8th Annual Anandtech Tax Time Thread (OP Updated 14th Jan)

[2Xtreme21]

Hi guys.. dumb question, but hopefully simple:

My contributions to my employer-sponsored Roth 401k (after-tax contributions) are not tax deductible, right?

I know there's a section on IRA's and there's a retirement credit, but just wanted to make sure I was correct on this issue before filing.

 

[EagleKeeper]

I did some settlements on debts (CCs etc) that I know I have to report the difference over $650(?) as income. I assume I should get statements (1099?) from those places I settled with?

They should report the settlement via a 1099.

 

[EagleKeeper]

Hi guys.. dumb question, but hopefully simple:

My contributions to my employer-sponsored Roth 401k (after-tax contributions) are not tax deductible, right?

I know there's a section on IRA's and there's a retirement credit, but just wanted to make sure I was correct on this issue before filing.

You already paid the taxes on the Roth - therefore you do not pay the taxes when withdrawing from those accouints.

Regular 401K and IRAs are funded with non-taxed funds. therefore you are required to pay taxes when withdrawing from those accounts.

 

[almega]

We had to get a parent plus loan for my daughter last year and I claim her as a dependent on my taxes. When I received her 1098T it included the loan as a scholarship/grant in box 6. Is this correct??

 

[ViviTheMage]

What is a 1099-G? Google helped a bit, but I am not sure still.

 

[HopJokey]

If I buy sporting event tickets through my business with intent to resale can I expense it and deduct 100% of the purchase amount (instead of the normal 50% for Meals and Entertainment expenses)? Any tickets sold would count as revenue on the books.

If so what expense category would I place the tickets I bought?

 

[EagleKeeper]

What is a 1099-G? Google helped a bit, but I am not sure still.

This is usually a form that you receive to indicate payments from a government entity. Federal/State/Local


/added

IRS FAQ 1099-G

Form 1099-G, Certain Government Payments, if, as a unit of a federal, state, or local government, you made payments of unemployment compensation; state or local income tax refunds, credits, or offsets; alternative trade adjustment assistance (ATAA) payments; reemployment trade adjustment assistance (RTAA) payments; taxable grants; or agricultural payments. You must also file this form if you received payments on a Commodity Credit Corporation (CCC) loan. The officer or employee of the government unit having control of the payments, received or made, (or the designated officer or employee) must file Form 1099-G.

Damm, I am good

 

[EagleKeeper]

If I buy sporting event tickets through my business with intent to resale can I expense it and deduct 100% of the purchase amount (instead of the normal 50% for Meals and Entertainment expenses)? Any tickets sold would count as revenue on the books.

If so what expense category would I place the tickets I bought?

If your business was in the ticket resale field, you should be able to properly list them as inventory purchased.

Otherwise, good intentions would not count to the IRS and you should list them under entertainment - when actually using them for a client.

If you end up using them for personal use; do not try to expense them off at all.

 

[EagleKeeper]

We had to get a parent plus loan for my daughter last year and I claim her as a dependent on my taxes. When I received her 1098T it included the loan as a scholarship/grant in box 6. Is this correct??

If the loan came via the school; they should know what they are doing.

 

[HopJokey]

If your business was in the ticket resale field, you should be able to properly list them as inventory purchased.

Otherwise, good intentions would not count to the IRS and you should list them under entertainment - when actually using them for a client.

If you end up using them for personal use; do not try to expense them off at all.

Thanks EagleKeeper.

The primary intent of the business will not be ticket resale. However I am buying tickets with the sole purpose of reselling them (not using it for clients) for profit (side thing). In this case can I list them as inventory purchased in 100% expense down?

 

[EagleKeeper]

Thanks EagleKeeper.

The primary intent of the business will not be ticket resale. However I am buying tickets with the sole purpose of reselling them (not using it for clients) for profit (side thing). In this case can I list them as inventory purchased in 100% expense down?

The problem is proving intent if the business is not setup that way - similar to TicketScalpers (oops - TicketMasters). Listing as inventory is fine in that instance - however, if you were to sample the product, it would become a serious liability in now stating that the purchase of any of the product was for business and not pleasure.

I do not know what the laws are on scalping (reselling tickets above face value) - in some areas it is illegal.

It might be better to pay a social call to the local IRS office and ask for official advice.

 

[HopJokey]

The problem is proving intent if the business is not setup that way - similar to TicketScalpers (oops - TicketMasters). Listing as inventory is fine in that instance - however, if you were to sample the product, it would become a serious liability in now stating that the purchase of any of the product was for business and not pleasure.

I do not know what the laws are on scalping (reselling tickets above face value) - in some areas it is illegal.

It might be better to pay a social call to the local IRS office and ask for official advice.

Excellent, thanks again.

 

[CPA]

What is a 1099-G? Google helped a bit, but I am not sure still.

Used for unemployment compensation usually. did you get unemployment comp last year?

 

[SunnyD]

Quick question:

Daughter was born on December 29th, service and billing obviously was done before the end of the year. The bill wasn't PAID until after January 1st of 2011. Do these medical expenses go on 2010 or 2011?

 

[EagleKeeper]

Quick question:

Daughter was born on December 29th, service and billing obviously was done before the end of the year. The bill wasn't PAID until after January 1st of 2011. Do these medical expenses go on 2010 or 2011?

If your wife worked so hard to give you that bundle of joy; :thumbsup: at least let your wallet take credit for it for 2010

Unless insurance is covering the costs - then only the deductibles are valid.

 

[shekondar]

You already paid the taxes on the Roth - therefore you do not pay the taxes when withdrawing from those accouints.

Regular 401K and IRAs are funded with non-taxed funds. therefore you are required to pay taxes when withdrawing from those accounts.

What about after-tax 401k contributions (i.e. anything over the $16500 limit)? Will that end up getting taxed twice?

 

[juiio]

If I want to deduct medial expenses, but only don't have receipts for some and instead just have transaction histories from my Credit Union, is that enough proof? The transaction histories are Quicken files, which are just plaintext files that show amount, date, merchant, etc.

Thanks!

 

[Xcobra]

If I want to deduct medial expenses, but only don't have receipts for some and instead just have transaction histories from my Credit Union, is that enough proof? The transaction histories are Quicken files, which are just plaintext files that show amount, date, merchant, etc.

Thanks!

Yep, credit card statements can be used to back up the expenses. You just need to meet the 7.5% percent floor :\

 

[Homerboy]

My wife runs a small business out of the home.
Occasionally, we have to make a small, personal loan to the business to buy supplies etc during slow seasons, and then repay the loan when there are profits.

I always tracked this in Quicken as "Personal Loan to Business" as the income, and the expense as "Repayment of Personal Loan".

I'm not sure how this "income" and "expense" to the business should be reported at tax time. I don't think this is "taxable income" is it? I'm not sure where to place this on the tax forms. Any help/insight would be appreciated.

Thanks.

 

[SunnyD]

Alright, another "stupid" question...

Are fees for school field trips considered child care expenses? My kids have some pretty damn expensive field trips.

 

[EagleKeeper]

Alright, another "stupid" question...

Are fees for school field trips considered child care expenses? My kids have some pretty damn expensive field trips.

I do not think so.
The kids have the option of still going to school without going on the field trips.

Government will not pay for social stigma

 

[EagleKeeper]

My wife runs a small business out of the home.
Occasionally, we have to make a small, personal loan to the business to buy supplies etc during slow seasons, and then repay the loan when there are profits.

I always tracked this in Quicken as "Personal Loan to Business" as the income, and the expense as "Repayment of Personal Loan".

I'm not sure how this "income" and "expense" to the business should be reported at tax time. I don't think this is "taxable income" is it? I'm not sure where to place this on the tax forms. Any help/insight would be appreciated.

Thanks.

Make it a wash unless the business is paying interest on the loan.

If paying interest; then your personal returns must declare the interest.

 

[EagleKeeper]

If I want to deduct medial expenses, but only don't have receipts for some and instead just have transaction histories from my Credit Union, is that enough proof? The transaction histories are Quicken files, which are just plaintext files that show amount, date, merchant, etc.

Thanks!

Yep, credit card statements can be used to back up the expenses. You just need to meet the 7.5% percent floor :\

Be careful - a pissed off IRS examiner may not like the CC receipt - it does not go into enough detail.

 

[Homerboy]

Make it a wash unless the business is paying interest on the loan.

If paying interest; then your personal returns must declare the interest.

Financially it is a "wash" but are you saying simply dont report the in/out transactions?

 

[Homerboy]

Alright, another "stupid" question...

Are fees for school field trips considered child care expenses? My kids have some pretty damn expensive field trips.

You're telling me dude. My kids are already about $200+ into it THIS YEAR already.