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Yes the IRS sucks donkey balls and even if there's not issues you could be just unlucky and have it take weeks for your return to arrive.
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Jul 6, 2022 19:20
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My girlfriend just exercised some ISOs for a non-public company. (She figured that the shares might eventually be worth something, and the strike price was low enough that she was comfortable taking the risk that they won't.) If I understand what I'm reading right, the difference between the strike price and their valuation factors into her AMT calculation, but what's the appropriate valuation to use? Is that something her employer should tell her?
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Jul 6, 2022 19:44
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Epi Lepi posted:Yes the IRS sucks donkey balls and even if there's not issues you could be just unlucky and have it take weeks for your return to arrive. Thanks yea it’s closer to months at this point, just says processing on the where’s my refund thing. There is a disclaimer that I can see that they’re bein slow
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Jul 6, 2022 20:10
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I'm not sure if this is the right thread, but I'll have a decent chunk of cash in my LLC's bank account soon. I have a consulting business. Can I use that cash to buy real estate (versus distribute to myself personally) and push the tax hit down the road?
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Jul 8, 2022 15:02
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Leo posted:I'm not sure if this is the right thread, but I'll have a decent chunk of cash in my LLC's bank account soon. I have a consulting business. Can I use that cash to buy real estate (versus distribute to myself personally) and push the tax hit down the road? Your LLC can buy real estate for LLC business use. You can have a distribution or dividend or whatever and buy real estate for personal use. You cannot comingle uses or you should just dissolve your llc and go with Leo yolo dba my dumb business.
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Jul 8, 2022 16:38
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A single member LLC is disregarded for tax purposes, so you are generally treated as earning the income directly, so you should report on your 1040 regardless of whether there is a distribution. In any case, buying real estate won't relieve you of tax on your income. While it could throw off depreciation deductions, you are generally limited by the passive activity loss rules. Hawk's advice is more legal than tax, but very good advice all the same, you want to maintain all corporate formalities and treat the LLC as a separate entity or your creditors may successfully pierce the corporate veil and the LLC may not provide liability limitation in the way it is intended to.
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Jul 8, 2022 17:12
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PatMarshall posted:Hawk's advice is more legal than tax, but very good advice all the same, you want to maintain all corporate formalities and treat the LLC as a separate entity or your creditors may successfully pierce the corporate veil and the LLC may not provide liability limitation in the way it is intended to. And it's worth noting that one creditor that can do that is the IRS. So if you push your luck far enough, Hawk's comments could be both legal and tax related!
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Jul 8, 2022 17:43
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raminasi posted:My girlfriend just exercised some ISOs for a non-public company. (She figured that the shares might eventually be worth something, and the strike price was low enough that she was comfortable taking the risk that they won't.) If I understand what I'm reading right, the difference between the strike price and their valuation factors into her AMT calculation, but what's the appropriate valuation to use? Is that something her employer should tell her? I forgot to say - her company will give her the docs. She should ask when to expect it but I believe I got mine around tax time. And yes, the upside if any from Strike to FMV is income on the AMT form line 2a-i. She should reserve money to pay this amount when taxes come due. If she is clever she will run this number and not exercise more than causes her to owe taxes over time. If she doesn't owe AMT in future years you can sometimes(?) claw some(?) of it back. I don't know my accountant handled it for me. If she was really clever she wouldn't exercise shares in a non-public company with no ability to further liquidate them. 
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Jul 8, 2022 18:39
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H110Hawk posted:I forgot to say - her company will give her the docs. She should ask when to expect it but I believe I got mine around tax time. And yes, the upside if any from Strike to FMV is income on the AMT form line 2a-i. She should reserve money to pay this amount when taxes come due. If she is clever she will run this number and not exercise more than causes her to owe taxes over time. Ok, thanks. If she ends up paying AMT, could this cause double taxation because the cost basis didn’t actually move up? (I.e. she pays AMT on the upside now and then capital gains taxes if and when she eventually sells?) Is that the clawback you’re referring to?
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Jul 8, 2022 18:50
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raminasi posted:Ok, thanks. If she ends up paying AMT, could this cause double taxation because the cost basis didn’t actually move up? (I.e. she pays AMT on the upside now and then capital gains taxes if and when she eventually sells?) Is that the clawback you’re referring to? No, there is some other "so you owed AMT once but not in future years" clawback. Or there was. As for selling ISOs at a future date I'll let you know if my stock I got as ISO's are ever able to be sold. I exercised them... 8? years ago.
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Jul 8, 2022 19:01
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PatMarshall posted:A single member LLC is disregarded for tax purposes, so you are generally treated as earning the income directly, so you should report on your 1040 regardless of whether there is a distribution. In any case, buying real estate won't relieve you of tax on your income. While it could throw off depreciation deductions, you are generally limited by the passive activity loss rules. Hawk's advice is more legal than tax, but very good advice all the same, you want to maintain all corporate formalities and treat the LLC as a separate entity or your creditors may successfully pierce the corporate veil and the LLC may not provide liability limitation in the way it is intended to. He didn’t mention that he was the member it could be another entity that he owns which could change the tax treatment, disregarding any elections that were made. Maybe the LLC is owned by his solo 401k.
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Jul 9, 2022 02:41
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Elephanthead posted:He didn’t mention that he was the member it could be another entity that he owns which could change the tax treatment, disregarding any elections that were made. Maybe the LLC is owned by his solo 401k. 
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Jul 10, 2022 03:31
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Say I have a friend who's work tossed out a bunch of old TVs when they were upgraded, and she rescued them from the trash. Can she donate them to Goodwill and see a reduction in taxes owed, or does her coming into possession of them count as income and completely cancel out any write-off she could claim for the fair-market value?
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Jul 18, 2022 08:51
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Zero VGS posted:Say I have a friend who's work tossed out a bunch of old TVs when they were upgraded, and she rescued them from the trash. Can she donate them to Goodwill and see a reduction in taxes owed, or does her coming into possession of them count as income and completely cancel out any write-off she could claim for the fair-market value? Goodwill doesn't take CRTs anymore. Your friend would have to itemize to claim non-cash charitable donations, and then it would reduce her taxable income, not her taxes owed. And it would be for the amount Goodwill would sell the TVs for, not the price they would be if purchased new.
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Jul 18, 2022 09:58
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BonerGhost posted:Goodwill doesn't take CRTs anymore. Your friend would have to itemize to claim non-cash charitable donations, and then it would reduce her taxable income, not her taxes owed. And it would be for the amount Goodwill would sell the TVs for, not the price they would be if purchased new. I understand those bits, but I'm asking if her grabbing some flatscreens from the trash would increase her taxable income by roughly the amount Goodwill would sell them for, before the act of donation cancels that out. I would assume if she itemizes say a dozen donated TVs, the IRS would be like, "well, that valuable stuff that you gained right before you donated it", so she doesn't realize any tax rewards for her good deed?
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Jul 18, 2022 14:54
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Yes, if she finds something it is income and the income is taxable. Keep in mind, under this fact pattern, when donating items to Goodwill the deduction is the lower of fair market value or basis. Most of the time, that doesn't matter, because the fair market value is usually less than what you paid for the item. But if she takes a TV out of a dumpster and doesn't include it in income, her basis in the TV is $0 so the charitable deduction is $0. If she reports the value of the TV as income, that gives her basis and she can deduct it, but she is probably worse off taxwise for a number of reasons. I would probably argue that if she took the working items out of a trash bin with the intent of donating it to be resold and reused, that the item really isn't hers and isn't income. The tax benefit would be limited to the 14 cents per mile in charitable driving.
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Jul 18, 2022 15:37
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I can't give away my old laptops and flat screens, what is goodwill going to do with that garbage. I'm surprised that they take it at all The labor to setup the computer and maintain it is far greater than the value of any 5+ year old computer junk
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Jul 18, 2022 23:46
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Hadlock posted:I can't give away my old laptops and flat screens, what is goodwill going to do with that garbage. I'm surprised that they take it at all I never mentioned laptops but in TYOOL 2022, laptops with webcams in good working order are in very high demand due to work from home plus global supply chain issues. A laptop from 5 years ago performs almost identically to now since Intel has been languishing. Goodwill absolutely sells flatscreen TVs all the time. But it seems like the perks of tax deductions can only be realized by the company if they donate them directly, not if someone else does the legwork of salvaging them.
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Jul 18, 2022 23:56
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Laptops were in pretty (extremely) high demand '20, '21 but I think that market has flattened, maybe even declined since it's peak based on the last couple headlines I've read But yeah laptops haven't really improved substantially since like 2014 especially if you didn't buy the absolute cheapest economy model Source: I am the OP of the laptop megathread
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Jul 19, 2022 00:02
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Looking for speculation from people who have watched tax laws change over time What are your thoughts on SALT cap expiring in 2025, vs a permanent change capping it at ~$80k vs the current $10k, or whatever In theory if nothing happens it just expires, but also a republican national government could easily just make it permanent in '25 before it expires which isn't a major election year
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Jul 21, 2022 17:40
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Hadlock posted:Looking for speculation from people who have watched tax laws change over time Honestly, if I'm going by my experience, you can't rule out "Republicans try to extend Trump's tax laws but screw it up" as an option. Amazing how many tax laws in the last few years seem to constantly require some sort of re-write of something in a prior tax law because the idiots wrote it wrong back then.
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Jul 22, 2022 01:23
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Hadlock posted:Looking for speculation from people who have watched tax laws change over time This is one of those things that's pretty clever -- this deduction primarily only helps the well off which is something the Democrats are supposedly against. Small White Dragon fucked around with this message at 05:15 on Jul 22, 2022 |
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Jul 22, 2022 04:59
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Small White Dragon posted:This is one of those things that's pretty clever -- this deduction primarily only helps the well off which is something the Democrats are supposedly against. It primarily helps the well off in blue states, which is a lot of the Democratic base. Also, I hit the SALT cap due to property taxes and my house cost less than $170k so it is definitely low enough to not just impact millionaires.
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Jul 22, 2022 06:26
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Small White Dragon posted:This is one of those things that's pretty clever -- this deduction primarily only helps the well off which is something the Democrats are supposedly against. Yeah a bunch of people in the NYC/tri-state area are howling about it, Californians have been hit by it pretty hard as well
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Jul 22, 2022 06:53
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For things that really screw non-rich people over with itemized deductions, employee business expenses getting the boot definitely screwed over a bunch of lower income people; my trucker clients in particular took it in the chin from that one. Casualty/theft only applying to people in declared federal disaster zones kind of also hits lower income people more.
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Jul 22, 2022 16:57
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KillHour posted:It primarily helps the well off in blue states, which is a lot of the Democratic base. Also, I hit the SALT cap due to property taxes and my house cost less than $170k so it is definitely low enough to not just impact millionaires. Just from a quick google of who benefits from the SALT deduction. Can't speak to the leanings of these sites (Tax Foundation, Brookings Institute) "In 2016, 77 percent of the benefit of the SALT deduction accrued to those with incomes above $100,000; only 6.6 percent went to taxpayers with incomes below $50,000." "Who would benefit from removing the cap on the SALT deduction? The rich – especially the very rich. Almost all (96 percent) of the benefits of SALT cap repeal would go to the top quintile (giving an average tax cut of $2,640); 57 percent would benefit the top one percent (a cut of $33,100); and 25 percent would benefit the top 0.1 percent (for an average tax cut of nearly $145,000). The remaining four percent of the benefit of removing the cap would go the middle class (i.e. middle 60 percent), for an average annual tax cut of a little less than $27." Anyway, I think that any prediction of what might happen to tax policy is difficult to make at best.
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Jul 22, 2022 17:07
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Small White Dragon posted:Just from a quick google of who benefits from the SALT deduction. Can't speak to the leanings of these sites (Tax Foundation, Brookings Institute) Their methodology is all screwed up. The way they've framed it, you could look at all dollars collected in taxes and determine a billionaire should pay a fraction of a percent in taxes, while everyone else should pay 99%, because the billionaires still pay in so many more dollars. They should be looking at number of households who benefit, and/or the proportion of their income everyone saves. I would guess that only wealthy people really benefit from that deduction based on the fact that you have to itemize to get it, but these numbers make no sense.
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Jul 22, 2022 17:44
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It's also a way to penalize "high tax" states in general.
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Jul 22, 2022 17:53
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BonerGhost posted:Their methodology is all screwed up. The way they've framed it, you could look at all dollars collected in taxes and determine a billionaire should pay a fraction of a percent in taxes, while everyone else should pay 99%, because the billionaires still pay in so many more dollars. It's not just wealthy people. I live in the middle of Long Island, and the cost of living is crazy here. You need to make $100K if you want to own a home and support children. 10 years ago when my friends got their first apartment it was $1800/mo for a 1 bed/1bath apartment and I know it's gone up since then. My property taxes are $4k a year and I live in a700sqft condo, any home in my area will be double to triple that. Then factor in ~8% in state income tax. I've had a lot of clients who got absolutely screwed by the SALT limit and I'm mostly dealing with small business owners and middle class families. H110Hawk posted:It's also a way to penalize "high tax" states in general. Yeah it's this which is super ironic for NY born Trump until you remember they allow businesses to still take the full deduction and we know that Trump doesn't own his homes, his companies do.
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Jul 22, 2022 18:16
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Small White Dragon posted:Just from a quick google of who benefits from the SALT deduction. Can't speak to the leanings of these sites (Tax Foundation, Brookings Institute) The thing is, the US is absolutely massive, what makes you a 1%er household in a flyover state, you might be an 11% in the bay area. So you're paying close to 40% income tax federal and then another 10% state in California, as a family living in a 1200sq ft house On paper you're really sticking it to the rich guys, but the rich guys in CA are living cheek to jowel in a tiny house with one car barely saving any money on dual income. Meanwhile their cousin lives in Missouri in a 4500 sq ft house with six jeeps in the front yard, stay at home wife five kids all on $80,000 a year and not maxing out their SALT deduction, very happy they're "not letting those rich fucks get away with it" You can point to the billionaires but as the other guy suggested, look at the total number of people this impacts. Setting the cap to $80-120k would be pretty reasonable imo. $120k would probably allow people making a million a year to participate, but only barely
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Jul 22, 2022 18:46
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Yes exactly, going back to where I live, Long Island has more people than 15 other states, and that's not including Brooklyn & Queens which are technically on the Island but not traditionally counted as "Long Island."
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Jul 22, 2022 19:08
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Hadlock posted:The thing is, the US is absolutely massive, what makes you a 1%er household in a flyover state, you might be an 11% in the bay area. So you're paying close to 40% income tax federal and then another 10% state in California, as a family living in a 1200sq ft house Oh, I know. I've spent a good chunk of my adult life in metro California. A single person making $140k or so can basically hit the SALT cap on CA income tax alone. We're probably veering into D&D territory but this sort of thing comes up a lot when people talk about tax policy there (e.g., is someone making $100k, $200k, or even $300k well off or not?) but presumably the interests of the Democratic Party should be focused on helping the low to middle income folks rather than the top 10-20%. I mean, I'm very much with you that this country (and especially certain regions) needs to do something about housing costs (and that includes rent!) but a loosening of the SALT cap is probably far from the best bang for your buck there. Hadlock posted:Looking for speculation from people who have watched tax laws change over time Anyway, to go back to your question, I haven't paid close attention but I don't think this is a major topic amongst most candidates at this time and there are plenty of people on both sides of the aisle who might be opposed. It's possible it might make it in some kind of budget deal but my guess is that this is the sort of thing that would probably be not really known until last minute.
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Jul 22, 2022 21:55
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Small White Dragon posted:Can't speak to the leanings of these sites (Tax Foundation, Brookings Institute) Tax Foundation is conservative and generally looks to undermine the government. Brookings is, very broadly speaking, neutral and hard to pin down.
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Jul 23, 2022 21:27
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Also the itemized deductions used to be phased out at $311k for MFJ and $156k for single so the benefit from SALT deduction used to only be for people who made less than that. Trump got rid of the schedule A phase out so if they bring back SALT and don't bring back the phase out then the benefit will largely accrue to the rich.
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Jul 25, 2022 21:14
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OK, I just called right when the IRS practitioner and main lines both opened at 7AM and both gave me the “we’re full, call back another day” message, did they shut them down again?! I finally got passed to where I need to go by Taxpayer Advocate, but this is ridiculous. I know they’ve added a “get a callback” service, is there a way to get that when they push you away?
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Jul 26, 2022 12:47
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MadDogMike posted:OK, I just called right when the IRS practitioner and main lines both opened at 7AM and both gave me the “we’re full, call back another day” message, did they shut them down again?! I finally got passed to where I need to go by Taxpayer Advocate, but this is ridiculous. quote:I know they’ve added a “get a callback” service, is there a way to get that when they push you away? (You'd think being one of those phone jockeys I'd have a better idea about that sort of thing but the IRS doesn't tell it's phone assistors poo poo about how the phone system works, just how to answer the calls we get.)
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Jul 27, 2022 01:54
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Peyote Panda posted:Part of it's likely due to new hire training. We don't really have full time instructors for the phone line positions, so phone assistors get pulled to train the new people. It's worse than usual right now because we're so desperate for more staff that instead of the normal once-a-year cattle call we've just got continuous openings and when we have enough people trickle in to fill a class we start a new one. Each new hire class lasts about 10-12 weeks and we've got a lot of overlap so more instructors have been pulled off the phone for longer than usual. Well, I did do the callback thing with one client (they set it up then scheduled with us when the call came in so I could sit in), it's definitely a good idea. But not gonna help much if there's no way to reach anyone to set it up when the phone lines are completely gone (and literally all I needed was to find out status on some ITIN returns; we got the ITINs back so they obviously got the packet but the actual returns seemed to have vanished into Limbo, though at least I finally managed to check with somebody about an hour after I posted and it appears they're just stuck in the 2021 backlog for the most part (with a side order of "We had to re-send the application and the ITIN Operation insists on getting copies of everything from scratch, and somebody decided to re-enter one of the returns and cause a duplicate")). Here's hoping the new folks get in OK at least, most of my problems that need an IRS call just boil down to "what are you guys showing is the status on the account/return?" and I'm hoping that's reasonably basic enough for their skill level. I do make sure to say thank you very politely when I get through though, no matter how long it takes to get there  .
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Jul 28, 2022 09:05
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I still haven't gotten my stimulus check from the IRS. I paper filed an amended return late last year. Is there anything I can do? I would love to have that money right now.
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Aug 2, 2022 16:18
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KOTEX GOD OF BLOOD posted:I still haven't gotten my stimulus check from the IRS. I paper filed an amended return late last year. Did you check "where's my ammended return?"
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Aug 2, 2022 16:23
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Ah, well, that would have been smart wouldn't it.quote:Your amended return was received on March 30, 2022. However, it has not been processed. We apologize for any inconvenience. Oh boy.
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Aug 2, 2022 16:34
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