Our firm started telling all drop off clients on 3/19 or later this year that we would be filing an extension.Gardener wrote: Second, I've gotten a little frustrated with my accountant, and wanted to see if you think my frustration is reasonable or not. I dropped my tax return paperwork with the CPA on 3/26 (18 days to complete before the deadline) and did not get my return done until last night. I am married filing jointly 2 w-2's and I am also self-employed and so get a 1099. It's a fairly simple 1099.
Search found 554 matches
- Thu Apr 20, 2017 2:22 am
- Forum: Personal Finance (Not Investing)
- Topic: Taxes- okay to just drop in the mail today??
- Replies: 29
- Views: 6513
Re: Taxes- okay to just drop in the mail today??
- Mon Mar 27, 2017 8:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
- Replies: 27
- Views: 3483
Re: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
Don't be offended. I'm a CPA too. I'm mad at myself for wasting money on accounting courses, CPA exam, annual CPE courses, tax research services, etc. when I should have just taken a keyboarding class. Tax season on the bogleheads forum...time for CPAs and other tax professionals to feel the love. Now, time to get back to getting paid for typing into a computer. Jared, what type of tax returns do you do? Do you work at H&R Block? I am just curious. I work in public accounting for a small firm and not one day goes by where I feel like I just "type into a computer all day." I work on financial statement compilations, reviews, audits, and also prepare business tax returns, along with some 1040s. Most of the 1040s that I do work ...
- Mon Mar 27, 2017 10:55 am
- Forum: Personal Finance (Not Investing)
- Topic: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
- Replies: 27
- Views: 3483
Re: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
Don't be offended. I'm a CPA too. I'm mad at myself for wasting money on accounting courses, CPA exam, annual CPE courses, tax research services, etc. when I should have just taken a keyboarding class.Lindrobe wrote:Wow! I am a CPA. I am just a little bit offended by this comment.jared wrote:Yea, that's all a CPA does and knows how to do.
Tax season on the bogleheads forum...time for CPAs and other tax professionals to feel the love.
Now, time to get back to getting paid for typing into a computer.
- Sun Mar 26, 2017 8:34 pm
- Forum: Personal Finance (Not Investing)
- Topic: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
- Replies: 27
- Views: 3483
Re: CPA failed to file an 8606 on a 2014 backdoor Roth IRA conversion
Yea, that's all a CPA does and knows how to do.WolfgangPauli wrote: This is the reason I do my own taxes.. you are essentially paying this person to type into a computer what you tell them. If you type it yourself you save hundreds of dollars. Outcome is exactly the same...
- Mon Feb 20, 2017 1:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Family member renting 2nd house. Ok to ignore on tax return?
- Replies: 203
- Views: 57596
Re: Family member renting 2nd house. Ok to ignore on tax return?
I don't find the arguments by sscritic and jared entirely convincing, despite the references to three court cases. I'm not saying they are wrong, but I don't see that these cases say much to support the view that below-market rent must be reported as income. First, the Langley case. As has been pointed out, the court was not even deciding on an issue of income, so it doesn't directly touch on the issue of the OP, which is whether below-market rental to his mother in-law should be reported as income. Furthermore, several of the yes-tax-rent people have noted their surprise that the IRS did not immediately follow-up to collect the tax due on the rental income of $600/month that the petitioners claimed had been paid them, during the litigatio...
- Sun Feb 19, 2017 1:03 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1098-T & 529 question
- Replies: 17
- Views: 3143
Re: 1098-T & 529 question
Consider using $4,000 of expenses for American Opportunity Credit. This will result in some of the 529 earnings being included as taxable income (not subject to penalty). The tax credit is typically more than the additional tax liability.Mr. Benedictine wrote:Similar issues with us. This is also my first year doing this. I paid fall and spring tuition, room/board, fees, books all in 2016 though. Paid everything with a credit card
Tuition, fees both semesters: $14,665
Room/board both semesters: $14,323
Supplies/books/laptop: $1,818
total above: $30,805.77
529 withdrawals: $27,400.21
difference: $3405.56
Can I apply the $3405.56 toward the AOTC?
- Sun Jan 08, 2017 7:22 am
- Forum: Personal Finance (Not Investing)
- Topic: Is a joint account part of your taxable estate?
- Replies: 10
- Views: 1455
Re: Is a joint account part of your taxable estate?
The entire value of jointly held property (non-spouses) with the right of survivorship is included in a decedent’s gross estate except for the portion of the property for which the surviving joint tenant furnished consideration. See IRC 2040(a). (http://www.law.cornell.edu/uscode/text/26/2040)
- Sat Dec 24, 2016 10:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: Does a Corporation shield rental property Tax?
- Replies: 8
- Views: 946
Re: Does a Corporation shield rental property Tax?
Just want to point out that LLC and corporation are not interchangeable.
Inheriting shares of a corporation results in a step up in basis to the shares of the corporation, not to the assets owned by the corporation.
Inheriting shares of a corporation results in a step up in basis to the shares of the corporation, not to the assets owned by the corporation.
- Tue Dec 13, 2016 10:25 pm
- Forum: Personal Finance (Not Investing)
- Topic: Section 179 Deduction for Bussiness (Taxes)
- Replies: 3
- Views: 803
Re: Section 179 Deduction for Bussiness (Taxes)
It means more than 50% of its use must be business use. Yes, if it is used more than 50% for business use from the date it is placed in service, it should qualify for Section 179, even if there are are only 2 weeks remaining in the year.armeliusc wrote:
Does this mean more than 50% for the whole year, or more than 50% since it's bought? Let say, we buy the computer next week, there is only about 2 weeks left of 2016. So, does this mean, that as long as within that 2 weeks, more than 50% of the computer usage is for business, it qualifies for the Section 179 deduction? Or should we wait to buy the computer in January (and take the deduction for 2017 tax instead)?
- Fri Dec 09, 2016 11:19 am
- Forum: Personal Finance (Not Investing)
- Topic: What is my Cost Basis on Gifted Real Estate?
- Replies: 39
- Views: 4498
Re: What is my Cost Basis on Gifted Real Estate?
My Mother In Law lives in Florida and decided (with her attorney's advise) to 'Gift' her Condo to my wife and her sister while retaining a life estate for her to live there as long as she lived. The attorney was advising her and several of her friends to simplify their estates by doing this. Of course he charged her for preparing the deed - a modest charge which would certainly be less expensive than having to go through probate. We also had to file a 'Gift Tax' return to report that transfer, although she did not pay any actual taxes on the transaction because of the lifetime exemption. Of course the down side to this is the fact that my wife and her sister now will have to pay capital gains when they eventually sell the property based on...
- Fri Dec 09, 2016 6:42 am
- Forum: Personal Finance (Not Investing)
- Topic: What is my Cost Basis on Gifted Real Estate?
- Replies: 39
- Views: 4498
Re: What is my Cost Basis on Gifted Real Estate?
Agree with Gill if dad owned the property. Just not sure about this statement.
Transfer with retained life estate results in property being includible in decedent's estate. If this is the case, property gets a step up in basis.My dad lives there and has a life estate, but the title was deeded over to me and my sisters directly from my mother (dad had rights to the property, but the deed was only in her name for some weird reason).
- Mon Nov 28, 2016 12:32 am
- Forum: Personal Finance (Not Investing)
- Topic: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
- Replies: 8
- Views: 1540
Re: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
What do you think about this?
I hope someone can help provide the clearer path if such a path exists. Until then, if you were in the OPs situation, what would you do?jared wrote:Finally, it might also be worth pointing out that premiums for all Medicare Parts for the coverage of the self-employed individual's spouse are allowed as a deduction, and those certainly aren't in the name of the business or the taxpayer/proprietor.
- Sun Nov 27, 2016 11:29 pm
- Forum: Personal Finance (Not Investing)
- Topic: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
- Replies: 8
- Views: 1540
Re: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
1. Yes. See grabiner's reference.
2. Yes. I don't believe the name on the policy or existence of separate policies should matter. I discussed my opinion in another thread. Although that particular discussion dealt with health insurance for a sole proprietor, I believe the same principle would apply to the S Corp shareholder situation.
viewtopic.php?t=153650#p2305512
2. Yes. I don't believe the name on the policy or existence of separate policies should matter. I discussed my opinion in another thread. Although that particular discussion dealt with health insurance for a sole proprietor, I believe the same principle would apply to the S Corp shareholder situation.
viewtopic.php?t=153650#p2305512
- Sat Oct 29, 2016 12:33 pm
- Forum: Personal Finance (Not Investing)
- Topic: Medical Suite Purchase: By Individual Or By His One-Shareholder S Corp?
- Replies: 12
- Views: 1468
Re: Medical Suite Purchase: By Individual Or By His One-Shareholder S Corp?
Keep the real estate out of the corp.
- Mon Oct 24, 2016 6:13 am
- Forum: Personal Finance (Not Investing)
- Topic: charity auction service--tax deductible?
- Replies: 4
- Views: 776
Re: charity auction service--tax deductible?
No, value of service does not qualify.
- Fri Sep 09, 2016 11:40 pm
- Forum: Personal Finance (Not Investing)
- Topic: Business use of home deduction
- Replies: 4
- Views: 976
Re: Business use of home deduction
Sorry if I wasn't clear on question 2.
Essentially, a taxpayer cannot deduct rental payments from business income for property owned by the taxpayer per IRC 162(a)(3). When I mentioned it may be possible, I was referring to what some call the "Cox Strategy", based on a 1993 Tax Court decision, Cox v. Commissioner [TC Memo 1993- 326, 66 TCM 192 (1993)]. If taxpayer and spouse both own the property, it may be possible to deduct 1/2 of the rental payments for the spouse portion. Ignoring the rental exclusion under 280A(g), the "Cox Strategy" may reduce SE tax by shifting income from self-employment income to rental income.
http://archives.cpajournal.com/1996/109 ... fedtax.htm
Essentially, a taxpayer cannot deduct rental payments from business income for property owned by the taxpayer per IRC 162(a)(3). When I mentioned it may be possible, I was referring to what some call the "Cox Strategy", based on a 1993 Tax Court decision, Cox v. Commissioner [TC Memo 1993- 326, 66 TCM 192 (1993)]. If taxpayer and spouse both own the property, it may be possible to deduct 1/2 of the rental payments for the spouse portion. Ignoring the rental exclusion under 280A(g), the "Cox Strategy" may reduce SE tax by shifting income from self-employment income to rental income.
http://archives.cpajournal.com/1996/109 ... fedtax.htm
- Fri Sep 09, 2016 1:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Business use of home deduction
- Replies: 4
- Views: 976
Re: Business use of home deduction
1) Yes, assuming the corporation rents it from you at fair rental value and the Christmas party rental is an ordinary and necessary business expense, I believe the rental income could be deducted by the corporation and excluded by you under IRC 280A(g). 2) No, assuming your wife has ownership in your house. IRC 162(a)(3) allows a deduction for "rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity." If you have ownership in the house, you might be able to take the position that 1/2 of the rent payment can be deducted from her business income for your p...
- Mon Jul 25, 2016 3:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Depreciation re-capture on death of owner? Home office/partial rental property.
- Replies: 1
- Views: 357
- Wed Jun 08, 2016 10:32 pm
- Forum: Personal Finance (Not Investing)
- Topic: Taxation of house sale proceeds
- Replies: 7
- Views: 2193
Re: Taxation of house sale proceeds
If parents continued to reside in the house, perhaps an implied life estate exists. Transfers with retained life estate are includible in decedent's gross estate and therefore receive a stepped up basis.
- Sat Apr 02, 2016 9:51 pm
- Forum: Personal Finance (Not Investing)
- Topic: Bought a farm for $1
- Replies: 18
- Views: 4158
- Sat Mar 12, 2016 12:08 am
- Forum: Personal Finance (Not Investing)
- Topic: Farm Income Question: Death, Taxes, and the Grange
- Replies: 6
- Views: 891
Re: Farm Income Question: Death, Taxes, and the Grange
Growing and harvested crops of an owner-operator farmer (rules are different for landlord) receive a step up in basis to FMV at date of death. This will be treated as the sale of a capital asset with a long-term holding period.
- Sun Jan 24, 2016 10:50 pm
- Forum: Personal Consumer Issues
- Topic: Best Android app to send/receive texts from PC?
- Replies: 7
- Views: 1313
Best Android app to send/receive texts from PC?
Looking for an android app to send and receive texts from a PC. I'm currently looking into options including MightyText, Pushbullet, and mySMS.
Any recommendations?
Any recommendations?
- Wed Jan 06, 2016 11:08 pm
- Forum: Personal Investments
- Topic: Have I been messing up my estimated taxes all this time?
- Replies: 6
- Views: 1272
Re: Have I been messing up my estimated taxes all this time?
Any reason you don't use the safe harbor and pay 100% or 110% of prior year tax? I know that doesn't answer your question, but just bringing it up in case you weren't aware of the option.
- Tue Dec 22, 2015 2:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: SEP-IRA Schedule-C and K-1 Income Sources
- Replies: 14
- Views: 8305
Re: SEP-IRA Schedule-C and K-1 Income Sources
Again, the LLC/Partnership is the employer and the members/partners are the employees. The employees do not individually establish the SEP or make contributions to the SEP. @Jared, See Example 3 here: http://www.irafinancialgroup.com/solo-401k-controlled-group-rules-separate-business.php Joe owns 78% of Company A and Tim, his friend, owns the remaining 22%. Company A has 12 full-time employees. Company A does not have a 401(k) Plan. Tim does some consulting on a part-time basis and wants to establish a new corporation for his consulting business as well as establish a Solo 401(k) plan. Tim speaks with his tax attorney to inquire whether he could adopt a Solo 401(k) plan for his new business without being required to offer benefits to the 12...
- Mon Dec 21, 2015 10:14 pm
- Forum: Personal Finance (Not Investing)
- Topic: SEP-IRA Schedule-C and K-1 Income Sources
- Replies: 14
- Views: 8305
Re: SEP-IRA Schedule-C and K-1 Income Sources
@DSInvestor good tip, will call custodian. @Spirit Rider, we don't have employees, not trying to short anyone. Spoke with our accountant, she said, that as a sole prop, one can combine K-1 + Schedule C when calculating SEP-IRA contribution max. Makes sense, because both (K-1 and Schd C) are subject to SET and both flow into net income on 1040. She said two SEPs are not needed (one for K-1 income, one for Schd C). Also, she said the source of the employ-ER contribution determines if it would apply to employ-EES. As long as our individual SEPs are not funded by LLC funds, we wouldn't be bound to offer a plan to employees. So funding a SEP from my own bank account using K-1 or Schd C net income funds is fine. I'll wait to see what the IRA cus...
- Thu Dec 17, 2015 8:06 am
- Forum: Personal Finance (Not Investing)
- Topic: SIMPLE IRA Two Year Rule Question
- Replies: 16
- Views: 3000
- Wed Dec 16, 2015 8:35 pm
- Forum: Personal Finance (Not Investing)
- Topic: Schedule C - How to report income and expenses
- Replies: 25
- Views: 2393
Re: Schedule C - How to report income and expenses
Agree with MarkNYC. Constructive receipt of $965.
- Sun Dec 13, 2015 1:54 pm
- Forum: Personal Finance (Not Investing)
- Topic: 1099 and K-1 income tax question
- Replies: 3
- Views: 512
Re: 1099 and K-1 income tax question
No.invest123 wrote:Yes, that is the question--can capital investments be deducted as a business expense?Hayden wrote:I think an investment (capital you put into this company) is not an expense, and is not deducted as an expense on your tax return.
- Wed Nov 18, 2015 11:44 pm
- Forum: Personal Finance (Not Investing)
- Topic: Independent contractor and health insurance premium tax deduction
- Replies: 2
- Views: 659
Re: Independent contractor and health insurance premium tax deduction
I don't think the name on the policy matters. See my detailed explanation to a similar question in another thread:
viewtopic.php?f=2&t=153650#p2305512
viewtopic.php?f=2&t=153650#p2305512
- Thu Nov 05, 2015 1:41 pm
- Forum: Personal Finance (Not Investing)
- Topic: Wages and retirement contribution for very small S Corp
- Replies: 9
- Views: 1220
Re: Wages and retirement contribution for very small S Corp
Somebody correct me if I am wrong, but I believe the health insurance for the owner is not an allowed S-Corp expense. The health insurance can be either paid by the S-Corp or reimbursed by the S-Corp. However, then the health insurance must be included in the owners wages in the W-2 box 1 (but not 3 or 5). The health insurance is an expense of the S Corp. Instead of a health insurance expense, it becomes a compensation expense. You then deduct the full health insurance with the self-employed health insurance deduction. Note this is a personal deduction and can offset other income. The self-employed health insurance deduction is only allowed to the extent of the shareholder-employee's FICA taxable wages from the S Corp. A very simple exampl...
- Wed Nov 04, 2015 11:46 pm
- Forum: Personal Finance (Not Investing)
- Topic: Wages and retirement contribution for very small S Corp
- Replies: 9
- Views: 1220
Re: Wages and retirement contribution for very small S Corp
Keep in mind the self employed health insurance deduction on the 1040 will be limited to the "real" compensation. Thanks Jared! I thought there was some issue with it, but I couldn't remember what. In my example, does that mean that the self employed health insurance deduction is limited to the $4644 in wages, or the $355 in taxable wages? I believe the SEHI deduction would be limited to $4,644. So if I want the company to reimburse me $10,000 for health insurance, I need to have $10,000 in W2 wages. Of that $10,000 in wages, I pay $765 in social security/Medicare, and put the remainder into the solo 401k The amount I am allowed to contribute to the Roth is $765, since that is my taxable wages. Have I got this right? If the corp ...
- Sat Oct 31, 2015 1:21 pm
- Forum: Personal Finance (Not Investing)
- Topic: Wages and retirement contribution for very small S Corp
- Replies: 9
- Views: 1220
Re: Wages and retirement contribution for very small S Corp
Keep in mind the self employed health insurance deduction on the 1040 will be limited to the "real" compensation.
- Fri Oct 23, 2015 7:38 am
- Forum: Personal Finance (Not Investing)
- Topic: My mom is 80 year old and she has never taken out the RMD, please help!
- Replies: 61
- Views: 11788
Re: My mom is 80 year old and she has never taken out the RMD, please help!
For those stating to not worry about past RMDs because the statute of limitations may have run out, please note that the statute of limitations on the 5329 does not start until the form has been filed. This leaves the door open for the IRS to assess past due penalties that should have been reported on the form when no form has been filed at all. Since you seem sure of the statute of limitations issue, it may be helpful to the OP if you cite some authority like a tax court case. I'm not guapomole, but I'll go ahead and cite some authority: http://www.ustaxcourt.gov/InOpHistoric/Paschall.TC.WPD.pdf Section 6501(a) provides the general rule that the amount of any tax imposed by the Code shall be assessed within 3 years of the filing of the re...
- Fri Oct 16, 2015 10:15 am
- Forum: Personal Finance (Not Investing)
- Topic: Please explain how this Tax Credit works (American Opportunity Credit)
- Replies: 27
- Views: 3200
Re: Please explain how this Tax Credit works (American Opportunity Credit)
Sorry about the quote messup. This is right off of the IRS website FAQ page for AOTC. Q7. Does an expenditure for a computer qualify for the American opportunity tax credit? A. Whether an expenditure for a computer qualifies for the credit depends on the facts. An expenditure for a computer would qualify for the credit if the computer is needed as a condition of enrollment or attendance at the educational institution. I'm taking online classes with a 10 year old computer and to upgrade would seem to follow these rules. Any thoughts? In my opinion , this would not qualify. Are you required to purchase a computer as a condition of enrollment? Would you still be allowed to enroll if you used a friend's computer or computer at the public libra...
- Mon Oct 12, 2015 1:36 am
- Forum: Personal Finance (Not Investing)
- Topic: Tax implications of subdividing primary home lot
- Replies: 9
- Views: 1871
Re: Tax implications of subdividing primary home lot
Take a look at Reg. 1.121-1 (b)(3) including Example 3 and 4.
https://www.law.cornell.edu/cfr/text/26/1.121-1
https://www.law.cornell.edu/cfr/text/26/1.121-1
- Fri Oct 02, 2015 11:45 am
- Forum: Investing - Theory, News & General
- Topic: Master Limited Partnerships - Can Anyone Clarify This?
- Replies: 29
- Views: 2778
Re: Master Limited Partnerships - Can Anyone Clarify This?
I think that's probably a good guess.spectec wrote:Financial advisors are fond of slipping $10-$20K of their clients' money into MLP's for some reason. Not enough to be maningful, but enough to complicate things. I'm guessing the commissions for sellling MLP's are higher than normal.
- Tue Sep 29, 2015 10:12 am
- Forum: Personal Consumer Issues
- Topic: Minivan or not?
- Replies: 50
- Views: 7609
Re: Minivan or not?
Family of 3 here. We purchased a 2015 Honda Odyssey EX-L w/ RES and love it so far. My only regret is not making the purchase 2 years ago. My wife wanted nothing to do with a minivan at first, but I somehow talked her into looking at them and taking at test drive. She quickly realized how nice they were and how much more room we would have, even for our small family.
- Sun Aug 09, 2015 9:55 pm
- Forum: Personal Consumer Issues
- Topic: SUV advice
- Replies: 119
- Views: 15478
Re: SUV advice
You will, of course, get different opinions. We purchased a Honda Odyssey when we had children, though a smaller SUV would work with one child. If you are planning more than one, smaller ones might get tight since you would have two carseats and other items such as either a two-seat stroller or two strollers, at least for a period of time. The Odyssey drives like a car, is reliable and uses regular gasoline. It also gets excellent mileage. Our children are grown now, but my wife still drives an Odyssey. Mileage is 25+ which pretty much means you can disregard claims of smaller vehicles getting better mileage. Resale value is strong, and people, quite literally, say they want to purchase ours when we sell. That may partially be because my w...
- Tue Jul 21, 2015 10:47 pm
- Forum: Personal Finance (Not Investing)
- Topic: ACA subsidy and S-corp tax issues
- Replies: 8
- Views: 2399
Re: ACA subsidy and S-corp tax issues
1) The insurance premium can be re-imbursed by the S-corp, and the S-corp can claim it as an expense. The premium needs to be included in W2 income (not subject to FICA), but we can then claim an above-the-line deduction for the premium on my personal tax return. Correct. 2) If our health insurance plan qualifies as a high-deductible plan, then we can contribute to a HSA account. The S-corp can make HSA contributions directly, which is not subject to income tax or FICA. Not exactly. HSAs should be handled the same as health insurance. My question is, can I continue to do these two things if I am getting subsidy from the ACA exchange? As far as I understand, I can only get subsidy from the ACA exchange if my employer does not provide health...
- Sun Jul 19, 2015 4:57 pm
- Forum: Personal Finance (Not Investing)
- Topic: What can you deduct for undermarket rental?
- Replies: 23
- Views: 2688
Re: What can you deduct for undermarket rental?
I'm not clear on why renting "not for profit" is different than "under market means personal use." Directly from IRC 280A (3) Coordination with section 183 If subsection (a) applies with respect to any dwelling unit (or portion thereof) for the taxable year— (A) section 183 (relating to activities not engaged in for profit) shall not apply to such unit (or portion thereof) for such year, but To summarize, if 280A(a) applies, the not-for-profit rules do not apply. We need to know if 280A(a) applies. What does 280A(a) say? (a) General rule Except as otherwise provided in this section, in the case of a taxpayer who is an individual or an S corporation, no deduction otherwise allowable under this chapter shall be allowed wi...
- Sun Jul 19, 2015 9:39 am
- Forum: Personal Finance (Not Investing)
- Topic: What can you deduct for undermarket rental?
- Replies: 23
- Views: 2688
Re: What can you deduct for undermarket rental?
The not-for-profit rental rules do not come into play under this scenario. IRC 280A takes precedence over IRC 183.
When renting at less than fair rental value, you are NOT allowed to deduct the expenses up to the amount of rental income. The often quoted section from Pub 527 does not apply to this scenario.
You are only allowed to deduct mortgage interest and real estate taxes on Sch A.
The rules are complicated. You have and will continue to receive incorrect advice on this topic. We've had similar discussions here before.
When renting at less than fair rental value, you are NOT allowed to deduct the expenses up to the amount of rental income. The often quoted section from Pub 527 does not apply to this scenario.
You are only allowed to deduct mortgage interest and real estate taxes on Sch A.
The rules are complicated. You have and will continue to receive incorrect advice on this topic. We've had similar discussions here before.
- Sun Jul 19, 2015 1:45 am
- Forum: Personal Finance (Not Investing)
- Topic: What can you deduct for undermarket rental?
- Replies: 23
- Views: 2688
Re: What can you deduct for undermarket rental?
Only mortgage interest and real estate taxes will be deductible on Sch A.
Any day rented to anyone at less than fair rental value is considered a personal-use day.
See IRC 280A for details. https://www.law.cornell.edu/uscode/text/26/280A
Any day rented to anyone at less than fair rental value is considered a personal-use day.
See IRC 280A for details. https://www.law.cornell.edu/uscode/text/26/280A
- Fri Jul 17, 2015 10:11 am
- Forum: Personal Finance (Not Investing)
- Topic: Today I paid off my law-school student loans
- Replies: 37
- Views: 6644
Re: Today I paid off my law-school student loans
Congrats. Enjoyed reading your post.
- Wed Jun 10, 2015 10:15 pm
- Forum: Personal Finance (Not Investing)
- Topic: HSA reimbursements - to take now or wait?
- Replies: 13
- Views: 2539
Re: HSA reimbursements - to take now or wait?
Similar feelings here. I pay all expenses out of pocket and reimburse myself annually or semi-annually.jebmke wrote: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.
- 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: 1986
Re: s-corp owner with a new commuting profile - can i take standard mileage deductions
If OP is the only employee of the S Corp, the health insurance payments/reimbursement should not be an issue. The treatment of health insurance premium payments/reimbursements should continue following Notice 2008-1, which OP seems to have a handle on.SteveKL wrote:+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.ralph124cf wrote: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.
- 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: 18073
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.
- 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: 18073
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 "research."
- Tue May 12, 2015 4:10 pm
- Forum: Personal Finance (Not Investing)
- Topic: Backdoor Roth: Schooling my CPA and getting charged for it!
- Replies: 134
- Views: 18073
Re: Backdoor Roth: Schooling my CPA and getting charged for it!
Call him and ask.
- Sat May 02, 2015 1:55 pm
- Forum: Personal Finance (Not Investing)
- Topic: Trying to Understand Business Health Insurance vs Personal
- Replies: 11
- Views: 1583
Re: Trying to Understand Business Health Insurance vs Person
Did you read the linked discussion?RabbMD wrote:Im not sure how you get to this conclusion Jared.jared wrote: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.
- Fri May 01, 2015 11:06 am
- Forum: Personal Finance (Not Investing)
- Topic: Trying to Understand Business Health Insurance vs Personal
- Replies: 11
- Views: 1583
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.
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.