Author Topic: any accountants out there that i can ask a question?  (Read 490465 times)

Offline Yammer

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Re: any accountants out there that i can ask a question?
« Reply #1500 on: February 20, 2018, 10:45:26 AM »
If you received it in 2017 for work done in 2017 and the date on the check was 2017 then it is 2017 income. It makes no difference when you happened to drop it into the bank.
Thanks
-.5
taxpayers are cash basis for the most part
if you were getting a w2 or 1099 the company would issue in 2017
if you;re not there is no reason that you couldn't defer
In not sure I understand. It will be a W-2.




Online A3

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Re: any accountants out there that i can ask a question?
« Reply #1501 on: February 20, 2018, 11:03:00 AM »
-.5
taxpayers are cash basis for the most part
if you were getting a w2 or 1099 the company would issue in 2017
if you;re not there is no reason that you couldn't defer
If you received the check, deposited or not... It's considered received... Now if it was mailed and only received in mid January... You can argue cash basis, would still have to show the income on your books (AR) and record a books to tax adjustment.

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1502 on: February 20, 2018, 11:34:49 AM »

Is there a deadline to when a bonus needs to be deposited to still be considered income for 2017? ( Check is dated in Dec 2017 )
If you received it in 2017 for work done in 2017 and the date on the check was 2017 then it is 2017 income. It makes no difference when you happened to drop it into the bank.
Particularly when it's on a 2017 W-2 or a 2017 1099 or other income reporting instrument.
As Dawie said.

if you were getting a W-2 or 1099 the company would issue in 2017
if you're not, there is no reason that you couldn't defer to 2018 income.
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Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1503 on: February 20, 2018, 11:59:35 AM »
Technically, the 1099 has no effect.

You must report cash basis income "in the year that the income was made available to you without restriction".

Offline Yammer

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Re: any accountants out there that i can ask a question?
« Reply #1504 on: February 20, 2018, 12:13:47 PM »
If you received the check, deposited or not... It's considered received... Now if it was mailed and only received in mid January... You can argue cash basis, would still have to show the income on your books (AR) and record a books to tax adjustment.
Particularly when it's on a 2017 W-2 or a 2017 1099 or other income reporting instrument.
As Dawie said.
Thanks.

Offline Yammer

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Re: any accountants out there that i can ask a question?
« Reply #1505 on: February 20, 2018, 08:57:57 PM »


Another detail related to these two topics (kollel pay, childcare credit) is whether someone in kollel is considered a student. One requirement for claiming the childcare credit on a joint return is that both spouses need to be working or one working and the other a full-time student.

Thats exactly what happened. But I was referring to the Social Services program called DayCare.

They figured that they can throw off recipients like that. 

Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1506 on: February 23, 2018, 12:15:19 PM »
Is there a legitimate way for me to reduce my 2017 modified AGI right now (ie for the purpose of my 2017 tax returns)?

Offline AtallD

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Re: any accountants out there that i can ask a question?
« Reply #1507 on: February 23, 2018, 12:24:11 PM »
Is there a legitimate way for me to reduce my 2017 modified AGI right now (ie for the purpose of my 2017 tax returns)?

IRA contributions by 4/15 or SEP contributions if you have Schedule C and meet the criteria

Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1508 on: February 23, 2018, 12:25:37 PM »
IRA contributions by 4/15 or SEP contributions if you have Schedule C and meet the criteria
I'm doing it to avoid having to back out IRA contributions that I already made, so it has to be outside of that method. (I should have mentioned that to start).

Offline AtallD

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Re: any accountants out there that i can ask a question?
« Reply #1509 on: February 23, 2018, 12:31:29 PM »
I'm doing it to avoid having to back out IRA contributions that I already made, so it has to be outside of that method. (I should have mentioned that to start).

hmm... are you in a high-deductible medical plan? Can you contribute to an HSA?

Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1510 on: February 23, 2018, 12:53:31 PM »
hmm... are you in a high-deductible medical plan? Can you contribute to an HSA?
Nope.

Offline gozalim

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Re: any accountants out there that i can ask a question?
« Reply #1511 on: February 23, 2018, 01:18:00 PM »
Any way to lower 'earned'?  (don't think IRA will help there)

Offline shwarmabob

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Re: any accountants out there that i can ask a question?
« Reply #1512 on: February 23, 2018, 01:20:04 PM »
Do I need to write a letter for a first-time abatement or just use the form?

Offline skyguy918

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Re: any accountants out there that i can ask a question?
« Reply #1513 on: February 23, 2018, 01:34:38 PM »
Any way to lower 'earned'?  (don't think IRA will help there)
If you're asking for me, the answer is no. All our income is from regular paychecks from a very large corporation and a school district.

Offline Jack out of the box

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Offline mahnishma

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Re: any accountants out there that i can ask a question?
« Reply #1515 on: February 24, 2018, 11:49:45 PM »
Can i deduct business cc annual fee as a business expense, if I've used it for Both personal and business?
Tia

Offline nucheiner

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Re: any accountants out there that i can ask a question?
« Reply #1516 on: February 25, 2018, 04:42:39 PM »
Regarding conducting business via an LLC, C-Corp or similar to lower one's personal income, in order to stay eligible for government programs, (and more importantly to avoid the reporting requirements for someone receiving services from multiple agencies).
(Obviously claiming business expenses to be personal is illegal, I am referring to using the biz as a "savings account")

Is this legal?
Is this ethical?

Without discussing details of any persons, was there anything learned from last yrs law enforcement welfare crackdown regarding this?

For many it's worth the double taxation to be eligible for 30k in programs.


Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1517 on: February 25, 2018, 04:51:18 PM »
Regarding conducting business via an LLC, C-Corp or similar to lower one's personal income, in order to stay eligible for government programs, (and more importantly to avoid the reporting requirements for someone receiving services from multiple agencies).
(Obviously claiming business expenses to be personal is illegal, I am referring to using the biz as a "savings account")

Is this legal?
Is this ethical?

Without discussing details of any persons, was there anything learned from last yrs law enforcement welfare crackdown regarding this?

For many it's worth the double taxation to be eligible for 30k in programs.
LLC will only work if you elect to be taxed as a c corp
medicare and other programs are targeting c corps
To answer the legal and ethical questions allow me to quote Judge Learned Hand
"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. public duty to pay more than the law demands."

and in Commissioner v. Newman
Over and over again courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.

Offline ExGingi

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Re: any accountants out there that i can ask a question?
« Reply #1518 on: February 25, 2018, 10:11:24 PM »
LLC will only work if you elect to be taxed as a c corp
medicare and other programs are targeting c corps
To answer the legal and ethical questions allow me to quote Judge Learned Hand
"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. public duty to pay more than the law demands."

and in Commissioner v. Newman
Over and over again courts have said that there is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.
I am assuming you meant to write Medicaid, as Medicare eligibility has nothing to do with finances (though Medicare premiums do depend on income).

As for Medicaid, since the enactment of ACA, there is no asset test for Medicaid in most cases, it is only MAGI that counts. So I'm not sure what could be "targeted" in the case of C-Corps. You either got the W-2 and/or 1099-DIV income or you didn't. If the net worth of the corporation grows, and you own 100% of the stock, and no dividend is paid, the value of that corporation shouldn't affect your Medicaid eligibility. Can't speak about other programs.

Thanks for those quotes about taxes. Those need to be taught in all grades K-12 and beyond. Maybe with some proper indoctrination, we might get this country on the right track.  ;)
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Dawie

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Re: any accountants out there that i can ask a question?
« Reply #1519 on: February 26, 2018, 11:26:35 AM »
I am assuming you meant to write Medicaid, as Medicare eligibility has nothing to do with finances (though Medicare premiums do depend on income).

As for Medicaid, since the enactment of ACA, there is no asset test for Medicaid in most cases, it is only MAGI that counts. So I'm not sure what could be "targeted" in the case of C-Corps. You either got the W-2 and/or 1099-DIV income or you didn't. If the net worth of the corporation grows, and you own 100% of the stock, and no dividend is paid, the value of that corporation shouldn't affect your Medicaid eligibility. Can't speak about other programs.

Thanks for those quotes about taxes. Those need to be taught in all grades K-12 and beyond. Maybe with some proper indoctrination, we might get this country on the right track.  ;)
Medicaid, your're right
https://www.app.com/story/news/local/ocean-county/2017/09/07/lakewood-fraud-arrests-spur-amnesty-program-medicaid-cheats/641473001/