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ThirdPartyView posted:You also need to know the cost of goods sold for the stuff sold. That would be the aforementioned "merchandise"
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Jan 9, 2015 20:01
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shodanjr_gr posted:Non-resident alien taxation question. PatMarshall posted:No, just file a regular 1040 this year. Very late follow up on this. Can i just go ahead and e-file this year through turbo-tax or do I have to file a paper return, given that I was filling non-resident returns in the past?
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Jan 9, 2015 23:33
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I'm planning to get married this year. My fiance currently receives a PPACA subsidy on her insurance. She will probably be switching to my employer based plan. Is there any way to figure out how this will affect our taxes? I assume that we would have to give the subsidy back, given my higher income.
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Jan 10, 2015 15:02
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shodanjr_gr posted:Very late follow up on this. Can i just go ahead and e-file this year through turbo-tax or do I have to file a paper return, given that I was filling non-resident returns in the past? AFAIK NR returns are not Efilable. If you are filing a regular 1040 this year however, you can Efile the return just like anyone else.
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Jan 12, 2015 09:55
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Leviathan Song posted:I'm planning to get married this year. My fiance currently receives a PPACA subsidy on her insurance. She will probably be switching to my employer based plan. Is there any way to figure out how this will affect our taxes? I assume that we would have to give the subsidy back, given my higher income. She can always ask the exchange to stop giving her the subsidy so there will be less payback later. Same money either way however, either pay more premiums now or repay more later.
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Jan 12, 2015 09:56
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Considering selling a rental property next tax year that has been owned for ~2 years. It has substantial previously disallowed passive losses (from depreciation). I see per the IRS that "Generally, you may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity." Please confirm- in the year we sell the rental property, we can now deduct these previously disallowed passive losses. My question is, this passive losses are now going to be deducted against what income? Ordinary income? The reason for the question is this.. the longer the property is held, the more depreciation recapture we will be subject to when selling the property. This will be taxed against us at a 25% rate. But, if the aforementioned previously disallowed passive losses are deductible against ordinary income, which is taxed at a higher rate than 25%, I believe it would be beneficial from a tax liability perspective to holder it longer, because the deduction offsets income at a higher tax rate. Am I missing anything?
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Jan 13, 2015 08:03
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furushotakeru posted:AFAIK NR returns are not Efilable. If you are filing a regular 1040 this year however, you can Efile the return just like anyone else. Yeah I've been in the US long enough that now I gotta file as resident. I was just wondering if I had to go about it in a special way since I filed a NR return last year.
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Jan 13, 2015 08:09
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I think someone here might be able to answer this question. So my mother is giving me a check for 25k to pay off a bunch of my lovely high interest private student loans and then I will be paying her back at a more reasonable rate. I know that if you make a deposit of more than (I think) 10 grand that you have to fill out some kind of paper work and claim it on my taxes for 2015. I googled it and thats what I have been led to believe. I just wanted to confirm this because if thats the case then I will just pay the loans directly from her account rather than transferring it to mine first. Transferring it to mine first was going to be much less hassle but I obviously dont want to pay a bunch of taxes on it just to save a little time.
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Jan 13, 2015 15:13
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WinnebagoWarrior posted:
Yes. quote:and claim it on my taxes for 2015. Only if you have to, the deposit dosen't automatically make the money income. A lot of people have this misconception which leads them to breaking the law (structuring) for no reason. Edit: This is also only for cash (and other things like cashier check or money orders). Personal checks usually would not apply. LorneReams fucked around with this message at 15:59 on Jan 13, 2015 |
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Jan 13, 2015 15:41
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WinnebagoWarrior posted:I think someone here might be able to answer this question.
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Jan 13, 2015 16:30
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LorneReams posted:Yes. Thanks a lot. How would I know if personal checks would apply in my case specifically? I remember reading that personal checks dont count as cash so they didnt apply but I didnt really understand that. But if we are pretty sure that I wont pay taxes on it then I will just put it my account because it will have me a good bit of hassle.
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Jan 13, 2015 16:45
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SiGmA_X posted:She will have to pay gift tax on balances over 14k gifted in a single tax year. You will not. She can include this in her lifetime estate limit and not pay gift tax, this will require a form. If your mom is married, both partners can each donate 14k to you tax free. If you're married, that doubles as your partner can also receive 14k/parent/gift tax free. I believe she needs to file a form 709 if the gift is over 14k in a single year. Why is there any gift tax involved in this personal loan?
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Jan 13, 2015 17:00
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WinnebagoWarrior posted:Thanks a lot. How would I know if personal checks would apply in my case specifically? I remember reading that personal checks dont count as cash so they didnt apply but I didnt really understand that. But if we are pretty sure that I wont pay taxes on it then I will just put it my account because it will have me a good bit of hassle. DNova posted:Why is there any gift tax involved in this personal loan?
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Jan 13, 2015 17:16
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Fantastic, thanks so much for the clarification.
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Jan 13, 2015 17:43
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Nifty posted:Considering selling a rental property next tax year that has been owned for ~2 years. It has substantial previously disallowed passive losses (from depreciation). I see per the IRS that "Generally, you may deduct in full any previously disallowed passive activity loss in the year you dispose of your entire interest in the activity." You have an entire disposition of a passive activity, which will free up your suspended losses. Form 8582 is what you're looking for. This then flushes the losses out on schedule E, page 1, as ordinary (which is where it would have logically been had you not been limited in prior years). Depreciation recapture is done on page 2 of Form 4797 in the Section 1250 recapture section, which is then taken to schedule D, pages 1 and 2, and in the tax calculation worksheet.
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Jan 13, 2015 19:41
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I started working as an independent contractor and first got paid in September, and I've never filed for taxes for anything other than normal w-2 style employment. Do I need to pay quarterly income tax by January 15 for those few months, or do I wait until I get a 1099 form and then file in April like normal? Also, can this vary from state to state? A friend told me that it's different in Ohio, but I haven't been able to confirm this anywhere.
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Jan 14, 2015 19:07
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AbbiTheDog posted:You have an entire disposition of a passive activity, which will free up your suspended losses. Form 8582 is what you're looking for. He should sell it now before he has to complete like 5 forms 3115 
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Jan 15, 2015 01:12
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MY ABACUS! posted:I started working as an independent contractor and first got paid in September, and I've never filed for taxes for anything other than normal w-2 style employment. Do I need to pay quarterly income tax by January 15 for those few months, or do I wait until I get a 1099 form and then file in April like normal? Whether you need to make estimated payments depends on your other income and withholding. You are supposed to pay in the lesser of 90% of this year or 100% of last year's tax, or pay in enough to owe less than $1,000. If your other withholding is sufficient to cover this safe harbor, you don't have to make an estimated payment and can just pay what is due in April. Most states have a similar rule, but in OH at least you also have to worry about local income tax in most cities AFAIK.
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Jan 15, 2015 01:14
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I didn't see this mentioned anywhere in the OP, maybe it isn't something anyone else struggles with and I am just a dumbass. My wife recently started working, and so I wanted to make sure we were both doing our W-4s correctly. I work full time, she is now working part time (10-15 hours a week) and we have two kids, but no property and we have always taken the standard deduction. I understand that its best for all the withholding to happen on my W-4 (because its the higher income) and for her to put 0, but I am getting kind of befuddled about how many that should be. I used the multiple earner worksheet that comes with the W-4, and it came out to 6. Then I used the IRS W-4 calculator on their website, and it came out to 2. Then I used the ADP one, and it came out to 7. Many of these calculators ask information that isn't listed on the form, but then they're not even consistent across each other? I don't know if this is something people here can/will help with. If not, is there somewhere I can go to get help? Would a tax preparer even help with this, or is it too trivial for them to bother?
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Jan 15, 2015 04:51
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furushotakeru posted:He should sell it now before he has to complete like 5 forms 3115 Looking at 3115, why would I need to fill this out? I assume because of something about my depreciation, but why would I change my depreciation method on this rental house?
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Jan 15, 2015 05:05
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I've been working overseas for an US company since September 2013, and I qualify for the Foreign Earned Income Exclusion via the Physical Presence test (more than 330 days out of the US). My entire salary (it's well under the $99,200 exclusion max) is excluded, so I'm getting all of my taxes back; however, does this mean I couldn't contribute to a Roth IRA for 2014? I made a full $5,500 contribution, but TurboTax flagged it due to not having taxable income.
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Jan 15, 2015 13:01
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Nifty posted:Looking at 3115, why would I need to fill this out? I assume because of something about my depreciation, but why would I change my depreciation method on this rental house? Because of the repair (Treasury) Regulations that just went into effect, which require a bunch of Form 3115s to be filed in order to be in compliance. surrender posted:I've been working overseas for an US company since September 2013, and I qualify for the Foreign Earned Income Exclusion via the Physical Presence test (more than 330 days out of the US). My entire salary (it's well under the $99,200 exclusion max) is excluded, so I'm getting all of my taxes back; however, does this mean I couldn't contribute to a Roth IRA for 2014? I made a full $5,500 contribution, but TurboTax flagged it due to not having taxable income. The rule for both Traditional and Roth IRAs is that you're only allowed to take the lesser of $5,500 (or $6,500 if 50+) or your taxable compensation (wages, self-employment and alimony only, pretty much) for the year combined for both (IE: if you're allowed up to $5,500 and contribute $3,000 into a Traditional, you can only contribute $2,500 into a Roth), so if the salary is the only compensation for IRA purposes, it means you're disallowed from contributing into either a Traditional or a Roth IRA this year, as Foreign Earned Income Exclusion income is not taxable compensation for purposes of the contribution limit (you will get hit with a 6% excise tax (per annum, I believe) if you contribute disallowed amounts and don't withdraw them by 4/15 of this year) since it's not taxable compensation for purposes of the contribution rules. Horseshoe theory fucked around with this message at 13:23 on Jan 15, 2015 |
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Jan 15, 2015 13:12
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ThirdPartyView posted:Because of the repair (Treasury) Regulations that just went into effect, which require a bunch of Form 3115s to be filed in order to be in compliance. Got it, thanks! Thankfully, I'm already saving $1,000 per month through a 401(k), so I'm not neglecting my retirement savings. I guess I'll have to withdraw my contribution and put it into a taxable account.
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Jan 15, 2015 13:18
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surrender posted:I've been working overseas for an US company since September 2013, and I qualify for the Foreign Earned Income Exclusion via the Physical Presence test (more than 330 days out of the US). My entire salary (it's well under the $99,200 exclusion max) is excluded, so I'm getting all of my taxes back; however, does this mean I couldn't contribute to a Roth IRA for 2014? I made a full $5,500 contribution, but TurboTax flagged it due to not having taxable income. Is the tax rate in your country of residence equal to or higher than what you would be paying in the US? If so, just use foreign tax credits to offset your tax burden and then you are free to contribute to a Roth IRA.
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Jan 15, 2015 14:47
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Gold and a Pager posted:Is the tax rate in your country of residence equal to or higher than what you would be paying in the US? If so, just use foreign tax credits to offset your tax burden and then you are free to contribute to a Roth IRA. I'm not paying taxes in my country of residence - I'm working for a contractor (a public university) on a US government-funded aid project in partnership with the local government, so I'm exempt.
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Jan 15, 2015 17:47
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furushotakeru posted:He should sell it now before he has to complete like 5 forms 3115 Come on, it's only like 8 pages of fun. Edit: And your clients aren't willing to pay you the fees to prepare this return? AbbiTheDog fucked around with this message at 18:18 on Jan 15, 2015 |
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Jan 15, 2015 17:53
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ThirdPartyView posted:Because of the repair (Treasury) Regulations that just went into effect, which require a bunch of Form 3115s to be filed in order to be in compliance. My job has been about 75% dealing with repair regs or the last couple of years. The treasury regs (and the additional, additional, new rev procs that also came out for 14) are ridiculously onerous for small companies. Especially for small time property owners. I honestly sincerely believe that there will be some additional guidance for businesses with limited dollars in fixed assets that will remove the need for a guy with a handful of investment properties to have to blow 15k getting his returns prepped. The IRS has been pretty good over the last year of bringing about bright line tests and more guidance, so this isn't some unfounded optimism.
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Jan 15, 2015 19:28
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I was slow in filing my 2013 taxes and didn't get them submitted until mid December. I had filed my 2012 taxes on time that year and owed some money, but did some incorrect math and set in a check for less than what the IRS said I owed. I promptly forgot about paying off the difference until now (it's not very much). However, I haven't seen my 2013 return yet, and it's been about a month. So I guess I have two questions. Is the reason my return hasn't shown up yet is because I owe them some money and that needs to get dealt with? And can I file my 2014 taxes before I get the 2013 return back, or do I have to wait for that to get all straightened out?
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Jan 15, 2015 20:57
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Bloody Queef posted:The IRS has been pretty good over the last year of bringing about bright line tests and more guidance, so this isn't some unfounded optimism. The IRS has skilled tax lawyers draw up their regs and guidance, but the skilled tax lawyers don't, you know, actually prepare returns. Or worry about the "small guys." As Furu mentioned, this is going to be a clusterf*ck this year. Combine that with the ACA rollout and budget cuts and the IRS is turning into a freakin' mess.
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Jan 15, 2015 21:26
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AbbiTheDog posted:The IRS has skilled tax lawyers draw up their regs and guidance, but the skilled tax lawyers don't, you know, actually prepare returns. Or worry about the "small guys." Woo! Who's ready for filing season?!
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Jan 15, 2015 21:41
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AbbiTheDog posted:The IRS has skilled tax lawyers draw up their regs and guidance, but the skilled tax lawyers don't, you know, actually prepare returns. Or worry about the "small guys." I 100% agree that THIS year will be a clusterfuck, it was last year too, and the year before. This has been my life. It was way worse when several of my large clients were coming into compliance with the Regs early and then they changed the guidance several times mid project. Keep in mind that the guidance docs that were put out were due to tremendous amounts of feedback from large public accounting firms and large businesses. I just imagine the complete lack of compliance for small businesses and small time tax preparers is going to come up and rather than gently caress everyone's poo poo up, they'll expand the De Minimus rule back to what it was for the second set of guidance. E: Phone posting, this poo poo is barely readable
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Jan 15, 2015 23:22
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Couple questions: 1. My mom died in June 2014, and while the estate is still being settled, I received a portion of one of her IRAs in August as a beneficiary. Do I report this amount as income or is it considered a tax-free distribution of her estate? It was labeled as an "early distribution" from the financial firm that issued the check, but I had already turned 59.5 before the distro was made. 2. I moved to IL in the second part of 2014. All of my current income during 2014 (aside from my mom's IRA distro) was generated by CA clients (through my sole proprietorship, sched. C) and a CA family business in which I'm a partner (k-1 income). My net income will likely fall below the threshold at which I'd owe CA taxes (unless that changes because I'm now a non-resident; will it?). Should I pay IL estimated taxes for 2014? (IL levies income tax on dollar-one of income, instead of being progressively levied like CA.) If the answer is yes, where do I find an estimated tax voucher for IL for 2014? The IL dept. of revenue says the form isn't available yet and is coming soon, when technically the ES forms should have been available for 4/15/14 estimated tax payments so I'm flummoxed on this.
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Jan 16, 2015 03:36
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What version of TurboTax do I need to claim the Saver's Credit?
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Jan 18, 2015 06:29
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Been a full-time Hawaii resident beginning in 2012. In 2013 I received a modest lawsuit settlement (not life-changing, but nice to have). I never did get a 1099-MISC for it though, and naturally being scared of the wrath of the IRS I included the income in my 1040 that year. Thanks to some education credits and whatnot I ended up owing less than $50. However, this led me to not knowing what the hell to do with HI (and I may have not filed a 2013 return for HI) and whether that settlement was taxable by HI or the feds at all in the first place. So, what kind of situation do I find myself in? At least for 2014, the good news is I'm due a decent federal and state refund that will probably cover me if I hosed it up last year with HI.
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Jan 18, 2015 12:25
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paperwind posted:Been a full-time Hawaii resident beginning in 2012. In 2013 I received a modest lawsuit settlement (not life-changing, but nice to have). I never did get a 1099-MISC for it though, and naturally being scared of the wrath of the IRS I included the income in my 1040 that year. Thanks to some education credits and whatnot I ended up owing less than $50. However, this led me to not knowing what the hell to do with HI (and I may have not filed a 2013 return for HI) and whether that settlement was taxable by HI or the feds at all in the first place. So, what kind of situation do I find myself in? Well.... what was the lawsuit for?
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Jan 19, 2015 02:20
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In the second half of this year I took a job overseas. I'm researching, and I know I don't qualify for the overseas exemption, but I get the 2 month extension and possibly the tax credit. I've got a few questions about taxes as this is my first time being overseas and what not. First, can I claim my flight over here, and hotel costs, as an itemized deduction? These were uncompensated by the company I work for, and will not be reimbursed. What about the purchase of a scooter/motorbike I use as primary transportation? (I made less than $15k this past year so meeting 2% AGI is fairly easy). Second, what sorts of forms do I fill out? Am I eligible for 1040A, or do I need to stick to 1040? I do not have a bank account or other foreign assets, I do not own any real property, and even if I did, I'd be below the thresholds for FATCA and FBAR. Third, I did not have health insurance coverage for part of the year until I got this job overseas. Will I be hit with the full brunt of the Obamacare fine, or will it be partially reduced since I was covered for part of the year? I understand there is an exemption/penalty form to fill out in addition to my returns. Fourth, I prefer to do taxes myself, but I'm unsure which tax software would be best (I've used Turbo Tax in the past). Or is this one of those things where I'm better off just hiring a pro out the gate? Also, the currency here lost value against the dollar in the short time I've been here; does that impact my return/AGI in any way? Or does that only apply if I have holdings in a bank?
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Jan 19, 2015 07:42
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I bought my first house ( ) last July.While I filed my taxes on my own when I was younger, in the last decade or so all I've used is TurboTax. I'm salaried at my position making right about $50k/yr gross and have no major investments or assets other than my car (which I own) and the house. Not married yet but planning on getting engaged this year. I'm also enrolled in my home state's "mortgage certificate of credit" (MCC) program which is designed to assist first-time homebuyers. Is TurboTax still a good option now that I'm a homeowner, given those details? I'm a little scared at how buying a home and being enrolled in the MCC program is going to affect how I file my taxes this year.
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Jan 19, 2015 18:32
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I have a deferred interest debenture (Exxon Shipping bond, later renamed a SeaRiver Maritime Guaranteed Deferred Interest Debenture) from the '80s bought in my name. It didn't generate OID; instead, taxes on all interest is due at maturity in 2012. I'm working on amending my 2012 taxes to account for it, but there's a note from the issuer, Deutsche Bank Trust Company Americas, that "Holders that purchased the debentures prior to the date when the market discount rules became applicable to these debentures - i.e., prior to May 1, 1993 - may also realize a capital gain or loss in addition to the reportable interest income." The only example of a tax scenario on the form is for someone who bought the thing in 2009, but I've had mine since 1989. I can't tell at all if the capital gain they're talking about applies to me, or if it would only apply had I sold the bond to someone else. Anyone have any idea on this? Edit: When my brother cashed his in and amended his return, the IRS seemed to be ok with him simply amending 2012 with the simple interest the way I was hoping. SpelledBackwards fucked around with this message at 04:22 on Jan 20, 2015 |
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Jan 20, 2015 04:18
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Wife just started a job where she has to occasionally do customer visits. If her job is 5 miles away, but this morning she had to go to a customer 10 miles away and then 5 miles back to work, can she track all 15 of those miles as a deduction? Or is it just 10(subtract the initial 5 to get to work)
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Jan 20, 2015 17:20
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If there's a set office location, then mileage from home to office and back is not deductible, but office to customer and back is.
Happiness Commando fucked around with this message at 18:41 on Jan 20, 2015 |
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Jan 20, 2015 18:37
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