Search found 436 matches

Return to advanced search

Re: Do I need an accountant? Small business with 55 k in rev

I should have said "may" be recaptured. I got swept up in the excitement of deductions for a home office, and did not realize the home office deductions are factored in and require more action on tax returns when the home is sold, than if never declared as home office deductions. I person...
by jared
Sun Apr 06, 2014 9:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need an accountant? Small business with 55 k in revenue
Replies: 8
Views: 413

Re: Do I need an accountant? Small business with 55 k in rev

Lafder wrote:Any home office deductions will be recaptured when you sell your home. So it may or may not be worth the hassle to declare them.

Fortunately, this isn't true.
by jared
Sun Apr 06, 2014 9:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do I need an accountant? Small business with 55 k in revenue
Replies: 8
Views: 413

Re: Illinois tax question

Angelus359 wrote:Illinois has a 5% flat tax

If I contributed to traditional IRA, and then converted to Roth IRA, would it avoid the tax?

Yes.
by jared
Sun Apr 06, 2014 8:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Illinois tax question
Replies: 19
Views: 814

Re: business tax

SeattleCPA: I believe that book may be too out of my reach. I guess I am looking for something in between Business Tax for Dummies and your BNA book. Also, you being a CPA, may I ask you; is it common for some CPAs to delay to a point when stress kicks in and you are forced to rely on their experti...
by jared
Sat Apr 05, 2014 12:15 am
 
Forum: Personal Finance (Not Investing)
Topic: business tax
Replies: 10
Views: 507

Re: When does depreciating a rental property save on taxes?

A few more questions on this topic: 1. I will start taking social security in 9 years, at which time my tax bracket may go up. So is it foolish to depreciate now if I am in the 15% bracket? 2. And can you start and stop depreciating at will? 3. If you stop depreciating do you have to pay the back d...
by jared
Wed Apr 02, 2014 12:16 pm
 
Forum: Personal Finance (Not Investing)
Topic: When does depreciating a rental property save on taxes?
Replies: 70
Views: 4284

Re: Attempt at explaining the backdoor Roth to my new accoun

These comments underscore just how large and complex the tax code is. If you compare tax work with general legal work, you will note that most lawyers specialize in a rather narrow corridor of the legal field. Often CPAs and those that specialize in business tax preparation are not fully familiar w...
by jared
Mon Mar 24, 2014 10:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: Attempt at explaining the backdoor Roth to my new accountant
Replies: 26
Views: 2270

Re: When does depreciating a rental property save on taxes?

I will let others chime in, letsgobobby, but here is my understanding of things: 1) it does not matter if you are an active or passive manager. If you are passive, you can subtract the cost of property management against the rental income. 2) At income of under 150k, you can deduct the losses again...
by jared
Sat Mar 22, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: When does depreciating a rental property save on taxes?
Replies: 70
Views: 4284

Re: State taxes and out of state rental property

Do I really have to fill out a non-resident state income tax return if I have a rental property in another state? Need to review state tax website to see if you have to file a tax return. Most states excuse taxpayers whose income is below a certain amount from filing a tax return. That's how most n...
by jared
Sat Mar 22, 2014 10:53 am
 
Forum: Investing - Theory, News & General
Topic: State taxes and out of state rental property
Replies: 25
Views: 1235

Re: Short Sale

Without any facts, it's impossible to answer your questions. This is a complex area, even when facts are present. We don't even know if you have a loss. We don't know if you have cancelled debt. We don't know if loans are recourse or non-recourse. We don't know if you are insolvent. We don't know an...
by jared
Tue Mar 18, 2014 10:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: Short Sale
Replies: 4
Views: 537

Re: Taxes and Paying for college from 529 or UTMA Account

I don't think you'll find a definite answer. Here's an article from a few years ago discussing the issue you bring up: http://www.aicpa.org/publications/taxadviser/2010/august/pages/nichols_aug-2010.aspx If I was in your position, and it benefited me to do so, I think I would lean toward including t...
by jared
Tue Mar 18, 2014 12:27 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxes and Paying for college from 529 or UTMA Account
Replies: 6
Views: 471

Re: 529 Plan & Turbo Tax Question

Jared, any idea what I should do in Turbotax to make the $74 disappear. ? I don't see where i can make any adjustments via the the Easy Step View. Based on what you said I should not be penalized that 10%. Not a clue. I've never used Turbo Tax. I'm guessing there's an entry somewhere to exclude all...
by jared
Sun Mar 16, 2014 5:37 pm
 
Forum: Personal Finance (Not Investing)
Topic: 529 Plan & Turbo Tax Question
Replies: 14
Views: 822

Re: 529 Plan & Turbo Tax Question

The software is probably figuring a 10% additional tax on the taxable earnings. As I've already mentioned, if the distributions are included in income only because the qualified education expenses were used in computing the American Opportunity Credit, then the 10% additional tax does not apply.
by jared
Sun Mar 16, 2014 4:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: 529 Plan & Turbo Tax Question
Replies: 14
Views: 822

Re: 529 Plan & Turbo Tax Question

Livesoft.. I just got off the phone with an accountant via the Turbotax help line. This guys actually seems knowledgeable :-) But i did have to go through an initial person who was absolutely clueless, but was obligated to help regardless. The accountant says that I should not include any 1099-Qs i...
by jared
Sat Mar 15, 2014 5:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: 529 Plan & Turbo Tax Question
Replies: 14
Views: 822

Re: 529s and overfunding

also, keep in mind that although the "worst case scenario" penalties are steep (10%, plus being taxed as ordinary income), this only applies to earnings. you can pull the principal, at any time, with no penalty. Are you suggesting that one can take a distribution that only includes princi...
by jared
Sat Mar 15, 2014 11:55 am
 
Forum: Investing - Help with Personal Investments
Topic: 529s and overfunding
Replies: 23
Views: 1324

Re: 529 Plan & Turbo Tax Question

Q1: I believe the taxable earnings should be included in gross income of the beneficiary. Q2: Line 21, Other income Q3: Move it to your child's tax return. Your child might not even be required to file a return. You might even have to pay a 10% penalty for a non-qualified withdrawal. If the distribu...
by jared
Sat Mar 15, 2014 1:18 am
 
Forum: Personal Finance (Not Investing)
Topic: 529 Plan & Turbo Tax Question
Replies: 14
Views: 822

Re: Anyone on the TaxAlmanac.org forum?

ualdriver wrote:
jared wrote:What's your username over there?


Thanks for your help. Looks like it is working now.

:sharebeer
by jared
Thu Mar 13, 2014 11:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone on the TaxAlmanac.org forum?
Replies: 5
Views: 342

Re: Anyone on the TaxAlmanac.org forum?

What's your username over there?
by jared
Thu Mar 13, 2014 10:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Anyone on the TaxAlmanac.org forum?
Replies: 5
Views: 342

Re: Does barter income count toward IRA contributions?

I believe the activity would have to rise to the level of a trade or business in order to be considered compensation for IRA contribution purposes. You didn't really tell us much about the activity, but if you have properly determined that the activity doesn't belong on Schedule C, then I think it's...
by jared
Thu Mar 13, 2014 4:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does barter income count toward IRA contributions?
Replies: 5
Views: 816

Re: Education tax credit for Spring 2013 class but paid in 2

jcw, As jebmke says, the educational credit can only be claimed in the tax year the qualified expense was actually paid. Therefore, tax year 2012 in your case. But you might want to take another look at your 2012 tax return and see if you would benefit by filing an amended tax return for that year ...
by jared
Wed Mar 12, 2014 10:36 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 844

Re: Education tax credit for Spring 2013 class but paid in 2

Just following up on this. It looks like students can write this off if Box 7 is checked. This indicates that a portion of the tuition was used in the Spring Semester. My CPA indicated that is was okay to try for it, although, the IRS could deny it and I could have to pay interest. This turbo tax a...
by jared
Tue Mar 11, 2014 9:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Education tax credit for Spring 2013 class but paid in 2012
Replies: 18
Views: 844

Re: Question About Claiming Parent as Dependent

Because Mom has taxable income greater than $3,900, you can not claim her as a dependent. Sorry :| Dividends vs. earned income has no impact. It is dependent on taxable income vs. non taxable income. Actually, the income test is based on gross income. It's true that some items are specifically excl...
by jared
Thu Feb 27, 2014 12:11 pm
 
Forum: Personal Finance (Not Investing)
Topic: Question About Claiming Parent as Dependent
Replies: 25
Views: 998

Re: Alternative to paying tax on side income

MikeinNJ wrote:I was more looking to see IF I would have to pay a tax if they wrote a check directly to my student loan servicer.

Yes.
MikeinNJ wrote:Would I be paying less tax or no tax if they wrote it directly to my loan servicer? .

No, you would be paying the same tax.
by jared
Tue Feb 25, 2014 11:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Advice on paying tax on side income
Replies: 19
Views: 898

Re: S Corp health ins deduction a wash?

The health insurance deduction on the S Corp return in the form of wages reduces the flow-through earnings on the Schedule K-1. Assume your S Corp generates $100,000 of income before salary and health insurance. You pay a salary of $50,000 and your health insurance premiums are $5,000. Scenario 1 - ...
by jared
Mon Feb 24, 2014 1:10 pm
 
Forum: Personal Finance (Not Investing)
Topic: S Corp health ins deduction a wash?
Replies: 3
Views: 202

Re: Would you file a state tax return amendment for $300?

That's confusing to me too. If you intentionally ignore or leave off a property tax payment causing a smaller deduction is that really perjury? The perjury would involve the word complete. If you leave out a deduction that you could take but take other deductions, is your return complete? true, cor...
by jared
Sun Feb 23, 2014 4:12 am
 
Forum: Personal Finance (Not Investing)
Topic: Would you file a state tax return amendment for $300?
Replies: 20
Views: 1196

Re: Would you file a state tax return amendment for $300?

I forgot to include home property taxes ($6500) on my 2012 tax return, using turbotax. It doesn't affect my acutal federal return because I'm in AMT. It does impact my state return by $300 (4.6% - Colorado). I'm trying to decide whether it's worth the hassle for $300. Can I only amend the state ret...
by jared
Sun Feb 23, 2014 1:29 am
 
Forum: Personal Finance (Not Investing)
Topic: Would you file a state tax return amendment for $300?
Replies: 20
Views: 1196

Re: 1099 Misc Tax Question... Help appreciated!

So here's what I found in the contract - looks like 1099-Misc is correct... now the only question is how can I claim moving expenses from 2011 in 2013, 2014, and 2015 since it is the later dates in which the 1099 is being filed to the IRS by the hospital... "Forgiveness. Upon each payment date...
by jared
Thu Feb 20, 2014 1:35 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1099 Misc Tax Question... Help appreciated!
Replies: 10
Views: 845

Re: 1099 Misc Tax Question... Help appreciated!

I think these deals are pretty common in the medical field. I seriously doubt this constitutes a bona fide loan. Was there an unconditional promise to repay the funds? Did you or the hospital actually intend repayment? Did you have a fixed schedule for repayment? They can call it whatever they want,...
by jared
Tue Feb 18, 2014 10:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1099 Misc Tax Question... Help appreciated!
Replies: 10
Views: 845

Re: Two schedule Cs, net loss. FICA and solo 401k help pleas

Regarding Question 1: 1.1402(a)-2(c) (c)Aggregate net earnings.— Where an individual is engaged in more than one trade or business within the meaning of section 1402(c) and § 1.1402(c)-1, his net earnings from self-employment consist of the aggregate of the net income and losses (computed subject to...
by jared
Sun Feb 16, 2014 11:29 pm
 
Forum: Personal Finance (Not Investing)
Topic: Two schedule Cs, net loss. FICA and solo 401k help please.
Replies: 14
Views: 525

Re: 1099 Misc Tax Question... Help appreciated!

What exactly did you sign back in 2011? If I had to guess, you were "loaned" money for a relocation or signing bonus in exchange for an agreement that you would work a certain number of years. For each year you work, they are forgiving a portion of the loan. Tell us more about what you sig...
by jared
Sun Feb 16, 2014 2:44 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1099 Misc Tax Question... Help appreciated!
Replies: 10
Views: 845

Re: 1099 Miscellaneous Internship Income Tax Treatment Quest

C'mon, this is easy! :D All you need to do is determine whether or not the student's activity rises to the level of a trade or business based on an examination of the facts and circumstances. If yes, then subject to SE tax. If no, then not subject to SE tax. Think about the buzz words like continuit...
by jared
Tue Feb 11, 2014 5:41 pm
 
Forum: Personal Finance (Not Investing)
Topic: 1099 Miscellaneous Internship Income Tax Treatment Question
Replies: 15
Views: 1163

Re: Figuring cost basis of inherited property

The University of Illinois publishes index numbers of Illinois farmland values. (http://farmdoc.illinois.edu/manage/pdfs/index_numbers.pdf) Some taxpayers use these numbers to establish basis in farmland. The document contains simple instructions for estimating past values (based on current value) a...
by jared
Sun Jan 26, 2014 4:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Figuring cost basis of inherited property
Replies: 10
Views: 534

Re: Which Year Is Expense Deductible?

More complicated than I thought. Hopefully more specificity will help. It's a landscaping bill, part of which is deductible to me as the landlord as a rental expense. Thanks for the replies! Even more complicated than you thought you thought. Is the landscaping an expense, a depreciable asset, or i...
by jared
Sun Jan 19, 2014 11:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Which Year Is Expense Deductible?
Replies: 9
Views: 679

Re: Which Year Is Expense Deductible?

Is this for business or tax purposes? And what is the expenses? It matters. For education, the bill has to be paid and classes attended to. So if you pay for spring 2014 tuition in December 2013 you can't deduct until 2014. Property taxes due in 2014 but paid in 2013 are deductible in 2013. Both of...
by jared
Sun Jan 19, 2014 3:47 pm
 
Forum: Personal Finance (Not Investing)
Topic: Which Year Is Expense Deductible?
Replies: 9
Views: 679

Re: Tax question (Tuition deduction)

1.25A-5(b)(1) (1)In general.— Solely for purposes of section 25A, if a third party (someone other than the taxpayer, the taxpayer's spouse if the taxpayer is treated as married within the meaning of section 7703, or a claimed dependent) makes a payment directly to an eligible educational institution...
by jared
Mon Jan 13, 2014 11:42 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax question (Tuition deduction)
Replies: 6
Views: 418

Re: 529 questions

It's not that clear if you read the irs regs. They are opaque regarding who the gift is even from when the beneficiary is changed, let alone ifyou can elect gift splitting. Which IRS regs are you referring to? I've read the law, the Proposed Regulations, and the 709 instructions. There's nothing op...
by jared
Thu Jan 09, 2014 12:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 25
Views: 1905

Re: 529 questions

There's a bit of confusion on the thread between income, estate, and generation skipping transfer taxes. Not really important to the op, but the tax rules quoted refer separately to each of these. Gift splitting isn't at issue, nor really an option in this scenario. You open an account as owner and...
by jared
Thu Jan 09, 2014 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 25
Views: 1905

Re: 529 questions

The 5 year election can be made on a split gift. See Proposed Reg.1.529-5(b)(2)(ii)
ii) The election under section 529(c)(2)(B) may be made by a donor and his or her spouse with respect to a gift considered to be made one-half by each spouse under section 2513.
by jared
Thu Jan 09, 2014 12:01 am
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 25
Views: 1905

Re: 529 questions

That makes sense and I read that on a Fidelity form, but that said, on the IRS Q&A above, says "no tax consequences". I suppose the IRS's own site could be wrong, and can see the loophole of naming yourself then immediately transferring to a child to evade the annual cap. This stuff h...
by jared
Thu Jan 02, 2014 2:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 25
Views: 1905

Re: 529 questions

blevine wrote:Nothing to do when you change beneficiary, if amongst your own family.

The new beneficiary must also be the same generation or higher than the old beneficiary. Otherwise, gift tax rules apply.
by jared
Thu Jan 02, 2014 10:57 am
 
Forum: Investing - Help with Personal Investments
Topic: 529 questions
Replies: 25
Views: 1905

Re: Last-minute gifting to grandchildren

jared: Thanks for pointing me in the right direction. For the other laymen like myself still following along, the key is what I will call the "stop payment" clause. If you mail someone a check, you can go to your bank and stop payment while the check is in the hands of the USPS. Even afte...
by jared
Wed Jan 01, 2014 5:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Last-minute gifting to grandchildren
Replies: 34
Views: 1485

Re: Quick question re gift timing

It really depends on who the gift is for. Let me give 2 examples: 1. Gift goes to nephew who shreds the envelope with postmark on it and doesn't send you any note acknowledging date of gift. 2. Gift goes to charity who sees postmark and sends you a receipt with date Jan 2, 2014 on it. 3. What would...
by jared
Wed Jan 01, 2014 5:43 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick question re gift timing
Replies: 12
Views: 515

Re: Last-minute gifting to grandchildren

I don't even think it's necessary to consider the 2503(b) annual exclusion for 2013 in the OP's scenario. IRC Section 2511 and the corresponding Regulations tell us that the gift is incomplete (at least for 2013). Without a complete gift, there's nothing to be excluded by 2503(b).
by jared
Wed Jan 01, 2014 2:02 am
 
Forum: Personal Finance (Not Investing)
Topic: Last-minute gifting to grandchildren
Replies: 34
Views: 1485

Re: Last-minute gifting to grandchildren

There's a difference between a charitable and noncharitable donee.
by jared
Tue Dec 31, 2013 10:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Last-minute gifting to grandchildren
Replies: 34
Views: 1485

Re: Quick question re gift timing

I'm not a tax expert, but I would imagine these guidelines are consistent with any type of deduction, payment, or contribution. Not necessarily. The timing may be different for noncharitable donee as compared to a charitable donee. OP seemed to be concerned about the gift tax exclusion, so I assume...
by jared
Tue Dec 31, 2013 6:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick question re gift timing
Replies: 12
Views: 515

Re: Quick question re gift timing

No. The check must be deposited, cashed, or presented for payment to be considered a completed gift.
by jared
Tue Dec 31, 2013 4:08 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick question re gift timing
Replies: 12
Views: 515

Re: 2013 Gift

I live in Maryland and am thinking about making last minute gift to my daughter. Obviously, I have not given this any thought. Does she have to deposit the check in 2013 for tax purposes? Whether there are tax implications depends mainly on the size of the gift. If the gift is under $14,000 there a...
by jared
Mon Dec 30, 2013 1:13 am
 
Forum: Personal Finance (Not Investing)
Topic: 2013 Gift
Replies: 11
Views: 1099

Re: Bunching Property Tax - when is it considered paid?

II. Deductibility of Prepaid Taxes Section 164(a)(1) allows a deduction for real property taxes. Deduction of prepaid real property taxes has been disallowed where a cash basis taxpayer failed to establish that the prepayment represented assessed, rather than estimated, taxes, and that such taxes w...
by jared
Mon Dec 30, 2013 12:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Bunching Property Tax - when is it considered paid?
Replies: 39
Views: 2596
Next

Return to advanced search