Questions tagged [taxes]

For any question related to taxes and not otherwise covered by a more specific tag such as income-tax, sales-tax, etc. Whenever asking about taxes, please also specify a country tag such as united-states, canada, united-kingdom, etc.

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5
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1answer
4k views

Does money borrowed from other people in U.S. need to be reported in tax report?

I have a friend who is willing to lend me some money (about 40k dollars), since I am not financially well. We are foreigners studying and working in the U.S. (F1 and H1 visas). We report taxes ...
7
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2answers
12k views

Are tax federal or state tax refunds taxable in the next tax year?

If I get a refund from IRS and or from a state tax agency, will that refund be considered taxable income for the next year's federal or state income taxes?
3
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1answer
261 views

401k tax advantage vs lower fees in taxable account

Is there a formula or rule of thumb to help determine when it's better to put money in a 401k, 403b etc. or a regular taxable account assuming similar investments and returns (for example the same ...
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1answer
1k views

Can I connect a PayPal account to a business bank account instead of a personal bank account?

If I write online content and get paid through my PayPal account, and if the PayPal account is connected to my business bank account, does my income automatically become my corporation's income? ...
1
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1answer
1k views

How much money am I allowed to transfer to India into my own Indian account as a non-Indian foreigner?

I am a non-Indian foreigner and recently opened a savings bank account in India. Is there a maximum amount I am allowed to transfer taxfree under Indian Law to India for my living expenses here? I ...
7
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2answers
3k views

When filing MFS (US), do I need my separated spouses W-2?

So, I've never been divorced before, and I've always done our taxes. That said, I have no idea how Married Filing Separately works. My date of separation was in March of this year (2013), and ...
3
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1answer
128 views

Is it worth the trouble to enter a contest with a non-cash prize?

Currently Nikon is holding a digital film-making contest. The top prize is $17k worth of professional Nikon photo equipment. The problem is I assume the tax on this stuff will be approximately 5.5k. ...
4
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1answer
250 views

Question about large capital gain

For recent years my income has been about $20k. I'm hopeful that this year I can sell vacant that I bought in 2001. I paid $600k and hope to sell it for about $3,000,000. I live outside the US but the ...
5
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2answers
319 views

If I haven't filed in 2 years, does year 1's refund automatically apply to year 2 and prevent penalty?

I haven't filed in 2 years. But the first year I was owed a refund; let's say $1k. Year 2 I under paid. Let's say it was by exactly $1k. Will the unclaimed year 1 refund automatically cover the year ...
2
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2answers
1k views

How to declare/deduct owner occupied multi-unit property that only owner occupied one year, but is partially rented the next?

Context: I'm still doing 2011 and 2012 taxes. I purchased a house in the beginning of 2011 that is 3 units all of which needed some level of renovation. For the first year, 2011, I lived in the whole ...
6
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1answer
781 views

It is ok if I under-report my cost basis for certain securities?

Yes, I would like to say that my cost basis is lower than it actually was (and thus pay more taxes). Quick story, which I think is mostly correct (but I can't remember all details): I own shares ...
1
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1answer
183 views

Can I start a home based business with an online company, if I owe back taxes?

I am currently looking at an online company that was advertised as a way to make extra money from home on the internet. It has a decent start up and the information provided on the website about the ...
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0answers
5k views

US sales tax refund for international tourists/visitors? [duplicate]

Will I get tax refunded at the USA airport for a new iPhone I purchased there? I am an Indian and was in the US on a holiday.
2
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2answers
1k views

Trading US stocks from India

I used to live in US on H1B visa. I have opened a trading account in US. Now I have moved back to India but I am still doing trading with US account. Also I have not closed my bank account in US. My ...
4
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1answer
884 views

Which tax year does a bonus fall under?

If I have a bonus that relates to the 12/13 Tax year but was paid after 6th April 13, which tax year should I pay tax in?
9
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3answers
91k views

What is the difference between pre-tax and post-tax paycheck deductions?

I am getting insurance for about 4 months, the length of my contract with a company. I am given the option of having the cost deducted from my paycheck pre-tax or post-tax. What is the difference? ...
4
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2answers
465 views

Should I File a W-4 Next Year If I File One In The Middle Of This Year?

We recently became married and we will soon be filling out a W-4 and submitting it to our employers. The question on my mind as we're filling out the W-4 is, should we be submitting a new one on Jan ...
0
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1answer
170 views

Why does paying out all corporate income as salary reduces the risk of being labeled a personal service business?

This blog article on PSB outlines the rules clearly. But in one of the comments it says: However, if you are paying mostly salary to yourself, your risk is minimal even if assessed What is the ...
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1answer
3k views

How is the Canada Employment Amount tax credit calculated?

To calculate the Canada Employment Amount as a non refundable tax credit, this link explains: Canada employment amount is a non-refundable credit for work-related expenses, such as home ...
2
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1answer
355 views

Should the cost of using public transit get deducted from my personal income or my corporations' income?

As a full time employee, certain costs are deductible from personal income. (e.g cost of public transit pass.) When the full time employee becomes an independent contractor, do these expenses ...
0
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2answers
1k views

Tax Implications of Renting a property

I am thinking of buying a condo and renting it out. Let's say I buy it for $200k, and then put it up for rent at $1500/mo. I have to pay $500/mo in HOA dues + property taxes. How much tax do I owe at ...
3
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1answer
1k views

What are the time limits on a 401k direct rollover?

Is there a time limit from the date you request a direct rollover from your 401k until your former employer completes the transaction? When does the 60 day rollover clock for the IRS begin?
2
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2answers
2k views

Do I need to file taxes jointly with my girlfriend if we live together?

Before I met my girlfriend, I lived in a condo. Now I rented it out and I live with her and pay her rent. Now we are not legally married or signed common law agreement or anything like that, but I ...
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1answer
5k views

As an independent contractor, should I always charge the client the GST/HST?

As an independent contractor, does my hourly rate determine if I should charge GST/HST to the client? Or should I charge it always?
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1answer
288 views

What corporation tax am I required to pay as an independent contractor?

Refer to this link at Canada Revenue Agency. I am unsure that for an Ontario resident who opens up a corporation, what corporation tax would I pay? Let's say I charge 60$/hr + 13% HST to my client. ...
0
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1answer
125 views

Is money from selling an investment property taxed at the marginal rate?

If I sell my condo (an investment property, not my primary residence) then I imagine I need to pay tax (provided I make a profit). If I don't make profit, can I use the loss against my salary income ...
2
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2answers
110 views

How can contractors recoup taxation-related expenses?

I am doing consultant as my job side job. I am wondering if I should put tax in my invoice on top of my charges. This is the current state of the negotiation regarding taxes: You will not be ...
5
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2answers
11k views

Do I need to refile taxes after receiving late K-1?

I inherited a relatively small amount of money from a trust after my grandmother passed away in 2012. The amount was well under the threshold of paying any estate taxes at either the federal or state ...
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2answers
869 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
3
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2answers
636 views

US tax liability for a non-resident with a US LLC that does business in the US

I'm a non-resident of the US and I've never been to the US. However, I have an LLC in the US. I sell computer software warranty services where we fix computer problems remotely from India. I have a US-...
3
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1answer
194 views

Consult as an individual or as a company?

I work full time (so benefits, etc are covered), and recently have been offered a consulting position for a previous employer. I have read and fall within the acceptable guidelines of the Moonlighting ...
2
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1answer
1k views

Gift Tax owed on the transfer of a Home Equity Loan

I'm in a bit of a conundrum here: My sister owns an investment property outright (no loan on it...) She lives with me in my primary residence. Now, my family and I are moving to another house, with ...
3
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2answers
140 views

Do dividend quotes for U.S. stocks include witheld taxes?

Consider, for example, the following dividend distribution table for SPY: http://finance.yahoo.com/q/hp?s=SPY&a=00&b=29&c=1993&d=08&e=19&f=2013&g=v When an entry in the ...
2
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1answer
500 views

Does the Canada Revenue Agency (CRA) tax other income at the marginal tax rate?

I am employed full time as a software developer. If I wish to earn money on the side doing Wordpress websites through Odesk, Elance, etc., I will report that to the CRA under other income. Is this ...
2
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2answers
1k views

Never filed FBAR in 17 yrs and now need to cash out RRSP

I am a Permanent Resident from Canada. I moved to Texas in 1996 and I never filed any IRS documents (such as FBAR) informing them of my Canadian investments. I have about $33,000 in RRSP and $18,000 ...
2
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2answers
1k views

Should I pay off more of my principal before selling my house?

If I'm selling my home for a profit, does it make sense to pay more off the principal before doing so? On one hand, it seems a greater percentage of the sale would go to you, but on the other hand, ...
3
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2answers
4k views

Tax consequences of a Cashier Check made to me?

A friend and I are buying a property together. My friend does not live in my state, so he sent me a cashier check for $40K payable to my name. The bank asked him for my social security number to make ...
7
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2answers
5k views

Are S-Corp tax savings irrelevant at a high level of business income?

I have operated as a consultant under my LLC classified as an S-Corp, of which I am the sole owner and sole employee. Over the past many years, I have had, say, a business income of $60,000, which is ...
8
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3answers
448 views

If I expect to have little earned income in a few years, should I prefer a traditional IRA to a Roth IRA now?

I'm currently in the 25% tax bracket, with a salary of $71K; I max out my contributions to a Roth IRA and contribute to a Roth 401(k) past my employer's match. I'm also planning to attend grad school ...
0
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2answers
241 views

Stock sale cost basis calculations for 2013, now that rules changed, is FIFO or another method the smartest financially?

I was in an employee stock purchase program that auto-bought stock every two weeks at a 15% discount as part of a paycheck deduction. This was BEFORE the 2008 crash and during and after it. This ...
10
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1answer
363 views

How do taxes work with donations made to an individual, e.g. for free software I wrote?

If I offer a piece of software for free, but give users the option to make a donation on the webpage, what laws govern those donations? Do I report it as income? Is it subject to just the same amount ...
1
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1answer
352 views

How to report “Business Interest Expense” in California Tax Form 540NR Schedule CA

I am reporting interest on a loan used to purchase shares in an S-Corporation as 'business interest expense' on federal form Schedule E (2012) as a Non-Passive loss, as described by the IRS here: ...
1
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0answers
465 views

If I give my daughter $57K for her mortgage down payment and closing costs, will I owe taxes on the gift?

My daughter lives in Florida. I would like to give her $57K of my savings to cover her mortgage down payment and closing costs. I live in Puerto Rico. Will I have to pay income tax on this transaction ...
8
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2answers
56k views

I plan on receiving a $200,000 personal loan via wire transfer. Do I have to report this to the IRS?

After researching online, I found many websites that said wire transfers are not reported to the IRS, but others said that they were reported. I just want to make sure that I do not have to pay taxes ...
3
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3answers
2k views

What is the optimal way to calculate tax: apply tax to each item, then sum the prices, or sum the prices, then apply tax? When are prices rounded?

What is the optimal way to calculate tax? Lets say tax is 7.5% or 0.075. $2.32 X 1.075 = 2.494 --> Rounded: $2.50 You can say that item is $2.50 (tax included) and if you have two items: $2.32 ...
8
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4answers
19k views

Which state do you pay taxes in if you work in a different state than your employer? Specifically, if you live DC and work for a company in New York?

I've been doing some research on paying state taxes while working remotely and I will be consulting a tax advisor or CPA in regards to the matter; however, I love the StackExchange and I wanted to see ...
2
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2answers
11k views

What capital gains taxes do non-resident Canadian citizens owe?

I live in the Caribbean. I remain a Canadian citizen, but a few years ago I declared myself a non-resident for tax purposes. Assuming I have no income in the Caribbean, and I make $100,000 on stocks ...
4
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3answers
622 views

Does the IRS give some help or leniency to first-time taxpayers?

As young people enter the work force, does the IRS give some help or leniency to first-time taxpayers? Or is it generally the parents' job to make sure that their children pay their taxes on time ...
0
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1answer
3k views

What taxes do I pay on interest earned on a savings or GIC account?

If I put 10 000 $ in a savings account that pays 1% interest, then after a year, I get 100 dollars in interest. Is this 100 $ taxed at my marginal tax rate? Does the answer change if the account was ...
10
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4answers
1k views

What considerations are there for making investments on behalf of a friend?

I've thought of two approaches so far: Pool their money into my own brokerage account and simply split the gains/losses proportional to the amount of money that we've each contributed to the account. ...

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