Welcome to my Blog!
I am an Accountant and I have set this blog up for every body who is seeking an answer for their personal finance, accounting and taxes. I will be posting very frequently on different tax saving tips. If you have any questions or comments please feel free to contact me.
Thanks for visiting my blog.
Ashraf S. Mehdi
30 comments:
Hello, how are you?
I was working from my company in Japan for last 8 months, I just returned and I dont know how much income tax I need to pay.
Can you help?
Hello, first of all, are you an employee of the company or you were working for them as an independent contractor?
If you were an employee then they should issue you two w-2's for this year. One will have six months pay until you worked in Japan and the other one will have earnings and deductions per the US employments guidelines which you earned in US.
On the second part if you were an independent contractor no withholding have been withheld from your check then you can exclude upto $90,000 from you earnings from foreign source and you will have to pay taxes on the amounts of earnings over the excluded limit.
Hello Sir,
Hopefully you can help me with this question. I currently live in Woodland Hills CA (Los Angeles) and I was hired as an independent contractor as a salesman for a company in Orange County (65 miles from home). I am going to rent an apt to work out of because I need to be in the area the entire business week, but my permanent address is remaining in Los Angeles. Can I write off the rent in my income taxes? Thank you
Dear Ananomous, the expenses you have to incur in order to generate income are deductible expenses. This scenerio does not work effectively if you are a w-2 employee, however, if you are working as an independent contractor, as in your particular case you will be working 65 miles away from your home as independent contractor on commissions, the expenses you incur will be deductible. Some of these expenses are rent, travel, gasoline, car maintenance and meals (only 50% is deductible).
Hi, I have a question. Actually, I created a blog specifically for this at http://95000amonth.blogspot.com/.
How do I make $95,000.00 a month? How many times have you seen clients make this kind of money? What do they do? How did they get there?
I have $7,000 to invest. I would like a purchase a home in the year and a half. Is there anything that I can invest this money in to get a quick return, without losing it? Or how would you recommend investing it?
Dear Mr. / Ms. thank you for posting your question on my blog.
Answer to your question is both simple and complex. I always advice my clients not to have a dead investment i.e. having money or any other investment without giving you any return.
First, ask yourself what is your tolerence level. By that, I mean how much risk can you take? If you do not want to take any risk at all then investing in a 18 months CD will serve your interest. It will give you a nominal about 5% rate of return and at the same time it is much safer than any other (you can also consider it 100% safe as FDA insures your accounts upto $100,000). Second, if you are willing to take risk then you can invest in securities including stocks or bonds, however, be aware that stock markets are very volatile these days and you are subjectng yourself at a very high risk of losing, but you have an opportunity to make some money also. If you decide to invest in securities then study them very carefully specially if they are technology securities or financial securities. Third, if you have any credit card debt then pay it off. There are three main benefits from paying your debt off. First, you will be saving all the interest you will pay and that can be considered as rate of return. Second, your credit score will improve. Third, you will have peace of mind. But unlike other areas you will not get your principal back as you have used it to pay off debt. You can also consult an investment advisor to hand pick some stocks if you are inclined towards a little aggresive investing. Otherwise, stick with a traditional CD (usually you will get a better rate if you have a 18 months CD versus 6 month CD).
Good luck.
I'm a Kentucky resident, but for four months this year, I have worked in New Jersey. During this time, KY and NJ took out an income tax on my income. What my question is is how do I file my taxes this year, since I am still a resident of KY (I just moved temporarily and will be back in KY in December)? Do I have to count my NJ income on my KY income report? Does the money I paid NJ count towards money I owe KY?
Dear writer, thank you for posting your question.
Since, you lived in NJ even as a temporary resident you will receive W-2 from the employer(s) you worked for disclosing state income tax withholdings for both states. It is possible that you will receive two different w-2's at year end, one for KY and one for NJ. At year end you will have to file your multi-state returns, i.e 2 states returns along with federal income tax return. You will have to file as a resident of KY as your stay in NJ was temporary and you will have to file a non resident state return with the state of NJ. The withholdings you have from your paycheck can be claimed as credits when filing. I hope this answers your question.
Thank you for visiting my blog.
Hi, I was wondering if you could tell me what adjustments I would need to make on my tax returnd since I have gone back to school. I usually e-file them and it's very straightforward, but I tried doing it 2 years ago while in school and I wasn't sure what info I was supposed to include and where yo put it? I have received NYS Pell and Tap grants that have paid for the term as well as the books. I am also a massage therapist employed by a salon, but
I have to purchase all of my own supplies. Am I allowed to claim these items and if so how do I do it? Can I still use the e-file given these situations or would you recommend another way. Thanks so much! Have a great day. N
Nicole
Hi I live in Florida and run a home based business. My company is a Sub S.
In 2005 my CPA filed as though I was a Sub C. In 2006 we sent in the amended income tax returns form 1040X (personal taxes). I then received a letter from the IRS stating we had not provided enough info. (there was a notes section on the form that was left blank)
I have been trying for the past 5 months to get ahold of my CPA to take care of this. My problem is my CPA seems to be ignoring me. I call daily and write several e-mails a week, all which go unanswered.
After speaking to the IRS on the phone they said i will need to resend in my return in with the additional info along with a few more forms. 1040 & Schedule A. Both these forms were provided with the original amended 1040x.
What action should / can I take? I've already paid my CPA to do these taxes. I feel it should still be his responsiblity to help me correct this. Am I wrong? What do you suggest? How do i get him to respond?
Frustrated.....
Here's my dilemma..
I performed a telecommute job for a company based in Florida. I live in North Carolina. I was a W-2 employee and they took out Federal, Medicare, and SS tax. Do I have to pay state taxes in NC on this income?
Hello. I was a general partner in a very unsuccessful craft based company with two friends. I gave my share in the company to the other women on July 1 of this year -- half way through the tax year. I went from owning 33.33% of the business to 0%, and they both went from 33.33% to 50%. I received copies of their Schedule K-1 (1065) in the mail, but nothing for myself. Wouldn't their accountant still have had to fill out a Schedule K-1 (1065) for me as well because I was a general partner for 6 months this year? Thank you for your time.
Hi-
I'm creating my personal financial statement to include in a business proposal. How do I account for equity that I have in a vehicle that I am still making payments on?
Bobbi, you need to bring in the full purchase price of the vehicle and classify it as an asset. At the same time record the complete loan balance excluding the interest as your liability. the difference between the asset value and the liability will be your equity.
I hope this helps.
Hello
I would like to know if you can tell me abit about how to handle a home equity loan in my joint 1040 individual.
Can I deduct the money that I have used to fiz u my home and at times pay my morgage?
Thank you
LIz
Liz, the interest you pay on your home equity line is deductible, not the payments as the payments include both principle and interest. Ask your bank or lender to provide you a statement disclosing the amount of interest you paid last year if they already haven't mailed you one.
Ashraf
I live rent-free in a house owned by my parents, am I subject to inputed income taxes?
Good Morning Mr. Asraf. I helping my son with his books. He earns wages in one job and starting studio from 0. I use quicken 2009. He puts all his earnings from Job 1 into studion. how will set him up in quick books. it is not revenue, he is not selling anything just paying bills. How do I label him in chart of accounts.
pls help thank you. Paul
Dear Mr. Asraf,
I have a super-specific tax question that I haven't been able to answer:
A first-time homebuyer can put an untaxed distribution of up to $10,000 from a Roth-IRA toward the purchase of a primary residence, within 120 days of distribution. The question I have is: Must the purchased home be in the United States of America? I have yet to see any restriction on the national location of the purchased property, but, before I go moving my savings around, I want to make sure that this isn't an unspoken restriction. Do you happen to know? Strange and precise question, I know....
grüße
Jeff
We are looking to buy a home - my grandparents are loaning us th money and both their name and ours will be on the deed. We are going to do some repair work that is needed for the home to qualify for financing then we will take out a loan to repay my grandparents. What needs to be done so that we aviod having to pay taxes on the amount loaned ($50,000)?
Can you recommend a way to get realistic practice on the month end closing process? My lack of experience in this area is hindering my job search. Do you know of any websites, books, etc that would have such exercises?
Thanks!!
Hi there,
I am planning to undertake Post Graduate study overseas and as such I don't qualify for a student loan. The course is run in eight modules over two years, and you can pay in two instalments every year, one in October and one in January. My question is, if I am going to take out a personal loan to cover the tuition fees, is it better to get this in one lump sum (about $NZ20 grand) or get four smaller personal loans over the two years? I just figure if I take the lump sum I'll be paying interest from day one, even though I don't actually need all the money right away. My other question is, is it sometimes better to use a low interest credit card for such things? From what I have seen, the interest rates are lower on some credit cards than for personal loans.
Much obliged,
Poor Student
I am not sure if this is where to ask this question. In a janitorial business I have soap dispensers that I sell. I do not charge for the dispensers and the installation
when a customers purcases my soap.I take the dispensers out of inventory.My question is how to I record the cost of the dispensers on the books. Are they sales expenses or are they considered assets to be depreciated. I currently have 4000
dollars worth of despensers installed in various businesses.
I am thinking about purchasing a house and wanted to use money from a foreign account. What are the pros and cons of doing this? Do I have to disclose my foreign accounts when I do my taxes? Does the IRS care where I get the money to purchase my home?
Hello,
I run my own small business and I've grown considerably this last year. I've just switched over to quick books pro and am wondering can I transfer all my bookkeeping information mid month or do I have to wait until the 1st of the month?
I'm merely switching softwares and all the information will transfer except for a few forms I can recreate. What should I do?
Thanks!
I am doing my parents taxes. My dad died in 2009. We have a survivor trust and a bypass trust. My dad had many small investments. Right now, I have 1099's that have the trust name with my mom's social, I have 1099's that have both my parents names with my dads social, I have 1099s with only my dad's name and his social. I understand about the bypass trust which has its own tin,and doing the K-1. What I do not know is this: do I do a 1040 return for my mom, a 1040 for my dad, and then a 1041 for the bypass trust?
Hello Ashraf,
Thank you for being so open to help.
I couldn't find a place to post so I just went to the comment section on your original post.
As far as my question, I recently incorporated a C Corporation (July) in New York.
The idea was to start a consultancy and tailored shirt company, however, since then I haven't done any business as my suppliers in Thailand and I could find common ground. As far as the consultancy I haven't really gone anywhere with it.
I am a recent college grad, and just returned from traveling abroad. I just wanted to make sure I am complying with all necessary requirements of having a C Corp, by filing taxes - although I have not made or spent any money.
I am new to the whole tax world as I haven't had to file before - and am still interviewing for careers.
The year end of my company is March, and I wanted to make sure I am in good standing with the IRS regarding my corporation and take care of whatever needs and requirements they have of my particular situation.
Please advise.
Thank you for your help,
Teddy
Dear Accountant,
I am a self-employed filmmaker who rents video gear to production companies. I am set up as a sole-proprietorship. I fill out time cards for the labor on set and I invoice the production company for my gear. Recently, I had a company ask for a local address so they could apply for a statewide tax-incentive program. Well, I live out of the state so I do not have a local address. My parents live in the state. Could I provide their address to this company? The production company would want me to change the address on my invoice too but since the income from the invoice is taxable, is this legal? Could I put the gear rentals on a "kit rental" form attached to my time card? I want to solve this and not lode a valued client.
I held options (granted several years back through an incentive plan, all vested) with a private company of which I was an employee. We were bought by another company in 2010; I was let go and my options were converted into stock certificates for the acquiring company. I sold some of this stock in 2010 and kept the rest. I have 1099B forms for the stocks I sold.
I'm confused on how to declare this for 2010 federal taxes. Do the certificates count as income worth the stock price on the day the certificates were issued, and then I declare a short term capital gain on the part that I sold? Does the fact that the options were granted several years ago make this a long term gain somehow? Thanks!
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