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MaximumBob posted:Uh, how do you figure? It says no deduction or credit in carrying on the trade or business. The trade or business is selling marijuana, which is prohibited by federal law. Abbi has it reversed. You're only permitted to reduce sales by cost of goods sold in the selling of illegal drugs (eg: the amount you paid for the drugs in the first place). Cost of goods sold is really a "negative income item" and not a deduction. Gross income (as far as taxes are concerned) is defined as sales minus cost of goods sold. The disallowance of deductions described in 280E apply to ordinary expenses that come after that. socketwrencher posted:I'm still confused about bonus depreciation and would really appreciate clarification as I've gotten a lot of conflicting information- thanks. Your understanding is correct.
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Mar 20, 2013 13:57
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Admiral101 posted:Abbi has it reversed. You're only permitted to reduce sales by cost of goods sold in the selling of illegal drugs (eg: the amount you paid for the drugs in the first place). No, you can't deduct the cost of your drugs, but the rest should be permitted. Was my understanding. Edit: wikipedia is probably not really something to hang your hat on. http://en.wikipedia.org/wiki/Public_Policy_Limitation_on_Deduction_for_Business_Expenses AbbiTheDog fucked around with this message at 16:12 on Mar 20, 2013 |
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Mar 20, 2013 16:08
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Admiral101 posted:
Depends on whether he falls under "luxury auto." Edit: There are a ton of ways to deduct a car. New, used, sedan, SUV, truck, make, model, lease, own - google it and yes, you're confused as heck. If you feel like listing the make, model, and year of the auto I can give you a clearer answer. AbbiTheDog fucked around with this message at 16:54 on Mar 20, 2013 |
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Mar 20, 2013 16:09
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Admiral101 posted:Abbi has it reversed. You're only permitted to reduce sales by cost of goods sold in the selling of illegal drugs (eg: the amount you paid for the drugs in the first place). Thank you Admiral101.
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Mar 20, 2013 17:34
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AbbiTheDog posted:Depends on whether he falls under "luxury auto." It will be a 2012 Toyota Prius. The standard model. I've been googling, trying to comprehend the IRS website, and have gotten feedback from friends who got info from their accountants/CPAs. Thanks so much.
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Mar 20, 2013 17:38
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socketwrencher posted:It will be a 2012 Toyota Prius. The standard model. I've been googling, trying to comprehend the IRS website, and have gotten feedback from friends who got info from their accountants/CPAs. Thanks so much. New/used?
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Mar 20, 2013 17:52
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I finished my taxes a month ago and I found out I owe $850. I was going to pay it next week but I just had a bunch of unplanned for expenses pop up for March and April that's going to stretch me a little thin. If I have to, I could still pay next week, but I'm going to have to cancel a vacation I have planned in May if I do so. I was just going to cancel the vacation until I googled around to see what it would cost if I didn't pay it on time. Is it true that I can file an extension and just pay the taxes along with the late fee on October 17th? I read that the late fee is .5% of what you owe. Does that mean that it's only going to cost me $4.25 a month or about $25 total extra in fees? If so I'd rather just pay the $4.25 a month so I don't have to cancel my vacation.
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Mar 20, 2013 18:02
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AbbiTheDog posted:New/used? The reason I went ahead and stated his "understanding was correct" was because he stated the vehicle was new in his OP. And given that the luxury auto limit is well over 8,000 if you take bonus, the luxury auto rules are pretty irrelevant in this situation.
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Mar 20, 2013 18:10
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So I have been trying to get help from NY State on the phone but apparently they have zero patience for someone with an obvious stutter and nobody will help me. They just bounce me around. I worked for Starbucks in 2012 all year. I worked for them as a CT resident from Jan-May, then transferred and worked in NY from May to the rest of the year. They sent me two W-2 forms, but the wages are not divided between states, they simply list my full income for the year on both forms. The CT one is blank aside from the state income tax. CT told me I have to get a partial residency form from NY and get an estimation on the wages I earned in each state. I called Starbucks before all of this happened and asked them and they said their forms are correct and they don't really have ability to help me. NY told me I have to do full residency under them and incorporate my entire wages for the year under NY, which means I would file partial residency under CT but declare no wages, which also seems like bullshit. I don't really know anyone to ask who would know and I can't nearly afford someone to file for me, so what is my process here?
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Mar 20, 2013 19:00
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Admiral101 posted:The reason I went ahead and stated his "understanding was correct" was because he stated the vehicle was new in his OP. And given that the luxury auto limit is well over 8,000 if you take bonus, the luxury auto rules are pretty irrelevant in this situation. Maybe. With the prius I might be inclined to go with cents per mile instead of the depreciation.
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Mar 20, 2013 19:05
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AbbiTheDog posted:New/used? New. But I am planning to finance it.
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Mar 20, 2013 19:19
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i am not so sure posted:So I have been trying to get help from NY State on the phone but apparently they have zero patience for someone with an obvious stutter and nobody will help me. They just bounce me around. Your story is not exactly clear. Where did you actually live and for how long? If you moved from or to NY during the year you'd have to fill out a partial year resident tax return. If you only lived in CT but started working in NY then you'll want to file a non resident tax return for NY.
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Mar 20, 2013 19:27
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Epi Lepi posted:Your story is not exactly clear. Where did you actually live and for how long? If you moved from or to NY during the year you'd have to fill out a partial year resident tax return. If you only lived in CT but started working in NY then you'll want to file a non resident tax return for NY. Worked in and lived in CT from January to May. Worked in and lived in NY from May to December. Both for the same company. I'm confused because the wages aren't divided by state in the W-2, they just sent me two forms and both of them have my yearly income. So I don't know how much I made in each state so I can file accordingly. It seems like what makes sense is filling out two partial resident forms for each state and getting on Starbucks to give me numbers on my wages in each state.
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Mar 20, 2013 20:13
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i am not so sure posted:Worked in and lived in CT from January to May. Worked in and lived in NY from May to December. Both for the same company. I'm confused because the wages aren't divided by state in the W-2, they just sent me two forms and both of them have my yearly income. So I don't know how much I made in each state so I can file accordingly. Yes, that is what you should do, at least on the NY side. Whoever told you to do full year in NY was wrong. Double check where it lists your withholding from each State, normally that's where your W-2 would show how much income you have in each state.
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Mar 20, 2013 21:44
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Haggins posted:I finished my taxes a month ago and I found out I owe $850. I was going to pay it next week but I just had a bunch of unplanned for expenses pop up for March and April that's going to stretch me a little thin. If I have to, I could still pay next week, but I'm going to have to cancel a vacation I have planned in May if I do so. Yeah, this is fine. If you were my client I'd have you pay just the tax due as close to 4/15 as you can, and if IRS feels like sending you a bill for interest and penalties then they can go right ahead (often they don't).
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Mar 20, 2013 23:41
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Epi Lepi posted:Yes, that is what you should do, at least on the NY side. Whoever told you to do full year in NY was wrong. Double check where it lists your withholding from each State, normally that's where your W-2 would show how much income you have in each state. This is what confuses me. My copy for CT filing is left blank except for my State Wages, which is my full year wage and the same number as NY's State Wages. Also there's the state income tax. That's it. No division of wages.
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Mar 21, 2013 01:49
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I am confused about where some of my income was earned. I worked in Massachusetts, then became unemployed. I then received Massachusetts unemployment benefits while I was a resident of another state. TurboTax is asking me to enter my Non-Massachusetts Portion of Income. This answer from furushotakeru had me thinking that all of it is Non-Massachusetts Income: furushotakeru posted:Your income is generally taxed based on where you lived when you earned/received it, not based on where the payments are coming from. But this is what the TurboTax help file says: TurboTax posted:The term "Massachusetts source income" is [income which is] taxable to a nonresident. [...] So when TurboTax asks me to enter the Non-MA Portion of my Unemployment Compensation, I am supposed to enter $0, correct? Or am I totally lost? Edit: I might have figured it out. Later on, it has me allocate my income based on when I lived in Massachusetts. So could someone please confirm that I should enter $0 in the section described above and then write the full amount of unemployment benefits under "non-resident" on the allocation screen? 
albedoa fucked around with this message at 03:45 on Mar 21, 2013 |
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Mar 21, 2013 03:16
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scribe jones posted:Yeah, this is fine. If you were my client I'd have you pay just the tax due as close to 4/15 as you can, and if IRS feels like sending you a bill for interest and penalties then they can go right ahead (often they don't). Sounds good to me.
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Mar 21, 2013 14:52
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i am not so sure posted:This is what confuses me. My copy for CT filing is left blank except for my State Wages, which is my full year wage and the same number as NY's State Wages. Also there's the state income tax. That's it. No division of wages. That is odd that they didn't split it up. I think the only thing you can do is harass Starbucks until they give you the information you need.
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Mar 21, 2013 16:54
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i am not so sure posted:This is what confuses me. My copy for CT filing is left blank except for my State Wages, which is my full year wage and the same number as NY's State Wages. Also there's the state income tax. That's it. No division of wages. Can't you get an old paystub that has this info? Every place I've worked shows year to date earnings/taxes/whatever on the stub.
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Mar 21, 2013 21:53
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So I walked into HR Block and although this woman seemed to not really be too helpful, they told me the same thing you guys did. That I need to get my wages divided. I just called Starbucks again and they said the forms they sent me are in exact accordance with federal and state law, and the information I have is correct. I'm going nuts here. For those who need clarification: From January-May 2012, I LIVED IN AND WORKED IN CONNECTICUT. From May-December 2012, I LIVED AND WORKED IN NEW YORK. Both for Starbucks. Starbucks sent me two W-2 forms, one for each state. Under the CT W-2 it's left blank except for my state income tax and for my State Wages, it lists my entire yearly income. If these forms are "correct" that means I'm filing under the notion that I made some $22K in BOTH CT AND NEW YORK, which would equate to $44K, which is wrong and I would owe a lot of tax money and probably be audited. All I want is to file as a partial resident in CT and NY, and say "I made this much in CT" and file that under CT and "I made this much in NY" and file that under NY. Is there something I'm missing? Why is Starbucks saying it breaks state tax rules to divide my wages for me? And if it does, how the hell do I file? Am I just supposed to essentially say I made all my wages in NY and file that I made nothing in CT?
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Mar 22, 2013 18:11
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i am not so sure posted:Am I just supposed to essentially say I made all my wages in NY and file that I made nothing in CT? What's the state rate difference?
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Mar 22, 2013 19:58
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AbbiTheDog posted:What's the state rate difference? Alright, I spoke on the phone with a CT tax representative and have it figured out now. All I need to know is exactly how to calculate total tax so I can get it credited. Brodeurs Nanny fucked around with this message at 20:21 on Mar 22, 2013 |
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Mar 22, 2013 20:03
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AbbiTheDog posted:Maybe. With the prius I might be inclined to go with cents per mile instead of the depreciation. Does this mean that if I take the bonus depreciation, I can't deduct mileage as an expense each year? Thanks.
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Mar 23, 2013 18:11
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So I'm paper filing 1040NREZ and I owe appoximately $700. What's the best way to get the money to the government? Send a check with the return or paying online by card?
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Mar 25, 2013 03:53
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I am currently "self employed" and make everything via 1099. I have my income totals etc so I am attempting to do the estimated tax payments via this form: http://www.irs.gov/pub/irs-pdf/f1040es.pdf I went through the worksheet (Lines 1-11) and got what I expected but the last line threw me off. It says quote:
Do I then go back to the beginning and add in the deduction and redo it using the reduced AGI in line 1a? EDIT: and since I work at home etc and have expenses, do I just do the estimated payments now and do all the deductions at the end of the year? Sylink fucked around with this message at 04:55 on Mar 25, 2013 |
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Mar 25, 2013 04:20
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So I am helping my buddy start a live music venue and I have a few questions. 1: Does anyone have any links to info specifically about live music venues? Just general info for venues. 2: The main question in the air is how do we pay taxes on shows? It is part of a record store, but all listed as one business. I was thinking that if we do a 50/50 door split, where we take the money, we count the whole amount taken as revenue then paying the band as an expense, leaving us to pay taxes on our 50%. Thanks for the help, its about the only thing we are scratching our heads on.
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Mar 25, 2013 06:05
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socketwrencher posted:Does this mean that if I take the bonus depreciation, I can't deduct mileage as an expense each year? Thanks. You cannot take bonus depreciation on a vehicle and deduct mileage on the same vehicle.
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Mar 25, 2013 19:25
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Admiral101 posted:You cannot take bonus depreciation on a vehicle and deduct mileage on the same vehicle. Thanks so much for the clarification.
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Mar 26, 2013 00:12
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Does Circular 230 lay out any clear-cut rules against murdering a client, or is it a grey area? Asking for a friend
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Mar 26, 2013 01:34
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I'm self-employed with no subcontractors or employees. I have an IRA, Roth IRA, and SEP IRA--all set up with TD Ameritrade. I contributed to my IRA for tax year 2012 the maximum amount during calendar year 2012. Last week, I also contributed to my SEP IRA account for tax year 2012, using the printed form provided by TDA to specify as much. This morning I got an email from TD Ameritrade saying the following: quote:Thank you for the recent deposit of $redacted into your TD Ameritrade Individual Retirement Account. Am I reading this correctly, that TD Ameritrade has credited my (rather large) contribution to tax year 2013, even though I used the form they provided to specify it as a 2012-year contribution? If so, I can't believe they would cash my check for that much money when it clearly was not my intent to contribute for 2013 yet. Is it going to be a pain in the rear end to fix this?
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Mar 26, 2013 05:39
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Hello tax-thread, I have a question. So, I am a bit confused about what requires you to pay quarterly-taxes. For 2013 I received a refund and did not owe any taxes. For 2014 I expect to earn a substantial amount from a self-employment job. Will this require me to pay quarterly taxes? I read that if you have no tax liability, I'm assuming this is me since I got a refund, I will not be forced to pay quarterly and will not incur and penalties at the end of the year?
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Mar 26, 2013 16:24
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I need a bit of clarification on the tax treatment of HSA contributions for a > 2% shareholder in an S-corp. Do they: 1. Get included as wages on the shareholder's W-2 (Box 12, code W or Box 14?), and then deducted on the shareholder's 1040. 2. Get treated as distributions on the shareholder's K-1, and then deducted on the shareholder's 1040. Edit - Extra bonus question. My company was originally formed as an LLC in CA but I recently moved to Seattle and I suppose it's in my best interest to move the company over to WA. Should I be looking for a CPA to help with this process, or is a (tax?) attorney better suited to the task? NoDamage fucked around with this message at 00:53 on Mar 28, 2013 |
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Mar 27, 2013 21:33
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Here is my situation: I am a US citizen living in Canada as a Permanent Resident. I am married to a Canadian and I have lived here for one year. I am looking to start publishing ebooks on Amazon (and a few other places, eventually) but I'm not 100% sure how to go about the tax situation. I have determined that I need to fill out a W-9 instead of a W-8BEN as instructed here: https://kdp.amazon.com/self-publishing/help?topicId=A1VDYJ32T5D3U4 (At least I think that's the case.) But overall I'm still just very confused about what will be expected of me. Am I going to end up paying taxes to the US and Canada if I end up making over a certain amount? I thought the tax treaty thing would prevent that (up to the 95k or whatever it is) but a few things I read on the IRS' website led me to believe that I have to pay something to the US no matter what if I'm considered self-employed. Additionally, I am uncertain what sort of TIN to use for all of this, seeing as I have a SSN. So, any help untangling all of this would be greatly appreciated. Bonus question: I made zero dollars last year and my husband and I have filed taxes here in Canada with me as his dependent. That being said, do I need to file in the US at all, seeing as my own personal income is still at zero?
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Mar 29, 2013 19:26
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I mailed my partial year resident return to New York about 7 weeks ago after having it rejected electronically with no reason given, despite passing H&R Blocks checks. I haven't received anything, and the online return status has no record of my return. How long should I wait until I assume they lost it (I know it was delivered, sent it certified)?
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Mar 29, 2013 21:32
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Jealous Cow posted:I mailed my partial year resident return to New York about 7 weeks ago after having it rejected electronically with no reason given, despite passing H&R Blocks checks. I haven't received anything, and the online return status has no record of my return. There's no reason not to call tomorrow or Monday. It's been 7 weeks, it can't hurt to try to get some peace of mind. Try this number, 518-457-5181, and try to do it in the morning so you spend less time on hold.
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Mar 29, 2013 22:01
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Dixie Strauss posted:Here is my situation: File a 1040 with a form 2555 attached, if you meet the criteria, (sounds like you should) you can take the exclusion on your foreign earned income. Up to 95K as you said. In the future that will hopefully be helpful. The main exception is if the income is sourced in the US (the Amazon stuff) in which case it is taxed and not excluded. That linked site is for unamerican taxpayers who are selling on Amazon because they need to pay taxes on their US income and need an ITIN to do so. Since you're an American, you'll include the Amazon income on your 1040.
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Mar 30, 2013 06:29
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sullat posted:The main exception is if the income is sourced in the US (the Amazon stuff) in which case it is taxed and not excluded. quote:Source of Earned Income
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Mar 30, 2013 08:27
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shodanjr_gr posted:So I'm paper filing 1040NREZ and I owe appoximately $700. What's the best way to get the money to the government? Send a check with the return or paying online by card? I'm reasking this since I'll be paper-filing next week. I also noticed that in the instructions for 1040NRE, they state that you should not file it if you have any taxable interest to report. I seriously have to complete a full 1040NR for the $20 worth fo interest that I got on my bank account? e: scratch this, it wasn't that hard... shodanjr_gr fucked around with this message at 22:50 on Mar 30, 2013 |
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Mar 30, 2013 22:25
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Is it permissible to deduct the travel costs for me to fly to where my rental property is from where I live (Europe) in order to deal with certain things in person and to look at more property?
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Mar 31, 2013 19:48
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