Comments for Free Tax Tips http://www.freetaxtips.org Tax Tips from the Experts, for Free! Sat, 27 Feb 2010 17:37:54 -0600 http://wordpress.org/?v=2.8.4 hourly 1 Comment on 1099 Misclassification by Ronald Wainrib, Esq.http://www.freetaxtips.org/tax-forms/1099-tax-forms/1099-misclassification#comment-1010 Ronald Wainrib, Esq. Sat, 27 Feb 2010 17:37:54 +0000 http://www.freetaxtips.org/tax-forms/1099-tax-forms/1099-misclassification#comment-1010 In response to the question about security clearance and misclassification, any audit risks resulting from filing an SS-8 Form with the IRS would be to your former employer, not to you as the worker asking for the status determination. An SS-8 Form requesting IRS determination can be filed by either party, the employer or worker. Submit your SS-8 as soon as possible, and don't ignore your state tax agency. I don't know your state, but State agencies are enforcing the law with audits of potential employee misclassification offenders as aggressively as the IRS.Hope this added info helps.Ron Wainrib, Esq. Independent Contractor Law Center contingentlaw@yahoo.com In response to the question about security clearance and misclassification, any audit risks resulting from filing an SS-8 Form with the IRS would be to your former employer, not to you as the worker asking for the status determination. An SS-8 Form requesting IRS determination can be filed by either party, the employer or worker. Submit your SS-8 as soon as possible, and don’t ignore your state tax agency. I don’t know your state, but State agencies are enforcing the law with audits of potential employee misclassification offenders as aggressively as the IRS.

Hope this added info helps.

Ron Wainrib, Esq.
Independent Contractor Law Center
contingentlaw@yahoo.com

]]> Comment on Tax Write Off for Donation Car to Family Member by donate used carshttp://www.freetaxtips.org/tax-write-off-questions/tax-write-off-for-donation-car-to-family-member#comment-979 donate used cars Mon, 21 Sep 2009 20:57:49 +0000 http://www.freetaxtips.org/?p=839#comment-979 While there is a tax exemption on family gifts, the amount is limited. I believe it's in the order of $10,000 which most likely covers typical used cars but double check the limit as it may have changed recently. While there is a tax exemption on family gifts, the amount is limited. I believe it’s in the order of $10,000 which most likely covers typical used cars but double check the limit as it may have changed recently.

]]> Comment on Writing Off IRS Audit Cost? by FXhttp://www.freetaxtips.org/tax-write-off-questions/writing-off-irs-audit-cost#comment-908 FX Fri, 18 Sep 2009 22:34:05 +0000 http://www.freetaxtips.org/?p=776#comment-908 Yes, as a legal/accounting fee. You'll be able to deduct it on your tax return. Yes, as a legal/accounting fee. You’ll be able to deduct it on your tax return.

]]> Comment on Can a Loss of Earnest Money to a Tax Write Off? by Petehttp://www.freetaxtips.org/tax-write-off-questions/can-a-loss-of-earnest-money-to-a-tax-write-off#comment-976 Pete Thu, 17 Sep 2009 16:48:22 +0000 http://www.freetaxtips.org/?p=734#comment-976 What if it was for investment? What if it was for investment?

]]> Comment on Unreported / Underreported Income IRS Scam by Kevinhttp://www.freetaxtips.org/irs/irs-scams/unreported-underreported-income-irs-scam#comment-953 Kevin Mon, 14 Sep 2009 03:56:28 +0000 http://www.freetaxtips.org/?p=853#comment-953 Dear Sir/Madam: I received the following email and I am not sure of how legitimate and genuine this is. This could again be some kind of scam that keeps floating around in the Internet. Kindly shed some light on to this ASAP.Thank you, Kevin******************** PRESIDENTAL CLEARANCE OFFICEOFFICE OF THE VICE PRESIDENT,La Primature de Cote d'IvoireBoulevard de la RépubliqueO1 BP 1533 Plateau Immueable Carrera,Abidjan - PlateauFrom: Desk of the: Foreign Payment Approval Department/Conseiller FinancierAbidjan, 02 Sep. 09 Sir,Be informing from this notice that your name appeared to the New Allocation Payment Roll, with the total sum of US$3,000 to be paying to your designated bank account, which was originated in Republic of Cote d’Ivoire.You are advice to re-confirm your personal and bank details including your photo identification to enable this department have a proper check up with the Allocation Approval that is signed in your name for payment.******************** Dear Sir/Madam:
I received the following email and I am not sure of how legitimate and genuine this is. This could again be some kind of scam that keeps floating around in the Internet. Kindly shed some light on to this ASAP.

Thank you,
Kevin

********************
PRESIDENTAL CLEARANCE OFFICE

OFFICE OF THE VICE PRESIDENT,

La Primature de Cote d’Ivoire

Boulevard de la République

O1 BP 1533 Plateau Immueable Carrera,

Abidjan – Plateau

From: Desk of the: Foreign Payment Approval Department/Conseiller Financier

Abidjan, 02 Sep. 09

Sir,

Be informing from this notice that your name appeared to the New Allocation Payment Roll, with the total sum of US$3,000 to be paying to your designated bank account, which was originated in Republic of Cote d’Ivoire.

You are advice to re-confirm your personal and bank details including your photo identification to enable this department have a proper check up with the Allocation Approval that is signed in your name for payment.

********************

]]> Comment on Upgrade My House, Then Write Off the Depreciated Value? by Jeffhttp://www.freetaxtips.org/tax-write-off-questions/upgrade-my-house-then-write-off-the-depreciated-value#comment-945 Jeff Sun, 06 Sep 2009 03:24:48 +0000 http://www.freetaxtips.org/?p=843#comment-945 Some assumptions- You are currently renting out space #2, but are considering renting out space #1, where you currently live, in the future.The bathroom improvement would be a depreciable addition for space #2. For space #1, the improvement to your own home would be an increase in your basis in the property. If you ever sell the duplex, this will offset the gain, if applicable. If you decide to rent out space #1 in the future, you can depreciate your basis at that time. Some assumptions- You are currently renting out space #2, but are considering renting out space #1, where you currently live, in the future.

The bathroom improvement would be a depreciable addition for space #2. For space #1, the improvement to your own home would be an increase in your basis in the property. If you ever sell the duplex, this will offset the gain, if applicable. If you decide to rent out space #1 in the future, you can depreciate your basis at that time.

]]> Comment on Tax Write Off for Donation Car to Family Member by shipwreckhttp://www.freetaxtips.org/tax-write-off-questions/tax-write-off-for-donation-car-to-family-member#comment-938 shipwreck Sat, 05 Sep 2009 00:48:33 +0000 http://www.freetaxtips.org/?p=839#comment-938 No you can't it must be a real charity. Otherwise everyone would call it donation when it is just a gift to family. You may not have anyhow if you don't itemize and the charity must sell the car to determine the deduction. If they use it in the charity you don't have a value to declare. No you can’t it must be a real charity. Otherwise everyone would call it donation when it is just a gift to family.
You may not have anyhow if you don’t itemize and the charity must sell the car to determine the deduction. If they use it in the charity you don’t have a value to declare.

]]> Comment on Will Filing Amended Return Trigger IRS Audit? by Anonymoushttp://www.freetaxtips.org/irs-audit/will-filing-amended-return-trigger-irs-audit#comment-932 Anonymous Wed, 02 Sep 2009 15:22:28 +0000 http://www.freetaxtips.org/?p=828#comment-932 You will be paying them $950 more with the amendment and they may want some interest. That is likely the last you hear about it. If you can support the numbers on the amendment why worry about an audit. In most cases if you are not trying to do something wrong an audit is no big deal other than the time it take to prepare. You will be paying them $950 more with the amendment and they may want some interest. That is likely the last you hear about it. If you can support the numbers on the amendment why worry about an audit. In most cases if you are not trying to do something wrong an audit is no big deal other than the time it take to prepare.

]]> Comment on Does the IRS Call People They are Going to Audit? by Max Hooplahttp://www.freetaxtips.org/irs-audit/does-the-irs-call-people-they-are-going-to-audit#comment-924 Max Hoopla Mon, 31 Aug 2009 15:24:02 +0000 http://www.freetaxtips.org/?p=809#comment-924 If you have a unpaid tax bill and haven't paid it, IRS may try to call you before taking enforced collection action. If you have a unpaid tax bill and haven’t paid it, IRS may try to call you before taking enforced collection action.

]]> Comment on Is Emergency Home Repair a Tax Write Off? by Anonymoushttp://www.freetaxtips.org/tax-write-off-questions/is-emergency-home-repair-a-tax-write-off#comment-926 Anonymous Mon, 31 Aug 2009 00:48:52 +0000 http://www.freetaxtips.org/?p=813#comment-926 This would not be a deduction if it is your personal residence. It could be an adjustment to your basis if you own the home. That will reduce any gain you may make when you sell the house in the future. It is not an adjustment to bases if it is only a repair to what had existed when you purchased the house. This would not be a deduction if it is your personal residence. It could be an adjustment to your basis if you own the home. That will reduce any gain you may make when you sell the house in the future. It is not an adjustment to bases if it is only a repair to what had existed when you purchased the house.

]]> Comment on How Much Tax Write Off Am I Allowed? by Kenhttp://www.freetaxtips.org/tax-write-off-questions/how-much-tax-write-off-am-i-allowed#comment-863 Ken Sun, 30 Aug 2009 22:09:31 +0000 http://www.freetaxtips.org/?p=707#comment-863 If the demo vehicle and the products installed in the car are used for 100% business purposes then all the costs related to the demo products, including the installation, are 100% deductible.However, because all these costs are related to the improvement of a vehicle, the costs may be subject to fixed asset/special depreciation rules and may not be eligible for 100% deduction in the year in which they were purchased. In all likelihood, depending on the net income of the business and the total cost of the vehicle, the entire costs would be eligible for 100% deduction in the current year using the Section 179 deduction (which allows you to deduct up to approximately $108,000 per year in fixed asset purchases, providing the total cost of the asset does not exceed the business' current year net income). If the demo vehicle and the products installed in the car are used for 100% business purposes then all the costs related to the demo products, including the installation, are 100% deductible.

However, because all these costs are related to the improvement of a vehicle, the costs may be subject to fixed asset/special depreciation rules and may not be eligible for 100% deduction in the year in which they were purchased. In all likelihood, depending on the net income of the business and the total cost of the vehicle, the entire costs would be eligible for 100% deduction in the current year using the Section 179 deduction (which allows you to deduct up to approximately $108,000 per year in fixed asset purchases, providing the total cost of the asset does not exceed the business’ current year net income).

]]> Comment on Should I Claim Tax Deductions That Will Not Affect Taxable Income? by Ben Vhttp://www.freetaxtips.org/tax-deduction-questions/should-i-claim-tax-deductions-that-will-not-affect-taxable-income#comment-900 Ben V Sun, 30 Aug 2009 03:41:25 +0000 http://www.freetaxtips.org/?p=760#comment-900 One additional reason to put forth the effort depends on what your state taxes allow. For example, Ohio let's taxpayers deduct medical expenses that exceed 7.5% of their AGI, without having to meet anything similar to a "standard deduction" threshold.Check to see if your state income taxes allows for this deduction.However, for you it might be similar to your federal tax situation -- if you state tax liability is already "0" then, it might not do you any good. (But, it's well worth checking out.) One additional reason to put forth the effort depends on what your state taxes allow. For example, Ohio let’s taxpayers deduct medical expenses that exceed 7.5% of their AGI, without having to meet anything similar to a “standard deduction” threshold.

Check to see if your state income taxes allows for this deduction.

However, for you it might be similar to your federal tax situation — if you state tax liability is already “0″ then, it might not do you any good. (But, it’s well worth checking out.)

]]> Comment on Claiming Standard Deduction with Medical Expenses And Student Loan Interests by Lisa Fhttp://www.freetaxtips.org/tax-deduction-questions/claiming-standard-deduction-with-medical-expenses-and-student-loan-interests#comment-909 Lisa F Sat, 29 Aug 2009 22:37:21 +0000 http://www.freetaxtips.org/?p=777#comment-909 Yes, you can, as long as you otherwise meet the requirements of those deductions. Moving, for example, requires that you have a job that would require commuting 50 miles longer than you currently do. For example, if your old house to old job was 10 miles, the distance from your old house to your new job would have to be at least 60 miles. Yes, you can, as long as you otherwise meet the requirements of those deductions. Moving, for example, requires that you have a job that would require commuting 50 miles longer than you currently do. For example, if your old house to old job was 10 miles, the distance from your old house to your new job would have to be at least 60 miles.

]]> Comment on How Would the IRS Know If I Am Reporting All Income Or Not? by Pennyhttp://www.freetaxtips.org/irs-audit/how-would-the-irs-know-if-i-am-reporting-all-income-or-not#comment-912 Penny Sat, 29 Aug 2009 17:49:11 +0000 http://www.freetaxtips.org/?p=781#comment-912 The IRS can check the your account balances and the amounts deposited for you and your business as well as your reported income. It would be easy for them to see if you deposited more money than you claim to have earned, or if the balances match. The IRS can check the your account balances and the amounts deposited for you and your business as well as your reported income. It would be easy for them to see if you deposited more money than you claim to have earned, or if the balances match.

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