Search found 537 matches

by jared
Wed Jun 08, 2016 10:32 pm
Forum: Personal Finance (Not Investing)
Topic: Taxation of house sale proceeds
Replies: 7
Views: 765

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: 3393

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: 697

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: 654

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: 1023

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: 1169

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: 1169

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: 942

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: 1430

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: 344

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: 360

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: 856

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: 856

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: 856

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: 8404

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: 2042

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: 796

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: 1868

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: 4503

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: 10571

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: 1140

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: 1868

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: 1868

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: 1868

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: 4779

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: 1555

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: 1112

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: 12541

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: 12541

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: 995

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: 995

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: 995

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: 3468

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: 3468

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: 2879

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: 2879

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: 9265

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: 755

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: 9265

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: 1246

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: 1246

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: 1246

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: 2949

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: 4192

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: 4192

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: 53
Views: 5650

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: 1013

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: 1656

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...

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