Question 1

Amend a "paid" invoice?

Accepted Answer

Hello,I use QuickBooks Premier Edition 2006 to create my invoices. In doing so, I like to have the date of the invoice match the actual date of the work performed or delivery date of the product sold. I find it easier to keep track of billable hours that way should a question ever arise about when the work was performed. It then becomes an easy matter of checking the QB time input against the respective date of the invoice.What has happened is that I forgot to include a couple of products on one or more invoices. Typically, that wouldn't be a problem, as I could simply add them to the invoices and reprint them. However, it turns out that the invoices have been paid with the notable exception that I have yet to receive the customer's check. The "check is in the mail", so to speak. At least that's what I've been told.So, what would be the best way to correct this? I suppose that I could simply create a new invoice for the missed items and reflect in the body of the invoice that they were...

Question 2

How do I move Quicken to a new computer?

Accepted Answer

This issue is still as relevant 15 years later ... So here is another take on it for people seeing it now, in the shiny and bright future ...Moving Quicken to a new computer can be done by exporting your data from the old computer and importing it into the new one. Here are the steps you can follow to move Quicken to a new computer:1. On the old computer, open Quicken and go to the File menu. Select "Export."2. Choose a location to save the exported data file, such as a USB drive or an external hard drive.3. Insert the USB drive or external hard drive into the new computer.4. Open Quicken on the new computer and go to the File menu. Select "Import."5. Locate the exported data file on the USB drive or external hard drive and select it.6. Follow the prompts to complete the import process.If you want to transfer all of your online accounts in a way that it won't ask for account PINs again, you should deactivate online services on your old computer before exporting the data file.1. Go to...

Question 3

foreign tax credit

Accepted Answer

Hello everyone, I had this discussion with my CPA a while ago, we can't seem to agree. An individual has domestic (US) and foreign earned income. Let's say 90% US and 10% foreign.  The foreign country, like US, taxes the worldwide income.  When calculating the foreign tax credit on form 1116, he uses only a 10% of the foreign tax paid, because he says that we can't consider in the calculation the taxes paid in the foreign country on the US income.  I can't seem to find in the 1116 instructions something that explicitly limit the foreign tax to only foreign earned income. Who is right? thanks

Question 4

Converting 401k to Roth IRA

Accepted Answer

I have a Roth IRA and a 401k (actually it's a 457 because it's withthe government but let's just call it a 401k) - not a Roth 401k, justa regular 401k.When I retire, can I rollover/convert my 401k into my Roth IRA?  Isthere any limit on the amount of money I can convert?What kind of tax percentage can I expect to be taken out of the 401kwhen it is converted?And then once converted, I should never have to pay tax on any of itagain, right?

Question 5

Reverse mortgages now almost a must?

Accepted Answer

A reverse mortgage can be a powerful financial tool for retirees, but it's not the right choice for everyone.A reverse mortgage is a loan that allows homeowners 62 or older to access the equity in their home. The loan is repaid when the borrower dies, sells the home, or moves out permanently.Before considering a reverse mortgage, it's important to weigh the pros and cons of the loan. The main benefit of a reverse mortgage is that it can provide a source of tax-free income that can help retirees stay in their homes. Additionally, by using the proceeds of a reverse mortgage to pay off credit card debt or other high-interest loans, retirees can reduce their monthly expenses.However, there are also some downsides to consider. One of the most significant downsides is that a reverse mortgage can be costly. The fees associated with a reverse mortgage can include an origination fee, an appraisal fee, and mortgage insurance. Additionally, if a borrower does not maintain the property or pay...

Question 6

Is it better to pay extra to my mortgage each month, or borrow against my heloc (apply the principle to the mortgage), and pay $1200 to the Heloc along with normal payment to the Mortgage note?

Accepted Answer

So here is my question in detail.  I have created a spreadsheet that analysestwo loans versus one.  The first is my straight 30 year note at 3.875.  Bypaying the $1200 extra each month it will be paid off in  February 2029.  Thesecond is my HELOC (5.875%), where if I borrow 87000 (applied as a one timepayment to the mortgage), the $1200 paid to the HELOC, along with paying myminimum mortgage payment (2 loans essentially), shows them both paid off inAugust of 2027 (a saving in combined interest of over $2000, and paid off a yearand a half early.Intuitively this does not make sense, but I do not see the error in myspreadsheet.  Has anyone ever looked into this?  I am happy to forward the excel spreadsheetto anyone who wants to see this unexpected result.

Question 7

Question on rentals

Accepted Answer

We relocated to another state.Our plan was to rent out our home in the former State. But because it needed repair/remodeling we could not rent it out immediately. The remodeling/repairs will take a while.Is there any IRS law/regulation that states that 1. we cannot deduct expenses as an investment property because we haven't rented it out?2. Does the IRS have any time limit that it has to be rented out to qualify as an investment property?

Question 8

Home Office question

Accepted Answer

Husband and I have a LLC which is run from our home.We have a dedicated room that is 100% used as an office. Desk, Printer, phone etc.Can we as a couple get reimbursed by the LLC for the expenses of the home office?Expenses like electricity, mortgage, water etc.No employees. We get K1s at the end of the year. no salary for us.Hus and wife are the only 2 shareholders of family business.

Question 9

401(k) Withdrawal Issue

Accepted Answer

In 2020 OP (over age 55) went to his former employer to ask for a large distribution from his 401(k) plan.  The employer was in the middle of merging with another company, so they did not respond to the request.  Now, in 2021, they say they will make the distribution.The problem is that OP needed the money in 2020, when his income (and tax bracket) were low.  In 2021 he expects to be in a much higher tax bracket, so the tax on his 401(k) distribution will be much higher.Is there anything that can be done about this?Thanks.

Question 10

What are the disadvantages of being a 1099 employee as opposed to a W2?

Accepted Answer

Seeing this quite a bit lately, and with the recession looming, there may be fewer W2 and more 1099 jobs in the future, and those currently on W2 may be converted to 1099 type. Since this is about financial planning, so, in a way - life planning, let's take a look at why exactly it's such a raw deal.There are several disadvantages to being a 1099 employee as opposed to a W2 employee. These include:1. Lack of benefits: 1099 employees are typically not eligible for benefits such as health insurance, retirement plans, and paid time off, which are typically offered to W2 employees.2. No job security: 1099 employees are considered independent contractors, so they do not have the same job security as W2 employees. They may be terminated at any time, and they do not have the same protections against discrimination and wrongful termination.3. Self-employment taxes: 1099 employees are responsible for paying self-employment taxes, which include the employer portion of Social Security and...

Question 11

2024 Standard Mileage Rates

Accepted Answer

Beginning January 1, 2024 to the Tax Cuts and Jobs Act, provisions of which affect 2018 andlater, there are fewer instances in which mileage is deductible. Themiscellaneous itemized deduction for unreimbursed employee travelexpenses was eliminated. Taxpayers cannot claim a deduction for movingexpenses, unless they are members of the Armed Forces moving to apermanent change of station.67 cents per mile for business use, up 1.5 cents from 2023. Thisincludes 30 cents per mile of depreciation.21 cents per mile for medical or moving (Armed Forces only), decrease of1 cent14 cents per mile charitable, unchanged as it's set by statute

Question 12

Joint return for divorced couple

Accepted Answer

A couple I know were recently divorced, but since they were still married on 12/31/2023, their settlement agreement requires them to file a joint tax return for 2023 and to split any refund or costs 50-50.  I just did a run-through on their taxes, and it turns out they will owe around $7000 together, which means each of them will owe $3500 according to their commitment in the divorce agreement.  It appears that one or perhaps both of them will have trouble coming up with these amounts by April 15th.  What options do they have in the following scenarios?Scenario 1:  One party can pay the $3500 but the other cannot.   Will the IRS accept a partial payment of the $3500 from the person who can pay and then set up a payment plan with the other party for the remaining amount? If the second party defaults, can the IRS come after the party was able to pay their half?  Remember, that person fulfilled their obligation under their divorce agreement.Scenario 2:  If neither party can pay the full...

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