The Tax Preparation Blog

Archive for January, 2009

Question: If I buy a car eBay, do I have to pay sales tax?

I know that currently you do not pay sales tax for products purchased online that do not have nexus in the state at which you reside. If I do the same with a car will I save on sales tax? I would think so but I’m pretty sure there is a fee you pay as a percentage at the time of registration. If you buy on eBay how do they know the amount you paid for the car? I’m weighing the tax benefits of buying a car online verses going to the dealer and just seeing if any exist.

thanks

Answer: Not from buying from the third party, but when you get it titled and tagged you will have to pay your state auto sales tax, which is figured from kelley blue book value.

If you buy the vehicle from a dealer you pay the tax, tags, and title fees in with the final value of the car.

A third party you will pay tax, tags, and title at the county clerk or DMV.. wherever you get your registration.

Motel is proposed as shelter for alcoholics

An old motel on the edge of Fairview may get new life as a permanent home for chronic street alcoholics — a way out of homeless shelters and camps in the woods for people who want something better, even if they are not yet ready to quit drinking.

dvla car tax prize draw con? fraud?

Question: How to calculate capital gain tax,short term and long term due to sale of house property.How to deposit the ta?

As per income tax rules

Answer: Read about capital gains in the web link given below:

http://www.incometaxbangalore.org/taxinfo/capitalgains.htm

China to tax sales of restricted shares

BEIJING, CHINA – China will impose a 20 percent tax on income from the sale of restricted shares, effective Jan. 1, the official Xinhua news agency reported on Thursday, in a move that could offer stability to the stock market.

New Tax Rules for Short Sales – Foreclosures

Question: Finance/Accounting Question. How do you calculate?

Yes Corporation has sales of $15,000,000, cost of goods sold of $6,000,000, selling and administrative costs of $2,500,000, and depreciation expense of $500,000. Yes also paid $200,000 of interest expense and received $150,000 of dividends from other corporations. Yes had a long-term capital gain of $400,000 and paid dividends of $250,000 to its common shareholders.

What is the Net Income?

What is the federal income tax liability?

Please show calculations.

Answer: Net income:
Sales – $15M
Less COGS – (6M)
Less G&A – (2.5M)
Less Depr – (.5M)
Less Interest – (.2M)
Plus Dividends (assume 30% are taxable) – 45k
Plus Capital gain – 400k

So…I’m going to go with 6,245,000 as taxable income
Which would produce tax of $2,123,300 at 34%

Spansion Inc. Reports Third Quarter 2009 Results

Spansion Inc. today announced operating results for its quarter and nine months ended September 27, 2009. Â Spansion reported third quarter of 2009 net sales of $327.6 million, which reflects the company’s refined focus and decision to concentrate primarily on embedded and targeted wireless applications. Â The company generated net income on a U.S.

Dr. Rutledge on the Bailout/ ATR’s 401k Election Calculator

The history of lottery in Canada is a short one but very interesting. Although the lottery is thriving very well right now in Canada, before 1967, it was not allowed by law to buy a ticket of the Irish Sweepstakes. The Government of Canada came up with an Omnibus bill in 1967 which was to take care of all laws which had turned obsolete and outdated. This bill was sponsored by the Minister of Justice – Pierre-Elliot Trudeau. He made an announcement that the government would make changes which were required so that the stand on lotteries in Canada too could become very clear.

While this was going on, the mayor of Montreal – Jean Drapeau, came up with a way to recover the money which had been incurred on the World’s Fair and the subway system which had been introduced out there. It was considered to be a sort of a voluntary tax to be paid by the public. In return for a payment $2 which would be donated, a player could take part in a $100,000 prize draw. Drapeau didn’t consider this draw to be a form of lottery as the winners were given silver bars as prizes. Also the people who qualified in the first draw would then have to answer four questions correctly so that they could actually win the prize in the second draw. The first draw was held on May 27, 1968.

This voluntary tax started a series of debates in Ottawa and Quebec City whether such a type of voluntary tax was actually legal. While the Minister of Justice considered it to be a kind of lottery, Drapeau stuck to his argument saying that it didn’t break any federal law. During this time of heated debates regarding the status of the voluntary tax, the monthly draws continued without facing any problems. It got participation from other parts of the world like Asia, Europe and the United States. Of course it had players throughout Canada taking part in it.

In 1968, the Quebec Appeal Court considered Drapeau’s voluntary tax to be breaking the law. But this verdict was not accepted by the mayor and he decided to appeal to the Supreme Court. Even as the debate continued further, the sales of this voluntary tax reduced drastically. Finally, on December 23, 1969 the government was allowed to run lottery systems by law after a suitable amendment was made in the country’s Criminal Code.

This led the way to the introduction of the first provincial lottery in 1970 – Quebec’s Inter-Loto. Once this happened, the other provinces too came up with their own versions of lotteries. The government of Canada was able to get much needed revenue so that the expenses spent on the 1976 Summer Olympics could be recovered by it. This lottery was known as the Olympic Lottery and run by the Government in the late 1970’s. Right now there are two national lotteries running in Canada – they are the Lotto 6/49, and the Lotto Super 7. Both of them are doing well in Canada.

10 stories to watch in 2010

A new year means a new opportunity for our reporters and photographers to inform our readers of the issues affecting Maine. Here are some of the stories we’ll be following.

Canada Revenue Agency uses YouTube to convince Canadians to pay taxes

Taxes can be overwhelming which is why there is such a large market for tax preparation services. There are many different types of tax preparers and each title has certain requirements that must be maintained in order to establish its position. Below is a brief introduction to the different types of tax preparers available as well as some general tips on what to look for when choosing the right one to prepare your taxes.

General Tax Preparer

There are several different routes that are taken to become a general tax preparer. For larger companies like H&R Block or Jackson Hewitt, they will provide their employees with training on how to serve customers with their tax needs and how to spot common tax return errors and omissions.

Enrolled Agent

Enrolled agents are required by the IRS to have 72 hours of professional education every three years to retain their designation after passing a standardized test.

Certified Public Accountant (CPA)

To become a CPA requires about five years of school and a very rigorous test. There are many different options when it comes to filing your taxes every year and with better software and training coming out, the process has become a much smaller headache.

How to Choose

When there are this many options to have your taxes done, the hiring process of a preparer becomes a contest of who is the most qualified. People will trust brands that they see on TV or advertisements, or perhaps they will seek out an accounting educated individual for advice or expertise.

By obtaining more knowledge on taxes and the different requirements that each preparer must go through in order to obtain their designation, you will have a better foundation on which to make your tax preparation decision when it comes time to hire a tax preparer.

Proper Credentials and Liability Coverage

Although a tax preparer’s certifications and awards are one metric to base your decision on, one of the most important factors is whether or not they are covered with liability insurance.

If you’re thinking about outsourcing your tax preparation this year, make sure that the preparer is covered with reliable insurance. This is a good indication that they take their job seriously and that if there are any errors or omissions with your tax documents, that there will be insurance coverage to resolve your dispute.

Big changes for Tupelo in 2010

TUPELO – Expect 2010 to bring a wave of changes to the city that could alter not only its character but its boundaries. Nothing will happen overnight. But in the course of the next 12 months, Tupelo will engage in a series of projects meant to boost its quality of life and expand its tax base.

Tax Lien Training Session2: part2