March 15, 2005 - S-Corp Elections Due
March 15, 2005 - Corp taxes due
March 15, 2005 - Corporate extensions due -
pay last year's balance due
03.31.2005 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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Talk about a Mickey Mouse job - work at Disneyland! http://taxmama.careerbank.com/company_jobs.cfm?company_id=10288
Check out the 2004 Salary Survey results to see where you stand.
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Dear Family,
Next week will be our 300th issue.
Amazing. Has it been that long?
We'll have a special issue for you then.
In the meantime, I've created a special page to keep you up-to-date on the
latest in tax news and legislation - up
to the hour, or, minute, in fact. http://snipurl.com/dd51
(please feel free to make this your home page.
Or you can play with the customization tool and have
Google create your own personal news pages.
Please remember to join me Saturday morning at 11:00 am EST with Heloise.
You've been reading her (or her mother's) tips in the Sunday comics and newspaper
columns all your life.
(more below)
I am so excited - WomensRadio.com just featured THE BOOK http://www.womensradio.com/ourworld/Authors/authors.htm
If you haven't explored this site - DO. They have some wonderful resources, reviews of books - and information about seminars and meetings all over.
Tune in to Real Life - you'll feel so much better to
learn that more educated women are getting married.
What a relief! Don't give up hope yet! http://www.womensradio.com/reallife/reallife.htm
For those of you doing your own tax returns online, Turbo
Tax's prices will increase on April 1st - so do them now.
(or pay now and finish them later?)
Here are some reputable services:
Turbo Tax http://www.turbotax.intuit.com/welcome/affiliatecobrand04/live.htm?source=giftec
TaxBrain.com use code TXM334 for discount
Tax Cut
http://www.amazon.com/exec/obidos/tg/browse/-/516462/102-7037880-2825750
Tax Act
http://www.taxact.com/offers/taxact_both.asp?sc=0370145
Complete Tax http://www.completetax.com/CTindex.asp?welcome=ZB1306350&AID=7097206&PID=241922
Remember, for those of you who have a corporation with a
regular (12/31) year end - your tax return is due next week.
If you aren't done - file an extension. It's good for six months.
Today is a good day to set up your EFTPS account so you can pay your corporate
taxes - or your personal estimates in April. http://www.taxmama.com/AskTaxMama/297/article1.html
Got to go. Still lots to do.
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
[you can listen, live by going to this URL a few minutes
early and clicking on the GREEN LISTEN LIVE button.
You may need to download their audio tool] http://www.lifestyletalkradio.com/weekend_hosts/ahl.shtml
---
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 ]
[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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Blogging for Fun and Profit and History
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If you're not really sure what a blog is, aside from the
literal definition of a weblog, think of it this way.
It can be anything you like. You can use a blog as a
personal journal, and show it only to those closest to
you. You can use it as a focal point for a hobby -
inviting lots of like-minded hobbyists to read it and
share their information and ideas. You use it to simply
tell stories - stories that you create - or relate other people's stories or
book reviews. You can use it to rally people around a political or charitable
cause.
Or you can use it as an adjunct to your business (or
even as your business), talking about news about your
products, services or your industry.
You can create your own blog (no charge) at Google's www.Blogger.com or www.BlogSpot.com (really!)
Ken Leebow, the Incredible Internet Guy, is fast
becoming the King of Blogs. His latest issue is
well worth reading. It's about conveniently reading
your favorite blogs:
----
Dear Internet Friend:
The blog world has been getting a lot of attention
and my blog has been too. The blog world is so new
that it's like the Net of 1997.
I report on incredible blogs and interesting things
about the blog world.
Visit my blog at:
http://www.IncredibleBlogs.com
The best way to read blogs is via an RSS service.
This is the one that I recommend. http://www.bloglines.com/register
[TaxMama interrupts: Then, you can click here and
sign up for the Tax Insider, which only comes out
when I feel like it. http://taxmama.blogspot.com ]
In addition to getting my information via the
above service you can receive information
from other news sources and blogs.
If you are not familiar with the world of RSS,
read this information at my site:
This is what an RSS service looks like . . . http://photos1.blogger.com/img/49/35/640/bl.jpg
This is an explanation of RSS . . . http://bloggingaboutblogs.blogspot.com/2005/02/rss-finally-simple-explanation.html
Bottomline: By using an RSS service you can
become brilliant and other people do all the work.
That's called "Work Smart, Not Hard."
Kindest regards,
Ken Leebow
Visit me at . . .
www.IncredibleBlogs.com (Blogging about Incredible Blogs) www.IncredibleInternetGuy.com
(my weekly TV Segments) www.300Incredible.com (my books)
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-------------------------------------
Proud of our Friends
-------------------------------------
You remember Merle, http://www.merlesworld.com
Well, she just came out with a new book about
marketing - Must Have Marketing Resources - Volume #1
It's collection of articles and tips to build your business.
http://mcebook.mcpromotions.com
Virginia Lawrence's <http://cognitext.com > son's career
is coming to an awful end -
and she's thrilled. It seems Frances Lawrence, who just
directed his first movie, Constantine is a bit hit in Hollywood. It seems he's
already tapped to do a new movie about a children's novel called, A House
Called Awful End" by Philip Ardagh. http://www.zap2it.com/movies/news/story/0,1259,---25010,00.html
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How To Be Net Savvy - and Save Money http://www.taxmama.com/AskTaxMama/298/article1.html
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The Most Overlooked Resource By Small Businesses Today http://www.taxmama.com/AskTaxMama/297/article1.html
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-------------------------------------
Raising Horses
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>From the Internet
Dear TaxMama,
I have a friend raising horses - she has a
boarding/training stable.
She has her first new baby horses - born in 2004.
How do I treat them.
What is the tax basis for these foals?
Are they depreciable? or appreciable?
Help and Thanks,
Larry
<TaxPro Replies>
Hi Larry
Congratulations!
No basis. They're babies.
So they cost the owner nothig - at least no direct dollars.
When/if she sells them, use Schedule F since the
horses are inventory.
Basis will still be zero.
You'll be writing off all their maintenance costs.
Does this help?
Take a look at the Farmers Tax Guide - Pub 225 for more information http://www.irs.gov/publications/p225/index.html
Oh, yes, you ARE using Schedule F to report this
business, not Schedule C, right? Please, DO.
It will make a huge difference in your audit rate.
Best wishes
Eva Rosenberg
Remember to tell your client to read
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
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IRA to ROTH, with Attitude
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From: Oakland, CA
Dear TaxMama,
I started a company 2003. it is one member LLC
in delaware. I work as a consultant.
I went to an online payroll service to pay my
tax. I was a california resident working in New
Jersey. So, I was able to claim per diem since
I was away from my resident state.
My question is: If I return for work to my resident
state can I still claim per diem?
And can I find answers to these type of questions
in your book?
Thanks.
Joachim
<TaxMama Replies>
Hi Joachim.
[Chuckle] You're not going to find answers to
exactly this type of question in my book.
Hardly anyone does this sort of thing.
However, you're going to find enough information
about what you can and can't do with per diems
(and where to find the current and past numbers for
each city) - as well a host of other situations you
haven't even thought of yet.
When you return to California to work, as a California resident, you won't
get to use travel expenses.
You will get a lot out of the chapter on Internet
issues, one of which is 'nexus'. That will help
you a great deal with the tax home concept.
However, as a California resident, you may want
to re-think that Delaware corporation concept.
If you want to know why, join me on March 23rd http://taxmama.com/workshops/ to find out why. Don't worry - it's free.
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/
-------------------------------------
Capital Error
-------------------------------------
From: Austin, Texas
Dear TaxMama,
I made a mistake on my 2003 Schedule D.
My losses were greater than I reported.
Since I already took the maximum $3,000 loss for
2003, the only number affected is my capital loss
carryover (not my 2003 Adjusted Gross Income).
It doesn't look like there is a line to fill in
on the 1040X for this situation.
Should I attach an amended Schedule D and refer
to it in the explanation of changes section instead?
After I submit an amended return for 2003, do I
use my updated Capital Loss Carryover when
preparing my 2004 taxes, or do I need any kind
of acceptance of my amended return from the IRS?
Thanks for your help.
Jean
<TaxMama Replies>
Hi Jean,
Yeah, you really should amend the 2003 return before
you file 2004.
Yes. Prepare the corrected Schedule D and attach it
to the 1040X. For the reason for filing - just explain that
you omitted a capital loss and need to establish the correct capital loss carryforward.
Then, using the amended 2003 Schedule D, prepare your
2004 tax return.
No, you don't need to wait to hear from IRS.
You've got it exactly right. I am so proud of you.
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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Home, Sweet Mess
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From: Penfield, New York
Dear TaxMama,
My parents bought a house in 1952, mortagage paid
off in 1983.
My Dad passed away in 1995 and for estate planning
purposes the house was gifted to my son (her grandson)
in 1996 with life use. The deed was transferred and
Form 709 (gift tax) was filed by my mother.
In 2004 the house was sold by my mother.
For convenience, since her grandson lives out of town,
and to make the sale easier, the house was re-gifted
and deeded back to my mother.
The sale price was 63,500.
My mother has lived in house for 52 years, responsible
for all taxes, improvements, utilities, and insurance.
It is the only house she has ever lived in or owned.
Since she maintained life use, is she elgible for
the home exclusion?
Roger
<TaxMama Replies>
Dear Roger,
You guys SO messed this up. With a value this small,
whose idea was it to so urgently move it out of her
estate? There was no reason to do that! If this is
the biggest asset in her estate, it isn't large
enough to tax.
Did anyone discuss any of these moves with a tax
professional? Or did you just read the instructions
on the Gift Tax form and think you were being so
clever?
For Mom to get the personal residence exclusion,
she'd have to both live in it and own it for at
least two of the last five years.
She qualifies on the one hand, but not on the
ownership side.
The Good News:
At least, one thing is in her favor. The tax basis
of the house is the fair market value at the date
of your dad's death. So what was the house worth
at that time?
Add the cost of any improvements she made since 1995.
Add all the selling costs and commissions. That will
be her gain. It probably won't be much. But,
at least, it will be long term, since the holding
period will that of the person who gave her the gift.
Roger, you guys really need to get advice BEFORE
doing things, not afterwards. Please, in the future...
Take better care of each other, OK?
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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Because We Care
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Don't let yourself or your friend feel helpless.
Share the Power - SCHOLARSHIPS FOR SELF-DEFENSE TRAINING AVAILABLE SHARE THE
POWER:SELF DEFENSE TRAINING is gaining POWER!
visit Share The Power - http://www.sharethepower.com
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A.N.G.E.L.S. DAY
Helping Seniors keep their pets
http://angelsday.org/
Talk to Linda Baker for more information
(310) 680-0798 LBaker6343@aol.com
==========
The Jeremiah Society asks "Who Will Care for the Children?"
Today, many of these people outlive their parents. And therein
lies the problem. Once their loving caregivers are gone, who
will care for them? And will they be able to care for themselves?
The Jeremiah Society, is working to help enhance and enrich the
lives of developmentally disabled teens and adults in the Jewish
Community Please Call Rose Lacher, (714) 997-8193
http://www.jccoc.org/adults.html
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MONEY FUNNIES
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Not So Fast, Buddy
A police officer in a small town stopped a motorist
who was speeding down Main Street.
"But officer." the man began, "I can explain,".
"Just be quiet," snapped the officer. "I'm going to
let you cool your heels in jail until the chief
gets back..."
"But officer, I just wanted to say...."
"And I said to keep quiet! You're going to jail!"
A few hours later the officer looked in on his prisoner
and said, "Lucky for you that the chief is at his
daughter's wedding. He'll be in a good mood when
he gets back."
"Don't count on it," answered the fellow in the cell.
"I'm the groom."
----
Contributed by Jeannette Pollard
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IRS and Tax NEWS
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Courtesy of IRS March 10, 2005
IRS Awards Approximately $7.5 Million to Tax Clinics Aiding
Low Income Taxpayers http://www.irs.gov/newsroom/article/0,,id=136595,00.html
WASHINGTON — The National Taxpayer Advocate, Nina E.
Olson, announced that the Internal Revenue Service
has awarded approximately $7.5 million in matching
grants to Low Income Taxpayer Clinics (LITCs) for
the 2005 grant cycle (Jan. 1, 2005, through Dec. 31,
2005). LITCs are qualifying organizations that represent
low income taxpayers involved in tax disputes with the
IRS or that provide education on tax rights and
responsibilities to taxpayers for whom English is a
second language or who have limited English proficiency.
Under the program, the IRS awards matching grants of
up to $100,000 a year to organizations operating
independent Low Income Taxpayer Clinics. For the 2005
grant cycle, the IRS awarded LITC grants to 145
organizations representing 48 states plus the District
of Columbia and Puerto Rico.
With the enactment of the Consolidated Appropriations
Act of 2005, which provides for the appropriation of
$8 million to the IRS for the use in awarding LITC
grants, the IRS is planning a supplemental grant
announcement. The additional $.5 million in grant
funds will be directed to states that do not presently
have a tax clinic and to communities where there is
limited clinic accessibility.
The following link goes to the list of organizations
awarded a matching grant for the 2005 grant cycle:
http://www.irs.gov/pub/irs-utl/litcgrants2005.pdf
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E-Books and Workshops - all Yours - No Charge
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Fifty Easy Ways to Promote Your Website, By MERLE http://www.websitetrafficplan.com/ebook.htm
This is one woman who's done well.
And she's not charging you a dime for
her years of experience.
---
New Year's Resolution Time - Budgets!
Money For Life, a novel about budgeting...
along with some interesting tools for you.
http://giftsurf.com/Specials/Money4Life.pdf
--
For more:
http://taxmama.com/workshops/
-------------------------
Not-So-Fr*e Books
-------------------------
http://taxmama.com/resources/shopbook.html
eBook - TaxMama's Secrets:
Ten Businesses to Start Online Without Spending One Thin Dime hhttp://www.1automationwiz.com/app/aftrack.asp?afid77528
For more:
http://taxmama.com/resources/shopbook.html
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TaxMama On the WWW & Tooting Her Own Horn http://taxmama.com/toots/index.html
TaxMama is teaching - in person and Online: http://taxmama.com/toots/meettaxmama.html
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Critical Dates http://taxmama.com/taxcalendar.html
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Ask TaxMama is published by the good folks at http://taxmama.com ISSN 15320790 © copyright,
Eva Rosenberg, 1999 - 2004 TaxAnxiety Inc. P.O. Box 280549, Northridge, CA
91328 Written (e-mail) permission is required to copy or redistribute this
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