Gail in Virginia

It is my understanding that a sole-proprietor cannot rent to themselves to reduce social security but I don't have a citation for that offhand. I also don't know whether being an LLC has any effect on the situation.

Was the W2 for employment or was it for something like sick pay? The client might be obligated to pay the social security and medicare taxes with their 1040 in some cases. Usually, if they are liable for the SS/Medicare their will be codes in box 12 with the amount of the uncollected taxes and this will carry onto the tax return on page 2, other taxes.

We use ArkWorks software as a file management software, and it includes an encryption program to allow us to send the files from the pdf copy in ArkWorks through email and set a password for the recipient that we provide separately. I am curious to know more about the NJ law your client referred to, however, so I hope someone from NJ posts in response to this.

It seems to me that I have seen similar articles about private hospitals lately, and the importance of reminding your health care professionals to wash their hands before they touch you. A cousin of mine died from a perforated intestine after a routine colonoscopy at a private hospital - I don't see how he could have been any worse off at the VA hospital that we have here. My father-in-law goes there for routine care and prescriptions, and they have been wonderful to him. I don't really think that the VA hospitals make a very good argument against government health care.

The majority of taxpayers in my experience already do this to some extent - if they don't get a 1099 or w2 for it, it never really happened. Right?

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Geography was never my strongest subject, but isn't Ireland part of the UK? Just like Great Britain, Wales and Scotland? Or is it more separate like Jamaica?

I agree with Joelgilb and Jainen, but I would also do as KC suggested and report the 1099 as income and back it out to preven a mis-match letter. Good luck!

I agree with John H., and before the personal banker asks it doesn't do any good to put one of the companies in the wife's name - it is still common ownership.

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Thanks to all of you for your good wishes!

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I practice in Virginia, and until recently was of the opinion that cohabitation violated local law and therefore prohibited a person from claiming a person of the opposite sex as a dependent. However, when this question was asked of the Virginia Department of Taxation recently, this is what they posted in their FAQ's site: "6. In Virginia, does cohabitation violate local law? Specifically, can one person claim another as a dependent if that person has no income and lived with the taxpayer all year? Neither of these issues is a matter of Virginia tax law. If a filer properly claims another person as a dependent for federal purposes, that person may also be claimed as a dependent on the Virginia return. However, the determination as to whether such a claim is proper on the federal return is a matter of federal tax law." If you care to look at the whole site, it is http://www.tax.virginia.gov/site.cfm?alias=TaxProfessionals and go to Tax Professionals FAQ. After this response, I am not sure what to tell people. But if it is a matter of federal law, and if federal law states except where in violation of local law, it seems to me that you still can't claim your significant other in VA.

You have my deepest sympathy. I am fortunate enough to still have my mother, and I cannot imagine the shock that it will be to lose her.

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I am at home, and so I do not have access to my usual research materials, but if he elects to be a professional day trader so that all expenses can be deducted without regard to the 2% limitation, wouldn't he then have to file on a sched C and pay SE tax on his gains? Are you sure this is what the situation calls for?

I am so glad that things worked out as well as they did, and I hope the Noxema works. Avon Skin-So-Soft is also supposedly good for keeping the bugs away, but as bad a reaction as you had I would not rely on any home remedies alone. And thanks for the reminder of how quickly our lives can be changed, and that we need to be thankful for all that we have! Happy Memorial Day to everyone!