Search found 511 matches

by jared
Wed Jun 10, 2015 10:15 pm
Forum: Personal Finance (Not Investing)
Topic: HSA reimbursements - to take now or wait?
Replies: 13
Views: 1234

Re: HSA reimbursements - to take now or wait?

I do the reimbursement once a year -- I don't want it hanging over my head when I am old, frail or dead. My spouse sure doesn't want the hassle of reimbursing many years of expenses. Also, some of the receipts fade and I don't feel like scanning. Similar feelings here. I pay all expenses out of poc...
by jared
Fri Jun 05, 2015 3:39 pm
Forum: Personal Finance (Not Investing)
Topic: s-corp owner with a new commuting profile - can i take standard mileage deductions
Replies: 11
Views: 884

Re: s-corp owner with a new commuting profile - can i take standard mileage deductions

My understanding was that an owner of an S-Corp could NOT have the company pay for his health insurance tax free. Check this out carefully. +1. The rules for this changed with the passage of the ACA. Be sure to get top-notch professional advice on this. The penalties for doing it wrong are huge. If...
by jared
Wed May 13, 2015 1:58 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
Replies: 134
Views: 10341

Re: Backdoor Roth: Schooling my CPA and getting charged for it!

So much speculation. OP, do us all a favor and call the CPA to inquire about the charge.
by jared
Tue May 12, 2015 5:45 pm
Forum: Personal Finance (Not Investing)
Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
Replies: 134
Views: 10341

Re: Backdoor Roth: Schooling my CPA and getting charged for it!

I would seriously just pick up the phone and call him or send him an informal email. Ask him if he has any additional details. Maybe the invoice was poorly worded. Maybe there was a mistake. Maybe there was some additional time spent reporting the conversion that should not have been labeled as &quo...
by jared
Sat May 02, 2015 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Trying to Understand Business Health Insurance vs Personal
Replies: 11
Views: 768

Re: Trying to Understand Business Health Insurance vs Person

Please see my explanation in this discussion: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=161910&p=2431762#p2431762 I don't see any reason to have group health insurance policy if individual premiums are cheaper. Im not sure how you get to this conclusion Jared. Did you read the li...
by jared
Fri May 01, 2015 11:06 am
Forum: Personal Finance (Not Investing)
Topic: Trying to Understand Business Health Insurance vs Personal
Replies: 11
Views: 768

Re: Trying to Understand Business Health Insurance vs Person

Please see my explanation in this discussion:

viewtopic.php?f=2&t=161910&p=2431762#p2431762

I don't see any reason to have group health insurance policy if individual premiums are cheaper.
by jared
Fri May 01, 2015 1:08 am
Forum: Personal Finance (Not Investing)
Topic: Trying to Understand Business Health Insurance vs Personal
Replies: 11
Views: 768

Re: Trying to Understand Business Health Insurance vs Person

What type of entity? How many employees?
by jared
Thu Apr 30, 2015 6:44 pm
Forum: Personal Finance (Not Investing)
Topic: Guidance About New Spouse's IRS Issues
Replies: 47
Views: 3037

Re: Guidance About New Spouse's IRS Issues

At this point, I can't imagine any additional helpful information coming out of this thread. spectec and AWH_CPA have already given you all of the advice you need. Stop contacting the IRS and completing your own paperwork. A professional should be able to get all of the necessary transcripts for the...
by jared
Wed Apr 29, 2015 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Guidance About New Spouse's IRS Issues
Replies: 47
Views: 3037

Re: Guideance About New Spouse's IRS Issues

Consider hiring an attorney, CPA, or EA specializing in IRS representation.
by jared
Mon Apr 27, 2015 2:11 pm
Forum: Personal Finance (Not Investing)
Topic: S. Corp questions
Replies: 32
Views: 2335

Re: S. Corp questions

So let me get this straight...new accountant is advising you to avoid paying a salary altogether and instead pay yourself as an independent contract reporting the income on Sch C subject to SE tax? If this is the case, I would strongly consider continuing the search for your new accountant. Please ...
by jared
Mon Apr 27, 2015 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: S. Corp questions
Replies: 32
Views: 2335

Re: S. Corp questions UPDATE

UPDATE: This is the explanation I have received from accountant. It makes sense in theory however it is new to me so I am still skeptical. In effect, we are not “stopping his salary, but changing it to a “draw”. The IRS is peculiar about this in that some people try to expense their draws, and avoi...
by jared
Wed Apr 08, 2015 1:17 pm
Forum: Personal Finance (Not Investing)
Topic: Does your CPA/Tax Person help with reducing your taxes?
Replies: 66
Views: 6434

Re: Does your CPA/Tax Person help with reducing your taxes?

Again I will chime in and say if you want great service from your CPA, don't complain about the bill you receive. CPAs have spent years developing the knowledge they have. They deserve to get paid for that knowledge just like you deserve to get paid for your job. (Yes I am biased because I am a tax...
by jared
Wed Mar 25, 2015 12:06 am
Forum: Personal Finance (Not Investing)
Topic: S-Corp Partner Purchasing Own Health Insurance
Replies: 5
Views: 622

Re: S-Corp Partner Purchasing Own Health Insurance

I am a > 2% shareholder in an S corporation in North Carolina. The company has two partners, both >2% shareholders. The company does not provide any health insurance for owners or employees. Both myself and the other owner purchase our own health insurance. I am having trouble figuring out if this ...
by jared
Sat Mar 21, 2015 7:56 pm
Forum: Personal Finance (Not Investing)
Topic: Does your CPA/Tax Person help with reducing your taxes?
Replies: 66
Views: 6434

Re: Does your CPA/Tax Person help with reducing your taxes?

When he raised his fee to $500 this year, I essentially fired him and did my taxes on TurboTax for $120. I will write him a letter advising him of his firing for the increased fee. He may not care but at least he'll know why I'm no longer a client. Did you ask him why the fee increased? Did he have...
by jared
Tue Mar 17, 2015 10:55 pm
Forum: Personal Finance (Not Investing)
Topic: Amend my Schedule E?
Replies: 13
Views: 924

Re: Amend my Schedule E?

I believe that initially individuals were going to be required to issue Form 1099's, including landlords, but this requirement was later removed. Individuals have always had to issue 1099s for payments made in the course of a trade or business. This hasn't changed. In my opinion, the real question ...
by jared
Tue Mar 17, 2015 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Amend my Schedule E?
Replies: 13
Views: 924

Re: Amend my Schedule E?

I believe that initially individuals were going to be required to issue Form 1099's, including landlords, but this requirement was later removed. Individuals have always had to issue 1099s for payments made in the course of a trade or business. This hasn't changed. In my opinion, the real question ...
by jared
Tue Mar 17, 2015 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Amend my Schedule E?
Replies: 13
Views: 924

Re: Amend my Schedule E?

I would not amended. Also, I would not have checked that box Yes as you are not required to issue 1099s as an individual. (The IRS withdrew the idea that individuals needed to issue 1099s thankfully). If the IRS every questioned it, you can simply say it was not needed and they should go away. What...
by jared
Wed Mar 11, 2015 2:29 am
Forum: Personal Finance (Not Investing)
Topic: How do I calculate depreciation/basis for rental?
Replies: 38
Views: 2260

Re: How do I calculate depreciation/basis for rental?

You cannot simply amend the prior year returns to claim the proper amount of depreciation for the year as others have suggested. By not claiming the depreciation on two years of returns, you have adopted an impermissible method of accounting. Changing from an impermissible method to a permissible me...
by jared
Mon Mar 09, 2015 5:16 pm
Forum: Personal Finance (Not Investing)
Topic: How to Hold CPA Accountable for Negligence
Replies: 36
Views: 3586

Re: How to Hold CPA Accountable for Negligence

Did you receive 1099s from your client? Were they in your name or the company's? I received personal checks from my clients. Some in my name and some in the company's. I am not a CPA, but in my opinion, doing a Schedule C should work. Put the income that you would have paid through a W2 there and y...
by jared
Sun Mar 08, 2015 4:15 pm
Forum: Personal Finance (Not Investing)
Topic: How to Hold CPA Accountable for Negligence
Replies: 36
Views: 3586

Re: How to Hold CPA Accountable for Negligence

Having multiple threads on this same topic is confusing. I think you should stick to the old thread with all of the details and keep this one strictly on the topic of holding the CPA accountable for negligence. Other members monitoring or responding to the other thread may not be following this one....
by jared
Sun Mar 08, 2015 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: S. Corp Salary Amount and Retirement Contributions
Replies: 41
Views: 3010

Re: S. Corp Salary Amount and Retirement Contributions

If you actually took distributions in 2014, I'm assuming the CPA is suggesting that you reclassify some or all of these distributions as nonemployee compensation (Form 1099-MISC) from the corp to you personally and report that amount on a Schedule C. Although technically incorrect, I think this is a...
by jared
Fri Feb 27, 2015 11:20 am
Forum: Personal Finance (Not Investing)
Topic: College tax credit ?
Replies: 11
Views: 883

Re: College tax credit ?

This is a very commonly overlooked tax planning opportunity, especially when it comes to Pell Grants. Many taxpayers and tax preparers aren't maximizing the education credits. Here's a link to an article on the Treasury's website with explanations and examples: Fact Sheet: Interaction of Pell Grants...
by jared
Tue Feb 03, 2015 10:59 am
Forum: Personal Finance (Not Investing)
Topic: Married with HDHP, spouse not eligible, use HSA for both?
Replies: 14
Views: 1438

Re: Married with HDHP, spouse not eligible, use HSA for both

I don't see the conflict. Health insurance does not qualify as a medical expense for HSA purposes unless it meets an exception. Here is one exception: 223(d)(2)(C)(iv) in the case of an account beneficiary who has attained the age specified in section 1811 of the Social Security Act, any health insu...
by jared
Tue Feb 03, 2015 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Married with HDHP, spouse not eligible, use HSA for both?
Replies: 14
Views: 1438

Re: Married with HDHP, spouse not eligible, use HSA for both

Hex, See Q&A 30 from IRS Notice 2008-59: http://www.irs.gov/irb/2008-29_IRB/ar11.html Q-30. If the account beneficiary has not attained age 65, are Medicare premiums for coverage of an account beneficiary's spouse (who has attained age 65) qualified medical expenses? A-30. No. If the account ben...
by jared
Sat Jan 31, 2015 12:35 am
Forum: Investing - Help with Personal Investments
Topic: what to do with 529 if you earn a scholarship?
Replies: 22
Views: 2199

Re: what to do with 529 if you earn a scholarship?

Just don't put all the money you'll need in a 529 and you'll be fine. In fact, you don't want the money for the first $4K of tuition in the 529 or you'll miss out on 4 years of Amer Opp. Tax Credit which is worth $2500/yr. You can't claim AOC if the money was from a 529 plan. Not true. The amount o...
by jared
Sat Jan 31, 2015 12:23 am
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Jared: again, thanks for the excellent research. You seem to have found a direct reference to this specific issue of timing. I am not a lawyer, but what legal status does this paragraph carry? If the IRS (or Congress or whoever) identifies that clarification is required - but they don't pass any le...
by jared
Thu Jan 29, 2015 3:06 am
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Jared: thank you for the tremendous reply to my questions. I can see that you put a considerable amount of effort and research into it, and I sincerely appreciate that. You're welcome Andy. I've really enjoyed this discussion. However, I don't see enough clarity in either Pub. 970 or in the instruc...
by jared
Sat Jan 24, 2015 5:00 am
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Great question Andy. Unfortunately, I don't have a definitive answer. Section 529 is silent regarding the timing of distributions. I doubt the intent was to allow the reimbursement of prior year expenses. The IRS is certainly aware of the potential for abuse and made it clear in Notice 2008-17. See...
by jared
Thu Jan 22, 2015 11:50 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Great question Andy. Unfortunately, I don't have a definitive answer. Section 529 is silent regarding the timing of distributions. I doubt the intent was to allow the reimbursement of prior year expenses. The IRS is certainly aware of the potential for abuse and made it clear in Notice 2008-17. Seem...
by jared
Thu Jan 22, 2015 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

Thanks Jared. I see your point. I was not aware that in such a scenario you will avoid the 10% penalty on the 529 withdrawal, since you are declaring that you are NOT using those withdrawn funds to pay for QHEE. Can you point me to some authoritative documentation that supports that? Although not a...
by jared
Thu Jan 22, 2015 10:09 am
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

But no double-dipping so payments made with 529 plan withdrawals are not eligible for AOTC treatment. So we need to use 529 plan withdrawals for all but $2,000 a year of QHEE in order to get the first tier of the AOTC. Not necessarily. The amount of qualified higher education expenses available to ...
by jared
Wed Jan 21, 2015 11:27 pm
Forum: Personal Finance (Not Investing)
Topic: AOTC versus 529 plan [American Opportunity Tax Credit]
Replies: 46
Views: 3910

Re: AOTC versus 529 plan [American Opportunity Tax Credit]

But no double-dipping so payments made with 529 plan withdrawals are not eligible for AOTC treatment. So we need to use 529 plan withdrawals for all but $2,000 a year of QHEE in order to get the first tier of the AOTC. Not necessarily. The amount of qualified higher education expenses available to ...
by jared
Sat Jan 03, 2015 7:22 pm
Forum: Investing - Help with Personal Investments
Topic: 529 beneficiary change
Replies: 12
Views: 1139

Re: 529 beneficiary change

Bacchus01 wrote:So, if I read that right, I can open a 529 with me as the beneficiary, accumulate say $60k in it, and change the beneficiary to one of my children with no tax implications including gift tax issues?

No, treated as gift from old beneficiary to new beneficiary.
by jared
Sun Dec 28, 2014 12:33 am
Forum: Personal Finance (Not Investing)
Topic: Self employment - health ins deductible
Replies: 18
Views: 1870

Re: Self employment - health ins deductible

seattlereader wrote:do you think TurboTax will be set up to handle this "circular relationship" successfully in the upcoming tax prep season for the 2014 tax year?

I think they will be able to handle it, but I don't know for sure.
by jared
Wed Dec 24, 2014 1:59 am
Forum: Personal Finance (Not Investing)
Topic: Self employment - health ins deductible
Replies: 18
Views: 1870

Re: Self employment - health ins deductible

Maybe there has been newer guidance issued by the irs about this, but as far as I can tell, a sole proprietor can buy medical insurance from the exchange in his or her name and deduct it on line 29 assuming they show profits on schedule c, etc. Can anyone show me something better than what I've lin...
by jared
Wed Dec 24, 2014 1:44 am
Forum: Personal Finance (Not Investing)
Topic: Self employment - health ins deductible
Replies: 18
Views: 1870

Re: Self employment - health ins deductible

In my opinion, too much emphasis is being placed on the policy name. I don't believe having the spouse as the primary policy holder is going to render the health insurance expense nondeductible. This IRS CCA 200524001 released in 2005 contains some helpful information: http://www.irs.gov/pub/irs-wd/...
by jared
Wed Dec 17, 2014 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Low Income 401k/IRA Contribution Limits
Replies: 12
Views: 1443

Re: Low Income 401k/IRA Contribution Limits

retiredjg wrote:However, I don't know the answer to the question about filling both a Roth IRA and a Solo 401k based on the same dollars.

Fortunately, that question has already been answered above.
by jared
Mon Dec 15, 2014 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Clarification
Replies: 6
Views: 666

Re: Roth IRA Clarification

Regular contributions to a Roth IRA can be withdrawn tax and penalty free at any time regardless of age.
by jared
Mon Dec 15, 2014 9:45 pm
Forum: Personal Finance (Not Investing)
Topic: Low Income 401k/IRA Contribution Limits
Replies: 12
Views: 1443

Re: Low Income 401k/IRA Contribution Limits

No. You need earned income for both of these, and it can't be the same earned income for two different contributions. Not true. You need compensation includible in gross income. Designated Roth contributions to a solo 401(k) do not reduce compensation includible in gross income. We've had this disc...
by jared
Mon Dec 15, 2014 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1377

Re: Roth conversion tax question

Since this thread has gotten into the devilish details, let me add my strange case--- My Mom opened a Roth IRA in 2013, and did a conversion of a traditional IRA into it. No previous Roth IRA. I inherited that Roth IRA in 2014. My personal Roth IRA was opened back in 1999, so that 5-yr period has p...
by jared
Mon Dec 15, 2014 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1377

Re: Roth conversion tax question

nbseers uncle said: " since a new 5 year period starts with each conversion, any profit, interest, dividends, etc earned after the conversion will be subject to income tax, if withdrawn within 5 years of the conversion. " Can anyone offer any insight as to how this works if one has only o...
by jared
Mon Dec 15, 2014 12:14 am
Forum: Personal Finance (Not Investing)
Topic: Roth conversion tax question
Replies: 23
Views: 1377

Re: Roth conversion tax question

The answer depends on whether or not the distribution is a qualified distribution. If the distribution is a qualified distribution, then earnings are not taxable. If the distribution is not a qualified distribution, then earnings are taxable, even if over age 59 1/2. To be considered a qualified dis...
by jared
Thu Dec 11, 2014 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: How do you contribute to your IRA?
Replies: 33
Views: 1859

Re: How do you contribute to your IRA?

Lump sum IRA and HSA in April for prior year contributions.
by jared
Wed Dec 10, 2014 4:48 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp Taxes
Replies: 6
Views: 746

Re: S Corp Taxes

Forget percentages and start thinking about what you would pay someone else to do the job.
by jared
Sun Nov 30, 2014 1:45 am
Forum: Personal Finance (Not Investing)
Topic: Can I get tax credits for my brother college fees?
Replies: 13
Views: 1520

Re: Can I get tax credits for my brother college fees?

Adding to my previous response... See Reg 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 direc...
by jared
Fri Nov 28, 2014 10:24 pm
Forum: Personal Finance (Not Investing)
Topic: Can I get tax credits for my brother college fees?
Replies: 13
Views: 1520

Re: Can I get tax credits for my brother college fees?

kaneohe wrote:Can you gift him the money and let him take the credit?

This isn't necessary. If OP pays brother's expenses to the university, brother is treated as having received the funds from OP and, in turn, paying the tuition to the university. Brother takes the credit if he otherwise qualifies.
by jared
Sat Nov 22, 2014 12:34 am
Forum: Personal Finance (Not Investing)
Topic: S Corp question
Replies: 10
Views: 1710

Re: S Corp question

Agree with others. Pay for an opinion from an attorney knowledgeable in this area. What does the LLC operating agreement say about dissolution and distribution of assets? What does state law say about dissolution and distribution of assets? The LLC is a legal entity formed under state law. The S Cor...
by jared
Fri Nov 21, 2014 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: S Corp question
Replies: 10
Views: 1710

Re: S Corp question

Agree with JacobyTT...not enough information to answer these questions. Probably going to need some clarification on this statement:
Hayden wrote:I put in the money, but split ownership with my partner 51/49.
by jared
Wed Nov 19, 2014 12:56 am
Forum: Personal Finance (Not Investing)
Topic: What financial tools/software do you use?
Replies: 35
Views: 2979

Re: What financial tools/software do you use?

QuickBooks to track all income, expenses, assets, and liabilities. Everything is entered manually and reconciled on a monthly basis. I like QuickBooks because it is a double-entry accounting system. I also like having the ability to print financial statements. Excel for anything I can't do in QuickB...

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