Final question (I promise this time): What do I categorize lawyer fees under inside Freshbooks? Would that be Lawyer or simply Misc or Office Supplies?
dullard
Elite Member
- May 21, 2001
- 25,765
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IRA conversion questions. Do I understand this correctly?
I contributed $5000 to my traditional IRA for the 2010 tax year in early 2010. Later, I earned more money than I thought I would and I was no longer qualified to take the IRA tax deduction. My choices are (A) keep it as a non-deductable IRA which usually is a bad deal all around, (B) convert it to a Roth IRA, or (C) take the money back out of the IRA and pay tax on any gains. I would like to do (B). Even though I make too much money to contribute directly to the Roth, I believe that I can still contribute to a non-deductable IRA and then convert to the Roth, correct?
However, my $5000 is now worth much more since the stock market has been doing well. If I convert it to a Roth IRA by the 2010 tax date (and any extensions), then I don't have to pay taxes on the gains. But if I wait until the 2011 tax year or later, then I do have to pay taxes on the gains. Is that also correct?
I contributed $5000 to my traditional IRA for the 2010 tax year in early 2010. Later, I earned more money than I thought I would and I was no longer qualified to take the IRA tax deduction. My choices are (A) keep it as a non-deductable IRA which usually is a bad deal all around, (B) convert it to a Roth IRA, or (C) take the money back out of the IRA and pay tax on any gains. I would like to do (B). Even though I make too much money to contribute directly to the Roth, I believe that I can still contribute to a non-deductable IRA and then convert to the Roth, correct?
However, my $5000 is now worth much more since the stock market has been doing well. If I convert it to a Roth IRA by the 2010 tax date (and any extensions), then I don't have to pay taxes on the gains. But if I wait until the 2011 tax year or later, then I do have to pay taxes on the gains. Is that also correct?
I am using turbo tax to do my taxes. what is different this year is that my house was used as a rental property all of last year. On turbo tax, on the section about rental income, it gives me a list of items that I can list for depreciation. It lists (applicances, furniture, carpet, etc etc). It leaves me to enter it all myself.
two questions:
- can i really claim everything in my rental property? I.E, carpet, windows, blinds, etc etc? What about every inch of the house? doors, oven, microwave? sod. what else can I claim? I bought my house as a new construction, so everything was picked by me.
- how do I find the prices of these? Is it okay to go to home depot site and get a 'quote' for something similar?
two questions:
- can i really claim everything in my rental property? I.E, carpet, windows, blinds, etc etc? What about every inch of the house? doors, oven, microwave? sod. what else can I claim? I bought my house as a new construction, so everything was picked by me.
- how do I find the prices of these? Is it okay to go to home depot site and get a 'quote' for something similar?
- Oct 30, 2000
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I do not know anything about Freshbooks.
There is a line item on the Schedule C for Legal fees.
Any more questions have to be prepaid through the Moderator beer fund.:sneaky:
- Oct 30, 2000
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The value of the house / less land is what should be used for the depreciation overall if you are not living in it. When one then repalces items, then one can also start to depreciate them.
Tax Software will request you to enter the overall value of the property and the value of the land. If you do not know it; a standard rule of thumb for builders is the the value of the structure is 4-5 times the value of the land.
By purchasing it as new; you should know the underlying value of the land. Between the cost of the land and the final price is the value of the structure for depreciation.
Landscaping (sod/trees/ornamental items) are not supposed to depreciate but the maintenance of the such items is a direct deductible cost.
- Oct 30, 2000
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Just to make sure, I still have the paperwork for my home and the house was 163k. the land was about 29k, so I can depreciate 134k?
So what you are saying is that instead of itemizing everything (windows, carpet, etc etc), I should just put 1 value, which is 134k?
Dullard - I don't have time to fully research your question. The item I am not certain about is whether you can make a contribution and convert the same funds within in the same tax year.
What I am certain of that you will pay tax on the gains when you convert. There is a provision in 2010 that if you convert from a traditional IRA to a Roth IRA you can elect to pay the tax either with your 2010 tax return or on the 2011 and 2012 returns (you would pay 50% of the tax in each year). If you convert in a subsequent tax year (i.e. 2011), you will owe tax on the gains in the year in which you convert.
Thus, if you are using Turbo Tax or some similar software and you are indicating a 2010 Roth conversion, the software may automatically be making the election to defer the tax until 2011/2012. The tax doesn't disappear in 2010, it is just deferred to later years.
I'm not 100% certain that this is what is happening, but it's my best guess. It might be worth consulting a tax professional this year depending on the size of the potential conversion.
Best of luck.
Does anyone here have experience with reporting stock on their taxes?
For instance: a number of my restricted stock units vested last year before I left the company I was working at in April. Would my W-2 include all the gross income up until April plus all the vested stock value and withholding taxes? I had no other income the rest of the year.
I did a quick calculation and my guess is that it should all be in the W-2... if so, that's all I have to file, correct?
For instance: a number of my restricted stock units vested last year before I left the company I was working at in April. Would my W-2 include all the gross income up until April plus all the vested stock value and withholding taxes? I had no other income the rest of the year.
I did a quick calculation and my guess is that it should all be in the W-2... if so, that's all I have to file, correct?
Do I report 2009 property taxes or 2010 property taxes? The 2010 property tax forms aren't mailed until May in my county ...
- Oct 30, 2000
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You report the amount of taxes paid in the year paid.
This does not have to be the year indicated
Does this make sense? I followed the screens exactly, but I still have doubts that the tax return might be in correct. not sure if you guys can logically tell me just by the information, but here is what I have:
For the federal return, I am using cintax (since this is for a non-resident, international student). I enter the wage, which was around 10723. paid 776 in fed taxes, paid 99 in state taxes. I also received a 1099G, so I enter 25 for taxable refunds. all in all, I show a 78 dollar refund. Last year, the wage was a bit less (around 8600), and there was no 1099G, but refund was $184, quite a bit higher. Does this make sense? besides that, there was no other changes. Does the extra 2k in wages and 1099G make such a big difference?
So based on the w-2, I"m doing a 511NR for state taxes(non resident for international student). after the calculation, it shows I owe $50. Last year, it was a refund. Now is that possible, or did I do something wrong?
For the federal return, I am using cintax (since this is for a non-resident, international student). I enter the wage, which was around 10723. paid 776 in fed taxes, paid 99 in state taxes. I also received a 1099G, so I enter 25 for taxable refunds. all in all, I show a 78 dollar refund. Last year, the wage was a bit less (around 8600), and there was no 1099G, but refund was $184, quite a bit higher. Does this make sense? besides that, there was no other changes. Does the extra 2k in wages and 1099G make such a big difference?
So based on the w-2, I"m doing a 511NR for state taxes(non resident for international student). after the calculation, it shows I owe $50. Last year, it was a refund. Now is that possible, or did I do something wrong?
Question, how does opening an IRA (as turbotax suggests) affect taxes? I'm currently in the hole for $1500 and looking for any possible relief. (Turbotax has already found all of the deductions it could.)
- Oct 30, 2000
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Take what funds that you wish to put intothe IRA and setu-p the account. Ensure that the trustee knows that this is for 2010.
Then go back to the tax software and enter the amount of funds placed into the IRA.
As a result you will see a drop in taxes owed.
If you look at the tax summary page, it will tell you what you tax brasket percentage is. You can use this to determine the impact of the IRA in advance.
Another option is to pretend to fund the IRA and look at the result based on what the imanginary fuding level is.
Make sure that you do not file with these experimental alterations
- Oct 30, 2000
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Contact the employer. You may also be able to access the W2 as a online PDF depending on the employer
the 1098 i have lists "points paid on purchase of principle residence" (#2) at $700 less than my HUD-1's "Adjusted origination charges" (line 803).
would it be legit to itemize the extra $700 as extra mortgage interest to CitiMorgage? TaxAct gives the option to "enter the information for points that were not reported to you on Form 1098." i dont know if this is right or if i should just stick with what's reported on the CitiMortgage's 1098 (which seems like the safer bet). when i put in this extra $700, it gives me an extra $175 in my federal return. this would be super nice, if it's legal/right.
this is my first home and so i'm paranoid i'll miss something. thanks so much!
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- Oct 30, 2000
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Contact the title company that handled the closing and find out what the difference is from. 1098 can be off - you have a difference in official document numbers. That is not acceptable.
the 1098 should be charges from the time that you closed and the payments are being made to the lender.
Again best to ask on those daily charges. the closing people were paid to put those papers together properly; you have the right/authority to get an explanation that is more clear now that the rush is over.
the 1098 should be charges from the time that you closed and the payments are being made to the lender.
Again best to ask on those daily charges. the closing people were paid to put those papers together properly; you have the right/authority to get an explanation that is more clear now that the rush is over.
I finished my partnership taxes and e-filed both federal and CA tax returns.
This year my biz was selected by CA BOE for mandatory use tax reporting. I ended up owing $7 for out-of-state purchases (Amazon). I paid it through TurboTax (direct withdrawal).
Then a few days later I got a letter from BOE with my login/pass for BOE e-file. Do I understand it correctly, that I DO NOT NEED to e-file and pay the $7 the second time through BOE website, if I filed and paid with TTax?
Thanks!
This year my biz was selected by CA BOE for mandatory use tax reporting. I ended up owing $7 for out-of-state purchases (Amazon). I paid it through TurboTax (direct withdrawal).
Then a few days later I got a letter from BOE with my login/pass for BOE e-file. Do I understand it correctly, that I DO NOT NEED to e-file and pay the $7 the second time through BOE website, if I filed and paid with TTax?
Thanks!
- Oct 30, 2000
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This is a state tax question. However, common sense would be to send a copy of the payment info to the BOE and sleep well.
In case anyone else searches for this (unlikely, but who knows): the BOE equires you to still e-file the return, but you put the amount you already paid via TTax e-file in the 'Use tax paid to other state' field, thus nullifying the amount owed.
Sounds like a hack and afterthought on their part. Doesn't surprise me.
Sounds like a hack and afterthought on their part. Doesn't surprise me.
When I use Turbotax it forces me to itemize all my charitable contributions line by line. However, in the years when I have used an accountant, they simply put a total $$ amount of charitable contributions down and move on. I never have to itemize.
Is there anyway I can do that with Turbotax myself?
Is there anyway I can do that with Turbotax myself?
Enter one charity labeled "Various" and list the total amount. This should accomplish the same thing.
Most professional tax preparation software allows you to input the detail for various charities, but this detail is generally not included in printed version of the return. With charitable contributions, generally the more detail the better.
shortylickens
No Lifer
- Jul 15, 2003
- 80,287
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Got mine done electronically last week.
Recieved 900 dollars just for being a student and spending my own money on college.
Any of you guys get more?
Recieved 900 dollars just for being a student and spending my own money on college.
Any of you guys get more?
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