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Tax Question

Discussion in 'Money & Finance Forum' started by jfagala, Oct 31, 2007.

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  1. Oct 31, 2007 at 9:24 PM #1
    jfagala

    jfagala Full Access Member

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    need some advice.

    Situation:

    Sell house and land, 2 seperate deeds, in 2005. lets say the land was for $16,000.

    How is closed on, we hold the note for the land to be paid off july, 2008. we financed, got paid interest for a while, til 2008.

    Guy quits paying the agreed upon interest in April of this year. Gives us a partial check, $10,000.

    He still has not paid any interest since April, but according to my accountant, the balance has to be paid in the same year so we can take the one time home deduction so we don't have to pay taxes on the gain.

    Is this the case? Does it have to be paid in the same year? The guy says he will not pay as it is not due til July, 2008.

    I know he should be paying interest, he said he was going to and has not. But my bigger question is about closing the loop on the transaction in the same year to make things clean.

    Help!!
     
  2. Jan 17, 2008 at 3:00 PM #2
    Thelt

    Thelt Full Access Member

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    I am not sure what you are asking there but in order for the sale of a home to be a tax free transaction you it must have been your primary residence for two of the past five years. If you have not done this then the gain is taxable.
     
  3. Jan 18, 2008 at 1:04 PM #3
    slydevl

    slydevl Asshole for the People!

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    i got one.

    Is there anyway to shield a bonus from the huge tax hit? I don't want to loan the government money I am just going to get back when I file anyway.

    Can I up my deductions for that week or something?
     
  4. Jan 18, 2008 at 1:22 PM #4
    Thelt

    Thelt Full Access Member

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    If your employer will let you do that, yes. I have been at many companies that will do that for employees. It is a bit of a headache for the payroll department though.
     
  5. Jan 18, 2008 at 2:01 PM #5
    VA49er

    VA49er Full Access Member

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    Jack up your 401(k) contribution for that specific pay period. Used to do that all the time when I got commission checks.
     
  6. Jan 18, 2008 at 2:06 PM #6
    slydevl

    slydevl Asshole for the People!

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    I want the cash though
     
  7. Jan 18, 2008 at 2:36 PM #7
    VA49er

    VA49er Full Access Member

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    Hmmmm. Maybe do what you mentioned and jack up the withholding for that particular pay period. Got to time it right though.
     
  8. Jan 18, 2008 at 4:38 PM #8
    meatpile

    meatpile 7-9

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    mgjcpa.com
     
  9. Jan 18, 2008 at 5:20 PM #9
    Freakshow

    Freakshow Fuck you guys.

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    WTF??? Foreclose on the land and take that shit back!!!! Your lien IS on title...right???
     
  10. Feb 5, 2008 at 10:44 AM #10
    slydevl

    slydevl Asshole for the People!

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    Somehow they swung my bonus so they ONLY held out SS and Medicare. No income tax withheld.

    Nice now but I am going to have to be very disciplined to keep the extra for next years tax time.
     
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