Hi folks, I do home based part-time consulting in addition to my full time job. While doing my taxes I realized that I can deduct the mileage spent going to Bank, Post Office, Client’s Office and Hardware Store. I didn’t not log my miles every time I got in and out of the car but my bank deposit proves my travel to the bank, my credit card purchases prove my travel to hardware store and my PO BOX proves that I had to go to post office to pickup the mail.
Is that enough proof to deduct my 700 miles for business errands for past year ?
My total number of miles for the year is about 9500 miles which out of that 3500 is for commuting to my full time job office.
I keep reading that IRS scrutinizes mileage deductions and it’s a well known red flag. Is it even worth taking the 0 deduction here, especially that I didn’t keep a detailed daily log and my only proofs are what I listed above?
I understand that each trip needs to be logged and proved. Can this log be created at the end of the year using the transaction information from Credit Card, Bank Account and online map to see the miles traveled ? Or does it HAVE to be logged on the same day of the trip.

Hi everyone! Thanks in advance for even reading my question. And if you have any input it would be much appreciated!

So I have already filed my taxes! Yeah! But…I just received another 1099Misc in the mail (Isn’t it way too late for that, legally?) representing about 5 in income. What to do!?

I am an actor and so receive, like many other professions, both W2s and 1099s. While doing my taxes this year I had all of my 1099s entered and I realized that that 5 was not accounted for. So I entered that income, without having received the 1099misc yet, in some field (I used Turbo Tax) called "other income" or "additional income" that applied it towards my profit from business/business income (where the other 1099misc were applied to). Then a week later I receive the 1099misc!! So annoying!

SO….I did report the income. But do I need to amend my taxes and report it under the 1099misc and take it out of the "other income" column? It will change absolutely nothing on the bottom line.

As mentioned I am an actor. I don’t make much money so I am using the Qualified Performing Artist deductions and other work related deductions. I assume that that makes me a larger target for audit and I dread that like everyone does. So I don’t want to become a larger target!

Thanks everyone!!
c.e.h.
Thanks guys for all the info…heres the thing. I DID include the income in question on my schedule C-EZ. It was added to line 1 (Gross receipts) with the totals from the 1099misc i did enter. And so it was included in the net profit on my schedule SE when determining my self employment tax. I did not add it to line 21 of my 1040.

So the question stands, knowing this. Since I did pay taxes on it, do I still need to amend my taxes putting that income with the 1099misc even though the totals/bottom line would not change?

You guys are great! Thank you!
Thanks JVTM! That would be very helpful!!

Yes we are in the same boat. Everything was claimed in the right place, just less the 1099 form itself. Anyone else have any input?

Ok I have had this lady do my taxes for me for the past 2 years. She has always done them at no charge since I qualified under her Free or Reduced program. The way we’ve always done this process is since she lives in another state now, she mails me an envelope with some helpful tax info. for me such as deductions etc. and also included is a tax organizer for me to fill in so that she can do my taxes easier. Well I received that envelope from her in my mail early February 2008. I filled it out and mailed it back to her with my tax form, documents and other receipts. After several days of not getting any response from her as to receipt of the items I mailed to her, I then emailed her to both her personal email and her business email. She never replied to either so I called both her business and home phone. Her business number turned out to be bogus and her home phone a machine always picked up. I left her a message and waited. She never called back so now it’s April 14, 2008…..
one day, as you all know before the tax deadline. I called the IRS and informed them of the situation and the lady I spoke with advised me to try and contact her a few more times today and if I received no response then to get them done somewhere else this year. Thankfully I had made a copy of my tax form (my 1099) I always make copies of my 1099 or W-2s just in case they get lost. Well since it was so close to tax deadline, I went to Tax ACT since some of my co-workers say they use that tax software to file their own taxes quickly and easily. I was able to file both my Federal and State taxes thru Tax ACT. I emailed the lady I had wanted to do my taxes one last time to inform her that I didn’t know why she wasn’t replying to my phone calls or emails but that since it was 1 day away from the tax deadline I went ahead and had my taxes done elsewhere. I also asked her to send back my tax documents to me (there’s a more but I’m fixing to run out of room so I’ll continue below)
sorry ran outta room. I wanted to mention that after I sent the email informing her that i had gotten my taxes done elsewhere already and that all I needed from her now was for her to mail back all the tax documents I sent her. Well not even 5 minutes after I sent that email my phone rang and it was her. She told me that the reason that I had never gotten the taxes she prepared for me was because she had accidentally placed the wrong zipcode on the envelope she put them in which she mailed off to me. She said she had just gotten them back from being lost in the mail because of the incorrect zipcode. Ok well I told her that I went ahead and already had my taxes prepared by someone else this year and that they were already taken care of. I asked her to please just send back all my tax documents to me. I even offered to pay postage so she could mail them back to me ASAP. She told me not to worry about postage and that she would get them in the mail right away. Still haven’t got them.

im building an online business, where people from all over the world will participate. its like a marketplace for a specific niche, and exchanges of services will take place on my web site.

when i need to pay them for the services, i will issue them a check and mail, or thinking of using PayPal to pay them.

How do i go about deducting these payments for my taxes, can i show my PayPal account history to IRS ?

United States -AZ

federal tax mailing address

2008 Tennessee Legislative Tax Changes

Effective January 1, 2008

This summary highlights some of the more significant changes that Tennessee has enacted and that have become effective on January 1, 2008.

from 6% to 5.5%

The new 5.5% state rate, in addition to any applicable local rate, applies to all food and food ingredients for human consumption. The full state rate of 7% plus the applicable local rate applies to prepared food, dietary supplements, candy, tobacco, and alcoholic beverages. The complete list of the defined terms and examples can be found at the Department of Revenue website at www.state.tn.us/revenue.

References: PC 600 (2007), TCA Sec. 67-6-102(36), Sec. 67-6-228

Delivery Charges Included in Definition of “Sales/Purchase Price”

The definition of “sales price” and “purchase price” is now amended to include shipping and delivery charges made by the seller for delivery of tangible personal property and services. Delivery charges are subject to sales/use tax when charged by the seller for delivery of property or services that are otherwise subject to sales/use tax. Delivery charges for property or services otherwise exempt (resale etc..) from sales/use tax would be exempt from the tax.

References: PC 602 (2007), TCA Sec. 67-6-102

Residential Energy Fuels

Residential energy fuels sold over the counter at the location of the seller continue to be subject to the state sales and use tax, and they are exempt from local tax. Specifically, propane is now exempt if sold over the counter to the consumer, for residential use, in a container with a capacity of one hundred pounds (100lb) or more.

References: TAC Sec. 67-6-334, 523, & 704

Leases and Rentals – Amended Definition For Sales/Use Tax Purposes

In regard to the application of Tennessee sales/use tax, all leases/rentals entered into on January 1, 2008 and thereafter will be subject to the amended definition regardless of whether a transaction is characterized as a lease or rental under GAAP or the IRS code.

Until this change, Tennessee generally viewed all leases the same and (assuming the lease/rental was otherwise taxable) sales tax was generally due when each lease/rental payment was made during the life of the lease/rental. Under the new definition (see below) certain leases (generally capital or financing leases) will now be deemed a “sale” and sales tax will be due in total upon the inception of the lease/rental and not on each lease/rental payment.

The amended definition of a lease/rental is as follows:

“Lease or rental” means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A lease or rental may include future options to purchase or extend.

The definition does not include these types of transactions:

• Transfer of property under a security agreement or deferred payment plan that requires the transfer of title at the end of the required payments. Therefore, taxed as a “sale” and subject to tax at the inception of the lease.
• Transfer of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of $100 or 1% of the total required payments. Therefore, it is taxed as a “sale” and subject to tax at the inception of the lease.
• Providing an operator along with the property. An operator must do more than maintain, inspect, or set up the tangible personal property. (Taxed as a sale of a service not as part of a lease or rental of property)

Terminal Rental Adjustment Clause: The amended definition also clarifies treatment of additional payments or credits (refunds) that may arise under agreements that have a terminal rental adjustment clause. Such adjustments are now considered part of the proceeds of the lease at the end of the lease term. Either additional sales tax may be due, or refunded, depending on the disposition of the property at the end of the lease term.

References: PC 602 Sec. 93 (2007)

Agricultural Exemption Certificate Requirement and Expansion of the Exemption

New Certificate Required: On January 1, 2008 Farmers, Timber Harvesters, and Nursery Operators will be required to present proof of status that they qualify to make agricultural purchases exempt from tax. This proof of status has been defined as an Agricultural Sales and Use Tax Certificate of Exemption, which must be supplied directly to the seller of the items. This certificate will also include a new exemption certificate number and must be renewed every four (4) years. The farmer and nursery affidavit that was used to obtain the exemption before this change is no longer valid after January 1, 2008.

In 2007 the Department of Revenue mailed out these new certificates to taxpayers they determined would automatically qualify for the exemption. For taxpayers who were not determined to automatically qualify an application must be filed with the Department of Revenue to receive the new exemption certificate. This application can be obtained at the Department of Revenue’s web address- www.Tennessee.gov/revenue.

To qualify for the exemption the taxpayer must meet one or more of the following:

• Must have at least $1,000 of agricultural products produced or sold during the year (including government subsidies).
• Provide for-hire custom agricultural services. Such as plowing, planning, harvesting, growing, raising, processing agricultural products, or maintenance of agricultural land.
• Qualify for taxation under the provisions of the Agricultural Forest and Open Space Land Act of 1976.
• Federal Income tax return contains one or more of the following:
  • Business Activity on Schedule F
  • Farm Rental Activity on Form 4835 or Schedule E

• Establish to the satisfaction of the Commissioner of Revenue that the taxpayer is actively engaged in the business of producing agricultural products.

Exemption, Expansion, and Modifications:

• The cost of machinery and equipment no longer has to be more than $250 to qualify for the exemption.
• The purchase of All Terrain Vehicles (ATVs) from a dealer can now be purchased tax free.
• The prior rule required that tax be paid to the dealer, and then the taxpayer had to request a refund based on the agricultural exemption.
• Dyed Diesel fuel used in vehicles, not operated on public highways, and other such equipment is no longer subject to sales tax when purchased by person with a new exemption certificate.

Repeal of the 1.5% state tax on electricity, gas, and liquefied gas – including propane – used directly in producing food for human or animal consumption or to aid in growing of agricultural products for sale by persons with a new exemption certificate.

References: PC 602 (2007), TCA Sec. 67-6-102, Sec. 67-6-207

Prescription Drug Definitions Adopted

As of January 1, 2008 Tennessee adopted specific definitions for prescription drugs and related terms that bring Tennessee in compliance with the Streamlined Sales Tax Agreement. The newly adopted definitions for the terms: drug, over-the-counter drug, grooming and hygiene products, and prescriptions were previously not defined in the Tennessee statutes. The substance of these changes does not represent a significant change in the taxation of these items in Tennessee.

Generally drugs for use by humans, dispensed as a result of a prescription, will continue to be exempt from sales and use tax pursuant to TAC Sec. 67-6-320. For the detailed definition of these terms you can consult the Department of Revenue website.

References: TCA Sec. 67-6-102

Medical Equipment Definitions Adopted

As of January 1, 2008 Tennessee adopted specific definitions for medical equipment and related terms that bring Tennessee in compliance with the Streamlined Sales Tax Agreement. The newly adopted definitions for: prosthetic device, durable medical equipment, mobility enhancing equipment, and prescriptions were not defined previously in the Tennessee statutes. The adoption of these new definitions, and the amendment of the exemption statutes to take into account these terms, does affect the taxability of certain medical equipment.

An example of the change that will occur because of the adoption of these definitions is for prosthetic devices. Prior to this adoption in Tennessee medical equipment was exempted from tax if the prosthetic device replaced a missing body part or augmented the performance of a natural function. The new definition is essentially the same as before; however, it does add an important difference in that the device must be, “worn on or in the body”. TCA Sec. 67-6-102 is as follows:

(A) “Prosthetic device” means a replacement, corrective, or supportive device including repair and replacement parts for same, worn on or in the body to:

• Artificially replace a missing portion of the body;
• Prevent or correct physical deformity or malfunction;
• or Support a weak or deformed portion of the body.

(B) “Prosthetic device” does not include:

• Corrective eyeglasses;
• or Contact Lenses

The taxability of corrective eyeglasses and contact lenses has not changed. The optometrists and ophthalmologists, upon purchase, continue to pay tax on the purchase price. The subsequent sale of the lenses to their patients is exempt from tax.

There is a new exemption for durable medical equipment purchased for home use pursuant to a prescription. Examples of Durable medical equipment include: hospital beds, special beds and mattresses, bed rails, IV poles and pumps…etc.

The complete list of the defined terms and examples can be found at the Department of Revenue website.

References: PC 602 (2007), TCA Sec. 67-6-102, Sec. 67-6-314

Caskets and Burial Vaults – $500 Exemption Repealed

Effective on January 1, 2008 the $500 exemption for caskets and burial vaults has been repealed; therefore, the entire cost is now subject to Tennessee sales/use tax. Additionally, sales of flowers, clothing, stationary, and other tangible personal property are also subject to the Tennessee sales/use tax. The sale of other services such as embalming, hearse services, and limousine services, that are separately stated on the customer’s invoice, are not subject to tax.

References: PC 602 (2007)

About the Author

LBMC is the largest regional professional services family of companies based in Tennessee. The group has three offices across Tennessee. As a Top 50 professional services family of companies, LBMC is recognized as a solutions leader in accounting, consulting, human resources, and technology.
LBMC – more than you expect, everything you need.

What is the mailing address for filing Federal Taxes?

What is the mailing address for the IRS. I need to mail my Federal Tax return, and I’m not sure of the address.

Use the link below to find an address for mailing your return.

http://www.irs.gov/file/content/0,,id=105693,00.html

A Complete Guide to the $7500 Federal Tax Credit

credit tax adoption federal

Tax planning – details to know before choosing a lawyer

Taxation of individuals and local companies, state and regulations is subject to certain federal regulations. You must have an understanding of the legal details of a proper tax planning. You knowledge of current tax laws to include the categories of expenses that are tax deductible, management of tax consequences, and Details of this type.

You need expert help to accomplish this task. Law tax planning "> tax attorney who is planning method work for you. The main objective is to alleviate the burden of taxes the entity.

The application of the legislation on income earned in a given fiscal period is what is intended to tax planning. If you are an individual, such income may come from salaries and wages, bank accounts have generated interest, return on investment, and others. If this is a business income may be stock and bond, income from the sale, and so on.

Reducing the amount of taxable income for the moment also contributes to tax planning. You must have a good idea tax exemptions and handling good planning. You must have sufficient knowledge of the deduction and claim the right way, in circumstances appropriate to request tax return.

It is not easy to take care of all your own. It is necessary to choose reputation Hampton Financial Planning Office to discuss the case. They would be able to meet their planning skills.

Tax planning attorneys are skilled in law. They can help you manage your taxes and make sure they do not encounter problems Legal taxation. They are also able to prepare the documents involved in the case.

Traditions for their tax planning are:

The reduction in gross income – a reduction of adjusted gross income for the period of time is beneficial for the institution. Exemptions and subsidies play an important role in this approach.

increased tax deductions – deductions for Application costs of assistance in this matter. Your lawyer knows how the current tax planning laws could improve the usability of this particular method.

The use of tax credits – credits on labor income, or adoption of children or systems retirement savings could be used for effective solutions.

It is essential that your selection is based on planning lawyer tax for certain key factors. adequate knowledge is a necessity in such cases. Select individual lawyers or law firms that worked in this area for a long time. Lawyers choose to specialize in law, a real estate lawyer will not be suitable for work, you need a which includes taxes and fiscal management.

About the Author

Daniel Williams is an expert on tax laws and tax planning and management. He is known for his writings on topics like Hampton Tax Planning Law Firm.

U.S. Adoption Tax Credit Questions?

My husband adopted my biological child this year and do not include the adoption a new law just passed a tax credit. Are we entitled to a tax credit for next year? I tried looking and there are no clear answers to many States do not take into account a step-parent adoption, and certain federal laws. Any advice would be great. Thank you. We spend over $ 4,000 in expenses. My question is this is still reflected in the presentation of my taxes? I do not know how this will affect my taxes. I know I was not raised in any of the laws and regulations. We also buying a house and try to understand everything. I ask for advice.

I do not understand how it works. Credit is for expenses expenditures incurred through the adoption process. If adopted her son would not cheap. See IRS Form 8839. Yes if the expenditure is eligible. It seems a bit strange it was that expensive given that it has adopted her son. See form for a list of what is covered.

Foreclosure impact on Pets

2005 adoption credit tax

Value Added Tax in India (VAT)

EU added tax in India (VAT)

Value Added Tax (VAT) is a tax multimode card sales credit for taxes paid on business purchases. As the economy grew, the complexity of the tax structure companies has led to their own risk. This justifies a revision of the current tax legislation. To do this, the government introduced a single rate of tax Special (CENVAT) as an important step and bought a basic rationalization in the structure of taxes and fees.

25 States and Union Territories had introduced VAT to replace sales tax on December 31, 2005. Andaman and Nicobar and Lakshadweep have no sales tax. All five BJP ruled states of Chhattisgarh, Jharkhand, Madhya Pradesh, Rajasthan and Gujarat have introduced VAT to replace sales tax on 1 April 2006. Tamil Nadu has adopted the VAT in January 1st 2007. Uttar Pradesh and the Union territory of Pondicherry have not yet accepted the VAT. Haryana was the first state to introduce VAT in 2003.

Features VAT:

1. timetable for the harmonization of VAT rates for all states. This would make the tax system simple and consistent and avoid tax competition between states unhealthy.
2. The provisions of the tax credit would prevent the entry fee cascading effect.
3. The provisions of the self-assessment by dealers to reduce bullying of small businesses, with nearly Rs 5 lakh so that would be exempted from VAT.
4. Zero – evaluation of exports would increase competitiveness of Indian exports.

Calculation of VAT

VAT can be calculated the adoption of three alternative methods. They are:

1. addition method of calculating the value added that can be done by adding of all elements of value added (eg, profits, rents and wages)
2. Subtraction Method – This method allows Estimating the value added by taking the difference between the value of inputs and outputs.
3. Taxes – Credit method – in this method, input taxes are deducted from the sales tax to reach the VAT payable by the concessionaire. In practice, most countries use this method.

exit and entry taxes

1. • Input tax is the tax paid on purchases.
   • The Departure tax is the tax collected.

VAT rates

In terms of VAT rates following proposed

0% on natural resources and raw products produced in the unorganized sector of the United ike social, educational books pencil etc.

• 1% minimum rate of gold shop silver, precious and semiprecious stones.
• 4% of commodity inputs needed industrial and agricultural products such as bidi leaves, fibers, seeds, these products (leather iron and steel, and fur, etc.) medical and pharmaceutical products, textiles and sugar, the capital goods.
• 12.5% RNR (revenue neutral rate) in other assets
• Fuels turbines and petroleum products is out of VAT. Alcoholic beverages and cigarettes are taxed at a higher rate.

Conclusion

Sales tax / VAT is essentially a state matter, the central government plays a facilitating role for the successful implementation of these measures meaningful reform. One concern expressed by States in adopting VAT relates to the potential loss of income the early years. The central government agreed to compensate the loss estimated on the basis of an agreed formula. Due to the introduction of VAT, at 100 percent of the loss of the first year 2005-06, 75 per cent of the loss of the second year in 2006-2007 and 50 per cent of the loss of third year from 2007 to 1908 the introduction of VAT. It also reduces the losses in the coming years both creatures of the VAT a success.

About the Author

A.Kayalvizhi,M.com.,M.phil.,

Adoption tax issue.?

We adopted our daughter from China. We started the process in 2005, when our study home 12/05/2005 Because the anniversary is very long waiting game that did not travel until February of this year 2008. The adoption by China is worried that ended in China, our daughter became a citizen of the United States back when it made landfall in the states. Both my husband and me have traveled to China for adoption was not complete. Our state, VA requires a follow-up period of 1 year to "re-adoption" to receive a certificate of born VA. Our agency and the need to update a year, this will be the end of February 2009. Does anyone know about the government's tax credit Federal adoption? I heard that it's about $ 10,500 more or less. Can we claim the credit on our taxes this year 2008, or we will have to wait another year to claim this on our 2009.

In Go you must first complete a new adoption. (On the Go, a new adoption what is that "fills" the adoption.) So, earlier than expected able to complete the adoption of new, is the best time during the years that we can make and receive the tax credit. Write me in private if you want to know how I did mine. PS The son of the new birth certificate does not change my place of birth.

House Session 2010-04-20 (19:31:14-20:33:47)