wow thanks for the info. Yea it should, especially for purchased made at like Staples with the reward card or OD with the advantage card and shopping with the AMEX 1% back card.

But I guess a lot people who sell like small stuff or little quantity on eBay doesn't really file that as a self-employment and they don't usually account for the small profit that they make though.

dcwilbur said:lostdude said:Yes, interest on a loan for your primary residence is tax-deductable.Interest on a loan to PURCHASE your primary residence is tax-deductable. Interest deductions on a cash out refinance are generally going to be limited to the first $100k unless you are putting the money into the house.

That's what the IRS pubs seem to indicate, however, the bank reports interest paid on 1099 without loan amounts on it. How does the IRS track this?

Any professional tax preparers on here use Proseries software? I just ordered it after reviewing a trial of it... seems pretty good but I only know one CPA who uses it. Would welcome any opinions or complaints on it.

wdsaltman95 said:RishiTheGreat said:wdsaltman95 said: I don't understand your logic. Why would she not exercise her options simply because the underlying asset of the derivative is not publicly traded?? People do it all the time and make lots of money doing so.

Hi, I was under the impression that these options are a benefit only if the company goes public some day. If she exercises the options and buys the stock from the company, who can she sell it to?

Hi. You did not mention this point in your previous post. While a private company may issue options such as you describe (& may be the type that your wife received), those are not the only ones. Private company options are usually just used as a part of a deferred compensation plan. The company issues the options to the employee with a set strike price (usually at a discount) and date. Sometimes an employee may excercise & keep the stock and other times a 'concurrent' excercise and sale must occur. While there is no "market" for the private company stock, that certainly does not mean that it does not have value. The company will have some sort of documentation identifying how it chooses to value it's own stock for the purpose of repurchase that would be associated with any option agreements...this could be an EBITDA (earnings before interest, taxes, depreciation & amortization) multiple, some sort of free-cash flow multiple or any number of methods. The company is then bound to purchase the stock from the employee at the price dictated by the prescribed valuation method.

thanks a lot wdsaltman!! I will ask my wife to verify with her company if she can actually exercise and sell. Since the strike price and the date is fixed, does it make sense to exercise these options just to hold the stock?.

richardyc said:with the 31st being on a sataurday, when is the earliest I can sell my stock this year so I won't have to pay any capital gain tax until next yr? Is it still T+2? my guess is on the 29th, just wanna double check with you guys here.

January 2, 2006.

Capital gains are figured based on trade date, not settlement date, which is what you seem to be referring to. Look at the Schedule D instructions to doublecheck.

malakito.

By the same token, we SHOULD account for FatCash, Cash Back rebates on credit card purchases for items resold, etc. But that gets into REALLY ugly accounting.

I use the cash method for my LLC accounting which sometimes resells items acquired from stores offering FatCash. I'm wondering if any one has an opinion on WHEN I should recognize the FatCash and reduce my cost basis:
A) When I actually clickthrough and buy the goods through FatCash (i.e. before I receive the FatCash)
B) When Fatwallet reflects the PENDING CashBack value (but before the ~ 90 day waiting period)
C) When Fatwallet says the funds are AVAILABLE to withdraw (i.e. after ~ 90 days after the sale)
D) When I actually request the funds from Fatwallet (usually within a week or two FW tells me they are available)
E) When I actually receive my refund and deposit into my personal account

This makes a difference to me in how much income I reflect in 2005 so would appreciate anybody's insight. I am leaning toward C,D, or E.

Robat said:Any professional tax preparers on here use Proseries software? I just ordered it after reviewing a trial of it... seems pretty good but I only know one CPA who uses it. Would welcome any opinions or complaints on it.

i'm not really a professional tax preparer , but I have worked at a tax office for the past several years. Proseries is low cost, and it does it job well. But our office actually prefer Lacerte, even though it cost more but Lacerte is easier to use and most of the items in there are very carefully explained. ProSeries is not a bad, but it tougher to find things for long form. Its not my choice to make on buying the software though so, I guess the office that I worked for prefer LaCerte more.

mrcheapskate said:By the same token, we SHOULD account for FatCash, Cash Back rebates on credit card purchases for items resold, etc. But that gets into REALLY ugly accounting.

I use the cash method for my LLC accounting which sometimes resells items acquired from stores offering FatCash. I'm wondering if any one has an opinion on WHEN I should recognize the FatCash and reduce my cost basis:
A) When I actually clickthrough and buy the goods through FatCash (i.e. before I receive the FatCash)
B) When Fatwallet reflects the PENDING CashBack value (but before the ~ 90 day waiting period)
C) When Fatwallet says the funds are AVAILABLE to withdraw (i.e. after ~ 90 days after the sale)
D) When I actually request the funds from Fatwallet (usually within a week or two FW tells me they are available)
E) When I actually receive my refund and deposit into my personal account

This makes a difference to me in how much income I reflect in 2005 so would appreciate anybody's insight. I am leaning toward C,D, or E.

google "constructive receipt"

malakito

AznAirMax said:Robat said:Any professional tax preparers on here use Proseries software? I just ordered it after reviewing a trial of it... seems pretty good but I only know one CPA who uses it. Would welcome any opinions or complaints on it.

i'm not really a professional tax preparer , but I have worked at a tax office for the past several years. Proseries is low cost, and it does it job well. But our office actually prefer Lacerte, even though it cost more but Lacerte is easier to use and most of the items in there are very carefully explained. ProSeries is not a bad, but it tougher to find things for long form. Its not my choice to make on buying the software though so, I guess the office that I worked for prefer LaCerte more.

Thanks for the feedback. I actually was torn between Lacerte and Proseries since they are both made by Intuit and interface with QuickBooks, also made by Intuit, which many of my clients use. I basically thought Proseries was "good enough" for the much lower price than Lacerte. Can't say for sure yet though... I ordered it 2 weeks ago and still haven't gotten it!

ykh said:Is there a way to get deduction for commuting to and from work?

I know that deduction only apply if meet the following two criterias: You are a small business owner or self-employed person, and You have two offices or work locations: one outside the home (Office #1) and one inside the home (Office #2).

Thanks.

You've already answered your own question though your answer is not entirely correct. The deduction is actually for travel from one place of business & another place of business. You don't have to be self-employed nor a small business owner. If you're self-employed, it's self explanatory. If you're employed by another, then deductibility would only require that your employer did not reimburse you for the travel expenses incurred from one business location to another.

Neither does deductibility require one office be in the home...it's simply two places of business, one of which is your "tax home".