Scott just joined our School of Tax Strategy and has a couple of questions.
Q: Tom, new to your program, came from the Rich Dad training. going through info overload but have some initial tax questions. I have an S-corp with deferred income ($90,000) from an installment agreement when I sold the assets. I also took an equity position in the purchasing company (LLC), ($184,000) the company is effectively out of business and am wondering if the loss on the 184K will offset the $90,000 deferred income, I wont see any of the income in the future either. Second issue, I received a letter from the IRS stating I have a dependent that was claimed on another return. I dont know for sure, but it could be true, My daughter got married last October and she probably claimed herself on her and her husbands 2008 return. question, can a dependent be split between 2 returns? what is the definition of a dependent? she is 23 graduated ASU as a full time student in spring of 2008 and started working full time in aug 2008 but still lived at home through September.
A: Your first question is a little complicated to answer on a blog. In order to answer this question, I would need a lot more information. I suggest you speak to your tax advisor for this first question. If you want to know more about our personal tax advisory services, please call our office at 866.467.5809 and ask for Wendy.
Your second question is a little easier. You can’t really split a dependency exemption. Once your daughter is married and files a joint return with her husband, you can’t claim her as a dependent. If she files separately from her husband, and you provided more than half her support, you could have claimed her as a dependent. My guess is she filed that joint return with her husband so you are probably stuck.
Warmest regards,
Tom