Employee Business Expense

Army Reservist - Transportation

Asked Wednesday, November 22, 2000 by an anonymous user

CPA Answer:

Generally, transportation from your house to the Army reserves meeting that is not overnight is not deductible.
If you travel overnight you may claim the deduction. Transportation from your regular work location to a meeting on a regular workday is deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
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Employee Business Expense

Army Reservist - Uniform Maintenance

Asked Wednesday, November 22, 2000 by an anonymous user

CPA Answer:

Generally, the costs to launder your uniform are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
This is true if you are prohibited from wearing the uniform when off duty.
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Divorce & Marriage Issues

Is there any tax paid on the transfer of the house to my wife?

Asked Wednesday, November 22, 2000 by an anonymous user

CPA Answer:

There is no tax consequence on the transfer of any assets to a spouse related to a divorce, including real estate.
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Capital Gains & Losses

What is the tax rate for stocks that are sold ?

Asked Wednesday, November 22, 2000 by an anonymous user

CPA Answer:

Stocks when sold result in capital losses or capital gains. Short term capital gains are taxed at the same rate as ordinary income. Long term gains, that is stocks which are held for at least one year, are taxed at a maximum federal bracket of 15%. Some lower income individuals will not pay on the long term gains. Speak to a CPA in your area to find out how this applies to you.
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Interest - Itemized Deduction

What are the IRS Interest Rates for Corporations ?

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

The IRS has announced that interest rates will not change for the first quarter of 2012, which begins on January 1, 2012 and goes through March 31, 2012. Interest Rates for Q1 2012
IRS interest rates will continue to be charged as follows:
•3% for overpayments (2% for corporations)
•3% for underpayments
•5% for large corporate underpayments
•0.5% for the portion of a corporate overpayment in excess of $10k.
Additionally, the 3% IRS underpayment interest rate applies to estimated tax underpayments for the first quarter of 2012 and will continue through April 15, 2012. The federal short-term rate will also remain the same throughout this period of time.
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Interest - Itemized Deduction

Interest Rates - IRS

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

Interest Rates for Q1, Q2 and Q3 for 2013 will continue to be charged as follows:
3% for overpayments (2% for corporations)
3% for underpayments
5% for large corporate underpayments
0.5% for the portion of a corporate overpayment in excess of $10k.
Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.
The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point. Further, the federal short-term rate that applies during the third month following the taxable year also applies when determining estimated tax underpayments during the first 15 days of the fourth month following the taxable year
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Divorce & Marriage Issues

Separation of debts - what type of paperwork is needed?

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

An agreement between yourself and your husband to separate debts is not binding on creditors unless the creditors also agree to it. If you are going through a divorce your debts will be dealt with in your Marital Settlement Agreement and or judgment. This is not binding on creditors.
Creditors can look for payment to either debtor on a joint debt. If the debt is in the name of only one spouse, state law will govern whether the creditor can sue the other spouse for payment.
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Divorce & Marriage Issues

When can a child decide which parent he or she will live with and whether they will visit the other parent ?

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

Children have the legal right to make their own choices at age 18.
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Divorce & Marriage Issues

If I pay child support , will I be entitled to claim the child as a dependent on my tax return ?

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

If the noncustodial is paying more than 50% of the child's support, there is no court order regarding the dependency exemption. The noncustodial parent gets the exemption if the parents were never married based on the dependency support test. You will probably need to fill out a multiple support form from the IRS to determine which parent actually pays more than 50%. If the parents are divorced or separated the dependency custody test applies. The parent who has custody more than 50 percent of the time is entitled to claim the exemption. The noncustodial spouse who claims the exemption will have to get Form 8332 (release of exemption) signed by the custodial spouse.
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Divorce & Marriage Issues

Sole custody of children after divorce - custody after death

Asked Tuesday, November 21, 2000 by an anonymous user

CPA Answer:

Divorced parents are entitled to custody of their minor children after death of a parent who had sole custody unless a court order provides otherwise.
In general, It must be proven that it is specific detriment to the child in order to remove a child from the custody of a surviving parent and place the child in the custody of a non-parent.
The court makes decisions based on the best interests of the child.
Because parents have superior rights to custody over all other non-parents, a different standard is used when making custody decisions between a parent and a non-parent.
If a court awarded sole custody to one parent, this is not proving that it would be detrimental to the child for the other parent to have custody. Sometimes a court must choose between 2 good parents.
A parent with sole custody does not have the right to give or "will" this custody to someone else. Any parent can nominate a guardian for their child in their will. If the other parent is unable or unwilling to take charge of the child after your death, the court must consider your guardianship petition. The court must still consider the child's "best interests" and may grant guardianship to a non-parent.
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