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Posted by removeps-groups@yahoo.com on June 26, 2008, 11:17 am
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On Jun 26, 3:23 am, rdad...@panix.com (Dick Adams) wrote:
> What are your "not well documented" expenses? Credit
> card bills may be adequate documentation.
They're usually not sufficient. The IRS want the actual receipt from
the store showing the items purchased or meals ordered, number of
people present (for meals). However, if you have receipts for
everything but are missing the receipt for $20 from say USPS, but it
is on your credit card statement, then you could probably use the
credit card statement for this one item and it would likely be OK.
--
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Posted by techjohnny@gmail.com on June 26, 2008, 2:14 pm
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On Jun 26, 3:23 am, rdad...@panix.com (Dick Adams) wrote:
> > rdad...@panix.com (Dick Adams) wrote:
> >>> So if I report $3000 in expenses can I include all of these
> >>> in my deductions to nullify my increase in income?
> >> Everyone here is pro-taxpayer. So please explain your
> >> $3,000 in expenses and how they are documented.
> > Well... I guess I should pay the taxes now. The deductions
> > aren't well documented. Travel expenses and computer equipment,
> > i.e, laptop are probably the only two legit deductions.
>
> What are your "not well documented" expenses? Credit
> card bills may be adequate documentation.
>
> Dick
I don't have a receipt for the laptop, had it for several years, and
believe it would be difficult to locate all the receipts for gas
required to travel back and fourth. It's about a 20-mile drive from
my house, and I made the trip about 20 times during that year (1996).
If I decide to make the amendment, I will have to pay the 15.3 for the
self-employment tax, which is 320, and then I have the extra income
tax, which is $420, the interest at $80, and the IRS is going to
charge me $52 to do a direct debit. So, what do you pro-tax experts
think realistically, I can save from the $420 tax for increase income
using the maximum allowed deductibles, and that is if they accept it
with little proof?
$370 - self-employment tax (HAVE TO PAY)
$52 - direct debit (HAVE TO PAY)
$80 - interest (HAVE TO PAY)
$420 - tax for increase in income, with the maximum allowed
deductibles, how much can I decrease this by?
Many regards,
--tj
========================================= MODERATOR'S COMMENT:
How much do you owe and, if relatively small, you can pay over,
say, three consecutive months. That would allow you to avoid an
installment plan and any fees associated with such plan.
So far as a recommendation: Declare all income correctly as well as all
deductions you can back up, and start savings and logging receipts.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by removeps-groups@yahoo.com on June 27, 2008, 12:17 pm
Please log in for more thread options wrote:
> I don't have a receipt for the laptop, had it for several years, and
> believe it would be difficult to locate all the receipts for gas
> required to travel back and fourth. It's about a 20-mile drive from
> my house, and I made the trip about 20 times during that year (1996).
If you can document that you made those trips then you can take
standard mileage. You could for example use invoices to prove that
you went to a certain place, some proof where your home was (like your
property tax statement or apartment lease contract), then use google
maps to figure out the one-way distance and multiply by 2, then by
20. When you take the standard mileage, you cannot take depreciation
and gasoline expenses as those are already built into the standard
mileage rate. You can also deduct money for additional repairs (but
only the business portion of it). You can also deduct tolls, if any,
on the trip.
In 2008, the standard mileage rate is 50.5 cents a file from January
to June, and 58.5 cents a mile from July to December. For 1996 it
must have been something less than 31.5 cents a mile.
http://www.irs.ustreas.gov/taxpros/article/0,,id=156624,00.html
Maybe in 1996 it was 31 cents a mile. See line 1 in
http://ftp.irs.gov/pub/irs-prior/f2106ez--1996.pdf.
Your original post mentioned 2006.
> If I decide to make the amendment, I will have to pay the 15.3 for the
> self-employment tax, which is 320, and then I have the extra income
> tax, which is $420, the interest at $80, and the IRS is going to
> charge me $52 to do a direct debit. So, what do you pro-tax experts
> think realistically, I can save from the $420 tax for increase income
> using the maximum allowed deductibles, and that is if they accept it
> with little proof?
> $370 - self-employment tax (HAVE TO PAY)
> $52 - direct debit (HAVE TO PAY)
> $80 - interest (HAVE TO PAY)
> $420 - tax for increase in income, with the maximum allowed
> deductibles, how much can I decrease this by?
If you are able to take the deductions for mileage and laptop you'll
reduce SE tax, regular tax, and interest. Mileage would be .31*(20
trips)*(20 miles one way)*2 = 248. Laptop might be $1000, so about
$200 a year. The savings in SE tax would be about $69, and in the
regular tax about $77.
However, if you did deduct the laptop, you have to do so over 5 years,
so you'd need amended returns for 1997 through 2000 to claim the $200
per year. The IRS would owe you interest on this $200. It's quite
messy paperwork though.
If you pay the tax bill in full, there will be no need for an
installment plan, so you don't have to pay the $52 at all.
Just wondering, is there also a penalty, or is that included in the
interest of $80?
However, this was for 1996? The IRS has 3 years from the date you
filed your return to begin proceedings in general, and 6 years if you
omitted income in excess of 25%. I'm guessing that the former would
be applying to you, and the IRS could not begin proceedings.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on June 27, 2008, 12:39 pm
Please log in for more thread options removeps-groups@yahoo.com wrote:
> wrote:
>
>> I don't have a receipt for the laptop, had it for several years, and
>> believe it would be difficult to locate all the receipts for gas
>> required to travel back and fourth. It's about a 20-mile drive from
>> my house, and I made the trip about 20 times during that year (1996).
>
> If you can document that you made those trips then you can take
> standard mileage. You could for example use invoices to prove that
> you went to a certain place, some proof where your home was (like your
> property tax statement or apartment lease contract), then use google
> maps to figure out the one-way distance and multiply by 2, then by
> 20. When you take the standard mileage, you cannot take depreciation
> and gasoline expenses as those are already built into the standard
> mileage rate. You can also deduct money for additional repairs (but
> only the business portion of it). You can also deduct tolls, if any,
> on the trip.
(balance snipped....)
Ah but remember that to deduct mileage, one must be traveling away from
principal place of business. Given the facts in this case, that
he ".. basically went to the business and helped them with their
computers,..."
This means principal place of activity was at that one and ONLY
customer's site and not at his home, office or no.
Travel is non deductible.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by techjohnny@gmail.com on June 27, 2008, 1:05 pm
Please log in for more thread options > removeps-gro...@yahoo.com wrote:
> > wrote:
>
> >> I don't have a receipt for the laptop, had it for several years, and
> >> believe it would be difficult to locate all the receipts for gas
> >> required to travel back and fourth. It's about a 20-mile drive from
> >> my house, and I made the trip about 20 times during that year (1996).
>
> > If you can document that you made those trips then you can take
> > standard mileage. You could for example use invoices to prove that
> > you went to a certain place, some proof where your home was (like your
> > property tax statement or apartment lease contract), then use google
> > maps to figure out the one-way distance and multiply by 2, then by
> > 20. When you take the standard mileage, you cannot take depreciation
> > and gasoline expenses as those are already built into the standard
> > mileage rate. You can also deduct money for additional repairs (but
> > only the business portion of it). You can also deduct tolls, if any,
> > on the trip.
>
> (balance snipped....)
>
> Ah but remember that to deduct mileage, one must be traveling away from
> principal place of business. Given the facts in this case, that
> he ".. basically went to the business and helped them with their
> computers,..."
> This means principal place of activity was at that one and ONLY
> customer's site and not at his home, office or no.
>
> Travel is non deductible.
>
> ChEAr$,
> Harlan Lunsford, EA n LA
Can't I just start sending payments of say $180/mnt without filling
out the Installment plan and having to pay the $53 for the direct
debit? Don't they accept money orders?
--tj
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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