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Archive for the ‘IRS Rules’ Category

Question: What’s the best way to transfer money from overseas from proceeds of property owned by US citizen to avoid tax

I’m trying to figure out the best legal way to minimize taxes in transferring funds from overseas. These funds are close to $250K and are proceeds from the sale of property located outside the US, but owned by a US citizen, in this case my father. I am not sure if the gift law would apply here since he’s a citizen. Also, what documentation is required by the IRS?

Answer: 1. If you transfer money, there is no tax implication.

2. You father must report the sale of the property on his U.S. tax return. He must file the tax return if the income is more than the filing limit.
If he paid taxes on the profit in a foreign country, he will get foreign tax credit by filing form 1116.
Read: http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html

3. If he owned the house for more than two years and lived in the home, then he may exclude profit from the sale up to $250,000
Read: http://taxipay.blogspot.com/2008/03/profit-from-sale-of-your-home.html

4. If your father gifts you property or money, there is no gift tax on the receiver of the gift. But person giving the gift must file gift tax return, even he may not owe any taxes as there is a life time exemption of 1 million.
Read http://taxipay.blogspot.com/2008/03/us-gift-tax.html

IRS Awards $4.5M to Whistleblower

PHILADELPHIA— An accountant who tipped off the IRS that his employer was skimping on taxes has received $4.5 million in the first IRS whistleblower award. The accountant’s tip netted the IRS $20 million in taxes and interest from the errant financial-services firm. The award represents a 22 percent cut of the taxes recovered. The program, designed to encourage tips in large-scale cases, mandates …

Owning An IRS Lawyer: Marc Stevens – Part 1

Real Estate Losses Become An IRS Tax Audit Target

Sorry, real estate investor, the Internal Revenue Service is coming to get you, and it won’t be pretty.

Macrophage – “After America”

Fiesta Bowl report: Lavish expenses

Fiesta Bowl investigators have found evidence of potentially illegal employee conduct and spending irregularities that could jeopardize its non-profit status and prestigious role in college football’s national championship series.

House Session 2011-01-20 (09:00:57-10:01:21)

Question: IC taxes…?

Im currently working for a company that has me as an IC, they will be sending me a 1099 at the end of the year, even though i should be an employee. I plan to file an ss-8 later on becuase i know for a fact i’ll get fired if i do it now and i plan to be here a few more months. I wanted to what i’m supposed to do about the quarterly taxes. i only make 300/week but I dont want to have to pay a bunch of penaltys and interest come next april, and will some of the money i pay this quarter be refunded to me if the irs rules in my favor?

Answer: Put about 25% aside. You are liable for income tax and employee FICA/Medicare tax. As an employee it should be withheld from your compensation. If it is not withheld, you are still liable for it. An IRS determination in your favor means you would owe employee FICA/Medicare tax of 7.65% of your wages instead of aproximately 14% in self-employment tax.

If you get fired, take your IRS determination with you when you file for unemployment.

Sen. Debbie Stabenow addresses farming issues during Adrian visit

U.S. Sen. Debbie Stabenow said Tuesday that Lenawee  County has a “great stake” in the upcoming Farm Bill due to it leading Michigan in total number of farms and in revenue from corn, soybeans and wheat. Stabenow, D-Lansing, spoke to a group of about 30 people Tuesday at the Adrian Public Library. She is chairwoman of the Senate Agriculture, Nutrition and Forestry Committee. The gathering was …

Enter For A Chance To Win-Win With The Big Check Video Contest

Question: Claiming dependent on my taxes?

Last year most of my family lived together. My mom and I signed the lease and took care of most of the bills, etc. She’s already filed and claimed my little brother (who is 18, goes to school, and doesn’t work). Could I also claim him, considering we both provided for him? From what I read from the IRS, it seems possible, as the rule about one of us providing more than 50% of his support doesn’t apply to son/brothers.

Answer: A person can only be claimed as a dependent once per year. If your mom claimed him as her dependent, you cannot claim him.

E-File or Else: What’s New for Tax Season

Uncle Sam is making it harder for you to file your tax return on paperbut is offering some sweet deductions.

How to Prove Head of Household for the IRS – TurboTax Video 2010