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Recent IRS Audit questions

I bought a townhouse for 69K five years ago for my daughter.

I bought a townhouse for 69K five years ago for my daughter. She made payments to me for 3 years then moved. I paid her 12K for her equity and then rented the place for two years. I am now selling for the place for 82K. Will I have to pay capitol gains and if so on how much?

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Mark Taylor

Certified Public Accountant

Masters

3,376 satisfied customers
Work Related expenses: What are the per diem requirements?

Work Related expenses: What are the per diem requirements? What I am looking for is to determine when to use actual expenses vs per diem rates. Is there anything in the rules that one has to do actual vs per diem? Is it better to use the per diem than use the actual expenses? If an employee is working out of the state of their home base, can they just do the per diem? And can it be used only for work days and not the down time? For example: worked 6 days off 1 day. Do they use 7 days or 6 days?

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Lev

Retired

Bachelor's Degree Equivalent

24,832 satisfied customers
Is a person there now? Are you a real person? I am an

Is a person there now?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Are you a real person?JA: I'm an assistant to the Accountant. I work with them to help customers like you.Customer: I am an employer. I missed filing a required 1099 for 2014. We have received notice of IRS audit for 2014 corporate return. Should I file the late 1099 now?JA: Is there anything else the Accountant should be aware of?Customer: no

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Mark Taylor

Certified Public Accountant

Masters

3,376 satisfied customers
I'm looking for an idea of how the payroll Form 941 matches

I'm looking for an idea of how the payroll Form 941 matches up to payroll as shown on an S-Corp return.This is an S-Corp with 1 owner and 2 employees.The confusion comes into play with owner health insurance and employee 401k contributions.This example will be close to actual numbers.Owner makes salary of $90k. Also, the company paid $5k for owner's health insurance premiums and the owner/employee also made $6k of 401k contributions. So W-2 box 1 should show $89k ($90k + 5k - 6K = $89k). The other two non-owner employees salary totals $140k with no employee 401k contributions.So I assume on the 1120S line 7 compensation of officers will show $95k. Line 8 salaries and wages will show the $140k. Correct?Also, on Form 941 for the total wages paid for the year will the amount be $235k ($90k +5k +140k)? I assume the $6k of employee 401k deferrals is excluded.Just looking to make sure there are no red flags if amounts between the 1120S and Form 941 don't match up correctly.Thanks!

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taxmanrog

Master's Degree

1,148 satisfied customers
My girlfriend and I just had a daughter this last June.

My girlfriend and I just had a daughter this last June. Before that, we were split up. When our daughter was born, both of them moved in with me. My girlfriend and daughter were both on Medicaid due to her pregnancy and complications. My girlfriend did not have an income the whole year. Would I be able to claim both or one of them? Will it affect me somehow because they were on medicaid? I did make over 70K for the year.

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Mark Taylor

Certified Public Accountant

Masters

3,376 satisfied customers
Can you give me info. on an investment I made in Mexico and

Can you give me info. on an investment I made in Mexico and loss Is it deductable on Income tax ?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I invested $250,000 with Capital Bank Mexico in 2009 in CD's I was notified that the man who owned the Bank was arrested and there was no Capital Bank Mexico. Can I claim this loss on My income taxJA: Is there anything else the Accountant should be aware of?Customer: If it can be claimed , would it be an investment loss or a theft loss?

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Mark D

Master's Degree

1,042 satisfied customers
I have been selected for an IRS audit. I have been asked to

I have been selected for an IRS audit. I have been asked to provide (mail in) documentation for my Employee Expenses Deductions and my Miscellaneous Deductions. I have been audited for the 2014 tax year. I have some of the documents, but not all. What should I do?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

5,354 satisfied customers
I have a tax question and would like to tax to a tax lawyer

I have a tax question and would like to tax to a tax lawyer or a lawyer familiar with tax issues?JA: What state are you in? It matters because laws vary by location.Customer: I'm in Utah, but this is an IRS issue on the federal level.JA: Has anything been filed or reported?Customer: Yes, I'm going through an IRS audit and I just have a question I need guidance on.JA: Anything else you want the lawyer to know before I connect you?Customer: It has to do with start up costs being capitalized over 5 years and what would constitute start up costs vs. losses for the year...JA: I'm not sure of the exact price, but there's only a $5 deposit. The rest of the price information will be on the page I send you to.Customer: Ok Is there a lawyer online available now?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,068 satisfied customers
I'm considering driving for Uber around 12/26/16. My first

I'm considering driving for Uber around 12/26/16. My first pay check will be around 1/3/17. I'm going to pay / buy the following BEFORE I start driving so I can claim these expenses on my 2016 tax return. I'll claim the STANDARD mileage for miles driven. Here's what I'll be buying BEFORE I start driving (buying in 2016)Rideshare auto insurance (around $1,000)Bulk water's and gums for clients (around $200)Reverse light camera for my car (around $100)Car seat covers (around $200)..this adds up to around $1,500 in total and because I won't start driving until the last week in December,2016 and get paid for that week in January, 2017 I'll be showing Schedule C expenses of $1,500 and income of $0. My question is: will it look weird that I started a rideshare business, accumulated $1,500 in expenses but $0 in income? I only ask because no-one, including me like the hassle of IRS audits!

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ABC Accounting Group

Bachelor's Degree

988 satisfied customers
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