| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 660.1 | capital gains with partial excercise of options | BROKE::SHAH | Amitabh "Amend Constitution: ban DECAF" | Tue Jan 18 1994 15:16 | 10 |
| How do I compute my capital gains in this case?
Bought 10 calls for a stock for say X each.
Sold 8 of the 10 calls at various prices, for say Y each on avg. and
excercised remaining 2 calls.
Is my gain 8Y - 10X and the basis for the stock purchase the option
strike price, or is my gain 8Y - 8X and the basis for the stock
purchase is strike price + 2X?
|
| 660.2 | None at banks or Post Offices, either :-( | ELWOOD::KAPLAN | Larry Kaplan, DTN: 237-6872 | Wed Jan 19 1994 12:58 | 4 |
| Am I the only one who hasn't received a fed. tax package yet ? In past
years, I've always gotten it in December.
L.
|
| 660.3 | Did you get it "prepared" last year? | BROKE::SHAH | Amitabh "Amend Constitution: ban DECAF" | Wed Jan 19 1994 14:05 | 4 |
| I got a mail in early December that since I had used a professional
tax person last year, they are not sending me a package, only the
mailing label. This was also true of MA state. This wasn't the case
in the previous years when I have used a professional.
|
| 660.4 | Try the library | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Wed Jan 19 1994 15:38 | 2 |
| I got mine in December. They've had them in my local public library since
then too.
|
| 660.5 | the forms were just late | CADSYS::CADSYS::RICHARDSON | | Thu Jan 20 1994 09:21 | 3 |
| Both forms showed up last Saturday.
/Charlotte
|
| 660.6 | If 1992 prepared by pro, then IRS yes MA no | I18N::GLANTZ | | Thu Jan 20 1994 10:05 | 6 |
| My 1992 return was prepared by a professional. Massachusetts sent me a
card notifying me that they would not send me 1993 forms; the IRS sent
me the forms yesterday.
(Now if only Investor Services would send me a statement of account
covering last month's ESPP!)
|
| 660.7 | Taxpayer statistics | DIODE::CROWELL | Jon Crowell | Mon Jan 31 1994 09:04 | 6 |
|
A few years ago my friend showed me the statistics on how much the
average tax payer gives to charity. It was based on income. Does
anyone have these statistics?
Jon
|
| 660.8 | 1990 DATA | SLOAN::HOM | | Mon Jan 31 1994 11:01 | 23 |
| Old data from Research Institute of America. It's
based on IRS data on total deductions and the number of actual
claims for each type. I have no idea if the IRS used these numbers
for their "screens":
The 1990 averages by adjusted-gross-income group for medical, tax,
charitable-gift and interest deductions follow:
Income Med. Tax Gift Int.
(-000)
$ 25-30 3,306 2,069 1,129 4,662
$ 30-40 3,317 2,477 1,213 5,011
$ 40-50 3,621 3,015 1,315 5,667
$ 50-75 4,002 4,049 1,665 6,595
$ 75-100 6,003 5,888 2,112 8,847
$ 100-200 12,087 9,359 3,442 13,324
$ 200-500 26,295 20,075 7,367 20,831
$ 500-1000 58,596 42,609 16,815 30,315
$ 1,000+ 68,915 140,715 80,144 67,440
|
| 660.9 | Medical Deductions Question. | SWAM2::WANTJE_RA | | Wed Feb 02 1994 18:03 | 6 |
| Is the amount we have deducted for medical insurance from the Digital
payroll count as a medical deduction?
The figures in .-1 seem very high for med and gift.
Ralph
|
| 660.10 | | USCTR1::BJORGENSEN | | Wed Feb 02 1994 21:42 | 3 |
| I think medical insurance expense comes off your gross income - and
is not taxed. Check for sure, but that's what I recall.
|
| 660.11 | | VMSDEV::HAMMOND | Charlie Hammond -- ZKO3-04/S23 -- dtn 381-2684 | Thu Feb 03 1994 10:59 | 7 |
| If my memory is correct, medical/health insurance is a deductible
medical expense, but medical expenses are deductible ONLY to the
extent that they exceed some percent of your income. If you have
reasonably good health insurace you either have a major tragedy or
you're below the limit.
This should be explained in the instructions.
|
| 660.12 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Mon Feb 07 1994 15:32 | 5 |
| If your medical insurance is taken out of pretax dollars, as it is here at DEC,
you can't deduct it as a medical expense. Otherwise you'd effectively be
deducting it twice.
The same is true of medical expenses that are paid out of an HCRA.
|
| 660.13 | 1 exemption = ? dollars | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Mon Feb 14 1994 16:15 | 24 |
|
Does anyone know how much one exemption (a number you select on your
W-4) is equivalent to in terms of deductions?
I'm going to buy a home and will be financing it and therefore will be
paying deductible interest throughout 1994. I would like to increase
the number of exemptions on my W-4 so that I get as little back as
possible when I file my Federal taxes.
I was told at one time that one exemption was equivalent to $2500 in
deductions meaning that if you are going to pay $5000 in deductible
interest this year, you should take 2 exemptions (2 * $2500 = $5000) so
that at the end of the year, you get nothing back (with respect to
deductible interest).
My strategy is that since I will be paying deductible interest, I'd
like to get my refund throught the year instead of at the end of the
year.
Thanks,
Dennis
|
| 660.14 | I wouldn't want to guess the rate for this year. | CADSYS::RITCHIE | Gotta love log homes | Mon Feb 14 1994 16:21 | 5 |
| You'll have to pick up the w-4 form from your PSA (or whatever they are called
these days) anyway to submit the info. The form has all the instructions, and
even a worksheet. If you get the form, you'll have your answer.
Elaine
|
| 660.15 | I'll get the W-4 | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Tue Feb 15 1994 10:51 | 4 |
|
Thank you Elaine.
Dennis
|
| 660.16 | exemption = dependent | KOALA::BOUCHARD | The enemy is wise | Tue Feb 15 1994 12:00 | 4 |
| I believe that one exemption is approximately (exactly?) equal 'one
dependend'. So taking the deduction per dependent (from the 1040)
times your marginal tax rate (28%, 31%, etc.) probably would give a
reasonable estimate.
|
| 660.17 | 2-incomes can change things | NOVA::RUBINO | | Tue Feb 15 1994 14:39 | 8 |
|
Be careful if you are in the "two-jobs/two-income" bracket. You
could get stung, depending on your salaries.
Check the W-4 worksheet.
mike
|
| 660.18 | Property taxes deductible? | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Tue Feb 15 1994 15:28 | 13 |
|
I just got a copy of a W-4. There is a worksheet to perform the
calculation. We are in the two wage couple category. Both hus-
band and wife have jobs. We will determine if filing jointly or
separately is better. If we file separately, I will be taking all
itemized deductions.
BTW, are property taxes deductible?
Thanks,
Dennis
|
| 660.19 | If inaccurate, it's not the IRS's problem | TLE::JBISHOP | | Tue Feb 15 1994 15:45 | 16 |
| Don't trust fully in the worksheet--I know I'd be in _BIG_
trouble if I signed up for the number of exemptions it claims
I could. It's not good at two-income couples who invest.
I'm not talking about the difference between three and two
exemptions, but the difference between two (it says) and
"Zero exemptions and please take a bunch more out each week"
(which is what keeps me from being underwithheld).
Take the conclusion from the worksheet and check it against last
year's return--would enough be withheld? Remember, the Evil Empire
is not responsible for the result of the worksheet--if you get
the wrong number of exemptions, it's not their problem, it's
_your_ problem.
-John Bishop
|
| 660.20 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Tue Feb 15 1994 16:03 | 5 |
| If you make sure that you have enough deducted so that your total deductions
are more than last year's tax liability, you won't have to pay a penalty.
Of course, you may end up getting a free loan from Uncle Sam (meaning you'll
owe him a bunch come next April). Around November, I figured that I'd fall
somewhat below last year's tax liability, so I filed a W4 to fix it.
|
| 660.21 | | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Tue Feb 15 1994 16:18 | 12 |
|
My tax liability this year is $48 so I should have no problem ensuring
that my total deductions exceed 1993's tax liability -- unless you mean
total liability (the amount of Federal tax I paid throughout the year
plus the $48 I now owe which is much bigger).
To ensure that I have enough withheld, I would have to know how much
less is withheld if I take one more personal allowance. This should be
$2500 times the marginal tax rate. If this proves to be correct, then
I can calculate very accurate numbers and determine the number of
personal allowances that way.
|
| 660.22 | Or just get the current tax tables and avoid guesstimating | PTPM06::TALCOTT | | Wed Feb 16 1994 08:43 | 374 |
| Here's some tax tables from '93 (*last year*). My PSA told me they'd appear in
VTX, although I never looked there as what's below was sufficient for me. I
blow off the W-4 calculations, look at previous year's tax status/income,
project for the current year and claim the appropriate number of exemptions
from the table below based on how much I want withheld for the year. I have
income and deductions that varie from year to year, so I may modify the amount
withheld a couple of times over the year. I believe the IRS wants you to
withhold at pretty similar amounts throughout the year - they don't like $0 for
three quarters and "withold every cent I earn" in the final quarter.
For current tables you can hunt through VTX or ask a PSA for a copy.
Trace
From: My PSA back in April '93
Info you requested.
Subj: 1993 Updated Tax Tables - These will be posted on VTX this week
1993 Federal Withholding Tables
FEDERAL WITHHOLDING TABLE
SINGLE Persons-WEEKLY Payroll Period
(For Wages Paid in 1993)
-------------------------------------------------------------------------
And the wages are- | And the number of withholding allowances claimed is-
--------------------------------------------------------------------------
| But less| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10
At least | than |------------------------------------------------------
| | The amount of income tax to be withheld shall be-
--------------------------------------------------------------------------
$0 50 0 0 0 0 0 0 0 0 0 0 0
50 55 1 0 0 0 0 0 0 0 0 0 0
55 60 1 0 0 0 0 0 0 0 0 0 0
60 65 2 0 0 0 0 0 0 0 0 0 0
65 70 3 0 0 0 0 0 0 0 0 0 0
70 75 4 0 0 0 0 0 0 0 0 0 0
75 80 4 0 0 0 0 0 0 0 0 0 0
80 85 5 0 0 0 0 0 0 0 0 0 0
85 90 6 0 0 0 0 0 0 0 0 0 0
90 95 7 0 0 0 0 0 0 0 0 0 0
95 100 7 1 0 0 0 0 0 0 0 0 0
100 105 8 1 0 0 0 0 0 0 0 0 0
105 110 9 2 0 0 0 0 0 0 0 0 0
110 115 10 3 0 0 0 0 0 0 0 0 0
115 120 10 4 0 0 0 0 0 0 0 0 0
120 125 11 4 0 0 0 0 0 0 0 0 0
125 130 12 5 0 0 0 0 0 0 0 0 0
130 135 13 6 0 0 0 0 0 0 0 0 0
135 140 13 6 0 0 0 0 0 0 0 0 0
140 145 14 7 1 0 0 0 0 0 0 0 0
145 150 15 8 1 0 0 0 0 0 0 0 0
150 155 16 9 2 0 0 0 0 0 0 0 0
155 160 16 10 3 0 0 0 0 0 0 0 0
160 165 17 10 4 0 0 0 0 0 0 0 0
165 170 18 11 4 0 0 0 0 0 0 0 0
170 175 19 12 5 0 0 0 0 0 0 0 0
175 180 19 13 6 0 0 0 0 0 0 0 0
180 185 20 13 7 0 0 0 0 0 0 0 0
185 190 21 14 7 1 0 0 0 0 0 0 0
190 195 22 15 8 1 0 0 0 0 0 0 0
195 200 22 16 9 2 0 0 0 0 0 0 0
200 210 23 17 10 3 0 0 0 0 0 0 0
210 220 25 18 11 5 0 0 0 0 0 0 0
220 230 26 20 13 6 0 0 0 0 0 0 0
230 240 28 21 14 8 1 0 0 0 0 0 0
240 250 29 23 16 9 2 0 0 0 0 0 0
250 260 31 24 17 11 4 0 0 0 0 0 0
260 270 32 26 19 12 5 0 0 0 0 0 0
270 280 34 27 20 14 7 0 0 0 0 0 0
280 290 35 29 22 15 8 2 0 0 0 0 0
290 300 37 30 23 17 10 3 0 0 0 0 0
300 310 38 32 25 18 11 5 0 0 0 0 0
310 320 40 33 26 20 13 6 0 0 0 0 0
320 330 41 35 28 21 14 8 2 0 0 0 0
330 340 43 36 29 23 16 9 3 0 0 0 0
340 350 44 38 31 24 17 11 4 0 0 0 0
350 360 46 39 32 26 19 12 5 0 0 0 0
360 370 47 41 34 27 20 14 7 0 0 0 0
370 380 49 42 35 29 22 15 8 2 0 0 0
380 390 50 44 37 30 23 17 10 3 0 0 0
390 400 52 45 38 32 25 18 11 5 0 0 0
400 410 53 47 40 33 26 20 13 6 0 0 0
410 420 55 48 41 35 28 21 14 8 1 0 0
420 430 56 50 43 36 29 23 16 9 2 0 0
430 440 58 51 44 38 31 24 17 11 4 0 0
440 450 59 53 46 39 32 26 19 12 5 0 0
450 460 61 54 47 41 34 27 20 14 7 0 0
460 470 64 56 49 42 35 29 22 15 8 1 0
470 480 67 57 50 44 37 30 23 17 10 3 0
480 490 70 59 52 45 38 32 25 18 11 4 0
490 500 73 60 53 47 40 33 26 20 13 6 0
500 510 75 63 55 48 41 35 28 21 14 7 1
510 520 78 66 56 50 43 36 29 23 16 9 2
520 530 81 68 58 52 44 38 31 24 17 10 5
530 540 84 71 59 53 46 39 32 26 19 12 7
540 550 87 74 61 54 47 41 34 27 20 13 8
550 560 89 77 64 56 49 42 35 29 22 15 10
560 570 92 80 67 57 50 44 37 30 23 16 11
570 580 95 82 70 59 52 45 38 32 25 18 13
580 590 98 85 73 60 53 47 40 33 26 19 14
590 600 101 88 75 63 55 48 41 35 28 21 14
600 610 103 91 78 66 56 50 43 36 29 22 16
610 620 106 94 81 68 58 51 44 38 31 24 17
620 630 109 96 84 71 59 53 46 39 32 25 19
630 640 112 99 87 74 61 54 47 41 34 28 20
640 650 115 102 89 77 64 56 49 42 35 28 22
650 660 117 105 92 80 67 57 50 44 37 30 23
660 670 120 108 95 82 70 59 52 45 38 31 25
670 680 123 110 98 85 72 60 53 47 40 33 26
680 690 126 113 101 88 75 63 55 48 41 34 28
690 700 129 116 103 91 78 65 56 50 43 36 29
700 710 131 119 106 94 81 68 58 51 44 37 31
710 720 134 122 109 96 84 71 59 53 46 39 32
720 730 137 124 112 99 86 74 61 54 47 40 34
730 740 140 127 115 102 89 77 64 56 49 42 35
740 750 143 130 117 105 92 79 67 57 50 43 37
750 760 145 133 120 108 95 82 70 59 52 45 38
760 770 148 136 123 110 98 85 72 60 53 46 40
770 780 151 138 126 113 100 88 75 63 55 48 41
780 790 154 141 129 116 103 91 78 65 56 49 43
790 800 157 144 131 119 106 93 81 68 58 51 44
800 810 159 147 134 122 109 96 84 71 59 52 46
810 820 162 150 137 124 112 99 86 74 61 54 47
820 830 165 152 140 127 114 102 89 77 64 55 59
830 840 168 155 143 130 117 105 92 79 67 57 50
840 850 171 158 145 133 120 107 95 82 69 58 52
850 860 173 161 148 136 123 110 98 85 72 60 53
860 870 176 164 151 138 126 113 100 88 75 62 55
870 880 179 166 154 141 128 116 103 91 78 65 56
880 890 182 169 157 144 131 119 106 93 81 68 58
890 900 185 172 159 147 134 121 109 96 83 71 59
900 910 187 175 162 150 137 124 112 99 86 74 61
910 920 190 178 165 152 140 127 114 102 89 76 64
920 930 193 180 168 155 142 130 117 105 92 79 77
930 940 196 183 171 158 145 133 120 107 95 82 69
940 950 199 186 173 161 148 135 123 110 97 85 72
950 960 202 189 176 164 151 138 126 113 100 88 75
960 970 205 192 179 166 154 141 128 116 103 90 78
970 980 208 194 182 169 156 144 131 119 106 93 81
980 990 211 297 185 172 159 147 134 121 109 96 83
990 1,000 214 200 187 175 162 149 137 124 112 99 86
1,000 1,010 217 203 190 178 165 152 140 127 114 102 89
1,010 1,020 220 206 193 180 168 155 142 130 117 104 92
1,020 1,030 224 210 196 183 170 158 145 133 120 107 95
1,030 1,040 227 213 199 186 173 161 148 135 123 110 97
1,040 1,050 230 216 202 189 176 163 151 138 125 113 100
1,050 1,060 233 219 205 192 179 166 154 141 128 116 103
1,060 1,070 236 222 208 194 182 169 156 144 131 118 106
1,070 1,080 239 225 211 297 184 172 159 147 134 121 109
1,080 1,090 242 228 214 200 187 175 162 149 137 124 111
1,090 1,100 245 231 217 203 190 177 165 152 139 127 114
1,100 1,110 248 234 220 206 193 180 168 155 142 130 117
1,110 1,120 251 237 223 209 196 183 170 158 145 132 120
1,120 1,130 255 241 227 213 199 186 173 161 148 135 123
1,130 1,140 258 244 230 216 202 189 176 163 151 138 125
1,140 1,150 261 247 233 219 205 191 179 166 153 141 128
1,150 1,160 264 250 236 222 208 194 182 169 156 144 131
1,160 1,170 267 253 239 225 211 197 184 172 159 146 134
1,170 1,180 270 256 242 228 214 200 187 175 162 149 137
1,180 1,190 273 259 245 231 217 203 190 177 165 152 139
1,190 1,200 276 262 248 234 220 206 193 180 167 155 142
1,200 1,210 279 265 251 237 223 209 296 183 170 158 145
1,210 1,220 282 268 254 240 226 212 298 186 173 163 148
1,220 1,230 286 272 258 244 230 216 202 189 176 166 151
1,230 1,240 289 275 261 247 233 219 205 191 179 169 156
Over 1,240, contact U.S. Payroll at
Vaxmail - Canon::pay_question or
All-in-1 - @canon@pay_question@pko
1993 Federal Withholding Tables
FEDERAL WITHHOLDING TABLE
MARRIED Persons-WEEKLY Payroll Period
(For Wages Paid in 1993)
--------------------------------------------------------------------------
And the wages are- | And the number of withholding allowances claimed is-
--------------------------------------------------------------------------
| But less| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10
At least | than |------------------------------------------------------
| | The amount of income tax to be withheld shall be-
--------------------------------------------------------------------------
$0 125 0 0 0 0 0 0 0 0 0 0 0
125 130 1 0 0 0 0 0 0 0 0 0 0
130 135 2 0 0 0 0 0 0 0 0 0 0
135 140 3 0 0 0 0 0 0 0 0 0 0
140 145 3 0 0 0 0 0 0 0 0 0 0
145 150 4 0 0 0 0 0 0 0 0 0 0
150 155 5 0 0 0 0 0 0 0 0 0 0
155 160 6 0 0 0 0 0 0 0 0 0 0
160 165 6 0 0 0 0 0 0 0 0 0 0
165 170 7 0 0 0 0 0 0 0 0 0 0
170 175 8 1 0 0 0 0 0 0 0 0 0
175 180 9 2 0 0 0 0 0 0 0 0 0
180 185 9 3 0 0 0 0 0 0 0 0 0
185 190 10 3 0 0 0 0 0 0 0 0 0
190 195 11 4 0 0 0 0 0 0 0 0 0
195 200 12 5 0 0 0 0 0 0 0 0 0
200 210 13 6 0 0 0 0 0 0 0 0 0
210 220 14 8 1 0 0 0 0 0 0 0 0
220 230 16 9 2 0 0 0 0 0 0 0 0
230 240 17 11 4 0 0 0 0 0 0 0 0
240 250 19 12 5 0 0 0 0 0 0 0 0
250 260 20 14 7 0 0 0 0 0 0 0 0
260 270 22 15 8 2 0 0 0 0 0 0 0
270 280 23 17 10 3 0 0 0 0 0 0 0
280 290 25 18 11 5 0 0 0 0 0 0 0
290 300 26 20 13 6 0 0 0 0 0 0 0
300 310 28 21 14 8 1 0 0 0 0 0 0
310 320 29 23 16 9 2 0 0 0 0 0 0
320 330 31 24 17 11 4 0 0 0 0 0 0
330 340 32 26 19 12 5 0 0 0 0 0 0
340 350 34 27 20 14 7 0 0 0 0 0 0
350 360 35 29 22 15 8 1 0 0 0 0 0
360 370 37 30 23 17 10 3 0 0 0 0 0
370 380 38 32 25 18 11 4 0 0 0 0 0
380 390 40 33 26 20 13 6 0 0 0 0 0
390 400 41 35 28 21 14 7 1 0 0 0 0
400 410 43 36 29 23 16 9 2 0 0 0 0
410 420 44 38 31 24 17 10 4 0 0 0 0
420 430 46 39 32 26 19 12 5 0 0 0 0
430 440 47 41 34 27 20 13 7 0 0 0 0
440 450 49 42 35 29 22 15 8 1 0 0 0
450 460 50 44 37 30 23 16 10 3 0 0 0
460 470 52 45 38 32 25 18 11 4 0 0 0
470 480 53 47 40 33 26 19 13 6 0 0 0
480 490 55 48 41 35 28 21 14 7 1 0 0
490 500 56 50 43 36 29 22 16 9 2 0 0
500 510 58 51 44 38 31 24 17 10 4 0 0
510 520 59 53 46 39 32 25 19 12 5 0 0
520 530 61 54 47 41 34 27 20 13 7 0 0
530 540 62 56 49 42 35 28 22 15 8 1 0
540 550 64 57 50 44 37 30 23 16 10 3 0
550 560 65 59 52 45 38 31 25 18 11 4 0
560 570 67 60 53 47 40 33 26 19 13 6 0
570 580 68 62 55 48 41 34 28 21 14 7 1
580 590 70 63 56 50 43 36 29 22 16 9 2
590 600 71 65 58 51 44 37 31 24 17 10 4
600 610 73 66 59 53 46 39 32 25 19 12 5
610 620 74 68 61 54 47 40 34 27 20 13 7
620 630 76 69 62 56 49 42 35 28 22 15 8
630 640 77 71 64 57 50 43 37 30 23 16 10
640 650 79 72 65 59 52 45 38 31 25 18 11
650 660 80 74 67 60 53 46 40 33 26 19 13
660 670 82 75 68 62 55 48 41 34 28 21 14
670 680 83 77 70 63 56 49 43 36 29 22 16
680 690 85 78 71 65 58 51 44 37 31 24 17
690 700 86 80 73 66 59 52 46 39 32 25 19
700 710 88 81 74 68 61 54 47 40 34 27 20
710 720 89 83 76 69 62 55 49 42 35 28 22
720 730 91 84 77 71 64 57 50 43 37 30 23
730 740 92 86 79 72 65 58 52 45 38 31 25
740 750 94 87 80 74 67 60 53 46 40 33 26
750 760 95 89 82 75 68 61 55 48 41 34 28
760 770 97 90 83 77 70 63 56 49 43 36 29
770 780 98 92 85 78 71 64 58 51 44 37 31
780 790 100 93 86 80 73 66 59 52 46 39 32
790 800 103 95 88 81 74 67 61 54 47 40 34
800 810 106 96 89 83 76 69 62 55 49 42 35
810 820 108 98 91 84 77 70 64 57 50 43 37
820 830 111 99 92 86 79 72 65 58 52 45 38
830 840 114 101 94 87 80 73 67 60 53 46 40
840 850 117 104 95 89 82 75 68 61 55 48 41
850 860 120 107 97 90 83 76 70 63 56 49 43
860 870 122 110 98 92 85 78 71 64 58 51 44
870 880 125 113 100 93 86 79 73 66 59 52 46
880 890 128 115 103 95 88 81 74 67 61 54 47
890 900 131 118 106 96 89 82 76 69 62 55 49
900 910 134 121 108 98 91 84 77 70 64 57 50
910 920 136 124 111 99 92 85 79 72 65 58 52
920 930 139 127 114 101 94 87 80 73 67 60 53
930 940 142 129 117 104 95 88 82 75 68 61 55
940 950 145 132 120 107 97 90 83 76 70 63 56
950 960 148 135 122 110 98 91 85 78 71 64 58
960 970 150 138 125 112 100 93 86 79 73 66 59
970 980 153 141 128 115 103 94 88 81 74 67 61
980 990 156 143 131 118 105 96 89 82 76 69 62
990 1,000 159 146 134 121 108 97 91 84 77 70 64
1,000 1,010 162 149 136 124 111 99 92 85 79 72 65
1,010 1,020 164 152 139 126 114 101 94 87 80 73 67
1,020 1,030 167 155 142 129 117 104 95 88 82 75 68
1,030 1,040 170 157 145 132 119 107 97 90 83 76 70
1,040 1,050 173 160 148 137 122 110 98 91 85 78 71
1,050 1,060 176 163 150 138 125 112 100 93 86 79 73
1,060 1,070 178 166 153 140 128 115 103 94 88 81 74
1,070 1,080 181 169 156 143 131 118 105 96 89 82 76
1,080 1,090 184 171 159 146 133 121 108 97 91 84 77
1,090 1,100 187 174 162 149 136 124 111 99 92 85 79
1,100 1,110 190 177 164 152 139 126 114 101 94 87 80
1,110 1,120 192 180 167 154 142 129 117 104 95 88 82
1,120 1,130 195 183 170 157 145 132 119 107 97 90 83
1,130 1,140 198 185 173 160 147 135 122 109 100 91 85
1,140 1,150 201 188 176 163 150 138 125 112 103 93 86
1,150 1,160 204 191 178 166 153 140 128 115 105 94 88
1,160 1,170 206 194 181 168 156 143 131 118 108 96 89
1,170 1,180 209 197 184 171 159 146 133 121 111 97 91
1,180 1,190 212 199 187 174 161 149 136 123 114 99 92
1,190 1,200 215 202 190 177 164 152 139 126 114 101 94
1,200 1,210 218 205 192 180 167 154 142 129 116 104 95
1,210 1,220 220 208 195 182 170 157 145 132 119 107 97
1,220 1,230 223 211 198 185 173 160 147 135 122 109 98
1,230 1,240 226 213 201 188 175 163 150 137 125 112 100
1,240 1,250 229 216 204 191 178 166 153 140 128 115 102
1,250 1,260 232 219 206 194 181 168 156 143 130 118 105
1,260 1,270 234 222 209 196 184 171 159 146 133 121 108
1,270 1,280 237 225 212 199 187 174 161 149 136 123 111
1,280 1,290 240 227 215 202 189 177 164 151 139 126 114
1,290 1,300 243 230 218 205 192 180 167 154 142 129 116
1,300 1,310 246 233 220 208 195 182 170 157 144 132 119
1,310 1,320 248 236 223 210 198 185 173 160 147 135 122
1,320 1,330 251 239 226 213 201 188 175 163 150 137 125
1,330 1,340 254 241 229 216 203 191 178 165 153 140 128
1,340 1,350 257 244 232 219 206 194 181 168 156 143 130
1,350 1,360 260 247 234 222 209 196 184 171 158 146 133
1,360 1,370 262 250 237 224 212 199 187 174 161 149 136
1,370 1,380 265 253 240 227 215 202 189 177 164 151 139
1,380 1,390 268 255 243 230 217 205 192 179 167 154 142
Over 1,390, contact U.S. Payroll at
Vaxmail - Canon::pay_question
All-in-1 - @Canon@pay_questions@pko
|
| 660.23 | | ZENDIA::FERGUSON | Red X | Wed Feb 16 1994 09:19 | 5 |
| Another alternative is to just have a defined extra dollar-amount taken out
of your check for Fed and State. This is what I do to avoid owing lots to
the Gov't due to excessive cap.gains, dividends, etc. $10 each week for
the feds, $2 each week to MA.
|
| 660.24 | Two questions | CADSYS::CADSYS::BENOIT | | Wed Feb 16 1994 09:20 | 8 |
| 1: Is anyone required to pay estimated taxes?....or is it just to avoid the
penalty?
2: With no load mutual funds there is an internal management fee associated
with the fund. Why can't (or can this) be deducted as an expense of collecting
managing stocks etc....just like loads or commissons?
Michael
|
| 660.25 | | VMSDEV::HAMMOND | Charlie Hammond -- ZKO3-04/S23 -- dtn 381-2684 | Wed Feb 16 1994 10:08 | 26 |
| re: 660.18
1) Property Taxes for your primary residence are deductible.
I'm don't know about a secondary/vacation property.
2) Look out here...
> ... We are in the two wage couple category. ...
> ... If we file separately, I will be taking all
> itemized deductions.
Sorry, but if you are married and file separately either you both must
itemize or you both must use the standard deduction. You can't use
both standard deductions AND itemized deductions any more than you can
if you file jointly.
However, if you income puts you into a higher marginal rate than you
spouse, then your claiming all the itemized deductions may lower you
tax bill more than it raises your spouse's, so it can still be a
good idea.
Also, if one spouse claims the other for an exemption then the other
spouse cannot claim him/herself.
*** AS ALWAYS, IF YOU HAVE A COMPLEX PROBLEM CONSULT A TAX ATTORNEY OR
ACCOUNTANT RATHER THAN TRUSTING INFORMATION FOUND HERE!
|
| 660.26 | Net and Gross; Withholding | TLE::JBISHOP | | Wed Feb 16 1994 11:05 | 55 |
| re .24
Estimated Taxes
===============
Estimated taxes are required by the Feds (as Tracey Talcott suggested,
there are limits you must meet on a quarterly basis), but that's taken
care of for most people by withholding. At least some states (e.g. the
ones I've paid taxes to) have a similiar requirement. In NH, the
"interest and dividends" tax has required payments of estimated taxes
under certain conditions (along the lines of "you paid more than $250
for this tax in the previous year", I think).
Since most people are salary-only the normal withholding is sufficient;
if you have significant amounts (iver a few hundred dollars) of captial
gains, interest or dividends and are not subject to the special pre-emptive
withholding, you'll have to make estimated payments to meet the Federal
(and State, if applicable) requirements. The easiest way to do this is
to up your salary withholding amounts.
One other issue is predicability--the performance of your investments
is usually harder to predict than your salary. Since a run-up in
December could potentially give you big gains for the whole year, it's
important for those who have the possibility of substantial investment
income to withhold enough to cover the possibility of a wonderful up
year (balancing the payment of penalties for under-withholding in up
years against the foregone income on down ones).
Assume, for example, that you have one chance in ten of making $10K
from your investements, one in ten of losing the same amount, and
eight in ten of making $1K. Assume your marginal tax rate is 30%.
Then your potential liability ranges from -3K to +3K. If the
total penalty (including interest and the risk of closer supervision
or legal action in the future) is 33%, then if you plan for the
"normal" $1K return, one year in ten you'll pay an extra penalty of
$1K. If on the other hand, you withhold for the extraordinary year
every time, eight years in ten you'll forego interest on the amounts
withheld over the year, amounting to about $100. On the bad years
you'll forego even more.
Somewhere in the numbers (and you'd have to use real-er ones!) you
could calculate your optimal withholding amount to minimize the
expected loss.
Deducting Management Fees
=========================
If you got the gross returns from the mutual fund and then paid a
management fee, there'd be an argument for deducting the fee. Since
the offical returns to you are net (calculated after the management
fee is taken out), the fee is never income to you--in a sense the
fee has already been deducted!
-John Bishop
|
| 660.27 | Taxes & Marriage | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Wed Feb 16 1994 11:27 | 22 |
|
Thanks Charlie. You're right -- unfortunately. I checked this by
looking at the 1993 Form 1040 (lines 33 & 34).
This means that if we remained single and bought the home, my
fiance' would be able to use the $3700 standard decuction and I
would be able to take all itemized deductions. But because we
will be married, if I take all itemized deductions, she cannot
take the $3700 standard decuction (which for the 28% bracket is
about $1036 in extra taxes).
Therefore, if we don't make that $1036 back though more deductions
as a result of being able to itemize, we end up paying more taxes
just because we got married!
Given that we will be married, it looks like the only advantage to
filing separately is when one income goes into a higher bracket and
the itemized deductions reduce the tax bill, etc. as Charlie mentions
in .-1.
Dennis
|
| 660.28 | | CADSYS::CADSYS::BENOIT | | Wed Feb 16 1994 11:28 | 10 |
| John,
So if I my wife and I both claim 0 deductions, and we have to pay a penalty
for 1993 taxes due to under-withholding, we automatically have to pay estimated
taxes for 1994? We can pay these taxes in 1994 by having "extra money" taken
out of our checks, or file quaterly estimated payments. As long as we cover
110% or 100% (depending on the AGI) of 1993 tax libility, we will not be subject
to penalty when we file in 1995 for 1994 tax year.
/mtb
|
| 660.29 | | ZENDIA::FERGUSON | Red X | Wed Feb 16 1994 13:47 | 1 |
| Can one deduct sales tax paid on a car?
|
| 660.30 | | CADSYS::CADSYS::BENOIT | | Wed Feb 16 1994 14:01 | 3 |
| no, sales tax on cars in not...MASS excise tax is however deductible.
/mtb
|
| 660.31 | Solution is to get rid of progressivity | TLE::JBISHOP | | Wed Feb 16 1994 16:51 | 27 |
| re .28
I don't know how the penalties work, I suspect you have the right
sequence of events if not the legal requirements.
The point that I was trying to make is that _everyone_ must pay
estimates, but for most people it's done semi-automatically by
withholding.
re .27, marriage penalty
When I found out that we would be paying enough extra each year
to buy a used car just to be married, I suggested to my not-yet-wife
that we could live together and have kids without that little ceremony
and legal status change, and save up a nice amount. She said "No".
I then suggested she pay the penalty, since I was willing to avoid
it, so we were doing this for her, she should pay. She said "No".
But you might have more success arguing than I did!
It's a consequence of our tax system--it recognizes marriage (incomes
are pooled for tax purposes) and is progressive (2X pays more taxes
than two instances of 1X). The combination means either there is a
single penalty when you compare one person making $X against two making
$X, or a marriage penalty when you compare two people making $X each
against a married couple of the same income.
-John Bishop
|
| 660.32 | Second homes? | MARVA2::BUCHMAN | UNIX refugee in a VMS world | Wed Feb 16 1994 16:58 | 16 |
| The 1040 booklet describing deductions for interest on house payments
indicate that you can deduct the interest on your primary and secondary
homes. It doesn't mention anything about only a percentage of your
interest on the second home being deductable. A couple years ago, I
thought that I had heard that Congress would be getting rid of interest
deductions on second homes. Did I hear that wrong? Is the interest on
both homes deductable?
Also, is there any residency requirement for a house to be considered
your primary home? The tax booklet just says it needs things like a
kitchen, bathroom, and sleeping facilities. We had a case where for a
while we owned three houses, but were not yet making payments on the
house we lived in, just on the other two. Can I deduct the interest on
those two houses without fear of getting slapped wrists?
Tnx,
|
| 660.33 | You still have some latitude even when married | PTPM06::TALCOTT | | Thu Feb 17 1994 09:37 | 23 |
| .27:
Aside from the rules about how deductions/itemizations are handled when
you're married, you can still target a few things. When we used to have an
accountant do our taxes we'd have her run the numbers for filing both jointly
and separately. All it took was letting her know which expenses were related to
whom, and when she finished a stroke on her keyboard generated the comparison.
The results in our case were usually pretty close, with one approach reducing
our combined tax liability by maybe $150 over another. But then I've never
turned down $150, either :-). My income is higher than my wife's and I
generally own/pay for items that are deductible since if we file separately I'm
in a higher bracket. FYI I believe we'd ended up filing jointly in almost every
year we've been married because of the both-must-itemize-or-use-standard-
deduction angle.
.31:
Marriage penalty - my previously divorced father and his now-wife didn't
marry and saved a bundle. They got married last year, however. He found out
that the flip side of the coin was that when he expired, a wife was entitled to
a much larger chunk of his pension pie than was a POSSLQ. He's planning on
retiring this year and given their reduced income and the pension issue,
they're now married.
Trace [No "e" in Tracy, John]; "Trac" for a nickname sounded pretty stupid :-)
|
| 660.34 | Options | SMAUG::DANA | | Thu Feb 17 1994 13:34 | 6 |
|
Simple question regarding options. I bought some call options and
later sold them, I never exercised them. Do these go on Schedule D?
The directions for Schedule D are somewhat vague.
Thanks
|
| 660.35 | | BROKE::SHAH | Amitabh "Amend Constitution: ban DECAF" | Thu Feb 17 1994 13:41 | 5 |
| Re. .34
yes. Treat the gains/losses on your options like you'd treat stocks
and mutual funds. Your broker will not include these transactions
on any 1099's, so you will have to keep proper records.
|
| 660.36 | | NOVA::FINNERTY | Sell high, buy low | Fri Feb 18 1994 10:10 | 10 |
|
re: .34
if they were index options, you need to fill out another form in
addition to Schedule D. The form number is in the '88xx' range,
if memory serves, and covers regulated futures and index options.
The form was not included in last years' TurboTax, btw.
/jim
|
| 660.37 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Mon Feb 21 1994 09:42 | 9 |
| re .21:
> My tax liability this year is $48 so I should have no problem ensuring
> that my total deductions exceed 1993's tax liability -- unless you mean
> total liability (the amount of Federal tax I paid throughout the year
> plus the $48 I now owe which is much bigger).
Your tax liability is the total amount of taxes Uncle Sam gets from you.
If you owe $48 after paying $X in withholding, your tax liability is $X+48.
|
| 660.38 | Schedule C question & partial business use | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Mon Feb 21 1994 14:56 | 39 |
|
re: .37. Your right Gerald. I now understand the rules with
withholding and how much I need to have taken out of my paycheck to
avoid the penalty -- Thanks.
New topic:
I upgraded my desktop computer this year so that I can write
and sell educational software as a sole proprietor. I would
like to deduct this cost on Schedule C (Business gains/losses).
My problem is that although my intent was to use the desktop
computer exclusively for business purposes, I have used it for
home use too. I use it about 75% for business and 25% for home
use.
I also have notebook computer bought specifically for home use
but use it 25% for business and 75% for home use -- after I started
the sole proprietorship, I found that it is convenient to give
demos to prospective customers using the notebook computer.
How much of my cost can I deduct? I paid for the desktop upgrade
in one payment but pay for the notebook (through EPP) using the
monthly payment plan with 0% interest.
This is the first time I've had a situation like this where I use
personal property for both business and home use.
Should I put 75% of the cost of the desktop as a business expense
on Schedule C? and deduct 25% of this year's monthly payments for
the notebook computer as another business expense on Schedule C?
I have the receipt for the desktop computer upgrade but don't
have receipts for the notebook computer.
Thanks,
Dennis
|
| 660.39 | | USCTR1::SHERMAN | | Tue Feb 22 1994 11:59 | 6 |
| My daughter, who is not my dependant, had a $5,000 loss in a car
accident (no insurance, totaled car). Is this type of a loss
deductible on her tax return?
Thanks,
Judy
|
| 660.40 | Accidents = Deductible | KOALA::BOUCHARD | The enemy is wise | Tue Feb 22 1994 12:11 | 4 |
| re: .39
Yes, there is a form for Casualty and Theft losses. These are only
deductible if they exceed a certain threshold (2% of AGI, I believe).
|
| 660.41 | | TLE::FELDMAN | Opportunities are our Future | Tue Feb 22 1994 14:18 | 37 |
| re: .38
Your computers are listed property and must be entered
as such on Form 4562. Working from memory, I believe
you can take the Sec. 179 deduction (i. e. take the full
amount of the computer in one year) for the home computer,
since it is used more than 50% in your business. However,
this may not always be the best decision; if usage falls
below 50%, you'll have to recover the deduction in future
years. You have no choice but to depreciate the notebook,
since it is less than 50% business use.
In both cases, you must calculate a pro-rated basis based
on percentage of business use. Pick up IRS Pub 334
(Small Business Guide), as well as the pub on How to
Begin Depreciating Property and on Depreciation (numbers
escape me, but I could look them up at home if necessary).
The EPP loan is a separate transaction from the purchase.
Since there's no interest involved, it's essentially
irrelevate. If I'm understanding this correctly, you
put the notebook into business use long after you actually
purchased it. If that's correct, you'll have to come up
with a fair market value for the notebook as of the day you
started using it for business, use that as the full basis,
and then pro-rate it for business percentage. (I think the
Globe still carries the Boston Computer Exchange going rates
once a week). You may wind up with a lot of paperwork with
very little benefit.
For the desktop upgrade, assuming you used it for business
purposes right after purchasing it, use the full purchase
price and then pro-rate it. Treat the original computer
equipment as a separate piece of equipment, and go through
the same fair market value stuff as for the notebook.
Gary
|
| 660.42 | | TLE::FELDMAN | Opportunities are our Future | Tue Feb 22 1994 14:20 | 10 |
| re: .40
> Yes, there is a form for Casualty and Theft losses. These are only
> deductible if they exceed a certain threshold (2% of AGI, I believe).
10% of AGI, plus some off-the-top deductibles. It's not terribly
complicated to figure out, but it is more complicated than the average
tax form.
Gary
|
| 660.43 | mutual fund tax question | AOSG::AFD | | Fri Feb 25 1994 13:06 | 25 |
| This is a theoretical question but it is directly related to taxes.
Assume that I buy shares of a mutual fund over a 10 year period
and have all dividends and distributions re-invested. I never sell
any but continue to buy more each year.
At the end of 10 years assume that I have put $100,000 into the mutual
fund (including the re-invested dividends and distributions). But the
value of my holding is $200,000 (if I sold it all at once). Instead of
selling it all at once (and having a taxable gain of $100,000), assume
that I sell only $10,000 worth. How do I figure the cost of the mutual
fund shares represented by that $10,000 sale (which I need to know in
order to figure out my taxable gain)?
Then let's further complicate this by assuming that each year there-after
I don't put any more money into the mutual fund (but I do let dividends
and distributions be re-invested) and I continue to sell $10,000 worth
each year. How do I fugure my taxable gain for each of those years?
Given that mutual funds tend to go by dollar amounts and not specific
share numbers, this looks like it could be very complicated.
Thanks for any insights,
- Al
|
| 660.44 | You can specify which shares to sell | TLE::JBISHOP | | Fri Feb 25 1994 13:38 | 27 |
| When you send a letter to the fund asking for sale, you can
either specify which shares ("the shares I bought on 10/10/90")
or not. If you don't the IRS assumes you are selling your
oldest shares (FIFO is the acronym for this: First In, First Out),
and your tax liablity is based on that assumption. If you do
specify, then your tax liablity is based on the sale of the
specified shares.
If you have years of re-investment, there will be lots of
little purchases, so your letters might be a very long list
of dates. But that's ok. If you don't have records, ask
the fund company for a history first.
Generally you'll want to sell the shares on which you have
the least gain first, to postpone taxation. You'll also want
to batch losses so that you don't have to roll them over to
other years (I think you can have up to $3K of capital loss
applied against income). Thus, you might sell all the shares
with a loss (total of -$X), and then sell shares starting with
those that had the least gain, up to a total gain of $3K + X.
Net result is no capital gain tax and a $3K deduction from
income.
As always, complicated tax questions should be checked out with
a professional--here we just have opinions!
-John Bishop
|
| 660.45 | Capital loss question. | CAMONE::ZIOMEK | Pump up the TEST | Fri Feb 25 1994 14:45 | 19 |
| Hi,
I will be selling a home soon and would like to know if the
commissions that you pay the realtor are deductable as a loss, assuming
that you have taken a loss?
Where as
Purchase price = 100k
Selling price = 95k
Commission = 5k
-----
90k back to me...
Can I take a loss on either the 90K or would it be on 95K? Assuming 3k
per year spread out over the 'life' of the loss.
Thanks,
John
|
| 660.46 | Average cost | KOALA::BOUCHARD | The enemy is wise | Fri Feb 25 1994 14:52 | 14 |
| re: .43, .44
Actually the IRS also allows you to base things on the average cost per
share. So if you invested $100,000 (including redistributions) and you
now hold 10000 shares, your average cost is $10/share. If you sell
shares you can compute the gain based on this average.
Many mutual fund companies are now computing gains and losses for
people using this method and sending it to shareholders.
This method only works if it is used consistently; for a given fund
you must always use this mechanism or never use it. While it isn't as
good as specifically selling the most expensive shares it is much
simpler from a record-keeping point of view.
|
| 660.47 | No loss for residence | KOALA::BOUCHARD | The enemy is wise | Fri Feb 25 1994 14:55 | 10 |
| re: .45
You can't take a capital loss of the same of a residence. Sorry.
In general, costs associated with selling are deducted from the sale
price. This includes not just the real estate agent's commission, but
any other sale-related expenses (money spent preparing the home for
view, etc.) Likewise any home-improvement type expenses (expenses
which make the home more valuable) can be added to your cost basis for
the home, further reducing your gain.
|
| 660.48 | No loss allowed | ELWOOD::KAPLAN | Larry Kaplan, DTN: 237-6872 | Fri Feb 25 1994 14:55 | 6 |
| My understanding is that capital losses from real-estate are not
eligible as a capital loss at all. You can, though, use the loss to
reduce any deferred gain you're carrying from previous real-estate
transactions.
L.
|
| 660.49 | Casualty and Theft | KOALA::BOUCHARD | The enemy is wise | Fri Feb 25 1994 14:56 | 4 |
| re: .39
Casualty & Theft is Form 4864. .41 was correct, these can only be
deducted over 10% of AGI.
|
| 660.50 | | TLE::FELDMAN | Opportunities are our Future | Mon Feb 28 1994 12:17 | 21 |
| re: .43, .44, .46
I believe that for 1994 (i. e., the returns you'll be doing a year from now),
the IRS requires the mutual funds to provide the average cost basis to you.
Those that are doing it now have simply gotten a head start on that
requirement. Of course, if you've sold shares and used some other method, the
basis that the fund computes for you will be useless, and you'll still have
to do your own calculations. Note that once you start using average cost,
you're stuck with it. However, I believe you can switch to average cost
from other methods, and obviously you can always switch between FIFO and
designated shares. (FIFO is just designated shares where you omitted the
designation, so the IRS "designates" the oldest shares for you.)
There's a sign error in .44. If you really want $3K in losses to use
against other income, you must create X-$3K in gains to offset X in
total losses. Otherwise, .44 is right in saying that you can move tax
around from year to year. It isn't entirely clear whether it's worth
the effort. Tax considerations are just a part of the decision as to
when to buy or sell.
Gary
|
| 660.51 | Yes, you want more losses than gains | TLE::JBISHOP | | Mon Feb 28 1994 13:12 | 5 |
| re .44, .50
Thanks for the correction, Gary!
-John Bishop
|
| 660.52 | question about a loss on a rental property | NODEX::POLIKOFF | Arnie Polikoff MRO1-3/K16 Office 32503 297-2313 | Wed Mar 02 1994 14:33 | 13 |
| I have a question about a loss on a rental property.
1. Used $50,000.000 equity from his home to buy a rental property in 1988.
2. The purchase price of the rental property in 1988 was $176,000.00
3. Went bankrupt in 1993.
4. Bank foreclosed on the rental property in February 1994.
5. The existing mortgage is $130,000.00 but the market value is nil because
several houses in the neighborhood went into foreclosure and are not
selling so they are still owned by the banks.
Is there any way to claim the $50,000.00 loss on the IRS forms.
Arnie
|
| 660.53 | Spend the bucks for a CPA or other advisor! | TLE::JBISHOP | | Wed Mar 02 1994 16:21 | 12 |
| You'll want to recommend getting professional help, but the big picture
is that the IRS sees building and the mortgage as two separate things.
I don't know how foreclosure is treated, but might guess it's treated as
a sale for the balance of the mortgate--but I could be wrong, probably
am wrong, and you should NOT rely on this. I bet it depends on whether
the loan is still in force or has been cancelled by the foreclosure.
Anyway, it sounds like there's a real loss here--and one that will
require rolling over to future tax years.
-John Bishop
|
| 660.54 | Does not even deserve a title! | PUFFNS::BELAYE_S | | Wed Mar 09 1994 09:46 | 14 |
|
I would really appreciate a little help on the following:
I bought 200 shares of X on 3/2/92 @$16/share. X then
spun off Company Y and issued .85 warrants for each share
of X. On 8/26/92 I was the owner of 170 warrants of Y
which I sold on 3/25/93 for a net sum of (hold on to your
seats :^) $48.10. On 12/9/93 I sold the 200 shares for
the sum of (strap those seat belts, please! :^) $365.00
I have no earthly idea how to treat this loss on Schedule D.
Many Thanks!
Steve
|
| 660.55 | | MRKTNG::BROCK | Son of a Beech | Wed Mar 09 1994 09:59 | 4 |
| I -think- it is straightforward. You bought X for 3200 - sold for $365.
Long term loss.
I -think- your cost basis in the Y warrants is zero, so your net is a
gain.
|
| 660.56 | Dividend? | KOALA::BOUCHARD | The enemy is wise | Wed Mar 09 1994 10:17 | 6 |
| You paid $3200 for securities you sold for ~$413. One way or another
you have a ($3200-$413) long term loss to declare.
I'd go by how the issuing of the warrants was represented to you. If
you got a 1099 claiming that the warrants were a dividend, treat them
as such...
|
| 660.57 | early pension dist. ?? | WEDOIT::CALABRIA | | Tue Mar 15 1994 08:06 | 18 |
|
Hello,
Upon leaving her previous job, my girlfriend
recieved a lump sum total dist. from her pension
plan. She promptly spent the dough... 'bout $700
the fed already took thier 20%, I assume MA treats
it as ordinary income. is this dist. subject to the
same 10% penalty as an early ira/401k dist. ???
(she made no contributions)
if so, is the 10% calculated pre or post tax?
is form 4792 the right place to be? the details
are sketchy...
thanks,
John
|
| 660.58 | | RANGER::CLARK | | Tue Mar 15 1994 10:01 | 16 |
| Yes, the distribution is subject to a 10% penalty ($70). Also, maybe the feds
took their share, maybe not. Aside from the 10% penalty, the distribution
(before the penalty) is considered income: maybe the 20% withholding will cover
the income tax due on the distribution, maybe it won't.
Put the amount of the distribution in the line on 1040 which asks about pension
distributions. I'd expect the full amount of the distribution to be fully
taxable.
The distribution *requires* a Form 5329 (attached to return) which is where you
calculate the penalty. Record the penalty in the "other taxes" section of 1040.
I don't recall Form 4792 - I think that's for "regular" (not premature)
distributions - she won't need it.
I think MA also has a line which asks about pension distributions (not sure).
At any rate, MA will tax the distribution as income with no additional penalty.
|
| 660.59 | | TLE::FELDMAN | Opportunities are our Future | Tue Mar 15 1994 10:29 | 7 |
| re: .58
Starting this year (1993 returns) Form 5329 does not need to be filed
in many simple cases. Still, it's the best place to go to determine
the penalty, and to find instructions for how to declare it.
Gary
|
| 660.60 | Call your broker about warrants distribution | VSSCAD::SIGEL | | Wed Mar 16 1994 12:52 | 27 |
| Re .54
Since the warrants were distributed in 1992, it's too late to do anything about
the 1992 tax consequences for them if they were, in fact, a taxable
distribution. So don't worry about it.
What you should do is call your broker (whoever sold you the stock) and ask them
what the value of the distributed warrants were. The broker should have a
listing of all mergers, distributions, etc., explaining whether the transaction
was taxable, and what the value of the newly distributed shares or warrants or
whatever were.
Take the distribution price per share of the warrants, and multiply by 170.
This is your "basis" or "cost" of the warrants. Subtract this same amount from
what you paid for the stock. The result is your new basis for the stock.
On Schedule D, list the 170 warrants and the 200 common share as separate sales,
filling in the cost/basis as above, and the sales price as what you received for
the sale. The only odd thing might be the purchase date of the warrants -- have
your broker tell you whether it should be the date you received the warrants, or
the date you purchased the original stock, since both are possible depending on
arcane facets of tax law that I don't understand. In fact, if the legal
purchase date of the warrants is when you received the warrants, then you have a
short term loss; if it should be when you bought the stock in the first place,
then you have a long term loss. This difference can affect your final tax bill.
-- Andrew
|
| 660.61 | | RANGER::CLARK | | Thu Mar 17 1994 14:43 | 3 |
| re .59... Can you supply a reference which describes the circumstances in which
a 5329 isn't required where it used to be? Lasser seems to indicate that there
are very few exceptions.
|
| 660.62 | | TLE::FELDMAN | Opportunities are our Future | Thu Mar 17 1994 15:16 | 8 |
| It's right in the instructions for the 5329. I believe that
if all the 1099-R forms have a distribution code of 1, then
the 5329 isn't necessary. A typical case is a person leaving
a job, taking a single lump-sum distribution, and thus getting
a single 1099-R with code 1. No 5329 is required unless you
file electronically.
Gary
|
| 660.63 | Required repairs for house sale | NPSS::WADE | Network Systems Support | Fri Mar 18 1994 08:48 | 9 |
| I sold my house on 1-DEC-1993 and I made several thousand dollars worth
of repairs/upgrades required to sell the house. I was told that I
could deduct these from my taxes as long as they were made less than
60 days prior to the sale. Before I dig into this I was wondering
if anyone has any ideas on where to look for info and what forms I
need?
Thanks,
Bill
|
| 660.64 | | USCTR1::BJORGENSEN | | Fri Mar 18 1994 08:53 | 4 |
| I think it's added to the cost basis of your house, not as a tax
deduction to offset normal income. If you have a taxable profit
from the sale of the house (ie you are not re-investing) then use
it to reduce your gaine.
|
| 660.65 | not a happy camper | ZENDIA::FERGUSON | Red X | Fri Mar 18 1994 09:12 | 4 |
| I just did a first pass on my FED income taxes, filing married
status for the first time. Being married is costing me $1000.00 in extra
taxes this year! (I computed it single status and the diff. was $1k!
unbelievable!).
|
| 660.66 | IRA Investment Deadline | CTHQ::DELUCO | Short people look up to me | Fri Mar 18 1994 09:16 | 4 |
| Do I have until filing deadline (15 April) to dump money into an IRA in
order to avoid some 1993 taxes?
Jim
|
| 660.67 | Misc replies | TLE::FELDMAN | Opportunities are our Future | Fri Mar 18 1994 09:39 | 17 |
| re: .63
The form is 2119, Sale of Your Home, which you are required to file.
There's also an IRS pub on the subject, whose number I forget.
Reply .64 is correct in saying that they are added to your basis.
Even if it doesn't result in any benefit to you now, you should
still keep careful records, as it may pay off in the future.
re: .66
Yes, IRA contributions for 1993 may be made up to Apr. 15 1994.
Note that you can file before you make the contribution, as long
as you actually make it. A fair number of people file early and
use their refund to fund their IRA contribution. (Not necessarily
the best strategy, but it works for them.)
Gary
|
| 660.68 | | SOLVIT::CHEN | | Fri Mar 18 1994 09:51 | 7 |
| re: .66
Yes, you still can make your 1993 IRA contribution until April 15. But,
it may not be tax deductable. The tax deductability issue on IRAs has been
discussed extensively elsewhere in this Notes File.
Mike
|
| 660.69 | | CTHQ::DELUCO | Insert Funny Face Here | Fri Mar 18 1994 12:48 | 4 |
| Yes, I just found out that if you have a Save plan, IRA contributions
are not tax deductible.
Jim
|
| 660.70 | Shall I double withholding allowances? | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Tue Mar 22 1994 14:42 | 17 |
|
I have a nifty worksheet to calculate withholding allowances I will be
entitled to. I am in the process of purchasing a home -- I will
probably close around June. My question is, suppose I calculate that I
can claim 5 withholding allowances; should I double this because the
withholding (i.e., reduced taxes) will only occur for only half the year?
I think that the withholding allowances calculation assumes that they
go into effect at the beginning of the year so that you have a whole year
of bigger paycheck. But, in my case, I will have only half a year of
bigger paycheck -- thus, I need to get twice the amount _not_ withheld
from my paycheck. Am I right?
Thanks,
Dennis
|
| 660.71 | | TLE::FELDMAN | Opportunities are our Future | Wed Mar 23 1994 10:43 | 18 |
| Your reasoning is correct so long as you remember to
change it back on Jan. 1. Otherwise, you may be socked
with a large tax bill on your 95 taxes. If
you included points in your allowance calculation, you'll
need to compensate for them, as well. Or perhaps the
points are balanced by a having full year of real estate taxes.
It's easy to overlook things. Personally, with bank interest
rates as low as they are, I don't worry too much about optimizing
my withholding.
The safest solution is to recalculate your expected
withholding after the change is made, to verify that it
meets your expectations. In fact, you may just want to get
into the habit of analyzing your withholding quarterly,
especially if there are large stock sales or other sources
of income that can change.
Gary
|
| 660.72 | Thanks | TOOLS::TLE::PERIQUET | Dennis Periquet, DEC BASIC compiler development | Wed Mar 23 1994 14:07 | 2 |
|
Thanks Gary, Dennis
|
| 660.74 | | NETRIX::michaud | Jeff Michaud, PATHWORKS for Win. NT | Thu Mar 31 1994 21:55 | 6 |
| > By now I assume that everyone has heard about the strategy of
> applying for an extension on filing your taxes in order to avoid
> being audited; .....
I've never heard of that. How does it "avoid" it? The IRS
can audit the return up to seven (7) years later!
|
| 660.76 | | RANGER::CLARK | | Fri Apr 01 1994 12:08 | 7 |
| > it just greatly diminishes the chances of your filing entry
> from being routinely selected for an audit and thereby eliminates many
> inconveniences for the average taxpayer.
I was under the impression that your chance of being awarded a random audit is
on the order of >1%. Perhaps you'd care to share some of the tax-prep techniques
you've used that make it desirable to reduce that likelihood even further? ;^)
|
| 660.77 | Immigration Fees. | SWAM2::WANTJE_RA | | Tue Apr 05 1994 17:53 | 6 |
| Are immigrations fees deductable? My wife is from another country and
we paid several hundred dollars to the U.S. Immigrantion Service for
her residency status and work permit. I believe some government fees
are deductable, are these?
Ralph
|
| 660.78 | "investment expenses" | HPCGRP::TELLA | | Thu Apr 07 1994 13:25 | 10 |
| What "investment expenses" can be claimed on Form 4792 vs under the
Miscellaneous deductions (2% AGI) on Schedule A.
Examples: Interest expense? WSJ? Quicken?
There are 2 sections in the Publication on Interest claims that seem to
cancel each other out.
Thanks for any help,
/Linda
|
| 660.79 | Municipal bonds and tax exemption from State | ERLANG::CHIU | Dah Ming Chiu | Tue Apr 12 1994 17:51 | 11 |
| I owned some Fidelity MA Tax Free HY bond fund in 1993.
A letter from Fidelity in January advised me that for
that fund:
"...a portion of the long-term capital gain distributions you
received is exempted from Massachusetts income tax..."
In particular, 74.82% of the long-term capital gain
distributed in 12/10/93 is exempt from tax.
I am just curious how can long-term capital gains
can become exempt from state tax in general. Is this another
way to encourage people to buy municipal bonds?
|
| 660.80 | | ZENDIA::FERGUSON | Red X | Wed Apr 13 1994 10:42 | 8 |
| re <<< Note 660.79 by ERLANG::CHIU "Dah Ming Chiu" >>>
-< Municipal bonds and tax exemption from State >-
>I am just curious how can long-term capital gains
>can become exempt from state tax in general. Is this another
>way to encourage people to buy municipal bonds?
yes.
|
| 660.81 | Help! ESPP question | RAGMOP::PIAZZA | | Wed Apr 13 1994 15:16 | 17 |
| I'm not sure if this is the right place for this... please point me in
other directions if it isn't.
I sold a bunch of Digital stock purchased through the ESPP. Some of it
is long-term gain; other is short-term gain. The statement I get
through Investor Services lists anything I've sold in the last 18
months and uses 18 months to separate out short term gains from long
term. Yet on the tax form, they use 12 months to determine this.
Also, the impression I get from Investor Services is that if the stock
is less than 18 months old when sold, I do not use my actual purchase
price as the "basis" for the stock, but use the ending FMV. Can anyone
provide some help or clarification on this?
Thanks,
Janet
|
| 660.82 | Short Answer | KOALA::BOUCHARD | The enemy is wise | Wed Apr 13 1994 15:24 | 18 |
| 660.83 | 2119 - sale of your home | NPSS::WADE | Network Systems Support | Thu Apr 14 1994 12:55 | 21 |
| I have a specific question regarding form 2119, sale of your house.
My "gain" on sale is ~ -30,000 (line 8) due to capital improvements. Line
8 does not say "enter 0 if less than 0".
I need to go to part IV because I made repairs. So, I enter -30,000 on
line 15. Then it looks like I have to stop here and enter this as a
capital loss but what about accounting for my fixing-up expenses and I
was under the impression that there are no capital gains/losses
associated with selling your house?? Seems like I can only account for
fixing-up expenses if I made a profit on the sale. This don't seem right!
If this seems too convoluted you are welcome to respond via mail or
226-5696.
Talk about last minute (&^%$%^$#). Good thing I have the extension form
and know what I owe.
Thanks,
Bill
|
| 660.84 | | TLE::FELDMAN | Opportunities are our Future | Thu Apr 14 1994 16:01 | 6 |
| You cannot take a loss on the sale of your house.
So the 30K is gone, as are the fixing up expenses.
You still need to file the 2119.
Gary
|
| 660.85 | Long term ESPP still generates income | DAVE::MITTON | Token rings happen | Fri Apr 15 1994 18:15 | 34 |
| This response is wrong in the last case.
RE: <<< Note 660.82 by KOALA::BOUCHARD "The enemy is wise" >>>
< -< Short Answer >-
<
< ESPP & Taxes, the "short form":
<
< There are 3 scenarios. For each I'll assume:
< X = FMV of shares purchased on date of purchase
< Y = Actual cost of shares purchased
< Z = Actual sale proceeds (i.e. sales price - commission)
<
< Stock Held under 12 months:
< X - Y = "Income", reported to you by Digital on your W-2
< Z - X = Short Term Capital Gain/Loss, Schedule D
< (positive = gain, negative = loss)
<
< Stock Held more than 12 but less than 18 months
< X - Y = Income, as above
< Z - X = Long Term Capital Gain/Loss
<
< Stock Held more than 18 months
< Z - Y = Long Term Capital Gain/Loss
Stock Held more than 18 months
Income = Lesser of (15% * FMV of shares at beginning of purchase period)
or (Z - Y)
Long term gain = Z - (Y + Income)
You claim the income in the year that you sell the stock.
This is from the DEC IS form SC1031.FRM on the back of the W2 Tax Adder
statement they send me recently. Or in your Stock Prospectus.
Dave.
|
| 660.86 | Yikes | KOALA::BOUCHARD | The enemy is wise | Fri Apr 15 1994 18:59 | 8 |
| re: .85
Jeez, this is more complicated that I thought, and I've been through
this a bunch of times (though I've never held DEC for more than 18
months...)
re: .85 is correct and, tragically, makes the computation even more
complicated.
|
| 660.87 | Not as Short Form | KOALA::BOUCHARD | The enemy is wise | Fri Apr 15 1994 19:03 | 27 |
| Terribly embarrassed to note that my 'short form' was incorrect
for the 18+ month case...
ESPP & Taxes, the "somewhat short form":
There are 3 scenarios. For each I'll assume:
W = FMV of shares at first day of period
(i.e. six months before actual purchase date)
X = FMV of shares purchased on date of purchase
Y = Actual cost of shares purchased
Z = Actual sale proceeds (i.e. sales price - commission)
Stock Held under 12 months:
X - Y = "Income", reported to you by Digital on your W-2
Z - X = Short Term Capital Gain/Loss, Schedule D
(positive = gain, negative = loss)
Stock Held more than 12 but less than 18 months
X - Y = Income, as above
Z - X = Long Term Capital Gain/Loss
Stock Held more than 18 months
if (W .lt. X)
15% x W = Income
else
15% x X = Income
Z - (Y + Income) = Long Term Capital Gain/Loss
|
| 660.88 | Margin interest deductable? | MILKWY::JSIEGEL | | Thu Apr 28 1994 14:28 | 11 |
| I'm trying to do some tax planning, and have a question on margin
borrowing. I didn't find anything recent on this (last note about 1
year ago), so I'm rechecking for the latest rules.
Can margin interest still be deducted on schedule A (or anywhere)? I
was told the laws recently changed on this, but don't know what the
changes were. I was hoping to pay off some installment debt with a
loan from my margin account (just set it up) so that I could deduct the
interest payments.
Any thoughts on this?
|
| 660.89 | Margin (and other "Investment Interest") expense deduction. | ALFAXP::S_SOVEREIGN | Retroactive Elections!!! | Thu Apr 28 1994 15:39 | 34 |
| The general category "Investment Interest Expense" includes margin account
interest. It *is* deductible, subject to certain limitations. The limitations
have changed over the last several years, getting "tighter" each year.
Other interest (besides margin account interest) may qualify for this deduction,
as well-but last year's Pub. 17 specifically named margin account interest as an
example of "Investment Interest".
The general rule:
Your deduction for investment interest expense is limited to your "investment
income". Any "left over" expense is carried forward to a future year until you
can use it up. "Investment Income" includes dividends, interest earned on
savings accounts, capital gains, etc.
The modification:
You now have to make a choice...if you take the 28% "limit" on your investment
earnings, you cant use those same earnings to "offset" your interest expense.
For me, this isn't a problem, as I'm no where near the >28% bracket...your
mileage may vary.
There are lots of nits...but this is the fundamental idea.
If you have any carryforward from previous years, or any carryover to future
years, or any "Investment expense" deductions in the miscellaneous section of
Schedule "A", you have to include form 4952, "Investment Interest Expense
Deduction" with your 1040. If you have more "income" than "interest", and no
itemized expenses...you just write the correct number in on the schedule A, line
11, just below the Home Mortgage Interest.
Using this deduction *might* affect your 6251 (AMT)...maybe.
SteveSov
|
| 660.90 | SE tax == FICA for MA state ?? | LJSRV1::RICH | hit me you can't hurt me | Wed May 11 1994 12:20 | 11 |
| When calculating your Mass. state income tax, there is a box on Form 1
where you fill in the amount you paid to Social Security (or FICA?), which
will ultimately reduce your state tax liability. Can the Self Employment
tax that self employed people pay on their federal return be put in that
box, too? I think it should be, because the Self Employment tax is like
the half of your FICA that your employer pays, if you have an employer.
I couldn't find anything in the instructions that dealt with this.
thanks for any help,
-dave
|
| 660.91 | $2000 cap | KOALA::BOUCHARD | The enemy is wise | Wed May 11 1994 12:27 | 5 |
| re: .90
Not an answer to your question, but Mass limits the amount of Social
Security you can deduct to $2000 or so; if you're over that limit then
it doesn't matter to you if you can add the self-employment piece.
|
| 660.92 | | RANGER::CLARK | | Wed May 11 1994 15:26 | 2 |
| My understanding is that the SE tax calculated for Form 1040 can be deducted on
the MA FICA line.
|
| 660.93 | How much is the tax underpayment penalty? | TLE::PERIQUET | Dennis Periquet | Thu Jun 30 1994 11:27 | 17 |
|
I understand that if you don't pay enough taxes through the year and at
the end of the year you owe more than some certain amount, etc. you have
to pay a penalty.
Every year I check how much I'm getting withheld from my paycheck and
my financial position so that I get as little a refund (or owe as
little) as possible at the end of the year. If I am off by too much, I
want to be prepared to pay the penalty or if the penalty is too big, I
want to err more towards the conservative side.
Does anyone know how much the penalty is?
Thanks,
Dennis
|
| 660.94 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Thu Jun 30 1994 12:01 | 12 |
| I don't know offhand what the penalty is, but I know how to avoid it.
Generally speaking, if your withholding is at least as much as last year's
tax liability, you don't have to pay a penalty. Tax liability is the total
amount of tax you owed -- the amount you compare to your withholding to
determine who owes whom what.
Around October, I take a look at my last year's tax liability and my YTD
withholding. If I'm not on course to have had withheld a few dollars more
than last year's tax liability, I submit a new W4. I like to owe as much
as possible without paying a penalty. If your goals are different, you
just have to adjust your withholding to meet those goals.
|
| 660.95 | | ZENDIA::FERGUSON | The Janitor of Coding | Thu Jun 30 1994 14:10 | 10 |
| I think the metric is you must have had 90% of your obligated taxes
withdrawn and paid to Feds or face a penalty.
so, if your tax liability was $10,000, as long as you had $9k
withdraw, you're in the clear.
my goal is 90%, and yes, i do get hit with a big expense april 15th,
but at least i had that $$ working for me vs. Uncle Sam.
|
| 660.96 | | CADSYS::RITCHIE | Gotta love log homes | Thu Jun 30 1994 14:28 | 2 |
| It is no longer 90%, it is now 100%. I just researched this for some newlyweds
who are afraid of getting zapped with the marriage tax.
|
| 660.97 | | LEEL::LINDQUIST | | Thu Jun 30 1994 15:03 | 10 |
| I owed about $2500 this past April, so I had significantly
underwithheld. The penalty was $28. I laughed at the
disincentive, and mailed it it. Writing the 2500 part of
the check was a lot harder than the 28.
About two weeks ago, I got a refund for the $28; plus $0.21
interest.
In a year or two, I probably get a bill for the $28 plus
interest...
|
| 660.98 | ~1% fee won't hurt much | TLE::PERIQUET | Dennis Periquet | Thu Jun 30 1994 15:43 | 16 |
|
re: last few
Thanks for all of the replies.
My tax situation has changed significantly in the past two months --
just got married (marriage penalty) and job bought a home (interest,
etc. deductions). Like Gerald, my goal is to owe as much as possible
and perhaps incur as small a penalty (none is best) as possible.
Given the information from the last few replies, although I think that
my calculations on withholding are correct, paying a small fee of ~1%
will not hurt that much if I am slightly incorrect.
Dennis
|
| 660.99 | When did it change? | NOTAPC::LEVY | | Fri Jul 01 1994 13:00 | 3 |
| re: .96
Can you please cite your reference for this?
|
| 660.100 | | CADSYS::RITCHIE | Gotta love log homes | Fri Jul 01 1994 13:22 | 6 |
| I'm not exactly sure when it changed from 90% to 100%, it may have been the
latest tax reform. I'll see if I can find the exact reference. You can also
peruse the topics in this conference with the title TAX. It has been discussed
at length, even in this note (660)
Elaine
|
| 660.101 | | CADSYS::RITCHIE | Gotta love log homes | Fri Jul 01 1994 13:31 | 1 |
| See 65.23
|
| 660.102 | I think Estim. Tax due = 90% | HELIX::SPIELMAN | jerry dtn 297-4879 | Fri Jul 01 1994 14:40 | 43 |
|
re: about 90 vs 100% need for Estimated tax paid in
If the required percent tax paid in went from 90% to 100%, as per the last
few notes, then it happened since the 1993 tax returns were due.
The Macintax package, offered you a form which allowed you to perform
the computation with either 90% to be paid up, or 100%. Presumably
then, 90% was all you needed, but some folks just don't like to owe
money come April 15 so they offer to do it for you at 100%. I believe
there wasn't anything else to that. I think its still 90%.
As per another reply, the penalty is very minimal if you underpay.
I stopped making quarterly payments of $100 after the first one (Apr
15) and the forms I used showed I owed $5.00 (presumably due to
missing 3 $100 payments). Thats not worth worrying about. You can send
estimated payments in anytime. The forms in Macintax allow you to
indicate the date the payment "hits". So its calculation comes out
"accurate". (I guess the reason the "Penalty" isn't much, is because you
only owe the money at quarterly intervals. However, even taking this
into consideration I was still surprised how little the penalty is. )
BTW: If the person complaining about HR BLOCK:
might have had the option to use MACINTAX (and I imagine the PC version
must be equivalent). You get access to tons of forms and free
calculations for a very small fee. I obtained both the Fed and Mass
State (FINAL) versions around February on sale for only $56 (plus tax).
You can spend a lot of time with it, but you also learn a lot, and they
include on-line Tax rules from IRS. The Foreign tax paid form is there,
and was no problem to use. I'm not sure how complex the hidden
calculation is. I can tell you that I had a mere $11 withheld and for
whatever reason the calculation claimed that I should get $9 as a
credit. I had thought that you get it all back.
Does anyone know the gist of the calculation ?
|
| 660.103 | 90% still the basic requirement | NOTAPC::LEVY | | Fri Jul 01 1994 16:15 | 17 |
| Re: .101
The extract in 65.23 is misleading, because it's not complete.
The basic requirement is to have paid 90% of your tax liability by
12/31, by quarters. (Was true for 1993; am 99% sure it's still true for
1994.)
If you've paid less than 90%, you _may_ owe the penalty, but there are
a number of exceptions that allow you to avoid the penalty, some of
which were outlined in 65.23. Another exception is if the amount owed
is less than $500.
From a practical sense, requiring 100% payment by 12/31 would force
everyone to overpay, since exact tax liability is often unknowable
on 12/31, due to mutual fund distributions and the like, sometimes made
in January but taxed as if they were made in December.
|
| 660.104 | | CADSYS::RITCHIE | Gotta love log homes | Fri Jul 01 1994 16:28 | 7 |
| Thanks to your detailed explanation, I now am clear that I misunderstood what
was being discussed. I believe you can avoid the penalty by paying 100% of the
previous year's liability by 12/31. This is for people who don't have to delve
into quarterly payments, but simply have an increased liability due to getting
married.
Elaine
|
| 660.105 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Thu Jul 07 1994 12:16 | 14 |
| According to the 1993 Publication 17:
In general, you may owe a penalty for 1993 if the total of your withholding
and extimated tax payments did no equal at least the _smaller_ of:
1) 90% of your 1993 tax, or
2) 100% of your 1992 tax.
There are some exceptions (partial year, farmers, etc.).
While the IRS requires estimated taxes to be paid as your taxable income
accrues, it doesn't have any such rule regarding withholding. This means
that if you are underwithheld for most of the year and you increase your
withholding towards the end of the year to cover 90% of your last year's
income, you won't have to pay a penalty.
|
| 660.106 | home-loss offset mf-gain? | MIMS::HOOD_R | | Tue Jul 26 1994 12:54 | 14 |
|
I really did not know where to put this note, so I decided to stick
it here. We recently sold a condo at a small loss. While I realize
that I cannot deduct the loss on the condo, can I use the loss to
offset mutual fund gains? I have several funds that are doing fairly
well, and I would sell them and buy back in a month if I could balance
the gain against the loss in the condo. Can I do this?
Thanks,
Doug
|
| 660.107 | | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Tue Jul 26 1994 13:28 | 1 |
| No. There's no way you can take advantage of a loss on the sale of a residence.
|
| 660.108 | Keep the records, in any case! | SISDA::SISDB::TREMELLING | Making tomorrow yesterday, today! | Fri Jul 29 1994 13:12 | 8 |
| > <<< Note 660.107 by NOTIME::SACKS "Gerald Sacks ZKO2-3/N30 DTN:381-2085" >>>
>No. There's no way you can take advantage of a loss on the sale of a
residence.
Generally true, but I wonder if the current loss could be used to reduce
the cumulative basis toward the one-time exclusion after age 55?
|
| 660.109 | State form: can I file "married filing separately"? | TLE::PERIQUET | Dennis Periquet | Mon Sep 12 1994 17:46 | 23 |
|
I will be leaving Digital and taking a job elsewhere (in
Massachusetts); wife will continue to work in NH.
If we file jointly on Federal, do we have to file jointly on the state
form? I ask because I'm confused since if we file jointly on the state
form, I'd have to declare her income too and therefore get her income
taxed as well as mine even though she still works in NH -- where there
is no state tax.
Do we have the choice of filing jointly or married/separate on Federal
and then married/separate (i.e., no choice) for the state form -- so
that only my income is taxed at the state level? This makes sense to
me.
I know, I should know this, but although I have filed a state form
before (when I lived in Colorado), I have never filed a state form while
married.
Thanks in advance,
Dennis
|
| 660.110 | | NETRIX::michaud | Jeff Michaud, PATHWORKS for Win. NT | Mon Sep 12 1994 17:56 | 2 |
| If of course makes a big different which State you are a
resident of ...........
|
| 660.111 | Sorry for the oversight in needed information | TLE::PERIQUET | Dennis Periquet | Tue Sep 13 1994 11:09 | 4 |
|
I am a resident of NH and will be working in MA.
My wife is a resident of NH and works in NH.
|
| 660.112 | | NETRIX::michaud | Jeff Michaud, PATHWORKS for Win. NT | Tue Sep 13 1994 12:36 | 8 |
| > I am a resident of NH and will be working in MA.
> My wife is a resident of NH and works in NH.
In this case MA can *not* tax your wife's earnings. If you
file jointly on your federal return however MA may require
you to prorate their standard deduction & exemption (at least
they do this if you are single and have non-MA sources of
income).
|
| 660.113 | | REDZIN::COX | | Tue Sep 13 1994 16:02 | 8 |
| Or you can file joint for FED and seperate for Mass. You have to do some
caculations to arrive at the right figure for the right line, but if I can
figure it out, ANYONE can. Only time I have EVER had errors with tax forms is
in processing the Mass non-resident form.
Luck
Dave
|
| 660.114 | | TLE::PERIQUET | Dennis Periquet | Tue Sep 13 1994 17:09 | 7 |
|
re: .-2
ok. Thanks for the info.
Dennis
|
| 660.115 | Teenage Part Time Worker. | SWAM2::WANTJE_RA | | Tue Nov 01 1994 15:12 | 20 |
| If this is the wrong place, please give me a sign.
I have a 16 (soon to be 17) year old daughter. She just got a part
time job in a fast food place and is attending college. I plan to
claim her as a dependent on my 1040. She did not make any money or
file taxes for last year.
Two questions:
What does she declare on her W-4? My first guess is exempt.
Do I have to declare her wages on my taxes? I believe there is either
an age or amount limit which, if not exceeded, does not have to be
reported.
Any help appreicated. My first time dealing with teenage part time
worker who has NO idea about taxes and thinks they should get *all* the
money they make. (I tend to agree, but...)
rww
|
| 660.116 | Take her deduction | 38024::VERMA | Virendra, HLO2-1/A7, DTN 225-6518 | Tue Nov 01 1994 15:56 | 5 |
| My advice is that you show her as dependent on you. Don't claim her
wages as your income because it is not your income. She should file a
separate income tax form 1040A. Her number of dependents will be zero, but
she gets a standard $500 deduction. Even if she earns more than $500, she is
taxed at 15% rather than a rate of your tax bracket.
|
| 660.117 | LEAPS and reporting | FX28PM::FX26PM::SMITHP | Phil Smith 343-5014 | Wed Jan 04 1995 11:12 | 15 |
| It appears I am the first to ask a 1994 tax question in 1995!
I purchased a couple of LEAPS (long term options) in 9/93 that had an
expiration of 1/95. I sold them at the market during 12/94. However in
the summer of 94 the LEAP symbol was converted to an OPTION symbol when it
got to within six months of expiration (which is normal).
Q: So what do I have here two short term gains/losses or one
long term gain/loss?
After RTFMing last years IRS pub 17 the answer did not jump right out and
hit me.
Thanks
Phil
|
| 660.118 | long-term | PSDVAX::HABER | Jeff Haber..SHG IM&T Consultant..223-5535 | Wed Jan 04 1995 12:36 | 8 |
| I'm certainly no expert, but I have played with LEAPS a bit... As far
as I know the determination of short-term vs. long-term is how long you
hold the asset, not the nature of the asset. Therefore, your
transaction should be long-term.
Hope you made a profit...
/jeff
|
| 660.119 | Deduct 1/2 Med. Insr.Payments ? | HELIX::SPIELMAN | jerry dtn 297-4879 | Fri Apr 14 1995 13:03 | 21 |
| Can someone please clarify this as a legal deduction for us:
Today's globe had its TAX TIP column say something like:
Clinton just signed into law a deduction which allows *YOU*
to take 1/2 of your medical insurance payments (in 1994) as a line
item. (I'm not sure if *YOU* applies to everyone)
It doesn't go under the usual medical bills which must exceed some
percent of your income. Rather, you just get to take it, as you used
to about 10 years ago.
What wasn't clear to me was the phrasing used to say which class of
taxpayer can do this. I'm not sure it applied to everyone - perhaps
only the self-employed. I don't have access to the wording used.
SO can someone please report on this as it could be a big deduction
that was previously not possible.
Thanks,
Jerry
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| 660.120 | | RANGER::JUMPY::CLARK | | Fri Apr 14 1995 13:27 | 8 |
| This is only for the self-employed (who aren't covered by spouse's plan, etc.);
it's a reinstatement of a deduction previously available to the self-employed, but
which had lapsed at the end of 1993. If you absolutely want the deduction, you'll
have to resign from Digital and go into business for yourself :^)
Of course, then you'd give up the benefit of the 100% (rather than 25%)
deductibility of the DEC health and dental insurance payments made with pre-tax
dollars.
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| 660.121 | how to report short sale | BOBSBX::QUINLAN | Mark Quinlan, Alpha Personal Systems | Mon Apr 17 1995 11:00 | 6 |
| Would someone please post an example of how to report a short sale
of a stock on schedule D.
Thanks,
Mark
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| 660.122 | This is what I do | EVMS::HALLYB | Fish have no concept of fire | Mon Apr 17 1995 12:24 | 12 |
| No guarantees if they bang down your door some night.
Stock Bought Sold
1 100 IBM 12/06/94 $ 7875 02/02/94 $ 8250
2 400 MSFT open short 03/15/94 $ 32768
Case 1 the short is closed out the same year. Looks just like a long.
Case 2 the trade is still open. Just make sure the total of the "Sold"
column matches the form from your broker.
John
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