Tag Archives: Business law

TaxMama s Tax Quips Possessed and Repossessed

Today TaxMama hears from Mike in Colorado who can’t find an answer. “IRS Publication 537 has a section describing how to calculate a gain, and your new basis, when you repossess real estate. But all the examples, and the instructions describe how to make these calculations when you originally reported the sale using the installment […]

Per Diems on 1099s

Today TaxMama hears from Rita in Oklahoma, with this question. “I will issue several 1099’s this year. I need to know how to categorize their ‘’per diem’’ pay. Is it broken out; or does it get lumped together in Box #7-Nonemployee compensation?”

Lakefront Property

Today TaxMama hears from Carol in New York who tells us. “ I inherited lakefront property in 1999. I recently sold it for $60,000.00 and I am holding the mortgage with payments being made of $600.00/month. Do I have to report the sale; and how will taxes be calculated?”

Equitable Owner

Today TaxMama hears from Sean in North Carolina. “As I understand it you must be an owner and be liable to claim the home mortgage interest and property tax as deductions on schedule A. Now I hear you can be an equitable owner whose name is not on the mortgage and also whose name is […]

Employee vs. Independent Contractor – Ten Tips for Business Owners

If you are a small business owner, whether you hire people as independent contractors or as employees will impact how much taxes you pay and the amount of taxes you withhold from their paychecks. Additionally, it will affect how much additional cost your business must bear, what documents and information they must provide to you, […]

Tax Debt While Buying Home

Today TaxMama hears from Monica in California with a problem. “My husband and I would like to buy our first home, since the local housing prices are currently at rock bottom. However, we owe approximately $20,000 between the IRS and Franchise Tax Board. We pay $200 a month to FTB and $300 a month to […]

Leasehold Improvements

Today TaxMama hears from David in New York with this sensible question. “I have leasehold improvements in a warehouse I rent. The lease is five years. May I depreciate the leasehold improvements over the life of the lease, or five years? Next year, may I depreciate the improvements over the remaining life, or four years?”

Default on Sale

Today TaxMama hears from Tony in Texas, with this tale of woe. “I sold a business and was never paid all of the money that was owed to me. The company closed and went out of business and never paid me. Can I go back to 2006, the year of the sale and recomputed the […]

Misclassified Workers to File New Social Security Tax Form

Employees who were misclassified by their employers as independent contractors should use new Form 8919, Uncollected Social Security and Medicare Tax on Wages, to figure and report their share of uncollected social security and Medicare taxes. Find out more in news release IR-2007-203. —- TaxMama Note: “Misclassified” in this case, means – workers that were […]

Switching Entities

Today TaxMama hears from Kathy in Minnesota who wants to know. “What is the form to elect to change business form? For instance to change from a partnership to a sole proprietor?”

Owning an S

Today TaxMama hears from Jim in Marion, Illinois, who says. “I would like to know if it is legal for an “LLC” to be an investor in an “S” corporation?”

Nevada LLC

Today TaxMama hears from Tom in Upland, CA who wants to know, “I live in So. Cal. and am considering an LLC. I want to set-it-up in NV and do business in CA. I do land development and also sell real estate. Is this the best way to go for liability protection and the tax […]