Comments for Free Tax Tips

Comment on Does the IRS Call People They are Going to Audit? by Casae

Casae — Thu, 11 Mar 2010 22:51:12 +0000

just be smart when you call back and dont give out any dumb information like your SSN, credit card etc. If it is legit they will probably cut straight to the chase.

Comment on 1099 Misc Income Form by TurboTax Aliza

TurboTax Aliza — Thu, 11 Mar 2010 16:47:49 +0000

Hi there

I can help guide you through TurboTax. I am making some assumptions here about the type of income your husband has. First, locate the “Income” screen under “Wages and Income”. Scroll down to find “Less Income” heading and then choose “start” beside Miscellaneous Income. Choose “Wages Not Already” reported on the next screen. Follow through the next steps and then go back to “Income” screen again and choose “foreign earned income” and go through that flow.

I hope this helps.

Thanks,
TurboTax Aliza

Comment on Unreported / Underreported Income IRS Scam by Anthony D.

Anthony D. — Thu, 11 Mar 2010 05:15:53 +0000

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Comment on 1099 Misclassification by Ronald Wainrib, Esq.

Ronald Wainrib, Esq. — Sat, 27 Feb 2010 17:37:54 +0000

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 cars

donate used cars — Mon, 21 Sep 2009 20:57:49 +0000

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 FX

FX — Fri, 18 Sep 2009 22:34:05 +0000

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 Pete

Pete — Thu, 17 Sep 2009 16:48:22 +0000

What if it was for investment?

Comment on Unreported / Underreported Income IRS Scam by Kevin

Kevin — Mon, 14 Sep 2009 03:56:28 +0000

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 Jeff

Jeff — Sun, 06 Sep 2009 03:24:48 +0000

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 shipwreck

shipwreck — Sat, 05 Sep 2009 00:48:33 +0000

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 Anonymous

Anonymous — Wed, 02 Sep 2009 15:22:28 +0000

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 Hoopla

Max Hoopla — Mon, 31 Aug 2009 15:24:02 +0000

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 Anonymous

Anonymous — Mon, 31 Aug 2009 00:48:52 +0000

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 Ken

Ken — Sun, 30 Aug 2009 22:09:31 +0000

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).