Author Topic: any accountants out there that i can ask a question?  (Read 490612 times)

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #500 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? 

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #501 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. 

Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #502 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.

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #503 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

Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #504 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

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #505 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.

Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #506 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.

Offline dovy2

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Re: any accountants out there that i can ask a question?
« Reply #507 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?

Offline yid

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Re: any accountants out there that i can ask a question?
« Reply #508 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-

Offline nobiggy

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Re: any accountants out there that i can ask a question?
« Reply #509 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?

Offline A3

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Re: any accountants out there that i can ask a question?
« Reply #510 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.

Offline lunatic

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Re: any accountants out there that i can ask a question?
« Reply #511 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

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #512 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.

Offline nobiggy

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Re: any accountants out there that i can ask a question?
« Reply #513 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?

Offline Entrepreneur

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Re: any accountants out there that i can ask a question?
« Reply #514 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

Offline Blazer

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Re: any accountants out there that i can ask a question?
« Reply #515 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


Offline Entrepreneur

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Re: any accountants out there that i can ask a question?
« Reply #516 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.

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #517 on: October 29, 2015, 11:57:33 PM »
When couples file a joint return, is the husband or wife usually listed first?
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #518 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.

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Re: any accountants out there that i can ask a question?
« Reply #519 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.
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