Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for November 8th, 2007

Posted by taxguru on November 8, 2007

Posted in comix, PropertyTax | Comments Off on

Posted by taxguru on November 8, 2007

Posted in comix, IRS | Comments Off on

Condo Sale…

Posted by taxguru on November 8, 2007

 

Q:

Subject: capital gains dilemma

I’m not sure if you answer questions or not but I’ll shoot an quick email to find out.

 

I have a question on capital gains. I bought a condo in Boston in 1998 and lived in my condo until January 2006 in which I started to rent it. Since then I got married and we bought a house in June 2006.  Even though we both work our mortgage is high and money is too tight and am considering selling my condo to put towards our mortgage to reduce payments. 

 

I am trying to learn about capital gains and have read if you live in your property that you are selling for 2 of the 5 years before the sale you would not have to pay capital gains.  Can you tell me if I am eligible to avoid capital gains.

 

Thank you,

 

A:

You should qualify for up to $250,000 of tax free gain, and possibly a little more for your husband on a joint 1040. A little twist will be the recapture of depreciation claimed on the condo during its use as a rental.

I have a lot of the details explained on my website
 
You should go over the specifics of your unique situation with your own personal professional tax advisor.

Good luck. I hope this helps.

Kerry Kerstetter

 

 

Posted in 121 | Comments Off on Condo Sale…

Nevada LLC…

Posted by taxguru on November 8, 2007

Q:

Kerry,
Hello I hope all is going well. I recently viewed your website and was inspired to contact you based on the fact that you seem to have a no b.s. attitude towards taxes. I have an LLC which buys and sells real estate and I am in the process of selecting my CPA. The physical address is in Va, but I Incorporated in NV and would like to find someone who can help me maximize my profits through taxes. Any chance you would be able to help me or have an recommendations?

Best Regards,

A:

There are far too many options to consider and possible scenarios that can be used to achieve your goals for me to even begin giving you specific advice via this medium.  You will need to work directly with an experienced tax pro who can analyze your unique circumstances.

You need to be extra careful of the state tax issues.  Just having your corp set up in Nevada won’t negate the requirement to file tax returns for any other states in which you sell real estate.  However, a good tax advisor will be able to help you devise effective ways by which to shift the net profits out of the taxable states to the tax free Nevada.  In fact, that would be a good question to pose to any prospective tax advisors you are considering using.  Any who don’t know how to do this, or tell you it isn’t possible or is too much hassle to justify the tax savings, are obviously not experienced enough to fill your current needs.

I wish I could be more help; but I already have too many clients to take care of properly; so we are still trimming back on the difficult clients and are not accepting any new ones at this time. 

Unfortunately, we don’t have anyone specific to whom we could refer you. I did recently post some names and links for some like-minded tax pros around the country

If you haven’t already done so, you should check out my tips on how to select the right tax preparer for you. 

I wish I could be of more assistance; and I wish you the best of luck.  

Kerry Kerstetter

 

TaxCoach Software: Finally! Plain-English Tax Planing That Builds Your Business!

Posted in LLC, StateTaxes | Comments Off on Nevada LLC…

More attacks of the Insane AMT…

Posted by taxguru on November 8, 2007

More Ill-Advised Tax Hikes – Fairness and common sense have to take a back seat to our rulers’ addiction to the money this idiotic tax generates for them.

Posted in AMT, comix | Comments Off on More attacks of the Insane AMT…

When will we know the 2008 IRS mileage rates?

Posted by taxguru on November 8, 2007

Q:

Subject: 2008 standard mileage rate?

I have not been able to find out if this number as been released. 

I was impressed by the fact that your site was the only one I found with the 2008 Section 179.  Good Job!

Have a Wonderful Day!

 
A:

Based on the past few years, the IRS should be announcing their 2008 standard mileage rates any day now.  They may be holding off a bit until some of the fluctuation in oil prices tapers off.

The IRS announcement will be posted on their website

I’ll also be posting it to my blog as soon as it comes out.

Kerry Kerstetter 

 

Follow-Up:

Thank you very much!

Have a Wonderful Day!

  

 

Posted in IRS, Vehicles | Comments Off on When will we know the 2008 IRS mileage rates?