The Tax Questions Blog

Archive for July, 2009

Question: When are Philadelphia property taxes due?

They have a final due date and a 1% discounted due date a couple months before the final. I received the bill in the mail but can't find it. I need to know both dates!

Answer: The tax is due March 31, 2009. In order to receive a 1% discount, you must pay by February 28, 2009.

If you've misplaced your bill, you can look it up (and even pay it online) with this web page:

UK retailers show Xmas cheer, fear hangover

British retailer Marks & Spencer (M&S) is expected to post its first rise in underlying quarterly sales for more than two years tomorrow, when it kicks off a slew of Christmas trading updates. Rival clothing retailer Next is also forecast to show an improving sales trend on the same day, while supermarket group J Sainsbury is tipped to report a slight slowdown in sales growth due to lower food ...

Don't Panic! Taxes are due April 15 in the USA...

Question: If I'm older than 24 and my parents pay for half my law school, is that taxable income?

I am currently filling out my tax return and I am in a bind. I am 24 years old, and I had taxable income of 6,800 dollars (more than the 3400 limit), so I am pretty sure I cannot be claimed as a dependent.

However...I am in law school and I study for the CPA and have absoloutely no time to hold a job. I am one of the fortunate ones to have my parents help me out with my tuition. I took some Fafsa loans which I will repay when I graduate, but everything else is taken care of from my parents. My rent, food, car, insurance, cell phone, tuition etc. There has to be thousands of dollars here. My only concern is...that since I am considered independent, are all of these benefits I receive from my parents taxable income? I mean the government has to be wondering how I pay my tuition when I tell them I only made 6,800 dollars. I'm just really confused. Thanks for any help.

Answer: your parents can actually give you a total of $24,000 per year. you dont have to report it as income and they dont have to pay the gift tax.

just do you return with your actuall income...oh, dont forget to file for the education credits.

this irs.gov site may be of help.

http://www.irs.gov/newsroom/article/0,,id=107815,00.html

Saving Cents: Last-minute tips to cut back on your '09 taxes

Did you know that job-hunting expenses are tax deductible? So are charitable donations. There are dozens of ways that you can take some last-minute steps to cut down on your 2009 federal income tax bill. HOUSTON—There are a few days left in 2009 for those who want to take action to chip away at the amount you owe in 2009 federal taxes. There’s a bit of good news for those who lost their jobs ...

Question: I purchased a 'used car' using an auto loan last year.Can i get any tax-returns by showing this as expenses?

I paid 5 installments of the car loan repayment last year.(including Dec 2007)

Answer: Interest on auto loans is not tax deductible. If you are itemizing your tax return and used the vehicle for company business you could deduct mileage costs.

Beacon Hill Roll Call

   THE HOUSE AND SENATE There were no roll call votes in the House or Senate last week. Beacon Hill Roll Call this week examines the 2009 salaries and other benefits received by the Bay State’s 160 state representatives.

Rick Ross-Luxury Tax (Ft. Lil Wayne,Young Jeezy,Trick Daddy)

Question: Is life insurance money collected taxable?

After my father died, my grandmother fought my mother for the life insurance he had left us. They went to court and settled, with mother receiving a much-reduced amount on the policy and the rest being split among my grandmother, aunts and uncles.

My mother first received a letter from the IRS saying she owed a ton of money in taxes on the life insurance money. She called them and they corrected themselves, but still said she owes taxes on a portion of the money. The portion in question is money that came from the settlement and was paid to the attorney.

I thought life insurance money wasn't taxable (outside of estate taxes). The money my mother received from the settlement which she used to pay the attorney who handled the settlement is still life insurance money, right?

Should that money be taxable?

Answer: First of all, I send my condolences for the loss of your father. It even makes it harder to deal with when there is confusion and fighting going on in the family.

If your mother was the sole primary beneficiary on the policy when your father died, no court under the sun could take that money away from her.

Life insurance death proceeds are NOT taxable under the IRS code. Now, if your grandmother was the beneficiary, and she divided the proceeds with your mother, then you mom's part would be taxable, because she did not receive the funds as a beneficiary.

Federal Estate Taxes only come into play if your father's estate was more than $3 million for 2009. Any amount over that would be taxable at 45%. For 2010, the Fed. Est. Tax is eliminated, but in 2011, the threshold is reinstated at $1 million. Any amount over that would be taxed at 55%.

Best Wishes.

From tax preparers to tax prognosticators

The economic crisis and the downfall of the real estate market spurred a slew of tax law changes that will impact the upcoming filing season.

Personal Financial Planning Tips : How to Avoid an IRS Income Tax Audit

Question: Is the money from sales of a resident home taxable in U.S. ?

Is the proceed from the sales of a primary residence home taxable in U.S. Federal and/or Massachusettes State systems ?

I was told if the gain is less than $500K then the proceed is not subject to either taxes, is this correct ?

Answer: Maybe.

If you lived in the home as your principal residence for 2 of the 5 years immediately prior to the sale you may be able to exclude part or all of the gain from the sale. The exclusion amount is $250,000 if your filing status is Single or $500,000 if your filing status is Married Filing Jointly.

MA follows Federal law on the exclusion so if you qualify for it, not tax is due at all.

If you do not qualify for the exclusion then the gain is treated as a captial gain and taxed accordingly.

N.Y. Localities’ $36 Million in Muni Bonds Lead Holiday Market

Dec. 29 (Bloomberg) -- New York state municipalities lead sales in the municipal bond market as they auction $36 million of securities to the banks offering the lowest interest rates.