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psydude posted:rear end-raped Don't do this
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Dec 16, 2011 20:06
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ok CPA goons. If my client's Iraqi dinars magically increase in value and my client converts them back into U.S. dollars or otherwise uses them, where on the 1040 would my client report the Section 988 gain? Line 14 for other gains/losses or line 21 for other income? entris fucked around with this message at 20:38 on Dec 16, 2011 |
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Dec 16, 2011 20:30
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psydude posted:I just moved to Maryland from Virginia and am about to get rear end-raped by the excise tax on registering my car here. Can I claim this as a deduction on my return? How does Virginia calculate your registration fee? entris posted:ok CPA goons. If my client's Iraqi dinars magically increase in value and my client converts them back into U.S. dollars or otherwise uses them, where on the 1040 would my client report the Section 988 gain? My vote is Form 8886.
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Dec 17, 2011 04:09
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entris posted:ok CPA goons. If my client's Iraqi dinars magically increase in value and my client converts them back into U.S. dollars or otherwise uses them, where on the 1040 would my client report the Section 988 gain? Line 21. It would only be a reportable transaction (Form 8886) if the §988 loss (not netted by gains) was $50,000 or greater. Not aware of a §988 gain being a reportable transaction but perhaps I'm forgetting something.
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Dec 17, 2011 04:23
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catman posted:perhaps I'm forgetting something. You may have forgotten the possibility that I wouldn't be 100% serious in my response to a non-serious hypothetical gain on a complete scam.
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Dec 18, 2011 15:40
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Missing Donut posted:You may have forgotten the possibility that I wouldn't be 100% serious in my response to a non-serious hypothetical gain on a complete scam. Heh yeah I hear you. My client is so convinced that "any day now" the dinar is going to be revalued, she wants me to draft a letter explaining how to report the increase in value on her tax return - what sort of supporting documentation she wants, etc.
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Dec 18, 2011 15:51
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entris posted:Heh yeah I hear you. My client is so convinced that "any day now" the dinar is going to be revalued, she wants me to draft a letter explaining how to report the increase in value on her tax return - what sort of supporting documentation she wants, etc. And I would do it for her. At my hourly rate.
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Dec 18, 2011 18:08
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Is there a list of last minute poo poo I should do to make my taxes better or easier to file? I just get worried I need to do something before the year ends. I suppose donating $5,000 to charity won't reduce my taxes, but maybe there is some tax break or form or rebate I should know about?
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Dec 19, 2011 22:12
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My magic 8 ball says Donating will reduce your taxes if you itemize, which based on past conversations I do not believe you do. Well, if you donated $5,000 you would be king of the thread linked above and you would probably be itemizing. Other than that the answer is "depends". If you have money in a flexible spending account be sure to spend it before the end of the year, or else you lose it. Not really tax advice, just "use it or lose it" common sense.
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Dec 19, 2011 22:16
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AxeManiac posted:Is there a list of last minute poo poo I should do to make my taxes better or easier to file? I just get worried I need to do something before the year ends. I suppose donating $5,000 to charity won't reduce my taxes, but maybe there is some tax break or form or rebate I should know about? Marry somebody with lots of kids and roll around in the free money the government throws at you.
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Dec 19, 2011 23:19
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Missing Donut posted:How does Virginia calculate your registration fee? Virginia charged 3% of the sale value of the vehicle, plus (I believe) a flat fee. Maryland charges the difference between whatever tax you paid at the time of the sale and their own base sales tax on top of the registration and titling fees.
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Dec 20, 2011 15:36
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Are there any tax implications associated with a relative (aunt) offering to pay your student loans off? Assume, for the purposes of this, that the balance they're offering to pay is greater than $75,000. I ask because I've seen plenty of things showing that forgiveness of said loan would be treated as income, so I started to worry about whether there's any sort of income or gift-based tax implication to this completely different situation.
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Dec 21, 2011 18:41
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So I got an income underreporting form from the IRS. There's about $4,500 of income not reported on my tax return that I did not earn. (From some janitorial company) I'm not sure exactly where to go from here. Do I call the company that the income was reported from? I can't prove to the IRS that I DIDN'T work at this place.
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Dec 21, 2011 18:57
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Sundae posted:Are there any tax implications associated with a relative (aunt) offering to pay your student loans off? Assume, for the purposes of this, that the balance they're offering to pay is greater than $75,000. She's gifting you the money, you have nothing to worry about on your end.
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Dec 21, 2011 19:19
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Caedar posted:So I got an income underreporting form from the IRS. There's about $4,500 of income not reported on my tax return that I did not earn. (From some janitorial company) I'm not sure exactly where to go from here. Do I call the company that the income was reported from? I can't prove to the IRS that I DIDN'T work at this place. Start by calling the IRS, see where they point you. The notice you got was a CP2000 notice that is computer generated, nobody has looked at this yet.
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Dec 21, 2011 19:20
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e: damnit, Abbi!Sundae posted:Are there any tax implications associated with a relative (aunt) offering to pay your student loans off? Assume, for the purposes of this, that the balance they're offering to pay is greater than $75,000. What you are talking about is an indirect gift to you - the creditor isn't cancelling any portion of your indebtedness, your aunt is just paying off some or all of it on your behalf, which economically is a gift to you. What is really happening, from a tax perspective, is that your aunt is giving you the money and then you are paying off the debt. She will have to report the transaction as a taxable gift (which means she will use up some of her available unified gift and estate tax credit). It isn't going to trigger income tax consequences for you, assuming that your aunt pays off the loans in full and doesn't get any discounted price which would be considered a partial cancellation of indebtedness.
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Dec 21, 2011 19:26
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entris posted:e: damnit, Abbi! Now you're sounding like my wife.
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Dec 21, 2011 21:02
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AbbiTheDog posted:Now you're sounding like my wife. Your wife calls you "Abbi"? 
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Dec 21, 2011 22:14
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psydude posted:Virginia charged 3% of the sale value of the vehicle, plus (I believe) a flat fee. Maryland charges the difference between whatever tax you paid at the time of the sale and their own base sales tax on top of the registration and titling fees. I believe that would be potentially deductible as a sales tax deduction. I'm not 100% sure on that though. furushotakeru posted:Your wife calls you "Abbi"? Different folks, different strokes.
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Dec 22, 2011 02:04
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furushotakeru posted:Your wife calls you "Abbi"? The damnit part. Abbi is our dog, who is not long for this world, unfortunately.
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Dec 22, 2011 17:13
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I've never filed my taxes in 7 years of working. Am I able to go back all those 7 years and file and be eligible for a tax refund? My mom has told me I can only get money back if I have other items to write off and such like that which I haven't donated any large sums of money with receipts to prove that. It was my understanding that since I don't make a very high salary I would be eligible for some returns. Making between $10,000-$30,000 each of these past years. Any help would be appreciated.
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Dec 23, 2011 03:45
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FlyWhiteBoy posted:I've never filed my taxes in 7 years of working. Am I able to go back all those 7 years and file and be eligible for a tax refund? My mom has told me I can only get money back if I have other items to write off and such like that which I haven't donated any large sums of money with receipts to prove that. It was my understanding that since I don't make a very high salary I would be eligible for some returns. Making between $10,000-$30,000 each of these past years. Any help would be appreciated. Well, first off, after 3 years, you can no longer claim old refunds, so basically, as of April 15th 2012, which will be the deadline for filing a 2011 return, any refunds you would be due for tax years prior to 2008, are gone. Now, you are still on the hook if you owe, and you'd owe penalties and interest. You are probably going to be better off going to an accountant, or tax professional, and laying out the situation. If you have W-2s for all prior years, and you were having some things withheld, I don't think you're going to wind up owing for any year, but you can only go back and claim 3 years worth of refunds.
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Dec 23, 2011 04:32
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That's a bummer on the 3 year limit. I will have to go back and request the w2 from my employers. Is it likely I will get any money back or is it going to be a giant waste of time?
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Dec 23, 2011 04:42
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Asking your employers will be a big waste of time. Call the IRS and ask for an income transcript for those years, they can fax them to you.
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Dec 23, 2011 05:35
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furushotakeru posted:Asking your employers will be a big waste of time. Call the IRS and ask for an income transcript for those years, they can fax them to you. If you have state withholding, the IRS transcript will not have this information. You would need paystubs or to contact your state revenue department.
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Dec 23, 2011 19:10
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I've got a situation that is confusing me a bit and am hoping for some guidance. I had four sources of income this year: 1) Approx. $16,000 in wages from my university for four months of teaching. They withheld in taxes as if I was on track to make $64,000 for the year, which is to say somewhere around $4,000 of that $16,000. 2) $1,500 single-check payment for independent contracting work for an academic workbook I wrote. Nothing withheld and I made no quarterly estimated income payments on it. 3)$4,000 single-check payment from non-profit scholarship organization for archival research overseas as part of my PhD program. Nothing withheld, no estimated payments. Spent all of it on research expenses and living expenses while abroad at my research site and have receipts for it. 4) $12,500 in a single-check payment for a six-month academic fellowship to support research overseas and the writing up of that research back in the US. The fellowship is for 1 September 2011 to 31 January 2012. Spent about $9,000 on it on research and living expenses overseas and for purchasing a new laptop after mine was stolen overseas; have receipts for these expenses. Remaining $3000 on living expenses in the US while I wrote up my research. Nothing withheld, no quarterly payments. Do I need to declare #3 and #4 as fellowship income, or can I not declare it since it was intended for an spent on something necessary for my degree (archival research expenses)? If I do need to declare it, do I need to declare the full $12,500 of #4 or just 5/6ths of it? And what expenses can I deduct? The IRS webpage on fellowships and scholarships really seems intended for undergrads, not for PhD students for whom overseas archival research is literally a requirement for degree completion listed in our program handbook. If I don't need to declare #3 and #4, then I should get back most of that $4,000 that was withheld, right? If I do, will I be able to avoid a penalty for not paying quarterly taxes on my estimated income since I had that $4,000 withheld? striking-wolf fucked around with this message at 20:19 on Dec 23, 2011 |
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Dec 23, 2011 20:15
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striking-wolf posted:I've got a situation that is confusing me a bit and am hoping for some guidance. I had four sources of income this year: The $1500 from #2 will go on a Sch C, and I'm sure you can kind at least that much in expenses to offset it (e.g. that laptop). I'm not absolutely certain on the underpayment penalty. Probably not. Here's some light reading Pub 970
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Dec 24, 2011 01:17
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entris posted:Heh yeah I hear you. My client is so convinced that "any day now" the dinar is going to be revalued, she wants me to draft a letter explaining how to report the increase in value on her tax return - what sort of supporting documentation she wants, etc. Am I the only one missing the Google/Facebook spam about this? I've had two unrelated people inform me that they have made substantial dinar purchases and give me a very Unsolicited Emaily justification for doing so. I didn't ask either of them where they got the idea, but obviously it isn't a coincidence and there's some specific hustle going on that I'm not hip to.
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Dec 24, 2011 17:21
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juststraightbangin posted:Am I the only one missing the Google/Facebook spam about this? I've had two unrelated people inform me that they have made substantial dinar purchases and give me a very Unsolicited Emaily justification for doing so. I didn't ask either of them where they got the idea, but obviously it isn't a coincidence and there's some specific hustle going on that I'm not hip to. It's just been around, people hear about it and if they are convinced there is usually some air of "it'll happen soon" that makes them tell people. Ridiculous. I really want to start a service where I just talk people out of this.
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Dec 25, 2011 05:09
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I did a lot of independent contractor work this last year. It was my first year doing it through some online sites, and I doubt I made anymore than $2000 or so at it in addition to around $6000 gambling winnings. Did I screw the pooch by not making quarterly Independent Contractor payments or can I just do it all at year end?
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Dec 25, 2011 05:31
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Mattism posted:You'll probably need to report all of #3 and #4 as income, and because you're a cash basis tax payer, you'll report it all in 2011. Research, room and board, and travel aren't qualified educational expenses. Thanks!
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Dec 27, 2011 18:12
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quote:I did a lot of independent contractor work this last year. It was my first year doing it through some online sites, and I doubt I made anymore than $2000 or so at it in addition to around $6000 gambling winnings. You have to make the estimated tax payments quarterly over the year to avoid interest/penalty, so it's essentially too late at this point. However, if you are going to owe less than $1,000 in tax at the end of the year, you don't need to worry about anything. And remember to deduct your gambling losses, if you haven't.
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Dec 27, 2011 19:39
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Admiral101 posted:You have to make the estimated tax payments quarterly over the year to avoid interest/penalty, so it's essentially too late at this point. However, if you are going to owe less than $1,000 in tax at the end of the year, you don't need to worry about anything. If you don't itemize or have AGI phaseouts, you can try this. http://www.irs.gov/pub/irs-utl/am2008011.pdf
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Dec 27, 2011 19:51
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Oh hello, I didn't see you come in. While you're here, let me ask you my tax question. I have a full time job that is in no way related to photography. Back in 2009, I picked up a DSLR for some hobby photography. I also purchased some lenses in 2009 and 2010. Here in 2011, a friend gets me a gig at a night club taking pictures for pay. I had to fill out a W9 and I'm expecting a 1099 from them in January. The total is $2850 for the year. Also during 2011, pretty much for this gig, I sold my 2009 camera and lenses, and bought used, more expensive camera and lenses. I spent about $4400 on the "new" equipment for the gig, and selling my lenses/camera netted me about $4000 or so. I bought and sold everything through craigslist, so I don't really have receipts. I also have a few other things people have told me I could deduct, like mileage, it's 15 miles round trip and I worked 19 times throughout the year. Also I have two photo websites that I use for this gig hosting photos, about $175/year total. How do I treat the buying/selling of equipment as income or whatever and for deduction purposes? I really have no idea and have never not filed just a 1040 (or 1040ez). I usually use TurboTax online, so I'm a bit out of my league here with this stuff. I also understand you're not giving me any actual "real" tax advice, etc etc disclaimers etc etc. Here's the breakdown: Sold in 2011: Canon 7D - $1300 (purchased new in 2009 for $1500) Canon 70-200 2.8 IS - $1500 (purchased used for $1400 in 2010, yes I made a 'profit') Tamron 17-50 2.8 - $350 (purchased new for $440 in 2009) Sigma 30 1.4 - $350 (purchased new for $420 in 2010) Canon 430 EX II - $225 (purchased new in 2009 for $320) Purchased in 2011: (all used) Canon 5d2 - $2100 Canon 35 1.4 - $1200 Canon 24-105 4 - $850 Canon 530 EX II - $315 Total income: $2850.00 Somebody told me that I should include the sales of lenses as income, but I paid for them in the first place with my own cash, so I'm not sure how to do that.
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Dec 27, 2011 20:08
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How often is your photography equipment used for personal stuff versus how often is it used for this business? Are you treating this as a legitimate business (as in, are you actively looking for gigs, and do you have a profit motive for doing this?) or is this something you do as a hobby and the cash you earn is just incidental? I'm assuming that the camera/lenses you purchased see a lot of personal use, and you'll have to depreciate them accordingly. For example, the Cannon 52d camera that you purchased for $2100: If you used this personally 50% of the time, you would only be able to depreciate (write-off) up to $1050 of the cost. Admiral101 fucked around with this message at 22:12 on Dec 27, 2011 |
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Dec 27, 2011 21:22
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I'd say 50/50 is a pretty good split. I probably only pick up my camera once or twice a week, and one of those times is for working. I did work a couple of extra events for various other people as one off gigs this year, but was always paid in cash, but only a handful of times. Im not super active in drumming up new business, but I do do it from time to time. I definitely would not be at this club taking pics if I wasn't getting paid. I also do concert photography like once a month in exchange for free tickets / comped stuff but all of that is off the books / no cash. Is that something I should factor in? Basically I do club/concert stuff and then take pics of my cat/vacation stuff with this camera/lenses. milquetoast child fucked around with this message at 23:10 on Dec 27, 2011 |
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Dec 27, 2011 23:08
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quote:I also do concert photography like once a month in exchange for free tickets / comped stuff but all of that is off the books / no cash. Is that something I should factor in? Noncash compensation is taxable at fair market value. I'm sure there's going to be multiple opinions on your situation, but this is mine: 1. I would ignore the equipment sold in 2011. Most was sold at a loss, and since they were only used in 2009 and 2010 (non-business years) there's nothing that can be done with those losses. You did realize $100 gain on one camera, which is theoretically taxable, but there's nobody on the planet who is going to care. 2. If you do have profit motive with the club gigs, you should report that income on Schedule C. Note that you will have to pay self employment tax on any profits you realize. 3. I would treat the cameras you purchased in 2011 as 50/50 personal use and business use. The correct way of doing this is to capitalize the cameras and depreciate them (but since this is 50/50 personal/business, you will only be able to depreciate 50% of the cost - so for the previously mentioned example, you will depreciate $1050). You can then fully depreciate the asset with 179*, meaning all the expense will be recognized in 2011. Note that if you later decide to resell that asset, you will have to recapture some or possibly all of that depreciation. You can also simply expense all $1050, but that is frowned upon in most circles. 4. Your mileage to and from the gigs are deductible at the standard business mileage rate, which is $0.51 in 2011. So if you drove 100 miles, you can deduct $51 as an expense. Note that you can't expense vehicle fuel if you are doing this. 5. The websites would be deductible if it is part of the service you provide the club. This assumes you are not hosting personal photos on these websites. 6. Document everything. Keep receipts. 7. Last thing to note here is that, after you record all these expenses, you may come out with a loss. If you continue to come out with losses, the IRS will scrutinize your return, and may decide to declare the entire thing a hobby (this is bad). I think this covers most everything. It's not as complicated as I'm describing, I'm just attempting to be comprehensive. Admiral101 fucked around with this message at 16:53 on Dec 28, 2011 |
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Dec 27, 2011 23:56
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Standard mileage rate for 2011 is $.51 
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Dec 28, 2011 01:11
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This might stray in to "do my taxes for me" range, in which case, kindly tell me to find out on my own or whatever. So, no hard feelings there if that's the case. edit: nm, read the OP re: turbo tax. Well, I'll ask it more generalized. Are the assets start up expenses? Since they're equipment I mean. Then just write off 50% of them? milquetoast child fucked around with this message at 04:37 on Dec 28, 2011 |
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Dec 28, 2011 02:45
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quote:This might stray in to "do my taxes for me" range, in which case, kindly tell me to find out on my own or whatever. So, no hard feelings there if that's the case. Your situation is well within the capabilities of turbo tax. And the equipment should be capitalized as opposed to expensed. With 100% bonus depreciation, there really isn't a difference either way (which is why I said expensing is acceptable), but capitalizing and depreciating is correct (which is why I said expensing is frowned upon). Start up costs are an entirely different animal. That's essentially money you spent on the business before actually engaging in the business (eg: if you spent 10k on consultants to figure out how to properly organize and run your business, that would be capitalized and amortized over time). edit: I just realized the cameras you purchased in 2011 are used, and not eligible for bonus depreciation. You can still use 179, which is (for your purposes) identical and will permit you to depreciate the camera/lenses in one year. see: http://www.irs.gov/publications/p946/ch02.html I blame Furu for not correcting me. Admiral101 fucked around with this message at 16:55 on Dec 28, 2011 |
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Dec 28, 2011 13:29
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