Leaderboard

You have to check the box at the top of the K1 screen to 'calc basis' then the basis section 'magically' appears at the bottom of the K1 screen.

Not necessarily; depends on the details of the annuity and how much (or little) control they have. If it's the Ozzie version of social security, they don't have a foreign trust. If they an a US-style annuity (that they were required to pay into), they may have a foreign financial asset. Or they may have a foreign trust. The devil is in the details - which need to be obtained, pronto.

Comparison chart Capital Lease versus Operating Lease comparison chart Capital Lease Operating Lease Lease criteria - Ownership Ownership of the asset might be transferred to the lessee at the end of the lease term. Ownership is retained by the lessor during and after the lease term. Lease criteria - Bargain Purchase Option The lease contains a bargain purchase option to buy the equipment at less than fair market value. The lease cannot contain a bargain purchase option. Lease criteria - Term The lease term equals or exceeds 75% of the asset's estimated useful life The lease term is less than 75 percent of the estimated economic life of the equipment Lease criteria - Present Value The present value of the lease payments equals or exceeds 90% of the total original cost of the equipment. The present value of lease payments is less than 90 percent of the equipment's fair market value Risks and Benefits Transferred to lessee. Lessee pays maintenance, insurance and taxes Right to use only. Risk and benefits remain with lessor. Lessee pays maintenance costs Accounting Lease is considered as asset (leased asset) and liability (lease payments). Payments are shown in Balance sheet No risk of ownership. Payments are considered as operating expenses and shown in Profit and Loss statement Tax Lessee is considered to be the owner of the equipment and therefore claims depreciation expense and interest expense Lessee is considered to be renting the equipment and therefore the lease payment is considered to be a rental expens

If he went to a national recycling/junk haulers convention and took 20 or 30 hours of paid seminars, no one would question the deduction. The challenge will be to show links between these seminars and his business, i.e. improved sales, new customers, improved employee productivity etc. It will take more than just saying those are the reasons he took the seminars, you will need specific examples, names and statistics.

Sorry, Roberts, but you are wrong. You don't have to pay taxes to the foreign country to get the exclusion. You are thinking of the foreign tax credit. Your clients would get the exclusion on the first $103,000 (depending on the year), and then could take the credit for taxes paid if their pay was more than the exclusion amount. You don't need to meet the bona-fide residency test, you just have to be overseas for 330 days in a 12 month period that may or may not correspond with the calendar year. I have a client that works for the UN overseas. The US is the ONLY country that taxes UN income, so she pays no taxes where she works, but does pay US tax on the amount over the exclusion. another client is a bona-fide resident of the UK. He pays UK tax, takes the exclusion and gets the FTC for the dividends he is also paid. Your Australian couple now has a foreign trust. Have you been filing the 3520 & 3520-A? For the question above; it is a SCAM!! I wonder if the 'poster' is in the break room or something - put up by an employee, not the company.

And having a business logo put on the truck does not make all the mileage deductible because advertising. I don't care what the barber told them.