Ask the Taxman, v. 2008

Discussion in 'Finance, Investing & Economy' started by wcharriscpa, Dec 28, 2007.

  1. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
  2. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    IRS: Late Tax Fix Delays Refunds

     
  3. GoldFinger

    GoldFinger New Member

    Jun 19, 2004
    Question: I have been paying estimated taxes in 2007. However, before I even pay my Q4 estimated tax payment I project to be due a refund. Am I still required to pay my Q4 tax payment?
     
  4. kebzach

    kebzach Member

    Dec 30, 2000
    Greenfield, WI
    No, I dont' believe so. If you are properly withheld or over withheld for an estimated tax payment date, you owe no more for that date.
     
  5. RobertK

    RobertK Member

    Jan 10, 2007
    Manhattan Beach
    Nat'l Team:
    United States
    I have some rental properties and I was thinking of incorporating them to avoid the possibility of personal liability. I also have a wife that does not work. If I created a company, could I call her an employee and pay her a small salary thereby insuring that the company does not earn a profit? Would I get tax breaks for a co that loses money as opposed to just having rental properties that basically break even and giving my wife money every month?
     
  6. JeremyFromTexas

    JeremyFromTexas New Member

    Jan 7, 2008
    Houston, Texas
    My ex girlfriend has not made a payment on a loan that I helped cosign for back in July. I know I am responsible for that loan if she defaults. Is there a way, I can get out of paying or taking my name off the loan?
     
  7. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    I've always maintained that this is primarily a legal question and should be directed to an attorney. Much depends on the state in which you reside. My understanding is that if you are the individual doing the work for the corporation, you are still potentially liable for your actions. If personal asset protection is the primary concern, consult an attorney first and get the "entity question" sorted out - then your cpa can steer you in the right direction, based on the entity you have chosen.
    Be sure to withhold and remit appropriate payroll taxes, etc.
    No. You'd still be getting a K-1 with net rental real estate losses that would probably still be non-deductible on your personal return. Sorry.
     
  8. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Sounds like we need someone to start an "Ask the Lawyer" thread....

    Admittedly this is not my area of expertise, but I sure don't know of any way you can remove your name from the loan without a refinance, which is probably unlikely - especially if we're talking about a new auto loan.

    Anybody else?
     
  9. pkays1

    pkays1 New Member

    May 14, 2006
    newb question here please.

    what are the rules regarding marriage? If i got married at the beginning of 2008, can i claim my wife as a dependant for income made in 2007. she did depend on me in 07 but we did not live together at all. thanks!
     
  10. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Assuming you were not previously married, your filing status would still be Single for 2007. In 2008 your status changes, but not for '07.

    And no, you cannot claim her as a dependent for 2007. Dependents are "qualifying children" or "qualifying relatives" - and I'm going to assume you didn't marry a relative. :)

    See IRS Pub 501 - Exemptions, Standard Deduction, and Filing Information
     
  11. RobertK

    RobertK Member

    Jan 10, 2007
    Manhattan Beach
    Nat'l Team:
    United States
    Thanks for your help!
     
  12. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Happy to be of assistance, but always keep in mind what they say about the value of advice relative to what one pays for it.... :)
     
  13. RobertK

    RobertK Member

    Jan 10, 2007
    Manhattan Beach
    Nat'l Team:
    United States
    I can assure you that I at the very minimum got my money's worth!
     
  14. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    E-filing 2007 taxes begins

    "Taxpayers can now file their 2007 federal income tax returns electronically.

    Although changes to IRS forms affected by new alternative minimum tax laws mean that some taxpayers can't send in their returns until mid-February, the annual e-filing season for the majority of taxpayers was made available by the IRS starting Jan. 11. "
     
  15. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    Getting organized for the tax year

     
  16. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    Is it true that filing early increases your risk of being audited?
     
  17. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    No.

    One notion I've heard goes a little something like this: The IRS has a limited number of audits they are going to perform for a given tax year. If you wait until the absolute last day to file (such as October 15th), then perhaps it is more likely that all of the "audit slots" will be taken by the time your return gets processed.

    I don't support such a notion, but it's the closest I've heard to "early e-filers are more likely to get audited."

    To read about what really triggers an audit, check out this link discussing the DIF score, or do a google search for IRS DIF score.
     
  18. muskiesrock35

    muskiesrock35 Member

    Nov 28, 2001
    Cincinnati
    What about education related expenses? ie: books, interest paid on federal student loans, etc. My mom has always done my taxes in the past and I've been able to get money back from my books. Where do I need to fill that in?

    Thanks!
     
  19. muskiesrock35

    muskiesrock35 Member

    Nov 28, 2001
    Cincinnati
  20. Sachin

    Sachin New Member

    Jan 14, 2000
    La Norte
    Club:
    DC United
    We closed on a house on Dec. 27, 2007. However, we still haven't sold the house we owned at the time. So now I own two houses with two mortgages. Can I deduct from both mortgages for the three days in 2007 on my 2007 return and for however long I own both houses in 2008 on my 2008 return?
     
  21. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    You can deduct the mortgage interest - and property taxes - for both your primary residence and a second residence.

    Frequently Asked Tax Questions And Answers Keyword: Home Mortgage Interest
     
  22. Stogey23

    Stogey23 Member+

    Dec 12, 1998
    San Diego, CA
    What qualifies me as Head of Household (for an extra deduction)? My wife works as well, and our income ratio is probably about 55/45% of our total income. Does this matter?
     
  23. wcharriscpa

    wcharriscpa Member

    Arsenal FC
    Dec 26, 2000
    Austin
    Club:
    Arsenal FC
    Nat'l Team:
    United States
    The filing status "Head of Household" is generally for people who are not married and have a qualifying person (such as a child or other dependant) in the home.

    A pretty good discussion can be found here.

    Then, there's always the IRS website - which may or may not leave you feeling enlightened :) :
    Topic 353 - What is Your Filing Status?

     
  24. yimmy

    yimmy Moderator

    Aug 23, 2004
    California
    This is kind of a dumb question:

    I'm itemizing my deductions for this year's Federal income tax return. As far as the state income tax deduction goes, how do I calculate that?

    Is it :

    A. All of the $$$ that was withheld from my paychecks in calendar year 2007 to pay this year's state income tax?

    or

    B. All of the $$$ that I paid in March 2007 for my 2006 state income tax return.

    I think I once picked choice A for one year and choice B a few years ago. Oops! :eek:
     

Share This Page