Professional Documents
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Disclaimer
This seminar and materials provided are for general educational
purposes only.
Your attorney and accountant should be consulted regarding
except spouse of a member of the US military No payment was mailed after December 31, 2008 The payment is different:
Net income tax is less than $600 for single, $1,200 for couple AGI is more than $75,000 for single, $150,000 for couple The taxpayer owes back taxes
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Tax problems
benefits up to an additional 13 weeks) Public Assistance and food stamps is not taxable. Withdrawals from your pension plan or retirement plan are taxable unless they are transferred to a qualified plan in 60 days. If under 59 1/2 , an additional tax may apply (10%). Certain expenses incurred while looking for a new job may be deductible (Schedule A 2% AGI limitation)
Typing, printing and mailing copies of resume Making phone calls Buying papers Travel for look for work in your current occupation or attend an interview Distance test 58 miles Time test 39 weeks in 12 months
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single, $500,000 for couple of gain from the sale of main home. at least two years of the five years prior to the sales. Full cost of health insurance is deductible Schedule A HSA is deductible 1040 Can deduct tuition for educational credits May qualify for earned income credit
$38,646 - $41,646 AGI for > one kid $ 33,995 - $36,955 AGI for = one kid $12,880 - $15,880 AGI for no kid.
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home, or car, are not deductible. Generally, if you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purpose. 1099 C Debts discharged through bankruptcy are not considered taxable income.
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Tax Problems
If you cant pay taxes, still file tax on time and
pay as much as you can, then contact IRS to discuss payment options. The recovery rebate credit is a one time benefit for people who didnt receive the full economic stimulus payment last year Free legal representation can help with tax problem.
the year More tax knowledge you have, more money you save Have professional assist you to reach your financial goal
Basic Knowledge - Distinguish Gross Income, Adjusted Gross Income and Taxable Income
Gross Income Wages, salaries, tips, taxable interest,
dividends, business income (loss), capital gain (loss), IRA distributions, Rental real estate, unemployment compensation, etc.
Adjusted Gross Income Health savings account
deduction, moving expenses, of self-employment tax, self-employment retirement account deduction, selfemployment health insurance deduction, IRA deduction, student loan interest deduction, etc.
Taxable Income Itemized deductions or standard
deduction, exemptions
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Business Owner at the same time. There are three options for a business structures
self-employment
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Parking and Toll Auto loan or lease Payment Auto Insurance Gas, Maintenance, Repair Auto Depreciation Expense Parking and Toll
Travel Expenses
Air Ticket, Taxi, Shuttle Hotel & Meal Laundry, Telephone, Tips Baggage and Shipping
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Computer, Printer, Scanner, Fax Machine, digital & Video Recorder, TV Software Office Furniture, such as File Cabinet, Desk, Chair Telephone Sets and Cell Phone Sets
(Note:Can deduct entire cost if the business has enough income, otherwise, depreciate it)
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Online Office Annual Fee Books, CD, Video Flyer and Brochure Advertising Seminar Expense and Supply Cartridge, Ink, Toner Paper, Business Card, Letterhead Fax & Copy Postage Entertainment - Ticket to Event (Concert, Ball Game) Meals with Client/Prospect Gift for Client/Prospect CPA Fee Attorney Fee Training Expense Continue Education Magazine Subscription Convention Ticket
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Up to $5,150 per child, per year no tax Child over the age of 7, under 18 No tax due from the child Description for the job, hour and salary Home Office Portion Rent Insurance Mortgage Maintenance Telephone & Cell Bills Internet/Email/Website Service Bills Water & Electric Bill Oil & Gas Bill
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(LT gain at 15% rate, ST gain at ordinary income rate, LT & ST loss is ordinary income loss [3,000 each year]) Wash Sale is not allowed
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Being a Landlord
Related expenses
Advertising Auto and travel Cleaning and maintenance Commissions Insurance Professional fees Management fees Mortgage interests Repairs Supplies Taxes Utilities Depreciation
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than $25,000 Non deducted loss can carry forward to next year. Accumulated loss can offset the gain when property sells.
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it was owned and occupied as a principal residence for an aggregate of at least tow of the five year before the sale or exchange.
Eligibility
Must have owned the home Must have occupied the property Has not used gain exclusion during the prior two year period ending on the date of the sale.
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Separate business structure only the gain allocable to the residential portion is excludable Within the same dwelling unit, no allocation is required unless depreciation was claimed before
be reported as taxable gain Taxpayer who depart from a principal residence but do not immediately sell the residence are entitled to rent the property for up to 36 months before reaching loss of eligibility as a principal residence A loss on the sale of a principal residence is not deductible. However, if the residence is converted to rental property for 36 months before it is sold at a loss, the loss is deductible.
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owned the home for at least 2 years and lived in it as your main home for at least 2 years, you can exclude up to the maximum dollar limit. However, you cannot exclude the portion of the gain equal to depreciation allowed or allowable for periods after May 6, 1997. This gain is reported on Form 4797 (PDF),Sale of Business Property. Depreciation is not optional on a rental property. You should claim the full amount you're entitled to claim, since it is subject to recapture whether or not you claim it. (depreciation recapture rate 25%)
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outside of the U.S. are not considered property of a like kind. Time limit
must be identified within 45 days of the date of exchange must be received by the earlier of 180 days after the date of transfer
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your refund Only use a tax professional that signs your return and provides you with a copy of your record Choose a tax prepare that will be around to answer questions after the return has been filed Determine if the preparers credentials meet your needs Is an Enrolled Agent, CPA or Tax Attorney, If so, the preparer can represent taxpayers before the IRS on all matters. Before you sign your tax return, review it and ask questions.
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