Author Archives: TaxMama

Packing it In

Today TaxMama hears from Richard in McAllen Texas, who asks: “I am in the process of starting up a moving and packing business. It was my intention to purchase one or two used trucks—the type that the truck rental firms sell off after they have depreciated them to their fullest. My question: Will used vehicles […]

Yoga

Today TaxMama hears from Joan in Los Angeles, who has a quick question. “I am a high school teacher. This year I spent a considerable amount of money to become certified to teach yoga in order to teach at my high school as well as at local yoga studios. I didn’t earn any income this […]

Fighting Off IRS Levy

Today Dee from Akron, NY is puzzled, “in 1993, before I even met my husband, he filed his 1992 taxes with H&R Block. Now IRS is claiming my husband did not report a pension check he received that year. IRS has just put a bank levy on our joint checking account. He filed in 1993. […]

Self Employment

Today, Dina from Santa Barbara, CA moans, “Help! We owe $14,000.00 in taxes this year. My husband has a small business and only made $61,000.00. What happened? How can one live and provide for a family of four on that? Now our savings are gone.”

Business Loans

Today Michael from Tacoma, WA says, “I loaned money to a friend’s business. Can I deduct some of the loss of the business? I know if I received a profit from it I would have to claim and pay. If so do you know what tax form and/or line I enter it?”

Lung Cancer Settlement

Today TaxMama hears from James in Texas, who tells us, “My father died from lung cancer from working in chemical plants. I am receiving out of court settlements from several of the companies he worked for, and several more to come. Is this money taxable? If so, what type of income, and what is the […]

Business Standard Deduction

Today TaxMama hears from Marty in Wisconsin who is upset with her tax pro, “Is there a standard deduction of $,5000.00 for the first year that you open a small business? I was told there was and know someone who used it. My accountant will not redo my taxes or tell me if this deduction […]

Funding a Roth IRA

Today TaxMama hears from Dennis in Texas who tells us, “My wife and I are both self-employed, and we’re both the only employees in our companies. We would both like to start ROTH’s, because we would like to be able to withdraw contributions, without penalty, if an emergency came up. We file jointly and our […]

Tax Preparation Fees

Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”