------------------------------------------------------------
*** Ask TaxMama Volume 7, Issue #317 July 15, 2005 ***
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
-----------------------------------------------------------------
http://taxmama.com/taxcalendar.html
07.15.2005 Partnership/Trust (1065/1041)Returns or Extensions
Due
Have
you done your extensions yet?
07.21.2005 Last Day to get Personal info to me to file timely
08.01.2005 2nd Quarter Payroll Taxes Due
08.01.2005 2nd Quarter Sales Taxes Due
08.16.2005 Personal Returns or Extensions are due
-----------------------------------------------------------------
-----------------------------------------------------------------
JOB OF THE WEEK visit the NEW http://taxmama.careerbank.com
-----------------------------------------------------------------
Paraprofessional - no degree needed! Great entry into Accounting
at MATTHEWS, CARTER AND BOYCE, CPAs in Fairfax, VA
http://taxmama.careerbank.com/job.cfm/184838.htm
Take the new 2005 Salary Survey
http://www.careerbank.com/resource/ssurvey/salary_survey.cfm
-----------------------------------------------------------------
Dear Family,
The funniest thing happened yesterday.
Listening to radio, I hear Melinda Lee
< http://melindalee.com/main.html >
saying that she was reading a book the other
day. And then she describes the recipe she
read about. For some reason, that jarred me.
I was expecting her to talk about a book she 'read'.
I've never thought of cookbooks as something you
read, rather as something you use. Hmmm.
Don't you love hearing her show? She's always
coming up wonderful bits of food history.
Speaking of radio, tune in tomorrow to Jerry
Wade's radio show at 2:25 pm CENTRAL time.
You can hear it via the Internet - and please,
call in and talk to us!
www.jerrywadeshow.com
Jerry Wade is a very interesting man. You're
going to love the name of one of his pet projects:
The Fund Police
http://www.fundpolice.com/
Yes, it IS what is says - he rates various
funds by how friendly they are to investors.
It's going to be very interesting meeting this guy!
Oh, I want to thank Elmo M. Ilderton, III for
catching an error in the calendar in these issues.
All is well again. (I still have to fix the one
the site and change 08.02 to 08.01 - must be left
over from last year.)
For those ladies who like attention and know how
to celebrate, Claudia Bloom, Editor of RealSimple.com
is looking for your stories about how you celebrate
your special days (not the usual birthday, wedding
stuff, but days that have significance to you -
like divorce anniversary, etc.). Interested?
write to her at (replace with at @ and close spaces)
claudia_bloom at realsimple.com .
Well, another Harry Potter book is coming out.
http://www.amazon.com/exec/obidos/ASIN/0439784549/mywishlistA/
If you're alive and breathing, it's hard not to
know about it. Parents and kids will be in line
at bookstores for midnight openings and manic
shopping. Kind of like a Rocky Horror Picture Show
http://www.amazon.com/exec/obidos/tg/detail/-/B00004U8P9/mywishlistA
where you must be accompanied by a child.
Did you know that J.K. Rowling has been one of the
most frequently challenged authors in 2003 and 2002?
Some people love her work, others revile it.
Personally, I thoroughly enjoy her books and films -
and admire her for sticking to it until she found
a publisher. Three cheers for the little mom with
the big spirit!
More good news, the good folks at WomensRadio.com
will be launching their new site next week.
Drop by, you're going to love all the new
columns and features (including TaxMama's).
Of course, the trade-off with all the places where
TaxMama is popping up, that means the number of
questions coming in is increasing dramatically. I
can't even come close to answering them all. I
will try as hard as I can to get to yours. But,
please always bear in mind, when you're getting
testy and sending me your request for the third
time - this is a FREE site. You pay nothing.
TaxMama.com is supported entirely from my pocket
and the dozens of hours of my time each week. This
time is taken from my sweetly patient clients who
actually pay me - and who would prefer that I
finish their tax returns. So, if the time comes
that we can get a sponsor with deep pockets, I'll
hire staff to do nothing but help you out!
In the meantime, ask nicely. And wait. It will be
your turn soon.
Have a lovely weekend - enjoy the odd weather.
[Here the temp differences between the valleys
(110+) and the beach (65 - 70) are as much as
50 degrees apart today.]
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
P.S. If you're in business, you MUST read
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
P.S.S. TaxMama has baby clothes!
http://www.cafepress.com/taxmama/138360
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.
**************************************************
---==========**********O**********==========------
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/
----==========**********O**********==========-----
--------------------------------------------------------
Media Tour and Classes
--------------------------------------------------------
Tomorrow! Join me and Jerry Wade on Saturday morning
at 2:25 pm CENTRAL time in Minneapolis, MN
You can tune in live from www.jerrywadeshow.com
--------------------------------------------------------
TaxMama's IRS Exam Review Class - Self-Study
Listen, read, test yourself - pass the exam
http://irsexam.com/register.php
---------------
RESCHEDULED - PLEASE NOTE THE NEW DATE
Copyright your Book, Blog and Blather
Please join us Wednesday, July 20
at 1:00 p.m. PACIFIC
Download your free
iConference software now
http://taxclass.ipowerworld.net/freemember.aspx
[If you need help signing up, please contact Donna Woodbury.
You can reach her at donna.woodbury@gmail.com or 707.884.4696
Don't hesitate to contact her - she really IS eager to
help set you up.]
----
Our Offer in Compromise workshop this week was terrific.
Order your copy
http://www.1automationwiz.com/app/netcart.asp?MerchantID=27884&ProductID=2424795
EAs can get 1 hour CPE for this workshop
http://www.1automationwiz.com/app/netcart.asp?MerchantID=27884&ProductID=2424798
Have a lovely weekend.
-------==========**********O**********==========-------
USE
THESE QUICKIE RESOURCES!
----------------------------------------------------------------
101 WAYS TO BE
YOUR BEST
http://www.1automationwiz.com/app/?Clk=1091429
----------------------------------------------------------------
----------------------------------------------------------------
Summertime, when the bookkeeping's easy.
----------------------------------------------------------------
Time to catch up on your business and read
Small Business Taxes Made Easy -
It will increase your business cash flow
by at least $10,000 - probably more.
Custom autographed book, just for you - $17.50
includes shipping in the continental US.
http://asktaxmama.com/go/autographed
Just put the name of the person, or any special
message you want to include, in the COMMENTS box
on the order form.
---- How Easy is it? -- just in today ---
Eva, I read your book in one day and it's phenomenal!!!
I've learned a lot from it and some of the information
is already in use in my practice. Thanks a bunch!
I've been preparing returns for 7 years, 95% of the
returns and my clients are small business owners; 1-5
employees. I couldn't put your book down. It'll be a
valuable resource in my practice. The resources in
it alone are valuable.
Ken Pangelinan
Tax Resolution Specialists, Inc.
www.taxreliever.com
----------------------------------------------------------------
This Week's Tax Quips
----------------------------------------------------------------
If you haven't subscribed yet, you're not
just missing some juicy tips. You're also
missing daily news and other commentary.
Please - accept a complimentary subscription
from your cheery TaxMama
http://www.taxmama.com/taxquips/
This weeks pearls of wisdom are at:
http://www.asktaxmama.com/podcast/
MONDAY - Becoming an S-Corp
http://www.asktaxmama.com/podcast/index.php?id=8
TUESDAY - SS-8 - or Dishonest Boss
http://www.asktaxmama.com/podcast/index.php?id=10
WEDNESDAY - I Want my EIC
http://www.asktaxmama.com/podcast/index.php?id=11
THURSDAY - S Corp – Office in Home
http://www.asktaxmama.com/podcast/index.php?id=12
FRIDAY - Donating a Home
http://www.asktaxmama.com/podcast/index.php?id=13
----------------------------------------------------------------
S-Corp Officer Benefits
----------------------------------------------------------------
Last week, Bob from Port St. Lucie, FL asked
about having his S-corporation deduct his
medical insurance.
http://www.taxmama.com/AskTaxMama/316/article3.html
<TaxPro Suggests>
Neil Johnson of Brown, Kaplan & Liss LLP in
Chicago, Ill comments:
I believe the S-corporation shareholder-employee
is allowed to deduct the health insurance
premiums as an adjustment to income as long as
these premiums are included as compensation on
the W-2.
I believe this is addressed in the instructions
for the 1040.
Neil Johnson
Brown, Kaplan & Liss LLP
www.brownkaplan.com
http://www.brownkaplan.com/neil_johnson.htm
<TaxMama Replies>
Hi Neil.
Of course you're right.
And these paragraphs are missing from
the published answer (I didn't want to
bore everyone with numbers.):
So suppose the insurance costs $2,000 and
the S-corp's profts are $22,000
and your wages are $20,000.
If the company deducts the insurance, your
pass-through income is $20,000. BUT you must
increase your wages by $2,000 to $22,000.
Total income is $42,000.
AND you've just paid payroll taxes on that
extra $2,000 in wages. But you may be able
to deduct the $2,000 of insurance as self-
employed health insurance on the front of
your tax return as an adjustment to income.
(called an above the line deduction)
If the company doesn't deduct the insurance,
your wages are $20,000, the company's profits
are $22,000. Total income is $42,000 So, you can
deduct the $2,000 of insurance as self-employed
health insurance on the front of your tax return.
But, you've saved yourself 15.3% of the employer's
and employee's share of Social Security and
Medicare + other payroll taxes.
In essence you come out ahead, if your company
doesn't add the insurance to your wages. That's
why I don't advise it. That, and it's complicated.
Sometimes, shorter is better?
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
Author of the tax book from McGraw-Hill,
Small Business Taxes Made Easy
http://www.taxmama.com/AskTaxMama/book/
----------------------------------------------------------------
Daddy Died
----------------------------------------------------------------
From: Boulder, CO via Brazil
Greetings from Brazil, Dear Tax Mama!
I'm here to resolve some muddy financial
issues that arose from my father's death.
My specific question to you is:
He had an apartment, which I'm selling at
its market rate of $US 50.000,00.
There may be more money from life insurance,
but I don't know until I get it.
1) How can I legally bring that money into the US?
What are:
2) Taxes upon entering with this money?
3) IRS taxes?
4) Inheritance taxes?
5) Forms? Regulations?
6) Best way to invest this?
Buy real estate in the US? Other possibilities?
Thanks
Cris
<TaxMama Replies>
Dear Cris,
LOTS of questions. And they are very appropriate
questions. But waaaaaaay more than a free
columnist can answer in depth. So, let me touch
the high points for you and set your mind at rest.
But, do get someone, a good local tax pro, to
help you - at least for this year, OK?
1) How can I legally bring that money into the US?
Just get the proper paperwork to show the money
is inherited. The best way to get the money here
is to ask the bank in Brazil to do a wire transfer
to your US bank account. So be sure you have your
check book with you - and the address and phone
number of the bank.
2) What are taxes upon entering with this money?
None
Of course, if you bring in cash, you'll have
to declare it at Customs. But...that's a whole
different issue.
3) IRS taxes? 4) Inheritance taxes?
Let's combine these two, OK?
None. IRS won't charge you for the inheritance.
Once you invest the money, of course, you're apt
to have taxes.
But you didn't ask the critical question -
WHAT ARE BRAZIL TAXES?
That, I don't know. But Brazil has some policies
about foreigners involved in business taking money
out of the country. I don't know what Brazil's
policy is about inheritance money. You probably
will have taxes in Brazil on the sale of your Dad's
home. So, please speak with your father's executor
and have him or her help you.
You'll need help on the Brazil end.
If you end up paying taxes in Brazil, it's possible
youmay be able to deduct them, or take a credit for
them on this year's US tax return. Maybe not if you
have no US income from these transactions.
5) Forms? Regulations?
None
6) Best way to invest this? Buy real estate in the
US? Other possibilities?
Real estate is always a good idea. You're a mom
with kids. Why not find yourselves a home you can
afford, that will go up value over the years?
Ask me later, once you've returned and know how
much money you get to keep. Perhaps I'll have
some good ideas then.
My condolences on the death of your father.
Sure the money's nice. But Dad would be better.
Hugs and Best wishes,
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
----------------------------------------------------------------
Because We Care
----------------------------------------------------------------
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
==========
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
-----------------------------------------------------------------
MONEY FUNNIES
-----------------------------------------------------------------
Give...and you shall
Sitting by the window of her convent, Sister Barbara
opened a letter from home one evening. Inside the
letter was a $100 bill her parents had sent. Sister
Barbara smiled at the gesture. As she read the
letter by the window, she noticed a shabbily dressed
stranger leaning against the lamp post below.
Quickly, she wrote, "Don't despair. Sister Barbara,"
on a piece of paper, wrapped the $100 bill in it,
got the man's attention and tossed it out the window
to him. The stranger picked it up, and with a puzzled
expression and a tip of his hat, went off down the
street.
The next day, Sister Barbara was told that a man
was at her door, insisting on seeing her. She went
down, and found the stranger waiting. Without a
word, he handed her a huge wad of $100 bills.
"What's this?" she asked.
"That's the $8,000 you have coming Sister," he replied.
"Don't Despair paid 80-to-1."
------
Contributed by Blakely Sanford, EA in San Diego, CA
[Remember, we're always looking for SHORT, clean humor!]
-----------------------------------------------------------------
IRS and Tax NEWS
-----------------------------------------------------------------
Just, the Fax, Ma'am!
Facsimile Signatures Now Permitted on 941s
Designated forms files on or after July 1, 2005, can
now be signed by facsimile (rubber stamp, mechanical
device, or computer software program). The newest
forms include the Form 940 series (940, 941, 943, 945,
941c, 941-SS, etc.), Form 1042 (Annual Withholding Tax
Return for US Source Income of Foreign Persons), Form
8027 (Employer’s Annual Information Return of Tip
Income and Allocated Tips), and Form CT-1 (Employer’s
Annual Railroad Retirement Tax Return).
As in the past, a corporate officer or duly authorized
agent must still be the one who “signs” the forms.
The officer or agent is personally responsible for
ensuring that their facsimile signature is affixed to
the returns. (Reminder: Regulation 31.6061-1
provides a list of those who can sign these forms.
The list includes a person acting as an agent for the
taxpayer if the person has an acceptable power of
attorney on file with the IRS. Some tax professionals
forget that a POA is required before the tax
professional can sign the returns.)
---------------------------------------------------------------
E-Books and Workshops - all Yours - No Charge
-----------------------------------------------------------------
Open for Business: One Woman’s Story of
Successfully Building A Company
Start off right by learning first-hand advice
from a woman who built her own business from
scratch and grew it into a multi-million dollar
company.
Featuring Karen Gordon, President and CEO of GTCI
Tuesday, July 26, Noon Central
Pre-register for online classes at
www.principal.com/women
Space is limited. Cost = $.0
Sponsored by The Principal Financial Group®
-------------------------------------
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
-----------------------------------------------------------------
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
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Critical Dates http://taxmama.com/taxcalendar.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Ask TaxMama is published by the good folks at http://taxmama.com
ISSN 15320790 © copyright, Eva Rosenberg, 1999 - 2005
TaxAnxiety Inc. P.O. Box 280549, Northridge, CA 91328
Written (e-mail) permission is required to copy or redistribute this
publication or to use it on your site. mailto:taxmama@taxmama.com
However, you are encouraged to forward an intact copy to all your
friends and invite them to subscribe!
-----------------------------------------------------------------
Legalese and Disclaimer http://taxmama.com/privacy/disclaim.html
-----------------------------------------------------------------
Got questions? http://taxmama.com/subscribe/askform.html
This publication is ONLY sent via voluntary subscription.
To Subscribe http://taxmama.com/subscribe/
To unsubscribe at any time, click on the link under this line.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
%UnSubscribe%