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I'm not very familiar with Cook County, but here's how it typically works in IL: Equalized Assessed Value = Assessed Value * State Equalizer Factor (based on county) Taxable Value = Equalized Assessed Value - Exemptions Tax = Taxable Value X Rate Some of the common exemptions include: - Owner Occupi...

Here are a few previous discussions on this topic if you're interested....

viewtopic.php?f=1&t=108588
viewtopic.php?f=1&t=105158
viewtopic.php?f=10&t=97718

Thanks for the thoughtful responses. Several different issues here. 1. how to do it. my CPA thinks we just file Form 8832, Entity Classification Election, and can change the LLC from S Corp to Partnership without there being any tax issues. 2. Why not distribute the funds as an S Corp? Money is in ...

As to why I want members to receive a paycheck: wages are allowable expenses under my cost reimbursement contracts. Distributions are not expenses and so are not currently reimbursed. The auditors look at labor distributions and paychecks. The bottom line is that I want paychecks to show the audito...

What's the big deal about losing the W-2? Partners are not employees and should not receive a W-2.

See this discussion for an explanation of transfers and rollovers: viewtopic.php?f=2&t=112964

You can reimburse yourself at a later date as long as the HSA was established prior to incurring the medical expenses for which you are being reimbursed. See IRS Notice 2004-50 (http://www.irs.gov/irb/2004-33_IRB/ar08.html) Q-39. When must a distribution from an HSA be taken to pay or reimburse, on ...

Thanks Alan. I appreciate your input. As I mentioned, I participated in a lengthy discussion over on the TA forum regarding this subject. One of the moderators thought the SE income/Roth 401(k)/Roth IRA combination was improper and apparently didn't like when I asked him to explain his answers. Here...

Thanks Mark. I was hoping you and/or Alan S. would provide input. That's the same conclusion I reached in a discussion over on the TaxAlmanac board. A few others don't agree that Scenario 1 would be allowed, but I haven't seen any support for their position.

Hoping to get feedback from some of the other tax professionals (or any other retirement plan/tax experts) on the board. I'm starting a new discussion that is similar to an old discussion (http://www.bogleheads.org/forum/viewtopic.php?f=2&t=101971&newpost=1478885) but with a slightly differe...

Is this prepayment of tuition option considered a QTP (Qualified Tuition Program)? If so, what about rolling over funds from current 529 plan to the prepaid plan?

Form 5329 applies to each year a shortfall occurred. I don't believe it would be proper to report the cumulative shortfall and penalty on the current year Form 5329. In addition, I don't believe the typical 3 year statute of limitations will help your father's case. Form 5329 is a separate tax retur...

If the husband and wife are the only owners of the business and both materially particpate in the business activity, they can avoid filing a partnership tax return by electing to treat the activity as a Qualified Joint Venture. They make the election by filing a joint 1040 and each filing a Schedul...

I don't get it. You are not my pesonal friends. If I die, there are people I would like to be informed; you aren't among of them. If I decide I don't like you and don't want to post anymore, that's my business; I don't owe you anything. I once posted that I was going to stop, and while there were s...

I know I'm the one asking the question. However, the purpose of asking the question was to try to force an explanation (with support) for this inaccurate advice that I've seen on several rental property discussions. The section 121 gain exclusion does NOT apply to recognition of gain attributable t...

I know I'm the one asking the question. However, the purpose of asking the question was to try to force an explanation (with support) for this inaccurate advice that I've seen on several rental property discussions. The section 121 gain exclusion does NOT apply to recognition of gain attributable t...

I know I'm the one asking the question. However, the purpose of asking the question was to try to force an explanation (with support) for this inaccurate advice that I've seen on several rental property discussions. The section 121 gain exclusion does NOT apply to recognition of gain attributable to...

I can think of one reason to put your daughter on the mortgage. There are two ways to get rid of taxes on depreciation and capital gains on rental property. Through inherited property and making the rental your primary home. If your daughter is on the mortgage and makes it her primary home after li...

HSA needs to be established prior to incurring medical expenses.

For real procrastinators, remember that the postmark rules apply for your contribution deadline (must be postmarked rather than deposited). That means you can drop the IRA contribution in the mail with your tax return at PO sites open till midnight. Certain armed forces personnel in combat zones ha...

As damjam has been saying all along, you're stuck with the depreciation recapture unless the house is sold for less than adjusted basis. The section 121 gain exclusion does NOT apply to recognition of gain attributable to depreciation. 121(d)(6) Recognition of gain attributable to depreciation.— Sub...

Is there a legal way to avoid filing IRS Form 1065 if my spouse and I equally own a LLC and actively participate in its operations? Yes. Own it as community property. Rev. Proc. 2002-69, 2002-2 C.B. 831: http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irlb727/1/doc . ...

I'm not super familiar with employee deductions. However, it does look like you can itemize these unreimbursed business-related expenses. You also have to file an additional form along with Schedule A though, and if your deductions aren't great enough to exceed the standard deduction, of course you...

I had 2 rental properties in the past, sold them after my income climbed over $150k and could not deduct any expenses. Now I'm looking for a 2nd home / condo in Florida which will be rented frequently but short term. As my AGI is over $150k, I cannot directly deduct any expenses. Having the ability...

The problem in your scenario is that you should've established your basis for depreciation of the house at lower of cost or FMV at time of conversion, including the improvements and landscaping (assuming it qualifies). As mentioned in another thread (http://www.bogleheads.org/forum/viewtopic.php?f=2...

If I make 300k, single, and have zero investment income. Do I pay any surtax? I think that would be correct. Hope an accountant has an answer?? Good luck. I've answered the question twice (once with an explanation). Maybe my posts are invisible...or maybe I'm not a qualified Boglehead accountant? :...

LH wrote:If I make 300k, single, and have zero investment income. Do I pay any surtax?

No, you will not be subject to the Net Investment Income Tax.

I don't think you are interpreting that right. The scenarios I've seen look like this: 1. "Normal Income" (whatever that is) of $240K plus investment income of $20K. You are taxed on the amount above the $250K, or on $10K. 2. Normal income of $260K plus investment income of $5K. You are t...

A transfer from one IRA trustee to another is not considered a distribution or a rollover. See Rev. Rul. 78-406. The transfer should not be reported on Form 1099-R. See page 5 of Form 1099-R instructions (http://www.irs.gov/pub/irs-pdf/i1099r_12.pdf): Transfers Generally, do not report a transfer be...

I believe there was one year (and one year only) a few years back where health insurance premiums could be taken on Sched C. That was a great deal since that deduction in effect reduced SE tax. Yes, in 2010, the self-employed health insurance deduction reduced the income subject to SE tax, but it s...

Medicare premiums are deductible as a self-employed health insurance deduction on page 1 of 1040 (not directly on Sch C). See CCA 1228037, which was released in July, 2012. (http://www.irs.gov/pub/irs-wd/1228037.pdf) Medicare is insurance that constitutes medical care under section 162(l). Therefore...

tfb has some nice blog posts on RSUs. http://thefinancebuff.com/tag/rsu

1. Is there a another, better approach? Is there something I am missing? The appliances were new in December, 2005 and six years old in January 2012. The used value of appliances is half or less. 2. Should I separate the appliances and use a different depreciation schedule? 3. Anticipating IRS ques...

If she is actually reimbursed, then the expenses may or may not be deductible, depending on whether or not the reimbursement is included as income. It is my understanding they factor travel expenses into the amount paid to her. Only 1 check is issued per session and the full amount seems to be repo...

If she is actually reimbursed, then the expenses may or may not be deductible, depending on whether or not the reimbursement is included as income. It is my understanding they factor travel expenses into the amount paid to her. Only 1 check is issued per session and the full amount seems to be repo...

I ask mainly because I would have originally thought income taxes, with its breath of complexity and individual situations, would have been beyond the scope of a 'one-size-fits all' program, but have been since very impressed by how well the tax programs handle it. (As good as my pricey accountant,...

If she is actually reimbursed, then the expenses may or may not be deductible, depending on whether or not the reimbursement is included as income. It is my understanding they factor travel expenses into the amount paid to her. Only 1 check is issued per session and the full amount seems to be repo...

livesoft wrote:The IRS has some very nice publications on all this that are very easy to read that answer all these questions. I'm sure you all have read them.

Nonsense.

livesoft wrote:, but it is probably worthwhile reading them again.

Crazy talk. No need to read or understand anything.

1.) This is our first joint return (recently married) and her return from last year listed similar income as miscellaneous on Line 21. Is this a concern? Yes, it is a concern anytime you've reported something incorrectly. How big of a concern? Your wife will have to decide on that one. She makes al...

If it is in box 7, then it is self employment and goes on schedule C. Not always true. Would you like to explain then. I realize there is an exception to everything, but go ahead. Yes, I already explained it above. The activity has to rise to the level of a trade or business. See previous discussio...

theduke wrote:If it is in box 7, then it is self employment and goes on schedule C.

Not always true.

Generally speaking, a person is considered to be engaged in a trade or business if the person is regularly and continuously engaged in an activity and the primary purpose for engaging in the activity is for income or profit. Whether or not a person is engaged in carrying on a trade or business depen...

Seriously? No.

P.S. One potential idea to explore is whether there is some legitimate way to rent out the current house for a year or more, so that the house becomes an investment property and then the capital loss on the house could be useful for offsetting other capital gains. Has anyone else considered this in...

I'm not sure what else you want your preparer to do at this point. He already explained to you that your investment income exceeded the $3,200 limit for EIC.

I'm not following. What makes a huge difference in your tax liability? Both of my examples should result in the same tax liability. The answer I provided was based on a hypothetical example. I don't know anything about your specific situation or your scholarships, so this may not apply to your situa...

Housing is not a qualified education expense for this purpose. The question is trying to identify any scholarships received that restrict the use of the money to something other than qualified tuition and related expenses (i.e. room and board). These are includible in gross income. You need to look ...

I think there is an unaswered question here. Can the self employed spouse contribute to an IRA if he/she has earnings, even if the business does not have a profit? Only to the extent the other spouse has enough compensation "available" after his/her own IRA contribution. The self-employed...

I think you've already answered your own question. The definition of qualified tuition and related expenses is not the same for claiming education credits as it is for determining the exclusion of qualified scholarships from gross income. You aren't concerned with the education credits, so don't eve...