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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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Lev, Thanks help on the overseas payment issue. We have a

Customer Question

Hi Lev,Thanks for the help on the overseas payment issue. We have a friend that does the same thing with employees in Greece and his accountant says he has to set aside 30% withholding, but there could be other circumstances there that I don't know.Now I have a few more questions before I put my taxes together. Ill include the rest here and bump up the payment.I purchased a 2 year old BMW in August. I usually lease my cars. How will this be handled on my taxes differently from the leases?What advantages are there between owning a car in my company name or owning it in my personal name?I have a daughter in college in Florida. What expenses can I deduct there?I rehab houses. Sometimes I buy in one year and sell in another. Do you think it is better to claim the expenses in the same year the home is sold or when they are incurred?
Submitted: 10 months ago.
Category: Tax
Expert:  Lev replied 10 months ago.

When you have EMPLOYEE - there will be additional labor laws applies - and that law is based on the physical place where employees are working.

So if employees are working in Greece - local laws will apply - so we need to be VERY clear with that.
If these are independent self-employed contractors - who provide services for your business - the situation would be different.
Let me review your other questions as well...

Expert:  Lev replied 10 months ago.

I purchased a 2 year old BMW in August. I usually lease my cars. How will this be handled on my taxes differently from the leases?\

With the car you own - and that is used for business purposes - there are two options - you may deduct the business use of your car based on the standard mileage rate OR you may deduct actual car expenses (based on receipts plus depreciation of the cost of your car)
Most taxpayers are using standard mileage rate as it require less record keeping - but generally you may use either method.

Customer: replied 10 months ago.
Hi. Are you going to answer the rest?
Expert:  Lev replied 10 months ago.

Sorry for delay... I was sure all issues were addressed,
but somehow my posts were lost in teh universe...
I have a daughter in college in Florida. What expenses can I deduct there?
Most likely you are still eligible to claim your daugher as a dependent.
While she might live at different location close to schoiol - that is considered as temporary and she is still treated as living with you.
In additrional - you may deduct her medical expenses, health insurance, etc.
If theer are educational expenses - you might be eligible for educational deductions or credits.

Expert:  Lev replied 10 months ago.

I rehab houses. Sometimes I buy in one year and sell in another. Do you think it is better to claim the expenses in the same year the home is sold or when they are incurred?
That is not a matter of choice...
If houses are for sale to customers - that is your inventory.
Also regarding building cost which generally must be capitalized.
You are subject to the uniform capitalization rules if you do any of the following in the course of a trade or business or an activity carried on for profit:
-- Produce real or tangible personal property for use in the business or activity
Under the uniform capitalization rules, you must capitalize direct and indirect costs incurred during the pre-production and pre-sale periods in addition to the actual production period.
See for reference
https://www.irs.gov/Businesses/Cost-Segregation-Audit-Technique-Guide---Chapter-6.1-Uniform-Capitalization

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