US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Captain Beans posted:

They go on schedule A and count as tax prep fees.

If you use the standard deduction you don't need to worry about them.

there's also a 2% AGI floor, so he's most likely out of luck twice over

# ¿ Mar 6, 2011 05:15

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# ¿ Apr 28, 2024 22:33

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Tortilla Maker posted:

In the past I wasn't required to itemize my charity/educational donations. This year it doesn't give me any other option.

Is this new?

If I only made contributions totaling between $1,000 and $1,500, is it worth going through my bank statements to find all the donations?

Nobody knows what you're talking about because you didn't say what tax software you are using. If your total itemized deductions (incl. charitable donations) are under $5700 then it doesn't matter what you put since you'll end up taking the standard deduction anyway.

# ¿ Mar 23, 2011 02:21

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

AbbiTheDog posted:

2 1/2 hours before I shut my door, go home, and get drunk. ARRRGHH what a year.

mazel tov buddy, drinks are on me if you end up in SE PDX somehow

# ¿ Apr 19, 2011 01:50

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Friend of mine filled out her check to the Oregon DOR wrong, and ended up shorting them by eleven bucks. Should she go ahead and send a new check, or wait for them to bill her?

# ¿ May 4, 2011 21:03

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Missing Donut posted:

Just curious, who advised you to set up an LLC to 'take advantage of deductions and such' and what deductions and such are you anticipating taking advantage of under the LLC that you couldn't otherwise?

The fees to set up the LLC, duh :rolleye:

# ¿ Jun 8, 2011 14:50

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Yeah that's what REG is all about. There's no testing on SALT though, and CPAs all love doing that, so vOv

# ¿ Jun 13, 2011 19:12

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Please don't use "raped" to describe something that is not rape, thanks

As for your question, you are sending money from yourself to yourself which is not a taxable event. It's over $10k so the bank may have you fill out some forms though.

# ¿ Jun 18, 2011 00:20

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

He's calling it a loan, so if he's charging below the required rates then there could be an imputed interest issue too I guess???

# ¿ Jun 18, 2011 05:06

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

I don't know anything about Japanese tax law so I have no idea. The dad is not in the US and therefore our rules do not apply.

Welp somehow that escaped me. I just assumed that everyone was a US citizen because I am bad at reading posts.

# ¿ Jun 18, 2011 06:48

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

Infinity?

Also, I find it amusing to hear of someone who thought they were going to be 1099 and ended up an employee. The other way around happens thousands of times a day but this may be a first that I have heard of!

Happened to my brother, I posted about it a couple of pages back. He got a W-2 instead of his partnership getting a 1099. That was a fun one.

# ¿ Jun 23, 2011 19:08

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Penalties for willful failure to file an FBAR start at the greater of $10k or half the account balance. Enforcement actions in this area have been aggressive. This is not one to blow off, I assure you. http://blog.pappastax.com/index.php/2010/10/20/19508/

# ¿ Jul 5, 2011 21:02

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Yeah you'll file in 2012 since you had the account in 2011. Glad to help

# ¿ Jul 5, 2011 23:59

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

For 6 months I have been trying to get a nonprofit I volunteer for to take out the line from their newsletter about "volunteer and get a tax deduction for your time!" :sigh:

# ¿ Aug 2, 2011 23:45

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

The client doesn't have to pay any taxes no matter where he lives because the 16th amendment was never actually approved, hth.

# ¿ Sep 15, 2011 01:25

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

Nah, they still owe state taxes, just not federal. At least under that argument.

Well yeah but there's gold fringe on the state flag in the courtroom so

# ¿ Sep 15, 2011 04:36

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

AbbiTheDog posted:

Looking for a tax season temp right now, I don't need the overhead of another staff all year long.

if this is for real, shoot me a PM, I have passed 2/4 CPA exams, got A's in my tax classes, and am not legally retarded

# ¿ Nov 10, 2011 00:36

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

entris posted:

Who the gently caress invests in Iraqi dinars?

LOL

people who don't google "<x> scam" before investing all their money in <x>, apparently

# ¿ Dec 2, 2011 19:25

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

notMordecai posted:

Just a quick simple question:

I recently got a job in June with a major insurance company with a major HQ in San Antonio, Texas. Because the campus property is so large (and part of it underground), all mobile carriers' signal (except AT&T) is basically non-existent in about 75%-85% of the building.

I found out that the company pulled a deal with AT&T to set up their antennae around and inside the building. Most of the employees have AT&T phones because of this. I recently dumped my Nexus S on T-Mobile and bought a brand new iPhone on AT&T just to be able to have a usable phone between the hours of 7am and 6pm.

Can I write this off as a work related expense? If so, would I need to do anything specific?

Personal expense, not deductible

# ¿ Dec 5, 2011 07:29

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

psydude posted:

rear end-raped

Don't do this

# ¿ Dec 16, 2011 20:06

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

I don't know, but then I don't do RAL's so I wouldn't necessarily know.

the big places still offer something like this. HRB's page says "offer expires 2/04/12", maybe that's when the legislation kicks in? http://hrblock.com/offices/tax-services-refund-options.html

# ¿ Jan 6, 2012 22:46

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

entris posted:

Ok tax nerds here is a question that I am working on:

Person A is blackmailed by Person B, who threatens to publicly disclose damaging personal information about Person A's sexual activities unless Person A pays X dollars.

Person A pays Person B X dollars.

Did Person A just make a taxable gift for gift tax purposes?

My thinking is no, because payments pursuant to extortion/blackmail are clearly theft losses for income tax purposes, and I don't see how a transaction giving rise to a loss deduction could also be a taxable gift.

What do you guys think?

agree with Furu, it's a 165 loss for Person A and ordinary income (or Schedule C income????) for Person B.

# ¿ Jan 13, 2012 22:18

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

entris posted:

Man, you guys are so boring. My supervising partner has taken the initial position that it's a taxable gift because it is a transfer made without adequate consideration.

Does it change your opinion if Person A and Person B used to be in a (non-marital) relationship and now aren't?

pretty sure it still counts as theft duder. try rev rul 72-112.

# ¿ Jan 13, 2012 22:34

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

AbbiTheDog posted:

You can't claim a deduction for illegal activities.

Example - you're a heroin dealer. You need to pick up and pay taxes on your sales income, but you are not allowed to deduct as a cost of goods sold the cost of your H.

making payments to a blackmailer is not a crime as far as I know. also as a heroin dealer you aren't entitled to ordinary expenses, but you are absolutely allowed to deduct COGS to arrive at gross income on Sch C.

# ¿ Jan 14, 2012 01:32

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

No I'm pretty sure that you are not allowed to deduct ANY expenses associated with illegally gained income.

yeah but COGS isn't an expense, it's a component of gross income. from some journal:

quote:

In accordance with Reg. [section]1.61-3(a), drug dealers compute gross income by subtracting cost of goods sold (cost of sales) for the tax year from total sales of the period. Thus, no differentiation is made here between legal and illegal activities when determining gross income. Cost of goods sold is merely characterized as a negative item of income, not a deduction item. This convention appears to generate a taxable income for drug dealers that is reduced by cost of goods sold.

The definition of gross income simply entails total sales less cost of goods sold. Drug dealers are precluded from deducting any expenses incurred in this illegal activity; however, the IRC fails to change the general definition of gross income regarding drug dealers.

# ¿ Jan 14, 2012 01:38

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Admiral101 posted:

Extortion isn't illegal in the US? Real question.

extortion is a crime, being extorted is not

# ¿ Jan 14, 2012 02:42

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Konstantin posted:

If I decide to 'stake' a player in a poker tournament, paying part of his entry fee and getting a portion of his winnings, how do I treat this income? Do both of us have to pay taxes on it?

Taxable to the staker/horse in proportion to the agreement. If your horse cashes, have him give Form 5754 to the casino so that they can send everybody W-2Gs with the correct amounts.

# ¿ Jan 15, 2012 05:10

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Pope Mobile posted:

I'm still waiting for some other stuff to come in (forms on a pittiful amount of company stock) but after putting in my W-2 information, the tax service I'm using says I'm going to owe $436. Why?

why not?

# ¿ Jan 27, 2012 19:40

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

LorneReams posted:

Down with ADP

#occupypaychex

# ¿ Jan 27, 2012 23:35

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Saint Fu posted:

Do I have to pay taxes on cash back I receive from credit cards? If so, should I expect 1099s from them?

the IRS decided they didn't want to hound people about their cash back, FF miles, etc, so they don't make companies send 1099s for them. you should be fine leaving it off.

# ¿ Jan 28, 2012 01:52

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

Not only that, they specifically declared that credit card rewards are not income.

oh yeah? I saw the announcement about FF miles but I didn't know they'd made up their minds about straight up cash rewards. was this a PLR?

# ¿ Jan 28, 2012 02:08

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

hey here's my printout from Etrade with all the basis information, that's okay right? I mean half of it says UNKNOWN but you're a CPA you can figure it out. okay bye!!!

# ¿ Jan 31, 2012 03:51

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

Advice posted:

I had a roommate for all of 2011 that was paid under the table, and won't be filing a return this year. Can I claim them as a dependant/HOH? Since there's no record I didn't pay 100% of our rent/living expenses?

no to HOH since you're not related. but you can take a dependency exemption, as long as you're ok with filing a fraudulent tax return

E: also this is not a risk-free gambit. people who pay employees "under the table" often like to deduct their wage expense, which means issuing 1099s, which means you'd both be hosed.

scribe jones fucked around with this message at 21:07 on Feb 2, 2012

# ¿ Feb 2, 2012 21:01

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

AbbiTheDog posted:

Uhhh.....

Might want to re-read circular 230 in regards to giving tax advice that would not reasonably be sustained under audit....

my posts itt are for novelty purposes only. no cash value, offer void where prohibited, seek medical attention if you experience an erection lasting more than four hours.

# ¿ Feb 2, 2012 22:23

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

Not your debt, 1099 isn't issued under your name or SSN, it doesn't go on your return. Ignore it.

I'm guessing he (or the "estate") will get a CP2000, right? Not that it matters since the estate wound down.

# ¿ Feb 3, 2012 04:10

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

sublyme posted:

I have a 1099-misc form for $715 I received at my work for using my own personal laptop at work (a box rental is the term, $25 a week). Now I'm filing on taxact and it's confusing as gently caress using 1099-Misc schedule C, asking me questions as if I run a business, how I keep records whether cash or accrual, my gross receipts and all this confusing stuff that I don't think applies to me. With my W2s at least I can just use quick entry and type in what is in the boxes, this is way too complicated. How do I go about reporting this properly?

I gotta hear more about this. you bring in your own personal laptop to work, and they impute $25/wk of income to you for the privilege? :psyduck:

# ¿ Feb 5, 2012 05:29

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

sublyme posted:

What he said. If I didn't bring in my personal laptop they would rent me a laptop to use, but since I do use my personal laptop they pay me 25/week for wear and tear, etc. So I want to figure out how to report this properly since it really isn't income but I guess it's classified as income?

got it. I'd put it on line 21 as "other income"--your software should have a way to do this.

# ¿ Feb 5, 2012 06:51

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

furushotakeru posted:

Come now, do you really think there is the slightest chance in hell it isn't reported in box 7, meaning the IRS will come looking for SE tax down the line?

Sounds like his employer probably got yelled at by their accountant as that $25/week should have been included in his w-2 wages.

Will box 7 income without a Sch SE automatically trigger a nastygram? I know people put all kinds of dumb stuff in there. My favorite from this week: client gets an insurance settlement from a car accident for medical and lost wages. Insurance company cuts a check to the client's law firm, which takes their fee and sends the net to the client... along with a 1099 with the income in box 7 :psyduck:

# ¿ Feb 5, 2012 08:41

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

jfballin posted:

My wife began teaching yoga on the side in 2011. She's taught and received payment from 3 companies as independent contractor and one individual for private instruction. We've treated it as a business throughout the year, tracking expenses and revenue. Would it be advisable to deduct cost of webpage, business cards, equipment, mileage at std rate, and insurance cost?

Yes.

quote:

She ultimately only received one 1099-Misc for payment >$600. Since the other companies did not issue 1099-Misc, does she need to report income from those sources?

Yes.

# ¿ Feb 8, 2012 05:26

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

jfballin posted:

Thank you, since her car is used for personal and business purposes (driving to studios + to meet clients), is mileage for business the only deduction, or are interest on auto loan and things like that appropriate?

Phoneposting but in general you can deduct actual expenses (gas, repairs, interest attributable to business use) or the standard mileage rate, not both. Also remember commuting miles (house->job site) aren't deductible.

# ¿ Feb 8, 2012 05:56

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# ¿ Apr 28, 2024 22:33

scribe jones: Sep 17, 2008; One of the key problems in the analysis of this puzzling book is to be able to differentiate a real language from meaningless writing.

entris posted:

Isn't he already beyond the three-year statute of limitations on audits for 2004 and 2005? Those returns should be closed.

they can go back as far as they want for nonfilers, iirc.

# ¿ Feb 15, 2012 16:53

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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