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Recent tax 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

 
16,276 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

 
20,248 satisfied customers
How do I deduct a loss from a 1099-R annuity distribution?

How do I deduct a loss from a 1099-R annuity distribution?

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 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

 
16,276 satisfied customers
I've made penalty free withdrawals from my non qualified annuity

I've made penalty free withdrawals from my non qualified annuity for several years. All prior tax due related to these withdrawals has been reported and paid. Currently there is a gain of approx. $25.00 and a remaining cost basis of approx. $13,000.00. If I surrender this annuity shortly the surrender charge will be approx.$1,300.00. How and where do I report the $1,300.00 cost basis loss?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,276 satisfied customers
I owned a minority share of an LLC that sold in 2015. The base

I owned a minority share of an LLC that sold in 2015. The base value was $295,183. The adjusted value after fees (-$17,786) and escrow (-$40,060, which will be distributed in 2016) was $237,337. I reinvested $140,000 in the purchaser, a holding company and received $97,337 in cash. Will I need to only pay taxes on the cash distribution or will tax payments be required for the total value?

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BK-CPA

Bachelor's Degree

 
972 satisfied customers
I received a 1099-Mis with an amount in box 7

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

 
20,248 satisfied customers
I have been informed that a portion of the non refundable entrance

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
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