Author Archives: TaxMama

LLC Now or Later

Today TaxMama hears from Tommi in NC who asks, “When would be the best time to change from a sole proprietor to an LLC? Now? Or would it be best to wait until the first of the year, since I will have to get a new tax ID number (I will have employees)? Do I […]

Welcome – Now Pay Us

Today TaxMama hears from Ruth in Washington state who tells us, “I’ve just registered a vehicle in WA state after moving from AZ. They require out of state registrants to pay a “use/sales tax” on motorhomes. Mine was almost $3,000. Will I be able to deduct this from IRS taxes?”

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 […]

After Death

Today TaxMama hears from Cheryl in Kansas who wants to know, “Do you have to file an estate return when the whole estate is going to be less than $200,000? There are 3 heirs (1 in Kansas and 2 in Texas). The assets include the funds from the sale of the house (about $145,000) and […]

Changing IRS Collection Policy

Today TaxMama wants to talk about a disturbing IRS policy. It’s based on this question from a reader – “The IRS is wanting to garnish my wages for back taxes from 1998. My ex and I are both responsible, but he is claiming self employment, living with a very wealthy girlfriend. So IRS is coming […]

Consulting Mommy

Today TaxMama hears from Megan in KY who tells us, “I have recently been asked to do some marketing communications consulting work for my previous company. I went on maternity leave last February, then resigned. In this freelance position, I have a cap of 25 hours per week that I may work. This is the […]

Pre-Marital Tax Debt

Today TaxMama hears from Helen in AZ who has this question, “I have a 1992 IRS tax debt of $30,000. I got married in 1999. Is my husband responsible for this debt? We have never filed joint returns.”

When 911 is a Good Thing

Today TaxMama hears from Eric in San Jose, CA who wants to know, “Internal Revenue Code Section 911 allows you to avoid paying US taxes on money you earned while you are a resident of another country. What does it mean that you have to be a bona fide resident to qualify? Or to have […]

Marriage Penalty

Today TaxMama hears from Debby in Illinois who got quite a shock. “I have been married for about a year (have been together for many more). I just found out that my husband did not file tax returns for several years, including at least two when he was self employed. I am in the process […]

Eminent Domain

Today TaxMama hears from Penny in Kansas who asks. “If a gas station owner is forced by the government to sell part of his property so a street can be widened, is that considered involuntary conversion? Eminent domain? Do you know how this situation should be treated tax-wise?”

Deducting Wife’s Taxes

Today TaxMama hears from Ross in NJ who wants to know. “My wife is self-employed and I am employed at an office. We were told that I could adjust my W-4 to cover her estimated taxes, thereby eliminating the need to make quarterly payments. Is this correct? If so, how do we do that?”