From: owner-persfin-digest@lists.xmission.com (persfin-digest) To: persfin-digest@lists.xmission.com Subject: persfin-digest V5 #91 Reply-To: persfin Sender: owner-persfin-digest@lists.xmission.com Errors-To: owner-persfin-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes persfin-digest Wednesday, February 24 1999 Volume 05 : Number 091 In this issue of the Personal Finance Digest: Re: Should Box 1 and Box 5 on W-2's match? Re: Deducting closing costs on my taxes Roth IRA for niece with no taxable income Depreciation Adjustment Need long distance provider w/ no monthly minimum The messages posted to the Persfin-Digest are opinions and are not intended to substitute for qualified professional advice. Subscribers should seek the services of qualified professionals for such advice. The publisher, Internet provider, and Digest contributors cannot be held responsible for any loss incurred as a result of the application of any of the information provided here. To ask questions or provide answers, send your email to "persfin-digest@lists.xmission.com". Also, you can "reply" to the persfin-digest and your email tool should fill in the same address. However, if you "reply", be sure to edit the subject field in your email to reflect your topic. Copyright (c) 1998, Jeff Salisbury POSTED SUBSCRIPTION FEE: $20/year. Payment is optional. You will not be billed. The Digest is available to all subscribers, whether or not they pay. I do not discriminate either in favor of paying subscribers or against nonpaying subscribers. If you feel that the information presented here is worth the fee, and you feel comfortable paying it, send cash, check, or money order (U.S. funds), payable to "Jeff Salisbury", to: Jeff Salisbury 65 North 1300 East Logan, Utah 84321 Payment will be acknowledged by e-mail if you include an e-mail address. Subscribe: e-mail majordomo@xmission.com, text: subscribe persfin-digest Unsubscribe: e-mail majordomo@xmission.net, text: unsubscribe persfin-digest ---------------------------------------------------------------------- Date: Mon, 22 Feb 1999 18:58:44 -0500 From: Rich Carreiro Subject: Re: Should Box 1 and Box 5 on W-2's match? >I just started doing my taxes (using TaxCut) and when I began to enter >my W-2 info, it alerted me to the fact that my Box 1 entry (gross wages) >did not match my Box 5 entry (medicare wages). I participate in a >401K at work and usually this explained the difference. But TaxCut >displayed a message stating that the laws were changed and that Medicare >now taxes your gross wages? > >Can anyone tell me if my W-2's are incorrect? Or is TaxCut wrong? Your W-2 forms are correct. TaxCut is also correct, though its explanation sounds weird. Medicare tax has always been on your gross (i.e. pre-401(k) contribution) wages. That's not new at all. I'm also surprised it didn't gripe about Box 1 not matching SS wages (the difference is because of the same reason). Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - - ------------------------------ Date: Mon, 22 Feb 1999 18:56:47 -0500 From: Rich Carreiro Subject: Re: Deducting closing costs on my taxes >Please help me, I purchased a house in June 1998, is it possible to deduct >closing costs on my tax return, do you know what line on the schedule A form, >I will have to deduct the closing costs if it is possible Closing costs are NOT deductible in general. The only closing costs are deductible are taxes paid at closing (NOT monies paid to prime your escrow account, but money you pay to the seller to reimburse them for property tax they paid for the part of the year you'll be in the house) and interest paid at closing (i.e. mortgage points [though I don't believe points designated as "origination fees" are deductible] and any interest you paid at closing because you didn't close on the last day of the month). That's basically it. The other costs become part of the basis of your house. Rich Carreiro rlcarr@animato.pn.com P5-100/RedHat Linux 4.2 - - ------------------------------ Date: Mon, 22 Feb 1999 18:40:29 PST From: "Simon Mattox" Subject: Roth IRA for niece with no taxable income Ok, here is a question for all you financial planners. I want to open a Roth IRA for my niece but she is only 11 years old and has not taxable income. What are the laws about paying her for chores or remedial jobs and counting that as taxable income. Anybody have any good ideas on this. Thanks for you help ______________________________________________________ Get Your Private, Free Email at http://www.hotmail.com - - ------------------------------ Date: Wed, 24 Feb 1999 20:19:14 -0000 From: "Joel Elias" Subject: Depreciation Adjustment I am trying to prepare my wife's Sub. S corporation return myself, but am stumped on one point. Last year, she had $4,900 depreciation for a car purchased in 12/96 for $25,570 along with $1455 section 179 depreciation. Her accountant listed -581 on Schedule K-1 line 14a "Depreciation adjustment for property placed in service after 1986". the accountant is no longer in town and I can't figure out how this number is calculated. I tried various alternate depreciation tables (150DB, etc) and can't come up with the accountant's number. I assume I have to do a similar calculation for her 1998 taxes. The car depreciation for '98 is $2950 and she has $2802 in Section 179 depreciation. Can you help me figure our how to calculate K-1 L14a. Thanks in advance for your help. - -----== Sent via Deja News, The Discussion Network ==----- http://www.dejanews.com/ Easy access to 50,000+ discussion forums - - ------------------------------ Date: Wed, 24 Feb 99 21:58:08 MST From: Storage Products Division -- DTN 522-2718 24-Feb-1999 2155 -0600 Subject: Need long distance provider w/ no monthly minimum I need a long distance phone service provider that does not have a monthly minimum charge. Any recommendations? Thanks, Randy Marks - - ------------------------------ End of persfin-digest V5 #91 **************************** - To unsubscribe to persfin-digest, send an email to "majordomo@xmission.com" with "unsubscribe persfin-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.