The Small Business Tax Help Blog

Posts Tagged ‘irs’

Question: Estate income versus personal income?

My mother had an IRA, the money was moved the day before she died so it could be used to open her estate account, pay her bills, and mortgage plus funeral expenses. The estate account was opened a week after she passed away. I received a 1099R in her name, (not the estate) with her SSN
not her Federal ID number. Is this taxable income on her personal return? The money went into the estate? Or should it just be entered on the 1041 estate tax return? I do not know where the money in the IRA orginiated from to know what would be taxable. I don’t know if it came from my fathers life insurance when he passed or from when she sold her home.
This money went to pay her bills, mortgage and other expenses for her while the will was in probate.

Answer: If the money was moved before she died than it is your mother’s taxable income not the estate’s. But the value of the money will be needed to be included in her estate return as well. The 1041 estate return will be for the income that your mother’s estate earned after her death. As far as taxability of the IRA, unless it’s a Roth IRA, it’s all taxable. And there is a limit as to how much can be put into an IRA on a yearly basis, so it is highly unlikely that the IRA money was from your father’s life insurance or from when your mother sold her house. You used to have to have earned income in order to contribute to an IRA, and life insurance proceeds or sale of a house are not earned income.

Impac Mortgage Holdings, Inc. Announces Results of Third Quarter 2010

Impac Mortgage Holdings, Inc. , a Maryland corporation, or the “Company,” reports third quarter 2010 net earnings of $974 thousand, or $0.12 per diluted common share, as compared to a net earnings of $3.0 million, or $0.38 per diluted common share for the third quarter of 2009.

Duty of Executor of Will

Question: Can an S-CORP have more than one EIN? Is it possible to apply for / request a second EIN?

We’re a 2 man partnership S-CORP trying to separate some of our business interests and would like to have a second EIN. Can we do that without forming another company?

Answer: Corporations can have subsidiaries as well as various operating entities with a simple DBA fictitious name filing.

The year-end tax accounting can get difficult but every operating entity can have its own EIN.

COTR Refresher Course (17&18 March) Washington DC Area

Special 2-Day COTR Refresher Course for 16 CLP credit hours will be taught at the Northern Va. Center Commuter Campus on 17 & 18 March 2011 from 8 am to 4pm for the Price of $375 (discounts available see below). (PRWeb January 21, 2011) Read the full story at http://www.prweb.com/releases/2011/01/prweb4985594.htm

Nicht so lustig, aber EIN Request

Question: how to start a home base or mom and pop business in RI?

so I run around doing small amount of work for different retail stores, I have an EIN registered with my DBA and just moved into RI, I figure i hav eto notify the IRS of the address change but what else do I have to do. what i do, i purchase retail stock at below dealer cost with businesses money and then i invoice them for my time and miliage, I also do some cooler stocking, product research, setup vendor orders. 15 to 20 minutes here and there. some one said i needed to get bonded? business insurance and a bunch of other stuff, but MA never seemed to require it and I paid my taxes though my ein# so any one out there know any thing about this just me so advise

Answer: Go to www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a volunteer SCORE counselor. They will guide you through the process.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide and is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.

¡¡Feliz Cumpleaños Fran y Raul!!

Question: Recording Expenses for Business?

If I run a consulting business, and I have to travel to clients’ locations as well as have lunches with them, how do I record the mileage/gas/food expenses? Like if I were to keep a journal, how would I write down the information as the IRS would expect it to be in the unlikely event of an audit?

Answer: Keep all of your receipts, and keep all your check stubs. If you have a personal checking account, get a checkbook that makes carbon copies and put the copies in your “payouts” folder. You can also depreciate the value of your vehicle on your taxes if the vehicle is used primarily for business purposes . But even if you use one vehicle for both, you can still write-off the gas, oil changes and service needed because of business-related travel. Also, if it’s a company vehicle you can write-off the loan payments, but I’m pretty sure you already know that!

Contango Updates Operations

HOUSTON–(BUSINESS WIRE)–Contango Oil & Gas Company (NYSE Amex: MCF) announced today that its Galveston Area 277L prospect (His Dudeness) was a dry hole. Total expenditures, including plugging and abandonment costs are expected to be approximately $9.5 million, net to Contango. Mr. Peak, the Company’s Chairman and Chief Executive Officer, said “Drilling dry holes comes with the territory of …

Surviving an IRS Tax Audit : IRS Audit: Proving Expenses

Question: When you calculate how much to withhold for 2007 do you count Social Security as federal tax?

Answer: Social Security and Medicare are taxes at a fixed rate that you have no control over. They are not part of federal income tax.

Social Security and Medicare are not deductible and would not enter into any decision on how much tax to withhold. That is based on marital status, exemptions, deductions, and your tax bracket.

Extendicare REIT Announces 2010 Third Quarter Results

Quarterly Results Include Reserve Adjustment

How to Avoid an IRS Tax Audit : How to Avoid IRS Audit Flags