Suppose an Uber driver changes location temporarily during the year. For example, he drives Uber in his tax home in Tampa, but in the summer his traffic crashes as all the winter tourists have gone home. He decides to spend the summer Ubering in LA and drives to LA. Can he deduct 57.5 cents per mile for the expense of driving to LA, plus lodging expense enroute? He spends two months in LA, driving Uber. Can he still deduct 57.5 cents per mile for business miles in LA? Also, as he is away from his tax home, can he count his hotel expense as a legitimate business expense? How about the per diem for Meals and incidental expenses? Can he count this as well? How much is the per diem in LA? After summer, he returns to his tax home in Tampa. Is there anything that blocks him taking all these expenses?

December 21st, 2024

I am settling with my employer in lieu of an ADEA lawsuit. The settlement for just over $100K will be split 1/3 2/3 with 1/3 being cut on a separate check for my attorney. My income will be around $180,000 this year (filing jointly with my husband who will earn about $50K). I have already paid my FICA this year. Should I push to get the check prior to year end, and can I report my attorney fee as an above the line income reduction - or will it be limited to an itemized deduction subject to 2% of my AGI? Does it matter if in the agreement the amount is listed as a negotiated settlement versus severance? And is miscellaneous income on a 1099 taxed at a higher rate?

December 4th, 2024

I need help in modeling my investment drawdown and taxes for the next 25 years. I don't live in the USA and can't get my accountants and investment advisors' attention. Drawing $1.6m without paying tax is my goal. I have $1.7m total in the USA, including $300,000 in an IRA, $400,000 in annuities, and $1,000,000 in regular investments. My current income and tax plan for this year is $65,000 total with $1,700 in tax. I plan to reinvest $30,000 into a Roth IRA and gift $14,000/year to my child. What is the best strategy to minimize my tax liability while drawing down my investments?

October 30th, 2023

We started an LLC in June of this year. We have a $250K capital equipment startup loan and have invested $140K of our own money. The business is expected to have a net loss of $200K for 2015. Our W2 taxable income will be roughly $400K with $105K already withheld for federal taxes. Considering the business loss and potential tax benefits from Section 179, how significant would the tax impact be if I withdraw $350K from an IRA, and would it be better to do so this year due to the business loss?

July 30th, 2024

I failed to take the mandatory minimum withdrawal from my 403(b) account (TIAA-CREF) when I turned 70 1/2 last year and did not start by April 1st this year. Is there anything I can do to mitigate or avoid the 50% penalty?

February 18th, 2024