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I Am Selling The Stock Of My SCorporation And Am Wondering What My Document Retention Policy For Prior Years Should Be. Do I Pack Up All...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

If you are selling the stock, you are selling the company to the new buyers. They own the company and the historical records. All you need are records of your cost basis in the stock and the sales price.   Read More
The Tax Pro Who Did 2011 Return Did Not Include Form For AMT Credit For AMT Paid In 2010. Is It Still Possible To Get Credit Or Is It Too...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

Sorry, but that ship has sailed. The credit must be used each year in which you are eligible to use it. You can't file amended returns, as you can only do that for 3 years, meaning you can only go back to 2013 at...   Read More
Client Set Up A Single Member LLC In Virginia. Applied For EIN And Indicated That It Was A Personal Service Corp. This All Happened Last...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

If the client did not file Form 8832, he has not made a valid election to be taxed as a corporation. I would treat it as a sole proprietorship and file as such.   Read More
How Is Repair To An Asset Accounted For In Depreciation? For Example A Computer That Is Repaired. Is Repair Cost Added To Basis,...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

The answer to that question is complex. The IRS has recently issues a series of updated repair regulations that deal with that topic. Depending on the cost of the repair it would be depreciated separately or...   Read More
For A Low Value Asset (less Than $100) Being Expensed Rather Than Depreciated, Can The Expense Be Taken In A Subsequent Year Of Use If Not...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

Any expense must be deducted in the year in which it is placed in service unless you are a cash basis taxpayer. In that case, it would be deducted in the year in which it was paid for. If the purchase is placed on...   Read More
Did Not Previously Realize Could Take Deduction For Computer, Etc. W/o Taking Home Office Deduction.Rather Than Do Form 3115 Can I Start...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

No, changing from not taking depreciation to taking depreciation is a change in accounting method which must be reported on Form 3115.   Read More
I Am A Church Volunteer Looking To Hire An Licensed Pastor/singer Entertainer For A One-time Church Engagement. He Sings And Plays Guitar...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

1. Yes, you may provide a portion of the fee as housing allowance. The fact he is local is of no consequence in this case. 2. This is not really a factor here. He is leading in worship, which does not have to...   Read More
I Have A Question About Depreciation. Can I Not Take Depreciation So I Can Increase The Net Operating Income. I Know I Will Pay More Taxes (...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

It's not a matter of what I think, it is the law that is important here. First, increasing your net operating income by not taking depreciation actually decreases your cash flow as you are paying more tax....   Read More
Are Credit Card Rewards Tax Free?
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

Credit card rewards are considered as discounts by the IRS. Therefore, they are not taxable. However, If the purchase is for something that is a tax deduction, the cost of that item should be reduced by the amount...   Read More

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