http://www.asktaxguru.com en Sat, 21 Nov 2009 18:51:01 GMT vBulletin 60 http://www.asktaxguru.com/images/monkeybatter/misc/rss.jpg http://www.asktaxguru.com http://www.asktaxguru.com/2415-contractor-default-on-unsecured-loan-for-land.html Thu, 12 Nov 2009 16:14:39 GMT I owned a piece of vacant land as an investment. I recently sold it to a contractor/builder & former friend who's company issued me an unsecured Note (I know, stupid!) for the purchase price. The Note was to come due in one year or when he completed & sold the house he was building on the land. Along comes the meltdown of 2008/2009 and the contractor cannot meet his obligations. The house he's building on what used to be my lot is now being foreclosed upon. He has said he cannot meet his obligations and cannot pay me for the land. I filed a judgment against his company, however hold out NO hope of collecting. A couple of questions:

1. Is this a non-business bad debt or a business bad debt?
2. How much can I deduct as the loss?
a. Amount I originally paid for the land many years ago.
b. Amount land was sold to him for -- I have not paid tax on the gain from the sale as it was all this year.
3. Can I include the cost of filing the judgment in the basis/amount of the loss?

Thanks! ]]> Miscellaneous rleeann http://www.asktaxguru.com/2415-contractor-default-on-unsecured-loan-for-land.html http://www.asktaxguru.com/2401-inheritance-tax.html Fri, 30 Oct 2009 04:12:11 GMT I have a few questions about tax on a cash inheritance...

I am due to receive a cash inheritance (25,000) from my father who lived and died in PA. I live in MA. This is from his company's life insurance policy. A few questions...

1. As he lived and died in PA and I live in MA will I have to pay an inheritance tax to PA, MA or federal? How much would it be if there are any taxes to be paid to either state or the government?

2. Will I have to include this inheritance on my tax return as income or as anything else?

3. Is there anything else I should consider in relation to this cash inheritance in terms of taxes, filings, etc.

Thanks! ]]> Miscellaneous bone1124 http://www.asktaxguru.com/2401-inheritance-tax.html http://www.asktaxguru.com/2399-what-is-self-employment-tax.html Thu, 29 Oct 2009 04:20:25 GMT The IRS has stated that "Self-employment tax (SE tax) is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners."

Taxpayers can calculate their SE tax using Schedule SE (Form 1040). Social security and Medicare taxes of most wage earners are figured by their employers. Also Taxpayers can deduct half of their SE tax in figuring their adjusted gross income. Wage earners cannot deduct social security and Medicare taxes.

SE tax rate.
The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

Maximum earnings subject to SE tax for Tax Year 2009.
Only the first $106,800 of the taxpayers combined wages, tips, and net earnings in 2009 is subject to any combination of the 12.4% social security part of SE tax, social security tax, or railroad retirement (tier 1) tax. ]]> Miscellaneous TaxGuru http://www.asktaxguru.com/2399-what-is-self-employment-tax.html http://www.asktaxguru.com/2397-what-is-genetic-information-nondiscrimination-act-2008-a.html Wed, 28 Oct 2009 14:34:32 GMT *_What is the GINA Act? _*The Genetic Information Nondiscrimination Act of 2008 also referred to as GINA, is a new Federal law that prohibits discrimination in health coverage and employment based on genetic information. The President signed the act into law on May 21, 2008. *_ Who is affected? _* It appears that Private sector employers with 15 or more employees and all Public Sector Employers. *_When does the Law take effect? _* The Law becomes effective November 21, 2009. *_What does the GINA law cover?_* The Act prohibits discrimination in health coverage and employment on the basis of genetic information. GINA, together with already existing nondiscrimination provisions of the Health Insurance Portability and Accountability Act, generally prohibits health insurers or health plan administrators from requesting or requiring genetic information of an individual or the individual’s family members, or using it for decisions regarding coverage, rates, or preexisting conditions. The law also prohibits most employers from using genetic information for hiring, firing, or promotion decisions, and for any decisions regarding terms of employment. *_What are the limitations of GINA?_* 1. GINA’s health coverage non-discrimination protections do not extend to life insurance, disability insurance and long-term care insurance. 2. GINA does not mandate coverage for any particular test or treatment. 3. GINA’s employment provisions generally do not apply to employers with fewer than 15 employees. 4. For health coverage provided by a health insurer to individuals, GINA does not prohibit the health insurer from determining eligibility or premium rates for an individual based on the manifestation of a disease or disorder in that individual. For employment-based coverage provided by group health plans, GINA permits the overall premium rate for an employer to be increased because of the manifestation of a disease or disorder of an individual enrolled in the plan, but the manifested disease or disorder of one individual cannot be used as genetic information about other group members to further increase the premium. 5. GINA does not prohibit health insurers or health plan administrators from obtaining and using genetic test results in making health insurance payment determinations. Employers should be aware of this act as there are some potential penalties for violation of the law. What is the GINA Act? The Genetic Information Nondiscrimination Act of 2008 also referred to as GINA, is a new Federal law that prohibits discrimination in health coverage and employment based on genetic information. The President signed the act into law on May 21, 2008.

Who is affected?
It appears that Private sector employers with 15 or more employees and all Public Sector Employers.

When does the Law take effect?
The Law becomes effective November 21, 2009.

What does the GINA law cover?
The Act prohibits discrimination in health coverage and employment on the basis of genetic information. GINA, together with already existing nondiscrimination provisions of the Health Insurance Portability and Accountability Act, generally prohibits health insurers or health plan administrators from requesting or requiring genetic information of an individual or the individual’s family members, or using it for decisions regarding coverage, rates, or preexisting conditions.

The law also prohibits most employers from using genetic information for hiring, firing, or promotion decisions, and for any decisions regarding terms of employment.

What are the limitations of GINA?
1. GINA’s health coverage non-discrimination protections do not extend to life insurance, disability insurance and long-term care insurance.

2. GINA does not mandate coverage for any particular test or treatment.

3. GINA’s employment provisions generally do not apply to employers with fewer than 15 employees.

4. For health coverage provided by a health insurer to individuals, GINA does not prohibit the health insurer from determining eligibility or premium rates for an individual based on the manifestation of a disease or disorder in that individual. For employment-based coverage provided by group health plans, GINA permits the overall premium rate for an employer to be increased because of the manifestation of a disease or disorder of an individual enrolled in the plan, but the manifested disease or disorder of one individual cannot be used as genetic information about other group members to further increase the premium.

5. GINA does not prohibit health insurers or health plan administrators from obtaining and using genetic test results in making health insurance payment determinations.

Employers should be aware of this act as there are some potential penalties for violation of the law. ]]> Miscellaneous TaxGuru http://www.asktaxguru.com/2397-what-is-genetic-information-nondiscrimination-act-2008-a.html