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Recent IRS Regulation questions

Does tuition paid by a foreign Goverment employer in the us

Does tuition paid by a foreign Goverment employer in the us (embassy in this case) to the US Citizen employee's dependent as fringe benefits considered income subject to tax?

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Dr. Fiona Chen

President

Ph.D.

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What are the penalties making the minimum withdrawls from a

What are the penalties for not making the minimum withdrawls from a 401k and if it has gone on for 10 plus years what is the best remedy?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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This question is in regard to an LLC taxed as an S-Corp with

This question is in regard to an LLC taxed as an S-Corp with 1 owner.The owner built out the home office (around $50k) and paid for the construction using a line of credit in the LLC name. However, the house is obviously in a personal name and not the LLC name.My question is would it be better to list the home office capitalized costs on the 1120S as a company asset or use an accountable plan to reimburse the owner? If the answer is an accountable plan, would the $50k costs on the LOC be treated as a distribution or loan to shareholder or something.Thanks

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PDtax

Owner

Master's Degree

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I own a 4 unit apartment building. One unit is vacant. In

I own a 4 unit apartment building.One unit is vacant.In 2016 I plan to do :1. Replace existing kitchen cabinets , total cost ( labor + materials ) = $2,2002. Replace carpet floor to laminated floor , total cos = t $1,8003. Repaint unit , total cost = $1,6004. New kitchen appliances , total cost = $2,400My question is :Can I file for De Minimis Safe Harbor ( I do qualify ), and deduct all those expenses in 2016 , since each one is under the limit of $2,500 ?Or IRS will consider that I remodeled the unit at a cost of $ 8,000 and I need to depreciate each one according with the rules ?

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Angie

Bookkeeper

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Again Tyrone. According to some experts like Stephen

Hi again Tyrone. According to some experts like Stephen Fishman of NOLO here (http://www.smallbusinesslawfirms.com/resources/business/spouses-who-jointly-own-a-business.htm scroll down to section on "Spouses in Community Property States"), a business co-owned by a husband and wife residing in a community property state can report all of the business income under just one of the spouse's names on one Schedule C. Is this correct? It seems to contradict the Schedule C instructions on "Community Property" (here: https://www.irs.gov/instructions/i1040sc/ch01.html#d0e234). That's my first question.My second question is this: if my wife and I break our business income onto two Schedule C's (75% for her and 25% for me, according to our distributive shares), can we each set up a SEP-IRA for ourselves, hers based on the net business income on her Schedule C, mine based on the net business income on my Schedule C?Thanks in advance!

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Tax question:What is the deadline a refund

Tax question:What is the deadline for claiming a refund for tax year 2012?The filing deadline in April 2013 was April 17, 2016.Do we get an extra day added to the three years since April 17, 2016 is a Sunday?Or do we get three years up to the filing deadline for the current year which is April 18, 2016?Either way, both deadlines would be april 18, 2016. What is the official tax rule though?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

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I have been taking care of my father-in-law in my home since

I have been taking care of my father-in-law in my home since last June. He is a stroke/Parkinsons patient unable to take care of himself at any level. I quit working to stay home with him, therefore he pays me an agreed upon monthly amount to care for him so he does not have to go into a nursing home. I am not a nurse or have any formal training in any health care profession. Looking at the IRS regulations I am confused. I see in one place MAY need to report this as self employment income depending on the circumstances. However, in one of the examples they provide a spouse is not required to pay self employment taxes on money received from an insurance company for caring for an invalid spouse. The reasoning they give is the spouse is not a trained healthcare provider and is not in the business of providing healthcare to others. But, it does say the amount received needs to be reported as non-employee compensation based on the 1099-MISC form received. I didn't issue myself a 1099-MISC. (I also have full durable power of attorney over all his affairs because he is unable to manage them.) Am I stuck with reporting this as self employment income and paying the higher taxes? Or, can I report as other income?If you want to look at what I am, link below.https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Family-Caregivers-and-Self-Employment-Tax

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Angie

Bookkeeper

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I am about to purchase a home at 2,900,000. If my personal

I am about to purchase a home at 2,900,000. If my personal residence is my only office what should I be able to deduct--Questions:Can I deduct 1,100,000 as my maximum interest for personal loan --loan will be about 1,650,000If I use 1/3 of the of the house for busines - can I write off 1/3 of house payment?Can I write off 1/3 of utilities, property taxes and 1/3 of everything else related to operating the house?Is there any additional advice I should know

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Angie

Bookkeeper

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462 satisfied customers
I (Venkata) am on H1B visa.My wife is on F1 visa. My wife

Hi. I (Venkata) am on H1B visa.My wife is on F1 visa. My wife got scholarship from her university(SJSU) last year (Jan - May 2015). It is reported in 1098-T form as $11k. It is also reported in 1042-S by SJSU research foundation as $15k though. Somehow both the values are different though it was the same income. What happened in 1042-S is it reported an extra month i.e Dec 2014 income. This is what my tax advisor says. Since there are two forms do I need to report it twice .It doesn't make sense to add income that did not exist and get taxed). Also the taxes reported on 1042-S where do we report it ?

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Robin D.

Vocational, Technical or Trade School

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