Personal Taxes
The most frequently asked tax questions related to Personal Taxes
How much of my Foreign Earned Income is excludable ?
Asked Monday, December 04, 2000 by an anonymous userCPA Answer:
In the current year, you may exclude up to $92,900 of foreign earned income. The exclusion is an election and claimed on IRS Form 2555. Speak to your local CPA about the taxability and filing requirements with foreign earnings.
What is the adjusted basis of my rental property?
Asked Wednesday, November 29, 2000 by an anonymous userCPA Answer:
The adjusted basis is the amount used to determine your profit or loss on the sale of your rental. It is generally your original cost increased by the non-deductible closing costs at the original closing plus any capital improvements made over the years minus prior years depreciation and other capital write-offs.
Can I use short form 1040A if the only capital gain distributions are from a mutual fund ?
Asked Tuesday, November 28, 2000 by an anonymous userCPA Answer:
If all other criteria are met to file short form 1040A then you can use 1040A if the only capital gains are distributions from a mutual fund.
Is the cost of Land depreciable ?
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
No. Land is not depreciable.
Depreciation - Residence
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
Depreciation may not be claimed on personal use property such as a residence. Depreciation expenses can be claimed on a Rental property or a business vehicle.
Is the net income from my rental property subject to Self-Employment tax ?
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
Generally not. Rental income from real estate is not considered self-employment income subject to self-employment tax. The exception to this is if you are considered a real estate dealer or income from a rental business where substantial services are rendered to the occupant.
Lecture - Self-Employment tax
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
If you only gave one lecture and only plan to give occasional lectures then that income is not subject to self-employment tax. If you actively seek lecture engagements and give them with reasonable regularity then your lecture fees are treated as income subject to self-employment taxes.
Consulting - subject to SE Tax
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
Yes. Income earned as a consultant is subject to self-employment taxes.
Babysitting income - subject to SE tax
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
Generally, most babysitters are not employees of the parents they are providing babysitting services for, unless they are employees of a daycare or childcare center.
Self-employed babysitters file tax returns using the 1040 Schedule C and SE to report their earnings.
Depending upon the babysitter's tax liabilities, the babysitter may be required to remit quarterly estimated taxes.
Self-employed babysitters file tax returns using the 1040 Schedule C and SE to report their earnings.
Depending upon the babysitter's tax liabilities, the babysitter may be required to remit quarterly estimated taxes.