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I heard that on the news today. Stunning.
Prisoners cashed in on homebuyer tax credit
By Aaron Smith, staff writer June 23, 2010: 11:04 AM ET
NEW YORK (CNNMoney.com) -- More than 1,200 prison inmates, including 241 serving life sentences, defrauded the government of $9.1 million in tax credits reserved for first-time homebuyers, according to a Treasury Department report released Wednesday.
http://money.cnn.com/2010/06/23/real_estate/money_stimulus_fraud/index.htm
Really? So no need to keep trade confirmations, etc on them? That's great.
Distributions from a Traditional IRA are ordinary income, reported on 1040 page 1. No need to keep track of the trades.
Hey, Steve. Can you explain how this works:
Investments through a tax-deferred retirement account are not reported as capital gains. This might include IRAs, Roth IRAs, and 401(k) plans. Any income from these accounts is tax-deferred until the money is withdrawn and then reported as ordinary income.
I have had an ira account that I have traded in (not very actively, but over the years there have been many trades). What I am asking is this. Years from now when I do have to pay the tax on this, is it done the same way I do my regular capital gains/loss schedule? Will I have to enter each and every trade I ever made out of this account over the years? I know it says that the money is treated as "ordinary income" and not "capital gains". If you don't do a schd D on it, how do you report it? Do you just put the amount it is at the time you have to report it as ordinary income?
Basis of appreciated property inherited in 2010
Step-up in basis is limited to $1.3 million. Article and examples at http://www.jensenestatelaw.com/colleagues/newsletters/205-the-2010-basis-qstep-upq-rules-wealth-counselor-volume-5-issue-2
I have a question!
Trying to do taxes w/TurboTax Premier online.
Can't get it to import from TDAmeritrade.
Will import with errors and not all information
Can get into more detail with you on is this. Is this a common problem w/Turbo Tax online?
t
2010 New York tax rate schedules on page 7
http://www.tax.state.ny.us/pdf/2010/inc/it2105i_2010.pdf
Speaking of NY taxes, how do I figure % what to pay in pre-estimate. With the federal I have to look at what I made from Jan to March and I base it on 28% of that I give them a little less. Is NY like 6% - do u know?
Welcome gotinearly. Feel free to contribute!
Hey ypsi, so this is where you hide. LOL, great board, I have marked it
Your governor has floated the idea of delaying refunds
Our governor will probably be on his way out - and if that is the case no worry about delaying refund tax checks. Unbelievable. Can NY get it right and put someone in there that follows rules? Here:
http://www.nydailynews.com/ny_local/2010/03/02/2010-03-02_senator_kirsten_gillibrand_joins_chorus_of_demands_for_gov_patersons_resignation.html
Attention New Yorkers
Your governor has floated the idea of delaying refunds, and has the authority to do so. Have you received your refund yet? If so, how long did it take? If not, how long ago did you file?
Thanks cintrix for bringing this to my attention.
Are you an active trader? If you are, you might want to save yourself some time next year and enter your trades into a program like Quicken each day. This way it is only a few entries a day vs having to do loads at one time next year. I put the total cost basis, and total gross proceeds for each broker and each account separate - of course you put two separate lines for each short term, and long term and use my Quicken as my backup.
found it, duh.
I am manually entering every purchase to my sale. (Very time consuming), but I'm cheap and will save the $30 more that turbo tax wants to charge for upgrading to have them do it.
Where on my Turbo Tax do I put my purchase amount for the stocks I've owned last year? I did the automatic upload from TDA to turbotax and it doesn't automatically calculate it out. It just shows what I sold and the amount and now I owe $11k on taxes, LOL. Where do I put the deductions for the purchases?
Thanks
Official: Plane crash pilot left anti-IRS Web note
Email this Story
Feb 18, 2:44 PM (ET)
By JIM VERTUNO
(AP) TEXAS PLANE CRASH 021810: Map locates Austin, Texas, where a small plane has crashed into a small...
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AUSTIN, Texas (AP) - A software engineer furious with the Internal Revenue Service plowed his small plane into an office building housing nearly 200 federal tax employees on Thursday, officials said, setting off a raging fire that sent workers fleeing as thick plumes of black smoke poured into the air.
A U.S. law official identified the pilot as Joseph Stack and said investigators were looking at an anti-government message on the Web linked to him. The Web site outlines problems with the IRS and says violence "is the only answer."
Federal law enforcement officials have said they were investigating whether the pilot, who is presumed to have died in the crash, slammed into the Austin building on purpose in an effort to blow up IRS offices. All the officials spoke on condition of anonymity because the investigation was ongoing.
"Violence not only is the answer, it is the only answer," the long note on Stack's Web site reads, citing past problems with the tax-collecting agency.
"I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different. I am finally ready to stop this insanity. Well, Mr. Big Brother IRS man, let's try something different; take my pound of flesh and sleep well," the note, dated Thursday, reads.
At least one person who worked in the building was unaccounted for and two people were hospitalized, said Austin Fire Department Division Chief Dawn Clopton. She did not have any information about the pilot. About 190 IRS employees work in the building, and IRS spokesman Richard C. Sanford the agency is trying to account for all of its workers.
After the low-flying plane crashed into the building, flames shot out, windows exploded and workers scrambled to safety. Thick smoke billowed out of the second and third stories hours later as fire crews battled the blaze.
"It felt like a bomb blew off," said Peggy Walker, an IRS revenue officer who was sitting at her desk in the building when the plane crashed. "The ceiling caved in and windows blew in. We got up and ran."
In a neighborhood about six miles from the crash site, a home listed as belonging to Stack was on fire earlier Thursday. Two law enforcement officials said Stack had apparently set fire to his home before the suicidal plane flight.
Elbert Hutchins, who lives one house away from the house on a quiet, tree-lined middle class neighborhood, said the house caught fire about 9:15 a.m. He said a woman and her teenage daughter drove up to the house before firefighters arrived.
"They both were very, very distraught," said Hutchins, a retiree who said he didn't know the family well. "'That's our house!' they cried 'That's our house!'"
Federal Aviation Administration spokesman Lynn Lunsford said the agency confirmed the plane took off from an airport in Georgetown, Texas, and the pilot didn't file a flight plan. Lunsford said initially the plane was identified as a Cirrus SR22 but later said it might be a Piper Cherokee.
Gerry Cullen, 66, was eating breakfast a restaurant across the street when the plane struck the building.
"The airplane hit and vanished in a fireball," said Cullen, a former flight instructor.
Matt Farney, 39, who was in the parking lot of a nearby Home Depot, said he saw a low-flying small plane near some apartments and the office building just before it crashed.
"I figured he was going to buzz the apartments or he was showing off," Farney said. "It was insane. ... It didn't look like he was out of control or anything."
Sitting at her desk in another building about a half-mile from the crash, Michelle Santibanez said she felt vibrations after the crash. She and her co-workers ran to the windows, where they saw a scene that reminded them of the 9/11 attacks, she said.
"It was the same kind of scenario with window panels falling out and desks falling out and paperwork flying," said Santibanez, an accountant.
National Transportation Safety Board spokesman Peter Knudson said an investigator from the board's Dallas office has been dispatched to the scene of the accident to start an investigation. The FAA and NTSB officials said they had no information on whether the crash was intentional. The White House also said President Barack Obama was briefed about the crash.
As a precaution, the Colorado-based North American Aerospace Defense Command launched two F-16 aircraft from Houston's Ellington Field, and is conducting an air patrol over the crash area.
---_
Once again the tax program I am using, TaxAct, defaults all NYS residents to pay a Sales or Use tax. They claim if you don't put a figure in that line you are open to an audit.
This is where they plugged in figures:
*Tax due on business related services costing less than 1000 each.
*Months you maintained a permanent place of abode in NY for sales tax purposes.
2009 return showing overpayment credited is your receipt; I haven't had problems on that front.
End of March? That's really late. I think I got a revised 1099 in March last year now that I think of it. BTW, if you overpaid in 2009 and would like to use the refund to pay your estimated taxes for 2010, how do you get proof that they apply it? Does the irs supply you with receipt?
More and more of this stuff comes later and later. Client today hadn't received 1099 from broker yet (that should come soon); his K-1 from a publicly traded partnership is another story - last year he got it the end of March.
Regarding filing early in the year: I have to crack up over the inserts of a couple of 1099's. Most of them basically are saying that they aren't going to be mailing them out until Feb 16th or the end of Feb. I even had one that stated that it was in the best interest of the customer to NOT file too early. lol
Here's one:
To minimize the possibility of multiple corrections, we will not be generating amended 1099's until late Feb 2010
Never mind found the answer. He can only pull 10K per person.
Trying to help a friend with what is considered a first time home purchase.
He has both a traditional IRA and a Roth. He's wondering if he can take 10K out of each for what would be an early withdrawl for home accusation costs. Plus his wife has a roth.
BTW the Roths made the 5 year rule.
So in a sense can he pull on 3 accounts for 30K?
Have went thru the IRS publications with him and can't find any exclusions but maybe we're missing something?
Where's My Refund?
IRS will tell you, shortly before they send it: https://sa2.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Homebuyers meet IRS red tape
http://money.cnn.com/2010/01/14/real_estate/homebuyer_tax_credit_delayed/index.htm
That's a good thing, imo. I can't tell you how many friends I have base the talent of their tax preparer on the size of their return. I constantly hear "Oh my guy is great - I always get a good return" - dumbarses. lol I had a friend who's tax preparer was using real estate taxes on her house as a deduction for her - problem is, my friend didn't own the house - she only lived there.
IRS Proposes New Registration, Testing and Continuing Education Requirements for Tax Return Preparers Not Already Subject to Oversight
Higher Standards to Boost Protections and Service for Taxpayers,
Increase Confidence in System, Yield Greater Compliance with Tax Laws
IR-2010-1, Jan. 4, 2010
WASHINGTON –– The Internal Revenue Service kicked off the 2010 tax filing season today by issuing the results of a landmark six-month study that proposes new registration, testing and continuing education of tax return preparers. With more than 80 percent of American households using a tax preparer or tax software to help them prepare and file their taxes, higher standards for the tax preparer community will significantly enhance protections and service for taxpayers, increase confidence in the tax system and result in greater compliance with tax laws over the long term.
To bring immediate help to taxpayers this filing season, the IRS also announced a sweeping new effort to reach tax return preparers with enforcement and education. As part of the outreach effort, the IRS is providing tips to taxpayers to ensure they are working with a reputable tax return preparer.
"As tax season begins, most Americans will turn to tax return preparers to help with one of their biggest financial transactions of the year. The decisions announced today represent a monumental shift in the way the IRS will oversee tax preparers," said IRS Commissioner Doug Shulman. "Our proposals will help ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of the nation's tax system. In addition, we are taking immediate action to step up oversight of tax preparers this filing season.”
Based on the results of the Return Preparer Review released today, the IRS recommends a number of steps that it plans to implement for future filing seasons, including:
Requiring all paid tax return preparers who must sign a federal tax return to register with the IRS and obtain a preparer tax identification number (PTIN). These preparers will be subject to a limited tax compliance check to ensure they have filed federal personal, employment and business tax returns and that the tax due on those returns has been paid.
Requiring competency tests for all paid tax return preparers except attorneys, certified public accountants (CPAs) and enrolled agents who are active and in good standing with their respective licensing agencies.
Requiring ongoing continuing professional education for all paid tax return preparers except attorneys, CPAs, enrolled agents and others who are already subject to continuing education requirements.
Extending the ethical rules found in Treasury Department Circular 230 -- which currently only apply to attorneys, CPAs and enrolled agents who practice before the IRS -- to all paid preparers. This expansion would allow the IRS to suspend or otherwise discipline tax return preparers who engage in unethical or disreputable conduct.
Other measures the IRS anticipates taking are highlighted in the full report.
Currently, anyone may prepare a federal tax return for anyone else and charge a fee. While some preparers are currently licensed by their states or are enrolled to practice before the IRS, many do not have to meet any government or professionally mandated competency requirements before preparing a federal tax return for a fee.
First Step: Letters to 10,000 Preparers
The initiatives announced today will take several years to fully implement and will not be in effect for the current 2010 tax season. In the meantime, the IRS is taking immediate action to step up oversight of preparers for the 2010 filing season.
Beginning this week, the IRS is sending letters to approximately 10,000 paid tax return preparers nationwide. These preparers are among those with large volumes of specific tax returns where the IRS typically sees frequent errors. The letters are intended to remind preparers to be vigilant in areas where the errors are frequently found, including Schedule C income and expenses, Schedule A deductions, the Earned Income Tax Credit and the First Time Homebuyer Credit.
Thousands of the preparers who receive these letters will also be visited by IRS Revenue Agents in the coming weeks to discuss their obligations and responsibilities to prepare accurate tax returns. This is part of a broader initiative by the IRS to step up its efforts to ensure paid tax return preparers are assisting clients appropriately. Separately, the IRS will be conducting other compliance and education visits with return preparers on a variety of issues.
In addition, the IRS will more widely use investigative tools during this filing season aimed at determining tax return preparer non-compliance. One of those tools will include visits to return preparers by IRS agents posing as a taxpayer.
During this effort, the IRS will continue to work closely with the Department of Justice to pursue civil or criminal action as appropriate.
Steps Taxpayers Can Take Now to Find a Preparer
In addition to the stepped-up oversight of preparers, Shulman also announced a new outreach effort to help make sure taxpayers choose a reputable preparer this filing season. That’s particularly important because taxpayers are legally responsible for what is on their tax returns -- even if those returns are prepared by someone else.
“Taxpayers should protect themselves from unscrupulous preparers,” Shulman said. “There are some simple steps people can take to choose a reputable tax preparer.”
Most tax return preparers are professional, honest and provide excellent service to their clients. Shulman offered the following points for taxpayers to keep in mind when selecting a tax return preparer:
Be wary of tax preparers who claim they can obtain larger refunds than others.
Avoid tax preparers who base their fees on a percentage of the refund.
Use a reputable tax professional who signs the tax return and provides a copy.
Consider whether the individual or firm will be around months or years after the return has been filed to answer questions about the preparation of the tax return.
Check the person’s credentials. Only attorneys, CPAs and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
Find out if the return preparer is affiliated with a professional organization that provides its members with continuing education and other resources and holds them to a code of ethics.
More information about choosing a tax return preparer and avoiding fraud can be found in IRS Fact Sheet 2010-03, How to Choose a Tax Preparer and Avoid Tax Fraud.
Resources for Taxpayers this Filing Season
This filing season, the IRS has many free resources to help taxpayers prepare and file their returns.
IRS.gov has a variety of features to help taxpayers. There’s a special section to help taxpayers get information on a variety of Recovery tax benefits. The web site also has information for people who lost a job or experienced financial problems in 2009.
IRS.gov also has information to help people track their refund.
IRS.gov will once again host the IRS Free File program, which allows virtually everyone to file their taxes for free through the web site. Free File and the rest of the IRS e-file program will open later this month.
More Filing Season Resources Available on IRS.gov
1040 Central: Help for Individual Filers
Tax Breaks in the American Recovery and Reinvestment Act
Lost your job or the victim of foreclosure? The IRS can help in difficult situations
E-file and Free File
Taxpayer assistance centers
http://www.irs.gov/newsroom/article/0,,id=217781,00.html
Estate Tax ends today
But here's the latest: http://money.cnn.com/2009/12/31/pf/taxes/estate_tax_extension/index.htm
Fantastic... lol Who says CPA's dont' have a personality... jk
No conversion from Roth to Traditional.
If he cashes out the Roth IRA, there may be a penalty. But there's also an itemized deduction (2% miscellaneous) for the amount lost. (Sounds like he's high income, so 2% AGI limitation may make deduction worthless)
If he's single, try the personals:
Single man seeks woman with large capital loss carryforward, object matrimony (ASAP!). Looks and personality unimportant.
I trying to help out a guy here... anyone want to chime in? TIA
.......
Anyone have any ideas as to how to reduce your capital gains for 2009, other than selling all your "big board" loosers (I already sold them all), contribute to tax sheltered accounts (done that to the max), purchase computer equipment for "day trading" as a tax deduction (done that), bought a "smart phone," etc.
I pretty much maxed out everything that I could think of. I even called my "tax person" which was absolutely no help. I do not even know why I pay her -- she is useless.
The only thing I have left is one ROTH IRA that is a looser. Wondering if I can convert that to a Traditional IRA and have some sort of deduction.
Searched Google and all I found was converting traditional to ROTH, but I want it the other way around.
After all of the above, I am still facing a huge tax bill.
Who would of thought you can make more money in BK stocks and pennies rather than the traditional big boards.
Thanks champ..... need any stock tips? lol
Value on date of conversion is relevant.
Early withdrawal penalty on Roth IRA can be complex: see http://www.irs.gov/pub/irs-pdf/i5329.pdf for more info.
And the day of conversion is the amount of money that is taxed?
Oh thankyou....
What are the penalties involved with on cashing out? on a Roth
2010 is a good year to convert Traditional IRA to Roth IRA; half of amount converted is included in 2011 income, the other half in 2012.
http://www.money-zine.com/Financial-Planning/Retirement/2010-Roth-IRA-Conversions/
I was trying to figure out what the break down on cashing out of retirement accounts.... Traditional vs. Roth.....
To see if it is feasible to switch shares from traditional to the roth and take a tax hit now and save later...
Thanks tax gurus....
That's correct for most of us. But read about trader tax status: http://www.greencompany.com/EducationCenter/GTTRecTraderTaxStatus.shtml
are investment expenses deductablae ONLY if you itemise?..if you take the standard deduction, you cant take the investment deduction?
OK, that makes it crystal clear to me, Thanks, sorry for being a bone head : )
I bet if you did faq videos on YouTube you could get enough hits to make some money, especially if you directed to a web site and sold advertising from it.
If you had a bikini model read the answers on YouTube it could go through the roof. An unholy alliance, accounting and sexy, could be the key to untold fortune ... Buwaaaahahahahahaaha!
Really though : )
Sweet information : ) You guys are the best thing since cooked food, lol
I first started reading on the site those idiots that are banned from this site put up. Just berating people for even paying taxes or keeping records lol. I thought, Oh hell, this is all there is? I tried to help but of course I can't be much help. I think I'll go redirect the couple of victims there here. Or on one, his question was already answered for me here. He can deduct $3000 of investment losses from his income.
No, you get taxed only once on capital gain income. Short-term gain is taxed the same as other income, long-term (over one year holding period) taxed at a lower rate.
Example
Wages: $30,000
Short-term capital gain: $10,000
Adjusted gross income: $40,000 (total of above)
Deductions: $15,000 (includes 2% deductions after limitation)
Exemptions: $3650
Taxable income ($40,000 - 15,000 - 3650): $21,350
Tax would be the same as if wages were $40,000 and there were no capital gain. But if capital gain were long-term, tax would be lower.
So (sorry if this seems very dense) you get taxed on cap gains at the according long or short term rate, and then they also go into the pot as a adjusted gross income? (assuming the scenario you used incorporated regular income, with also cap gains) on which you are taxed again?
There is a new car credit but it is extremely unfair imo to those who bought somewhere between Jan 1st and Feb 17th. It should include any new vechicle purchased in 2009. Luckily for me I purchased one just after the eligible date:
How the 2009 New Car Tax Credit Works
Filed Under Taxes
The new car tax credit was included on the 2009 stimulus package, and it’s causing a lot of confusion for a lot of people. I’ve studied the brief IRS explanation and several other sources to figure out how the credit works.
New Car Credit Eligibility Dates
The credit applies to new cars purchased between February 17, 2009 and December 31, 2009. That means the purchase must be completed, not that you’re working on a deal on December 31. If you completed the deal on February 16, you’re out of luck.
Qualifying Vehicles
New cars, light trucks, motor homes, and motorcycles qualify. Used or pre-owned cars do not, even if it’s “new to you.”
Qualifying Purchase Price
Here’s the tricky part. The credit is limited to the taxes on vehicles with a purchase price up to $49,500. You can buy a more expensive car than that, but you can only deduct the taxes on $49,500 of it. That’s still a pretty penny if you live in a high sales tax state.
Qualifying Income
The income limit is high enough that nearly everyone will qualify. The credit starts to phase out at $125,000 for individuals and $250,000 for couples. Once you reach $135,000 and $260,000, respectively, you no longer qualify.
Eligible Taxes
Although there was initial talk of including loan interest, the credit is limited to the sales, local, and excise taxes associated with the purchase. The IRS estimates that will be about $1500 on a $25000 car, but it does depend on the prevailing tax rate in your state and city. See the first comment for a better explanation of the actual value of the credit.
As of June, 2009, the IRS has clarified that fees collected by states that don’t collect sales taxes will qualify for the credit. These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon. Please consult the IRS to find out precisely which fees are eligible in those states.
How to Claim the New Car Tax Credit
You don’t receive the credit when you buy the car, so you should still bargain for the best deal you can get. You’ll receive the credit when you file your 2009 taxes, which are due on April 15, 2010. The credit is considered an “above the line” credit, so you don’t need to itemize to receive it. It also reduces your taxable income, rather than the tax due. That means your total savings will be more than less than the credit itself.
The Bottom Line
Here’s the bottom line: the credit may or may not be worthwhile to you. If you were considering a late model used car, then you need to compare the difference in price of the used car and the new car, as well as the taxes on the new car. If the used car is significantly cheaper than the new car, the credit may not actually save you money. However, if the difference in price is about the same as the tax on a new car, then the credit could ultimately make the new car a better deal. With the new car, you’d not only receive the credit, but you’d avoid major maintenance and repair costs for longer. However, you do need to factor in higher loan payments, registration fees, and insurance costs.
My best advice is to shop for a car as you normally would, and then see if the credit is a deciding factor after all other factors are considered.
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