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In October 1998, my wife and I transferred our residence to a revocable living trust. If we decide to sell the residence, are we still entitled to take the residence tax exclusion (a maximum of $500,000 for joint filers)
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If you transferred your property to a standard revocable living trust, you remain the owners of the residence for tax purposes and if you sell the property while you are both alive, you will qualify for the exclusion (a maximum of $500,000 of the profits) provided you meet the requirements for the exclusion. In general, you must own and use the property as your principal residence for at least 24 of the 60-month period prior to date of sale.
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Does a US Citizen working in a foreign country for a foreign (Non-US) company have to file with IRS for wages earned?
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Absolutely. You might qualify for the foreign earned income exclusion but you must file a tax return to claim this benefit. The foreign earned income exclusion is available if you work overseas at least 330 days within a 12-month period.
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Prior to becoming a U.S. resident, I purchased stock in a Malaysian company. Last, year, as a U.S. resident, I sold the stock at a loss. May I claim the loss on my U.S. tax return?
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U.S. residents and citizens are taxed on their world-wide income. Therefore, you may claim a loss on the sale of stock since you are considered a U.S. resident for tax purposes. If you had sold the stock for a gain, you would have been required to report the gain as taxable income. Non-resident aliens do not pay tax on their gains (or claim losses) from the sale of non-U.S. real estate investment assets.
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I'm the sole shareholder (owner) of an S Corp that provides medical coverage for my family and me. Is there a deduction available and if so, who deducts it?
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For tax years beginning in 2001, an employee-shareholder who owns more than two percent (2%) of S corporation stock, may generally deduct an amount equal to 60% (70% in 2002 and 100% in 2003) of the amount paid for medical insurance for himself, his spouse and his dependents. Thus, you are entitled to deduct 60% of the medical insurance costs from your gross income. You deduct the medical insurance expense on Form 1040 as an adjustment to gross income.
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Transfer of Residence to Revocable Trust
