EFFECTIVE IMMEDIATELY! The Division of Corporations no longer has authority to waive the $400 late fee for annual reports filed after May 1st. The provision for waiver in s. 607.193(2)(b),F.S. was repealed during the 2010 Legislative Session. All business entities except non-profit corporations must pay the late fee if the annual report is filed after May […]
Spouse & Homebuyer Credit
If a spouse had not owned a home within the past three years, could that spouse qualify as a first-time homebuyer for the credit even though the wife would not qualify? No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior […]
Homeless Person – I gave money – can I deduct it?
If you gave money to a homeless person or anyone needing assistance, thank you but that is not a 501(c)(3) deductible charitable organization. Nice gesture but no deduction. […]
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Proof in an Audit
How do you prove a deduction? First, a cancelled check, credit card charge or cash receipt. BUT, that only proves you paid for something. Second, an invoice showing what was paid. For example, you have a cancelled check to an insurance company. It only proves you paid for something. You might have paid your Grandmothers […]
Recourse vs. Nonrecourse Debt
Recourse vs. Nonrecourse When a debt is canceled by any means (deed in lieu of, foreclosure, short sale,cancellation of debt), the tax impact depends on the type of debt. Debt for which the borrower is personally liable is “recourse debt,” all other debt is “nonrecourse debt.” RECOURSE debt holds the borrower personally liable for any unsatisfied amount owed […]
Reverse Mortgages – Taxable? Deductible?
Question: Are the amounts a taxpayer receives from a “reverse mortgage” taxable? Deductible? Answer: NO to both. Interest on a reverse mortgage loan added monthly to the outstanding loan balance as it accrues is neither taxable in a cash method lender’s gross income nor deductible by a cash method borrower at the time it is added. […]
Work Clothes Deduction
Are Work Clothes a Deduction? Generally yes if they are work clothes or uniforms if required and NOT suitable for everyday use. That deduction would include the cost and upkeep if both requirements are met. If I purchase a nice suit for business, it is not a deduction as it has alternate use. If I am a professional clown […]
Scholarship Count Toward Support?
According to Publication 17, “A scholarship received by a child who is a full-time student is not taken into account in determining whether or not the child provided more than half of his or her own support.” […]
2009 Mileage Rates
MAGIC.pdfMAGIC.pdf2009 Standard Mileage rates for the use of a car (includes Pickups, Vans and Panel Trucks): 55 cents per mile for business miles driven (decreases to 50 cents per mile in 2010) 24.0 cents per mile driven for medical or moving purposes (decreases to 16.5 in 2010) 14 cents per mile driven in service of charitable organizations (same […]
Do You Have to File?
That depends on the AMOUNT of income AND the TYPE of income. Filing is not required if all of your income is from W2 Wages, Interest, Dividends and Other Miscellaneous Inocme (excluding Social Security) AND if the total income is less than the Standard Deduction plus personal exemptions. 2009 example:A Single person’s standard deduction is $5,700. Add a personal exemption of […]