53

Congrats! You found a legitimate arbitrage situation that indeed could make you some money. These are increasingly rare, which does make it kind of cool, even if you end up not taking advantage of it. IMHO it's not worth it due to the spending cap. The deal you Discovered appears to pay 5% on PayPal transactions, including those made to friends and family, ...


42

In theory, partner treats home as 1/2 rental unit. This creates a far more complex tax return, forces depreciation and expensing of half of all costs, including all utilities and maintenance costs. They must charge you a 'fair market' rate for rent or have that number considered imputed income. In reality, I don't imagine that any significant number of ...


36

For practical purposes, you will need/want to remove the lien before you sell the car1, so unless you plan to run the car until it falls apart2, you will need to remove it at some point. The question then becomes: do I remove it now, or wait until later? I've not been able to find any reason why keeping the lien attached to the car's title would be ...


31

This is not a per diem. Your employer is calling it a per diem, but it simply isn't. It's just ordinary wages and must be taxed and reported as ordinary wages. As just the most obvious problem, consider this rule: If you don’t prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in ...


28

If you just mail your taxes in, you're fine as long as you are postmarked by July 15. IRS won't actually open it for days, or even weeks, likely, but you'll be in the clear. The most "generic" version is Free File Fillable Forms, which is basically "fill your 1040 out online and then send in the result". As to whether you need to fill ...


22

It certainly seems like they could consider this late, but that's really up to them to decide if they want to hold you to the second or not. If they do, however, consider appealing the fee. From the IRS page on penalties: The IRS may abate your penalties for filing and paying late if you can show reasonable cause and that the failure wasn't due to willful ...


20

If you are actually a dependent, then you can file an amended return using a form 1040x. Make sure you read up on what actually makes you a dependent vs not before doing this to avoid committing tax fraud. Talking about what your parents will get if you file an amended return vs not is a red herring. It has nothing to do with the central issue of whether or ...


17

Assuming you are not married, the rent payment would be income to your partner which they would have to claim as such on their tax filings. It would also likely complicate their tax filings somewhat. As to your concern with being "docked 30%" that doesn't make much sense. First, it won't be anywhere close to 30% unless they have a very high income. ...


17

First of all, you have already submitted your tax return, so the deadline tomorrow does not apply to you. That having been said, you’ll want to get this straightened out ASAP. If your parent is going to claim you as a dependent on his or her tax return, then you will need to file an amended return. This is a Form 1040X. On this return, you will calculate all ...


13

Technically, yes. But it may not be a good idea. You will need to declare it, because it's over $10000. And you will have to explain to the officer why you are carrying $1M. If they don't believe your explanation, they will take the money from you.


12

When I paid off the loan, I wanted to get the lender off the title. It streamlines the transfer of title when you are selling the car. Some answers have said that it can save you money on insurance. I think that is only true if you were keeping specific levels of coverage because the lender required you to have that particular coverage, and you will be ...


10

If your partner can take rental expenses, this can work rather nicely. I'm not a tax accountant, so I'm not going to say definitively that this is allowed in a housemate situation. But it would definitely be if the property was a duplex. The fractional rental, if legal, gives your partner advantages that others have not mentioned. These won't turn the ...


10

Unless the law changes again, if they overpaid you based on the numbers on your 2018 or 2019 tax return, you don't have to refund the extra money. That was deemed an acceptable loss in order to get the money into people hands in the spring of 2020. If on the other hand your 2020 return filed in spring 2021 shows that they underpaid you, you will get the ...


10

Based on the information you've provided here, it sounds like the amount that your employer gave you calling it a "per diem" should be taxable. It also sounds like they are evading taxes, for both themselves and for you. You do need to ask your accountant about this, and/or a tax attorney. Normally, travel expenses that you are reimbursed for do ...


9

A co-worker of mine paid off his car, got the lien release and then moved. During the move, he lost his copy of the letter. In the mean time, the place he purchased his car from had gone out of business. Since the paper title had a lien holder on it, and there was no way to verify that the lien was paid off, he could not sell his car and the new state would ...


9

The Federal government doesn't have to refund money if you don't file a return. In fact if you wait too long you will forfeit the refund. This from 2019: Unclaimed income tax refunds totaling almost $1.4 billion may be waiting for an estimated 1.2 million taxpayers who did not file a 2015 Form 1040 federal income tax return, according to the Internal ...


9

No problem. The IRS scans your envelope when they scan your documents. In any subsequent review or audit, they can, will and do look at the postmark when deciding things. And the postmark is what matters. US post offices used to be open til midnight on April 15, for that exact purpose. Postal workers would literally stand at streetside and take tax forms ...


8

This is how it works in my experience regarding getting a mortgage: Owner occupied. If you put less than 20% down you have to get PMI. Rental. You are required to put 20% down. Not all lenders will make loans for rental property. Now some people start with a owner occupied and change to renting the property years later. They do this when they have to move ...


8

As noted in the comments above by Dilip Sarwate - you'll have to depreciate your real estate. More specifically, you can review a couple of IRS publications such as Publication 535 (2019), Business Expenses which goes into some detail about what is considered a deductible expense. The shorter answer is in Deducting Business Expenses where the text explains ...


7

The answer to the question “Do you have to file?” is found in the Form 1040 instructions. There, you’ll find Chart A, described as “For most people.” This chart shows a minimum gross income at which you are required to file. For couples that are Married Filing Jointly, this minimum gross income number is either $24,400; $25,700; or $27,000; depending on your ...


7

If you were to ever lose the title and lien release or have them accidentally destroyed (fire, flood), then you have both the state and credit union to deal with to get replacements, instead of just the state, unless you had already removed the lien.


7

First off, if you needed to file Schedule 1, then you should have answered "yes" to the question at the top of the page - "At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?" - since you did some of that. This doesn't affect your taxes directly and doesn't ...


7

Retirement plans and other benefits are the responsibility of the US Department of Labor (DOL). They published a list of Ten Warnings Signs That Your 401(k) Contributions Are Being Misused two of which may apply to your situation: #3 Your employer failed to transmit your contribution to the plan on a timely basis #7 Former employees are having trouble ...


6

Your per diem is reasonable if you were expected to be "on the road" most of the time. The IRS allows a flat rate per diem as long as you file an expense report. (Because of this rule, your employer generally doesn't require receipts for small purchases. They don't want your scan of $2.39 from Dunkin Donuts.) The problem is this system doesn't ...


6

The IRS considers the postmark date to be the date of filing, so it's perfectly fine so long as your envelope makes it to your post office by the close of business on the due date. This is true for the return itself and any payments made by check. If you're particularly concerned about having proof of timely filing, consider using Certified Mail. The post ...


5

One reason an offshore account is used is to hide income from the tax authority. Then when the person completes their tax forms they neglect to report the income. They never report the bank balance. Thus they commit tax fraud. Another reason to do it is if the income itself was illegal, or they want to hide a significant portion of their wealth from ...


5

If you are not present in the US in 2020, you will not be a resident alien for US tax purposes. Although the US taxes US citizens regardless of where they live, causing some people to renounce US citizenship, that doesn't apply to you because you are not a US citizen. If you were a resident alien by passing the Green Card Test, then you would remain a ...


5

As an employee, you are not allowed to deduct any business expenses yourself. You can get reimbursed by your employer for business expenses, and that reimbursement will be tax free for both you and your employer. However, anything your employer chooses not to reimburse is not tax deductible on your return. Unreimbursed employee expenses used to be a tax ...


5

Probably infinitely often, as there is no legal limit to bring cash in the US anyway. If you carry more than 10000 US $ in cash, you are required to report it, but it is still legal. So instead of going a hundred times with 4k$, you could just take 400 k$ and tell them when you enter, and you'd be fine. The limit is really to allow them to monitor very large ...


5

Many years ago some US bank gave you air miles for cash withdrawals, and a couple took out all their savings in cash, paid it back in, drew it all out again and repeat. They managed to withdraw about 7 million dollars, obviously also paid in 7 million, getting tons of air miles, until the bank acted. That was apparently totally legal.


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