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Recent Revenue Ruling questions

If a business buys a builidng and there is an oil tank and

If a business buys a builidng and there is an oil tank and other remidition things that need to be done after the building is purchased, should that amount be depreciated, expenses or just added to the basis of the building purchase?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,290 satisfied customers
I am a consultant and I live in CA. I work as a consultant

I am a consultant and I live in CA. I work as a consultant in FL. I am paid my salary and the company pays my expenses. I am coming up to my year on the project and I do not want to be tax compensatory. Do I need to take a break for 21 days and more than 100 milesJA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I am trying to find the IRS codeJA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.

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Robin D.

Vocational, Technical or Trade School

20,962 satisfied customers
I'm retired (60 y.o.) and my wife works part-time in real estate.

I'm retired (60 y.o.) and my wife works part-time in real estate. I'm using TaxAct to prepare our 1040 and Schedule C. I have been watching the interplay between her business deductions and the EIC. It seems that at our low income level, the increase in her SE tax is less than the increase in the EIC. Therefore as her deductions rise our refund diminishes. Never encountered this issue before. My question is this: does the IRS require us to take all deductions or can we decline to take then in order to maximize the EIC? I thought I had read somewhere that the IRS had managed to force deductions when it was to their advantage.PS: I still have an active CPA license - but I was in private industry (i.e. not a tax guy).

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Lev

Retired

Bachelor's Degree Equivalent

24,192 satisfied customers
My husband was a named victim in a Ponzi Scheme. The

My husband was a named victim in a Ponzi Scheme. The individual accused of the crime was first arrested in September of 2011, where he remained in custody until August of 2012, when made bail. He remained free on bail until May of 2013, when he was arrested again and more charges were added to his indictment. He posted bail that same day and again remained free on bail until his trial ended in conviction and he was remanded in July of 2014. All of this has led to a great deal of confusion on my husbands part as to how and what to claim and what year to claim it in on his Federal return. Could someone please advise? I have looked at many, many IRS publications and visited with quite a few unqualified tax "professionals" and still have no answer.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,290 satisfied customers
I received a 1099-Mis with an amount in box 7 of an

Hi,I received a 1099-Mis with an amount in box 7 for cancelation of an apartment lease. I was in an apartment building and it bought was out by another company. The buying company gave us cash for moving out. The lawyer of the buying company issued us a letter stating that the proceeds qualify under the "Cancellation of lease or distributor's agreement - Section 1.124-1. and included two court cases.The issue is that the buying company reported the amount in box 7. How do I disclose to the IRS that these are capital gains and I should not be paying SE tax on it (my concern is that the IRS will automatically associate box 6 with SE tax)?Also, if these are truly capital gains, where should I report them? Are they qualified capital gains?

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Robin D.

Vocational, Technical or Trade School

20,962 satisfied customers
I have been informed that a portion of the non refundable

I have been informed that a portion of the non refundable entrance fee to the Continuing Care Retirement Community in which I live may be deductible as medical expense. The CCRC management has calculated that portion to be 24% of the fee. The fee paid was$259,000. This would make the deduction $62,000. Coupled with the other deductible medical expenses, that item alone will exceed my total annual income. I cannot believe the IRS will accept.For reference, the basis for the deduction is cited as IRC Section 213, Revenue Rulings 75-302 and 76-481. A legal case FINZER Vs U.S. is also cited.What is your opinion as to the deductability and, if permisable, how does one proceedwith the tax return and the large refund that will result?

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Jesse Handel

Tax Preparer and Chemist

Bachelor's Degree

396 satisfied customers
Thank you, Robin. I cashed out two whole life/variable life

Thank you, Robin. I'm Robert. I cashed out two whole life/variable life insurance policies last year to help make a down payment on our new primary residence. The policies had been in force for over 25 years. I did expect the growth portion of the cash-out to be taxable. However, I did not expect it to be taxed at the same rate as ordinary income. How can it not be taxed as long-term capital gains?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,290 satisfied customers
My name is ***** *****. I plan to withdraw money from my

Customer: Hi my name is ***** *****. I plan to withdraw money from my 401k I am 57 and the company I worked for and sponsored the 401k was sold. I am employed by the purchasing company. Will I owe the 10% penalty? JA: Thanks. Can you give me any more details about your issue? Customer: IRS regulations state that if you are terminated, quit or no longer employed and over 55 you are not required to pay the 10 penalty for pre 59.5 401K withdraws. Will this apply to me if my 401k is terminated when the company I worked for was sold to a new entity? JA: OK got it. Last thing — JustAnswer charges a fee (generally around $32) to post your type of question to Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. Are you willing to wait a bit? Customer: Sure JA: OK. Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.

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Lev

Retired

Bachelor's Degree Equivalent

24,192 satisfied customers
My name is ***** *****. , I was convicted of embezzling

Customer: My name is ***** *****. JA: Thanks. Can you give me any more details about your issue? Customer: I was convicted of embezzling $250,000, which I declared as income on my tax returns. I am making payments for restitution to repay them. Can I deduct these payments on my tax return? Otherwise it is kind of like double taxation. JA: OK got it. Last thing — JustAnswer charges a fee (generally around $32) to post your type of question to Tax Experts (you only pay if satisfied). There are a couple customers ahead of you. Are you willing to wait a bit? Customer: Yes JA: OK. Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.

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686 satisfied customers
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