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Recent Income Tax Deduction questions

Tax question on 529 plans. In 2006, I opened 529 plans for

Tax question on 529 plans. In 2006, I opened 529 plans for both of my young children. We were living in the state of Kansas at the time and Kansas allowed us to deduct $3000 per child from our income for the Kansas. based 529 investments. This year 2017, I plan to cash in and use both of the 529s as regular income. It turns out, my father in law was saving for my kids and has 528s for them too. And I could really use the cash this year. I know I will pay a penalty on the gain in my accounts. But I moved to Ohio in 2007. My question is how this will impact my state taxes if I cash them in (for non-college use)? Will I owe a penalty to Kansas for the tax break they gave me for these investments back in 2006? Those tax returns are long gone now. Thanks for your help.

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PDtax

Owner

Master's Degree

7,972 satisfied customers
I am confused about the deduction of burial expenses.

I am confused about the deduction of burial expenses. Apparently these expenses cannot be deducted for income tax purposes on form 1041. However schedule J on form 706 - Estate Tax return indicates "they are allowable as an income tax a deduction on Form 1041......, if a waiver is filed to forgo the deduction on Form 706". This estate's only asset is the proceeds from a life insurance policy that will be distributed to the decedent's minor children thus a Form 706 will not be filed. AThe question: may or may not burial expenses be deducted for income tax purposes.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I am the accountant

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Lev

Retired

Bachelor's Degree Equivalent

25,422 satisfied customers
Can you expense an equipment purchase (Dump Truck) in the

Can you expense an equipment purchase (Dump Truck) in the year of purchase. The business is truck hauling.

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Lev

Retired

Bachelor's Degree Equivalent

25,422 satisfied customers
I want to gift to my son 150,000 for him to put down as a

I want to gift to my son 150,000 for him to put down as a down payment on a house. I have a revocable trust . My question is can I save any tax money on this gift when I die. The tax rate is 41% currently. That would be $61,500 on this gift. Is there any way to not pay this much or will I owe any taxes at all since I have a revocable trust? My total estate amount is under the current amount allowed to be taxed.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,134 satisfied customers
A self employed person that receives alimony needs to pay

a self employed person that receives alimony needs to paytax on the alimony.question : what about social security self employment tax,does one need to pay the self employment tax on thealimony payments received ?

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Charles Markham

Principal

Masters Science Taxation

770 satisfied customers
I am a small business owner and our state is considering

I am a small business owner and our state is considering legislation to impose a capital gains tax. The legislation provides the following exemption for businesses.:(6) Property used in a trade or business if the property32qualifies for an income tax deduction under Title 26 U.S.C. Sec. 16733or 179 of the internal revenue code;Am I reading this correctly, this exemption applies primarily to fixtures and equipment that is depreciable and not to good will, customer list, brand, etc.?

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Dr. Fiona Chen

President

Ph.D.

1,036 satisfied customers
I paid in 2015. In 2016 I am not in but see a credit for

I paid AMT in 2015. In 2016 I am not in AMT but see a credit for prior years minimum tax. Can you explain why I am getting a credit?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,134 satisfied customers
I started a personal training / coaching business in 2016 -

I started a personal training / coaching business in 2016 - I purchased quite a bit of equipment, and obtained professional certification, etc... I have a couple clients and working toward it being a full time business. ( I also work a full time job which I get a w2 for ) - I am planning on filing a Schedule C for the income I made, but unsure how to claim the investments in equipment. depreciate or expense?JA: Which tax year is this for?Customer: 2016JA: Anything else you want the Accountant to know before I connect you?Customer: no that's it - pretty straightforward

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Lev

Retired

Bachelor's Degree Equivalent

25,422 satisfied customers
ONLY ONLY ONLY…THANK YOU California Personal Tax Return for

Emc011075 ONLY ONLY ONLY…THANK YOUCalifornia Personal Tax Return for year 2015…a check was written to the Franchise Tax Board for $2,500 in April 2015. The Franchise tax Board wrote back a check of $1,000 because of an error…I paid too much.I Received a refund check from the Franchise Board in 2016 for $1,000 and also Form 1099-G.While doing the Personal 1040 Federal tax return for 2016 1040 I reported the $1,000 as income line 10-Taxable Refunds. I itemized on Schedule A for 2015 and will itemize again in 2016. The tax software automatically transferred the $2,500 paid to the Franchise Tax Board in 2015 to Schedule A Line 5 Income Taxes for 2016 as a deduction.QUESTIONI'm reporting the $1,000 on 1040 line 10 as Tax Refund Income in 2016. Do I need to manually reduce (Override) by $1,000 on Schedule A line 5 Income Tax Deduction of $2,500 down to $1,000 since I received a refund in that amount and therefore the deduction should be eliminated?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

5,736 satisfied customers
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