Dr. Friday Radio Show – November 9, 2024

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.

If you have a question for Dr. Friday, call her now. 737 W.WTN. That’s 7379986.

So here’s your host, financial counselor and tax consultant Dr. Friday.

Good day. I’m Dr. Friday, and I’m here live in the studio. So if you want to join us, if you’ve got questions concerning taxes or what we have to expect coming up, you can give us a call here in the studio at 615-737-9986. 615-737-9986. You’ll need to make the board live on X-screen. And then we…

As an enrolled agent, I am licensed by the Internal Revenue Service to do taxes and representations.

So that’s pretty much all I do.

So this show talks a lot about the different taxes that we are responsible for when we need to file taxes.

I’ve been talking quite a bit.

I thought it was funny.

One of my clients called me or text me the other day and said, have you heard anything about B-O-I?

And I’m like, yes, I have been talking about business owner’s information, the requirement that’s due by the last day of this year.

and if you’ve opened up a new company in 2024, you need to be doing it within like 30 days.

So pretty much anyone that sets up a new company needs to also basically set up their B-O-I.

So that way, and it’s not the most complicated thing, but if you need help, obviously we’re here.

But it’s important that it’s done because they’re very scary about the penalties that are coming out.

They’re saying $500 a day if you don’t comply.

I don’t know.

We’ve never seen this.

So I have no experience of knowing what is or what isn’t going to be available to us.

But it is important that we comply so we don’t even have to find out how that $500 a day is going to happen.

Phone system is off just so you know.

He’ll be turning it on in just a second.

It looks like it’s got X’s on the whole board.

You can give us a call here.

6.1.

Thank you.

615.

737-99-86-6-15-7-3-7-9-89-6, taking if you have purchased a piece of equipment, you’re going to get 60% of it.

The rest of it will be spread over the lifetime of said vehicle or a piece of equipment, depending on what it is.

You will not get 100%.

So it’s really important that we actually look at that information because many times people will go out and buy a truck or they’ll go out and buy a dozer or they’ll go out and buy some piece of equipment thinking that it’s going to be a great idea because they’re going to write off 100% and you don’t have that on the board right now. So again, that is very important.

Let’s talk to Christian, I think it is, in Goodlettsville. Hello, sweetie. Hi. I have recently started working after not working for 11 years and I’m an 8th R consultant and I’m going to get a 1099.

Right. So I’m curious. I know that I can take tax deductions for gas and mileage and clothing and all that kind of stuff, but I don’t know where to find an official list. Right. Well, you can go to IRS.com and pull up a Schedule C. It will give you a list of all the things. Clothing is not a deduction unless it is logoed, like Century 21 jackets or something like that where it’s a Pacific. If it’s street clothes, you cannot wear them on the streets. Then yes, it may qualify, but most people’s clothing or work clothes are almost always nowadays, especially our street clothes that people, you know, wear a pair of blue jeans and a T-shirt, whatever.

So that isn’t Miles maybe.

The job that you’re doing is a 1099 is the work from your home and then you’re going out and seeing people or is there an office in which you have to go to?

How do you handle your business right now?

I do go to an office four days a week.

Okay.

So from home to that office, and that’s…

where you’re seeing or doing the business that you’re doing as a subcontractor, like a real estate agent in essence?

Correct.

Okay.

So just like myself, my office is in Britwood.

I live in Spring Hill.

We cannot deduct the miles from my house to the office because all my clients come to my office.

That is my place of business.

Same thing for you.

So now if you holding that as a caveat, the one thing you want to know is if for some reason you have to leave your office and you go and pick up office, supplies or you go meet a client or something along these different those would be deductible miles just not commuting miles from home to office okay all right awesome okay yeah but you can get most of that again at irs.gov you can pull up self-employed or schedule C that’s what you’ll be filing under and there should be some details there for you okay okay and you were just talking just a few minutes ago before I called about if you started a business. I haven’t started a business. I’m just a consultant. You’re fine at this moment, but if you had started an LLC, which is a very common thing for people usually, you know, I mean, at some point you may become a separate entity of some sort, just as a shield or whatever. But first you got to establish yourself before I would go into that personally speaking. But if you had started an LLC or registered your business with the state of Tennessee, you are required to file what’s called a business owner information under FinCEN.

But you as an independent contractor, just working as a sole proprietor in essence, no worries, nothing to have to be done.

Okay.

Awesome.

Awesome.

Thank you for much.

No problem.

Thanks, sweetheart.

Bye.

Okay.

So, and that was a great question.

And probably the only thing before I said goodbye, I write what I said to her is make sure when you kind of figure out your bottom line, whatever that number is, take 20.

20% right now it sounds like you’re going to be making less than 150,000. So take 20% set it aside for good old Uncle Sam. That’s going to be his share. And then you’ll keep the 80%. You need to start thinking about the taxes because nothing worse than coming to tax day. And then someone says you owe 10 grand and you’re sitting there going, oh my gosh. I don’t have that money. I didn’t think I was going to owe that much. Again, this would be of your net, Christian, not of the gross amount, but of the net amount. So depending on how much write-offs you come up with, you know, you still need to set about 20, 25% aside for Uncle Sam.

Okay. And that’s for anyone that’s working as a subcontractor. Nobody as a subcontractor gets away without paying taxes unless you are working upside down, meaning you’re not making any money in doing it. And be very careful because in the big picture, if you are that person, you’re going to also be working as a hobby after two out of three, two out of five years.

So if you’ve taken losses in the last two to three years and your business has not yet created any income, unless you’re a farmer growing some sort of fruit trees or something that may take five to six years to start getting harvest.

Most businesses, the IRS says nobody can afford to lose money for three years without doing a business.

So just putting that out there that if that’s the case, then you want to make sure that you are taking your.

the share for Uncle Sam out of this equation.

You need to make sure that Uncle Sam is actually going to get his share because they’re going to get it one way or the other and nothing worse than every paycheck.

Normally when you work as a W-2, you guys have your taxes come out.

It happens, you know, but most of us self-employed individuals do not have that.

We have to be our own employers.

So I can’t say that enough.

One of the biggest problems I have, well, the people that come into my office, Most of them are entrepreneurs, self-employed people that have not set enough tax dollars aside in doing something.

The second is when people sell things.

Let’s say you’re going to sell a piece of real estate or you have sold a house or a business or anything like that.

Not talking necessarily primary homes because there is some exclusions out there.

But I am talking about real estate.

Say you have a second home or you inherited a house and you held it for a number of years and then you decided to sell it.

Then you have capital gains.

those capital gains are taxed, and it’s important that you think about those taxes, because if you don’t think about the taxes, then you’re going to think about what you need to actually have to do on the other side.

And then Uncle Sam’s going to get his share.

I had a gentleman that sold a business, received quite a bit of money in his first, and his big dream was to always pay off his home.

He did that.

Unfortunately, he didn’t set any money aside for Uncle Sam.

So now he has to go get another mortgage on his home to pay back the IRS.

and that could have been handled a lot better and probably with less penalties because, you know, he knew he was getting the settlement and he just didn’t think about why he was going to have to owe the IRS for capital gains.

And again, I know that’s not what most people’s business or their practicality is, but it does come down to where that is something you have to think about, okay?

You can’t just walk around the world and think about, oh, I don’t know anything.

oh, you know, I just got this big windfall.

Very few times do we get windfalls that really come out to the point that we don’t have to deal with taxes.

Okay?

So anytime that happens and you have to deal with taxes, then you have to deal with taxes.

So just putting that out there that you need to make sure that you’ve taken that money and done what you need to do and make sure it’s the way that you have what you need.

All right.

So if you have questions, you can join us, 615-7-3-6.7.

979986-6-1-5-737-9986.

We’re taking your calls here in the studio.

Again, we have a new president coming down, and it’s going to be interesting to see how that’s going to affect our current tax laws.

Many of them were to expire in December 31st of 2025, and he goes into office in January, So we’ll be looking forward to seeing if he’s going to be able to move some of those tax situations back to what we had prior to the same as we have today.

Because obviously right now we would be going up several percentages.

I know a lot of people say that the tax cuts are for the wealthy, but most middle class people, you know, you’re going to go from 12 to 15.

The 22% is going to go to 24.

And if you were in the 24%, you’re going to go to 28.

So you would have an increase of almost, what, 6% or something like that, which could add up to quite a bit of money.

So again, just making sure that you have the right information, and hopefully we’ll be able to get you more information as we go.

All right, we’re going to get ready to take our first break here.

So if you want, you can give us a call, 615-737.

9986, 6157379986. Also, if you’re looking for an awesome idea for Christmas this year, especially for business owners, maybe you’re having a wedding or a big family get together. Lolita’s Roasters, they make custom coffees for each of you. So whatever you have, it’ll be your own type of coffee, your own brand, your own bag. It’s a really neat idea. We’re going to be doing that again in our office, found it to be very successful. So, you have, you’ll be your own type of coffee, your own brand, your own bag. It’s a really neat idea. We’re going to be doing that again in our office. I found it to be very successful. So, Again, we’re going to take our first break.

We’re going to be right back with The Doctor Friday Show.

All right.

If you want to join the show, 615-737-99-86-6-15-737-99-86, Yes, I have a question regarding collectibles.

I’ve been collecting fuels, just a hobby for 25 years.

But now I’m a senior and my wife has explained to me.

She really doesn’t have to deal with those things.

sir. My question is, if I don’t have values on, what’s the best way to value sold? Well, I’m going in and out a little bit, and I’m not sure it’s because I’m not in my studio as well, Tom, but it’s not like you said you ate collectibles and you want to know if you don’t have the actual value. The value, according to the IRS is zero. They have no, I mean, if you can’t prove that you purchase these or were gifted them from somebody, then theoretically, you will have to pay capital gains and on collectibles, capital gains can start at 24% taxation, antiques and collectibles.

That’s what I need to know.

And as far as historical value, is there any kind of a guide that you recommend?

Well, I mean, there are certain places that you can go back.

You could probably even go.

I mean, I might suggest what did you say you collected?

I’m sorry. I don’t think I heard what you collected.

Well, I have collected some hot wheel cars, and I also have several character watches, you know, Mickey Mouse, Disney, stones, whatever.

I mean, I would suggest, be honest with you, the easiest way to probably find that the current actual value would be going to, like, eBay and places.

Or taking them into it.

I mean, through a collection, you could go in and get an appraisal through, like, the pawn shops or them, a lot of.

sometimes they will do actual appraisals, not buy them, but, you know, give you an appraisal value that they have, you know, like a blue book theoretically of the value of all those types of things.

Okay. Okay. All right. Well, I appreciate your advice. Thank you so much.

No problem. Thanks, Tom. I appreciate you, Colin. All righty. That was an interesting question. I will give you that. I don’t deal a lot with, I mean, the collectible side. I always think it’s fun when people. My dad collected a ton of watches, And we still have all of them because the value to my father always seem more than it was to the world.

So sometimes that’s the problem with any kind of antiques or collectibles is that the individual that knows what they’re collecting.

Yes, sometimes there’s a value because they’re silver or their gold or their true antique furniture.

Some of the designers would have it or certain woods that they made them out.

We can’t mean we don’t even have any longer.

So they make them somewhat.

But again, it’s only what the person’s willing to pay.

And so that’s where it gets a little tricky on some of those.

I know I have a friend that collects 33 albums, records.

And again, I mean, he’s got thousands of them.

And I doubt unless you can find someone that was an avid true collector, what the true value of all those are would be a lot harder to come up with.

Because, again, you’d have to have a very specific audience.

that’s saying, oh, I want to, you know, and I know record players came back.

Don’t get me wrong.

I know my niece that’s like 15 last year or whatever.

She got a record player and loves to listen to records.

And so is one of my brothers.

But most of us do technology.

Let’s just be honest.

We take our music with us.

So it’s a little different.

But if you have anything like that, and I agree with one thing Tom said, and I can’t, again, nothing to do with taxes or anything, but having.

been a child and the parents passing away is making sure that your paperwork, your estate, your documents, and also all of those boxes of things that you may have in your attic or in your garage or in some cases, I know, I mean, my neighbor, she has like two storage units full of stuff. Nobody’s probably going to think that most of that is very valuable. It’s probably going to end up at Goodwell or something. Maybe that’s fine. But it would be easier.

if, you know, during your lifetime, just as Tom was thinking, clean the house out, you know, get rid of all of those things.

Because even though they have a meaning to you, the next generation isn’t going to have that same attachment.

And you might as well give it or get it to someone that might love it, respect it, or do something with it.

Because in many cases, I mean, let’s be honest, they have a big garage sale and they just sell everything off or they just take it all to goodwill.

and if you’re doing that, I have a case right now that’s been probably a year and a half we’re still playing with, where they basically disallowed. He had taken photos and made a list going through the Goodwill site and making a detailed list of every item he took in there and pulled the price from the, if you go to Goodwill, you can put together your own estimated value of what you’re donating.

He did all of that along with pictures and they said he did not have an appraisal.

tax law says anything over $500 or $2,500, depending on, but it’s not each individual thing, because that’s what we’re arguing is tax law says anything over.

Well, no one thing was over $500 in this particular situation.

It was a ton of little things.

But in that scenario, the IRS is saying you’re claiming more than $500 of everything.

Therefore, you needed to have an appraisal.

I’m just warning people if you don’t want to go through a two-year argument and still not win the argument because we haven’t proved that this is a situation, then, you know, if someone passes away and they happen to have a ton of stuff that you want to give to a charity, you need to have an appraisal.

Even if the charity gives you a charity letter, that’s not going to fly. He had that as well on some of it.

And they’re saying, no, we need proof that it was worth what you’re claiming.

And the charity was claiming that was worth that.

But you need to have an appraisal if you have a lot of things because it won’t work out the other way.

So just putting that out there.

If you have an issue with taxes and you’re getting love letters, it’s getting close to the end of the year.

Not that makes a big difference.

But the reason I’m saying that is that a lot of times people at the end of the year or first of the year want to have that New Year’s resolution.

going to do things correct.

Make sure before you decide what you’re going to pay and what’s going to have to go on a payment plan and how you’re going to, even how you’re going to deal with the IRS, are you going to make a payment plan?

Are you going to do an offering compromise?

Are you going to do a partial payment plan?

Are you going to become non-collectable?

Those are your basic plans or just write a check and pay them off.

But if you had the money, I think you would have done that already.

So I’m working with the idea if you have issues, then most likely you don’t have the money.

to pay them. What you think you don’t have the money, the situation where I said the gentleman had gotten the money, he then paid off his house, he now doesn’t have the money and he was trying to come a hardship. But there’s no hardship. You have a house that’s paid off. If you have equity in a home and you owe the IRS money and the house that you’re living in has enough equity to pay the IRS, you’re not going to, the only way I’ve ever seen anything happen like that was when the person was over the age of 78 and his house was the only asset he had no savings, no 401ks, nothing else.

It wasn’t me, but tax law shows that that individual was able to keep their house and claim a hardship.

That wasn’t easy.

He had to go away to tax court and make it happen.

So just saying in most situations, you’re going to have a very difficult time.

If you have money in the bank, money meaning IRAs or 401Ks or just a savings account or a home or stocks, those are all assets, all of those need to be accounted for when you’re trying to make a deal with the IRS.

And most people really do not think their house should be called a part of this.

I’ve had two cases I can think of where they think, well, I’m sending my children to private school, not because of a disability, but because it’s a better school.

And therefore, they’re not able to pay their taxes every year because they’re actually living away above their income because they’re self-employed and they’re not able to pay the taxes.

So the IRS is basically saying you cannot put your child in private school.

That is an option, a choice.

Your first choice is you need to pay the IRS.

So, you know, I’m just saying what you may think is a priority, but if you’re using money from the Internal Revenue Service or your tax dollars, they may have a different opinion on how that’s going to apply.

That’s the important part of that conversation.

Just because you think that you don’t have enough money to live and make payments to the IRS, doesn’t mean the IRS is going to believe that.

If you have a high mortgage, they may give you two years to, either sell the house or to renegotiate a mortgage because they only allow certain dollar amounts. If you have a Ferrari and you’re not paying off the IRS and they may give you a year to downsize your vehicle because that payment could be going towards them and you can be driving a Toyota.

Again, there are exceptions to any of these conversations, but it’s important that you understand how tax law works and let’s be honest they’re not there to make your life easier they’re there to collect the tax debt so it’s best to try to have a plan that’s why i started saying when the first of the year a lot of times people start replanting their life or getting back into play of doing what they want to do and when that comes up you don’t want to just go start thinking that you know how to do go talk to an enrolled agent go to your your tax person your financial planner whoever you have you don’t have anyone give me a call. Let’s make a plan before you start sending or getting money and doing things. Let’s make sure that we do it the right way so you don’t end up paying things that you didn’t have to but not paying things that you did or you need to. All right, we’re going to get ready to take our second break here. If you want to join the show, you can. 615-37-9-36. Sorry, 615 7379986 6157373986 is the number here in the studio.

You can also email Friday at DRFriday.com.

I try to keep my emails open just to see if there’s anything because sometimes people just don’t want to get on the radio and I totally understand that.

But if you do want to join the radio, 6157379986 or you can just email Friday at DR Friday.com.

We’ll try to get your question here on the air.

We’re going to be right back with The Doctor Friday Show.

All righty, we are back with the Doctor Friday show, and I’m enrolled agent licensed by the Internal Revenue Service to do taxes and representation, which basically just means I talk a lot about taxes, and we talk about how we can save money, how we can spend money, what we need to do.

And it’s going to be an interesting year.

so we can see how the next year is going to go.

I don’t think anything’s really going to happen until 2025.

So 2024 is as it is.

So that means at this point, unless something gets backdated, and we have seen that, guys, but I think we can pretty much predict that we’re going to be running our 2024 where we’re at.

So we’re almost at the end of the year.

If you haven’t met with your tax person and you’re a business owner, or if one of my clients, we need to be setting up a time if we haven’t already to talk and make sure that we have made sure, sure that we’ve covered all the important things, right? Now’s the time when your tax person is most basically not very busy in comparison to what happens come January, February, March, and April. Really hard to really sit down and get a true heart to hot. And then after that, sure, May and June, you’re pretty good until basically first to September. And then we go crazy again for the extensions. So it’s important that if you have a new business like the young lady that called, maybe getting with your tax person to make sure that you have tracked all the expenses in the best way you could have. And I will say if you’re not sure, make a spreadsheet or use quickbooks, any of those things, but track everything, right? Track all of your clothes. Track all of your nails, hair, whatever it is that you have your money being spent on. Your tax person is going to be able to go through that detail. If you put it in, there under clothing or you put it in there under cell phone and you put under you know whatever services insurance whatever it is they should be able to go through and pull out the proper expenses for you or tell you hey i need you to pull all these things out and this is what i’m going to use for the the taxes so you know then what is the important things to track and what isn’t because even though i tell christian you know clothing normally is not a tax right off there is some exceptions to that always an exception, right? I mean, people that have costumes, those are, you know, a clothing is, you know, is a deduction for them. Anyone that has a shirt that has their company name on it, that’s considered a uniform. Therefore, that’s a tax deduction. If you don’t, boots, steel-toe boots, many times if you’re a construction guy, specialty glasses or goggles, those can also be often a good thing to have because they’re required in your profession.

You know, but getting your hair and nails done, I’ve had more than one comes to me.

I’m a real estate agent.

I’m a yoga.

I have a personality.

I need to have these things done.

The only way I’ve ever saw in tax law that justified it was like people that went on stage and they did hair and makeup.

If you were doing like a TV interview or a blog or something where your image was, something that was generating actual part of your income, the answer is yes.

But if you’re just doing it because you’re selling real estate and your, you know, your looks are important, sure they are.

But the IRS says it’s not important enough to actually justify the procedure unless, again, I mean, I have saw one where the lady said she had to have a Mercedes because she was selling multi-million dollar homes and it would look bad if she drove up into Toyota and she won that battle. So I don’t want anyone to think that everything in tax law is black and white. It is not. Normally, plastic surgery is not a tax deduction, but in some professions, when you get plastic surgery, it’s part of your living, and therefore, it can become a tax deduction. So, you know, you have to be common sense along with the expenses, but that’s one of the reasons you’re going to an enrolled agent or to a CPA. You’re going to someone that is actually knowing what the laws are and how they apply so that way you don’t get yourself in trouble. No one wants to do taxes and then have to go back and deal with them again, you know, two years later when the IRS has decided to audit or question. Now, they are getting better. Normally, more paper audits and more paper audits usually come out within about 12 to 14 months from when you filed. But obviously, if you don’t file until October, you know, you’re looking at another tax year almost before you’re actually looking at the past tax year. So, you know, just keep in mind the IRS has basically 24 months to review your taxes and then decide if they’re going to audit or hold them back. Sometimes people worry because when they e-file and you go on and you see where’s your refund, it says it’s taking longer than normal for the IRS to process your return. You know, we are reviewing your return at this time.

That doesn’t necessarily mean it’s an audit. It may be the tax documents.

aren’t matching up.

I guess you can consider that auditing, but it’s not really, it may just be that you submitted something that did match what your employer submitted or they had some documents.

And that’s the ones that’s not the good ones.

We have one that come in the other day.

And apparently, AXO, which is an investment company, they sent out accidentally in 2022 multiple 1099 hours.

And they didn’t mark the, one of them as corrected.

So if you’re one of those individuals that you’ve gotten a love letter from the IRS and they’ll tell you in that letter that we’re making, we’re suggesting these changes and they’ll put in there all the different things that they’re changing.

And if it says Axel, in my client, this exact same dollar amount, it shows two 1099 Oz and then twice the exact same dollar amounts on both, different account numbers.

And actually the names from Axel are two different divisions.

but they’re being told by their financial plan, no, you only had the one that Axos did put something out saying that they had done a multiple 1099, but they didn’t mark them as amended or corrected.

That’s going to be a problem, I think.

And so we’re working on trying to get the information because the IRS isn’t going to just take our word that there was only $1099 aught.

I wish they would.

But we’re going to submit it and try and say, hey, this is the only 1099.

are that we have. This is a correct one. This is what we put through the bank. But they may say, well, we’re sorry, but your financial advisor company said that you got two of these. And even though the exact same dollar to the penny on both things, you know, the IRS isn’t just going to turn around and say, well, you know, that’s just a coincidence. They happen to be the same amount.

We can’t delete one of these without having something that says that one was corrected versus the other.

I don’t know what Axo was thinking.

Obviously, I’m fortunate because apparently a lot of my clients don’t use this, but this just came up.

So it might be getting more and more of these letters if other clients have it.

So if this sounds like something you’re dealing with as well, I am told by my clients that Axos, at least his financial advisor, is working on trying to get a letter from Axos that says that they did file double 1099 R’s and did not mark the second ones as corrected.

So, you know, again, not the best plan.

And now the clients have to deal with more of a headache.

So again, it’s not always going to be easy.

Anytime you file taxes, you do your very best.

Most people do.

It’s not like they’re out there trying to find ways to do things.

But on the other hand, it is very important that you, A, keep track of your documents, be, get yourself a decent team.

Have a good financial advisor.

I deal with Hank Parrott a lot.

And, you know, every year, I do a number of his clients.

And every year we have at least a handful of them that keep the wrong forms.

The good news is that his case is that he’s usually in the office when I’m preparing the returns.

So that way he can get on the phone with the chase or whoever it is that he’s with, Charles Schwab, whatever, and get the situation corrected.

So we get it done before we go to the IRS.

So we know what the IRS and we don’t have to deal with the correction later.

Very important to do, guys, because if something’s got the wrong, code. If you’re not a code 7 and you should be a code 2 or code 1 or vice versa, because code 1 and 2 usually means that there’s penalties, code 7 doesn’t, then, you know, again, if they don’t have the right age for you, I have one of those where they had the person’s age wrong, so they considered an early withdrawal and it was not. But getting them to change that 1099R, put us all the way into like August, had to file an extension, do it until August until we finally got the right return. But then we filed with the IRS and we didn’t have any issue. If we had done it with trying to go through the IRS, we would have been not only dealing with them anyways, then we would have had the IRS on our table as well trying to say, hey, you owe money because you misfiled this tax return because this code is what we have. Very important to understand your taxes and to make sure you have those documents. All right, we’re getting ready to go into our third break, and I do realize this is veterans haul it in. I really do appreciate any and all of you that have served in the military. We do many times work with the military. We do many times work with the military and help them with IRS issues and just try to help them resolve those through our nonprofit. But the military, without you guys, we would only have chaos. And also, not all of us are made to work with the military. So it is always an honor to help those that have sacrificed to serve this country. So again, I do want to put a big thank you out there to all of the people in the military that have served under time or even have family in the military. You can only imagine how difficult that would be. So thank you for your service and thank you for helping us all have a better life because of it. So we’re going to take ready to take another break here. And once we get back from that, that’ll be the last break. So if you have any calls, maybe you’ve inherited property, maybe you’ve bought some virtual currency that you’re going to get rid of. Maybe you’re buying and selling something, you’re not too sure how the tax code works with it.

Maybe you have a big capital gains and you’re thinking of a 1031.

We can cover any of those fairly quickly on the radio.

I would suggest any time I give any advice, always check with your tax person to make sure that it applies to you because on the radio sometimes I don’t have time to ask all the pertinent questions.

I try to lead you in the right direction to get you the education and do what you need to do.

But again, always make sure you seek out the advice of your personal tax person because they’re going to know everything about you versus me on the radio.

Maybe I’m just getting the basics.

All right.

So if you want to join the show, 615-737-9986, 615-737-37-9986, or again, you guys can suit me an email Friday at dr.r-Friday.com.

Friday at DR Friday.com is the easiest way to get a hold of me.

That way then we can try to get your question on the radio.

And I know people calling the radio station is never easy.

We don’t take down names.

We don’t take down numbers.

We’re not tracking any of this.

But I do appreciate the phone calls.

Makes it a little bit more interesting than you guys just hearing me talk.

All right.

We’re going back in just a minute with the Doctor Friday show.

For tech services, planning, business, and IRS negotiation, visit DRFriday.com.

All righty, we’re back with the last part of the show.

So if you want to join us, 615-737-99-86-6-15-7-37-9-9-89-6.

I do want to talk a little bit about Lolita Roasters because Christmas is going to be here before you know it.

Many of us businesses like to give thank-y-y-s or put out some sort of, uh, a appreciation for the clients that we have, businesses that we deal with.

And one thing that I have never seen before, and this is why I love this company, Lolita Roasters, is a custom-made coffee.

So Dr. Friday, obviously I’m in an Aussie.

I like dark roast coffees.

So, you know, they’re going to take and ask us a bunch of questions.

And they’re going to create a coffee and roast it just for Dr. Friday tax and financial firm, put them in cute little bags.

thank you cards and boxes so that they can be sent to our clients.

And it’s a great way, and it’s really no more expensive guys than whatever you’ve been using, most likely for buying cookies or other packaging situations.

But this is so unique because, for one, how many people get a ton of sweets during the holidays?

A lot of people.

And most of us love coffee.

And so this is something that can go with all those sweets that somebody can make up.

and actually pull out all the other sweets they’ve gotten and make the coffee to go with it.

All you have to do is go to the web, go to Lolita Coff, Lolita Roasters.com, pull up the information and fill in the questionnaire.

And then that way they can see if it’s something you can let them know, Dr. Friday sent you and see what you can do as far as getting an initial confrontation.

It’s really designed, as far as I can see, for groups, parties, individuals that have large things that they’re getting like a wedding or something or obviously a business giving an appreciation.

That’s what I think is a great idea. But if you’re getting married, what a cool idea. My nephew got married and we did that for his wedding. It was cool. Everyone got a little bag telling a little bit about the couple and the date and everything else. So you can either save that bag or you can use the coffee out of it and then obviously save the bag as a keepsake.

But it was something different because normally a lot of times you get those little mint bags or something that people have put together.

And this was a little bit more personal.

So again, I think it’s a unique concept.

Lolita Roasters.

Okay.

So we’re getting down to the last five, six minutes of the show.

And we need to make sure that we are covering most of the good stuff.

Again, I’m going to talk one more time about B-O-I business owner information because the time clock on that is probably going to expire sooner than the rest of anything else I talk about.

talk about. Very important that you, if you are registered with the state of Tennessee or any state, B-O-I comes into play according to what we have found out, which would mean most of us registered with the state. Now talking about business license, I’m talking about your charters. So if you’re a single-member LLC, multi-member corporation, partnerships, all of them normally have a charter registered with the state that creates the B-O-I or the business owner information you want to go to Finsen F-F-I-N-C-E-N.

FinC-E-N is of 22, January of 23, came in effect as of December 31st, 2024 for all existing clients that had been in business. But if you opened in 24, you needed to do it within like 30 days.

There are penalties can already start assessing. So if you haven’t done it, you’ve got a brand new business that you set up as an LLC and you did not do the B-O-I, you need to do it now. I don’t know, again, guys, I don’t know anything about how we’re going to deal with penalties if there’s going to be some sort of waivers.

Without knowing about it, I don’t honestly know yet.

We’ll find out more once we get past the December 31st, and I suppose somebody gets a love letter saying they owe money because they never filed the B-O-I.

The purpose behind it is the business information is for the feds, basically to be able to track foreign investors in the United States.

They want to make sure they’re paying tax on their share of an investment.

We all get K1s.

We process that gets processed to the IRS or to the U.S. Treasury.

The IRS then uses that to match to the tax returns of those taxpayers.

And that’s all pat through.

If you forget to process or to do something with a K-1, the IRS, if there’s any value on it, the IRS will come back to you and say, hey, you forgot this.

You need to report it.

They can’t do this with foreign investors, right?

Foreign investors are supposed to be doing 1040 NRs, even if you don’t live here, but you invest here, you need to be filing U.S. taxes. There are some deals where, you know, if you live in Canada and you pay tax on the money in Canada, you may get a foreign tax here in the United States or London. I know I have a client that has that. But you still have to file in the United States, even if you’re not a U.S. citizen, if you are invested in the United States.

So that’s what I think they’re trying to cut down on. I think they’re finding there are quite a few, foreign investors that are not filing tax on the money they’re making here in the United States.

It’s the same way.

If you’re a U.S. citizen and you have money overseas in any country and you’re making interest, dividends, or you just have money in there and it’s not going to, you still have to file an F-Barr that tells Foreign Banking Information Act that that way they know that you have a bank account in the Caribbean and it’s got more than 10.

thousand U.S. dollars in it that you have told them about it. And if there’s any interest or dividends that you pay tax on it here in the United States as a conversion, you don’t want to have a situation where you have, I mean, a lot of times people like, well, how do they know, who they know?

If you come many times, I mean, if you come from another country, you still normally have a bank account in those countries. I mean, if you have a, you know, coming from Australia, I still have bank accounts in Australia. So you need to report that information. If it’s got.

more than 10,000 U.S. dollars. Now, if it doesn’t, you’re not required to do it. So that’s, that’s, sorry. So you just want to make sure that as a U.S. citizen, you report everything. If you’ve got rentals overseas, you have an investment overseas. Maybe you’ve given money, maybe you’re from another country and you’ve invested in a business over there. Then you want to be able to do the same thing.

here that money needs to be converted to U.S. dollars. If you’ve made money, if you’ve lost money, still want it in me if it’s a legitimate, and if it’s a foreign company that has K-1s or something else that still has to convert to U.S. dollars. That’s the important part. And win or lose, you need to be reporting that on your tax return. Otherwise, it could come back later to you.

Now with everything connecting, right, you got F-Barr connecting, FinCin connecting. All of these are all more ways that the government can try to track where your money’s at, especially these are both for basically more foreign investors or individuals that are investing overseas.

All right. So we’re going to wind down the show here. We’ve got about two minutes or so. So here’s what we need to do. Give you all the details. If you want to give my office a call on Monday morning, no, yeah, Monday morning. It’s Veterans Day, but I believe we’re still in there. 615-367-0-819.

Again, the office number is 615367-0819. You can also email Friday at dr.friday.com. That’s F-R-I-D-A-Y at D-R-F-R-F-R anything pretty much that requires a U.S. tax return we handle.

But if you need more information, go to dr.friday.com, DRFRI, d-A-Y dot com.

That way then you can take a look on there.

You can also set up your tax appointment.

Chris, which is my sidekick, I guess you would say.

He’s an EA that’s also working in my office.

His calendar is in there.

My calendar’s in there.

So you can set up an appointment with either of us and go ahead and get your dates.

So that way you’re able to come in.

and see us and make sure that we can help you with your taxes.

We’ll get more about, I’ll probably bring Chris on the radio here before the first of the year just to get everyone introduced and know a little bit about my partner here.

And that way you can ask questions as well with him.

He’s a great guy.

So again, if you can call the office, 615-367-0819 Friday at DR Friday.com is my direct email.

We also do bookkeeping for small business owners.

We handle payroll for small business owners as well as obviously doing the taxes.

Which with the bookkeeping, they also do, you know, business licenses, annual reports.

Some of those are included in our fees.

If that’s a service that you need, it makes it easier for everybody to keep everything done.

Because as a business owner, let’s be honest, we’re all very busy.

Sometimes we don’t have time to think about this is coming due this month, this is coming to do that month.

So it’s nice to have a good bookkeeper that can help you do those.

things. So you can give our office a call Monday, 615-367-0819. I hope you guys truly do have a wonderful Veterans Day, as we say in Australia. Cop, you’ll later.