Home | Live Now! | Try it Now
Eileen Ambrose: Live chat with tax expert Steve Albert
 
11:41
Eileen -  

Hey gang, we’re about 15 minutes away from the start of our live chat with Steve Albert, a tax partner with Glass Jacobson in Owings Mills.  Albert has represented clients before state and federal officials, so if you need to make right with the IRS, he’s the guy to talk to.   But Albert can tackle any other tax question you might have, too.   Meanwhile, take the poll below while we wait to start.

11:58
Eileen -  Steve Albert has been a certified public accountant with Glass Jacobson in Owings Mills since 1990. His expertise includes tax planning for retirement, estates, divorce and buying and selling businesses. He also represents clients before federal and state governments.
11:59
Eileen -  

Let’s get started. Our guest today is tax guru Steve Albert.  Steve, welcome and thanks for joining us today.

 

11:59
Steven Albert,CPA -  Hi Eileen and viewers
12:00
Eileen -  Steve, let me ask the first question. If there is one tax move we can make now to lower our tax bill in April, what would you suggest?
12:01
Steven Albert,CPA -  

Eileen,

 

In order to reduce tax for 2009, if you have the ability to contribute to a pension plan, that would reduce taxes.

12:01
[Comment From Fred ]
My wife owns a commercial building in which she has run a business out of while we have lived in the loft apartment above her work for years. We built and moved in a new house in 09. This is the first house I have owned (same for her with the exception of the commercial building). The house is in my name. We file taxes jointly. Will we be able to obtain the $8,000 tax credit? Thanks
12:02
Steven Albert,CPA -  

Dear Fred,

 

I am the bearer of bad news.

 

The first-time homebuyer credit of $8,000 is available for purchased between January 1, 2009 and before December 1, 2009.   The first-time homebuyer credit is reduced for modified AGI between $75,000 and $95,000 ($150,000 and $170,000 for joint filers).  Neither the individual nor the spouse could have any interest in a primary residence within a 36 month period prior to the purchase.

 

12:02
[Comment From WD ]
How does one report an admitted tax cheat? This guy brags about cheating on his taxes. Can this be done under condition of anonymity? I am willing to identify my self to IRS, but want the source not to be made public.
12:03
Steven Albert,CPA -  

Dear WD,

 

The Internal Revenue Service has issued procedures to follow to be a “Whistleblower”.   You should contact the IRS Whistleblower office.   There can be rewards of as high as 30%. This is according to IR-2007-201.   This is filed on Form 211, Application for Award for Original Information.   The Internal Revenue Service keeps your identify private.    

 

12:03
[Comment From Earl ]
Last year (2008), my wife worked on contractual terms with an old employer doing project work. There was no way to know when the jobs would come along, they just did. At tax time we had an underpayment (which I assumed) and a slight penalty ($14). We both have regular full-time employment, with taxes taken through payroll per the norm.
12:04
Steven Albert,CPA -  

Dear Earl,

 

Your estimates can be calculated based on the safe harbor prior year tax liability (100% of prior year liability, if adjusted gross income is at last $150,000, you must pay in 110% of last year’s liability) or if lower, using the “annualized income installment method”.

 

The required quarterly estimates can be calculated based on actual income and deductions in each quarter.   There is a presumption that the withholding of taxes are evenly paid throughout the year.   However, you can use the actual withholdings by quarter.   In annualizing, use the withholding for the entire year so the extra estimates should only be on the extra earnings. Form 2210 and its instructions walk you through how to do the calculation.   Basically, you annualize your income for the first three, five and eight months and calculate the tax liability. Then you take 22.5%, 45%, and 67.5% respectively. Make sure your calculation considers the self-employment tax (social security tax). Make sure you also do estimates for Maryland.   Their penalty rate is 13% annualized.   The Federal rate is approximately 6%.  

 

12:05
[Comment From Beabill ]
I bought a new car a few months ago (in 2009). Can I take the state tax I paid as a deduction on my federal income tax form if I take the standard deduction? Or, must I itemize to take the deduction?
12:06
Steven Albert,CPA -  

Dear Beabill,

 

Sales tax on a qualified motor vehicle can be deducted as an itemized deduction or added to the standard deduction.   A qualified motor vehicle includes new: cars, light trucks, motor homes and motorcycles.   The deduction is limited to the tax on the first $49,500 of each vehicle.   The vehicle must have been purchased after February 16, 2009 and before January 1, 2010.   It is a deduction on the 2009 income tax return.   The deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.  

 

12:06
[Comment From Karen ]
My tax question is this. My home lies on the Baltimore city/Baltimore County line. I have never been sure which location I should be using as the basis on my state taxes and the rates are different. Most of my home is in the city, but when I wrote the IRS years ago about this, I got the one sentence response of "we have your home listed in the county". I do have a county zip code, and I get jury duty notices from the county (and from the city, too). So I always worry a little someone will come after me for paying the wrong local tax rate. Any clue on the rules for this?
12:08
Steven Albert,CPA -  

Dear Karen,

 

There is nothing in the Maryland Code that defines whether to use Baltimore City or Baltimore County.   Prior discussions with the State representatives suggest to use the location of your property tax assessment.   The IRS does not care what county you are in since it is a Federal tax.   This is only for Maryland taxes

 

12:08
[Comment From SporkSpork ]
Steven, Is a "pension plan" the same as a 401(k) or IRA? I'm too young to count on a pension from my job!
12:09
Steven Albert,CPA -  A pension plan is a company retirement plan.   A 401K comes under this heading.   The Individual Retirement Plan (IRA) is one that you set up personally.   Generally, yuo cannot defer as much income in an IRA as you can in a company plan.
12:10
Eileen -  

Steve, if someone is, say, in their 20s or 30s,   would you recommend that they invest in a 401(k) or a Roth IRA? And does it matter if there's an employer match?

12:13
Steven Albert,CPA -  I like using the ROTH.   The funds going in are not tax deductible but when you take them out, all funds including the earnings are free of tax.   Hopefully, the tax law will not change this.   Usually people use deductible plans if they think the tax bracketat retirement will be less than they are currently paying.       If there is matching by the employer a 401K should be used.   There are now 401K Roth plans.   This may be the best
    Page 1  Next >
 
Powered by: CoveritLive  Reader Information