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How are liquidating dividends reported and taxed?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
Liquidating distributions, sometimes called liquidating dividends, are distributions you receive during a partial or complete liquidation of a corporation.
These distributions are, at least in part, one form of a return of capital.
They may be paid in one or more installments.
You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9
When a liquidating dividend occurs, it is considered to be a return of capital and not profit.
If the distribution is more than your basis, you would have to report the difference as a capital gain. If the distribution is less than your basis, you may be able to claim a capital loss.
These distributions are, at least in part, one form of a return of capital.
They may be paid in one or more installments.
You will receive Form 1099-DIV from the corporation showing you the amount of the liquidating distribution in box 8 or 9
When a liquidating dividend occurs, it is considered to be a return of capital and not profit.
If the distribution is more than your basis, you would have to report the difference as a capital gain. If the distribution is less than your basis, you may be able to claim a capital loss.
Value of my time donated to a charity
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
You cannot deduct the value of your time or services rendered to your charitable organization.
Blood given at a blood bank
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
You cannot deduct the value of blood given at a blood bank.
Charitable Organizations - Selective Recipient listing
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
A partial list of acknowledged Registered organizations
Churches, temples, synagogues, mosques and other religious organizations.
Public charities such as United Way, Salvation Army, Goodwill Industries, Red Cross, Boys and Girl scouts, Boys and Girl Clubs of America, CARE etc.
War veterans' groups
Nonprofit volunteer fire companies, hospitals and schools.
Public Parks and recreation facilities.
Churches, temples, synagogues, mosques and other religious organizations.
Public charities such as United Way, Salvation Army, Goodwill Industries, Red Cross, Boys and Girl scouts, Boys and Girl Clubs of America, CARE etc.
War veterans' groups
Nonprofit volunteer fire companies, hospitals and schools.
Public Parks and recreation facilities.
What are the IRS Publications detailed Charitable Contribution?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
IRS Publication 526 and 561.
How much of a deduction can I take for my donated goods?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
There are valuation guides available to the public to calculate an amount for noncash contributions.
You can go to the Salvation Army website to view their Donated Goods Valuation Guide at www.salvationarmyusa.org
You can go to the Salvation Army website to view their Donated Goods Valuation Guide at www.salvationarmyusa.org
How much am I allowed to claim as a charitible cash deduction?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
The answer is, how much did you contribute and how much can you substantiate.
For contributions of $250 or less, a cancelled check or credit card statement is sufficient.
A written acknowledgement from the charity documenting the contribution's amount and date is also acceptable
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
For contributions of $250 or less, a cancelled check or credit card statement is sufficient.
A written acknowledgement from the charity documenting the contribution's amount and date is also acceptable
For contributions of $250 or more, you must have written substantiation from the organization. A cancelled check is not sufficient.
If I get work done on my house, can I use it as a tax deduction?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
Improvements to your Residence are not deductible.
The costs are added to your initial cost basis to calculate your increased adjusted cost basis.
Your increased cost basis will be used in the year of sale of your residence to determine the gain on sale.
Improvements to your Rental property are deductible as a repair or a depreciable capital improvement.
The costs are added to your initial cost basis to calculate your increased adjusted cost basis.
Your increased cost basis will be used in the year of sale of your residence to determine the gain on sale.
Improvements to your Rental property are deductible as a repair or a depreciable capital improvement.
Can I deduct the cost of mustache wax and grooming supplies per IRS Section 212 expense?
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
Probably not, unless these expenses are business related for an occupation such as an Clown or Actor.
And not per Section 212.
IRS Section 212 expense Internal Revenue Code provides a deduction, for U.S. federal income tax purposes, for expenses incurred in investment activities.
And not per Section 212.
IRS Section 212 expense Internal Revenue Code provides a deduction, for U.S. federal income tax purposes, for expenses incurred in investment activities.
Hearing Aids
Asked Thursday, February 23, 2012 by an anonymous userCPA Answer:
You can include in medical itemized deductions subject to the 7.5% limitation the cost of a hearing aid plus its batteries, repairs and maintenance needed to operate it.