California
Tax Amnesty ends
http://www.taxmama.com/AskTaxMama/294/article2.html
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JOB OF THE WEEK http://taxmama.careerbank.com/
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Love golf? Controller for Golf Courses Managers in Raleigh, NC
http://taxmama.careerbank.com/seeker/view_job.cfm?id=126848
Check out the 2004 Salary Survey results to see where you stand.
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Dear Family,
So many exciting things going on this week.
First of all, for you - I'm giving you a live class on Wednesday, March 23rd at 4:00 pm Eastern on special issues that affect Internet businesses. No charge. Details below. (More details to come...)
Next, two more terrific things for you:
Domain names for only $3.95 per year from GoDaddy.com . (That's less than it costs them.)
Incidentally, if you've been meaning to create a website, but didn't really know how - they have a quickie tool to help you create a lovely site - and they'll host it, too for under $4.00 per month. Check out Website Tonight.
This is the perfect opportunity to buy your own name, or to buy a domain for an idea you've been meaning to develop. Then, you could even get a private e-mail address with your own name - like [yourfirstname@yourlastname.com]
You're also starting to see ads from IRS's EFTPS program on the site. That's their Electronic Federal Tax Payment System. Why did I bug EFTPS to sponsor TaxMama.com?
Read "The Most Overlooked Resource By Small Businesses Today" below. (Ssshh..even some people who don't have businesses can benefit from using it.)
The rain finally seems to have stopped here. For a while. Rumors are, more storms are coming this way.
The irises that the Freemans sent me were planting and lots of green shoots are coming up. Who knows, maybe with all this moisture, they'll survive even my black thumb. Got to run. My husband's heading home from work. Doncha just love split shifts on days that you're busy? It's almost like having a retired duffer hanging around.
Oh nearly forgot! WARNING - the latest Phishing target (real-looking e-mail) is Dun & Bradstreet. If you get an e-mail saying your D&B Credit Report has changed - just delete it. Do NOT provide your information. It's not from them.
And a note about the corporate minutes scam. If you want to file a mail fraud complaint, here's a USPS link:
And don't hesitate to contact the Attorney General's office in your state.
Remember, February is nearly over. Monday is your deadline for sending in your W-2s and 1099s - and your City of LA business license (if you live here.)
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. THE BOOK is out - if you're in business,
you need it!
http://www.taxmama.com/AskTaxMama/book/
P.S.S.
Drop
by
TaxMama's
Shopping
pages
http://taxmama.com/resources/shopping.html
P.P.S.
TaxMama
is
scheduling
speaking/teaching
engagements
for
summer 2005. (Calendar
is filling up)
mailto:taxwriter@gmail.com?Subject=Speak4Bucks
**************************************************
To comment
on any articles
in this issue, please,
DON'T send me back the whole issue. Send
a note to
mailto:taxmama@taxmama.com?subject=AskTaxMamaComment
**************************************************
ADDRESS
CHANGES - Please, do NOT
send them to me
to do.
There is a link at the bottom of this
issue. Please click
on it and you will be able to make updates
and changes
yourself. And faster.
**************************************************
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In 2003, Americans OVERPAID their taxes
by more than $500 MILLION!
Did
you?
Play a simple, two minute game and learn what tax professionals call
"the most overlooked tax deduction in America." ItsDeductible will put
$300 to $1200 back in your pocket -- guaranteed -- or your money back.
http://1deg.net/ht/id1/taxmama/
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Media Tour and Classes
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Join me Saturday March 12, 11:00 am EST for an hour on
Hints From Heloise - http://heloise.com/ - call in
and chat.
http://www.heloise.com/radioshow.html
---
Reserve the date! March 23, 2005 at 1:00 p.m. Eastern Time
Tax
Issues Affecting Internet Businesses with Eva Rosenberg
You're invited to a live online class - as my guest
http://www.ipwseminars.com/week.php?cid=&catid=2&d=25&w=4&m=3&y=2005&s =
To register, please click here and "Take the Free Test Drive"
http://taxclass.ipowerworld.com/
[If you need help signing up, please contact Donna Woodbury.
You can reach her at donna.woodbury@gmail.com or 707.884.4696 ]
---
Read articles and columns at www.WomensWallStreet.com
where you can even join in the discussion about the
questions.
[Coming soon: Columns on www.WomensRadio.com ]
Look for articles in Newsday, www.iParentingMedia.com,
Univision, and the Dow Jones Newswire.
[Yes, someone kindly pointed out that my TOOTS pages
haven't been updated since 2003. Sorry - been too busy
living to write about it.)
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President Bush and Social Security
http://taxmama.blogspot.com/2005/02/open-letter-to-president-bush.html
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The Most Overlooked Resource By Small Businesses Today
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Let's face it, we know that money in a small business is
usually tight. We're always scrambling to pay bills, often
at the last minute. Oh sure, we usually get them paid on
time, or just under the wire...
But that often means running around to post offices
just before they close so we can get things postmarked.
Or, often, when it comes to taxes, having to pay extra
for proof of delivery so we can avoid penalties.
Or, to ensure that you meet a payment deadline, you use
one of the online tax payment services, like
OfficialPayments.com - which charge you a charming
"convenience fee" of 2% or more of your payment.
OR, you end up missing the deadline and paying late fees
to IRS. Some of those can be pretty costly. (On late
payroll deposits - it's 10$!)
Is this really the best use of your time and your money?
Heck no!
Join IRS's Electronic
Federal Tax Payment System (EFTPS).
Using this system, you can transfer money from your bank
account at the last minute to pay your payroll taxes.
You won't have to run to the bank.
You won't have to pay for overnight shipping.
You won't have to pay extra to get a receipt.
You simply initiate the payment the day before the
tax is due. You get a time-stamped receipt, in
effect, based on the electronic date and time of
your transaction. It's called an EFT Acknowledgement
Number.
Another benefit I think you'll like. For those of
you who have a tendency to forget what taxes you
paid, or you know the date and amount, but didn't
note the year or type of tax....all you have to do
is log into your account and, voila! The data is
right there.
Didn't bring the information to your tax pro's office?
No prob. Just log in from his or her office. The
information is at your fingertips. Kind of fun,
actually. It's like having POWER!
And you've incurred no fees. No "convenience fees",
no wire transfer fees. And no extra staff time costs
to run to the post office, and risk a traffic
accident or...
You can pay any of your business taxes.
In fact you can use EFTPS to make your quarterly
estimated payments. You can schedule all of them
for the whole year. But, what's if, when that day
comes you don't have the money? Or you're income
is down, and your estimated payments should be
smaller? Just log in 48 hours before the payment is
due - and cancel it - or change it. Simple.
Anyone can sign up. You don't have to be a business.
Frankly, I don't see any reason to be running up
"convenience fees" on credit cards. They're not
really convenient. In fact, they're a waste of money.
If you're in business and have to pay payroll taxes,
corporate taxes or self-employment taxes - sign up
today.
If you're not in business, but have to make estimated
payments on your investment income, or have prior
year taxes to pay, or regularly get notices about
adjustments, changes or corrections to your account,
set a personal EFTPS
account. IRS will welcome you.
Don't worry about this being part of IRS's system.
It's not a sinister thing. As Martha would say,
"It's a good thing."
[BONUS: Tim Winship at frequentflier.com tells me
that some debit cards or related bank accounts, will
pay you bonus points or miles when you use them.
He can tell you which ones.
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It Always Depends
-------------------------------------
Last week, Sharon from Kentucky asked about using her
daughter as a dependent.
http://www.taxmama.com/AskTaxMama/295/article1.html
<TaxPro Replies>
Dear Eva,
Depending on the tax consequences, why doesn't the husband
file an amended return, using a 1040X and report his
income using the MFS (married filing separately) status?
The mother might be eligible for the EIC and the Child
and dependent care credit too. Moreover her filing status
would be HOH (head of household), another improvement.
I can't really figure this out without the numbers from
everybody, and their situation.
Best regards,
Roger Adams,EA
Portugal
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Missing W-2s
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Each year we have ONE annoying question that
people can't seem to stop asking. In the past,
it was the early child tax money. This year,...
We are still getting LOTS and LOTS of questions
from people who are missing their W-2s.
Please note: I will not be answering those questions.
We already have lots and lots of information on
TaxMama.com telling you what to do.
Start here with IRS's explanation.
http://taxmama.com/AskTaxMama/294/irsnews.html
Not enough? Search TaxMama.com for w-2
http://taxmama.com/search.html
You'll get over 300 hits.
NOTE: Your situation is not different.
It fits one of the profiles we've already described.
Sure, it's different to you, because this
may never have happened to you. And it's
personal and frustrating and....
What do you want to me to tell you to do
about getting it from your employer?
If they aren't giving you your 1099 and
they're and still in business....try this:
TAXMAMA'S TIPS TO GET MISSING W-2S
1) Camp on their doorstep with a very bright
yellow tent with BOLD BLACK lettering that says -
NASTY EMPLOYER - REFUSES TO GIVE W-2s.
2) Go visit your employer's payroll office
every day and just hang out there, pestering
the payroll staff and making a nuisance of
yourself. Sooner or later, they will give up
and print one for you.
3) Take out a big newspaper ad and tell the
world what a jerk he is.
4) Hire Guido to take him out behind his shop
and beat some sense into him.
5) Drag him into court and get the judge to
force him to give it to you.
Or just do the sensible thing - stop stressing
and bitching. Just get over it. Use a replacement form.
http://taxmama.com/AskTaxMama/294/irsnews.html
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Journal Entries for Real Estate
-------------------------------------
From: NYC, NY
Dear TaxMama,
I am a real estate investor in NYC and Maryland
and have purchased several properties.
My dilemma is that I not quite sure how to record
these purchases in Quickbooks.
Below are the details for one of the NY properties.
I will use your response as a model for the others:
[loooooooooong list of expenses deleted]
Additionally we contributed $15,000 during a 2-month period to cover various
rehab expenses.
Finally, We refinanced the property at $500K pulling out some equity of $85K
of will $52K was distributed evenly between the partners for repayment of
cash we invested.
May questions are:
1. How do I record the purchase?
2. how do I record the capital from partners?
3. how do I record HUD-1 fees/closing cost?
4. How should I record rehab expenditures?
5. How do I record Refinance and payoff
of prior
loan? (should the closing cost be entered in the same
manner as in Question 3?)
6. How do I record Equity?
7. How do i record distribution of Equity
to partners?
8. How do I record the paydown of Principal
and
Interest related to monthly payment. (my monthly payment
also includes escrow amounts--how do i record those?)
Fred
<TaxMama Replies>
Dear Fred,
If you can afford to buy the properties, you
can't afford not to have your own tax professional.
[TaxMama was being [polite here]
Ask TaxMama is just a free service to guide to
additional information, where possible. I can't do your
journal entries. It would take me at least a half hour
to write out one entry and explain it to you. And to
answer ALL those other questions and explain accounting
procedures to you - well, count on at least two more
hours, minimum.
That's the function of your bookkeeper or, preferably,
your tax professional. Hire them. Pay them for their time.
[Unsaid at the time, but...really...what kind of idiot
embarks on a million dollar property buying spree
without working with a tax professional who is solidly
grounded in real estate tax and accounting????]
Where can you turn to get specific information about
how to book a real estate purchase? Good question.
I honestly don't know. These are things I learned during
my 10 years in college in the course of my degree and
my 15+ experience handling taxes and accounting for
real estate investment and mangement companies.
Well, gee, here's a book you can get for only $295
http://www.reiclub.com/products/121
You might explore some of these hits on Google.
Search was for "bookkeeping for real estate journal entry"
But really, if you are investing in real estate, you do
need someone by your side to handle the bookkeeping and
tax set up and issues. It will save you a fortune in the
long run.
(Besides, there are a couple of ways to book your
particular transaction, depending on your long-term
goals for the building.)
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
The BOOK is out!
Small Business Taxes Made Easy - read all about it!
http://www.taxmama.com/AskTaxMama/book/
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Two Many W-2s
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And then there's this nutty situation....
From: Orlando, Florida
Dear TaxMama,
Why does my employer issue me 2 W-2's for the same
year instead of one?
They are both accurate and contain correct information.
Isn't it easier for them to issue me just one?
Thanks Mama
Jeff
<TaxMama Replies>
Dear Jeff,
Are they for different amounts?
Or for different parts of the year?
I can only guess. But the main reason
employers issue two W-2s to the same
employee during the same year is......
[drum roll, please........]
It's not the same employer.
Look closely at the name of the company
and their employer identification number.
You'll see the number is different and the
name is slightly different.
Your employer may have incorporated, or
formed an LLC or...changed the business
structure.
If that's not right....maybe one of the W-2s had
some minor error and they voided it.
Or, you might just ask your employer what in the
heck they did that for?
Hey, maybe they know!
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
The BOOK is out!
Small Business Taxes Made Easy - read all about it!
http://www.taxmama.com/AskTaxMama/book/
[Note: Jeff says they are BOTH from the same
company - no change of name. The company simply
seems to issue a separate W-2 for the first half
of the year and another for the 2nd half.
Who comes up with these strange business practices? ]
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The Jeremiah Society, is working to help enhance and enrich the
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http://www.jccoc.org/adults.html
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MONEY FUNNIES
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TAX JOKES
The average man now lives thirty-one years longer than
he did in 1850.