The Tax Questions Blog

Archive for March, 2010

Question: Where is the best place to get a loan for my circumstances?

I havent been late on any payments in approx. 5 years. My problem is my husband has terrible credit so everthing is in my name. I want to buy a house but my debt to income ratio is off the chart and it really takes a toll on my credit score. I cant use his income because he has claimed a loss for the past 2 years (he's a subcontractor)and he also has to make monthly payments to the IRS. I would love to buy a house but I cant even get a debt consolodation loan - I have approx. $15,000 in revolving credit card debt - all of which is very high interest and most of my cards are almost to there limit....Any ideas???? Does anyone know of any programs or banks that could help me? Thanks in advance....

Answer: Payment history is only one factor in figuring your credit score. It is good that you have not been late, but you need to work on other things also.

Your income is NOT on your credit report so Debt-To-Income has no factor in computing your credit score. DTI does effect the ability to actually get the loan, but that is another factor independent of your score and report.

Your other big problem seems to be that your credit cards are almost at their limit. You need to get those paid down. You should not have more than a 30% utilization. That is in your credit available compared to your credit used you should not be using more than 30%. This means that if you have say $20,000 in a total credit line over all cards, you should not be using more than $6,000 in total.

Taking care of these things will help your credit and enable you to get a loan at a much better rate than you could currently.

TurboTax Home & Business Federal + e-File + State 2010 - [Old Version] $8.15 Designed for sole proprietors, self-employed, consultants, 1099 contractors, and single-owner LLCs. Expanded interview walks you through entering business income and expenses to help you maximize business and personal deductions, home office deductions, depreciation and more. Create W-2 and 1099-MISC forms for your employees and contractors. The Intuit TurboTax Home & Business Tax Year 2010 Softwa...

TurboTax Basic Federal + e-File 2010 - [Old Version] $4.99 The Intuit TurboTax Basic Tax Year 2010 Software automatically double-checks to help make sure your return is accurate. It features downloadable Audit Support Center, which provides guidance on everything you need to do if you are contacted by the IRS. And finally, it files your return electronically and prints it on plain paper....

Letters to the Editor 3/17

Headed for repeat? It seems as if, three years ago, residential real estate prices would go up forever. Buyers were overbidding on residential sales and builders were building.

The fivequests Seminar with Tony Sama

Question: Is it okay for me to contact a property owner and ask them if they are willing to sell their peoperty?

There is a piece of property down the road from where I grew up that has been neglected and does not have anyone living on it. My family and I have always wondered who owned it since we never see anyone coming or going. I recently looked the property up through the Appraisal District and discovered that the property taxes have not been paid since 2004. Would it be intrusive for me to contact the owner and ask if they would be willing to sell this piece of property to me? How do I go about doing so?

Answer: Contact the government office in charge of tax collection first to see if they have seized it or plan on seizing it. Then ask for the contact info for the current owner for the purpose of purchasing it and go from there.

Microsoft Office Home & Business 2010 - 2PC/1User (Disc Version) $279.99 Office Home and Business 2010 32-bit/x64 English US DVDUNSPSC CodeUNSPSC Code :  43231513 ...

QuickBooks Online Simple Start $13.89 Easy to learn and use, QuickBooks Online Simple Start enables you to get started and organize your small business finances quickly. Save time by instantly creating invoices and paying bills with just a few clicks. Log in to a secure website to access your data from any Internet connected PC or Mac computer or mobile phone. Tax time is a snap with one-click reports. QuickBooks Online Simple Start ...

Cities XL 2011 [Download] $19.99 ...

A look at isle golf cart rules

A new golf cart ordinance will go into effect March 31, with a grace period until May 1 before police will start enforcing the regulations.

25-02-10 You Don't Pay Road Tax.wmv

Question: my wife filed for sep?

My wife filed for sep?
well little bit about my stupid self i was a butthole husband so i realize that. i would always hang out with friends never showed her any attention, so when she showed me none after awhile i started looking at porn and talking to people online. well she went to the lawyers office and wanted to file for divorce but she changed her mind to a legal separation. well i know where my faults were i stoped doing drugs cut all ties with friends started back to church and gave my life to GOD and started counsling and spending alot of time with our daughter. question is she said she can see change and shes proud but she does not know if i will fall back into my old ways. what she i do here i need good advice someone who has been in this spot please help i am so confused.

PS we still kiss and hug and say i love you i am just so confused please help.

Answer: You need to earn her back, it won't happen in a few weeks or even months. You just have to patient and prove your love and commitment to her consistently. Don't get frustrated with her and push her to make a decision. Remember, you were the one that ruined it, she could have ran off with someone and never gave you time of day again but she still loves you and shows that through small gestures like hugging/kissing. You know how lonely it feels sitting at home when your husband's out partying or finding out that your husband is talking to other women or masturbating to other women, it's awful. She needs to heal.

Ohio Dissolution of Marriage: Do it Yourself: A Step by Step Guide $15.00 ...

How to File for Divorce in Michigan: With Forms $21.95 A divorce can be the most painful and expensive experience of your life. Whether you use a lawyer or not, protect yourself by getting all the information you need about divorce laws and your legal rights. How to File for Divorce in Michigan simplifies and thoroughly explains everything you need to know to successfully handle your own divorce in the state of Michigan. Complete with step-by-step ins...

How to File for Divorce in Texas: With Forms (Legal Survival Guides) $21.09 Includes key changes in the Texas Family Code Contains more than 30 updated forms Discusses major changes regarding spousal and child support Specifies criteria for division of property...

Mortgage payoff in a divorce

Can split trigger due-on-sale clause? Can split trigger due-on-sale clause? DEAR BENNY: My wife and I are in the process of getting a divorce. I am prepared to give her the family home so that our children will not be disrupted any more than they already are.

Pushing To Obtain A Legal Separation

Question: 1099-A for a rental property and taxes NOT 1099-C?

Hello,

I got a 1099-A (NOT 1099-C) for a rental property. Doing some Research I see that we have to use an IRS form 4797 to this. I understand that I can get later get a 1099-C and this could be taxable and I could use a 982 etc etc but that is later.

For now I have a questions regarding the 1099-A

Box 2(principal) - 182000
Box 4(fmv) =69000
box 5 (liable?) =yes

now my cost minus depreciation is 169000, doing the calculation in the 4797 , it shows I have a loss for 100000. that really bumps up my refund from 4k to 8k. It that correct? I know personal homes would have not been tax deductible, but since this was a rental I can deduct the loss.

please help.
Spock,

I think the rental is done on form 4797, Personal propoerty is done on Schedule D.

Thats what I have found.

Answer: Unless you had stopped renting it before the year it was foreclosed on, the rental property is reported on form 4797, not schedule D. If you ever used this property for your main home, you must determine what part of the loss occurred before you converted it to rental property--that part of the loss is not deductible.

As for the 1099-A, since you are liable the sales price is the smaller number. Use $69,000 fo fill out form 4797. while it temporarily shows a bigger refund, you need to realize that you are still on the hook for the $113,000 you still owe the lender. If that debt is cancelled, the year you add it to your tax return will be a bump in taxes.

Intangible personal property tax : rules and regulations for taxable year 1987. ...

Using debt to leverage a taxable gift to a QPRT.(qualified personal residence trust): An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA's on October 1, 2008. The length of the article is 1399 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Using debt to leverage a taxab...

Intangible personal property tax : rules and regulations for taxable year 1977. ...

CTIA-The Wireless Association Statement on House Ways & Means Committee Mark-Up of Small Business Tax Legislation

WASHINGTON----This afternoon, House Ways & Means Committee members Sam Johnson and Earl Pomeroy sought to attach the MOBILE Cell Phone Act to small business tax legislation being marked-up by the Committee. H.R. 690, which enjoys bipartisan support from nearly 200 cosponsors, would repeal the arcane IRS listed property rule that requires personal use of employer-provided cell phones to be ...

Question: TAX: Are withdrawals from Roth IRA (USA) account taxable in UK when I become UK resident.?

Withdrawals from Roth IRA (Individual Retirement Account) for USA residents is not taxable, since the tax is already paid when the money is moved from Traditional IRA to Roth IRA. Any growth the account earns is paid tax free.
I plan to move back to UK and become resident. When I take money out of my Roth IRA account in the USA and transfer it to UK, would I be taxed on it?

Answer: You say "move back" to the UK so I assume you are domiciled in the UK. If so, the dividends and/or interest accruing to your IRA, and any capital gains in the fund, are considered your own income under UK law and taxable as they arise to the fund, not when you withdraw.

If you are not domiciled in the UK the position is more complex and you should get professional advice.

Understanding Your Tax Returns: Your Social Security And Retirement Benefits Understanding Your Tax Returns is a new series of tax publications designed to help taxpayers across the USA. The objective of these publications is to help taxpayers to understand United States income tax code as far as Form 1040; US Individual Tax Returns is concerned. With a good basic knowledge of the tax code, taxpayers will potentially be in the position to literally increase their income ta...

IRA conversion may affect financial aid award

Q. I’d like to convert a traditional IRA to a Roth, but my son will be going to college soon. Will converting the IRA affect our chances of getting financial aid? — Maureen A. It might. Even though IRA balances...

Apr 15, 2009 - 11/14 - Dan Walkow