Comments for Educating the Masses to Help You Save On Taxes http://fredrickjames.com/blog Personal & Business Tax & Accounting Tips from Fredrick James Accounting Tue, 26 Jul 2011 20:39:56 +0000 hourly 1 http://wordpress.org/?v=3.1 Comment on Ask Fred by Fred Daus http://fredrickjames.com/blog/ask-fred/comment-page-1/#comment-14276 Fred Daus Tue, 26 Jul 2011 20:39:56 +0000 http://fredrickjames.com/blog/?page_id=150#comment-14276 Thank you for emailing the questions regarding gifts and real estate investments. This area of taxation is multifaceted and often complex when coupled together. Since this email will not cover everything and is very general, you may want to schedule an appointment to go over your specific circumstances so we can tailor a solution for your specific investment needs. Q: My parents are looking to invest with us by helping with the initial down-payment. I was wondering if there are any tax implication if they give us a 'gift' toward the down-payment. Is there a certain amount they should stay under? A: Your parents can gift the annual exclusion amount of $13,000 in 2011 each to you and your wife without having to pay gift tax. The max they can give you and your wife in 2011 without gift tax would be $52,000 (Mom gives you and your wife $13,000 each and Dad gives you and your wife $13,000 each. There is no tax to you and your wife for receiving a gift. I am a little confused about the last sentence in your question concerning everything being in your name and paying your parents back with interest. If your parents are gifting money to you and your wife then there should be no payback with interest. Perhaps they are giving a gift and loaning you additional money. This sounds pretty complex. Estate tax and gifting is very complicated and it changes all of the time. It changed on 1/1/2011 and after 12/31/2012 it changes again so there are a lot of question marks for the future. Please let me know if we can assist you moving forward with the investments and gift tax. Thanks again for the great question. Have a nice week. Thank you for emailing the questions regarding gifts and real estate investments. This area of taxation is multifaceted and often complex when coupled together. Since this email will not cover everything and is very general, you may want to schedule an appointment to go over your specific circumstances so we can tailor a solution for your specific investment needs.

Q: My parents are looking to invest with us by helping with the initial down-payment. I was wondering if there are any tax implication if they give us a ‘gift’ toward the down-payment. Is there a certain amount they should stay under?

A: Your parents can gift the annual exclusion amount of $13,000 in 2011 each to you and your wife without having to pay gift tax. The max they can give you and your wife in 2011 without gift tax would be $52,000 (Mom gives you and your wife $13,000 each and Dad gives you and your wife $13,000 each. There is no tax to you and your wife for receiving a gift.

I am a little confused about the last sentence in your question concerning everything being in your name and paying your parents back with interest. If your parents are gifting money to you and your wife then there should be no payback with interest. Perhaps they are giving a gift and loaning you additional money. This sounds pretty complex.

Estate tax and gifting is very complicated and it changes all of the time. It changed on 1/1/2011 and after 12/31/2012 it changes again so there are a lot of question marks for the future. Please let me know if we can assist you moving forward with the investments and gift tax. Thanks again for the great question. Have a nice week.

]]> Comment on Florida State HOA / Condo Associations Get Tough On Dead-Beat Members Thanks to New Bill by Fred Daus http://fredrickjames.com/blog/business-management/florida-state-hoa-condo-associations-get-tough-on-dead-beat-members-thanks-to-new-bill/comment-page-1/#comment-10310 Fred Daus Wed, 30 Mar 2011 21:41:43 +0000 http://fredrickjames.com/blog/?p=332#comment-10310 Hi John, it sounds like you've done everything you can, at this point, on the financial end of things. Now is the time time seek the advice of legal counsel. Your attorney will be able to help you file the right paperwork to start the eviction process and get you moving toward a resolution to your problem. Best of luck to you! Hi John, it sounds like you’ve done everything you can, at this point, on the financial end of things. Now is the time time seek the advice of legal counsel. Your attorney will be able to help you file the right paperwork to start the eviction process and get you moving toward a resolution to your problem. Best of luck to you!

]]> Comment on Florida State HOA / Condo Associations Get Tough On Dead-Beat Members Thanks to New Bill by John West http://fredrickjames.com/blog/business-management/florida-state-hoa-condo-associations-get-tough-on-dead-beat-members-thanks-to-new-bill/comment-page-1/#comment-10149 John West Fri, 25 Mar 2011 02:59:40 +0000 http://fredrickjames.com/blog/?p=332#comment-10149 We have a deadbeat owner that has refused to pay their quarterly fees for 3 years. Lien was placed as well the banks, and has been in foreclosure with many court extensions. This person is still living in the condo. Realizing this person does have revenues. How can we force this person from the unit?? We have a deadbeat owner that has refused to pay their quarterly fees for 3 years. Lien was placed as well the banks, and has been in foreclosure with many court extensions. This person is still living in the condo. Realizing this person does have revenues. How can we force this person from the unit??

]]> Comment on How To Survive The New 2011 1099 Reporting Requirements for Business by Fred Daus http://fredrickjames.com/blog/business-management/how-to-survive-the-new-2011-1099-reporting-requirements-for-business/comment-page-1/#comment-9825 Fred Daus Mon, 14 Mar 2011 19:48:13 +0000 http://fredrickjames.com/blog/?p=562#comment-9825 It passed the House, now we're just waiting on the Senate. I will be following this closely and will post any information we get as quickly as possible. So stay tuned! It passed the House, now we’re just waiting on the Senate. I will be following this closely and will post any information we get as quickly as possible. So stay tuned!

]]> Comment on How To Survive The New 2011 1099 Reporting Requirements for Business by Deb Mueller http://fredrickjames.com/blog/business-management/how-to-survive-the-new-2011-1099-reporting-requirements-for-business/comment-page-1/#comment-9725 Deb Mueller Thu, 10 Mar 2011 19:41:35 +0000 http://fredrickjames.com/blog/?p=562#comment-9725 I have read Section 9006 of PPACA was repealed. Any update? I have read Section 9006 of PPACA was repealed. Any update?

]]> Comment on Adoption: Good for the Heart, Soul and Tax Returns? by Fred Daus http://fredrickjames.com/blog/personal-tax/adoption-good-for-the-heart-soul-and-tax-returns/comment-page-1/#comment-9511 Fred Daus Wed, 02 Mar 2011 22:47:06 +0000 http://fredrickjames.com/blog/?p=475#comment-9511 Hi Jarrett, that's a great question. From the information you've provided it looks like the employer provided benefits are excluded in the year paid by the employer. You said you received $5,000 from your employer for qualified adoption expenses. Per the IRS, a taxpayer cannot claim a credit for the same adoption expenses used to claim the income exclusion. If you would have received the $5,000 in 2009, you would have had to subtract the employer provided adoption assistance from the amount that they paid for the adoption which would have reduced the credit amount to $0 that was carried forward to 2010. This rule is there so that a double-dipping benefit does not occur. I hope that answers your question, if not you're more than welcome to give me a call, 727.474.0922. Hi Jarrett, that’s a great question. From the information you’ve provided it looks like the employer provided benefits are excluded in the year paid by the employer. You said you received $5,000 from your employer for qualified adoption expenses. Per the IRS, a taxpayer cannot claim a credit for the same adoption expenses used to claim the income exclusion. If you would have received the $5,000 in 2009, you would have had to subtract the employer provided adoption assistance from the amount that they paid for the adoption which would have reduced the credit amount to $0 that was carried forward to 2010. This rule is there so that a double-dipping benefit does not occur. I hope that answers your question, if not you’re more than welcome to give me a call, 727.474.0922.

]]> Comment on Health Care Reform & How It Will Affect You by Dally http://fredrickjames.com/blog/business-management/health-care-reform-how-it-will-affect-you/comment-page-1/#comment-9375 Dally Mon, 28 Feb 2011 01:54:34 +0000 http://fredrickjames.com/blog/?p=307#comment-9375 Informative information and excellent posts you have! Informative information and excellent posts you have!

]]> Comment on Adoption: Good for the Heart, Soul and Tax Returns? by Jarrett Addison http://fredrickjames.com/blog/personal-tax/adoption-good-for-the-heart-soul-and-tax-returns/comment-page-1/#comment-9179 Jarrett Addison Fri, 25 Feb 2011 01:51:53 +0000 http://fredrickjames.com/blog/?p=475#comment-9179 Our adoption was final in 2009. We had a $4,544 carry over to 2010. In 2010, I received a $5,000 payout from my company under their adoption assistance program. I found out about this late so I applied in 2010, not 2009. This is included on my W2 (12c Code T). My tax software runs thru form 8839 but removes the credit at line 14. It states that "the credit is reduced by the amount of any employer provided assistance exclude on line 26". So it appears since the $5,000 is excluded from my earnings, I can't take the carryover credit? The IRS instructions don't really explain why? I had no adoption expenses in 2010. So I'm not clear on why I can't exclude and still get the credit. I thought as long as I didn't claim adoption expenses in 2010, I could still exclude the employer assistance and get the carry over credit? Our adoption was final in 2009. We had a $4,544 carry over to 2010. In 2010, I received a $5,000 payout from my company under their adoption assistance program. I found out about this late so I applied in 2010, not 2009. This is included on my W2 (12c Code T). My tax software runs thru form 8839 but removes the credit at line 14. It states that “the credit is reduced by the amount of any employer provided assistance exclude on line 26″. So it appears since the $5,000 is excluded from my earnings, I can’t take the carryover credit? The IRS instructions don’t really explain why? I had no adoption expenses in 2010. So I’m not clear on why I can’t exclude and still get the credit. I thought as long as I didn’t claim adoption expenses in 2010, I could still exclude the employer assistance and get the carry over credit?

]]> Comment on Florida Businesses Billed For Florida Unemployment Interest on Federal Loans by Fred Daus http://fredrickjames.com/blog/new-tax-issues/florida-businesses-billed-for-florida-unemployment-interest-on-federal-loans/comment-page-1/#comment-9083 Fred Daus Mon, 21 Feb 2011 17:09:53 +0000 http://fredrickjames.com/blog/?p=514#comment-9083 Agreed, Lork. Unfortunately we find ourselves in a position of digging ourselves out of a debt pit. Granted, digging and repairing should be happening simultaneously to make any lasting changes. So what would you propose be done to fix the system? Have you shared your thoughts with your representatives? Agreed, Lork. Unfortunately we find ourselves in a position of digging ourselves out of a debt pit. Granted, digging and repairing should be happening simultaneously to make any lasting changes. So what would you propose be done to fix the system? Have you shared your thoughts with your representatives?

]]> Comment on Florida Businesses Billed For Florida Unemployment Interest on Federal Loans by Lork http://fredrickjames.com/blog/new-tax-issues/florida-businesses-billed-for-florida-unemployment-interest-on-federal-loans/comment-page-1/#comment-8961 Lork Thu, 17 Feb 2011 19:01:30 +0000 http://fredrickjames.com/blog/?p=514#comment-8961 My thoughts as a small business owner is we should fix the damned system first before we continue to throw more money into it. It is very abused . I see it every day. My thoughts as a small business owner is we should fix the damned system first before we continue to throw more money into it. It is very abused . I see it every day.

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