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DansDeals Forum => General Discussion => Topic started by: raf on December 15, 2013, 07:19:29 PM

Title: any accountants out there that i can ask a question?
Post by: raf on December 15, 2013, 07:19:29 PM
either respond (so i can pm you) or pm me
thanks
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on December 15, 2013, 07:44:44 PM
I will try to answer
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 15, 2013, 08:59:41 PM
either respond (so i can pm you) or pm me
thanks
Is it private?
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 29, 2013, 09:31:16 AM
Irs sent me a letter that i owe about $3000 from a tax return (1040) a few years ago .  They say that I left out a 1099 for about $2000 ( wife work never sent it to us) and education credit wasn't accepted as box 2 was blank,  it only shows what the school billled but not what was paid.  I used turbo tax to file taxes.

Their cheshbon was that I owe tax on the 1099, + owe back education credit,  owe self employment tax, interest, and earned income credit is much less.

They say i could fax a corrected education form (1098 ).  Do i need to go to accountant or I should just send the corrected form?
Is there anything else to send them to reduce amount owed?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 09:59:05 AM

If turbo tax didnt work properly then fight with them... get a refund/credit etc
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 29, 2013, 10:07:43 AM
If turbo tax didnt work properly then fight with them... get a refund/credit etc
Never really paid for turbo tax
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on December 29, 2013, 11:41:36 AM
To your real question.
Send in the corrected education form.

Had you correctly filed the additional income on the missing 1099, most of what they are charging you would have been paid then.  So your loss is the disappointment/ negative surprise of the higher tax bill. and the fines and interest.  Try pleading that you never got the 1099, so you aren't liable for the fees and interest.   I had success once with misfiled numbers, that they didn't charge the fee only the interest.

BTW: I use TurboTax.  They misfiled the numbers I mentioned above.  BUT: they only put the number you tell them into the correct place in the forms.  Sometimes (my case) you misunderstand which numbers go where, or put it in 2 places or such.  I can't imagine TT is responsible for that.
Title: Re: any accountants out there that i can ask a question?
Post by: Adlebo on December 29, 2013, 12:03:28 PM
A question for an accountant: I have a corporation (P.C). I'm considering leasing a car vs. buying. What's better for tax deduction purposes? I heard that buying a car is also deductible due to the "depreciation" which I'm not sure exactly how that works. But then I hear that for a business it's better to lease because you can deduct more. What's true? (This is not to start the whole leasing vs. buying debate. This is strictly a tax deduction question!)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 12:25:28 PM
A question for an accountant: I have a corporation (P.C). I'm considering leasing a car vs. buying. What's better for tax deduction purposes? I heard that buying a car is also deductible due to the "depreciation" which I'm not sure exactly how that works. But then I hear that for a business it's better to lease because you can deduct more. What's true? (This is not to start the whole leasing vs. buying debate. This is strictly a tax deduction question!)
If you buy you can take a S179 deduction on a passenger vehicle up to approx 12k. Then you have bonus and regular depreciation. (Do it b4 1/1/14 if you need!)
For leasing you deduct most of the lease payments over time. There is an exclusion amount.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on December 29, 2013, 12:56:58 PM
Question: I get paid with a 1099 (just for tax purposes since i live in Israel)
I filed as a 1040 for the past 4 years with Turbo tax
How bad is this and if I change to file as a 1099 will it raise suspicions?
?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 12:59:47 PM
?
:)
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on December 29, 2013, 01:02:41 PM
Irs sent me a letter that i owe about $3000 from a tax return (1040) a few years ago .  They say that I left out a 1099 for about $2000 ( wife work never sent it to us) and education credit wasn't accepted as box 2 was blank,  it only shows what the school billled but not what was paid.  I used turbo tax to file taxes.

Their cheshbon was that I owe tax on the 1099, + owe back education credit,  owe self employment tax, interest, and earned income credit is much less.

They say i could fax a corrected education form (1098 ).  Do i need to go to accountant or I should just send the corrected form?
Is there anything else to send them to reduce amount owed?

Please state what type of 1099 and what type of eduction credit you are talking about.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on December 29, 2013, 01:05:29 PM
To your real question.
Send in the corrected education form.

Had you correctly filed the additional income on the missing 1099, most of what they are charging you would have been paid then.  So your loss is the disappointment/ negative surprise of the higher tax bill. and the fines and interest. Try pleading that you never got the 1099, so you aren't liable for the fees and interest.   I had success once with misfiled numbers, that they didn't charge the fee only the interest.

+1
Penalties are pretty easily waived, however interest is almost impossible.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 01:06:12 PM
Please state what type of 1099 and what type of eduction credit you are talking about.
It sounds like a student loan interest deduction, as in form 1098E.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on December 29, 2013, 01:12:26 PM
It sounds like a student loan interest deduction, as in form 1098E.

To me it sounds like its the American Opportunity Credit he is dealing with but I am not going guess.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 29, 2013, 01:13:59 PM
It sounds like a student loan interest deduction, as in form 1098E.
Looks like he wrote credit. Where do you see or how do you come uo with the idea that its 1098e? (just curious)
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on December 29, 2013, 01:15:49 PM
It sounds like a student loan interest deduction, as in form 1098E.

To me it sounds like its the American Opportunity Credit he is dealing with but I am not going guess.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 01:17:56 PM
Looks like he wrote credit. Where do you see or how do you come uo with the idea that its 1098e? (just curious)
Irs sent me a letter that i owe about $3000 from a tax return (1040) a few years ago .  They say that I left out a 1099 for about $2000 ( wife work never sent it to us) and education credit wasn't accepted as box 2 was blank,  it only shows what the school billled but not what was paid.  I used turbo tax to file taxes.

Their cheshbon was that I owe tax on the 1099, + owe back education credit,  owe self employment tax, interest, and earned income credit is much less.

They say i could fax a corrected education form (1098 ). Do i need to go to accountant or I should just send the corrected form?
Is there anything else to send them to reduce amount owed?

Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 29, 2013, 01:18:52 PM

All education information comes on a form 1098.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 01:22:07 PM
All education information comes on a form 1098.
Ok, Sound like Bostoner is right.
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 29, 2013, 04:56:11 PM
Please state what type of 1099 and what type of eduction credit you are talking about.
She worked as a tutor,  it was 1099 misc. Other was 1098-t that they rejected, she went to college for masters and payed about 8k but only amount billed was listed not amount paid so they rejected it.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on December 29, 2013, 05:23:53 PM
She worked as a tutor,  it was 1099 misc. Other was 1098-t that they rejected, she went to college for masters and payed about 8k but only amount billed was listed not amount paid so they rejected it.

Q' for the accountants here,
I wonder if her college expenses are fully deductible for AGI as a business expense because she was working in education.
(up to the $ amount of her 1099 as a tutor).

If so, she would avoid any payment because she never owed the IRS anything...
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on December 29, 2013, 05:25:45 PM
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on December 29, 2013, 05:29:00 PM
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.

What I'm referring to is not an education credit per se.
It most definitely applies to post secondary education, it doesn't even have to be accredited. The only caveat is that you have to have an existing job in that field.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 07:04:30 PM
There are all sorts of college tax credits.  But many are only for undergrad, so it may not apply here.
American opportunity is for undergrad but the Lifetime learning credit is also for graduate. up to 2k credit per year.

Here the question was about the tuition and fees deduction for AGI of 4k available for both undergrad and grad. Not the above mentioned credits.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 29, 2013, 07:17:29 PM
Q' for the accountants here,
I wonder if her college expenses are fully deductible for AGI as a business expense because she was working in education.
(up to the $ amount of her 1099 as a tutor).

If so, she would avoid any payment because she never owed the IRS anything...
At this point the person would have to prove to the irs that the expense of going to school was directly related to the income she earned on that 1099. was it? If yes then there MAY be what to talk about but i assume if the irs already flagged this return then it may be difficult and costly (meaning u may have to hire someone who knows what they're talking about) to prove that to the irs.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 07:19:41 PM
What I'm referring to is not an education credit per se.
It most definitely applies to post secondary education, it doesn't even have to be accredited. The only caveat is that you have to have an existing job in that field.
To answer this question, it has to meet the following requirements to qualify as a business expense:
Quote
The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.

The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

Is needed to meet the minimum educational requirements of your present trade or business, or

Is part of a program of study that will qualify you for a new trade or business.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 07:21:23 PM
An interesting related recent article:
http://www.reuters.com/article/2013/12/26/us-usa-tax-mba-idUSBRE9BP0H120131226
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on December 29, 2013, 07:23:43 PM
At this point the person would have to prove to the irs that the expense of going to school was directly related to the income she earned on that 1099. was it? If yes then there MAY be what to talk about but i assume if the irs already flagged this return then it may be difficult and costly (meaning u may have to hire someone who knows what they're talking about) to prove that to the irs.

Agreed, but will it be so hard to prove that getting a degree in education is "maintaining or improving existing skills" vis-à-vis tutoring?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 29, 2013, 07:25:21 PM
Agreed, but will it be so hard to prove that getting a degree in education is "maintaining or improving existing skills" vis-à-vis tutoring?
PUTPAC  :)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 29, 2013, 07:26:57 PM
Agreed, but will it be so hard to prove that getting a degree in education is "maintaining or improving existing skills" vis-à-vis tutoring?
At this point it is difficult! if it is done before being flagged then it stands a better chance. In my personal opinion it probably wont be worth the time, aggravation and money (if you hire someone) and just pay the dif.
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 30, 2013, 12:26:06 AM
So back to my question,  do i need to go to an accountant now?  Or i can take care of it myself?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 30, 2013, 07:08:47 AM
So back to my question,  do i need to go to an accountant now?  Or i can take care of it myself?
You applied for the lifetime learning tax credit. The credit is for %20 of the first 10k spent on education in 2012. A credit reduces tax due.
If this is what you are going for and all they need is a corrected 1098t, why not just send it in? Its probably not worth fighting about the interest and fees that you owe.

The other option that you may have had was to take the Tuition and fees deduction. This would have reduced your taxable income by up to 4k. (You cannot take the deduction and the credit)
If this would have been more beneficial  to you, possibly because of an increase in the EIC combined with lower income, you should ask someone whether its still possible to claim this for last year...

#myadvise is worth what you paid for it;)

Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on December 30, 2013, 07:53:38 AM
So back to my question,  do i need to go to an accountant now?  Or i can take care of it myself?
It depends how good you are at it. Is it worth for you to save the few hundred dollars? Can you do yourself the expanses against the 1099? Can you figure out yourself which education credit/deduction is best for you?
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 30, 2013, 08:41:16 AM
You applied for the lifetime learning tax credit. The credit is for %20 of the first 10k spent on education in 2012. A credit reduces tax due.
If this is what you are going for and all they need is a corrected 1098t, why not just send it in? Its probably not worth fighting about the interest and fees that you owe.

The other option that you may have had was to take the Tuition and fees deduction. This would have reduced your taxable income by up to 4k. (You cannot take the deduction and the credit)
If this would have been more beneficial  to you, possibly because of an increase in the EIC combined with lower income, you should ask someone whether its still possible to claim this for last year...

#myadvise is worth what you paid for it;)

I could redo my tax return,  I think at the time $1500 credit was the better outcome,  there's only an additional $2500 of income from the new 1099, which added about $260 in tax.  Eic went down from $500 to less than $200.  I could pm you my income,  to know the better outcome.  Also i could Also send in scheduled C for 1099, I never really did this before.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 30, 2013, 09:26:06 AM
I could redo my tax return,  I think at the time $1500 credit was the better outcome,  there's only an additional $2500 of income from the new 1099, which added about $260 in tax.  Eic went down from $500 to less than $200.  I could pm you my income,  to know the better outcome.  Also i could Also send in scheduled C for 1099, I never really did this before.
Iv given you all iv got. (Just happened to be studying the tax credit section of the REGS yesterday! :))Your probably better of with the credit, (that you already requested on your return). Just send in the amended tuition form. I dont know about submitting an amended return now for sched C deductions. For that ask someone els...Good luck
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 30, 2013, 09:36:02 AM
I could redo my tax return,  I think at the time $1500 credit was the better outcome,  there's only an additional $2500 of income from the new 1099, which added about $260 in tax.  Eic went down from $500 to less than $200.  I could pm you my income,  to know the better outcome.  Also i could Also send in scheduled C for 1099, I never really did this before.
you originally said you owe 3000 $ from this. Here u r saying a lot less then that. If all you are missing is 2500 $ of a 1099 then the numbers u r saying here makes more sense. In my opinion pay what u originally would of paid and negotiate with them the intrest and penalties.  Unless those themself are $2500 which in my expiernce dosent sound right.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on December 30, 2013, 11:27:33 AM
If you still have the TurboTax from that year, plug in the corrected numbers and see if you're better off with a credit or a deduction.
I don't think you need an accountant.  You're not lying or finagaling. 
TT will give you the better way to file.   Then send in the new 1040 to the IRS. 
You should definitely include a letter of explanation with a request to wave the fines.  Hey, you  never know!
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 30, 2013, 11:31:01 AM
If you still have the TurboTax from that year, plug in the corrected numbers and see if you're better off with a credit or a deduction.
I don't think you need an accountant.  You're not lying or finagaling. 
TT will give you the better way to file.   Then send in the new 1040 to the IRS. 
You should definitely include a letter of explanation with a request to wave the fines.  Hey, you  never know!
+1
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on December 30, 2013, 04:11:42 PM
If you still have the TurboTax from that year, plug in the corrected numbers and see if you're better off with a credit or a deduction.
I don't think you need an accountant.  You're not lying or finagaling. 
TT will give you the better way to file.   Then send in the new 1040 to the IRS. 
You should definitely include a letter of explanation with a request to wave the fines.  Hey, you  never know!
Turbo tax was online,  they let you plug in numbers for a few years ago?  I couldn't find old edition online, only turbo tax 2013
Title: Re: any accountants out there that i can ask a question?
Post by: henche on December 30, 2013, 04:18:04 PM
To your real question.
Send in the corrected education form.

Had you correctly filed the additional income on the missing 1099, most of what they are charging you would have been paid then.  So your loss is the disappointment/ negative surprise of the higher tax bill. and the fines and interest.  Try pleading that you never got the 1099, so you aren't liable for the fees and interest.   I had success once with misfiled numbers, that they didn't charge the fee only the interest.

BTW: I use TurboTax.  They misfiled the numbers I mentioned above.  BUT: they only put the number you tell them into the correct place in the forms.  Sometimes (my case) you misunderstand which numbers go where, or put it in 2 places or such.  I can't imagine TT is responsible for that.

Makes sense to me.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 30, 2013, 04:23:41 PM
Makes sense to me.
+1 keep it simple
Title: Re: any accountants out there that i can ask a question?
Post by: Vosizderneias on March 05, 2014, 09:36:01 PM
any accountant that can answer some questions and file my taxes in florida pls pm me
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 09, 2014, 08:03:01 PM
A guy has 15k w2 income and 20k loss from a partnership.

He could probably classify the partnership loss passive as he is not very active in it.

A) does a passive loss reduce earned income to 0 for claiming an EIC?
B) What's the exact requirement to classify a 1065 loss as passive?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 09, 2014, 08:07:10 PM
A guy has 15k w2 income and 20k loss from a partnership.

He could probably classify the partnership loss passive as he is not very active in it.

A) does a passive loss reduce earned income to 0 for claiming an EIC?
B) What's the exact requirement to classify a 1065 loss as passive?

Don't you get more EITC as you go up in income in that range?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 09, 2014, 08:09:43 PM
Don't you get more EITC as you go up in income in that range?
The question is whether or not his income is zero. If zero because netted against the loss he gets zero EIC.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 09, 2014, 08:20:14 PM
Passive losses can only reduce passive income.  Therefore it wouldn't reduce his income against his regular income this year.
If it is truly a passive loss, it can be carried forward to next year.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 09, 2014, 08:22:27 PM
Passive losses can only reduce passive income.  Therefore it wouldn't reduce his income against his regular income this year.
If it is truly a passive loss, it can be carried forward to next year.
just checking, this is even for EIC purposes?
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 09, 2014, 09:23:24 PM
Studying for the CPA here, but still (obviously) have some Q's as I'm in midst of filing taxes myself for the first time (using TaxAct). My university sent me a 1099-MISC with how much scholarship I got this year. When I input it into TaxAct, my tax liability shoots up, yet I've had this same scholarship for 3 years and never had to pay for it. Any ideas?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 09, 2014, 10:17:28 PM
Studying for the CPA here, but still (obviously) have some Q's as I'm in midst of filing taxes myself for the first time (using TaxAct). My university sent me a 1099-MISC with how much scholarship I got this year. When I input it into TaxAct, my tax liability shoots up, yet I've had this same scholarship for 3 years and never had to pay for it. Any ideas?

Is the scholarship for tuition, or does it cover other expenses like room and board?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 09, 2014, 10:17:55 PM
Studying for the CPA here, but still (obviously) have some Q's as I'm in midst of filing taxes myself for the first time (using TaxAct). My university sent me a 1099-MISC with how much scholarship I got this year. When I input it into TaxAct, my tax liability shoots up, yet I've had this same scholarship for 3 years and never had to pay for it. Any ideas?
Did you finish going through the program?  Maybe later it fills out some other part of the taxes that negates the 'income' from the scholarship.  Education credit or something. 
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 09, 2014, 10:28:08 PM
http://www.law.cornell.edu/uscode/text/26/117
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 09, 2014, 10:44:41 PM
Is the scholarship for tuition, or does it cover other expenses like room and board?
Tuition only.

Did you finish going through the program?  Maybe later it fills out some other part of the taxes that negates the 'income' from the scholarship.  Education credit or something. 

Says I'm not eligible for the education credit since my parent can claim me as a dependent still (as they had a child in school for 5 months).
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 09, 2014, 11:12:07 PM
Tuition only.

Says I'm not eligible for the education credit since my parent can claim me as a dependent still (as they had a child in school for 5 months).

See the code section I cited above.

Why don't you call them and ask why they gave you a 1099
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 09, 2014, 11:32:43 PM
Tuition only.

Says I'm not eligible for the education credit since my parent can claim me as a dependent still (as they had a child in school for 5 months).
You cannot get education credits if you are a Dependant.
A tuition reduction is different than a scholarship. Which one do you have?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 10, 2014, 01:30:17 AM
Studying for the CPA here, but still (obviously) have some Q's as I'm in midst of filing taxes myself for the first time (using TaxAct). My university sent me a 1099-MISC with how much scholarship I got this year. When I input it into TaxAct, my tax liability shoots up, yet I've had this same scholarship for 3 years and never had to pay for it. Any ideas?

Check yourself if your parents can claim you as a dependent and check yourself if the scholarship reported is taxable.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 10, 2014, 01:39:39 AM
Passive losses can only reduce passive income.  Therefore it wouldn't reduce his income against his regular income this year.
If it is truly a passive loss, it can be carried forward to next year.
You are talking about tax liability and the question was if and how much EITC they  are eligible. They are two different calculations.
Title: Re: any accountants out there that i can ask a question?
Post by: A European on March 10, 2014, 04:38:45 AM
Do I have to report my income, if I didn't make the money in the US and I am not american (My wife and kids are)?

(I lived over 6 month in the US as a green card holder so I am eligible for EIC)
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 08:39:35 AM
Do I have to report my income, if I didn't make the money in the US and I am not american (My wife and kids are)?

(I lived over 6 month in the US as a green card holder so I am eligible for EIC)

Green card makes you a resident alien. US has worldwide taxation.

Check out 7701(b) http://www.law.cornell.edu/uscode/text/26/7701
Title: Re: any accountants out there that i can ask a question?
Post by: A European on March 10, 2014, 08:59:40 AM
Green card makes you a resident alien. US has worldwide taxation.

Check out 7701(b) http://www.law.cornell.edu/uscode/text/26/7701
I lost my green card when I left the US a few month ago (I made the € after I left)

Could I get in trouble by not reporting?
Is there anyway IRS could find out?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 10:16:26 AM
I lost my green card when I left the US a few month ago (I made the € after I left)

Could I get in trouble by not reporting?
Is there anyway IRS could find out?

whatever the statute says.

(b) Definition of resident alien and nonresident alien
(1) In general
For purposes of this title (other than subtitle B)—
(A) Resident alien
An alien individual shall be treated as a resident of the United States with respect to any calendar year if (and only if) such individual meets the requirements of clause (i), (ii), or (iii):
(i) Lawfully admitted for permanent residence Such individual is a lawful permanent resident of the United States at any time during such calendar year.
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 11:13:07 AM
See the code section I cited above.

Why don't you call them and ask why they gave you a 1099

My mistake, it's a form 1098-T. Does that make more sense?
You cannot get education credits if you are a Dependant.
A tuition reduction is different than a scholarship. Which one do you have?

It seems like it's a scholarship based on the form. It's listed in a box called scholarships or grants.
Check yourself if your parents can claim you as a dependent and check yourself if the scholarship reported is taxable.

Parents CAN claim me as a dependent. In the past, my forms were taken care of by my parents' CPA who also filed my taxes. Could it be that he put this scholarship under their taxes even though it has my name on it? I'll probably just end up asking him what he did in the past.

Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 11:15:22 AM
My mistake, it's a form 1098-T. Does that make more sense?It seems like it's a scholarship based on the form. It's listed in a box called scholarships or grants.

Yes, that makes quite a difference. 1098-T is money you paid, not money you earned. It is given to you for purposes of claiming a credit or deduction for tuition paid, not for purposes of including in your income.
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 11:29:10 AM
Yes, that makes quite a difference. 1098-T is money you paid, not money you earned. It is given to you for purposes of claiming a credit or deduction for tuition paid, not for purposes of including in your income.
Hmm, but it doesn't list tuition paid. It's completely blank except the box is checked off that I was at least a half-time student and the scholarship is listed, not how much I ended up paying.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 11:32:50 AM
Hmm, but it doesn't list tuition paid. It's completely blank except the box is checked off that I was at least a half-time student and the scholarship is listed, not how much I ended up paying.

Did you pay any tuition?
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 11:44:54 AM
Did you pay any tuition?
Yes.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 11:54:25 AM
Yes.

Was it for spring 2013? Most schools put spring semester tuition on the previous year's 1098, under regulations which allow them to choose to account for it when billed.
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 12:02:09 PM
Was it for spring 2013? Most schools put spring semester tuition on the previous year's 1098, under regulations which allow them to choose to account for it when billed.
Aha, so in that case I didn't "pay" any tuition in 2013 but I received a scholarship in 2013? So, I WOULD have to pay taxes on it?
Title: Re: any accountants out there that i can ask a question?
Post by: myb821 on March 10, 2014, 12:04:25 PM
Aha, so in that case I didn't "pay" any tuition in 2013 but I received a scholarship in 2013? So, I WOULD have to pay taxes on it?
no but ince u didnt "pay" tuition in 2013 you cant claim the credit
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:06:13 PM
Aha, so in that case I didn't "pay" any tuition in 2013 but I received a scholarship in 2013? So, I WOULD have to pay taxes on it?

This isn't a balance; you're not thinking about this this correct way.  You got a 1098, not a 1099. That means they didn't report any income to you. You don't pay taxes on non-income.

(Also, the info they put on the 1098 doesn't determine whether you get a credit. You need to ask an accountant whether you get the credit based on the circumstances.)
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:08:02 PM
no but ince u didnt "pay" tuition in 2013 you cant claim the credit

-1

I'm not 100% sure on this one, but see regs 1.25A-5(e)
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 12:14:09 PM
This isn't a balance; you're not thinking about this this correct way.  You got a 1098, not a 1099. That means they didn't report any income to you. You don't pay taxes on non-income.

(Also, the info they put on the 1098 doesn't determine whether you get a credit. You need to ask an accountant whether you get the credit based on the circumstances.)

So does the 1098 need to be reported anywhere on my taxes?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:19:48 PM
So does the 1098 need to be reported anywhere on my taxes?

if anything it is a benefit

you really better be getting an accountant to do your taxes. you're looking at the whole system from the wrong angle
Title: Re: any accountants out there that i can ask a question?
Post by: myb821 on March 10, 2014, 12:20:41 PM
if anything it is a benefit

you really better be getting an accountant to do your taxes. you're looking at the whole system from the wrong angle
+1
-1

I'm not 100% sure on this one, but see regs 1.25A-5(e)
but then wouldnt it allow u to double count?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 10, 2014, 12:22:22 PM
He is a dependent. Credits are out.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:27:09 PM
but then wouldnt it allow u to double count?

right, so this is a weird situation set up by these regs, and it's confusing me. (I looked into it recently for my personal taxes)

It looks like the schools get to choose between a billing cycle and a payment cycle, but the students have to do everything on a payment cycle. Which is highly confusing for the students, and I'm betting missed by most accountants doing this stuff.

Yireh li that if you counted it last year accidentally, you'd want to amend last years and put it in this year. This will often be better for you anyway, since there are annual limitations on the credits/deductions.

But like I say, I don't really get this 100% because it seems to weird.
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on March 10, 2014, 12:35:09 PM
Aha, so in that case I didn't "pay" any tuition in 2013 but I received a scholarship in 2013? So, I WOULD have to pay taxes on it?

I was in your situation when I went to college and I was told by an accountant to adjust the amounts to make the scholarship and tuition "payments" on the same periods. Obviously you will need to keep records documenting everything, but as long as you're consistent with your accounting, you should be fine.
Title: Re: any accountants out there that i can ask a question?
Post by: myb821 on March 10, 2014, 12:41:11 PM
right, so this is a weird situation set up by these regs, and it's confusing me. (I looked into it recently for my personal taxes)

It looks like the schools get to choose between a billing cycle and a payment cycle, but the students have to do everything on a payment cycle. Which is highly confusing for the students, and I'm betting missed by most accountants doing this stuff.

Yireh li that if you counted it last year accidentally, you'd want to amend last years and put it in this year. This will often be better for you anyway, since there are annual limitations on the credits/deductions.

But like I say, I don't really get this 100% because it seems to weird.
Thats really strange, I knew schools could choose which they wanted. However, I assumed that a student could just follow the 1098-t. Which is what I did for me and my wife's taxes. She is currently in school and though technically we paid for the spring semester in January the school used billing cycle so the whole bill was technically in 2013. You are correct it probably would be better to do it as payment date bc then we would be able to claim it for an extra year. hmmmmmmmm
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:43:39 PM
Thats really strange, I knew schools could choose which they wanted. However, I assumed that a student could just follow the 1098-t. Which is what I did for me and my wife's taxes. She is currently in school and though technically we paid for the spring semester in January the school used billing cycle so the whole bill was technically in 2013. You are correct it probably would be better to do it as payment date bc then we would be able to claim it for an extra year. hmmmmmmmm

Right? It's weird.

Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 12:43:50 PM
He is a dependent. Credits are out.

Right, so then does it even need to be reported? I should give it to my parents to report since they can get the credit.
if anything it is a benefit

you really better be getting an accountant to do your taxes. you're looking at the whole system from the wrong angle
Yeah, I'm just trying it myself before going to my accountant.


I was in your situation when I went to college and I was told by an accountant to adjust the amounts to make the scholarship and tuition "payments" on the same periods. Obviously you will need to keep records documenting everything, but as long as you're consistent with your accounting, you should be fine.

Gotcha. Thanks for the info.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 12:45:41 PM
Your parents pay US taxes? But you aren't a citizen?
Title: Re: any accountants out there that i can ask a question?
Post by: myb821 on March 10, 2014, 12:52:04 PM
Right? It's weird.
Very. Now I need to debate if i should amend my taxes from this year so in 4 years I can get an extra year of credit. Im not worried about an audit or anything as the amount of tuition just from half a year is still enough for the entire credit. Maybe just starting next year I will only claim half the tuition and continue from there. Decisions Decisions
Title: Re: any accountants out there that i can ask a question?
Post by: MC on March 10, 2014, 02:25:44 PM
You should also figure out whether you would end up getting back more if you filed as independent and get the tuition credit than what your parents get for claiming you. Might be worth it to do that and then pay your parent back what they lost. (That's what I did when I started school)
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 02:38:25 PM
Your parents pay US taxes? But you aren't a citizen?
Was that to me? I never said I'm not a citizen...
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 10, 2014, 02:43:57 PM
Was that to me? I never said I'm not a citizen...

lol, seems I've been responding to 2 people thinking it was the same one.
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on March 10, 2014, 03:43:51 PM
lol, seems I've been responding to 2 people thinking it was the same one.
Lol
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 11, 2014, 07:34:02 PM
Need to bump this cuz I didnt get a clear answer: Turbo tax is not giving an EIC because passive losses from partnership activities are reducing w2 income to zero.

I know that generally passive losses are not netted against regular income. Can someone at least explain this paragraph from the Regs to me:
Quote
(2) Earned income.  Earned income is reduced by any net loss in earnings from self-employment.
Are passive partnership losses called "net loss from self employment"?

Also, here is worksheet 1 from pub 596 Can someone please confirm that passive losses reduce the EIC?!
Quote
Investment Income If You Are Filing Form
1040 Keep for Your Records
Use this worksheet to figure investment income for the earned income credit when you file Form 1040.
Interest and Dividends
1. Enter any amount from Form 1040, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter any amount from Form 1040, line 8b, plus any amount on Form 8814, line 1b . . . . . . . . . . . . . . . . 2.
3. Enter any amount from Form 1040, line 9a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Enter the amount from Form 1040, line 21, that is from Form 8814 if you are filing that form to report
your child's interest and dividend income on your return. (If your child received an Alaska Permanent
Fund dividend, use Worksheet 2 in this chapter to figure the amount to enter on this line.) . . . . . . . . . . . 4.
Capital Gain Net Income
5. Enter the amount from Form 1040, line 13. If the amount on that line is a loss,
enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Enter any gain from Form 4797, Sales of Business Property, line 7. If the
amount on that line is a loss, enter -0-. (But, if you completed lines 8 and 9 of
Form 4797, enter the amount from line 9 instead.) . . . . . . . . . . . . . . . . . . . . 6.
7. Substract line 6 of this worksheet from line 5 of this worksheet. (If the result is less than zero,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Royalties and Rental Income From Personal Property
8. Enter any royalty income from Schedule E, line 23b, plus any income from the
rental of personal property shown on Form 1040, line 21 . . . . . . . . . . . . . . . 8.
9. Enter any expenses from Schedule E, line 20, related to royalty income, plus
any expenses from the rental of personal property deducted on Form 1040,
line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Subtract the amount on line 9 of this worksheet from the amount on line 8. (If the result is less than
zero, enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Passive Activities
11. Enter the total of any net income from passive activities (such as income
included on Schedule E, line 26, 29a (col. (g)), 34a (col. (d)), or 40). (See
instructions below for lines 11 and 12.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total of any losses from passive activities (such as losses included
on Schedule E, line 26, 29b (col. (f)), 34b (col. (c)), or 40). (See instructions
below for lines 11 and 12.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Combine the amounts on lines 11 and 12 of this worksheet. (If the result is less than zero,
enter -0-.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. Add the amounts on lines 1, 2, 3, 4, 7, 10, and 13. Enter the total. This is your
investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Is the amount on line 14 more than $3,300?
Yes. You cannot take the credit.
No. Go to Step 3 of the Form 1040 instructions for lines 64a and 64b to find out if you can take the
credit (unless you are using this publication to find out if you can take the credit; in that case, go to Rule
7, next).
Instructions for lines 11 and 12. In figuring the amount to enter on lines 11 and 12, do not take into account any royalty income (or loss)
included on line 26 of Schedule E or any amount included in your earned income. To find out if the income on line 26 or line 40 of
Schedule E is from a passive activity, see the Schedule E instructions. If any of the rental real estate income (or loss) included on
Schedule E, line 26, is not from a passive activity, print “NPA” and the amount of that income (or loss) on the dotted line next to line 26.
Worksheet
[/glow]

Thank you!
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 11, 2014, 11:32:57 PM
I don't want to sound self serving but it's time to go to a paid preparer.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 12, 2014, 12:12:49 AM
Need to bump this cuz I didnt get a clear answer: Turbo tax is not giving an EIC because passive losses from partnership activities are reducing w2 income to zero.

I know that generally passive losses are not netted against regular income. Can someone at least explain this paragraph from the Regs to me:  Are passive partnership losses called "net loss from self employment"?

Also, here is worksheet 1 from pub 596 Can someone please confirm that passive losses reduce the EIC?! [/glow]

Thank you!
isn't google copyright?  Anyways u must of selected something u should not have or visa versa as that shou ld not have a effect on ur eic.
The answer to ur other question, u can have a negative number on self employment if ur expenses exceeded ur income.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 12:15:12 AM
I don't want to sound self serving but it's time to go to a paid preparer.

Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 12:31:42 AM
I don't want to sound self serving but it's time to go to a paid preparer.
the "paid prepare" doesn't know... The client is stuck with this prepare for various reasons and asked my advice. Besides, what's the advantage of a paid preparer?



How about answering yes or no?:)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 12:34:35 AM
isn't google copyright?  Anyways u must of selected something u should not have or visa versa as that shou ld not have a effect on ur eic.
The answer to ur other question, u can have a negative number on self employment if ur expenses exceeded ur income.
the EIC worksheet (from IRS.GOV)  has a section where you input passive losses. This would imply that passive losses do affect the EIC credit.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on March 12, 2014, 01:14:48 AM
If you wan't to roll the dice, you can have the IRS figure out the EIC amount for you.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 09:28:54 AM
the "paid prepare" doesn't know... The client is stuck with this prepare for various reasons and asked my advice. Besides, what's the advantage of a paid preparer?



How about answering yes or no?:)

Well, if you hire a guy to prepare your return, he ought to be able to figure this out. I don't imagine it's a very hard question, and is probably easily answered by tracking through the definitions in the statute and regs.

Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 09:38:29 AM
I don't imagine it's a very hard question, and is probably easily answered by tracking through the definitions in the statute and regs.
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....

Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 09:40:19 AM
Turns out its not so simple...The many paid preparer's on DDF dont have enough incentive to spend the time tracking through it....

Alternatively.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 12, 2014, 09:40:49 AM
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....
want to spend time researching the answer since they aren't being paid

FTFY :)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 09:41:51 AM
Alternatively.
Right, since its not such a unique situation, I expected that this would have came up in someones past experience. I guess not.  :-\
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 10:04:20 AM
Right, since its not such a unique situation, I expected that this would have came up in someones past experience. I guess not.  :-\

Well it is not theoretically unique, but practically, how many people have passive losses and are eligible for EITC?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 12, 2014, 05:22:09 PM
Well it is not theoretically unique, but practically, how many people have passive losses and are eligible for EITC?

A lot.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 07:30:54 PM
If berel buys shmerels company (LLC) for 100k and agrees to pay the 100k down over two years. Would the 100k liability be on now berels company balance sheet or would it be considered berels personal liability?
Title: Re: any accountants out there that i can ask a question?
Post by: JunkYardUnz on March 12, 2014, 07:34:03 PM
Personal
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 07:35:34 PM
Personal
thought so.
What if the agreement is that shmerel will get 50% of profits for two years, still personal?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 08:57:39 PM
If berel buys shmerels company (LLC) for 100k and agrees to pay the 100k down over two years. Would the 100k liability be on now berels company balance sheet or would it be considered berels personal liability?

Depends. If you do a LBO, it would be on the company. If he finances it with a personal note, it will be personal.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 09:38:06 PM
Depends. If you do a LBO, it would be on the company. If he finances it with a personal note, it will be personal.
sounds good ty
Title: Re: any accountants out there that i can ask a question?
Post by: rivkao on March 12, 2014, 09:39:06 PM
Does an LLC have to file for taxes? What about a trust?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 10:00:07 PM
Does an LLC have to file for taxes? What about a trust?
no
Yes
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on March 12, 2014, 10:03:16 PM

no
Yes

LLCs don't file a 1065?
Title: Re: any accountants out there that i can ask a question?
Post by: rivkao on March 12, 2014, 10:04:00 PM
no
Yes
Thanks. What about an LLC owned by a trust?
Title: Re: any accountants out there that i can ask a question?
Post by: MC on March 12, 2014, 10:06:01 PM
LLCs don't file a 1065?

If they choose to be taxed as a partnership they file a 1065
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 12, 2014, 10:27:28 PM
Does an LLC have to file for taxes? What about a trust?

llc's and trusts can elect to be treated either as a partnership or a corporation. The default is partnership.
Title: Re: any accountants out there that i can ask a question?
Post by: rivkao on March 12, 2014, 10:37:15 PM
llc's and trusts can elect to be treated either as a partnership or a corporation. The default is partnership.
So, can they choose not to file?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 12, 2014, 10:55:40 PM
Does an LLC have to file for taxes? What about a trust?
Yes to LLC but sometimes only an additional form on the owners 1040. Trust will depend what type of trust it is.

LLCs don't file a 1065?
If it's considered a partnership for tax purposes it will file a 1065.

Thanks. What about an LLC owned by a trust?

It depends what kind of entity the LLC & the trust is. Must likely each entity files it's own return.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 11:05:15 PM
A simple question with so many answers!

Basically all trust must file 1041 returns.

So the answer is yes.

Whether or not they are passthrough or entity taxed is a whole different question.

Please CRMIIW
Title: Re: any accountants out there that i can ask a question?
Post by: rivkao on March 12, 2014, 11:27:22 PM
A simple question with so many answers!

Basically all trust must file 1041 returns.

So the answer is yes.

Whether or not they are passthrough or entity taxed is a whole different question.

Please CRMIIW

CMIIW
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 12, 2014, 11:50:22 PM
CMIIW
thanks! :)
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 12, 2014, 11:50:58 PM
A simple question with so many answers!

Basically all trust must file 1041 returns.

So the answer is yes.

Whether or not they are passthrough or entity taxed is a whole different question.

Please CRMIIW
Wrong!
A grantor trust DOES NOT file a 1041.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 13, 2014, 12:06:51 AM
Wrong!
A grantor trust DOES NOT NECESSARILY file a 1041.
FTFY
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 13, 2014, 12:18:03 AM
So, can they choose not to file?
No, they are almost always required to file something.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 13, 2014, 01:04:48 AM
Wrong!
A grantor trust DOES NOT file a 1041.
Is that the same as an 'irrevocable trust' that was set up by a grantor, cannot be used by the grantor and will pass to the trustees when the grantor passes?

Because I've been filling a 1041.
Title: Re: any accountants out there that i can ask a question?
Post by: Super Speed on March 13, 2014, 01:30:49 AM
An LLC that did not make any money at all has to file?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 13, 2014, 02:22:19 AM
An LLC that did not make any money at all has to file?
In which state is this LLC?
Title: Re: any accountants out there that i can ask a question?
Post by: Super Speed on March 13, 2014, 10:26:17 AM

In which state is this LLC?
NJ.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on March 14, 2014, 01:19:01 AM
Anyone know if I want to put money into a roth IRA for the 2013 year, do I need to have put the money in before filing or I can file and I just have to make sure to put the money I said I would by April 15.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 14, 2014, 01:29:33 AM
Anyone know if I want to put money into a roth IRA for the 2013 year, do I need to have put the money in before filing or I can file and I just have to make sure to put the money I said I would by April 15.

You can file and just have to make sure to put the money by April 15.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on March 14, 2014, 01:41:50 AM
You can file and just have to make sure to put the money by April 15.

Thanks so much. Googled around a ton but couldn't see it spelled out clearly anywhere.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 14, 2014, 06:23:00 AM
Thanks so much. Googled around a ton but couldn't see it spelled out clearly anywhere.

If you care to share, what’s reason you decided to do a ROTH IRA and not the traditional IRA?
After all, in most cases the traditional IRA gets you a tax reduction now and the Roth gives you a possible tax reduction years down the road.

There are rare exceptions that the Roth is better than the traditional IRA. 
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 14, 2014, 06:48:34 AM
Maybe he is in a low tax bracket now?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 14, 2014, 06:57:19 AM
Maybe he is in a low tax bracket now?

People are usually in a lower tax bracket when they retire then when they work.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 14, 2014, 09:10:01 AM
People are usually in a lower tax bracket when they retire then when they work.
Not if he's on his way UP in income now, rather than near the mid-range / top of his earnings potential.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 14, 2014, 09:13:50 AM
If you're headed into biglaw, there are two times you need to max out the  Roth: when you're a summer associate (IRA) and the stub year (401k). You should borrow extra to do this.

You should also do it 1L summer if you make anything
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 14, 2014, 09:24:20 AM
If you're headed into biglaw, there are two times you need to max out the  Roth: when you're a summer associate (IRA) and the stub year (401k). You should borrow extra to do this.

You should also do it 1L summer if you make anything
good for you!
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on March 14, 2014, 10:53:12 AM
If you care to share, what’s reason you decided to do a ROTH IRA and not the traditional IRA?
After all, in most cases the traditional IRA gets you a tax reduction now and the Roth gives you a possible tax reduction years down the road.

There are rare exceptions that the Roth is better than the traditional IRA.

I am in a lower tax bracket. I can not imagine that I will get taxed at a lower rate than now when I retire.

Also I generally prefer to take the hit now and know that it won't matter if the government keeps raising the tax rates I should be safe. (assuming they don't try and mess everyone with a roth over by changing the rules)

Although if I was in a much higher bracket I would consider the regular IRA instead.


If you're headed into biglaw, there are two times you need to max out the  Roth: when you're a summer associate (IRA) and the stub year (401k). You should borrow extra to do this.

You should also do it 1L summer if you make anything

Why? Because you can't max it out after you start getting your salary due to earning to much?

You can always put into a IRA and then do a conversion to a Roth IRA which is not dependent on your salary.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 14, 2014, 11:08:13 AM
I


Why? Because you can't max it out after you start getting your salary due to earning to much?

You can always put into a IRA and then do a conversion to a Roth IRA which is not dependent on your salary.

Because as a summer associate you earn ~30k for the year. After deductions, and tuition credit, etc, your tax rate will be only a few percent. If you put it into Roth, you pay that few percent, and then it grows tax free for the rest of your life. If you put it in pre-tax, then you'll end up paying whatever higher rate you have later.

good for you!

Well, to be fair, I didn't figure this out in time to do it for the summer year; only for the stub year. (And to be also fair, getting your first paycheck and it says "zero dollars" is not so awesome, even when you know it's all going into savings.)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 06:23:19 AM
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....
Re, my passive k1 losses reducing the EIC question.

No one mentioned that the partnership losses are subject to basis and at risk limitations...:-[
 The guy had zero basis in his start up. Should be good to go!
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 21, 2014, 07:30:20 AM
Re, my passive k1 losses reducing the EIC question.

No one mentioned that the partnership losses are subject to basis and at risk limitations...:-[
 The guy had zero basis in his start up. Should be good to go!
yes I did.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 07:42:54 AM
yes I did.
link?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 21, 2014, 07:47:22 AM
Bostener did

I don't want to sound self serving but it's time to go to a paid preparer.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 08:09:57 AM
Bostener did
the insight didn't come from a paid preparer. :P
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 08:52:42 AM
Do guaranteed payments to X that cannot be paid due to a cash deficit, get classified as liabilities that increase X's basis??
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 21, 2014, 09:01:09 AM
Turns out its not so simple...The many paid preparer's on DDF dont have a clear answer....

When you don't get an answer here on DDF it doesn't mean people "don't have a clear answer"
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 21, 2014, 09:04:50 AM
Bostener did
Thank you
the insight didn't come from a paid preparer. :P
?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 09:16:00 AM
When you don't get an answer here on DDF it doesn't mean people "don't have a clear answer"
First of all, with all due respect, I am assuming you don't (or didn't) have the answer to the simple question that I posted. I am assuming this because you discussed it multiple times without providing a simple yes or no answer. I may be wrong, but I can't think of any other motive for you to withhold this information.
This does not in anyway disqualify you from being a paid preparer!

Second of all, you never mentioned anything about basis limitations or at risk limitations. Not sure what @Henche was crediting you with, but he quoted something about you referring me to a paid preparer. You can take credit for that.  8)
 

Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 21, 2014, 10:30:14 AM
First of all, with all due respect, I am assuming you don't (or didn't) have the answer to the simple question that I posted. I am assuming this because you discussed it multiple times without providing a simple yes or no answer. I may be wrong, but I can't think of any other motive for you to withhold this information.
This does not in anyway disqualify you from being a paid preparer!

Second of all, you never mentioned anything about basis limitations or at risk limitations. Not sure what @Henche was crediting you with, but he quoted something about you referring me to a paid preparer. You can take credit for that.  8)

You never mentioned that your losses were in excess of basis.  For that matter, you also didn't say whether the allocations were made in accordance with 704. Forget that, you never said whwether you are treated as a corporation because the interests are publicly traded, or if you checked the box closed, etc etc. Nobody asked any of those questions, because they aren't your paid preparer and aren't going over all your books.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2014, 10:34:31 AM
You never mentioned that your losses were in excess of basis.  For that matter, you also didn't say whether the allocations were made in accordance with 704. Forget that, you never said whwether you are treated as a corporation because the interests are publicly traded, or if you checked the box closed, etc etc. Nobody asked any of those questions, because they aren't your paid preparer and aren't going over all your books.
+1
I have officially submitted the recommendation of my peers on DDF, that the client should retain a professional paid preparer.   :)
Thanks for all of your help!


(Problem is, that most of the work that I see done by local paid prepares is subpar at best. There are obviously exceptions.)
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on March 23, 2014, 12:28:49 AM
I will probably ask an accountant, but I am curious to hear your thoughts:

I itemized medical expenses for 2013 and hope I will not have to in 2014. I just got $700 from a doctor (in 2014) for copays that were reimbursed by a secondary insurance. I am guessing I have to reduce my 2013 expenses by this amount, but was wondering whether I could offset my 2014 expenses, which would save me $ since I don't anticipate itemizing anyway.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 23, 2014, 12:32:01 AM
I will probably ask an accountant, but I am curious to hear your thoughts:

I itemized medical expenses for 2013 and hope I will not have to in 2014. I just got $700 from a doctor (in 2014) for copays that were reimbursed by a secondary insurance. I am guessing I have to reduce my 2013 expenses by this amount, but was wondering whether I could offset my 2014 expenses, which would save me $ since I don't anticipate itemizing anyway.
IIRC the $700 is taxable income in 2014. Tax benefit rule applies if you itemized it in 2013.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on March 23, 2014, 12:33:37 AM
I will probably ask an accountant, but I am curious to hear your thoughts:

I itemized medical expenses for 2013 and hope I will not have to in 2014. I just got $700 from a doctor (in 2014) for copays that were reimbursed by a secondary insurance. I am guessing I have to reduce my 2013 expenses by this amount, but was wondering whether I could offset my 2014 expenses, which would save me $ since I don't anticipate itemizing anyway.

tax benefit rule
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on March 23, 2014, 12:49:57 AM
IIRC the $700 is taxable income in 2014. Tax benefit rule applies if you itemized it in 2013.

Sounds right. Minor impact bc I was only able to itemize state
Title: Re: any accountants out there that i can ask a question?
Post by: Super Speed on March 23, 2014, 01:44:30 AM

An LLC in NJ that did not make any money at all has to file?
BUMP
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 23, 2014, 08:56:39 AM
BUMP
a Nj llc needs to file an annual report $50 to remain in compliance.
Do it here: https://www1.state.nj.us/TYTR_COARS/JSP/page1.jsp

Might be a 125$ fee per member also.

Is your llc a partnership?
Title: Re: any accountants out there that i can ask a question?
Post by: Super Speed on March 23, 2014, 02:58:06 PM

Is your llc a partnership?
Yes
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 23, 2014, 03:42:20 PM
Yes
If you dont have income or loss I dont think you have to file. Otherwise you have to file and there is a filing fee of like 150 per partner.

#My advice is worth what you paid for it.
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on March 30, 2014, 09:30:38 AM
What morons. I left an APT in NYC in 2011, and was JUTS forwarded a 2013 1099-INT for the interest on my security deposit. They apparently sent both the check (which I never received) and the 1099 to my previous address 1.5 years after I left.
Title: Re: any accountants out there that i can ask a question?
Post by: ashers on April 02, 2014, 03:21:22 PM
Any accountants here that want to do my taxes this year?
Obviously for a fair pay....
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 02, 2014, 03:33:33 PM
Any accountants here that want to do my taxes this year?
Obviously for a fair pay....

Good luck with that! At this point you're probably better off doing an extension which you can do for free on turbo tax (provided that you approximate and pay any tax liability).
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 02, 2014, 08:44:30 PM
Any accountants here that want to do my taxes this year?
Obviously for a fair pay....

I would do a 1040EZ for 500 bucks. (on turbotax)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 02, 2014, 08:55:48 PM
I would do a 1040EZ for 500 bucks. (on turbotax)
You usually bill @500 an hour?
Title: Re: any accountants out there that i can ask a question?
Post by: Ergel on April 02, 2014, 08:59:15 PM
You usually bill @500 an hour?
His firm bills him at more than that
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 02, 2014, 11:01:52 PM
You usually bill @500 an hour?

I don't think I'm allowed to moonlight, so I need to build in a risk premium.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 02, 2014, 11:03:21 PM
When a store sells a lottery ticket they don't book a $2 sale and $1.xx cost of goods sold, rather they just book the ~6% commission as revenue. The question is when CVS sells VR do they book the $503.95 sale or just the commission they get. Nafka Mina, everyone is assuming that CVS's revenue will fall this quarter and therefore they should short NYSE:CVS, might no be so.

(The reasoning behind lottery accounting is that the $2 isn't their income, it has to be passed on to the state, so the sale is credited to a liability account. Same with VR, the $500 has to be passed on to Incomm).

Your thoughts בבקשה.
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on April 02, 2014, 11:07:39 PM
When a store sells a lottery ticket they don't book a $2 sale and $1.xx cost of goods sold, rather they just book the ~6% commission as revenue. The question is when CVS sells VR do they book the $503.95 sale or just the commission they get. Nafka Mina, everyone is assuming that CVS's revenue will fall this quarter and therefore they should short NYSE:CVS, might no be so.

(The reasoning behind lottery accounting is that the $2 isn't their income, it has to be passed on to the state, so the sale is credited to a liability account. Same with VR, the $500 has to be passed on to Incomm).

Your thoughts בבקשה.

I would not trade CVS solely based on them going cash only for VR
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2014, 12:03:27 AM
They are essentially holding vr on consignment. I cant believe retailers can book GC as inventory.

The test is who holds risk of the goods. Until activated its poshut that CVS isn't risking $500.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 03, 2014, 12:08:00 AM
Any accountants here that want to do my taxes this year?
Obviously for a fair pay....
I may be able to help you. How complicated?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 03, 2014, 06:18:25 AM
When a store sells a lottery ticket they don't book a $2 sale and $1.xx cost of goods sold, rather they just book the ~6% commission as revenue. The question is when CVS sells VR do they book the $503.95 sale or just the commission they get. Nafka Mina, everyone is assuming that CVS's revenue will fall this quarter and therefore they should short NYSE:CVS, might no be so.

(The reasoning behind lottery accounting is that the $2 isn't their income, it has to be passed on to the state, so the sale is credited to a liability account. Same with VR, the $500 has to be passed on to Incomm).

Your thoughts בבקשה.


There's a special GAAP ruling for CVS.

Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 03, 2014, 08:24:13 AM

When a store sells a lottery ticket they don't book a $2 sale and $1.xx cost of goods sold, rather they just book the ~6% commission as revenue. The question is when CVS sells VR do they book the $503.95 sale or just the commission they get. Nafka Mina, everyone is assuming that CVS's revenue will fall this quarter and therefore they should short NYSE:CVS, might no be so.

(The reasoning behind lottery accounting is that the $2 isn't their income, it has to be passed on to the state, so the sale is credited to a liability account. Same with VR, the $500 has to be passed on to Incomm).

Your thoughts בבקשה.


I would think that their revenue would improve. They were losing money on VRs.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 03, 2014, 09:52:10 AM

I would think that their revenue would improve. They were losing money on VRs.

Revenue or net profit?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 03, 2014, 09:54:52 AM

Revenue or net profit?

The latter.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 03, 2014, 10:04:13 AM
The latter.

Even it profit rises somewhat, a fall in year over year revenue can spook investors.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2014, 10:57:07 AM
VR brought a lot of traffic into the stores, inevitably guys purchased other items together with the VR's. Sodas etc.

The net should now plumet. Who needs CVS anyway!  >:(
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on April 03, 2014, 04:45:46 PM
Q's for the pros - where would I put down cash I received off the books that I would like to report? (Independent Contractor - is that what it's called?)

Additionally, I received a 1099-MISC for a different job I did where I was paid in a cash-equivalent (was given X amount of store merchandise). Where does that get reported? Is that basically the same thing as the first scenario, just the employer gave me a form this time?
Title: Re: any accountants out there that i can ask a question?
Post by: george on April 03, 2014, 05:19:12 PM

I would think that their revenue would improve. They were losing money on VRs.
Source?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 03, 2014, 07:11:00 PM

Source?

Do the math.
Title: Re: any accountants out there that i can ask a question?
Post by: george on April 03, 2014, 07:31:12 PM
Do the math.
I need numbers to work with before I can do the math. What percent of the  activation fee does CVS keep? How much does it cost them for cc processing? I would assume that they are making a profit. Why else would they have ever allowed payment by cc?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 03, 2014, 07:39:04 PM
Q's for the pros - where would I put down cash I received off the books that I would like to report? (Independent Contractor - is that what it's called?)

Additionally, I received a 1099-MISC for a different job I did where I was paid in a cash-equivalent (was given X amount of store merchandise). Where does that get reported? Is that basically the same thing as the first scenario, just the employer gave me a form this time?
I don't know your entire picture but usually I would put it in sch. C and sometimes you could put it on line 21 on the 1040.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 03, 2014, 07:42:07 PM

I need numbers to work with before I can do the math. What percent of the  activation fee does CVS keep? How much does it cost them for cc processing? I would assume that they are making a profit. Why else would they have ever allowed payment by cc?

Assume amounts most beneficial to CVS. Then apply it to a $500 VR.
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on April 03, 2014, 07:52:47 PM
I don't know your entire picture but usually I would put it in sch. C and sometimes you could put it on line 21 on the 1040.
Thanks. From reading up online about it, I also found that line 21 makes sense for the cash and sch. C for the 1099-misc.
Title: Re: any accountants out there that i can ask a question?
Post by: dudi on April 03, 2014, 11:41:08 PM
My wife has been working for the whole 2013 year in the u.s. I got married to her at the end of 2013 and I just received my green card a week ago BH
How does it work with the tax return? 1. Is it true we can wait till I get my SSN# to do if even though its past April 15th? 2. How does it work with the tax return do get a full tax return for 2 ppl even though we just got married?
Title: Re: any accountants out there that i can ask a question?
Post by: george on April 04, 2014, 12:26:53 AM
Assume amounts most beneficial to CVS. Then apply it to a $500 VR.
I'm not getting your drift. What makes you think they lose money on VR?
My assumption is that CVS takes a share of the $3.95 fee and that amount is greater than what it costs them to process the CC transaction. If this is correct, then they should make money on every VR sale, regardless of the amount loaded.
Title: Re: any accountants out there that i can ask a question?
Post by: Saver2000 on April 04, 2014, 12:31:04 AM
I'm not getting your drift. What makes you think they lose money on VR?
My assumption is that CVS takes a share of the $3.95 fee and that amount is greater than what it costs them to process the CC transaction. If this is correct, then they should make money on every VR sale, regardless of the amount loaded.
Im not following the conversation,  but how can their processing fee possibly be less than $3.95?

That would be less than 1%.
Title: Re: any accountants out there that i can ask a question?
Post by: george on April 04, 2014, 12:44:04 AM
Im not following the conversation,  but how can their processing fee possibly be less than $3.95?

That would be less than 1%.
You probably know more about this than I do, but I can imagine a world where CVS pays less than 1%. It baffles me to think that they have been accepting CC for so long and they pay more to process it than they earn from the fee. How stupid are (were) they?

And what about GC's with a $4.95 fee? Thousands of stores accept CC. They're all taking a loss? Can't be.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 04, 2014, 04:10:10 AM
Thanks. From reading up online about it, I also found that line 21 makes sense for the cash and sch. C for the 1099-misc.

No.
Your particular situation is what dictates if it goes on Schedule, C, C-EZ, E or line 21 on 1040. It doesn’t matter if it’s cash or not. 
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 04, 2014, 04:14:23 AM
My wife has been working for the whole 2013 year in the u.s. I got married to her at the end of 2013 and I just received my green card a week ago BH
How does it work with the tax return? 1. Is it true we can wait till I get my SSN# to do if even though its past April 15th? 2. How does it work with the tax return do get a full tax return for 2 ppl even though we just got married?


If you got married before 12/31 then you can file a joint tax return. File an extension and if you need to pay make sure you pay before April 15.
Title: Re: any accountants out there that i can ask a question?
Post by: dudi on April 04, 2014, 08:15:45 AM

If you got married before 12/31 then you can file a joint tax return. File an extension and if you need to pay make sure you pay before April 15.
tnx for answering me.
The accountant we r using keeps insisting that we don't have to file an extension since its personal and we don't have to pay is that not true?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 04, 2014, 08:31:13 AM
tnx for answering me.
The accountant we r using keeps insisting that we don't have to file an extension since its personal and we don't have to pay is that not true?
if your income is more than 20k you have to file a return. Not sure if there is a penalty for not filing an extension if zero tax was due though...
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 04, 2014, 08:44:53 AM
if your income is more than 20k you have to file a return. Not sure if there is a penalty for not filing an extension if zero tax was due though...
source? And I know what ur cheshbon is. Its incorrect.
Title: Re: any accountants out there that i can ask a question?
Post by: dudi on April 04, 2014, 08:49:25 AM
source? And I know what ur cheshbon is. Its incorrect.
so I do need to file it before the 15th?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 04, 2014, 09:00:27 AM

if your income is more than 20k you have to file a return. Not sure if there is a penalty for not filing an extension if zero tax was due though...

IIRC the penalty calculation is dependent upon the tax due.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 04, 2014, 10:15:44 AM
IIRC the penalty calculation is dependent upon the tax due.
+1
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 04, 2014, 10:15:58 AM
source? And I know what ur cheshbon is. Its incorrect.
-1
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 04, 2014, 10:31:51 AM
-1
? Hell also want to file a return bec they will forsure have a refund.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 04, 2014, 10:35:25 AM
? Hell also want to file a return bec they will forsure have a refund.
The discussion was about filing an extension.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 04, 2014, 06:15:42 PM
If you have not tax due ie you're getting a refund, you don't actually need to file for an extension. (Extension to File Your Taxes)
But make sure you're due a refund, or you'll get socked with fines and interest.
Title: Re: any accountants out there that i can ask a question?
Post by: dudi on April 04, 2014, 06:26:03 PM
If you have not tax due ie you're getting a refund, you don't actually need to file for an extension. (Extension to File Your Taxes)
But make sure you're due a refund, or you'll get socked with fines and interest.
how would I make sure?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 05, 2014, 08:48:36 PM
how would I make sure?
Unfortunately, the only way to be sure you've paid all taxes due, is to do a rough run of your tax return.
Or you can do a very rough run of the numbers and file an extension and pay in enough to cover any imaginary shortfall.  Then you'll get it as a refund when you actually file. 
The extension is only an extension to file.  You have to pay in all owed taxes anyway. 

When I was a young couple, the withholding on my check always netted me a refund, so I got lazy about filing on time.
Title: Re: any accountants out there that i can ask a question?
Post by: dudi on April 05, 2014, 09:11:56 PM
Unfortunately, the only way to be sure you've paid all taxes due, is to do a rough run of your tax return.
Or you can do a very rough run of the numbers and file an extension and pay in enough to cover any imaginary shortfall.  Then you'll get it as a refund when you actually file. 
The extension is only an extension to file.  You have to pay in all owed taxes anyway. 

When I was a young couple, the withholding on my check always netted me a refund, so I got lazy about filing on time.
I didn't get it. But I will ask in a different way.
If the taxes go out straight from work does that mean that I don't owe anything or does it go by the bank income?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 05, 2014, 09:32:36 PM
I didn't get it. But I will ask in a different way.
If the taxes go out straight from work does that mean that I don't owe anything or does it go by the bank income?

When your work takes out taxes that is a rough estimation of what you will owe. Depending on whether they took off too much or too little for your actual tax situation you will either owe money or are due a refund.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 06, 2014, 12:52:47 AM
When your work takes out taxes that is a rough estimation of what you will owe. Depending on whether they took off too much or too little for your actual tax situation you will either owe money or are due a refund.
+1
And if your estimate is too close to call, you can send in more money before April 15, to be sure to go over.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 06, 2014, 09:04:23 PM
Doing my tax returns. Got married mid year, and one or more of us switched states.  Finally understand why I bill so much.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 09:38:31 PM
Doing my tax returns. Got married mid year, and one or more of us switched states.  Finally understand why I bill so much.
Married as of 12/31 counts. Multi state is a pain but not that bad for individuals.

 You bill a lot cuz you are a lawyer. CPA's who are arguably just as, if not more qualified to prepare returns don't bill nearly as much as lawyers, they simply don't have the chutzpa!  :P
Title: Re: any accountants out there that i can ask a question?
Post by: MC on April 06, 2014, 09:57:38 PM
Got paid as an independent contractor with a 1099 but the firm said they'll reimburse me for whatever additional tax I paid over what I would have had to pay as an employee receiving a W2. What exactly is the difference rate-wise? (Ie how can I figure out how much more I paid in taxes?)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 10:00:19 PM
Got paid as an independent contractor with a 1099 but the firm said they'll reimburse me for whatever additional tax I paid over what I would have had to pay as an employee receiving a W2. What exactly is the difference rate-wise? (Ie how can I figure out how much more I paid in taxes?)
To start, you pay FICA of ~7.5% that your employer should pay.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 06, 2014, 10:06:16 PM
Ok, any of you tax geniuses know what NY form you file if your spouse lived in NY part of the year and has NY source income from then, but moved out of NY in middle of year?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 10:10:43 PM
I think you first have to figure where her main state of residency is. Then you file for the other states and deduct on the main one. ?
http://www.tax.ny.gov/pit/file/pit_definitions.htm
Title: Re: any accountants out there that i can ask a question?
Post by: MC on April 06, 2014, 10:14:42 PM

To start, you pay FICA of ~7.5% that your employer should pay.
Thanks! Just making sure I understand, say in theory I made $100, when I filed I paid $7.50 that my employer technically should have paid? Are there any other taxes that should be paid by the employer and not the employee?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 10:16:14 PM
Thanks! Just making sure I understand, say in theory I made $100, when I filed I paid $7.50 that my employer technically should have paid? Are there any other taxes that should be paid by the employer and not the employee?
Fica is usually the main issue. If you wanted to get the EIC, being a 1099 will do you serious damage.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 06, 2014, 10:18:27 PM
I think you first have to figure where her main state of residency is. Then you file for the other states and deduct on the main one. ?
http://www.tax.ny.gov/pit/file/pit_definitions.htm

Let's talk through that.

domicile is MA; maintained home in NY for less than 11 months. So nonresident.

But is that a part  year resident?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 06, 2014, 10:20:04 PM
Thanks! Just making sure I understand, say in theory I made $100, when I filed I paid $7.50 that my employer technically should have paid? Are there any other taxes that should be paid by the employer and not the employee?
its 7.65 not 7.5
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 06, 2014, 10:20:46 PM
Let's talk through that.

domicile is MA; maintained home in NY for less than 11 months. So nonresident.

But is that a part  year resident?
correct. U file part year for each. Assuming u r using a software it will ask u the exact date u switched residency. It should then calculate the sourced income automaticly.
Title: Re: any accountants out there that i can ask a question?
Post by: yankelsheester on April 06, 2014, 10:21:02 PM
If I opened a corporation in 2013
But so far didn't do any transactions with it.

Do I need to file anything?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 10:23:20 PM
Let's talk through that.

domicile is MA; maintained home in NY for less than 11 months. So nonresident.

But is that a part  year resident?
Maybe check here: http://www.tax.ny.gov/pdf/2013/inc/it203i_2013.pdf

Also there:
Quote
Joint filing exception for some married taxpayers
If you are married and filing a joint federal income tax return
but one spouse is a New York State resident and the other
is a nonresident or part-year resident, you are required to
file separate New York State returns. The resident must use
Form IT-201, Resident Income Tax Return. The nonresident or
part-year resident, if required to file a New York State return,
must use Form IT-203. However, if you both choose to file a
joint New York State return, use Form IT-201 and both spouses’
income will be taxed as full-year residents of New York State.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 06, 2014, 10:27:05 PM
Right, but in my situation, I have one nonresident and on part year resident.

Problem is turbo tax is entirely unable to deal with the notion of one spouse being a resident and one spouse not.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on April 06, 2014, 10:28:15 PM
Doing my tax returns. Got married mid year, and one or more of us switched states.  Finally understand why I bill so much.

Obviously you bill so much b/c if you billed less you wouldn't have time to file before OCT
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2014, 10:35:57 PM
Right, but in my situation, I have one nonresident and on part year resident.

Problem is turbo tax is entirely unable to deal with the notion of one spouse being a resident and one spouse not.
https://ttlc.intuit.com/questions/1901214-how-do-i-prepare-a-joint-federal-return-and-separate-state-returns
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 07, 2014, 01:21:19 AM
Got paid as an independent contractor with a 1099 but the firm said they'll reimburse me for whatever additional tax I paid over what I would have had to pay as an employee receiving a W2. What exactly is the difference rate-wise? (Ie how can I figure out how much more I paid in taxes?)
If you're using TurboTax or equivalent,  plug it in as a 1099.  Then plug it in as a W-2.  Then you can see the difference.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 07, 2014, 02:53:15 AM
Right, but in my situation, I have one nonresident and on part year resident.

Problem is turbo tax is entirely unable to deal with the notion of one spouse being a resident and one spouse not.

You are charging as a lawyer and are using Turbo Tax ;)
Get a professional software or have someone who has professional tax preparer software to do it.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 07, 2014, 02:58:33 AM
If I opened a corporation in 2013
But so far didn't do any transactions with it.

Do I need to file anything?

Yes
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 07, 2014, 12:04:15 PM
So apparently the credited response is to file married separately in both states.

Which seems unfair that I don't get the benefit of my married status, if only at least on the money I earned after married (all of it).

Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2014, 12:26:28 PM
So apparently the credited response is to file married separately in both states.

Which seems unfair that I don't get the benefit of my married status, if only at least on the money I earned after married (all of it).
you prefer NY tax your earnings??
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 07, 2014, 01:08:22 PM
you prefer NY tax your earnings??

They shouldn't be able to do that, since it isn't NY source and I'm not a resident.

But in any event, the states both have setoffs for foreign state tax, and I think the rates are similar.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on April 07, 2014, 01:27:30 PM
They shouldn't be able to do that, since it isn't NY source and I'm not a resident.

But in any event, the states both have setoffs for foreign state tax, and I think the rates are similar.

yeah, I was thinking of that too, you may end up in the same place... though what about 2014... if you owe for 2013, what effect will the payments have on 2014? Will that matter?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2014, 01:32:32 PM
http://www.vosizneias.com/160941/2014/04/07/new-york-rockland-county-executive-takes-to-facebook-says-kolel-money-is-off-the-books-income-and-a-scam
Whats with BMG Kollel checks? Many local CPA's say that they are not taxable...
Title: Re: any accountants out there that i can ask a question?
Post by: metziah on April 07, 2014, 03:07:32 PM

http://www.vosizneias.com/160941/2014/04/07/new-york-rockland-county-executive-takes-to-facebook-says-kolel-money-is-off-the-books-income-and-a-scam
Whats with BMG Kollel checks? Many local CPA's say that they are not taxable...
From ME, -1
It is taxable but it isn't eligible for EIC...
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2014, 03:11:36 PM
From ME, -1
It is taxable but it isn't eligible for EIC...
I happen to agree but what experience do you mean?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 07, 2014, 07:53:26 PM
Generally the rule is if the kolel gets goverment funding which bmg does then the kolel checks are taxable. They do not count as far as a gain for the eic but rather a loss. Meaning it can only do harm but that's life.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 07, 2014, 08:35:53 PM

Generally the rule is if the kolel gets goverment funding which bmg does then the kolel checks are taxable. They do not count as far as a gain for the eic but rather a loss. Meaning it can only do harm but that's life.

And if the kolel does not get government funding then it's not taxable?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2014, 08:53:30 PM
And if the kolel does not get government funding then it's not taxable?
+1 ?
Title: Re: any accountants out there that i can ask a question?
Post by: aj26 on April 07, 2014, 09:44:46 PM
Generally the rule is if the kolel gets goverment funding which bmg does then the kolel checks are taxable. They do not count as far as a gain for the eic but rather a loss. Meaning it can only do harm but that's life.
source?
Why does government funding make a difference?
It's better to not be income for eic because if it was, you'd have to pay fica. And most family's in kollel are making 14k (or at least claim they do) to maximize the eic anyway
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 07, 2014, 10:03:06 PM
Generally the rule is if the kolel gets goverment funding which bmg does then the kolel checks are taxable. They do not count as far as a gain for the eic but rather a loss. Meaning it can only do harm but that's life.
BMG gets Govt. funding for it's graduate program?
Title: Re: any accountants out there that i can ask a question?
Post by: David R on April 07, 2014, 11:45:55 PM
My employer provided an incorrect W-2 form. After subtracting the various withholdings shown on the form (boxes 2, 4, 6, 14, 17 and 19) from the gross pay shown on the form (boxes 1, 3, 5, 16 and 18 show the same amount), I arrive at an amount that exceeds what I was actually paid. The employer did not respond to requests to correct it. What is the best way to handle this to make sure I do not pay taxes on income I did not receive?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 07, 2014, 11:46:59 PM
And if the kolel does not get government funding then it's not taxable?
this is the pesak of the accountants in lakewood.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 07, 2014, 11:49:03 PM
My employer provided an incorrect W-2 form. After subtracting the various withholdings shown on the form (boxes 2, 4, 6, 14, 17 and 19) from the gross pay shown on the form (boxes 1, 3, 5, 16 and 18 show the same amount), I arrive at an amount that exceeds what I was actually paid. The employer did not respond to requests to correct it. What is the best way to handle this to make sure I do not pay taxes on income I did not receive?
What do you mean by the bold? Where did you come up with the amount actually paid? From the amount deposited in your bank account? Do you have a copy of your last paystub? It should match the W-2.
Title: Re: any accountants out there that i can ask a question?
Post by: David R on April 08, 2014, 12:45:34 AM
What do you mean by the bold? Where did you come up with the amount actually paid? From the amount deposited in your bank account? Do you have a copy of your last paystub? It should match the W-2.
The employer gave me paper checks at various points throughout the year. The checks were not accompanied by pay stubs. (Yes, I know that the labor law requires it.) The sum of those checks is less than the gross minus the various withholdings shown on the W-2.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 08, 2014, 02:43:35 AM
From what you write about your employer it sounds like he is or will be very soon in big trouble.

I can't pasken for you in hilchus mesireh there are even so much helochs when you are allowed to threaten with misireh but I can tell you that if you take it to the IRS or the labor  department he won't treat you like this.

An employer is required not only to give a pay stub but to make sure that it's in way that the employee understands what is getting deducted.

You better make sure you aren't getting in trouble with him.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 08, 2014, 07:06:55 AM

this is the pesak of the accountants in lakewood.

Oh.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 08, 2014, 08:04:38 AM
The employer gave me paper checks at various points throughout the year. The checks were not accompanied by pay stubs. (Yes, I know that the labor law requires it.) The sum of those checks is less than the gross minus the various withholdings shown on the W-2.

Do you have other taxable benefits?

Your employer has the same incentive as you to understate income, since he pays his portion of FICA and FUTA.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 08, 2014, 08:20:03 AM

The employer gave me paper checks at various points throughout the year. The checks were not accompanied by pay stubs. (Yes, I know that the labor law requires it.) The sum of those checks is less than the gross minus the various withholdings shown on the W-2.

Does he use a Lakewood accountant?
Title: Re: any accountants out there that i can ask a question?
Post by: David R on April 08, 2014, 09:33:22 AM
Do you have other taxable benefits?

Your employer has the same incentive as you to understate income, since he pays his portion of FICA and FUTA.
What do you mean by "other taxable benefits"? Could you give an example?
In this case, the employer is overstating my income and probably paid more FICA and FUTA than if the W-2 would have been correct.

Does he use a Lakewood accountant?
Beats me.
Title: Re: any accountants out there that i can ask a question?
Post by: Baruch on April 08, 2014, 09:36:00 AM
this is the pesak of the accountants in lakewood.
-100. Spoke to many people who went to accountants in Lakewood. Never heard that from anyone.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 09:54:21 AM
-100. Spoke to many people who went to accountants in Lakewood. Never heard that from anyone.
so what did u hear them say?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 08, 2014, 11:25:09 AM
-100. Spoke to many people who went to accountants in Lakewood. Never heard that from anyone.

+1
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 12:46:17 PM
This has been a hot topic over the last 10 years between big accountants, lawyers and the agudah. I believe the agudah holds even small night kolilim are taxable while a majority of accountants and lawyers hold only if there is government funding. Night kollilim generally do not have government funding for example. They hold its a non taxable scholarship.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 08, 2014, 01:00:55 PM
What's the machlokes? It's all spelled out in Pub 970 very clearly.

http://www.irs.gov/publications/p970/ch01.html

Why on earth would it make a difference if the source of the funds is governmental or not?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on April 08, 2014, 01:05:08 PM

This has been a hot topic over the last 10 years between big accountants, lawyers and the agudah. I believe the agudah holds even small night kolilim are taxable while a majority of accountants and lawyers hold only if there is government funding. Night kollilim generally do not have government funding for example. They hold its a non taxable scholarship.

Maybe they should go for a revenue ruling.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 01:26:11 PM
What's the machlokes? It's all spelled out in Pub 970 very clearly.

http://www.irs.gov/publications/p970/ch01.html

Why on earth would it make a difference if the source of the funds is governmental or not?
I clearly see the dif bet someone who is entry level and has experience.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 08, 2014, 01:26:22 PM
What's the machlokes? It's all spelled out in Pub 970 very clearly.

http://www.irs.gov/publications/p970/ch01.html

Why on earth would it make a difference if the source of the funds is governmental or not?
From P970: A scholarship or fellowship is tax free only to the extent:

It does not exceed your expenses;

A kolel doesn't charge tuition making the entire Kollel check above expenses.

Also, I think you need to be working toward a degree. While BMG is working toward a degree (at least until you're granted a masters) many kollelim aren't.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 01:34:07 PM
From P970: A scholarship or fellowship is tax free only to the extent:

It does not exceed your expenses;

A kolel doesn't charge tuition making the entire Kollel check above expenses.

Also, I think you need to be working toward a degree. While BMG is working toward a degree (at least until you're granted a masters) many kollelim aren't.
If you buy seforim that can go against the kolel checks income. for example bmg offers life insurance and takes it off your checks. that can also be excluded.  you guys are quoting general rules. there r exceptions and loopholes to everything. Its assur to eat on yom kippur. There r also exceptions where one is allowed to eat. same here.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 08, 2014, 01:38:05 PM
If you buy seforim that can go against the kolel checks income. for example bmg offers life insurance and takes it off your checks. that can also be excluded.  you guys are quoting general rules. there r exceptions and loopholes to everything. Its assur to eat on yom kippur. There r also exceptions where one is allowed to eat. same here.
Yes books, supplies and tuition. Not living expenses.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 08, 2014, 01:40:35 PM
Yes I'm sure there are exceptions to everything. Just want to point out that saying that Kollel checks are tax free because of this publication is very misleading.

I doubt most Kollel guys spend anything near the amount of their kollel check on Seforim (and not because their check is so big  :)  )
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 01:58:28 PM
Yes I'm sure there are exceptions to everything. Just want to point out that saying that Kollel checks are tax free because of this publication is very misleading.

I doubt most Kollel guys spend anything near the amount of their kollel check on Seforim (and not because their check is so big  :)  )
noone ever said their tax free. Read the whole conversation.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 01:59:12 PM
Yes books, supplies and tuition. Not living expenses.
correct. I did not say living expenses are included.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 08, 2014, 02:03:59 PM
noone ever said their tax free. Read the whole conversation.
Generally the rule is if the kolel gets goverment funding which bmg does then the kolel checks are taxable. They do not count as far as a gain for the eic but rather a loss. Meaning it can only do harm but that's life.
It was implied here that for a non-gov funded kollel it's tax free
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 02:18:52 PM
It was implied here that for a non-gov funded kollel it's tax free
According to he accountants who have experience in this field (lakewood) thats how they deal with it.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 08, 2014, 02:28:21 PM
According to he accountants who have experience in this field (lakewood) thats how they deal with it.
Experience has nothing to do with this. The rules for scholarships and stipends for graduate students are from the more straight forward in the regs.
You have yet to explain one reasonable reason why scholarships not used for tuition, books or supplies are not taxable.
Maybe one of the "Major Lakewood Accountants" can enlighten us as to why a kollel check is any different?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 08, 2014, 02:34:11 PM
Experience has nothing to do with this. The rules for scholarships and stipends for graduate students are from the more straight forward in the regs.
You have yet to explain one reasonable reason why scholarships not used for tuition, books or supplies are not taxable.
Maybe one of the "Major Lakewood Accountants" can enlighten us as to why a kollel check is any different?
that would have to wait until april 16th
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on April 08, 2014, 02:37:52 PM
Experience has nothing to do with this. The rules for scholarships and stipends for graduate students are from the more straight forward in the regs.
You have yet to explain one reasonable reason why scholarships not used for tuition, books or supplies are not taxable.
Maybe one of the "Major Lakewood Accountants" can enlighten us as to why a kollel check is any different?

If people don't want to pay tax, they don't pay
Title: Re: any accountants out there that i can ask a question?
Post by: yos9694 on April 09, 2014, 08:35:21 AM
If you buy seforim that can go against the kolel checks income. for example bmg offers life insurance and takes it off your checks. that can also be excluded.

Deducting life insurance premiums would not be legal for the individual. It is an after tax deduction.
Title: Re: any accountants out there that i can ask a question?
Post by: yos9694 on April 09, 2014, 08:56:30 AM
What do you mean by "other taxable benefits"? Could you give an example?
In this case, the employer is overstating my income and probably paid more FICA and FUTA than if the W-2 would have been correct.
Beats me.

Overstating the net income amount wouldnt result in any FICA games since FICA is based on gross income. The game in your cases is not giving you credit for all your withholdings and pocketing the difference. But before you assume thats what happened, make sure there was nothing deducted from your take home checks after tax that would explain the gap.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 10, 2014, 02:26:46 AM
Deducting life insurance premiums would not be legal for the individual. It is an after tax deduction.
Source?
Title: Re: any accountants out there that i can ask a question?
Post by: michael on April 10, 2014, 11:26:47 AM
Does anyone have an opinion on deducting cost of arba minim if purchased from a shul? I know goods were provided, but most of the goods' value was of a religious nature. Should any portion be deductible as a donation?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on April 10, 2014, 11:33:02 AM
If you can document that you paid more than fair market value.... Maybe
Title: Re: any accountants out there that i can ask a question?
Post by: michael on April 10, 2014, 11:34:28 AM
If you can document that you paid more than fair market value.... Maybe

I guess my question is whether you use fair market value of today, which is fairly low (you can find these items in certain flower stores), or if you use fair market value based on time/place I bought it.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 10, 2014, 11:35:47 AM
Source?
Life insurance is not deductible for an individual.

Unless it is considered group term life insurance for employees. In that case the premiums on the first 50k of coverage are excludable from income. (Which it is not, the students pay for the premiums here.)
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on April 10, 2014, 11:36:55 AM
I guess my question is whether you use fair market value of today, which is fairly low (you can find these items in certain flower stores), or if you use fair market value based on time/place I bought it.
You can do what you want... Question is if you get audited, can you defend your position. I would say that argument is not readily defensible
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 10, 2014, 11:39:42 AM
I guess my question is whether you use fair market value of today, which is fairly low (you can find these items in certain flower stores), or if you use fair market value based on time/place I bought it.
If you payed more than the FMV at the date of purchase, the extra is definitely deductible.
The question how to asses FMV on daled minim may apply to this:
Quote
Unusual Market Conditions

The sale price of the property itself in an arm's-length transaction in an open market is often the best evidence of its value. When you rely on sales of comparable property, the sales must have been made in an open market. If those sales were made in a market that was artificially supported or stimulated so as not to be truly representative, the prices at which the sales were made will not indicate the FMV.

For example, liquidation sale prices usually do not indicate the FMV. Also, sales of stock under unusual circumstances, such as sales of small lots, forced sales, and sales in a restricted market, may not represent the FMV.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on April 10, 2014, 11:45:18 AM
If you payed more than the FMV at the date of purchase, the extra is definitely deductible.
The question how to asses FMV on daled minim may apply to this:

That is actually an interesting point. Can we argue that the jewish market is restricted and artificially supported.
Paging Henche....
Title: Re: any accountants out there that i can ask a question?
Post by: yos9694 on April 10, 2014, 11:48:18 AM
Life insurance is not deductible for an individual.

Unless it is considered group term life insurance for employees. In that case the premiums on the first 50k of coverage are excludable from income. (Which it is not, the students pay for the premiums here.)

+1

My understanding is that the BMG plan is individual life, not group life. The good news is that since the premiums are paid after tax, death benefits are exempt from income tax.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on April 10, 2014, 11:55:44 AM
That is actually an interesting point. Can we argue that the jewish market is restricted and artificially supported.
Paging Henche....

May as well add Matza to that list as well..
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 10, 2014, 12:06:08 PM
May as well add Matza to that list as well..
If purchased from a nonprofit...  ;)
Title: Re: any accountants out there that i can ask a question?
Post by: michael on April 10, 2014, 12:07:33 PM
May as well add Matza to that list as well..

I don't think so. Matza (at least shmura), does not have any market other than ours. Therefore, the inflated prices are the actual market value. Arba minim are found in other markets to some extent, though maybe not with the hashgacha and all the chumros.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on April 10, 2014, 12:24:27 PM
I don't think so. Matza (at least shmura), does not have any market other than ours. Therefore, the inflated prices are the actual market value. Arba minim are found in other markets to some extent, though maybe not with the hashgacha and all the chumros.

I buy matza after pesach to eat all year round ;)
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 10, 2014, 01:27:55 PM
If purchased from a nonprofit...  ;)

Like NPGS  :P
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 10, 2014, 06:15:57 PM
Anyone know if there is any special reporting requirements on a OID?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 11, 2014, 10:57:29 AM
That is actually an interesting point. Can we argue that the jewish market is restricted and artificially supported.
Paging Henche....

Indeed.

Doesn't sound too good to me. Check out "american bar endowment"; supreme court case from 1986 http://scholar.google.com/scholar_case?case=9123196680941041472&q=american+bar+endowment&hl=en&as_sdt=6,33

Quote
In Rev. Rul. 67-246, supra, the IRS set up a two-part test for determining when part of a "dual payment" is deductible. First, the payment is deductible only if and to the extent it exceeds the market value of the benefit received. Second, the excess payment must be "made with the intention of making a gift." 1967-2 Cum. Bull., at 105. The Tax Court has adopted this test, see Murphy v. Commissioner, 54 T. C. 249, 254 (1970); Arceneaux v. Commissioner, 36 TCM 1461, 1464 (1977); but see Oppewal v. Commissioner, 468 F. 2d 1000, 1002 (CA1 1972) (expressing "dissatisfaction with such subjective tests as the taxpayer's motives in making a purported charitable contribution" and relying solely on differential between amount of payment and value of benefit).

The Claims Court applied that test in this case, and held that respondents Broadfoot, Boynton, and Turner had not established that they could have purchased comparable insurance for less money. Therefore, the court held, they had failed to establish that the value of ABE's insurance to them was less than the premiums paid. 4 Cl. Ct., at 415-417. Respondent Sherwood demonstrated that there did exist a 118*118 group insurance program for which he was eligible and which offered lower premiums than ABE's insurance. However, Sherwood failed to establish that he was aware of that competing program during the years at issue. Sherwood therefore had failed to demonstrate that he met the second part of the above test — that he had intentionally paid more than the market value for ABE's insurance because he wished to make a gift.

...

We hold that the Claims Court applied the proper standard. The sine qua non of a charitable contribution is a transfer of money or property without adequate consideration. The taxpayer, therefore, must at a minimum demonstrate that he purposely contributed money or property in excess of the value of any benefit he received in return. The most logical test of the value of the insurance respondents received is the cost of similar policies. Three of the four individual respondents failed to demonstrate that they could have purchased similar policies for a lower cost, and we must therefore assume that the value of ABE's insurance to those taxpayers at least equals their premium payments. Had respondent Sherwood known that he could purchase comparable insurance for less money, ABE's insurance would necessarily have declined in value to him. Because Sherwood did not have that knowledge, however, we again must assume that he valued ABE's insurance equivalently to those competing policies of which he was aware. Because those policies cost as much as or more than ABE's, Sherwood has failed to demonstrate that he intentionally gave away more than he received.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 11, 2014, 11:47:19 AM
I don't think so. Matza (at least shmura), does not have any market other than ours. Therefore, the inflated prices are the actual market value. Arba minim are found in other markets to some extent, though maybe not with the hashgacha and all the chumros.

Exactly. So ours are a different product. It has to be the same product; one with the hiddurim, the hashgacha, and the chumros.

You wouldn't say our kosher meat has the FMV of treif meat.
Title: Re: any accountants out there that i can ask a question?
Post by: ya on April 13, 2014, 02:14:16 PM
Is there a difference on how I am taxed if I am paid a salary or commission or bonus?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 13, 2014, 02:25:41 PM
Is there a difference on how I am taxed if I am paid a salary or commission or bonus?

Are you an employee in all cases, or would you be an independent contractor in some?
Title: Re: any accountants out there that i can ask a question?
Post by: ya on April 13, 2014, 02:39:37 PM
Are you an employee in all cases, or would you be an independent contractor in some?
employee in all
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 13, 2014, 03:19:03 PM
Is there a difference on how I am taxed if I am paid a salary or commission or bonus?
Very broad question and beyond the scoop of this thread. The short answer is that it depends if you are a W2, 1099M, statutory employee or something else.
Title: Re: any accountants out there that i can ask a question?
Post by: ya on April 13, 2014, 04:58:51 PM
Very broad question and beyond the scoop of this thread. The short answer is that it depends if you are a W2, 1099M, statutory employee or something else.
W2
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 13, 2014, 05:38:35 PM
W2
Normal W2 shouldn't make any difference.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 13, 2014, 06:09:10 PM
Is there a difference on how I am taxed if I am paid a salary or commission or bonus?
bonuses are taxed differently than regular wages. Usually at the same rate.
They can be beneficial if you need to shift income to the next period. Otherwise a w2 is more straightforward.
Title: Re: any accountants out there that i can ask a question?
Post by: ya on April 13, 2014, 06:46:16 PM
bonuses are taxed differently than regular wages. Usually at the same rate.
They can be beneficial if you need to shift income to the next period. Otherwise a w2 is more straightforward.
and commission vs salary?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 13, 2014, 07:02:52 PM
bonuses are taxed differently than regular wages. Usually at the same rate.


Time to clarify what you meant.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 13, 2014, 07:13:55 PM
Time to clarify what you meant.
The employer can withhold taxes on bonuses based on a different formula than the normal. The percentage method or aggregate. The net tax should be the same, I think, but w2 are simpler. 
Its called supplemental wages.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 18, 2014, 05:53:18 AM
New question, for those knowledgeable about tax filing for trusts:

Filing a 1041 for a trust. 
A 'simple' trust seems to not be allowed a deduction for charitable donations.
What about a 'complex' trust?

TurboTax had my trust as a simple trust last year, yet we had a charity deduction.  This year, it didn't ask me anywhere for my charity amount.  It ended up checking the box 'complex' trust, yet still didn't give me any place to insert my charity amount. 
The final tax form has an area on schedule A that allows charity with all sorts of conditions.

Was the law changed in the last year to eliminate/minimize charity deductions for trusts?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 18, 2014, 07:27:39 AM
Simple trusts cannot take a charitable contribution.
Complex can take only if its inscribed in the terms of the trust. On 1041A.
Gets complicated if capital is allocated to charity etc.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 18, 2014, 12:31:51 PM
Simple trusts cannot take a charitable contribution.
Complex can take only if its inscribed in the terms of the trust. On 1041A.
Gets complicated if capital is allocated to charity etc.
Ok, I get that I can't take the deduction I wanted to.  >:(  Thanks.
Is this something new for this year?  TurboTax asked me about charity last year, and put in on a return for my complex trust.
I just compared the TT business questionnaire for 2012 and 2013.  I see where the charity question is missing.  I guess it is a change for this year.   :(
Title: Re: any accountants out there that i can ask a question?
Post by: Fan of Dan on April 18, 2014, 02:22:06 PM
Does it make sense that my federal refund posted to my bank account on the 15th but my state (NJ) still isn't showing? I e filed on April 3rd or 4th.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 18, 2014, 02:24:26 PM
Does it make sense that my federal refund posted to my bank account on the 15th but my state (NJ) still isn't showing? I e filed on April 3rd or 4th.
Yes
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on April 18, 2014, 02:24:47 PM
Does it make sense that my federal refund posted to my bank account on the 15th but my state (NJ) still isn't showing? I e filed on April 3rd or 4th.

Yes. Ime this year the State (NY) came about a week later..
Title: Re: any accountants out there that i can ask a question?
Post by: Fan of Dan on April 19, 2014, 09:49:01 PM
Yes. Ime this year the State (NY) came about a week later..
Yes
Thanks, that's good to know.
Title: Re: any accountants out there that i can ask a question?
Post by: Joe4007 on April 19, 2014, 09:53:26 PM
Yes. Ime this year the State (NY) came about a week later..
+1. Always been like that.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 19, 2014, 10:43:19 PM
Does it make sense that my federal refund posted to my bank account on the 15th but my state (NJ) still isn't showing? I e filed on April 3rd or 4th.
Yes, the New Jersey refund take much longer than the Federal (This year unlike prior years New York State refunds are coming before Federal)
Title: Re: any accountants out there that i can ask a question?
Post by: Joe4007 on April 19, 2014, 10:47:54 PM
(This year unlike prior years New York State refunds are coming before Federal)
Not IME.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on April 19, 2014, 11:54:24 PM
Not IME.

+1. I guess it's a ymmv
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 20, 2014, 01:58:51 AM
The IRS and the state tax people each have their own bureaucracy.  They'll each have their own  turn-around time.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 20, 2014, 08:54:46 AM
Fica is usually the main issue. If you wanted to get the EIC, being a 1099 will do you serious damage.
1099 income doesn't affect EIC it's more than it affects someone that doesn't get EIC w2 you get withheld you SS on your pay check with 1099 it's withheld when you file you tax plus another approx 7%. That will reduce the amount of your EIC but if you don't get EIC it will raise your liability. Concerning the reduction of your income for half the SS that would affect very few people only if that amount reduces you income to below the EIC threshold
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 20, 2014, 09:13:41 AM
1099 income doesn't affect EIC it's more than it affects someone that doesn't get EIC w2 you get withheld you SS on your pay check with 1099 it's withheld when you file you tax plus another approx 7%. That will reduce the amount of your EIC but if you don't get EIC it will raise your liability. Concerning the reduction of your income for half the SS that would affect very few people only if that amount reduces you income to below the EIC threshold
+.9
:)
Title: Re: any accountants out there that i can ask a question?
Post by: aj26 on April 20, 2014, 09:30:11 AM
1099 income doesn't affect EIC it's more than it affects someone that doesn't get EIC w2 you get withheld you SS on your pay check with 1099 it's withheld when you file you tax plus another approx 7%. That will reduce the amount of your EIC but if you don't get EIC it will raise your liability. Concerning the reduction of your income for half the SS that would affect very few people only if that amount reduces you income to below the EIC threshold

Not sure I really understand what you are trying to say, but you can get eic as an independent contractor filing a schedule c.
Just keep in mind that since you are going to deduct the 7.65% self employment tax to arrive at agi, when he reimburses you, you will have to include that reimbursement on your 2014 tax return
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 20, 2014, 09:35:51 AM
Basically what I'm trying to say is that 1099 will usually not affect your eci more than it would affect your taxes without eci. Yes you have to pay more SS tax with 1099 but that is has nothing to do with eci so wen if you don't receive eci you 1099 income will cost you an extra 7% over W2 income.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 20, 2014, 10:05:33 AM
Which they take of the EIC, and they don't allow the half of SE tax adjustment when calculating income for EIC.
Title: Re: any accountants out there that i can ask a question?
Post by: aj26 on April 20, 2014, 10:25:21 AM
Which they take of the EIC, and they don't allow the half of SE tax adjustment when calculating income for EIC.
uh...that really depends on your income level.
If you have 2 kids, your eic starts getting phased out at the greater of $22,900 agi or $22,900 earned income. So if your earned income is lower than your agi (ie you have some investment income) a deduction of 1/2 self employment tax that lowers your agi will help give you a higher eic.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 20, 2014, 10:33:50 AM
uh...that really depends on your income level.
If you have 2 kids, your eic starts getting phased out at the greater of $22,900 agi or $22,900 earned income. So if your earned income is lower than your agi (ie you have some investment income) a deduction of 1/2 self employment tax that lowers your agi will help give you a higher eic.

If you have 3 kids then your income would have to be around 13,400 and only then will the your 1099 affect you and it would only reduce your income by around 900$ so it won't have a really big affect on your income.
Title: Re: any accountants out there that i can ask a question?
Post by: Jkhein on April 20, 2014, 12:43:38 PM
when filing taxes can I add a non us citizen spouse without a ssn?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 20, 2014, 01:01:57 PM
when filing taxes can I add a non us citizen spouse without a ssn?
http://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Spouse-Treated-as-a-Resident
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 20, 2014, 01:04:21 PM
when filing taxes can I add a non us citizen spouse without a ssn?
If your spouse is a nonresident alien and you file a joint or separate return, your spouse must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). To get an SSN for your spouse, apply at a social security office or U.S. consulate. You must complete Form SS-5. You must also provide original or certified copies of documents to verify your spouse's age, identity, and citizenship. If your spouse is not eligible to get an SSN, he or she can file Form W-7 with the IRS to apply for an ITIN. Refer to Taxpayer Identification Numbers (TIN) for more information.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 24, 2014, 12:22:18 PM
If your spouse is a nonresident alien and you file a joint or separate return, your spouse must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). To get an SSN for your spouse, apply at a social security office or U.S. consulate. You must complete Form SS-5. You must also provide original or certified copies of documents to verify your spouse's age, identity, and citizenship. If your spouse is not eligible to get an SSN, he or she can file Form W-7 with the IRS to apply for an ITIN. Refer to Taxpayer Identification Numbers (TIN) for more information.
Just a side note: without a ssn she wont be able to get the EIC.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 24, 2014, 12:24:17 PM
If a employee worked in NY every day and got paid on a 1099 and in the state box it says NY but not wages -and is a resident of NJ- do they have to file a nonresident NYS Return?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 25, 2014, 10:54:58 AM
Does anyone have an opinion on deducting cost of arba minim if purchased from a shul? I know goods were provided, but most of the goods' value was of a religious nature. Should any portion be deductible as a donation?
I'm attaching a very well written article by Judah I. Kupfer, Esq. that should answer your question.
Title: Re: any accountants out there that i can ask a question?
Post by: Sowhat on April 25, 2014, 10:59:03 AM
My daughter is single and starting college.  I usually claim her.  Does it make sense for her to file her own return and claim herself to get a better benefit from FAFSA?
Title: Re: any accountants out there that i can ask a question?
Post by: michael on April 25, 2014, 11:20:40 AM
I'm attaching a very well written article by Judah I. Kupfer, Esq. that should answer your question.

Thanks. I really enjoy his articles.
Title: Re: any accountants out there that i can ask a question?
Post by: dsw193 on April 25, 2014, 11:25:45 AM
I'm attaching a very well written article by Judah I. Kupfer, Esq. that should answer your question.
Thanks. Do You have the following week's article?
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on April 26, 2014, 11:21:10 PM
My daughter is single and starting college.  I usually claim her.  Does it make sense for her to file her own return and claim herself to get a better benefit from FAFSA?

Her eligibility will still be based on your return unless she is 24 or married.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on May 13, 2014, 07:37:48 PM
A new company that developed software for sale, (-by subscription) how do you value it on the B/S? (GAAP)
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on May 13, 2014, 08:20:28 PM
A new company that developed software for sale, (-by subscription) how do you value it on the B/S? (GAAP)

Some of the costs (until market feasibility is established) are just expensed. Once you are allowed to start capitalizing, the amount capitalized is just what is spent. (Credit cash or AP, debit Capitalized Asset.)

Any increase in its value over its cost will be recognized as gain when it's sold.
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on May 13, 2014, 08:48:48 PM
Some of the costs (until market feasibility is established) are just expensed. Once you are allowed to start capitalizing, the amount capitalized is just what is spent. (Credit cash or AP, debit Capitalized Asset.)

Any increase in its value over its cost will be recognized as gain when it's sold.

To clarify further...
Costs are expensed up to the point that the product meets its design specifications (i.e. planning, designing, coding, and testing have been completed and a working model is created). Once you have reached that point (technologial feasibility) you can begin to capitalize costs associated with the software development (including allocation of salaries) from that point forward and amortize over current and future periods
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on May 13, 2014, 08:50:47 PM
Some of the costs (until market feasibility is established) are just expensed. Once you are allowed to start capitalizing, the amount capitalized is just what is spent. (Credit cash or AP, debit Capitalized Asset.)

Any increase in its value over its cost will be recognized as gain when it's sold.
Market feasibility has been established and there are some preliminary sales contracts in place.

At what point do they actually begin capitalizing, first sale, or when product was complete enough to be called available for sale?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on May 13, 2014, 08:51:45 PM
Market feasibility has been established and there are some preliminary sales contracts in place.

At what point do they actually begin capitalizing, first sale, or when product was complete enough to be called available for sale?
The latter
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on May 13, 2014, 09:27:04 PM
The latter
thanks
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy22 on May 14, 2014, 05:55:23 PM
What is the best way to set up a charity account? Does it need to specifically be a charity account or do I just open any checking account?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on May 14, 2014, 06:28:07 PM
How do you call pledges from investors on a balance sheet?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 14, 2014, 06:39:42 PM
What is the best way to set up a charity account? Does it need to specifically be a charity account or do I just open any checking account?
Im not sure what you want to gain, I it's for the IRS I won't make a difference you will still need to keep the same paper work as a regular account
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on May 14, 2014, 08:03:32 PM

There is such a thing as opening an entity whereby any money put in can only go for charitable purposes.  Donors can deduct the money when they put it in, even if it has not yet gone to any specific charity.
I think it's a charitable trust and has to be set up as one legally.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 14, 2014, 08:21:56 PM
There is such a thing as opening an entity whereby any money put in can only go for charitable purposes.  Donors can deduct the money when they put it in, even if it has not yet gone to any specific charity.
I think it's a charitable trust and has to be set up as one legally.

A donor advised fund is the simplest, many large brokerages have them, Vanguard, Schwab.
You donate to the fund and then you can decide to give it to the charity of your choice whenever you wan't.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2014, 08:38:23 PM
A donor advised fund is the simplest, many large brokerages have them, Vanguard, Schwab.
You donate to the fund and then you can decide to give it to the charity of your choice whenever you wan't.

You do not get all the regular benefits of a charitable donation though.  just figure out where you want to give it and give it now
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 14, 2014, 09:25:51 PM
You do not get all the regular benefits of a charitable donation though.  just figure out where you want to give it and give it now

Can't you claim a regular charitable deduction?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2014, 09:37:04 PM
Can't you claim a regular charitable deduction?

1. Nope! (has different limitations, etc)
2. There are all sorts of extra rules.

You really don't want to deal with this, unless you're really rich.  And if you are, you should be paying someone to figure this out for you.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 14, 2014, 09:53:04 PM
1. Nope! (has different limitations, etc)
2. There are all sorts of extra rules.

You really don't want to deal with this, unless you're really rich.  And if you are, you should be paying someone to figure this out for you.

Are you thinking of a private foundation?

Quote from Forbes (http://www.forbes.com/sites/ashleaebeling/2013/11/25/charity-choice-when-donor-advised-funds-trump-private-foundations/)
Quote
If you donate publicly traded appreciated stock to a private foundation, you can claim a deduction for its full market value, offsetting a maximum of only 20% of your adjusted gross income each year. But if you donate appreciated property (including private stock and real estate) to public charities, DAFs or a supporting org, it can offset 30% of your AGI. Similarly, if you give cash to a private foundation it can offset only 30% of your income, compared with 50% for cash contributions to a public charity, DAF or supporting org.

DAF's are meant for small fish also. Many have very low minimums (5K), and AFAIK you get a full deduction now, and you can donate appreciated securities etc.
(There are

The DAF is a regular public charity, so any donation should be like giving to a regular charity.

A quick look online doesn't show any additional rules or limitation.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2014, 09:58:36 PM
Are you thinking of a private foundation?

Quote from Forbes (http://www.forbes.com/sites/ashleaebeling/2013/11/25/charity-choice-when-donor-advised-funds-trump-private-foundations/)
DAF's are meant for small fish also. Many have very low minimums (5K), and AFAIK you get a full deduction now, and you can donate appreciated securities etc.
(There are

The DAF is a regular public charity, so any donation should be like giving to a regular charity.

A quick look online doesn't show any additional rules or limitation.

Ok.  And what do you gain from it?

http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Donor-Advised-Funds
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 14, 2014, 10:09:37 PM
Ok.  And what do you gain from it?

http://www.irs.gov/Charities-&-Non-Profits/Charitable-Organizations/Donor-Advised-Funds

Donate now and decide where to give later.
Also I'm not sure how many Tzedakas accept appreciated securities. For someone giving charity anyway, you might as well give stock, you save yourself at least 15%.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2014, 10:19:05 PM
Donate now and decide where to give later.
Also I'm not sure how many Tzedakas accept appreciated securities. For someone giving charity anyway, you might as well give stock, you save yourself at least 15%.

Why not just decide now?  Is it really that hard to find a tzedaka to give to?  And avoid these guys shaving off a piece of it?

Also, every tzedaka accepts appreciated assets (everybody gives appreciated assets, its the oldest trick in the book).  I recall my rosh yeshiva telling us how someone had just donated 100k in gold coins. 
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy22 on May 14, 2014, 11:35:53 PM
Didnt mean to cause a whole debate. The reason why I want a separate account is so I can divert masser from every paycheck to the other account. Then when I want to make a donation I know what I can give.

In terms of taxes does it make a diff the type of account or any checking account is good and I can just run a report at the end of the year to see how much I gave.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on May 15, 2014, 12:06:27 AM
Didnt mean to cause a whole debate. The reason why I want a separate account is so I can divert masser from every paycheck to the other account. Then when I want to make a donation I know what I can give.

In terms of taxes does it make a diff the type of account or any checking account is good and I can just run a report at the end of the year to see how much I gave.
If you only count a deduction at the time you donate it to a charity, any account will do.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy22 on May 15, 2014, 12:16:52 AM
If you can only count a deduction at the time you donate it to a charity, any account will do.

thank you
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 15, 2014, 12:26:24 AM
thank you

to be clear, you will still be saving receipts from when you actually give it, right? this is all just to make your internal accounting easier
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy22 on May 15, 2014, 01:33:47 AM
to be clear, you will still be saving receipts from when you actually give it, right? this is all just to make your internal accounting easier

yes, I keep all the receipts.

On a side note, what happens if I lose a receipt or two (which has happened). can i still report it??

Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on May 15, 2014, 10:54:46 AM
If the donation is under $250, your cancelled check, or cc statement is proof enough.  $250 and over you need a receipt. 

When I give large amounts, they're usually able to reprint a receipt for me.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 15, 2014, 09:06:47 PM
Any advice on the following situation- someones wife is a foreigner and will have a social security number later this year. If they file now -meaning just MFS and she is not on there- will they be able to amend later on and put her on with social in order to get the EIC (they have 1 child)?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on June 15, 2014, 09:15:43 PM
Any advice on the following situation- someones wife is a foreigner and will have a social security number later this year. If they file now -meaning just MFS and she is not on there- will they be able to amend later on and put her on with social in order to get the EIC (they have 1 child)?
Do they owe any tax
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 15, 2014, 09:19:28 PM
No- If he files MFS then hell only get a 1k refund if he files MFJ (which he cant do now) then he can get teh EIC which is about another $3k.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on June 15, 2014, 09:54:03 PM
Why not just wait till he gets the SS #
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 15, 2014, 10:00:43 PM
Doesn't it go by what was true during the year?  Would they give an EITC for someone who wasn't a citizen during the year just because they became a citizen before filing?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 15, 2014, 10:05:28 PM
Any advice on the following situation- someones wife is a foreigner and will have a social security number later this year. If they file now -meaning just MFS and she is not on there- will they be able to amend later on and put her on with social in order to get the EIC (they have 1 child)?
Yes, you can file now and amend later when she gets a ss.
As long as they are mfj and she elects to be taxed as a us citizen they can get EIC.


#mho
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 10:48:09 AM
Doesn't it go by what was true during the year?  Would they give an EITC for someone who wasn't a citizen during the year just because they became a citizen before filing?
If you recall in 2008 or so every Israeli who was eligible for a social security number came to America and then files the last 3 yrs of taxes in order to get the credits (money). isnt that the same idea?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 16, 2014, 12:13:02 PM
If you recall in 2008 or so every Israeli who was eligible for a social security number came to America and then files the last 3 yrs of taxes in order to get the credits (money). isnt that the same idea?

Not at all. They were already eligible for the credit, they just couldn't file bec didn't have an ss number.
Title: Re: any accountants out there that i can ask a question?
Post by: mgarfin on June 16, 2014, 12:25:22 PM
Can someone pls verify this for me

If I buy merchandise to resell but i'm still paying sales tax, do I just calculate it in to buy cost or do I need to calculate it different for taxes as income or corp tax?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 16, 2014, 12:29:03 PM
Can someone pls verify this for me

If I buy merchandise to resell but i'm still paying sales tax, do I just calculate it in to buy cost or do I need to calculate it different for taxes as income or corp tax?

Why are you paying sales tax on items for resale?

Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 12:32:46 PM
I recall where one party was US and other wasn't- were they coming for EIC or additional child tax credit?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 16, 2014, 12:41:33 PM
I recall where one party was US and other wasn't- were they coming for EIC or additional child tax credit?

Party?

Were the people filing the return US citizens already? Like by being born to US parents who hadn't come back to the US in 10 years?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 12:43:24 PM
Party- meaning one spouse. and no they were not  filing anything up until then.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 16, 2014, 12:59:03 PM
Dunno anything about it.  But it sure makes sense to distinguish between people who were already citizens and just couldn't prove it and those who weren't citizens.

Someone just pm'ed me a cool tax court case disallowing the credits dor the years before the kids filed for citizenship even though they were born to US parents
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 16, 2014, 01:12:39 PM
The spouse doesn't need to be a citizen if she elects to be taxed as one.
No?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 01:15:09 PM
The spouse doesn't need to be a citizen if she elects to be taxed as one.
No?
Correct- but the original question is if they want to get the EIC then she has to have a social security number
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 16, 2014, 01:25:30 PM
Correct- but the original question is if they want to get the EIC then she has to have a social security number
So why the whole discussion about citizenship? Wait til the SS comes through and 1040x.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 01:39:49 PM
So why the whole discussion about citizenship? Wait til the SS comes through and 1040x.
I was thinking why not wait until SS comes in and then file. why do twice and maybe raise some flags?
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on June 16, 2014, 03:18:42 PM
If you recall in 2008 or so every Israeli who was eligible for a social security number came to America and then files the last 3 yrs of taxes in order to get the credits (money). isnt that the same idea?
Was that legit? Doesnt the child have to reside in the US for a certain amount of days of the year?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 03:27:34 PM
Was that legit? Doesnt the child have to reside in the US for a certain amount of days of the year?
Thats for the EIC only I believe.
Title: Re: any accountants out there that i can ask a question?
Post by: mgarfin on June 16, 2014, 03:54:41 PM
Why are you paying sales tax on items for resale?

As I'm buying the items in a brick and mortar shop.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 16, 2014, 03:56:03 PM
As I'm buying the items in a brick and mortar shop.
You should file a form as a reseller and get it reimbursed.
Or something like that...
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on June 16, 2014, 04:00:51 PM
Thats for the EIC only I believe.
What did all the Israelis come for?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 16, 2014, 04:11:12 PM
either they lied about where they resided and just put in a U.S. address or it was for the additional child tax credit which is UP TO $1000 per child- depending on amount of income.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on June 16, 2014, 04:22:15 PM
As I'm buying the items in a brick and mortar shop.

Most brick and mortars will let you buy tax free if you fill out a form for them. I believe as stated above that you can get reimbursed. We once got reimbursed taxes paid on 3 years worth of materials. Our accountant filled out the form.
Title: Re: any accountants out there that i can ask a question?
Post by: David R on June 18, 2014, 12:31:42 AM
Most brick and mortars will let you buy tax free if you fill out a form for them.
For example, in New York it would be this form: http://www.tax.ny.gov/pdf/current_forms/st/st120_fill_in.pdf

I believe as stated above that you can get reimbursed. We once got reimbursed taxes paid on 3 years worth of materials. Our accountant filled out the form.
For example, in New York it would be this form: http://www.tax.ny.gov/pdf/current_forms/st/au11_fill_in.pdf
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on June 18, 2014, 10:24:23 AM
either they lied about where they resided and just put in a U.S. address or it was for the additional child tax credit which is UP TO $1000 per child- depending on amount of income.
The people that were coming from E'Y was not for ECI, it was for additional Tax Credit (If they had 7 kids that's $7,000 per year and file for the last 2 years also, that adds up to $21,000)
Title: Re: any accountants out there that i can ask a question?
Post by: henche on June 18, 2014, 12:15:46 PM
The people that were coming from E'Y was not for ECI, it was for additional Tax Credit (If they had 7 kids that's $7,000 per year and file for the last 2 years also, that adds up to $21,000)

Tax Credit is not a defined term.  Which tax credit? The Earned Income Tax Credit?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 12:53:11 PM
The people that were coming from E'Y was not for ECI, it was for additional Tax Credit (If they had 7 kids that's $7,000 per year and file for the last 2 years also, that adds up to $21,000)
I am not sure that - that is correct bec that credit is based on your income. so for example in order to reach 7k of refund they would have to earn roughly $50,000 USD and if they filed it under self emplyment hen they would still have to pay 0.153% on it ( not sure what the rate was back then) so i am thinking they were coming for the EIC
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on June 18, 2014, 02:19:48 PM
Tax Credit is not a defined term.  Which tax credit? The Earned Income Tax Credit?
The 'stimulus' remember?  Everyone was getting 'free' money except the 'rich.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on June 18, 2014, 03:19:45 PM
I am not sure that - that is correct bec that credit is based on your income. so for example in order to reach 7k of refund they would have to earn roughly $50,000 USD and if they filed it under self emplyment hen they would still have to pay 0.153% on it ( not sure what the rate was back then) so i am thinking they were coming for the EIC
It was for Additional Child Tax Credit (Form 8812), they were able to earn around 50K by counting Bituach Leumi, I'm not sure exactly how it worked
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 03:34:33 PM
It was for Additional Child Tax Credit (Form 8812), they were able to earn around 50K by counting Bituach Leumi, I'm not sure exactly how it worked
Not sure how you figure that Bituach Leumi pays any where near that amount.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 08:42:44 PM
Anyone know what you put in the system if the spouse does not have a ss #? Also can such a return be e-filed or only mail?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 18, 2014, 09:11:55 PM
Anyone know what you put in the system if the spouse does not have a ss #? Also can such a return be e-filed or only mail?
G I Y F

https://ttlc.intuit.com/questions/2243496-how-to-file-a-my-taxes-separate-without-needing-a-ssn-for-my-spouse
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 09:37:48 PM
G I Y F

https://ttlc.intuit.com/questions/2243496-how-to-file-a-my-taxes-separate-without-needing-a-ssn-for-my-spouse
So yo saying my only method is to mail. In this case she not filing for a ITIN but rather she going through the process of becoming a U.S citizen
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 18, 2014, 10:05:30 PM
So yo saying my only method is to mail. In this case she not filing for a ITIN but rather she going through the process of becoming a U.S citizen
I don't know, cant you efile by emailing a fixed PDF of the return?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 10:18:33 PM
I don't know, cant you efile by emailing a fixed PDF of the return?
The real question is- technically speaking is this situation eligible for e-filing?
Title: Re: any accountants out there that i can ask a question?
Post by: Jkhein on June 18, 2014, 10:50:19 PM
Anyone know what you put in the system if the spouse does not have a ss #? Also can such a return be e-filed or only mail?
why do both names have to be on the return?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 18, 2014, 10:56:54 PM
why do both names have to be on the return?
Bec he filing MFS and it asks you for her name
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 19, 2014, 10:43:05 AM
I am very confused. In this situation I am filing MFS- If i file as single then he will get the EIC. Is there any reason I am not allowed to do that?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on June 19, 2014, 10:45:14 AM
I am very confused. In this situation I am filing MFS- If i file as single then he will get the EIC. Is there any reason I am not allowed to do that?

You can't file as Single if you are married. You must file as either MFJ or MFS.
https://www.1040.com/federal-taxes/filing-basics/filing-status/

Also under single there would be no dependents. When an unmarried single wants to claim dependents they would use Head of Household.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on June 19, 2014, 10:46:32 AM
You can't file as Single if you are married. You must file as either MFJ or MFS.
https://www.1040.com/federal-taxes/filing-basics/filing-status/
Thanks- Nice thought
Title: Re: any accountants out there that i can ask a question?
Post by: Tax on June 20, 2014, 05:58:36 AM
It was for Additional Child Tax Credit (Form 8812), they were able to earn around 50K by counting Bituach Leumi, I'm not sure exactly how it worked

You can not count Bituach Leumi as income for this purpose (ACTC).
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on November 09, 2014, 02:12:41 PM
In realizing a little more the benefits of a roth ira I have 3 ideas

1. Since all contributions can always be withdrawn at any time with out penalty it may make more sense for me to not do the majority of my investing in a roth. The downsides being all gains are locked away till retirement (barring an exception for qualified reasons).

2. Lets say I wanted to purchase a house using the money in my roth. the maximum lifetime withdrawal would be 10k (assuming certain parameters). However since I can anyways withdrawal all contributions tax free, wouldn't it be possible to first withdraw all contributions and then remove another 10k worth of gains (under the exception rule) towards a downpayment?

3. would it be possible to take advantage of the savers credit with the same money every year. i.e. withdraw my contribution and then replace it into a roth ira to take advantage of the credit for that year? or does the IRS consider this a wash?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on November 09, 2014, 04:45:06 PM
In realizing a little more the benefits of a roth ira I have 3 ideas

1. Since all contributions can always be withdrawn at any time with out penalty it may make more sense for me to not do the majority of my investing in a roth. The downsides being all gains are locked away till retirement (barring an exception for qualified reasons).

2. Lets say I wanted to purchase a house using the money in my roth. the maximum lifetime withdrawal would be 10k (assuming certain parameters). However since I can anyways withdrawal all contributions tax free, wouldn't it be possible to first withdraw all contributions and then remove another 10k worth of gains (under the exception rule) towards a downpayment?

3. would it be possible to take advantage of the savers credit with the same money every year. i.e. withdraw my contribution and then replace it into a roth ira to take advantage of the credit for that year? or does the IRS consider this a wash?
On question 2. I would imagine that it would not be a problem, the $10,000 is only an issue with the gain. (you can also make a withdrawal for schooling (for centain expenses) if you or your wife are students (but remember if one of you is a student, you can't get the saver credit for that person)
On question 3, if you took the money out from last year this year you will limit the amount of Saver credit. Look at line 4 of form 8880 that takes the amount of distributions into account.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 09, 2014, 04:57:54 PM
Question 3: Withdrawals from a Roth IRA reduce the amount of the credit. (This includes withdrawals from this year and the year before. I think)
BTW The IRS isn't some bank; not so easy to churn em..:-\
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on November 09, 2014, 05:00:16 PM
In realizing a little more the benefits of a roth ira I have 3 ideas

1. Since all contributions can always be withdrawn at any time with out penalty it may make more sense for me to not do the majority of my investing in a roth. The downsides being all gains are locked away till retirement (barring an exception for qualified reasons).

2. Lets say I wanted to purchase a house using the money in my roth. the maximum lifetime withdrawal would be 10k (assuming certain parameters). However since I can anyways withdrawal all contributions tax free, wouldn't it be possible to first withdraw all contributions and then remove another 10k worth of gains (under the exception rule) towards a downpayment?

3. would it be possible to take advantage of the savers credit with the same money every year. i.e. withdraw my contribution and then replace it into a roth ira to take advantage of the credit for that year? or does the IRS consider this a wash?
Care to elaborate on #1? Being able to withdraw the principal seems like a reason to invest in a Roth, not the opposite.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on November 09, 2014, 07:55:50 PM
Care to elaborate on #1? Being able to withdraw the principal seems like a reason to invest in a Roth, not the opposite.

good catch. I mistyped that. I meant to state that I should invest the majority in an IRA assuming I don't mind that the gains are locked away till retirement or some other qualified expense.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on November 09, 2014, 07:59:14 PM
On question 2. I would imagine that it would not be a problem, the $10,000 is only an issue with the gain. (you can also make a withdrawal for schooling (for centain expenses) if you or your wife are students (but remember if one of you is a student, you can't get the saver credit for that person)

Just checked my return for last year and me and my wife both got the savers credit and I am a student under occupation.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 09, 2014, 08:03:26 PM
Just checked my return for last year and me and my wife both got the savers credit and I am a student under occupation.
If you were a full time student you weren't entitled to it.
The IRS is coming for you!  :P
JK
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on November 09, 2014, 08:13:09 PM
hrm now that you told me I guess can't claim it this year :(

I am surprised that it even went through on my accountants end and on the IRS end.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 09, 2014, 08:40:56 PM


I am surprised that it even went through on my accountants end and on the IRS end.
LOL
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on November 09, 2014, 10:19:10 PM
good catch. I mistyped that. I meant to state that I should invest the majority in an IRA assuming I don't mind that the gains are locked away till retirement or some other qualified expense.
In that case, +1. I hold of this strategy very strongly and I don't understand why it's not considered SOP.

Both my wife and I have retirement programs at work that will likely represent the vast majority of the funds we'll need in retirement. But I still try to max out our IRA contributions anyway because I can always use the principle.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on November 09, 2014, 10:43:52 PM
Ok one more question then regarding the saver credit. I get that as a student I would be ineligible for the credit, however what if I have investment income would that qualify?

thanks for all the advice.
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on November 10, 2014, 09:47:34 AM
Ok one more question then regarding the saver credit. I get that as a student I would be ineligible for the credit, however what if I have investment income would that qualify?

thanks for all the advice.
The IRS rule as written has nothing to do with income. If you're a full-time student for at least 5 months of that tax year, you're not supposed to claim the credit, period.
Title: Sales tax for lighting equipment
Post by: doublejay on December 26, 2014, 01:02:18 AM
Anyone able to help with this?:

Topic: Charging sales tax for lighting equipment sales and installation

I am aware of some local electricians that do jobs for businesses where they sell fixtures and installation work but don't charge tax. Is that possibly legit?

Capital improvement or something?

Title: Re: Sales tax for lighting equipment
Post by: David R on December 26, 2014, 01:30:34 AM
Anyone able to help with this?:

Topic: Charging sales tax for lighting equipment sales and installation

I am aware of some local electricians that do jobs for businesses where they sell fixtures and installation work but don't charge tax. Is that possibly legit?

Capital improvement or something?
If it's capital improvement in NY, it's legit. http://www.tax.ny.gov/pdf/publications/sales/pub862.pdf
I'm not an accountant.
Title: Re: any accountants out there that i can ask a question?
Post by: yoruel on February 02, 2015, 02:46:43 PM
How do I prove I used IRA money for home purchase?
What do I need to give my accountant? Is a HUD form enough?
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on February 11, 2015, 12:18:37 PM
I'm thinking about getting a medicare provider number and want to incorporate beforehand. How do I figure out if I should get a PLLC, PC, LLC, etc?
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on February 15, 2015, 02:29:03 PM
I'm thinking about getting a medicare provider number and want to incorporate beforehand. How do I figure out if I should get a PLLC, PC, LLC, etc?

I guess it's the beginning of busy season
Title: Re: any accountants out there that i can ask a question?
Post by: henche on February 15, 2015, 11:20:07 PM
I'm thinking about getting a medicare provider number and want to incorporate beforehand. How do I figure out if I should get a PLLC, PC, LLC, etc?

You're trying to incorporate to avoid personal liability I assume?

And you want pass-through tax treatment?

And is it legal to run your business through an LLC? Some states prohibit the corporate practice of medicine.
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on February 16, 2015, 12:52:16 PM
You're trying to incorporate to avoid personal liability I assume?

And you want pass-through tax treatment?

And is it legal to run your business through an LLC? Some states prohibit the corporate practice of medicine.

Those are all excellent questions that I do not konw but will try to answer.

Correct, dunno, yes (NY with a PLLC).
Title: Re: any accountants out there that i can ask a question?
Post by: Alexsei on February 17, 2015, 05:07:40 PM
Anyway to get a nYS reseller license without having a business in NYS?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 22, 2015, 07:57:43 PM
Anyone use turbo tax with schedule C this year. it is charging me money. is this something new or something wrong with my software?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 22, 2015, 08:15:37 PM
Anyone use turbo tax with schedule C this year. it is charging me money. is this something new or something wrong with my software?
You need 'home and business' or 'business' for schedule C.  Do you have that version, or is TurboTax upgrading you - for a fee?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on March 22, 2015, 08:16:21 PM
You need 'home and business' or 'business' for schedule C

-1
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 22, 2015, 10:44:00 PM
You need 'home and business' or 'business' for schedule C.  Do you have that version, or is TurboTax upgrading you - for a fee?
it is asking for a fee. I have the premier version.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 22, 2015, 10:44:16 PM
-1
So how do i go about doing it?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on March 22, 2015, 10:53:08 PM
So how do i go about doing it?

Not sure,  but I didn't pay extra. Are you doing online?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 22, 2015, 11:34:54 PM
Not sure,  but I didn't pay extra. Are you doing online?
This year or last year?  They rearranged what's in each level this year.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 23, 2015, 12:44:36 PM
This year. I am doing it on my software and for someone else on line.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 23, 2015, 01:59:12 PM
This year. I am doing it on my software and for someone else on line.
https://turbotax.intuit.com/  scroll all the way down to the 'compare the product features' area.  It looks to me that Premier doesn't do schedule C.
Call and ask them.   Although they're not always that knowledgeable. Or ask on their forums.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 23, 2015, 02:12:49 PM
https://turbotax.intuit.com/  scroll all the way down to the 'compare the product features' area.  It looks to me that Premier doesn't do schedule C.
Call and ask them.   Although they're not always that knowledgeable. Or ask on their forums.
I see. I guess they changed that this year which is strange- why schedule C
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 23, 2015, 05:17:15 PM
I see. I guess they changed that this year which is strange- why schedule C
It looks like TurboTax backtracked from making you pay extra for it.
 http://www.csmonitor.com/Business/Saving-Money/2015/0202/Intuit-apologizes-offers-free-Turbo-Tax-upgrades
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 23, 2015, 07:52:30 PM
Thanks- I called them and they gave me the upgrade for free.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 23, 2015, 10:49:22 PM
Thanks- I called them and they gave me the upgrade for free.
+1 !
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on March 24, 2015, 03:38:47 AM
Ok,  now this all makes sense. I have used turbo tax in the past, but not this year yet, and could not figure out what the problem was
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 26, 2015, 06:17:40 PM
I am trying to file a nonresident NYS return and it looks like i can not e file it on their website. Can anyone confirm this? Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 14, 2015, 03:11:20 PM
Anyone know where i can get a 1099B red form from which goes to the IRS? Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on April 14, 2015, 03:24:37 PM
Anyone know where i can get a 1099B red form from which goes to the IRS? Thanks
http://www.irs.gov/pub/irs-pdf/f1099b.pdf    read page 1
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 14, 2015, 03:32:42 PM
http://www.irs.gov/pub/irs-pdf/f1099b.pdf    read page 1
Just to understand- i can print this form for the irs even if it is not red? Also the link here says 2015 on it and i need this for 2014. does that make  a difference?  Thanks for all your  help
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on April 14, 2015, 03:35:58 PM
Just to understand- i can print this form for the irs even if it is not red? Also the link here says 2015 on it and i need this for 2014. does that make  a difference?  Thanks for all your  help
http://www.irs.gov/pub/irs-pdf/f1099b.pdf    read page 1
answers all your questions. no you cant use that one, and if you use correct link you can order whichever year you need
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 14, 2015, 04:15:18 PM
answers all your questions. no you cant use that one, and if you use correct link you can order whichever year you need
to my understanding i need to send this out by 4/15. is that correct?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on April 14, 2015, 06:13:27 PM
Reminder to file your extension today.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 14, 2015, 09:05:51 PM
Reminder to file your extension today.
Do i need to file a extension if i do not owe any money?
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on April 14, 2015, 09:10:45 PM
Can I still pay federal tax online?

Quote
The payment date below is the date you will get credit for the payment. As long as you have submitted your payment on or before the due date and receive a confirmation number in this program, you should avoid penalties or interest on your account even though actual payment does not occur until the next available banking day.

It's only letting me put in 4/16 as date.
Title: Re: any accountants out there that i can ask a question?
Post by: upside down on April 14, 2015, 10:24:28 PM
is the cutoff time midnight tonight in a hour and a half, or tomorrow night?
Title: Re: any accountants out there that i can ask a question?
Post by: dealvr on April 14, 2015, 10:42:27 PM
is the cutoff time midnight tonight in a hour and a half, or tomorrow night?
Tomorrow night
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 15, 2015, 12:36:08 AM
Do i need to file a extension if i do not owe any money?
I always thought not.  And for the federal it may be true, but I've come to doubt it.
I recently had a mistake on my 2012 federal form found by the IRS.  My tax was recalculated and I sent it all in.  Then I put the new amount into TurboTax and recalculated the NYS form and sent it in with a cover letter.  I got a 'late filing charge', besides the taxes and interest due.  It seems that since I never filed an extension, I was now being fined for this late payment, even though I got a refund originally.  (I called and they gave me a one-time waver of the fee.)  So this year I filed an extension - on the NYS tax website.  And by snail mail to the IRS.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 15, 2015, 01:08:43 AM
Do i need to file a extension if i do not owe any money?
if you meet the threshold for being required to file a return, then you need to file an extension even if you don't owe any money
(http://i59.tinypic.com/30auyq9.png)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 27, 2015, 06:23:15 PM
Where would you put cell phone and internet expenses which is in the home on a schedule C? by utilities or other or...?
Title: Re: any accountants out there that i can ask a question?
Post by: David R on April 28, 2015, 01:03:39 AM
if you meet the threshold for being required to file a return, then you need to file an extension even if you don't owe any money
(http://i59.tinypic.com/30auyq9.png)
...but if you fail to file on time nor file an extension and you don't owe any money, you are not penalized. Understand how they compute the penalty and you will see what I mean.
http://www.irs.gov/uac/Newsroom/Eight-Facts-on-Late-Filing-and-Late-Payment-Penalties
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 29, 2015, 10:07:32 AM
Where would you put cell phone and internet expenses which is in the home on a schedule C? by utilities or other or...?
Bump
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 11, 2015, 11:39:36 PM
if you meet the threshold for being required to file a return, then you need to file an extension even if you don't owe any money
(http://i59.tinypic.com/30auyq9.png)
I filed many Returns that had no amount due (or expecting a refund) after 4/15 without an extension. There is no problem doing so. If you owe no amount or expecting a refund, you have 3 years to file your return, the only benefit of an extension would be that you would have 3 years till Oct 15th (vs 3 years till April 15th without an extension)
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 09:54:57 AM
i have a side business that i will receive many 1099s. i want to avoid the regular taxes. should i make a c corp or an LLC?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 10:18:35 AM
i have a side business that i will receive many 1099s. i want to avoid it being on my name. should i make a c corp or an LLC?

Or, you could set up a whole structure of corps and offshore feeders, and make sure nobody can track it back to you.

But its easier and cheaper to just not get paid the money.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 10:28:45 AM
Or, you could set up a whole structure of corps and offshore feeders, and make sure nobody can track it back to you.

But its easier and cheaper to just not get paid the money.
do you have anything intelligent to share?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on May 14, 2015, 10:29:43 AM
do you have anything intelligent to share?
No,  not her
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 14, 2015, 10:40:31 AM
i have a side business that i will receive many 1099s. i want to avoid the regular taxes. should i make a c corp or an LLC?
What do you mean you want to "avoid the regular taxes" on a Corp and LLC you have to also pay taxes.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 10:42:23 AM
What do you mean you want to "avoid the regular taxes" on a Corp and LLC you have to also pay taxes.
i understand the corp can pay taxes. does that mean that i am?  maybe im confused about what the pros of a corp.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 10:53:42 AM
i understand the corp can pay taxes. does that mean that i am?  maybe im confused about what the pros of a corp.

Your original question was to avoid having it your name. Now you edited to say you want to avoid the regular taxes.

So what is your object? To save money, or to hide your income from somebody?

Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on May 14, 2015, 10:56:46 AM
i have a side business that i will receive many 1099s. i want to avoid the regular taxes. should i make a c corp or an LLC?
To get you started, I googled 'c corp vs llc', and this looked good.
http://www.obliviousinvestor.com/llc-vs-s-corp-vs-c-corp/
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 11:02:11 AM
To get you started, I googled 'c corp vs llc', and this looked good.
http://www.obliviousinvestor.com/llc-vs-s-corp-vs-c-corp/
I know that.  sometimes people with experience can give you a 2 sentence answer, which would make my life simpler
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 14, 2015, 11:04:25 AM
i understand the corp can pay taxes. does that mean that i am?  maybe im confused about what the pros of a corp.
I'm not sure exactly what you mean, but I assume you want to know which income will actually show up on your 1040. If that is your question the LLC will flow to your 1040 and show up there as your income, the Corp is a "Blocker" the income stops at the Corp, and the Corp pays the taxes, it doesn't show up on your 1040.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 11:09:03 AM
I'm not sure exactly what you mean, but I assume you want to know which income will actually show up on your 1040. If that is your question the LLC will flow to your 1040 and show up there as your income, the Corp is a "Blocker" the income stops at the Corp, and the Corp pays the taxes, it doesn't show up on your 1040.
thank you.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on May 14, 2015, 11:12:01 AM
thank you.
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 14, 2015, 11:14:22 AM
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.
with this part im familiar. i gotta make sure to get some "expenses" along the way...
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 14, 2015, 11:16:43 AM
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.
Mark you are correct, but
1) The reason he probably wants to do this is for programs, which is a lot more probably than what he will be paying in taxes.
2) If he pays himself a salary he won’t be double taxed since he will get that as a deduction for the Corp. ( assuming a lot of things, but simply put that is the case)
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 11:47:00 AM
Mark you are correct, but
1) The reason he probably wants to do this is for programs, which is a lot more probably than what he will be paying in taxes.
2) If he pays himself a salary he won’t be double taxed since he will get that as a deduction for the Corp. ( assuming a lot of things, but simply put that is the case)

If he pays himself a salary how does that help with programs?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 14, 2015, 11:57:12 AM
If he pays himself a salary how does that help with programs?
He can pay it in another year that wont affect his programs
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 12:00:58 PM
He can pay it in another year that wont affect his programs

If he pays in another year the corp won't have zero income this year.

Unless the fiscal year or accounting method is different.

But it will be a personal holding company.
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on May 14, 2015, 01:00:02 PM
with this part im familiar. i gotta make sure to get some "expenses" along the way...
If you have expense that reduce the income why bother with a corp?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 01:31:21 PM
If you have expense that reduce the income why bother with a corp?
is this a legal business, or is it like gun running or something like that.

Because you can't deduct expenses of a certain illlegal businesses.
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on May 14, 2015, 01:35:00 PM
is this a legal business, or is it like gun running or something like that.

Because you can't deduct expenses of a certain illlegal businesses.
Cogs are always deducted.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 01:44:33 PM
Cogs are always deducted.

Yes. But I was thinking COGS are probably expenses rather than "expenses".
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on May 14, 2015, 02:39:26 PM


Because you can't deduct expenses of a certain illlegal businesses.

Which ones can you?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 02:52:33 PM
Which ones can you?
https://www.law.cornell.edu/uscode/text/26/280E
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on May 14, 2015, 03:04:34 PM
Yes. But I was thinking COGS are probably expenses rather than "expenses".
But spoilage of inventory can be considered cogs. - Say you sell weed and there is a fire and some of you inventory goes up in smoke, I would argue to deduct this.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 03:24:58 PM
But spoilage of inventory can be considered cogs. - Say you sell weed and there is a fire and some of you inventory goes up in smoke, I would argue to deduct this.

Or what if by some bizzare act it is simply--vaporized?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on May 14, 2015, 08:27:18 PM
https://www.law.cornell.edu/uscode/text/26/280E

I read that to say you cannot deduct the expenses.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on May 14, 2015, 09:47:57 PM
I read that to say you cannot deduct the expenses.

Right. You asked which you are allowed to deduct. So I linked the code section.  It seems you can deduct nondrug expenses. are there ohter sections dealing with other illegal activities?
Title: Re: any accountants out there that i can ask a question?
Post by: Deal Guy on June 02, 2015, 03:51:20 PM
I have 2 questions for any experts here:

1- American Opportunity Credit- is it based on you being an undergraduate student, or do you qualify during the first 4 years in college, even if a graduate student. The question arises for those who complete a Ba online or wherever in 2 years, and then begin a Masters Program. Can they still take the American Opportunity Credit during the first 2 years of their Masters program?

2- If a married couple filing jointly wants to get Earned Income Credit for their American kids, both parents need to have a social, not a Itin. Question is if only one parent has a social, is it ok to wait a few months or a year for the other parent to get full citizenship and a social and then be able to file for the EIC even for the prior year, even though in 2014 that parent did not have a social?
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on June 02, 2015, 06:28:04 PM


I have 2 questions for any experts here:

1- American Opportunity Credit- is it based on you being an undergraduate student, or do you qualify during the first 4 years in college, even if a graduate student. The question arises for those who complete a Ba online or wherever in 2 years, and then begin a Masters Program. Can they still take the American Opportunity Credit during the first 2 years of their Masters program?

2- If a married couple filing jointly wants to get Earned Income Credit for their American kids, both parents need to have a social, not a Itin. Question is if only one parent has a social, is it ok to wait a few months or a year for the other parent to get full citizenship and a social and then be able to file for the EIC even for the prior year, even though in 2014 that parent did not have a social?

2- IMHO The SS is just necessary to process the claim. So you can wait till u get it and claim. -#Not 100% sure though
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on June 02, 2015, 06:49:24 PM
I have 2 questions for any experts here:

1- American Opportunity Credit- is it based on you being an undergraduate student, or do you qualify during the first 4 years in college, even if a graduate student. The question arises for those who complete a Ba online or wherever in 2 years, and then begin a Masters Program. Can they still take the American Opportunity Credit during the first 2 years of their Masters program?

2- If a married couple filing jointly wants to get Earned Income Credit for their American kids, both parents need to have a social, not a Itin. Question is if only one parent has a social, is it ok to wait a few months or a year for the other parent to get full citizenship and a social and then be able to file for the EIC even for the prior year, even though in 2014 that parent did not have a social?
With regard to #1, IME most people assume that it's only for undergraduate, but someone told me that he went thru the regs and there's no reason to believe that it shouldn't apply to someone in your scenario.
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on June 02, 2015, 07:01:56 PM
I think its fine.
(http://images.tapatalk-cdn.com/15/06/02/cb317fcdfd6870f460d30290704225a9.jpg)
Title: Re: any accountants out there that i can ask a question?
Post by: Deal Guy on June 02, 2015, 08:38:45 PM
I think its fine.
(http://images.tapatalk-cdn.com/15/06/02/cb317fcdfd6870f460d30290704225a9.jpg)
Thanks. Can you post the link to this irs page. I didn't see it.
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on June 02, 2015, 09:44:44 PM
Thanks. Can you post the link to this irs page. I didn't see it.
Its in the pub about foreign couples
Title: Re: any accountants out there that i can ask a question?
Post by: Deal Guy on June 02, 2015, 11:55:02 PM
Its in the pub about foreign couples
If you don't mind linking it, would be much appreciated...

That being said, you could also interpret it the other way that its no good. The call of the question is, that he "was a undergraduate" for the first part of year and then became a graduate student. In that case, since there was a portion of the year that "you were a undergrad" + you didn't use up your 4 years of America Opportunity Credit, therefore you qualify. (But you must have been a undergrad for part of the year.....)
So I really don't have a clear answer.

I called some dumb IRS rep today, and she tells me that there is no longer funding for IRS Legal Tax questions......I should look online...

So who then can I get clarification from?
Title: Re: any accountants out there that i can ask a question?
Post by: Deal Guy on June 04, 2015, 01:11:08 AM
I have 2 questions for any experts here:

1- American Opportunity Credit- is it based on you being an undergraduate student, or do you qualify during the first 4 years in college, even if a graduate student. The question arises for those who complete a Ba online or wherever in 2 years, and then begin a Masters Program. Can they still take the American Opportunity Credit during the first 2 years of their Masters program?

2- If a married couple filing jointly wants to get Earned Income Credit for their American kids, both parents need to have a social, not a Itin. Question is if only one parent has a social, is it ok to wait a few months or a year for the other parent to get full citizenship and a social and then be able to file for the EIC even for the prior year, even though in 2014 that parent did not have a social?
What happened to all the accountants here? Nobody with clear answers?
Title: Re: any accountants out there that i can ask a question?
Post by: PTU on June 04, 2015, 07:14:02 AM
What happened to all the accountants here? Nobody with clear answers?
Maybe research it yourself?

Try tax alamanac, the IRS code, google etc.
Title: Re: any accountants out there that i can ask a question?
Post by: Deal Guy on June 04, 2015, 05:06:47 PM
http://www.irs.gov/Individuals/Education-Credits:-Questions-and-Answers

On the 9th question, the Irs states that you can claim the American Opportunity Tax Credit for expenses paid for the ENTIRE year, even thought you were a Graduate student for the 2nd half of the year, (as long as you haven't claimed it for 4 years). So I'm leaning towards that even a full year graduate student can claim it as long as they haven't competed 4 years of college period.
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on July 28, 2015, 11:21:37 AM
Anyone accountant/tax lawyer here know how the IRS handles parsonage?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on July 28, 2015, 11:22:29 AM
Anyone accountant/tax lawyer here know how the IRS handles parsonage?
Don't think there is an easy answer to that
Title: Re: any accountants out there that i can ask a question?
Post by: coralsnake on July 28, 2015, 11:22:56 AM
Don't think there is an easy answer to that
Its not an easy question.
Title: Re: any accountants out there that i can ask a question?
Post by: EJB on July 28, 2015, 11:23:24 AM
Don't think there is an easy answer to that

Me neither. Anyone???
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on July 28, 2015, 11:33:53 AM
I believe that all agree that it is not taxable and essentially does not go onto box 2 of the w2. It is unclear whether you need to pay fica on it. 
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on August 06, 2015, 12:25:32 PM
what determines if someone is a full time student?

if someone worked first half of year and then second half is a full time student can they take the savers credit?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on September 09, 2015, 05:22:44 PM
How much do big 4 firms in Israel pay associates?
Title: Re: any accountants out there that i can ask a question?
Post by: @Yehuda on September 09, 2015, 05:43:01 PM
How much do big 4 firms in Israel pay associates?
I know someone who is a senior in Israel at a big 4 and is getting <120K Shekel (~30K USD).
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on September 09, 2015, 05:45:22 PM
I know someone who is a senior in Israel at a big 4 and is getting <120K Shekel (~30K USD).
That's all? Wow
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on September 09, 2015, 05:50:23 PM
I know someone who is a senior in Israel at a big 4 and is getting <120K Shekel (~30K USD).
Six figure salary!  Haha.  Also, you need to do a two year internship
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on September 09, 2015, 06:11:53 PM
Six figure salary!  Haha.  Also, you need to do a two year internship
Really why?
 But interns get paid by the hour with overtime. I know interns make more than associates here, so may be worth it.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on September 09, 2015, 06:57:20 PM

 But interns get paid by the hour with overtime.

In Israel also?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on September 09, 2015, 07:50:53 PM
Really why?
 But interns get paid by the hour with overtime. I know interns make more than associates here, so may be worth it.
They're called junior accountants.  If everyone does a 2 year internship that is basically the entry level position and there is no reason for firms to pamper them like the big 4 here pamper interns.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on September 09, 2015, 07:53:30 PM
They're called junior accountants.  If everyone does a 2 year internship that is basically the entry level position and there is no reason for firms to pamper them like the big 4 here pamper interns.

I know someone who is a senior in Israel at a big 4 and is getting <120K Shekel (~30K USD).
Title: Re: any accountants out there that i can ask a question?
Post by: henche on September 10, 2015, 08:42:02 AM
Is it time to file my 2014 return yet?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on September 10, 2015, 09:34:19 AM

Is it time to file my 2014 return yet?

You pay taxes?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on September 10, 2015, 09:42:11 AM
You pay taxes?

Rather large amounts, I might add.   
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on September 10, 2015, 01:40:38 PM
Is it time to file my 2014 return yet?
You have till Oct 15
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 20, 2015, 12:12:17 PM
looking for a good accountant, anyone know someone?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on September 20, 2015, 12:23:00 PM
looking for a good accountant, anyone know someone?
What do you need to account for?
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 20, 2015, 12:31:23 PM
What do you need to account for?
a small business.
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on September 20, 2015, 04:07:41 PM
looking for a good accountant, anyone know someone?
Where?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on September 20, 2015, 04:26:29 PM
Rather large amounts, I might add.
Poidnh
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 20, 2015, 04:54:58 PM
Where?
I already got a name, its an accountant, who cares where? ;D ;D
Title: Re: any accountants out there that i can ask a question?
Post by: henche on September 21, 2015, 06:09:29 PM
Lunatic, wanna do my taxes and see for yourself?
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on October 01, 2015, 01:14:56 PM
Is there any possibility that sending Amex a 4506T for a business will cause any trouble down the line like an audit etc..?
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on October 01, 2015, 02:20:10 PM
Income from selling miles taxable? As what?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 01, 2015, 03:10:16 PM
Income from selling miles taxable? As what?

At whatever the cash or cash equivalent is, less your cost (gift card fees etc.)
Title: Re: any accountants out there that i can ask a question?
Post by: henche on October 01, 2015, 03:11:24 PM
At whatever the cash or cash equivalent is, less your cost (gift card fees etc.)

Ordinary business income? Short term cap gains? Nafka mina self emloyment taxes
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 01, 2015, 03:26:34 PM
Ordinary business income? Short term cap gains? Nafka mina self emloyment taxes

What was the purpose of accruing the miles?

I doubt the purpose was for an investment, as the FMV is steadily declining.

If to sell: Ordinary.
If for personal use, but now you wanna sell: Ordinary.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 01, 2015, 03:33:08 PM
The IRS doesn't deal with tax in miles and points (per some announcement they made, there is a thread on it somewhere).

I'm not sure how liquidating them becomes a taxable transaction. Especially because the IRS can't know figur the basis.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on October 01, 2015, 03:39:41 PM
The IRS doesn't deal with tax in miles and points (per some announcement they made, there is a thread on it somewhere).

I'm not sure how liquidating them becomes a taxable transaction. Especially because the IRS can't know figur the basis.

You read that announcement as applying to buying and selling? 
Title: Re: any accountants out there that i can ask a question?
Post by: henche on October 01, 2015, 03:40:32 PM
What was the purpose of accruing the miles?

I doubt the purpose was for an investment, as the FMV is steadily declining.

If to sell: Ordinary.
If for personal use, but now you wanna sell: Ordinary.

I don't know about that.  You buy a house to live in, and then sell it at a profit, you don't have ordinary income. 
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 01, 2015, 03:47:45 PM
I don't know about that.  You buy a house to live in, and then sell it at a profit, you don't have ordinary income. 

And an automobile?

Principle residences are treated differently, hence the 250k/500k waiver.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on October 01, 2015, 03:50:12 PM
And an automobile?

Principle residences are treated differently, hence the 250k/500k waiver.

If you buy a car to use, and sell it, I do not think you would have ordinary income.  You think so?  I think it would be gains. https://www.law.cornell.edu/uscode/text/26/1001
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 01, 2015, 03:56:13 PM
If you buy a car to use, and sell it, I do not think you would have ordinary income.  You think so?  I think it would be gains. https://www.law.cornell.edu/uscode/text/26/1001


I guess I got a CMMIIW :(

http://www.irs.gov/publications/p544/ch02.html
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 01, 2015, 04:00:00 PM
You read that announcement as applying to buying and selling?
Now buying and selling is different.
I thought the question was "earning" and selling.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 01, 2015, 04:02:18 PM
The IRS doesn't deal with tax in miles and points (per some announcement they made, there is a thread on it somewhere).

I'm not sure how liquidating them becomes a taxable transaction. Especially because the IRS can't know figur the basis.

To the IRS the basis would be $0.00.
It up to the taxpayer to keep receipts as to the basis.

The announcement had to do with using the miles, as to what amount can we value the flight? and when someone has a CC that the company pays for, how should they calculate income from using the mileage rewards, that was to complicated to put a value at.
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on October 01, 2015, 04:53:05 PM
So if I got a 5000 check for selling miles, and I don't have any business, (just a w2), what do I need to do?
Title: Re: any accountants out there that i can ask a question?
Post by: yid on October 01, 2015, 09:52:55 PM
im not giving you tax or legal advice just informing of you of possible options- consult your own tax advisor.....
As has been discussed many times on ddf-  personal miles from opening/using  cards almost for sure / and probably even manufactured  are most likely purchase rebate and non taxable-
Title: Re: any accountants out there that i can ask a question?
Post by: nobiggy on October 04, 2015, 12:43:32 AM
im not giving you tax or legal advice just informing of you of possible options- consult your own tax advisor.....
As has been discussed many times on ddf-  personal miles from opening/using  cards almost for sure / and probably even manufactured  are most likely purchase rebate and non taxable-
Even when sold?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on October 04, 2015, 12:46:50 AM
im not giving you tax or legal advice just informing of you of possible options- consult your own tax advisor.....
As has been discussed many times on ddf-  personal miles from opening/using  cards almost for sure / and probably even manufactured  are most likely purchase rebate and non taxable-

Key word there is personal.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on October 04, 2015, 12:49:05 AM
im not giving you tax or legal advice just informing of you of possible options- consult your own tax advisor.....
As has been discussed many times on ddf-  personal miles from opening/using  cards almost for sure / and probably even manufactured  are most likely purchase rebate and non taxable-
-1
Now, whether the irs will find out, it's another question
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 04, 2015, 12:56:20 AM
im not giving you tax or legal advice just informing of you of possible options- consult your own tax advisor.....
As has been discussed many times on ddf-  personal miles from opening/using  cards almost for sure / and probably even manufactured  are most likely purchase rebate and non taxable-

Even when sold?
This whole discussion is about selling those personal miles.
Title: Re: any accountants out there that i can ask a question?
Post by: nobiggy on October 04, 2015, 01:02:57 AM
This whole discussion is about selling those personal miles.
Exactly. So if I sold my own miles even if I made 10k it's not considered taxable?
Title: Re: any accountants out there that i can ask a question?
Post by: Entrepreneur on October 27, 2015, 12:51:13 PM
Corporate Tax Question:

When calculating Charitable Contributions and Dividend Received Deduction for corporations, I understand that you first compute Taxable Income without NOL carry back and Capital Loss Carry Back.  What about Carry Forwards?  From what I understand, DRD must EXCLUDE any NOL before calculating them.

Example:
It's 2015 and Taxable Income is $50,000 ($5,000 of which is Capital Gain).  Let's say last year there is a Capital Loss carry forward of $20,000 and and NOL carry forward of $10,000. So would we net out the $5,000 capital gain and then further reduce the amount by $10,000 for a total taxable income of $35,000. 

So now Charity can be 10% of $35,000 BUT the DRD would be based off of $45,000 or the Dividend (whichever lower)?

Thank you
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on October 27, 2015, 01:21:19 PM
Corporate Tax Question:

When calculating Charitable Contributions and Dividend Received Deduction for corporations, I understand that you first compute Taxable Income without NOL carry back and Capital Loss Carry Back.  What about Carry Forwards?  From what I understand, DRD must EXCLUDE any NOL before calculating them.

Example:
It's 2015 and Taxable Income is $50,000 ($5,000 of which is Capital Gain).  Let's say last year there is a Capital Loss carry forward of $20,000 and and NOL carry forward of $10,000. So would we net out the $5,000 capital gain and then further reduce the amount by $10,000 for a total taxable income of $35,000. 

So now Charity can be 10% of $35,000 BUT the DRD would be based off of $45,000 or the Dividend (whichever lower)?

Thank you
CCH has has this by charitable deductions,

2. The “intermediate taxable income” figure on which the 10% limit is based is taxable income as reported  before considering:
•the charitable contribution itself,
•the dividends received deduction,
•any capital loss carryback (but not carryforward), and
•any net operating loss carryback (but not carryforward).

http://tax.cchgroup.com/downloads/files/contemporary-tax-practice/Module3/Topic4/B-Corporate-Charitable-Deduction-Determining-Deduction.asp

So it's only carry back not carry forward

Title: Re: any accountants out there that i can ask a question?
Post by: Entrepreneur on October 27, 2015, 01:46:02 PM
CCH has has this by charitable deductions,

2. The “intermediate taxable income” figure on which the 10% limit is based is taxable income as reported  before considering:
•the charitable contribution itself,
•the dividends received deduction,
•any capital loss carryback (but not carryforward), and
•any net operating loss carryback (but not carryforward).

http://tax.cchgroup.com/downloads/files/contemporary-tax-practice/Module3/Topic4/B-Corporate-Charitable-Deduction-Determining-Deduction.asp

So it's only carry back not carry forward

Thank you. 

That link also shows the following:
"Tip – Capital loss and net operating loss carryforwards are NOT subtracted in determining the 10% taxable income limit, since the taxpayer can plan for those deductions in determining the level of contributions to make for the year. Such is not the case for carrybacks, and that is why these two items are ignored in determining the 10% limit for a carryback year."

So "subtracted" means "not included" (so NOT not included i.e. Included).  Meaning, we do "reduce" the taxable income by the carry forward amount.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on October 29, 2015, 11:57:33 PM
When couples file a joint return, is the husband or wife usually listed first?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on October 29, 2015, 11:58:41 PM
When couples file a joint return, is the husband or wife usually listed first?

Whoever makes more money. If they make the same amount, whoever can beat up the other. If they are even, whoever is more stubborn. It's very important.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on October 30, 2015, 12:00:49 AM
When couples file a joint return, is the husband or wife usually listed first?
irrelevant.  makes no difference.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on October 30, 2015, 12:01:36 AM
irrelevant.  makes no difference.
but what do people usually do?
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on October 30, 2015, 12:02:53 AM
Whoever makes more money. If they make the same amount, whoever can beat up the other. If they are even, whoever is more stubborn. It's very important.
;D ;D   so safe to assume the husband usually wins? ;)
Title: Re: any accountants out there that i can ask a question?
Post by: Ergel on October 30, 2015, 01:09:43 AM
;D ;D   so safe to assume the husband usually wins? ;)
Only if he's not so bright
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 30, 2015, 07:34:03 AM
but what do people usually do?
The husband comes first.
In a traditional marriage, the husband works harder to earn the money, manages the finances and is the authoritative figure.

What's your question?
Title: Re: any accountants out there that i can ask a question?
Post by: dealvr on October 30, 2015, 08:16:57 AM
Interestingly we have a client that is female, makes more money than her husband, and her company pays for her return preparation, yet we still list him first.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 30, 2015, 09:02:28 AM
Interestingly we have a client that is female, makes more money than her husband, and her company pays for her return preparation, yet we still list him first.
Of course, who sits at the head of the dinner table?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on October 30, 2015, 09:26:48 AM
Whoever makes more money. If they make the same amount, whoever can beat up the other. If they are even, whoever is more stubborn. It's very important.

So should we assume that Hench is NOT listed first on her return?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on October 30, 2015, 10:21:59 AM
https://www.irs.gov/pub/irs-drop/n-15-76.pdf

REQUEST FOR COMMENTS REGARDING THE EXCISE TAX ON AMOUNTS PAID FOR THE RIGHT
TO PROVIDE MILEAGE AWARDS
Specifically, the Treasury Department and the IRS request comments
addressing the following:
• Whether the methodology in Section 3 of this notice, if adopted, is workable for taxpayers,
airlines, and other potential stakeholders.
• Whether the methodology in Section 3 of this notice, if adopted, should be adopted as a rule of
general applicability instead of as a safe harbor provision.
• Whether the methodology in Section 3 of this notice should be modified to take into account a
longer or shorter period of historical data.
• Whether airlines (or airline mileage awards programs) are willing to share historical data with
taxpayers so that taxpayers can verify the tax base upon which the § 4261(a) tax is applied when
a taxpayer purchases frequent flyer miles
• Whether in lieu of the methodology in Section 3 of this notice, the Treasury Department and the
IRS should provide an allocation percentage that can be applied on an airline industry-wide basis,
which the Treasury Department and the IRS would calculate using industry-provided data.
• How often an industry-wide allocation percentage, if adopted, should be updated to reflect current
industry data and what is the best method for the Treasury Department and the IRS to collect the
necessary data.
• Whether the Treasury Department and the IRS should adopt a methodology that is not described
in this notice and recommendations for alternative methodologies.
• Whether the Treasury Department and the IRS should provide a mechanism for collectors to
make adjustments to the Exclusion Ratio to correct computational and typographical errors after
the collector reports the Exclusion Ratio to the IRS, and how such a mechanism should work.
• Whether the procedures in Sections 4 and 5 of this notice would be workable from the collector
and the taxpayer’s perspectives.
• How to address overpayments and underpayments of tax resulting from errors in the Exclusion
Ratio, including whether the collector should be responsible for such underpayments
Title: Re: any accountants out there that i can ask a question?
Post by: yr on November 10, 2015, 08:12:06 PM
Anyone know what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?

Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on November 10, 2015, 08:23:57 PM
Anyone know what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?
depends on your "tax home" no?
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 02:39:41 AM
Currently I get paid with a 1099. Is there any legitimate way to save some $ on social security tax if I change from a schedule C to incorporating myself (LLC or S Corp) and then paying myself a salary with the remainder being a distribution?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on November 11, 2015, 04:09:27 AM
Currently I get paid with a 1099. Is there any legitimate way to save some $ on social security tax if I change from a schedule C to incorporating myself (LLC or S Corp) and then paying myself a salary with the remainder being a distribution?
I'm no accountant here, but I do this. My accountant told me that if your making over about 30k the IRS wants to see some salary, but not all of the income has to come as salary. Not sure on the exact ratio of salary to capital gains, but this is something that is done. You probably will need to give yourself some salary, but not all the income has to be salary, thus saving ss tax on part of it.
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 04:22:56 AM
I'm no accountant here, but I do this. My accountant told me that if your making over about 30k the IRS wants to see some salary, but not all of the income has to come as salary. Not sure on the exact ratio of salary to capital gains, but this is something that is done. You probably will need to give yourself some salary, but not all the income has to be salary, thus saving ss tax on part of it.
That's exactly what I was thinking about doing and what I heard many people do. But when I asked my accountant about it he said that technically all my earnings are subject to social security because by definition 1099 is earned income/wages and even if I incorporate myself and pay myself only part in salary, the IRS can come later and make me pay SS on the rest and potentially a fine or penalty also. Any accountants want to chime in?
Title: Re: any accountants out there that i can ask a question?
Post by: good sam on November 11, 2015, 06:59:31 AM
New question: The HR guy at work tells me it's no longer possible to have my insurance paid pretax unless I'm getting insurance through my employer. Because my insurance is through the exchange, I'm ineligible.

Can anyone confirm or deny?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 11, 2015, 07:12:09 AM
That's exactly what I was thinking about doing and what I heard many people do. But when I asked my accountant about it he said that technically all my earnings are subject to social security because by definition 1099 is earned income/wages and even if I incorporate myself and pay myself only part in salary, the IRS can come later and make me pay SS on the rest and potentially a fine or penalty also. Any accountants want to chime in?
IMHO if you're an S corp technically you could take a distribution fica free.

But you can't be an active employee of the corp and take your salary as a distribution. Unless you think the IRS was born yesterday...
You could take a partial salary and partial distribution.


See here https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html

Disclaimer:
I don't do taxes..
All opinions my own.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 09:17:48 AM
That's exactly what I was thinking about doing and what I heard many people do. But when I asked my accountant about it he said that technically all my earnings are subject to social security because by definition 1099 is earned income/wages and even if I incorporate myself and pay myself only part in salary, the IRS can come later and make me pay SS on the rest and potentially a fine or penalty also. Any accountants want to chime in?
if the money is paid to the s-corp there would be no 1099
your spouse can own the s-corp and pay you any salary
Plus then you could use the s-corp to pay health insurance (if that was an issue)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 11, 2015, 10:51:23 AM
Currently I get paid with a 1099. Is there any legitimate way to save some $ on social security tax if I change from a schedule C to incorporating myself (LLC or S Corp) and then paying myself a salary with the remainder being a distribution?
I see many people do this. Its a grey area. I say do it with the understanding you one day may have to pat the SS tax. Your no worse off then you are now.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 10:52:44 AM
I see many people do this. Its a grey area. I say do it with the understanding you one day may have to pat the SS tax. Your no worse off then you are now.
penalties and interest add up very quickly
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 11, 2015, 10:55:24 AM
penalties and interest add up very quickly
Its not the type which would incur penalties and interest as i mentioned its a grey area.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 10:56:25 AM
Its not the type which would incur penalties and interest as i mentioned its a grey area.
if they reclass anything you will pay interest, penalties you MAY be able to fight
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 11, 2015, 10:58:19 AM
if they reclass anything you will pay interest, penalties you MAY be able to fight
Source? I am in the field
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on November 11, 2015, 11:02:37 AM
New question: The HR guy at work tells me it's no longer possible to have my insurance paid pretax unless I'm getting insurance through my employer. Because my insurance is through the exchange, I'm ineligible.

Can anyone confirm or deny?
I believe if your employer offers a qualifying plan your not allowed to go through the exchange.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 11:06:16 AM
Source? I am in the field
experience
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 11:11:20 AM
New question: The HR guy at work tells me it's no longer possible to have my insurance paid pretax unless I'm getting insurance through my employer. Because my insurance is through the exchange, I'm ineligible.

Can anyone confirm or deny?
There are a couple reasons for this, the main one being that section 105 medical reimbursements have been made now "illegal" , an unintended consequence of obamacare and subject to a $100 a day penalty
https://www.calt.iastate.edu/article/updated-health-reimbursement-plans-not-compliant-aca-could-mean-exorbitant-penalties
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 11:46:42 AM
Currently I get paid with a 1099. Is there any legitimate way to save some $ on social security tax if I change from a schedule C to incorporating myself (LLC or S Corp) and then paying myself a salary with the remainder being a distribution?
Your question is beyond the scope of a ddf discussion. Your question depends on many factors.
Don't save the money for a good consultation.
You may save by incorporating but if it's not done correctly it could cost you big time.
I have seen so many ceases where the IRS reclassified and cases that where set up wrongly and the owner over paid. So don't save now on the accounting fee and set it up correctly by getting professional advice.

Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 11:51:22 AM
Anyone knofw what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?
You will pay the NJ tax rate and stop paying NYS & NYC rate
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 12:02:41 PM
Your question is beyond the scope of a ddf discussion. Your question depends on many factors.
Don't save the money for a good consultation.
You may save by incorporating but if it's not done correctly it could cost you big time.
I have seen so many ceases where the IRS reclassified and cases that where set up wrongly and the owner over paid. So don't save now on the accounting fee and set it up correctly by getting professional advice.
+10000
Title: Re: any accountants out there that i can ask a question?
Post by: yr on November 11, 2015, 02:36:31 PM
You will pay the NJ tax rate and stop paying NYS & NYC rate

Is NJ lower than the NYS?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on November 11, 2015, 03:06:13 PM
Is NJ lower than the NYS?
Your google broken?  ;

http://www.adp.com/tools-and-resources/compliance-connection/state-taxes/2015-fast-wage-and-tax-facts.aspx
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 03:14:16 PM
Anyone know what the tax implications would be for moving from NYC to anywhere in NJ if my job is in NJ?
In some rare cases you may also qualify for moveing credit or some deductions. Speak to a CPA.
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:15:35 PM
IMHO if you're an S corp technically you could take a distribution fica free.

But you can't be an active employee of the corp and take your salary as a distribution. Unless you think the IRS was born yesterday...
You could take a partial salary and partial distribution.


See here https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html

Disclaimer:
I don't do taxes..
All opinions my own. <img src="http://s3.amazonaws.com/tapatalk-emoji/emoji4.png" />

Thanks for sharing. When mentioning this to may accountant he advised that this may be legitimate only for certain types of businesses. For instance, someone who buys and sells goods as a sole proprietor can create an S corp and take some earnings/profit as a salary and some as a distribution. The grey area there is what percentage is reasonable to take as salary. In my case though, where I earn "commissions" for "services" provided, by definition all of that income is subject to SS as its essentially considered "wages" and nor "business profit" or "capital gains"
What do you think?
Is this true?
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:17:27 PM
if the money is paid to the s-corp there would be no 1099
your spouse can own the s-corp and pay you any salary
Plus then you could use the s-corp to pay health insurance (if that was an issue)
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:19:14 PM
I see many people do this. Its a grey area. I say do it with the understanding you one day may have to pat the SS tax. Your no worse off then you are now.
Why not? won't I be subject to years of interest (potentially high rates) and penalties?
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:20:44 PM
if the money is paid to the s-corp there would be no 1099
your spouse can own the s-corp and pay you any salary
Plus then you could use the s-corp to pay health insurance (if that was an issue)
Any reason to make my wife the owner?
From here it would seem that there would be no added benefit:

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 03:23:10 PM
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative
Why do you "believe"?
Just look up if a sub chapter S Corp can buy insurance to a 100% share holder and you will see very clear what the rule is.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 03:25:06 PM
Let me make it easier for you. Look for the instructions of form 1120S.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 03:25:37 PM
I don't believe we would be eligible to buy a company insurance policy unless we hired someone who's a non-relative
depends on the Insurance company, and possibly even buy on the exchange
the real winner would be if the other spouse gets a plan through their job and only they are covered so the s-corp could do a section 105 medical reimbursement to pay the difference
one employee (owner) owned companies are exempt from the new $100 a day penalty on medical reimb.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 03:28:28 PM
Any reason to make my wife the owner?
From here it would seem that there would be no added benefit:

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/How-an-S-Corp-Can-Reduce-Your-Self-Employment-Taxes/INF22938.html
the wife owner idea would actually work in an LLC better, but even for an S-corp the IRS looks at a reasonable salary, if SHE isn;t working then she doesn;t need as reasonable a salary as he would, possibly
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 03:29:40 PM
Why not? won't I be subject to years of interest (potentially high rates) and penalties?
Plus paying someone to represent you in front of the IRS.
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:32:35 PM
Why do you "believe"?
Just look up if a sub chapter S Corp can buy insurance to a 100% share holder and you will see very clear what the rule is.
I'm relying on the expertise of 2 insurance brokers. If the info they gave is inaccurate many people will be in trouble for many reasons
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:37:45 PM
depends on the Insurance company, and possibly even buy on the exchange
the real winner would be if the other spouse gets a plan through their job and only they are covered so the s-corp could do a section 105 medical reimbursement to pay the difference
one employee (owner) owned companies are exempt from the new $100 a day penalty on medical reimb.
To clarify what I was saying: I'm not referring to buying a "personal" policy and do a section 105 medical reimbursement for the company. I'm talking about a "business insurance plan" which seem to have better coverage for a better price. Thats what the brokers said you need 2 unrelated members to be eligible for...
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:38:12 PM
Let me make it easier for you. Look for the instructions of form 1120S.
I looked and still unsure..
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:40:07 PM
the wife owner idea would actually work in an LLC better, but even for an S-corp the IRS looks at a reasonable salary, if SHE isn;t working then she doesn;t need as reasonable a salary as he would, possibly
Do you know from experience or just speculating?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on November 11, 2015, 03:43:11 PM
I'm relying on the expertise of 2 insurance brokers. If the info they gave is inaccurate many people will be in trouble for many reasons

If you take tax advice from an insurance sales man and are proud with it then.....
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:48:45 PM
If you take tax advice from an insurance sales man and are proud with it then.....
Huh?
How is that tax advice?
To know whether or not a company is eligible for certain types of insurance...
You're definitely mistaken
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 03:52:49 PM
the wife owner idea would actually work in an LLC better, but even for an S-corp the IRS looks at a reasonable salary, if SHE isn;t working then she doesn;t need as reasonable a salary as he would, possibly
My accountant said that an LLC won't work if I want to have a payroll
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 04:41:42 PM
My accountant said that an LLC won't work if I want to have a payroll
If both the husband and wife are the 2 mmebers of the LLC that would be correct
if its a SMLLC or there is another owner then the non-owner spouse could be on salary (and the non working spouse member wouldn;t pay s/e tax on the income )
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 04:42:57 PM
Do you know from experience or just speculating?
a little of both, :D more the former
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 11, 2015, 05:08:04 PM
If both the husband and wife are the 2 mmebers of the LLC that would be correct
if its a SMLLC or there is another owner then the non-owner spouse could be on salary (and the non working spouse member wouldn;t pay s/e tax on the income )
Makes sense, dilemma is that the only person  would consider making owner is spouse
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2015, 05:58:26 PM
Makes sense, dilemma is that the only person  would consider making owner is spouse
in a single member LLC one spouse would own and the other would work and get a paycheck
Title: Re: any accountants out there that i can ask a question?
Post by: henche on November 12, 2015, 12:24:24 AM
in a single member LLC one spouse would own and the other would work and get a paycheck

separate property or community property state?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 12, 2015, 11:45:26 AM
for sure separate, i'm not sure about community property 
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 24, 2015, 08:31:17 PM
Is it a bad career move to leave public accounting after 1.5 years?

For example moving to a frum type of business at a slight salary increase.
Title: Re: any accountants out there that i can ask a question?
Post by: henche on November 24, 2015, 08:38:56 PM
Is it a bad career move to leave public accounting after 1.5 years?

For example moving to a frum type of business at a slight salary increase.

question is if you'll be stuck at a junior in house level forever.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 24, 2015, 10:40:05 PM
question is if you'll be stuck at a junior in house level forever.
I'm an accountant but its not like I could never do anything else.. I would hope to be able to advance laterally or move to another place..

 I have no plans to stay public very long term anyway. The question is whether there really is a long term benefit to staying in public 2.5-3.5 years? - As far as "learning the industry" is concerned I know that 1.5 years is more than enough. I just can't seem to justify being a slave for another few years only to "build the resume"
Title: Re: any accountants out there that i can ask a question?
Post by: henche on November 25, 2015, 12:55:05 AM
I'm an accountant but its not like I could never do anything else.. I would hope to be able to advance laterally or move to another place..

 I have no plans to stay public very long term anyway. The question is whether there really is a long term benefit to staying in public 2.5-3.5 years? - As far as "learning the industry" is concerned I know that 1.5 years is more than enough. I just can't seem to justify being a slave for another few years only to "build the resume"

I dunno much about accountants, but tax lawyers have exprssed to me that if you move in house too early, you get a junior in house position and then never move up.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on November 25, 2015, 01:00:29 AM
Keep in mind, you learn a lot on public. Once you go private, you are doing more repetitive tasks with little variance to the type or complexity. That makes it harder to 'move up the ladder' in private as you aren't learning much.

My impression is that those who stick it out a few more years in public are able to enter the private market at a miuch higher level as the years they've spent are highly valued.

This may all be more relevant to a corporate accounting role. less so to a local tax firm.
Title: any accountants out there that i can ask a question?
Post by: Am on November 25, 2015, 02:49:19 AM
I want to sell off a lot of stock. iirc, if one has too much capital gains in one year it makes them ineligible for the earned income credit.
Is that true?
What is the amount?
(And is there a way around this?)
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on November 25, 2015, 02:58:32 AM
I want to sell off a lot of stock. iirc, if one has too much capital gains in one year it makes them ineligible for the earned income credit.
Is that true?
What is the amount?
(And is there a way around this?)
If you earn more than $3,350 in a year in Net  Investment Income you lose eligibility for the EIC.

The only way to sell the stocks would be to either sell of part in one year and part in the next etc to  reduce the amount earned, or to determine if your losses in other portfolios negate some of the earnings on this stock.
Title: Re: any accountants out there that i can ask a question?
Post by: Yammer on November 25, 2015, 05:14:27 AM
If you earn more than $3,350 in a year in Net  Investment Income you lose eligibility for the EIC.

The only way to sell the stocks would be to either sell of part in one year and part in the next etc to  reduce the amount earned, or to determine if your losses in other portfolios negate some of the earnings on this stock.
Would that be the case for both Federal and NYS Credits?

And is there any deduction if you earned FE $2000?
Title: Re: any accountants out there that i can ask a question?
Post by: Sport on November 25, 2015, 07:12:56 AM
I'm going to be itemizing this year for the first time. Other than mortgage interest and charitable donations, what am I able to deduct ?
Title: Re: any accountants out there that i can ask a question?
Post by: henche on November 25, 2015, 07:34:14 AM
I'm going to be itemizing this year for the first time. Other than mortgage interest and charitable donations, what am I able to deduct ?

I think the othwr biggie is state income tax?
Title: Re: any accountants out there that i can ask a question?
Post by: Sport on November 25, 2015, 07:39:54 AM
I think the othwr biggie is state income tax?
Yeah I just saw that. I also saw that property taxes can be deducted, does that include school taxes ?  What about work related expenses ?  Someone told me they're also deductible, if that's true whats considered "workb related" traveling ? Parking?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 25, 2015, 07:51:01 AM
Yeah I just saw that. I also saw that property taxes can be deducted, does that include school taxes ?  What about work related expenses ?  Someone told me they're also deductible, if that's true whats considered "workb related" traveling ? Parking?
Iirc it probably does not include school taxes  if they are separately assessed and are for a specific purpose.

Work related expense, are you an employee or business owner?
Title: Re: any accountants out there that i can ask a question?
Post by: Sport on November 25, 2015, 07:54:02 AM


Iirc it probably does not include school taxes  if they are separately assessed and are for a specific purpose.

Work related expense, are you an employee or business owner?

What do you mean by "for a specific purpose"?
I'm an Employee.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 25, 2015, 08:02:01 AM
I'm going to be itemizing this year for the first time. Other than mortgage interest and charitable donations, what am I able to deduct ?
Maybe heath insurance premiums that exceed 10% of income. - if paid with after tax dollars
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on November 25, 2015, 09:25:35 AM

Look at the schedule A  (https://www.irs.gov/pub/irs-pdf/f1040sa.pdf) form.
medical - can only deduct if your expenses are more than 10% of your (adjusted gross) income.
taxes paid -
mortgage interest -
charity -
Casualty and theft Losses -
job expenses that are more than 2% of income -


There are instructions (https://www.irs.gov/pub/irs-pdf/i1040sca.pdf) that list the types of expenses that qualify.
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on November 25, 2015, 10:16:02 AM
This one is not as relevant because most people already cover it through dependent care FSA, but you can also deduct child care expenses. Obviously that doesn't apply to an off-the-books babysitter. But it does apply to nursery, preschool, etc for children younger than kindergarten age, and to before/after school care and summer camp for kids under 13.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 25, 2015, 10:28:25 AM

What do you mean by "for a specific purpose"?


Actually they might be OK.. See this from pub 530

Quote
Most state and local governments charge an annual tax on the value of real property. This is called a real estate tax. You can deduct the tax if it is assessed uniformly at a like rate on all real property throughout the community. The proceeds must be for general community or governmental purposes and not be a payment for a special privilege granted or service rendered to you.

Deductible Real Estate Taxes

.



Items You Cannot Deduct as Real Estate Taxes

The following items are not deductible as real estate taxes.

Charges for services.   An itemized charge for services to specific property or people is not a tax, even if the charge is paid to the taxing authority. You cannot deduct the charge as a real estate tax if it is:

A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use),

A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection), or

A flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance).
Title: Re: any accountants out there that i can ask a question?
Post by: Sport on November 25, 2015, 10:30:37 AM
Actually they might be OK.. See this from pub 530
Thanks, that would make a big diffrence,   my school taxes are like 85% of my property tax.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 25, 2015, 10:52:29 AM
Thanks, that would make a big diffrence,   my school taxes are like 85% of my property tax.
But I would ask a local CPA to be sure...
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 25, 2015, 11:11:37 AM
I want to sell off a lot of stock. iirc, if one has too much capital gains in one year it makes them ineligible for the earned income credit.
Is that true?
What is the amount?
(And is there a way around this?)
You can give the income to someone else and they will pay the tax on it which on a federal level should be 0 unless you are making over 70k and on state level will be a few bucks. Obviously you can pay the person the tax he has to pay. There is a form you fill out by Feb and send it to the IRS. Alot of accountants say to not send out the form and just do it without. I am talking from personal experience.
Title: Re: any accountants out there that i can ask a question?
Post by: Am on November 25, 2015, 11:17:55 AM
How would I give the income to someone else when the buy and sell was under my name?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on November 25, 2015, 11:19:43 AM
How would I give the income to someone else when the buy and sell was under my name?
It is supposed to be impossible to assign income.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on November 25, 2015, 11:28:45 AM
How would I give the income to someone else when the buy and sell was under my name?

Open a business, run it through there.. Give them a 1099
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on November 25, 2015, 11:30:48 AM
How would I give the income to someone else when the buy and sell was under my name?
Before they're sold, gift the shares to someone else. He will assume your basis and will receive the gain when it's sold.

Be aware of possible gift tax ramifications although there's a $14,000 per person exclusion and 5.4 Mil lifetime exclusion...
Title: any accountants out there that i can ask a question?
Post by: Am on November 25, 2015, 01:51:07 PM
Open a business, run it through there.. Give them a 1099
It's very difficult to open a business brokerage account. Schwab told me that there is a ton of regulation so they only allow high net worth clients do it. Or If I have a personal relationship with a Schwab banker maybe they would do it for me.
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on November 25, 2015, 03:09:10 PM
Before they're sold, gift the shares to someone else. He will assume your basis and will receive the gain when it's sold.

Be aware of possible gift tax ramifications although there's a $14,000 per person exclusion and 5.4 Mil lifetime exclusion...

or donate to charity :)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 25, 2015, 08:00:19 PM
How would I give the income to someone else when the buy and sell was under my name?
I believe form 1096 is the correct form. Again i am talking from experience as i personally did this. I will look later to make sure this is the correct form.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on November 27, 2015, 01:46:51 PM
Actually they might be OK.. See this from pub 530

This discussion was very bashert  :D

Just took REG today and luckily I knew about special assessments.

Thanks guys!
Title: Re: any accountants out there that i can ask a question?
Post by: dealvr on November 27, 2015, 01:48:46 PM
This discussion was very bashert  :D

Just took REG today and luckily I knew about special assessments.

Thanks guys!
Good luck. Waiting for scores is brutal.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on November 27, 2015, 03:08:16 PM

Good luck. Waiting for scores is brutal.

It's the worst. Waiting for REG as well. Hopefully my last one.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on November 27, 2015, 03:38:16 PM
It's the worst. Waiting for REG as well. Hopefully my last one.
Same here ☺
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 09, 2015, 02:39:18 PM
Start up business has burnt through 800k in cash from investors mostly in R&D. These are expensed per Gaap.

How do I create a BS that will balance? Do they have negative equity?
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on December 09, 2015, 02:54:48 PM

Same here ☺
Done:) how about u?
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on December 09, 2015, 03:00:21 PM
Start up business has burnt through 800k in cash from investors mostly in R&D. These are expensed per Gaap.

How do I create a BS that will balance? Do they have negative equity?

Assuming this is first year operations, if net loss exceeds contributed capital then yes, there would be negative equity
Title: Re: any accountants out there that i can ask a question?
Post by: henche on December 09, 2015, 03:04:00 PM
Start up business has burnt through 800k in cash from investors mostly in R&D. These are expensed per Gaap.

How do I create a BS that will balance? Do they have negative equity?

You didn't spend more money than you had.  if you did, you borrowed.
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on December 09, 2015, 03:06:14 PM
You didn't spend more money than you had.  if you did, you borrowed.

Which would still result in negative equity
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 09, 2015, 04:00:17 PM
You didn't spend more money than you had.  if you did, you borrowed.
I expensed the cash.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 09, 2015, 04:01:54 PM
Assuming this is first year operations, if net loss exceeds contributed capital then yes, there would be negative equity
So it's called negative capital? Looks ugly....
Can it be negative retained earnings? Or is that for future years?
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on December 09, 2015, 04:11:12 PM
So it's called negative capital? Looks ugly....
Can it be negative retained earnings? Or is that for future years?


I believe you can show it as follows:

Members' Equity            $(Contributed Capital Amount)
Accumulated Deficit       $(Net Loss)
Total Members' Deficit   $ (Net Total)

THis is assuming guidance hasn't changed - I haven't looked at a start-up in a while.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 09, 2015, 04:40:28 PM
I believe you can show it as follows:

Members' Equity            $(Contributed Capital Amount)
Accumulated Deficit       $(Net Loss)
Total Members' Deficit   $ (Net Total)

THis is assuming guidance hasn't changed - I haven't looked at a start-up in a while.
That's better :) thanks
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on December 09, 2015, 06:37:29 PM
Done:) how about u?
Mazal Tov!

Yes b"h
Title: Re: any accountants out there that i can ask a question?
Post by: Medic97 on December 14, 2015, 02:07:49 AM
If anyone can help with this is greatly appreciate it.

If my wife and I work for the same employer, for tax (savings) purposes, should we take separate pay checks or is it better to have it under one income only?

Also does anyone know where I can find a comprehensive list of what is included parsonage? And what dangers do I run into if I don't declare it at all?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 14, 2015, 06:58:27 AM
If anyone can help with this is greatly appreciate it.

If my wife and I work for the same employer, for tax (savings) purposes, should we take separate pay checks or is it better to have it under one income only?

Also does anyone know where I can find a comprehensive list of what is included parsonage? And what dangers do I run into if I don't declare it at all?
You pay SS tax on 6.2% of earnings up to $118500.
So if combined salary is greater... But I wouldn't do this.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 14, 2015, 08:55:22 AM
If anyone can help with this is greatly appreciate it.

If my wife and I work for the same employer, for tax (savings) purposes, should we take separate pay checks or is it better to have it under one income only?
Tax avoidance is legal, tax evasion is illegal. If both of you work and one draws a double salary, any tax savings would be tax evasion. I've heard that the food in Otisville isn't too bad though!
Title: Re: any accountants out there that i can ask a question?
Post by: henche on December 14, 2015, 09:00:59 AM
Tax avoidance is legal, tax evasion is illegal. If both of you work and one draws a double salary, any tax savings would be tax evasion. I've heard that the food in Otisville isn't too bad though!

And you'd likely be messing yourselves up for unemployment and all sorts of stuff.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 14, 2015, 09:41:04 AM
And you'd likely be messing yourselves up for unemployment and all sorts of stuff.
And SS benefits
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on December 24, 2015, 09:28:21 AM
I need to open a new LLC, any reason to wait for 1/1 so I don't have to file taxes for 2015 on this LLC? Or is now close enough to '16 that I don't have to file for '15 anyhow?


TIA
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on December 24, 2015, 10:22:23 AM
Technically,  you need to pay taxes either way.  Perhaps you can save on the llc fee/return,  depending on the state...
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on December 24, 2015, 03:21:02 PM
Technically,  you need to pay taxes either way.  Perhaps you can save on the llc fee/return,  depending on the state...
Don't need to pay taxes yet, the business has not started yet. It's will be a NJ LLC.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on December 24, 2015, 03:42:14 PM
Don't need to pay taxes yet, the business has not started yet. It's will be a NJ LLC.
Some states make you pay an llc fee every year regardless of activity
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 24, 2015, 03:52:16 PM
Some states make you pay an llc fee every year regardless of activity
including NJ
150 per partner unless there is only two
in which case it would make very little difference if you file now (you;d file a zero return for State and Fed)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 24, 2015, 03:57:50 PM
including NJ
150 per partner unless there is only two
in which case it would make very little difference if you file now (you;d file a zero return for State and Fed)
But not calendar year. LLC anniversary
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 24, 2015, 03:59:47 PM
But not calendar year. LLC anniversary
-1
you;re thinking of annual report
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 24, 2015, 04:00:49 PM
-1
you;re thinking of annual report
So the 150 is on the tr?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 24, 2015, 04:13:20 PM
So the 150 is on the tr?
NJ Part-100
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 24, 2015, 08:31:52 PM
If this is my first year getting paid on a 1099 and i will owe money bh, can i make the payment now and avoid paying quarterly next year?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 24, 2015, 08:46:14 PM
If this is my first year getting paid on a 1099 and i will owe money bh, can i make the payment now and avoid paying quarterly next year?
Make payment now for what time period? To avoid paying quarterly when?

As a first time rain maker you have it easy. To comply with the IRS Regulations you need to pay quarterly to make sure you don't go the whole year owing money and only pay up at the end. Thing is  -how does one know how much their annual amount will be???   The halacha is that you can be yotzei making payments by paying at least 100% of what you owed last year (or 100% of what you owe this year - whichever is smaller) For a business that owed $20K last year they need to make quarterly payments of at least  5K. Even if they end up owing 100K this year and at year end quickly kick in the rest, they won't have a penalty since they covered at least 100% of last year.

Therefore in your case, even if you made minimal quarterly (or possibly even none?) the first year you may not have a penalty since you fulfilled 100% of last year.

Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 24, 2015, 08:53:09 PM
Make payment now for what time period? To avoid paying quarterly when?

As a first time rain maker you have it easy. To comply with the IRS Regulations you need to pay quarterly to make sure you don't go the whole year owing money and only pay up at the end. Thing is  -how does one know how much their annual amount will be???   The halacha is that you can be yotzei making payments by paying at least 100% of what you owed last year (or 100% of what you owe this year - whichever is smaller) For a business that owed $20K last year they need to make quarterly payments of at least  5K. Even if they end up owing 100K this year and at year end quickly kick in the rest, they won't have a penalty since they covered at least 100% of last year.

Therefore in your case, even if you made minimal quarterly (or possibly even none?) the first year you may not have a penalty since you fulfilled 100% of last year.


Correct- i am asking if i want to avoid paying quarterly next year (2016) can i make the full payment now of what i owe for 2015 and avoid paying until end of 2016 when i know how much i made.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on December 24, 2015, 09:16:51 PM

Make payment now for what time period? To avoid paying quarterly when?

As a first time rain maker you have it easy. To comply with the IRS Regulations you need to pay quarterly to make sure you don't go the whole year owing money and only pay up at the end. Thing is  -how does one know how much their annual amount will be???   The halacha is that you can be yotzei making payments by paying at least 100% of what you owed last year (or 100% of what you owe this year - whichever is smaller) For a business that owed $20K last year they need to make quarterly payments of at least  5K. Even if they end up owing 100K this year and at year end quickly kick in the rest, they won't have a penalty since they covered at least 100% of last year.

Therefore in your case, even if you made minimal quarterly (or possibly even none?) the first year you may not have a penalty since you fulfilled 100% of last year.
Cmiiw but doesn't safe harbor only apply if you filed last year?
Also, only need 90% of current year...
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 24, 2015, 09:19:20 PM
Correct, I meant to say 90% of current year and yes I do believe you need to have filed at least something in the year before.

All this being said, I'm not really sure I understand the question. Are you saying exactly this, that you want to file and pay whatever minimal taxes you owe for 2015, and therefore not have to pay much if anything during the quarters of 2016?
Title: Re: any accountants out there that i can ask a question?
Post by: Josef.koney on December 24, 2015, 09:31:47 PM
I'm a bucher in America (my father works in Canada) and would like to know when I have to start worrying and about what.
A. Do I have to file if I'm making minimal amounts of money?
What is called minimal?
B. If I don't, What about if the bank sends a 1099 (no clue what that is but it's all over threads with opening banks) does that affect me at all? Does that make me have to file now?
C. Does it make a dif what Info I give to cc companies (if I say I make 30k could that give me probs with the irs or since I don't really make that I have to problem...)
Thank you so much in advance!
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 24, 2015, 10:58:54 PM
I'm a bucher in America (my father works in Canada) and would like to know when I have to start worrying and about what.
A. Do I have to file if I'm making minimal amounts of money?
What is called minimal?
B. If I don't, What about if the bank sends a 1099 (no clue what that is but it's all over threads with opening banks) does that affect me at all? Does that make me have to file now?
C. Does it make a dif what Info I give to cc companies (if I say I make 30k could that give me probs with the irs or since I don't really make that I have to problem...)
Thank you so much in advance!
If you earn money running your own jobs (as opposed to being a salaried employee) you need to file if you earn above $400.
If its a salary then up to ~10k.


Are you a claimed on your father's us tax return?
Title: Re: any accountants out there that i can ask a question?
Post by: Josef.koney on December 24, 2015, 11:03:21 PM
If you earn money running your own jobs (as opposed to being a salaried employee) you need to file if you earn above $400.
If its a salary then up to ~10k.


Are you a claimed on your father's us tax return?
O my! So they expect every kid to file? You mean does he file for me? Ill have to ask...
Title: Re: any accountants out there that i can ask a question?
Post by: thaber on December 24, 2015, 11:07:18 PM
I need to open a new LLC, any reason to wait for 1/1 so I don't have to file taxes for 2015 on this LLC? Or is now close enough to '16 that I don't have to file for '15 anyhow?


TIA
I know that in my state after 12/15 you don't need to pay the current year Llc fee.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 24, 2015, 11:08:19 PM
O my! So they expect every kid to file? You mean does he file for me? Ill have to ask...
I mean that you are listed as a dependant.


Ask someone to else to confirm.  I haven't looked at this stuff in a while
Title: Re: any accountants out there that i can ask a question?
Post by: Josef.koney on December 24, 2015, 11:36:34 PM
I mean that you are listed as a dependant.


Ask someone to else to confirm.  I haven't looked at this stuff in a while
If im a dependant what does that change?  (From what you remember...)
Title: Re: any accountants out there that i can ask a question?
Post by: terrificreport on December 24, 2015, 11:58:06 PM
UTMA question.

If the custodian who is also the donor dies, UTMA assets will then be included in the decedent's estate for tax purposes. Nothing accomplished, if the intent - of the UTMA - was to take advantage of the annual gift amounts.

Please let me know if this is true as it seems this is pretty clear - I am wondering if I a missing something.

Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on December 25, 2015, 12:12:59 AM
I know that in my state after 12/15 you don't need to pay the current year Llc fee.
which state is that? NJ?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 25, 2015, 12:31:25 AM
Correct, I meant to say 90% of current year and yes I do believe you need to have filed at least something in the year before.

All this being said, I'm not really sure I understand the question. Are you saying exactly this, that you want to file and pay whatever minimal taxes you owe for 2015, and therefore not have to pay much if anything during the quarters of 2016?
My question is the following. In the past years i got paid on a W-2. This is my first year (2015) getting paid on a 1099. I ran my numbers and i see i will owe alot of money (well above the $1,500 threshold). If i make the over payment to the IRS today lets say- will i still be obligated to pay quarterly 2016 or am i exempt because i did not owe the $1500 by 4/15 which would require me to pay quarterly?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 25, 2015, 12:38:06 AM
My question is the following. In the past years i got paid on a W-2. This is my first year (2015) getting paid on a 1099. I ran my numbers and i see i will owe alot of money (well above the $1,500 threshold). If i make the over payment to the IRS today lets say- will i still be obligated to pay quarterly 2016 or am i exempt because i did not owe the $1500 by 4/15 which would require me to pay quarterly?
Still not positive why you're asking but if you paid taxes for tax year 2015 of $4,000 for example, whether you paid it in January 2015 or April 2016, it was paid for tax year 2015 and therefore in 2016 (assuming you make that much or more) you'd have to make quarterly payments of at least 1K
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 25, 2015, 12:46:55 AM
Still not positive why you're asking but if you paid taxes for tax year 2015 of $4,000 for example, whether you paid it in January 2015 or April 2016, it was paid for tax year 2015 and therefore in 2016 (assuming you make that much or more) you'd have to make quarterly payments of at least 1K
i am trying to avoid making quarterly payments for 2016. I did not make any payments YET for 2015 as i was not obligated. To my understanding- i will be obligated to make quarterly payments IF i owe $1500 or more on -----What date---- ?
Title: Re: any accountants out there that i can ask a question?
Post by: thaber on December 25, 2015, 12:56:11 AM
which state is that? NJ?
CA
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 25, 2015, 12:58:51 AM
i am trying to avoid making quarterly payments for 2016. I did not make any payments YET for 2015 as i was not obligated. To my understanding- i will be obligated to make quarterly payments IF i owe $1500 or more on -----What date---- ?
IF i owe $1500 or more FOR tax year 2015. Paying now won't help you.

My advice is worth what you paid for it. Although I am a CPA, I am an auditor, not a tax guy. See below disclaimer.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on December 25, 2015, 01:00:37 AM

Any tax advice in this e-mail should be considered in the context of the tax services we are providing to you. Preliminary tax advice should not be relied upon and may be insufficient for penalty protection.

PRIVILEGED AND CONFIDENTIAL
This communication and any accompanying documents are confidential and privileged. They are intended for the sole use of the addressee. If you receive this transmission in error, you are advised that any disclosure, copying, distribution, or the taking of any action in reliance upon this communication is strictly prohibited. Moreover, any such disclosure shall not compromise or waive the attorney-client, accountant-client, or other privileges as to this communication or otherwise. If you have received this communication in error, please contact me at the above email address. Thank you.

Disclaimer
Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, (Firm) would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.

________________________________________________________________________
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 25, 2015, 10:04:07 AM
ty for you advice. I am actually a X tax accountant. This question i have asked may people and noone really ever thought about it so....
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on December 27, 2015, 01:57:52 AM
If this is my first year getting paid on a 1099 and i will owe money bh, can i make the payment now and avoid paying quarterly next year?
One more point to consider, is for state tax,  you may want to pay in the year that the deduction will benefit you more,  if any
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on December 27, 2015, 09:40:21 AM
One more point to consider, is for state tax,  you may want to pay in the year that the deduction will benefit you more,  if any
I am not on a schedule A if that is what you mean, so that will not help. ty
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on December 27, 2015, 09:49:36 AM
I am not on a schedule A if that is what you mean, so that will not help. ty
Correct,  only help if you are itemizing deductions
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on December 28, 2015, 09:15:31 PM
The NY 529 plan college savings account. I just want to check that I understand correctly.
I ask them to send me money from my account that will reimburse me for 'qualified' education expenses. I need the receipts of those expenses.  But does the plan ask for them? Do I have to file it with my tax return?
How far back can I get reimbursement?  Do I need to ask for 2015 reimbursement while it's still 2015?
thanks


Title: Re: any accountants out there that i can ask a question?
Post by: pixi on December 29, 2015, 01:49:34 PM
anyone has any idea how to avoid paying transfer tax when selling  a property  , respond or  PM  me . thanks
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on December 29, 2015, 09:02:48 PM
The NY 529 plan college savings account. ....
I called the NY 529 plan.  I got an American, knowledgeable person after only a short phone tree. (pause here to reread the previous sentence.)
Changing a beneficiary is easy and quick. Next business day.
Withdrawals must be made in the same year as the education spending.  It takes a few days for the withdrawal to go through.  I can withdraw the money to my bank account to reimburse me for education related expenses I paid.
Title: Re: any accountants out there that i can ask a question?
Post by: world2see on December 30, 2015, 03:53:52 PM
Random Question: If I work in NJ, am I better off having my legal residence in NJ or NY?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 30, 2015, 04:12:56 PM
Taxwise, NJ (mostlikely even with credits etc.)
Title: Re: any accountants out there that i can ask a question?
Post by: world2see on December 30, 2015, 04:27:15 PM
Thank you!
Any links I can research that from?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 30, 2015, 04:35:31 PM
Thank you!
Any links I can research that from?
https://www.quora.com/If-you-work-in-New-York-City-will-you-pay-less-total-taxes-by-living-in-NYC-or-NJ
Title: Re: any accountants out there that i can ask a question?
Post by: world2see on December 30, 2015, 04:53:38 PM
Thank you!!!
Title: Re: any accountants out there that i can ask a question?
Post by: world2see on December 30, 2015, 04:57:09 PM
Based on link seems like only advantageous if your living in New York City, not necessarily in NY State
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 30, 2015, 05:43:57 PM
Based on link seems like only advantageous if your living in New York City, not necessarily in NY State
Possibly as the NJ state rate is higher then NY state tax rate in certain brackets (over 500k )
here are the married 2015 rates
NJ
 0+   1.40%
$20,000+   1.75%
$70,000+   3.50%
$80,000+   5.53%
$150,000+   6.37%
$500,000+   8.97%

NY
$0+   4.00%
$16,450+   4.50%
$22,600+   5.25%
$26,750+   5.90%
$41,150+   6.45%
$154,350+   6.65%
$308,750+   6.85%
$2,058,550+   8.82%
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on December 30, 2015, 05:48:50 PM
Possibly as the NJ state rate is higher then NY state tax rate in certain brackets (over 500k )
here are the married 2015 rates
NJ
 0+   1.40%
$20,000+   1.75%
$70,000+   3.50%
$80,000+   5.53%
$150,000+   6.37%
$500,000+   8.97%

NY
$0+   4.00%
$16,450+   4.50%
$22,600+   5.25%
$26,750+   5.90%
$41,150+   6.45%
$154,350+   6.65%
$308,750+   6.85%
$2,058,550+   8.82%


Also - keep in mind that NJ property taxes are significantly higher than NY and there are also alot more allowable deductions to Gross Income in NY than in NJ (insurance premiums, transit benefits, etc)
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on December 30, 2015, 06:13:20 PM
Also - keep in mind that NJ property taxes are significantly higher than NY and there are also alot more allowable deductions to Gross Income in NY than in NJ (insurance premiums, transit benefits, etc)
i would hope that a decision where to actually live is not based on a tax rate
besides, thats only in the city again (prop tax) taxes in 5 towns and monsey are comparable if not more then Lakewood etc and the house cost more in NY
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on December 30, 2015, 07:47:18 PM
Real estate tax is a very important consideration in where to buy a house
Title: Re: any accountants out there that i can ask a question?
Post by: world2see on December 30, 2015, 07:56:52 PM
I was asking strictly from an income perspective. Currently working in NJ,living in NY, where would I be better off tax wise,(considering that taxes are deducted currently from both states at different rates)obviously there are many different variables that differ between states. I'm sure no 2 scenarios are alike and different calculations are at play based on each persons unique situation. :)
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 07, 2016, 09:05:50 AM
Can I give myself fridge benefits such as flex spending and commuter benefits as the sole employee of my entity?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 07, 2016, 09:47:36 AM
Can I give myself fridge benefits such as flex spending and commuter benefits as the sole employee of my entity?
No :(

For medical, if you have a high deductible plan look into an Archer MSA
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 07, 2016, 09:56:50 AM
Can I give myself friNge benefits such as flex spending and commuter benefits as the sole employee of my entity?
if it's an s-corp maybe
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 07, 2016, 11:23:36 AM
No :(

For medical, if you have a high deductible plan look into an Archer MSA

if it's an s-corp maybe

Thanks...stupid auto correct
It's a PLLC
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 07, 2016, 11:33:35 AM
Thanks...stupid auto correct
It's a PLLC
Then you're not an employee
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 07, 2016, 11:41:13 AM
Then you're not an employee

DW can be  :D
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 07, 2016, 11:42:39 AM
DW can be  :D
You thinking Otisville or somewhere warmer?

If she is not, and you put her down as one to pretend that your expenses were incurred by her  -I won't donate to your pidyon shvuyim campaign
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 07, 2016, 11:52:06 AM
You thinking Otisville or somewhere warmer?

If she is not, and you put her down as one to pretend that your expenses were incurred by her  -I won't donate to your pidyon shvuyim campaign
puhlease, thats not going to send anyone to jail
you can switch her to owner and you can be the employee
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 07, 2016, 11:56:02 AM
puhlease, thats not going to send anyone to jail
you can switch her to owner and you can be the employee

Ya, Tax fraud is no bigee  [/sarcasm font]
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 07, 2016, 12:03:39 PM
You thinking Otisville or somewhere warmer?

If she is not, and you put her down as one to pretend that your expenses were incurred by her  -I won't donate to your pidyon shvuyim campaign

lol...of course i was joking.

so no flex spending for me?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 07, 2016, 12:07:40 PM
lol...of course i was joking.

so no flex spending for me?
Yaya, but you'd be surprised how many people seriously ask me these things with lumdishe explanations (that don't hold water) that they will tell 'them' when questioned. (see the response to my above comment for 1 'creative' solution)

I don't think so.

My advice is worth what you paid for it....
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 07, 2016, 01:18:25 PM
what medical expenses are tax deductable anyway? are co-pays? how about labs?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 07, 2016, 01:42:48 PM
what medical expenses are tax deductable anyway? are co-pays? how about labs?
Deductible medical expenses may include but are not limited to the following:

Payments of fees to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners
Payments for in-patient hospital care or residential nursing home care, if the availability of medical care is the principal reason for being in the nursing home, including the cost of meals and lodging charged by the hospital or nursing home. If the availability of medical care is not the principal reason for residence in the nursing home, the deduction is limited to that part of the cost that is for medical care.
Payments for acupuncture treatments or inpatient treatment at a center for alcohol or drug addiction, for participation in a smoking-cessation program and for drugs to alleviate nicotine withdrawal that require a prescription
Payments to participate in a weight-loss program for a specific disease or diseases diagnosed by a physician, including obesity, but not ordinarily payments for diet food items or the payment of health club dues
Payments for insulin and payments for drugs that require a prescription
Payments made for admission and transportation to a medical conference relating to a chronic disease that you, your spouse, or your dependents have (if the costs are primarily for and essential to necessary medical care). However, you may not deduct the costs for meals and lodging while attending the medical conference
Payments for false teeth, reading or prescription eyeglasses or contact lenses, hearing aids, crutches, wheelchairs, and for guide dogs for the blind or deaf
Payments for transportation primarily for and essential to medical care that qualify as medical expenses, such as payments of the actual fare for a taxi, bus, train, ambulance, or for transportation by personal car, the amount of your actual out-of-pocket expenses such as for gas and oil, or the amount of the standard mileage rate for medical expenses, plus the cost of tolls and parking
Payments for insurance premiums you paid for policies that cover medical care or for a qualified long-term care insurance policy covering qualified long-term care services. However, if you are an employee, do not include in medical expenses the portion of your premiums treated as paid by your employer under its sponsored group accident, health policy, or qualified long-term care insurance policy. Also, do not include the premiums that you paid under your employer-sponsored policy under a premium conversion policy (pre-tax), paid by an employer-sponsored health insurance plan (cafeteria plan) or any other medical and dental expenses unless the premiums are included in box 1 of your Form W-2 (PDF), Wage and Tax Statement. For example, if you are a federal employee participating in the premium conversion program of the Federal Employee Health Benefits (FEHB) program, you may not include the premiums paid for the policy as a medical expense since they are never included in your gross income.
If you are self-employed and have a net profit for the year, you may be eligible for the self-employed health insurance deduction. This is an adjustment to income, rather than an itemized deduction, for premiums you paid on a health insurance policy covering medical care, including a qualified long-term care insurance policy covering medical care, for yourself, your spouse, and dependents. In addition, you may be eligible for this deduction for your child who is under the age of 27 at the end of 2015 even if the child was not your dependent. See Chapter 6 of Publication 535 for eligibility information. If you do not claim 100% of your paid premiums, you can include the remainder with your other medical expenses as an itemized deduction on Form 1040, Schedule A (PDF).

You may deduct as an expense insulin or any medicine or drug that is required to be prescribed. You may not deduct funeral or burial expenses, over-the-counter medicines (i.e., medicines or drugs that are not required to be prescribed), toothpaste, toiletries, cosmetics, a trip or program for the general improvement of your health, or most cosmetic surgery. You may not deduct amounts paid for nicotine gum and nicotine patches that do not require a prescription.

You can only include the medical expenses you paid during the year and you can only use the expenses once on the return. You must reduce your total deductible medical expenses for the year by any reimbursement of deductible medical expenses and expenses used when figuring other credits or deductions. This is true whether you receive the reimbursement directly or it is paid directly to the doctor, hospital, or other medical provider.

To determine whether an expense is deductible, see Can I Deduct My Medical and Dental Expenses? For additional information on medical expenses, including who will qualify as your dependent for purposes of the deduction, how to figure, and how to report the deduction on your return, see IRS Publication 502, Medical and Dental Expenses.
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on January 18, 2016, 12:47:37 PM
so who is reporting their sale of miles/points as income on their tax return?
if yes, as what?

maybe this should be a new thread?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on January 18, 2016, 01:10:42 PM
so who is reporting their sale of miles/points as income on their tax return?
if yes, as what?

maybe this should be a new thread?
Do you have to report cash gifts?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 18, 2016, 01:18:38 PM
Do you have to report cash gifts?
Not if its below certain thresholds. But when you sell something you aren't receiving a gift.

Try explaining that to the IRS....

But Lemaysa it was bietzem a gift. Grada, I gave him a gift back of miles but it mamash had no shaichus
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on January 18, 2016, 01:21:30 PM
so who is reporting their sale of miles/points as income on their tax return?
if yes, as what?

maybe this should be a new thread?
Pretty sure there is a thread or five
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 04:02:40 PM
Pretty sure there is a thread or five
as of now unless you are in the business of buying and selling miles you dont have to report it as it's treated as a rebate
the same way you dont report the $50 gift card you get when you buy a new oven
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on January 18, 2016, 04:51:02 PM
as of now unless you are in the business of buying and selling miles you dont have to report it as it's treated as a rebate
the same way you dont report the $50 gift card you get when you buy a new oven
You mean that if I sell 500k MR to a broker that's a rebate? ?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on January 18, 2016, 04:52:12 PM
as of now unless you are in the business of buying and selling miles you dont have to report it as it's treated as a rebate
the same way you dont report the $50 gift card you get when you buy a new oven
If it is a rebate,  doesn't that reduce your basis?  And then you have income
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 04:53:52 PM
You mean that if I sell 500k MR to a broker that's a rebate? ?
so far
https://www.irs.gov/pub/irs-drop/a-02-18.pdf
now if they see that you earned it by MS or something they could tayna it's a business or not covered under their notice
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 04:54:45 PM
If it is a rebate,  doesn't that reduce your basis?  And then you have income
if you buy something for the business on a personal CC  and then using the miles yourself they are looking the other way
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 18, 2016, 04:56:15 PM
so far
https://www.irs.gov/pub/irs-drop/a-02-18.pdf
now if they see that you earned it by MS or something they could tayna it's a business or not covered under their notice
And signup bonuses?
It's already been discussed, that this letter specifically addresses whether or not earning the miles is a taxable event.

The publication specifically says: This relief does not apply to travel or other promotional benefits that are
converted to cash, to compensation that is paid in the form of travel or other
promotional benefits, or in other circumstances where these benefits are used for
tax avoidance purposes.   
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 04:57:17 PM
if you buy something for the business on a personal CC  and then using the miles yourself they are looking the other way
this guy is cholek on me http://money.usnews.com/money/blogs/my-money/2013/02/04/are-credit-card-cashback-rewards-and-airline-miles-taxable
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 05:00:57 PM
And signup bonuses?
It's already been discussed, that this letter specifically addresses whether or not earning the miles is a taxable event.

The publication specifically says: This relief does not apply to travel or other promotional benefits that are
converted to cash, to compensation that is paid in the form of travel or other
promotional benefits, or in other circumstances where these benefits are used for
tax avoidance purposes.   

Sign up bonuses are covered under the citibank ruling in 2012 http://www.forbes.com/sites/kellyphillipserb/2014/08/28/tax-court-sides-with-irs-in-tax-treatment-of-frequent-flyer-miles-issued-by-citibank/#2715e4857a0b35cfe4095ce5 they were the idiots for issuing a 1099
The svara is that the signup  bonus in the form of miles is a prepaid rebate ? and doesn;t have a stated value (never stopped the IRS or banks before from issuing a totally crazy one)
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on January 18, 2016, 05:42:24 PM
Sign up bonuses are covered under the citibank ruling in 2012 http://www.forbes.com/sites/kellyphillipserb/2014/08/28/tax-court-sides-with-irs-in-tax-treatment-of-frequent-flyer-miles-issued-by-citibank/#2715e4857a0b35cfe4095ce5 they were the idiots for issuing a 1099
The svara is that the signup  bonus in the form of miles is a prepaid rebate ? and doesn;t have a stated value (never stopped the IRS or banks before from issuing a totally crazy one)
didn't grasp the maskana. Do I need to report my sale of over 500k amex points (mainly signup bonuses) or not?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 18, 2016, 05:53:10 PM
didn't grasp the maskana. Do I need to report my sale of over 500k amex points (mainly signup bonuses) or not?
Lfi Aniyas Daati, no, but only if 3 other LOA's agree with my psak
#AYLOA
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 18, 2016, 05:54:08 PM
Lfi Aniyas Daati, no, but only if 3 other LOA's agree with my psak
#AYLOA
If I own something and I sell it for $$, why shouldn't I pay taxes on it? The question could be what my basis is and if I earned a specific basis by receiving it then I'd need to calculate my gain on sale. But why would I flat out not have to pay taxes when selling something for a profit?
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on January 18, 2016, 06:17:33 PM
Here's my thoughts on my question I asked above,

 on one hand it's a profit so it should be reported.

On the other hand, since the IRS ruled that they are considered a rebate, as technically I could have used them as a payment towards my statement.
So it's considered cash. If I sold cash to someone, I shouldn't have to report that.
Am I wrong ?

Maybe, I only have to report the difference in price from the one cent each value to what I actually sold it for.

Thoughts?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on January 18, 2016, 06:33:25 PM
We have to differentiate between miles earned and used (clearly not taxable)  and the subsequent sale of such.  Once you sell and get cash,  you are in a different world.  I can't see how such is not taxable. Perhaps one could argue it's capital gains or such,  but  how can you say it's not taxable at all
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on January 18, 2016, 06:38:03 PM
We have to differentiate between miles earned and used (clearly not taxable)  and the subsequent sale of such.  Once you sell and get cash,  you are in a different world.  I can't see how such is not taxable. Perhaps one could argue it's capital gains or such,  but  how can you say it's not taxable at all
Correct. ,The only way it's not taxable is if your basis in the points is equal to or above selling price. So say you sell the points 100K @ 1.5 and get $1,500. According to the rebate theory, you can possibly say that by spending $10K on my Amex Plat I got a sign up bonus of 100K and it's really a rebate. According to the company that rebate may be worth well above 1.5cpm. So in that case you may have a basis above what you received and you really had a loss by selling for $1,500.

Or do you say that since you got it for free your basis is zero (but thenin that case receiving it should be taxable).

So the rebate explanation MAY give you a high basis.
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on January 18, 2016, 06:44:56 PM
You can't have it both ways.  If you have basis,  it's taxable when you receive the points
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on January 18, 2016, 06:47:58 PM
We have to differentiate between miles earned and used (clearly not taxable)  and the subsequent sale of such.  Once you sell and get cash,  you are in a different world.  I can't see how such is not taxable. Perhaps one could argue it's capital gains or such,  but  how can you say it's not taxable at all
of I received a staples rebate in form of a $100 visa gift card and I sell it for $120, how much would I need to report? All of it, nothing, or $20?
Title: Re: any accountants out there that i can ask a question?
Post by: lunatic on January 18, 2016, 06:52:00 PM
of I received a staples rebate in form of a $100 visa gift card and I sell it for $120, how much would I need to report? All of it, nothing, or $20?
20. But the other 100 would be another issue.  If you kept the original item,  you purchased it for 100 less.  But if you sold the original item,  it's another 100 profit
Title: Re: any accountants out there that i can ask a question?
Post by: Zevi16 on January 24, 2016, 06:30:19 PM
If I have a rental agency business. It focuses on renting out people's apartments that live in Israel to renters that usually live in America. We take commission from both parties. Could I just make it legal in USA and pay taxes in USA,  or must it be legal as well under Israeli laws?
Another question, is there any specific licence needed in America for this kind of job like regular real estate? All I am is an agent /shadchan.
Thanx
Title: Re: any accountants out there that i can ask a question?
Post by: CS91 on February 02, 2016, 02:39:00 PM
If I was a PA resident for the entire 2015 but I worked in NY, do I need to file a NY State return too, or just PA?
Title: Re: any accountants out there that i can ask a question?
Post by: mod on February 02, 2016, 03:52:07 PM
If I was a PA resident for the entire 2015 but I worked in NY, do I need to file a NY State return too, or just PA?
I believe so.
Title: Re: any accountants out there that i can ask a question?
Post by: Crazy tools on February 03, 2016, 12:19:48 AM
I was on my parents Obama care plan last year, I got married in middle of the year. Now I'm filing my own "married filling jointly" return. What is the correct answer to "was anyone enrolled in a plan from healthcare.gov"?
If yes do I need 1095-a, and would my current income effect parents eligibility?
Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Crazy tools on February 03, 2016, 05:58:58 PM

I was on my parents Obama care plan last year, I got married in middle of the year. Now I'm filing my own "married filling jointly" return. What is the correct answer to "was anyone enrolled in a plan from healthcare.gov"?
If yes do I need 1095-a, and would my current income effect parents eligibility?
Thanks
found the answer here https://ttlc.intuit.com/questions/2954490-do-i-need-1095-a-if-i-m-covered-under-parents-health-insurance-and-not-a-dependent?jump_to=answer_4909853
Anyone care to confirm if it's accurate?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 03, 2016, 06:38:41 PM
How does the 1095 net against the EIC?
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 03, 2016, 06:40:59 PM
If I was a PA resident for the entire 2015 but I worked in NY, do I need to file a NY State return too, or just PA?
Even if you're not required to file NYS you may qualify for a refund there.
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 03, 2016, 06:45:35 PM
If I have a rental agency business. It focuses on renting out people's apartments that live in Israel to renters that usually live in America. We take commission from both parties. Could I just make it legal in USA and pay taxes in USA,  or must it be legal as well under Israeli laws?

Thanx
It sounds like an Israeli business which happens to have clients overseas. In that case, TTBOMK, you'd be required to set up an Israeli business enterprise. If you are a US citizen you'll also have to file a 1040. You may also have to pay estimated tax to the US.
Title: Re: any accountants out there that i can ask a question?
Post by: CS91 on February 03, 2016, 06:47:34 PM
Even if you're not required to file NYS you may qualify for a refund there.
Found the answer. You need to file both. Pay taxes to NY for income earned there and fill out schedule G-L for PA to exclude that income from getting taxed in PA. Just need to pay PA the difference between NY tax requirement and what PA tax requirement would have been.
Title: Re: any accountants out there that i can ask a question?
Post by: xodus8 on February 04, 2016, 02:52:47 PM
my wife has a company car (its a fleet car they pay for the car, insurance, gas). Anyways they deduct post tax 75$ every paycheck for the vehicle. Can we deduct this as a employee expense its a little over 2k for the year?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 04, 2016, 03:01:08 PM
my wife has a company car (its a fleet car they pay for the car, insurance, gas). Anyways they deduct post tax 75$ every paycheck for the vehicle. Can we deduct this as a employee expense its a little over 2k for the year?
the reason they deduct it is because it's personal expense for personal use and commuting, both of which aren;t deductible
furthermore unless she has a schedule c business you would be subject to a 2%floor on all unreimbursed expenses
Title: Re: any accountants out there that i can ask a question?
Post by: xodus8 on February 04, 2016, 03:44:45 PM
the expenses would be about 3% of income, so it would be beyond the floor. But from what your saying it can't be deduced cause she partly uses the vehicle for personal use?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 04, 2016, 04:05:16 PM
the expenses would be about 3% of income, so it would be beyond the floor. But from what your saying it can't be deduced cause she partly uses the vehicle for personal use?
yes, and commuting is personal too
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on February 04, 2016, 04:11:26 PM
Schedule C is considered unearned income?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 04, 2016, 04:35:36 PM
Schedule C is considered unearned income?
usually not
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on February 04, 2016, 05:43:17 PM
usually not
Right, sorry, I got confused for a minute.
So if I have income on Short Schedule SE line 3, that should go in Form 2441 line 3, correct?
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on February 04, 2016, 10:07:15 PM
Right, sorry, I got confused for a minute.
So if I have income on Short Schedule SE line 3, that should go in Form 2441 line 3, correct?
ETA:
So if I have income on Short Schedule SE line 3, that should go in Form 2441 line 4, correct?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 05, 2016, 09:37:13 AM
ETA:
So if I have income on Short Schedule SE line 3, that should go in Form 2441 line 4, correct?
splurge on a tax program
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on February 05, 2016, 10:17:50 AM
If someone is getting now a 1099 for last year for abt $16K (this is the only income, no W-2) How much taxes will he pay?
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on February 05, 2016, 10:22:54 AM
splurge on a tax program
I have TurboTax Freedom edition for free. I'm trying to double check it manually.
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on February 05, 2016, 10:29:10 AM
If someone is getting now a 1099 for last year for abt $16K (this is the only income, no W-2) How much taxes will he pay?
The question is too vague. Married? Children? What type of deduction?
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on February 05, 2016, 10:30:03 AM
The question is too vague. Married? Children? What type of deduction?
Married 2 children
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on February 05, 2016, 10:47:41 AM
The question is too vague. Married? Children? What type of deduction?
regardless youll pay 15.5 % SE tax
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on February 05, 2016, 11:10:08 AM
regardless youll pay 15.5 % SE tax
Ouch
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 05, 2016, 12:00:03 PM
Ouch
actually 15.3% after subtracting expenses and getting an above the line credit for 1/2 the SE Tax
Title: any accountants out there that i can ask a question?
Post by: Crazy tools on February 06, 2016, 07:09:10 PM
Can some one please explain the 1098-T?
I got one from Bmg, and when I enter the information it takes $1200 away from my return.
The amount in box 5 is like $12,000 more than box 2- if that makes a difference. I did not pay a penny to Bmg (at least not since I got married)
Do I need to enter this info?
Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on February 06, 2016, 09:09:59 PM
Can some one please explain the 1098-T?
I got one from Bmg, and when I enter the information it takes $1200 away from my return.
The amount in box 5 is like $12,000 more than box 2- if that makes a difference. I did not pay a penny to Bmg (at least not since I got married)
Do I need to enter this info?
Thanks
Hmm, it shouldn't take away from your return - it should add to it. Although if box 5 has a lot of money in it (more than box 2) it's probably because of a Pell Grant and then it's making it seem like you earned money from that...

Either way, if you're not getting benefit from it you probably can just ignore it

http://www.ecsi.net/taxSelect/faq.html
https://ttlc.intuit.com/questions/1900852-what-is-form-1098-t
http://www.forbes.com/sites/kellyphillipserb/2015/03/22/understanding-your-forms-1098-t-tuition-statement/#40da95244b60

Disclaimer: My advice is worth what you paid for it.
Title: any accountants out there that i can ask a question?
Post by: Crazy tools on February 06, 2016, 10:39:56 PM
Hmm, it shouldn't take away from your return - it should add to it. Although if box 5 has a lot of money in it (more than box 2) it's probably because of a Pell Grant and then it's making it seem like you earned money from that...

Either way, if you're not getting benefit from it you probably can just ignore it

http://www.ecsi.net/taxSelect/faq.html
https://ttlc.intuit.com/questions/1900852-what-is-form-1098-t
http://www.forbes.com/sites/kellyphillipserb/2015/03/22/understanding-your-forms-1098-t-tuition-statement/#40da95244b60

Disclaimer: My advice is worth what you paid for it.
Thanks.
I did get a pell grant but only $1,750 this year (I think)
I think the reason box 5 is higher than 2 is because of the following (http://uploads.tapatalk-cdn.com/20160207/380cac29d60a1265462b56482797c269.jpg)
Note: I do not get kollel, so it wasn't really from financial gain to me.
I hope it's ok to skip reporting this doc
Title: Re: any accountants out there that i can ask a question?
Post by: Crazy tools on February 07, 2016, 12:03:59 AM
On turbo tax there is a question if any of the scholarship listed on 1098-T was not designated for 2015. I subtracted box 2 from box 5 (assuming that the reason box 5 is higher is because some of that scholarship was to pay for 2014, and I'm not getting kollel)
Now I see I'm getting an American opportunity credit.
Am I filling this correctly?
Title: Re: any accountants out there that i can ask a question?
Post by: mgarfin on February 07, 2016, 11:29:53 AM
I hope this is the right place to ask

I run a small business and need to do books for the year, my accounted wants me to put it all in to QB (I use a different software that calculates my P&L but doesn't have balance sheet)
I got a copy of QB but I'm overwhelmed and lost as what to do, where can I learn basics of QB?
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on February 07, 2016, 11:38:20 AM

I hope this is the right place to ask

I run a small business and need to do books for the year, my accounted wants me to put it all in to QB (I use a different software that calculates my P&L but doesn't have balance sheet)
I got a copy of QB but I'm overwhelmed and lost as what to do, where can I learn basics of QB?
YouTube is a great resource
Title: Re: any accountants out there that i can ask a question?
Post by: mgarfin on February 07, 2016, 11:50:16 AM
YouTube is a great resource

A search brings up hundreds of courses, I'm looking for a recommendation?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 07, 2016, 11:51:46 AM
A search brings up hundreds of courses, I'm looking for a recommendation?
You have inventory that you need to track? Forget it. just pay someone to do your bookkeeping. Focus on making money.

Just mho.
Title: Re: any accountants out there that i can ask a question?
Post by: mgarfin on February 07, 2016, 12:01:11 PM
You have inventory that you need to track? Forget it. just pay someone to do your bookkeeping. Focus on making money.

Just mho.

It will take hours to explain every transaction I did. I can trace back everything I did but how will he understand?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on February 08, 2016, 06:05:29 PM
On turbo tax there is a question if any of the scholarship listed on 1098-T was not designated for 2015. I subtracted box 2 from box 5 (assuming that the reason box 5 is higher is because some of that scholarship was to pay for 2014, and I'm not getting kollel)
Now I see I'm getting an American opportunity credit.
Am I filling this correctly?
http://www.thelakewoodscoop.com/news/2016/02/new-tax-provision-to-benefit-yeshivah-parents.html
Title: Re: any accountants out there that i can ask a question?
Post by: Mplace on February 09, 2016, 01:24:08 AM
Was just wondering,
Im thinking about opening an LLC or a s Corp
Do accountents charge to discuss different options for my business?
If ye what's a normal fee
(I plan on discussing with a family friend, and I doubt he'll bill me, I'm just wondering what it costs)
Title: Re: any accountants out there that i can ask a question?
Post by: peacenlove613 on February 09, 2016, 12:41:06 PM
My wife received short term disability income for not working in Dec 2015. We didn't get the checks until Jan 2016. Is that considered income for 2015 or 2016?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 09, 2016, 01:19:28 PM
My wife received short term disability income for not working in Dec 2015. We didn't get the checks until Jan 2016. Is that considered income for 2015 or 2016?
the first question is, is it income at all
Title: Re: any accountants out there that i can ask a question?
Post by: cozmohoot on February 09, 2016, 01:38:04 PM
Dw doesn't work since she watches my 1 and 3 year old.
Can I get a larger refund because of this?
I'm in NY and I also pay a lot for other kids tuition if that makes a difference. Tia.
Title: Re: any accountants out there that i can ask a question?
Post by: peacenlove613 on February 09, 2016, 08:03:50 PM
the first question is, is it income at all

They took off taxes on it. The question is do I get it back as part of 2015 income or 2016 income.
Title: Re: any accountants out there that i can ask a question?
Post by: CS91 on February 09, 2016, 09:28:18 PM
Dw doesn't work since she watches my 1 and 3 year old.
Can I get a larger refund because of this?
I'm in NY and I also pay a lot for other kids tuition if that makes a difference. Tia.
Nope.
Title: Re: any accountants out there that i can ask a question?
Post by: akivak on February 10, 2016, 12:13:25 AM
How much does it cost to open a LLC?
can I do it myself online?
Is there an annual fee for a llc?
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on February 10, 2016, 12:37:14 AM
How much does it cost to open a LLC?
can I do it myself online?
Is there an annual fee for a llc?
Federal Free. State depends on state.
Federal yes. State depends which one.
Annual fee again no for federal, state.....
Title: Re: any accountants out there that i can ask a question?
Post by: akivak on February 10, 2016, 12:40:03 AM
Federal Free. State depends on state.
Federal yes. State depends which one.
Annual fee again no for federal, state.....
Nj
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on February 10, 2016, 01:27:03 AM
For a family of 2 adults and 2 children at what income do you make the largest tax return for 2015
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on February 10, 2016, 02:06:26 AM
For a family of 2 adults and 2 children at what income do you make the largest tax return for 2015
Plug in some numbers and you'll see.  https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 10, 2016, 03:06:09 AM
Nj
Online.
Iirc $50 to register and then 150 a year fee
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 10, 2016, 03:37:34 AM
Reuven wants to buy shimons business, a C corp.
How does he buy only the assets of the business, -goodwill, name,fixed assets, leases, vehicles, etc. but not the AP and other liabilities?
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 10, 2016, 10:10:29 AM
For a family of 2 adults and 2 children at what income do you make the largest tax return for 2015
Your question sounds very fishy to say the least.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on February 10, 2016, 10:11:49 AM
Your question sounds very fishy to say the least.
who says it isnt? ;D
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 10, 2016, 10:12:57 AM
They took off taxes on it. The question is do I get it back as part of 2015 income or 2016 income.
they will send you a 1099 (or the equivalent)
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 10, 2016, 10:24:56 AM
who says it isnt? ;D
https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf
for 2 kids the max EIC is 5548
between 13850 and 19200
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on February 10, 2016, 10:29:19 AM
https://apps.irs.gov/app/vita/content/globalmedia/earned_income_credit_table_1040i.pdf
for 2 kids the max EIC is 5548
between 13850 and 19200
23,650 is the correct ending number and 16,333 would get you max on the Additional child tax credit so if you made this amount you would get most on EIC and full 2k on Additional child tax credit. And if you live in NJ you also get 20% of what ever you get on federal EIC which would be $1109 Total $8,657
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 10, 2016, 10:30:52 AM
23,650 is the correct ending number
(i thought so too but) not according to the chart posted
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on February 10, 2016, 10:32:38 AM
(i thought so too but) not according to the chart posted
https://www.irs.gov/publications/p596/ar02.html
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 10, 2016, 10:42:09 AM
https://www.irs.gov/publications/p596/ar02.html
thanx, i thought that looked wrong
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 10, 2016, 10:46:44 AM
who says it isnt? ;D
I am a tax preparer. I would not run to take on a client who starts off with your kind of question.
Of course there are legal ways in some cases to make things fit - such as which credits to claim, which to leave, what expenses must be reported, which are your choice (e.g. business use of your home). That's what tax pros are for.
Title: Re: any accountants out there that i can ask a question?
Post by: joeberg on February 10, 2016, 10:49:00 AM
Nj
It's $125 to file and I think $50 annual .
Title: Re: any accountants out there that i can ask a question?
Post by: joeberg on February 10, 2016, 10:49:52 AM
Nj
It's $125 to file and I think $50 annual .
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 10, 2016, 12:46:58 PM
It's $125 to file and I think $50 annual .
Lol -1
Title: Re: any accountants out there that i can ask a question?
Post by: joeberg on February 10, 2016, 02:13:26 PM
Lol -1
Not sure what's so funny.$125 to file- http://www.nj.gov/treasury/revenue/gettingregistered.shtml
$50 annual- http://www.state.nj.us/treasury/revenue/dcr/programs/ann_rpt.shtml
Title: Re: any accountants out there that i can ask a question?
Post by: Zevi16 on February 10, 2016, 02:25:19 PM
Forming an LLC in NY.
I am doing it online on TotallyLegal.Com is that a good idea?
Is it important to make a registered agent?
Is $69 ok to get the EIN for me?
Tia.
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on February 10, 2016, 02:43:16 PM
If  earned 2015 $18,000 (W-2), filing as a couple with 2 kids lives in NY, whats the Tax return he will be getting?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 10, 2016, 02:55:00 PM
For a family of 2 adults and 2 children at what income do you make the largest tax return for 2015
It might be too late for you, but I am arguing that it doesn't make sense (at least from a tax standpoint, as long as you can have some control as to who gets paid) to be legally married in the US.

I know of a couple that followed my opinion on this, they did not get "legally" married, but are Halachically married. They had their second child in 2015. Each one of them will file 2015 taxes claiming one child. I think that might get them the maximum EIC as well as maxing out on several other items.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 10, 2016, 03:18:46 PM
It might be too late for you, but I am arguing that it doesn't make sense (at least from a tax standpoint, as long as you can have some control as to who gets paid) to be legally married in the US.

I know of a couple that followed my opinion on this, they did not get "legally" married, but are Halachically married. They had their second child in 2015. Each one of them will file 2015 taxes claiming one child. I think that might get them the maximum EIC as well as maxing out on several other items.
In virtually every area it is beneficial to file jointly.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 10, 2016, 03:27:12 PM
In virtually every area it is beneficial to file jointly.
with two kids each can technically be head of household (probably illegal too)
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 10, 2016, 06:05:31 PM
Forming an LLC in NY.
I am doing it online on TotallyLegal.Com is that a good idea?
Is it important to make a registered agent?
Is $69 ok to get the EIN for me?
Tia.
Get your EIN on IRS.gov for free
Title: Re: any accountants out there that i can ask a question?
Post by: Zevi16 on February 10, 2016, 06:15:02 PM
Get your EIN on IRS.gov for free
And which state should I form it in
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 10, 2016, 06:52:04 PM
And which state should I form it in
I don't know exactly what you're setting up. I don't know how that works with LLCs. In any case here's a quote from the IRS "Applying for an EIN is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service." https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for-an-EIN
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on February 10, 2016, 07:07:41 PM
And which state should I form it in
Without taking any mitigating factors into consideration usually it is best that you involve the least amount of states as possible. Meaning if you live in NY and the business is located in NY you open the entity in NY.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on February 11, 2016, 12:24:42 AM
Federal Free. State depends on state.
Federal yes. State depends which one.
Annual fee again no for federal, state.....
AFAIK there is no such thing as a federal LLC. Business entities are in the realm of the states.

Applying for a EIN is not creating an entity.
Title: Re: any accountants out there that i can ask a question?
Post by: Zevi16 on February 11, 2016, 12:26:58 AM
AFAIK there is no such thing as a federal LLC. Business entities are in the realm of the states.

Applying for a EIN is not creating an entity.
That's what I thought whilst checking up online
Title: Re: any accountants out there that i can ask a question?
Post by: Crazy tools on February 11, 2016, 01:20:13 AM
Anyone care to read over this question and answer and weigh in if it's accurate?
I'm speaking in particular about the last comment on the first answer. It would be greatly appreciated.
https://ttlc.intuit.com/questions/2954490-do-i-need-1095-a-if-i-m-covered-under-parents-health-insurance-and-not-a-dependent
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on February 11, 2016, 02:07:32 AM
AFAIK there is no such thing as a federal LLC. Business entities are in the realm of the states.

Applying for a EIN is not creating an entity.
You are still required to register your business with the IRS. And they do recognize LLC designations. It defaults to be taxed like a partnership.
Title: Re: any accountants out there that i can ask a question?
Post by: Zevi16 on February 11, 2016, 02:20:17 PM
What is the cheapest way to list my home business in NY
Title: Re: any accountants out there that i can ask a question?
Post by: Hamavin on February 11, 2016, 03:31:33 PM
Any very good accountants for small biz that you can refer in lakewood?
Title: Re: any accountants out there that i can ask a question?
Post by: bklyn on February 11, 2016, 07:05:51 PM
Any very good accountants for small biz that you can refer in lakewood?
Dov Biegeleisen the best!
732-577-8844
Title: Re: any accountants out there that i can ask a question?
Post by: akivak on February 12, 2016, 11:24:57 AM
Not sure what's so funny.$125 to file- http://www.nj.gov/treasury/revenue/gettingregistered.shtml
$50 annual- http://www.state.nj.us/treasury/revenue/dcr/programs/ann_rpt.shtml
Is this the cheapest/best option?
Title: Re: any accountants out there that i can ask a question?
Post by: joeberg on February 12, 2016, 02:45:36 PM
Is this the cheapest/best option?
This week's to be the basic DIY option. I would think all other options would just tack on fees.
Title: Re: any accountants out there that i can ask a question?
Post by: Ydad on February 16, 2016, 03:44:43 PM
If my childcare gets deducted straight from my paycheck and paid to my caregiver can I claim that? I imagine the answer is no but was wondering. TIA
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 16, 2016, 03:46:58 PM
If my childcare gets deducted straight from my paycheck and paid to my caregiver can I claim that? I imagine the answer is no but was wondering. TIA
is it on your w2 box 10
Title: Re: any accountants out there that i can ask a question?
Post by: Ydad on February 16, 2016, 03:52:27 PM
is it on your w2 box 10
not there. What does that mean?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on February 16, 2016, 04:14:39 PM
it means they paid for the child care as if they hired the caregiver and it's not eligible for the credit ]
if it was in box 10 then possibly it would be
Title: Re: any accountants out there that i can ask a question?
Post by: Ydad on February 16, 2016, 05:19:48 PM
Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on February 20, 2016, 07:13:37 PM
If a boss gives 1099 to salesman and the salesman pays for his own car. How can he deduct the expenses from personal return?
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on February 20, 2016, 07:41:18 PM
If a boss gives 1099 to salesman and the salesman pays for his own car. How can he deduct the expenses from personal return?
See instructions for schedule C
Title: Re: any accountants out there that i can ask a question?
Post by: Buruch on February 22, 2016, 08:39:07 PM
Can a small family company buy individual/family health plans for employees through the business - pretax?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 22, 2016, 11:22:10 PM
Can a small family company buy individual/family health plans for employees through the business - pretax?
Question number 1 to ask is who is on the payroll.

Back in the day, the easiest/best way to get health insurance for a small business owner with no employees was to put spouse on payroll, thus having a small "group" and shopping for small group plans. Obamacare outlawed this. If the only employees are husband and wife, it no longer qualifies as small group.

If business has employees other than owner and spouse, it could buy group health insurance, but: 1. Cannot discriminate between employees as to what share the business pays. 2. Pre-tax salary deductions for Owners might not be available, depending on business structure and payroll composition (cannot be tilted to the benefit of owners or highly compensated employees).
Title: Re: any accountants out there that i can ask a question?
Post by: Buruch on February 24, 2016, 02:15:34 PM
Father is the owner, but on Medicare, and son and daughter-in-law are employees. The plan would be for daughter-in-law and possibly son.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 24, 2016, 04:05:02 PM
Father is the owner, but on Medicare, and son and daughter-in-law are employees. The plan would be for daughter-in-law and possibly son.
What is the business structure? Sole proprietorship? C-Corp? S-Corp? LLC?
Are those the only employees, or are there any others?

If indeed son and daughter-in-law are on the payroll, should qualify for small group health insurance (I am talking NY, though I presume most other states would be similar, but a lot depends also on what insurers make available, and not only the law).

If son and daughter-in-law have NO OWNERSHIP whatsoever in company, it could be set up as a pre-tax expense (whether employer paid or employee pre-tax payroll deduction, would depend on some additional details about business structure).
Title: Re: any accountants out there that i can ask a question?
Post by: ejb123 on February 24, 2016, 05:51:54 PM
Any idea on estimated cost for an accountant to file a tax return and produce k1s (there are two investors ) for an LLC that owns interests in 2 real estate projects (ie will get 2 K1s)?
Title: Re: any accountants out there that i can ask a question?
Post by: Buruch on February 24, 2016, 06:01:24 PM
What is the business structure? Sole proprietorship? C-Corp? S-Corp? LLC?
Are those the only employees, or are there any others?

If indeed son and daughter-in-law are on the payroll, should qualify for small group health insurance (I am talking NY, though I presume most other states would be similar, but a lot depends also on what insurers make available, and not only the law).

Scorp. Father is sole owner. What about an individual/family plan?

If son and daughter-in-law have NO OWNERSHIP whatsoever in company, it could be set up as a pre-tax expense (whether employer paid or employee pre-tax payroll deduction, would depend on some additional details about business structure).
Title: Re: any accountants out there that i can ask a question?
Post by: zer0k1 on February 25, 2016, 09:10:53 AM
Anyone with accounting knowledge with regards to points brokering?
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on February 25, 2016, 09:33:06 AM

Anyone with accounting knowledge with regards to points brokering?
Any specific questions?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 25, 2016, 01:07:02 PM
Scorp. Father is sole owner. What about an individual/family plan?
If it is set up as a small group plan, the employer can either pay for the premiums, or set up a Section 125 cafeteria plan and allow employees to pay the premiums with pre-tax dollars. This can be done regardless of whether the employee selects "employee only" "employee+spouse" "employee+children" or "family" coverage.

If the employees purchase the coverage on their own, outside of the business setting, there MIGHT be a way to legally reimburse them for it as a business expense, but it would probably require setup of an HRA (Healthcare Reimbursement Account) which would be specifically set up to allow health premium reimbursement, or some kind of other setup that might allow it (I don't know, and doubt whether it's worth the hassle and expense for just one or two employees).

In NY, unless you want to take subsidies (which many people don't) whenever you have a choice you are much better off doing it as a small business group.

Title: Re: any accountants out there that i can ask a question?
Post by: mitchel89 on February 26, 2016, 12:42:00 PM
If i open an LLC with a partner and i take out x amount of $ every week for my self, do i have to pay income tax? and do i have to file a separate 1099?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on February 26, 2016, 01:17:53 PM
If i open an LLC with a partner and i take out x amount of $ every week for my self, do i have to pay income tax? and do i have to file a separate 1099?
Get an accountant!
Yes you will have to pay income tax, but it won't necessarily be the amount you withdrew.

Also your share of the partnerships income will be treated differently than the payments (self emplyment tax etc).
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on February 28, 2016, 03:40:12 PM
If i open an LLC with a partner and i take out x amount of $ every week for my self, do i have to pay income tax? and do i have to file a separate 1099?
For the business you file a 1065 assuming it's a partnership and not a Corp. your share gets passed to you on a K-1.
Title: Re: any accountants out there that i can ask a question?
Post by: noturbizniss on February 28, 2016, 10:31:47 PM
Can a speech therapist who works in a school directly with kids deduct the educator expense?  DO hours spent on paperwork, note taking, prep work etc. count toward the 900 hour requirement,or  only direct student contact time?
Title: Re: any accountants out there that i can ask a question?
Post by: elikay on February 29, 2016, 12:38:52 AM
Thanks.
I did get a pell grant but only $1,750 this year (I think)
I think the reason box 5 is higher than 2 is because of the following (http://uploads.tapatalk-cdn.com/20160207/380cac29d60a1265462b56482797c269.jpg)
Note: I do not get kollel, so it wasn't really from financial gain to me.
I hope it's ok to skip reporting this doc
you are reporting tuition which you did not pay that credit is only for tuition payers someone CMIIW
Title: Re: any accountants out there that i can ask a question?
Post by: Zalc on March 01, 2016, 12:12:59 AM
So if one's only income are 1099-INTs, how much can you "earn" before needing to file? Anyone want to jump in on this please?
RE: This thread (http://forums.dansdeals.com/index.php?topic=61037.msg1420970#msg1420970). I'm cross posting here instead of bumping there, as it's more relevant here.
TIA!
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 01, 2016, 06:12:28 PM
RE: This thread (http://forums.dansdeals.com/index.php?topic=61037.msg1420970#msg1420970). I'm cross posting here instead of bumping there, as it's more relevant here.
TIA!
Are they a depended of someone else?
Title: Re: any accountants out there that i can ask a question?
Post by: Zalc on March 01, 2016, 09:57:34 PM
Are they a depended of someone else?
Yes
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on March 02, 2016, 12:18:46 PM
i have a c corp and only i am on payroll. can i put my wife on payroll without needing a workmen's comp policy?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 02, 2016, 01:07:17 PM
i have a c corp and only i am on payroll. can i put my wife on payroll without needing a workmen's comp policy?
Not my field, but I believe you need a policy. Possibly even for yourself!
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on March 02, 2016, 01:09:20 PM
Not my field, but I believe you need a policy. Possibly even for yourself!
for myself i know that i dont need
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 02, 2016, 01:12:21 PM
for myself i know that i dont need
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on March 02, 2016, 01:14:30 PM

i dont exactly understand that. but i did ask a professional about myself
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 02, 2016, 01:28:39 PM
i dont exactly understand that. but i did ask a professional about myself
I hear. But corporate officers do generally need
Title: Discover ApplePay Cashback & small business taxes
Post by: DealChaser on March 07, 2016, 10:05:57 PM
I bought $20K of Apple products from BB, Staples, etc. to maximize the 10% Discover ApplePay promotion on two cards. I sold everything on eBay before the end of 2015 and now I'm trying to figure out how to handle the cashback bonus on my taxes; some of it arrived before the end of 2015, but most in January. And of course the hope is that the bonus will be doubled next fall on the anniversary of my card opening. From what I've read, cashback should be treated as a rebate that lowers the cost basis of the products I sold (this makes intuitive sense to me, since I only made any profit after the bonus money is figured in).

This was my first year selling on eBay and my first time filing for this business, so I'm trying to decide on an accounting method.

If I go with the accrual method, should I factor in all the cashback tied to the products I sold, including next fall's anticipated double bonus? The concern is that something happens to my account between now and then or Discover doesn't follow through and the bonus doesn't materialize.

If I go cash method, it seems more straightforward; I can record the cashback in the year when/if it arrives as other income.

Am I way off base in how I'm thinking through my options?  Any input would be greatly appreciated!
Title: Re: Discover ApplePay Cashback & small business taxes
Post by: jackofall on March 07, 2016, 11:23:30 PM
I bought $20K of Apple products from BB, Staples, etc. to maximize the 10% Discover ApplePay promotion on two cards. I sold everything on eBay before the end of 2015 and now I'm trying to figure out how to handle the cashback bonus on my taxes; some of it arrived before the end of 2015, but most in January. And of course the hope is that the bonus will be doubled next fall on the anniversary of my card opening. From what I've read, cashback should be treated as a rebate that lowers the cost basis of the products I sold (this makes intuitive sense to me, since I only made any profit after the bonus money is figured in).

This was my first year selling on eBay and my first time filing for this business, so I'm trying to decide on an accounting method.


If I go with the accrual method, should I factor in all the cashback tied to the products I sold, including next fall's anticipated double bonus? The concern is that something happens to my account between now and then or Discover doesn't follow through and the bonus doesn't materialize.

If I go cash method, it seems more straightforward; I can record the cashback in the year when/if it arrives as other income.

Am I way off base in how I'm thinking through my options?  Any input would be greatly appreciated!
As a general rule accountants are taught to defer tax liability/payments. Which make sense- why pay now if you can pay later.
What is your hesitation using a cash basis?
Title: Re: Discover ApplePay Cashback & small business taxes
Post by: DealChaser on March 08, 2016, 10:17:21 AM
As a general rule accountants are taught to defer tax liability/payments. Which make sense- why pay now if you can pay later.
What is your hesitation using a cash basis?
Thanks, jackofall, that's helpful. I was pretty sure about using a cash basis for the reason you mentioned but wanted to float the idea out in the world before committing to it.
Title: Re: any accountants out there that i can ask a question?
Post by: Shmuel4 on March 08, 2016, 01:13:44 PM
I need to pay an accountant to file my taxes.  They are really basic.  Can an accountant please PM me?
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on March 08, 2016, 01:21:38 PM
I need to pay an accountant to file my taxes.  They are really basic.  Can an accountant please PM me?
If all you have is W-2, do it yourself.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 08, 2016, 01:32:23 PM
I need to pay an accountant to file my taxes.  They are really basic.  Can an accountant please PM me?
TurboTax is quite simple to use.  It might work for you.
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on March 08, 2016, 06:12:39 PM
TurboTax is quite simple to use.  It might work for you.
+1. If your income is below a certain amount, it's free too.
Title: Re: any accountants out there that i can ask a question?
Post by: Zalc on March 08, 2016, 10:49:03 PM
Does a dependent who's earnings for the year are just some 1099-INTs (Bank bonuses), need to file taxes?

I looked Here (https://turbotax.intuit.com/tax-tools/calculators/taxcaster/), and it shows that if he has under $1050 of unearned income, the "Taxable income" box says $0.

Does he still need to file on his own?

Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 08, 2016, 11:17:14 PM
Does a dependent who's earnings for the year are just some 1099-INTs (Bank bonuses), need to file taxes?

I looked Here (https://turbotax.intuit.com/tax-tools/calculators/taxcaster/), and it shows that if he has under $1050 of unearned income, the "Taxable income" box says $0.

Does he still need to file on his own?


Under $1,000 of unearned income he doesnt need to file
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 09, 2016, 04:45:03 PM
Not sure if this goes hear or in goods for sale/trade, but I just felt compelled to post.

Someone told me that he has more children than he could benefit from on his tax return, and is thinking of "giving away" dependents to others.

Any takers, or insights?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 09, 2016, 07:06:03 PM
Not sure if this goes hear or in goods for sale/trade, but I just felt compelled to post.

Someone told me that he has more children than he could benefit from on his tax return, and is thinking of "giving away" dependents to others.

Any takers, or insights?
if grandparents(or other relative)  support then it's absolutely done all the time, a stranger who doesn;t is tax fraud
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 10, 2016, 06:41:03 AM
Rules of who claims a depended is a little more complex. If you file on your own review them well.
Title: Re: any accountants out there that i can ask a question?
Post by: Emkay on March 11, 2016, 05:42:57 AM
anyone want to sell me a Beckers or Rogers course? or want to help get me one for free?     8)
Title: Re: any accountants out there that i can ask a question?
Post by: Kosher Travel Info on March 11, 2016, 12:17:33 PM
TurboTax is quite simple to use.  It might work for you.
Yup. I'm already using TurboTax for at least 10 years. Approx 79.95 for both, state and federal returns. Love it. And I do have W2's from more than one employer, plus 1098s for mortgage interest, etc.
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on March 12, 2016, 09:34:18 PM
If someone worked here in the US got a 1099, his wife and 2 kids live abroad (US citizens). can he file as married and use them all as dependents? If yes how. TIA
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 12, 2016, 09:36:43 PM
if everyone is US they should be filing anyway
like anyother US citizen
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on March 12, 2016, 09:41:35 PM
if everyone is US they should be filing anyway
like anyother US citizen
But can they all be filled jointly?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 12, 2016, 09:46:46 PM
of course
Any US citizen HAS to file even if they live somewhere else, on world wide income
and they file Jointly if married
they only things they cant get is the EIC
Title: Re: any accountants out there that i can ask a question?
Post by: Emkay on March 13, 2016, 05:33:49 PM
anyone want to sell me a Beckers or Rogers course? or want to help get me one for free?     8)
Bump.
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on March 14, 2016, 02:49:16 AM
If someone worked here in the US got a 1099, his wife and 2 kids live abroad (US citizens). can he file as married and use them all as dependents? If yes how. TIA
Must for as married either MFJ or MFS.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on March 14, 2016, 06:37:29 PM
Have been doing my own taxes for years, now at the point where I'm wondering if I would benefit from having a CPA handle it for me. I want to take my 2015 return to someone and have them tell me whether I got everything or left money on the table. How do I find someone who would do this? Would prefer not to use a local heimish guy (for privacy concerns).
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 14, 2016, 06:42:32 PM

Have been doing my own taxes for years, now at the point where I'm wondering if I would benefit from having a CPA handle it for me. I want to take my 2015 return to someone and have them tell me whether I got everything or left money on the table. How do I find someone who would do this? Would prefer not to use a local heimish guy (for privacy concerns).
Are you self employed?
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on March 14, 2016, 07:25:01 PM
Anyone here that uses qbo that received the tax season package?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 14, 2016, 08:17:38 PM
How do I find someone who would do this? Would prefer not to use a local heimish guy (for privacy concerns).
You ask around for reccommendations.  Along with finding out if the guy knows his stuff, you ask if he's discreet, and maintains the customer's privacy.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on March 15, 2016, 07:22:57 AM
Are you self employed?

Not self employed

You ask around for reccommendations.  Along with finding out if the guy knows his stuff, you ask if he's discreet, and maintains the customer's privacy.

That's fine, and I'm not completely opposed to that, it's just not the first place I want to look. What I'm wondering is if there are any well known places that are impersonal and one can make an appointment to get this type of advice.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 15, 2016, 08:01:52 AM

Not self employed

If you just have a w-2, a few 1099s, and some other basic stuff I doubt there will be a big difference between doing it yourself or going to a CPA.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 15, 2016, 08:30:10 AM
The last thing any accountant wants to or will do is disclose your personal financial info to anyone.  Are you worried when you go to a Dr that they will tell others about a medical condition?  I think your fear is irrational.  And similar to your doctor, the accountant has seen it all. He has seen the guy who everyone thought is rich and is really dirt poor and vice versa.  I doubt that you have anything  earth shattering enough to get him to start gossiping about you in shul.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 15, 2016, 09:31:02 AM
The last thing any accountant wants to or will do is disclose your personal financial info to anyone.  Are you worried when you go to a Dr that they will tell others about a medical condition?  I think your fear is irrational.  And similar to your doctor, the accountant has seen it all. He has seen the guy who everyone thought is rich and is really dirt poor and vice versa.  I doubt that you have anything  earth shattering enough to get him to start gossiping about you in shul.
+10000000

This is an irrational fear/attitude in our communities
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 15, 2016, 10:02:47 AM
You have to admit that there are both accountants and doctors that say things they shouldn't. Even indirect comments, " He can afford it." "He shouldn't shovel his own walk." is saying too much.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 15, 2016, 11:08:56 AM

You have to admit that there are both accountants and doctors that say things they shouldn't. Even indirect comments, " He can afford it." "He shouldn't shovel his own walk." is saying too much.
Where I work (big 4) confidentially is stressed over and over. We can't even say who are clients are much less anything about them and if info is even accidentally shared there are a lot of very senior people who will get involved.

That being said I wouldn't want my neighbor doing my taxes for the sole reason I don't want him seeing my finances, not that he might tell someone.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 15, 2016, 11:14:32 AM
That being said I wouldn't want my neighbor doing my taxes for the sole reason I don't want him seeing my finances, not that he might tell someone.
Personally I couldn't care less.
Maybe I'm just desensitized after seeing thousands of peoples incomes but you get to a point where income is just a fact of life. Some people make a lot, some less, and some even less. Obviously you don't broadcast it because from both ends (half the people will be jealous that you make so much and the others will look down on you for making so little) there's no gain and much to lose, but if a professional needs to know your income? Big deal. Every school asks you to fill out income on lunch forms etc.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 15, 2016, 11:43:03 AM
I can imagine that if some local tax preparer found out that yossel the shoe maker was making zillions that no one knew about, im not sure confidentiality would be guaranteed.
Same thing if boruch the gevir was really drowning in the red, it could slip out..

Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 15, 2016, 04:28:17 PM
That being said I wouldn't want my neighbor doing my taxes for the sole reason I don't want him seeing my finances, not that he might tell someone.
So if not your neighbor, another Yid that sends his or her kids to the same schools as you do. It is a mitzva to do business with another Yid, and I think it is always better to do business with Yidden that share in my values, will support similar moisdos, etc.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 15, 2016, 05:06:51 PM

So if not your neighbor, another Yid that sends his or her kids to the same schools as you do. It is a mitzva to do business with another Yid, and I think it is always better to do business with Yidden that share in my values, will support similar moisdos, etc.
For sure.

 I was talking about specifically someone who you interact on a day to day basis where I might not want that person knowing every detail of my finances.
Title: Re: any accountants out there that i can ask a question?
Post by: sruly101 on March 15, 2016, 11:17:09 PM
Is there any issue/penalty filing 2015 taxes (a 1099) a year later?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 16, 2016, 12:27:07 AM
Is there any issue/penalty filing 2015 taxes (a 1099) a year later?
If you don't owe any money it shouldn't be a problem.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 16, 2016, 11:26:48 AM
If you don't owe any money it shouldn't be a problem.
Only issue is that until you file, the statute of limitations doesn't start ticking. Once you file, the IRS has 3 years to challenge.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on March 16, 2016, 11:56:59 AM
Only issue is that until you file, the statute of limitations doesn't start ticking. Once you file, the IRS has 3 years to challenge.
Or 6
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 16, 2016, 12:06:41 PM
Or 6
Where do you get the 6 from?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on March 16, 2016, 12:17:38 PM
Where do you get the 6 from?

If you omit more than 25% of your income
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on March 16, 2016, 01:08:58 PM
Or fraud
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 16, 2016, 02:58:30 PM
Or fraud
Is it only 6 years for fraud? I thought it never runs out for fraud.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on March 16, 2016, 03:00:29 PM
Is it only 6 years for fraud? I thought it never runs out for fraud.
Prolly right.
Title: Re: any accountants out there that i can ask a question?
Post by: schneury on March 16, 2016, 03:31:07 PM
If I live in NY and have real estate in IL will I get taxed twice?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on March 16, 2016, 03:58:32 PM
Is it only 6 years for fraud? I thought it never runs out for fraud.

Fraud is indefinitely
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 16, 2016, 05:31:30 PM

If I live in NY and have real estate in IL will I get taxed twice?
There is usually a credit for tax paid in other states.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 17, 2016, 03:48:30 PM
What is "Materiality Level Calculation" on a income statement?

Where on the income statement does it say that? That exact phrase is not a GAAP term...
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 17, 2016, 03:59:41 PM
Sounds like a performance materiality calc or something
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 17, 2016, 04:04:07 PM
Sounds like a performance materiality calc or something
Yes but that wouldn't normally by on the financials at all.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 17, 2016, 04:06:16 PM
Yes but that wouldn't normally by on the financials at all.
True.. PM would most definitely not be mentioned
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on March 17, 2016, 04:06:39 PM
What is "Materiality Level Calculation" on a income statement?
To me it sound like a calc to establish the level on materiality. Meaning anything below that amount would be classified as immaterial from an audit perspective. Correct, it should not be on the actual financial statements rather on the worksheets.
Title: Re: any accountants out there that i can ask a question?
Post by: ADG on March 17, 2016, 04:15:53 PM
To me it sound like a calc to establish the level on materiality. Meaning anything below that amount would be classified as immaterial from an audit perspective. Correct, it should not be on the actual financial statements rather on the worksheets.
Thanks
Title: Re: any accountants out there that i can ask a question?
Post by: GettingReady on March 20, 2016, 05:02:11 PM
This is cross posted. I moved it here per a member's suggestion.

I've asked this question on different forums but have yet to get an answer. My husband and I retired this year. With current CC apps we can use 2015 tax income. What do we use for next year besides the 3 months my husband has worked in 2016? He's waiting until age 70 for SS, RMDs aren't required yet, dividend income is minimal as most of it is reinvested in Roths or IRAs. We have other money set aside to live on until the SS years start. We live below our means which affects how much we need to withdraw from our portfolio not how much we can withdraw. Feel free to PM me.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on March 21, 2016, 11:14:34 AM

This is cross posted. I moved it here per a member's suggestion.

I've asked this question on different forums but have yet to get an answer. My husband and I retired this year. With current CC apps we can use 2015 tax income. What do we use for next year besides the 3 months my husband has worked in 2016? He's waiting until age 70 for SS, RMDs aren't required yet, dividend income is minimal as most of it is reinvested in Roths or IRAs. We have other money set aside to live on until the SS years start. We live below our means which affects how much we need to withdraw from our portfolio not how much we can withdraw. Feel free to PM me.

Isn't this really a question for the CC companies rather than an accountant?
Title: Re: any accountants out there that i can ask a question?
Post by: GettingReady on March 21, 2016, 08:51:08 PM
Isn't this really a question for the CC companies rather than an accountant?

Should I move it again? Lol. I'm beginning to think no one answers the question because maybe people just make up numbers. I just want to be prepared if I get a FR like I did with Amex this year..
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 21, 2016, 09:01:08 PM
Should I move it again? Lol. I'm beginning to think no one answers the question because maybe people just make up numbers. I just want to be prepared if I get a FR like I did with Amex this year..
FYI, it could be me, but I can't understand your questions.
Maybe try breaking them up or something..
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on March 21, 2016, 10:04:45 PM

Should I move it again? Lol. I'm beginning to think no one answers the question because maybe people just make up numbers. I just want to be prepared if I get a FR like I did with Amex this year..

No one is answering because your question is in the wrong thread. This isn't a tax or accounting question. It's a CC application question.
Title: Re: any accountants out there that i can ask a question?
Post by: Tzadik Nistar on March 22, 2016, 04:07:43 PM
Could a business borrow money to a private person? If yes what's the process, is there any tax on it etc?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 22, 2016, 04:16:01 PM
Could a business borrow money to a private person? If yes what's the process, is there any tax on it etc?
Borrow money TO someone? Do you mean borrow FROM someone? Or LEND to someone?
Title: Re: any accountants out there that i can ask a question?
Post by: Tzadik Nistar on March 22, 2016, 04:16:44 PM
Borrow money TO someone? Do you mean borrow FROM someone? Or LEND to someone?
Lend to a private person
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 22, 2016, 04:17:33 PM
Lend to a private person
Sure. They can lend someone and then they'll pay tax on the interest income that they receive. That's what a bank does :)
Title: Re: any accountants out there that i can ask a question?
Post by: Tzadik Nistar on March 22, 2016, 04:21:54 PM
Sure. They can lend someone and then they'll pay tax on the interest income that they receive. That's what a bank does :)
And if it's interest free?
And does the receiver of the loan file anything with the irs or pay any taxes?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 22, 2016, 04:27:11 PM
And if it's interest free?
And does the receiver of the loan file anything with the irs or pay any taxes?
The lender would have to pay tax on imputed interest.

What that means is if a company lends someone $100 and says that they aren't charging interest. The IRS says - we think that;'s crazy. There's no sane person that lends money and doesn't charge interest! Therefore, they say, that since the market rate right now is 5% (for example) really the borrower should be paying you $5 and you should pay taxes on the $5 (if their rate is 35% they'll pay $1.75). Even though you claim it's an interest free loan, the IRS will charge you taxes as if you earned $5 assuming that you really are getting something for the loan and just not telling them.

The borrower has no tax implication. He borrowed money and he owes it back. If it was a mortgage or student loan then the interest may be deductible.

Title: Re: any accountants out there that i can ask a question?
Post by: Tzadik Nistar on March 22, 2016, 04:34:08 PM
The lender would have to pay tax on imputed interest.

What that means is if a company lends someone $100 and says that they aren't charging interest. The IRS says - we think that;'s crazy. There's no sane person that lends money and doesn't charge interest! Therefore, they say, that since the market rate right now is 5% (for example) really the borrower should be paying you $5 and you should pay taxes on the $5 (if their rate is 35% they'll pay $1.75). Even though you claim it's an interest free loan, the IRS will charge you taxes as if you earned $5 assuming that you really are getting something for the loan and just not telling them.

The borrower has no tax implication. He borrowed money and he owes it back. If it was a mortgage or student loan then the interest may be deductible.
So is there a minimum of what percentage they need to charge?
Could they claim they only charged 1%?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 22, 2016, 04:34:54 PM
The corporate officer may be shirking his fiduciary duties to the shareholders if he's making personal loans with the corporate assets.

Not saying it applies here, but may be relevant.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 22, 2016, 04:35:42 PM
So is there a minimum of what percentage they need to charge?
Could they claim they only charged 1%?
Depending on the term, see http://www.raymondjames.com/taxcreditfunds/hist_app_fed.htm for current and historical rates.

It's best to have a promissory note.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 22, 2016, 04:38:19 PM
The corporate officer may be shirking his fiduciary duties to the shareholders if he's making personal loans with the corporate assets.

Not saying it applies here, but may be relevant.
+1
Can also lead to additional implications in "piercing the corporate vail" if one treats company money as his own.

A formalized document (promissory note) can go a long way in protecting from various issues. Obviously, it needs to make sense as far as size of loan, collateral or lack thereof, and interest rate charged.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 22, 2016, 04:39:55 PM
So is there a minimum of what percentage they need to charge?
Could they claim they only charged 1%?
On any loan below market interest rates (Fed rates) you would pay taxes on the imputed interest rate.

If the Fed rate is 2.25 for a long term loan compounded annually ( https://www.irs.gov/pub/irs-drop/rr-16-09.pdf ) and you are paying 1.25, the imputed interest would be 1% ($1) and you would pay tax on $1 (say 35 cents)
Title: Re: any accountants out there that i can ask a question?
Post by: Tzadik Nistar on March 22, 2016, 04:47:54 PM
On any loan below market interest rates (Fed rates) you would pay taxes on the imputed interest rate.

If the Fed rate is 2.25 for a long term loan compounded annually ( https://www.irs.gov/pub/irs-drop/rr-16-09.pdf ) and you are paying 1.25, the imputed interest would be 1% ($1) and you would pay tax on $1 (say 35 cents)
Thanks for your help
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on March 22, 2016, 05:47:55 PM

On any loan below market interest rates (Fed rates) you would pay taxes on the imputed interest rate.

If the Fed rate is 2.25 for a long term loan compounded annually ( https://www.irs.gov/pub/irs-drop/rr-16-09.pdf ) and you are paying 1.25, the imputed interest would be 1% ($1) and you would pay tax on $1 (say 35 cents)
Cmiiw but i think that is only for loans above $10,000(with certain exceptions) and limited to the borrower's net investment income if that makes a difference in your case.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on March 22, 2016, 06:05:03 PM
Cmiiw but i think that is only for loans above $10,000(with certain exceptions) and limited to the borrower's net investment income if that makes a difference in your case.
Sounds like you are right! Interesting to know.

Imputed interest rules also do not apply to:

>Gift loans of $10,000 or less (aka de minimis loans), unless it is used to purchase income producing property, in which case, the following $100,000 rule applies.
>Loans of $100,000 or less. If the loan is used to purchase investment property, then imputed interest rules do not apply if the net investment income from the property does not exceed $1,000.

If net investment income is greater than $1,000, then the gross investment income is the lesser of the imputed interest, as calculated by using the AFR, or the actual gross income earned, since the objective of the imputed interest rules was to prevent income shifting. Net investment income is gross income from all investments minus related expenses.

Net Investment Income = Gross Investment Income – Investment Expenses

If Net Investment Income ≤ $1,000 then Imputed Interest = 0

Else: Net Investment Income = Lesser of (Imputed Interest Computation or Actual Gross Investment Income) – Investment Expenses

However, if the primary purpose of the $100,000 loan was tax avoidance, then the interest is imputed and not limited by the borrower's net investment income, since the purpose of the imputed interest rules was to prevent high tax-bracket taxpayers from shifting income to lower bracket relatives.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 27, 2016, 05:02:52 PM
can i take expense of lunches in school which is paid separately and is not tuition, for a first grader on 2441?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 27, 2016, 07:07:11 PM
can i take expense of lunches in school which is paid separately and is not tuition, for a first grader on 2441?
based on what svara? after school expense?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on March 28, 2016, 06:58:31 AM
can i take expense of lunches in school which is paid separately and is not tuition, for a first grader on 2441?


No.
Title: Re: any accountants out there that i can ask a question?
Post by: bermo on March 30, 2016, 07:37:22 PM
i am filing taxes for someone for 2014/2015
i mailed in the 2014 forms two weeks ago
i am trying to E-file for 2015 but it got rejected because the AGI from 2014 isn't in the system (i also cant get a pin for the same reason)
should a wait two weeks to file
or is there anything i can do (like writing AGI 0)
thank you
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on March 31, 2016, 12:02:56 PM
Can a shareholder in an S Corp have a negative equity balance?

TIA
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 31, 2016, 01:28:21 PM
Can a shareholder in an S Corp have a negative equity balance?

TIA
If he takes out more then he has, yes.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 31, 2016, 02:14:00 PM
If he takes out more then he has, yes.
Unlike stock basis, AAA may be reduced below zero, but only by losses, not by a distribution
while AAA can be driven negative by losses, a shareholder’s basis in the S corporation’s stock cannot be below zero

 Regs. Sec. 1.1368-2(a)(3)(ii). Note, AAA is reduced by the full amount of losses or deductions the S corporation incurred during the year, even if the losses or deductions are limited at the shareholder level because of the lack of basis under Sec. 1366, passive activity limitations under Sec. 469, or at-risk limitations under Sec. 465. - See more at: http://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html#fn_21
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 31, 2016, 03:22:56 PM
Unlike stock basis, AAA may be reduced below zero, but only by losses, not by a distribution
while AAA can be driven negative by losses, a shareholder’s basis in the S corporation’s stock cannot be below zero

 Regs. Sec. 1.1368-2(a)(3)(ii). Note, AAA is reduced by the full amount of losses or deductions the S corporation incurred during the year, even if the losses or deductions are limited at the shareholder level because of the lack of basis under Sec. 1366, passive activity limitations under Sec. 469, or at-risk limitations under Sec. 465. - See more at: http://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html#fn_21
May not. What if he did?
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on March 31, 2016, 05:23:50 PM
Unlike stock basis, AAA may be reduced below zero, but only by losses, not by a distribution
while AAA can be driven negative by losses, a shareholder’s basis in the S corporation’s stock cannot be below zero

 Regs. Sec. 1.1368-2(a)(3)(ii). Note, AAA is reduced by the full amount of losses or deductions the S corporation incurred during the year, even if the losses or deductions are limited at the shareholder level because of the lack of basis under Sec. 1366, passive activity limitations under Sec. 469, or at-risk limitations under Sec. 465. - See more at: http://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html#fn_21
TYVM
Sorry for the ignorance but what is AAA?
Never mind I see now - accumulated adjustments account
Title: Re: any accountants out there that i can ask a question?
Post by: TimT on April 01, 2016, 09:42:57 AM
I'm going to do a name change (first name) for a baby but I won't have the new documents before the filing deadline. If I put down the current name what will I need to send the IRS when filing next year that they shouldn't count it as 2 separate kids ?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 01, 2016, 05:41:50 PM
I'm going to do a name change (first name) for a baby but I won't have the new documents before the filing deadline. If I put down the current name what will I need to send the IRS when filing next year that they shouldn't count it as 2 separate kids ?
I'm NOT an accountant, but I would assume the IRS only looks at the SS# on your tax form, and won't notice a name change at all.
Title: Re: any accountants out there that i can ask a question?
Post by: TimT on April 01, 2016, 06:04:29 PM
I'm NOT an accountant, but I would assume the IRS only looks at the SS# on your tax form, and won't notice a name change at all.
The new ss card (with the new name) would be the same number as the present card ?
Title: Re: any accountants out there that i can ask a question?
Post by: broketeacher on April 01, 2016, 06:27:21 PM
Hi Accountants,

I own a small business and sometimes have to travel for meetings  I know I can use airline costs as a legitimate tax write off when I fly for work, but there are times when flights are so expensive, that it's a pity not to use points.

My accountant said I could use my personal points to fly (for work) and reimburse myself from the business.  My question is how much to pay myself back - would it be the current selling price of the ticket?  I could screenshot it for records.  Or would it be the value of the points?  If so, how would I calculate that?

Thank you.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 02, 2016, 09:27:32 PM
The new ss card (with the new name) would be the same number as the present card ?
With a name change to get married its the same.  If an adult with a work history changed his name, wouldn't the # be the same so his contribution history follows him?
Title: Re: any accountants out there that i can ask a question?
Post by: TimT on April 02, 2016, 09:40:11 PM
With a name change to get married its the same.  If an adult with a work history changed his name, wouldn't the # be the same so his contribution history follows him?
Ok, thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 02, 2016, 10:04:42 PM
I'm going to do a name change (first name) for a baby but I won't have the new documents before the filing deadline. If I put down the current name what will I need to send the IRS when filing next year that they shouldn't count it as 2 separate kids ?
What exactly is your concern about the IRS "counting them as 2 separate kids"?

I am assuming that you are not filing a separate tax return for the child's earnings. So if all it is you are "concerned" about is naming the child as a dependent, I would think it is a total non issue. There is no law that says you must list your children on your return. Most people will do it for tax reasons, but depending on income and number of children, adding another child as a dependent will not make any difference. Your dependents can change from one year to the next, and they don't even need to be your own children.
Title: Re: any accountants out there that i can ask a question?
Post by: TimT on April 02, 2016, 10:32:44 PM
What exactly is your concern about the IRS "counting them as 2 separate kids"?

I am assuming that you are not filing a separate tax return for the child's earnings. So if all it is you are "concerned" about is naming the child as a dependent, I would think it is a total non issue. There is no law that says you must list your children on your return. Most people will do it for tax reasons, but depending on income and number of children, adding another child as a dependent will not make any difference. Your dependents can change from one year to the next, and they don't even need to be your own children.
Was just wondering if I would run into any issues next year.
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 02, 2016, 10:42:32 PM
The new ss card (with the new name) would be the same number as the present card ?
Same SS#. They will verify the name change with the Social Security Department before sending back your return. From personal experience. Stated processing on the Where's My Return website for a couple of weeks,  and when I called the guy said that there's nothing wrong with my return, just that there was a name change in the past year and they were waiting for a response from the SS Department. I got the return 2 days later.
Title: Re: any accountants out there that i can ask a question?
Post by: TimT on April 02, 2016, 10:51:01 PM
Same SS#. They will verify the name change with the Social Security Department before sending back your return. From personal experience. Stated processing on the Where's My Return website for a couple of weeks,  and when I called the guy said that there's nothing wrong with my return, just that there was a name change in the past year and they were waiting for a response from the SS Department. I got the return 2 days later.
Good to know, thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2016, 06:06:13 PM
Couldn't file free with turbo cuz of a pathetic little 1099 misc.

Any free programs even for "complex returns" including 1099misc?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 03, 2016, 06:16:44 PM
Couldn't file free with turbo cuz of a pathetic little 1099 misc.

Any free programs even for "complex returns" including 1099misc?
https://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2016, 06:25:19 PM
https://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free
I'm above that I think. That's 31k agi max. Cmiiw.

When using regular turbo tax, it seemed free, until it forced me to purchase "delux" for $54 when I mentioned 1099misc.

Is there a way around this?

Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2016, 08:25:56 PM
ETA Free Tax USA

Total $11 for the state  :)  coupon FREETAXUSA10 10% off


I believe that everyone officially provides free 1040's, but they get you for the extras like 1099's/State returns etc. Free tax USA doesnt charge extra for 1099's and the state was only 12$

The interface is definitely not as user friendly and as "noobish" as turbo. - If you are unsure, I recommend to use turbo first to make sure you dont miss anything, then re input the data into FTUSA.
Title: Re: any accountants out there that i can ask a question?
Post by: David Smith on April 03, 2016, 09:19:41 PM
Easiest way to reduce Adjusted Gross Income for a household by $10k? Thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on April 03, 2016, 09:35:09 PM
Easiest way to reduce Adjusted Gross Income for a household by $10k? Thanks.
IRA contributions?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on April 03, 2016, 10:06:20 PM
What is the going price for filing simple business taxes for an S corporation? My accountant is charging me $500 I feel like its a bit pricy for something that seems to be pretty straightforward. This is in addition to the quarterly filing fee.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 03, 2016, 10:13:16 PM
What is the going price for filing simple business taxes for an S corporation? My accountant is charging me $500 I feel like its a bit pricy for something that seems to be pretty straightforward. This is in addition to the quarterly filing fee.
How much do you nudge?   cuz that's what he's charging you for.
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on April 03, 2016, 10:15:49 PM
How much do you nudge?   cuz that's what he's charging you for.
Lol. Very little. I just give him the gross and expense reports and that's about it.
Title: Re: any accountants out there that i can ask a question?
Post by: Dave A on April 03, 2016, 11:22:01 PM
A friend received a 1099-MISC from Rabbinical school for annual stipend.  Box 3 income.  Does he need to file Sch C, too?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 04, 2016, 12:32:55 PM
I am contemplating taking a withdrawal from my ROTH IRA for something that I might deem as worthwhile under the circumstances.

Since basis can come out of a ROTH IRA first, without tax or penalty, that shouldn't be my concern.

My question is, how do I document (and is this something that goes on next year's return) that my withdrawal was only basis and not subject to tax or penalty? My ROTH IRA has been rolled over several times, and also includes a rollover from a ROTH 401k.
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on April 04, 2016, 01:05:37 PM
I am contemplating taking a withdrawal from my ROTH IRA for something that I might deem as worthwhile under the circumstances.

Since basis can come out of a ROTH IRA first, without tax or penalty, that shouldn't be my concern.

My question is, how do I document (and is this something that goes on next year's return) that my withdrawal was only basis and not subject to tax or penalty? My ROTH IRA has been rolled over several times, and also includes a rollover from a ROTH 401k.
You enter the basis when you do that year's return. If you get audited, you'd have to prove the basis with the tax docs you'd have received when you made contributions and or rolled over other IRA/401k's.
Title: Re: any accountants out there that i can ask a question?
Post by: Dave A on April 04, 2016, 01:12:51 PM
A friend received a 1099-MISC from Rabbinical school for annual stipend.  Box 3 income.  Does he need to file Sch C, too?

BUMP
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 04, 2016, 02:00:52 PM
BUMP
you dont need to file a sch c, can just go on line 21
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 04, 2016, 04:30:23 PM
You enter the basis when you do that year's return. If you get audited, you'd have to prove the basis with the tax docs you'd have received when you made contributions and or rolled over other IRA/401k's.
Well, I hope I don't need to actually take the money out of the ROTH IRA and come up with other funds for the intended purpose, and if I do need to take the money out, I sincerely hope I don't get audited, as I would have to dig very deep to find the rollovers, and if I am not mistaken, back in the day, there was no form generated by a provider upon a CONTRIBUTION to a ROTH IRA.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 05, 2016, 05:50:30 PM
Well, I hope I don't need to actually take the money out of the ROTH IRA and come up with other funds for the intended purpose, and if I do need to take the money out, I sincerely hope I don't get audited, as I would have to dig very deep to find the rollovers, and if I am not mistaken, back in the day, there was no form generated by a provider upon a CONTRIBUTION to a ROTH IRA.

A 5498 wouldn't show it? How far back in the day?
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on April 05, 2016, 10:05:44 PM
We live in NJ, and my wife worked in NY. TurboTax completed married filing jointly forms for NY, however, this means we're paying taxes on my income as well.
According to TurboTax (https://ttlc.intuit.com/questions/2787890-hi-we-are-married-filing-jointly-both-live-in-nj-but-my-husband-earned-wages-in-ny), she can file married filing separately for NY, and I don't have to file at all.
However, according to the instructions for NY IT-203 (https://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf) (page 15), it seems that in such a situation we are required to file jointly:
Quote
If you filed a joint federal return and:
1) both spouses are nonresidents but only one has New York source income, or ...
you must file a joint New York State return using filing status (2) (married filing jointly) and include in the Federal amount column the joint income as reported on your federal income tax return. However, only the spouse with New York source income (or the part-year resident spouse) should sign Form IT-203. That spouse must also complete Form IT-203-C, Nonresident or Part-Year Resident Spouse’s Certification (see Other forms you may have to file), and submit it with your Form IT-203. In this case, any refund or notice of tax, penalty, or interest due will be issued only in the name of the spouse required to sign Form IT-203.
Am I missing something?
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on April 05, 2016, 10:11:11 PM
IRA contributions?
Was is the deadline to still receive 2015 deduction?
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on April 05, 2016, 10:15:54 PM
Was is the deadline to still receive 2015 deduction?
Usually the same as tax filing
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 05, 2016, 10:22:37 PM
If I regularly work from home for the pleasure of my employer. - like nights and weekends, can I deduct daily commuting miles between my home office and my employers office?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on April 05, 2016, 10:35:25 PM
If I regularly work from home for the pleasure of my employer. - like nights and weekends, can I deduct daily vomiting costs between my home office and my employers office?

Hmm, if it's a daily occurrence I think it's being caused by your job  ;D
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 05, 2016, 10:48:21 PM
Hmm, if it's a daily occurrence I think it's being caused by your job  ;D
Definitely
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 05, 2016, 10:50:46 PM
We live in NJ, and my wife worked in NY. TurboTax completed married filing jointly forms for NY, however, this means we're paying taxes on my income as well.
According to TurboTax (https://ttlc.intuit.com/questions/2787890-hi-we-are-married-filing-jointly-both-live-in-nj-but-my-husband-earned-wages-in-ny), she can file married filing separately for NY, and I don't have to file at all.
However, according to the instructions for NY IT-203 (https://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf) (page 15), it seems that in such a situation we are required to file jointly:Am I missing something?

You file NY as joint. You do not pay taxes on your income. Your w2 should not have any NY source income so it won't be pulled into the right hand side of the return.  Similar if you are 1099 income. If the total income for NY doesnt match what your wife earned then you probably input something wrong.

Also, if you have any interest or dividends or capgains, do not report them to NY.
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on April 05, 2016, 11:15:20 PM
You file NY as joint. You do not pay taxes on your income. Your w2 should not have any NY source income so it won't be pulled into the right hand side of the return.  Similar if you are 1099 income. If the total income for NY doesnt match what your wife earned then you probably input something wrong.

Also, if you have any interest or dividends or capgains, do not report them to NY.
Let me clarify.
As of now, our income is low enough that we're not paying any NJ or federal taxes.
My wife made under $5k in NY. If NY would only tax that money, we would get a $2k refund for child tax credits. However, NY taxes you based on your federal AGI, which is much higher, so even after all the deductions, we would still have to pay a few dollars to NY
I don't understand why NY should tax you on money not made in NY.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 05, 2016, 11:51:15 PM
A 5498 wouldn't show it? How far back in the day?
Earliest contributions were probably around 1994 or 1995
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 06, 2016, 11:25:28 AM
Let me clarify.
As of now, our income is low enough that we're not paying any NJ or federal taxes.
My wife made under $5k in NY. If NY would only tax that money, we would get a $2k refund for child tax credits. However, NY taxes you based on your federal AGI, which is much higher, so even after all the deductions, we would still have to pay a few dollars to NY
I don't understand why NY should tax you on money not made in NY.

NY determines the tax rate based on your Federal earnings, but then applies that rate only to the amount you earned in NY. I can see how that makes an issue for someone with high total earnings and extremely low NY earnings. Sorry I can't help further.
Title: Re: any accountants out there that i can ask a question?
Post by: mringelheim on April 06, 2016, 12:20:06 PM
can anyone recommend a good cpa who knows how to handle real estate investment llcs- specifically looking for help with allocating deprecitation and interest to management members- thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 06, 2016, 12:34:29 PM
Does NJ require quarterly payments if i am making a payment now based on 2015 earnings?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 06, 2016, 01:43:16 PM
Does NJ require quarterly payments if i am making a payment now based on 2015 earnings?
yes
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 06, 2016, 02:30:37 PM
yes
ty  :-[
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2016, 03:00:30 PM
If I regularly work from home for the pleasure of my employer. - like nights and weekends, can I deduct daily commuting miles between my home office and my employers office?
Bump?
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on April 06, 2016, 03:33:42 PM
NY determines the tax rate based on your Federal earnings, but then applies that rate only to the amount you earned in NY. I can see how that makes an issue for someone with high total earnings and extremely low NY earnings. Sorry I can't help further.
That's exactly my situation. IMO it's a huge chutzpah that NY forces you to file jointly.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 06, 2016, 05:51:17 PM
Bump?
https://www.mileiq.com/blog/when-is-driving-from-home-tax-deductible/
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 06, 2016, 06:49:47 PM
That's exactly my situation. IMO it's a huge chutzpah that NY forces you to file jointly.

I hear that. At the end of the day, how much are you losing after applying the credit on sch. A of the NJ form? A lot or a little?

It sounds like you would either get $2k or pay to NY, is that right? The credit will only be a pct of the taxes paid to ny, but wont make up for any negative taxes that you lost.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 06, 2016, 09:02:49 PM
https://www.mileiq.com/blog/when-is-driving-from-home-tax-deductible/
How does that address?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 07, 2016, 12:35:37 PM
How does that address?
What if You Have a Home Office?

One way to avoid the harsh commuting rule is to have a home office that qualifies as your principal place of business. In this event, you can deduct the cost of any trips you make from your home office to another business location. For example, you can deduct the cost of driving from home to your outside office, a client’s office, or to attend a business-related seminar. The commuting rule doesn’t apply if you work at home because, with a home office, you never commute to work (you’re there already).
Your home office will qualify as your principal place of business
 if it is the place where you earn most of your income or perform the administrative or management tasks for your practice. If your home office qualifies as your principal place of business, you can vastly increase your deductions for business trips.
Example: Kim (from the above example) maintains a home office where she does the administrative work for her business; she also has an outside office where she does her other work. She can deduct all her business trips from her home office, including the 20-mile daily trip to her outside office. Thanks to her home office, she can now deduct 100 miles per week as a business trip expense, all of which was a nondeductible commuting expense before she established her home office.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2016, 12:48:12 PM
My question is really if i can call my home office my principal place of business?

I am pretty sure that most employees do not take advantage of this deduction. So wanted to hear more opinions regarding the definition of principal place for an employee.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 07, 2016, 02:12:02 PM
My question is really if i can call my home office my principal place of business?

I am pretty sure that most employees do not take advantage of this deduction. So wanted to hear more opinions regarding the definition of principal place for an employee.
i wouldn;t call nights and weekends, principal for anything .. add a day or two then we can talk
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 07, 2016, 02:22:31 PM
i wouldn;t call nights and weekends, principal for anything .. add a day or two then we can talk
Not so sure.. See pub 587. It all seems so subjective..

Btw, weekends means most of Sunday and all of motze Shabbos in our industry...
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 07, 2016, 03:53:15 PM
Not so sure.. See pub 587. It all seems so subjective..

Btw, weekends means most of Sunday and all of motze Shabbos in our industry...
tell it to the Judge
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 10, 2016, 02:08:51 PM
Does anyone know if there is a obligation of paying quarterlies following a year where one owed more then $1,500 on a federal return or is it just a piece of advice?
Title: Re: any accountants out there that i can ask a question?
Post by: elit on April 10, 2016, 02:46:36 PM
Does anyone know if there is a obligation of paying quarterlies following a year where one owed more then $1,500 on a federal return or is it just a piece of advice?
I hope not
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 10, 2016, 04:17:28 PM
I hope not
u hope not to which?
Title: Re: any accountants out there that i can ask a question?
Post by: elit on April 10, 2016, 04:49:09 PM
u hope not to which?
To having to do quarterlys
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 10, 2016, 07:38:16 PM
To having to do quarterlys
it is usually a good sign.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 11, 2016, 02:44:03 PM
Does anyone know if there is a obligation of paying quarterlies following a year where one owed more then $1,500 on a federal return or is it just a piece of advice?
BUMP
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 11, 2016, 02:58:14 PM
BUMP
Lmgtfy?

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Estimated-Taxes--How-to-Determine-What-to-Pay-and-When/INF12007.html
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 12, 2016, 12:17:20 AM
Lmgtfy?

https://turbotax.intuit.com/tax-tools/tax-tips/Small-Business-Taxes/Estimated-Taxes--How-to-Determine-What-to-Pay-and-When/INF12007.html
the question is can I make one payment by the last. Quarter once I know my income or i will have to pay a penalty?  If yes to penalty. How much?
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 12, 2016, 12:54:17 AM
A wife works 10 months a year and not during the summer, can she use amounts paid for camp in the summer ( when she doesn't work) for child care for form 2441.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 12, 2016, 01:20:42 AM
the question is can I make one payment by the last. Quarter once I know my income or i will have to pay a penalty?  If yes to penalty. How much?
I was under the impression that as long as a specific amount was in before DEC 31, you're ok.  The amount is XX??% of the tax you paid last year, unless this year's tax is less.  That percentage might be 85%, but I may be totally wrong.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 12, 2016, 11:19:29 AM
A wife works 10 months a year and not during the summer, can she use amounts paid for camp in the summer ( when she doesn't work) for child care for form 2441.

Pretty sure the answer is no, but read the form yourself and decide. The credit is for childcare expenses paid so that the parent can go to work. Is anyone going to catch you? Probably no. But it's not legit.

Quote
The care was provided so you (and your spouse if filing jointly) could work or look for work.
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on April 12, 2016, 11:48:03 AM
Pretty sure the answer is no, but read the form yourself and decide. The credit is for childcare expenses paid so that the parent can go to work. Is anyone going to catch you? Probably no. But it's not legit.

I hear what you are saying, I saw that in the instructions. My only issue is that if you take vacation you don't have to reduce your child care by those days. I think this might also be similar, your vacation is the summer in order to work the 10 months.
Let me know if you agree.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 12, 2016, 11:58:14 AM
I hear what you are saying, I saw that in the instructions. My only issue is that if you take vacation you don't have to reduce your child care by those days. I think this might also be similar, your vacation is the summer in order to work the 10 months.
Let me know if you agree.

https://www.irs.gov/publications/p503/ar02.html (https://www.irs.gov/publications/p503/ar02.html)
Quote
Work for part of year.
If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work related. However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250).

Temporary absence from work.
You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. Instead, you can figure your credit including the expenses you paid for the period of absence.
An absence of 2 weeks or less is a short, temporary absence. An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 12, 2016, 12:03:01 PM
Quote
Part-time work.
If you work part-time, you generally must figure your expenses for each day. However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. Any day when you work at least 1 hour is a day of work.

Example 1.

You work 3 days a week. While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Your child attends the center 5 days a week. Your work-related expenses are limited to $150 a week.

Example 2.

The facts are the same as in Example 1 except the center does not offer a 3-day option. The entire $250 weekly fee may be a work-related expense.

If you have genuine work related obligations during the summer you might still qualify.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 12, 2016, 04:59:23 PM
I was under the impression that as long as a specific amount was in before DEC 31, you're ok.  The amount is XX??% of the tax you paid last year, unless this year's tax is less.  That percentage might be 85%, but I may be totally wrong.
can anyone state that this is for sure before the dead line?
Title: Re: any accountants out there that i can ask a question?
Post by: 4yourinfo on April 12, 2016, 11:39:37 PM
If you have genuine work related obligations during the summer you might still qualify.
If you can't collect unemployment so then your working?
Title: Re: any accountants out there that i can ask a question?
Post by: eliteflyer on April 13, 2016, 01:08:19 AM
Children attend a day care that refuses to take checks (and something tells me, they're off the books). Any suggestions for claiming expenses for child care credit? Same thing with occasional babysitting while my spouse and I are at work. Can I claim the related expenses for the caregiver who refused to provide a SSN?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 13, 2016, 01:39:05 AM
I was under the impression that as long as a specific amount was in before DEC 31, you're ok.  The amount is XX??% of the tax you paid last year, unless this year's tax is less.  That percentage might be 85%, but I may be totally wrong.
I got the following information from the IRS (https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes) website.
You’re supposed to pay estimated taxes if you expect to owe tax of $1,000 or more when you file your return.
You won’t get a penalty for not paying the estimated tax if:
You paid at least 90% of the tax owed  OR  100% of the amount of the tax for the prior year.
(The deadlines for the estimated payments are 15 days after the close of the quarter.  Or they can give you a penalty.)


avrumy - I hope you don't get a penalty. Good luck.

Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 13, 2016, 12:14:54 PM
the question is can I make one payment by the last. Quarter once I know my income or i will have to pay a penalty?  If yes to penalty. How much?

Each quarter you would need to pay 1/4 of the total tax owed, and if you don't there will be penalties. However there is something called the Annualized Income Installment Method where if you don't make an even amount each quarter, you can tell the IRS how much income is attributable to each quarter and you would only need to pay tax on that amount each quarter. So if you earned all the income in the last quarter you would be able to pay all the tax by Jan 15.

You would need to complete Schedule Al and file it with form 2210 with your return.
See https://www.irs.gov/publications/p505/ch02.html#en_US_2016_publink1000194669 (https://www.irs.gov/publications/p505/ch02.html#en_US_2016_publink1000194669)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 13, 2016, 12:47:35 PM
Each quarter you would need to pay 1/4 of the total tax owed, and if you don't there will be penalties. However there is something called the Annualized Income Installment Method where if you don't make an even amount each quarter, you can tell the IRS how much income is attributable to each quarter and you would only need to pay tax on that amount each quarter. So if you earned all the income in the last quarter you would be able to pay all the tax by Jan 15.

You would need to complete Schedule Al and file it with form 2210 with your return.
See https://www.irs.gov/publications/p505/ch02.html#en_US_2016_publink1000194669 (https://www.irs.gov/publications/p505/ch02.html#en_US_2016_publink1000194669)
Does anyone know how the penalty is calculated?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 13, 2016, 12:53:41 PM
Does anyone know how the penalty is calculated?
lmgtfy
http://www.fool.com/knowledge-center/2015/10/18/how-to-calculate-interest-rate-penalties-on-late-t.aspx
Title: Re: any accountants out there that i can ask a question?
Post by: yakov116 on April 13, 2016, 12:57:55 PM
Children attend a day care that refuses to take checks (and something tells me, they're off the books). Any suggestions for claiming expenses for child care credit? Same thing with occasional babysitting while my spouse and I are at work. Can I claim the related expenses for the caregiver who refused to provide a SSN?
Same story and i was told no (and I paid with checks)
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 13, 2016, 02:08:44 PM
lmgtfy
http://www.fool.com/knowledge-center/2015/10/18/how-to-calculate-interest-rate-penalties-on-late-t.aspx
ty- basickly nothing to crazy
Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on April 13, 2016, 10:21:24 PM
Same story and i was told no (and I paid with checks)
Yes. But you can't efile. Paper file with name and address.
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on April 14, 2016, 02:51:00 AM
Is it a red flag if you itemize 18% of your AGI to charity?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 14, 2016, 06:26:26 AM
Is it a red flag if you itemize 18% of your AGI to charity?

What AGI range?

While it might be a red flag, I think that unless there's some beef in the return, IRS wouldn't bother (i.e. If it's 50k income on a W-2, even if they end up disallowing all the charitable deductions, how much would they collect? And it might cost much more to actually audit that).
Title: Re: any accountants out there that i can ask a question?
Post by: 4yourinfo on April 14, 2016, 10:18:16 AM
Yes. But you can't efile. Paper file with name and address.
Sounds like borderline miseerah
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 14, 2016, 10:34:53 AM
Is it a red flag if you itemize 18% of your AGI to charity?
If you send in copies of your receipts with your return, even though you don't need to, it might make them lower the flag immediately.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 14, 2016, 12:43:17 PM
If you send in copies of your receipts with your return, even though you don't need to, it might make them lower the flag immediately.

Where are you getting this from?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 14, 2016, 12:44:43 PM
Where are you getting this from?
+100
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 14, 2016, 01:43:27 PM
If you send in copies of your receipts with your return, even though you don't need to, it might make them lower the flag immediately.
-1
Never volunteer information to the government unless absolutely necessary
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 14, 2016, 01:53:44 PM
Yes. But you can't efile. Paper file with name and address.
What happens if you efile? On TurboTax, I just left the SSN# field blank, but it asked for the name and address.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 14, 2016, 03:47:21 PM
What happens if you efile? On TurboTax, I just left the SSN# field blank, but it asked for the name and address.

It won't let you efile unless the payee is a tax exempt organization. Turbo Tax will make you print out the return and tell you where to mail it.
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 14, 2016, 04:29:21 PM
It won't let you efile unless the payee is a tax exempt organization. Turbo Tax will make you print out the return and tell you where to mail it.
That's good to know, thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on April 14, 2016, 05:24:48 PM
That's good to know, thanks.

You might want to ask your LOR because

Sounds like borderline miseerah
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 14, 2016, 07:11:37 PM
if i made a electronic payment to the IRS do i also need to send in the 4868? same question for sate?
ty
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 14, 2016, 08:07:06 PM
You might want to ask your LOR because
Yes, I definitely will. I see two clear sides to this issue  .
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on April 15, 2016, 03:01:52 AM
What AGI range?

While it might be a red flag, I think that unless there's some beef in the return, IRS wouldn't bother (i.e. If it's 50k income on a W-2, even if they end up disallowing all the charitable deductions, how much would they collect? And it might cost much more to actually audit that).
Most of it is not w2 income rather S.E. income..
Title: Re: any accountants out there that i can ask a question?
Post by: Bostener on April 15, 2016, 03:30:38 AM
Is it a red flag if you itemize 18% of your AGI to charity?

No one knows the real answer except if you have access to the IRS sealed formula on how they choose to audit. But common knowledge says that it may.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 15, 2016, 07:23:35 AM
-1
Never volunteer information to the government anyone unless absolutely necessary

FTFY
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 15, 2016, 07:29:51 AM
Most of it is not w2 income rather S.E. income..

What income range on your schedule C?

I would say that the Schedule C automatically puts you at a much higher audit risk. The gross revenues probably make a big difference. If they're not too high, so there's not enough beaf there to justify an audit, that can end up costing the IRS more than if they disallowed all deductions and business expenses.

If the gross revenues are significant, then you should just make sure you can document and substantiate everything, and if you can, just sleep well. Rumor has it that most audits result in no change, or the IRS owing money to the taxpayer.
Title: Re: any accountants out there that i can ask a question?
Post by: yg99 on April 18, 2016, 12:56:23 PM
How can I confirm (without asking directly) if my accountant electronically filed my return?
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 18, 2016, 01:12:38 PM
How can I confirm (without asking directly) if my accountant electronically filed my return?

Try entering your info in "Where's My Refund" forms?
Title: Re: any accountants out there that i can ask a question?
Post by: yg99 on April 18, 2016, 01:36:10 PM
Worked!

Thank you.
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 18, 2016, 02:26:10 PM

You might want to ask your LOR because

Sounds like borderline miseerah
Asked. He said absolutely assur. Took her name and address out of the return, and I lost a lot of money...

Title: Re: any accountants out there that i can ask a question?
Post by: jackofall on April 18, 2016, 02:51:38 PM
Asked. He said absolutely assur. Took her name and address out of the return, and I lost a lot of money...
Not disagreeing with psak. However what the babysitter is doing is borderline/absolute stealing. It's 1 thing to steal from the govt but a whole other thing when it directly impacts someone else.
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 18, 2016, 02:53:25 PM
Not disagreeing with psak. However what the babysitter is doing is borderline/absolute stealing. It's 1 thing to steal from the govt but a whole other thing when it directly impacts someone else.
Absolutely agree. She's doing the wrong thing. But I can't let that cause me to do the wrong thing too.
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on April 18, 2016, 02:57:06 PM
Asked. He said absolutely assur. Took her name and address out of the return, and I lost a lot of money...
I would let the babysitter know that.


Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 18, 2016, 02:59:04 PM
I would let the babysitter know that.
Won't change anything at this point and I'm not looking for a fight. She knows, I asked her if I can have her SS# and she said no...
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on April 18, 2016, 04:14:02 PM
If she knows how much she costs you....

Also, someone may get a different psak in the future.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on April 18, 2016, 05:14:28 PM
If she knows how much she costs you....

Also, someone may get a different psak in the future.
I'm specifically using a licensed place next year because the $1,200 savings make it worth it. People should really take that into account when choosing.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on April 18, 2016, 05:19:26 PM
If she knows how much she costs you....

Also, someone may get a different psak in the future.

The bigger takeaway is that now that he knows how much he is not getting back in credits, he can factor that in to choice of DDC in future. A higher price tag could be cheaper after credits.

I don't think most people would think of going to paper filing in order to bypass entering the EIN/SSN of the provider. Frankly, she may not even be aware that it's possible to do so and have a false sense of security. It would be doing her a favor to let her know.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 18, 2016, 05:53:30 PM
I'm specifically using a licensed place next year because the $1,200 savings make it worth it. People should really take that into account when choosing.
you dont need licensed, only a SS#, name and address
Very often the babysitter is claiming at least some of the income, but still wont give out their info, for all sorts of other reasons, (ID Theft worries etc., Red flag on her return worries.. even if they aren't rational) absolutely borderline stealing. I wonder if the LOR would allow this information to be passed on when asked for a reference. (IMHO yes, if not said maliciously)
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 18, 2016, 06:33:37 PM
I'm specifically using a licensed place next year because the $1,200 savings make it worth it. People should really take that into account when choosing.
Same here, am going to make sure upfront that the babysitter is okay with me reporting. Don't care much for this fight because I'm switching soon for other reasons anyway.
Title: Re: any accountants out there that i can ask a question?
Post by: eliteflyer on April 18, 2016, 06:43:09 PM
Same here, am going to make sure upfront that the babysitter is okay with me reporting. Don't care much for this fight because I'm switching soon for other reasons anyway.
Keep in mind that if you're talking about an in-home babysitter (vs. a daycare) there are withholding tax issues to consider as well.
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 18, 2016, 06:48:18 PM
Keep in mind that if you're talking about an in-home babysitter (vs. a daycare) there are withholding tax issues to consider as well.
For her, you mean?
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on April 18, 2016, 08:12:51 PM
For her, you mean?
The employer had withholding, FICA, etc responsibilities as well.
Title: Re: any accountants out there that i can ask a question?
Post by: Ephcc90 on April 18, 2016, 08:19:13 PM
you dont need licensed, only a SS#, name and address
Very often the babysitter is claiming at least some of the income, but still wont give out their info, for all sorts of other reasons, (ID Theft worries etc., Red flag on her return worries.. even if they aren't rational) absolutely borderline stealing. I wonder if the LOR would allow this information to be passed on when asked for a reference. (IMHO yes, if not said maliciously)
True but good luck getting a SS# or EIN from the basement playgroup next door...

Also, if the numbers don't add up, you can really be getting them in trouble... I don't think it's very hard for the IRS to match the numbers...
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 18, 2016, 08:43:23 PM
The employer had withholding, FICA, etc responsibilities as well.

And don't forget worker's comp that can bankrupt you if DOL decides you need to have it and you don't!
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 18, 2016, 11:19:27 PM
And don't forget worker's comp that can bankrupt you if DOL decides you need to have it and you don't!
are you talking about household employees?
Unless the babysitter is coming to your house why would that be a consideration?
The question was about the basement babysitter next door. They are an independent contractor and take care of their own taxes.
Very often as far as Taxes and programs it is very beneficial for them to be claiming at least some of the income and they probably do, to get the EIC, even if they have to pay a bit for SS
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on April 18, 2016, 11:25:34 PM
are you talking about household employees?
Unless the babysitter is coming to your house why would that be a consideration?

Sorry if I wasn't paying attention. I was indeed referring to a babysitter that would come to your home and would be considered a household employee.
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 18, 2016, 11:28:50 PM
Does Parsonage count as income in regards to Jersey Care and/or food stamps and HUD in NJ?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 19, 2016, 12:45:31 PM
Does Parsonage count as income in regards to Jersey Care and/or food stamps and HUD in NJ?
you are asking in the wrong section!! Accountants are trained to do accounting and not the government programs.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 19, 2016, 02:00:28 PM
you are asking in the wrong section!! Accountants are trained to do accounting and not the government programs.
-1
Accountants should know how various types of income are put into the tax forms.
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 19, 2016, 02:18:46 PM
-1
Accountants should know how various types of income are put into the tax forms.
+1 Of course they should!
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on April 19, 2016, 02:58:34 PM
-1
Accountants should know how various types of income are put into the tax forms.
Government programs are not tax forms
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 19, 2016, 04:30:38 PM
-1
Accountants should know how various types of income are put into the tax forms.
correct, what does that have to do with his question??
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 19, 2016, 04:31:09 PM
+1 Of course they should!
what else should they know? explain why?? how come they dont teach it in school??
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 19, 2016, 05:34:50 PM
Sorry for stirring up a sore topic :). Anyways, does anyone know the answer to the question?
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on April 19, 2016, 07:18:56 PM
Sorry for stirring up a sore topic :). Anyways, does anyone know the answer to the question?
Please post here http://forums.dansdeals.com/index.php?topic=12887.585
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 19, 2016, 09:48:39 PM
Please post here http://forums.dansdeals.com/index.php?topic=12887.585

Thank you. I guess there I won't be attacked there for asking about government programs other than Jersey Care... ;)
Title: Re: any accountants out there that i can ask a question?
Post by: beeweegee on April 19, 2016, 11:14:34 PM
what else should they know? explain why?? how come they dont teach it in school??
Lol, I just wrote out a long response to you, then reread the original quesion asked. I misread it - I thought he was asking whether it's considered income for tax purposes. My mistake. Correct, of course they shouldn't!  ;)
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on April 20, 2016, 09:16:16 AM
Lol, I just wrote out a long response to you, then reread the original quesion asked. I misread it - I thought he was asking whether it's considered income for tax purposes. My mistake. Correct, of course they shouldn't!  ;)
Actually, same here.  I must not have read his question through, yet answered any way.  My bad. Sorry.
Title: Re: any accountants out there that i can ask a question?
Post by: ydf on April 20, 2016, 09:17:23 AM
how long after filing a ny tx return should I get the money from the state,? the federal I got 5 days after filing , but the state I still see almost 2 weeks after filing tht they are still possessing it, is it normal to take so long? TIA
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 20, 2016, 09:39:57 AM
Sorry for stirring up a sore topic :). Anyways, does anyone know the answer to the question?
i think the answer is that it depends on the office, the Lakewood HUD office knows all the financial games people play and ask for all sources of income, other offices have never heard of or dont care about certain sources of income. My guess is Parsonage is income if you report it, and if not, unless they specifically ask for it ... :-X :P
as far as asking accountants questions about programs, most accountants i know dont want to know otherwise they would be inundated with every coffee room hocker who once did a $50 1040a, wanting free advice...
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on April 20, 2016, 09:40:38 AM
how long after filing a ny tx return should I get the money from the state,? the federal I got 5 days after filing , but the state I still see almost 2 weeks after filing tht they are still possessing it, is it normal to take so long? TIA
states are much slower, maybe even 2 months but YMMV
Title: Re: any accountants out there that i can ask a question?
Post by: ydf on April 20, 2016, 09:48:30 AM
states are much slower, maybe even 2 months but YMMV
no in ny ime it usually takes a week or 10 days 
anyone with data from this year how long it takes?
Title: Re: any accountants out there that i can ask a question?
Post by: ya on April 20, 2016, 11:13:49 AM
no in ny ime it usually takes a week or 10 days 
anyone with data from this year how long it takes?
took them 5 weeks in NY to get mine.
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 20, 2016, 11:19:09 PM
no in ny ime it usually takes a week or 10 days 
anyone with data from this year how long it takes?
Took about two weeks. Maybe a bit less.
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on April 20, 2016, 11:20:04 PM
i think the answer is that it depends on the office, the Lakewood HUD office knows all the financial games people play and ask for all sources of income, other offices have never heard of or dont care about certain sources of income. My guess is Parsonage is income if you report it, and if not, unless they specifically ask for it ... :-X :P
as far as asking accountants questions about programs, most accountants i know dont want to know otherwise they would be inundated with every coffee room hocker who once did a $50 1040a, wanting free advice...

Ok. Thank you very much for your input. If it goes according to the Magi, then it shouldn't count...
Title: Re: any accountants out there that i can ask a question?
Post by: joe1234 on May 08, 2016, 06:56:24 PM
when filling out the marketplace application, what is childcare considered? lets say the monthly income is $3,000, and childcare costs $500 a month which is deducted directly from my paycheck and is payed to child care directly from my office. do i put down A.$3,000 as gross income, then a deduction of $500. B. $2,500 as the gross income with no deduction. C. $3,000 and no deduction. ?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 08, 2016, 09:09:05 PM
when filling out the marketplace application, what is childcare considered? lets say the monthly income is $3,000, and childcare costs $500 a month which is deducted directly from my paycheck and is payed to child care directly from my office. do i put down A.$3,000 as gross income, then a deduction of $500. B. $2,500 as the gross income with no deduction. C. $3,000 and no deduction. ?

It depends if the money deducted from your paycheck is included in gross income on your W-2 because the marketplace goes with your most recent tax return. If not, then you can exclude it from income for Obamacare as dependent care deductions are not one of the things added to AGI in order to arrive at MAGI.

You should be able to figure out if your employer is including it in your W-2 income by dividing the social security tax on your paycheck by your income. You should get an answer of .062. If the {SS tax} divided by {gross earning less childcare and less health insurance that you pay (if applicable)} = .062 then childcare is not included in W-2 income, but if {SS tax} divided by {gross earning minus only health insurance that you pay (if applicable)} = .062 then childcare is included in W-2 income
Title: Re: any accountants out there that i can ask a question?
Post by: joe1234 on May 08, 2016, 09:39:15 PM
It depends if the money deducted from your paycheck is included in gross income on your W-2 because the marketplace goes with your most recent tax return. If not, then you can exclude it from income for Obamacare as dependent care deductions are not one of the things added to AGI in order to arrive at MAGI.

You should be able to figure out if your employer is including it in your W-2 income by dividing the social security tax on your paycheck by your income. You should get an answer of .062. If the {SS tax} divided by {gross earning less childcare and less health insurance that you pay (if applicable)} = .062 then childcare is not included in W-2 income, but if {SS tax} divided by {gross earning minus only health insurance that you pay (if applicable)} = .062 then childcare is included in W-2 income
thanks.
 i divided the ss tax by paycheck and only after i deducted for childcare did it come out to .062 , so what does that mean?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 08, 2016, 09:47:41 PM
thanks.
 i divided the ss tax by paycheck and only after i deducted for childcare did it come out to .062 , so what does that mean?

You're good. Use option B since the amount deducted for child care is not included in income.

(The info provided is for informational purposes only and not for the purpose of providing legal or accounting advice).
Title: Re: any accountants out there that i can ask a question?
Post by: joe1234 on May 08, 2016, 09:49:44 PM
You're good. Use option B since the amount deducted for child care is not included in income.

(The info provided is for informational purposes only and not for the purpose of providing legal or accounting advice).
thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on May 09, 2016, 03:40:06 PM
you dont need licensed, only a SS#, name and address
Very often the babysitter is claiming at least some of the income, but still wont give out their info, for all sorts of other reasons, (ID Theft worries etc., Red flag on her return worries.. even if they aren't rational) absolutely borderline stealing. I wonder if the LOR would allow this information to be passed on when asked for a reference. (IMHO yes, if not said maliciously)
Let her get an EIN and then she won't need to worry about identity theft from her SS#. Doesn't cost anything.
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on May 09, 2016, 03:46:56 PM
Children attend a day care that refuses to take checks (and something tells me, they're off the books). Any suggestions for claiming expenses for child care credit? Same thing with occasional babysitting while my spouse and I are at work. Can I claim the related expenses for the caregiver who refused to provide a SSN?
Read instructions for Form 2441 Line 1
https://www.irs.gov/pub/irs-pdf/i2441.pdf
Title: Re: any accountants out there that i can ask a question?
Post by: Blazer on May 09, 2016, 03:50:51 PM
Read instructions for Form 2441 Line 1
https://www.irs.gov/pub/irs-pdf/i2441.pdf
Instructions Line 1. I know people that used this and it usually works.
 If the provider does not give
you the information, complete the entries you can on
line 1. For example, enter the provider's name and
address. Enter “See Attached Statement” in the columns
for which you do not have the information. Then, attach a
statement to your return explaining that the provider did
not give you the information you requested.
Title: any accountants out there that i can ask a question?
Post by: Ephcc90 on May 09, 2016, 03:59:01 PM
Instructions Line 1. I know people that used this and it usually works.
 If the provider does not give
you the information, complete the entries you can on
line 1. For example, enter the provider's name and
address. Enter “See Attached Statement” in the columns
for which you do not have the information. Then, attach a
statement to your return explaining that the provider did
not give you the information you requested.
Just remember that if the babysitter meets the definition of a household employee and the wages are above the threshold then you, as the employer, have to pay the SS and Medicare tax, withhold the employees amounts, file all the paperwork, and fulfill all the state obligations.
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on May 18, 2016, 04:15:47 PM
Interesting decision just came out where the Third Circuit reversed a Tax Court decision about deducting accrued fuelpoints.

http://www2.ca3.uscourts.gov/opinarch/143961p.pdf (http://www2.ca3.uscourts.gov/opinarch/143961p.pdf)

(I'm not lawyer, but the opinion did mention (pg. 5) that they didn't revoke any accumulated discounts during the tax years in question, maybe another reason for companies not to confiscate rewards).
Title: Re: any accountants out there that i can ask a question?
Post by: theblakdavid on May 29, 2016, 11:12:48 PM
If I'm registered to collect sales tax in a specific state, must I collect on all items I sell? What if I paid sales tax to the merchant on the item I am now selling? And if I purchase an item from an out of state merchant, which they won't have to charge me sales tax, must I charge sales tax when I resell that item? Tia
Title: Re: any accountants out there that i can ask a question?
Post by: claker on May 29, 2016, 11:25:31 PM
If I'm registered to collect sales tax in a specific state, must I collect on all items I sell? What if I paid sales tax to the merchant on the item I am now selling? And if I purchase an item from an out of state merchant, which they won't have to charge me sales tax, must I charge sales tax when I resell that item? Tia
Sales Tax rules vary by state/jurisdiction but in general if you are registered to collect Sales Tax in a specific state, you must collect the tax on all products you sell in the state, that are subject to Sales Tax.

Again, the rules vary by state but in general you can claim a credit on your sales tax return for sales taxes you paid out on goods you purchased for resale.

Yes, you have to collect sales tax on all goods you sell in a state where you are registered as a sales tax vendor, regardless of where you purchased the merchandise.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on May 29, 2016, 11:25:54 PM


If I'm registered to collect sales tax in a specific state, must I collect on all items I sell? What if I paid sales tax to the merchant on the item I am now selling? And if I purchase an item from an out of state merchant, which they won't have to charge me sales tax, must I charge sales tax when I resell that item? Tia

In most cases, charging sales or not, does not depend on the seller, but rather the buyer.
So unless the buyer is exempt, then yes you would have to charge sales tax.
Title: Re: any accountants out there that i can ask a question?
Post by: theblakdavid on May 29, 2016, 11:31:18 PM

In most cases, charging sales or not, does not depend on the seller, but rather the buyer.
So unless the buyer is exempt, then yes you would have to charge sales tax.
Ah, so even if sales tax was already collected on an item, the obligation on a buyer is still there. Did I get that right?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on May 29, 2016, 11:53:31 PM
What if I paid sales tax to the merchant on the item I am now selling?
You file a form with the state to get reimbursed. - Generally only the end user pays sales and use tax.
Title: Re: any accountants out there that i can ask a question?
Post by: theblakdavid on May 30, 2016, 12:04:16 AM
You file a form with the state to get reimbursed. - Generally only the end user pays sales and use tax.
Gotcha, thanks. Was wondering one more thing, mebbe u know. When you make a reseller account with retailers or suppliers, they ask for your resellers license, or certificate of authority to collect sales tax, wtvr. What if I gave them a NY or NJ one, and then I got from other states. Does it make a difference if I send them one state, as opposed to another?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on May 30, 2016, 12:18:29 AM
Gotcha, thanks. Was wondering one more thing, mebbe u know. When you make a reseller account with retailers or suppliers, they ask for your resellers license, or certificate of authority to collect sales tax, wtvr. What if I gave them a NY or NJ one, and then I got from other states. Does it make a difference if I send them one state, as opposed to another?

Generally speaking, if they don't have a valid resale or tax exempt certificate on file for the state where the purchase is being made (delivered in the case of phone or Internet orders) they should and will collect sales tax.

So for example: if you have a NY resale certificate filed with Costco in NY, but then on occasion will walk into a Costco in a different state, you will pay sales tax in that other state.
Title: Re: any accountants out there that i can ask a question?
Post by: theblakdavid on May 30, 2016, 12:23:28 AM


Generally speaking, if they don't have a valid resale or tax exempt certificate on file for the state where the purchase is being made (delivered in the case of phone or Internet orders) they should and will collect sales tax.

So for example: if you have a NY resale certificate filed with Costco in NY, but then on occasion will walk into a Costco in a different state, you will pay sales tax in that other state.
Thanks.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on May 30, 2016, 08:13:22 AM
Ah, so even if sales tax was already collected on an item, the obligations on a buyer is still there. Did I get that right?
This should not be the case.  If you paid already sales tax then usually its not an item that you must charge someone else sales rax
Title: Re: any accountants out there that i can ask a question?
Post by: theblakdavid on May 30, 2016, 08:32:32 AM
This should not be the case.  If you paid already sales tax then usually its not an item that you must charge someone else sales rax
Ye I know, I just meant theoretically.
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on May 30, 2016, 07:55:13 PM
any reason to keep pay stubs if i get a w2 anyway?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on May 30, 2016, 08:13:34 PM
any reason to keep pay stubs if i get a w2 anyway?
If in doubt use Evernote. Could come handy some time, and you can always delete from there
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on May 30, 2016, 08:16:18 PM
any reason to keep pay stubs if i get a w2 anyway?
Even if you think you won't need it, you never know when someone will ask for your last 4 stubs.
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on May 30, 2016, 10:00:23 PM
Thanks. Guess I'll scan them
Title: Re: any accountants out there that i can ask a question?
Post by: David R on June 05, 2016, 11:25:35 PM
any reason to keep pay stubs if i get a w2 anyway?
Two examples where you can be asked for them: if you file for unemployment benefits or SNAP benefits.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 03:47:59 PM
This is a insane!

Anyone transferring??

(http://uploads.tapatalk-cdn.com/20160623/70fc7ef46d15eecc305a2f9c3fc34e47.jpg)
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 03:54:51 PM
This is a insane!

Anyone transferring??

if you can be gone for 16 weeks, it says something about how necessary you are to your group
now, if you use those weeks to go get a new job, thats another story
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on June 23, 2016, 03:56:18 PM
if you can be gone for 16 weeks, it says something about how necessary you are to your group
now, if you use those weeks to go get a new job, thats another story
-1. In large firms everyone is anyway easily replaceable. Lots of people leave and join each year, people transfer in and out of areas...

Unless you are in a small niche group. In a general tax or audit group there are tons of people that can fill your void.
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 03:56:52 PM
-1. In large firms everyone is anyway easily replaceable. Lots of people leave and join each year, people transfer in and out of areas...
you just confirmed my point
it shows you are very replaceable
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on June 23, 2016, 03:58:41 PM
you just confirmed my point
it shows you are very replaceable
100%   But is doesn't say something about the individual (ie - advice to make yourself indispensable or not to take 16 weeks off) rather the nature of the Big 4. At a smaller firm or in a niche group it's very different.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:00:45 PM
you just confirmed my point
it shows you are very replaceable
Of course. So what?
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 04:01:22 PM
100%   But is doesn't say something about the individual (ie - advice to make yourself indispensable or not to take 16 weeks off) rather the nature of the Big 4. At a smaller firm or in a niche group it's very different.
it says something about the individual. it could be many in the big 4 can be gone for 16 weeks and no one would notice, but there are those who ppl would notice, and that means it says something about the individual
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on June 23, 2016, 04:01:31 PM
There are plenty of frum guys at EY (and at other big companies that have 8-12 weeks). Find out how many of them ever used close to the full amount. Hint: it's very few. It is however very good for frum women, who are much more likely to actually use all their time.
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on June 23, 2016, 04:02:14 PM
There are plenty of frum guys at EY (and at other big companies that have 8-12 weeks). Find out how many of them ever used close to the full amount. Hint: it's very few. It is however very good for frum women, who are much more likely to actually use all their time.
The firm is encouraging people to use it
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:03:40 PM
There are plenty of frum guys at EY (and at other big companies that have 8-12 weeks). Find out how many of them ever used close to the full amount. Hint: it's very few. It is however very good for frum women, who are much more likely to actually use all their time.
Plenty take six that I know of. Noone cares as long as you schedule it during off season.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:07:06 PM
it says something about the individual. it could be many in the big 4 can be gone for 16 weeks and no one would notice, but there are those who ppl would notice, and that means it says something about the individual
-1.

Where I work ppl only notice anything for 4-5 months of the year. It is then that you matter. And you better be there..

Rest of the time you just need to show up occasionally... personally I haven't done much work since pesach. It's working out just fine.
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 04:09:19 PM
-1.

Where I work ppl only notice anything for 4-5 months of the year. It is then that you matter. And you better be there..

Rest of the time you just need to show up occasionally... personally I haven't done much work since pesach. It's working out just fine.
well im obviously not talking about when there is no work to be done
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:24:47 PM
well im obviously not talking about when there is no work to be done
Yeah but even if there is technically work. If it's not a high pressure situation  where your personal experience or know how is necessary, (like busy season and this is your client from py, everyone is easily replaceable. Just a matter of scheduling.
So no excuse to work when the firm offers to pay you not to.
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 04:26:43 PM
Yeah but even if there is technically work. If it's not a high pressure situation  where your personal experience or know how is necessary, (like busy season and this is your client from py, everyone is easily replaceable. Just a matter of scheduling.
So no excuse to work when the firm offers to pay you not to.
i never said you should work if they are paying you not to
im saying it says something about your role in the company. you are expendable
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:29:49 PM
i never said you should work if they are paying you not to
im saying it says something about your role in the company. you are expendable
Not sure what you are trying to say.

It takes a lot of effort to get fired from a b4.... Expendable or not.
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 04:31:20 PM
Not sure what you are trying to say.

It takes a lot of effort to get fired from a b4.... Expendable or not.
with the amount they pay their accountants in those first few years for the amount of work they do, why would they fire them?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:31:55 PM
with the amount they pay their accountants in those first few years for the amount of work they do, why would they fire them?
Exactly. So what was your point?
Title: Re: any accountants out there that i can ask a question?
Post by: dealfinder85 on June 23, 2016, 04:33:57 PM
Exactly. So what was your point?
whether or not you are in jeopardy of getting fired, you are not a key contributor if you can disappear for 16 weeks and your colleagues can get your work done for you. again, obviously not speaking about a time when you have no work to do
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 23, 2016, 04:36:04 PM
whether or not you are in jeopardy of getting fired, you are not a key contributor if you can disappear for 16 weeks and your colleagues can get your work done for you. again, obviously not speaking about a time when you have no work to do
Wtvr. Il take a 6% raise and 16 weeks off instead of a 8.5% raise and kill myself.
Title: Re: any accountants out there that i can ask a question?
Post by: Ergel on June 26, 2016, 03:11:20 PM
What does a 3rd year accountant get paid?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 26, 2016, 03:16:03 PM
What does a 3rd year accountant get paid?
Big 4 audit NYC ~72k


Private add %20
Title: Re: any accountants out there that i can ask a question?
Post by: Ergel on June 26, 2016, 03:34:10 PM
Big 4 audit NYC ~72k


Private add %20
Working 70+ hour weeks 4-5 months a year? Yikes
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 26, 2016, 03:39:57 PM
Working 70+ hour weeks 4-5 months a year? Yikes
Worse than yikes.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 26, 2016, 04:10:45 PM
Public accountants only start making a living wage after 5/7+ years.
Possibility of making partner (and a decent living) after 12/16 years, but only of you are a) in the right age bracket. -not later than late 30s, b) lucky and C) very good at marketing yourself and your firm.

Basically public accounting is a great career choice for someone graduating at age 22 with no plans to start a family/ move out of parents home until age 30+.

Frum guys who start it after age 30 and w a couple of kids are either delusional or desperate.

#in the mood of ranting today

Title: Re: any accountants out there that i can ask a question?
Post by: Ergel on June 26, 2016, 05:38:37 PM
What's salary at 5/7 years?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 26, 2016, 05:51:43 PM
What's salary at 5/7 years?
95-130
Can possibly bump to 140+ after 8.
 Even 200+ after 10.
Title: Re: any accountants out there that i can ask a question?
Post by: Moshe123 on June 26, 2016, 06:54:10 PM
Which is why being a controller can be more rewarding.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 26, 2016, 08:12:00 PM
Which is why being a controller can be more rewarding.
But having B4 experience first is invaluable... 
Title: Re: any accountants out there that i can ask a question?
Post by: yr on June 30, 2016, 01:24:02 PM
Big 4 audit NYC ~72k

Private add %20

That sounds low but if they start at 60k, it comes out to about 6% annual raise.

These salaries weren't designed for frum families.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on June 30, 2016, 03:22:49 PM
How much do tax partners earn in the first year (big 4)?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on June 30, 2016, 03:27:55 PM
How much do tax partners earn in the first year (big 4)?
There's probably a wild range.

Audit/Tax Partner Compensation (http://big4bound.com/how-much-do-partners-really-make/)
Big 4

(Years : Low-Max)

1-5 years: $300-$500

5-10 years: $400-$1.3M

10+ years: $600-$3M
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on June 30, 2016, 03:54:27 PM
There's probably a wild range.


this
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on July 03, 2016, 06:09:20 PM
If in doubt use Evernote. Could come handy some time, and you can always delete from there

can you please elaborate?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on July 03, 2016, 07:09:38 PM
can you please elaborate?

Evernote is a great place to save things. Notes, cards, etc. etc. Free version was just changed to only allow installation on two devices.

I use it all the time to save important things, as well as items of questionable future reference, just in-case I can always look it up.
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on July 03, 2016, 07:59:06 PM
Evernote is a great place to save things. Notes, cards, etc. etc. Free version was just changed to only allow installation on two devices.

I use it all the time to save important things, as well as items of questionable future reference, just in-case I can always look it up.

is it easy to organize? ie can i scan in everything and quickly arrange it by date, job, etc?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on July 03, 2016, 10:09:51 PM
is it easy to organize? ie can i scan in everything and quickly arrange it by date, job, etc?

You can add tags and search is great (including OCR) which happens automatically.
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on July 14, 2016, 09:24:48 PM
http://matzav.com/bmg-talmidim-lead-nj-in-first-time-pass-rate-on-cpa-exam/
As reported first on DDF by CBC. Can't find the post now.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on July 15, 2016, 01:38:16 PM
http://matzav.com/bmg-talmidim-lead-nj-in-first-time-pass-rate-on-cpa-exam/
As reported first on DDF by CBC. Can't find the post now.
http://hefkervelt.blogspot.com/2016/07/bmg-talmidim-lead-nj-in-first-time-pass.html
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on July 15, 2016, 02:19:59 PM
http://hefkervelt.blogspot.com/2016/07/bmg-talmidim-lead-nj-in-first-time-pass.html
Those comments there though. Oy
Title: Re: any accountants out there that i can ask a question?
Post by: yakov116 on July 25, 2016, 09:32:21 AM
How much money does one get back / write off for childcare/daycare?
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on July 25, 2016, 10:41:22 AM
If I have an LLC, can i still file taxes with Schedule C?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on July 25, 2016, 10:53:14 AM
If I have an LLC, can i still file taxes with Schedule C?

If you are the only partner.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on July 27, 2016, 12:26:30 AM
I just realized I forgot to pay my estimated taxes that were due on 6/15, I just paid them ASAP. Will the IRS charge me interest and or penalties?



TIA!
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on July 27, 2016, 10:26:37 AM
I just realized I forgot to pay my estimated taxes that were due on 6/15, I just paid them ASAP. Will the IRS charge me interest and or penalties?



TIA!
if you are going to owe next year then proabably
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on July 27, 2016, 10:34:46 AM
if you are going to owe next year then proabably
So how do they notify me? I just paid online my regular amount, will they send me a letter asking for the interest? Or will they keep adding and adding on?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on July 27, 2016, 10:41:38 AM
So how do they notify me? I just paid online my regular amount, will they send me a letter asking for the interest? Or will they keep adding and adding on?
nothing can be determined till you file next year, there are some tricks to even out the payments like putting more money in thru a w2 (which assumes even payments)
the tax software will figure the int and pen
Title: Re: any accountants out there that i can ask a question?
Post by: yakov116 on July 27, 2016, 10:43:53 AM
How much money does one get back / write off for childcare/daycare?
Bump
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on July 27, 2016, 10:44:50 AM
nothing can be determined till you file next year, there are some tricks to even out the payments like putting more money in thru a w2 (which assumes even payments)
the tax software will figure the int and pen
Ok, thanks. Just wanted to make sure that they aren't continuously adding to that interest.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on July 27, 2016, 02:11:32 PM
Ok, thanks. Just wanted to make sure that they aren't continuously adding to that interest.
Have you had interest and penalties before?
Can always call or write a letter asking them to abate them.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on July 27, 2016, 08:15:17 PM
Have you had interest and penalties before?
Can always call or write a letter asking them to abate them.
BH no
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on July 27, 2016, 08:59:17 PM
BH no
IMHO just file, ignore the interest and penalties(if they come up) wait for a letter from the IRS and call to have it abated or have a professional call for you.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on July 28, 2016, 02:38:03 PM
IMHO just file, ignore the interest and penalties(if they come up) wait for a letter from the IRS and call to have it abated or have a professional call for you.
Will do, thank you!
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on August 19, 2016, 12:44:06 PM
It might be too late for you, but I am arguing that it doesn't make sense (at least from a tax standpoint, as long as you can have some control as to who gets paid) to be legally married in the US.

I know of a couple that followed my opinion on this, they did not get "legally" married, but are Halachically married. They had their second child in 2015. Each one of them will file 2015 taxes claiming one child. I think that might get them the maximum EIC as well as maxing out on several other items.
Here's another reason not to get "legally" married:
http://www.bloomberg.com/news/articles/2016-08-19/another-good-reason-not-to-get-married-courtesy-of-the-irs
Title: Re: any accountants out there that i can ask a question?
Post by: Triple Canopy on August 24, 2016, 10:36:14 PM
1) Is there a list of allowable pre-tax benefits?

2) Everyone talks about "writing off" business expenses. But what about paying business expenses from a business account before you pay yourself, is that the same thing?
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on August 25, 2016, 03:12:00 AM
1) Is there a list of allowable pre-tax benefits?

2) Everyone talks about "writing off" business expenses. But what about paying business expenses from a business account before you pay yourself, is that the same thing?

I hope this helps you https://www.irs.gov/businesses/small-businesses-self-employed
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on August 25, 2016, 06:45:37 PM

2) Everyone talks about "writing off" business expenses. But what about paying business expenses from a business account before you pay yourself, is that the same thing?

Yes
Write off in this context just means that it's a business expense and therefore reduces taxable income.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on August 30, 2016, 12:34:42 AM
Regarding Insurance requirements, if one was denied Medicaid, but got approved for Medically Needy... (Kind of like a high deductible) is that considered having insurance?
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on September 01, 2016, 01:19:12 PM
I just realized I forgot to pay my estimated taxes that were due on 6/15, I just paid them ASAP. Will the IRS charge me interest and or penalties?



TIA!
you will get a letter
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on September 01, 2016, 01:20:27 PM
Regarding Insurance requirements, if one was denied Medicaid, but got approved for Medically Needy... (Kind of like a high deductible) is that considered having insurance?
will they provide a 1095? if yes its not a  problem.
Title: Re: any accountants out there that i can ask a question?
Post by: yoohoo on September 06, 2016, 01:17:35 PM
In regards to tax exemption for childcare cost, does it make a diff whether the payment comes directly from my payroll co. or if i write out checks myself and claim it after?  (in NJ)
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on September 06, 2016, 03:35:17 PM
In regards to tax exemption for childcare cost, does it make a diff whether the payment comes directly from my payroll co. or if i write out checks myself and claim it after?  (in NJ)

If it comes out of your paycheck you save on Social Security tax.

What do you mean by claim it later? I'm not sure how your payroll works but usually they withhold the amount and when you show them that you paid for childcare they release it to you, but you're the one who writes the check to the babysitter. If that's the case then you'll get all the benefits, but if you just pay the babysitter and claim it on your tax return then you'll only save on the Income Tax and not Social Security.
Title: Re: any accountants out there that i can ask a question?
Post by: yoohoo on September 06, 2016, 04:06:08 PM
If it comes out of your paycheck you save on Social Security tax.

What do you mean by claim it later? I'm not sure how your payroll works but usually they withhold the amount and when you show them that you paid for childcare they release it to you, but you're the one who writes the check to the babysitter. If that's the case then you'll get all the benefits, but if you just pay the babysitter and claim it on your tax return then you'll only save on the Income Tax and not Social Security.
tx. So the difference is ss tax. What i meant was the amount will be deducted from paycheck and a separate check will be made out to daycare directly from my work, so it never my income therefore not taxed at all
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on September 06, 2016, 04:25:07 PM
tx. So the difference is ss tax. What i meant was the amount will be deducted from paycheck and a separate check will be made out to daycare directly from my work, so it never my income therefore not taxed at all

If it's not hitting your paycheck at all then presumably you'll save on all payroll taxes (SS etc, Fed and State).
Title: Re: any accountants out there that i can ask a question?
Post by: yoohoo on September 06, 2016, 04:39:02 PM
If it's not hitting your paycheck at all then presumably you'll save on all payroll taxes (SS etc, Fed and State).
got u. Tx alot
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on September 06, 2016, 06:04:22 PM
got u. Tx alot
If processed as a benefit it will be pretax for federal purposes and taxed to NJ
If the company issues check to Daycare they may treat it as an expense and issue the daycare a 1099. then it wouldn;t be taxable to you at all
Title: Re: any accountants out there that i can ask a question?
Post by: yoohoo on September 06, 2016, 06:26:15 PM
If processed as a benefit it will be pretax for federal purposes and taxed to NJ
If the company issues check to Daycare they may treat it as an expense and issue the daycare a 1099. then it wouldn;t be taxable to you at all
isnt there an allowance for child care, Not having anything to do with it being a business expense for my employer?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on September 07, 2016, 10:28:13 AM
isnt there an allowance for child care, Not having anything to do with it being a business expense for my employer?
$5k if it's a benefit (per employee)
Title: Re: any accountants out there that i can ask a question?
Post by: AnonymousUser on September 12, 2016, 09:28:10 PM
The IRS 1040-ES has an exemption that if the previous year's tax liability was 0, you don't need to file quarterly 1040-ES for 2016.
Does NJ-1040-ES have the same exemption? I don't see it anywhere (NJ-1040-ES (http://www.state.nj.us/treasury/taxation/pdf/current/1040esi.pdf), GIT-8 (http://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git8.pdf)).
Title: Re: any accountants out there that i can ask a question?
Post by: Buruch on September 16, 2016, 04:58:41 PM
If it is set up as a small group plan, the employer can either pay for the premiums, or set up a Section 125 cafeteria plan and allow employees to pay the premiums with pre-tax dollars. This can be done regardless of whether the employee selects "employee only" "employee+spouse" "employee+children" or "family" coverage.

If the employees purchase the coverage on their own, outside of the business setting, there MIGHT be a way to legally reimburse them for it as a business expense, but it would probably require setup of an HRA (Healthcare Reimbursement Account) which would be specifically set up to allow health premium reimbursement, or some kind of other setup that might allow it (I don't know, and doubt whether it's worth the hassle and expense for just one or two employees).

In NY, unless you want to take subsidies (which many people don't) whenever you have a choice you are much better off doing it as a small business group.

So, to continue an old conversation..
I looked into it some more, and it seems an HRA is the way to go, and it can be pretty simple to set up. I found a company online coredocuments.com that sets it up for you for $150. It can save me 2-3k per year. in fact, iiuc, it's only really feasible if you have only 1 employee (or more if they're all family).

Anyone have experience with an HRA?

Also, I'd like to do an FSA for dependent care in an scorp where my father is the owner, and I'm the sole employee. Anything I need to be aware of, or just simply set it up, and do I get to avoid FICA?
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 22, 2016, 04:57:31 PM
Someone owes me a decent sum of money. He would like to sell some points, then have the broker pay me direct vs him giving me a check.

This is not a loan that's recorded anywhere kinda thing.


Is it better for tax purposes to have the borrower give me a check directly?


TIA!
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 23, 2016, 12:22:28 PM
BUMP?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on September 23, 2016, 03:40:39 PM
BUMP?
Since it's not recorded officially, does it matter where you get the check from?  Either way you're getting in a lot of money for no apparent reason.   
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on September 23, 2016, 03:55:39 PM
BUMP?

can u trace the money going from u to him?
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 23, 2016, 04:02:05 PM
can u trace the money going from u to him?
not really, I paid his CC bill for him.
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on September 23, 2016, 04:05:11 PM
not really, I paid his CC bill for him.
bad move, but u are allowed to receive gifts totaling 14k per year
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 23, 2016, 05:10:48 PM
bad move, but u are allowed to receive gifts totaling 14k per year
it's family, but ok, I guess I can always say its a gift.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on September 24, 2016, 11:01:55 PM
not really, I paid his CC bill for him.
That's traceable in  my book. (I'm not an accountant.) If (ch"v) you get audited, you can show why you got the money from him. So I don't think it matters where the check to you is from.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on September 24, 2016, 11:06:40 PM
Just make sure they put his name in the memo.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 25, 2016, 07:36:38 AM
Just make sure they put his name in the memo.
in what memo?
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 25, 2016, 07:37:00 AM
That's traceable in  my book. (I'm not an accountant.) If (ch"v) you get audited, you can show why you got the money from him. So I don't think it matters where the check to you is from.
interesting
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on September 25, 2016, 07:38:26 AM
in what memo?
Every check has a memo line. I.e, what the check is for.
Title: Re: any accountants out there that i can ask a question?
Post by: Yehuda25 on September 25, 2016, 08:13:54 AM
Every check has a memo line. I.e, what the check is for.
so meaning - when he pays me back, he should write "for loan of x amount"?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on September 25, 2016, 12:32:44 PM
so meaning - when he pays me back, he should write "for loan of x amount"?
If it comes from the points broker it should say " payment to chaim smith " , even though the check will be made out to yehuda twentyfive.
And keep a copy of the check. Although a copy often can be gotten on the bank's website.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on September 27, 2016, 05:14:14 PM
I have a question. Can I share my tax returns with other people if I'm in the middle of an audit?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on September 27, 2016, 05:45:15 PM
I have a question. Can I share my tax returns with other people if I'm in the middle of an audit?
No. It's illegal according to Regulation USFG.D4..95748.$9 ;D23
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on September 27, 2016, 05:46:40 PM
I have a question. Can I share my tax returns with other people if I'm in the middle of an audit?
Hillary checked with the IRS for you.  She says they said you can.
But she also says that the emails she deleted were of a personal nature and that she never  had top secret information on her private server.
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on September 27, 2016, 06:39:03 PM
I have a question. Can I share my tax returns with other people if I'm in the middle of an audit?
Who really cares? I'll vote for the Donald anyway. (It doesn't take much to be better than Hillary.)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on September 27, 2016, 08:29:22 PM
I have a question. Can I share my tax returns with other people if I'm in the middle of an audit?
Why on earth not??

Title: Re: any accountants out there that i can ask a question?
Post by: yelped on September 27, 2016, 08:37:26 PM
No. It's illegal according to Regulation USFG.D4..95748.$9 ;D23
Really? Why? Because someone may help you beat the irs?
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on September 27, 2016, 09:28:22 PM
Really? Why? Because someone may help you beat the irs?
Because of Chiiiiina
Title: Re: any accountants out there that i can ask a question?
Post by: yelped on September 27, 2016, 10:38:18 PM
Because of Chiiiiina
Sorry, don't get it. Could be my lack of sleep, or lack of time to read the news..
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on October 31, 2016, 05:17:25 AM
This question isn't exactly for an accountant but probably fits best in this thread. Anyone know how I can estimate the amount I will receive as a distribution from my mutual funds in December? Can I assume it will be the same as it was last year? I need to be mindful of the $3,400 cap for the EIC and I don't know how I can figure this out before it's too late.. Any help would be appreciated.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on October 31, 2016, 07:22:57 AM
This question isn't exactly for an accountant but probably fits best in this thread. Anyone know how I can estimate the amount I will receive as a distribution from my mutual funds in December? Can I assume it will be the same as it was last year? I need to be mindful of the $3,400 cap for the EIC and I don't know how I can figure this out before it's too late.. Any help would be appreciated.
It's pretty late in the year to make changes... But cont you see how much your fund earned so far this year?
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on October 31, 2016, 07:47:55 AM
This question isn't exactly for an accountant but probably fits best in this thread. Anyone know how I can estimate the amount I will receive as a distribution from my mutual funds in December? Can I assume it will be the same as it was last year? I need to be mindful of the $3,400 cap for the EIC and I don't know how I can figure this out before it's too late.. Any help would be appreciated.
Try calling the fund
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on October 31, 2016, 09:55:45 AM
This question isn't exactly for an accountant but probably fits best in this thread. Anyone know how I can estimate the amount I will receive as a distribution from my mutual funds in December? Can I assume it will be the same as it was last year? I need to be mindful of the $3,400 cap for the EIC and I don't know how I can figure this out before it's too late.. Any help would be appreciated.
If your portfolio went up this past year then you will most probably get more dividends than last year. It all depends on the underlying stocks in the fund. When the stock gives a dividend the mutual fund passes that on to you (they might reinvest it so you won't get a check, but for tax purposes it's income). The underlying stocks usually base the dividend amount on a percentage of the share price.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on October 31, 2016, 10:36:54 AM
This question isn't exactly for an accountant but probably fits best in this thread. Anyone know how I can estimate the amount I will receive as a distribution from my mutual funds in December? Can I assume it will be the same as it was last year? I need to be mindful of the $3,400 cap for the EIC and I don't know how I can figure this out before it's too late.. Any help would be appreciated.
your other option is to transfer to a child (or someone else) and nominee the dividends if it's over $3400
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on October 31, 2016, 10:42:38 AM
your other option is to transfer to a child (or someone else) and nominee the dividends if it's over $3400
Thank for the responses. The problem with this is that is that income that will be generated by selling the shares will be greater than the dividend income. I'm actually in the process of moving the funds to a Roth IRA but the income from selling these shares (which have been in the fund for over 20 years) is quite high.

Maybe I should be using a different tax method instead of average cost?
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on October 31, 2016, 10:44:56 AM
Thank for the responses. The problem with this is that is that income that will be generated by selling the shares will be greater than the dividend income. I'm actually in the process of moving the funds to a Roth IRA but the income from selling these shares (which have been in the fund for over 20 years) is quite high.

Maybe I should be using a different tax method instead of average cost?
who said sell?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on October 31, 2016, 10:48:33 AM
who said sell?
Didn't know it was possible to transfer an account to another person without "selling" the shares. I'm assuming from your response that it is..
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on October 31, 2016, 10:51:54 AM
Didn't know it was possible to transfer an account to another person without "selling" the shares. I'm assuming from your response that it is..
AFAIK to kid you for sure can
http://finance.zacks.com/transfer-shares-stock-another-person-2598.html
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on October 31, 2016, 10:53:28 AM
AFAIK to kid you for sure can
http://finance.zacks.com/transfer-shares-stock-another-person-2598.html
Thanks. Will look into it.
Title: Re: any accountants out there that i can ask a question?
Post by: Zevwolf on November 03, 2016, 02:01:09 PM
If my business is an S corporation and put myself on the payroll as a salaried employee, am I required to pay
unemployment tax?
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on November 03, 2016, 02:02:15 PM
yes
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on November 03, 2016, 08:45:28 PM
yes
Are you sure about that?
You can then "fire" yourself and claim unemployment?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 03, 2016, 11:00:47 PM
Didn't know it was possible to transfer an account to another person without "selling" the shares. I'm assuming from your response that it is..
There are many things one should consider before transferring assets to a child. Don't let the tax tail wag the dog!

As for your original question, in some cases you might be able to get an estimate from the fund company.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 03, 2016, 11:02:55 PM
If my business is an S corporation and put myself on the payroll as a salaried employee, am I required to pay
unemployment tax?
AFAIK the only thing that an owner isn't required to do if he's on his own payroll is get worker's comp.
Title: Re: any accountants out there that i can ask a question?
Post by: Mordyk on November 03, 2016, 11:05:48 PM
AFAIK the only thing that an owner isn't required to do if he's on his own payroll is get worker's comp.
+1
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on November 04, 2016, 11:19:06 AM
Are you sure about that?
You can then "fire" yourself and claim unemployment?
yes, im sure
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on November 04, 2016, 11:27:20 AM
AFAIK the only thing that an owner isn't required to do if he's on his own payroll is get worker's comp.
correct
Title: Re: any accountants out there that i can ask a question?
Post by: Zevwolf on November 04, 2016, 11:43:39 AM
Is Unemployment Insurance the same thing as Disability Insurance?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 11:44:37 AM
Is Unemployment Insurance the same thing as Disability Insurance?
NO.

Unemployment insurance is an assessment every employer pays as a percentage of their payroll. The rate will vary with experience (i.e. an employer with high employee turnover might have a higher rate than an employer with very low turnover).

Workers Compensation is a policy every employer must have in order to cover their employees in case they are injured on the job.

Disability Insurance is private insurance that would replace (a portion of) one's income if they are too sick or injured to work. It can be an employer based group policy, or an individual policy that would cover an insured even if they switch jobs. NY State also has something called DBL, which provides a minimal disability benefit (IINM something around $170/week for up to 26 weeks) which is paid by employer, who may in turn also bill a small portion to the employee.
Title: Re: any accountants out there that i can ask a question?
Post by: Zevwolf on November 04, 2016, 11:49:32 AM
Is Unemployment Insurance included in payroll or you need to file it separately?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 11:51:07 AM
Is Unemployment Insurance included in payroll or you need to file it separately?
It's filed/paid as part of the quarterly payroll taxes.
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 04, 2016, 11:58:44 AM
What are the accountant opinions regarding Dan deducting his Starwood points for the first pitch as a business expense?
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on November 04, 2016, 12:00:46 PM
What are the accountant opinions regarding Dan deducting his Starwood points for the first pitch as a business expense?
lol
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 04, 2016, 12:26:50 PM
lol
The publicity he got from this is probably more than any of the major glitches and included a different crowd as well.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 01:44:41 PM
What are the accountant opinions regarding Dan deducting his Starwood points for the first pitch as a business expense?
Were points earned recognized/reported as income?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 01:46:40 PM
The publicity he got from this is probably more than any of the major glitches and included a different crowd as well.
I would argue that if he paid $20,000 in cash it should definitely be claimed as an Advertising and promotion expense, as that is the only tangible benefit received in exchange.
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 04, 2016, 02:09:51 PM
Were points earned recognized/reported as income?
Why does it depend on that? If the reason they do not get reported as income is because they are a rebate then they still are property with a value which he now exchanged for marketing.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 02:16:18 PM
Why does it depend on that? If the reason they do not get reported as income is because they are a rebate then they still are property with a value which he now exchanged for marketing.
That was my initial thought, but what was it a rebate for?

Annual fee paid? If so, then the amount claimed for the bank fee should be reduced.

Coin purchases?
Any other MS?
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 04, 2016, 02:30:14 PM
That was my initial thought, but what was it a rebate for?

Annual fee paid? If so, then the amount claimed for the bank fee should be reduced.

Coin purchases?
Any other MS?

Purchases of course.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 02:34:22 PM
Purchases of course.
So since AMEX gives one Starwood point per dollar spent, you would have to argue that over $100MM in personal purchases, for which no business expense was claimed, were incurred. If it were business expenses, then those expenses should have already been reduced by the rebate received.
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 04, 2016, 02:43:53 PM
So since AMEX gives one Starwood point per dollar spent, you would have to argue that over $100MM in personal purchases, for which no business expense was claimed, were incurred. If it were business expenses, then those expenses should have already been reduced by the rebate received.
sign up bonuses?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on November 04, 2016, 03:12:01 PM
sign up bonuses?
So they were all earned as sign up bonuses for PERSONAL cards where annual fees were paid? And are we keeping an audit trail of MS, so that points earned for that, or where value of points exceeds spending.

Now, if you say, OK, I will recognize the points as income, but only to the extent of value that the party issuing the points carries them on their books as a liability, then one could argue that the value might be minimal, but I doubt whether you could have it both ways.
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on November 07, 2016, 12:36:19 PM
So since AMEX gives one Starwood point per dollar spent, you would have to argue that over $100MM in personal purchases, for which no business expense was claimed, were incurred. If it were business expenses, then those expenses should have already been reduced by the rebate received.

$1MM, or 100MM cents.
Title: Re: any accountants out there that i can ask a question?
Post by: Lamppost on November 10, 2016, 09:59:31 AM
Question on how calculating taxes on stocks in done. Do the trading fee's of the brokerage firm count as a loss against the profit? For example, I have a stock that i bought 100 shares of @ 92.795=$9279.5. I sold it @ 104.0241=$10402.41. Profit =  $1122.91. But to buy the stock i paid a trade fee of $7 and to sell i paid $7.23. So would i deduct $14.23 of my profit for a total of $1108.68? Or is that fee considered to unrelated to the capital gains? Thanks!
Title: Re: any accountants out there that i can ask a question?
Post by: MarkS on November 10, 2016, 10:07:37 AM
Broker fees increase your basis and therefore reduce your gain when you sell.

If you buy for $100 and pay a $10 fee, then sell for $200 and pay a $10 fee, your basis in the stock will be $120 and therefore your gain on sale is $80.
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on November 10, 2016, 11:30:49 AM


A 529 education plan. I put in the maximum that NYS will allow me to deduct from my income.  I took a withdrawal from the plan for qualified expenses. 
I read last year that money that was taken out can be put back into the plan within 60 days, for a further tax deduction.  Now when I look, it seems like only a mistaken withdrawal from the account can be put back into keep that amount not taxable.
Is there such a thing as putting back in money spent on qualified expenses for a further tax deduction?

Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on November 10, 2016, 07:00:45 PM
Cross-posting- I asked in the stock thread, but haven't had an answer yet.

Donating stocks to charity allows you to deduct the amount the stock is worth at the time of donation, without declaring as income the capital gains the stock earned during the time you owned it.
Technically how is this done?
The charity has to own a brokerage account, and I fill out the charity transfer form, and they move the stock?
At what moment is the stock 'valued', so I know exactly how much I donated?
Title: Re: any accountants out there that i can ask a question?
Post by: mord1 on November 11, 2016, 12:05:56 AM
Cross-posting- I asked in the stock thread, but haven't had an answer yet.

Donating stocks to charity allows you to deduct the amount the stock is worth at the time of donation, without declaring as income the capital gains the stock earned during the time you owned it.
Technically how is this done?
The charity has to own a brokerage account, and I fill out the charity transfer form, and they move the stock?
At what moment is the stock 'valued', so I know exactly how much I donated?
I believe you are correct, the non profit owns the account and you transfer the stock to them, whatever the value is at the point of transfer that is the amount that is deductible and no capital gains
Title: Re: any accountants out there that i can ask a question?
Post by: mord1 on November 11, 2016, 12:09:14 AM
If a non profit has a dinner and gets some individuals to underwrite the cost of the dinner- shouldn't every person who comes to the dinner- their donation be 100% deductible and not reduced by the cost of the dinner? Can the organization write on the invitation that "your entire donation is 100% tax deductible"?
Title: Re: any accountants out there that i can ask a question?
Post by: aygart on November 11, 2016, 12:48:00 AM
If a non profit has a dinner and gets some individuals to underwrite the cost of the dinner- shouldn't every person who comes to the dinner- their donation be 100% deductible and not reduced by the cost of the dinner? Can the organization write on the invitation that "your entire donation is 100% tax deductible"?
can those who did not pay attend?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on November 11, 2016, 12:56:25 AM
I believe you are correct, the non profit owns the account and you transfer the stock to them, whatever the value is at the point of transfer that is the amount that is deductible and no capital gains
thanks
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on November 11, 2016, 11:42:40 AM
can those who did not pay attend?
Yes
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on November 13, 2016, 08:17:33 PM
Anyone know if there is a cheaper option for computing a second state return without buying a additional state from turbo tax?
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on November 14, 2016, 09:13:59 AM
pm me
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on November 17, 2016, 07:38:02 AM
Anyone know if there is a cheaper option for computing a second state return without buying a additional state from turbo tax?

Most people qualify for Free WebFile with NJ returns (your location). Its actually pretty decent software for ordinary tax returns, but you have to know what to fill out because it doesnt prompt you. My suggestion is go through the turbotax (only costs when you file, not prepare) and then make sure what you get matches.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on January 10, 2017, 07:36:21 PM
I want to use QB online, but fwiu there is no way to upload a file with JE.
I've heard that there is a solution to download
QB trial version on a desktop, leave it unregistered, and link it to qB online to upload JE.

Anyone with experience with this, or at least can tell me if this even makes sense?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on January 10, 2017, 09:34:47 PM
I want to use QB online, but fwiu there is no way to upload a file with JE.
I've heard that there is a solution to download
QB trial version on a desktop, leave it unregistered, and link it to qB online to upload JE.

Anyone with experience with this, or at least can tell me if this even makes sense?
Try it out? On two trial versions?

Also there is a QuickBooks thread
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on January 11, 2017, 01:03:41 PM
I want to use QB online, but fwiu there is no way to upload a file with JE.
I've heard that there is a solution to download
QB trial version on a desktop, leave it unregistered, and link it to qB online to upload JE.

Anyone with experience with this, or at least can tell me if this even makes sense?

Ok, its definitely a thing per this - If you need a QuickBooks Desktop trial to export or import into QuickBooks Online, you can download it here. (https://community.intuit.com/articles/1207255-quickbooks-desktop-trial-links-us-uk-ca)

But I cant find anywhere basic instructions on how to set this up. Everything I google seems to be about importing all of existing company data into online from desktops. Not about a new file online and using a trial do import Journal entries going forward.


Excuse me not posting in the QB thread.. I might repost this there
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on January 11, 2017, 01:07:47 PM
If I need a company to issue me a 1099 for 2015, besides for the $100 (maybe) penalty would there be any other reason the company wouldn't want to, or can't?
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on January 11, 2017, 01:12:14 PM
If I need a company to issue me a 1099 for 2015, besides for the $100 (maybe) penalty would there be any other reason the company wouldn't want to, or can't?
If you actually worked for them and they actually paid you then there should be no reason that they shouldn't want to issue it. It would sound fishy in such a case.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on January 11, 2017, 01:22:54 PM
If you actually worked for them and they actually paid you then there should be no reason that they shouldn't want to issue it. It would sound fishy in such a case.
Well asking for a friend:

He worked for them, received commission, did not receive a 1099, yet claimed the income on his schedule c anyways.

The company did not issue a 1099, and now does not want to after the fact. I am trying to figure out why not. I told him just the opposite, it would most probably be better for them to issue him one.

Just wanted to know if there would be any other reasons... (Before I contact them)

Don't forget this is from 2015, already files forms.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on January 11, 2017, 01:26:00 PM
Well asking for a friend:

He worked for them, received commission, did not receive a 1099, yet claimed the income on his schedule c anyways.

The company did not issue a 1099, and now does not want to after the fact. I am trying to figure out why not. I told him just the opposite, it would most probably be better for them to issue him one.

Just wanted to know if there would be any other reasons... (Before I contact them)

Don't forget this is from 2015, already files forms.
Why would it make any difference to your friend if he got a 1099 or not? One has to report income received even if no 1099 is issued.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on January 11, 2017, 01:31:38 PM
Why would it make any difference to your friend if he got a 1099 or not? One has to report income received even if no 1099 is issued.
His embassy is requesting it.

He reported it.

My concerns were regarding the company side. What would their concerns be
Title: Re: any accountants out there that i can ask a question?
Post by: Z56 on January 11, 2017, 01:31:56 PM
Is any account here that are in Israel based ?
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on January 11, 2017, 01:37:44 PM
Is any account here that are in Israel based ?
PM me
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 11, 2017, 01:47:28 PM
His embassy is requesting it.

He reported it.

My concerns were regarding the company side. What would their concerns be
that its a PITA
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on January 11, 2017, 01:52:15 PM
that its a PIA
+1
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on January 11, 2017, 02:01:44 PM
+1
Why would it be a pia.. especially now when they are preparing the ones for 2016 as well.

They should already have the numbers. Shouldn't take much time.

I was talking on an IRS or compliance standpoint.
Title: Re: any accountants out there that i can ask a question?
Post by: nanach09 on January 11, 2017, 03:20:30 PM
looking for a good forensic accountant
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on January 11, 2017, 03:24:08 PM
looking for a good forensic accountant
for what type of work?
Bankruptcy?
Divorce?
Title: Re: any accountants out there that i can ask a question?
Post by: nanach09 on January 11, 2017, 03:59:21 PM
litigation support-business investigation
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on January 22, 2017, 10:55:05 AM
Here's my question:
A student who finished their undergraduate in in 2 years, and is in graduate school for years 3 and 4, can they claim the American opportunity student tax credit for the years in graduate school?
I'm aware of the lifetime credit, but obviously the opportunity credit is better since it's partially refundable.

The IRS website doesn't mention anything about graduate or post graduate, it only mentions the first 4 years of post secondary school quality for the opportunity credit.

I searched online and found conflicting opinions, anyone have any experience with this?
Title: Re: any accountants out there that i can ask a question?
Post by: ushdadude on January 31, 2017, 11:36:39 AM
I'm going to a conference in ogg. What exactly can I tax deduct? Can I deduct the food in bringing? How about activities when I'm there?
Title: Re: any accountants out there that i can ask a question?
Post by: hachover on January 31, 2017, 10:53:24 PM
Any reviews on freetaxusa.com for a normal individual return? I've always used other online software by big box (HRB,  TT) but would not mind saving on the cost. Are they just as good?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 01, 2017, 08:32:17 AM
To calculate Roth 401k % deduction and employer match... Do I use the percentage from gross wages or net wages?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on February 01, 2017, 01:33:27 PM
To calculate Roth 401k % deduction and employer match... Do I use the percentage from gross wages or net wages?
I'm no accountant, but I'm pretty sure its calculated off gross wages.
Title: Re: any accountants out there that i can ask a question?
Post by: theduke on February 01, 2017, 04:31:26 PM
Any reviews on freetaxusa.com for a normal individual return? I've always used other online software by big box (HRB,  TT) but would not mind saving on the cost. Are they just as good?
been using them for the past few years, they seem to be pretty much the same and way cheaper. use ebates and get 25% back as well. Only tip which I don't know if Turbo Tax picks up wither is that in New Jersey insurance premiums that are deducted by your employer are not pretax in regards to NJ income so when you put in your medical expenses for NJ you should make sure to put in the deductions that were taken out.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 01, 2017, 05:01:49 PM


been using them for the past few years, they seem to be pretty much the same and way cheaper. use ebates and get 25% back as well. Only tip which I don't know if Turbo Tax picks up wither is that in New Jersey insurance premiums that are deducted by your employer are not pretax in regards to NJ income so when you put in your medical expenses for NJ you should make sure to put in the deductions that were taken out.
I would imagine the software does these things..
Title: Re: any accountants out there that i can ask a question?
Post by: theduke on February 02, 2017, 12:58:01 PM
I would imagine the software does these things..
thought so too, but after doing more research on the topic I realized that didn't.  The program technically doesn't know what your premiums were but it also doesn't specifically explain. 
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 02, 2017, 01:17:18 PM
To calculate Roth 401k % deduction and employer match... Do I use the percentage from gross wages or net wages?
I'm not an accountant (though I do know a thing or two about qualified plans, IME more so than many CPAs, as that is not their line of business), and your question is not clearly phrased.

BUT, if I understand what you are asking, when you indicate a % of your income to be deferred into a 401k (Roth or regular), that is usually the % of your GROSS wages (though I don't think there is any IRS rule on this, from their standpoint you should be able to allocate any amount, be it dollar amount or percentage, as long as the % does not exceed your maximum allowable percentage of your gross income).

IINM employer matches CANNOT be directed to a ROTH 401k, but will rather go into the regular 401k option.
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on February 02, 2017, 02:43:11 PM
IINM employer matches CANNOT be directed to a ROTH 401k, but will rather go into the regular 401k option.
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on February 02, 2017, 03:05:04 PM
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.

I had that happen. when I left the company they told me which portions were which and I directed some to a roth and some to a traditional
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 02, 2017, 04:24:19 PM
-.5

It can be matched into a Roth 401k, but only on a pre-tax basis. It's a bit of a mess - it basically creates one account that's partially Roth, partially Traditional.
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.
Title: Re: any accountants out there that i can ask a question?
Post by: Mountain Man on February 02, 2017, 06:06:17 PM
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.
+1 my Roth contributions go into my Roth 401k my employer match goes into a traditional 401k.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#10/

"Can my employer match my designated Roth contributions? Must my employer allocate the matching contributions to a designated Roth account?

Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions."
Title: Re: any accountants out there that i can ask a question?
Post by: skyguy918 on February 03, 2017, 03:22:37 PM
So are we arguing semantics?

If it's part Roth and part Traditional, that's two accounts in my dictionary.

Remember that an "account" is not a physical container, but rather a ledger entry.

+1 my Roth contributions go into my Roth 401k my employer match goes into a traditional 401k.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#10/

"Can my employer match my designated Roth contributions? Must my employer allocate the matching contributions to a designated Roth account?

Yes, your employer can make matching contributions on your designated Roth contributions. However, your employer can only allocate your designated Roth contributions to your designated Roth account. Your employer must allocate any contributions to match designated Roth contributions into a pre-tax account, just like matching contributions on traditional, pre-tax elective contributions."
I always thought it was 1 account. I stand corrected.
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on February 13, 2017, 05:50:53 AM
Anyway for an s-corp with one employee (just the owner) to avoid paying NYS unemployment insurance on wages?
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on February 15, 2017, 08:12:10 PM
Any accountants i can pm my question to?
Title: Re: any accountants out there that i can ask a question?
Post by: AtallD on February 15, 2017, 09:51:28 PM
Any accountants i can pm my question to?

You can PM me.
Title: Re: any accountants out there that i can ask a question?
Post by: Work-for-ur-muny on February 16, 2017, 08:37:40 PM
Are there any accountants who can chime in on this?

I was told that to change payroll from a self-employed status (for which one would receive a 1099) to a W2 from the same employer would raise a red flag and trigger an audit by the IRS. Is this true?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on February 16, 2017, 09:14:28 PM
Are there any accountants who can chime in on this?

I was told that to change payroll from a self-employed status (for which one would receive a 1099) to a W2 from the same employer would raise a red flag and trigger an audit by the IRS. Is this true?

Very common for people to start out as a contractor and then switch to W2. I did that myself. Maybe there are specific situations where it can be a red flag, but not across the board.

Then again I'm no accountant.
Title: Re: any accountants out there that i can ask a question?
Post by: Work-for-ur-muny on February 16, 2017, 09:17:40 PM
Very common for people to start out as a contractor and then switch to W2. I did that myself. Maybe there are specific situations where it can be a red flag, but not across the board.

Then again I'm no accountant.
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 16, 2017, 10:15:45 PM
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.
My assistant started off working for me on a 1099, and then I hired him full time and put him on a W-2. My CPA also said it was a red flag (especially if both were issued in the same year), but I wasn't concerned one bit, as I could back it up with facts.

I am not an accountant, and mean no offense to those that are, but I find that most accountants stick to their way of doing things, and are apprehensive about doing things differently. Avoiding an audit is a high priority with CPAs IME.

Also remember that the IRS is just like bank robbers, they go where the money is. How much resources do you think they will allocate to audit a return, if their best outcome won't end up gaining them much?

IINM the 1099 vs W2 is more of a DOL issue than it is an IRS issue.

Full disclosure: I have never been audited, and might change my tune if I ever am.

Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 16, 2017, 10:19:03 PM
Thanks for your input. Just a question, did you discuss the switch with an accountant before doing it?

I would appreciate if any accountants can answer this too.
They don't have to issue a 1099... Well how much is it?

Can just say they forgot, and have you sign a letter that states you reported the income. In the event that they are audited. At the end, that's all the IRS cares about. Everyone reporting their income.
Title: Re: any accountants out there that i can ask a question?
Post by: Bh101 on February 19, 2017, 09:46:27 AM
My assistant started off working for me on a 1099, and then I hired him full time and put him on a W-2. My CPA also said it was a red flag (especially if both were issued in the same year), but I wasn't concerned one bit, as I could back it up with facts.

I am not an accountant, and mean no offense to those that are, but I find that most accountants stick to their way of doing things, and are apprehensive about doing things differently. Avoiding an audit is a high priority with CPAs IME.

Also remember that the IRS is just like bank robbers, they go where the money is. How much resources do you think they will allocate to audit a return, if their best outcome won't end up gaining them much?

IINM the 1099 vs W2 is more of a DOL issue than it is an IRS issue.

Full disclosure: I have never been audited, and might change my tune if I ever am.
as an accountant i have to say that im not sure where all this came from? your own personal experience that the IRS goes where the money is or any of it actually. (and no offense taken just curious where all the advice is coming from)
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 19, 2017, 10:12:02 AM
as an accountant i have to say that im not sure where all this came from? your own personal experience that the IRS goes where the money is or any of it actually. (and no offense taken just curious where all the advice is coming from)
No advice whatsoever, just personal opinion. Whatever is based on experience was disclosed as such.
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on February 19, 2017, 11:32:52 AM
Anyone know if tuition paid reduces adjusted gross income?
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 19, 2017, 11:41:33 AM
Anyone know if tuition paid reduces adjusted gross income?
It does not
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on February 19, 2017, 11:44:09 AM
It does not

Are you sure ? im looking at publication 17 pg 7 it shows :

3. Your adjustments to income are for only
the following items.
a. Educator expenses.
b. IRA deduction.
c. Student loan interest deduction.
d. Tuition and fees
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 19, 2017, 12:08:06 PM
Are you sure ? im looking at publication 17 pg 7 it shows :

3. Your adjustments to income are for only
the following items.
a. Educator expenses.
b. IRA deduction.
c. Student loan interest deduction.
d. Tuition and fees
Sorry my bad. I thought you were referring to regular school tuition like grade school.

There are definitely deductions for college education.
Title: Re: any accountants out there that i can ask a question?
Post by: aryeh1 on February 19, 2017, 12:12:42 PM
Sorry my bad. I thought you were referring to regular school tuition like grade school.

There are definitely deductions for college education.
Thanks
College/graduate school

But not the full amount correct? CMMIW but max is $4000?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on February 19, 2017, 12:51:24 PM
There are tax credits for college tuition, too.
Title: Re: any accountants out there that i can ask a question?
Post by: chinagel on February 19, 2017, 12:58:44 PM
what do i do if i didnt get any 1099s and i know i got bank bonuses, just dont remember from who
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 19, 2017, 01:03:39 PM
what do i do if i didnt get any 1099s and i know i got bank bonuses, just dont remember from who
It was suggested to me to wait a while and get a tax transcript. When I did that it seemed like no 1099s were issued.
Title: Re: any accountants out there that i can ask a question?
Post by: chinagel on February 19, 2017, 01:10:02 PM
It was suggested to me to wait a while and get a tax transcript. When I did that it seemed like no 1099s were issued.
so basically i probably can forget it?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 19, 2017, 01:12:30 PM
It was suggested to me to wait a while and get a tax transcript. When I did that it seemed like no 1099s were issued.
Tax transcript is not the same as an earnings and wage transcript.
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 19, 2017, 02:03:43 PM
Tax transcript is not the same as an earnings and wage transcript.
I probably got the exact terminology wrong.

There is a transcript that is supposed to show all W2s and 1099s issued (also K-1s?).
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 19, 2017, 06:04:43 PM
Anyone know if tuition paid reduces adjusted gross income?
https://www.irs.gov/uac/tax-benefits-for-education-information-center
Title: Re: any accountants out there that i can ask a question?
Post by: mahnishma on February 22, 2017, 11:11:34 AM
Anyone know answer: i Booked an airline ticket for a company , they paid me for it, now they say they're supposed to issue me a 1099, anyone know if this is correct?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on February 22, 2017, 11:14:18 AM
Anyone know answer: i Booked an airline ticket for a company , they paid me for it, now they say they're supposed to issue me a 1099, anyone know if this is correct?
Sounds wrong to me.
If you sold them a ticket, give them a sales receipt. Then the income on sales is your problem.
If they reimbursed you (approximately) the cost of a ticket, it's a wash - not income for you.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 22, 2017, 11:39:07 AM
Anyone know answer: i Booked an airline ticket for a company , they paid me for it, now they say they're supposed to issue me a 1099, anyone know if this is correct?
They paid you... Not the airline. I don't believe this would fall in to reimburse expenses. They paid you as a travel agent.
If you made income on the deal it's reportable. If you lost money, report the loss. (Allocate expenses)
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on February 22, 2017, 07:01:56 PM
Anyone know answer: i Booked an airline ticket for a company , they paid me for it, now they say they're supposed to issue me a 1099, anyone know if this is correct?
Doesn't sound like a 1099 issue. If anything maybe just for the upsale on the ticket but I doubt you're talking about $600 in a year.
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on February 23, 2017, 02:51:20 PM
Sounds right.  Pick up the income and show a corresponding expense for your cost. 
Title: Re: any accountants out there that i can ask a question?
Post by: mahnishma on February 23, 2017, 04:56:29 PM
Sounds right.  Pick up the income and show a corresponding expense for your cost.

How much of that can be taken off,  what percentage of 1099s can be taken off for expenses ?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on February 23, 2017, 05:05:58 PM
How much of that can be taken off,  what percentage of 1099s can be taken off for expenses ?
When you have 1099 income, you can file a ?schedule C? that has place to deduct business expenses.
Title: Re: any accountants out there that i can ask a question?
Post by: mahnishma on February 23, 2017, 05:36:13 PM
When you have 1099 income, you can file a ?schedule C? that has place to deduct business expenses.

But in my situation,  how much can be taken off for a ticket i booked?
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 23, 2017, 05:39:42 PM
But in my situation,  how much can be taken off for a ticket i booked?
The cost of the ticket. (COGS)
Computer expenses...
Did you drive to the office? Auto expenses...
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 23, 2017, 06:22:36 PM
The cost of the ticket. (COGS)
Computer expenses...
Did you drive to the office? Auto expenses...
Home office deductions ftw
Title: Re: any accountants out there that i can ask a question?
Post by: joeberg on February 23, 2017, 09:59:22 PM
Home office deductions ftw
And the audit
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on February 23, 2017, 10:11:40 PM
And the audit
Overrated
Title: Re: any accountants out there that i can ask a question?
Post by: mahnishma on February 24, 2017, 01:03:07 AM
The cost of the ticket. (COGS)
Computer expenses...
Did you drive to the office? Auto expenses...
What's COGS? how do i calculate cost of ticket? CPM?
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on February 24, 2017, 02:29:48 AM
What's COGS? how do i calculate cost of ticket? CPM?
So this was booked using miles?

Can one use the price the airlines sell the miles to the retail public as COGS?
Title: Re: any accountants out there that i can ask a question?
Post by: shulem92 on February 24, 2017, 02:49:06 AM
I got a 1098-T for tuition. I got married in middle of the year. Last year I was a dependant on my fathers taxes, so obviously he used the 1098-T. Who files it this year? Me or my father, because he paid for the tuition
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on February 24, 2017, 08:04:35 AM
I got a 1098-T for tuition. I got married in middle of the year. Last year I was a dependant on my fathers taxes, so obviously he used the 1098-T. Who files it this year? Me or my father, because he paid for the tuition
If you are not filing as a dependant under your father this year then he cannot use your 1098-T since it has nothing to do with him. The fact that he paid your tuition is meaningless. The 1098-T is issued to your name and must be filed with your taxes.

Btw 1098-T will give you a tax credit, either opportunity credit of you are an undergraduate or the lifetime credit if you are post graduate.
Title: Re: any accountants out there that i can ask a question?
Post by: shulem92 on February 24, 2017, 11:02:26 AM
If you are not filing as a dependant under your father this year then he cannot use your 1098-T since it has nothing to do with him. The fact that he paid your tuition is meaningless. The 1098-T is issued to your name and must be filed with your taxes.

Btw 1098-T will give you a tax credit, either opportunity credit of you are an undergraduate or the lifetime credit if you are post graduate.
Thanx
Title: Re: any accountants out there that i can ask a question?
Post by: yomo on February 27, 2017, 02:34:00 AM
If someone is in the 10% or 15% bracket for ordinary income, is it true  that they can claim a tax free capital gain?
Is there a max amount for this tax free gain?
TIA!
Title: Re: any accountants out there that i can ask a question?
Post by: 12HRS on February 27, 2017, 09:31:48 AM
If someone is in the 10% or 15% bracket for ordinary income, is it true  that they can claim a tax free capital gain?
Is there a max amount for this tax free gain?
TIA!


Long term capital gains only. I ANAA although I believe the tax free would exist until the gains push you into a new bracket (this part might be incorrect)
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 27, 2017, 03:14:09 PM

Long term capital gains only. I ANAA although I believe the tax free would exist until the gains push you into a new bracket (this part might be incorrect)
+1
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on February 28, 2017, 01:37:03 PM
Regarding the EITC and rental income, are there any workarounds around the $3400 investment income cap?

Would setting up LLC and renting it to the LLC for slightly more than the costs of tax and depreciation, and have the LLC rent it to the tenant, make the income show up differently on return?
Title: Re: any accountants out there that i can ask a question?
Post by: Menachem613 on February 28, 2017, 01:55:30 PM
Regarding the EITC and rental income, are there any workarounds around the $3400 investment income cap?

Would setting up LLC and renting it to the LLC for slightly more than the costs of tax and depreciation, and have the LLC rent it to the tenant, make the income show up differently on return?

I would think you'd be picking up your share of the income from the LLC.
Title: Re: any accountants out there that i can ask a question?
Post by: bubkiz on February 28, 2017, 01:59:37 PM
I would think you'd be picking up your share of the income from the LLC.
Would it count as investment/rental income for EITC purposes?

Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 28, 2017, 04:42:17 PM
Regarding the EITC and rental income, are there any workarounds around the $3400 investment income cap?

Would setting up LLC and renting it to the LLC for slightly more than the costs of tax and depreciation, and have the LLC rent it to the tenant, make the income show up differently on return?
Set up a c corp and give the C corp a distribution amount of the income from the LLC which will bring your share of the income down to eic.

Obviously C corp will have double tax on way out. but leave that for when you area too rich to care.
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on February 28, 2017, 04:43:48 PM
Would it count as investment/rental income for EITC purposes?
If LLC is taxed as a partnership (default), then yes, it is passive rental income passed through to you. Unless you are a RE professional, in which case it is business income and wont affect EIC.
Title: Re: any accountants out there that i can ask a question?
Post by: avrumy on March 13, 2017, 08:36:04 PM
Is there a free software to use for filing a schedule C? Turbo Tax used to allow it and now after you fill in all the information they make you pay $35 to upgrade. Tia
Title: Re: any accountants out there that i can ask a question?
Post by: churnbabychurn on March 13, 2017, 09:16:21 PM
Is there a free software to use for filing a schedule C? Turbo Tax used to allow it and now after you fill in all the information they make you pay $35 to upgrade. Tia
Freetaxusa
Title: Re: any accountants out there that i can ask a question?
Post by: Jack out of the box on March 14, 2017, 08:23:45 AM
Is there a free software to use for filing a schedule C? Turbo Tax used to allow it and now after you fill in all the information they make you pay $35 to upgrade. Tia
It depends on your income level.
Title: Re: any accountants out there that i can ask a question?
Post by: dovy2 on March 14, 2017, 11:33:39 AM
my 1099-b has some sales without a purchase date, can I just manually add the dates and prices, or do i need to file a separate form?
Title: Re: any accountants out there that i can ask a question?
Post by: gozalim on March 14, 2017, 02:24:51 PM
Regarding the EITC and ... the $3400 investment income cap?
on that topic:
1) Does bank interest count towards the cap?
2) How about investments in Roth-IRA account and such?
Title: Re: any accountants out there that i can ask a question?
Post by: ckmk47 on March 14, 2017, 03:01:31 PM
on that topic:
1) Does bank interest count towards the cap?
2) How about investments in Roth-IRA account and such?
My guess:
1) yes. It's unearned, investment income.
2) no. Anything in a retirement account is not counted toward current income.


Now, accountants?
Title: Re: any accountants out there that i can ask a question?
Post by: googwallet on March 15, 2017, 12:32:55 AM
My guess:
1) yes. It's unearned, investment income.
2) no. Anything in a retirement account is not counted toward current income.


Now, accountants?
Well said. No accountant needed, this information can be easily found online.
Title: Re: any accountants out there that i can ask a question?
Post by: Dawie on March 15, 2017, 10:50:13 AM
Well said. No accountant needed, this information can be easily found online.
that can be applied to 99% of the things on DDF
Title: Re: any accountants out there that i can ask a question?
Post by: Amusch on March 16, 2017, 10:29:45 AM
Can some of the money I pay someone for a car be a "gift" not counted toward the payment and tax for the car? (The equivalent of a signing bonus in sports)
Title: Re: any accountants out there that i can ask a question?
Post by: ExGingi on March 16, 2017, 10:59:50 AM
Can some of the money I pay someone for a car be a "gift" not counted toward the payment and tax for the car? (The equivalent of a signing bonus in sports)
I am guessing that if someone sells you a car for less than Fair Market Value, the difference between the sales price and FMV is a gift. So if for example the car is worth $10,000 and it is sold to you for $5,000. The seller gave you a $5,000 gift.

See https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes for some information about gifts.
Title: Re: any accountants out there that i can ask a question?
Post by: A3 on March 16, 2017, 11:44:38 AM
Can some of the money I pay someone for a car be a "gift" not counted toward the payment and tax for the car? (The equivalent of a signing bonus in sports)
Would you give the gift other wise?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on March 16, 2017, 11:45:51 AM
Can some of the money I pay someone for a car be a "gift" not counted toward the payment and tax for the car? (The equivalent of a signing bonus in sports)

Can you lie on your taxes? Are you asking if you are allowed to or if you can get away with it?
Title: Re: any accountants out there that i can ask a question?
Post by: yitzf on March 16, 2017, 11:51:08 AM
I am guessing that if someone sells you a car for less than Fair Market Value, the difference between the sales price and FMV is a gift. So if for example the car is worth $10,000 and it is sold to you for $5,000. The seller gave you a $5,000 gift.

See https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes for some information about gifts.

Not necessarily true. If he was in a rush to get it off