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

Tax Law (Questions About Taxes): business milage for car, field service technician, personal car
field service technician, personal car, storage area: You will list the entire amount of mileage on your return and indicate the reimbursement amount from your employer. This will give the the added deduction. The business use percentage of the use of your computer and storage area are also deductible...

Tax Law (Questions About Taxes): business tax, sole proprietorship, company balance
sole proprietorship, company balance, s corporation: Dear J Sully, I have to know if this is a partnership, a LLC or a Corporation or S-corporation or a sole-proprietorship.... However, no matter what this company A is, each year is based on that years only INCOME and that years only expenses, so therefore,...

Tax Law (Questions About Taxes): business tax, business portion, tax question
business portion, tax question, owned equipment: Hi, You can deduct business use expenses on a car. You need to keep a written record of the mileage - personal and business. For the business portion you should keep a daily record with some detail as to the business purpose. You can deduct either actual...

Tax Law (Questions About Taxes): business tax deduction for vehicle purchase/usage, section 179 deduction, mileage deduction
section 179 deduction, mileage deduction, sole proprietorship: Anil, Thanks for your question and kind words. In order to qualify for the large deduction, the vehicle must weigh over 6000 lbs. Anything less than that will subject the vehicle to the luxury vehicle rules. If you take the 179 deduction, you cannot...

Tax Law (Questions About Taxes): business tax due, trucking company, legal question
trucking company, legal question, withholding taxes: Kirsten this is more of a legal question than tax Sorry to have to tell you But some taxes are considered trust funds such as withholding taxes for which corporate officers or even employees can be held personally liable. I would suggest you consult...

Tax Law (Questions About Taxes): business tax question, irs gov, filing taxes
irs gov, filing taxes, time matt: Your business began when you began to pursue income even if you have not yet been paid. You will be able to deduct expenses in the year you began to pursue income. Some expenses may be grouped as start up expenses and deducted over a period not less...

Tax Law (Questions About Taxes): business tax, federal employers, business tax
federal employers, business tax, irs: I assume you are referring to your application for a Federal Employers ID number for your proposed cleaning business. You need do nothing if you did not generate income. You should contact IRS to close this account if you will not open for business within...

Tax Law (Questions About Taxes): business taxes, unemployment compensation tax, social security and medicare
unemployment compensation tax, social security and medicare, import tariffs: Income taxes, employer s portion of social security and medicare, a host of excise taxes, sales taxes on items purchased not for resale, unemployment compensation tax, franchise tax, securities tax, value added tax, import tariffs, property tax, intangibles...

Tax Law (Questions About Taxes): business use of car, irs policy, personal purposes
irs policy, personal purposes, auto loans: If a car is used 100% for business then you can depreciate it and deduct all expenses relating to its including interst if the car is used for personal purposes you must allocate and keep a good diary of use. however if the business use is less than 50%...

Tax Law (Questions About Taxes): business vehicle tax issues, section 179 deduction, mileage deduction
section 179 deduction, mileage deduction, small business owner: Normally there is not a lot of section 179 write off as the amount is limited to the maximum allowed depreciation on your type of vehicle. But please note that you vehicle unless it is considered a luxury car will be written off over a six year period anyway....

Tax Law (Questions About Taxes): Am I a business, hobbyist, state taxes
hobbyist, state taxes, business activity: This does not make you a business. You may actually be a hobbyist. IRS states that if you engage in the activity with an INTENT to make a profit rather than engage in an activity for pleasure which MAY generate a profit, you are a business. Other factors...

Tax Law (Questions About Taxes): Can I buy house under market value??, current market value, taxable gifts
current market value, taxable gifts, party transaction: Danny, Thanks for your question. There is certainly no law prohibiting you from buying a house under market value. However, since you are buying it from your parents, it becomes a related party transaction. If you buy it for significantly below...

Tax Law (Questions About Taxes): buy out other owners on a deed, real estate taxes, three names
real estate taxes, three names, mortgage interest: Carmen, Assuming she meets the lenders criteria, it won t be a problem for your sister to get a mortgage. Its very similar to someone refinancing to buy out the co-owner. In this process, cash is taken out of equity and given to your parents. At closing,...

Tax Law (Questions About Taxes): buying adjacent lot and whether interest on lot loan is deductible, itemized deduction, mortgage interest
itemized deduction, mortgage interest, federal tax: Hi, I haven t seen any regulations addressing the acquisition of a parcel adjacent to your main home but the regulations do address the sale of a parcel adjacent to your main home. If you sell said parcel you can exclude gain on the sale if you also sell...

Tax Law (Questions About Taxes): buying a home with parent, mortgage interest, buying a home
mortgage interest, buying a home, tax return: As long as she is a joint owner, what she pays in mortgage interest and taxes are deductible by her, what you pay is deductible by you. So if you split the mortgage 50/50, you each can deduct that much. If one of you cannot itemize, the other CANNOT...

Tax Law (Questions About Taxes): buying and selling a home, capital gains taxes, penelty
capital gains taxes, penelty, stancil: Donald, Thanks for your question. If you have owned the house and lived in it for 24 of the past 60 months as your main home, you can exclude up to $250,000 ($500,000 if married filing jointly) in gain from the sale of the house. Any gain above this...

Tax Law (Questions About Taxes): buying/selling house, tho, mortgage
tho, mortgage, money: Hi, That law has changed. Now if you own and live in a home as your main home for 2 years during the 5 years preceding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 gain ($500,000 if married filing...

Tax Law (Questions About Taxes): buying a vehicle, standard mileage deduction, mileage deduction for 2005
standard mileage deduction, mileage deduction for 2005, depreciation allowance: Darrell, Thanks for your question. When purchasing a vehicle, only the portion that is used for business can be deducted. Thus, if you use the vehicle 50% for business, you can only deduct 50% of the costs associated with the vehicle. There are two...

Tax Law (Questions About Taxes): C Corp asset moved to S Corp, filing taxes for 2003, c corp
filing taxes for 2003, c corp, s corp: Zig Ziglar was fond of stating that he would never eat cottage cheese because it makes you fat . He support his theory by claiming that only fat people eat cottage cheese, therefore. . . He was trying to show an illogical conclusion from confused...

Tax Law (Questions About Taxes): C Corp Capital Gains Primary Residence, irs code, c corp
irs code, c corp, exchange agents: Hi Brian all of your planning C corp etc will cost you more than the 15% capital gain rate.(the state tax will mostly depend on the location of the property I would suggest that if you can wait another 10 months the gain will be tax exempt or you...

Tax Law (Questions About Taxes): Have a C-Corp, proposed to create LLC, c corp, marginal rate
c corp, marginal rate, accountant: If the $50k that the C-Corp is making were passed through to you it would be taxed at 33%. If you keep it in the C-Corp it is taxed at 25%. You re much better off keeping it in the C-Corp until your marginal rate drops to at least the 25% rate. John Kirk,...

Tax Law (Questions About Taxes): C Corp, S Corp, or LLC also paying self, 1120s form, salary income
1120s form, salary income, c corp: Rick I understand the import of your question to establish a Salary Your best bet is to elect for your C corp to become as S corp you can find the form and rules by going to www.IRS.USTREAS.gov you can pay yourself and stockholders any amount you consider...

Tax Law (Questions About Taxes): C-Corp to S-Corp, c corp, s corp
c corp, s corp, form 1120: Jeff no need just keep th R/E separate on the books the 1120S has a schedule that keeps track of pre S R/E No the Corp is not ended it still uses the same EIN number it just elected to be taxed differently I would note on the 1120 that the corp will file...

Tax Law (Questions About Taxes): C-Corp, TX, personal holding company, c corp
personal holding company, c corp, personal rate: Yes but remember that if you are paying out a salary that does not get taxed as corporate income say you pay your income as salary then you pay tax at your personal rate say 28% and social security taxes or if you get it as a dividend the corp may pay...

Tax Law (Questions About Taxes): C Corp taxes, loss occured, c corp
loss occured, c corp, stock purchase: I am not a lawyer so I can t give legal advice but in my oppinion I presume the refund came from liquidation of your investment in the corporation which you purchased so I do not understand how a previous stockholder would have any call on a refund. C...

Tax Law (Questions About Taxes): C Corp vs. S Corp, self employment tax, social security tax
self employment tax, social security tax, medicare tax: Well . . . that is the spin that the fear mongers put on it. I once read in a quote in Fletchers Cyclopedia of Corporations that Double Taxation is an Ethereal Specter , certainly not an absolute reality but a haunting possibility. Let me cover this...

Tax Law (Questions About Taxes): C Corporation dissolution, corporation dissolution, sole stockholder
corporation dissolution, sole stockholder, long term capital gain: Hi Thanks for the follow-up question. Your Basis in the stock you own is the cost of the original shares you started with, plus the $180,000 you spent to buy out the other shareholders. You have a bigger problem with the Building and office furnishings...

Tax Law (Questions About Taxes): C Corporation problem, true advantage, c corporation
true advantage, c corporation, c corp: No because the consulting or management fee income is subject to self employment and Medicare tax your 95000 salary exceeds the self employment so you are only subject to an effective medicare of aprox 1.25% of $15000 after giving effect to the deduction that...

Tax Law (Questions About Taxes): C Corporation Tax, c corp, s corp
c corp, s corp, c corporation: You need to file a final return for the mergee and then file a return for the survivor IS there a reason for your stockholder having a a C corp an S corp might be more appropriate you have until March 15 to make the election for 2007 IF YOOU DECIDE...

Tax Law (Questions About Taxes): C corp vs. S corp, tax losses, s corp
tax losses, s corp, artist friend: Hi Brook: Thanks for the question. The answer really depends on the expectation of profit from the Corporation. If you expect the Corporation to generate losses in the first few years of operation, a S-corp would provide tax losses deductible against...

Tax Law (Questions About Taxes): CA franchise tax, ca franchise tax, disolution
ca franchise tax, disolution, happy new year: Melisa first sorry about the delay on the answer I was on vacation More important Yes they can and have done so you shoulld filr your final2007 return by DEcember 31 and file articles of disolutio so they won y hound you for 2008 I knoow it is a tall order...

Tax Law (Questions About Taxes): CA LLC Tax and LLC Closing, tax clearance certificate, franchise tax board
tax clearance certificate, franchise tax board, ftb: I do not know the legal responsibiolity but they will hound you and they are persistent ! how much agravation can you take! and please be sure that they aknowledge that your LLC is peoperly terminated in 2006 or they will come back to you in 2007 ...

Tax Law (Questions About Taxes): CA mandatory withholding on real estate transactions, real estate transactions, taxable capital
real estate transactions, taxable capital, real estate transaction: it depends it could be yes or no Real Estate Transctions can have Taxable Capital Gains if it is a sale of yuor principal residence NO tax up to 250k if it does not qualify for the exemption and you are a Non-California resident YES ...

Tax Law (Questions About Taxes): CA resident purchase house in AZ - tax implications, federal purposes, rental expenses
federal purposes, rental expenses, ca residents: i am not familiar as to AZ requirements for federal purposes it all goes into one pot and makes no diference . CA on the other hand considers all income by Ca residents as Ca income . However it will grant a deduction for taxes paid to other jurisdiction...

Tax Law (Questions About Taxes): CA state income tax, state income tax, stancil
state income tax, stancil, wa state: Sophia, Thanks for your question. You will need to file a WA non-resident form and pay taxes on your WA income. You will probably need to file a part year resident form for CA only for the income earned in that state. However, you state that you...

Tax Law (Questions About Taxes): CA taxes on selling a house, capital gain tax, principal residence
capital gain tax, principal residence, cost basis: Wendy In my opinion it is clear that if your boyfriend sells the property he is entitled to $250,000 of tax free gain to compute the gain forget about the mortgage but take into account the original cost basis so if his basis is greater than $70,000 it would...

Tax Law (Questions About Taxes): CAFRG, irs instructions, turbotax
irs instructions, turbotax, huge list: The w2 IRS instructions indicateb this box should be used to give employyes additional information so I have no idea because the IRS example has a huge list I suugest you go to WWW.IRS.USTREAS.gov and get w2 instructions or ask your employer. Sorry but this...

Tax Law (Questions About Taxes): CAFRG, cafeteria plan, turbotax
cafeteria plan, turbotax, medical expenses: Hi Augusto, You would have to ask your employer to be certain since each employer uses their own description(s) in box 14. At a guess I would say it is a Cafeteria Plan where you are not taxed on amounts set aside for medical expenses or child care or...

Tax Law (Questions About Taxes): CAPITAL GAIN TAX, capital gain tax, vacation home
capital gain tax, vacation home, income tax: Dear Dennis, I can not tell you how much the tax will be... This will be determined when you do the 1040-schedule-D if any is owed, and you WILL have to report the gain as income on the 1040..... You can do anything with the money you wish to do, but...

Tax Law (Questions About Taxes): CAPITAL GAIN TAX, www irs gov, capital gain tax
www irs gov, capital gain tax, irs publication: Elaine, Thanks for your question. A recipient of a gift takes the donor s basis, so your cost basis is $50,000. In addition, however, you may add to your basis any gift taxes that were paid. IRS Publication 511 has this information. It may also be...

Tax Law (Questions About Taxes): CAPITAL GAINS ON INVESTMENT PROPERTIES, construction sales, term gain
construction sales, term gain, capital gain: From the total sale price, deduct costs including construction, sales, and closing costs; From that net, subtract your original purchase price. that should show the Capital gain. If it was less than a year, it will be a short term gain, if it was hled longetr...

Tax Law (Questions About Taxes): CAPITAL GAINS TAX, marginal tax bracket, capital gains tax rates
marginal tax bracket, capital gains tax rates, long term capital gain: Ronnell, Thanks for your question. Federal long term capital gain rates are 5% and 15% depending on your marginal tax bracket for individuals. Corporations pay taxes on capital gains at regular rates. I do not know CA law on capital gains. Hope...

Tax Law (Questions About Taxes): CAPITAL GAINS TAX, residence portion, denise thanks
residence portion, denise thanks, capital gains tax: Denise, Thanks for your question. If the portion of the building qualifies as your main home was treated as such through the years (no depreciation deduction for the home portion, costs of maintaining the building allocated between personal and commercial...

Tax Law (Questions About Taxes): Cable TV Writeoff, satellite radio stations, television advertisers
satellite radio stations, television advertisers, dear pete: Dear Pete, You can not deduct either... This would definately trigger a red flag with the IRS... Since this is only occassional and you have the cable and satelite for personal use, you would be seeing these advertizements anyway and the IRS would look...

Tax Law (Questions About Taxes): Cable TV Writeoff, satellite radio stations, television advertisers
satellite radio stations, television advertisers, programming activities: Unless you keep a log of every hour watching or listening and log your business hours, you are going to run into an audit real easy and probably lose it. It is not worth the time for the few bucks you might save. In my humble opinion..... Helen,...

Tax Law (Questions About Taxes): Cable TV Writeoff, satellite radio stations, television advertisers
satellite radio stations, television advertisers, programming activities: Pete, Thanks for your question. Probably not a valid deduction. The IRS assumption would be that you would have these anyway, so the only deduction would be for any additional cost involved. For example, if you subscribed to a higher level of service...

Tax Law (Questions About Taxes): Cable TV Writeoff, satellite radio stations, television advertisers
satellite radio stations, television advertisers, programming activities: Normally this type of expense should be reimbursed by your employer If you have been told by your employer that they will not reimburse and you consider that this expense as necessary to your job you would file a form 2106 limited to any excess of 2% of AGI...

Tax Law (Questions About Taxes): California Capital Gains Tax, ftb ca gov, franchise tax board
ftb ca gov, franchise tax board, revenue and taxation code: Hi Paul, Yes California law follows Federal on exemption of gain on the sale of your main home. The only difference might come in calculating your gain if your CA basis is different than your Federal basis. You can go the Franchise Tax Board web site...

Tax Law (Questions About Taxes): California inheritance, inheritance tax, california taxes
inheritance tax, california taxes, stancil: Malcolm, Thanks for your question. Inheritances are not considered income and therefore not subject to income taxes. California does not have an inheritance tax, so there is no concern there. There is a Federal and California Estate tax, but it is...

Tax Law (Questions About Taxes): Canadian Attorneys, canadian attorneys, settlement fees
canadian attorneys, settlement fees, stancil: Diane, Thanks for your question. I would issue the 1099. if the work was performed in the US, the attorney may be liable for US income tax on the payment. The instructions for 1099 s do not state that it is to be issued only to US residents. Also,...

Tax Law (Questions About Taxes): Sale of Home, irs gov, gary cobb
irs gov, gary cobb, publication 523: Dear Gary, If this home was your MAIN/PRIMARY home that you sold in 2005 AND you owned this home for 2 out of the last 5 years at the date of sale, then you take the exclusion.... The exclusion is $500,000.00 if filing married filing JOINT and if you file...

Tax Law (Questions About Taxes): Cancelled Debt, irs publications, 1099c
irs publications, 1099c, credit card debt: Lisa, Assets = $20,000 Debts = $60,000. Cancelled debt = $39,000. You were insolvent by $40,000 so the entire amount of debt cancellation would not be taxable. You can take 2 approaches with the IRS. First, just file your taxes and ignore the 1099-C....

Tax Law (Questions About Taxes): Cap Gain Tax on Sale of property, palm desert california, long term capital gains
palm desert california, long term capital gains, capital gains tax: Hi, You don t pay any income tax when you buy a home. If it s your main home and you own and live in it for 2 years during the 5 years preceding the date of sale, you can exclude gain up to $250,000 ($500,000 if married filing jointly). If it isn t...

Tax Law (Questions About Taxes): Cap Gains on sale of house, location hotel, stancil
location hotel, stancil, old job: Hermoine, Thanks for your question. No, expenses incurred inf fixing up your house, costs of selling the house, are not deductible. If your move was for employment reasons and your new job is more than 50 miles further from your old job, you can deduct...

Tax Law (Questions About Taxes): Cap Gains tax, capital gains rate, cap gains tax
capital gains rate, cap gains tax, income person: Bill, Thanks for your question. The capital gains rate is 5% or 15%. You would pay at the 5% rate until your income moved you into the 25% bracket. Where that bracket begins depends on your filing status. Your gain is the sales price minus your basis....

Tax Law (Questions About Taxes): Cap gains to earned income in an SMLLC, self employment income, self employment tax
self employment income, self employment tax, full time job: Hi, You can t file 2 Schedule C s for the same business. You report your income and expenses on one Schedule C and your net self employment income is your earned income. Obviously if it is a loss you would have no earned income but presumably you wouldn...

Tax Law (Questions About Taxes): Cap gains tax on sale of home, cap gains tax, capital gains tax
cap gains tax, capital gains tax, yr period: Hi, You can no longer roll over gain on the sale of your home into a new home. That was replaced by the exclusion of gain. You must either wait to sell your current home or decide on which sale you want to pay capital gains tax. Regards, Carol...

Tax Law (Questions About Taxes): Capiital Gain on sale of gifted vacant land, gift questions, investment expenses
gift questions, investment expenses, real estate commission: Question one - the taxes are calculated on the net sales price less basis. So you can reduce the sales price by all your costs of sale. Question two - You cannot deduct these costs from the sales price. But, if you itemize, these expenses would be deductible...

Tax Law (Questions About Taxes): Capital Gain, capital gain, next home
capital gain, next home, money: Hi, If you own and live in your home as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 of gain ($500,000 if married fiing jointly). It doesn...

Tax Law (Questions About Taxes): Capital Gain, long term capital gain, maximum rate
long term capital gain, maximum rate, long term capital: Hi, If the condo you sell is your main home and you have owned and lived in it as your main home for 2 years during the 5 years preceding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 gain ($500,000...

Tax Law (Questions About Taxes): Capital Gain with Gift of Equity, real estate contract, possition
real estate contract, possition, capital gain: Since you are receiving only $100,000 cash you would have a $20,000 capital gain the rest of the value would be subject to the gift tax , if due. My concern however unlikely would be that the IRS takes a dim view of transactions between related...

Tax Law (Questions About Taxes): Capital Gain from Land Sale by Trust, gifted property, question thanks
gifted property, question thanks, capital gain: The best thing is to get another accounting firm to review the issues you have raised. From what I can tell either the Land should not have been included in the estate, or your basis should be the value establish by the estate. You should seek professional...

Tax Law (Questions About Taxes): Capital Gain & Lost, tax form 1040, federal tax form
tax form 1040, federal tax form, 2003 tax form 1040: If your income was under the filing requirements (without the loss) it did not wipe it out. You still have it. See the worksheet in the 2004 instructions. You need to read the form very carefully, line by line. If your income (without the loss) was...

Tax Law (Questions About Taxes): Capital Gain / Loss question, long term capital gain, long term capital gains
long term capital gain, long term capital gains, stancil: Hemal, Thanks for your question. You can offset losses against capital gains plus an additional $3,000. So in your example, you can offset $4000 of loss against $8000 in gain and pay taxes on $4000. The rate is now 15% for long term capital gains....

Tax Law (Questions About Taxes): Capital Gain or Loss on Sale of house, short term capital gain, life estate
short term capital gain, life estate, cost basis: Kenny, Life estates can sometimes complicate matters, but I believe this one is reasonable to deal with. To help me best answer your question, was the person with the life estate your mother, step-mother or some other individual? Assuming this person...

Tax Law (Questions About Taxes): Capital Gain on New Construction, dilemna, dear john
dilemna, dear john, cost basis: Dear John, The rollover of profit thing went out YEARS ago.... The new law is inorder NOT to pay tax on capital gains, you must live in the house for 2 years before the date of sale and then if married you could have an exclusion of $500k..... If you sell...

Tax Law (Questions About Taxes): Capital Gain on Personal Home, capital gain tax, inconvience
capital gain tax, inconvience, free transaction: ok you have two posiblities for a tax free transaction if you stay in your present home for another six months you will have it made no tax I do not think you qualify as a job related as the safe harbour rules require a move of at least 50 miles and other...

Tax Law (Questions About Taxes): Capital Gain on Personal Residence Converted to Rental Property, party transaction, personal residence
party transaction, personal residence, stancil: Pam, Thanks for your question. Your basis if you convert it to rental property will be your cost or FMV at the time of conversion, whichever is lower. Therefore, your basis for depreciation would be $100,000 minus the value of the land. Selling the...

Tax Law (Questions About Taxes): Why Capital Gain on Real Estate, stancil, capital gain
stancil, capital gain, tax software: Kathy, Beats me. I can t come up with that number. Your gain should be Proceeds (54500 - 8400) minus basis (50500 -13847) which I get to be $9,447. Since the gain is less than the depreciation taken the entire amount is depreciation recapture taxed at...

Tax Law (Questions About Taxes): Capital Gain on S Corp Distributions, form 1120s, k lines
form 1120s, k lines, form 1065: Correct. But I find it hard to see how an S Corp could have such a distribution, unless funds were distributed from other investors accounts. In other words, all the shareholders have a basis in the corporation. If one receives a distribution in excess...

Tax Law (Questions About Taxes): Capital Gain on Sale of Personal Property, leasure activities, tax accountant
leasure activities, tax accountant, capital improvements: The cost basis for each spouse will be considered equally divided unless records show differently. The portion that was considered owned by the decedent will have a new cost basis of the fair market value of the property on the date of his death. The...

Tax Law (Questions About Taxes): Capital Gain on Selling the House, greater danger, capital gain
greater danger, capital gain, additional income: Since you sold the house in 2006, the sale needs to be reported for that year. Not amending the return carries a greater danger than the risk of an audit. Since you are reporting additional income, you should be fairly safe. Most likely Missouri will...

Tax Law (Questions About Taxes): Capital Gain on sale of homes, leat, unused portion
leat, unused portion, capital gain: You each get a $250,000 exclusion on each of your homes. But you cannot carry the unused portion to the other. For example - her gain is $100,000 and yours is $400,000. She can exclude $100,000 but your exclusion is limited to $250,000. You do not...

Tax Law (Questions About Taxes): Capital Gain from sale of residence, partial exclusion, maximum exclusion
partial exclusion, maximum exclusion, employment location: Margaret, Thanks for your question. In order to qualify for a partial exclusion on the sale of your house, you must make the move due to a change in employment. The question you must answer becomes Is this a move due to a change in employment? If...

Tax Law (Questions About Taxes): Capital Gain on the sale of subdivided land, short term capital gain, long term capital gain
short term capital gain, long term capital gain, family dwelling: Hi, If you deduct the $20,500 plus $500 for permits from $100,000, the gain is $79,000. You can add the property taxes paid over the years to your basis and so reduce your gain. I don t know what the $11,850 represents. I thought that you were going...

Tax Law (Questions About Taxes): Capital Gain Tax on First Home, capital gain taxes, income tax rates
capital gain taxes, income tax rates, long term capital gain: Hi, What you heard is not true. You need to own and live in it as your main home for 2 years to be able to exclude gain ($250,000 for singles, $500,000 if married filing jointly). But, if your move is for reasons of employment, health or certain unforeseen...

Tax Law (Questions About Taxes): Capital Gain Tax on Selling your own resedential house, capital gain tax, stancil
capital gain tax, stancil, federal tax: Ramesh, Thanks for your question. If you live in the house for 24 of the past 60 months as your primary residence, any gain up to $250,000 ($500,000 married filing jointly) is excluded from taxation. If you do not qualify, the Federal capital gain rate...

Tax Law (Questions About Taxes): Capital Gain Tax?, capital gain tax rate, capital gains tax rate
capital gain tax rate, capital gains tax rate, capital gain tax: Hi, I would consider a transfer for $1 a gift rather than a sale. Your basis in a gift is the basis of the donor (usually what the donor paid for it). The maximum long term capital gains tax rate is 15%. I ve never filed a NJ tax return so I don t...

Tax Law (Questions About Taxes): Capital Gain Taxation, unforeseen circumstances, health employment
unforeseen circumstances, health employment, taxable gain: Hi, If your mother owned and lived in the home as her main home for 2 years during the 5 years preceding the date of sale and has not excluded gain on another main home within 2 years, she can exclude $250,000 gain ($500,000 if married filing jointly)....

Tax Law (Questions About Taxes): Capital Gain Taxes previous primary res, capital gain taxes, capital gains taxes
capital gain taxes, capital gains taxes, capital gains tax: Hi, You may be able to exclude some of the gain but you can t avoid capital gains taxes by putting the money into a new home or a savings for your son s education. If you owned and lived in the home as your main home for 2 years during the 5 years...

Tax Law (Questions About Taxes): Capital Gain on Treasury Strip, maturity value, stancil
maturity value, stancil, capital gain: Tom, Thanks for your question. In theory, what you have stated is correct. However, it is probably that you bought the security at an amount that was less than the normal discount. If this is the case, interest plus cost would not total the maturity...

Tax Law (Questions About Taxes): Capital Gain tax, capital gain tax, lifetime gifts
capital gain tax, lifetime gifts, form 709: Steve, Thanks for your question. You will have to pay tax on your gain. Your gain is the proceeds minus your adjusted basis. Your adjusted basis is the original cost plus capital improvements minus depreciation. The portion of gain represented...

Tax Law (Questions About Taxes): Capital Gain tax Primary residence that is now used as a rental propoerty, capital gain tax, capital improvements
capital gain tax, capital improvements, interest deduction: Hi, If you sell the rental property next year you can exclude gain on the sale EXCEPT the amount of gain attributable to depreciation allowed (or allowable even if you don t take a deduction for depreciation). That is called Unrecaptured Section 1250 Gain...

Tax Law (Questions About Taxes): Capital Gain tax, capital gain taxes, capital gain tax
capital gain taxes, capital gain tax, unforeseen circumstance: Hi, Technically to exclude gain you must have owned and lived in the home as your main home for 2 years during the 5 years preceeding the date of sale and you can t have excluded gain on another main home within 2 years. But if your move was for reasons...

Tax Law (Questions About Taxes): Capital Gain taxes on residence, capital gain taxes, depreciation
capital gain taxes, depreciation, equity loan: If you sell your present home within 3 years after moving out, you can exclude the gain up to $500,000. HOWEVER, if you rent it out, you will pay tax on the depreciation allowed or allowable. It does not matter what you do with the money. Helen, EA in...

Tax Law (Questions About Taxes): Capital Gain, sole heir, capital improvements
sole heir, capital improvements, cost basis: Hi JoAnn, You use her basis if you are selling it at a gain because she gave you the house. Should you be selling it at a loss your basis is the lesser of her basis or the fair market value of the property at the time of the gift. Any loss would not be...

Tax Law (Questions About Taxes): Capital Gaines taxes if relocating, capital gains, relocation
capital gains, relocation, job: It does no look that your move would even qualify for job related but by june 2006 you will have 22 or 23 months in the Florida home which apears to have been yor residence so if you sell after 24 months of residence you will avoid having a taxable a gain...

Tax Law (Questions About Taxes): Capital Gaines, capital gains tax, donna donna
capital gains tax, donna donna, principal residence: Donna congratulations on a good deal If the half of the residence was your principal residence there should not be a tax as 250,000 gain on sale of your principal residence would be excluded or Else you will have a capital gains tax of 15% and I...

Tax Law (Questions About Taxes): Capital Gains, loss carryovers, worthless stock
loss carryovers, worthless stock, paying taxes: First congratulations on your daughters and that inteligent move This would be a good time to use past loss carryovers you may still have and sell any stocks were you have a loss You can ofset the whole gain if you have losses(however if you still...

Tax Law (Questions About Taxes): Capital Gains, capital gains tax, fastest growing cities
capital gains tax, fastest growing cities, st lucie florida: Dear Sal, If you sell the condo that you have lived in for the past 5 years, you could take the exemption of $250k if filing a tax return as single or $500k if you file your tax return as Married filing joint.... The condo that you do not live in and never...

Tax Law (Questions About Taxes): Capital Gains, capital gains tax, tax brackets
capital gains tax, tax brackets, maximum tax: Hi, The maximum capital gains tax is 15%, 5% if you are in the 10% or 15% tax brackets. Your capital gain plus your regular income will push you into a higher bracket but the maximum tax on the capital gain is still 15%: part of it will be taxed at 5%...

Tax Law (Questions About Taxes): Capital Gains, relocation company, company states
relocation company, company states, stancil: Eric, Thanks for your question. I presume you lived in the house as your main home for that 4 year period. If this is the case, you will not have to pay tax on the gain. Current law allows a married couple to exclude up to $500,000 in gain on the sale...

Tax Law (Questions About Taxes): Capital Gains, paul thanks, stancil
paul thanks, stancil, money in the bank: Paul, Thanks for your question. You have been misinformed. The previous law, which was replaced in 1987 provided that if you sold your home then purchased a new home of equal or greater value, you would not owe tax on the gain from the sale of the old...

Tax Law (Questions About Taxes): Capital Gains, capital gains exclusion, joint tenant
capital gains exclusion, joint tenant, ea: The only way to add someone onto the home is to do it now and then live in it for another 2 years. You can do whatever you want to do with your profit, the one thing you must do is pay taxes on it. Any gifting will not reduce those. Helen, EA in P...

Tax Law (Questions About Taxes): Capital Gains, stancil, principal residence
stancil, principal residence, capital gain: Hermione, Thanks for your question. As does not affect capital gains in any way. At one time there was a one-time exclusion on gain of the sale of your principal residence if over 55, but that was repealed in 1986 (I think) in favor of the current law...

Tax Law (Questions About Taxes): Capital Gains, capital gains tax, stancil
capital gains tax, stancil, taxable gain: No, it would not be taxable. The repayment of a debt does not result in taxable gain or loss unless an amount other than the original principal is repaid. For example, if the debt was $20,000 and they paid you $15,000 in settlement (not considering any interest)...

Tax Law (Questions About Taxes): Capital Gains, long term capital gain, partial exclusion
long term capital gain, partial exclusion, unforeseen circumstances: Hi, Reinvesting in another home no longer allows you to defer gain. In order to exclude gain you must have owned and lived in the home as your main home for 2 years during the 5 years preceeding the date of sale. The time you lived in it prior to the...

Tax Law (Questions About Taxes): Capital Gains, california residence, home hope
california residence, home hope, stancil: Jay, Thanks for your question. I presume your Mom is not filing a joint return. She can exclude up to $250,000 of gain, not selling price. To determine her gain you subtract her cost basis from the proceeds of the sale. Any gain in excess of $250,000...

Tax Law (Questions About Taxes): Capital Gains, capital gain taxes, irs gov
capital gain taxes, irs gov, publication 523: Dear Michael, If she lived in this condo as her MAIN home for 2 of the past 5 years and she sells it, and you 2 file your tax return as married filing joint, then the first $500,000.00 is exempt from capital gains.... If she did not live in it the required...

Tax Law (Questions About Taxes): Capital Gains, captal gains tax, sole beneficiary
captal gains tax, sole beneficiary, assets and liabilities: Brandi, Thanks for your question. I can t answer the portion about the percentage of ownership due to her living in TN. I am not familiar with how that aspect of the Tennessee laws affect the federal tax laws. Whatever portion she inherited would...

Tax Law (Questions About Taxes): Capital Gains, stancil, capital gain
stancil, capital gain, capital gains: Billye Jo, Thanks for your question. Since you have not owned the home and lived in it as your main home for 24 of the past 60 months, you will have to pay tax on the gain. If you have owned it more than 12 months, it will be taxed at capital gain rates,...

Tax Law (Questions About Taxes): Capital Gains, long term capital gain, unforeseen circumstances
long term capital gain, unforeseen circumstances, health employment: Hi, If your move is for reasons of health, employment or certain unforeseen circumstances, you could qualify for a reduced exclusion. The calculation is based on the number of days you owned and lived in the home as your main home compared to the number...

Tax Law (Questions About Taxes): Capital Gains, long term capital gains, capital gains taxes
long term capital gains, capital gains taxes, capital gains tax: Hi, I m not sure why but I never received the second message. Since you didn t inherit the property but, rather, inherited the money which you used to purchase it, your basis is $25,000. If you had to make capital improvements to the land you can add...

Tax Law (Questions About Taxes): Capital Gains, cost basis, tax preparer
cost basis, tax preparer, capital gains: Hi, If she can establish her cost basis in the stock she will pay taxes only on the gain. Her cost basis is the donor s basis at the time of the gift. Usually cost basis is what was paid for the stock. If she can t establish her basis the tax preparer...

Tax Law (Questions About Taxes): Capital Gains, mike thanks, stancil
mike thanks, stancil, capital gains tax: Mike, Thanks for your question. You would be taxed on the gain from the sale since you have not owned and lived in the house as your main home for 24 of the past 60 months. Tax on $50,000 of gain would be $7,500. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Capital Gains, unforeseen circumstances, elderly mother
unforeseen circumstances, elderly mother, state job: Hi, Your move may be for reasons of employment but her move could be considered to be for reasons of health, which is one of the exceptions for claiming a reduced exclusion. The other exception is unforeseen circumstances which could also fit her situation....

Tax Law (Questions About Taxes): Capital Gains, capital gains, selling a home
capital gains, selling a home, 20k: As long as you did not have any business use of your home or rent it out, you will owe no taxes on any gain. What you paid down on it has nothing to do with nothing, your gain (in your case your loss) is 380 plus 20 of improvements for a basis of $400K and...

Tax Law (Questions About Taxes): Capital Gains, capital gains and losses, 1031 exchange
capital gains and losses, 1031 exchange, 10 months: Lee: Yes the time has passed and with this property. The risk are great since illegal fits in the transaction. On the practical side if some one purchases and sells capital gains and losses comes to play so does intent. No I would not do this transaction...

Tax Law (Questions About Taxes): Capital Gains, hardship case, financial hardship
hardship case, financial hardship, tax professional: You may have a problem in that you were the only one working when you bought it. If you both were working at the time you purchased it and one was then laid off, your case would be much, much better. Depending on the amount of the gain, I would strongly...

Tax Law (Questions About Taxes): Capital Gains for 2nd Home, capital gains tax, mike thanks
capital gains tax, mike thanks, stancil: Mike, Thanks for your question. You gain is the proceeds from the sale minus your basis. Your basis in the condo is the purchase price minus any depreciation while a rental unit. You will have to pay tax, at ordinary rates, on any gain up to the...

Tax Law (Questions About Taxes): Capital Gains, sofa loveseat, snow blower
sofa loveseat, snow blower, lawn mower: Hello, An improvement can be added. Security system seems ok. The window treatments may be more similar to maintenance than an improvement. However, it may be considered a cost of sale. Although not an improvement the furniture, snow blower and lawn...

Tax Law (Questions About Taxes): Capital Gains, capital gains tax, stancil
capital gains tax, stancil, cost basis: Angela, Thanks for your question. I have never heard of an escrow company doing that. Most likely you could sign a waiver and not have any withholding. What they are taking out IS withholding, you will still need to report the sale on your tax return...

Tax Law (Questions About Taxes): Capital Gains, mom stepdad, california probate
mom stepdad, california probate, house tax: Susan, Owning a property under joint tenancy with right of survivorship works if the intent is to avoid probate, but it does have negative tax consequences. Joint tenancy is not recommended for people who own assets that can increase in value, such as...

Tax Law (Questions About Taxes): Capital Gains, timely advice, incorrect answers
timely advice, incorrect answers, bad advice: A Friend: Thank you for your needed and timely advice. I will refresh my knowledge of the sale of a home. I have not dealt with that in about 5 years. I know there is an exclusion on the sale of a home but always refrained from giving bottom and top...

Tax Law (Questions About Taxes): Capital Gains, sofa loveseat, snow blower
sofa loveseat, snow blower, lawn mower: Hi, Only the security system would be included in the cost of your home. The other items are not improvements to the home but could be considered as expenses of the sale and reduce the amount realized. I say could because an auditor might disallow the...

Tax Law (Questions About Taxes): Capital Gains, sofa loveseat, capital improvements
sofa loveseat, capital improvements, stancil: Simmi, Thanks for your question. You can include the cost of capital improvements, but not routine maintenance items. As for the add-ins, since these are personal items you have used, you can include the fair market value as of date of sale in your...

Tax Law (Questions About Taxes): Capital Gains, s corp, substantial gain
s corp, substantial gain, c corp: Manny, Thanks for your question. The profits of an S Corp flow through to the owners and retain their character. Therefore, you would pay tax on the gains realized from the sale of these assets. There may be some depreciation recapture, which would...

Tax Law (Questions About Taxes): Capital Gains, charles snyder, form 1041
charles snyder, form 1041, paying taxes: Hello, A 0% tax rate replaces the 5% rate for tax years after 12/31/07. An estate reports taxable income from the sale of securities on form 1041, Fiduciary. Valuation at date of passing or the alternate valuation date (6 months after) if timely elected...

Tax Law (Questions About Taxes): Capital Gains, long term capital gain, capital gains taxes
long term capital gain, capital gains taxes, real estate transactions: the actual tax will be be due next April 15 however there will be estimated taxes due October 15 and January 15 there are various rules and safe harbors I would suggest that if you wish to retain the cash you complete the form 2250( underpayment penalty)...

Tax Law (Questions About Taxes): Capital Gains, capital gains taxes, st lucie florida
capital gains taxes, st lucie florida, port st lucie florida: I would sell the residence as there would be no capital gain on that transaction due to th $250,000 exclussion on gain on sale of principal residence . As to the rental property it seeems it is appreciating nicely so why liquidate and pay tax on it. ...

Tax Law (Questions About Taxes): Capital Gains Calc Net Loss, loss column, stancil
loss column, stancil, description column: Nathan, Congratulations! I have never seen a question like that. I tried that on my program, TaxAct, and it did allow me to show negative proceeds. What I am about to tell you are only suggestions. I would first try to override the cell and place...

Tax Law (Questions About Taxes): Capital Gains Calc Net Loss, ameritrade, cost basis
ameritrade, cost basis, tax software: Hi Nathan, You could file a paper return so you could fill in the negative sales price but I would adjust the basis to equal a $0 sales price. Every once in a while I run into a situation similar to this - something I can do on paper but the computer won...

Tax Law (Questions About Taxes): Capital Gains Colorado, legal answer, good faith
legal answer, good faith, wonderful man: Ronna: I am sorry but that transaction is in my opinion illegal. Therefore, I can not in good faith provide a situation that would allow you to get around the tax liability already incurred. Notice I am not an attorney and do not provide legal advice...

Tax Law (Questions About Taxes): Capital Gains for a Corporation, income tax rates, payroll taxes
income tax rates, payroll taxes, payroll tax: For individuals it is important to separate out the types of income received, since each type of income is subject to different taxes, Personal Income is subject to income tax, and payroll tax, passive income and short term gains are subject to income taxes....

Tax Law (Questions About Taxes): Capital Gains & Disability, irs gov, short term disabilty
irs gov, short term disabilty, disability income: Dear Kellie, You need to go to www.irs.gov and download publication #523 which will tell you every thing you need to know and more about the sell of your home, capital gains, how diability affects any of that and there are other publications that tell you...

Tax Law (Questions About Taxes): Capital Gains Exemption on Home Sale, tax reform act, capital gains exemption
tax reform act, capital gains exemption, stancil: Tracy, Thanks for your question. The law about reinvesting the proceeds from the sale of your house no longer applies. It was repealed in a previous tax reform act. The current law states that you may exclude up to $250,000 ($500,000 if married filing...

Tax Law (Questions About Taxes): Capital Gains Exemption & Purchasing Property, capital gains exemption
capital gains exemption: Mag: You must have live in the house 3 of the last 5 years. If you have owned the house and have not lived in it. You still must have lived in that house (Condo) 3 of the last 5 years. Capital gains only apply for capital gains and it is 1 year owned...

Tax Law (Questions About Taxes): Capital Gains/Gift Tax, stepped up basis, stancil
stepped up basis, stancil, taxable gain: No, you have deducted the cost plus the adjusted basis. If you purchase the house at $500,000 they subtract the basis of $282,500 for a gain of $212,500. Since this is under the $250,000 exclusion amount, there is no taxable gain. Hope this helps. ...

Tax Law (Questions About Taxes): Capital Gains / gift from parents, capital gains taxes, capital improvements
capital gains taxes, capital improvements, cost basis: Hi Brent, Gifts are not taxable to the recipient so there is nothing for you to claim. There isn t any way to avoid paying capital gains taxes on the sale of the home unless you own and live in it for 2 years as your main home. If you paid nothing for...

Tax Law (Questions About Taxes): Capital Gains on Home Sales, wife going to Law School, capital gains on home sales, unforeseen circumstances
capital gains on home sales, unforeseen circumstances, health employment: Hi, To exclude gain on the sale of your main home you must have owned and lived in it as your main home for 2 years during the 5 years preceeding the date of sale and cannot have excluded gain on another main home within 2 years. (From your question I...

Tax Law (Questions About Taxes): Capital Gains on Home sale, with change of employer, capital gains on home sale, form 3903
capital gains on home sale, form 3903, time rule: Jasen, you are the first to have this question! Well, probably not, but one of the few. I m going to have to say that your move was not work related, so that you may have to pay taxes on your gain. My reasoning is we have to use form 3903 (moving expenses)...

Tax Law (Questions About Taxes): Capital Gains: Home sale, unforeseen circumstance, unforeseen circumstances
unforeseen circumstance, unforeseen circumstances, time homeowner: Dar Andy, The publication you need is Publication #523 not #535........ Still this is going to be a GRAY area and you need to read the publication #523 carefully and look carefully at the rules for UNFORSEEN circumstances.... Also if you feel you...

Tax Law (Questions About Taxes): Capital Gains on House Sale, capital gains on house sale, purchase mortgage
capital gains on house sale, purchase mortgage, renting a home: Jeremy you are not over complicating you better be sure to buy this week the moving in would not work , must be principal residence,you can sign a purchase mortgage what i am more concerned with is the family transaction is it fair market or is it to avoid...

Tax Law (Questions About Taxes): Capital Gains on House Sale, capital gains on house sale, irs publication
capital gains on house sale, irs publication, publication 523: Hi Jeremy. According to IRS Publication 523: The required 2 years of ownership and use during the 5-year period ending on the date of the sale do not have to be continuous. You meet the tests if you can show that you owned and lived in the property as...

Tax Law (Questions About Taxes): Capital Gains on House sale, capital gains on house sale, capital gains rate
capital gains on house sale, capital gains rate, changing jobs: The rule is any part of 24 of the past 60 months qualifies you, so Aug 1 would make 24 months. The move must be due to a change in employment. In this case your move is for going to school. Very grey area, probably would not qualify. If you were...

Tax Law (Questions About Taxes): Capital Gains on house, renting a home, stepfather
renting a home, stepfather, capital gains: Jeremy: If your stepfather turned the property into rental property and he sells the house he is entitled to claim the sale as a captial gain occurrance. He will only have to pay tax on the gain that is what he sales it for less what he paid for it. His...

Tax Law (Questions About Taxes): Capital Gains Impact on sale of Primary Residence, federal tax liability, health reasons
federal tax liability, health reasons, cost basis: Hi, Since she has owned and lived in the house as her main home for 2 years preceding the date of sale and has not excluded gain on another main within 2 years, she can exlucde $250,000 gain on the sale. That means she will not have any Federal tax liability...

Tax Law (Questions About Taxes): Capital Gains on Investment Property, 1031 like kind exchange, capital gains on investment property
1031 like kind exchange, capital gains on investment property, jennifer thanks: Jennifer, Thanks for your question. If you sell the property, you will pay tax on the entire gain regardless of what you do with the proceeds. In order to avoid tax on the gain, you would have to execute a 1031 Like Kind Exchange in which you trade...

Tax Law (Questions About Taxes): Capital Gains & LLC, trading stock options, capital gains and losses
trading stock options, capital gains and losses, short term capital gains: Bill Capital gains and losses are reported separately Partnership expenses are reported as ordinary or some other classification. specifically, in the case of software if it was purchased off the shelf they are expensed on the other hand if the software...

Tax Law (Questions About Taxes): Capital Gains Own/Use Requirement, stancil, claim deed
stancil, claim deed, health reasons: Marina, Thanks for your quesiton. Part 1 - He must own the house for 24 of the past 60 months. Since he does not qualify for the entire house, he cannot claim a full exemption and you are liable for taxes on your part of the gain. Part 2 - If he...

Tax Law (Questions About Taxes): Capital Gains Primary Home, capital gains taxes, bedroom townhouse
capital gains taxes, bedroom townhouse, substantial gain: Sorry, Kris, the time to ask was BEFORE you sold. You will owe federal tax in the amount of 15% on the gain and whatever your state charges. Had you stayed in the house just 4 more months (and asked before you sold) you would owe nothing. Call it...

Tax Law (Questions About Taxes): Capital Gains on Property, capital gains tax rate, capital gains on property
capital gains tax rate, capital gains on property, capital gains rate: Brian: You have one lifetime exemption on the sale of a home. In order to call it a home you must have lived in it 3 of the last 5 years. Two types of capital gains. Long term is any assest held over 6 months. Short term is anything 6 months or less....

Tax Law (Questions About Taxes): Capital Gains Property, capital gains taxes, amy thanks
capital gains taxes, amy thanks, maximum exclusion: Amy, Thanks for your question. I presume you mean you purchased the house in October 05. Selling your home due to a job change will allow you to receive a reduced exclusion. If you are married filing joint, the maximum gain you can exclude is $500,000...

Tax Law (Questions About Taxes): Capital Gains on primary residence, capital gains tax, capital gains on primary residence
capital gains tax, capital gains on primary residence, capital improvements: Erica, Thanks for your question. Since you have not owned and lived in the house as your principal residence for 24 of th past 60 months, and do not appear to meet an exception, you would pay tax, at capital gain rates, on the profit. Your profit is...

Tax Law (Questions About Taxes): Capital Gains on primary residence, capital gains on primary residence, maximum exclusion
capital gains on primary residence, maximum exclusion, stancil: Joseph, Thanks for your question. You can avoid capital gains by owning the home and living in it as your principal residence for 2 of the past 5 years. This excludes up to $500,000 ($250,000 if single or married filing separate) of gain. If the...

Tax Law (Questions About Taxes): Capital Gains Question, long term capital gain, capital gain tax
long term capital gain, capital gain tax, cocoa florida: Hi Nick Yes buying another property has no tax benefit anymore the rules have changed the long term capital gain tax is 15% If you can put the property back in his mame and sell it it would save you the tax if has lived in the property for 24 months...

Tax Law (Questions About Taxes): Capital Gains Question, tax headache, cocoa florida
tax headache, cocoa florida, capital gains tax: Dear Nick, You DID create yourself a tax headache.... #1... Yes, you will have to report this on the schedule-D since you have NOT lived in it as a main home and you WILL pay tax on the capital gains of that property.... #2... NO, you have created...

Tax Law (Questions About Taxes): Capital Gains Question, cocoa florida, capital gains tax
cocoa florida, capital gains tax, elderly father: Nick, if you sell the home, you owe capital gains, no matter what you do with the proceeds. And your basis is Dad s basis. Had he sold the home, there would have been no taxes to pay. Since I m assuming it has been less than a year that you did the transfer,...

Tax Law (Questions About Taxes): Capital Gains Question, short term capital gain, principal place of residence
short term capital gain, principal place of residence, cocoa florida: Nick, Thanks for your question. Since the condo does not qualify as your principal place of residence you will owe tax at capital gain rates on the gain. Your gain is determined by subtracting your father s basis from the sale proceeds. If you have...

Tax Law (Questions About Taxes): Capital Gains Question, terminal lung cancer, form 709
terminal lung cancer, form 709, entirity: The gift tax return is Form 709. If possible you may wish to undo the transfer of title to you (if possible) and leave it in his name. Or transfer the property back to him in its entirity. Then sell the property after his death. If you inherit the property,...

Tax Law (Questions About Taxes): Capital Gains Question, cocoa florida, capital gains tax
cocoa florida, capital gains tax, elderly father: Mr. Skaggs: You may have more than a capital gains problem. (1) Gift Tax (2) If you have power of attorney over your father and you have gifted yourself all his assest that maybe a legal problem (3) then capital gains problem. You may need to see...

Tax Law (Questions About Taxes): Capital Gains Question, marginal tax bracket, social security check
marginal tax bracket, social security check, long term capital gains: Lisa, Thanks for your question. First, the capital gain rate is 5 or 15% depending on her marginal tax bracket. If she is in the 10-15% bracket she pays 5%, if 25% or above, it is 15%. With gains of that size, however, at least a portion will be taxed...

Tax Law (Questions About Taxes): Capital Gains Question, state tax rates, cocoa florida
state tax rates, cocoa florida, capital gains tax: Well. As you have realized; best option would be for you (as trustee)to have sold the condo while it was in his name. He would have had a tax exemption on up to $250,000 in gain, and no tax would be due. Putting it back into his name would probably avoid...

Tax Law (Questions About Taxes): Capital Gains on Real Eatate, section 121 exclusion, real eatate
section 121 exclusion, real eatate, capital improvements: Margaret, Thanks for your question. The first house would no longer qualify as your primary residence as you have not lived in it for 2 of the last five years. It is calculated on a monthly basis. It has been 3+ years since you moved. Your gain will...

Tax Law (Questions About Taxes): Capital Gains and Rental Property, capital gains exemption, brentwood california
capital gains exemption, brentwood california, rental property: Cj: The test is did you live in the house 3 of the last five years then it becomes an income producing rental property rather than a second home. However, the borrowing of the equity to purchase the current home is not a taxed event until you sell the...

Tax Law (Questions About Taxes): Capital Gains on a Rental property, mortgage interest payments, www irs gov
mortgage interest payments, www irs gov, form 4952: Not really. If it is not an active rental, it is just investment property and as such, the interest paid on it would only be deductible up to your qualified investment income. So if you have $300 of investment income for the year, only $300 of the mortgage...

Tax Law (Questions About Taxes): Capital Gains on Sale of Home in California, capital gains on sale of home, social security disability
capital gains on sale of home, social security disability, pool fence: Erik, Thanks for your question. The original basis was the purchase price in 1982. You can add to that any capital expenditures such as pool, fence, addtion, etc. When your dad died in 1999, your mom inherited his half of the house. Her basis is now...

Tax Law (Questions About Taxes): Capital Gains on Sale of our home, 1031 like kind exchange, married couples
1031 like kind exchange, married couples, present law: Padma, Thanks for your question. The current law gives you a $500,000 exemption on gains from the sale of your main home. The old law exempted gains on the sale of a house if you bought a replacement residence equal to or greater than the selling...

Tax Law (Questions About Taxes): Capital Gains on Sale of Rental property, capital gain tax rate, franchise tax board
capital gain tax rate, franchise tax board, capital gains rate: Hi, If you owned and lived in the condo as your main home for 2 years during the 5 years preceeding the date of sale, you can exclude $250,000 of gain. If it wasn t your main home, the Federal long term capital gains rate is a maximum of 15%. But adding...

Tax Law (Questions About Taxes): Capital Gains / Social Security Tax on Sale of Company, self employment tax, social security tax
self employment tax, social security tax, personal lawyer: Jerry, Without the stock purchase and other agreements to review, it s really difficult to give you a good answer. Has your attorney reviewed these documents or advised you along the way? Did you ultimately give up your stock as a result of these transactions....

Tax Law (Questions About Taxes): Capital Gains--Sorry! :), long term capital gain, 366 days
long term capital gain, 366 days, household income: You have held the house for more than 366 days so you have a long term capital gain taxed at 15% so it will cost you $6000 enjoy your vacation while Florida is lovely and has no income tax it may be nice to get away in the summer good luck in your...

Tax Law (Questions About Taxes): Capital Gains - Stock Sale, stock account, share basis
stock account, share basis, stock split: Sorry, Pat, your basis is NOT the value of the stock on the date of the gift. It is exactly what the giver paid for it when they were collecting it. And if that is not known, your basis is zero. As for the splits, if you have 1 share at $10 and it splits...

Tax Law (Questions About Taxes): Capital Gains safe harbor, capital gains tax, safe harbor
capital gains tax, safe harbor, cost of living: Hi, If your job doesn t require you to move then you wouldn t be able to use a reduced exclusion. Try to hang on for another year and you can exclude $250,000 gain on the sale of your main home ($500,000 if married filing jointly). Regards, Carol...

Tax Law (Questions About Taxes): Capital Gains on sale of duplex, lived in one half, duplex, capital gains
duplex, capital gains, depreciation: Hi, Good job in calculating your gain on the rental. And, of course, you can exclude the gain on the part you lived in. Since you can exclude gain on only one main home and the duplex units are clearly separate from each other, it wouldn t do you...

Tax Law (Questions About Taxes): Capital Gains on sale of house, toronto ontario canada, capital gains on sale of house
toronto ontario canada, capital gains on sale of house, david brewer: Hi, For a time you could exclude gain on only one home in your lifetime. But about 1997, they changed the law to allow you to exclude gain every 2 years. It makes no difference what you do with the money. I don t know anything about Canadian tax law...

Tax Law (Questions About Taxes): Capital Gains on sale of house, income tax purposes, toronto ontario canada
income tax purposes, toronto ontario canada, capital gains on sale of house: That changes things. You cannot exclude the part of the gain equal to the depreciation that you claimed or oculd have claimed for the rental activity. This portion of the gain is sub ject to tax at ordinary income rates, and must be reported on Form 4797....

Tax Law (Questions About Taxes): Capital Gains on sale of house, toronto ontario canada, capital gains on sale of house
toronto ontario canada, capital gains on sale of house, helen david: Not really. While you can exclude the entire gain, you MUST pay taxes (up to 25%) on the depreciation allowed or allowable on those rental rooms. Allowed or allowable means you pay tax whether you claimed depreciation or not - you still owe taxes. PA...

Tax Law (Questions About Taxes): Capital Gains sale of a house, irs pub, capital gains
irs pub, capital gains, single woman: No, he must meet the use test and he cannot. From the IRS pub - You can exclude up to $500,000 of the gain on the sale of your main home if all of the following are true. You are married and file a joint return for the year. Either you or your spouse...

Tax Law (Questions About Taxes): Capital Gains-sale of houses, maximum tax rate, depreciation
maximum tax rate, depreciation, capital gains: Hi Mark, The gain on the sale of the former rental property attributable to depreciation allowed (or allowable) is taxed as Unrecaptured Section 1250 gain at a maximum tax rate of 25%. If the depreciation amount exceeds the total gain, only the total gain...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, odd ball
capital gains tax, odd ball, togather: Dear Ricky, IF you can prove that you owned this house (even jointly with your brother) and lived in this house for the 2 out of the past 5 years, then you will have no problem taking the exclusion.... Just remember that the 5 year period ends on the DATE...

Tax Law (Questions About Taxes): Capital Gains Tax, long term capital gain, capital gains tax
long term capital gain, capital gains tax, long term capital: Hi, Unless your mom is planning to sell the rest of the property, including her home, within 2 years, she will have a long term capital gain on which she will pay taxes. Her gain is the difference between the selling price (less expenses of the sale) and...

Tax Law (Questions About Taxes): Capital Gains Tax, long term capital gain, capital gains taxes
long term capital gain, capital gains taxes, capital gains tax: Hi, You can only exclude gain on the sale of your main home. You can defer taxation of gain on a property by entering into a non-taxable exchange for another property but only if it is business property - i.e., exchange of a property for a rental or business...

Tax Law (Questions About Taxes): Capital Gains Tax?, capital gains tax, tax consequences
capital gains tax, tax consequences, 7 months: Hi, Since he is moving for employment reasons, he would be able to exclude gain on the sale. The maximum excludable gain is $250,000 but his reduced excludable gain would be around $70,000. The actual calculation is based on the number of days he owned...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, odd ball
capital gains tax, odd ball, togather: Hi, The fact that your ownership was split with your brother would not preclude you from taking the exclusion assuming that your name was on the deed and the mortgage. You need 24 months of ownership and 24 months of living in the home as your main home....

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, quetion
capital gains tax, quetion, principal residence: Crystal, Thanks for your quetion. The ownership and use test specifies that you must own and live in the house as your principal residence for 24 of the past 60 months. As you did not own the home for the requried 24 months, you will have to pay tax,...

Tax Law (Questions About Taxes): Capital Gains Tax, cap gains tax, capital gains tax
cap gains tax, capital gains tax, stancil: Marti, Thanks for your question. You can take the $500,000 exemption if the following conditions are met: 1. You are married and file a joint return for the year. 2. Either you or your spouse meets the ownership test. 3. Both you and your spouse...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains taxes, capital gains tax
capital gains taxes, capital gains tax, unforeseen circumstances: Hi, To exclude gain on the sale of your main home you must have owned and lived in it as your main home for 2 years during the 5 years preceeding the date of sale. If your name was added when you married, the 2 year countdown starts then. The maximum...

Tax Law (Questions About Taxes): Capital Gains Tax, income tax liability, lifetime gifts
income tax liability, lifetime gifts, capital gains tax: Cory, Thanks for your question. Since this is a related party transaction, it will be regarded as a gift for the difference between the sale price and the fair market value. If the value of the gift exceeds $12,000 per person, there will be a taxable...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, stancil
capital gains tax, stancil, 1031 exchange: Cameron, Thanks for your question. To have a 1031 exchange, there must be an exchange of properties, not a sale. If she acquired your property she would have to give you like-kind property in exchange. Since a sale of her property has already occurred,...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, taxable gain
capital gains tax, taxable gain, adjusted basis: Erin, Thanks for your question. Your mother s will owe taxes on the gain from the sale of the condo. Her basis is the basis that her mother had in the condo when it was given to her. Since it was used as a rental unit, the basis needs to be reduced...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, land in california
capital gains tax, land in california, kim kim: Kim, Thanks for your question. If you have owned the property in CA for over 12 months the gain will be taxed at 5 or 15 perecent depending on your income level. If you have owned it for less than 12 months, it will be taxed as ordinary income which...

Tax Law (Questions About Taxes): Capital Gains Tax Exemption Frequency, capital gains tax exemption, capital gains tax
capital gains tax exemption, capital gains tax, gain exemption: June, Thanks for your question. You can only take the exemption once every two years. Since he sold his home this year, he alone could take the exemption on his home ($250,000). Then you alone could take the exemption on your home ($250,000) next year...

Tax Law (Questions About Taxes): Capital Gains Tax on Investment Property After Divorce, marginal tax bracket, capital gains tax on investment property
marginal tax bracket, capital gains tax on investment property, capital gains tax: Josette, Thanks for your question. Probably not an astronomical tax. If her move was due to a change in her employment situation, she is eligible for a reduced maximum exclusion. To determine this take the number of months she lived in the house as...

Tax Law (Questions About Taxes): Capital Gains Tax on a investment property, capital gains tax, form 1040 schedule e
capital gains tax, form 1040 schedule e, income bracket: Dear Robert, If you have been RENTING this house then you will have to follow the instructions for it s sale per form 1040 schedule-E.... If you have not been renting this house and it has just set there, then no matter how many years you have held this...

Tax Law (Questions About Taxes): Capital Gains Tax on Land Sale, ohio state taxes, capital gain tax
ohio state taxes, capital gain tax, capital gains taxes: Frank, Thanks for your question. 1.The costs of acquiring the property add to your cost basis in the land. However, only the closing costs are considered as acquisition costs. 2. Property taxes paid are deductible on Schedule A. 3. You would...

Tax Law (Questions About Taxes): Capital Gains Tax on land, capital gains tax, school questions
capital gains tax, school questions, tax percentage: Shari, Thanks for your question. Your capital gain percentage would be 15. No breaks for students earning zero income. The credit you get for owning the property for over two years is the capital gain rate of 15. The maintenance is not deductible....

Tax Law (Questions About Taxes): Capital Gains Tax on a piece of land, dana dana, long term capital gain
dana dana, long term capital gain, capital gains tax: Dana, Thanks for your question. What you do with the proceeds of the sale does not affect the taxability of the transaction. If you have a sale, taxes must be paid. If you sell the lot for $200,000 you have a gain of $180,000 (property taxes you...

Tax Law (Questions About Taxes): Capital Gains Tax (property in India), state bank of india, property in india
state bank of india, property in india, capital gains tax: Parthasarathy, Thanks for your question. As a US Citizen or resident you are subject to US taxes on all your worldwide income, from whatever source. Your tax will be based on the gain from the sale. This is rproted o Schedule E. However, you will...

Tax Law (Questions About Taxes): Capital Gains Tax on Real Estate, capital gains tax on real estate, capital gains tax
capital gains tax on real estate, capital gains tax, stancil: Heather, Thanks for your question. Since you are selling the house due to a change in the place of employment, you are entitled to a reduced exclusion amount. This amount is based on the number of months you lived in the house as your main home divided...

Tax Law (Questions About Taxes): Capital Gains Tax on Real Estate, capital gains tax, capital gains tax on real estate
capital gains tax, capital gains tax on real estate, stancil: Toni, Thanks for your question. You don t state if the house you are selling is your prinicpal residence, and has been for 24 of the past 60 months. If so, none of the $118,500 gain will be subject to tax. If the house does not qualify as your principal...

Tax Law (Questions About Taxes): Capital Gains on Real Estate Reinvestment, irs pubs, capital gains on real estate
irs pubs, capital gains on real estate, www irs gov: Hi Erik, What they re referring to is a Like-Kind Exchange. With such an exchange no gain or loss is recognized if property held for productive use in trade or business or for investment is exchanged solely for property of a like kind to be held either...

Tax Law (Questions About Taxes): Capital Gains Tax on Sale of Home, long term capital gain, laguna hills ca
long term capital gain, laguna hills ca, capital gains tax: Hi, If you owned and lived in the Georgia home as your main home for 2 years during the 5 years preceding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 gain ($500,000 if married filing jointly)....

Tax Law (Questions About Taxes): Capital Gains Tax on Sale of Rental Property, adjusted gross income, payroll withholding
adjusted gross income, payroll withholding, capital gains tax: Michael, It depends on a couple things. First it will depend on how much your gain is and much the gain will increase your adjusted gross income for 2007. If your adjusted gross income will be under $150,000 (with the gain), you will need to pay in...

Tax Law (Questions About Taxes): Capital Gains Tax on Sale of Home, long term capital gains, capital gains taxes
long term capital gains, capital gains taxes, capital gains tax: Hi, When you move for employment reasons, your reduced exclusion is calculated by comparing the number of days in 2 years to the number of days you owned and lived in the home as your main home. Assuming you are single, the full exclusion is $250,000....

Tax Law (Questions About Taxes): Capital Gains Tax while separated, social security number, capital gains tax
social security number, capital gains tax, stock sales: Beth, Before you file married filing separate tax returns, I might reconsider filing a joint return if you are still married on 12/31/07. Filing separately is almost never more advantageous. Ninety-five percent or more of the time, filing jointly will...

Tax Law (Questions About Taxes): Capital Gains Tax on vacant land, marginal tax bracket, long term capital gain
marginal tax bracket, long term capital gain, sewer structures: The only thing you can add to the cost of the land is the cost of any permanent improvements - sidewalks, sewer, structures that you paid for. Maintenance is just an ongoing cost and is not considered as additions to basis. The long term capital gain rate...

Tax Law (Questions About Taxes): Capital Gains Tax, capital gains tax, odd ball
capital gains tax, odd ball, stancil: Ricky, Thanks for your question. Based on what you have told me it does not appear that you lived in the house, and been the owner, for 24 of the past 60 months. If this is the case, you will be subject to tax, at the capital gain rate on the profit....

Tax Law (Questions About Taxes): Capital Gains Taxes, income tax rates, long term capital gain
income tax rates, long term capital gain, capital gains taxes: The gain will be calculated on the different between Purchase Price and Sale Price , in your case $160,000. Because you have had it as long as you have, it would be a long term capital gain. Long term cap gains ate taxed at 20% with some people eligible...

Tax Law (Questions About Taxes): Capital Gains Taxes, capital gains taxes, capital gains tax
capital gains taxes, capital gains tax, income bracket: Brandy, Thanks for your question. You will pay tax on the difference in your purchase price and the proceeds of the sale. If you have owned the property for more than 12 months, capital gain rates will apply - 5% if you are in the 15% ordinary income...

Tax Law (Questions About Taxes): Capital Gains Taxes, capital gains taxes, capital gains tax
capital gains taxes, capital gains tax, home hope: Angela, Thanks for your question. There are two tests that must met in order to exclude the gain on the sale of your house. The ownership test states that you must own the house for 24 of the past 60 months. So this test starts on the date the house...

Tax Law (Questions About Taxes): Capital Gains Taxes for Sale of Home in California, capital gain taxes, capital gains taxes
capital gain taxes, capital gains taxes, stancil: Carol, Thanks for your question. I don t know about CA taxes, but the federal rules allow the $500,000 if the spouse has lived in the house for 24 of the past 60 months. She does not have to be an owner for that length of time as long as he meets the...

Tax Law (Questions About Taxes): Capital Gains Taxes, tax viewpoint, larry latham
tax viewpoint, larry latham, capital gains taxes: I am not aware of any changes to the law in that regard. However, that does not necessarily mean that it is not the case. It is easy for an obscure tax amendment to slip by me unnoticed. You may have to pay tax on the depreciation recovery, depending...

Tax Law (Questions About Taxes): Capital Gains tax, capital gains tax, relevant factor
capital gains tax, relevant factor, stancil: Jason, Thanks for your question. Since you have lived in the house for less than 24 months you will be subject to tax on the gain from your purchase price - the 150K figure. The amount of debt on the house is not a relevant factor, gain is based on...

Tax Law (Questions About Taxes): Capital Gains tax, maximum tax rate, long term capital gains
maximum tax rate, long term capital gains, capital gains tax: Hi, You can still file jointly. You don t report your share of the gain because you can exclude it. Since he isn t an owner of the house he doesn t report anything. If your gain is in excess of $250,000, you report the sale and show $250,000 excluded...

Tax Law (Questions About Taxes): Capital Gains tax, medicaid payment, capital gains taxes
medicaid payment, capital gains taxes, capital gains tax: Hi, The amount the estate paid to Medicaid does not affect the capital gain on the house, although it may be deductible elsewhere on the return. From what you wrote I m not sure if the estate is filing a return reporting the capital gain and medicaid payment...

Tax Law (Questions About Taxes): Capital Gains tax after divorce, capital gains tax, unforeseen circumstances
capital gains tax, unforeseen circumstances, rough calculation: Hi Michelle, If you own and live in your home as your main home for 2 years during the 5 years preceeding the date of sale and have not postponed gain on another main home within 2 years, you can exclude $250,000 of gain ($500,000 if married filing jointly)....

Tax Law (Questions About Taxes): Capital Gains tax, capital gains tax, stancil
capital gains tax, stancil, second mortgage: Myrna, Thanks for your question. A second, or any mortgage does not affect the calculation of your gain on the sale of property. To determine your gain you take the proceeds from the sale and subtract your basis. Your basis is your original cost...

Tax Law (Questions About Taxes): Capital Gains taxes, capital gains taxes, max gain
capital gains taxes, max gain, year and a day: Let s start at the end and work up. If you sell before a year and a day, your gain is ordinary and taxed at whatever your tax rate is, or what it might be with the income added in. If long term (held a day or more over a year) the max gain is 15% (federally,...

Tax Law (Questions About Taxes): Capital Gains taxes, illinois state income tax, capital gains taxes
illinois state income tax, capital gains taxes, capital gains tax: Don, Thanks for your question. The gain will be taxed at 15%. You gain is determined by subtracting your cost basis from the proceeds of the sale. 15% of $40,000 would be $6,000. You probably should make an estimated payment in order to avoid a...

Tax Law (Questions About Taxes): Capital Gains on undeveloped property that was gifted, maximum tax rate, long term capital gains
maximum tax rate, long term capital gains, capital gains tax: Hi, Yes you and your brother would have to pay long term capital gains tax on your gain. The maximum tax rate for long term capital gains is 15%. In calculating your gain, your basis in the property is your father s basis - the approximately $6,000...

Tax Law (Questions About Taxes): Capital Gains, excempt, tax obligations
excempt, tax obligations, capital gains: Hi, If you owned and lived in a home as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain from the sale of another main home within 2 years, you can exclude $250,000 of gain ($500,000 if married filing...

Tax Law (Questions About Taxes): Capital gain?, capital gain, 70k
capital gain, 70k, congress: Hi, You don t have to buy another home ever unless you want one. You can do whatever you like with the money. The current law allows you to exclude $250,000 gain ($500,000 if married filing jointly) on the sale of your main home if you have owned and...

Tax Law (Questions About Taxes): Capital gain on investment property, foreclosure status, form 709
foreclosure status, form 709, capital improvements: Darrin, Thanks for your question. The amount you owe on the property is not relevant. Your gain would be the sales price minus your $40,000 basis plus the cost of capital improvements minus depreciation allowed. Her basis would be her cost, she...

Tax Law (Questions About Taxes): Capital gain or loss from stock option trading, trading stock options, short term capital gains
trading stock options, short term capital gains, stock shares: Bob, Thanks for your question. That is correct. Report these transactions on Schedule D. Be aware, however, if you have not held them for over 12 months, they will be considered short term capital gains. I imagine most of your options will fall into...

Tax Law (Questions About Taxes): Capital gain on Primary home, maximum exclusion, stancil
maximum exclusion, stancil, capital gain: Beverly, Thanks for your question. First, it does not matter what you do with the proceeds. You do not have to buy a replacement home. When you sell your primary residence you can exclude up to $250,000 ($500,000 married filing joint) of gain on...

Tax Law (Questions About Taxes): Capital gain on primary residence, real estate commissions, capital improvements
real estate commissions, capital improvements, alternative minimum tax: Hi Robert, If you owned and lived in your home as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 of gain. Any remaining gain will be taxed...

Tax Law (Questions About Taxes): Capital gain reduces cost basis of next house, capital gains exclusion, cost basis
capital gains exclusion, cost basis, adjusted basis: Hi Rob, Yes your basis will be reduced by the amount of gain you deferred in 1990, even if you invest in another home. It no longer matters what you do with the proceeds from the sale of your main hom. You should complete the worksheet in Pub 523, Selling...

Tax Law (Questions About Taxes): Capital gain on sale, auto insurance policy, finacee
auto insurance policy, finacee, capital gain: Your basis is what was paid for the home plus improvements, so your starting point is the $200K. Your fiancee did not have any ownership in the home so he cannot exclude any gain. Your exclusion amount for the entire house is $250,000. Any gains...

Tax Law (Questions About Taxes): Capital gain Tax on Profit of Selling resedential House, capital gain tax, federal tax
capital gain tax, federal tax, time limit: If you have lived in your home for any 2 out of the past 5 years and had no business use, you can exclude $250,000 of your gain per qualified taxpayer. There is no rollover allowed. This is federal law only, you need to see if Oregon conforms. Helen,...

Tax Law (Questions About Taxes): Capital gain tax, ami ami, capital gain tax
ami ami, capital gain tax, stancil: Ami, Thanks for your question. If you have lived in the house for 24 of the past 60 months you can exclude up to $500,000 of gain on the sale. However, you will be taxed, at ordinary income rates, on the amount of depreciation allowed or allowable...

Tax Law (Questions About Taxes): Capital gain, rita thanks, maximum exclusion
rita thanks, maximum exclusion, exhusband: Rita, Thanks for your question. If you have owned the house and lived in it as your principal residence for 24 of the past 60 monhts, you can exclude up to $250,000 of gain from the sale. If you do not meet this qualification, you may be eligible...

Tax Law (Questions About Taxes): Capital gains, owner financing, lesse
owner financing, lesse, capital gain: Dear Tate, Reinvesting the money into other rental property or any thing else for that matter has NO bearing on paying capital gains tax or claiming the income on their taxes.... This will have to be done and there is no tax break here that I can see.......

Tax Law (Questions About Taxes): Capital gains, short term capital gain, long term capital gain
short term capital gain, long term capital gain, short term capital gains: Donna, Thanks for your question. If you sell capital property for a gain, you must pay tax on the gain at capital gain rates (for a long term capital gain) or ordinary income rates (short term capital gain). The only exceptions are if there is a...

Tax Law (Questions About Taxes): Capital gains, marginal tax bracket, capital gain tax
marginal tax bracket, capital gain tax, 401k loan: Harry, Thanks for your question. Your cost basis in the house is the cost basis that your mom had in the house, since it was given to you. Since she inherited it, her cost basis is the fair market value as of the date of death. You will owe income...

Tax Law (Questions About Taxes): Capital gains, current mortgage, heir
current mortgage, heir, proceeds: No, when you sell it, IF there are gains, you will pay on those gains HOWEVER, if you inherited the home, and sell near her date of death, those gains should be minimal if anything. If the home was given to you before she died, you have other issues. ...

Tax Law (Questions About Taxes): Capital gains, long term capital gain, long term capital gain rate
long term capital gain, long term capital gain rate, steve thanks: Steve, Thanks for your question. The long-term capital gain rate applies if you have owned the property more than 12 months. It is 5 or 15 percent depending on your level of taxable income. If the long term rate does not apply, the gain would be taxed...

Tax Law (Questions About Taxes): Capital gains, passive income, capital gain
passive income, capital gain, capital gains: If you can give me more specific details I can probably give you a complete answer. It could be construed in either direction depending on the details. Licensing is considered passive income; Not Gains. But the sale of a License which is an asset...

Tax Law (Questions About Taxes): Capital gains and charitable donations, avion travel trailer, real estate contract
avion travel trailer, real estate contract, capital gains taxes: Hello, The appraisal requirements are specifed on form 8283 which is to be filled in and attached to your form 1040. A sale below blue book or less than market value could lead to trouble. IRS could assess tax as if the proerty was sold at market value....

Tax Law (Questions About Taxes): Capital gains on duplex sale, real estate commissions, long term capital gain
real estate commissions, long term capital gain, capital improvements: Hi, The cost of the land is what you paid for it. You said you bought the house for $185,000. I assume that included the land. You need to separate the house from the land. A realtor or your tax assessor could probably help with that. So if the portion...

Tax Law (Questions About Taxes): Capital gains exclusion applies to gifted home?, capital gains exclusion, capital gains taxes
capital gains exclusion, capital gains taxes, stancil: Robert, Thanks for your question. When you father give you the house, that constitutes a taxable gift and a From 709 must be filed. However, there will likely be no tax due as there is a $1,000,000 lifetime exemption. 2. If your wife is living in the...

Tax Law (Questions About Taxes): Capital gains exemption, capital gains exemption, massive renovation
capital gains exemption, massive renovation, time clock: Hi, As long as you have owned and lived in the home as your main home for 2 years during the 5 years preceding the date of sale and have not excluded gain on another main home within 2 years, you can still exclude gain even if you move from the home during...

Tax Law (Questions About Taxes): Capital gains- forgiveness clause, stancil, principal residence
stancil, principal residence, capital gains: J, Thanks for your question. What you state is not true. However, there may be some relief. The IRS allows you to exempt up to $500,000 of gain ($250,000 if single) from the sale of your principal residence if you have lived in it and owned it for...

Tax Law (Questions About Taxes): Capital gains on gift of land - non charity, tax form 709, acre piece
tax form 709, acre piece, gifted property: Hi, I think I already answered this question but perhaps it went astray. There is no capital gains tax on the value of gifted property. It would be a good idea to file a gift tax return and to have on hand paperwork showing how much you and your wife...

Tax Law (Questions About Taxes): Capital gains on inheritance., capital gains taxes, life estate
capital gains taxes, life estate, second wife: BOTH!!! are right thee interest income is taxed. and Your CPA is correct but the amount of capital gains taxed but it maybe small or none as the gain is the difference between the sales price and the market value of the property on the date of death of...

Tax Law (Questions About Taxes): Capital gains on inheritance, capital gains tax, capital improvements
capital gains tax, capital improvements, stancil: AAcham, Thanks for your question. Yes, the rental activity will affect the basis. Your original basis is the fair market value of the property as of the date of death. Since it was a rental property, you must deduct from that basis any depreciation...

Tax Law (Questions About Taxes): Capital gains on inherited stock, stancil, cost basis
stancil, cost basis, capital gains: Craig, Thanks for your question. The sale of the stock should be reported on Schedule E. Your cost basis is the fair market value as of the date of your grandmother s death. Subtract this from the proceeds of the sale to determine your gain or loss....

Tax Law (Questions About Taxes): Capital gains/losses, capital gains, losses
capital gains, losses, stock: You offset the losses against gains if what is left exceeds your gains you can Take a $(3000) loss on your 1040 it has nothing to do with deductions it goes on the 1040 line labeled capital gains if your loss exceded this amount you would carry the rest to...

Tax Law (Questions About Taxes): Capital gains and losses, capital gains and losses, interest dividends
capital gains and losses, interest dividends, irs publication: Jim, Thanks for your question. The losses from 2000 can be carried forward. However, there are some rules about how that is done and the amount that can be carried forward. This is a topic that is too complicated to detail in this forum. I would suggest...

Tax Law (Questions About Taxes): Capital gains on non-primary residence., 1031 exchange rules, panama city beach
1031 exchange rules, panama city beach, capital gains taxes: fortunately FL does not have an income tax As to the 1031 exchange rules they tend to get somewhat complicated so you should consult with an attorney if it works he can recomend a 1031 exchange agent You do not want to swap without professional...

Tax Law (Questions About Taxes): Capital gains for partnerships, capital gains rate, short term investments
capital gains rate, short term investments, capital gains tax: Matthew, Thanks for your question. Capital gains do not lose their character when passed to the owners. In other words, the individual partners are responsible for paying the tax on the capital gain when they file their individual 1040s. This is based...

Tax Law (Questions About Taxes): Capital gains on real estate, capital gains on real estate, capital gain tax
capital gains on real estate, capital gain tax, irs office: take two excedrin ! but you might want to consult with some one in you local IRS office(don t need to identify youreself ) they might give you the right answer if you present all the circuntances good luck let me know the answer or if you need more help...

Tax Law (Questions About Taxes): Capital gains real estate, capital gains real estate, short term capital gains
capital gains real estate, short term capital gains, long term capital gains: Ms. Bracisco: It depends on if it is short term capital gains or long term capital gains. If it is short term (owned for 6 months or less) capital gains then it is treated as ordinary income. However if it is longterm capital gains the tax is calculated...

Tax Law (Questions About Taxes): Capital gains on real estate, capital gains on real estate, estimated tax payments
capital gains on real estate, estimated tax payments, acceptable method: This is an acceptable method if you wish. You should be aware that you MAY incur an underwithholding penalty if your balance due with your tax return is 1500 or more and you have not had at least an amount equal to your 2003 TAX withheld from your paychecks,...

Tax Law (Questions About Taxes): Capital gains on realestate sales, marginal tax bracket, long term capital gain
marginal tax bracket, long term capital gain, realestate sales: Tish, Thanks for your question. If you have owned the property for 12 months or less, you will pay tax at your current marginal rate on the gain. If you have held the property for more than 12 months, the long-term capital gain rate applies. That rate...

Tax Law (Questions About Taxes): Capital gains on rental, marginal tax rate, capital improvements
marginal tax rate, capital improvements, stancil: Brenda, Thanks for your question. What you owe on the property does not affect your gain or loss. Based on what you have told me, if you sell the house by the end of July, 2006, you will qualify to exclude the gain as you would have lived in the...

Tax Law (Questions About Taxes): Capital gains rollover, capital gain, plot of land
capital gain, plot of land, capital gains: Hi, Unfortunately you cannot roll the capital gain on the sale of land to your new home. There once was a provision in the law that allowed you to defer gain on the sale of your main home by purchasing another home. But that law has been changed and would...

Tax Law (Questions About Taxes): Capital gains on sale of rental property, capital gains tax rate, capital gains exclusion
capital gains tax rate, capital gains exclusion, long term capital gains tax rate: Hi, To qualify for the capital gains exclusion you must have owned and lived in it as your main home for 2 years during the 5 years preceding the date of sale. The time you lived in it in the 70 s doesn t county. Also, even if you moved in for 2 years...

Tax Law (Questions About Taxes): Capital gains on sale of rental property, marginal tax bracket, capital gain taxes
marginal tax bracket, capital gain taxes, capital gain tax: Renee, Thanks for your question. There really isn t much that can be done to alleviate the capital gains tax. Capital gains are taxed at 5 or 15% depending on the marginal tax bracket. If you landload is in the 15% bracket or lower, he would pay tax...

Tax Law (Questions About Taxes): Capital gains on sale of vacant land, real estate commissions, short term capital gain
real estate commissions, short term capital gain, income tax rate: Hi Denise, Well .98 and .70 add up to 1.68 rather than 1.67 so I ll use the 1.68 in my calculations. Divide your net purchase price ($30,000 less $700 or $29,300) by 1.68 = $17,440.476. Multiply that by .98 = $17,092 for your .98 acres; multiply it...

Tax Law (Questions About Taxes): Capital gains, selling home..., partial exclusion, relocation package
partial exclusion, relocation package, stancil: Bobette, Thanks for your question. An employer relocation is the same as a change in employment. However, you are only eligible for a partial exclusion. Take the number of days you have occupied the house as you principal residence and divide by 730....

Tax Law (Questions About Taxes): Capital gains when selling primary residence, irs website, capital gains exclusion
irs website, capital gains exclusion, partial exclusion: Hi Chris, The fact that it is your first home is not relevant to the partial exclusion. But if your move was due to employment or health or certain unforeseen circumstances, you can exclude a portion of the gain. For your 18 month period of use and ownership...

Tax Law (Questions About Taxes): Capital gains Tax, capital gains tax, stancil
capital gains tax, stancil, principal residence: N, Thanks for your question. Buying a new house today has no effect on the taxability of the sale of your old house. If you have owned and lived in the house for 24 of the past 60 months, you can exclude up to $500,000 in gain (Married filing jointly)....

Tax Law (Questions About Taxes): Capital gains tax, short term capital gain, capital gains tax
short term capital gain, capital gains tax, stancil: Roger, Thanks for your question. Unless you have owned the house for more than 12 months, you would pay taxes on the gain at your maginal ordinary income rate as this would be a short term capital gain. If you held the house over 12 months, the gain would...

Tax Law (Questions About Taxes): Capital gains tax, capital gains tax, maximum exclusion
capital gains tax, maximum exclusion, military enlistment: S, Thanks for your question. That is considered a move necessitated by a change in employment. The technical side of it is that your maximum exclusion is reduced. You can exclude 18/24 X $250,000 ($500,000 if married filing jointly) or the actual gain...

Tax Law (Questions About Taxes): Capital gains tax, 1031 like kind exchange, capital gains tax
1031 like kind exchange, capital gains tax, frame requirements: Would buying another business avoid the taxes? Avoid, NO, postpone yes. A 1031 (like kind exchange) is a common recommendation, but that could mean higher taxes in the end. Timeframe, declare the new purchase within 45 days, consumate the deal within...

Tax Law (Questions About Taxes): Capital gains tax, marginal tax rate, realtor fee
marginal tax rate, realtor fee, capital gains tax: Bob, Thanks for your question. Since the house is considered a gift, her basis in the house is her parent s original purchase price plus any capital improvements. Subtract that basis from the proceeds of the sale, and you have your taxable gain. It...

Tax Law (Questions About Taxes): Capital gains tax, capital gains tax, unforeseen circumstances
capital gains tax, unforeseen circumstances, period of time: Hi, There is no longer a provision in the law to defer taxation of gain on your home by investing in another home within a specified period of time. That law was replaced by the exclusion of gain. If you don t meet the 2 year requirement and your move...

Tax Law (Questions About Taxes): Capital gains tax, irs rule, capital gains tax
irs rule, capital gains tax, whistler: Ms. Butt: If either property is a rental then it must be treated as income producing (commerical)and it will not be entitled class of either 1st or 2nd home exclusion. The IRS rule is you must have lived in either home 3 of the last 5 years. This entitles...

Tax Law (Questions About Taxes): Capital gains tax for a church, unrelated business income, capital gains tax
unrelated business income, capital gains tax, stancil: Laura, Thanks for your question. Churches are subject to tax on their unrelated business income. However, since the church is just selling a piece of property incidentally, it is not considered to be in business. The sale would not be subject to...

Tax Law (Questions About Taxes): Capital gains tax on land sale, capital gains tax, federal purposes
capital gains tax, federal purposes, retirement income: You need to find out what your cost basis is. Try county records, real estate agents that specialize in forensic prices, whatever it takes. Subtract your sales price from the basis and that is your taxable gain. For Federal purposes, it is taxed at 15%...

Tax Law (Questions About Taxes): Capital gains tax with multiple buyers, capital gains tax, personal residence
capital gains tax, personal residence, ea: No. To take the exclusion you must live in and own the home. So the only one that can take any exclusion is the person living there. You and your wife are not living there, and it is not your personal residence, therefore, you will pay taxes on the gain....

Tax Law (Questions About Taxes): Capital gains tax on sale of vavcant land., capital gains tax, form 1040 schedule d
capital gains tax, form 1040 schedule d, money: Dear Joe, This income is going to be reported by you on form 1040-schedule-D.... Taking it from there, you should go to the instructions regarding 1040-schedule-D and do a dummy return schedule-D..... This will be counted and taxed as INCOME, but I do...

Tax Law (Questions About Taxes): Capital gains tax on sale of home, capital gains tax, multiple births
capital gains tax, multiple births, maximum exclusion: Deyne, Thanks for your question. 1. Only if you meet one of the exceptions. If the move was due to a change in place of employment, health, death, unemployment, divorce, or multiple births from the same pregnancy you may be eligible for a reduced maximum...

Tax Law (Questions About Taxes): Capital gains tax on sale of non-primary home, quick claim deed, capital gains tax
quick claim deed, capital gains tax, gross proceeds: Adam, The taxable capital gain is computed like this. You take the gross proceeds, subtract the cost basis and subtract the sales expenses (commissions, etc.). The county assessed value as absolutely no relevance here. The assessed value has to do with...

Tax Law (Questions About Taxes): Capital gains tax-sale of principle residence, irs law, irs gov
irs law, irs gov, principle residence: Dear Phil, It would be enough for me, but then every tax professional interprets the IRS law differently and you need to contact the IRS and talk with them about it and you also need to go to www.irs.gov and look at Publication 523........ thank you,...

Tax Law (Questions About Taxes): Capital gains tax, quick claim deed, capital gains tax
quick claim deed, capital gains tax, jim dear: Dear Jim, Based on what you have stated here, you are going to be responsible for ALL of the capital gains tax on the sale of these houses since NONE of them are your MAIN home and personal residence.... However, you will figure as the COST basis of these...

Tax Law (Questions About Taxes): Capital gains taxes, van campen, microfilm copies
van campen, microfilm copies, financial publication: Tom, Thanks for your question. I suggest you consult some other sources, such as the Wall Street Journal or some other financial publication. A good library would likely have microfilm copies back to that date. You could also consult her stockbroker...

Tax Law (Questions About Taxes): Capital gains taxes, capital gains taxes, ac water
capital gains taxes, ac water, tiled floors: So, she is still putting up with you after all these years! :) All the improvements and assessments can be added to your basis so that will raise it. Unless you elected to capitalize the property taxes each year on your tax return, you cannot add those...

Tax Law (Questions About Taxes): Capital gains taxes and residence in two states, capital gains taxes, time resident
capital gains taxes, time resident, two states: Hi Mr. Amenedo Normally you pay taxes to the state you are a resident at the time of the sale of the investment. so if you sell while in CA; at the end of the year ,assuming you moved to Co before June 30, you would pay CA as a NON Resident and you would...

Tax Law (Questions About Taxes): Capital gains taxes, capital gains taxes, mortgage balance
capital gains taxes, mortgage balance, stancil: Kreto, Thanks for your question. First, beware of a 1031 exchange. It must be an actual exchange of like-kind assets. A sale and subsequent purchase is NOT a 1031 exchange. If she sells the house to you for less than fair market value the difference...

Tax Law (Questions About Taxes): Capital gains from trust, capital gains and losses, s corpus
capital gains and losses, s corpus, executor trust: Chuck, It depends if your trust document allows for capital gains to be passed to the beneficiaries. Trusts generally retain capital gains and losses since they are changes to the trust s corpus (principal). Thus, they are not consider income for distribution...

Tax Law (Questions About Taxes): Capital gains/trusts, time of death, original cost
time of death, original cost, executor: Hello, A beneficiary receives the value at the date of passing. The estate uses the original cost. Has the property been distributed to the beneficiaries? Is title in the name of the beneficiary or in the name of your mother? To substantiate a position...

Tax Law (Questions About Taxes): Capital gains vs. Normal Income, self employment tax, short term capital gains
self employment tax, short term capital gains, flipping properties: Matthew, The short term loss incurred with the 2007 sale is reported on your 2007 tax return. Assuming you don t have any other capital gains or losses to report for 2007, the $2,000 loss will be deducted on your 2007 tax return. The loss can not be carried...

Tax Law (Questions About Taxes): Capital gains vs. Normal Income, self employment tax, short term capital gains
self employment tax, short term capital gains, flippers: It appears that this is a business, not a casual buying and selling, so your wife would use Sch C for the sales, the inventory and the costs. There is no real book out there for flippers, I would strongly suggest you find a tax professional in your area...

Tax Law (Questions About Taxes): Capital gains, definate answer, confusing topic
definate answer, confusing topic, stancil: Sean, Thanks for your question. Capital gains for trusts are calculated the same as for individuals. Likewise, the taxes for trusts are handled in a similar manner. However, in many cases, the trust does not pay the tax, but it is passed on the to...

Tax Law (Questions About Taxes): Capital Loss, home hope, stancil
home hope, stancil, personal residence: Lynn, Thanks for your question. Unfortunately, you cannot deduct any loss on the sale of a personal residence - main home or second home. The $3,000 is the maximum capital loss you may deduct in any one year, but any excess can be carried forward....

Tax Law (Questions About Taxes): Capital loss on rental property?, real estate commissions, sellers concessions
real estate commissions, sellers concessions, transaction fees: Probably not. Since it is not a true rental property, but a sale of a personal property, you still fall under personal use rules. IF you rented it out for a number of years (at least 3), the answer may be different, but then you will have depreciation...

Tax Law (Questions About Taxes): Capital or Ordinary Gains/Losses, investment realestate, form 1040 schedule d
investment realestate, form 1040 schedule d, capital asset: Dear David, This is a capital asset and you must report this transaction sale on form 1040-schedule-D and claim the gain or loss (loss is limited to certain $$$ figures per year) and you will also report this gain or loss on your 1040.... This is a investment...

Tax Law (Questions About Taxes): Capitial Gains, capital gains tax rate, long term capital gains tax rate
capital gains tax rate, long term capital gains tax rate, capital gain taxes: Hi, The maximum long term capital gains tax rate is 15%. I assume from what you wrote that you will be paying taxes on 1/6 of the difference between the cost and the market value (around $10,000) so the maximum capital gains tax will be around $1500. ...

Tax Law (Questions About Taxes): Capitol Gaims Taxes, capitol gains tax, gaims
capitol gains tax, gaims, capital gains tax: Steven, Thanks for your question. There is no capital gains tax, per se. What we have is that capital gains are subject to income tax at a preferred rate. For the capital gain rate to apply, the property must be held for more than 12 months, so...

Tax Law (Questions About Taxes): Capitol Gain on sale of business., capitol gain tax, income tax rates
capitol gain tax, income tax rates, term gain: No to both parts of that question. No you won t be paying capital gains on the whole amount of the sale. It is worse than that. The depreciated amount will be recaptured at INCOME TAX RATES . The difference between your original purchase price and...

Tax Law (Questions About Taxes): Capitol Gains, capitol gains, t claim
capitol gains, t claim, depreciation: Hi Jeffrey, You ve got it right. If you owned and lived in the house as your main home for 2 years during the 5 years preceeding the date of sale and have not excluded gain on another main home within 2 years, you can exclude $250,000 of gain ($500,000...

Tax Law (Questions About Taxes): Capitol Gains, capital gain tax rates, capitol gains taxes
capital gain tax rates, capitol gains taxes, long term capital gain: Hi Scott, Yes, to exclude gain on the sale of your main home you must have owned and lived in it for 2 years during the 5 years preceeding the date of sale. The old rule about deferring gain by buying another home is no longer in effect. You could qualify...

Tax Law (Questions About Taxes): Capitol Gains, depreciation, irs
depreciation, irs, ea: Basically, you are looking at your sales price less your purchase price (which is reduced by the depreciation allowed or allowable). Depending on your method of depreciation, you can look at 15% tax on the gain, with a 25% tax on the depreciation. Helen,...

Tax Law (Questions About Taxes): Capitol Gains, irs website, pedetrician
irs website, pedetrician, realtor fees: Hi, Your bottom line is correct - $154,000 gain. But the realtor fees are deducted from the gross selling price to arrive at your adjusted selling price rather than added to the basis of the house. Then you deduct the adjusted basis from the adjusted selling...

Tax Law (Questions About Taxes): Capitol Gains, multiple births, capitol gains
multiple births, capitol gains, unforseen circumstances: Janette, Thanks for your question. It is not required to reinvest the proceeds from the sale of a house, this has not effect on the taxability of the gain. In order to exclude the gain you must have occupied the house for 24 of the past 60 months...

Tax Law (Questions About Taxes): Capitol Gains, getting a divorce, capitol gains
getting a divorce, capitol gains, unforeseen circumstances: Hi Matt, Because your move is due to unforeseen circumstances (divorce) you would be eligible for a reduced exclusion of capital gain. That s assuming you owned and lived in the home as your main home and have not excluded gain on another main home within...

Tax Law (Questions About Taxes): Capitol Gains?, irs gov, capitol gains
irs gov, capitol gains, employer plan: First of all, you cannot file the short form, this transaction will be recorded on Sch D as a long term gain. I m assuming you did not live on the property at all. Your basis is $37.5K, your sales price is $70K (less any costs of sale) and the difference...

Tax Law (Questions About Taxes): Capitol Gains Exclusions, capital gain taxes, capitol gains
capital gain taxes, capitol gains, exact number: Hi Kara, You can qualify for a reduced exclusion of capital gain taxes on the sale of your home if your move was job related and the new job location is at least 50 miles farther from the residence sold than was the former place of employment. The amount...

Tax Law (Questions About Taxes): Capitol Gains or Income Tax??, capitol gain, capitol gains
capitol gain, capitol gains, best bet: Jim, this looks a lot at intent. If this is going to be an ongoing portion of your business, then it is income to your business. If you are going to do one or two and stop, then it is ordinary income, probably never capital gain, as you would not want to...

Tax Law (Questions About Taxes): Capitol Gains - primary residence or rental property?, principle residence, capitol gains tax
principle residence, capitol gains tax, captial gains: Alexis, As long as you have the Portland apartment, it would be hard to argue the beach house as a principal residence. You would need to move into the beach house as the primary residence for at least two years. I like your first option about living...

Tax Law (Questions About Taxes): Capitol Gains Tax, capitol gains tax, capitol gains taxes
capitol gains tax, capitol gains taxes, maximum exclusion: Brent, Thanks for your question. Since your move was due to a change in employment you probably qualify for a reduced exclusion. In order to qualify, your new place of employment must be at least 50 miles further from your old home than your old place...

Tax Law (Questions About Taxes): Capitol Gains Tax on primary residence., capitol gains tax, state tax rate
capitol gains tax, state tax rate, capital gains tax rate: Kimberly, If you have lived in your residence over one year the capital gains tax rate is 15% for Federal taxes, plus what ever your state tax rate is. If you lived and owned your residence for two out of the last five years, a married couple could...

Tax Law (Questions About Taxes): Capitol Gains Tax on Rental Property, capitol gains tax, maximum tax rate
capitol gains tax, maximum tax rate, higher tax bracket: Hi, The maximum long term capital gain rate is 15%. However, since this is rental property you would have to recapture the amount of depreciation allowed or allowable. The maximum tax rate on that would be 25%. Allowed or allowable means that even if...

Tax Law (Questions About Taxes): Capitol Gains Tax, capitol gains tax, unemployment benifits
capitol gains tax, unemployment benifits, partial exclusion: Hi Lee, If your move was necessitated by medical conditions you can qualify for a partial exclusion of the gain - more than enough to cover the $33,000. The IRS isn t specific about what constitutes a medical necessity so hang on to anything that pertains...

Tax Law (Questions About Taxes): Capitol Gains Taxes, capitol gains taxes, higher tax bracket
capitol gains taxes, higher tax bracket, long term capital gain: Hi Melissa, You mentioned that you put a lot of money into the house. If any was spent on capital improvements you can add that cost to your basis which will reduce your gain. Repairs and maintenance are not capital improvements. When you sell the...

Tax Law (Questions About Taxes): Capitol Gains Taxes, capitol gains taxes, 1031 exchange
capitol gains taxes, 1031 exchange, rental property: Yes but if it is a substantial amount you may want to look into a 1031 exchange whereby your old property is exchanged for the new property then only cash you recieve would be taxed. There are professional that specialize on this type of transactions...

Tax Law (Questions About Taxes): Capitol Gains tax?, capitol gains tax, section 121
capitol gains tax, section 121, stancil: Regina, Thanks for your question. An ownership interest in a cooperative qualifies you for the exclusion. All that has changed is the form of ownership for you, from coop to condo. Since you have lived in the same dwelling for the required number of...

Tax Law (Questions About Taxes): Capitol Gains, capitol gains, changing jobs
capitol gains, changing jobs, stancil: Stacy, Thanks for your question. You don t have to stay in the house until July 31. The requirement is that you occupy the house as your main home for 24 of the past 60 months. So, any part of 24 months is sufficient. If you move out prior to meeting...

Tax Law (Questions About Taxes): Capitol gain ?, realtor commissions, long term capital gain
realtor commissions, long term capital gain, capitol gain: Hi Tim, The sale of the condo is the sale of business property since you used it as a rental. The gain is calculated by deducting your adjusted basis from your adjusted selling price. The adjusted basis is what you paid for it plus any capital improvements...

Tax Law (Questions About Taxes): Capitol gains, reno nevada, principal residence
reno nevada, principal residence, dental school: Brandi this is a very interesting question there can only be one principal residence the IRS has various conditions that determine principal residence one of them them is the address on the tax return However if your husband gifts his share of the condo...

Tax Law (Questions About Taxes): Capitol gains on home in probate, capitol gains tax, fmv
capitol gains tax, fmv, 3 ways: Hi Patricia if one sister gets the house that establishes the FMV and sale price of the house to be the same (remember assesed value may or may not be the FMV) so there is no gain or loss the future basis for the purchasing sister will be 105,00...

Tax Law (Questions About Taxes): Capitol gains on home sale, irs gov, capital gains tax
irs gov, capital gains tax, road improvements: Dear Stacey, Inorder NOT to pay any capital gains tax you would have to have lived in your CURRENT main home for MORE than 2 years.... YES, if less than 2 years there is a prorate on how much you would owe in capital gains... Also you ADD the $11k to the...

Tax Law (Questions About Taxes): Capitol gains on home sale, road improvements, capital improvements
road improvements, capital improvements, capitol gains: Hi, You can exclude gain on the sale of your main home every 2 years. To exclude the gain you must have owned and lived in the home as your main home for 2 years during the 5 years preceeding the date of sale. If you have lived there less than 2 years...

Tax Law (Questions About Taxes): Capitol gains on home sell, capitol gains tax, short term capital gain
capitol gains tax, short term capital gain, taxable income: Hi Dennis, Since you have owned the home one year or less, your gain would be short term capital gain. Short term capital gain is added to all your other income and is taxed at whatever rate your total income and deductions dictate. Assuming you are single...

Tax Law (Questions About Taxes): Capitol gains tax due to more than one state?, capitol gains tax, capital gains taxes
capitol gains tax, capital gains taxes, john thanks: John, Thanks for your question. That depends on the laws in MA, which I am not familiar with. However, if you do pay MA taxes on the gain, your state of residence normally grants a credit for that amount against your state taxes, so you would not be...

Tax Law (Questions About Taxes): Capitol gains, gross sale price, gross proceeds
gross sale price, gross proceeds, capitol gains: Dennis, Thanks for your question. The problem is that, legally, you owned the house and transferred title to your brother. From all appearances you sold the house to him for a gain. What you must do is prove to the IRS that you did not receive the...

Tax Law (Questions About Taxes): Captial GAins -vs- Inheritance, long term capital gain, captial gains
long term capital gain, captial gains, deceased fathers: Cyd, Thanks for your question. There is no inheritance vs. capital gains issue. Regardless of when the title was transferred, your basis in the land is the fair market value as of the date of death. Anything in excess of that is a long term capital...

Tax Law (Questions About Taxes): Captial Gain, c corp, s corp
c corp, s corp, business visa: I don t know what the rates are in NJ. The federal rate is between 15 and 38% depending on your level of income. This is the rate for the built in gains portion. Gains beyond the built in gains would be taxed on your return based on personal tax brackets....

Tax Law (Questions About Taxes): Captial gains taxes on new construction, capital gains taxes, captial gains
capital gains taxes, captial gains, real estate tax: Austin thanks for an extremely interesting question my answer is no because the exception says must have been your principal residence see WWW.irs.ustreas.gov look up sale of residence real estate tax tips However if there is is a large amount of money...

Tax Law (Questions About Taxes): Captial Loss Carry Forward, capital loss carryover, capital losses
capital loss carryover, capital losses, delisting: You have the choice of amending your 2002 return to include the capital loss OR including it in your 2003 return(since this is the tax year of your discovery of the delisting). Use Schedule D(you must use a specific method as described in the instructions...

Tax Law (Questions About Taxes): Captital Loss, j l halsey, worthless stock
j l halsey, worthless stock, novacare: Hi Perry, To sell stock you go to a stock broker. He/she would be able to advise you how to go about selling a small lot of nearly worthless stock. There are on-line discount brokers but I would suggest that you find a broker in your area so you can have...

Tax Law (Questions About Taxes): Car accident Settlement question, medical insurance premiums, insurance underwriter
medical insurance premiums, insurance underwriter, insurance question: Jason: That is a legal question I am not an attorney therefore I can not answer that question. I can not answer the medical insurance question since I am not an insurance underwriter. My opinion is once the injury heals and there is no lasting effect...

Tax Law (Questions About Taxes): Car Donation, insult to injury, car donation
insult to injury, car donation, tax deduction: Your church needed to take title of that car. You did lose your donation as you made a gift to an individual, not a qualified charity. The church will only add insult to injury if they give you a receipt, and may open their books up to audit. Helen,...

Tax Law (Questions About Taxes): Car Donation Tax Deduction, steve thanks, donation tax
steve thanks, donation tax, stancil: Steve, Thanks for your question. You will benefit from the donation only if you itemize your deductions. If you itemize you will probably save about 10 - 15 cents in taxes for each dollar valuation of the car. Hope this helps. John Stancil, CP...

Tax Law (Questions About Taxes): Car donation and tax deduction, gift tax liability, stancil
gift tax liability, stancil, car donation: Jeyun, Thanks for your question. Yes, you can donate the car. However, there will be no tax deduction for doing so. It would be considered a gift. Additionally, if the car is valued at more than $12,000, you will need to file a gift tax return. Unless...

Tax Law (Questions About Taxes): Car expense question for Sole Proprietorship, mileage deduction, sole proprietorship
mileage deduction, sole proprietorship, last stop before home: Dear Peter, COMMUTING mile are NEVER deductable.... WHen you work from home, you can only deduct miles from your FIRST job to your next and the next and so on and never back to your home..... When away, the motel becomes your work base, just like your...

Tax Law (Questions About Taxes): Car--gift or sale?, state sales tax, stancil
state sales tax, stancil, gift taxes: Ali, Thanks for your question. It would probably be treated as a gift, since it was sold for considerably below market value. However, since the amount of gift is less than $12,000, it is not an issue. No income or gift taxes are due on the transaction....

Tax Law (Questions About Taxes): Career Change into Accounting, middle school math, financial endeavors
middle school math, financial endeavors, education mathematics: I can t say there are any books that I can recommend regarding getting started in the field, etc. I suggest that you go to the nearest University with an accounting program and finance program and speak to the people that run the programs. They will probably...

Tax Law (Questions About Taxes): Caregiver at home, wife laurie, elderly father
wife laurie, elderly father, tax help: Dear Oscar, The only tax break would be if his income is less than $3000 and he is eligable to be claimed as a dependent on your tax return... Unfortunately, if he is drawing S.S. then he would not qualify for that either... No tax break here that I can...

Tax Law (Questions About Taxes): Caring for elderly parent, social security check, head of household
social security check, head of household, elderly parent: Hi Kelly, If you provide more than half of your mom s support for the year you can claim her as a dependent. If you provide a home for her and pay more than half of the upkeep of that home (i.e.,rent, utilities and food consumed in the home) you can file...

Tax Law (Questions About Taxes): Carole, First, let me thank..., knowledgable friend, form 1098
knowledgable friend, form 1098, hi tim: Hi Tim, If you are obligated to make the payments and make them you can deduct the interest even if the 1098 has her name on it. You don t attach the 1098 to your return. In the event of an audit you will need to show that you made the payments and that...

Tax Law (Questions About Taxes): Carried Forward Losses - C Corp, nol deduction, carryback
nol deduction, carryback, c corp: Be profitable. Without profit there are no taxes to pay, and no use for the loss carry forward. For a longer explanation I have attached the explanation directly from the IRS: Net Operating Losses A corporation generally figures and deducts a net...

Tax Law (Questions About Taxes): Carryover on 1041 Schedule D, capital loss carryforward, capital losses
capital loss carryforward, capital losses, loss carryover: Herb, There will be a line on the 2007 Schedule D that you will report the capital loss carryforward from 2006. Even though you do not have any capital transactions to report for 2007, the trust will still be entitled to deduct up to $3,000 in capital...

Tax Law (Questions About Taxes): Cash Balance pension plan, cash balance pension plan, cash balance pension
cash balance pension plan, cash balance pension, early withdrawal penalty: Hi Greg, Because you are under age 59 1/2 you would have an early withdrawal penalty of 10% in addition to ordinary income tax. If you can take distributions in a scheduled series of substantially equal periodic payments made over your life expectancy,...

Tax Law (Questions About Taxes): Cash contribution by non-shareholder, local government authority, asset purchase
local government authority, asset purchase, tax basis: Hi Warren: It depends on the intent of the contributor. Why did the contributor give the money? The credit should be an offset to the asset purchased with the contribution. If the gift can be used for any purpose (very unlikely) it should be recorded...

Tax Law (Questions About Taxes): Cash Donations to Charity, state tax return, cash donations
state tax return, cash donations, lingling: Dear Lingling, If you are filing a Married Filing JOINT tax return, then your TOTAL itemized deductions including the donations to charities MUST be more than $9700.00 (standard deductions) inorder for the donations and other items on the 1040-schedule-A...

Tax Law (Questions About Taxes): Cashing out my 401K, money market fund, tax time
money market fund, tax time, 401k: You should get a check for $40K as 20% is mandatory for tax withholding. The 10% penalty as well as any additional taxes that are due will be taken care of at tax time. BTW - if your administrator is going to charge you fees to withdraw the money, that...

Tax Law (Questions About Taxes): Cashing out my 401K, 401k question, money market fund
401k question, money market fund, divorce decree: Yes, that is correct. So I advise you to put another $10,000 aside, in addition to what is going to be withheld, so you will have the money to pay the IRS at tax time. If you do not owe all the remaining $10,000 next April - it will be like and early tax...

Tax Law (Questions About Taxes): Cashing in a 403b, social security disability, marginal rate
social security disability, marginal rate, 403b: Charles, Thanks for your question. Due to your disability, you can withdraw the funds without the 10% penalty, but the withdrawal will be subject to income tax at your marginal rate. This marginal rate can be between 10 and 35% depending on your level...

Tax Law (Questions About Taxes): Cashing in to buy the house, money market fund, time home buyer
money market fund, time home buyer, first time home buyer: Mike, Thanks for your question. The tax and penalties on the 401(k)will amount to about 35% plus state taxes. For the Roth the tax and penalty will apply only to the earnings unless the Roth is less than 5 years old. Since you do not qualify as...

Tax Law (Questions About Taxes): Cashing out an IRA, personal income tax, state income tax
personal income tax, state income tax, auto loans: Hi, If you cash out your IRA you will pay ordinary income tax on the distribution at whatever rate your total income dictates plus an additional 10% penalty for early distribution. If you are in a state with a personal income tax you will also pay state...

Tax Law (Questions About Taxes): Cashing out my Simple IRA, simple ira, time home buyers
simple ira, time home buyers, time home buyer: Hi, Unfortunately there is no way to avoid the 10% penalty or the income tax. Being a first time home buyer does not mean that you can never have owned a home. It means no home ownership within 2 years. You didn t mention if you and your husband own...

Tax Law (Questions About Taxes): Cashing out, early withdrawal penalty, roth ira
early withdrawal penalty, roth ira, head of household: Mike: If I had to take a guess as to how much tax you would pay to pull out all of your retirement funds, I would guess that if you had about $20,000 of itemized deductions and personal exemptions, you would be looking at $16,808 (single) or $15,209 (Head...

Tax Law (Questions About Taxes): Casualty Loss, casualty loss, adjusted gross income
casualty loss, adjusted gross income, sewer backup: Clare, Thanks for your question. I apologize for the delay in answering your question. However, the AllExperts website has been malfunctioning and I have not been able to answer my questions for a couple of days. If insurance did not pay, this would...

Tax Law (Questions About Taxes): Casualty Loss, casualty loss, stancil
casualty loss, stancil, hurricanes: Eric, Thanks for your question. If they take the loss on their 2004 taxes, and are subsequently reimbursed for the loss, or the damage is repaired at no cost to them, they will have to declare the reimbursement/repairs as income to the extent of loss...

Tax Law (Questions About Taxes): Casualty Losss on Rental Property, casualty loss, capital expenditures
casualty loss, capital expenditures, insurance work: Bev, Thanks for your question. You have a $500 casualty loss. This is the amount of out of pocket expense you have from the damage to your property. You cannot deduct the $35,000 as the casualty deduction is for the cost to repair or the reduction...

Tax Law (Questions About Taxes): CD TAXES, tax bracket, interest income
tax bracket, interest income, income tax: Interest income is taxed as ordinary income, so whatever your tax bracket is is the percentage of taxes you will pay on the interest. We are not at a 100% tax bracket and never will be, so you will never pay as much in taxes as the interest you get. ...

Tax Law (Questions About Taxes): CD tax, taxable interest income, accrual method
taxable interest income, accrual method, substantial penalty: Robert, Thanks for your question. Normally, with a CD there is a substantial penalty for withdrawal prior to maturity. If this is the case, you would only report the interest in the year the CD matured. However, you really don t have to worry about...

Tax Law (Questions About Taxes): CDs Interest Income, taxable incomes, tax brackets
taxable incomes, tax brackets, personal exemption: Hi, The first $7,825 is taxed at 10%, then it goes to the 15% and 25% brackets. You don t actually do the calculations on the tax return. You look it up on the tax table and put the amount on your tax return. I don t have the 2007 tax tables yet. ...

Tax Law (Questions About Taxes): Cell Phone Usage, business calls, withholding taxes
business calls, withholding taxes, arbitrary number: Many businesses provide a cell phone to the employee for work and deduct the entire payment. You could have the employee submit a copy of their bill and calculate the amount of business calls on a reimbursement. Choosing an arbitrary number is the least justifiable...

Tax Law (Questions About Taxes): CG Taxes on sale of gifted (not purchased) land, minimal purchase, liquid investments
minimal purchase, liquid investments, one hundred dollars: Brandon, Normally, when a deed states other valuable consideration along with a minimal purchase price, it is in reality a gift. Lacking any concrete evidence to the contrary, your basis would still be the original cost of the land to her. John Stancil,...

Tax Law (Questions About Taxes): CGT on UK Property, l1a visa, property question
l1a visa, property question, yr period: Yes, if she has no other income she would pay 5% on her LTCG, but you would also have to figure in the Sec 1250 recapture of Depreciation on the property as well. Also not knowing your particular tax situation, it would be hard to say which is the better...

Tax Law (Questions About Taxes): GETTING CHECK, irs gov, ss number
irs gov, ss number, number thanks: Ken, Thanks for your question. You can call 800-829-4477. When you call you need to know the filing status, the SS number, and the exact amount of the refund. Or you can go to www.irs.gov and click on Where s my refund. Hope this helps. John...

Tax Law (Questions About Taxes): CHILD SUPPORT, divorce decree, united states army
divorce decree, united states army, dependents: You kids can only be claimed as dependents by one of the parents. Unless the divorce decree specifically gives you that right, you can t automatically claim it, but if your ex-wife allows it you can. You can certainly list your child support on your tax...

Tax Law (Questions About Taxes): Ch 7 BK and 1099-A, first mortgage, stancil
first mortgage, stancil, mortgage companies: Cheri, I really can t add anything to my previous answer. Bankruptcy is a federal law, therefore state laws cannot override it. You would have to ask the companies why they sent the documents. Your attorney may be able to shed some light on this also....

Tax Law (Questions About Taxes): Ch 7 BK and 1099-A, debt discharge, return thanks
debt discharge, return thanks, stancil: Cheri, Thanks for your question. If the debt was discharged in bankruptcy, you do not have to report that as income on your taxes. The reporting of the debt discharge to the IRS was improper. I would contact the company and inform them, with paperwork,...

Tax Law (Questions About Taxes): Change filing status, 1040x form, resident aliens
1040x form, resident aliens, marriage penalty: The marriage penalty is not any specific item. It affects different taxpayers in different ways. I only did a quick calculation of your tax situation, without the actual numbers it may have been off somewhat. If yo owe more, there would be a penalty,...

Tax Law (Questions About Taxes): Change of title deed on property, title deed, title deeds
title deed, title deeds, tax implications: Hi, If you give the house to your son, you are required to file a gift tax return. Most likely you would owe no tax but it would reduce the amount you can give during your lifetime and at death. If you have a large estate you might want to seek the...

Tax Law (Questions About Taxes): Changes, child tax credit, december 8
child tax credit, december 8, unemployment: Mercedes: You and he will be able to file a 1040 joint return. He needs his W-2 s and the 1099 showing the amount of his unemployment. You will be entitled to calculate your child tax credit to see if you qualify and what amounts and any other deductions...

Tax Law (Questions About Taxes): Changes, additional child tax credit, child tax credit
additional child tax credit, child tax credit, dependents: Hi, You can file a joint tax return since you were married before the end of the year. You will report his earned income as well as his unemployment and claim your 3 kids as dependents. You would be eligible to claim the Child Tax Credit (if the children...

Tax Law (Questions About Taxes): Changing Filing Tax status, head of household, letter of explanation
head of household, letter of explanation, billing info: Ms. Martinez: Under that situation then you both would be entitled to file head of household. If the returns were correctly file then there would be no problem filing joint return. I do not understand why the bookkeeper would advise against it. The problem...

Tax Law (Questions About Taxes): Changing my fund position, t rowe price, simple ira
t rowe price, simple ira, ira distribution: Hi Steven, After August 2005 you can roll it over to an IRA or to an employer plan. Before that time you can roll it over only to a SIMPLE IRA. If you take a distribution after August 2005, the penalty is reduced to 10%. SIMPLE IRAs are available to...

Tax Law (Questions About Taxes): Changing tax basis for capital gains, inheritance tax, joe thanks
inheritance tax, joe thanks, apartment house: Joe, Thanks for your question. I presume you wish to file an amended 2003 return restating the taxable gain based on a revision in basis on the property. You can certainly file such an amended return. However, the IRS may challenge it and deny the...

Tax Law (Questions About Taxes): Changing my W-2 once I start my mortgage payments, form 1040 es, withholding allowances
form 1040 es, withholding allowances, stancil: Diane, Thanks for your question. I presume you mean you want to modify your W-4, which is the form that adjusts your withholding allowances. This, in turn, will result in fewer taxes being withheld. There is a worksheet with the W-4 that may be of...

Tax Law (Questions About Taxes): Chapter 11 / 1099-A on rental prop, depreciation deductions, nol carryover
depreciation deductions, nol carryover, volunteer forum: Lecia, Thanks for your question. Since he was in bankruptcy, the gain on the foreclosure is not taxable. The NOL can be used as a part of the entire return, there are restrictions, and I could not give you a detailed answer in this volunteer forum(I,...

Tax Law (Questions About Taxes): Charge off of Mortgage debt (tax), debt forgiveness, mortgage debt
debt forgiveness, mortgage debt, stancil: Allen, Thanks for your question. Yes, if you are not bankrupt or insolvent you owe taxes on the amount of forgiven debt. It appears that you had $80,000 forgiven. The forgiven debt is not taxable if you declared bankruptcy. Also, it is not taxable...

Tax Law (Questions About Taxes): Chargin Taxes, lingerie business, victoria s secret
lingerie business, victoria s secret, state sales tax: Morma your best bet is to get a resale certificate from your distributors say Victoria s Secret, by the way you should also register with your state sales tax and have them give you a number to give your suppliers so they do not charge you a sales tax....

Tax Law (Questions About Taxes): Charitable Contribution - Sole Propertiership, sole proprietorship, labor expenses
sole proprietorship, labor expenses, itemized deduction: John, Thanks for your question. Donation of labor is not considered a charitable contribution. In order to obtain a deduction for this, you would have to bill the organization, they would pay you, and you would make a cash contribution to the organization....

Tax Law (Questions About Taxes): Charitable contributions, itemized deduction, charitable contribution
itemized deduction, charitable contribution, charitable contributions: Hi, The value of your time is not deductible as a charitable contribution but any expenses you incurred to create this would be deductible including your mileage. The mileage would be deducted under volunteer miles as an itemized deduction. Regards,...

Tax Law (Questions About Taxes): Charitable contributions with PRE-tax dollars, philanthropic donations, worthwhile charity
philanthropic donations, worthwhile charity, congress senate: Dear Tom, Thanks to our COngress, Senate and President, Corporations can do a lot more and take a lot more tax breaks than we individuals.... Unless, there is a charity that your corporation deals with and they allow PRE-TAX contributions like to United...

Tax Law (Questions About Taxes): Charitable contributions, consignment shop, charitable contributions
consignment shop, charitable contributions, taking the time: Dear Danielle, You gave give estimates on what the items cost you originally.... However, this figure MUST be quite higher than the Charity told you it was worth.. The IRS considers charity items to be the FMV (fair market value) that you would get for...

Tax Law (Questions About Taxes): Charitable deduction, charitable deduction, stancil
charitable deduction, stancil, ebay: Milton, Thanks for your question. I am familiar with that program, as well as another one called Deduction Pro. One of them, I am not sure which, bases its values on eBay sale prices. I would say that they are pretty good as guidelines for taking...

Tax Law (Questions About Taxes): Charitable deduction, charitable donations, information feed
charitable donations, information feed, charitable deduction: Dear Milton, Turbotax and Quicken MUST have software that is totally based on the guidelines set by the IRS.... So I would use the It s Deductable and see what they come up with.... REMEMBER, any software program is only as good as the information...

Tax Law (Questions About Taxes): Charitable donations., charitable donations, salvation army
charitable donations, salvation army, thrift shop: If they are all in good or better condition, you self value them to a thrift shop or garage sale value. If the value hits $5,000, you must get them appraised by an independent qualified appraiser. You can find valuations by either going to a local thrift...

Tax Law (Questions About Taxes): Charitable giving, head of household, stancil
head of household, stancil, standard deduction: Kim, It depends on your filing status. The standard deduction for married filing joint is $10,300, single $5,150, head of household $7,550. The total of your itemized deductions (including contributions) would have to exceed that amount to reduce your...

Tax Law (Questions About Taxes): Charitable tax write-off, stancil, mortgage payment
stancil, mortgage payment, charitable contribution: Kelly, Thanks for your question. You would not be able to take a charitable contribution or other deduction for that use. If the Florida home is a second home (as opposed to third or more), the mortgage interest and taxes are deductible as itemized...

Tax Law (Questions About Taxes): Charitible Contributions to Church, charitible donations, irs rule
charitible donations, irs rule, cash donations: M, Thanks for your question. The legislation you refer to was passed as of August 17, but the new reporting requirements did not go into effect until January 1 of this year. For 2006, cash contributions of $250 or less for each contribution do not have...

Tax Law (Questions About Taxes): Charitible Contributions, dana dana, trip mileage
dana dana, trip mileage, praise band: Dana, Thanks for your question. You can deduct mileage as a charitable contribution for trips to the church for practice and the like. However, you cannot deduct mileage for attendance at worship, even if you are playing in the band. The IRS position...

Tax Law (Questions About Taxes): Charity Contribution, chairty, case thanks
chairty, case thanks, approch: Varghese, Thanks for your question. If you sell the stock, you will pay a tax on the gain and have less to contribute to the chairty. If you have held the stocks for 12 months or more the gain will be at the preferred capital gain rate (5 or 15%). ...

Tax Law (Questions About Taxes): Charity Deduction for 2007, irs web site, irs gov
irs web site, irs gov, charitable deductions: Hi, Go to the IRS web site www.irs.gov and type charitable contributions in the search box. That should give you links to the new regulations. They aren t doing away with charitable contributions but they are requiring more documentation. I think that...

Tax Law (Questions About Taxes): Charity, stancil, vacation days
stancil, vacation days, charitable contribution: Darin, Thanks for your question. That would not be a charitable contribution for two reasons. First, you have not paid taxes on the accrued vacation time, therefore you have not tax basis in the donated time. Second, it is donated to an individual....

Tax Law (Questions About Taxes): Child Care Credit with Divorced Parents, child care expenses, child care credit
child care expenses, child care credit, dependency exemption: Sherri, Thanks for your question. First, only the person actually paying the child care expenses can take the credit, so if he did not pay any of them, he cannot take any of the credit. Second, although there are exceptions, generally you must be...

Tax Law (Questions About Taxes): Child Care Credit, federal tax return, montessori pre school
federal tax return, montessori pre school, child care credit: Daer Hazel, SInce this child is NOT in the 1st grade and since this is considered pre-school and the child is only 3, she can still deduct ONLY the prorated amount for the days the child was ACTUALLY there.... If your daughter only taught 2 months out of...

Tax Law (Questions About Taxes): Child Care / Dependent Care Taxes, dependent care credit, tax evasion
dependent care credit, tax evasion, self employment taxes: Christina, Thanks for your question. Any amount care providers receive for rendering services is taxable income to them. They would report their earnings on Schedule C. They may deduct any expenses associated with earning the money. If their net profit...

Tax Law (Questions About Taxes): Child Care taxes, form 1040 schedule c, child care expenses
form 1040 schedule c, child care expenses, social security number: Dear Stacie, If this person just watches your child so you can go out to have fun or an evening out etc, then this does NOT qualify as a child care expense... However, if she watches your son during the day so you can go to WORK, then this does count as...

Tax Law (Questions About Taxes): Child Care, self employment taxes, form 1040 es
self employment taxes, form 1040 es, amy thanks: Amy, Thanks for your question. You will need to report your earnings and expenses on Schedule C of the 1040. In addition, you will calculate your self-employment taxes on Schedule SE. You pay your estimated taxes on the 15th of April, June, September,...

Tax Law (Questions About Taxes): Child Claim, head of household, expecting a child
head of household, expecting a child, college funding: His child - that is not your problem unless that child is living with you. The child you are having together - you are correct that he cannot claim him/her since your parents are supporting you both. HOWEVER, if he gets his act together and starts to support...

Tax Law (Questions About Taxes): Child Claims, irs, ea
irs, ea, mail: What you can do is mail in your return claiming both children. The IRS will send you mail asking you to prove that no one else supported the children. If you can prove that to their satisfaction, you will get to keep your entire refund. Helen, EA in P...

Tax Law (Questions About Taxes): Child Credit, tax return, ea
tax return, ea, diana: Diana, even if he holds out and is born a minute before midnight on 12/31, you can claim him for 2006. Now, if he is really stubborn and waits til a minute after midnight on 12/31 (or technically 1/1/07), you will have to wait til 2007 to claim him. Best...

Tax Law (Questions About Taxes): Child Credit and Divorce, divorce papers, custodial parent
divorce papers, custodial parent, child credit: Hi, You didn t say whether the children live with you or with him or who supports them. Generally the custodial parent has the tax related benefits of the children unless the terms of the divorce state otherwise. Perhaps you could get another copy of...

Tax Law (Questions About Taxes): Child Credit, child tax credit, food stamps
child tax credit, food stamps, duaghter: Dear Edward, As long as you can prove that you pay more than 50% of her grandson s needs AND your daughter s needs, then you can claim BOTH of them as dependents on your tax return and take the child tax credit for your grandson.... When figuring the support...

Tax Law (Questions About Taxes): Child care credit, child care credit, daycare expenses
child care credit, daycare expenses, time results: correct about the dependant. You can also claim the day care expense in a joint return I guess you have calculated and have worked out the three possibilities remember that married filing separately most of the time results in a higher combined ta...

Tax Law (Questions About Taxes): Child claiming, share custody, stancil
share custody, stancil, jeremiah: Jeremiah, Thanks for your question. No, a person can only be claimed once per year as a dependent. You must decide between the two of you who gets the exemption. It can change from year to year. If there is a dispute, he can be claimed by the parent...

Tax Law (Questions About Taxes): Child Day Care Expenses, child day care, daycare
child day care, daycare, care expenses: Who has custody of the children? That is the ONLY parent that can claim child care. And since it appears you are paying support, he is the custodial parent. Therefore he is the one that can claim the care. If custody is joint, it is who pays it. Helen,...

Tax Law (Questions About Taxes): Child deduction eligibility, salt lake city utah, social security number
salt lake city utah, social security number, necessary paperwork: Hi Ryan, Congratulations on your coming bundle of joy. You can claim the child s exemption if he/she is born anytime during the year - even December 31. You will need his/her social security number so be sure to do the necessary paperwork to have that....

Tax Law (Questions About Taxes): Child dependant, form 8332, divorce decree
form 8332, divorce decree, custodial parent: Ebbie, The tax laws for claiming a dependent changed in 2005. Under the old rules a parent providing more than 50% of a child s support would be entitled to claim the child as a dependent. This was true unless in the parent s divorce decree, the deduction...

Tax Law (Questions About Taxes): Child question, dependency exemption, stancil
dependency exemption, stancil, time student: Kyla, Thanks for your question. I apologize for the delay in answering your question. However, the AllExperts website has been malfunctioning and I have not been able to answer my questions for a couple of days. If the child is yours, you can take...

Tax Law (Questions About Taxes): Child Support and deductions, divorce agreement, usa territory
divorce agreement, usa territory, dependency exemption: Support is decided by making a determination as to how much was provided the child by each party involved. Housing, medical care, food, clothing, education, etc. are all included. For you to meet the residency test, the child must have lived in the US...

Tax Law (Questions About Taxes): Child Support Tax Question, ira contributions, standard deduction
ira contributions, standard deduction, stancil: Scott, Thanks for your question. If they file separately, her refund should not be afffected. However, I cannot guarantee that will happen. Under the circumstances, it is the best she can do. One alternative, however is to have less withheld so that...

Tax Law (Questions About Taxes): Child Support and Taxes, dependency exemption, w2 forms
dependency exemption, w2 forms, stancil: Via, Thanks for your question. Child support is an issue totally unrelated to the W-2. Child support is not a deduction. However, you may be able to take a dependency exemption for the child if the custodial parent agrees to allow it. John Stancil,...

Tax Law (Questions About Taxes): Child Support and Taxes, child support payments, form 8332
child support payments, form 8332, court document: Your child support payments are considered to be money the custodial parent paid to support the child instead of you. Unless she allows you to claim the exemption by signing Form 8332 and giving this to you or you obtain a court document allowing you to claim...

Tax Law (Questions About Taxes): Child Tax Credit, child care credit, child tax credit
child care credit, child tax credit, tax id number: Shimpy, Thanks for your question. You can claim the child tax credit and the child care credit if you meet all the requirements for those. Since you do not have a SS number for her, you can use the Tax ID number issued to her. Hope this helps. ...

Tax Law (Questions About Taxes): Child Tax Credit and Refunds, refundable credit, where my tax refund
refundable credit, where my tax refund, child tax credit: Tom, Thanks for your question. Yes. The credit for the first two children is a non-refundable credit, which means that you cannot get back more than you paid in. However, the credit for more than two children is a refundable credit, meaning you could...

Tax Law (Questions About Taxes): Child Tax Credit, child tax credit, stancil
child tax credit, stancil, july 26th: Chris, Thanks for your question. Elibibility for the child tax credit state that the child must not have reached their 17th birthday as of December 31. Therefore, she is not eligible for the credit in 2005. Hope this helps. John Stancil, CPA ...

Tax Law (Questions About Taxes): Child tax credit, births and deaths, child tax credit
births and deaths, child tax credit, dependency exemption: Marel, Thanks for your question. That is almost correct. You can claim a full year s dependency exemption for anyone qualifying as a dependent during the year - including births and deaths. So a baby born on Jan 1 or a baby born on Dec 31 can be taken...

Tax Law (Questions About Taxes): Childcare, social security number, self employment taxes
social security number, self employment taxes, stancil: Melissa, Thanks for your question. You should report your earnings on Schedule C. If you had any expenses in earning the money, you can deduct them on that form. You will also need to complete Schedule SE for the self-employment taxes. Hope this...

Tax Law (Questions About Taxes): Childcare expenses to pay for baby-sitting, social security and medicare, flexible account
social security and medicare, flexible account, childcare expenses: 1099 s are only enclosed with the return when there is withholding on them and you do not file electronically. The IRS knows you filed the 1099 because you send them a copy and they match the copy you send to her social security number on her return. ...

Tax Law (Questions About Taxes): Childcare Provider Question, social security number, amount of money
social security number, amount of money, paperwork: You should give them a statement - on that it should have your name, address, social security number and the amount of money they have paid you over the year. At a minimum, you must give them your name, address (which I know they should have!) and your...

Tax Law (Questions About Taxes): Childcare, child care expenses, www irs gov
child care expenses, www irs gov, form 1099 misc: Dear Mersida, YES, the W-9 must be filled out and signed by the child care provider and you KEEP it with your 2005 tax information as a permanent record.... As for the 1099-misc, if you paid this person more than $599.00, then you SHOULD issue a 1099-misc...

Tax Law (Questions About Taxes): Christmas Bonus Taxed Differently, christmas bonus, salaried employee
christmas bonus, salaried employee, extra income: Tim: Unless you have some unusual extra income other than the $31,000.00 your top tax rate is 28%. You will not know for sure until you file your tax return. If your employer withhold and reports to the IRS more tax than he should you will get it back...

Tax Law (Questions About Taxes): Christmas bonus taxed, christmas bonus, conventional wisdom
christmas bonus, conventional wisdom, pay stub: Donna: I can not answer that question. It is your employer decision which check book to write the check from and his decision what tax rate to choose. I know the tax rate you are stating does not follow conventional wisdom. However, fear not, for when...

Tax Law (Questions About Taxes): Church Benevolence Funds, michael chitwood, irs regulation
michael chitwood, irs regulation, exempt purpose: Barbara, Thanks for your question. I am not aware of any specific regulation as such. However, there is an overarching principal involved. The church should not give money to an individual if giving that money is outside the exempt purpose of the organization....

Tax Law (Questions About Taxes): Church Book Store, adjusted taxable income, tax exempt status
adjusted taxable income, tax exempt status, dave thanks: Dave, Thanks for your question. Paying no rent, but donating an amount to the church carries two hazards. First, as a corporation you can only take as a charitable contribution an amount equal to 10% of your adjusted taxable income. Second, there...

Tax Law (Questions About Taxes): Church's benevolence and assistance, exempt purpose, c organization
exempt purpose, c organization, stancil: Barbara, Thanks for your question. Gifts are not considered income, therefore, the recipients of your benevolence are not subject to any tax on these gifts. Not for profit organizations usually refer to expenditures rather than expenses. This is...

Tax Law (Questions About Taxes): Church buying car for pastor, stancil, finance company
stancil, finance company, tax question: Karen, Thanks for your question. If the pastor is legally liable for the car payments, and the title is transferred to the church, he has made a contribution to the church. If the church allows him to use the car, then he must keep track of personal...

Tax Law (Questions About Taxes): Church Control, designated accounts., discretionary account, thanksgiving service
discretionary account, thanksgiving service, ministry books: Jeff, Thanks for your questions. Fun and games in church administration, right? 1. I see no problem with this. If the account goes away, just put it in the regular church budget funds OR return it to the donor. 2. No real problem here. But see...

Tax Law (Questions About Taxes): Church Donation - minimum itemization?, tithes offerings, adjusted gross income
tithes offerings, adjusted gross income, church donation: Bridget, Thanks for your question. A charitable contribution is an itemized deduction. In order to itemize, rather than take the standard deduction, you must have over $10,000 in deductions ($5,000 if single). Itemized deductions inlcude medical...

Tax Law (Questions About Taxes): Church donation receipt, de minimus rule, acknowledgement letter
de minimus rule, acknowledgement letter, de minimis: A business is not required to document expenses under $75, however it would be a good idea for them to keep the receipt for a three years if it s ever questioned. I would advise them to document it as they would document any contribution of cash/check....

Tax Law (Questions About Taxes): Church donation, cash flow problem, charitable contribution deduction
cash flow problem, charitable contribution deduction, income tax liability: The ethical concern that I was referring to is the fact that the lottery ticket you are holding is worth $X already. In other words, one way of viewing is that you already have something of value. Not a good analogy, but it is somewhat like assigning your...

Tax Law (Questions About Taxes): Church donations, church donations, cash donations
church donations, cash donations, cash contributions: Danny, Thanks for your question. The IRS does not require a receipt for cash contributions below $250. However, if they have reason to doubt you, you may have to show that you regularly attended that church, that you had the financial means to contribute...

Tax Law (Questions About Taxes): Church Expenses, home office expenses, income tax purposes
home office expenses, income tax purposes, pastoral position: The limited instances where an employee can deduct home office expenses are situations where office area is used regularly and exclusively for the business purpose and is for the convenience of the employER - not just appropriate or helpful. It is a pretty...

Tax Law (Questions About Taxes): Church gift to individual?, post secondary education, mark thanks
post secondary education, mark thanks, hello john: Mark, Thanks for your question. The gift to the missionary is not considered taxable income to him. You do not need to report it to the IRS. Technically, there is no limit, but if the amounts became excessive, the IRS would question the true intent...

Tax Law (Questions About Taxes): Church Law - Inurement, college text books, scholarship fund
college text books, scholarship fund, stancil: Lynn, Thanks for your question. Not likely. If this were the only thing the church was doing, it might be a problem. But this is only one of several activities taken on by the church. Inurement occurs when the organization is operated for the benefit...

Tax Law (Questions About Taxes): Church Musician Taxes, income tax withholding, state income taxes
income tax withholding, state income taxes, church musician: Rob, Thanks for your question. Yes, you shold be classified as an employee and they should be deducting social security, medicare, federal and state income taxes (if your earnings are sufficient for income tax withholding). You can complete the worksheet...

Tax Law (Questions About Taxes): Church/Pastor issues, self employment taxes, existing mortgage
self employment taxes, existing mortgage, housing allowance: G, Thanks for your question. From a tax standpoint, there are some significant issues. He will owe income tax and self-employment taxes on the value of the house. However, I presume that you would transfer the mortgage responsibility to him also. ...

Tax Law (Questions About Taxes): Church Provided Housing, irs publications, irs tax
irs publications, irs tax, minister of music: Jason, Thanks for your question. The fair market rental value of the house is added to your social security wages, but is not subject to income tax. Code Section 119 and assorted Regulations. You may wise to consult IRS Publications 517 and 1828...

Tax Law (Questions About Taxes): Church paid Preacher expenses, pay health insurance, income tax purposes
pay health insurance, income tax purposes, dental eye: Roger, Thanks for your questions. The church can pay those medical expenses, but it must be a part of a defined plan. The area of employee benefits is outside my area of expertise, but I believe that the plan cannot be just for him (unless he is the...

Tax Law (Questions About Taxes): Church property rental tax liability, federal income taxes, capital gains tax
federal income taxes, capital gains tax, tax liabilities: Daniel, The issue here is whether you are carrying on a business. Since it is being done on a regular basis it has the characteristics of a business. However, there are a couple of outs for you. First, if the net income from the rental activity is...

Tax Law (Questions About Taxes): Church purchasing property from business, charitable deductions, stancil
charitable deductions, stancil, charitable contribution: Frank, Thanks for your question. The church could purchase the grassy lot only if the seller were willing to sell only the lot. The church does not have the power to give benefits in lieu of tax payments. If the lot is sold to the church for less than...

Tax Law (Questions About Taxes): Church Related and another., recumbent stationary bike, itemized deduction
recumbent stationary bike, itemized deduction, stancil: Brian, Thanks for your question. No, you cannot deduct the mileage to the church. Even though you are volunteering, the IRS position is that you would go to church anyway, making this non-deductible mileage. Regarding the bike, It can be deducted...

Tax Law (Questions About Taxes): Church run preschool, church treasurer, stancil
church treasurer, stancil, pre school: Kathy, Thanks for your question. No, the only issue I see is that, since the pre-school is using the church ID number, the church treasurer should be kept abreast of the finances of the pre-school, but it is not necessary to have their own ID. Hope...

Tax Law (Questions About Taxes): Church service providers, employer employee relationship, unrelated business income
employer employee relationship, unrelated business income, church pianist: Larry, Thanks for your question. Yes, anyone who receives compensation in an employer-employee relationship should be considered an employee, with withholding for income taxes, social security, and medicare. Of course, this also means matching the emplolyee...

Tax Law (Questions About Taxes): Church's Tax Exempt Status, unrelated business income, tax exempt status
unrelated business income, tax exempt status, leasing property: Kim, Thanks for your question. This is referred to as unrelated business income, and normally subjects the organization to income tax on the amount in question. There is an exception if the amount of unrelated business income is less than $1,000. If...

Tax Law (Questions About Taxes): Church Tax info, irs publication, knowing numbers
irs publication, knowing numbers, amazon: Jessica, Thanks for your question. First, the only taxes the church itself is concerned with are employment taxes. The church does not have to file a tax return reporting its income. You sound like someone who picks up on things relatively easy....

Tax Law (Questions About Taxes): Church/Taxes/Ordination, housing allowance, stancil
housing allowance, stancil, associate pastor: Nate, Thanks for your question. The rules regarding this are rather loose. If you are recognized by your congregation as one who performs these duties and are licensed/ordained by that church you are considered a minister for tax purposes. Hope this...

Tax Law (Questions About Taxes): Church, social security tax, irs publications
social security tax, irs publications, income tax purposes: Randy, Thanks for your question. All employees, including ministerial staff, should receive a W-2 at the end of the year. Non-ministerial employees should have withholding taken for the taxes you mention. Ministerial staff does not have withholding...

Tax Law (Questions About Taxes): City tax, new britian, city of new britain
new britian, city of new britain, grievance procedure: Mark, Thanks for your question. Since this is a city matter, I cannot help you. I do not know anything about the taxes or laws of the City of New Britian. It would seem, however, that since they say there is no grevience procedure your only alternative...

Tax Law (Questions About Taxes): Civil Service Annuity Retirement, health insurance premiums, descending scale
health insurance premiums, descending scale, side question: Hi, The CPA may know something that neither of us know but under the Simplified method you divide the contributions by a number determined by the age of the individual at the time the payments began. For an age not greater than 55 you divide by 360. If...

Tax Law (Questions About Taxes): Civilian Contractors in Iraq, civilian contractors in iraq, private security in iraq
civilian contractors in iraq, private security in iraq, field guidance: Meleiana, Thanks for your question. I am unaware of any exclusion available for anyone other than military or civilian employees of the United States government. Quoting from Commerce Clearning House Standard Federal Tax Reporter: The combat zone military...

Tax Law (Questions About Taxes): CLAIMING GRANDSON?, time student, full time
time student, full time, parents: Hi, You can claim him if he lived with you for more than half the year, you paid more than half of his support, he didn t earn more than $3300 and one of his parents doesn t have a superior right to his dependency. If he is a full time student under age...

Tax Law (Questions About Taxes): Claim Child on taxes, dental bills, stancil
dental bills, stancil, custodial parent: To quote from the Department of Labor: A domestic relations order is a judgment, decree, or order (including the approval of a property settlement) that is made pursuant to state domestic relations law (including community property law) and that relates...

Tax Law (Questions About Taxes): Claim Child, www irs gov, t claim
www irs gov, t claim, grandparents: It will be hard to undue it. Typically, the other spouse claims the child too and then they present evidence to the IRS. The grandparents should amend and claim the child if he/she lived with them for more than six months. This will get the ball rolling. You...

Tax Law (Questions About Taxes): Claim for expenses spent by an Independent contractor., working in russia, company abc
working in russia, company abc, per diem: Hi Anoop there are per diem allowances for people who travel for a living (for London it is less than $200) I can not think of anybody so busy that can not get a receipt furthermore the employer will need to prove they ordinary and necessary for the business...

Tax Law (Questions About Taxes): When to Claim losses due to sale of mutual funds, time phil, capital gains
time phil, capital gains, mutual funds: Dear Phil, It does not work that way.... You must do the 1040-schedule-D in the YEAR you had the losses and gains and then if you have an overall loss, you must take the $3000 and then carry forward the remaining loss to the next year and take it then.......

Tax Law (Questions About Taxes): Claimed dependant, irs web site, irs law
irs web site, irs law, irs gov: Dear Ric, The IRS law when changed did not make provisions very clear for children who were left back in a grade during k-12 when it said that a child had to be under the age of 19 at the END of 2005 or under age 24 and a full time student... However,...

Tax Law (Questions About Taxes): Claiming myself, student loan interest, education credits
student loan interest, education credits, living expenses: Hi, If your parents don t pay more than half of your support, they aren t allowed to claim you as a dependent. From what you wrote you support yourself so you can claim yourself and claim your student loan interest and perhaps one of the education credits...

Tax Law (Questions About Taxes): Claiming 2 States on W-2 for 2004, t claim, state withholding
t claim, state withholding, stancil: Leslie, Thanks for your question. If he did not have any residence or income in LA in the year in question, he should not owe any taxes. Just write them a response to that effect. A W-2 doesn t claim anything, however, if your income is earned in...

Tax Law (Questions About Taxes): Claiming Adult Daughter on taxes, child support payments, irs gov
child support payments, irs gov, support checks: Dear Nanci, You can NOT consider the child support payments to the MOTHER as YOUR support of this child.... I do not have enough OTHER information needed about this child inorder to answer WHO gets to claim her... You MUST go to www.irs.gov download...

Tax Law (Questions About Taxes): Claiming a adult dependent, gross income test, citizenship test
gross income test, citizenship test, dependency exemption: John, Thanks for your question. There are 5 tests for dependency. All five must be met in order to take the dependency exemption. You re probably ok on the first 3 - 1. Relationship test - must be related to the person taking the exemption. 2....

Tax Law (Questions About Taxes): Claiming my Brother, shoes and clothes, true supporter
shoes and clothes, true supporter, grand mother: Dear John, If he files and claims your brother, then BOTH of you will get letters from the IRS requesting that you PROVE that you have provided MORE than 50% of the childs support.... From what this sounds like to me, neither of you pay for more than 50%...

Tax Law (Questions About Taxes): Claiming babysitting?, child care provider, dependent credit
child care provider, dependent credit, self employment taxes: Yris, Thanks for your question. Yes, you can take the child care/dependent credit if you meet the qualifications. However, to get the credit you must provide the social security number of the child care provider. If she will not provide it, you can...

Tax Law (Questions About Taxes): Claiming both of my kids, daycare, mike thanks
daycare, mike thanks, relevant criteria: Mike, Thanks for your question. The relevant criteria here are the support and residency tests. You must provide over half the support and they must live with you more than half the time. This entitles you to the exemption. Hope this helps. John...

Tax Law (Questions About Taxes): Claiming certain dependants, adjusted gross income, child tax credit
adjusted gross income, child tax credit, dependency exemption: Sam, Thanks for your question. If you provide over half their support, they lived in your household for more than 6 months, and are under age 19, you can claim a dependency exemption for them. If they are under age 17 and you can take a dependency...

Tax Law (Questions About Taxes): Claiming a child, additional child tax credit, child tax credit
additional child tax credit, child tax credit, stancil: Crystal, Thanks for your question. Yes, you can file the taxes and claim the two exemptions. If you can be claimed as someone else s dependent, you may still file and may qualify for the additional child tax credit for your son. Hope this helps....

Tax Law (Questions About Taxes): Claiming a child, stancil, bfd
stancil, bfd, child support: Michelle, Thanks for your question. Until the order is rescinded, that is what will guide the IRS. However, if the two of you can reach a mutual agreement and put it in writing, the IRS will likely honor that agreement. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Claiming my child as a dependant, child tax credit, dependency exemption
child tax credit, dependency exemption, stancil: Nicole, Thanks for your question. Unless the order specifies that he loses the dependency exemption for failure to pay child support, he is entitled to the exemption. You can take the credit for child care but not the child tax credit. Hope this...

Tax Law (Questions About Taxes): Claiming a child as a dependent, legal question, tax questions
legal question, tax questions, health life: Melissa: I am truly sorry about your situation. However, I can only address tax questions. For legal question you must consult with an attorney. I am not an attorney therefore I would not be able to give you an answer to your follow up question. I...

Tax Law (Questions About Taxes): Claiming a child that is on welfare, head of household, straight answer
head of household, straight answer, dependants: the fact that your parents are on social security is not significant as they may be required to file a tax return however you can claim her as a dependant your parents may also qualify as your dependants if you provided more than half of their support...

Tax Law (Questions About Taxes): Claiming a child that is on welfare, www irs gov, welfare benefits
www irs gov, welfare benefits, gross income: She must have lived with you more than 6 months(6 months plusd 1 day), have a valid ss#, she must have gross income(not her welfare benefits) and you must have paid more than 50% of her total support for the tax year. The welfare benefits she receives will...

Tax Law (Questions About Taxes): Claiming a child, intity, divorce decree
intity, divorce decree, dear jennifer: Dear Jennifer, This is a GREY area here.... By law, he has the right to claim one of the children on his return... If it is NOT contingent on child support, then he can do just that... However, the IRS looks at the custodial parent (you in this case)...

Tax Law (Questions About Taxes): Claiming children, marginal tax bracket, heart defect
marginal tax bracket, heart defect, tax benefit: Angel, Thanks for your question. I am sorry I did not answer sooner, but the allExperts.com website has been down and I was unable to access my questions. The best tax benefit would be for the person who is in the highest marginal tax bracket to take...

Tax Law (Questions About Taxes): Claiming children as dependent, divorce agreement, agreement states
divorce agreement, agreement states, one year one: Dear Robert, Your wife has the TOTAL RIGHT per the divorce agreement, to claim the correct amount of children on her year whether she has income or not.... You will file a JOINT return with her and you and she will claim the number of children she is allowed...

Tax Law (Questions About Taxes): Claiming children as dependents, divorce decree, one of the boys
divorce decree, one of the boys, full custody: Kerrie, Thanks for your question. Not if the divorce decree or QDRO specifies that he is the one to claim them. She cannot take the exemption without his permission or a change in the court ruling. Send the IRS a copy of the court documents. That...

Tax Law (Questions About Taxes): Claiming children as dependents, divorce agreement, divorce decree
divorce agreement, divorce decree, agreement states: Robert, Thanks for your question. You left some words out of your question, but I think I know what you were asking. If not, resend the question. She does not have to have income in order to file jointly with you, and you can claim her children on...

Tax Law (Questions About Taxes): Claiming children, income tax returns, child tax credit
income tax returns, child tax credit, divorce decree: Dear Tina, I think this idea STINKS..... He is thinking of himself and his tax liability and not you or the children... He is NOT going to get back enough to make this worth you while and if you do this then you will LOOSE money on your tax return which...

Tax Law (Questions About Taxes): Claiming as Dependant, time student, dependants
time student, dependants, full time: Hi Jason, You could claim your own exemption as a student if your parents don t pay more than half of your support. Usually it works out better for parents to claim a full time student but, of course, I don t know your particular situation. Regards,...

Tax Law (Questions About Taxes): Claiming Dependants, irs tax law, divorce papers
irs tax law, divorce papers, stancil: Troy, Thanks for your question. Unfortunately for you, the judge has the last word here. Your recourse would be 1) File an appeal, 2) File for a new hearing, 3) Try to work it out with you ex. Sorry I can t be of more help. John Stancil, CP...

Tax Law (Questions About Taxes): Claiming Dependants, dependent exemptions, overnight visits
dependent exemptions, overnight visits, year one: Yvette, Beginning in 2005, the rules for who can claim a qualifying child as a dependent changed. The amount of support provided for the qualified child is no longer relevant. The key factor in determining who can claim a dependent is how many days a...

Tax Law (Questions About Taxes): Claiming Dependants, divorce agreement, t claim
divorce agreement, t claim, debby: Hi Debby, You can t claim someone s exemption for just half of the year. The parent who paid more than half of the child s support is entitled to the exemption. If neither paid more than half they need to agree on who is to claim the exemption. If...

Tax Law (Questions About Taxes): Claiming Dependent, eic, 37 years
eic, 37 years, department of labor: Dear Nichole, First of all the sister made more than $3000.00 so therefore, your boyfriend can NOT claim her on his return because of her income.... She should file her own return, showing the amount she earned in 2004 and don t forget to tell her to...

Tax Law (Questions About Taxes): Claiming Dependents, gross income test, tmo blackberry
gross income test, tmo blackberry, gross income tax: Lindsey, Thanks for your question. The key here is the gross income test. This specifies that the person cannot have $3,200 or more in gross income. Tax exempt income does not count toward gross income. If the worker s compensation is not a retirement...

Tax Law (Questions About Taxes): Claiming Dependents, claiming dependents, dependency exemption
claiming dependents, dependency exemption, head of household: Brittany, Thanks for your question. There is no such thing as a renter s deduction. If you are renting property with the intent to make a profit you show the income and expenses associated with the rental on Schedule E. You can take him as a dependent...

Tax Law (Questions About Taxes): Claiming of Dependents, child support obligations, child tax credit
child support obligations, child tax credit, break ups: Dear Gena, Your boyfriend should file his taxes claiming the son as a dependent and if the child has already been claimed, the IRS will write him back and ask for more proof.... Also, attach the court order to the tax return and make sure you send copies...

Tax Law (Questions About Taxes): Claiming my daughter when I made over $30,000 in 2004, head of household status, child tax credit
head of household status, child tax credit, head of household: Dear April, I you and your boyfriend (child s father) have NEVER been legally married, then YOU are considered by the IRS as being the CUSTODIAL PARENT to this child... IF you and he were never married and therefore never divorced, then there is no legal...

Tax Law (Questions About Taxes): Claiming dependant, dependant, ea
dependant, ea, social security: It depends. If her income (NOT counting Social security) is under $3300 for 2006, and you pay over half her support, the answer is yes. If her income is more than that, you cannot claim her. BTW - I am assuming she is a US citizen and a widow. Helen,...

Tax Law (Questions About Taxes): Claiming dependence, marraige, tax bracket
marraige, tax bracket, unresolved issues: Alisha: Personally I would not consider a person that is married a dependant of mine. The amount of tax savings even at the highest tax bracket would amount only $500.- $600. However to answer the question his parents would only have answer if he is...

Tax Law (Questions About Taxes): Claiming a dependent, stancil, gross income
stancil, gross income, 24 years: Shanon, Thanks for your question. You can claim her as a dependent if the following criteria are met: 1. She was a member of your household for the entire year. 2. Her gross income was less than $3,300. 3. You provided over half her support. Hope...

Tax Law (Questions About Taxes): Claiming a dependent for 6 months, child tax credit, form 8332
child tax credit, form 8332, divorce decree: You cannot claim a half a child, but if your decree says you get to claim the child, you get to claim the child. If the child was not with the mother for 2 months, then she had custody for only 4 months and you win the tiebreaker rules. File your return...

Tax Law (Questions About Taxes): Claiming a dependent with a dependent., stepdaughter, full custody
stepdaughter, full custody, custodial parent: The custodial parent has the right to claim the child so that looks like her mom. The custodial parent also has the right to allow the other parent to claim the child if the custodial parent so desires. Unless your stepdaughter is self sufficient and has...

Tax Law (Questions About Taxes): Claiming a dependent, medical expense deduction, dependency exemption
medical expense deduction, dependency exemption, lumbar disk: Hi, You can file an amended return to claim him for 2003. Did he actually file a return for 2003? You wrote that his return showed no income so there would have been no reason for him to file a return. But, if he did, then you would need to file an amended...

Tax Law (Questions About Taxes): Claiming dependents, claiming dependents, dependency exemption
claiming dependents, dependency exemption, daycare: Ron, No, only one person can claim a dependency exemption each year. You can alternate years, however. In order to take the exemption and the EIC, the child must be a qualifying child. This limits it to the parent having custody for more than half...

Tax Law (Questions About Taxes): Claiming Grants, scholarship money, qualified education expenses
scholarship money, qualified education expenses, pell grants: Cindy, Thanks for your question. If the scholarship was used for qualified education expenses, - tuition, books, course fees - it is not taxable. Any portion used for personal expenses such as food and housing are taxable. Some grants are taxable,...

Tax Law (Questions About Taxes): Claiming interest on second Condo, home mortgage interest, rental expenses
home mortgage interest, rental expenses, standard deduction: Hi Ed, You can deduct the mortgage interest paid on the rental condo as one of your rental expenses which will reduce your taxable income from the rental. Unless you have itemized deductions that you can t claim because they are less than the standard...

Tax Law (Questions About Taxes): Claiming a legal alien as a dependant., legal alien, social security number
legal alien, social security number, head of household: Juan, Thanks for your question. You do not qualify to take the dependency exemption for her. As a non-relative she must have lived in your household for the entire year. Additionally, she must have gross income of less than $3,200 and you must provide...

Tax Law (Questions About Taxes): Claiming live in as dependent, gross income test, irs rules
gross income test, irs rules, citizenship test: Eugene, Thanks for your question. There are 5 tests for dependency. You must meet all five tests in order to take a dependency exemption. 1. Citizenship test - The dependent must be a US citizen or resident. 2. Relationship test - The dependent...

Tax Law (Questions About Taxes): Claiming a Newborn baby, head of household, new babies
head of household, new babies, newborn baby: Congrats on the baby. As long as your child was born before midnight on 12/31 of the tax year, that child is claimed in the year born. If you are married, you will claimed married and the little guy as your dependent. You cannot claim head of household...

Tax Law (Questions About Taxes): Claiming my newborn child, proud parents, tax statements
proud parents, tax statements, newborn child: Hi, Congratulations on your new son. Assuming that he lives with you, you will be able to claim him as a dependent and he is considered to have lived with you all year. The 6 months you re referring to is for children who lived part of the year with one...

Tax Law (Questions About Taxes): Claiming our newborn, hello john, stancil
hello john, stancil, 7 months: Sarah, Thanks for your question. The greatest benefit would be to the parent having the highest income. As long as one parent claims her and the other does not contest it, the IRS does not have an issue with which one. Hope this helps. John Stancil,...

Tax Law (Questions About Taxes): Claiming partners child on on income tax return., income tax return, first test
income tax return, first test, uncle sam: Sorry, but you cannot claim anyone but yourself. The rule that fits your situation best is that they are not family members and and such, they must have lived with you for the entire year. There are other rules to follow, but since you fail the first...

Tax Law (Questions About Taxes): Claiming personal losses, casualty losses, irs number
casualty losses, irs number, personal losses: Dear Bryan, The only way to show a loss or claim a loss on this would be to do the 1040-schedule-D..... This would show the basis you have in the home and that it was worthless to the point of destruction..... I would call the IRS to be sure exactly how...

Tax Law (Questions About Taxes): Claiming real estate loss even with AGI's over $150,000, personal income tax, income tax return
personal income tax, income tax return, personal incomes: Hi, A single member LLC reports their income and expenses on a Schedule C as a sole proprietor. However you must materially participate in the business or losses may be limited under the passive activity loss limitation rules. Regards, Carole...

Tax Law (Questions About Taxes): Claiming Student, federal tax return, confusing issue
federal tax return, confusing issue, stancil: Terrilyn, Thanks for your question. The rule is under 24 as of the end of the tax year, so you cannot claim him based on that exception. However, if his income was less than $3,100 you may still claim him, provided you meet the other requriements for...

Tax Law (Questions About Taxes): Claiming shares of stock for a loss, worthless stock, bankruptcy protection
worthless stock, bankruptcy protection, stock on line: Mi Michael, Stocks that became worthless during the tax year are treated as though they were sold on the last day of the tax year. Report the worthless stock on line 1 or line 8 (short term or long term) of Schedule D. In columns c and d write Worthless...

Tax Law (Questions About Taxes): Claiming a step child, divorce decree, head of household
divorce decree, head of household, stepdaughter: He supported both girls for over the year and his step child is considered a family member so yes, he could do what he did. The advice to file married to claim the kids was wrong tho. She could have filed married filing separately if she wanted to do...

Tax Law (Questions About Taxes): Claiming on Taxes, irs tax return, environmental construction company
irs tax return, environmental construction company, irs gov: Dear Kolece, each state is different, but the IRS tax return is what you need to go by.... If he works for a company and receives a W-2 from this company and is NOT an independent contractor (self-employed) there are only a few things that can be deducted...

Tax Law (Questions About Taxes): Claiming tools bought for work, employee business expenses, organizational benefit
employee business expenses, organizational benefit, adjusted gross income: Hi, You could claim unreimbursed employee business expenses as an itemized deduction on Schedule A to the extent they exceed 2% of your adjusted gross income. As an example 2% of your $40,000 income is $800. If you had $1000 in expenses you could deduct...

Tax Law (Questions About Taxes): Claiming an unrelated child, food stamps, biological father
food stamps, biological father, fiancee: Hi, If you have no way to prove your support of the child, you would not be allowed to claim her if your return was selected for further examination. They might accept a statement from the mother. Chances of your return being selected are probably not...

Tax Law (Questions About Taxes): Claiming unrelated child, afdc, loop hole
afdc, loop hole, dependent child: Dear Denise, Unfortunately, if you claim this child as YOUR dependent, her mother will/could loose her AFDC because the only reason she is getting it because of her dependent child.... Also, You could probably NOT prove that you provide MORE than 50%...

Tax Law (Questions About Taxes): Claiming myself, dad john, dependency exemption
dad john, dependency exemption, withholding allowances: Michelle, Thanks for your question. Since your dad is not supporting you, you may claim your own dependency exemption. However, you need to talk with him about this, as both of you cannot claim your exemption. If you claim zero withholding allowances,...

Tax Law (Questions About Taxes): Claims Settlement Taxable?, stancil, siding
stancil, siding, cpa: Ryan, Thanks for your question. Probably not. If the amount received is equal to or less than the dollar amount of the damage, it is not considered income. If, however, the amount received exceeds the amount of the damage, the excess is taxable....

Tax Law (Questions About Taxes): Clarify what is Section 1231 property, section 1231 property, long term capital gain
section 1231 property, long term capital gain, term assets: Cary, Thanks for your question. By definition, as you point out, inherited property is given long-term gain treatment on sale. Therefore, it is considered to be held for more than a year simply by definition - no explicit mention is given in the section...

Tax Law (Questions About Taxes): Class Action Law Suit, phen phen, punative damages
phen phen, punative damages, lawyers fees: MaryLou, Thanks for your question. If the settlement compensation for a physical injury, it is not taxable. Any part of the settlement that was for punative damages or other than physical injury is taxable. The full amount is taxable, before the attorney...

Tax Law (Questions About Taxes): Class action settlement, phen phen diet, punitive damages
phen phen diet, punitive damages, diet pill: Ms. Mclain: Was the settlement for damages to you or was it classified as punitive damages. If it was for damages to you to make you whole then its not taxable. If however it was punitive in nature that is to punish the drug company then will be taxable....

Tax Law (Questions About Taxes): Classes as a business expense, real estate classes, education expenses
real estate classes, education expenses, business expense: sorry the answer is NO education expenses incured to become anything are not deductable. however once you get a license expenses to maintain professional standards or improve you skills would be if you are currently employed as a realtor the answer may...

Tax Law (Questions About Taxes): Classification of Gain on Sale of Rental Property..., capital gain, numerical analysis
capital gain, numerical analysis, depreciation: Mark, Thanks for your question. You must allocate a portion of the sales price to the assets sold. I would treat the improvements as a part of the building (after, all that s what they are) and then allocate sales price to the appliances, etc. It would...

Tax Law (Questions About Taxes): Classification Sch C sole-proprietor, sole proprietor, commission basis
sole proprietor, commission basis, accounting services: Dear David, In this case, you would have to determine what the major component of your sales if from and then find a code within that catagory.... If this is too difficult, then use the 999999 and where it says product on the schedule-C, explain exactly...

Tax Law (Questions About Taxes): Clause for Child Care and Dependt Credit., mn dept of revenue, single mom
mn dept of revenue, single mom, childeren: Paula, Thanks for your question. If she meets 5 criteria she is considered unmarried according to tax law. 1. Files a separate return. 2. Paid more than half of the cost of keeping up her home for the year. 3. He did not live in her home at any...

Tax Law (Questions About Taxes): Clergy 1099 for housing, clergy housing allowance, schedule c
clergy housing allowance, schedule c, dear mr: Laura, Thanks for your question. I don t know what success you would have in getting the church to change. They really don t need to issue a W-2. I think I would completes a Schedule C, showing the housing allowance as income then showing a deduction...

Tax Law (Questions About Taxes): Clergy on disability taxes and Social Security Tax, general board of pensions, social security tax
general board of pensions, social security tax, general board of pensions and health benefits: Jaime, Thanks for your question. The unspent housing allowance should be entered on line 7 of the 1040 as salaries and wages. Since your benefits are classified as housing allowance, you will owe self-employment taxes on this amount. So, you do have...