About speedway121

speedway121 · ‎June 19, 2019

am I required to file MFS for each spouse? I had CA sourced income but I am a CA non resident. Spouse is full year CA resident. Am I REQUIRED TO FILE A CA MFS? or can I do a MFJ?

speedway121 · ‎June 19, 2019

Do I file the final tax return in 2018 or 2019? Business wound down in 2018 (I didnt pay CA the $800 LLC fee in2019). 1099 is coming in 2019. Which year do I check the box as "final tax return" ????

speedway121 · ‎June 19, 2019

I am a TX Resident. My W2 is from Texas company, and I have a W2 with box 12 HSA stating contribution of $6900. I am filing MFJ in CA, I am a non resident and wife is a full year resident. CA is classifying my 6900 contribution as taxable income (added back on SCHEDULE CA line 7). Shouldnt this be 0? the HSA is in my name and my property not my wife's? Or should this be 50% of $6900 as it is community property?

speedway121 · ‎June 19, 2019

I am winding down / closing down the business- and no further activity will happen in 2019 apart from the 1099 that will come in 2019. Make sure you circle back with the Calif Franchise Board or the Secretary of State to close the business. What do you mean, apart from letting the state of CA that the business is no longer active? and closing down the LLC?

speedway121 · ‎June 14, 2019

New business owner here. I started a LLC in CA in 2018 which costs $800 per year. I did not file my 2018 return yet (extension) I performed work in 2018 for a client for $750. Did not receive the money until 2019. I have not decided if I am going to use cash or accrual method accounting for the business. I had to wind down the business in 2018. I did not pay the $800 fee to CA to renew the business for 2019. I have 2 options as I see it, but dont know which is right? Option A: File 2018 return Schedule C for business as ACCRUAL method accounting, take into account the revenue 750. In 2019, I will receive a 1099 for the money. Recognize the 1099 on the 2019 return and then note that the money was taxed in 2018 (and effectively zero out the income for 2019)?? Option B: File 2018 return Schedule C for business as CASH method accounting, 0 revenue for 2018. In 2019, I will receive a 1099 for the money. Recognize the 1099 on the 2019 return. Are there pro’s and con’s to either of these? option B seems like a cleaner method to follow, and it does put me at a slight disadvantage economically as I will be in a higher tax bracket in 2019."

speedway121 · ‎June 6, 2019

@Critter#2 is this a IRS rule? I am in the exact same situation. I lived in TX 1/1-12/31 and wife lived in TX 1/1-9/31 and in CA 10/1-12/31.

speedway121 · ‎June 5, 2019

@TaxGuyBill Does this mean I can put in a number for the rental expense? You said above to put in a 2500 rental expense, but how do I go about calculating the exact number. This is for the primary residence which I am taking the mortgage interest deduction on SCH A.

speedway121 · ‎June 5, 2019

@TaxGuyBill I just manually reviewed the "Employee Home Office Worksheet". I am specifically looking at lines 25 vs line 34. This is for the primary residence Home office, the house which I own and had a home office in for 3 months out of 12 months. Line 25= Takes into account all the deductible mortgage interest, and real estate taxes. ($25,000) (Note this includes the TOTAL mortgage interest and Real Estate taxes paid, TT did not prorate this). Line 34=Insurance, Rent, Repairs, Utilities, Other expenses. A Percentage of this total. No RENT. ($300) And eventually line 35 ("Take the smaller of line 25 or line 34") So I guess I am getting pretty screwed here becauseI am required to take Line 34 (the $300) vs the $25000 as the allowable operating expenses. You mentioned earlier that "Mortgage Interest and Real Estate Taxes basically skip Form 2106, and go directly on Schedule A. So you can just enter the $2500 as a rental expense, and $7500 as an Itemized deduction on Schedule A" Can I just consider it a rental expense which culminates on Line 34? How much do I put on there?

speedway121 · ‎June 5, 2019

@TaxGuyBill Does the home office worksheet get transmitted to the IRS? I thought it was just for our records. Essentially how we came up to the home office deduction number. I looked thru a tax return from 2014 and my accountant transmitted the worksheet with the return (it looks like). TT says "for your records" on the home office worksheet. Any idea if this gets transmitted to the iRS?

speedway121 · ‎June 5, 2019

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CA- Wife is a full year CA resident. I am a full...

Re: Business Cash v Accrued, payment received afte...

I am a TX Resident, Wife is CA Resident. HSA is ge...

Re: Business Cash v Accrued, payment received afte...

Business Cash v Accrued, payment received after bu...

@Critter#2 is this a IRS rule? I am in the exact s...

@TaxGuyBill Does this mean I can put in a number f...

@TaxGuyBill I just manually reviewed the "Employee...

@TaxGuyBill Does the home office worksheet get tra...

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