newwavegurly wrote: 
Yeah I'm pretty easy like that. 

 Zep wrote: 
Hugs? For saying I dislike the IRS? Sah-weet!
 
 

 newwavegurly wrote: 
Aww, c'mere!
 
meower wrote: 
And you too!

 steeler wrote: 
True story: Got a dunning notice from the city regarding some tax bill, which had already been paid.  Upon calling the office, I was informed that "sometimes, they send out the wrong notices."

I wonder about the ones for which they send the thank-you's.

 Zep wrote: 

Filed just a few minutes ago — on the last day of the extension period, of course.  Made a mathematical error back in April so ended up owing a little additional money to District, and, because of that, incurred penalties and interest.

So, my plan to review everything to see if I could come up with any additional savings through deductions or otherwise finding my way through the rat maze of the various IRS instructions, worked out about as I should have expected.    

 newwavegurly wrote: 

same here.  

All I have to say is that I really dislike the IRS.
There are far bigger fish out there that they need to deal with besides me, yet they've not been kind to me over the years.

 Zep wrote:  Thanks. I knew that was going to be the answer, I was just hoping somebody might wave a magic wand and say 'done'.

I might be able to deduct the legal fees, since they're related to a specific business enterprise I was involved in. And since I'm not getting title to property, I should be okay. I think you can't deduct fees to settle title: I guess they figure you're gonna be paying property tax on it anyway.

I'm gonna start looking for a tax specialist, there's no way I can do this on my own. But I can't AFFORD a specialist either! AUGH!

 steeler wrote: 
Time's up!

 cc_rider wrote: 
There are too many variables to say here, without knowing all of the gory details. 

Legal fees related to business operations are on Schedule C.  You can't deduct legal fees stemming from personal matters, so you will need to show a compelling business case.  See Publication 529.

As for the 1099, I think you want a 1099-MISC.

Generally though, you need a tax professional to handle this one.  Too much money involved.

Did I beat the turnip?

 bokey wrote: 
What's the rush?

I was at the post office at 7:15 this morning getting my 2008 returns sent by certified mail, since my extension is up and they're due today. Since the post office  closes at 5 PM I could have waited until 4:59PM  but I wanted to get it out of the way early.

 rosedraws wrote: 
I WAS part owner of the company. When the legal shtuff hit the fan, I resigned, so I could try and recoup the money I loaned the company to get started.

I am now self-employed, however my 'real' job has nothing to do with the company in question, before or since.

 cc_rider wrote: 


What is your connection to the company?  Part owner?

Are you self emplyed, and the matter is related to your business?

Okay, I have a question for you tax experts out there. I am involved in a costly legal matter, to settle the assets of a dissolved company. In the course of the settlement, I have to pay one of the former partners a considerable sum: more than $10K. Plus of course my legal fees, which are likely to exceed $10K. In exchange for this ransom, I get nothing. That's right: diddley.

Here's my question: how do I handle the legal fees and settlement money, tax-wise? I think I should be able to deduct the legal fees from my income taxes, that's simple enough. But the settlement money is trickier: I think I need to send the schmuck a 1099, so he has to pay taxes on that income, but how do I do that, and how do I deduct it from MY income?

The accountant who has been handling the company has been practically worthless. No doubt I'll get faster response from an RPeep. Or a turnip.

 oldslabsides wrote: 

 islander wrote: 
And no doubt she loves you for it.

 Pyro wrote: 
That's what automatic withdraw is for. I set mine up for the day after payday. Money comes in by direct deposit, money goes out to ING and starts earning me interest. It doesn't sit around where it's easy to get to be a temptation and it's still liquid enough that I can get to it in an emergency. When the balance gets big enough and the opportunities are right I put it in a CD, or invest it, or take it on vacation, or whatever.

My work history has been up and down. It is a real comfort to have a pile of cash to use if necessary. Once you get that stash you get pretty protective of it - it becomes it's own discipline. I think long and hard about purchases (Mrs. Islander would say I'm cheap), and I often wind up thinking that the comfort of a couple months of padding is worth more than the shiny trinket that will be worth nothing in a year.

islander is right, it's better if you end up owing, but I know I don't have the discipline to save money to pay at the end of the year.  So I let Uncle Sam "save" for me.  It's true I don't get any interest on my money, but since I would NOT have saved it (and gained interest) anyway, it's moot.  I intentionally claim zero deductions.

For me, April is a time when I know a little EXTRA money will be coming in.  It's worth the "loss" of interest, to me.