Courtesy of Vic Harville
If Arkansans are so willing to pay the tax on stupidity, we might as well let them do that here.
Why Banning Gambling Is Counter-Productive
Posted by taxguru on March 12, 2005
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Class Warfare in the Sunshine State
Posted by taxguru on March 12, 2005
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Posted by taxguru on March 12, 2005
Cut emissions and your tax bill – A good summary of the special tax breaks for buyers of hybrid fuel cars, courtesy of Autoblog.
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Posted by taxguru on March 12, 2005
Lil’ Kim Says She Left Taxes to Accountant – This is the now classic Willie Nelson Defense to not paying taxes. It won’t do much good for the million dollars in taxes she owes IRS.
Gas Prices Seen Hurting SUV, Truck Sales – Well, duh. As I’ve been saying every time some freedom hating environmental wacko proposes banning SUVs or charging extra sin taxes for owning them, their cost and the cost of their fuel and insurance are penalties enough.
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Posted by taxguru on March 11, 2005
Pay Your Taxes, Pa-Rum-Pum-Pum-Pum…. – Thanks to Ben Cunningham for this article on the “creative” way one city in India is using to motivate people to pay their property taxes. This isn’t meant to give any ideas to tax agencies here in the USA; but to show just one more way in which taxpayers are made to suffer.
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Posted by taxguru on March 11, 2005
Survivor Winner Explains Tax Flap – Richard Hatch is supposedly so smart, yet he expects anyone to believe that CBS was supposed to pay his taxes? What a moron! Let’s see how well he survives the slammer.
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Amending Tax Returns
Posted by taxguru on March 11, 2005
Q:
Mr. Kerstetter,
I came across your blog via a link in “The Cool Tricks and Trinkets Newsletter #341 3/10/2005”
I noticed that you responded to questions in your blog, but did not see how the questions were submitted to you.
I went to your “.org” web site and got your e-mail address there.
I was wondering how long after submitting a tax return has the IRS to review/audit ones return?
I ask this in the context of someone discovering a mistake on a previously submitted tax return and wondering if they should file an amended return of not.Thx
Rgds,
A:
Legally, you have three years after you file an income tax return with IRS to go back and fix any errors.
If you are going to pay them more money, there shouldn’t be a problem in filing an amended return (1040X).
However, if you are asking for a refund, there is a high probability of having IRS conduct a full blown audit on that year’s full tax return, not just the items you are changing. If you go to my blog (www.TaxGuru.net) and type Amended into the search box, you will find several items I’ve posted about this topic.
Kerry Kerstetter
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Posted by taxguru on March 11, 2005
Q:
kerry, i am a traveling physical therapist (i work for a company that finds contracts in different states…..i’ve been back and forth from florid to connecticut…… and those contracts are 3 months at a time). can i take a section 179 deduction for my vehicle since i drive over 50% it’s total miles in 2004 for work? thank you
A:
As has long been the case for business vehicle usage, you have the option of claiming the IRS standard per mile rate or the actual expenses of operating your vehicle (including Section 179 and normal depreciation), prorated to the business percentage.
I have always believed it’s a good idea to calculate the deduction both ways and then use the method that gives you the best tax savings. However, if you do choose to take the actual expense method and claim the Sec. 179, you will need to continue using that method for future years for that particular vehicle.
This is standard tax info, that any competent tax pro can help you with.
Good luck.
Kerry Kerstetter
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Recapturing Secton 179
Posted by taxguru on March 11, 2005
Q:
Enjoyed reading your work on the site. What is your opinion(sole propreitor) if you buy an SUV in December, 2004, weighs more than 6,000 pounds and you take the section 179 without knowing what percent you will use it for business over the period of years you own the vechicle. Suppose I used it 80% for business in 2004(Dec only)and take section 179 for 80% of the cost. Assume the cost is 25,000, so I take 80% or 20,000 section 179. What happens if in 2005 if I use the vehicle 60% for business or increased it to 90%. Any adjustments needed for the years in question because of the change in persoanl use. Thanks in advance.
A:
You only need to recapture part of the Sec. 179 deduction if the business usage slips below 50%.
I discussed this earlier:
www.taxguru.net/2004/11/section-179-sales-recapture.htmlGood luck.
Kerry Kerstetter
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