A client had a question for me about depreciation. His car
A client had a question for me about depreciation.His car was totalled this year and he purchased a new one cash with the money from insurance. He has an LLC;. He was wondering best way to hold the car.a) personallyb) under his LLC so he can deduct depreciation and have the business pay all expenses on the vehicle?- He spent $12,900 on it including taxes and fees. He paid cash it's not financed- HE will probably use it 60% personal and 40% for business (probably 6,000 miles a year)- he is planning on keeping the car for 2 years1) I do not think it matters where he "holds" the car. Depreciation would be based on percent of mileage, correct? Does where he claims the car is owned makre any difference?2. Based on data given how muich depreciation could he take for two years. Would this be more advantageous thatn Milleage???Mileage would be approximate 6000 miles x 54 cents per mile x 2 years = $6480 for 2 years.Is there any special or bonus deprecation? What do you estimate depreciation to be for this situaiton?
My wife and I have always filed joint returns. However, she
My wife and I have always filed joint returns. However, she died in May and I am wondering if it would be to my advantage to file separate returns this year. Here's why I ponder this change. She received a retirement package from her employer in the amount of $30,000 in January. Social Security payments would make her gross income about $45,000. My income will be about $100,000, including Social Security. We will have property tax deductions in the amount of about $12,000. The critical question for me comes from the medical expenses I will have paid this year–about $20,000 for her and $14,000 for me. Would I save by making that large medical deduction for her on a separate return as explained above? Thank you.David HoevelerJA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: No.
IRA has mutual fund with recognized capital losses. Wife and
IRA has mutual fund with recognized capital losses. Wife and I are both 57.I believe that gains and losses are not relevant. My hope is that I could trade out of it and keep the loss so I could match and have tax free withdrawals. Can that work?
Looking for a quick help from a CPA around building a trust
Hi, My name is***** for a quick help from a CPA around building a trust and CA Beneficiary Taxation rulesJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Okay, I live in CA. I am working on my will and trust formation. I have given 3 people as successor trustees after my days and 2 of them live outside of CA. My lawer asked me to get clarification from a CPA about the CA Beneficiary Taxation Rules that will effect teh CA taxation of my trust in light of 2 out of state person designated as successor trusteesJA: Is there anything else important you think the Accountant should know?Customer: nope
Sr Financial & Tax Consultant
My k-1 (1120s) incorrectly reported ordinary income as
my k-1 (1120s) incorrectly reported ordinary income as non-passive on the attached supplemental schedule (they filed the attachment with their 1120s filing). Is it necessary for them to amend the return to correct the designation (non passive to passive) - does the irs crosscheck the supplement info against what is filed on the 1040- if the S corp doesn't amend and I report as passive, then will it be a red flag? Note, this activity was non-passive the prior year, but this year, I did not material participate. Is that another red flag - I do have a CF prior year passive loss I could take advantage of if this is corrected. please only answer if you are confident with your answer.
This question is for Lane. I have a divorcee who paid me to
This question is for Lane.I have a divorcee who paid me to do some consulitng. I am an EA. I recommened she wait and do nothing about an old payroll tax debt incurred when she was married. Her husband was assigned debt by divorce decress, but has not paid yet. The IRS SOL is 2018, and I recommended she do nothing. If the IRS contacts her, a response will be needed. She signed no 2848 POA for me. I do not know that she will ever further employ me. She is hoping IRS will not remember her or her husband will pay.. Her husband was in CNC status.Her husband has contacted me to do his 2014 and 15 taxes. I see no conflict of interest here at this point. Do you see any problem?It is possible I will represent her husband later. He plans to pay off the debt to IRS which would free up his ex. So there is no confliict of interest. Do you agree?
JD, MBA, CFP, CRPS
I'm wanting to file an S corp but want to report as little
I'm wanting to file an S corp but want to report as little income as possible because my student loan repayment is based on my personal return. I'm considering starting a business in my wifes name, paying her business to manage my clinic, and both of us filing married but separate income taxes.
I have a question regarding an S-corp whom is a partner in a
Hi Pearl, i have a question regarding an S-corp whom is a partner in a partnership.JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Tax Payer is an SCorp.Tax payer is also a partner in a partnership. In 2014 Thepartnership had income of $50,000, it also had section 179 in the amount of$125,000. In the Partnership K1,they were only able to take Sect 179 in theamount of $50,000 and the remainder $75,000 was disallowed and carried over tonext year due to business income limit. The SCorpon the other hand had profits inthe amount of $200,000 for 2014. My questions are, can the SCorptake the$75,000 in disallowed section 179 that the partnership was not able to take due tobusiness income limit? And if so, how would I deduct that on the tax return.JA: Is there anything else important you think the Accountant should know?Customer: did you get my question?
I retired this year and am receiving a lump sum distribution
I retired this year and am receiving a lump sum distribution from an excess 401k plan/ Non-qualified plan. I thought it was eligible for rollover, but it is not. What kind of options are there to lower the taxes?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: I retired in September
Sr Financial & Tax Consultant