Search found 543 matches

by jared
Mon Nov 28, 2016 1:32 am
Forum: Personal Finance (Not Investing)
Topic: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
Replies: 8
Views: 606

Re: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions

What do you think about this? 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. I hope someone can ...
by jared
Mon Nov 28, 2016 12:29 am
Forum: Personal Finance (Not Investing)
Topic: Family-HSA & One-Man SCorp: CONTRIBUTION and PREMIUM Questions
Replies: 8
Views: 606

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 appl...
by jared
Mon Oct 24, 2016 6:13 am
Forum: Personal Finance (Not Investing)
Topic: charity auction service--tax deductible?
Replies: 4
Views: 476

Re: charity auction service--tax deductible?

No, value of service does not qualify.
by jared
Fri Sep 09, 2016 11:40 pm
Forum: Personal Finance (Not Investing)
Topic: Business use of home deduction
Replies: 4
Views: 503

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 decis...
by jared
Fri Sep 09, 2016 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: Business use of home deduction
Replies: 4
Views: 503

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 you...
by jared
Wed Jun 08, 2016 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation of house sale proceeds
Replies: 7
Views: 841

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.
by jared
Sat Apr 02, 2016 9:51 pm
Forum: Personal Finance (Not Investing)
Topic: Bought a farm for $1
Replies: 18
Views: 3479

Re: Bought a farm for $1

by jared
Sat Mar 12, 2016 1:08 am
Forum: Personal Finance (Not Investing)
Topic: Farm Income Question: Death, Taxes, and the Grange
Replies: 6
Views: 727

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.
by jared
Sun Jan 24, 2016 11:50 pm
Forum: Personal Consumer Issues
Topic: Best Android app to send/receive texts from PC?
Replies: 7
Views: 716

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?
by jared
Thu Jan 07, 2016 12:08 am
Forum: Investing - Help with Personal Investments
Topic: Have I been messing up my estimated taxes all this time?
Replies: 6
Views: 1067

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.
by jared
Tue Dec 22, 2015 3:44 pm
Forum: Personal Finance (Not Investing)
Topic: SEP-IRA Schedule-C and K-1 Income Sources
Replies: 14
Views: 1597

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...
by jared
Mon Dec 21, 2015 11:14 pm
Forum: Personal Finance (Not Investing)
Topic: SEP-IRA Schedule-C and K-1 Income Sources
Replies: 14
Views: 1597

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...
by jared
Thu Dec 17, 2015 9:06 am
Forum: Personal Finance (Not Investing)
Topic: SIMPLE IRA Two Year Rule Question
Replies: 16
Views: 1066

Re: SIMPLE IRA Two Year Rule Question

I believe Alan S. has weighed in on this issue before.

viewtopic.php?t=97718
by jared
Wed Dec 16, 2015 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Schedule C - How to report income and expenses
Replies: 25
Views: 1538

Re: Schedule C - How to report income and expenses

Agree with MarkNYC. Constructive receipt of $965.
by jared
Sun Dec 13, 2015 2:54 pm
Forum: Personal Finance (Not Investing)
Topic: 1099 and K-1 income tax question
Replies: 3
Views: 367

Re: 1099 and K-1 income tax question

invest123 wrote:
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.


Yes, that is the question--can capital investments be deducted as a business expense?

No.
by jared
Thu Nov 19, 2015 12:44 am
Forum: Personal Finance (Not Investing)
Topic: Independent contractor and health insurance premium tax deduction
Replies: 2
Views: 376

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
by jared
Thu Nov 05, 2015 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Wages and retirement contribution for very small S Corp
Replies: 9
Views: 890

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 ...
by jared
Thu Nov 05, 2015 12:46 am
Forum: Personal Finance (Not Investing)
Topic: Wages and retirement contribution for very small S Corp
Replies: 9
Views: 890

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 ...
by jared
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: 890

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.
by jared
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: 8752

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...
by jared
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: 2142

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 q...
by jared
Mon Oct 12, 2015 1:36 am
Forum: Personal Finance (Not Investing)
Topic: Tax implications of subdividing primary home lot
Replies: 9
Views: 841

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
by jared
Fri Oct 02, 2015 11:45 am
Forum: Investing - Theory, News & General
Topic: Master Limited Partnerships - Can Anyone Clarify This?
Replies: 29
Views: 1951

Re: Master Limited Partnerships - Can Anyone Clarify This?

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.


I think that's probably a good guess.
by jared
Tue Sep 29, 2015 10:12 am
Forum: Personal Consumer Issues
Topic: Minivan or not?
Replies: 50
Views: 4886

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 ...
by jared
Sun Aug 09, 2015 9:55 pm
Forum: Personal Consumer Issues
Topic: SUV advice
Replies: 119
Views: 11200

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...
by jared
Tue Jul 21, 2015 10:47 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy and S-corp tax issues
Replies: 8
Views: 1274

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...
by jared
Sun Jul 19, 2015 4:57 pm
Forum: Personal Finance (Not Investing)
Topic: What can you deduct for undermarket rental?
Replies: 23
Views: 1930

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 (rel...
by jared
Sun Jul 19, 2015 9:39 am
Forum: Personal Finance (Not Investing)
Topic: What can you deduct for undermarket rental?
Replies: 23
Views: 1930

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 s...
by jared
Sun Jul 19, 2015 1:45 am
Forum: Personal Finance (Not Investing)
Topic: What can you deduct for undermarket rental?
Replies: 23
Views: 1930

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
by jared
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: 5042

Re: Today I paid off my law-school student loans

Congrats. Enjoyed reading your post.
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: 1609

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: 1181

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: 13075

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: 13075

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: 1039

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: 1039

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: 1039

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: 3593

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: 3593

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: 2982

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: 2982

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: 9717

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: 780

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: 9717

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: 1323

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: 1323

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: 1323

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...

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