Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

I meant 76000

Customer Question
I meant 76000
Submitted: 1 year ago.Category: Tax
Ask Your Own Tax Question
Answered in 1 minute by:
1/21/2016
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial & tax advice since 1986.

...

Hi - I can help here

...

A couple of questions which will facilitate the answer

...

(1) Are you the spouse or a non-spouse?

(2) have you already take a distribution from IRA?

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Let me know and we can from here

Ask Your Own Tax Question
Customer reply replied 1 year ago
It is my mothers Ira I am the son. I have not taken any other distribution
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Ok the you have two options, as a non-spouse beneficiary (hang with me here I want to pull up the regs)

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

First there's no 60 day rollover ... you should have the assets transferred to an inherited IRA (cleanest if you do it with the same custodian BUT you can move to another IRA custodian ... but you MUST do it as a direct transfer not a rollover)

...

Then after that's done, you can either (1) pull the dollars out over a 5 year period (only being taxed on what's distributed in any one tax year) - AND there's no 10% penalty on inherited IRAs for distributing under 59 and 1/2 ... It's only added to taxable income

...

or (2) you can also have it distributed over a life expectancy (also only being taxed on what's distributed in a given tax year)

...

The tax code and IRS regulations allow the beneficiary two sets of distribution options for non-spouse inherited IRAs: 1) If the IRA owner dies before the required beginning date (RBD), the beneficiary can distribute the assets within five years of the owner's death, or over the beneficiary's single life expectancy or 2) If the IRA owner dies on or after the RBD, the beneficiary can distribute the assets over the longer of the remaining life expectancy of the decedent or the life expectancy of the beneficiary.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Was your mother older or younger than 70 and 1/2 when she passed?

..

(This is that RBD date mentioned ... the date that would have to start taking Required Minimum Distributions)

...

RBD stands for Required Beginning Date

Ask Your Own Tax Question
Customer reply replied 1 year ago
I took it all in cash
Customer reply replied 1 year ago
My mother was over 90
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Oh my ... So sorry, this is all added to the taxable income for the year taken ... if it's no longer IN an IRA

...

The good news is that there's no additonal penalty (if you are under age 59 and 1/2)

...

But now you're left with essentially finding other tax deductions to help offset the income.

...

If you work, then you can always contribute more to your 401(k) ... If you are self employed you can contribute the max to a solo 401(k) or SEP ... and if you have no workplace plan you can contribute the max 5500, 6500 for those over 50) to an ira

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

But again, so sorry, there's no rollover allowed so getting back INTO an IRA doesn't work here.

Ask Your Own Tax Question
Customer reply replied 1 year ago
I am retired so what is my best option for decreasing the taxes
Customer reply replied 1 year ago
I am 72
Customer reply replied 1 year ago
I don mind paying some taxes but I don't like to get raped
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Please don't shoot the messenger here but the options are limited (again, because you've distributed the money)

...

Since you have no earned income, the options above don't apply.

...

As I mentioned above ALL of the options for limiting and/or deferring taxes on an inherited IRA begin with NOT distribution

...

you CAN still do a Roth IRA, but there's no immediate deduction for that ... you'll simply be deferring taxes on it's growth

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

SO what you have now is NOT inside an IRA?

Ask Your Own Tax Question
Customer reply replied 1 year ago
I thought I could give to my church the next question is how much could I give some to my children how much
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

That goes back to what I said earlier ... you'll have to fund regular deductions ... contributing to charity is always a deduction

...

There is the option for making a charitable beneficiary, but again, you've already taken a distribution ... Now er're just dealing with things you can do with that CASH that would create a tax deduction

...

And on the children there's no deduction there ... bet there IS the 14,000 per person per year that you should keep gifts to other UNDEER so as not to have to file a form 709 gift tax freturn

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

The amount you can deduct for charitable contributions can't be more than 50% of your adjusted gross income.

Ask Your Own Tax Question
Customer reply replied 1 year ago
I know that but I cannot deduct a gift and how much would I have to give to charity
Customer reply replied 1 year ago
Gifts how does that work I don't want to pay uncle sam what about my kids as a gift
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Then you're asking a questions that can't be answer any other way that the way I ansered it ... By taking the distribution in cash you've SEVERLY limited your ability to manage this

...

Again, you are limited to finding other tax deductions to OFFSET the income that an IRS distribution causes

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Gifts are not tax deductible

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

UNLESS given to a charity

Ask Your Own Tax Question
Customer reply replied 1 year ago
How much would I have to give to acharity
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

The amount you can deduct for charitable contributions can't be more than 50% of your adjusted gross income.

..

If you'd like to tell me the amount of your other income (and how you file ... married, single)I can then add the IRA to your other income to see what your AGI IS

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

The whateveto a charity r you DO give will benefit you based on your tax bracket ... to make the math easy ... If you are at the 25% bracket ... if you give 10,000 to charity, you will lower your taxes by $2,500

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

But remember ... until we get to a 100% tax bracket you can never create a deduction that offsets all of the taxes

...

Also, may be stating the obvious here, but don't let the tax tail wag the dog ... better to have 75,000 in your pocket after pying 25,000 in taxes, than spend a dollar to save 25 cents

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

let me show you what the taxes look like if this were your only income (I'm assuming your filing status is single with no dependents)

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Estimated Tax Analysis

Gross income$70,000

Qualified plan contributions-$0

Adjusted gross income=$70,000

Standard/Itemized deductions-$6,300

Personal exemptions-$4,000

Taxable income=$59,700

Tax liability before credits$10,719

Child tax credits-$0

Estimated tax liability=$10,719

... so you pay 10,000 in taxes to get this net 60,000 bank account

Ask Your Own Tax Question
Customer reply replied 1 year ago
I agree no it is married no exemptions I have about 27000 social security
Customer reply replied 1 year ago
That's what I say
Customer reply replied 1 year ago
I am married and no exemptions my social security is about 27000
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

So, from a purely FINANCIAL perspective, keep it all ... that maximizes your net [WORTH]

...

But if you want to lower the taxes ... you'll be spending (or giving away ) to save less than what you gave away.

...

The ONLY thing that makes sense is to find things that you would have given away or spent money on anyway

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Topic 500 - Itemized Deductions

The following topics are found in the category of Itemized Deductions. Each topic is followed by the corresponding topic number. To access your topic, select the three-digit number.

Should I Itemize?Topic 501

Medical and Dental ExpensesTopic 502

Deductible TaxesTopic 503

Home Mortgage PointsTopic 504

Interest ExpenseTopic 505

Charitable ContributionsTopic 506

Miscellaneous ExpensesTopic 508

Business Use of HomeTopic 509

Business Use of CarTopic 510

Business Travel ExpensesTopic 511

Business Entertainment ExpensesTopic 512

Work-Related Education ExpensesTopic 513

Employee Business ExpensesTopic 514

Casualty, Disaster, and Theft Losses (Including Federally Declared Disaster Areas)Topic 515

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

That's the FULL list of IRS itemized deductions ... each of those categories will break out to their list of deductions when you click on them

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

If you wanted to start a side business then buying equipment and furnishings for the business can be a deduction BUT if those assets don't CREATE income, then you've, again, just spent a dollar to save 25 cents

...

If you had earned income, then you could put money into a retirement plan ... and THEN that lowers your income and you KEEP the $ ... but that's not an option here

...

What your left with are things that ARE deductible that you actually need ... again, UNLESS, you just want to let the tax tail wag the dog as they say

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

I hope you'll rate me, using those stars or rating request on your screen, (that's the only way we get credit for the work here) based on thoroughness and accuracy, rather than any good news/bad news content ... But if there's something you don't understand, or if you have other questions about this, please let me know....

...

Thank you,

Lane

.

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 1 year ago

Hi,
...
I’m just checking back in to see how things are going.
...
Did my answer help?
...
Let me know…
...
Thanks
Lane

Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,885
12,885 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Is the interest one pays on a personal loan a tax deduction?
Is the interest one pays on a personal loan a tax deduction? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
If lease payments are being taken as a tax deduction can the
If lease payments are being taken as a tax deduction can the mileage method be used to account for other expenses? Or are you required to use actual expenses?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Form 886-A Deductible Home Mortgage Interest Taxpayer has
Form 886-A Deductible Home Mortgage Interest Taxpayer has $1,000,000 in Grandfathered debt. Line 9 Form 886-A - is this line amount after deducting the garandfathered debt… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Dose mean can not deduct state income taxes only or dose it
dose mean can not deduct state income taxes only or dose it includes property taxes too … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Are the following items tax deductible with regards to an SBA loan?
Are the following items tax deductible with regards ***** ***** SBA loan ? 1. SBA guaranty fee 2. packaging fee 3. Environmental expense ( towards environmental assessment ) 4. Appraisal fee What docu… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
Is the house or taxes deductible for him. How does it affect
Is the house or taxes deductible for him. How does it affect his taxes. How can the house be in both our names, without making me an equal partner.… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
32 satisfied customers
Form 1120, cash basis. If Taxes paid to IRS are deductible,
Form 1120, cash basis. If Taxes paid to IRS are deductible, are refunds for overpayment the equivalent of income?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
738 satisfied customers
I'm looking for help with tax deductions. I will be
I will be receiving a large lump sum this year. I want to know if there is a limit to how much state tax I can deduct for federal filing? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
What are tax rules for an inherited Roth IRA, GA, the
what are tax rules for an inherited Roth IRA JA: Since estate law varies from place to place, can you tell me what state this is in? Customer: GA JA: What documents or supporting evidence do you have?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How to handle a deduction for a charitable contribution for
How to handle a deduction for a charitable contribution for art given by the artist or creator of that piece of artwork? This refers to the "materials only" or cost of materials only caveat to the ded… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Two questions on federal tax deductibility: 1. We personally
Two questions on federal tax deductibility: 1. We personally paid legal fees for our manufacturer C Corp. The fees were for assistance in preparing a Research & Development tax credit application. Can… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
You may recall that tax deductions are only deductible by
You may recall that tax deductions are only deductible by the legislative grace of Congress. After this lesson, you might have realized that Congress was pretty generous with the types of business exp… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,490 satisfied customers
Are medical equipment purchesed tax deductable. I have been
I have been prescribed a portable oxygen generator is this equipment deductable … read more
abci168
abci168
Principal
27 satisfied customers
Can house maintenance and property taxes be deducted on form
Hello. Can house maintenance and property taxes be deducted on form 1041 for a house owned by decedent prior to the Executors selling it? … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
I would like clarification on the IRS tax deductions and a
I would like clarification on the IRS tax deductions and a rental property I purchased recently. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
IRS said the Roth IRA reported distribution was not held for
IRS said the Roth IRA reported distribution was not held for at least 5 years. It was. I was told I needed to send in a 8606 with my 2014 tax return. How do I go about doing that so I don't own the $1… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,885 satisfied customers
Since my adjusted gross income is over $100,000, I can't
Since my adjusted gross income is over $100,000, I can't take the rental loss that I have even though I was actively maintaining the property. Since I have a mortgage and property taxes on that rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Dependent Children. 1. Taxpayer's adjusted gross income is
Dependent Children.1. Taxpayer's adjusted gross income is over $ 800K so personal exemptions are phased out. 2. Taxpayer's children are between ages 12 - 17. 3. All three children have earned income o… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x