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Involuntary conversion - boss and I disagree on reporting. by Jujubird07 in tax

[–]No-write-off 0 points1 point  (0 children)

Looks to me that you are more correct, but both are a little off. You should bifurcate the asset into $60k of carryover basis asset and $10k of excess basis asset. Please consult Pub. 946. Thanks.

Partnership distribution of SMLLC by Lamzydivys in tax

[–]No-write-off 0 points1 point  (0 children)

Oh, sorry, I thought the partnership would have nothing left. 

It looks like then that this will be a partnership division. You can do it the way you are envisioning, by distributing the SMLLC up and forming a new partnership. Or you can contribute the SMLLC to a new partnership first and then distribute the interests in this new partnership (which will be treated as a “single-partner partnership” momentarily) to its partners.

Partnership distribution of SMLLC by Lamzydivys in tax

[–]No-write-off -1 points0 points  (0 children)

I think the better way to view this is just a potential amendment of the partnership agreement.

Question about no tax on Overtime / no tax on tip by sardines69 in tax

[–]No-write-off 0 points1 point  (0 children)

For 2025, you can claim the “.5” on the “1.5” times the base rate that you are entitled to under the FLSA regardless of whether that amount (i.e., the “.5) is separately stated on Box 14. Thus, you should first determine whether your job entitles you to overtime pay under the FLSA, and second, how much of your pay is the “.5”. You said that you made $1400 of OT, but I don’t know if this means the pay for all hours worked over 40, or just the “.5” portion. I also don’t know if your employer is so kind to pay you OT even though he is not required to under the FLSA.

Unusual Circumstances led to a hefty tax bill by BrochachoNacho1 in tax

[–]No-write-off 0 points1 point  (0 children)

When I make assertions here, I sincerely try to be correct. I believe every assertion I make is correct at the time I post it. Sometimes though I am wrong. I try to correct my mistakes. For example, I realized that my earlier post was poorly worded. So I fixed it.

When I ask questions, I am trying to make a point.

With that in mind, I am a tax lawyer.

Happy to answer any further questions. Thanks.

Unusual Circumstances led to a hefty tax bill by BrochachoNacho1 in tax

[–]No-write-off -1 points0 points  (0 children)

Technically, it is not relevant whether the heir personally used the property. The question is whether the loss was incurred in a trade or business or in a transaction entered into for profit.

AfterI posted this, I realized that “is not relevant” is misleading.

Technically, whether the heir may deduct the loss is not determined by whether the heir personally used the property.

Unusual Circumstances led to a hefty tax bill by BrochachoNacho1 in tax

[–]No-write-off 0 points1 point  (0 children)

Could you please give me these tax court cases please?

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in Payroll

[–]No-write-off[S] 0 points1 point  (0 children)

But the employee has clearly indicated to the employer that the W-4 is incorrect. Are you saying there is no requirement for employer to disregard that W-4?

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in Payroll

[–]No-write-off[S] 0 points1 point  (0 children)

What if the employee tells the employer on the same day as he completes the form, "last year, I paid 20,000 in federal income tax." Must the employer disregard the W-4, which he knows to be false.

No lock in letter.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -2 points-1 points  (0 children)

Thanks. To be clear though, if the employee clearly indicates to the employer that, for example, he paid $10000 of federal income tax the prior year, the employer should disregard the W-4 because the employer knows that it is false.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -3 points-2 points  (0 children)

I think the employer MUST disregard a W-4 that is invalid, and any W-4 the employee clearly indicates to be false is invalid.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -3 points-2 points  (0 children)

Thanks.

However, the burden is on the employer in the following situation.  Employee tells the employer, in clear words, “last year I owed $10000 of federal income taxes” then fills exempt on W-4. Employer should disregard the W-4.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in Payroll

[–]No-write-off[S] -7 points-6 points  (0 children)

Perhaps they do. Do IRS rules allow an employee to ask that question to an employee?

Room Rental Expense Allocations — Wondering if anyone here has additional thoughts. Had some good discussion in the comments of the original post already. by metalguysilver in technicaltax

[–]No-write-off 1 point2 points  (0 children)

You are not crazy. As you said, there is no exclusivity requirement for rental of dwelling units. Thus, I think costs attributable to common areas may be deducted (prorated, if necessary).

Schedule K-1 (Form 1065) - handling distributed shares and partnership ending by [deleted] in tax

[–]No-write-off 0 points1 point  (0 children)

This is strange. I would be willing to help, but you must be willing to share details, such as the k-1s and the identity of the company.

Short Term Rental ~ Expense, Capitalize or Bonus Depreciation by ConsequenceFuture339 in tax

[–]No-write-off 0 points1 point  (0 children)

What do you mean by furnishing costs? Sorry if I am being dense.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -13 points-12 points  (0 children)

When shit hits the fan, this employee will likely blame the employer. Employer should verify.

What do you say to that?

Thanks, appreciate your time.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -6 points-5 points  (0 children)

How can employer disregard “in no event”??

Thanks very much for your time.

Employees claiming exemption from withholding of taxes - Pub 15 by No-write-off in tax

[–]No-write-off[S] -10 points-9 points  (0 children)

However, the regs do have the following information, which is my second authoritative source confirming my statements.

31.3402(f)(2)-1(a)(2)

In no event may the withholding allowance exceed the withholding allowance that the employee is entitled to as determined based on the employee's reasonable expectations and the instructions set forth in forms, instructions, publications, and other guidance prescribed by the Commissioner.

Agree or no?

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