any accountants out there that i can ask a question?

[Tax]

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).

[12HRS]

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 Since all contributions can always be withdrawn at any time with out penalty it may make more sense for me to not do the majority of my investing in a roth.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?

[Blazer]

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 Since all contributions can always be withdrawn at any time with out penalty it may make more sense for me to not do the majority of my investing in a roth.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.

[churnbabychurn]

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..

[skyguy918]

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.

[12HRS]

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.

[12HRS]

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.

[churnbabychurn]

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! 
JK

[12HRS]

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.

[churnbabychurn]

I am surprised that it even went through on my accountants end and on the IRS end.

LOL

[skyguy918]

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.

[12HRS]

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.

[skyguy918]

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.

[doublejay]

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?

[David R]

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.

[yoruel]

How do I prove I used IRA money for home purchase?
What do I need to give my accountant? Is a HUD form enough?

[ushdadude]

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?

[ushdadude]

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

[henche]

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.

[ushdadude]

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).