HDTenEightyP/NetNews huggingface dataset:
From: carl@Cayman.COM (Carl Heinzl)
Newsgroups: misc.taxes
Subject: Re: Placed in Service?
Date: 5 Jan 93 22:48:20 GMT
Organization: Cayman Systems Inc., Cambridge, MA
In-reply-to: cep@taligent.com's message of 5 Jan 93 19:17:45 GMT
bcc: carl


>precise definition of these.  The IRS usually takes a strict view that
>until you generate income, you aren't operating.  The Tax Court has
>been a bit more lenient, stating that as soon as you are ABLE to produce
>income, you're in business.

Hmmm, how would a self-funded start up company work then?  I can't
believe that you can't declare any deductions until you get income.
There are a lot of companies that may take several years to realize
income from research being done now.

-Carl-
--
Newsgroups: misc.taxes
From: berniem@stortek.com (Bernie Marasco x3322)
Subject: New Inheritance laws???
Summary: Inheritance law changes????
Keywords: Inheritance, 200k, 600k, step-up
Organization: StorageTek
X-Newsreader: Tin 1.1 PL5
Date: Tue, 12 Jan 1993 01:17:19 GMT


Anyone out there have crystal ball (or strong opinion)
on how our new administration is going to handle or change
the inheritance laws?  

Specifically:

1) Does anyone think that they will change the inheritance exemption from 
   600k to 200k?

2) Does anyone think that they will take away the inheritance step-up in 
			basis?



--
Bernie Marasco
bernie_marasco@stortek.com
From: newwave@desire.wright.edu
Newsgroups: misc.taxes
Subject: 2560 should read Student Loan - TAX Deductible?
Date: 12 Jan 93 21:56:24 EST
Organization:  Wright State University 


Subject field 2560 should have read "Student Loan - TAX DEDUCTIBLE?

Sorry
Newsgroups: misc.taxes
From: acheng@ncsa.uiuc.edu (Albert Cheng)
Subject: Deductible IRA for all?
Originator: acheng@shalom.ncsa.uiuc.edu
Organization: Nat'l Ctr for Supercomp App (NCSA) @ University of Illinois
Date: Tue, 12 Jan 1993 19:52:01 GMT


The Senate Finance Committee has just approved the "prospective
nomination" of Lloyd Bentsen as the Treasury Secretary.  Bentsen has
been pushing to restore fully deductible IRA for all, including people
with pension plans.  But the news reported,

    In his opening statement, Bentsen, the 1988 Democratic vice
    presidential candidate, said the challenges facing the
    incoming administration and the 103rd Congress remain the
    same: to balance spending and revenues; make the tax code
    fairer, advance U.S. trade interests; expand job training,
    increase savings and stimulate public- private investment.

"increase saving" got a 5th priority.  This taken in line with what the
Clinton Budget Director talking about the priority,

    "Budget deficit, long term structure rebuild, tax cut for
    middle class, ..."

gives me the feeling that the fully deductible IRA is dead before arrival.
Newsgroups: misc.taxes
From: larryhow@austin.ibm.com ()
Subject: No FICA for S-corp shareholders?
Originator: larryhow@larryhow.austin.ibm.com
Date: Mon, 11 Jan 1993 18:52:04 GMT
Organization: IBM Austin


I understand that S-corp shareholders don't have to pay FICA taxes (social
security) on income distributions.  But if they draw a salary from the
corporation they do.  Is this true?

Has anyone had any experience with this or does the IRS frown upon taking
distributions and no salary from an S-corp.


Newsgroups: misc.taxes
From: rkimm@ameris.ameritech.com (Robert L. Kimmel)
Subject: Re: Income tax on US citizen residing oversea?
Organization: Ameritech, Hoffman Estates, IL
Date: Wed, 6 Jan 1993 13:53:39 GMT

kurt@dna.lth.se (Kurt Swanson) writes:

>I have also heard a story about one not having to pay *ANY* income
>taxes in *EITHER* country for the first partial year of residence in
>the other country?  Any truth to this?

Well, someone I knew claimed to have done this.  She stayed out of the U.S.
the required number of days, thus getting the $70,000 exemption, and did not
pay Swedish taxes, as she did not establish a permanent residence there.  She
worked for a US company, if that makes a difference.

BK
From: colbert@s6550b.nrl.navy.mil (Mike Colbert)
Newsgroups: misc.taxes
Subject: mortgage interest
Date: 12 Jan 93 19:22:32 GMT
Organization: Naval Research Lab, Washington, DC

Hello,

I recently (Nov. '92) purchased a house.  I took a 2-1 buydown for
various reasons and now I have a question.  If I make a payment of
X dollars and there is an assistance payment of Y dollars such that the
interest payment is the same as it would be for the 3rd year's interest rate,
do I get to deduct all of that interest as mortgage interest.  I assume
I do because I am paying the assistance payments somehow.  I suppose they
came from the points which the seller and I paid.

Thanks,
Mike Colbert
Newsgroups: misc.taxes
From: acheng@ncsa.uiuc.edu (Albert Cheng)
Subject: Re: Social Security for non-citizens
Originator: acheng@shalom.ncsa.uiuc.edu
Organization: Nat'l Ctr for Supercomp App (NCSA) @ University of Illinois
Date: Mon, 11 Jan 1993 16:05:31 GMT


In article <C0K5J2.6qG@tss.com>, burke@tss.com (Jim Burke) writes:
>Well, it's like this.  The social security tax is just that - a tax.
>Someone may not agree with it, but it is a fact of our lives.  It is
>not a system into which you invest with the idea of withdrawing your
>contributions at a later time.

Ask our honorable congress reps, they all would object to your
misconception.  :-)

>The money paid in now is to support
>the people who are collecting now.  It is a social program.  In another
>country, this might be hidden in the general taxes collected on income
>for "the social good" of the country.  Since you are a participating
>member of this society, deriving benefit by being employed here, it
>seems reasonable that you should pay the same kinds of taxes as anyone
>who participates in this society.

Hm... Last I heard, all our honorable Congress Reps and President did not
pay a single dime of Federal Tax.  They are exempted from it.  I guess
you are still right, they don't participate in this society.

>It is not reasonable to allow someone
>to derive all the benefits of citizenship (other than voting) without
>the obligation of paying taxes.  Why should a non-citizen have benefits
>our own citizens don't have?

Well, non-resident aliens pay income tax (at a higher rate since they
can't take all deductions); that is okay since they are receiving some
service in return (highway, common defense, blah....)  But they cannot
receive social welfare, unemployment, or social security checks.  (Yea,
I know, none of us has any illusion that we will get any social
security when it is our turn, but that is another story.)  So, it is
fair that they should not be required to pay tax for something they are
excluded from.  I wonder if non-resident aliens contribute into the
social security, Uncle Sam may be obligated to pay them benefit later
on even if they are no longer in this country.

Newsgroups: misc.taxes
Subject: Re: Tax Programs
From: gary@cdthq.UUCP (Gary Heston)
Date: Sun, 10 Jan 93 07:51:46 CST
Organization: Garys' Home for Obsolete Computers

schmidt@LNS62.TN.CORNELL.EDU writes:

> THAT time of year is approaching again, and my mailbox is already
> filling up with solicitations to buy tax preparation programs. A
> couple of years ago when I looked at Parsons' PERSONAL TAX EDGE
> I was not impressed.  Has anyone examined this year's offering and
> care to share their opinion? (the $19 price is certainly intriguing)

I'm planning to use it this year. There was one thing that was sort
of annoying while entering one of the supporting forms--it required
a later entry on the form before it's allow you to enter one item. 
Other than that, it doesn't mark calculated fields differently from
the ones you're expected to enter, which I found to be annoying. I
figured I'd try it out this year, since I'll have mortgage interest
to deduct for the first time in years. Maybe the first time ever,
can't really remember if I could on the first house (it was cheap).
For $19, it's worth it just to run the test calculations...

Gary Heston, at home....
gary@cdthq.uucp
Newsgroups: misc.taxes
From: mjl@cypress.com (Mike La Bouff)
Subject: Mortgage Refi. Points Deduction
Originator: mjl@lunatic
Organization: Cypress Semiconductor, San Jose, CA
Distribution: usa
Date: Tue, 5 Jan 1993 18:03:47 GMT


In December 1992 I refinanced my mortgage for a second time, and
paid off the previously refinanced mortgage.  On the first round
of refinancing in November 1991 I paid 1 point which I did not
feel was worth the effort to deduct over 30 years.  (Neither
refi. was for home improvement, but simply to reduce my payment.)

The question is now that the first refinanced mortgage is retired
can I claim the point as a deduction on my 1992 return?

Mike
Newsgroups: misc.taxes
From: ioguo@mars.lerc.nasa.gov (OA Guo)
Subject: Re: Mortgage application fee declined
News-Software: VAX/VMS VNEWS 1.41    
Organization: NASA Lewis Research Center
Date:  7 Jan 1993 13:51 EDT  

In article <1993Jan7.134542.12424@pony.Ingres.COM>, pdaunno@Ingres.COM (Paul Daunno, Premium Support) writes...
>In article <7575@bigbird.hri.com.hri.com>, obrien@bigbird.hri.com                      writes...
>>I applied for a mortgage and was declined. A few months
>>later I applied for a mortgage at a different company
>>and go the loan.
>> 
>>I was wondering if I could deduct the declined fee as
>>a loss.
>The same thing happened to me.  I would also appreciate
>getting an answer on this.
> 
	It looked like that this can be classified as "THEFT" loss, :).
	Well, once you dealt with those mortgage brokers out there, you know
	most of them fall somewhere between robbers and thieves.
> 
-----------------------------------------------------------------------------
OA Guo                        |I am not only human,
NASA - Lewis Research Center  |I am also a humanist.
Cleveland, Ohio               |
Newsgroups: misc.taxes
From: ioguo@mars.lerc.nasa.gov (OA Guo)
Subject: Re: Can medical insurance be treated as a medical expense?
News-Software: VAX/VMS VNEWS 1.41    
Organization: NASA Lewis Research Center
Distribution: usa
Date:  5 Jan 1993 13:32 EDT  

In article <1ic99tINNsj8@meaddata.meaddata.com>, davidm@meaddata.com (David James Miller) writes...
>In article <5JAN199308523624@mars.lerc.nasa.gov>, ioguo@mars.lerc.nasa.gov (OA Guo) writes:
>|> In article <1993Jan4.133539.1395@nova.sarnoff.com>, jms@vision.sarnoff.com writes...
>|> >I think you can have this deducted from your paycheck BEFORE taxes.
>|> 
>|> 	NOT!!! Bad assumption.
>|> 	Please at least check your paycheck and be a little bit more sure
>|> 	before you post anything.
> 
>Maybe you should check more than just your own :)
> 
>Employers with cafeteria plans allow the payment of medical insurance prior
>to taxes, as well as the funding of a medical reimbursement account prior
>to taxes (but after FICA).

	OK, you are right.  There is a negligence in my posting.
	Thank for the info.  Actually, I knew about the so called "Flexible
	Spending" medical plans, (another name for cafeteria plans) which
	you have to "PLAN" ahead before the beginning of the year.
	Besides, not everyone is eligible for the plan.  But, I have to
	admit that the practice seems to be the standard in the industrial.
	I wish Uncle Sam gives his employees the same benifits.
> 
>David James Miller                        Architecture&Systems Evolution
>Mead Data Central, B6F3                   (513) 865-7441
>PO Box 933                                davidm@meaddata.com
>Dayton Ohio 45401                         I speak for me, not MDC
-----------------------------------------------------------------------------
OA Guo                        |I am not only human,
NASA - Lewis Research Center  |I am also a humanist.
Cleveland, Ohio               |
From: duanej@hpfcso.FC.HP.COM (Duane Jacobson)
Date: Tue, 5 Jan 1993 17:44:14 GMT
Subject: Re: Can medical insurance be treated as a medical expense?
Organization: Hewlett-Packard, Fort Collins, CO, USA
Newsgroups: misc.taxes

>Since my employer's contribution towards my medical insurance is
>not enough, a part of my income (deducted directly from my paycheck),
>goes towards the insurance.
>
>I am wondering if this contribution of mine can be treated as a medical
>expense. It only seems logical to me.
>
>Can someone please enlighten me?

At HP, payroll deductions for medical insurance are taken from pre-tax
dollars unless you specifically request otherwise.  They don't even take
FICA from these dollars.  Caveat: your Social Security benefit may be
reduced.  Well, I don't expect to receive any SS benefits.

Bottom line, if your employer does not allow you to do this, get on their
butts until they do.
Newsgroups: misc.taxes,misc.invest
From: pheanis@envmsa.eas.asu.edu (David C. Pheanis)
Subject: Re: tax on tax refund
News-Software: VAX/VMS VNEWS 1.4-b1  
Organization: Arizona State University, Tempe, AZ
Date: Mon, 11 Jan 1993 20:33:00 GMT

In article <C0pAt3.I88@taligent.com>, cep@taligent.com (Christophe Pettus) writes...
>In article <1iqr7lINNkgd@usenet.INS.CWRU.Edu> jxs18@po.CWRU.Edu (Jerry Sy) writes:
>>
>>when I receive a tax refund, it is going to be taxable the following
>>year.  my question is, if I opt not to receive the refund and carry
>>it over to next year, would I still be taxed for that ? would I be
>>better off if I do that ? assuming that I receive $600 in federal and
>>state tax refunds ?
> 
>Federal income tax refunds are taxed by neither the Federal government
>nor the States.  State income tax refunds are taxed by the Federal
>government, but not by the States.  You are taxed on a State refund
>whether or not you roll it over or take a check.
>--
>-- Christophe

     You  aren't  quite  right  when  you say that states don't tax Federal
income tax refunds.  In Arizona a person can deduct his Federal withholding
one year and then must treat a refund as income the next year to compensate
for the fact that the amount of the refund  was part of the previous year's
deduction.

   +------------------------------------------------------------------+
   |   David C. Pheanis               Computer Science & Engineering  |
   |   pheanis@envmsa.eas.asu.edu     Arizona State University        |
   |   (602) 965-7389                 Tempe, Arizona 85287-5406       |
   +------------------------------------------------------------------+
From: bdtyler3%budget%ALBNYDH2.BITNET@SHSU.edu
Newsgroups: misc.taxes
Subject: Additional State Tax Paid
Date: 12 JAN 93 09:33:00 EST
Organization: Fedtax-L<==>Misc.Taxes Gateway
X-Gateway-Source-Info: Mailing List

meltsner@crd.ge.com writes:

>Curiously enough, I don't know whether you can deduct additional state
>tax paid (under-withheld) the next year.  Have to check this one.


If you paid $XXX to <your favorite state government> on, let's say,
April 15th, 1992 for your 1991 tax bill, then you may include that
$XXX as part of your Federal Schedule A itemized deduction for tax
year 1992.  So if you had $YYYY withheld by your employer during 1992
and reported to you on your 1992 W2, you would add $XXX + $YYYY and use
that total as the 'state taxes paid' part of Sched. A.  Also add $ZZZ
State Estimated tax payments, if any.

Tom

Thomas Tyler                                 State of New York
518-474-4925                               Division of the Budget
BDTYLER3@BUDGET                                 Albany, NY.
Newsgroups: misc.taxes
From: artc@iplmail.orl.mmc.com (Art Chang)
Subject: HELP: using parents as dependents?????
Organization: Martin Marietta
Date: Mon, 4 Jan 1993 17:56:28 GMT



Have a question for all you Tax Wiz out there on
the Net Land....


My parents are getting old, and I have been giving 
them approx $10.00 last year for Medical expenses,
and living assistance!  Although they are still working
(self employed ), is it possible for me to claim those
amount as tax deduction????
HELP -> just received my 1040 form.....   YUK!
        is it that time of the year already????


thanks
Art
From: leigh.melton@ehbbs.gwinnett.com (Leigh Melton) 
Newsgroups: misc.taxes
Subject: Re: Uniform Deduction???
Date: 9 Jan 93 09:36:00 GMT
Distribution: world
Organization: Ed Hopper's BBS - Berkeley Lake, GA - 404-446-9462
Reply-To: leigh.melton@ehbbs.gwinnett.com (Leigh Melton) 


CP>It probably isn't.  The definition of a "Uniform" that the IRS usually
CP>uses is that it is "not suitable for street wear."  Basically, if you
CP>could wear it to the audit and not look weird, it's not a uniform.
CP>Just because you personally wouldn't normally wear it doesn't
CP>automatically qualify it, sadly (I'd LOVE to deduct my suit as a
CP>uniform).

Definition of uniform is that a) you are *required* to wear a
narrowly-defined (by your employer) type of clothing and b) it is not
suitable for everyday use.  While my husband SWEARS that ties are
abnormal and are not everyday use, he cannot deduct them as they are
acceptable in a non-work setting.  However, if you are a waitperson and
are required to wear white polyester and white shoes and white apron and
white cap and white everything else, you can deduct this as a uniform
because it would not be suitable for a non-work setting.

You could deduct your suit under certain circumstances.  If your
employer requires you to wear a purple suit with green shirt and red
socks and blue shoes and a fez, then even though those things in and of
themselves are not necessarily *that* weird (except maybe the fez), the
fact that your employer requires you to wear this narrowly-defined type
of clothing makes it a uniform, and therefore deductible.

L.


disclaimer:  this is not meant as professional tax advice, and should
not be treated as such till world's end amen
---
 . SLMR 2.1a . 162.55 mhz-It's not just a frequency-it's the weather.
                            
----
+-----------------------------------------------------------------------+
|       Ed Hopper's BBS - ehbbs.gwinnett.com - Atlanta, Georgia         |
|  USR/HST: 404-446-9462                  V.32bis: 404-446-9465         |
+-----------------------------------------------------------------------+
Newsgroups: misc.taxes
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Subject: Re: EE Bonds
Organization: AT&T Bell Laboratories,  Columbus, Ohio
Distribution: usa
Date: Sat, 9 Jan 1993 20:30:31 GMT

In article <93009.103440MBADBH@rohvm1.rohmhaas.com> David B. Horvath, CDP <MBADBH@rohvm1.rohmhaas.com> writes:
>I remember hearing that you could avoid taxes on the interest of US Savings
>Bonds (EE and ?HH?) by using the bonds to pay for education.  I'm always

Just EE, not HH.  Just EE bought recently (I think 1/1/91 (??) or
later)

>taking one course or another (professional development, personal development,
>degree) - to me, it sounds like a great deal.
>
>Is the education exemption for self and dependents only? Or is it a general


Yes.  And you have to meet some income restrictions.  If you're too
high paid, forget the exemption.

>exemption so long as the money is used for education?  Could I "buy" a course
>for a friend/niece/nephew using money from a savings bond and avoid the tax on
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
Newsgroups: misc.taxes
From: cep@taligent.com (Christophe Pettus)
Subject: Re: partnerships and partnership income
Organization: Taligent, a little subsidiary of two really big companies.
Distribution: usa
Date: Mon, 4 Jan 1993 19:57:28 GMT

In article <1993Jan1.011942.29494@samba.oit.unc.edu> Norman.Yee@launchpad.unc.edu (Norman Yee) writes:
> 1) Does profit always have to be distributed to the partners at the
>    end of the year?

Yes.  A partnership shows no income or loss to itself for tax purposes;
the income or loss is always passed on to the partners.  Note that this
doesn't mean you have to take the money out of the partnership and give
it to the partners, just that the partners declare the profit or loss
for tax purposes rather than the partnership.

> 2) If the profit is left in the partnership's bank account, is the
>    interest counted as income if (1) is true?

The interest on deposits of the partnership is just like any other income.

> 3) Is cash method accounting better than acrual accounting?

"Better" is a funny term.  Cash accounting is usually easier to manage
than accrual accounting, but they are appropriate for different
circumstances.

> 4) What benefits does a partnership have over a sole proprietorship?

Partners.  No, really.  A partnership allows more than one person to legally
own the businesses without having to create a corporation and issue stock.
In a sole proprietorship, the proprietor IS the business, and no other kind
of owners are allowed; in a partnership, each of the general partners is an
owner, and can do owner things in the business. 

> 5) Does a partnership need a name?

Yes.  It is usually something like "John Smith, Jane Doe, and Robert
Dudley, a California Partnership."

> 6) Is a lawyer needed to form a partnership?

Nope.  I recommend the Nolo Press book on Partnerships; it's great.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
Newsgroups: misc.taxes
From: ljr@mitre.org (Luke J. Rheaume)
Subject: Re: Deductability of Housing Costs?
Followup-To: misc.taxes
Organization: The MITRE Corporation - Bedford, MA
Distribution: usa
Date: Thu, 7 Jan 1993 13:38:25 GMT

In article <1993Jan6.160702.10784@hemlock.cray.com>, bstrand@cray.com (Brad
Strand) wrote:
> 
> I employ a babysitter to care for my son in my home.  I have tried
> to do everything "by the book" with this arrangement:  I have 
> acquired State and Federal Employee numbers; I file quarterly returns
> with both the state and the IRS for FICA, FUTA, and withheld income
> taxes; I write W-2's for the babysitter, etc.
> 
> Can I deduct any of my household expenses (eg, mortgage, heating, etc.)
> as "business expenses"?
> 
> For example:  If the babysitter works 4 days per week, 9 hours per day
> can I claim (4 * 9)/(7 * 24) = 21.4% of my household expenses to be
> deductible business expenses?
> 
> ...

I would have paid the babysitter and taken the Child Care Credit (let the
babysitter file a Schedule C and get her own deductions [like mileage from
her home to yours]).

If you were running a business (Day Care) in your home, you'd be able to
take the Business Use of Home deduction (Form 8829) on your Schedule C, but
your employee would have to take in some others - paying customers - and
generate some revenue.


Standard Disclaimer Applies:  These are my opinions, not my employers.

Luke J. Rheaume, Member of the Technical Staff
The MITRE Corporation, Strategic Surveillance Systems
202 Burlington Rd., MS M322
Bedford, MA 01730-1420
From: bdtyler3%budget%ALBNYDH2.BITNET@SHSU.edu
Newsgroups: misc.taxes
Subject: CONSULTING and TAXES
Date: 12 JAN 93 09:20:51 EST
Organization: Fedtax-L<==>Misc.Taxes Gateway
X-Gateway-Source-Info: Mailing List

obrien@hri(Jim Obrien) says:

>During the summer I was consulting part
>time for a few nights at small computer
>comany. This is the first time I have done
>part time work this way. Now that its tax time
>I'm not sure what to do. It looks like I should
>file a Schedule SE form, but is this the only way?
>If so, I think I will ask my part time employer to
>pay me as a part time emplyee from now on.

Did the 'employer' give you a W2 or a 1099 with Miscellaneous
Income?  I see a lot of people who find out in January that they
were in business for themselves (much to their surprise!) when they
get a 1099 Misc. Income statement.  But as someone has already stated,
this may not neccessarily be bad.  It just means that you should
carefully find deductions to offset the 'business' gross income.
Also you may want to check out the new Federal Schedule C-EZ form.
I believe it's intended for situations such as you have represented.
If you end up with 'self-employment' income of $400 or more, then you
get to complete Federal Schedule SE to compute Self-Employment (Social
Security Tax).  Unfortunately, it then will become apparent why the
'employer' chose to pay you this way!

Tom

Thomas Tyler                                 State of New York
518-474-4925                               Division of the Budget
BDTYLER3@BUDGET                                 Albany, NY.