9th Annual Tax Thread - 2011

[gbeirn]

I am going to be buying a house next month, this would have no effect on my 2011 taxes correct? I can still file my 1040EZ one last time and then taxes for next year would involve anything with the house?

 

[EagleKeeper]

I am going to be buying a house next month, this would have no effect on my 2011 taxes correct? I can still file my 1040EZ one last time and then taxes for next year would involve anything with the house?

correct

 

[Mathlete]

I cashed in a small pension this year when I changed jobs. The value was ~$9000 and I took home ~$7200.

1) Am I going to get killed on taxes on this?
2) Thinking about using H&R Block TaxCut this year. Would the pension cause a problem?

 

[EagleKeeper]

What caused the 1800 difference - taxes withheld?

The pension distribution will generate a 1099 form. You will have to declare that form and the numbers on it.
Tax S/W will walk you through the pain and suffering. :twisted:

 

[Mathlete]

What caused the 1800 difference - taxes withheld?

The pension distribution will generate a 1099 form. You will have to declare that form and the numbers on it.
Tax S/W will walk you through the pain and suffering. :twisted:

Yes the 1800 was taxes withheld

 

[sactoking]

Justo wondering if anyone had a chance to look at my scenario a handful of posts up or if my question is too specific to answer due to liability.

 

[EagleKeeper]

Justo wondering if anyone had a chance to look at my scenario a handful of posts up or if my question is too specific to answer due to liability.

Beyond my scope

 

[sactoking]

Beyond my scope

Yeah, LLC/Partnership can get a bit weird, especially for people who concentrate mostly on personal issues.

In retrospect I believe I'm comfortable with everything except the $979 in Section 179 depreciation. I get the gut feeling that I should be able to deduct the expenses for furniture and computer equipment on Line 20 as Supplies Used and Consumed in the Business but research leads me to believe that I can't claim the items as supplies and have to depreciate them instead.

It's really only an issue insofar as which year I can take the loss/deduction. I'd prefer to accelerate it (obviously) but if I have to defer it I will.

 

[mwtgg]

Yeah, LLC/Partnership can get a bit weird, especially for people who concentrate mostly on personal issues.

In retrospect I believe I'm comfortable with everything except the $979 in Section 179 depreciation. I get the gut feeling that I should be able to deduct the expenses for furniture and computer equipment on Line 20 as Supplies Used and Consumed in the Business but research leads me to believe that I can't claim the items as supplies and have to depreciate them instead.

It's really only an issue insofar as which year I can take the loss/deduction. I'd prefer to accelerate it (obviously) but if I have to defer it I will.

Income/Loss, net of Section 179 expense, from the partnership will flow to the Form 1065 K-1 on line 1. Section 179 will then go to line 12 of the K-1. When you input the K-1 into your 1040, both amounts will go to Schedule E Part II. However, since Section 179 expense is limited to income, your 179 expense is zero. This will carryover on the partnership level until you have income, in which case it will flow through as I stated above.

That being said, you are accounting for the increase in the capital account, correct?

 

[sactoking]

Income/Loss, net of Section 179 expense, from the partnership will flow to the Form 1065 K-1 on line 1. Section 179 will then go to line 12 of the K-1. When you input the K-1 into your 1040, both amounts will go to Schedule E Part II. However, since Section 179 expense is limited to income, your 179 expense is zero. This will carryover on the partnership level until you have income, in which case it will flow through as I stated above.

That being said, you are accounting for the increase in the capital account, correct?

Yeah, I've got the capital accounts done properly on my GAAP books. Due to the LLC size I don't have to do a Schedule L or M-1/2/3 this year to reconcile balance sheets.

 

[EagleKeeper]

Furniture and computer equipment have to be depreciated. However, there is the ability to use the 179 for limited amount of direct write off and avoid the depreciation issues.

 

[ElFenix]

just like last year i'm finding websites using the tax tables rather than calculating taxes based on rates when the rates would be lower.

 

[edro]

FYI, you cannot file separate on state and joint on federal. (At least in Ohio)
I got a letter in the mail from my return 2 years ago. I owe $600.

 

[EagleKeeper]

FYI, you cannot file separate on state and joint on federal. (At least in Ohio)
I got a letter in the mail from my return 2 years ago. I owe $600.

This is true for most states. Filing status must match the Federal

 

[ni4ni]

I accepted a job in January. My office is located about 200 miles from my town. If I rented an apartment in the city where my office is, is it tax deductible? What if it is a requirement of the job?

If my job require home internet and cell phone, is that deductible?

 

[CPA]

I accepted a job in January. My office is located about 200 miles from my town. If I rented an apartment in the city where my office is, is it tax deductible? What if it is a requirement of the job?

If my job require home internet and cell phone, is that deductible?

if you are employed by the company, rather than a contract employee, you would have a difficult time proving to the IRS that the apartment is required and, thus, tax deductible.

if you work from home you can deduct the internet and cell phone to the extent they are used for business (you can't deduct the personal usage portion) and the company doesn't reimburse you. However, they would be considered a Schedule A itemized deduction and you can only deduct the amount over 2% of you AGI, and you must take the itemized deductions rather than the standard deduction.

 

[ElFenix]

just like last year i'm finding websites using the tax tables rather than calculating taxes based on rates when the rates would be lower.

per instructions for line 44 those with incomes less than $100,000 must use the tax table.

i wonder if that's legal as it imposes more tax than is actually levied in IRC section 1.

 

[hclarkjr]

anybody know what date the IRS starts processing efile returns?

 

[GoPackGo]

I make multiple non-cash donations through the year to a charity shop. In the past I have had to mail in a return since there were too many pages of 8283. Is it possible to to combine the dollar value of the donations to limit the 8283 forms and use "various" for the date field?

 

[ni4ni]

I work for state government but I also do some political consulting on the side. If I only make a small amount doing the consulting (ie 2k) can I still do deductions like home office and such?

 

[EagleKeeper]

anybody know what date the IRS starts processing efile returns?

The answer is in the OP

 

[EagleKeeper]

I make multiple non-cash donations through the year to a charity shop. In the past I have had to mail in a return since there were too many pages of 8283. Is it possible to to combine the dollar value of the donations to limit the 8283 forms and use "various" for the date field?

I would sum them up for each charity and stick a single date if you can not various

If you are asked to produce documentation - as long as the numbers add up; not an issue.

 

[EagleKeeper]

I work for state government but I also do some political consulting on the side. If I only make a small amount doing the consulting (ie 2k) can I still do deductions like home office and such?

Schedule C and you are good to go

 

[Mo0o]

Total tax noob here:

Got married last April. My wife and I make comparable salaries, we have similar student loan debt and no other debt or financial obligations. Should we file jointly or separately?

When it comes to student loans, if we're married, is the Adjusted Gross Income on the student loan repayment applications our individual income or our combined income?

 

[EagleKeeper]

Use tax s/w to determine. With salaries close, usually joint is better. Also, some educational deductions are not available for filing separately. When you became married I hope you adjusted the withholding levels.