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Have a question about how stock options apply to wash sales... Lets say I purchased 100 shares of stock ABC at a cost of $100/share on 10/6/2011 (so the stock purchase and option purchase/sale all happen within 30 days). So the stock price declines to $95/share, and I purchase a put contract with a strike price of $100 for a total cost of $500. Now, the stock price drops to $80/share, and I sell my put contract for $2000, but I keep owning the stock. So I've experienced a realized gain of $1500, but I have unrealized losses of $2,000 from the stock I still own. If nothing else happens until the end of the year, will I owe taxes on the $1500, or is that subtracted from the basis of the stock? If next year the stock price is still at $80, and I sell it, will I have a $2000 loss for 2012 taxes or only $500 ?
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Oct 25, 2011 00:26
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Missing Donut posted:Based on this you won't lose 10k by filing separately. I'm quite surprised that your wife's student loan will actually allow this, though. Double check that. Thanks. Here's the info regarding the repayment. The marriage penalty inherent in the IBR formula was corrected by Congress (P.L. 110-153, December 21, 2007) by allowing a married borrower who files income tax returns as "married filing separately" to count only the borrower's adjusted gross income and student loan debt. This lets a borrower exclude the (higher) income of his/her spouse when calculating the cap on monthly payments under income-based repayment instead of combining the income as under the original legislation.
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Oct 25, 2011 01:28
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flowinprose posted:Have a question about how stock options apply to wash sales... For the other stuff, that sounds like a straddle, though you might have to declare it as such. You might read through whatever publication on the IRS website that discusses capital gains and losses, but I'm inclined to say you would owe tax on the gain from selling the option contract with no netting against the unrealized loss. Were you to flip your gains and losses (i.e. $2000 realized loss, $1500 unrealized gain) the loss would be deferred and limited to $500.
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Oct 26, 2011 02:36
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I need to know if I am going to get screwed or not here: I own a condo, that is listed as my primary residence. I rent out this condo. I use the rent money to pay the mortgage on my condo. I live in a house (rent free) that is owned by someone else. Is this a problem? I haven't claimed the rental money as income, as it has been less than a year. Will I need to claim the money as income on next years taxes since it goes to the rent of the condo? Should I get a PO box and just prevent the gubment from asking questions. Thanks goons
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Nov 8, 2011 22:07
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jai Mundi posted:Should I get a PO box and just prevent the gubment from asking questions. FYI, all above-board paid tax preparers will slap you for this. And an IRS agent does frequent these forums. If you were my client, I would make you claim the rental income and turn your "personal residence" into a Sch. E rental.
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Nov 8, 2011 23:02
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AbbiTheDog posted:FYI, all above-board paid tax preparers will slap you for this. And an IRS agent does frequent these forums. I guess my questions is do I have a primary residence anymore? I'm not trying to be shady, just trying to prevent problems.
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Nov 8, 2011 23:52
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jai Mundi posted:I guess my questions is do I have a primary residence anymore? I'm not trying to be shady, just trying to prevent problems. Your primary residence is wherever you live. I think you are worrying about your homestead exemption, which is a county property tax issue not an income tax issue.
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Nov 9, 2011 00:43
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furushotakeru posted:Your primary residence is wherever you live. I think you are worrying about your homestead exemption, which is a county property tax issue not an income tax issue. What does 40 acres and a mule have to do with anything? #OCCUPY HOMESTEAD
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Nov 9, 2011 00:53
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I got something you can occupy right here bub
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Nov 9, 2011 00:57
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Are you familiar with the Child and Dependent Care Expenses Credit? I'm specifically referring to the pre-tax contributions and that "account" that is created with those funds.
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Nov 9, 2011 04:45
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Rusty Shackelford posted:Are you familiar with the Child and Dependent Care Expenses Credit? I'm specifically referring to the pre-tax contributions and that "account" that is created with those funds. I think you are mixing two distinct concepts- dependent care benefits are related to, but separate from, dependent care credit
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Nov 9, 2011 04:52
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furushotakeru posted:I think you are mixing two distinct concepts- dependent care benefits are related to, but separate from, dependent care credit Ok. Well, I have heard different things about what is and isn't covered under that Child Care account. We currently pay a woman to watch our infant daughter in her home. If we are paying her in "cash," that doesn't qualify, right? I've heard other parents say that that does count. Can you help clarify what is and isn't covered under that account?
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Nov 9, 2011 05:02
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Rusty Shackelford posted:Ok. Well, I have heard different things about what is and isn't covered under that Child Care account. We currently pay a woman to watch our infant daughter in her home. If we are paying her in "cash," that doesn't qualify, right? I've heard other parents say that that does count. Can you help clarify what is and isn't covered under that account? If you're paying her in "cash" and she isn't reporting it as income, then she's breaking the law. If that's the case, then she's probably not going to be too keen on giving you some type of receipt/invoice showing you what you've paid her for child care that you would need in order to get reimbursement from the child-care account. flowinprose fucked around with this message at 05:08 on Nov 9, 2011 |
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Nov 9, 2011 05:05
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flowinprose posted:If you're paying her in "cash" and she isn't reporting it as income, then she's breaking the law. If that's the case, then she's probably not going to be too keen on giving you some type of receipt/invoice showing you what you've paid her for child care that you would need in order to get reimbursement from the child-care account. To elaborate on this: There is no problem with paying in cash. You don't -need- an invoice to report the credit, though documentation is always nice. What is needed is the woman's social security number and address (or the EIN number if she's through a business). If she's not reporting the child care on her taxes, however, she may get a notice from the IRS.
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Nov 9, 2011 13:41
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Admiral101 posted:To elaborate on this: Since he said he was paying "cash," I took that to mean off the books. Yeah you don't have to have an invoice or receipt to take the credit when you file your taxes, but if you're using a child-care flex-savings account that you're putting pre-tax dollars in from your paycheck (which is what I thought he was asking about) then generally they require something like that in order to reimburse you.
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Nov 9, 2011 14:38
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Admiral101 posted:To elaborate on this: *cough* http://www.4nannytaxes.com/faq/ *cough*
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Nov 9, 2011 17:26
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AbbiTheDog posted:*cough* http://www.4nannytaxes.com/faq/ *cough* This situation isn't really the nanny tax, since the person taking care of his child does it in her house, not the parent's house.
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Nov 9, 2011 18:29
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flowinprose posted:This situation isn't really the nanny tax, since the person taking care of his child does it in her house, not the parent's house. Missed that part. What he's going to find is when he asks for her SSN, she's going to stop watching his kid suddenly. The child care credit is essentially a paid snitching program for the IRS, since the credit is really pretty small and gets phased out fast.
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Nov 9, 2011 18:33
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furushotakeru posted:I got something you can occupy right here bub Sorry Furu, I don't accept advances from women over the internet.
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Nov 9, 2011 20:12
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Cyrezar posted:Modified Decelerated Cost Appreciation System? The Something Awful Forums > Discussion > Ask / Tell > Business, Finance, and Careers > Section 179 Depreciation Station What do you tax-only guys do in November 2011 for work?
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Nov 9, 2011 23:13
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Mandalay posted:The Something Awful Forums > Discussion > Ask / Tell > Business, Finance, and Careers > Section 179 Depreciation Station Same stuff I do the rest of the year  Bookkeeping projects, collections cases, late filers, past year returns, continuing education, business planning for next season, etc.
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Nov 9, 2011 23:14
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furushotakeru posted:Same stuff I do the rest of the year Oh. For some reason, I imagined you guys working like dogs for 10 months of the year and loving off after October 15.
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Nov 9, 2011 23:17
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Mandalay posted:Oh. For some reason, I imagined you guys working like dogs for 10 months of the year and loving off after October 15. Some probably gently caress off after 4/15, I just don't have my practice structured that way. In other words, I can't afford the staff to handle all this poo poo for me so I get to do it myself.
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Nov 9, 2011 23:21
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furushotakeru posted:Some probably gently caress off after 4/15, I just don't have my practice structured that way. In other words, I can't afford the staff to handle all this poo poo for me so I get to do it myself. Long island iced teas all year long over here. In all reality, I do 75% of my work January - April. July and November are my firm's slowest months (holidays, no tax deadlines really). Looking for a tax season temp right now, I don't need the overhead of another staff all year long.
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Nov 10, 2011 00:08
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AbbiTheDog posted:Looking for a tax season temp right now, I don't need the overhead of another staff all year long. if this is for real, shoot me a PM, I have passed 2/4 CPA exams, got A's in my tax classes, and am not legally retarded 
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Nov 10, 2011 00:36
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scribe jones posted:if this is for real, shoot me a PM, I have passed 2/4 CPA exams, got A's in my tax classes, and am not legally retarded Need 5+ years experience in preparation and review, sorry. Don't have the deep pockets to train junior staff, I just had to "rightsize" a few months ago due to this.
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Nov 10, 2011 01:51
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I have a question about delinquent taxes for an LLC. Sorry if this is not the correct thread, but I'm not sure where else to ask. I discovered today that my boss (management, but not an owner) might be engaging in an activity that results in payroll taxes being deposited several days past due. I'm not sure if this is the case, and if it is I think it would mostly be attributable to her incompetence. Where is the best place to find out if the activity is legal, or even causing delinquent taxes? IRC § 6672 is pretty intimidating. 
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Nov 11, 2011 08:36
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I would let that be her problem. Mention to her that you saw something that sounded like it was different from what you have observed happening in the office and let her follow up on her own. Or suggest she find a payroll service to take care of it, they aren't that expensive and I consider it a cost of being in business and paying employees.
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Nov 11, 2011 21:36
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As a sole proprietor my wife has less than $2,000 of expenses. This year in addition to our expenses we bought a $1,800 lens and we want to buy a $2,200 camera. Will we be forced to capitalize these expenses or can we take it all in our first year? For the purpose of simplicity we would like to write of the entire expense on the first year. Additionally, next year we will be selling the $1,800 lens and will likely take a $500 loss after transaction costs in 2012. Can we write off this loss in 2012 if we count the sale towards our income? We will turn around and spend the $1,300 on lenses that in turn we would like to write off. Does this sound reasonable? If all else is equal should we sell the lens and buy the new ones in 2011? Or some combination of selling and buying spread out across the two years? Thank you for your help.
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Nov 13, 2011 00:17
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Bobx66 posted:As a sole proprietor my wife has less than $2,000 of expenses. This year in addition to our expenses we bought a $1,800 lens and we want to buy a $2,200 camera. Will we be forced to capitalize these expenses or can we take it all in our first year? For the purpose of simplicity we would like to write of the entire expense on the first year. You can elect to expense the entire equipment purchases in the year you bought it under §179. This will leave you with a basis of zero for the camera and lens, so if you sell the lens next year then any net proceeds after transaction costs will be income to you next year. You can then elect to expense the new lens next year if you want.
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Nov 13, 2011 00:39
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furushotakeru posted:You can elect to expense the entire equipment purchases in the year you bought it under §179. This will leave you with a basis of zero for the camera and lens, so if you sell the lens next year then any net proceeds after transaction costs will be income to you next year. You can then elect to expense the new lens next year if you want. So I can't write off a loss($500) on a the disposition of the lens since I am taking the full deduction the firs year? Or are they unrelated? Thanks for getting back to me so quickly.
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Nov 13, 2011 08:42
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Bobx66 posted:So I can't write off a loss($500) on a the disposition of the lens since I am taking the full deduction the firs year? Or are they unrelated? Thanks for getting back to me so quickly. There won't be a loss for tax purposes because you will already have deducted the full cost of the equipment
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Nov 13, 2011 08:44
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I have a question regarding profit from stock purchases. I have done quite a bit of reading, but I wanted to see if I could get a plain-english answer here. I am a 28 year old professional, with 0 withholdings claimed for my day job, and pretty much nothing that I can deduct from my taxes. This usually leaves me a modest tax return. I made a ton of money this year in short-term stock market trades. I know that my taxes owed will be far in excess of what is being withheld from my paycheck. This lead me to read about underpayment penalties. My understanding from reading the IRS documents is that I won't be hit with underpayment penalties for the tax year 2011 if I had withholdings in excess of my tax burden in 2010. I will have that covered, so I have nothing to worry about for 2011. Am I reading this correctly? In addition, if this happens again next year, what can I do to avoid underpayment penalties? Can I calculate my approximate tax on the stock earnings and make a big quarterly payment in december, or do I have to do it quarter-by-quarter?
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Nov 19, 2011 18:35
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quote:I have a question regarding profit from stock purchases. I have done quite a bit of reading, but I wanted to see if I could get a plain-english answer here. You will be fine for 2011. For 2012, you will need to make quarterly estimated tax payments, presuming your tax owed in 2011 (tax liability minus withholdings) is in excess of $1,000. The amount of payments you make in 2012 is not necessarily related to the profit you realize in 2012. The payments are based on the tax in excess of withholdings in 2011. So: Assume for 2011 you had 30,000 of withholdings, and owe 38,000 total in tax. You would need to make $2,000 payments each quarter in 2012 to avoid penalty on your 2012 tax return. Also, I am assuming that your AGI in 2011 is less than $150,000. This link may be helpful to you: http://www.irs.gov/businesses/small/article/0,,id=110413,00.html Remember that all of this is irrelevant if the tax owed at the end of the year is less than $1,000.
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Nov 20, 2011 05:01
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I've got a Flexible Spending Account, but I only put about $300 in it. I'm in the 25% bracket, so this is just saving me $300 x .25 = $75 in taxes, right? I'm considering ditching it because the paper work is too much of a hassle, especially when I end up not using it all anyway, but I want to make sure I know what I'm losing.
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Nov 21, 2011 16:45
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FISHMANPET posted:I've got a Flexible Spending Account, but I only put about $300 in it. I'm in the 25% bracket, so this is just saving me $300 x .25 = $75 in taxes, right? Ples 5.65% in saved FICA and Medicare withholding, and whatever your state income and/or disability, etc rates are.
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Nov 21, 2011 17:14
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This is a business taxes question, so sorry if it's not right for this thread. What requirements must be met for a small business to pay for an employee's higher education? ie, does it have to be related to the business, and how strict does that relation have to be? TotallyGreen fucked around with this message at 20:38 on Nov 21, 2011 |
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Nov 21, 2011 20:36
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TotallyGreen posted:This is a business taxes question, so sorry if it's not right for this thread. I'll just leave this right here: http://www.irs.gov/publications/p15b/ar02.html#en_US_2011_publink1000193667 Also note that partners in a partnership/LLC/LLP or employees of an S-Corp that own more than 2% of the company cannot receive tax free education benefits.
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Nov 21, 2011 20:53
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furushotakeru posted:I'll just leave this right here: http://www.irs.gov/publications/p15b/ar02.html#en_US_2011_publink1000193667 Looking at this: quote:Educational assistance means amounts you pay or incur for your employees' education expenses. These expenses generally include the cost of books, equipment, fees, supplies, and tuition. However, these expenses do not include the cost of a course or other education involving sports, games, or hobbies, unless the education: So, if the course is required as part of a degree program, it doesn't have to be related to the business. Does the degree program have to be related to the business?
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Nov 21, 2011 20:57
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TotallyGreen posted:This is a business taxes question, so sorry if it's not right for this thread. per AbbiTheDog, "Education expenses to train for a new profession are not deductible as business expenses." http://forums.somethingawful.com/showthread.php?threadid=3394641&pagenumber=11&perpage=40#post394578792 e: I may be wrong, see Admiral101's rebuttal below. I am not a tax professional! Mandalay fucked around with this message at 23:05 on Nov 21, 2011 |
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Nov 21, 2011 21:01
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