess is the...

Tax Law (Questions About Taxes): S-Corp Distributions, stock redemption, cash distributions
stock redemption, cash distributions, irs code: that should work. I did not realize you also drew pay. regarding pay (self employment income) and residual income not SE - be careful your pay is sufficient to not run into problems. if under paid, IRS would argue all is SE (and assess penalty, interest...

Tax Law (Questions About Taxes): S-Corp Distributions, 179 deduction, profit
179 deduction, profit, loss carry forward: Yes you understand the accounting. But you have, what I see, as a Huge problem. So first to answer your question. You are right your retained earnings remains a negative if you continue to take cash distributions of 100% of the funds that could be Retained...

Tax Law (Questions About Taxes): Sale of residential real estate when primary beneficiary dies, personal residence trust, qualified personal residence trust
personal residence trust, qualified personal residence trust, contingent beneficiaries: capital asset as it was never 1231 property. but a whole host of caveats come wtih this..free advice, no engagement letter and all that good stuff, but if you were my client, I would take the capital loss. date of purchase (and valuation) was DOD (or...

Tax Law (Questions About Taxes): Sale of S Corp, private question, s corp
private question, s corp, restaurant bills: Need much more info Aaa account Basis and possible built in gain Did s Corp deduct losses Did they merge already And so on Not good for a free chat. We both need more details Email private question I will give you my contact info In addition...

Tax Law (Questions About Taxes): Sale of Section 351 assets, piece of the puzzle, friendly exchange
piece of the puzzle, friendly exchange, section 351: At this point the sisters have no basis in the land (it is not their land). They have a basis in the stock. And that basis would be the parents basis at the time of the gift. It would be common to use the FMV of the land at the time of the exchange, to determine...

Tax Law (Questions About Taxes): Schedule C vs S Corp Filing, llc or s-corp, self employment tax
llc or s-corp, self employment tax: If those are the only choices you give me then yes the S-corp allows you to save at best 3.06%, if you happen to have a total business income of $80,000 to 108,000. If the total in higher then the savings drops, and finally levels out at 0.58%. If it is lower,...

Tax Law (Questions About Taxes): SEP Eligibility, sep ira, adjunct instructor
sep ira, adjunct instructor, roth ira: David, Thanks for your question. Since you are not self employed, your employer must establish a SEP plan that you could participate in. Since they have not done so, you are not eligible for a SEP on your own. Hope this helps. John STancil, CP...

Tax Law (Questions About Taxes): Over Seas Tax Exemption?, ken ken, stancil
ken ken, stancil, tax exemption: Ken, Thanks for your question. It does not have to be 330 days in a calendar year. You must be physically present in a foreign country for 330 days in a rolling 12-month period. You will qualify for a reduced exemption. For example, assume that...