Capital Gains Tax Receipts Answers
Resolved Question: reporting stocks while filing taxes?
I don't need to report anything until I sell it right? Then I will be taxed based on the capital gain? For example, if i bought stocks in January for $10 a share and in December they were $20 a share, would I have to report that and be taxed even though I didn't sell it yet? Or am I only taxed when I finally sell it and make the profit?
Basically I'm looking to hold stocks very long-term and want to know about reporting it on my tax return
thanks so much!
moreResolved Question: Accounting help indirect?!?
Kazaam Company, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s balance sheets and income statement follow.
KAZAAM COMPANY
Comparative Balance Sheets
December 31, 2011 and 2010
2011 2010
Assets
Cash$ 49,600 $ 73,000
Accounts receivable 65,890 53,000
Merchandise inventory 277,500 252,000
Prepaid expenses 1,000 1,600
Equipment 157,500 107,000
Accum. depreciation—Equipment (41,500) (52,000)
Total assets$ 509,990 $ 434,600
Liabilities and Equity
Accounts payable$ 79,765 $ 111,000
Short-term notes payable 11,000 8,000
Long-term notes payable 62,500 48,250
Common stock, $5 par value 150,500 142,000
Paid-in capital in excess of par, common stock 25,500 0
Retained earnings 180,725 125,350
Total liabilities and equity$ 509,990 $ 434,600
KAZAAM COMPANY
Income Statement
For Year Ended December 31, 2011
Sales $ 582,500
Cost of goods sold 286,000
Gross profit 296,500
Operating expenses
Depreciation expense$ 20,000
Other expenses 134,000 154,000
Other gains (losses)
Loss on sale of equipment 5,125
Income before taxes 137,375
Income taxes expense 23,000
Net income $ 114,375
Additional Information on Year 2011 Transactions
a.
The loss on the cash sale of equipment was $5,125 (details in b).
b.
Sold equipment costing $47,250, with accumulated depreciation of $30,500, for $11,625 cash.
c.
Purchased equipment costing $97,750 by paying $30,000 cash and signing a long-term note payable for the balance.
d.
Borrowed $3,000 cash by signing a short-term note payable.
e.
Paid $53,500 cash to reduce the long-term notes payable.
f.
Issued 1,700 shares of common stock for $20 cash per share.
g.Declared and paid cash dividends of $59,000.
Required:
1.
Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
KAZAAM COMPANY
Statement of Cash Flows
For Year Ended December 31, 2011
Cash flows from operating activities
$
Adjustments to reconcile net income to net
cash provided by operating activities:
moreResolved Question: Should I / Can I file my taxes?
So I am 20 years old, Canadian, living in BC.
Last year, when I was 19 I was unemployed the whole year (my current job didn't start till February of this year) and my only source of income was my parents who live outside of Canada and sent me money every month
I live with a my relatives here but they can't claim me in their taxes.
Should I / Can I, individuality, file my taxes for 2012?
I tried to find the answer on the CRA's website but couldn't fine example scenarios that match mine.
So if I have to do anything about my taxes for 2012, what is it, and how?
Thanks for any useful help.I was also a full time student in 2012 (currently part time)And I also have loans from the National Student Loans for this year and last.
moreResolved Question: More accounting using indirect method?
Problem 16-1A Statement of cash flows (indirect method) L.O. A1, P1, P2, P3
Kazaam Company, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s balance sheets and income statement follow.
KAZAAM COMPANY
Comparative Balance Sheets
December 31, 2011 and 2010
2011 2010
Assets
Cash$ 50,000 $ 73,500
Accounts receivable 65,820 55,000
Merchandise inventory 277,500 252,500
Prepaid expenses 1,250 1,500
Equipment 158,500 106,000
Accum. depreciation—Equipment (41,750) (52,000)
Total assets$ 511,320 $ 436,500
Liabilities and Equity
Accounts payable$ 53,720 $ 112,000
Short-term notes payable 10,000 6,000
Long-term notes payable 67,500 48,500
Common stock, $5 par value 162,250 150,750
Paid-in capital in excess of par, common stock 34,500 0
Retained earnings 183,350 119,250
Total liabilities and equity$ 511,320 $ 436,500
KAZAAM COMPANY
Income Statement
For Year Ended December 31, 2011
Sales $ 583,500
Cost of goods sold 284,000
Gross profit 299,500
Operating expenses
Depreciation expense$ 20,000
Other expenses 132,400 152,400
Other gains (losses)
Loss on sale of equipment 5,000
Income before taxes 142,100
Income taxes expense 23,000
Net income $ 119,100
Additional Information on Year 2011 Transactions
a.
The loss on the cash sale of equipment was $5,000 (details in b).
b.
Sold equipment costing $46,875, with accumulated depreciation of $30,250, for $11,625 cash.
c.
Purchased equipment costing $99,375 by paying $35,000 cash and signing a long-term note payable for the balance.
d.
Borrowed $4,000 cash by signing a short-term note payable.
e.
Paid $45,375 cash to reduce the long-term notes payable.
f.
Issued 2,300 shares of common stock for $20 cash per share.
g.Declared and paid cash dividends of $55,000.
Required:
1.
Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
KAZAAM COMPANY
Statement of Cash Flows
For Year Ended December 31, 2011
Cash flows from operating activities
$
Adjustments to reconcile net income to net
cash provided by operating activities:
Net cash operating activities $
Cash flows from investing activities
Net cash investing activities
Cash flows from financing activities
Net cash financing activities
$
Cash balance at beginning of 2011
Cash balance at end of 2011 $
moreVoting Question: Macroeconomics Questions?
Answers to as many of these as possible would be greatly appreciated.
1. All of the following are potential costs of the U.S. national debt except
a. lower inflation in the future.
b. higher interest rates that discourage private investment.
c. a higher international trade deficit.
d. foreign-held debt that must be repaid.
e. reduced domestic wealth in the future.
2. Which of the following statements about taxation is true?
a. A tax cut does not affect aggregate demand.
b. A tax cut increases aggregate supply.
c. Cutting taxes has the same effect on the economy as increasing government spending.
d. A change in taxes does not affect consumption.
e. A cut in tax rates always leads to a decrease in tax revenue.
3. "Supply-side" economists think that
a. an increase tax rates leads to a decrease in aggregate supply and a decrease in real GDP.
b. an increase in tax rates always leads to an increase in government tax revenue.
c. an increase in tax rates always leads to a decrease in government tax revenue.
d. an increase in tax rates leads to an increase in aggregate demand.
e. an increase in tax rates can lead to an increase in real GDP.
4. An decrease in consumption spending as households expect higher future tax rates
a.crowding out.
b.exchange equivalence.
c.inflation.
d.Richardian equivalence.
5. Unlike an individual, a country can remain in debt forever.
a. True
b. False
6. Which of the following is true about labor and capital income taxation?
a. Capital income (corporate profits, dividends and capital gains) is taxed at the same rate as labor income.
b. A change in capital income tax rates does not change potential GDP.
c. An increase in capital income tax rates leads to a decrease in investment.
d. It's better for the economy to tax capital income rather than labor income.
e. All of the above are true.
7. Most of U.S. Federal government debt is held by
a.U.S. entities
b.Japan
c.Oil producing nations
d.China
e.United Kingdom
8. "Use" taxes, sales taxes and value-added taxes are ____ with respect to income.
a. regressive
b. progressive
c. none of the above.
d. proportional
9. Under a progressive tax system,
a. the average tax rate increases with increases in income.
b. the average tax rate remains constant with changes in income.
c. the average tax rate falls with increases in income.
d. government tax receipts increase when the economy is in a recession.
e. government tax receipts decrease when the economy is expanding.
10. An increase in the tax rate will always lead to an increase in tax revenues.
a. True
b. False
11. According to the Employment Act of 1946, the U.S. government is required to
a. correct negative externalities.
b. restrict the size of the U.S. budget deficit.
c. provide a judiciary system.
d. promote full employment (low unemployment)
e. place responsibility for achieving economic stability on the private sector.
moreResolved Question: I heard a claim that Obama has reduced the deficit every year. is this true?
moreResolved Question: Financial Accounting HELP?
Forten Company, a merchandiser, recently completed its calendar-year 2013 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s balance sheets and income statement follow.
FORTEN COMPANY
Comparative Balance Sheets
December 31, 2013 and 2012
2013 2012
Assets
Cash$ 49,800 $ 73,500
Accounts receivable 65,810 50,625
Merchandise inventory 275,656 251,800
Prepaid expenses 1,250 1,875
Equipment 157,500 108,000
Accum. depreciation—Equipment (36,625) (46,000)
Total assets$ 513,391 $ 439,800
Liabilities and Equity
Accounts payable$ 53,141 $ 114,675
Short-term notes payable 10,000 6,000
Long-term notes payable 65,000 48,750
Common stock, $5 par value 162,750 150,250
Paid-in capital in excess of par, common stock 37,500 0
Retained earnings 185,000 120,125
Total liabilities and equity$ 513,391 $ 439,800
FORTEN COMPANY
Income Statement
For Year Ended December 31, 2013
Sales $582,500
Cost of goods sold 285,000
Gross profit 297,500
Operating expenses
Depreciation expense$20,750
Other expenses 132,400 153,150
Other gains (losses)
Loss on sale of equipment (5,125)
Income before taxes 139,225
Income taxes expense 24,250
Net income $114,975
Additional Information on Year 2013 Transactions
a.
The loss on the cash sale of equipment was $5,125 (details in b).
b.
Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
c.
Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.
d.
Borrowed $4,000 cash by signing a short-term note payable.
e.
Paid $50,125 cash to reduce the long-term notes payable.
f.
Issued 2,500 shares of common stock for $20 cash per share.
g.Declared and paid cash dividends of $50,100.
Required:
1.
Prepare a complete statement of cash flows; report its operating activities using the indirect method.obviously i tried a million times don't tell me to just do it because thats what learning is about. i need help
moreResolved Question: Who are the real takers?
Paul Ryan calls people who rely on the social safety net "takers" and he says it is 30% of the population. According to him, people who pay into Social Security and Medicare, students who borrow money so they can go to school, veterans who receive VA benefits, and workers who collect unemployment compensation are "takers."
"The commitments we make to each other -- through Medicare, and Medicaid, and Social Security -- these things do not sap our initiative; they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great," he (Obama) said.
On the other hand, corporations that pay no income taxes at all, the banks and bankers who have been heavily subsidized by both TARP and the Federal Reserve, and hedge fund operators who pay taxes at a lower rate than people who actually work, are "makers." Exactly what hedge funds and banks make is unlear, but that's what he calls them.
Somehow we're supposed to believe that 98% of Americans should pay 6.% (12.4% for small business owners) of their income in Social Security taxes, yet when they draw on this at retirement time they have become "takers." At the same time, hedge fund operators and CEOs of major corporations take in millions of dollars in salaries and bonuses and pay only a tiny fraction of that in taxes, yet they aren't takers.
When the Koch brothers, Mitt Romney, the Walden family, John Kerry, Bill Gates, and Warren Buffet (et. al.) take in millions or billions from dividend and interest income, they pay only 20% of it in taxes (under the new law--it was 15% until the beginning of this month) yet they aren't "takers."
The President was right to call out Mr. Ryan and the rest of the autocracy.
moreResolved Question: What does an S-Corp do for taxation (Why choose it?)?
Does it have characteristics of pass-thru taxation? Do profits directly pass-thru every year like salary? I'm in finance for a C-Corp, and just am not that versed in the tax code. So, like I said, my question is why choose S- over C-?
moreResolved Question: i want to sell my house to my two sons for the sum of two pounds. (a quid each)?
I do i stand legally . in the UK
moreResolved Question: If you had the power, what would you do to help make USAs economy better?
moreResolved Question: amended return question?
Here is my previous post.
http://answers.yahoo.com/question/index;_ylt=AqcBlmYXNxRtTwUy6AfY2x3sy6IX;_ylv=3?qid=20121011015312AAjCALB
Most posters are saying I should owe more taxes. I do, state taxes of 562 more but the federal says zero.
Pretty much all or the vast majority of my income was long term capital gains & interest/dividends. (No earned income)
Turbo tax didn't indicate a huge audit chance but I have receipts. Actually the largest one, my bank is snail mailing it so I will have it in 4-5 days.
My question is do you still think I should owe federal ? And should I attach proof of my deductions when I mail in the amended return ?
-----
My adjusted gross income was $31,729. I had itemized deductions of $27,663 (Before the $12,500 reduction) less a $3700 exemption= $366 in taxable income.
I guess it would be $12,500+366=12,866 in taxable income by adding back the $12,500.
I had $1382 in tax withheld for 2011 and $1018 leftover from last year (2010) which= $2400.
moreResolved Question: Conservatives - you realize that Romney did indeed promise a $5T tax cut, right?
Romney started out modestly enough. The tax-cut plan he unveiled last winter probably would not have increased the deficit. But after several of his rivals for the GOP nomination came out with big tax cuts, Romney issued a more aggressive tax-cutting plan in March that would cut individual income tax rates an additional 20 percent. It involved, as Obama correctly said, approximately $5 trillion in reduced tax receipts over 10 years.
An August analysis by the Tax Policy Center found it was mathematically impossible for Romney to simultaneously cut taxes on upper-income households, keep middle-income tax burdens from rising, and prevent an increase in the budget deficit.
http://www.businessweek.com/articles/2012-10-04/the-real-story-about-romneys-tax-cut-plan
moreResolved Question: What part of my home improvement can I deduct from the capital gains when I sell the house?
I just bought a house that needs a lot of work. The things I am having licensed workers come and and do are: 1) New cabinets for the kitchen. 2) New shower fixtures, 3) Tiles for the bathroom and laundry area. 4) Solar tube for 2 bathrooms, 5) New glass doors for the showers, 6) New vanity for one of the bathrooms, 7) carpentry to repair termite damage, and 8) New pool heater to replace the one that broke. Which of these projects could I add to the cost basis of the house when I sell it around 20 years from now? I am assuming the painting will count as maintenance. Thanks.
moreResolved Question: The tax agency fund of Orange County collected $7,000,000 for a school district, $3,000,000 for the county?
General Fund, and $5,000,000 for a municipality. County General Fund employees handle the collections, and a 2.5 percent collection fee is charged all units except the county. The total amount of revenue recognized by the county General Fund would be:
A. $390,000.
B. $3,300,000.
C. $3,390,000.
D. $300,000.
Which of the following is true regarding revenue recognition for property taxes, when reporting in the government-wide statements?
A. Assets are recognized when an enforceable legal claim has arisen or when resources are received, whichever is first.
B. Revenues are recognized when measurable and available; that is, when collected during the current period or no more than 60 days after the end of the current period.
C. Both of the above are true.
D. Neither of the above is true.
. A local government recorded the sale of a capital asset by recording a debit to cash and credit to proceeds of sale of capital asset. What is the worksheet entry when preparing the government-wide statements?
A. Debit to Proceeds of sale of capital asset and credit to Gain on sale of capital asset
B. Debit to Cash and credit to capital asset (net) and credit to Gain on sale of capital asset
C. Debit to Proceeds of sale of capital asset and credit to capital asset (net) and gain/loss on sale of capital asset
D. None of the above
Which of the following statements is not true regarding agency funds?
A. Agency funds use modified accrual accounting.
B. Agency funds have only assets and liabilities; no fund equities, revenues, or expenditures are recorded.
C. Agency funds are reported in the fiduciary funds Statement of Fiduciary Net Assets.
D. None of the above; all are true.
moreResolved Question: In brief terms, how difficult is it to effectively use a IRS 1031 Exchange of property?
We are hoping to sell farmland in IL and purchase farmland in TN where we now live. To avoid Capital Gains, we are hoping to use this IRS procedure. We want to stay in farming, just don't want to stay in Illinois anymore.
moreResolved Question: Why are the people who don't pay taxes the same people who want the wealthy to pay their fair share?
The wealthy care CARRYING the poor as far as who pays the lion's share of the taxes in the first place!
We're not just talking about income tax. We're also talking about property taxes, excise taxes, capital gains taxes, payroll taxes, utility taxes, gross receipts taxes on both raw materials and sales, road and fuel taxes... the list goes on.
moreResolved Question: my father sell the property ,they got 1 cr rupees .they really neeedto pay tax?
moreResolved Question: how did Bill Clinton raising taxes lead to a strong economy in the 1990s?
moreResolved Question: Tax deduction on home improvements?
I understand that when you sell the house you need to pay taxes on the capital gain. So if i buy house for 300K and sell it for 500K then I pay tax on 200K gain.
However I can subtract from the gain (200K) all the house improvements (such as kitchen cabinets, hardwood floor, roof, remodeling, painting, etc), so I have to keep all my receipts until I sell the house.
Now, I found that if the house is your primary residence then you do not actually pay tax for the capital gain up to 500K for married couple.
If everything the above is correct and the capital gain is less than 500K then does it mean that i do not really need all those receipts for the home improvements?
moreResolved Question: Would you immigrate to The New Confederacy? And why?
Texas Governor Perry suggested it might be a good idea for Texas to secede from the USA. Others think it would be a good idea if all the former Confederate States seceded and joined as a separate new nation, perhaps known as The New Confederacy, led by pure and staunch conservatives like Rick Perry, Rick Santorum, Newt Gingrich, Michelle Bachmann and even including Mitt Romney. The capitol would be in Texas, the most powerful state. Confederate income tax would be a flat 15% for corporations and everyone else, with no tax on interest, no dividends tax, no capital gains tax, and no death tax. Social Security would be completely privatized, with each recipient free to invest his payments and receipts as he pleases. Medicare, unemployment benefits, food stamps and welfare payments would be abolished, with such care becoming the responsibility of family, friends and church. There would be a very limited Federal Confederate government with no "over-reach," eg, Civil Rights would be left up to the States as Rand Paul previously endorsed. One exception, of course, would be its Pro-Life requirement.
moreResolved Question: My mum will not give me my share of inheritance from my house, please help?
So around 3 years ago my Nan passed away and left all of her assests shared between six of us. She stated in the will that I could not access any of the money until I was 25. Because of how the property market was, I was pressured into leaving the money in the home. My Mother had bought out my uncle and my older brother and my two younger siblings were also forced to leave their money in. Essentially, my Mum now has 50% of the property and the three of us own the other half, me being 1/6th of the share.
In December of 2010 I requested that my Mum releases my equity from the property. 3 months later, they were now left with 3 months before I turned 25. They then realised they'd better get moving if they were to get my money.
Valuations were done and my share was calculated. There was one problem though, my Mum was unable to remortgage the house as my parents had already maxed out their mortgage and the banks would not lend any more.
I then received an email and it said if I force the sale of the house I would be liable for all fees and they would not be divided by six shares in the house. However, if I waited until October of 2011 (4 months after I turned 25) then they would put the house on the market and the fees would be shared.
I decided to wait until October and what did they do, they extended the tenancy with the current tenant. They told me it was in the best interest of my little brother and sister. They told me not to worry though as they were selling one of their other properties and i would get the money out of that.
Just a few days ago, they withdrew the offer of selling the other property. I requested they must sell the inherited house then and must give the tenant notice. They are now trying to force all fees on me again of about £10k (capital gains, estate agent fees, tax, etc etc). I do have in writing that they confirmed my position would be the fees were shared if I waited until October 2011.
It is now 15 months since I requested they release my equity and they continue to mess me about. They live in Bermuda and they continue to live an extravagent lifestyle and pay $9,000 a month for their home. They buy Bose sound systems, brand new cars and mopeds. They continuously drink and eat out, yet they can't come up with my £35,000+ that they owe me.
I have now threatened court proceedings and legal aid as I am unemployed...yet she told me I would still be liable for court costs at the end? or would she?
I need to get this resolved ASAP and get my money. I hate that my own mother would be doing this to me, especially when I have debts I need to pay here. They are accumulating each month because of her purposely delaying receipt of my money.
Any help would be much appreciated. Thank you
moreResolved Question: Cash Flows Problem - Kite Corporation?
CASH FLOWS PROBLEM:
Kite Corporation, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheets and income statement follow. Prepare a statement of cash flows in good form.
Joseph Corporation
Comparative Balance Sheet
December 31, 2011 and 2010
Assets
Cash $ 136,500.00 $ 71,550.00
Accounts Receivable $ 74,100.00 $ 90,750.00
Merchandise Inventory $ 454,500.00 $ 490,200.00
Prepaid Expenses $ 17,100.00 $ 19,200.00
Equipment $ 278,250.00 $ 216,000.00
Accumulated Depreciation $ (108,750.00) $ (93,000.00)
Total Assets $ 851,700.00 $ 794,700.00
Liabilities and Equity
Accounts Payable $ 117,450.00 $ 123,450.00
Short-term Notes Payable $ 17,250.00 $ 11,250.00
Long-term Notes Payable $ 112,500.00 $ 82,500.00
Common Stock, $5 par $ 465,000.00 $ 450,000.00
Paid in Capital in excess $ 18,000.00
Retained Earnings $ 121,500.00 $ 127,500.00
Total Liabilities & Equity $ 851,700.00 $ 794,700.00
Joseph Corporation
Income Statement
December 31, 2011
Sales $ 1,083,000.00
Cost of goods sold $ 585,000.00
Gross profit $ 498,000.00
Operating Expenses
Depreciation expense $ 36,600.00
Rent Expense $ 150,000.00
Salaries Expense $ 175,000.00
Other Expenses $ 67,850.00
$ 429,450.00
$ 68,550.00
Other gains and losses
Loss on sale of equipment $ 2,100.00
$ 66,450.00
Income tax expense $ 9,450.00
Net Income $ 57,000.00
Additional Information on Year 2011 Transactions
a.The loss on the cash sale of equipment was $2,100 (details in b).
b.Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.
c.Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance
d..
e.Borrowed $6,000 cash by signing a short-term note payable.
f.Paid $45,000 cash to reduce the long-term notes payable.
g.Issued 3,000 shares of common stock for $11 cash per share.
h.Declared and paid cash dividends of $63,000.
I have no clue how to prepare this, can someone show me how? please?
moreResolved Question: Inherited a house/tax question?
I've inherited a house, which I've been paying mortgage payments on. I have not sold it yet. Do I need to file any kind of taxes on it or do I wait till I sell it and then file the amount I sold it for?
moreResolved Question: Which year do i report taxes for stocks?
I'm sorta getting into the stock market for small investment experiments, but i got a question about filing taxes on it. So i bought shares in Nov. 2011, and sold it in Jan 2012 which was w/ capital gains&short term. This would go onto when i report for 2012 taxes right? not 2011.
Also, i would be filling out a 1040 Sch D & 8949 form right?
moreResolved Question: are there any tax deductions for buying a home outright in 2011?
i'm a first time home buyer and purchased a home in may of 2011 for $53K. i paid it all in one cashier's check, so i don't have a mortgage. i have made renovations to the house and purchased home owner's insurance and utilities. is there anything that is tax deductible for this scenario? i live in georgia, if that matters.
thanks much!
moreResolved Question: Tax Credit/Deductions?
My husband and I bought a foreclosure home in 2011. We spent over 15,000 making it livable again, and I know there used to be a federal tax credit that has since expired. Is there anything we can do to write off any of the costs?? Are there deductions or credits we should look in to? I normally do our taxes myself, but this has me stumped! Any help would be appreciated, and any links that are shared should be updated for 2011 taxes.
moreResolved Question: Tax writeoff rennovations on a duplex with a FHA loan?
I recently purchased a duplex and in order to do so I used an FHA loan. The FHA loan requires me to have one of the units as my primary residence for a minimum of 1 year from my move-in date. I plan on moving out as soon as the year is up so I can rent the entire duplex out to collect income off of it. Since I reside in one side can I only expense the depreciation of 1/2 the purchase price over 27 1/2 years within the first year? Is there a way that I can depreciate the entire purchase price after I move out and rent out both units? Also if I want to make "regular" maintenance rennovations to my side (paint, siding, drywalling, carpet, etc) within the first year I am living there is there any way that I can expense that off of my income?....I read this in an article regarding a question kind of similar to mine:
If a paint job is part of a major remodeling of the entire property, it -- and the rest of the remodeling -- would be treated for tax purposes as a capital improvement. That means the expense would have to be depreciated over a 27 1/2-year period, beginning when the project is completed.
Can I declare my major remodeling of the entire duplex starting this year, keep all of my receipts for the entire remodel and then declare it completed the day I move out and its rented to someone else and expense everything after that? I am hoping there is a gray area or crack I can slip through in the ruleing on expensing rennovations I do this year, as it is much easier to do them while im living there.
Any help on this is appreciated.....
moreResolved Question: do you have to hold on to tons of receipts to do your taxes? or can you use banking statements?
who the F holds on to tons of receipts anyway?
moreResolved Question: Why did we experience the highest increase of tax revenue in history after Bush tax cuts?
From 2004 to 2007, federal tax revenues increased by $785 billion, the largest four-year increase in American history. According to the Treasury Department, individual and corporate income tax receipts were up 40 percent in the three years following the Bush tax cuts.
Why do democrats, liberals, progressives, etc etc, not understand that the more profits there are to tax, the more tax revenue the government collects?
http://www.washingtontimes.com/news/2010/feb/3/bush-tax-cuts-boosted-federal-revenue/
moreResolved Question: Can you explain as these taxes in Layman's terms?
Income tax, capital gains tax, excise tax, payroll tax, gross receipts tax on raw materials and sales, road and fuel tax, utility tax, phone connection tax and property tax
Explain each one in detail please???
moreResolved Question: Can you explain as these taxes in Layman's terms?
Income tax, capital gains tax, excise tax, payroll tax, gross receipts tax on raw materials and sales, road and fuel tax, utility tax, phone connection tax and property tax
Explain each one in detail please???
moreResolved Question: Please help me with a tax question about profit from a land sale.?
About 5 years ago I bought a mobile home and 6 acres of land. Recently I decided to sell the property as it has proven to be too much for me to try to keep up since I work out of state.
The person who wanted to buy my property just wanted the land so I sold him the land and sold the mobile home separately to another individual. By chance I ran into my tax preparer at the store and we started talking. When I mentioned I sold my property I was told I would have to pay taxes on the profit. This was a shock as I thought I didn't have to pay capital gain tax on my home, but because I broke it into 2 separate transactions I had to pay. That I should have included the mobile home in the sale. Here's the bad part. The reason I made a profit on this place is because I developed the raw land. I cleared the land put in a road, brought in electric, water, hired someone to come in with an excavator, dig an acre pond and spread the dirt on my property which was low so it would drain well. Because this was my home and I did not realize I would need the proof I did not keep all my receipts for stuff. I mean I have some stuff but there is a lot missing. Basically it looks like I made $80,000 profit but really I spent about $50,000 on improvements to the land. Also I had to buy a tractor. I spent $20,000 on a new John Deer. Can I write off the tractor or at least a portion of the tractor as an equipment expense for maintaining developing the property. The only proof I have is an extensive picture collection which shows the property when I bought it and the different phases of construction as I worked to develop it. Thanks for any help you can offer.Hi thanks so much for all the responses. I just wanted to clarify a bit. When I said I work out of state I mean I work offshore for weeks at a time so every time I come in all I do is cut grass that's why I decided to sell. I only have 1 residence and yes the 6 acres was my home. I used the term develop the land because I turned it from raw land into a yard with a road and utilities, and a stocked pond. As far as avoiding capital gain from a primary residence, that's what I had planned to do. But my tax person said I messed up when I separated the sales. That now its going to be a sale of land and a sale for the mobile home so I won't owe anything on the mobile but I will owe from profit on the land. Like I said this was my one and only residence during the last 5 years all my mail etc goes there. I will be able to produce some receipts or records for some of the work but I have done so much over the last 5 years with different people there will be no way I can get it all together
moreResolved Question: Are you aware of our true national debt? Worth reading!!?
In 2030 77 million baby boomers will be old, old enough to all be holding out their hands waiting for their Social Security checks and hobbling into doctor's offices and hospitals with discounts of 80% and 100%. You already know who gets the foot the bill for those, us, America's young generation, those of you who haven't even made it to high school yet, me, who will graduate college in two years, all of us.
Problem is, by 2030, instead of the ratio of Social Security beneficiaries being 16:1 like in 1937 when Social Security was started it will be 2:1. There will be twice as many retirees and roughly only 20% more workers to support them.
Circa 2004: Over the past 4 years the government increased discretionary spending by 33%, expanded entitlement spending 18%, cut taxes by 12%, and raised official debt by 25%. It has vowed to make current tax cuts permanent, expand payments to the elderly, and spend WHATEVER it takes to win the war on terror.
Since 2000, Medicare benefits per beneficiary have grow 2.6 times faster than the wages of the workers paying the benefits.
What I'm getting at is our FISCAL gap (the present value difference between the government's future receipts and future expenditures).
In 2002, a study done by Dr. Jagadeesh Gokhale and Dr. Kent Smetters, both highly respected economists, measured the current fiscal gap to be $45 TRILLION dollars. 11 times larger than the stated national debt, and 4 times larger than GDP.
To fix that today (2008 data) we would need to either, increase federal income taxes by over 74%, increase payroll taxes by over 103%, cut federal purchases by 115%, or cut Social Security AND Medicare by 47%.
If we continue to let our politicians, pass the buck, by 2030 the gap will be in excess of $76 TRILLION.
To all the baby boomers: You are committing fiscal child abuse, you are forcing your (great)grandchildren to pay exponentially higher taxes over their working lives so you can live out your old age without a care in the world. Think about how miserable they will be because you had to be greedy. Voting for a politician because he or she makes promises to give you more money is wrong. Going to the doctor or hospital for the most minor complication and forcing your children and their children to pay your bills is wrong.
Don't, give me the excuse that you need the money to pay for rising healthcare costs, because you're the suckers that created that broken system in the first place. By allowing the doctors and hospitals to bill the government makes them opt for the most expensive procedures and drugs possible. Unlike every other business field, there is no price ceiling for the R&D and final costs of new drugs, machinery, etc, they can charge whatever they want because they know the government will pay. Break a leg? Now, the doctor or hospital will rush you to an MRI machine instead of a cheap and simple x-ray. Ever seen "I-Robot?" The general idea of the stories are highly similar.
The legacy your generation is leaving behind is one of fiscal malfeasance, greed, and self-centeredness.
Because there are so many of you, any politician running on a platform for reducing debt though a series of moderate tax increases, government spending cuts, and minor/moderate benefit cuts will never win. Likewise any bill in Congress that proposes anything of the like will be struck down immediately.
You don't need any more money. You NEED to fix the machine that was broken when you built it, stop voting for the candidate that offers the highest tax cuts and benefit increases.
I understand you've put your time in and deserve some benefits but as you taught your children and they've taught me; life isn't cheap and nothing is free. However you've managed to make the opposite true for yourselves and only yourselves. You expect your Social Security but what I expect is to pay into it my whole life and reap no benefits when I retire. Where's the fairness in that?
If more of my generation reads the book where I got this information and takes a few economics courses they may start to think like I am: Get my degree here in America, then move to Canada so I don't have to pay for your greed and mistakes.
Like you also taught your children: You pay for your own mistakes.
So if I were you guys, I'd start trying to fix your mistakes before the young generation that you expect to support you in retirement run the hell away and leave you to fend for yourselves.
Kotlikoff, Laurence J., and Scott Burns. The Coming Generational Storm: What You Need to Know about America's Economic Future. Cambridge, MA: MIT, 2004. PrintGeorge: I do recognize that all boomers are not responsible and many opposed the expansions, tax cuts, and spending increases but it wasn't the majority.Although it is not a population problem. The US birthrate is hovering right around the "replacement rate" and like you said many European countries have fallen below. Russia is expected to lose something like 1/3 of its current population over the course of the century. I've read many studies from reputable sources that Earth can support even more than are already here...if we all come together and work for the good of humanity.I guess you could call it Hitler's last treachery. The War stopped an entire generation from growing up "normally," resulting in the baby boom. I realize Canadians pay more in taxes than Americans already but a Canadian pays half of what his American counterpart does for healthcare and has a higher life expectancy. I'm a pretty healthy individual and visit the doctor once or twice a year. Also, I do pay mo
moreResolved Question: How you report your EBay Tax?
Let's say if i buy something $10000 sell it on ebay for $15000. only make $5000 profit
but in the paypal it only show the final sale.
if i report $5000 ebay income will IRS trust me
because i think paypal will report at least $15000 to IRS
how much will IRS take away on that $5000
moreResolved Question: Would love some help with this accounting question PLEASE!?
Georgia Company, a merchandiser, recently completed its calendar-year 2009 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheets and income statement follow:
GEORGIA COMPANY
Comparative Balance Sheets
December 31, 2009 and 2008
2009 2008
Assets
Cash $ 49,800 $ 73,500
Accounts receivable 65,840 56,000
Merchandise inventory 277,000 252,000
Prepaid expenses 1,000 1,500
Equipment 158,500 107,500
Accum. depreciation—Equipment
(43,000)
(52,000)
Total assets
$509,140
$438,500
Liabilities and Equity
Accounts payable $ 42,965 $113,000
Short-term notes payable 10,000 7,000
Long-term notes payable 70,000 48,000
Common stock, $5 par value 162,750 151,000
Paid-in capital in excess of par, common stock 35,250 0
Retained earnings
188,175
119,500
Total liabilities and equity
$509,140
$438,500
GEORGIA COMPANY
Income Statement
For Year Ended December 31, 2009
Sales $584,500
Cost of goods sold
281,000
Gross profit 303,500
Operating expenses
Depreciation expense $ 20,000
Other expenses
132,800
152,800
Other gains (losses)
Loss on sale of equipment
5,875
Income before taxes $144,825
Income taxes expense
24,250
Net income
$120,575
Additional Information on Year 2009 Transactions
a.
The loss on the cash sale of equipment was $5,875 (details in b).
b.
Sold equipment costing $46,500, with accumulated depreciation of $29,000, for $11,625 cash.
c.
Purchased equipment costing $97,500 by paying $35,000 cash and signing a long-term note payable for the balance.
d.
Borrowed $3,000 cash by signing a short-term note payable.
e.
Paid $40,500 cash to reduce the long-term notes payable.
f.
Issued 2,350 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $51,900.it's asking me to Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1; report its operating activities using the indirect method.
moreResolved Question: How to start in the stock market?
Hi,
I wish to start buying stocks in the stock market to make some money (obviously). I want to know where to buy stocks, some good tips, and what mutual funds are. How do I start?
Please explain simply, and don't just link me to a website, give me what you know.
Thanks, Edwin
moreResolved Question: Does the USA / NYS tax the trade of physical goods?
I'm not sure what keywords to use when searching for this on the internet - I keep turning up info on stocks and the like. I want to know if any taxes would be required if I run a business in which people trade me physical goods worth say $20,000 for my goods worth $10,000. No cash is involved in the trade. I know I would be taxed if I sell any of the goods afterword.
Thanks!
moreResolved Question: Is replacing my entire roof tax deductible or considered a "repair"?
I've been reading that you can deduct home improvements, which add value to your home, but not home repairs. What about a whole new roof? And I'm not hiring a contractor, my brother and his friends are doing the work for cash. Will that be acceptable if I have the receipts for the $3500 worth of materials?Oh. This is my first year in the new home and when I google Home purchase tax deductions, at least 10 articles pop up that say home improvements are deductible! I guess not...I think I was accidentally on Canadian google lol
moreResolved Question: 1. What is renting? (0.5 points)..........?
Answer each question fully. Complete sentences are not necessary.
1. What is renting? (0.5 points)
2. What is a financial plan? (1.0 points)
3. What is income? (0.5 points)
4. What is a projection? (0.5 points)
5. What is a will? (0.5 points)
Lesson 2 (3.0 points)
1. What is a tax? (0.5 points)
2. What is the Internal Revenue Service? (0.5 points)
3. What is the capital gains tax? (0.5 points)
4. Give at least two examples of types of state taxes. (1.0 points)
5. What is a pay stub? (0.5 points)
Lesson 3 (3.0 points)
1. What is financial responsibility? (0.5 points)
2. Give at least two examples of utilities. (1.0 points)
3. What are features? (0.5 points)
4. What are benefits? (0.5 points)
5. What is a budget? (0.5 points)
moreResolved Question: American Depositary Receipts (ADR)?
Is it necessary for each ADR to be covered by an issued share? My problem is that there seems to be more ADRs issued for a Company than there are number of normal shares, I need to total the voting rights, and 1 ADR = 1 Ordinary share.
Is it correct that you can have more ADRs than Ordinary shares even if they are 1:1?
moreResolved Question: Do those who state that revenues increased after the Bush tax cuts intentionally mislead?
This chart here shows that; in billions of constant 2005 dollars, there seems to be no direct relationship between income tax rates and overall federal revenue.
http://www.usgovernmentrevenue.com/downchart_gr.php?year=1980_2012&view=1&expand=&units=k&log=linear&fy=fy12&chart=F0-total_10-total&bar=1&stack=1&size=l&title=&state=US&color=c&local=sit appears increases in revenues are related to economic growth instead. And no link can be observed between economic growth and tax rates.
moreResolved Question: what do you think of this article about the revolt of the grannies on the social security checks?
http://www.thepeoplesvoice.org/TPV3/Voices.php/2011/07/18/revolt-of-the-grannies
as one that will become homeless in 30 days and lose a lifetime of possessions overnight etc and likely die due to being unable to walk and several illnesses, it makes me cry and think of all these many people who will suffer so much along with me at the hands of rotten and corrupt politicians when all people on here want to do is blame other parties.
Please put politics aside for the sake of the elderly, the sickest among us, the veterans and their families. The grandmothers and grandfathers. the blind the paralyzed, the schizophrenics who will lose medication, the barely surviving now thrown to the side.
By demanding and contacting representatives, the capital and the white house that this be fixed before millions of old and disabled people go homeless and hungry and sick, penniless and without hope. Many will kill themselves if this happens and homicides will occur as well as lose of businesses and rising prices for everyone if businesses lose the money of 70 million people due to no checks and no paying of bills. don't win the ax cuts at the expense of the least among us for surely we will pay as a nation for abandoning those God tells us to be good Samaritans too.
Al is necessary for evil to triumph is for good people to do nothing. this will also gain bad karma for the apathetic not just those directly killing seniors and very ill people by taking everything form them.
why are so few talking about it and just blaming either republicans and democrats?
anyhow what do you think of this article
http://www.thepeoplesvoice.org/TPV3/Voices.php/2011/07/18/revolt-of-the-grannies
if you want the link to contact rep and capital say so and I will post a link, but do tell me what you think of this article.
moreResolved Question: Would you agree that we badly need tax federal tax reform?
The graduated income tax is garbage. It's expensive to operate, easy to exploit by tax dodgers, does a bad job at generating revenue for the government, and discourages people from being more productive. Plus the government has to know all your personal financial details in order for you to pay your taxes, which is very intrusive,
I believe the Fair Tax is the solution. It's a 23% national retail sales tax that will replace the income tax, payroll taxes, and capital gains tax, and its progressive because spending up to the poverty level with be tax free in the form of a rebate check sent to you from the government each moth.
Democrats should support this too. The ultra rich don't work, thus they don't pay income taxes and payroll taxes, because they're not earning regular income. The rich always consume no matter what the economy is dongfar more than those who are not rich, and thus pay more national retail sales tax than someone who has far less than them, asset wise. Not only all of that, but when there is an economic downturn people still buy houses, cars, food, and places to live;;;;;Tax rates are going down and will continue to do so as the increasingly have to be competitive in a world market. Days of 70% tax rates are over. "we need to take the power of social programing from our congress by going to a flat tax and abolishing the IRS."I know you like the flat tax because you're a Ron Paul guy, and it would be an improvement, but take a look at the Fair Tax, the flat tax is a half a loaf of bread in comparison."I have worked with a few millionaires, and they were frugal as hell. Corn flakes for breakfast, a turkey sandwich at lunch, and one even drove a used BMW. Other than their huge freaking house, their consumption patterns weren't much different than mine."Sure there are frugal millionaires, that how most of them got that way, but there the people richer than mere millionaires, like 100 million plus and they consume a lot. When they go somewhere they don't stay in a hotel room they buy a house. They buy jets, they buy yachts, and their kids want cars and to go to college and that all costs money at the cash register."Consumption isn't that much different among poor people and rich people."Utter BS, the rich consume FAR more than the poor.
moreResolved Question: Canadian Capital Gains Tax when selling property owner built?
My husband and I purchased land and are building a home in Canada. We purchased andbuilt a log cabin kit and are doing the remaining finishing work ourselves - - buying supplies as we go. I haven't been good about keeping receipts and know we will have more money in the house than receipts show. When we sell the house how will the actual cost be calculated? So much $$ per square foot to contruct? I'm trying to determine how to calculate the market value to determine capital gains?
moreResolved Question: Can I claim renovations on tax even though property isn't currently being rented?
I have a property that has been vacant for a number of years. It is not leasable as it requires lots of renovations. As the vendor, i'd like to rent out the property. Can I claim the renovations on tax even though it may be vacant for another year or so (depending how long the renovations take). Or does it have to be rented before you can start to claim expenses?
moreResolved Question: Hard Accounting 101 Problem help.?
-Georgia Company, a merchandiser, recently completed its calendar-year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s balance sheets and income statement follow.
GEORGIA COMPANY Comparative Balance Sheets December 31, 2011 and 2010:
2011 2010
Assets
Cash $ 49,800 $ 74,000
Accounts receivable 65,880 54,000
Merchandise inventory 277,500 251,500
Prepaid expenses 1,500 1,900
Equipment 158,000 107,000
Accum. depreciation—Equipment (42,375) (52,000)
Total assets $510,305 $436,400
Liabilities and Equity:
Accounts payable $ 57,680 $111,000
Short-term notes payable 10,000 7,000
Long-term notes payable 65,000 48,500
Common stock, $5 par value 162,500 151,000
Paid-in capital in excess of par, common stock 34,500 0
Retained earnings 180,625 118,900
Total liabilities and equity $510,305 $436,400
GEORGIA COMPANY Income Statement For Year Ended December 31, 2011:
Sales $583,500
Cost of goods sold 285,000
Gross profit 298,500
Operating expenses:
Depreciation expense $ 20,000
Other expenses 132,800
=152,800
Other gains (losses) Loss on sale of equipment 5,125
Income before taxes 140,575
Income taxes expense 24,250
Net income $116,325
Additional Information on Year 2011 Transactions:
a. The loss on the cash sale of equipment was $5,125 (details in b).
b. Sold equipment costing $46,500, with accumulated depreciation of $29,625, for $11,750 cash.
c. Purchased equipment costing $97,500 by paying $30,000 cash and signing a long-term note payable for the balance.
d. Borrowed $3,000 cash by signing a short-term note payable.
e. Paid $51,000 cash to reduce the long-term notes payable.
f. Issued 2,300 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $54,600
-Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investing and financing activities in a note.
Please Help Thanks!
moreResolved Question: Help with a tax problem?
**On line 72 the refund I got was 196.50. I feel like the refund should be higher
Alfred Old and Beulah Crane, each age 42, married 9/7/2008. Alfred and Beulah will file a joint return for 09. Alfred's SS is 111-11-1111 Beulah's is 123-45-6789. She adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta GA, 30304.
Alfred was divorced from Sarah Old in May 2007. Under the divorce agreement, Alfred is to pay Sarah $1250 per month for the next 10 yrs or until Sarah's death.Alfred pays Sarah $20,000 in 2009. In addition in Jan 2009 Alfred pays Sarah $50,000, which is designated as being for her share of marital property. Also Alfred is responsible for all prior years income taxes. Sarah's SS is 123-45-6788
Alfred's salary for 2009 is $140,000, and his employer, Cherry Inc (Fed ID No. 98-7654321) provides him with group term life insurance equal to twice his annual salary. His employer withheld $22,400 for Fed income taxes and $3400 for state income taxes. The following amounts were withheld from FICA taxes: $6622 for SS and $2030 for Medicare.
Beulah recently graduated from law school and is employed by Legal aid Society Inc (Fed ID No. 11-1111111) as a public defender. She receives a salary of $40,000 in 2009. Her employer withheld $7500 for Fed income taxes and $2600 for state income taxes. The following amounts were withheld for FICA taxes: $2480 for SS and $580 for Medicare.
Beulah has $2800 in qualified dividends on Yellow Corp. stock she inherited. Alfred and Beulah receive a $1600 refund on their 2008 state income taxes. They itemized deductions on their 08 Fed income tax return( total=$15000). Alfred and Beulah pay $4800 interest and $1450 property taxes on their personal residence in 2009. Their charitable contributions total $1500( all to the church). They paid sales taxes of $1400 which they maintain in receipts.
Compute of the Old's net tax payable( or refund due) for 2009. Use tax these forms: Form 1040 and Schedules A and BLine 44 I got 29,731.50AGI line 83 169,150line 40a 13,750Line 38 169,150Line 40a 13,750Line 44 29,731.50
moreVoting Question: capital gains tax query?
Looking for bit of advice. My parents bought (all above board, done through solicitors, etc) my grandparents house (a Council house that they had been renting) that they had lived in for about 40 years. This was purchased while my grandparents still lived there, they moved into sheltered housing about 3 years later. My parents have since renovated the house and recently sold it. A letter today from their solicitor mentions that they may have to pay capital gains tax as house wasnt their prinicipal accommodation. This is first time solicitor has mentioned capital gains tax to them! He has all receipts from renovation, would these go towards reducing any tax????? Thanks
moreResolved Question: Which is more tax efficient: investing in an S&P Index fund, or S&P Depository Receipts?
If I want to put a chunk of money in an index fund, and I could do either a Vanguard index fund (VFINX) or buy shares of a "spider" (SPY.)
Is one more tax efficient than the other?
more