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Hey guys, small non-profit income tax question but kind of a weird one. I live in a condo complex with a whole bunch of storefronts underneath me that have been vacant for months to years (poor area). I am an IT professional and have piles of hand-me-down computers. I'm thinking of convincing an owner there to let me plant a small non-profit operation in one of those spaces, basically just set up PCs, a cable modem, and appropriate insurance, as a kind of free internet cafe where people can come in and Skype back to their home countries or play facebook games. There's a lot of immigrants here and many have no access to decent computers. Plus I grew up here and I know there's gently caress-all for kids to do after school. I don't want to found some bigass charity with a board of directors and everything. I just want to know if there's a way I can tell the landlord "Hey instead of having this place sit empty, donate rent to me and you can write it off" and have it be cool with the IRS. I was reading if you don't make $5000 more than you spend, you can be tax-exempt automatically with no filing fees. Am I misinterpreting that or is this doable?
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Dec 2, 2011 21:41
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I own a condo in an apartment building and just bought another one in the same place. I was going to move into the second condo and rent out the first. I know for a rental condo, I can deduct many upgrades, and legal advice fees, among other things. What happens if after X number of years, I move back into the original apartment? Do I have to pay back all the deductions or is there some leeway?
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Dec 29, 2013 18:47
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Oh, that's awesome. I don't plan on ever selling the property, I was just going to continue collecting more apartments in this building to rent out if this first one goes well; economy of scale and all that. Good to know I could theoretically upgrade both and write off both if I do it in the right order.
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Dec 30, 2013 02:22
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My mom has been unemployed for years and recently I gave her one of my rental apartments to live in free. She's been living off savings and I'm the only one in my family providing financial support. Can I claim her as a dependent? She's in her late 50s so I don't know if that counts or if she has to be older. I'm in MA. I'm also receiving veteran benefits and notice they increase with a parent dependent so that'd help me help her out.
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Dec 30, 2015 17:05
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sullat posted:Maybe. Go to the IRS website and use the ITA (interactive tax assistant) and follow the checklist to see if she can be claimed. Generally, someone has to live with you to be claimed, but parents are often an exception to that rule. Cool, according to that I can claim her, in fact I ran it a few times and it seems to suggest her age, whether she lives with me, and the amount I give her is irrelevant. Since she makes $0 and no one else supports her, I could technically give her  and still claim her.
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Dec 30, 2015 17:36
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The deadline snuck up on me this year... I was going to file an extension and I noticed that I'll still pay a penalty if I owe money. I usually owe $500-1000 each year. Since I have no idea exactly how much, can I just send them a couple grand now, then do my taxes later and have them send me back what I overpaid without getting a penalty?
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Apr 17, 2016 16:25
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urnisme posted:Yes. Estimate what you'll owe and send that amount with your 4868. Then list it as "amount paid with request for extension to file" when you file your actual return. Sweet, thanks! Actually, I did have another question that even my professional tax prepper never gave me a straight answer for. I like to owe taxes at the end of the year; but I hear if I withhold "too much" that I'll have to pay a penalty for that too. How the heck do I figure out how to withhold as much as possible without triggering said penalty? Is there an online calculator where I can put in my gross income and it tells me the number of Federal/State exemptions put down?
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Apr 17, 2016 17:02
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sullat posted:He's full of poo poo, you don't have a penalty for "withholding too much" except for not having that money available during the year. You should pay what you expect to owe with your extension request and then if you over shoot, you'll get the money back. I said it backwards, I meant for not withholding enough. I think there is an actual penalty if I put a lot of exemptions and wind up owing a huge amount at the end of the year. If there wasn't I'd just be like gently caress it give me all the monies and I'll figure it out.
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Apr 18, 2016 14:36
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My tax/accountant guy in the greater Boston area retired last year and I need to find a new one... anyone know anyone around here? Only have until the 15th to do my 2016 taxes and would like to find someone that's a little more creative than H&R Block.
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Oct 10, 2017 22:04
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Quick question, I just found out that I can take my $200 MA state refund, and apply it to next year's tax liabilities. Can I do that multiple years in a row, i.e. rolling over the payment year after year to grow my balance? Reason being that each time I get a $200 refund, MA automatically takes it all to pay down a 20-year old student loan (balance of like $2k) and charges something like a $75 "administration fee" each year as well. But on the years I owe money, they don't take anything. So it makes sense to roll over my refunds for as long as I can in the hopes that in a few years I'll owe a bunch and can then funnel this in. kefkafloyd posted:Check your PM box. Thanks, I'll give them a call today.
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Oct 13, 2017 07:47
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KYOON GRIFFEY JR posted:Is there some reason you don't just pay down that student loan balance so this problem goes away? Principal of the thing, I withdrew properly and they acted like I didn't. I'd like to go to my grave still owing the money if I can manage... Epi Lepi posted:Won't work, they'll apply it to your balance first and then roll over the excess. ...guess I can't manage.
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Oct 14, 2017 04:46
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scrubs season six posted:According to one of my coworkers H&R block can be extremely creative including telling you to deduct mileage for driving to your normal place of employment and also deducting $25 for lunches that you did not buy nor eat. Hah, well I didn't need to do any of that, I was way within the standard deduction for head of household. The part I was concerned about is, my parent has 0 income and rents an apt from me, and gets disability/unemployment checks. I can technically charge any amount up to the whole check, but I was just trying to figure out how to do it and not jeopardize the low income perks for them (fuel assistance, food stamps, etc). I don't actually care how much I get, I was just trying to figure out the optimal amount to benefit us both the most. I saw there was even stuff like gifting money around. I was in a hurry until I realized that all that started in 2017, not the 2016 taxes i was doing.
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Oct 18, 2017 20:52
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potatoducks posted:http://taxplancalculator.com/ is my favorite of these. Gives you an exact dollar amount and lets you see how things change along with your variables.  I'd buy that for a dollar!
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Dec 21, 2017 23:18
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I just got a nastygram from the IRS saying they they had $5000 extra reported to them in "securities" from my job in 2013. That was company stock, but I had to purchase it at $900 each month to receive $1000 worth of stock each month. There's no way I could have received $5000 in value from that in a year. How do I explain that to the IRS?
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Dec 29, 2017 19:55
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Uhhh, so PayPal just sent me 1099-K which I've never gotten from them before. It says I'm receiving it, and they're furnishing it to the IRS, because it meets the criteria of over $20k in sales and over 200 transactions. But it clearly says on the paper that I've only done $16k and 41 transactions. So why the gently caress are they doing it anyway? It's all just yard-sale type poo poo I've sold along the year, such as poo poo I bought on eBay and turned out I didn't need and sold at broke-even, more or less. Do I seriously have to explain 41 stupid things to the IRS now? Edit: Just talked to PayPal tax department, Massachusetts passed a law requiring PayPal to narc you if you got over $600 from them. They confirmed it is still only sent to the Feds if you break $20k+200x. Sooo... I guess I can tell Massachusetts that it's just occasional person-to-person non-business sales (which it is) and should be considered yard sales, which according to Mass.gov are non-taxable? http://blog.mass.gov/revenue/current-affairs-2/no-sales-tax-due-on-yard-sale-items/ Zero VGS fucked around with this message at 21:13 on Feb 5, 2018 |
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Feb 5, 2018 21:03
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If I make 80k a year and my dad makes nothing, and I am about to start renting out a property, can I have him collect the rent for himself in his name, and gift some back to me? For purposes of getting him some money and still getting some for myself at a lower tax bracket?
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Feb 13, 2018 00:56
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urnisme posted:No. The rental income goes to the property owner. And having your income arrive in your dad's name and then have him gift it to you is fraud. Hmm thanks, yeah I probably want the full income in my name anyway, so I can use that income to qualify for more mortgages on more rental property. I was just hoping there was some kinda Shawshank Redemption style tax break here.
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Feb 13, 2018 21:22
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Well gently caress, I totally forgot to file my tax extension. What do I do, just mail it today and hope they don't notice? It the penalty even that bad if I missed by a few days? I am probably owed money as opposed to owing.Ixian posted:Is there some magical card out there that has rewards that outmatch the 2-3% fee by a meaningful amount or are people just dumb at math? If you're a veteran, USAA has a card that gives 2.5% back on all purchases (you need direct deposit in their checking so I just deposit my disability benefits). There's no other fine print and it works as advertised, so I get to actually pay online poo poo with service fees and break even or make a slight profit.
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Apr 22, 2018 07:32
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So I sent in an extension to file maybe a day or two after the deadline to file it. The IRS waited until loving today (5 months later) to send me a letter saying that I sent it too late and need to file immediately. Am I going to get some super bad fine or am I just charged some reasonable amount of interest on what I owed (if I owed anything)? Guess I'll go find a tax professional, but just trying to get a hint of how boned I am. Ur Getting Fatter posted:I rent out an apartment I own. I'm no expert but I do know that if you get cashback on your credit card, it is not taxed because the IRS officially considers it a "discount" on the final price of what you paid, as opposed to a reward/prize after the fact. By that logic, if you are giving a discount on your rent (especially if the rent checks you deposit reflect this) then you can say you discounted the tenant's rent and thus didn't collect the full amount. It would probably help if you describe the discount as "a incentive in the form of a discount for your tenant taking good care of the place" as opposed to specifically describing it as you reimbursing him for him providing you goods or services, which the IRS could more easily assign a dollar value to.
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Sep 14, 2018 22:56
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Here's a fantasy scenario: 1) Grandpa gets scammed for $100k 2) Over the course of some years, grandpa wins against the scammers in court and gets awarded treble damages, $300k back 3) Grandpa's credit is still ruined as a result of the cascading effects of the whole fiasco, we're talking like 450 credit score, and even the court win hasn't repaired much of it 4) Grandpa offers to just gift all the money to grandson, who is financially responsible, more scam-resistant, and supported grandpa while he was dirt poor with free housing etc (grandson currently filing as head of household for taking care of grandpa). Is there a way the grandson can take the gifted money, buy a rental property, make grandpa the "property manager", and pay grandpa most/all the rental proceeds for the rest of their life? The ideas at play are that the grandson is more qualified to buy property at better terms (and already an experienced landlord), but also subject to a way higher tax bracket. Grandpa should get paid for occasionally checking on the renters, and because it was his down-payment money in the first place. This all seems legit and fair to me in my brain but maybe there's a reason that won't fly when filing the tax returns?
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Apr 12, 2020 01:52
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Uhh I just got an IRS deposit for $1200... I never got around to filing 2019 taxes yet though, and I made like $200k in 2017, so that doesn't seem right? I assumed I wouldn't get any of that because I make too much. Is this bank error in my favor, go directly to jail? I'm just not gonna touch it for now lol edit: Washington Post calculator says I ain't supposed to get poo poo Zero VGS fucked around with this message at 21:54 on Apr 13, 2020 |
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Apr 13, 2020 21:52
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Spokes posted:How much did you make in 2018? Or do you mean you didn't file for 2018 (in 2019) yet The taxes that would normally be filed right now are the ones I didn't do yet. I filed 365 days ago and that was like $200k gross, though half of that was rental income to subsidize my mortgage so net was more like $100k
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Apr 13, 2020 22:15
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sullat posted:It's an economic stimulus payment, do you feel stimulated? If you end up not being eligible for it based on your 2020 return, you can pay it back then. Or not! There hasn't been any guidance on that yet. The only reason I can see that I might have received the $1200 it is because I filed as Head of Household, as I cover a parent's living expenses. Maybe the IRS gave me my parent's entitlement? Because it also says on the IRS site that you're not eligible if you're being claimed as a dependent by someone else, so maybe that's why my parent didn't get it and I did when I probably shouldn't. Epi Lepi posted:All the guidance I'm seeing is that they will not claw back any payments people got that they weren't technically entitled too. I was just in a webinar today and the speaker said Grassley had said so at some point. In that case, maybe I should have the parent file for it anyway just for shits. They don't file taxes, but the IRS is trying to give them to non-filers. edit: In the spirit of the current thread title, both parent and I won't spend any of it until the dust settles way down the road Zero VGS fucked around with this message at 23:42 on Apr 13, 2020 |
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Apr 13, 2020 23:34
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MadDogMike posted:OK, what's your actual AGI, this isn't a very clear statement unfortunately. They aren't going to look at "gross" rental income to decide, it's your AGI which is going to include rental income minus expenses. Head of household DOES get a higher break point, full stimulus if less than/equal to $112,500 and reduction afterwards. Oh alright, I checked and my 2018 Federal AGI was like 80k, I guess with head of household I legitimately should get the full $1200. I was unable to rent half of my duplex because I was renovating it for a while so I guess those writeoffs helped. My 2019 will look drastically different but I have until mid July to do that without filing for the Oct extension. Sounds like if they are basing it off my 2018 I'm good, and if they "guessed" my 2019 I won't be on the hook if I made way more because they never actually asked me.
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Apr 14, 2020 03:46
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dexter6 posted:In this fantasy scenario, unless I was a real estate genius and wanted to sign up for the bullshit related to managing property, I would instead invest the $300k in a diversified portfolio of index funds, for which I could make 5-7% on annually on and pay myself 4% in perpetuity. 7% on 300k is 21k/yr before compounding 300k downpayment gets a mortgage for a rental that easily nets over 80k/yr after PITI and upkeep Dunno about you but I think 4x money is worth the headache to a lot of people.
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Apr 15, 2020 02:46
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Motronic posted:Have you read the news lately? I mean, me personally, I'm from near Boston, my tenants are all on time, no vacancies, but my index funds crashed this year (as did everyone's). I think if people are young and can handle the risk and extra work, rentals are they way to go in this area. Everyone needs a roof over their heads. My rents are the lowest around which makes tenants happy and has them staying current and renewing their lease every year. But even with generous rents, the returns are gonna beat index funds by multiples. People always need a roof over their head and the worst that can happen is you need to just... lower the rent more? By all means link me to any of these articles, I'm not doubting you, I just try to keep on the pulse for real estate news and haven't seen anything dire happening around here. edit: Any the early scenario I was talking about was using 300k for a down payment on an investment property... investments these days require 25%-30% down with no exceptions. That's not what I'd call "highly leveraged" but I don't really know the BFC lingo. Zero VGS fucked around with this message at 03:54 on Apr 15, 2020 |
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Apr 15, 2020 03:52
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Ancillary Character posted:Is the amount that posted consistent with the amount you would get under the stimulus payment? My $1200 stimulus payment direct deposit also says "Deposit - ACH IRS TREAS 310 - / TAX REF" so yeah he might be confusing a partial stimulus with a return.
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Apr 15, 2020 20:52
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Epi Lepi posted:Hey maybe you can give me some guidance. I'm trying to fax some stuff to the IRS and keep getting a busy signal. Any hope of that clearing up before the coronapocalypse ends or are my clients who need me to send stuff in hosed? I know the IRS said they're not processing paper returns right now but what about letter responses and other forms like 2553's? Maybe take a picture of all of it then send it Certified? If they give you poo poo after the fact you'll have total proof that way.
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Apr 15, 2020 20:54
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Cabbages and Kings posted:I didn't think it was, but I just looked. Because of how recently we filed, I think our stimulus check was based on our 2018 return, and not our 2019 return. Our 2019 and 2020 returns are both lower enough than 2018, that this is a significant difference in the check. I mean, it was actually advantageous to me. If I filed 2019 I'd have gotten nothing but instead I got the full $1200 because they went on 2018 without me knowing. And it's not a "credit" in that you have to have to pay it back, it's just the way they wrote it up, but it doesn't affect your future taxes, and it is not taxable income: https://www.newsweek.com/do-i-have-payback-my-stimulus-check-1498111 You might be able to show them your 2019 stuff to have them dole out the difference?
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Apr 16, 2020 01:48
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Ancillary Character posted:Welp, because my parents neither owed money or had a refund, they can't use the "Get My Payment" tool to input their banking information because the IRS never coded for the $0 scenario. There's a page specifically for non-filers: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
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Apr 23, 2020 07:23
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Person A earns $200k and pays income tax on it Person B steals the $200k from Person A by fraud Person A sues Person B and 5 years later settles the case for $100k because it would be too expensive/risky to try for the full amount back Person A receives the settlement check for $100k. Does he need to pay taxes on it again? He earned 0 dollars aside from the settlement this year.
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May 9, 2020 02:43
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Ur Getting Fatter posted:Wouldn’t person A have had a loss for the taxable year of the theft? Presumably they would have carried that loss forward and could now apply it against any tax from their settlement. They were scammed out of the money by a con man basically, they never wrote it off as a loss in this example, no.
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May 9, 2020 03:39
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MadDogMike posted:Usual rule for legal settlements is no taxes on damages unless you claimed the damages as a loss on taxes previously, only "punitive" awards are taxable. If there was no loss reported on Schedule A that year, then it seems the amount is damages and there's no need to pay tax on it. Check with the lawyer to make sure though, they're supposed to inform you generally how the settlement was characterized. Thanks very much, that's what I was looking for.
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May 9, 2020 23:49
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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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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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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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It was kinda the other way around, a bunch of states like Taxachusetts imposed it on eBay/Amazon and so they said gently caress it and did it for everything including federal
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Sep 14, 2022 20:36
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No that's an old nickname for Massachusetts because of the taxes. Mass lawmakers thought they'd stick it to Amazon/eBay by forcing both companies to collect sales tax and report income in a bid to help local small businesses, it of course massively backfired since Amazon was no longer scared of having nexus in Mass so they simply plopped warehouses here to have same-day shipping instead.
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Sep 14, 2022 21:28
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Schrödinger’s cash
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Dec 22, 2022 06:07
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| # ¿ May 20, 2024 18:14 |
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This seems like the best thread to ask: can people still use the CARES act to withdraw 401(k) without penalty? I can't seem to tell if that act is still on the books for 2023, or if "covid is over".
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Feb 8, 2023 09:13
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