The Dr. Friday Radio Show

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Tax Extension deadline Oct. 15 to file your tax return

The Infrastructure Bill being debated in Congress and the IRS monitoring bank accounts

Letter 6470 from the IRS about the Recovery Rebate Credit

The New Charitable Contribution Deduction

The IRS Using Collection Agencies

How to ensure your Stimulus Status

Tax advantages and disadvantages of inheriting a home vs buying a home from an elderly parent

Changes in the tax law for Real Estate Professionals

Donating a commercial property and how to appraise

Cryptocurrencies and how to track for tax purposes

Cryptocurrencies and wash sales

Veterans and Taxes

Capital Gaines in the sale of Motorcycle, Airplane or Boats

Earned Income Credit for taxpayers with non-qualifying children

Using the taxpayer’s prior year income for the purposes of EIC

Catching up if you’ve fallen behind in your taxes

and much more!

Transcript

Announcer 0:00

No, no, no, she's not a medical doctor, but she can share cure your tax problems or financial woes. She's the How-To Girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here's your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29

Good day, I'm Dr. Friday and the doctor is in the house. So if you're working on your tax return, remember October 15 is our deadline. So many of us are working through the weekends, trying to make sure everybody's taxes are done and completed. So if you haven't done your taxes yet, probably now would be the time to start thinking about them. You don't want to wait to the very, very last minute, you know. You can always wait until the last second to hit the send button. But you do want to get them prepared. So you can at least see what you have or what's going on.

Dr. Friday 0:56

So there you go. So you want to make sure so if you've got questions, you haven't filed your 2020 taxes yet... this is the show you want to call 615-737-9986.

Dr. Friday 1:10

I thought I'd start off the show a little bit with some new information about what's coming down the line from Congress. The infrastructure bill, excuse me, is being debated. Obviously, we all keep hearing about it. 3.5 trillion something along that line. Interestingly enough, I got this from my bank. And they're basically saying that part of this bill will be that the United States Congress contains a proposal that would require financial institutions to report to the Internal Revenue Service, the IRS, the amount that flows through account holders that have more than $600. So now we're going to start reporting... this kind of reminds you of Greece when they started charging the tax on people that held money in the bank. They're now going to have the IRS be notified if anyone has more than $600 in their bank at any given time. Now, I mean, let's be honest, that's would be a very large number of people in society. So it says money that flows through an account for more than $600. Paychecks. You know, a lot of things would be over $600. So this is part of that infrastructure bill that they keep trying to say isn't going to do anything but give us a better type of roads, better internet. You know, they keep trying to sell us, but what kind of personal information are we losing, by having this personal privacy situation that we are not getting. This is an extraordinary regulation, Burnie created, I can only imagine what's going to happen to companies like, you know

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Tax Extension deadline Oct. 15 to file your tax return

How To Know If You Are Paying Penalties and Interests.

Have There Been Tax Changes Done to the Capital Gains?

The New Charitable Contribution Deduction

Can I Get My Child Into College If I Haven't Paid My Taxes?

How to ensure your Stimulus Status

FBAR Extention Until Oct. 15, 2021

New Tax Increase In ETax and Cigarettes

How the Increase of Labor

Earned Income Credit for taxpayers with Non-Qualifying Children

How To Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00

No, no, no, she's not a medical doctor, but she can share a cure for your tax problems or financial woes. She's the How-To Girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here's your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:28

Good day, I'm Dr. Friday and the doctor is in the house. So if you've got tax questions, we all know that October 15 is just around the corner. And it is time for all of you procrastinators, which usually includes me this year, I did manage to get mine done before October 15.

Dr. Friday 0:44

But been there done that, you need to be able to get your taxes filed on time. And remember, it doesn't extend the money you owe. So one of the hardest thing is always to, you know, explain to people, "You owe this and there's going to be penalties."

Dr. Friday 0:59

Your money is due on or before April 15. Normally in the normal worlds where we don't have all these extensions and things. And then if they do give us an extension, an actual federal extension like we had one because of storm damage and things like that many people in Nashville, Williamson County, Davidson had until August 2, right?

Dr. Friday 1:20

And there wasn't going to be a penalty if you hadn't paid like normally in April. But at this point, anything you haven't paid after that August 2, assuming that you were not in that extension, you are now paying penalties and interest. Assuming you have a legitimate extension, you will not pay a late failure to file a penalty until after October 15.

Dr. Friday 1:43

They're still going to get you to fail to pay on time failing to make quarterly estimates all kinds of other failures to do. But that one is one that you really do want to have. Because most of the other ones are like point 5%, when you get a failure to file, it is 5% per month up to 25%. So that was really, really painful.

Dr. Friday 2:05

So just wanted to put that out there. If you've got questions, or maybe you've been following a little bit about what's happening in the news as far as what's kind of passed the house, and now they're looking at some proposals of what they're going to do. They keep calling these changes that they're doing that they're not going to affect the middle class, which is obviously what Biden ran on.

Dr. Friday 2:27

And the thing is, he ran on he wasn't going to do proposals that were going to be over, it wasn't gonna affect anyone unless you make $400,000 or more. But yet, a couple of things that are now on the table, of course tax unrealized capital gains, some other ideas of mainly the capital gains tax.

Dr. Friday 2:49

They're also going to hit some new taxes that they have out there raising cigarette tax and adding in E tax. I don't smoke, so I guess it would have no effect directly to me. But I have a real issue when they just start throwing in luxury taxes and liquor taxes and cigarette taxes. And they just keep grabbing more and more things they consider those.

Dr. Friday 3:09

So I mean, you know, again,

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Tax Extension deadline Oct. 15 to file your tax return

Tax Tips For the End of the Year From Dr. Friday

FBAR Extention Until Oct. 15, 2021

How To Be Prepared for the Advanced Child Credit

Certain Limitations Contributing to A Roth IRA

Standard Deduction Changes for 2020 Tax

Does the IRS Know How Much Money I've Gifted Someone?

How To Know If You Are Paying Penalties and Interests

Tax Changes Done to the Capital Gains

The New Charitable Contribution Deduction

How to Get In Touch with the IRS

Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00

No, no, no, she's not a medical doctor, but she can share a cure for your tax problems or financial woes. She's the How-To Girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here's your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:21

Good day. I'm Dr. Friday and the doctor is in the house. We are all working on our last big weekend for the final numbers for the individual and corporate.

Dr. Friday 0:38

If you're level 20, your due date is 10/15 which is next Friday. So now's the time to hopefully sit in front of that computer when it's a little bit quiet, I hope and make those numbers sing for you so that way. And I have quite a few people to be quite honest with you I am in the process of working with many people or you know, my clients at least will email me things that are coming up things that have changed.

Dr. Friday 1:05

And there, you know, we have quite a few people that sold real estate. It's that simple. So quite a bit of real estate. And in doing so you may have created some tax situation, especially if it was rental real estate because rental real estate can usually have recaptured capital gains along with recapture of depreciation sorry, which is ordinary income plus the capital gains.

Dr. Friday 1:30

So we might need to make sure that you're covering both of those. So that you are ready, when comes few more months and we get ready to start looking at doing taxes, that we're not telling you that you owe another, you know, $50,000 in taxes. I know in the last just today alone, I've had three people I've been working with clients that have sold real estate that has been rental real estate, and all of them have had some pretty good tax bills, one of them only paid like 40,000 and sold it for like 410,000. So obviously in those situations, you're looking at some pretty big capital gains.

Dr. Friday 2:06

So if you've got questions because it's not just straight across the board 15% if you've got questions, give me a call, you can do it here in the studio at 615-737-9986, taking your calls, talking about pretty much all things when it comes to taxes.

Dr. Friday 2:25

So if you're in the process of finishing your 2020s, or prepping for your 2021, you know that there's going to be certain things like some changes, the standard deduction in 2021 is going to be 25,100 for married filing jointly, 12,550single and 18,800 for the head of household. This is including inflation. So every year, well go up a little bit.

Dr. Friday 2:51

I do want to make sure individuals that are receiving the advanced child tax credit that you have prepared that information. Especially, it's just going to be a little confusing in my mind, because maybe I deal with a lot of people that go two different directions. But income has gone up. A prime example is if you sell a piece of real estate and you're getting the advanced child credit, it may come down to a situation where you might need to give this money back.

Dr. Friday 3:24

I mean,