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What is tax implications?
When someone states that something has or may have tax implications, that simply means that it may affect the taxes you pay. It's generally used in reference to your federal income tax return filed with the IRS (& state tax return if your state has an income tax). If receiving a prize has tax implications, it would likely mean that you need to report the income on your federal tax return.
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Shouldn't be any, as long as you don't lapse the policy. If you do - then as I understand it - the amount that you get, over what you paid in premiums is taxable.
Answer Converting a traditional IRA to a Roth gives you that future tax-free benefit, but at an immediate tax cost. You'll have to pay taxes on contributions that you p…reviously deducted, as well as on the account's earnings. For more details speak with your plan administrator.
Well, one of three things comes to mind:. 1. You get away with it, and there are no implications. 2. Your employer decides he wants to prove that he paid you, so he issues y…ou a 1099-MISC at the end of the year. Little did you know that he was going to treat you as an independent contractor, and now you not only have to pay income tax on the amount that he paid you but also self-employment tax (an additional 15.3%).. 3. You get caught, get charged with tax evasion, and go to jail.. Really, I suspect #1 and #2 are the most common.. ANSWER: . If you are being paid "under the table" this implies you are evading taxation. If you are paid over the table without regard to taxation no tax evasion is implied. If your employer files an 1099-MISC at the end of the year he did so with your authorization. If he did so with out any authorization on your part he did so in error. If you are charged with tax evasion this is not a guaranteed path to conviction especially if you are not liable for a tax or subject to any revenue laws. If you are not subject to any revenue laws there is no reason to be paid "under the table" as you are not hiding anything and everything you earn is no body's business but your own.
Claim the gain or loss, relevant to the holding period of the investment.
Bare dominium may seem like a terrific idea. However, one ought to be cautious and allow for all possibilities, such as the fact that these arrangements are subject to the… Capital Gains tax.
There are not any tax implications for giving a car to a friend. Once you give the car to your friend, they are responsible for the car.
The charge off is the declaration by a creditor that an amount of debt is unlikely to be collected. The implication that it increases the consumer tax.
Your own estate? Poor planning for life insurance anyway....life insurance would go to a named beenfificary tax free and virtually instantly upon death/certiification.….simple, easy, basically unchallenged and protected from others claims. Once it becomes part of the estate, it just increases the estate..and any inheritance/transfer taxes, administration fees, etc will be charged/increased because of it (like any other asset/cash in the estate)....plus just it becomes an asset that anyone who wants to challenge the other beneficiaries, or feels they were due something for any reason...has to go after.
If you do a 401k rollover properly, there are no tax implications associated with the transfer. To do so, you will need to rollover your funds directly into an IRA from your o…ld 401k. As a word of caution, if this is not done properly, then you could possibly be taxed at your ordinary income tax rate plus 10% on the amount.
That would depend on many factors. My answer will assume that the property is a personal residence. If it was repossessed, it is logical to assume that the debt you owed …on the property exceeded the value of the home on today's market. The only potential tax consequence would be based on the amount of debt forgiven. This amount wold be the amount you owed less the amount the bank nets from the sale of the property. Generally, people who lose property in the manner are insolvent, that is, their total indebtedness exceeds the total fair market value of everything they own. The tax code specifies that if a taxpayer is insolvent both before and after a certain amount of his debt is forgiven, the forgiveness of debt does not create taxable income. If the taxpayer is solvent before and after the event that triggered the foregiveness of debt, the amount of debt forgiven would be ordinary income to the taxpayer in the year of repossession. If the amount of debt forgiveness creates solvency, the amount that is included in taxable income is the lesser of the debt forgiveness or the amount of the solvency. For example. If before the repossession, your debts exceeds your assets by $100,000, and after repossession and related debt foregiveness your assets exceed your debts by $50,000, your taxable income for that year would increase by the lesser of the amount of debt foregiveness or $50,000. Note: this post may or may not consider recent tax legislation and tax court decisions. Please consult a local CPA.
In many cases, individuals opt to sell their home in a short sale proceeding because they can no longer afford to keep their homes. Banks consider short sales to be an alterna…tive to foreclosure and while a borrower might find a short sale to better than a foreclosure in terms of credit reporting he should consider the tax implications carefully. Say you owe $100,000 on your mortgage and you are no longer able to make your mortgage payments. Due to the state of the economy you may only be able to sell your home for $80,000, leaving the bank $20,000 short. The bank agrees to close your file after you pay the $80,000 - after all, getting 80% is better than nothing. The problem is that the other 20% isn't a gift or free ride. The government views that other 20% as "income" even though you never had the cash in hand. When you prepare your income tax return you will have to include the $20,000 from the short sale as income for that year and will be required to pay additional income taxes on it as well. Keep the additional taxes you will owe in mind as you complete your short sale proceedings. You'll need to start putting some extra money away in order to be prepared when tax season rolls around again. A person would only pay taxes if the home was an investment property in most circumstances due to the Mortgage Debt Relief Act. When this act was put in place it benefited those short selling their primary residence.
The amount does not matter, you will owe all income taxes due plus a 10% penalty if you are not 59 1/2 years old.
You can give partial ownership over several deeds over as many years as it takes to transfer the entire value using your annual gift tax exclusion ($15,000 in 2012). So, for i…nstance, a $60,000 house could be given 1/4 at a time.
Penalties, fines, not receiving benefits (like social security, retirement, health & disability, etc) and of course, criminal record which may include jail time.
Unless it is a tax debt, none. Discharged debts are not income to the debtor.
In HIGH SEA SALE THERE WILL NO SALES TAX IS CHARGES SINCE THE SALE IS CARRIED OUTSIDE THE TERRITORIAL JURISDICTION OF INDIA THERE WILL NOT BE SALES TAX LEVIED IN INDIA.