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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
September 2001   < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
  Estate taxes regarding property held in joint tenancy
  Deducting educational expenses in excess of employer's tuition assistance program
  Gift of home by non-resident alien
  Adjusting wage withholdings
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
My mother held all her properties in joint tenancy with me when she died; estimated net worth about $300,000. I never contributed anything to these accounts. She also had 5 money bequests in her will which I am honoring by paying them out of "my" money. Did she have an estate for tax purposes? < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
There is not a requirement for an estate tax return unless a decedent had an estate worth more than $675,000. The joint tenancy assets are part of her estate, but there is no probate because the assets were held in joint tenancy. By paying bequests contained in a will, you are making direct gifts to those beneficiaries since you are the sole owner of the joint tenancy property. < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
See the Tax Prophet's Tax Class on Estate Planning < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
My employer has a tuition assistance plan that reimburses me for my tuition upon successful completion of each class to a maximum of $5,250 per year. Would I be able to deduct these expenses as an employment-related business expense if my employer did not reimburse me for additional amounts that I spend?< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
Your employer may provide you with tuition assistance up to the limit you describe. If your employer pays more than this amount, it becomes non-deductible compensation to you. Also, if you pay for tuition and education expenses and are not reimbursed, you may claim this amount (provided you qualify with the education requirements described below) as an itemized miscellaneous deduction.

If you need the education to improve your job skills in a job that you currently have, you are permitted to deduct these expenses under the following conditions: Educational expenses may be deducted if they are either mandated by your employer or incurred to maintain or enhance your present skills. You cannot deduct educational expenses if the courses qualify or retrain you for a new trade or profession, or are part of "entry level" education, such as the minimum educational requirements to become a teacher, doctor or attorney. < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet

Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
: Neither of my parents is a U.S. Citizen, but my wife and I are U.S. Citizens. My parents want to sell or gift to me a home they own in California. How can they avoid capital gains tax or gift tax on the transaction? < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
This is a difficult situation. Your parents will owe capital gains tax if they sell the property, and gift tax if they transfer it to you. Since the home is under $300,000 they could sell it without incurring the 10% FIRPTA withholding on the proceeds. Review my Foreign Taxpayer section which discusses these rules. < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
The Tax Prophet Section on Foreign Taxpayers < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
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I am currently in a situation where I need all the money I earn with no taxes deducted for at least the next 6 months. Then I will pay whatever taxes are owing for the 6 months when no taxes were withheld from my check. Can I do this? < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
You are not permitted to do this. You can claim additional exemptions, up to 9, on your W-4, but you are not allowed to tell your employer not to withhold. Work through the W-4 worksheet to determine the maximum number of exemptions needed to reduce your withholding to the maximum.

See IRS instructions to Form w-4. < "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet

Copyright © 1995-2013 Robert L. Sommers, All rights reserved.
< "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> The Tax Prophet
Copyright © 1995-2013 Robert L. Sommers, All rights reserved.