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I hope this is the right thread My now wife purchased a condo September, 2009. She received the 8k first time home buyer credit where the home must remain her primary residence for 3 years. We are now in the process of buying a larger home together. The condo is now owned outright and we plan on keeping it to rent out. Not much of a problem to wait until the end of September to make sure the 3 years is up but we were just looking at the IRS site and it seems like we could move now and be clear. From the IRS "You must repay the full credit when: You sold your main home to a related person or entity Your home is destroyed, condemned or disposed of under threat of condemnation and you do not purchase or rebuild a replacement home within two years. You converted the entire home to a rental or business property. (We have no problem waiting to rent it) You converted the home to a vacation or second home. You no longer live in the home for the greater number of nights in a year." Any insight?
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Jul 29, 2012 23:00
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furushotakeru posted:Per diem rates are guidelines for companies to use when reimbursing their employees. I am pretty sure that you can't deduct per diem as an unreimbursed employee expense, As I read it "Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. The set amount varies depending on where and when you travel. In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. See the recordkeeping rules for travel in chapter 5. " Taken from IRS Pub 463 http://www.irs.gov/publications/p463/ch01.html As I read it instead of saving all the receipts for meals I eat during travel I can just take the M&IE rate.
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Jul 29, 2012 23:24
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Sound_man posted:As I read it Looks like I was mistaken, sorry. It specifically says you can use the SMA whether you are an employee or self-employed
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Jul 29, 2012 23:36
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I take it you don't have any truck drivers as clients then? Those guys regularly claim more than 17k a year in M&IE deductions, and have the documentation to back it up.
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Jul 30, 2012 11:34
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I was audited by State of GA for the 2007 tax year. They came to me with a bill for $2495. I didn't live in GA at all during 2007. After sending a copy of my SC tax return, they reduced the bill to $1187. The reason given for this is that I "did not relinquish [my] GA residency by establishing new legal residence in South Carolina." That's wrong as far as I can tell -- I paid utility bills, have bank statements with constant debit card usage in SC, paid rent, etc. in South Carolina. The only thing that really remained in Georgia is my driver's license. So is there room to argue here? From what I can tell GA is anal about residency and even today, they probably think I still live there.
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Jul 31, 2012 01:12
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zmcnulty posted:I was audited by State of GA for the 2007 tax year. They came to me with a bill for $2495. I didn't live in GA at all during 2007. After sending a copy of my SC tax return, they reduced the bill to $1187. Yes there is room to argue. It just may both take a while, and drive you crazy. I have argued with several surrounding states on behalf of clients and " won " given fcts similar to yours. Although a drivers lic. is very important, I do not believe it is the only thing that is given weight. Keep
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Jul 31, 2012 04:45
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furushotakeru thanks for doing my taxes last year. I'm definitely going to use your services again for next year but figured I'd ask this anyway since it's been bugging me. My employer (SF Bay Area) offers to pay for tuition up to a certain amount. The company requires that I pay for the class out of pocket, so I did that and once the class was over I submitted expenses. They're going to direct-deposit the $600 into my bank account. Would that $600 reimbursement from my company be considered taxable income?
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Jul 31, 2012 04:48
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As fas as I can tell, tuition expenses paid by the employer can be exempt up to a certain amount if it's for maintaining your current job position (I think it's $5,250 for 2012). It must also be part of a qualified or nondiscriminatory plan.quote:Educational assistance program. Demented Guy fucked around with this message at 05:14 on Jul 31, 2012 |
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Jul 31, 2012 05:04
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pancaek posted:furushotakeru thanks for doing my taxes last year. I'm definitely going to use your services again for next year but figured I'd ask this anyway since it's been bugging me. No as long as it is a direct reimbursement for an amount you paid.
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Jul 31, 2012 06:57
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zmcnulty posted:I was audited by State of GA for the 2007 tax year. They came to me with a bill for $2495. I didn't live in GA at all during 2007. After sending a copy of my SC tax return, they reduced the bill to $1187. There is always room to argue if you weren't actually a resident
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Jul 31, 2012 06:58
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quote:No as long as it is a direct reimbursement for an amount you paid. I don't want to be too OCD, but tuition is different than other reimbursements. He has to be reimbursed under a qualified employee program, and the reimbursement still might be taxable at the state level regardless. Also, pancaek, note that you can't claim the reimbursed tuition as a tax credit, in that case. edit: and this benefit may or may not be expiring.
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Jul 31, 2012 12:17
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furushotakeru posted:There is always room to argue if you weren't actually a resident The states are fishing for money. It's cheaper for them to send off form letters and make you fight it than to actually send out auditors.
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Jul 31, 2012 16:48
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Admiral101 posted:I don't want to be too OCD, but tuition is different than other reimbursements. He has to be reimbursed under a qualified employee program, and the reimbursement still might be taxable at the state level regardless. Probably good to be specific for general readers, thanks. I just happen to know who pancaek works for and that they do have a qualified plan.
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Jul 31, 2012 17:35
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My employer, a university, says any graduate course tuition assistance over $5250 is taxable and refers us to [url]http://www.irs.gov/pub/irs-pdf/p970.pdf[/url, so keep that in mind. They don't have any tax implications for undergraduate tuition benefits, FWIW. I haven't read the Pub to know if that is just something they fabricated or if it is in there. I had issues with the way they taxed dependent tuition so I suspect they might just be making part of it up, the IRS seemed to think so 
ntd fucked around with this message at 17:57 on Jul 31, 2012 |
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Jul 31, 2012 17:52
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 Thanks, and good to know! I'll definitely be using this program to my advantage again, then 8]
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Aug 1, 2012 06:05
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I pay over 500 a month for my employer's insurance plan. Right now the amount is an after-tax deduction, but would I be able to reduce my fed tax if I switched the health care to a pre-tax deduction?
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Aug 2, 2012 00:55
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Kinkajou posted:I pay over 500 a month for my employer's insurance plan. Right now the amount is an after-tax deduction, but would I be able to reduce my fed tax if I switched the health care to a pre-tax deduction? Yes, that is what pre tax means. Aso save on FICA and Medicare.
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Aug 2, 2012 01:58
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Got a query for you amazing people. Sorry if this has been covered before, but after reading about ninety pages of the backlog of this epic topic I fell asleep; no foolin'. Anyway: What are the limitations/methods for filing late? I know that I haven't filed for 2009, which shouldn't be an issue according to irs.gov, where I read that up to 3 years ago is usually fine. Then I got to thinking, why not go back and check out past years? I'm pretty sure I didn't bother to file a couple times as a teenager, so would those refunds still be available? I've kept all my W-2's/other relevant forms through the years, and have never owed, and, you know, I'm broke...so should I just go to a preparer and give it a shot? Is e-filing a possibility? Most interesting: Is there any easy way to look back at all the past years, to see if you've filed? An online tool or something? Will the IRS check it out for you if you call them? Feel free to mock the full breadth of my idiocy at your leisure, just please, grant me your knowledge as well.
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Aug 2, 2012 02:03
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Rvrnd. Riot posted:Got a query for you amazing people. Sorry if this has been covered before, but after reading about ninety pages of the backlog of this epic topic I fell asleep; no foolin'. Anyway: If you call the IRS they will tell you what hasn't been filed and can also provide you with a transcript showing what income was reported to them under your SSN. You only have three years from the due date of a return to file and claim a refund though, after that even if you file they will keep any refunds.
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Aug 2, 2012 03:22
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Great, thanks for the succinct answer. Guess I'll go for it for the '09 (since that due date is only at the 2 year mark) and forget the rest. Would I have to do it by paper/preparer or is e-filing still a possibility at this point?
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Aug 2, 2012 04:16
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Rvrnd. Riot posted:Great, thanks for the succinct answer. Guess I'll go for it for the '09 (since that due date is only at the 2 year mark) and forget the rest. Would I have to do it by paper/preparer or is e-filing still a possibility at this point? I believe that you would have to paper file your '09 return.
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Aug 2, 2012 05:12
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Rvrnd. Riot posted:Great, thanks for the succinct answer. Guess I'll go for it for the '09 (since that due date is only at the 2 year mark) and forget the rest. Would I have to do it by paper/preparer or is e-filing still a possibility at this point? You can generally only Efile the current year (ie 2011 right now). The IRS is gradually phasing in a modernized system that can handle multiple years but it isn't 100% yet. You can have someone prepare the returns for you or you can do it yourself. The major DIY sites all should have options for previous years if you poke around. furushotakeru fucked around with this message at 05:20 on Aug 2, 2012 |
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Aug 2, 2012 05:13
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furushotakeru posted:You can generally only Efile the current year (ie 2011 right now). The IRS is gradually phasing in a modernized system that can handle multiple years but it isn't 100% yet. You can also print off the PDF versions of the forms from online searches and send those in. You'll need to attach any form that shows withholdings (w-2 for example) to the front of the returns. They've also stopped doing direct deposit for late returns and will only mail you a check. If the IRS computers thought you would have owed money, they would be hassling you by now. Sounds like either no taxes due or refunds.
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Aug 2, 2012 16:39
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AbbiTheDog posted:Sounds like either no taxes due or refunds. That's always good news. Thanks for your help, experts! Cash money on the horizon...Ahoy!
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Aug 2, 2012 20:16
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I have an H&R Block question. Is their emerald card worth it? How much of my return do they take? How much is the actual visit, and can I just deduct the fee from my return? Do they mail it to you or do you get right there at the office? I know in the long run it makes more sense to submit them myself and get my full return, but I could use the money soon.
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Aug 3, 2012 00:31
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Your Gay Uncle posted:I have an H&R Block question. Is their emerald card worth it? How much of my return do they take? How much is the actual visit, and can I just deduct the fee from my return? Do they mail it to you or do you get right there at the office? I know in the long run it makes more sense to submit them myself and get my full return, but I could use the money soon. I dont know about their card. I do know that if you efile your own return, and submit your bank routing number etc. you should be able to get your refund pretty fast. Post busy season we have seen clients get refunds via direct deposit in as few as two weeks time ( sometimes even less ).
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Aug 3, 2012 01:20
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seymore posted:I dont know about their card. I do know that if you efile your own return, and submit your bank routing number etc. you should be able to get your refund pretty fast. Post busy season we have seen clients get refunds via direct deposit in as few as two weeks time ( sometimes even less ). Its for 2010, I was under then impression I missed the efile deadline. All the efiling programs I could find were only for 2011.
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Aug 3, 2012 01:50
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Your Gay Uncle posted:Its for 2010, I was under then impression I missed the efile deadline. All the efiling programs I could find were only for 2011. You had not mentioned that it was from a prior year. I would still paper file it.
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Aug 4, 2012 02:19
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seymore posted:You had not mentioned that it was from a prior year. I would still paper file it. You have to paper file late returns. And our clients that file late have been getting paper refund checks, even if we put down all direct deposit info. Expect 8-12 weeks from date returns are mailed to get your refunds.
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Aug 6, 2012 17:52
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How should I pay taxes on earnings from selling my programs on a website/selling stuff for a webapp? I live in California. I don't have any sort of business set up. Edit: I count as a dependent, how does that change things? Sinestro fucked around with this message at 02:17 on Aug 7, 2012 |
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Aug 7, 2012 00:16
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Sinestro posted:How should I pay taxes on earnings from selling my programs on a website/selling stuff for a webapp? I live in California. I don't have any sort of business set up. You will be reporting the income and any related expenses on Schedule C. Note that this income will also be subject to self employment tax.
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Aug 7, 2012 00:18
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Hi, I'll be relocating to the US in a month or so, and according to: http://www.irs.gov/publications/p521/ar02.html#en_US_2010_publink1000203497 the cost of my initial flight to the US is fully tax-deductible -- is that correct? How would a return ticket work into this? Can I claim 50% of it, or do I -have- to buy a one-way ticket? Thanks!
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Aug 7, 2012 00:32
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aleph1 posted:Hi, Yes, assuming you meet the time test, distance test (which you obviously do), and the work-related test. You cannot deduct it if you are being reimbursed for moving by your employer. You don't have to buy a one way ticket. Just claim 50% of the round trip and keep documentation of the expense. Is your relocation temporary?
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Aug 7, 2012 12:22
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Admiral101 posted:Yes, assuming you meet the time test, distance test (which you obviously do), and the work-related test. You cannot deduct it if you are being reimbursed for moving by your employer. My employer pays for the flight if it is booked through them, but if the cost of the flight is fully deductible I'd prefer to book it myself for flexibility (and upgradability, and the miles) quote:You don't have to buy a one way ticket. Just claim 50% of the round trip and keep documentation of the expense. Is your relocation temporary? It's a three year H1B, so I don't think it counts as temporary.
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Aug 7, 2012 15:00
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Sinestro posted:How should I pay taxes on earnings from selling my programs on a website/selling stuff for a webapp? I live in California. I don't have any sort of business set up. If you don't go to school full time, if you earn enough you might claim yourself and whomever was claiming you no longer gets to. This sounds creepy (sorry) but how old are you, and are you attending school full time? Living with your parents/grandparents?
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Aug 7, 2012 16:57
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Is my understanding of REIT dividends correct? - They are reported as ordinary income and you pay taxes on them at your ordinary income tax rate, not capital gains. Are there any other ramifications I should know?
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Aug 7, 2012 18:23
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Mammon Loves You posted:Is my understanding of REIT dividends correct? The 1099s are always wrong and amended ones show up in late March (once they finally figure out the 1250 recapture). Don't do your taxes right away.
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Aug 7, 2012 21:38
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AbbiTheDog posted:You have to paper file late returns. And our clients that file late have been getting paper refund checks, even if we put down all direct deposit info. Thanks for the answers. Although I did find a place "freetaxusa.com" that says I can efile my 2010 with them. Is this place legit?
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Aug 8, 2012 19:19
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Your Gay Uncle posted:Thanks for the answers. Although I did find a place "freetaxusa.com" that says I can efile my 2010 with them. Is this place legit? No. Late returns can't be efiled at this time. The site might be legit, but the claim is incorrect.
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Aug 8, 2012 20:18
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AbbiTheDog posted:No. Late returns can't be efiled at this time. Certain forms in 2010 supported modernized Efile and can in theory can still be efiled. I'm pretty sure Lacerte just didn't support mEf until the 2011 program. Our thousands of dollars each year at work!
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Aug 9, 2012 01:00
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