Oh, the Questions we Get.....

 Since it's summer time, we couldn't quite find the energy to write a series of overly-researched, densely-written tax articles - we didn't want to write them, and we assumed that you didn't want to read them while hanging out on the beach, so we've taken a random sampling of questions that you, our clients (and others), asked us during the summer. We think many of these questions were great and they give us the opportunity to pass along

 some helpful (and not-so-helpful) information.

I just received an audit notice from the Internal Revenue Service or Franchise Tax Board .

What shall I do?

There's no reason to panic, to move to a cabin in the woods, grow a beard, or change your name. 

Inquiries from the IRS and FTB happen periodically, can often be easily resolved, and we're here to assist. 

When you receive a notice, send us a copy immediately. 

We'll contact you to determine how best to respond, what information we may need to respond, and what steps we will take to resolve the issue. 

I'm refinancing!

Can you send me an electronic copy of my tax return?

Yes, we're happy to provide electronic copies. We may ask you certain information to guarantee that you are you. We can't send the information directly to the mortgage company - we have to send it directly to you.

Finally, we generally complete your request the same day but it can sometimes take as long as 24 hours if we're busy writing newsletters, answering phone calls with good questions, preparing tax returns, or working on other client matters so be patient with us.

Can we get a reservation for 4 at 8pm?

Actually, we're Wayland & Vukadinovich. 

We think you're calling the Cheesecake Factory in 

Redondo Beach.

Their phone number is 376-0466, ours is 376-0455.

I extended my returns.

 When are they do?

Corporation and partnership returns are due

September 15th.

Personal tax returns are due October 15th.

There is no legal way to extend these returns past those dates.

My child attends Rock and Roll Summer Camp.

Is that deductible?

Payments you make for summer camps can qualify for the dependent care credit. Make sure you provide us with the amount you paid and the name, address, and Federal Identification Number of the camp.

Remember, the child must be under 13, not your 26 year-old  who is channeling his inner Mick Jagger.

When is my estimated tax payment due and are there penalties for paying late?

The final two estimates are due September 15th and January 15, 2014.

Alas, yes, the Internal Revenue Service and California Franchise Tax Board will charge penalties if you are late in making your payments. 

You didn't send me a 3rd quarter 2013 California estimated tax voucher.

Can you send me a copy?

Several years ago, when California was in the depths of financial despair, our esteemed legislators modified the estimated tax schedule for those of us who live in the great state of California.

Rather than making 4 equal payments during the year, the State now requires that you pay 30% of your estimated tax payments in the 1st quarter, 40% in the 2nd quarter and the final 30% in the 4th quarter.

The bad news here is that they want 70% of your total tax bill by June 15th

 (so they can book the payment in the current fiscal year).

The good news is that they've given you the third quarter off - no CALIFORNIA estimated tax payments are due in the 3rd quarter.

Those of you from other states on this mailing list are just shaking your heads!

I'm buying a new Tesla - I don't know whether to sell or donate my 1964 Volkswagen.

I've read that I can write off thousands of dollars if I donate the car.

Is that true?

The rules have changed these last several years regarding donations of your car or truck. Your donation is limited to the amount realized by the charity when they sell your car or truck in an auction. The charity is required to provide you with a document indicating what the car was sold for, and that document is provided

to the Internal Revenue Service. 

Remember, sales through auto auctions usually yield far less than Blue Book prices.

My father gave me $14,000.

Is it taxable to me?

Your father, who sounds wonderful, likely gave you a gift.

That $14,000 is exactly equal to the annual gift exclusion, and that means you don't pay tax on receipt of the gift and he cannot deduct the gift.

Gifts in excess of $14,000 per person per year are also not taxable to the recipient,

but they may require that your charming father file a gift tax return.

I tumbled off my bicycle.

Can I deduct the payment I made to the doctor?

If you paid medical expenses in 2013, you may be able to get a tax deduction for those costs not covered by insurance.

You can only claim medical (and dental) expenses if you itemize your deductions.

You can deduct medical and dental expenses that are more than 10 percent of your adjusted gross income.

You can include most medical expenses that you paid for yourself, your spouse, and your dependents (including that 26 year-old at Rock and Roll Camp).

You can normally claim the costs of diagnosing, treating, easing, or preventing disease. The costs of PRESCRIPTION drugs qualify as does the cost of medical, dental and some long-term care insurance.

Lastly, while your dog may be your best friend,

his medical bills do not qualify as a medical deduction.

Can I make my appointment for preparation of my 2013 personal tax return now?

First, why are you thinking about that now?

You should be thinking about the beach, the mountains, the wonderful vacation you took, or the adult version of Rock and Roll Camp you will be attending - even WE don't think about your 2013 tax appointments quite yet.

Second, we open the appointment book around the 1st of December, right after we receive our tax software for this coming filing season.

Opening tax software in our world is ALMOST as good as opening presents on Christmas morning.

Pathetic, isn't it?

Who writes your newsletter? I hate it!

You can always safely unsubscribe at the bottom of this newsletter.

Who writes your newsletter? I love it!

Thanks, Mom.

Enjoy your summer!

Just one final note -

We've redesigned our website; it's still a work in progress but it's up and running.

Visit it at

Wayland & Vukadinovich