Author Topic: any accountants out there that i can ask a question?  (Read 490434 times)

Offline lunatic

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Re: any accountants out there that i can ask a question?
« Reply #260 on: April 10, 2014, 11:33:02 AM »
If you can document that you paid more than fair market value.... Maybe

Offline michael

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Re: any accountants out there that i can ask a question?
« Reply #261 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.

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #262 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.)

Offline lunatic

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Re: any accountants out there that i can ask a question?
« Reply #263 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

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #264 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.

Offline lunatic

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Re: any accountants out there that i can ask a question?
« Reply #265 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....

Offline yos9694

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Re: any accountants out there that i can ask a question?
« Reply #266 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.

Offline 12HRS

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Re: any accountants out there that i can ask a question?
« Reply #267 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..

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #268 on: April 10, 2014, 12:06:08 PM »
May as well add Matza to that list as well..
If purchased from a nonprofit...  ;)

Offline michael

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Re: any accountants out there that i can ask a question?
« Reply #269 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.

Offline 12HRS

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Re: any accountants out there that i can ask a question?
« Reply #270 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 ;)

Offline yitzf

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Re: any accountants out there that i can ask a question?
« Reply #271 on: April 10, 2014, 01:27:55 PM »
If purchased from a nonprofit...  ;)

Like NPGS  :P

Offline avrumy

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Re: any accountants out there that i can ask a question?
« Reply #272 on: April 10, 2014, 06:15:57 PM »
Anyone know if there is any special reporting requirements on a OID?

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #273 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.
« Last Edit: April 11, 2014, 11:26:34 AM by henche »

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #274 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.

Offline ya

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Re: any accountants out there that i can ask a question?
« Reply #275 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?

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #276 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?

Offline ya

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Re: any accountants out there that i can ask a question?
« Reply #277 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

Offline Bostener

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Re: any accountants out there that i can ask a question?
« Reply #278 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.
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Bruh, where were you when my suitcase weighed it 51.50 pounds?

Offline ya

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Re: any accountants out there that i can ask a question?
« Reply #279 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