From Verdi's Rigoletto: La Donna È Mobile
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This is the gold page. After paying federal, state and local taxes that's precisely what we all need . . . and lots of it.
No, probably not. For the past 30 years, thousands of 1040s and hundreds of extensions, we have never had an extended return selected for audit. This should be considered, however, by the fact that our audit rate is very low compared to the national average. Less than one-half a percent of the returns we prepare are selected for audit. So the sampling of hundreds may be questionable on a statistical basis.
If you ask this question, it's already too late. There is a Section 1031 transaction that might have helped you, but needed to be done in advance. Always consult a pro before making any major business move.
Yes. And if you don't the answer is still yes. But in both cases it depends upon business use. That's the acid test. You must keep a contemporaneous (daily) log of business mileage. You must also record the mileage at the beginning and end of the year to obtain the total mileage. For those who deduct actual expenses and depreciation the percentage of business use determines the percentage of the expense that can be deducted. Example: Total mileage is 10,000 miles. Business mileage is 7,500 miles. Percent business use is 75 percent. If insurance for the vehicle is $1,200, the deduction is $900. Those who use the mileage rate would simply base the deduction on the 7,500 business miles.
If the mileage is less than 50 percent, then no depreciation expense is allowed. Additionally, the standard mileage rate option only applies if there is one vehicle. Businesses with two or more vehicles at the same time have to use the actual expenses.
If he's your helper, he's your employee no matter what you call it. Your best bet is to look at form SS-8. Answer the questions truthfully and if you still can't decide, consider asking IRS for a ruling
Legitimate sub-contractors will have their own specialties, tools and equipment. They also work for other contractors and carry their own workers compensation and liability insurance.
WARNING: If you choose to ignore the guidelines, be prepared to be liable for social security, Medicare and income taxes as well as workers compensation on the monies paid to him.
TIP: This problem usually arises from New Jersey Unemployment audits. If the state determines that a sub was an employee by statuary law, they report their findings to IRS.
Maybe. If you provided over half her support. To determine support consider household expense, medical and dental care, clothing, etc. If her gross income is under $2,650, no problem. Gross income is earnings, interest, dividends, capital gains, TAXABLE social security and TAXABLE pension to name the most obvious.
If her gross income is over $2,650, don't give up. If the ONLY reason she doesn't qualify is her gross income, you can still claim her medical expense if you itemize, actually pay it and provide over half her support.
Useful information from IRS can be found at this
Another site to check out is the University of Tulsa College Law Library.
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