Questions tagged [taxes]
For any question related to taxes and not otherwise covered by a more specific tag such as income-tax, sales-tax, capital-gains-tax etc. When asking about taxes, please also specify a country tag such as united-states, canada, united-kingdom, etc.
5,480
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Found a heap of BTC but have no documentation. What do I do?
Many years ago, I bought around 400 BTC for a few hundred dollars (?) and stored them in a hard drive. Shortly after that, I lost this hard drive, wrote it off as an "Oh well" and didn't think ...
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votes
13
answers
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Isn't "I bought [blank] as a tax writeoff" complete nonsense?
There's a trope in movies where people do something to keep from being bumped into a higher tax bracket (For example, in The Big Lebowski: "I'll have to check with my accountant, but it might bump me ...
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5
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I have sole custody of my child but the child's father's brother claimed him as a tax deduction
I have court papers showing that I have full and sole custody of my son and that he was with me like 99% of the year. I let my son's father have him a few weekends last year but only a handful.
My ...
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votes
4
answers
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The USA "self-employment tax dodge" mystery
For non-US readers:
In the US, for those who are self-employed, there are many specific taxes. One particular tax is the confusingly named "The Self-Employment Tax".
Thus, if you are self-employed, ...
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votes
8
answers
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Why doesn’t every company and individual use tax-havens to pay less taxes?
The main message emerging from Panama Papers, Paradise Papers, and the like, is that it is the rich, powerful and famous who make use of and benefit from tax havens.
And yet, the same law that these ...
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votes
2
answers
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Our friends and we often barter babysitting time with each other. Do we owe taxes?
Our friends and we have an informal agreement that we will babysit eachother's kids when necessary. We don't pay any cash to each other for the service, but we agree to "repay" by providing ...
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65
votes
2
answers
16k
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I won a car in a poker game. How is that taxed in Canada?
For the sake of title transfer and taxes, is this a gift or a sale?
This was a private game. We both tossed our keys into the pot. I won and the vehicle is now sitting on my driveway.
I live in ...
user47387
57
votes
11
answers
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Does my tax refund need to be as close to zero dollars as possible?
Am I doing my taxes wrong? I am receiving around 1000 dollars in tax refund, and someone tells me it should be as close as to zero as possible, I thought the tax refund was government giving back most ...
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votes
10
answers
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What dissuades people from lying about where they live in order to reduce state income taxes?
Lets say you work in Chicago and live in Chicago but put your home address as somewhere in Indiana. Then every week you collect the mail that is being sent to you in Indiana. Wouldn't you save a lot ...
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4
answers
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Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?
I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year.
My ...
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51
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2
answers
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Can I hire my kid and start a Roth IRA for him?
I own an LLC, of which I am currently the sole member. It's my main source of income.
I am wondering if there is a reason why I could not do the following:
Hire my child as a part-time employee of ...
- 2,761
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votes
6
answers
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Why are businesses allowed to deduct expenses from their income, while individuals generally cannot?
In general, it's an accepted principle that businesses should be allowed to deduct expenses. How did this principle come about? And why doesn't it appear to apply to individuals to the same extent?
...
- 1,137
48
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3
answers
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If a kid makes money, do the parents take on the tax liability?
Suppose your kid (8 years old) decided to set up a neighborhood lemonade stand and by some freak occurrence managed to somehow make about $3,000. How does one manage the tax liability on that income? ...
- 1,217
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12
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How much more than my mortgage should I charge for rent?
We're considering moving at some point in the future, and right now we have a mortgage on our home. So far we've been here about 3 years, and we're considering renting out our home.
Obviously there ...
- 1,159
46
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4
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Is Elon Musk really exploiting a loophole to avoid taxes?
I've been loosely keeping up with some of the news about Elon Musk selling TSLA shares to pay for an upcoming tax bill (for exercising options from 2012). There is a lot of discussion surrounding this ...
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45
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12
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Why do Americans have to file taxes, even if their only source of income is from a regular job?
I live in Europe (Czech Republic) and as long as employment is my primary source of income I don't need to file any taxes on my own, as the company's accounting department will do that for me by ...
- 5,832
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votes
2
answers
5k
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What US tax laws apply to a 13 year old game developer?
I'm a thirteen year old game developer and I am wondering what the tax laws are as a minor in the US. I don't currently make any money off of my games but I'm thinking of selling on the Google play ...
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votes
4
answers
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How can I get a job without pushing my family's income into a higher tax bracket?
I live in Seattle and turn 18 before the year's end, and I'm told my family has an income such that if I get a job and make more than $1000, then I would push my family into a higher tax bracket.
...
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6
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What do I need to watch out for when receiving a large sum of money as a gift in Germany?
I live in Germany.
If my father would want to give me a large sum of money - let's say 10,000€ - what would be the safest, least bureaucratic way to do this? I'm an apprentice and I still receive ...
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3
answers
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Tax implications of BTC for rent
I'm considering doing a trial run with my tenants and let them pay some or all of their rent in BTC.
My motivations:
BTC isn't considered a currency so it's taxed as an asset under capital gains tax.
...
- 2,974
41
votes
5
answers
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Every month I make money from Patreon. I want to split my income with a partner. How do I avoid paying taxes on 100% of the income?
Let me start off by saying I have no idea what I'm doing here. The context is, I am making a game, and every month I make $400 or so from Patreon (people are my patrons, and they are paying me because ...
41
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1
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Canadian citizen, TN worker, commute daily from Canada: am I a US person for tax purposes?
I only have citizenship of Canada.
I work for a US company on TN Status.
I commute daily from home in Canada to office in US and back.
I do not reside in the US.
I get a W2 and file taxes with the IRS ...
39
votes
4
answers
11k
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Why is there a cap on 401k contributions?
In theory, the government wants everyone to save up as much as possible for retirement so that citizens don't end up starving when they're no longer able to work. But in practice there is a limit of ...
- 5,832
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votes
5
answers
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How to report $27 in cap gains affordably
I'm preparing my taxes using TurboTax's basic free tier. Last year I had $26.62 in realized long term capital gains. To report this using TurboTax, I need Premier, which is a $54 add on.
Even in a ...
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39
votes
2
answers
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House lost in fire.. tax impact?
Like hundreds of others, I lost my house (primary residence) during the Oregon wildfires in September. I had purchased it just two years ago, so still have ~$210,000 on the mortgage.
My homeowners ...
- 463
39
votes
6
answers
5k
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How can I adjust tax withholding so that I don't get a large Tax Refund?
I'm a few years out of college now. I've filled out my W4 accurately and I still get a tax refund every year of a pretty sizable sum. The thing is, I have student loans and I would much rather have ...
38
votes
8
answers
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Do I have to explain the source of *all* income on my taxes?
I live in the US. A complete stranger knocked on my door, gave me a pallet of $20 bills (which in total amount to several hundred thousand dollars), and left without saying a word. As far as I can ...
37
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4
answers
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Deducting charitable donations under new U.S. tax law
I usually donate about $20k to charities every year, and I don't have many other deductions to claim. Given that the new tax law doubles the standard deduction to $24k, I effectively don't get tax ...
- 2,761
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votes
6
answers
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Holding rent money for my friend which amounts to over $10k?
My close friend has just moved into an apartment with me and due to some circumstances he would like to pay me the rent money for a year upfront. The total amount will be about $11k total, and we as ...
- 1,993
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5
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IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly
I recently received a letter from the IRS based on my taxes for 2015. I believe I did not understand the proper workings of a Roth IRA. I was under the impression I could pull my money out and only ...
- 1,363
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votes
8
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What are the differences between capital gains and other forms of income?
It appears that capital gains are treated differently than other forms of income. What are the differences in how capital gains are earned compared to other forms of income? How does the tax code ...
- 5,832
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5
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How to handle the Equifax Breach this tax season?
One of the most common forms of fraud is tax return fraud. Generally you don't find out until you go to file and someone has already been kind enough to file your tax return, AND take a payment for it....
user65616
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11
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I hate the high taxes in NYC. Should I incorporate in or move to another state?
I'm in NYC currently and make a good living doing remote web development work and I get a 1099 at end of year. My taxes take about 35% of my paycheck.
I was thinking about incorporating in another ...
- 2,025
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1
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When I sell only a portion of my shares of a stock, which shares actually get sold
Two years ago, I bought 100 shares of XYZ.
Yesterday, I bought another 100 shares of XYZ.
Today, I sold 100 shares of XYZ.
Which 100 shares did I actually sell? If it were the 100 shares from 2 ...
33
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11
answers
9k
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Case against home ownership? High income, no home, don't necessarily want one
All numbers are in USD and my tax situation pertains to US taxes.
I am at a crossroads and am seeking help. I am a single man who has always made a good living and generally enjoy my life as I please. ...
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33
votes
10
answers
11k
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Is it possible to make money by getting a mortgage?
I met with a financial advisor for the first time yesterday (trying to get my things in order for retirement). During our meeting he told me a story that sounded pretty impressive, but the more I ...
- 1,065
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8
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10k
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Are services provided to Google employees taxed as income or in any way?
The particular service I want to look at is food (though I think the same ideas should apply to all services). So Let's say that a Google employee spends a dollar on food, purchasing groceries. They ...
- 433
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5
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Pros/Cons of a Health Savings Account (HSA) in the USA?
I am wanting to know the real benefits or pros/cons of a HSA in the USA. I have now been given the option of signing up for one due to healthcare changes. I understand some of the basics, but after ...
- 1,507
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3
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How do you file taxes earlier than an identity thief?
One of the recommendations to avoid tax return fraud/identity theft is to file your taxes as early as possible:
FTC
Smart Money
Identity Theft Resource Center
USA Today
Notably, the IRS does not ...
- 5,271
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votes
3
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Made a down payment for a vehicle in cash for $10,000 and a Form 8300 was sent to IRS
What does the IRS do with forms 8300 they receive? I have never bought in cash, but made a car down payment for $10,000. A notice was sent to me that said a Form 8300 was filed with The IRS. Do they ...
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32
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2
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I'm giving my car to my sister. Should I gift it or sell it?
I have a car registered in Connecticut. I want to give the car to my sister in Oregon. The blue book value of the car is approximately $5000. (It will be a very generous gift - but the car was a gift ...
- 484
32
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1
answer
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Do I have to withhold money when buying real estate from a foreigner?
I have recently purchased a house in the U.S. for ~$375,000 (and I'm a U.S. citizen). It was disclosed to me about a week before closing that the sellers were from China. Aside from a few headaches, ...
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31
votes
4
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'Gifting' a house in the UK
In UK news recently, there has been much talk about so called 'dementia tax', that is, the government using assets (such as property) to pay for social care in old age.
Whether or not people should ...
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3
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5k
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What is the difference between salary and bonus with respect to taxes?
Let's assume one company offers 200k salary and another 100k salary and 100k bonus at the end of the year. Is there a difference for me at the end of the year (after all taxes are returned)?
The ...
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7
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Someone stated that my uncle died in Canada and there is money for me [duplicate]
Someone contacted me and said that someone with a similar last name died and left me a large amount of money. He gave me information and forms from a bank, and other pertinent information.
I then ...
- 301
30
votes
7
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43k
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Tax consequences of paying "rent" to romantic partner that owns the house
I moved in with my romantic partner nine months ago. My partner owns 100% of the property and pay about $1000 per month to the mortgage (minimum is something like $300). Partner had no intention of ...
- 423
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1
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I am a Canadian resident who wants to gift my Adult US child CAD$175K. What are the tax implications?
I am a Canadian resident who wants to gift my adult US child $175K Canadian. What are the tax implications for the US resident who resides in California?
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2
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How to split bills without it showing as income?
I take dance lessons with one other person: we share the teacher's time 50:50 and pay half the cost each. Currently, my partner pays this money into my bank account and then I pay the teacher. However,...
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29
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3
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How could George Clooney have paid his friends' taxes?
According to an article published today in several media outlets including Fortune magazine, George Clooney once gave 14 of his friends $1 million dollars cash. The article also claims that Clooney ...
- 1,290
28
votes
3
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9k
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Accountant/ lawyer will not return my call
I have an accountant who is also a lawyer who did my taxes for about 7 years. I received a notice from the IRS for the years that he filed the taxes saying that I owed $5,000. I sent him the notice ...
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