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Admiral101 posted:First question: Not necessarily. You'd be deducting the depreciation against your rental income. If your rental expenses/depreciation exceeds your rental income (as in, you have a rental loss), you'll have a passive loss because rental activities are passive activities. You would only be able to deduct this loss against other passive income (as in, rental income from other properties or income from businesses that you dont materially participate in). In other words, this loss is not particularly beneficial. The vast majority of rental properties operate at a loss. Excellent, thank you for the very detailed response. This has given my a lot to think about and I am glad that I am armed with the accurate situation... On a separate note, following some great reads (Millionaire next door, etc.) and motivation to get my financial house completely in order, I have decided I need to retain the services of a CPA for advice as well as just completing my taxes. My finances are starting to get more complex and the strategies I want to undertake (massive debt elimination, lifestyle changes, etc.) require experts in areas to best enable that. What should I look for in a CPA? As I said, I am not merely looking for a knowledgeable tax-guy to complete forms, but someone who 'gets' what I'm trying to do and acts on my personal board of directors so-to-speak. How are they compensated for non-returns oriented work? What should I know about the profession that outsiders would otherwise not know so I don't fall for tricksy marketing? I don't have substantial assets yet, but significant income draining away at a good amount of low/no interest debt. (zero credit-card debt though) I plan to contact the CEO of my former firm (Investment Management company managing about a billion) for a few referrals, but want to be equipped to sift through those as well.
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Jun 13, 2011 15:47
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TraderStav posted:Excellent, thank you for the very detailed response. This has given my a lot to think about and I am glad that I am armed with the accurate situation... Not sure if "tricksy marketing" goes along with CPA, but oh well. We're not that clever. I'd ask someone besides your boss in this case for a referral, he probably uses someone that costs a heck of a lot more than what you can/will pay. If you have an investment advisor, ask them first, and then check with your friends/family. For non-return items, an hourly charge is typical. It's not as bad as with lawyers, but if you've never retained the services of a professional before be aware there will be some sticker shock. What you're looking for is more of a "certified financial planner" (CFP) type person - some CPAs have both and charge accordingly. You might get the same kind of advice in this matter from a non-CPA, and the CFPs that do this tend to be financial advisors (stock brokers). It's monday morning and I'm rambling, so let me know if you need some more clarification.
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Jun 13, 2011 16:49
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The funny thing is that he is looking specifically for a CPA even though none of the things he wants this adviser to do for him are covered on the CPA exam. Myself, I like to hire a licensed insurance broker to work on my car, and a DDS pumps my gas.
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Jun 13, 2011 16:53
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furushotakeru posted:The funny thing is that he is looking specifically for a CPA even though none of the things he wants this adviser to do for him are covered on the CPA exam. Myself, I like to hire a licensed insurance broker to work on my car, and a DDS pumps my gas. I didn't mean they wouldn't do my returns, but I see that as a baseline expectation. I am seeking someone who does that and works well with the other goals I have.
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Jun 13, 2011 17:05
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AbbiTheDog posted:Not sure if "tricksy marketing" goes along with CPA, but oh well. We're not that clever. Thanks for the information. My former boss is an investment advisor, so he works with a lot of them who work with people more in my wealth level. I may be barking up the wrong tree for a pure-CPA, so I will have to explore a CFP/CPA combo to meet what I'm looking for. I have a decent to good grasp on my personal finances, just looking to beef up the tax-counsel aspect. I actually run a small registered investment advisory (fee-only), but don't do any planning whatsoever, strictly investment management. I've been meaning to get to some NAPFA conferences to network and find some like-minded kin who manage their clients in the same philosophy that I do to work with and that would be a great place to find someone for myself. Thanks for the advice.
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Jun 13, 2011 17:31
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TraderStav posted:I didn't mean they wouldn't do my returns, but I see that as a baseline expectation. I am seeking someone who does that and works well with the other goals I have. I'm just poking a little fun, don't take it personally. FYI, as far as I am aware the CPA exam also does not include any testing on taxation either. However, most people who sit for the exam will have a BS in Accounting, which normally requires at least one or two tax classes. I'm sure Abbi will chime in if I am mistaken. I am not trying to say that CPA's don't know how to do taxes, only pointing out that the license they hold doesn't confer expertise in matters outside of accounting.
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Jun 13, 2011 18:33
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quote:I'm just poking a little fun, don't take it personally. The exam actually does test on a variety of taxation and finance topics. Only two sections are "pure" accounting.
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Jun 13, 2011 19:00
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Yeah that's what REG is all about. There's no testing on SALT though, and CPAs all love doing that, so vOv
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Jun 13, 2011 19:12
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Admiral101 posted:The exam actually does test on a variety of taxation and finance topics. Only two sections are "pure" accounting. That's good to know. I had wondered about that but apparently never enough to actually research the matter. I withdraw my previous statement then.
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Jun 13, 2011 19:27
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furushotakeru posted:That's good to know. I had wondered about that but apparently never enough to actually research the matter. I withdraw my previous statement then. It's been awhile since I've taken it (getting old), but some of the finance questions are hopelessly obsolete. It's nice to understand the theory behind amortizing a loan payment, but making someone do one manually is a bit dumb. I've heard the LTC test is harder than the CPA exam for tax questions, but who knows.
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Jun 13, 2011 23:28
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TraderStav posted:Thanks for the information. My former boss is an investment advisor, so he works with a lot of them who work with people more in my wealth level. I may be barking up the wrong tree for a pure-CPA, so I will have to explore a CFP/CPA combo to meet what I'm looking for. I have a decent to good grasp on my personal finances, just looking to beef up the tax-counsel aspect. I actually run a small registered investment advisory (fee-only), but don't do any planning whatsoever, strictly investment management. It might be better to have a CPA for your taxes and a CFP/investment advisor for your finances - then you can avoid getting screwed when the CFP's advice is "buy what I'm selling." Have a second set of eyes. Plus, the CPA/advisor can work together to help manage your tax planning (utilization of capital losses, expected income for the year, etc.).
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Jun 13, 2011 23:30
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furushotakeru posted:The funny thing is that he is looking specifically for a CPA even though none of the things he wants this adviser to do for him are covered on the CPA exam. Myself, I like to hire a licensed insurance broker to work on my car, and a DDS pumps my gas. You have to admit that the CPA designation has been well-marketed, especially compared to the EA designation.
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Jun 14, 2011 13:23
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Missing Donut posted:You have to admit that the CPA designation has been well-marketed, especially compared to the EA designation. Hey, I don't pay $400 in dues to the AICPA every year for nothing!
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Jun 14, 2011 17:23
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AbbiTheDog posted:Hey, I don't pay $400 in dues to the AICPA every year for nothing! No but apparently I pay some $330 a year to the national and state EA associations for not very good brand recognition. Oh well, I mostly pay the dues because they advocate in the local and national legislatures to make sure those rear end in a top hat CPA's and attorneys don't succeed in taking away (or limiting) my right to practice  In CA some salvos have been exchanged between EA's and CPA's in recent years over the right for EA's to serve as professional fiduciaries, at least in the same capacity that CPA's can. There has also been some scuffling at the national level regarding the new preparer regulations. CPA's and Attorneys seem to think for some reason they should be grandfathered in for a lot of things but that EA's should not get that same treatment. furushotakeru fucked around with this message at 18:32 on Jun 14, 2011 |
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Jun 14, 2011 18:30
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furushotakeru posted:No but apparently I pay some $330 a year to the national and state EA associations for not very good brand recognition. Oh well, I mostly pay the dues because they advocate in the local and national legislatures to make sure those rear end in a top hat CPA's and attorneys don't succeed in taking away (or limiting) my right to practice That's because you only have two initials, I have three. I'm 50% awesomer.
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Jun 14, 2011 19:06
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AbbiTheDog posted:That's because you only have two initials, I have three. I'm 50% awesomer. drat your logic! 
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Jun 14, 2011 20:18
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I searched through and a definitive answer was not posted. If I do wire transfer from Japan to United States for college loan (my account in Japan to my account in United States), do I get taxed if it exceeds 14000 dollars? My dad decided to loan me the money instead of me [Edit]getting unnecessary charges[/Edit] from interest rates. Since transferring from my account was the cheapest, he put the money in my bank account. Helmet Jap fucked around with this message at 06:40 on Jun 18, 2011 |
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Jun 17, 2011 23:42
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Please don't use "raped" to describe something that is not rape, thanks  As for your question, you are sending money from yourself to yourself which is not a taxable event. It's over $10k so the bank may have you fill out some forms though.
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Jun 18, 2011 00:20
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quote:I searched through and a definitive answer was not posted. Essentially what is happening here is that your dad is giving you 14,000$? I don't see any tax implications for you for this. Is there a reason that you think there would be? Admiral101 fucked around with this message at 00:58 on Jun 18, 2011 |
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Jun 18, 2011 00:55
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He's calling it a loan, so if he's charging below the required rates then there could be an imputed interest issue too I guess???
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Jun 18, 2011 05:06
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scribe jones posted:He's calling it a loan, so if he's charging below the required rates then there could be an imputed interest issue too I guess??? I don't know anything about Japanese tax law so I have no idea. The dad is not in the US and therefore our rules do not apply.
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Jun 18, 2011 05:54
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scribe jones posted:Please don't use "raped" to describe something that is not rape, thanks changed sorry for the poor choice of words Admiral101 posted:Essentially what is happening here is that your dad is giving you 14,000$? I just thought that since is sort of like a temporary "gift" I would get charged with taxes or something. I read that international transfer of money considered a "gift" that exceeds 14000 dollars is taxable furushotakeru posted:I don't know anything about Japanese tax law so I have no idea. The dad is not in the US and therefore our rules do not apply. thanks, thats what I needed to know.
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Jun 18, 2011 06:42
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furushotakeru posted:I don't know anything about Japanese tax law so I have no idea. The dad is not in the US and therefore our rules do not apply.
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Jun 18, 2011 06:48
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quote:I just thought that since is sort of like a temporary "gift" I would get charged with taxes or something. I read that international transfer of money considered a "gift" that exceeds 14000 dollars is taxable This sounds/smells like a gift. Gifts are never taxable to the recipient, only to the giver. In this case there's nothing to worry about. The limit for your dad and his spouse (assuming he's married) is 26,000 for 2010. quote:I don't know anything about Japanese tax law so I have no idea. The dad is not in the US and therefore our rules do not apply. If his dad is still a US citizen, he's still filing his US taxes even though he lives in Japan - no?
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Jun 18, 2011 15:31
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Admiral101 posted:Essentially what is happening here is that your dad is giving you 14,000$? If OP is a US citizen, he should look into Form TDF 90-22.1 (due very soon as well). His bank should have already alerted the Feds/IRS for the transfer (they don't tell you about this. And don't ask, because if you do, then all your wires are reported). The OP should let us know if his father is a US citizen or not, there are separate forms for gifts from nonresidents. Here's another forum answer, did not research it for accuracy though. http://www.askmehelpdesk.com/taxes/gift-non-resident-alien-us-citizen-397931.html
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Jun 20, 2011 21:16
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AbbiTheDog posted:If OP is a US citizen, he should look into Form TDF 90-22.1 (due very soon as well). I am a US citizen and my father is not a US citizen
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Jun 22, 2011 01:30
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Helmet Jap posted:I am a US citizen and my father is not a US citizen You should definitely make sure to file a TDF 90-22.1 by June 30th then. The IRS is getting very aggressive about foreign accounts so it is set to disclose it. Besides, it's not like the account in Japan is earning any interest so it won't impact your US taxes. 
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Jun 22, 2011 05:57
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I'm getting married in August. I'm salaried, she's an independent contractor, and after marriage she will stop working entirely. (Well, technically she's still going to be doing IC work, but she is guaranteed to have no income for several years.) First... Quarterly estimates: Does she still have to pay 4th quarter based on the previous year's expected income, even though we know 100% that her income will be $0.00 in Q4 2011? I remember seeing something like that when I did her tax estimates with her last year, that quarterlies were supposed to be based on the previous year's income / 4. Second: Is it even worth the time of trying to figure out the filing for 8 months of the year single, 4 months of the year married, or just file MFS for 2011 and start jointly next year?
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Jun 22, 2011 18:46
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I was hired through a contracting service for another company. I was led to believe I would be an IC. I just got my first check and they have taken taxes out. The taxes look off to me. Check was $1000 Federal was $12 Medicare was $15 Soc Sec was $40 State tax was $45 The federal income tax looks way off to me. Does anyone have any idea whats going on there? I plan to ask the HR person tommorow but does anyone have any idea why the federal is so low?
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Jun 23, 2011 01:31
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Sundae posted:Quarterly estimates: Does she still have to pay 4th quarter based on the previous year's expected income, even though we know 100% that her income will be $0.00 in Q4 2011? I remember seeing something like that when I did her tax estimates with her last year, that quarterlies were supposed to be based on the previous year's income / 4. There are two options to calculate estimated payments: 1. Prior-year safe-harbor: 100% of prior year tax (or 110% if AGI > 150k) 2. Current-year test: 90% of current year tax If you think your income will be lower this year then you will go for the 90% current-year test to avoid the underpayment penalty. Your filing status is determined by your marriage status at the end of the year. You will file either married filing joint or married filing separate.
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Jun 23, 2011 02:09
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Pokkahn posted:I was hired through a contracting service for another company. I was led to believe I would be an IC. I just got my first check and they have taken taxes out. The taxes look off to me. Mattism fucked around with this message at 13:51 on Jun 23, 2011 |
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Jun 23, 2011 13:47
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Mattism posted:Did you put the maximum amount of allowances on your W-4? Infinity? Also, I find it amusing to hear of someone who thought they were going to be 1099 and ended up an employee. The other way around happens thousands of times a day but this may be a first that I have heard of!
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Jun 23, 2011 16:46
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furushotakeru posted:Infinity?
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Jun 23, 2011 19:08
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furushotakeru posted:Infinity?  You know very well what I meant. Though now that I think about it, that would be quite a few allowances to only have $12 withheld. Mattism fucked around with this message at 03:40 on Jun 24, 2011 |
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Jun 24, 2011 03:37
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I read that the IRS conducts all of its random audits from the pool of taxpayers that file their returns by the 3/15 & 4/15 (1120 & 1040) deadlines but not from the group that files extensions. True or false?
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Jun 25, 2011 16:25
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poofactory posted:I read that the IRS conducts all of its random audits from the pool of taxpayers that file their returns by the 3/15 & 4/15 (1120 & 1040) deadlines but not from the group that files extensions. True or false? You figured it out. You cracked the code. Based on your history in these threads, I have to ask: do you apply any common sense or critical thinking skills in regard to tax law?
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Jun 25, 2011 22:41
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I've got a bit of a fun situation. I moved to Colorado last year, so I had to pay CO income tax for part of the year. This was dutifully deducted from my paycheck, as normal for any W-2 person. Come April of this year, I filed a CO income tax return. My return (a whopping $200) never showed up, and today I got a Notice of Deficiency claiming I still owe my entire tax bill, plus a penalty, plus some interest (at a discounted rate, how nice of them). I called them up, but this being Sunday there was nobody I could talk to. The phone recording suggested I could email (!?) a copy of my W-2 and the Notice of Deficiency to the Department of Revenue, or send them a letter with the same information. Apparently they also have a site for registering my protest, which is built in Silverlight (?!). I might try to use that, if it ever sends me a confirmation email. I know states probably vary wildly (I miss having no state income tax back in TX SO MUCH), but what should I expect from this process? I expect this should be pretty easy to review, as my tax was deducted from my paycheck. By statute, I may request a hearing with the Executive Director. Is that a good idea? Here's a gem from the Department of Revenue's site: quote:The DOR will review your case in the order in which it was received. Depending on the department's caseload and nature of your case, it may take up to six months for a response to your protest.
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Jun 26, 2011 23:57
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quote:The phone recording suggested I could email (!?) a copy of my W-2 and the Notice of Deficiency to the Department of Revenue, or send them a letter with the same information. ...just do this? After a brief google, I found that Colorado requires individual filers to attach a copy of their W-2 to their individual income tax return. You should do this in the future to avoid notices. I'm guessing you paper filed?
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Jun 27, 2011 01:27
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Admiral101 posted:...just do this? I paper filed, W-2 was attached.
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Jun 27, 2011 02:48
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sklnd posted:I paper filed, W-2 was attached. Did you file as a full-year resident or a part-year resident?
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Jun 27, 2011 03:10
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