Listen to this week’s episode of the Dr. Friday Show, broadcast live every Saturday at 2:00pm Central on on 99.7 WTN!
Transcript
Announcer: 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 doctor Friday show. Do you have a question for doctor Friday? Call her now. 737-WWTN 737- 9986. So here’s your host financial counselor and tax consultant doctor Friday.
Dr. Friday: Good day! Hey, I’m doctor Friday and the doctor is in the house. We are live here in the studio, so if you have questions concerning taxes or if you’re getting ready to prepare your taxes and we’ve got a friend that you know, maybe they need a little help with some tax questions. This is the show you need to listen to and I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation, which basically means guys, that’s all I really do. So if you haven’t filed taxes for a number of years of you have IRS issues and maybe been avoiding them. Maybe you’re not even sure where to start. Remember we don’t take your name and number down on the show. So there is no way of us knowing who’s really calling us. So feel free to use whatever name you prefer. Hopefully when I can pronounce, if you want to join the show, (615) 737-9986 (615) 737-9986.
Dr. Friday: As we know the 2018 tax season has started. I guess some people refer to as the 2019 because the year in which it’s happening but we’re doing 18 tax returns. So in doing those tax returns you have a lot of things that you need to get started and doing a many of you are going to find that it’s not quite as maybe as good as you thought or people are not remembering that they actually got a little bit more on each of that paycheck. So if you’ve got questions again (615) 737-9986 we gonna go right to the phone lines if we can hit Tee. Hey Tee, thanks for calling.
Caller: Yes, thanks for taking my call. I am trying to buy a house and I had 2009-2010 and a non collectible status. Still is, and I guess they only go back for up to four years for transcript.
Dr. Friday: No, you can usually. I mean you can get your transcripts. We go back to 99, so I know that as far as, I mean now. As far as getting copies of the fiscal tax returns, that’s true. You can only go back three years. But as far as getting your transcripts, you should be able to go back to like I say 99 and get the basic information. 10 years we can get all the WTS and 10 99 and stuff.
Caller: But for a underwriter, they only want the last three years?
Dr. Friday: Well the underwriter, yes. I guess they only need two or three years for that’s the mortgage interest. I’m not to sure . But normally whenever I’ve gotten a mortgage, they’ve only really need the last two years plus the current year, year end.
Caller: Okay.
Dr. Friday: But now if you’ve got a lien or Levy, I mean there could, you know, against your credit, even though you’re in a non collectible. They could still have, you know, a lovey against your credit number, your social security number. You know, that may be an issue. And also I would advise that even though you’re a non collectible, if you buy a house, while that’s still out there, they can put a levy against that house.
Caller: Yeah, yeah.
Dr. Friday: Okay. Just wanna make sure because some people like, oh, you know, I haven’t had to really worry about it. But yeah, once you get an asset, then they may decide to become a little bit more aggressive.
Caller: Yeah. But they’re not in the business of making people homeless.
Dr. Friday: Oh, no, no, no. Yes, no, that’s. They don’t want the real estate. They just really want something to secure what we did owe them at some point.
Caller: Okay. And the other thing was I got caught in that 2008 rebundling and I had to foreclose and that was what happened to me back then, all of that. So it’s been over seven years.
Dr. Friday: You’re talking again for the mortgage side and not showing up0n your taxes? No, not that. I mean, not showing up on your credit under right. Yes. You know, again, I know that seven years is what some of that will fall off, but then if it got picked up by a collection company, my understanding can come back on. So my suggestion would be is obviously go pull your, I mean, if you haven’t already pull your,
Caller: it’s clean. Oh, good. Okay, great. That’s good news. Yeah. It’s like 7.80 – 7.90.
Dr. Friday: Oh, you’re great. Okay, good. That’s perfect. So I was trying to find the right place and go for it. I don’t think …go ahead
Caller: We can have a distance for closure. You know, life happens.
Dr. Friday: Oh yeah.I mean, We have it in our family that has had the same thing back in 2007, 2008 when things, you know, that got caught in arms or whatever, but they’ve managed to reestablish. Oh, absolutely. Yes.
Caller: Okay. All right. Cool. Thanks.
Dr. Friday: No worries. Thanks. Bye. All right. Let’s see here. We have quite a few phone calls come in. I really appreciate that. Let’s go to Rob first. Hey Rob.
Caller: Hey, how’s it going?
Dr. Friday: I am living the wild life, my love. Living the wild life. What’s happening.
Caller: Okay. So, I moved from out of state Tennessee and, so this tax season I’ll be filing for three years because I didn’t file the past two years. But two years ago I got married and I have moved from obviously one state to another. I guess I’m asking when I file this year, should I be filing these three years, two of these as married and a third one back as single? And should I be sure to be hiring someone to do this taxes and not just a pop up shop?
Dr. Friday: Well, I mean, I would say it’s a little bit more than black and white and being able to go back. Sometimes it’s hard to get the software, but the basic answer is the year in which you’re married, no matter when you’re married in that year, you are considered married. So the last two years you’ve been married. So yes, you will claim either married filing separately or married filing jointly, depending on if your wife has already filed or not. Her situation the first year, that you know. Three years ago you would just file a single or head of household, whatever that sends your wish was. And then does the state you come from have a state income tax?
Caller: Yeah. Oh yeah.
Dr. Friday: Okay. So then you know, you just need to go back. Once you figure out the federal, then you need to go ahead and file the state income tax for the years in which you were living in the other states.
Caller: Yeah. I’ve heard a lot of mixed reviews filed jointly and single and we don’t own a home right now, but we’re looking to purchase in October [inaudible] his back filing. Is any of that going to affect us purchasing a home?
Dr. Friday: I would say you almost have to do it because just as the young lady was calling before you, I mean. They’re gonna want the last two to three years of tax returns. If you haven’t filed, they’re going to pull those transcripts and they’re gonna find out that. They’re not going to like that, so my answer to that would be much better to go ahead and get them filed and posted so you can prove that you don’t have any debt to the IRS.
Caller: I got You. All right, we’ll beautiful then. Right. I know and then as far as hiring.
Dr. Friday: Well if you want to hire us, obviously we do it everyday, all the time. You know, that’s kind of what we do all the time. But if a, and you can go to the drfriday.com and set up a tax appointment. If it’s just W2’s I’ve tell people more than once, you can usually do your own tax return, but most of the software’s only are active for the year in which we’re operating. So I don’t know if you’d be able to go backwards. You might be able to. I’ve never, I don’t know for sure. I know in our firm we have it all going all back to 2000. But you know, what I mean? I don’t know for sure what other people offer as far as being able to use their software.
Caller: And is that kind of thing costs a fortune?
Dr. Friday: We are looking about, in our firm. You’re looking for the federal side about $125 each and about $55 for the states.
Caller: That’s great. Okay. Well, you just sold me. So thank you so much. All right. No worries mate. Thanks. Bye.
Dr. Friday: All right, thanks for holding on guys. We’ve got two. We’ve Greg and Mr. Brown. Greg, you were first. Mr. Brown, please hold. Hey Greg.
Caller: Hey, how are you today? I am awesome. Excellent, excellent. Love your show. No worries. What can I do for you? My wife received her W2, we already filed but I was concerned about something because I’ve never seen it before. Her social security taxes withholdings is twice what the federal withholding is. Is that a mistake on the person that is keeping her Taxes through her job or is that normal? Because I’ve never seen it before.
Dr. Friday: It would be, I mean. It can certainly be normal. It really depends on what she’s claiming. If she’s claiming married and five kids, then her federal withholding can be very, very small. The social security is 6.2 of whatever she earned. That’s the set number. Just like Medicare is 1.45 that doesn’t fluctuate no matter what. So box one of her or rocks two. Excuse me. Where it says federal withholding that is flexible, depending on what your wife is claiming as far as married, single, how many kids, blah, blah. So that would be the only…
Caller: At that time she was single and one dependent.
Dr. Friday: Yeah.t’s certainly possible. I mean again, you know, the social security is set at 6.2%. If her income was $20,000 she could actually physically put zero. In theory, she could have had zero in federal withholdings. She would still had the 6.2 in the Medicare.
Caller: Okay. I just never seen that before. In my many years of filing taxes. My social security was held. It was always about half of what the federal was, but It’s twice as much this time. So it kind of concerned.
Dr. Friday: No worries. Thanks, Sir. Bye Bye. All right,.Mr. Brown, thank you so much for holding Mr. Brown. What’s happening?
Caller: Well, good afternoon, doctor. Hi. I’ve got a question for you. In the years past I’ve been able to deduct a personal expenses, when I go to filing my taxes. Now, correct me if I’m wrong, but there’s this year an exception?
Dr. Friday: hasta la vista ,baby. If The next five years, you will not be deducting personal expenses as far as, I think what Mr. Brown, just for people who are listening or talking about it. He is able to, maybe he uses his own personal car and uses it for his job and therefore he doesn’t get reimbursed from miles or he gets a smaller portion. He’s able to write off the difference sometimes or Home Office if you work from home because your employer allows you, those are the kinds of things. You use cell phones? Those would have been allowed up through 2017 and 2018 the 2106 or a business expenses for employees is gone.
Caller: Oh, Okay.
Dr. Friday: I know. It’s painful. Trust me. I’ve done several returns now. It hurts.
Caller: All right, well that was my question.
Dr. Friday: No worries. Thanks. Bye. Another one. I just did, my brother who lives in California did his tax return and you know, in Tennessee we don’t think a whole bunch about state income tax because we don’t really have very much, very few of my clients pay a ton to the halls, income tax. So, most people use sales tax when we file our taxes here. But in California, of course there’s a state income tax plus property taxes and he ended up leaving more than a $16,000, because its limit is $10,000. So his combined between him and his wife was more than $26,000 and they can only claim $10k. So, again, individuals that don’t live in states with income tax, are going to appreciate this tax law. I think a little bit more than individuals that I have in New Jersey.
Dr. Friday: I talk about all the time, but California as well. Um, so that, that hurt, you know, at their income bracket. You know, they lost several thousand dollars and what they would have normally received even in the, I think even if they had the higher tax bracket, it still would’ve been a better in the old tax school for them. So not everyone is going to appreciate this new tax code and certainly isn’t going to work for everybody. I think it definitely helps lower income individuals more than, um, in my opinion the higher income brackets. But the middle class is the one that gets hit the hardest I think. So when we get back, I am going to talk about a way that you can bunch your deductions and find out maybe in a lot of times people are like, well, I can’t really do this, but you can. You can do some bunching a, that’s just basically where I call even odd. We’ll talk a little bit about how that works in a, also about a donor advisor funds. That way maybe you can still enjoy contributing to your organization’s every year, but putting the money in every other year, we’re going to be right back with the doctor Friday show. If you want to join us here in the studio. (615)737-9986
Dr. Friday: Alrighty, we are back. Rocking on the studio. This is doctor Friday an enrolled agent licensed with the Internal Revenue Service. To do what? Taxes and representation. So again, if you’ve got tax questions or you’re dealing with past tax issues, this is the show for you. You can join me live here right now. (615)737-9986 (615)737-9986
Dr. Friday: So a lot of times I talk about Bunching. which basically means a way of maximizing your itemizing versus taking the standard deduction. We now have a situation where you have to have more than $24,000 as a single $12,000 as a married to a man backwards, sorry, $12,000 as a single $24,000 as a married couple. And if you don’t exceed that dollar amount, you will not be itemizing. But sometimes what happens is you have the ability, let’s say that you usually give eight or $10,000. You have property tax of another six or eight. So maybe you’re close, if you were to double up on your charitable contributions, you might be able to actually do bunching. Why do you care? Because right now people say your charitable contributions don’t make a difference. I don’t agree if just because you’re not in debt doesn’t mean you’re not maximizing. You’re getting more than what you paid for.
Dr. Friday: But if you could actually get $24,000 some years and then $30,000 the next year, then that would actually maximize it even more. And that way you would get it and one way you can do that is through a donor advisor fund. I don’t sell these products. All I’m going to tell you is is one you need to talk to your financial planner about because if you’re going to give to charities, you could put all the money in one year, but maybe you still want to give to your church in the same year, and the next year. Because when we bunch, what happens is let’s just say we do it every even year. We take off all the charitable contribution, every odd, you don’t normally contribute through a donor advisor. You could still be giving that same contribution in the odd years because the money was contributed to this fun and you still can direct it in the way you want. It’s very important when you’re looking for ways to really save tax dollars and still do what we like to do. So if you’ve got questions again, you might want to talk to your financial advisor about a donor advisor fund. All right, let’s go to Linda and then we’re going to hit David. Hey Linda.
Caller: Hi. Thank you for taking my call.
Caller: Thanks.
Caller: I’m right now just below to cutoff for the 0% tax. I’m head of household. I make $50,000 and the market for a new job. However, how will it affect me tax wise if I take a job that say pays me $57,000, will I be hurting myself by taking a job with more income, tax wise?
Dr. Friday: Well, I mean, I guess I’ve never been a person. I’ll be straight up. I’ve never been a person to take on to leave debt there because I could itemize and I’m certainly not going to be a person that says, hey, if you can get a better job not to go ahead and get a better job versus pain, that’s $7,000 maybe could end up hitting you at a 12% tax versus, or a 10% tax if you’re at the 0% tax right now, but as a head of household individual, if you’re making $50,000 or you can make up to, well actually you can make up to anywhere between $13,000 and $70,000 you basically at the same tax bracket, which is 12
Caller: okay.
Caller: Okay. So, its not gonna bite me in the behind if I get a job or something
Caller: If you get an increase of 10 grand or something. Yes, no, it’s should hopefully put more money in your pocket.
Caller: Oh yes, I need that. Thank you very much. I just so confused about it. It got me.
Caller: Just right there with me and everybody else will trust me. It’s, it’s definitely a challenge.
Caller: Thank you for everything you do, Bye.
Caller: All right, let’s hit David. Then we’ll hit Jill. Hey David.
Caller: Hi hello. How are you doing?
Caller: I am doing awesome. What’s happening?
Caller: A beautiful day today, I’m doing pretty good. I have a question to ask. My Dad died back in 2006, my mom just passed last July. They give us two checks that had $36,000 They had put it in the money account and it gained interest and stuff. How will that affect my taxes this year?
Dr. Friday: So, Who gifted you this? Your mom or the state gave you these checks?
Caller: I guess, the state.
Caller: We are six kids in my family.
Dr. Friday: I’ll tell you. So, Bottom line is most likely we’d have to actually talk to whoever’s handling the estate, but in most cases you had to step up in basis. So either if the money was already in the checking account and they just distributed that fund, or they sold mom and dad’s house and then they distributed those funds in those two cases, 99% of the time, those are tax free funds. You would not have to pay any tax at all. If there was an IRA or an annuity and they cashed it out, there could be some taxes. So, you know, it really depends on where the money came from that was in the State to get, give you a black and white answer. And I would basically um, you know, ask whoever’s handling the account to be able to do that, to just be able to um, get, you know, get that information to you to find out they should be issuing you either a K1 if there was a trust, if it was just straight out of an estate, then they should be giving you something we refer to as basis if something was sold and then you know, they, they gave it to you guys and distributed it, then it would be something.
Dr. Friday: But most of the time the estate handles all of that. All the taxes are with are usually held back paid and then the money is distributed to the beneficiaries. So I would say you have a pretty good chance that the money you have sitting in the bank has already been taxed. But again, I would definitely call it usually one of the sibs is the executor. Is that the case, one of your siblings?
Caller: Right
Dr. Friday: Yeah. So I’m
Caller: I think my sister may be the one.
Dr. Friday: Okay. So I would tell, I would just start with her and just say, Hey, I’m getting ready to prepare my taxes. Do I need to worry about anything from mom’s estate? she would be able to probably tell you straight out. No, that was already taxed and we’re good. Most likely they’ll tell you. Yeah. Okay.
Caller: All right. I appreciate it.
Dr. Friday: Thanks for listening, David. I Appreciate it. Thank you. All right, we’ve got Jill. Hello Jill.
Caller: Hi Dr. Friday
Dr. Friday: Oh, this is my girl, Jill. I know who this is. I’m excited it’s tax time. What are we doing?
Caller: Thanks, so… I sold the house last a year. And the capital gain is anyway, I thought I heard you say that if you did, when you pay tax every year. Does that come off the capital gain or did I misunderstand that completely?
Dr. Friday: Absolutely. No, that would have nothing. You completely, you’re hoping Jill. But that’s not the case. That’s not the case. So let’s just use an example that you sold an investment property, be it either an existing rental or one you just held and flipped and you made, if it was over a year and you made $50,000 in your, you know, your other income is less than a, let’s say $100,000. So your total incomes, one 50, you’d pay 15% tax on that. In most cases. So, if it was short term mean didn’t hold it for more than a year, then that property would be at ordinary income rates
Dr. Friday: 50,000. So, knowing you, I’m hoping that it was held for more than a year.
Caller: Yeah, that. The other question, one more question please. I’m sorry I went blank.
Dr. Friday: I had that effect on people a lot. Don’t worry about it . Call me back, thanks. All right. This is the doctor Friday show and if you want to join a (615)737-9986 (615)737-9986. We are talking about the advisor fund. I just want to reiterate that it’s really important if people want to contribute and still control their contributions. It is something that can be used, it may not be for everyone. I’m not a financial advisor, but it does work for taxes because the year in which you contribute to the advisor fund is when it actually is a tax deduction. So if we, if you have the cash flow and you can contribute enough for the two years and then you can actually spread it out, even though you’re still using that fun to give the next year when we’re not actually taking off tax dollars, it makes it work really well. It’s a a little bit, especially now. We were often close in the past with our taxes, but this is a new one that will actually have to deal with when it comes to the new tax law and things that are, you know, we’re just trying to maximize ways that we can put more money in our pocket and not have to deal with it. All right, let’s hit Craig. Hey Craig. What you got.
Caller: hello doctor Friday. Hi. My wife started working this year. And, um, my question is how does that affect my income?
Caller: As filing jointly or filing separately?
Dr. Friday: Okay. So normally filing separately, in most cases, there are certain penalties that have come in. Now you may not have student loan interest, you may not have any children at home. So, and you may not itemize now. So it may be that it has no benefit or you know. It’s even break where you both basically get the same or it may turn out to be more of a penalty. So I don’t normally lean towards married filing separately unless somebody is self employed and we feel this a risk for audit or putting that other spouse may be in jeopardy or, there’s other reasons, student loan interest, things like this that there’s this collections and things on. So normally Craig, we would go for married filing jointly, and in that case, you’re going to add her income on top of yours. So if you’re married filing jointly, that means if you guys are making more than $100,000 combined, everything above that, it’s going to hit 22. Everything below is at 12. So that’s kind of a big lead, but depending on whatever your income is, we’re gonna have to add her above so many times. If your income is already close to that 7,500 I would have her claim, you know, Do you guys have kids at home?
Caller: No.
Dr. Friday: Okay. So I would actually switch her to like single and zero so, that she has a little bit more come out because it’s going to be taxed at a higher rate than a normal individual that may be just living off of their own wages, like a single individual. Does that make sense? A little bit. Yeah. So I don’t know what she did this year, but you know, you may find that you don’t either get as much, or you may even find that you owe a few dollars because of her additional income and you can, you know, I’ll need to adjust her W4 to offset that difference.
Caller: Right. Okay. That was, that was where I was headed.
Dr. Friday: No worries. Thanks. Sweet hearth. All right. Let’s see if we can hit Larry Real quick. Hey Larry.
Caller: Yeah. The reason I was calling. Thanks for taking my call, but on the 10 on a form you get when you own a home call, a 1098 interest. Yes. What, what do you get the claim on that? I mean I just got the one part where it says mortgage insurance for $3000
Dr. Friday: Well I shouldn’t say you. If you have PMI, you would be able to claim that if you have points or if you have mortgage interest and the property taxes, depending on what you have.
Caller: So 0 points on the number 6. I can write that in a box and I’ll get that for credit?
Dr. Friday: You would get that credit just like you do the mortgage interest as long as the, you know, there’s a little separate section under that same thing. Hasn’t been done since 2000 and I’m assuming you have more than 2002 or something. And so yeah, all that Larry You’ll put that and then the property taxes, unless you paid them and yourself should be on that same form.
Caller: Right. So do I combine those two together?
Dr. Friday: No, you put them on separately. There should be separate lines on your tax form
Caller: Okay,
Dr. Friday: no problem. Thanks, Mike. All right, let’s take a break and when we get back, we’ll do more of the doctor Friday show. You can join me live here in studio (615) 737-9986.
Dr. Friday: Alrighty, we are back live in the studio and I’m going to jump in right here early so we can get enough calls through here. We’ve got Suzanne. Hey Suzanne,
Caller: Good afternoon.
Dr. Friday: Good afternoon. Thank you for holding. Yes,
Caller: I have a question regarding VA disability benefits. I know they are not taxable. However, my husband is in a nursing home. We’ve been profit pay for while and what we pay exceeds what our tax return is going to show for income, is that something I need to worry about? Are they going to ask questions? So where’d you get all this extra money?
Dr. Friday: Well, no, because even though we don’t put it on the tax return, the VA benefits shows up under your husband’s transcripts. So the IRS knows that they have, you know, that you’re also getting these benefits for his time served. So don’t even sweat that. It’s, it’s on his record. It’s just not having to be put on a tax return. Okay. Okay, no problem. Thank you sweetheart. Right. All right, and we’re going to go right to Dave. Hello, Dave.
Caller: Yes. Uh, I have a question, I bought my daughter a house last year.
Dr. Friday: What a nice daddy
Caller: Well, she’s going through a divorce and it’s in my name. Okay. You know, and uh, uh, well she’s making payments so. Okay. Yeah. Can I take the interest off of my taxes?
Dr. Friday: In theory, she would have to, I mean she should take it off hers. If you’re not paying for the house, she could take it off of hers. Yes she can because she can prove that she’s making the payments.
Caller: That’s great. That’s great. Thank you.
Dr. Friday: Well that was an easy one. Thanks Dave. Appreciate it. Okay. All right. We are live and we only have about Oh, six minutes left of the show, so please, if you have any questions you can join us quickly. (615) 737-9986. If for so many reasons you can’t get through the phone lines, um, you can go to the web and email me friday@drfriday.com or if you’re just looking to set up a tax appointment, you can do that @ drfriday.com. Click on appointments and you can set it up there. All right, we’re going to go straight to Dave again. A different Dave, I think. Hey Dave.
Caller: Hey, how you doing?
Dr. Friday: I am awesome. What’s happening?
Caller: Hi, thanks for taking my call first. Um, uh, last January. Um, hope you don’t hear that feedback? I’m getting feedback. No. Um, well a year ago I lost my wife and now I’m trying to do the online, uh, easy form, but it’s confusing me. It’s uh, explained that if I read it correctly, um, I can’t claim her death until taxes on 2020. Um, is that correct? Cause it doesn’t have anything yet. So this year I’m still supposed to file jointly, correct?
Dr. Friday: Oh yes. In the year where someone passes away. So for 2018 you would claim she passed away in when? I’m sorry,
Caller: January of last year.
Dr. Friday: Okay. So, so for all of 18, you is still be married filing jointly then?
Caller: I’m sorry. The other question that I had was when you go through the tax questions, it says, did both of you live, um, and, and the same house or in Tennessee on December 31st, 2018 there’s no way to answer no to that for her.
Dr. Friday: You would answer yes. Because in your unique situation, when somebody passes away, they consider them still living with you. I know it’s a weird question, but the answer is yes.
Caller: So next year when I do it, does it ask you to go like for a funeral expenses and all that garbage?
Dr. Friday: No, there’s no tax deduction for any of that. And next year you would be single or head of household. Okay.
Caller: Okay. And then just claim that, I would file as a widow or widower.
Dr. Friday: A widower and only if you have minor children. Otherwise you’re just single.
Caller: Okay. So just file single next year. Yes sir. I appreciate your help and I love your show. Thanks sir. Bye Bye.
Dr. Friday:Alrighty. And we’re going to head over to Lee. Hello Lee.
Caller: Hi, how are you?
Dr. Friday: I am awesome. What’s happening?
Caller: I’ve got a question about gambling income. 1099.
Dr. Friday: Another fun one. Okay. Yes.
Caller: If I take the win loss statement, do I have to itemize?
Dr. Friday: That’s the problem. There is no place for you to put gambling losses. Only games.
Caller: Okay. Yeah, I’ve lost more than I’ve won. Yes. There is no way to count that off.
Dr. Friday: Well, and this is something I haven’t approached yet for the 2018 and this is the new, you know, new tax law. Right. So my understanding, did you get a statement from whoever, um, you gambled with?
Caller: Yes, I have 1099’s for that.
Dr. Friday: And W-2G’s. Yeah. Okay. Um, and do you have the statements that also came from them as far as, um, you know, the losses and everything you have?
Caller: I don’t for this year, but I will.
Dr. Friday: Okay. So my understanding is, um, under the new tax law, obviously at this point deductions are under miscellaneous. Um, they were spared. So I’m, I’m fibbing, I’m looking online. I haven’t done a gambling W2G yet myself and I hadn’t seen it, but yes. So it’s still gonna be under the miscellaneous deduction. The loss. You have to itemize them.
Caller: Oh, you have to itemize.
Dr. Friday: Yes. That’s where the, and you always have, I mean, to be honest, even in the past, so you’d have to, you’d have to itemize and then under miscellaneous deduction on the schedule a, you would put the gambling losses only up to what you’ve lost. You can’t take it into a negative. So if you lie, if you been 30,000, you can only put 30,000 in losses.
Caller: Thank you so much. No problem mate. Okay, thanks. Bye. Bye. Bye.
Dr. Friday: All right, we’ve got a few seconds longer. Let’s see here. We’ve got Jonathan that’s been on the longest. Hey Jonathan.
Caller: Hey, Dr Friday. What can I do for you?
Caller: Um, I have uh, purchased a business license, but I didn’t actually do anything with the business. Do I still have to put that on my itemized tax?
Dr. Friday: Um, well, business license we go on a schedule C or schedule E. Um, even if you, I mean there’s no other place it wouldn’t fit on a schedule A, I mean, I’m just saying for itemizing. Um, and you make sure if you didn’t do anything with it, you still need to renew it by April the 15th, no matter what.
Caller: 07:04 Okay. So I mean, as far as the taxes, do I need to put that on there?
Dr. Friday: Yeah. Just there’s no place to put business license unless you have a schedule a or schedule C or schedule Ian, if you did, then you’d put it on there.
Caller: Okay. All right. How’s this offer one in the phase you are losing your accent. Have you noticed that?
Dr. Friday: Okay, I need to go back to Australia. Hopefully I’ll be going back next year. Your, it’s been a long, a long haul. I think it’s been about five, six years. So I’m going to have to call some sweethearts.
Caller: 07:33 I listen to you every week. Wow.
Dr. Friday: Thanks. I really appreciate it. Hey Pete, if you want to hold through all, I can get your call if you want to, uh, ask the question after this. Right now, I’m getting the music or you can call next Saturday, but I will answer your call and a second. This is the doctor Friday show, and if you want to reach me, um, Monday morning, (615) 367-0819 (615) 367-0819. You can also go to the web drfriday.com that’s drfriday.com or email friday@drfriday.com have an awesome weekend. Call you later.