Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 677 other followers

  • Blog Stats

    • 306,298 hits
  • Posts By Day

    February 2006
    M T W T F S S
     12345
    6789101112
    13141516171819
    20212223242526
    2728  
  • Subscribe

  • Special Pages

Archive for February 24th, 2006

Exchanging Between States

Posted by taxguru on February 24, 2006

Q:

Exchange Question

What if I sell Florida then use only some of the money for another property in another state?  Or can I use it to pay off one of the other financed properties?

A:

Like kind replacement real property can be in any state; not just the one where the original property was located.

If you reinvest less than the net sales price, you will have to report as taxable income the difference; the amount you missed the target replacement price by.

Paying off loans on property you already own is not a like kind investment.  You have to acquire new property.

Your personal professional tax advisor should be able to help you with real numbers for your unique circumstances.

Good luck.

Kerry Kerstetter

 

Posted in Uncategorized | Comments Off on Exchanging Between States

Disallowed EIC

Posted by taxguru on February 24, 2006

Q:

Subject: tax website

I saw your tax web site, and was wondering if you could help me.
 
Simply, the IRS disalowed my EIC, ( never recieved it, (( refund froze )),  later after i protested, they reassessed their own review and sent me a letter stating that i have to pay them the EIC amount in question, if i disagree, then i have to go to tax court. If i go to tax court, then i will have to pay penalties and interest on an amount that i never recieved.
 
Is their any service that you can offer me to fix this ?
Have you seen anything like this before?

A:

There are far too many variables involved for me to be able to advise on your particular situation via this medium. 

The person who prepared your tax return should be able to help you with this.  If you did your own return, you learned an expensive lesson.

To work out the best solution for your particular circumstances, you really need to work with a tax pro who can help you set up a strategy that will work for you.

I wish I could help you; but I already have too many clients to take care of; so we are not accepting any new ones at this time.

Unfortunately, we don’t have anyone else to whom we could refer you. If you haven’t already done so, you should check out my tips on how to select the right tax preparer for you.

Good luck.

Kerry Kerstetter

 

Posted in Uncategorized | Comments Off on Disallowed EIC

Sec 179 Locks In Actual Expense Method

Posted by taxguru on February 24, 2006

Q:

Subject: question
 
If I take the section 179 deduction of $25,000 on my new truck for 2005 can I take mileage in 2006?

Thanks

A:

No, and here is why.

The IRS standard mileage rate includes a portion for straight line depreciation (17 cents per mile for 2005 & 2006).  If you use the actual expense method of deducting vehicle costs, and use the straight line depreciation method, you are allowed to switch to the standard mileage rate in subsequent years for that particular vehicle.

However, if you use any accelerated depreciation method, of which Section 179 is the most accelerated, you must stick with the actual expense method for as long as you have that vehicle.  To allow you switch to the standard mileage rate would in effect be allowing you to over-depreciate the cost of the vehicle.

I hope this helps.  Your personal professional tax advisor can give you more specific figures for your particular situation.

Kerry Kerstetter

 

Posted in 179 | Comments Off on Sec 179 Locks In Actual Expense Method

Where they find tax form designers

Posted by taxguru on February 24, 2006


(Click on image for full size)

Posted in Uncategorized | Comments Off on Where they find tax form designers

A Tax Preparer to Avoid

Posted by taxguru on February 24, 2006


(Click on image for full size)

Posted in Uncategorized | Comments Off on A Tax Preparer to Avoid

Gambling on retirement

Posted by taxguru on February 24, 2006

Posted in Uncategorized | Comments Off on Gambling on retirement

Posted by taxguru on February 24, 2006

Investment Interest Deduction Remains Alive and Well  – This is one of the many parts of a tax return that I would never try to do without a computer.  Even then, there is no guarantee it’s done properly.  I have seen Form 4952 computed all sorts of different ways by different software programs, both professional and consumer ones. 

 

Readers Fume Over Forced Upgrades – Not happy about Intuit’s sunset policy for Quicken and QuickBooks.

 

IRS Finds Charities Overstep Into Politics

 

IRS Releases New Guidance and Results of Political Intervention Examinations

 

FTB immune from liability for tax collection activities

 

 

Posted in Uncategorized | Comments Off on