Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers’ tax questions and covers the following topics:

And much more!

Announcer 0:01

Dr. Friday 0:31

Dr. Friday 0:56

Dr. Friday 1:50

Dr. Friday 2:28

Dr. Friday 2:51

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers’ tax questions and covers the following topics:

And much more!

Announcer 0:01

No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 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. 737-WWTN. That’s 737-9986. So here’s your host, financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30

G’day, this is the Dr. Friday Show and we are here live in studio. So if you want to join us, all you have to do is pick up the phone. 615-737-9986. 615-737-9986. Taking your calls, talking about my favorite subject, which is taxes. But if you’ve got some IRS issues or if you’re dealing with any of the usual, um, I’m getting love letters, I don’t know exactly what I need to do with them, or maybe you’re at the point in your life where you’re like, boom, I am so ready to get the IRS in control so I can go do what I want to do. Maybe that’s buy a house. Kids are getting ready to go to college. All of those are usually the requirements we have when it’s people start thinking about, or maybe you’re even getting close to retirement and you’re like, wait a second, my biggest assets, my home, and I owe the IRS, so I can’t really sell the house because if I do, I have these issues. And maybe there’s something you can do. Maybe there’s a way of either making payments or getting something so that the resolution is done, taken care of, and then we can go forward from there.

Dr. Friday 1:39

So if you want to understand more about those options, or if you’ve got questions, maybe you haven’t filed your 2022 or you’re thinking about 2023, maybe you’ve sold some property, maybe you’ve inherited or thinking about selling a rental property and you’re not too sure what’s the process. How do I know? So that way, the biggest mistake people make is they don’t think about the taxes. They go and reinvest that money someplace, and then they have to file their taxes and they owe 30, 40, 50, $60,000 on the sale of something. And now the money is tied up in something else. Very important for you to be able to understand how this is going to affect you and what you’re going to need to know. Don’t reinvest unless you’re doing a 1031 exchange. Do not reinvest the IRS money. It’s never going to be a good thing. So let’s go back. Oh, looks like Pat from Franklin or Patricia from Franklin is on the line. Let’s go ahead and hit her. Hey, Patricia.

Caller 2:41

Good afternoon, Dr. Frey. Thank you for taking my call. I received something last week, supposedly from the IRS, but it’s from Boston, Texas, and it’s a different kind of form I’ve never received before. And they’re asking me to fill out a form and contact them in a different number than normally IRS. It says we received a tax return for tax 2022 using your name and Social Security number. I have to, if I file, I have to return and call the IRS at verify return. We need

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Dr. Friday 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 on this overcast Saturday. And for many of you tax season for 2022 is kind of over. For a few of you that might have been procrastinating a little bit if you live in Rutherford County and a couple of the neighboring ones. Remember, you're under a storm, federal storm damage. So you guys have until July 31.

Dr. Friday 0:54 Theoretically, if you did not file an extension, if you're under extension, then you're fine for right now. But if you haven't paid your tax bill and you still have the ability to get the money, you might find that you don't have any penalties until that date. Unless, of course, you have to make quarterly. But the actual amount due would be less for those that are in that area.

Dr. Friday 1:14 So really important to make sure that you, if you are in that situation that you're dealing with, what you want to do and how you're going to take care of your taxes as an enrolled agent licensed by the Internal Revenue Service, I do taxes and representation that is what I do a lot of.

Dr. Friday 1:34 So if you have been getting love letters, or maybe you haven't received any love letters, I've had several that come in this last week, no love letters, they're just tired, they want to get even, they just want to get everything resolved. And they're just ready to get, you know, to figure out what is it gonna take to get back on track with the IRS so they can file their taxes on time not worry about their banks or their paychecks or their homes, having levies or liens against them.

Dr. Friday 2:01 It's very, very important to understand what your rights are, how you can do it and what you're going to be able to do. And the first thing I know many of you guys listen to this station, there are other people other than myself that does this, a lot of them advertise, they don't do their own radio show.

Dr. Friday 2:17 But just be careful with anyone, including myself, get that first initial meeting, do a face to face talk to them about how this is going to be about you what your particular situation is going to be. It sounds so great. I had a client that text me, and she had had some organization.

Dr. Friday 2:38 Of course, as soon as there's a lovey or lien or anything that the IRS has put out there on public knowledge, they then start bombarding you with all these great deals, wonderful situations. And one of them. They she sent me a text and said, well, for you know, $400, they said that they would do all the representation and they would and if they didn't get it done, they weren't charged or anything.

Dr. Friday 3:05 Well, I'll be honest, I would be just as nervous about those th

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:30 Dr. Friday and the doctor is in the house. We are here live in studio. So if you've got a question, are you working on maybe preparing for your 2023? Maybe you're selling some real estate you're trying to figure out? What's the best way to do whatever it is you're trying to accomplish? This may be the show to offer that information, at least on the tech side 615-737-9986, we are taking your calls talking about my favorite subject, which is taxes, how is it going to affect if you decide to sell your your product or you sell a home? What is the situation? And how are you going to deal with that and making sure you have enough tax?

Dr. Friday 1:17 I was talking to a client earlier today. And he had been selling off some of his rental real estate. And he was wanting to know what percentage of taxation should he be looking at when it comes to resale of that real estate? And it's a great question because especially if you're selling multiple properties, we do have the 0% capital gains. But even if he even if he didn't make capital gains, he would have recaptured depreciation required on those properties because he's owned a burned number of years. So it's very important that if you have something like that, that you preempt just like him, he's selling them now he wants to know what portion of those monies need to go to Uncle Sam. So if he reinvest, he's not reinvesting with Uncle Sam's money so that way you can actually deal with your situation.

Dr. Friday 2:09 All right, let's go the phone lines hit John. Hey, John, what can I do for you, sweetie?

Caller 2:14 Oh, hi. I've been retired for a couple of years now. And I'm planning to go back into the workforce. Now I'm collecting Social Security, I did not start taking Social Security to my full age, which was four months I was I was born in 1956. Okay, so so so you know, I'm getting full Social Security retirement benefits.

Dr. Friday 2:39 So no penalty for taking the Social Security, but it will be taxable. But go ahead.

Caller 2:44 Well, that's my question. Because I want to go back to work part time, I was I was in sales as a commissioned salesman. And quite frankly, at this point in my life, I don't want to be working 6070 hours a week, and I don't want to stress of a commissioned salesman. So I also have aviation experience from the Navy. So I'm thinking about possibly part time at the airport. Or there's a friend of mine in the construction business that needs help with customer service and estimates in that part time. So both of those are in my wheelhouse. So what I'm

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Dr. Friday 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:30 Yay. I'm Dr. Friday and the doctor is in the house, we have made it through another fabulous tax season. And we're ready to look at what's going to be happening you either have filed your taxes already, or you're still like myself or on the extension, but also working on your 2023 tax situation because we're already four months getting ready to start our fifth month of 2023.

Dr. Friday 0:55 So if there is any tax planning requirements, any type of situation where you already know you might be going into a tax situation, even if it's not necessarily that you owe money, but you don't understand what it is that you've got going on, then you want to basically make sure that you don't have to deal with any of that situation as far as you know how it's going to work or anything else. So what you want to basically be able to do is take care of yourself, but also preamp what could happen in 2023, that might make it more important or more.

Dr. Friday 1:32 The information that you get can save you tax dollars, or just that big rush of oh my gosh, I owe $25,000. Every year, we ended up with some of that. Sometimes it's a shocker, right? We don't know why we owe it, we don't have any idea what the situation is. But if you do owe it, and you had that same situation, then you might as well stop dealing with that, you know, the problem, you might as well just basically say, You know what, I'm gonna basically go forward, make sure I've got everything happening.

Dr. Friday 2:02 And I know if I sell this, I need to set this much money aside for the taxes. If for some reason, we overestimate that, well then guess what, you've got the money, no problem, everything's good. But if you don't, and then you go ahead and reinvest that money, that's usually the biggest problem is that if you've got a plan, and I still get people that walk into my office, and they have sold their primary home, or they've sold another piece of real estate, not so much the primary because we do have the exclusion of 500,000 and a 250.

Dr. Friday 2:32 But I will be honest, in the last year or so we've had more than one situation where that 250 or the 500,000 doesn't cover the profit on a home, but they say, "Oh, I've really invested it already into another piece of real estate." Well, tax law right now, the current tax law has nothing to do with that only if you do this under a 1031 A 1031 cannot be done on your primary home. So it really only applies to business property for business property at 1031. Exchange is a light kind of change.

Dr. Friday 3:03 So if you have a rental property and you want to sell that rental property, and then you turn around and you want to buy another one, you might want to think consid

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Dr. Friday 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:31 This is Dr. Friday, and this is the Dr. Friday show we are live on this beautiful Saturday before the end of tax season for all of you that thought today was tax day. Well, you're wrong today is not tax day Tax Day is Tuesday, that is the day that we're going to have it that's the 18th that is when your taxes are due that you must pay in file not only your taxes, but your first extension, or your first estimated or file your extension due date for individuals. T

Dr. Friday 1:02 hose are when you need to make. And remember, if you're filing an extension, an extension is only as good as the amount of money you're paying, in some ways to be quite honest. A lot of times people are sitting there going, oh, wait a second, I you know, I filed an extension. I don't have to worry about this. But if you filed an extension, did you actually file it with money? Or did you just file the extension? Do you owe any money? Because that's also another huge question.

Dr. Friday 1:30 If we don't owe any money, then we don't have to worry about what you owe or what you don't owe. But if you do owe money, then you need to make sure that you've paid that money in and that you're doing what you need to do to make the situation you know work for you. So again, just making sure that if you owe money that you have taken care of the situation so that way, you don't actually filing an extension. It's just extending the time that we have to file the paperwork. All right, why don't we go ahead and head right to the phones because I got lucky enough. And it looks like we've got our first caller on there. See if I can move this a little bit. This is Dr. Friday.

Caller 2:11 Hi, this is Jay from Murfreesboro. How are you Dr. Friday?

Dr. Friday 2:15 Hey, Jay, I'm doing awesome. What can I do for you?

Caller 2:18 Yes, ma'am. My father in law passed away in January of 2022. So he had about one month of income, combination of Social Security, a military pension, and then a pension from another job. So we have this basically this one month of income in 2022. And I'm not sure how to file that or how to take care that I will say that when we did his 2021 taxes, we let the IRS know that he had passed away. And my wife was like the beneficiary of his refund check. But I've got this one month of income for 2022. And I'm not sure what to do about that in terms of filing.

Dr. Friday 2:59 So did he have any IRAs or, or anything where you had to take RMDs even though he may not have taken it before he can distribute

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:30 I'm Dr. Friday and the doctor is in the house. It is tax season and everyone is probably enjoying this wonderful Saturday outside says we had a pretty nasty storm last night. But for all of you that are like me sitting here working on tax returns, working on your personal tax returns or truly like me another person that is actually a tax person, an EA or a CPA, then we are all going to be talking about our favorite subject.

Dr. Friday 0:56 So if you've got a question concerning taxes, maybe a little bit about crypto we're going to touch because I've gotten quite a few emails this week on cryptocurrency, what's allowed what's not allowed? Can they take deductions? Are they going to have a disallowance? If they take a lot of deductions, is it going to lead to an audit? All of these are really great questions. And we'll try to hit on some of those while we're waiting for somebody to get on the phone lines if you want to join the show you can 615-737-9986 is the phone number here and the studio.

Dr. Friday 1:33 So let's talk a little bit about crypto since it seems to be on the news, or at least as far as I'm concerned, it's been in a lot of my emails. So first thing about crypto is there is going to be some they are treating crypto. In essence, if you hold it for more than 12 months, you will be able to take long term capital gains, you don't have to worry about wash sales. Crypto is not included in that. So you basically can take capital losses on its but keep in mind, here's the big one. If the cryptocurrency became worthless, you cannot take that loss worth the security isn't available for two individuals who invest in cryptocurrency, the IRS recently removed, released a memo on that topic.

Dr. Friday 2:16 So if you're not too sure about what this is, because we all know, there's been a huge change in the world of cryptocurrency, some currency has survived dropped, and then you know, is recouping. And then some of them have just completely disappeared. And if you happen to invest in one of those that is completely worthless. And the share story, I had a gentleman that had taken a self directed IRA and decided he was going to become the crypto king. And I am not a master in any sense of the word on the what happens in the world of crypto. But he was very knowledgeable, at least, he seemed to feel he had gotten the proper education to make this decision. And, and he invested it to several of them that became completely worthless. Now in his case, he thought, Well, I'm gonna be able to take some of these losses be able to do something with them. But it was a self directed IRA.

Dr. Friday 3:09 Nothing else, just the self

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:30 All right, hey, we are live in studio. I'm Dr. Friday and enrolled agents licensed with the Internal Revenue Service to do taxes and representation. So maybe you know, someone that hasn't filed taxes for a number of years, or someone that just has gotten quite a few of those love letters. And if they have them, then we need to actually sit down and chit chat, it's that simple. We need to make sure that everything is being done, because sometimes there are some deals, but I'm not going to be one of those firms that's going to turn around and say we can save you 10 cents on every dollar or terrify you that they're going to put you in jail.

Dr. Friday 1:04 I had a gentleman come in my office the other day, and he has a situation with the state of Tennessee and his first business first situation and he was terrified that they were going to lock him up because he had made this mistake on his state filing and you know, I get it, you do need to take taxes seriously, to the extent that we don't want anything to happen as far as if you don't file taxes on time. If you do things, they will take levies, liens, they can do all kinds of fun and exciting things. But there's also ways of preventing that from happening, mostly communication, and then responding to whatever it is that they're looking to get accomplished.

Dr. Friday 1:42 So it's very important. If you're dealing with the IRS, and right now, I know you guys are gonna start blowing up the phone schedule, say, Well, we're trying to deal with IRS, right, we're trying to deal with the situation. And you know, you can't reach anybody, you don't have any way of knowing if, you know, if you send something in via mail, it could take months and then by then you're also getting other love letters saying that you're still having to file or they haven't responded to the situation. Most of the time, you get more collection letters than response letters that to deal with.

Dr. Friday 2:15 And so you know, I know many people I mean, if you listen to some of the the information coming out from the White House, one of the things he's trying to do is increase the budget. Because for some of you, you may or may not have heard, but there was initially going to be a huge hiring for the IRS, and then funding kind of got pulled back on that. So they weren't able to do that. So now under the new budget, I think it's like 15% increase on their budget to help them try to find some funding. But you know, it would be great if they could increase communication. I mean, not so much. I mean, collections. Yes, it's a part of the real world, everyone has to pay taxes, or you pay what you have to pay.

Dr. Friday 2:57 But the other side of that

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can sure 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 All righty, I'm Dr. Friday, and this is the Dr. Friday show. And this is our season, as we all know, and love, taxes, taxes, taxes, that is what we're going to be considering not only talking about what happened in 2022, because once you're in front of me, there's very few things we can really do for the year of 2022. But we also need to consider some of the things that might be changing for 2023.

Dr. Friday 0:55 Now, we talked a little bit and I have some people that have, even in our office, we talked about the 1099k, I do want to reiterate that taxpayers should receive a 1099k from a third party by January 31 2024. Now, that is going to be a new, they move that date from 2022 to 2023. So tax year 2023. If you are selling things are using Venmo, PayPal, any of this cash apps, don't be surprised if you get that was changed. It's anyone that exceeds $600. Or I think it's like six transactions. It's a very small amount of what you want to do. The IRS has also put a newsletter out reminding people that if you were from some of the states, I know California because we have quite a few Californians here.

Dr. Friday 1:50 And if you received some of the inflation credits, they actually sent out with one of my clients that I've been doing forever. It just went directly into her bank, she did not even know she was getting it. She's pinging me like why did I get this refund? I'm like, you know, it says that it's some sort of inflation. Abbreviation we call it found out that this was some sort of rebate. But keep in mind, they are going to probably tax that on the federal side, we're still waiting to find out to be quite honest with you, in the standard miles rate right now is 62.5. That's pretty sweet.

Dr. Friday 2:28 So, you know, again, tracking your miles and tracking them correctly, not just, you know, not just putting some numbers down on a piece of paper or saying hey, I think I put like 40,000 miles on my car this year isn't going to fly when the IRS is wanting to have the actual information. So what we do want is we want you to use something like mileage IQ. You can also do things like any of the ones that you use to do, like I use mileage IQ, you can do any of the different ones that are available out there still like mileage IQ best.

Dr. Friday 3:07 Because that way, then you have the ability to run a report, it shows every time you start every time you stopped, you can program it. So you can say this was commuting or this was actual miles. That's what we want to be able to do because without commuting, and you know, again, you can hear a lot of different things. But I will be honest, a bit of this 25 years, I've handled quite a number of audits, especially when it comes to miles. And,

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday answers callers' tax questions and covers the following topics:

And much more!

Dr. Friday 0:01 No, no, no, she’s not a medical doctor, but she can sure 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 0:27 Good day, I'm Dr. Friday and the doctor is in the house on another wonderful Saturday where we get to talk about my favorite subject taxes; how can you not love taxes, it's already time for you to file if you haven't done it yet. And for a few of you that may have rushed to the beginning, you may find that the IRS is still sending you some forms. So my suggestion is if you've prepared your taxes, maybe wait a few more weeks just to make sure that you don't have a Charles Schwab or some sort of investment statement. I've had two that came in this morning, our clients that we thought were finished. But and in some cases, one of them. We never had this statement in the past.

Dr. Friday 1:10 So it's something new; he didn't realize he was going to generate some dividends and interest income which happened. So really just making sure that your reporting is I mean, it's not that you can't amend a tax return Well, absolutely, you can amend a tax return. But it's always easier to file an original return. Many people who are listening probably remember, at some point amending a tax return and knowing it can take six to nine months. Sometimes it seems like we can now electronically file them but that hasn't helped everything because we've done a lot of that as well and still end up with the IRS coming back saying oh we don't have that information, etc, etc.

Dr. Friday 1:48 So very important to make sure that you you know get all your documents in a row and make sure you don't have something that you know may have come in some sort of settlement. Employers that may have gotten ERTC's employee retention tax credit, remember that is dated for the years that the credit apply to so many years many of you need to amend 2021 and 2022 and men 22.

Dr. Friday 2:14 But complete it. So if you are getting ERTC credits, you need to make sure that you are reporting them correctly in your tax return. And you will get charged a penalty and interest. The IRS has ruled that with the employee retention tax credit if you're going backward, and now you owe taxes for that period, they are not waiving those penalties. Unless you know, unless you haven't had some issues where you can come up with a good reason. But it's not going to be in the book. So even though you got the windfall of extra money coming in this is not like PPP money, this is taxable income in the year that it was and some people even got some from 2020.

Dr. Friday 2:54 So don't make the mistake of saying, "Hey, I received all the money in 2022. So I'm reporting that in 2022." That is not the way ERTC is supposed to be reported. And you will need to correct each year that you received that ERTC. So very important to understand. Because last thing