Getting to be tax season, whatcha doing?

[Jenksismyhero]

$3 or $4k I think. It was worth it imo just to get the project done as quickly as possible. Ours was a full tear-out with updating the electrical and plumbing, removing a soffit and adding an island. As it was, we had to wait about 6 weeks without a kitchen while the counter tops were being made (they take final measurements after cabinets are installed to ensure an accurate fit, and then manufacturing is 4-5 weeks iirc). Compare that to the full bathroom gut-and-remodel I'm doing myself that I started in late October and still isn't finished...

 

If you aren't getting new cabinets, that's a different story. You could leave your fully functional kitchen in place while they cut/fabricate your countertops and replace those in a weekend. Backsplash is really easy and we did that ourselves, 3-4 hours to tile, 1-2 hours to grout and clean the next day (Lowes and Hobo have good selection for that sort of stuff, HD and Menards suck and even the tile stores were limited for nice, not-$50-a-sq-ft glass tiles). Same with refinishing cabinets (did that for the bathroom).

 

Yeah timing is a big factor. I'm on about 8 months for my basement remodel. Having a kid in the middle didn't help, but it's still taken a lot longer than I expected. My wife would not want to go 6 months with a half torn up kitchen (even if somewhat functional).

[StrangeSox]

do it when it's warm enough to still grill outside

[iamshack]

do it when it's warm enough to still grill outside

Or find a very good contractor with a legal problem that you can barter with

[StrangeSox]

either way you're still going to be without a kitchen for some period of time! washing dishes in a utility sink gets old fast, but at least we had somewhere to cook

[NorthSideSox72]

I could have had all my paperwork to the accountant a week ago, but Schwab still hasn't released 1099's. Everyone else in the world gets stuff out by end of January, but every year, Schwab is at least a week behind.

 

[Jenksismyhero]

If you don't get a 1099, can you consider the money you received a gift? Anyone have this issue come up?

 

The scenario: I worked a case for my firm that had been referred to us by another firm. The two firms split the cut of the settlement proceeds that I was able to get. As a "thank you," the other firm gave me a portion of their cut. I never received a 1099 and it's less than the gift tax amount of $13k. Can I consider this a non-taxable gift? Technically I wasn't working for them, I was working for my firm. He just happened to get a referral fee, and was nice enough to give me a thank you portion.

[StrangeSox]

I could have had all my paperwork to the accountant a week ago, but Schwab still hasn't released 1099's. Everyone else in the world gets stuff out by end of January, but every year, Schwab is at least a week behind.

same with TD ameritrade

[iamshack]

If you don't get a 1099, can you consider the money you received a gift? Anyone have this issue come up?

 

The scenario: I worked a case for my firm that had been referred to us by another firm. The two firms split the cut of the settlement proceeds that I was able to get. As a "thank you," the other firm gave me a portion of their cut. I never received a 1099 and it's less than the gift tax amount of $13k. Can I consider this a non-taxable gift? Technically I wasn't working for them, I was working for my firm. He just happened to get a referral fee, and was nice enough to give me a thank you portion.

How was the money disbursed to you?

[Chisoxfn]

Technically I'm sure any accountant you ask will tell you it was related to services performed and thus income. However, could you get away with it, probably a pretty good chance if it was never reported anywhere. However, I always say better safe then sorry when it comes to the IRS.

[iamshack]

Technically I'm sure any accountant you ask will tell you it was related to services performed and thus income. However, could you get away with it, probably a pretty good chance if it was never reported anywhere. However, I always say better safe then sorry when it comes to the IRS.

Couldn't he always just say it slipped his mind entirely?

[IlliniKrush]

Couldn't he always just say it slipped his mind entirely?

Yeah, except the IRS reads Soxtalk.

[iamshack]

Yeah, except the IRS reads Soxtalk.

Doh!

[StrangeSox]

My dad is an IRS agent, I have already reported jenks to the appropriate authorities.

[Chisoxfn]

Couldn't he always just say it slipped his mind entirely?

Absolutely he could. Its all a matter of if you get audited, the "it slipped my mind" isn't going to fly. Of course if you are a basic W-2 filer with pretty simple returns, the odds of being audited tend to be pretty minor. And it would be hard for them to identify it other then checking into your bank records and noticing the large deposit. I'd probably have a tax accountant submit for all of the 1099's and various documents that are out there to ensure it wasn't reported (and you just didn't get it mailed to you).

 

Cause when you get on the 13K with penalties, fines, and interest on top of it (if it was reported and you didn't include it), you are definitely risking it.

[iamshack]

Absolutely he could. Its all a matter of if you get audited, the "it slipped my mind" isn't going to fly. Of course if you are a basic W-2 filer with pretty simple returns, the odds of being audited tend to be pretty minor. And it would be hard for them to identify it other then checking into your bank records and noticing the large deposit. I'd probably have a tax accountant submit for all of the 1099's and various documents that are out there to ensure it wasn't reported (and you just didn't get it mailed to you).

 

Cause when you get on the 13K with penalties, fines, and interest on top of it (if it was reported and you didn't include it), you are definitely risking it.

So if for some reason they audited him, and found it, he couldn't just go "oh crap, I totally blanked on that!" and they wouldn't just let him file a correction? They'd actually penalize him or fine him harshly for that?

 

 

[StrangeSox]

They'd charge him interest at a minimum and most likely a penalty. Otherwise people would always try that play-dumb excuse for unreported income.

[iamshack]

They'd charge him interest at a minimum and most likely a penalty. Otherwise people would always try that play-dumb excuse for unreported income.

Yeah, makes sense...although I am sure people always do try that play-dumb excuse for unreported income

[Jenksismyhero]

How was the money disbursed to you?

 

By check.

[Jenksismyhero]

My dad is an IRS agent, I have already reported jenks to the appropriate authorities.

 

Ha nice.

[Jenksismyhero]

Absolutely he could. Its all a matter of if you get audited, the "it slipped my mind" isn't going to fly. Of course if you are a basic W-2 filer with pretty simple returns, the odds of being audited tend to be pretty minor. And it would be hard for them to identify it other then checking into your bank records and noticing the large deposit. I'd probably have a tax accountant submit for all of the 1099's and various documents that are out there to ensure it wasn't reported (and you just didn't get it mailed to you).

 

Cause when you get on the 13K with penalties, fines, and interest on top of it (if it was reported and you didn't include it), you are definitely risking it.

 

I'm doing it myself too so....oops! Just forgot to put that on the form Mr. IRS man. Let me file an amended return...

 

Seriously though, what are the odds? It's a few grand, and I think I have a good argument that it's not "income" because I didn't "work" for it. How is it any different than someone giving me a physical gift like a bottle of scotch or a dinner for hooking them up with a network connection?

[Chisoxfn]

So if for some reason they audited him, and found it, he couldn't just go "oh crap, I totally blanked on that!" and they wouldn't just let him file a correction? They'd actually penalize him or fine him harshly for that?

Yep. No where does that argument work from a tax perspective. You are presumed guilty. You need to prove your innocence.

[StrangeSox]

Just pay your taxes.

[Jenksismyhero]

Just pay your taxes.

 

I'm sure that I will at the end of the day. Just wondering if that's really "income" or a "gift."

[StrangeSox]

this might givesome insight:

 

http://www.lacrossglass.com/MGA/pdfs/IRSArticleSept04.pdf

 

Here, an insurance adjuster gets gift cards as a referral bonus from an auto body shop. That's taxable income. I'd imagine your cut of the finder's fee would be seen in a similar manner. A tax lawyer could tell you more, but is it really worth the hassle and risk exposure?

[Chisoxfn]

I'm sure that I will at the end of the day. Just wondering if that's really "income" or a "gift."

I'd argue that the referral was related to performance of services. Hard to argue anything other then that from a tax code perspective. I think its clearly income, the bigger question is whether they'd ever be able to figure it out.