The Dr. Friday Radio Show

Dr. Friday Radio Show – March 14, 2026

Dr. Friday Burke — Mon, 16 Mar 2026 14:14:55 +0000

With tax season in full swing and the March 17 deadline for multi-member LLCs and S-corporations just around the corner, Dr. Friday packed this episode with timely, practical guidance. From clarifying the real story on “no tax on tips and overtime” to walking callers through Social Security taxation, inherited assets, and IRS penalty rules, this show delivers answers when people need them most. Dr. Friday also made a compelling case for why estate planning — especially wills, trusts, and life insurance — matters at every age, not just for the wealthy.

Summary Points

Business filing deadlines: Single-member LLCs file as sole proprietors on April 15 and do not need to file a March 17 extension; multi-member LLCs and S-corps (1120-S / 1065) do. Tennessee business owners should also register with TNTAP.tn.gov ahead of the April 1 business license deadline.
Tips, overtime, and Social Security taxation: Despite popular assumptions, tips and overtime may still be taxable depending on overall income. Social Security must be reported on every return, and only qualifies for the new $6,000 per-person deduction (for those 65+) when filing jointly or as a single filer below the income threshold — not when filing married separately.
Estimated tax payments and penalties: To avoid underpayment penalties, taxpayers must pay at least 100% of prior-year liability (110% for higher earners) in four equal, on-time installments. The IRS offers a one-time penalty waiver (the “get-out-of-jail-free card”) but it’s a limited resource.
IRS debt resolution options: Taxpayers who haven’t filed or can’t pay have several paths: payment plans, partial payment plans, or an offer in compromise — but the IRS considers all assets (home equity, retirement accounts, etc.) before accepting reduced settlements.
Inherited assets and home sales: Property and artwork inherited at death receive a stepped-up basis to fair market value at the date of death, often eliminating capital gains. Homeowners selling a primary residence can exclude up to $500,000 of gain (married) without needing to reinvest the proceeds.
IRS going paperless: The IRS is no longer mailing refund checks — taxpayers must provide banking information for direct deposit or risk having their refund held. Electronic payments are also increasingly required for balances due.

Episode FAQ

Q: I’m 79 and file married separately. Why don’t I get the $6,000 Social Security deduction? A: The new $6,000 per-person deduction for taxpayers 65 and older is not available to those who file married filing separately. Because the IRS can’t verify both spouses’ income on separate returns, the deduction is disallowed entirely for that filing status.

Q: My father-in-law recently passed away and we sold his artwork for $70,000. Do we owe capital gains tax? A: Most likely not, or very little. Inherited property receives a “stepped-up” basis equal to its fair market value on the date of death. So unless the artwork appreciated significantly after he passed, any gain above that stepped-up value would be small — and the gain period would be short-term or long-term depending on how long the estate held it before selling.

Q: I’m required to take a one-time lump sum from a deferred pension plan. Is there any way to spread out the tax hit? A: Possibly. Before signing anything, consult a financial planner — it may be possible to do a custodial (trustee-to-trustee) transfer to an IRA or another deferred account and then take withdrawals over time. A lump sum taken all at once will push you into a higher tax bracket and make up to 85% of your Social Security taxable, so it’s worth exploring every option first.

Transcript

Announcer 00:01 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 Doctor Friday show. 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 00:29 G’day, I’m Dr. Friday, and the doctor is in the house. We are here live, so if you have some questions concerning maybe you’re working on your taxes. I do want to put a shout out for anyone that is a multi-member LLC or a sub-s corporation. Do remember that Monday is your tax day. So you should have filed an extension, just to make sure that everything is filed properly or file the return, whichever works for you. Either way, you need to make sure you’ve got it all filed so you don’t get hit with penalties. That’s the one thing we don’t like is penalties. Dr. Friday 01:00 So if you’ve got questions and you want to join the show, you can do that. 615-737-9986. I am going to say that we are working hard on a lot of taxes ourselves. Finding that tax documents, people are having some problems getting all their documents together. We’ve already had a change, I believe it was with Charles Schwab, where a second set of documents have been sent out after the first. Dr. Friday 01:30 As well as we have the issue with all the tips and mainly tips, I have to say, overtime. The definition of tips, especially on the self-employed Uber drivers — individuals that are reporting the information based on what they have. The biggest question is, if you’re reporting tips and you are an Uber driver or somebody that is getting tips through a 1099, make sure that those tips are reflected in the income side because a lot of people are just using what Uber is providing. But we all know that if some of the tips are cash that did not run through the Uber 1099, therefore you may be overstating the tips based on the income. So if you’re going to report all of your tips, you need to make sure that you’re also deducting those from the right amount. Dr. Friday 02:31 And remember, tips for a self-employed individual — you do still have to pay the self-employment tax. They just give you a deduction against ordinary income tax. So the savings is good. A lot of times there’s still a misconception a little bit on: is Social Security taxable? Because everyone’s like, no tax on tips, no tax on overtime, no tax on Social Security. Well, there is tax on tips for a lot of people. You won’t get as much depending on your income. There is definitely tax on overtime for a lot of individuals, depending on your overall income. Dr. Friday 03:11 And then same thing with Social Security. Social Security in itself is tax-free, unless you have other earnings. If your other earnings exceed the $75,000 or $150,000 threshold, you start losing that $6,000 or $12,000 if married — the deduction that they are giving you to help pay for your Social Security. But Social Security still has to be reported on your tax return. That was one of the bigger misconceptions — sometimes people didn’t bring in their statements because they were under the impression that they no longer had to report Social Security as part of their income. Dr. Friday 03:50 So again, it’s confusing. Taxes are always confusing, which is partly the fun and partly the other side of it. We do our best to try to make sure that we’re giving everybody all the answers they need. But if you’re working on your taxes, maybe you’ve gotten something with inheritance, or you’re selling a piece of property that maybe at one point was inheritance and then you had to sell it or whatever — then that’s something you need to consider: what the basis is. Dr. Friday 04:21 Sometimes that can be a bit confusing. I’m going to suggest for a lot of people that if you have a piece of property that is going to be left to children or the next generation, look at a trust. I’m not an attorney — put that caveat out there — but there are a lot of good features of a trust. Part of it is there are ways of making sure that the basis is preserved and different things like that, especially for a husband and wife. I heard recently, and again this is what I heard, but an attorney said that if a home goes into a trust, and especially an A-B trust, that preserves the step-up for the wife. Dr. Friday 05:03 So there are different questions and different ways of doing some of this and making sure that the documentation is the easiest for those that are left behind is really the question. I got into a bit of a conversation with one of my clients — a young couple — and we were talking about how they had just had their first child and I’m like, have you set up a will? And they’re like, well, no, it’s on our list but we haven’t got there yet. And I’m like, well, you know, hopefully you’ll live to a nice old age. But we all know that things happen every day. And do you have things set up for what happens to that child if you’re not there to raise it? Dr. Friday 05:44 And of course that made them start thinking. These are the kinds of questions no one likes to answer or ask. But if you are a young person — because a lot of times people listening are people that are maybe closer to my age, in their late 50s or older, but some are younger — the average age listening to the station is probably around 40. Many of you have already had children or are at that point. Young people need to put some thought to not so much that you have an estate — you haven’t built all your wealth yet — but what will happen to your children, to the things you do have? Dr. Friday 06:22 Even though it doesn’t seem like it, I know most people think estate planning is really for people that have an estate. But think a little outside of that box. Think about estate planning especially when it comes to your children — maybe having life insurance to help them to the next level and learning more about how all that’s going to work, because that’s really the more important thing in my personal opinion. More important — estates can be settled in court. Not the ideal situation, but they can be. But if we had to make a choice, I think we’d rather settle an estate in court than decide who we want to have our child raised by if we can’t raise them ourselves. Dr. Friday 07:10 So just putting that out there — I know it’s a little dark — but it made me think that maybe we don’t talk enough about some of that. Estate planning is essential for every single person. And you may sit there and say I don’t have an estate. Most people have something. I had a gentleman that lost his son not that long ago, and he didn’t have a will or anything, and he didn’t have a wife or anything like that. So it came down to him having to settle. But he had a 401k and he had a bank account. He had to settle the debts, and since there wasn’t a will, it had to go to probate. It was just a lot of work at a time when, to be quite honest, Dad did not have a lot of willpower to do it. He just lost one of the most important people in his life, and it was very difficult to then go deal with all of the other things that sometimes life throws at us. Dr. Friday 08:09 Yeah, he did an excellent job, but still it would have been simpler had there been something we could do to make that work. So anyhow, if you have questions, I would definitely say this is something for an attorney — something that you want to make sure is being dealt with by someone that really understands the difference in your case of an estate, a will, a trust, or what the next step is. But put it on the agenda. Something we need to look at once we’re done talking taxes. Dr. Friday 08:41 Because we only have almost 30 days left of tax season. And at that point, you either have an extension filed or you have filed your returns. If you need to have taxes done at this point, my office can help with extensions and then we can help you after the tax season. Otherwise, we’ll do our best to send you to somebody that can help you. If you’re looking for a tax person this late in the season, it’s going to be probably difficult to find a qualified one because most of them have already booked up. But if you do need some help, you can call the show: 615-737-9986. We’ll take your call here live in studio. Dr. Friday 09:52 We’ll try to help you, guide you in the right direction — at least tell you what we think you need to do, and then you can see what would be best for you when and if that was something that needed to move to the next level. But you can join the show. It is live: 615-737-9986. I’m receiving quite a few emails on different individuals, mostly businesses. So I’ll answer this first one. This is a business owner. They have an LLC, but it’s a single member LLC. They were wanting to know if they need to file an extension by tomorrow. And the answer is no. Dr. Friday 10:29 If you are a single member LLC, the Internal Revenue Service considers you a sole proprietorship. Proprietorships are due April 15th — or usually this year it will be April 15th. So you don’t have to worry about filing that extension yet. You do need to make sure that when you file your personal tax return that even if it is a zero LLC — maybe you started it but didn’t have any activity — you still need to file a Schedule C with the EIN number, the name, any loss or gains or just zeros so that it’s documented. And then remember in Tennessee we have franchise and excise. There are a few companies that would have an exclusion, but that’s often the ones that get the love letters. Dr. Friday 11:13 This week I’ve had three emails just looking at them today concerning business licenses that are due on April 1st. Apparently the state is sending out notices from TNTAP asking people to file their business license — just a reminder, not so much a bad thing. It’s actually a good thing because for a few years they used to send out postcards, people lost the postcards, and now they don’t have them. So this is a good thing. If you’re getting anything from TNTAP, it’s most likely a reminder to file your business license. And if you’re a brand new company and you haven’t set up your TNTAP, that’s TNTAP.tn.gov. You need to do that because it’s all the communication you’re going to get from the state — for your franchise excise, your liquor tax, your sales tax, your bonds. Pretty much any license or tax that you have, they’re going to communicate through that site, letting you know reminders as well as any balance dues, failure to file, or anything like that. Make sure you have that set up. Dr. Friday 12:27 All right, we’re going to take a quick break here on the Dr. Friday show. When we get back, we’ll take your call: 615-737-9986. We’ll be right back. Dr. Friday 12:41 Alrighty, we are back here live in studio. You can join the show: 615-737-9986. Taking calls, talking about my favorite subject — even though today is an absolutely gorgeous day. Most of you guys are probably outside enjoying it because I was under the impression we were supposed to have cold weather today. But I went out and visited my bees, have flowers coming up. That’s probably gonna be a bad sign because some of them are probably gonna need something put over them because we’re going to get some cold weather here, and it should be interesting to see how that all flies. But hey, we’ll take that one step at a time. Dr. Friday 13:21 So if you have calls or you want to join the show, you can: 615-737-9986. Taking calls talking about taxes. Obviously that’s the important thing right this second. Because with taxes, you have to deal with all of the penalties, and I often have emails that follow up with, well I filed my estimates — why am I getting penalties? The answer is pretty easy, depending on if you made your estimates on time. That’s the problem with some people because sometimes people won’t make four equal payments. Sometimes they’ll do them sporadically and they won’t do them on time. Dr. Friday 14:00 Just keep in mind that you do need to file your estimates based on the prior year — how much did you owe? You need to pay at least 100% of what you owed the year before, 110% to completely avoid penalties. And then you need to make them on time and equally. Sometimes people look at their situation and they’re like, I’m not going to make as much money this year, so I’m not going to pay as much in quarterlies. That can be a whole different conversation because if you made your proper estimates, you’ll see — I had a gentleman that owed over $200,000, but he had paid in almost 120% of what he owed the year before. So there was no penalty because the big event didn’t happen until that year when he made a sale. He was able to keep that money for a few months and do what he needed to do. Dr. Friday 15:01 But again, this is the kind of thing you want to make sure you understand. If you have questions about penalties, you can request a waiver. But to be honest with you, sometimes that is not always an option because penalty waivers — the IRS really only gives you one time, what I always call the get-out-of-jail-free card. They allow you to ask for that and you usually get it, and sometimes you can get them up to every 31 months. But you have to make sure that they meet certain compliance. If you can show that the error was not something that was a mistake by your tax person, a mistake by the IRS, or somebody not giving you the proper documents, you might be able to get it waived for cause. Otherwise, they kind of only give you one form to use to do it that way. Dr. Friday 15:53 So when you’re looking at why you’re getting hit with an additional penalty — the other question I hear a lot is, people come in and they’re like, well, I paid the IRS. Of course, you paid them late and they’re wanting more money. And you’re like, why are they asking for so much more money? It can be a fourth of what you owed. So if you owed $20,000, they’re still looking for $5,000 because you paid it in October, and you paid what you owed back in April, and they’ve already added penalties and interest and failure to file — possibly failure to pay penalties on top of that. There are all kinds of wonderful penalties that you can deal with. Dr. Friday 16:39 So when you’re looking at extending your time, especially for 1120-S and 1065s, keep in mind they don’t actually owe taxes, right? These are pass-through companies. The money falls on the individual. So extending them really doesn’t have a financial situation, but for personal tax returns — if we haven’t filed or if you’re waiting because you haven’t received all your documents — the IRS wants you to be making an estimate either with your extension or your four equal estimates. Dr. Friday 17:20 So I have clients every year that would rather pay the penalty than make the payment. That is totally a choice. It doesn’t have to be that way, but you have a choice. And the IRS says if you want to do that, we’ll be more than glad to be your loan officer, but we’re going to charge you 25% penalty, 12-13% interest, and from there we’ll take it and see what comes next. So you just have to be willing to pay that fine. But if you are behind and you need to make a deal, we do have what’s called offer in compromise. Dr. Friday 17:54 This was an email that just came in — he’s like, well, I haven’t paid, I haven’t filed for 10 years. Don’t know how much I’m going to owe, but I’m unemployed and I’m not able to make the payments. And there are two sides to that. One, if you’re underemployed, the IRS may look at your history. Maybe not someone that hasn’t filed for 10 years, because they may know how much money he’s made if it’s been turned in. So if he’s self-employed and received a number of 1099s, or he works for one person every year and the 1099 has come in and he just hasn’t filed on it — those are the ones that end up with the highest tax issues. Because throughout the year, an individual with W-2s usually has paid something. Maybe they’ve chosen not to have enough come out of federal withholding, but they have paid the Social Security and Medicare. So they’re a head start on the self-employed individual. Dr. Friday 18:54 If you don’t have the ability, or you are underemployed, or maybe you’ve had some health issues, you have the ability to make a payment plan, a partial payment plan, or you have the ability to make an offer in compromise. Now, this is what you hear a lot of times on the radio — people talking about how they can make a deal, 10 cents on the dollar. And I will be honest, my best deal ever was settling something for $25. Yes, $25. She owed $70,000. But she was completely unable to pay, and we were able to show both the state of New York and the IRS that she was unable to pay these debts. Dr. Friday 19:38 Yes, you can do those kind of deals, but you have to have nothing to do it. So most of us have homes, many of us have 401ks, have IRAs, have equity or stocks — and the IRS takes that all into account. For example, the equity in your home is an asset. Therefore, the IRS says, wait a second, if you only owe us $50,000 and you have equity in your home of $200,000, there is no reason we’re going to accept an offer in compromise because you have the ability to pay. In fact, you’ve been making mortgage payments and not paying us. So therefore that equity is ours. Dr. Friday 20:22 Now, there have been a few court cases for older individuals where the only retirement they have is the equity in their home, and it has been proven, at least in those cases, where they were able to preserve and make the deal. But that is far between. Many other people still have retirement, they have jobs, they have Social Security or disability. I have people right now that have money being taken out of their disability check because they haven’t filed what they should file and they’re not able to make the payment — but now the IRS is seizing or taking partial payments of their retirement. Because you can become non-collectible — there are ways of doing that if the situation applies. But it would still be better if we’re able to do something with the IRS versus allowing them to levy or lien a bank account or a paycheck, because that’s not really the best way to handle it. We want to be a little more in control personally. Dr. Friday 21:49 All right, let’s see if we can hit Howard before we take our second break. Hey Howard, what can I do for ya? Caller 21:55 Yes, thank you for taking the call. I’m needing a little clarification on this no tax on Social Security. I’m retired and I have other income. I have a pension and then a small amount of taxable income and then Social Security. My taxes have already been completed and filed by a lady that does my taxes here in Lewisburg. But I keep hearing no tax on Social Security, and when I look at my 1040 — I’m going down to 6A, Social Security benefit which is $30,972, and then I have an amount in 6B that’s carried over into income of $6,762. Dr. Friday 23:06 That’s okay. Go to page two and see if you see $6,000 sitting in 13B. Do you see $6,000 there? So Social Security — anyone over the age of 65 is getting an additional $6,000 to deduct as a deduction to help pay for tax on Social Security. Okay, so it’s not like Social Security is tax-free, but you should have that deduction. Now the only other reason that might not be there, sir, would be if your AGI on line 11 is over a certain threshold. Are you single or married, sir? Caller 24:39 I’m married filing separate. I’ve got an amount in 11B of $27,937. Dr. Friday 24:47 You’re losing the deduction, Howard, because married filing separately does not qualify for the deduction. Since they’re not able to see what each spouse makes, they’re not allowing it at all. So your return is probably correct because of that feature. You’re not getting the benefit of it. Caller 25:11 Is married filing separately not going to allow for the $6,000? Dr. Friday 25:17 That’s correct, yes. Caller 25:19 Years ago I did taxes for a firm for three or four or five years and of course we had classes we went to. And I remember just talking about married filing separately — people in the tax world call it married filing stupid. Dr. Friday 25:57 Well, I will tell you, I do a number of married filing separately, and there are reasons to do it sometimes. Not always financial reasons, but other reasons — for one, sometimes the spouse is self-employed or they don’t want to know each other’s tax situation. They’re willing to pay that little bit extra to have that separation. Sometimes — I have individuals that have student loans, for example, or if they owe money and the other one doesn’t, if their name’s not on the tax return, they can’t come after the spouse. So there are good reasons to be married filing separately, but unfortunately under this situation, you do lose a tax deduction by doing it. Caller 26:42 So the $6,000 not coming off of the adjusted gross income — that’s the answer, yes, married filing separately? Dr. Friday 26:53 You got it, my love. Thanks, good question. I appreciate it, Howard. All right, we’re gonna take a quick break here. When we get back, we can take some more of your phone calls: 615-737-9986. We’ll be right back. Dr. Friday 27:36 Okay, back to the studio. Sorry, I stepped away. So if you have questions or you need help, you can give us a call: 615-737-9986. So that was Howard on the line — he did a great job explaining the married filing separately situation. That is a caveat I should have explained earlier. But let’s hit Emily. Hey Emily, what can I do for you? Caller 28:10 I have a question. My husband is not 65 yet, so I’ll be able to do the $6,000 deduction. What does that actually equate to at the end of the day? Like is there an average that people are going to get back? I’m sure it’s a good thing. Dr. Friday 28:30 So it’s not refundable, but it will reduce your taxes and it’s based on your income bracket. So if you’re in the 10% income bracket, it will save you $600. 20%, $1,200. But it’s basically based on the percentage of your income bracket, Emily. Whatever your combined income is, whatever bracket that puts you into, it would then give you a tax deduction of whatever your tax bracket percentage is against the $6,000. It will reduce your income by $6,000. Caller 29:17 Oh, it reduces the income. So you could effectively get a small return. Dr. Friday 29:27 Yeah, you could. We probably make about $70,000 between the two of us in retirement. So that is in the 12% tax bracket. So again, it could give you $600-$700 theoretically as a refund, assuming you paid in some money. Caller 29:53 Okay. All right then. That’s all I needed. Thank you. Dr. Friday 29:58 Thanks for calling. Appreciate it. All right, let’s go to John. Hey John, what can I do for ya? Caller 30:05 Yeah, my question is whether I ought to try to file my taxes on my own. I’m 67 years old and I’ve got two 1099s, my pension and my Social Security. I haven’t sold any stocks, I have no other income, and I have no debt. Dr. Friday 30:25 Can I ask if the 1099 from your pension — you know, is it $20,000? Give me a ballpark, John. I’m not asking you to give me the exact dollar amount, but I’m curious if you have to file. Caller 30:39 Well, I’m looking at it right now. It’s $53,000. Dr. Friday 30:47 Okay, so yeah, you make plenty. All right, so you could do it easily. It’s not a complicated return if you’re comfortable on computers. The IRS will not take paper returns any longer. There is also the AARP — they have a lot of free services. You’re not complicated, you’re not looking at having to have someone that has a ton of experience to do it. And AARP — if you go to their website — they usually have different places that they’re holding free tax events. Either option is certainly viable. Caller 31:26 Okay. Yeah, between the pension and the Social Security it’s around $90,000. Dr. Friday 31:31 Yeah, Social Security will be taxed at 85% for you, and then all $53,000 in pension — and then you will qualify for that $6,000 deduction. So that will help. If you get a tax software or anything, that will automatically work for you as soon as you put your date of birth in. But if you prefer someone to help you, then I would definitely say try to go to one of the simpler services. Thanks, John. Appreciate ya. Dr. Friday 32:14 All right. Let’s go to Kaylin. Hey Kaylin, how can I help you? Caller 32:19 I’m doing good. How are you? I am awesome. My husband and I own four long-term rental homes and one short-term. We just file normally, married filing jointly, like personal. We haven’t yet ventured to make it like a business. But we are contemplating a trust this year. Is that smarter for taxes or what? Dr. Friday 32:51 That’s a wonderful question. So the trust isn’t really going to do a whole bunch for the aspect of taxes. It’s basically going to only protect you if something were to happen to one or both of you. So not a bad idea. But you probably also want to look into the potential of setting up either a single member LLC or a multi-member LLC, depending on how the houses are titled and all that. I would definitely suggest looking at that as one of your options because there’s an extra liability protection. We all know I also have a lot of rentals and we carry insurance for it, but there’s always that extra fear that if something were to happen, they could do something to our personal assets. So having a separate LLC holding these properties — or at least having them as management companies protecting those assets — it’s never a bad idea. Dr. Friday 33:56 And then of course the LLC would theoretically — if you set up a trust — the LLC would then be the beneficiary after both of you have passed, to leave it to the next generation. And that way you still have full control if you want to sell a property, whatever. I do like the idea of an LLC for your rental properties. Caller 34:21 Awesome. That was the question I had — if we do the LLC prior to the trust, are the taxes going to be a little bit harder on us? Dr. Friday 34:33 Most likely the trust will be a revocable trust, which basically means that it doesn’t come into play until you die. So it’s really just a shield like a little umbrella over you, but it’s never really going to get in your way. It does make things easier when you’re not here to help out. All right, well, thank you so much. Thank you very much. Dr. Friday 34:57 All right, let’s see if we can hit Scott really quick before this break. Hey Scott. Caller 35:02 Hi, hello. I’m doing well, thanks. Beautiful day out today. My question is, my father-in-law passed away a couple months ago and we sold — he had a lot of expensive artwork and we managed to sell it, we’re gonna get maybe $70,000 for it. What’s the law in reference to paying taxes on that? Dr. Friday 35:25 So the good news is most of those things would have had a step-up in value. At the time of his passing, whatever the value of that artwork was, we would not have to worry about gains on that. So you should be in good shape as far as that goes. But if you’ve held it for a few years — I don’t know when he passed — then we would have the appreciated value that you would need to add in. So whatever it was worth at dad’s death would be your basis, and then whatever you have after that would be gains if there is a difference. Caller 36:04 Okay, I appreciate that, ma’am. Dr. Friday 36:06 No problem. Thank you. All right, we’re going to take a quick break here. When we get back, we’ll hit Joe and Ray. 615-737-9986. We’ll take a little bit of an early break so we can get back to the phone lines. This is the Doctor Friday show. Dr. Friday 36:41 Alrighty, we are back here with the last bit of the show and we’re going to go right to the phones. We have Ray that’s been holding the longest. Hey Ray, what can I do for ya? Caller 36:50 Yeah, thanks for taking my call and I enjoy your show. You mentioned one time before — if you’re on Social Security, both my wife and I are on Social Security, and you sell your home, you could take the home sale and buy another home, but you don’t have to pay taxes on that. Dr. Friday 37:13 Actually, it would be that you get an additional deduction. So whatever you paid for the home plus $500,000 — you do not have to reinvest the money, to be quite honest with you. So it really comes down to: you can sell the home and get an additional $500,000 plus whatever you have as an original basis. Hopefully that will cover the house no matter what, and therefore you don’t have to pay any taxes. You don’t have to buy anything, Ray. You could put it in the bank and rent for the rest of your life and you’ll never have to pay any taxes. Caller 37:55 Okay, so you don’t have to do any tax forms at all showing that, or just the tax form — the answer is yes? Dr. Friday 38:04 There is a form that I usually file that shows that the sale was your primary home to get that exclusion, but there’s nothing on the form that says you have to reinvest the money. Caller 38:16 Yeah, but you have to fill out a form though. I mean, you can’t just skip it. Dr. Friday 38:19 Yes, there is a form for home sales. It’s going to ask you about your basis and it’s going to have that $500,000 exclusion. It’s all on that form. Yes, you would do a 1040-SR or 1040 depending on your age. Caller 38:54 Yeah, one more question — if you sell your home like that and you’ve got a part-time job, just working part time, would you have to start using that Social Security as part of your income? Dr. Friday 39:12 So Social Security will be taxable to you if you have to file, if you have other income — just like that gentleman Howard or John that called. So yeah, you may have to pay tax on your Social Security, but if you’re over the age of 65, you’ll each qualify for the $6,000 deduction that’s on the tax code. Caller 39:38 But if you’re working part-time it automatically puts you back to that other bracket where it’d be a good thing, right? Dr. Friday 39:50 Would be yes. If you’re only making two or three thousand, no. Okay, I appreciate your help on that. All right, and thank you. Thank you very much. Dr. Friday 39:58 Let’s see if we can get Joe from Gallatin. He was nice enough to hold. Hey Joe. Caller 40:05 Hey Dr. Friday, how you doing? Thank you for taking my call. I appreciate it. I’m required to take a one-time lump sum distribution of a pension — a deferred pension plan. I have to take it now that I’m over 65. Can’t get out of it, can’t do installments. So is there any way to avoid all the taxes at one time? Dr. Friday 40:41 Joe, I understand the one-time distribution. It seems to me that I have an awful lot of people that are able to transfer that to another deferred plan through like Fidelity or something, and then take payments out of it instead of having to take the one-time lump sum. The company may request it because they don’t want to have it after a certain period, but they should be able to do a custodial transfer to another account that would still preserve that fund, and then you could take it out in smaller increments. Caller 41:34 I looked at charitable gifting and so forth like that, but they said no, no, you can’t do that. You’ve got to take it out. Period. Dr. Friday 41:41 Do you have any required minimum distributions or anything that you have to take, Joe? Or is this your main retirement? Caller 41:54 This would be my main retirement. Dr. Friday 41:57 I was trying to see if you had to take RMDs — you could have deferred some of that through charity. But honestly, I would before I did anything, contact like Hank Parrot or whoever you might have that does financial planning. They may know something that you and I don’t know, Joe, because I would hate to have to take a one-time lump sum if you didn’t have to pay all the taxes at once. Because it’s going to make your Social Security fully taxed or at least 85%. It’s going to put you in a higher tax bracket, no question. Caller 42:27 Sure, sure. And who’s this Hank Parrot? Dr. Friday 42:30 Hank Parrot — he’s an estate and financial planner. He’s been around forever. I’m going to give you his cell phone number because that’s the only number I have memorized for him. Are you ready? It’s 615-202-9009. Give him a call before you sign anything, and I bet he might have a better suggestion. All right. Thank you very much. No problem. Thanks, Joe. Appreciate you listening. Dr. Friday 43:10 All right. Those were great questions, guys. I was a little worried the sunshine was going to make it too much fun for all of you to make calls to me. So we’re winding down the show here, we only have a few more minutes. Let’s go through and talk a little bit about making sure that when you get ready to file your taxes — because we’re still in the 2025 tax season and 2026 we’re filing, but tax year is 2025 — we do want to make sure that everyone has all your documents. Dr. Friday 43:47 You need to make sure you have everything organized or taken care of so that way when you get ready to do your taxes, it is simpler. Life needs to be as simple as possible. And many times, maybe you changed your information — let’s say you had Fidelity and then you went to Vanguard or vice versa. Make sure you look at both of those statements because sometimes, depending on when you did these changes, you might have had dividends, interest, stock, capital gains, whatever that you need to report from both companies. Because a lot of times people will come in and then we find out that there was something missing and then we have to amend. Amendments take forever right now. Dr. Friday 44:38 We still have a handful of people and I will tell you, the IRS is doing a lot of identity checking. So if you’ve received a letter that says you need to call the IRS to verify the information because a tax return had been filed in your name, it’s probably true. Because we’ve got a number of my clients having to do that. It’s not a big deal — they’re doing a great job. Now, if you do have an ID.me account where you might use it to get onto your Social Security account, there are some ways you can get in and look at your tax records. That is an important thing. Dr. Friday 45:24 Also, the IRS will not mail back a check this year. We had a couple people that really did not want to put their banking information in. So we filed them just to see, and sure enough, they got a letter back saying we received your return but we could not give you your funds because there was no banking information attached to your tax return. So if you have a refund, you will need to make sure that you’re putting your routing number and account number. Now, if you’re a person that doesn’t really want the IRS to have your main accounts, you can open a separate account and do this. But you need to do something with it because otherwise Uncle Sam’s going to keep your money — that is the new rule. And my understanding is by next year, they’re not going to want to receive any checks. Dr. Friday 46:18 We try to make at least 95% of our taxes that have balances due pay electronically. But there are times when that’s not always possible. As far as I know, in 2026 they’re going to penalize unless you have cause to use a check. So again, we’re trying to go electronic here, people — that’s the only way it’s going to work. So if you’ve got a refund and you didn’t put the account number in there, you may want to follow up because they’re probably holding your refund. You can go to irs.gov/refund and look at the status — have they received the return, are they processing, is there a hold. At least it gives you some detail. Dr. Friday 47:05 All right, so if you need to reach me, my office is open Monday at 615-367-0819. You can also email friday@drfriday.com. I will tell you we’re running a little behind on both messages and emails. I’m doing my best to catch up this weekend. But if you want to email friday@drfriday.com or call 615-367-0819, cop ya later.

Dr. Friday Radio Show – February 28, 2026

Dr. Friday Burke — Mon, 02 Mar 2026 19:05:03 +0000

Dr. Friday takes live calls focused on practical tax decisions people are facing right now. She explains how capital gains work on inherited and sold property, why basis documentation matters, and why guessing tax numbers can create IRS problems later. The episode also covers Social Security withholding, the new age-based $6,000 deduction, home-sale exclusions, and rental-property recapture issues.

Summary Points

Dr. Friday explains that overtime tax relief applies to the overtime portion, not the entire hourly wage, and taxpayers should use employer records instead of estimates.
A caller asking about an inherited property sale gets guidance on stepped-up basis at date of death, documentation options, and reporting gains on Schedule D.
She notes that Tennessee residents who sell property in other states may still need to file a return in that state if taxable gain exists.
Listeners are urged to review prepared returns carefully, ask line-by-line questions, and avoid ignoring IRS letters requesting support for amendments.
During multiple calls, she clarifies that the age-based $6,000 amount is a deduction, not a refundable payment, and tax impact depends on income.
Additional call-ins cover primary-home gain exclusions, family-related payment questions, and how rental sales can trigger both capital gains and depreciation recapture.

Episode FAQ

Q: Do seniors automatically avoid capital gains tax when they sell property? A: Not automatically. Age alone does not remove capital gains, though primary-home exclusions and lower-income capital-gain rates may help.

Q: Is the new $6,000 amount a direct refund check? A: No. It is a deduction that can reduce taxable income, not a dollar-for-dollar refundable payment.

Q: If I sell a former rental property, what can be taxed? A: The gain can be taxed as capital gains, and prior depreciation may be recaptured at ordinary tax rates.

Transcript

Announcer 00:00 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-WW-FC. That’s 737-9986. So here’s your host, financial counselor and tax consultant, Dr. Friday. Dr. Friday 00:29 It’s an absolutely gorgeous Saturday out there. My girl is outside making sure that no one sneaks up on the property. Apparently, you’ll hear in the background. If you want to join the show, you can at 615. 737-9986, 615-737-9986 is the number here in the studio. We talk about taxes. I am an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. We have seen that a lot of the one big beautiful bill has helped out a lot of my tax people. Everyone will have their own. opinions on that, I suppose. Most people, if you’re in the the middle to low income, you will see benefits of the no tax on tips the uh tax uh extra tax or the refund on overtime as well as if you’re 65 and older getting that six thousand dollars And, you know, I mean again, some people will get more benefits. A lot of people still confused on how much of the overtime they’re able to take. Again, this is just the portion that is overtime. So if you make $10 an hour and overtime is $15, you’re only taking that $5 of overtime is the portion of overtime you’re able to deduct, but it’s still a good uh portion and it does work very well if you’re not sure uh how much you do need to either take a look at your final paycheck stub and or you need to contact your employer so they can make sure that whatever information you’re putting On your tax return is correct. I would not suggest I have um seeing a couple interesting things on the internet And I’m gonna be quite honest with you, I do not suggest guessing. I do not just say, oh, put whatever number you want, the IRS won’t know. You know Keep in mind the IRS has basically three years to go back and audit. They will be getting this information from employers. And if they do find it, guess what? You are responsible for all the information and even the information that a a tax preparer, let’s use that term instead of an enrolled agent because we don’t, but someone just throwing numbers on a return. So be careful. That will possibly or most likely come back and bite you. Okay. Looks like we’ve got Wayne in Jolton Um, this is Dr. Friday Show. Can I get you online? Caller 02:46 I’m here. Dr. Friday 02:48 Hello, sweetie. Caller 02:50 Hello. Thank you for taking my call. Dr. Friday 02:52 Sure. Caller 02:53 I have a Sumner County property, maybe a capital gains question. My brother sold some property for $80,000. And will we have to pay capital gains on that? Dr. Friday 03:10 Well is your does your brother pass away after he sold the property? Caller 03:14 No, no, he’s he’s still very much alive. Okay, okay. Dr. Friday 03:17 I didn’t mean to kill him off that fast. Um anyways, um it just depends on what his original basis is then so if he purchased the property for 80 and he sold it for 80 there’d be zero but if he purchased it for 40 000 let’s say held it for a number of years and now he got 80 000 he would pay tax on the difference or on 40 000 like that example Okay, this was inherited and given to the Okay, so does he when he inherited there would have been a basis or there should have been a basis established. So at the time of that person that passed away, within 30 days of their passing, when you to know what was that property worth if you don’t have any way of going back to appraisal you can usually look at property taxes that’s not always the best number but it is at least a viable number Caller 04:04 So the property So would they have would he have paid taxes on that at the time he inherited it? Dr. Friday 04:09 He wouldn’t have to. No. What he would have gotten is let’s say let’s just say um he passed the whoever died passed away a year ago. The property at the time of that passing was Worth $80,000. A year later, your brother sells it for $80,000. It would be zero tax. So what was the property? He needs to find out at the time of the property with whoever he received it from passed away. What was the value at that time? Oh okay. And then the difference between that and what he sold it for will be capital gains, if there is a difference. Caller 04:39 And that’ll be paid to the IRS, right? Dr. Friday 04:41 Yes, sir. And that will report on a schedule D on his personal return. Caller 04:46 I’ve heard you plenty of times. Thank you for talking to me. Dr. Friday 04:48 Hey, no problem. Thank you for calling. Okay, that was a good question. And um Go ahead, hang up. Um and I will say that is something that is sometimes confusing on when we inherit. And uh I I can’t put out enough. The best thing to do if if for some reason um it’s It’s a bad situation, but if some reason you have now inherited some property, or maybe you inherited it years ago, the best thing you could do is to get either a real estate agent, an appraisal company But you need to know what that basis is because otherwise the IRS is going to say your basis is zero. You didn’t purchase it, so you have no purchase documents. You inherited. What was the value of the property at the time? Time of inheritance. That’s what we need to know. Then it’s you know, many times I mean I have people claim losses because they’re not able to sell it for what it was worth with the time. Most of the time and tonight to see though we’re fortunate that our property doesn’t usually go down. It has a nice steady uphill um grade, at least at this point. But either way, you need to know and then if this property was not in the state of Tennessee, let’s say you sold you inherited a house in in Alabama, Kentucky, um they have state income tax. So you would also have to file a tax return there if there was a capital gains. So again in Tennessee, we do not, and just because you live in Tennessee, if you sell something in another state, there is normally a capital gains tax or a tax due at the time. of the sale. Inheritance-wise, most of the time we don’t pay anything, but at that time you will pay something and it will be time to have to do what you need to do, which is file taxes on it. So hopefully again, if you’re sitting on something You know, now before you decide to put it on the market would be a good time. So you’re not having to run around and try to figure it out after you’ve already sold it. And real estate agent um agents are really good. I have a number of them are friends, and especially if they’ve just sold the property, they can usually pull comps for when the person had passed away. So if you’ve just recently sold that property, you might be able to go back to the real estate agent, have them pull comps in that area. at the same time that the person passed away. So now you have something in writing that would say this is what it would have sold for back at the time that person would have sold at before they died. And then this is what you sold it for. You’ve got documentation to justify the numbers on your Tax return. All right. So let’s continue forward, making sure that we have everything we need to move forward on our life and trying to get to all of my emails. have been a busy day. But anyway, so if you um you’re working on your taxes, we are totally working on our taxes here. I will tell you uh at this point our calendar calendar is full to be honest, which is a blessing to have. Not always great when you’re always wanting to meet and help new people. If you’re a returning client, we usually have a space for you, but new clients, we won’t be able to do anything but file an extension and then help you out. But um either way, um if we can’t help you, we can try to refer somebody if we know of someone that um that’s available that hasn’t already has their calendar full. But if you have a tax question, maybe you’re doing your own taxes or maybe like the gentleman that just called, maybe someone you know has asked you a question and you’re like, I don’t really know how to handle this. Maybe I can help out. If nothing else, I can send you in the right direction. So you can find out what would be the best way. Because what you don’t want is the IRS changing your tax return. It does happen often actually. So you want to make sure that if there is a change, we got a letter from one of my clients. We amended a tax return. return in 2025 and the IRS sent back saying we need more documentation on that amendment, so give us more papers to justify why you’re changing the return this happens quite often and a lot of times people are like well i filed the tax return and they haven’t adjusted my things you need to make sure you’re not ignoring irs letters or if you’ve gotten a letter and you’re not sure how to respond so you don’t respond sometimes that can be a problem as well so just make sure that you’re dealing with your issues and moving forward with whatever you need need to move forward with. If you um do have a tax question, you can join us here, 615-737-9986-615-737 9986 taking your calls. As uh people that may not have heard this show before, my name is Dr. Friday. Friday being my first name not my last name um and i have a phd in economics there’s the doctor part but i do taxes i’m an enrolled agent that’s the important part of all of this because as an enrolled agent i can represent you in front of the Internal Revenue Service. I can help you file your taxes if you’ve received love letters, maybe you haven’t filed taxes in a number of years. Whatever might come with that, that’s where you you’re going to be able to help you make sure you can stay in compliance. Because remember, the IRS is a collection agency, a very powerful collection agency. But that is what their job is. So they basically are going to go out and try to collect what you owe them, be that through the the taking of your payroll, cleaning out your bank accounts, seizing properties. They have the authority to do all of that, but not just Today I’m going to seize your property. There has to be notification, communication. So keeping that communication open is the way you’re not going to have as much happen. But also staying in compliance Maybe you made a mistake back in 2015 or 2016, but you’ve always filed your taxes. You’re less likely to have as much really angry situation unless you basically have the ability to pay, but you’re not paying. And that’s sometimes an interpretation. Don’t get me wrong. I know that. I’ve gone through people’s paperwork and they’re like, I can’t afford to pay anything to the IRS, but yet They could because the IRSA doesn’t look at you paying off your credit cards every month being a way of taking care of credit card company isn’t something the IRS considers something you have to pay in full. Your child being in a private school. I had one that had three kids in private school owed the IRS, but the private school, the IRS doesn’t that’s a that’s a something, a luxury that you can put your child into. If you’re using IRS dollars to keep your child in private school, the IRS is going to look very badly on that Um, you know, if you have money stored in equity in your home, but yet you don’t want to take it out and you have the ability to do that, some people don’t. But these are the kinds of things you need to answer questions of you always hear these places say oh we can sell it for 10 cents on the dollar really not everyone can do that in fact a large number of my clients have to make make an actual deal. And we did one 320,000. We just closed. It was 116,000. He was very happy. We were able to resolve the issue, get it taken off. And that way he’s able to go back and move forward and rebuild his finances without the IRS being on his back. But it wasn’t going to be ten cents on the dollar. He had too much um invested in other ways. So you have to figure out what’s going to work, but you also have to deal with the IRS. You can’t just ignore them. They will find a way of being recognized in your life. All right, we’re going to take our first break. If you want to join the show afterwards, you can. 615-737-9986 615-737-9986. We’ll be right back with the Doctor Friday show. Alrighty, we are back here live in studio. You can join us if you want at 6 Six one five seven three seven nine nine eight six six one five seven three seven nine nine eight six taking names and uh taking numbers I don’t know what I’m taking. I’m obviously a little confused. Um, but if you want to join the show, you can. If you ask tax questions or if you’ve got something that you’ve been looking at, you’re trying to figure out which way you need to do it. Um, and deal with the situation. I had an email that came through during the break and it was from Kate and she was asking, she says she has three properties that she inherited and And she’s not had them yet transferred actually into her name because probate hasn’t happened. She wanted to know if she could claim the property taxes on them. And as for anyone that’s listening, if you have multiple properties You can’t always take the interest because if it’s not your primary home or secondary, you cannot take the interest. But property tax on any properties that you have can be added under the salt tax. So your home primary one plus any others And she’s just asking, can she deduct those since they’re not in her name? If she has proof that they are actually her properties just waiting for probate. and that they will be in her name and she paid from her own pocket, not from uh an estate bank account or something, I think there would be enough room to justify that those inherited properties would be able to be deducted from her her pocket because she paid them out of her pocket. Preferably you do not put any tax or property on your tax return that you do not own or or you’re not buying. I mean sometimes the bank helps own all those things as well but that’s that would be the the tricky part of that cost conversation. Either way, if you have a question, um again, 615-737-9986. Okay, so I was working on some taxes recently And I noticed something when I review. This is a first-time client to me. And so I want to make sure when you guys go and have your taxes prepared. It it’d be like me going to an auto shop and saying the car is not working, and then when I get there the car is working. I would not understand, to be quite honest, I wouldn’t know what they did to really make the call work. They might tell me, but I wouldn’t know. So that’s sometimes how taxes are for some people, right? So you go in, you hand them the the documents, the tax returns done, and you just assume That’s what you just paid for that this person knows their taxes. But I can say to you, take a quick look. Ask questions as Like, hey, did you get my rental property? Did you get my social security? And that they should be able to just say, yes, it’s on this line here. You can see the schedule. You know, did you deduct uh my property taxes? And then they’ll say, no, you know, you didn’t qualify, or yes, here it is on the Schedule A. Feel free if if you’re feeling that you can’t ask those questions, you’re at the wrong place. These are taxes that you’re signing off on saying they are done to the best of your ability or the best of the ability you you hired someone to do. Um and what I have found is that several of these uh people doing taxes um aren’t putting things on the right lines. I mean, I have one where this person had been going to this person for three years. They have a rental property and somehow the it the income from that rental property without reporting total income and all the expenses, just the net effect was ending up under other income Um, that means the depreciation wasn’t coming through. That means there just was no paper trail, you know. I mean, just said other income. It didn’t even say rental as other income, it just unidentified other income. You know, uh same thing when I had one company where they they did a lot of personal loans and they had actual mortgages, right? And they weren’t reporting this as interest On their tax return, even though they were providing the information to the preparer that they were dealing. So I just want to make sure when you go into these, I know that you’re going to say, hey, I’m paying this. person to do their job. And yes, you are. But keep in mind that the IRS is also looking at you as the final person. Your name’s on that, your social security number, you are the final person So and and mistakes might be made. I mean between any person. I’m not, you know, no one’s perfect. But you need to at least ask. Hey, did you pick up this? Did you didn’t really ask me, but I had this And they may turn around and just say, you know, that didn’t really apply this year. That’s not part of the current tax code. You can’t deduct this. Who cares? Those are questions. Questions should be answered. You should feel comfortable with the person that you’re dealing with to ask those questions, to review that information. That’s all I’m saying. If you’re not if you’re going in someplace or you know you know you’re dropping off your tax forms, again, nothing wrong, but how long does it take to have a basic conversation and say, hey, can you confirm these information is all on here Because I want to make sure when I’m signing that this information is there for me to sign off on, you know? Um, so you have to make sure you’re the person that is asking those questions and that you’re doing it. I have another one that just came in and she wanted to know if she could write off the miles to going to her doctor. And she had heard that there’s medical miles. And the answer is yes. There are what’s called medical miles. There’s also, if you work for a charity, there are charitable miles. But keep in mind you also have to deal with the fact that you have to itemize to take either of those so right now that’s a little hard to do it’s what almost 16 000 for a single person 31 for um person underage, a married couple underage 65, I think, and like 34 if you’re over 65. So it’s that’s a lot of debt. Single people probably have the easiest because if you have a decent sized mortgage, you might be able to itemize um some of the charitable miles Medical miles, you have to have more than 7. 5% of your income. So $7,500 if you make $100,000. Anything above that would be a tax deduction. So again, it really comes down to income and how hard or easy it will be for you to be able to meet those criteria when you’re doing it. But Always turn that information in because you never know if it’s something that’s going to happen. All right, let’s hit Steve. See what I can do with Steve. Hey Steve, what’s happening? Caller 18:49 Yes ma’am, thank you for taking my call. I wanna ask the question about the big beautiful bill and the addition to the standard deduction Dr. Friday 18:59 Yes sir. Caller 19:00 Uh over sixty-five, right? Dr. Friday 19:02 Yes, sir. Caller 19:04 But it only adds to your standard deductions, correct? Dr. Friday 19:08 No So if you itemize or take a standard deduction, you still qualify if your income limit is within it for the six thousand dollars per person and this is only for as Steve was saying for people that are age 65 and older this doesn’t have anything to do with itemization It’s actually two lines below that. Caller 19:31 You’re not gonna I guess I’m trying to ask, you’re not gonna wind up with that money, right Dr. Friday 19:36 You’re not gonna I mean it’s a deduction, so you’re not gonna get a refund of six thousand dollars. It will reduce your income by six thousand dollars. Caller 19:44 Yes, ma’am, that’s exactly what I thought. I just want to make sure about that. Dr. Friday 19:49 I like that, yes. I had two people call this week at the office and that’s the first thing. I don’t I don’t need to file, but I want to file so I can get the six thousand dollars. So there’s obviously a lot of misconception. So thank you, Steve, for calling Caller 20:02 There is must dis uh uh must yeah. Yeah. Dr. Friday 20:11 Hey thanks for calling. And uh it yeah. And to reiterate really quickly what Steve and I were talking about for people that might be listening is um simply you can hang up on Steve uh is that the one big beautiful bill one way for them to help people over sixty five pay tax on social security now some people at sixty five are not taking social Social Security yet. But the theory is, is that the majority will be on or soon to take Social Security is to be able to give them a deduction of $6,000. So if you’re in the 20% tax bracket, that could save you. about twelve hundred dollars in taxes. But this is only if you owe taxes. I had two people this last week week they called they’re very confused because they wanted to go ahead and file taxes even though they haven’t had to file for years because all they had was social security And so Social Security itself is not taxable, therefore they have a zero tax return, but they wanted to get the refund of that money. That money is not refundable. Zero percentage of it is refundable. It’s only good for individuals that actually have to pay taxes. And it would help reduce your tax bill. And it does work. I have a number of people that if their income, especially in retirement, are often the Really close, you know, 75,000 this year that’s 76. Maybe they made a little bit more in interest. So their tax bill is fairly consistent, and we’re seeing a thousand dollars, a two thousand dollar drop because of being well in the one with there’s two thousand there’s two of them so it was a twelve thousand dollar deduction but still that was helping did it cover all the tax that was on social security Security? No. But was it a nice, wonderful surprise? Absolutely. It is a wonderful thing. And most of my clients are just happy that they don’t have to pay as much as they usually do. So, you know, anytime you can save a few dollars, it is a win-win situation. But it’s not everybody’s not going to get it. If you’re a single person and you make $85,000, you’re not going to qualify for all six you might get $4,500, whatever. It’s going to means test out is what I call it. So $75,000 or less as a single person, you will get all $6,000. 150,000 or less, you will get 12 if you’re married, 12,000. And but if you make any more than that, they will slowly zero itself out. So just, you know, put that out there. But again, it is not a refundable, it is not going to be putting more money in your pocket. It is all going to be a way of reducing taxes. Period. Reducing taxes. Okay. Hopefully that helps. Uh, because it’s very frustrating when you think you’re not getting enough money, or if you think, oh my gosh, I’m gonna file because I want to get some more money, and then you find out it’s not refundable, then you get a bit upset So if you’ve got questions, you can join the show. We’re going to take our second break here, but he can at 615-737-9986 We’re taking your calls, talking about taxes, talking about IRS issues. Maybe you haven’t filed for a period of time. Maybe you’re looking at something on your tax return and you’re sitting there going oh my gosh why do I owe so much money usually I’ve had those calls and people are like you need to do my taxes because I did them myself and I owe all this money and I want you to file them keep in mind I’m not doing anything different than you would be doing unless you’re not sure how to do your taxes. If you’re not answering the questions properly, you’re not putting the forms in properly. Sure. Sometimes my number might be higher than what you have. Sometimes it’s lower. I had a nice one this other day. She was just doing an estimator that they have on the IRS website. and the said that she was going to owe like $8,000 and she only owed $800. So um it was a wonderful thing. But that was an estimator and probably didn’t have all the information that I did when I prepared the actual test tax return, but it made her happy anyways. All right, we’re gonna take a quick break. We’ll be right back with the Dr. Friday show. Alrighty, we are back here live in studio. I’m Dr. Friday, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. So if you have a question concerning taxation had someone that wanted to know his wife was uh working as a travel agent and wanted to know if he uh if if the trips they were taking would be able to be qualified as a tax deduction. And that’s an interesting question actually because I have a couple people that are part of a um travel club, I would like to refer to it. And the idea is you get people to help sell products and people to use it for their vacations and they do things on the side. Um but it’s not really any of them they don’t do as a full-time job. First, if you’re truly a travel agent, you need to be making sure that this is a full-time position, not just something you do on the side because you get some good discounts and you like to travel. And then I think you would have to be able to really document how many trips you have sold on those kinds of trips so that you can show that your experience of having this travel has made the trips a viable tax deduction. So let’s say you’re uh take a cruise on the Royal Caribbean and you you’re doing different ports of call, but you’ve never booked one of them of those you’ve never actually sold this package to somebody else um and you know and you’ve taken two or three or four different but yet you’ve never even booked booked a cruise or booked only one or two cruises yet you spent more in travel than you have in actually bookings. The IRS is not going to look at that as a necessary um tool. Now if you’re selling, you know, 50, 60, I don’t know what they call them, rooms on a cruise, every cruise, and you take a accrues. I’m assuming that would be necessary because you’re now selling something that you have a better uh knowledge on and that’s creating sales. Therefore it’s a necessary um part of your job. So again, it really does come down to um how much what how how necessary of that trip would be what did you walk away with what can that turn into dollars because the irs is not like your vacation has nothing to do with doing this kind of situation. It all has to do with how and what you’re going to generate in sales and how was that tied to whatever you did I know I had a client also walk in the office this the other day and said, well, you know, why can’t we, they have like four rental properties. Why can’t we buy ourselves a Mercedes and use that as a car for the rentals? Um and they they manage them themselves. So theoretically there is a management But how is the Mercedes a necessary expense to managing rental properties? It’s a lot like a guy that owns a hotel that goes buys a beautiful BMW um and they write the BMW off. How is how is that necessary to the hotel business? Now, if that person had to have a vehicle, and then keep in mind there are luxury deductions, so theoretically the IRS is saying A car maybe necessary because he owns five hotels and he has to drive it between them all. It’s a necessary expense. But is it a necessary expense to go and buy $175,000 Mercedes or whatever. There is rules. I know people will turn around all the time and they’ll say to me, Well, I brought over a six thousand pound car and I should be able to take a section 179, which right now, again, we were not at 100. But thank goodness for the one big beautiful bill, we’re back at 100%. So I want to take that $175,000 vehicle off as a necessary vehicle for my business. And again, what is your business? Why would you? I mean, it has been approved in court. Um, a couple of the real estate people have been able to prove because they have sold multi-million million dollar homes, their their relationship to that kind of um sale is vital for them to prove their success and people like to see that therefore they’ll use them that has been proven but it’s also been proven that somebody that owns as I used it earlier a hotel or a handful of rental properties. I don’t care if you own a hundred rental properties and you’re managing all of them, it would still be what’s the necessity of having a high-end vehicle? Especially if all of those rentals are in normal, ordinary neighborhoods. It’s not like you’re in the million-dollar club and you have to go in and out of um very nice subdivisions with multi-million dollars and your vehicle would be um something that might not uh sell something or be a part of but keep in mind What you drive, the IRS basically says it’s four tires, right? They don’t care that you have it. So you need to prove the necessity, especially if you’re not just using miles Miles you can justify, right? Because hey, if I have four rentals and I need to go to my rentals, I can go from my home. to the first rental and then f and I don’t have to show that as commuting in a rental situation because I drove out there specifically for a reason to go to that one and then if I had to go to Home Depot go back to that repair something and then come home. That is a legitimate tax deduction. I did something. Maybe I collected rent. Maybe I need to look at something to get a repair person out there. Those are, that’s my job as a manager of my own rental properties. That is allowed. And saving the receipt, making sure you document that receipt because the problem is Home Depot lowells. Um, if you order something online to replace something They need to know that that was for said rental, not for your personal home. And that’s not easy to prove unless you can show this is what the process was and and how you how you had to replace the light bulbs or the air filters or whatever it was. And and you know it’s it’s up to us as the taxpayer to document what we’re doing so we can do that. And while we’re on that subject and rentals, let’s also not forget that our lawn person our heating and air conditioning guys, our repair people, anything from roofing, unless they’re a corporation, which most businesses nowadays are LLCs, we need to 1099 them because rental properties are businesses. If someone does it at your own house, your own personal lawn guy. It’s not a business. Theoretically we’re not, I’m sure the IRS would love it, but theoretically we’re not responsible for 1099 them. But if we have a property that we’re renting out, that now makes it a business, that now makes it something that you have to 1099 those people. There are penalties up to $500 for each penal 1099 you do not issue. There is stuff that you need to to deal with is all I’m saying. So don’t just think that this is all easy. I know some of my people sometimes um I think get a little relaxed with it. And um You know, as long as the IRS isn’t looking, that sounds great. But if the IRS is looking, not so great, because then they disallow it. Now you’ve got profits that you didn’t have before, and that never makes anybody happy Let’s just be honest. It never does. It doesn’t make any of us happy. So if you want to join the show, you can. It’s 615-737-9986-615-737 9986 just saw an email about doing a 1031 exchange. I am an avid believer in 1031 exchanges as long as the profits on those justify the purpose. So meaning that if you have a property that you have $10,000 in because you’ve owned it for 40 years and now it’s worth um a hundred thousand dollars and that ninety thousand because of your income could be taxed at twenty-three percent, that might be a good time to consider what they call a ten thirty-one like kind exchange. Sometimes it’s It’s you know whatever the dollar, but if it’s only like a ten or fifteen thousand dollar difference, I’m not an avid believer, why not pay now and then not have to worry about it? But most people look at ten thirty-one exchanges, you’re talking at hundreds of thousands or even millions of dollars. And keep in mind, whatever you sell that property for, you now have to buy property for And so um it, you know, it is what it is. So you have to turn around and and make sure you do that. So if you have um you know, sold something for a million dollars and even though you may have had a mortgage for six hundred thousand on it, you still have to go buy another property for a million dollars to get it um out of you know to to qualify for a 1031 exchange it’s not based on your profit it’s based on the gross sale and you can always deal with someone on that question all right let’s hit Danny in Nashville see if I can help him out Hey Danny, thanks for calling. Caller 33:15 Hi Doctor How are you? Thank you so much. Um the reason I w I have a capital gains question, I heard the first caller call about capital gains Dr. Friday 33:24 Mm-hmm. Caller 33:24 And uh we have a similar situation with my mother and father in law. They are elderly. Uh they bought a piece of property uh for Uh well I can give you the numbers for twenty thousand and they sold it for fifty thousand. Uh is but uh with them being seniors, does that matter? Uh do they get some kind of special consideration because of that Dr. Friday 33:46 No, the only only kind of consideration anyone gets and age has no bearing would be if it was their primary home. But otherwise. Caller 33:55 It was not their primary home. Yeah. Dr. Friday 33:57 Yeah. Then they’re looking now again, there is a zero percent capital gains rate for long-term, I mean short term is ordinary income, but if it’s been held for over a year, and if their income is a married couple including the capital gains of in this scenario, let’s say thirty thousand dollars is all under a hundred thousand, they may still pay zero tax. Caller 34:18 Okay. Dr. Friday 34:18 Yeah, well so I don’t know their situation, but I’m just saying sometimes we get lucky on that element. But other than that, uh Um yeah, they’ll they’ll have to pay capital gains on the difference. Caller 34:28 Yeah, well I don’t think they’ll even come close to that. Dr. Friday 34:30 So that may be their saving grace. Exactly. I I’ve had it happen more than once, my friend. It’s always a nice little gift that keeps on giving. Caller 34:38 Yeah, well I I certainly appreciate it. I listen to you often and I have met you a couple of times when you’ve helped me out with a couple of things. So I appreciate it. Thank you so much. Dr. Friday 34:46 Thanks for calling Danny. I appreciate it very much. All right. You can uh Thanks, Danny. All right. If you want to join the show, we’re getting ready to take our last break, but you can join the show at 615-737-9986-615-737-9986. taking your call, talking about taxes, talking about maybe like this situation where you know somebody else that has maybe a tax question and not everyone’s um brave enough to call a radio show. So it takes a little bit of guts to do it. So if you have a question for someone else or a question you might think other people might be thinking about and you want to have An answer to it, feel free to give us a call again at 615-737-9986-615 737-9986. Again, I’m Dr. Friday. This is an I am an enrolled agent licensed by the Internal Revenue Service to do taxes. and representation. So if you’ve got questions dealing with that or maybe you just know someone that hasn’t filed taxes in a while and you need some help, we’ll be more than glad to help you out or leave lead you in the right direction to help you make sure that whatever you’re doing now, you can make sure it’s not going to cause problem later because the last thing you really want is Uncle Sam. to be a person that is going to be on your back all the time. All right, we’ll be right back with the Dr. Friday show. We are back here in studio. Let’s uh looks like we got a few people. Let’s go to Sue and Smyrna first. Caller 36:13 Hello. Hi. I’m a senior citizen and um because of the Fairness Act I got a lump sum last year. Mm-hmm. And uh I had to pay eight hundred dollars taxes on it. But so I went in and I uh put down that I’d take out seven percent you know, for next year taxes or whatever. Are they gonna is has President Trump done the no tax on social security or should I just keep that seven percent or should I raise it Dr. Friday 36:46 Well, I mean, at least keep the seven. The no tax on Social Security is is basically his way of the six thousand dollar that he gave you because you’re over the age of sixty-five, that’s how he’s helping with the tax You’re under sixty-five, then uh you won’t get it yet. Caller 37:03 Yeah, I’m over sixty-five. Okay. Yeah, I got it this this year and that did help, but Yep Dr. Friday 37:09 Sorry. Yep, but good question. Caller 37:11 Oh yeah, I was thinking it wouldn’t tax it at all. Dr. Friday 37:15 But we were all hoping, but that is not gonna probably pass uh to be quite honest. Just not gonna happen too many people of over sixty-five that help pay the tax bill. Caller 37:26 Okay. Do you think seven percent will be good? Dr. Friday 37:29 If that I mean if you again it really does depend on how much, but you sound like you were pretty close this year, so it sounds like the seven percent should be pretty close, but um you know it’s too hard to say on the radio unfortunately. Caller 37:41 Right, right. Well yeah well I’ll just keep that I if I have to pay I have to pay. But yeah thank you for your help. I appreciate it. Dr. Friday 37:48 Thank you Uh-huh. Let’s do Susan and Dixon. Goodbye. Susan? Uh how are you? I’m good Caller 37:56 Quick question for you. Um I wasn’t I was wondering if someone’s lived in their primary residence for say twenty to thirty years and then they sell it, are there any tax benefit credits for I mean are Anything that saves you other than paying is a big difference? Dr. Friday 38:10 Right. So the only advantage, I mean, anyone that lives in it five years or more has the two out of five year sale and it’s two hundred and fifty thousand per person, so A single person would get 250,000 exclusion and a married couple would get 500. Um that exclusion plus whatever you paid for it. So So let’s say you paid 200, you get 250, you could sell it for 450,000 and pay zero tax. Okay, good. Yeah, okay. Good. Thank you. Thanks very much. Uh-huh. How about Bob in Columbia? Caller 38:45 Hi Dr. Freddie. My question is very quick. Uh Sure. Is that considered income to me as the homeowner? Dr. Friday 38:56 No, thank goodness Yes. But no, that’s just all between family. Caller 39:01 Okay. All right. That’s all an easy one. Dr. Friday 39:03 That is an easy one. Thanks, Bob. Caller 39:05 Yeah. Thank you. Dr. Friday 39:06 All right. And that actually th that is a a good question. I have had that more than once. Because even when you have a rental and a lot of times people will let their children rent, there’s certain things like we can’t take losses on those kind of rent. rentals. It’s a little different when it’s family, family works together, achieves whatever they’re going to go after and do what they need to do. But other than that, you don’t have to worry. That’s just, you know You can give a gift to each person of eighteen thousand dollars or nineteen, I think it is now, uh, per a year. So all of that kind of washes out those kind of situations. It’s not a tax deduction for the child either. So um you know, that works out for for anyone. But those were great questions. I did want to say um if if you are a person sounds like um Uh Sue initially she was asking about um the tax on her social security. She’s actually thinking, because a lot of people do not take the choice to have taxes withheld on Social Security. But that can be a problem because I have people now that are getting, you know, $50, $50,000 a year in Social Security, up to 85% of that can be taxed. You’ve got $40,000 that doesn’t have any withholding. That’s going to eat up your entire pretty much 12% tax bracket if you’re single. So it is an important thing to think a little bit more about if you’re getting Social Security on top of a pension, on top of your RMD or your IR, um your IRA distributions, um, or maybe you still have a job and you you’re receiving your your social security, you know, you need to make sure you are thinking about the taxes that happen on social security because so often, you know, this the $6,000 per person um helps. It does save a few dollars, but it’s not going to pay your social security. Bill, most likely. At least we we did some uh calculating in our office this last week and did it with and without the six thousand and and how much the tax was on the Social Security based on their income brackets and it’s it’s not going to help that much but it does help it’s better than nothing so it’s better to put that 500 1000 1200 whatever it might have been that saved you versus what you would have had last year rolling into the this year. So um take the win for what it is, and most of us do, but it’s uh I I have not yet seen anything from Donald Trump other than what happened on the one big beautiful bill. He still talks about not wanting to pay tax on Social Security. I just not seeing anything that’s going through the Senate or the House that shows that that’s actually going to be be um a viable um concept but we can hope don’t think we should pay tax twice on anything and social security is definitely being double taxed when you are retired. So if you have a question or you need to have um you know some some sort of situation and uh you can always email us at friday at drfriday. com. I will tell you this time of the year Um our staff is doing their best to communicate, try to get back with you, try to update you on what you have. Um they will try to uh at least send you in the right direction if it’s a question that we can help you with but um this is our busiest season so a lot of times that’s also when you’re thinking about what’s going on in your taxes while I try to push throughout the year to be thinking about these things we do a lot of times in in um our tax meetings that we also prep for 2026. What what do we think is gonna happen? I might retire, I might sell a house, what would happen to my Irma if I sell a house? How long do I have to pay the higher uh Medicare tax? Cause a lot of people Um let’s say you you own a rental property and you sell it and you make a couple hundred thousand or you know whatever and now you’ve got the taxes, but you also will have if you’re receiving Medicare, you also have IRMA that’s going to be a problem. And how can you, if you can, avoid that kind of situation? And You know, to be quite honest, it’s not an easy thing to avoid. Yes, you can do 1031s, but then you really haven’t sold your real estate. You’ve really just changed one type of real estate for another um and that doesn’t make an easy transition so there are there are some reads and different things out there that is a possibility for you to be able to sell and do something with but um i’m not a financial planner let me put that out there i do taxes only taxes so if you’re looking for financial um advice financial planning advice you need to make Make sure you call someone that is an expert in that division. I am not that person. I am a tax person. So I can tell you what is going to be the best um option through the eyes of someone that’s looking to save taxes. But keep in mind, my my vision is usually one to five years. I’m not looking at retirement for you. I don’t know what you have coming down the line unless you’ve shared it. And then we might say, well, you know, hey, it’s a good time. Be honest with you, we have a number of people that are now over the age of 65 and we have that extra twelve hundred or twelve thousand dollar deduction And so we’re doing some small IRA conversions at zero or 12%, keeping them in that lower rate to make things happen. All right, we’ll see if we can get John on and off. Hey, John, what can I do for you? Caller 44:23 Uh yes ma’am, I bought uh bought a property years uh years ago. It was a trailer in five acres. Dr. Friday 44:28 Mm-hmm. Caller 44:29 Lived in it, paid it off, sold it. So I rented it, decided to sell it and I just sold it th last year The bank said something by a gift equity tax because I’ve kinda sold it cheap ’cause it’s kinda rough shape. I made twenty five thousand off of it actually. Do I have to pay taxes? Dr. Friday 44:47 Well I guess uh how long how long did you rent it? Caller 44:54 Okay. Yeah. Dr. Friday 44:55 So yes, so the difference between what you paid for it Um and what you sold it for, that would be taxed at capital gains. And then also since you had it as a rental property, you probably depreciated that trailer or you legally should have depreciated that trailer for those five years And so then you have to recapture depreciation, which is taxed at ordinary rates. Reason I don’t like depreciation. But we don’t have an option. That’s tax law. So just put it out there, but you would have both of those. Caller 45:25 Well see the bank, of course the county appraised it for one fifteen. And that’s the reason that their gift equity tax was their down payment Dr. Friday 45:34 Right. But you purchased it for how much? Caller 45:36 Yeah. Dr. Friday 45:37 Oh fifty. Okay. So the difference between the fifty and the one fifteen theoretically would be your capital gains Plus wouldn’t wouldn’t be much of a recapture. Now you may have done improvements on the trailer or something while you live there, so that’d be something you’ll have to look at. Unfortunately, we’re hitting the end of the clock here, John, but you might want to see if you did any major improvements that would have helped value the land for reason it’s sold for more. If you didn’t, then yeah, you’re just looking at some decent capital gains Sorry. Okay. Thank you, sir. All right. We’re at the end of the show here. If you want to join us or have a question or whatever, you can email Friday at Drfriday. com. Again, that’s Friday at drfriday. com. You can call us on Monday morning at 615 367-0819-615-367-0819. Hope you have an awesome Saturday. Love the show. Cop you later.

Dr. Friday Radio Show – February 21, 2026

Dr. Friday Burke — Tue, 24 Feb 2026 14:13:42 +0000

Tax season is in full swing, and this episode centers on making smart filing decisions before deadlines hit. Dr. Friday opens with reminders for entity returns due March 15, then walks through live caller questions on deductions, IRA strategy, home-sale basis, and grant-funded wages. She also covers reporting side income correctly and planning ahead so tax results are less of a surprise.

Summary Points

Reminder that S corporations and many LLC/entity returns are due by March 15, and extensions should be filed if records are incomplete.
Discussion of overtime reporting issues on tax documents and why taxpayers should use accurate employer-provided figures whenever possible.
Caller conversation on the additional age-based standard deduction and using IRA withdrawals or conversions strategically within tax brackets.
Breakdown of home-sale basis and capital gains factors, including inherited/spousal history, added land costs, and documentation needs.
Clarification that employees paid through block-grant-funded organizations are still generally subject to normal income tax rules.
Guidance on self-employment side work reporting on Schedule C, including tracking income and legitimate business expenses.

Episode FAQ

Q: Should I wait to file if I am missing key business tax documents? A: File an extension before the due date to avoid unnecessary penalties while you gather complete records.

Q: If my job is funded by a block grant, are my wages tax-free? A: The episode explains that employee wages are generally still taxable even when an organization receives grant funding.

Q: How should I report money from side jobs? A: Side income is typically reported on Schedule C, with income and eligible expenses documented carefully.

Transcript

00:01 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 Doctor 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. 00:30 G’day, I’m Dr. Friday, and the doctor is in the house. We are talking today about my favorite subject, which of course is taxes, and it is tax season. It is the time that we’re all looking at our tax forms I know many of you are still waiting for your 1099 consolidated from places like Schwab or Edward Jones. We have many clients that are also on that same page, don’t sweat it, they will come out, all will be good. 00:57 Um but if you are a corporation or an LLC, a sub-s corporation I should say, or an LLC, remember your due date is around the corner, March 15th. And so we just want to make sure that you are not um, you know, waiting too long or if you if you’re waiting for something else to come in and you’re at the mercy of either another company that may be owned and you have to wait wait for their K1 to come into yours. Don’t forget to file your extension. 01:24 Better be safe than sorry. So if you’ve got questions though, you can join the show. 615-737-9986-615-737-9986. Taking your calls, talking about life. favorite subject and then we need to talk a little bit about a couple of the things I see happening in my firm and then if there’s other people that are uh tax experts that are listening, feel free to chime in. 01:52 But I’m seeing a large number of people that don’t have all of their overtime information. Many of them are requiring to have to go back and look at pay stubs. It’s kind of an interesting challenge for tax people like myself because I have found out at least if people work for like GM in some of them They don’t follow the federal overtime standards. 02:18 For example, if you work more than 30 hours in some cases, they get overtime. If they work more than 10 hours It’s overtime. They have the union that has negotiated their overtime schedule. And it isn’t exactly what the Fed. So therefore, it could look like they have more overtime hours than what we have um or what we’re actually allowed to show. 02:40 And then sometimes they have double time and and weekend times. So um you know, as a tax person, we have to go with what we can to the best of our ability uh understand. But it would be very helpful If the companies, now some like Kroger’s and them, even though the WTs don’t have on, they have sent separate letters with the amount for each each employee. 03:02 So that makes it so much easier, right? So again, if you’re just taking a number and you cannot take the total number off of a pay stub because again, that’s your overtime, including your prime rate So it would only be like a third of that or time and a half of uh of the number that you need to use. The IRS is going to get this information from the employer It’s going to happen. It may not be as fast as we’re providing taxes, but it is something that we’re being asked to provide. 03:30 And so the IRS is going to end up coming back and correcting your information if If you put it in incorrectly is my understanding. So make sure you understand exactly how that’s going to work. All right, let’s see if we got Val in Spring Hill, my town. Not the warmest Saturday in the world, but hey Val, what can I do for you? Hey Dr. Friday, I have a question. 03:51 I did my taxes recently and saw that twelve thousand dollar additional uh d standard deduction uh added to the standard deduction for those of us over sixty five. Yes. Is that just like a regular added to that? I mean is that worth Regardless of where the income comes from? 04:14 It is. It’s all based on um AGI. So if you had all 12,000, then I’m assuming your AGI was less than 150,000. for a married couple um or right around that number. And then if you make more than that, let’s say you make 200, then you would have seen possibly nine 9,500. 04:32 Well, they would have means tested, right? I call means tested. They would have adjusted it based on income. But everybody or anybody that’s 65 and older that meets the criteria will get that sweet little uh um a senior benefit, I guess you would call it. I think there’s a proper term senior something like that that they’re putting on my tax returns. 04:52 But yes, it it is an automatic And so so the reason I’m asking is because I’m trying to calculate how much to take from my wife’s IRA without us having to pay taxes on it Um we don’t make a lot of extra income, but we don’t need it. Our social security is good for us. Um so I How I did it was I took the table where you figure out your taxable social security based on you know there’s a number you plop in and it tells you how much is going to be taxed. 05:32 Right I mean I found the chart online which which gave me the number. So I took that and I took the amount I want to take out. And then what I think my income is going to be, and it comes out to less than the forty six seven, which was this the deduction that I you know, the whole twelve thousand plus thirty-four seven If I do that, I shouldn’t owe any taxes next year if I do that, right? 100%. That is the game we love playing, especially when people have retired. 06:00 They’ve they’ve Limit like yourself, you’ve limited all your debts so you can live off your social security. Theoretically you can have a decent, you know, but you have money let’s say in an IR uh a traditional IRA or four And theoretically, could you be converting money every year for nothing or pennies on the dollar? Um, and then that way, you know, when your family inherits or whoever inherits So why not money from the government for free? 06:31 That’s what I want to do because I don’t have to do it from my social security. I’m not required for another two years to take money out. first year that she’s required to so I want to take out as much as I can so that when the time comes, you know her R and D is going to be less. So no that’s that’s a smart idea. Seriously. Very smart Martin I I I I’m glad you brought that up to be honest, Val, because I think so often people just look at the idea I don’t have to pay taxes or or I’m paying the minimum or I don’t even need to file, right? 07:04 But then you you’re leaving money on the table if you don’t need to file it and you do have an IRA or a 401k, maybe you should file just to make that tax-free conversion. It’s just saying you know it’s it’s free money so good idea great planning very good thank you bye bye thank you appreciate it all right that was actually really good um what val was saying so if you are someone one and it doesn’t have to be anyone that’s 65 and older. I’ve got people that retire at at 58 and 60 um and they don’t need to take any money out but maybe they have um small pension or something they’re getting or maybe maybe they’re just living off of savings. 07:42 So the idea would be is to take that free money that the IRS is giving you And if you’re 65 and older, like he said, it’s basically forty-six thousand dollars. Now, again, you have to take into account your provisional income or your social security portion that will be taxed because for some of you you have a zero tax on your social security. 08:01 If you do a conversion, it could be a dollar for dollar. So if you convert 20,000, 20,000 of your social security could be taxed so there’s your 40 but that’s twenty thousand dollars that was converted for zero dollars i mean it’s kind of a no-brainer but you do need to just play the game hopefully you’ve got a good tax person or or if you do it yourself just as Val may be doing figuring it out now’s the time to kind of put it into the this year’s tax program and say hey if I do this and I calculate this and it it comes out with zero because sometimes you have interest and dividends and capital gains, a few moving parts that you don’t have absolute, but the tax code’s not planning to change a lot from 2025 to 2026. 08:43 So it’s time for you to play the game and see how much money you can do without paying. Or maybe you’re only paying six or seven percent And you know, if your children, and I know it’s kind of morbid, but all of us are gonna pass away at some point, and the game is to let your children have it for a lot less than what they would have to pay if you pass away. And if you have a healthy IRA, I mean I’ve got people that have several million, but let’s just say you have 500,000 or a million, you know, and you’ve got one or two children, they have to take all that money out in 10 years. 09:15 That’s the new law, right? So you right now have your entire lifetime to do conversions or do whatever, but when they inherit what’s left, and it’s a traditional IRA and or 401k, they now have a 10-year clock to take whatever you have in there. So if they’re at a decent income bracket, you know, they’re going to have to pay 24 Or some 32% tax on their inheritance. And you could have maybe paid 12 or less on some of it. 09:43 Maybe you’ll never get it all converted, but what you can convert will grow tax-free. So therefore they will have some money that is fully tax-free, if nothing else, to help pay for the taxes on the IRA that isn’t. So it’s just a gift that keeps on giving. So keep looking that direction. Again, I’m not a financial. 10:03 So I’m not saying this uh this approach is for everyone. It’s not. I’m sure there are people out there that if you’re gonna be living off of what you have in an IRA or in your retirement that’s in a tax account a taxable account, you know, maybe it’s it just let it ride and you use it every year during your lifetime and it’s not. 10:23 Another game to play and I haven’t I was talking to someone I guess they had heard the radio show or whatever and I gave them this idea and I I’m glad I said it, but I want to repeat myself because it saved them tens of thousands of dollars because the mother um who was very much a person to squirrel a lot of money aside, right? So she had a very healthy bank account. She ended up in a nursing home. Um it’s costing eleven thousand dollars a month and she also had several hundred thousand dollars in a IRA they were um going to take a lot of they were just going to spin down her cash and then go And start taking the money from the IRA. 11:00 And then they heard what I said, and then they checked with their financial planner to make sure this was a good plan for mom. Because again, we don’t want to, I’m I’m giving you good time tax advice. I’m not your financial planner. Sometimes we don’t work hand in hand. But if if it does work, it’s beautiful. 11:16 So anyways, in this case they were going to take a portion of her IRA, which could apply against, because again She had dementia. She was not going to be ever to live on her own again. It was in a um assisted living, full, full living facility. And so they were able to take part of that because that’s medical cost. And then that way they were taking tax dollars and being able to write it off against medical cost, and it was helping to reduce the cost and therefore she really wasn’t paying tax on it either. 11:44 It was going to put more money in everyone’s pockets. Cash is cash and we want to keep as much as we can. um and pay as little amount of taxes as possible, especially when you’ve worked out your whole life to accumulate this and you don’t want to just be giving it away. All right. So if you want to join the show you can 615 737 9986 615 737 9986 is the phone number here i’m an enrolled agent licensed with the internal revenue service to do taxes and revenue I do not work for the IRS. 12:17 I work for you, the people, and helpfully give you the guidance you need to represent You in front of the IRS. We’re gonna take our first break. We’ll be right back with the Dr. Friday show. Alrighty, we are back here live in studio working on on our taxes, trying to figure out what the best way to do things is going to be for all of us. 12:42 And remember some things that are best for one thing might not be very good for another person. And so make sure that you’re getting some good solid tax advice on your particular situation because penalties and interest can be a bit expensive and you don’t want to be paying them If you don’t have to. Let’s talk a little bit about the Trump uh bank accounts. 13:04 Because I can’t say uh yesterday was probably the first day where I had a number of people that were starting to um oh an I shouldn’t say bank account investment for the kids account um I think they’re just calling them the Trump investment account for kids is what I think they’re referring to about. But um it’s basically just the jump start for that generation. It’s really important. I think anyone that has, and keep in mind, you as a grandparent may want to consider um having the form filled out, you can also go right to the IRS. 13:40 I think it’s called Trump account and you can file the 4547. So again, the 4547 is gonna basically want the custodial parent or grandparent to complete this so you can set up an account where you can actually put and if the child was born in the year of 2025 There is some additional benefits for those children. You get up to another $1,000 in summer, if it depending, I know. 14:09 uh Microsoft and and a couple are actually adding to these funds. But if the child was born in 2025 or any child born from 25 to 28 will get an additional thousand. But after that you have um a $5,000 per year contribution. And so a lot of times, I’ll be honest, as an aunt to what, 18 or 16 um nieces and nephews and probably another six or seven great nieces and nephew. 14:37 We, you know, a lot of times we’ll either buy savings bonds, we’ll we’ll spoil them rotten. Maybe one of the better things because this whole pop idea is to give them this investment. Um, and there was usually nothing there. You had a 529 was the probably the closest to something like this, but um it’s an investment account for a child that’s not working, right? 14:57 So once you start working, you can do IRAs. Which is sort of like what this is. But the nice thing about this is, at least in the example I’m going to give you, is I know someone that’s divorced It’s been pretty bad the whole time. And so there’s no communication. And last thing they want from each other is for them to have any benefit from each other. 15:21 But The child is what we’re talking about. So this account is set up. You file a 4547, you put them in there, and then grandma or grandpa or aunts and uncles Um, or the children themselves, if they get money from other ways, can contribute up to $5,000 into this account and it will grow until the age of 18. At that time, this account goes into that child’s name. 15:44 They could use it for education, they can use it to buy their first home, they can buy it for trade, so they can use it for trade school because not everybody is designed to go to college. Um, you know, it’s just really easy. Qualified name, US citizen, social security number. That’s it. And you can set it up. 16:02 Um we were, I was talking to someone yesterday and they have six grandchildren, two in which they are raising. because unfortunately um one of their child children passed away so they’re raising the grandchildren and then they have four others and so they wanted to make sure these were established so grandma and grandpa can contribute money to these accounts And then that way when these kids get older, and maybe grandma and grandpa may not be here, some of them were two and three years old, who knows? 16:28 Then they have these accounts and they can Use them for their education, for their um for their first-time home buyers. You know, this is a way of giving that generation some amazing step-ups that some of us may not have been fortunate enough to have. That’s the purpose in it, right? Is to be able to give this next generation $5,000. 16:48 And if it’s got 10 years, this child will have $50,000 plus the growth in this account. Um and maybe more if they’re if it starts when they’re just born, right? Because you have 18 years and you, you know, and it doesn’t always have to be the same person, right? It can be I put in a thousand My brother puts in a thousand. 17:06 The grandparents from the other side put in a thousand. It’s not like everyone has to, but if you could do that, just a maze imagine what those children could do with that money. All right, we got Jeff from Manchester and see if I can help him. Hey, Jeff. Hey, how are you? I am awesome. 17:22 How about yourself? I’m doing all right today. Um, I have a question. Uh my father is ninety-two years old and just sold his house to move into an assisted living. And the sales price was approximately a million dollars. Okay. And we’re curious as to what we need to do to navigate capital gains taxes. 17:46 Great question. So what you and hopefully dad is still able to help a little bit, but we need to know how much did they buy that property for and then if they’ve owned it for the last forty years, let’s say, because that’s what I had one recently. They had basically built it and lived in there. But they had re they they had done some improvement. Improvements on it over the years, major improvements, adding things, things like that. 18:09 I don’t, I mean, again, at 92, I’m not too sure if Dad has all of that documentation, but to the best of our ability, we’ll need to know when he purchased it. We can use if we have to probably um tax assessments, but ideally if you could find the original form, did he build it or did he buy it? Do you know? Um he bought the piece of property and then he built a house on it in the fifties and then I believe he built an addition on to it in the seventies. 18:41 Okay. So and was he married or is he married? Uh he was married uh but she’s since passed away. Well, was she on the title at the time that they built? Was this his spouse and I mean his spouse he said he was married, but were they both in this house as joint tenants? Do you know? 19:04 ‘Cause back in the fifties and forties things were a little wonky for what you know, I mean just how things were put in names. And they divorced and she’s passed away. Uh, he remarried and she is uh passed away. So he’s outlived them both, but Poor guy. Um so the reason I’m asking this is because if they were if they were I mean, unfortunately with divorce, there wouldn’t have been a step up in basis. 19:39 He basically either brought her out of the house or they she agreed uh they made their own arrangements, right? Whatever it didn’t affect the basis of the house If the second wife moved in and she lived there until sh and she became um and they and they jointly held the property and this is where it gets a little, I don’t know, and we may have to get a little deeper in than we can on the radio But um if she became part of the home as far as you know she was on the um title um and then she passed away, there would have been a step up in basis at the time of her passing, and that’s what I’m looking for. 20:12 because obviously if she passed away in the 80s versus the house in the 50s, we might have had a better basis for pat half of the home. But I don’t know if that’s gonna apply or not. I uh a question about that. Uh the house was on approximately an acre and sometime in the nineties, I believe. He bought an adjacent acre and a half or two acres to increase the size of the property. 20:42 Would purchasing and joining the two pieces of land would that cons would that make the step up in basis? Because it’s less than five eight well it won’t get a step up in basis, but it would add to his base Because he went and spent another twenty-five thousand, fifty thousand. I don’t know what whatever it costs for that acre and a half, two acres. Now that would be added to his homestead or his home property. 21:05 So it it it would increase the basis because when you when he sold them assuming it included all let’s just say three acres at the time of the sale Okay. So we need, you know, you’ve got a couple different moving parts. Because basically what you’re gonna have in it you know is whatever we can justify he put into the house plus at this moment $250,000 that he gets as an exclusion. 21:28 The rest of it, whatever that number plus 250,000, anything above that number is going to be capital gains. So it’s important to try to do our best to come up with all the legitimate basis we can. Or step up in basis if the wife passed away and you know she was part of the home. Okay. So my next question uh to that is Uh he lives in South Carolina, so I assume I need to find a CPA located in South Carolina. 21:59 Is the what is the I mean we yeah, I mean we can do we do all states, but I would say it may be beneficial. Um they may know Um as we know here in Tennessee, obviously living here thirty years, if you can find someone, they may know because there’s a state tax in South Carolina as well. So not only capital gains to the Fed, but also capital gains to the state. 22:19 So yes, we need to, we you probably need to have someone that has some um experience in dealing with real estate, if you can. Okay. Uh any suggestions on how to go about finding that person? Do you guys have an estate uh does di since he lives there, does he have any kind of attorney that he’s been dealing with for his trust or will Uh I don’t believe so. Which it’s probably something else that needs to be good put in place, huh? 22:48 Yeah. I’m thinking it a lot of times we work hand in hand Like here I often work with attorneys. So as I say, if you can find an attorney, often they’ll work in hand in hand because he’s gonna need um like well he should have a goodwill, obviously, if nothing else, or a trust, um, but something and And then he needs the power of attorneys for, you know, medical. He may have all those, but it might not hurt to have um an update done at this point since he’s changing ownership of the home, moving into a facility. 23:16 Um might not hurt to just get all of that, you know, make sure. And then, you know, at 92, you know, we hope and pray he has a nice long life, but the fact is he’s towards the end of it at this point. 23:38 everything is nice and organized because I’m sure he would like that. Um and then having that attorney in state because you’re talking to me here, so I’m assuming you’re a Tennessean And not that it’s a far drive, but we do have a state and uh federal situation there that we don’t have to deal with here. I understand. Yes, and I am a Tennessee resident, so Okay But yeah, so if you if you need help, you can always um text my office or call my office and I will give you if nothing else I can give you a few places to start and then they might be able to lead you to someone you feel comfortable with. 24:10 All right. Well thank you so much for your help. Yeah. Thank you. All right, guys, we’re going to take another break here. When we get back, you can join us 615-737-998. We’ll be right back with the Dr. Friday show. Alrighty, we are back here live in studio. And you can join us online or Live here in studio at 615-737-9986. 24:38 We’re gonna hit Nelson in Nashville. Hey Nelson, what can I do for you, sweetheart? Hey Dr. Friday, how you doing? I am doing good. Hopefully you are also. I wanted to know some standard deductions amounts. I just want to know, you know, h what the final status is. 24:55 How much is, you know, for each of each uh threshold uh for uh uh this is for people over sixty five years old. Uh what is the standard industry for a filing marriage So if you’re finally married, um you basically have the standard deduction is 31. 5 and then you get an additional um 1600. 25:17 I’m looking it up really quick. I’m cheating because I don’t have that memorized myself. And then on top of that, um you’re gonna get another 12 because I know it’s 43. 5 So it’s yeah, so it’s 435 is what you get if you’re over the age of 65, I believe. leave that’s what it comes out to here we go married 435 would be the total for both spouses basis 31 plus you get thirty two hundred dollars extra Um, so that makes it 34-7 plus the twelfth. 25:55 So your standard deduction is thirty-four-seven. What about filing single I mean separate in your married? Married filing separately, it uh it’s basically just taking that number in half. They give you sixteen hundred plus your standard deduction of what fifteen So it’s just basically taking that 34-7 and dividing in half. They don’t give you any additional benefit from married filing separately. 26:19 I think it’s about 17350. would be the standard plus if you’re over 65 you’ll get that additional 6,000 if the income now marry finally separately you cannot get the 6000 So that new one that came in, it only allows for married filing jointly, single or head of household. Married filing separately, it’s disallowed. So that’d be something like 19 something or what? Uh 17,350 is what you would get married filing separately. 26:46 Okay, and the last one is a single flower. If you’re just single and you’re filing separately, I mean just single without the other is um twenty-one seven fifty. It’s 21. Okay. Uh did they ever do they still do that uh deduction extra deduction if you’re legally blind? Um if you’re over 65, you don’t get the extra deduction for being legally blind. 27:12 I don’t believe leave but let me just double check that i don’t do a lot of um yeah i wanted it used to be a fifteen hundred dollar used to be um like an extra fifteen hundred dollars um in 2025 legally vacuum total standard okay so a single person over the age of 65 that is legally blind would get an additional two thousand dollars so that would be 19750 This is what happens when you keep your computers. So they do give me another two thousand dollars. 27:41 Yes, sir. You good question. Well, I really appreciate it. And I’ll and all you have to do is add the uh six thousand to that nineteen, right Right, if you’re single, legally single, yes, sir. Oh, okay. All right. Well I appreciate it. No problem. Thank you for asking Appreciate that. 27:59 Okay. All right, thanks. Bye-bye. All right, let’s hit Rebecca in Cottontown. Hey Rebecca. Hello. Thank you for taking my call. Mm-hmm. I have a job that’s funded by block grant funding. And the people that write the check said don’t claim it on my income tax ’cause it’s not taxable Well, I claimed it one year. 28:20 I don’t have to pay federal taxes on it, but I had to pay social security taxes on it Okay, that’s an unusual. So a block grant is basically a federally grant awarded to state or federal government broadly defined as functions, health care, so social services are Community, highly flexible, lacking of automatic funding. I can’t say I’ve ever really heard of a block grant, but what you’re saying is it’s not earned income, therefore they’re not taxing you as far as the ordinary income tax, but it still qualifies as earnings because Social Security and Medicare has to be paid. 28:59 Right. Huh. Reciprocant can tailor the program to look around the And you just work for them though. You’re an employee of this company that has the grant. Well, actually they write the checks, but it’s like I’m an individual and they fund the people that I work for. better light and but again you’re you’re actually work I mean I I’m a little just making sure I don’t want to lead you in the wrong but you’re actually working for a company that has received this grant Um, but you’re you’re not an owner of that company. 29:34 You are actually an employee or are they just giving you money every month? I mean are they 1099 in you? Is there any paper? 1099 at all. Nothing You don’t hit nothing except you check with a stub that says which client you work for. Okay. Well, I’m gonna be quite honest. 29:54 I have never heard and I’m gonna be researching that Because to me, even if um my company receives the grant, and from what I’m reading here, it’s basically designed for love uh smaller regional government bodies to help aid in social services of different types, right? It’s supposed to help with care, social health care, children care, et cetera. But if you’re the employee, so let’s say I have a daycare and I get the grant, my employees are still going to be required to have all the regular Because what if they fire you? 30:26 You should be qualified for unemployment. You know, I mean, I’m assuming this is a ordinary job. So I think they’re I think they’re misleading you. I will be honest with you. Now if somebody’s listening to this and is totally hooked into this, I don’t want to mislead this lady, but I’m I mean I can understand if a grant comes into my companies, I have people that have gotten grants to buy or to recycle something and that is not taxable because the money is used for for a specific purpose, but I’ve never heard of an employee that works for a company that receives a grant not to be treated just as any other employee. 31:01 I know if it’s a nonprofit, if they have less than five employees, they don’t have have to pay unemployments. There’s certain things that work for nonprofit. Are you working for a nonprofit? Yes, ma’am. Okay. It is a it is a legitimate 501c or version of a 501c? Yes, ma’am. 31:16 Okay. I still, I mean, we do a lot of nonprofits and I still think that you are not a uh officer of this nonprofit, you are an employee. I think they’re leading you down the wrong path. But you need to keep if you don’t mind, Rebecca, keep listening. I’m gonna put my number out in just a second, my regular number Um, and we can follow up on that and I can get a little bit more. 31:39 I don’t want to put any more on you because this is just the basic call-in show, but um If if you have to pay Social Security and Medicare, you have to pay ordinary income. That I know. But let me um let me see if I can jump to Pam that’s on the line and and I’m gonna get my phone number out and we can talk more off the air, okay? 31:58 Okay, thank you. Okay, thanks. Let’s hit Pam from Manchester real quick. Hi, Pam. Do you have any I have I have a really s maybe strange question. Uh in 2014 I got a reverse mortgage on my house. Uh I moved in uh 2011 and I just sold it in 2025. 32:20 And I have uh let’s see, mortgage insurance well anyway, I I paid off the the the uh reverse mortgage And I uh I I’m on Social Security, I’m seventy-three years old and I don’t know uh what are my options as far as filing income tax And um I know I I don’t have enough to do the uh capital gains because it’s under two fifty. 32:47 But uh uh I bought the house for seventy three thousand and I sold it for two ten. Okay, yeah. So even if I I mean so yeah, your your your math is correct, Pam. So obviously you sold it for less, but you do need to report that as a f they don’t always know it’s your home that you sold. They may get a ten ninety-nine S and they may not the government should get representation that the home was sold. 33:11 So there is a primary home form that you need to put on your tax return it will not be it’s all gonna be zeros I suggest you doing it you probably don’t have to um no capital gains and you’re living off social security no required filing uh for Social Security if that’s all you have. And you could you could probably wait and see if the government comes back and asks you or they send you one of those love letters says now we’re charging you capital gains because you didn’t report it. 33:40 But I don’t want to put that pressure. It may never happen, to be honest with you. But you’re under the requirements as far as you’ll pay zero capital gains on the house as well as you know, obviously with zero capital gains nothing else is going to be made taxable like your social security or anything. Right. But is any of the interest that I paid on the reverse mortgage uh recoupable? 34:01 Well since you don’t really have any income There’s no reason to worry about itemizing. I mean all you could do is itemize to reduce taxes due. You don’t have any taxes due, therefore the itemizing would be of no use. use. Okay, so just uh just do the standard uh ten forty or whatever and uh make sure that I fill out the sales sale of a house form. 34:24 else it’s going to be all zeros there’s no advantage to having an additional loss because there’s no there’s nothing taxable Right, because my re my retirement unfortunately was from uh Kmart and it’s less than two hundred dollars a year. Oh wow. Okay. Yeah, so again that keeps you and then after this you won’t be filing, at least for a very long time Well, you know, I I do that just to to because uh because we’ve brainwashed you for the last sixty years. 34:59 I’m sorry, what? I said it’s because we’ve taught you for the last fifty years of your life, when you were working and everything, you’ve always filed taxes. Oh yeah. Yeah. But we don’t have to be a little bit more than that. Yeah. It’s up to you. It’s always something you can fill out. 35:16 It’s not a problem with you doing. I’m just saying the the mandate is there that you are not required if you have less than 15,000 as a single person and you’re on Social Security, you’re not going to be filing a tax return. You certainly can. No one stops you, but I’m just saying that the pressure is off. You don’t have to Well uh with the social security I brought in like forty thousand, but I know I only have to pay taxes on half of that. 35:39 And then that makes sense. Right. Uh Social Security is is full tax free unless you earn another fifteen thousand above the social security. But what you’re telling me is you’re pretty much living off your social security with the little retirement you’re getting from when you worked, but it was only like two or three hundred dollars a year. 36:00 Right. Oh, it’s not even that much. Okay, so you are not required because the Social Security only becomes taxable when you You have other earnings of like fifteen thousand. Okay. So then no file no filing unless I really want to and to go ahead and and file the paperwork for that I sold the house. 36:20 You got it. Perfect. Perfect. Well, all right. Thank you so very much. I relinked my mind. Thanks. All right, we’re going to take our last break. We’ll be right back with the Dr. Friday show. Alrighty, we are back here live in studio. Again, you can join the show. 36:40 We got a few more minutes. 615-737 9986-615-737-9986, taking your calls, talking about my favorite subject at least, taxes. Um, I did want to bring back up on the block grant. I was texting with someone because again, I’m not gonna say I’m always an expert on certain nonprofits. I don’t get as much into nonprofits as businesses for profits. 37:06 But it was specifically told to me that if you must pay income tax on any wages you receive from any nonprofit, even if that nonprofit is funded by a block. grant while the nonprofit itself is tax-free, he says, but the employees are still subjected. And that employer that you’re working for, that is the nonprofit, should be providing you a usual form called a W-2. 37:31 Nonprofits are required to file them just as any other organization. The source of the funding does not exempt employees. from paying any kind of personal tax. So not only should you be paying Social Security and Medicare, you should also be paying ordinary income tax on that. But if you are listening, uh, I think it’s Rebecca, you can also call me at 615-367-0819. 37:55 For anyone listening, that’s my direct line, 615-08 367-0819. Um, and you can give me a call on Monday and if you need more information on what you should be doing, but they should be giving you a W-2 and or a 1099, not knowing your connection exactly, but either way, your income should not change from uh for-profit or not for profit. The block grant has no bearing on you as the employee or subcontractor. 38:25 All right, so that all being said, it’s getting down to the final part. So we just want to make sure that it is tax season. It’s time for you to think about preparing your taxes. But not only preparing this year, thinking about next year. This is the time. I mean, I know we often have a large number of people that are um, you know making changes in life, right? 38:48 We have things that we we want to do. Conversions one thing, but maybe you’re thinking about retiring. Maybe you’re thinking about selling your house and downsizing or moving to another state All these decisions are pretty big, and most of them, I hate to tell you, have a tax impact. And so making that impact is important to being able to understand how to um follow through with that to know am I gonna owe money? 39:15 Is it a good idea to owe money? Is it a good idea to do something with it? Or, you know Just so you’re prepared. No one likes to file their taxes and know they owe $83,000 like someone I just finished. All right, so let’s hit the phone line real quick. 39:28 Moose in uh Greensbrier Briar. Excuse me, Greensbrier. Hey Moose Yes ma’am, how do you file like if you’re doing side work, how do you uh how do you file that in other words if I wrote down five thousand dollars in income, am I am I gonna have to provide You know, or is that just gonna red flag a audit? Well no, it won’t I mean a lot of people do side work. 39:53 You’re gonna file that on a schedule C like cat Um, and it’s basically designed for self-employment. You’re gonna tell them, hey, I was doing landscape, I did handyman work, I whatever, I don’t know what you do. Um, and then you’re gonna fill in your income and or expenses um that you might have had to do whatever you’re doing for the side work and then pay taxes on it as you have. 40:16 Um whatever you know, whatever the profit is after your ex legitimate expenses you might have for that five thousand. But no, I mean We do a ton of Schedule C’s for people that do what I might say side work where they work a regular W-2 job, but yet on the weekends or things, they do a side electrical, they do a side, you know, handyman work, whatever. 40:38 Okay, schedule C is in CAT. Yep, you got it, sir. Thank you. Okay, thank you. All right, so again, that’s a great question. Because if you’re filing your taxes, you kind of want to make sure you are reporting all of your income. And I want to clarify one thing because a lot of times people will come in and they give you all their 1099s and they say, here’s all my income. 40:59 And I’m always asking them because the likeliness is that you don’t get all of your income on 1099. Some people are just not going to 1099. You maybe made less than $79 $600. Yes, you are required as the person receiving the money to report that’s uh $500 or $400. They may not be required to 1099 you because anything under $600, we don’t have to Same thing when I’ve had someone just recently, we did all their taxes, and then she came back and said, oh wait, I’ve got another 1099. 41:30 Well, you’re supposed to be giving your tax person every dollar you’ve earned If you get a 1099 or not. And it’s pretty easy because it’s every dollar that either went into your bank or all the cash that you have used throughout the year. You as a business owner, that is your responsibility to track all the income you are making and on the other side track the expenses that go into those just because someone gave you cash doesn’t mean that you’re entitled to not report it Um the IRS is kind of funny that way. 42:01 They, you know, and keep in mind, the IRS is an enforcement agency. They don’t write tax law. They are not The bad guys, in essence, no one likes enforcement, but the fact is their job is to collect so that we can have all the benefits we have here in the United States. You may not like the way they spend the money in Congress and the Senate, but the IRS is not spending the money. 42:24 They’re collecting it, putting it into the general fund. General fund is then spent however they spend it. And yes, I’m with you. It’s not spent very well Um, but I had a a gentleman come in my office and he’s like, I don’t want to pay any taxes. I don’t want to have to do this. 42:38 This taxes are unfair. We shouldn’t Well, I think probably every single person listening would say taxes are always high, taxes are not always fair, it’s not a good thing to always have to pay taxes. Some of us Um, you know, some people I I have as clients pay more in taxes than people make in a year. It’s not something that you have a choice, though. 42:58 You’re a U. S. citizen. Our obligation is to pay our taxes Also, our obligation is to take every legitimate tax deduction we’re entitled to. But you can’t take that if you’re not tracking it So again, you know, if you ever get audited, they’re going to do a means test, meaning your lifestyle, if it’s more than what you’re showing on your tax return. 43:19 In some cases, I see people come in and they say they’ve only made $10 or $12,000. They’re raising a child, but yet they’ve got a car payment that’s $600 a month and a rental, they pay rent of $14 or $15. There’s no way you can be living off that if you don’t have both. Just saying, not possible. All right, we’re gonna hit Alley really quick in Manchester because we only have about three minutes left. 43:41 Yes I sold a place in in McGallan, Texas, and uh I took a cash offer And I only received around one hundred sixty five thousand for that, but it was appraised for way over two hundred plus thousand. But I took it because it was a cash offer and to avoid expenses like property taxes and so on. And now with the IRS they say I’m to pay a capital gains tax. 44:09 And I wanted to ask you, uh I’m age seventy seven. Uh do you think I should pay the capital gains tax? Yeah, well you would it just depends. How much did you buy this property for? Uh I bought it for 130,000 in 2021. Uh-huh. It was at a rental. 44:41 other people that could just rent it to all ages. Okay. But w while you owned it, was it a rental for you? Did you have it on your tax return as a rental Well, yeah, I did rent it out two different times and but but not for long because well, one guy moved out early and the second lady moved out because she didn’t want to pay an increase in rent when all the costs went up. 45:06 Yeah. Well, right now just based on what you said, you paid 130, you sold it for 165. If there was closing cost fees, you can back that out. But you do have about thirty thousand plus recapture of depreciation. So yes, ma’am, age has no bearing on it. You do have, based on what you’ve given me, some capital gains issues. 45:24 Now if you don’t have have very much income and um you know this is all you have theoretically there is a zero percent capital gains rate but I don’t do your taxes so you might want to just but yes ma’am I’m gonna have to take a quick break here because the show’s gonna end. But um But yes, you will need to to talk to someone, but you may have taxes due. 45:43 Sorry. Yeah, I’m gonna get back in touch with you. Thank you. Thank you so much. Good night. Thank you. All right. We’re gonna take uh this the end of the show so I need to make sure you guys have my contact information 615-3670819 that you can call on Monday 6153 367-0819. 46:02 You can also email Friday at drfriday. com, Friday at drfriday. com, or just check us out on the web. You can also send questions through the website drfriday. com again drfriday. com again it’s tax season I know there’s a lot of crazy things going around do not fall for some of the phone calls there is I meant to hit on some of the scams the IRS says is happening. 46:28 If you’re getting rejections on your uh tax returns and things, you may have to call the IRS. But keep in mind that we’re here. So hope you copy later, as we always say and also Joy.

Dr. Friday Radio Show – February 7, 2026

Dr. Friday Burke — Tue, 10 Feb 2026 13:20:15 +0000

Tax season questions came in fast this week, and Dr. Friday opened by correcting confusion around overtime and tip-related tax treatment. She walked through RMD caller scenarios, including what to do after a late distribution and when extra documentation may be needed. The show also covered audit-ready recordkeeping, mileage versus vehicle write-offs, and practical questions on gifts and interest income.

Summary Points

Dr. Friday opened with overtime and tip confusion, stressing that not everyone qualifies and itemizing is not required for this treatment.
A caller with two IRA accounts asked about a missed RMD amount; Dr. Friday discussed filing with added explanation when a distribution was corrected after year-end.
For standard RMDs, she said reporting is generally through Form 1099-R, and she also highlighted QCD options for eligible charitable giving from retirement funds.
She emphasized compliance first: file missing returns, verify all 1099s are included, and confirm IRS payments actually clear your bank.
Business owners were reminded to keep receipts and mileage logs, avoid guessing deductions, and separate commuting miles from true business miles.
Caller Q&A covered airline base-travel deductions, construction-truck mileage from a qualifying home office/shop, gifting to family, and savings-interest filing questions.

Episode FAQ

Q: Do I need special paperwork for a normal RMD withdrawal?A: Not usually; the episode explains that standard RMDs are reported with Form 1099-R, with extra documentation mainly discussed for late corrections.

Q: Are miles from home to work deductible if I use a work vehicle?A: The episode distinguishes commuting from business travel; miles can be deductible from a qualifying business location (like a valid home office/shop) to clients.

Q: If I give a child or grandchild a few thousand dollars, does it go on their tax return?A: In the call, Dr. Friday said that amount was under gifting thresholds and did not need to be reported as taxable income by the recipient.

Transcript

Announcer 00:00 For tax services, planning, business, and IRS negotiation, visit drfriday.com. No, no, no. She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. She’s the house. 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 00:35 So I guess I want to start the show with talking a little bit about um some miscommunication that I see keep coming through emails and um I’m going to assume that it’s out there on the internet as well about who can claim and who cannot claim over time and tips. Now keep in mind there are some rules. It’s not like everybody’s going to get it and everybody. Everyone’s not going to get it. You do not have to itemize, which is one of the misconceptions that is not required. But if you are in a managemental position And you have the um federal sta… uh Department of Labor statistics, sorry, um, and there’s a bunch of rules that have to be applied, then that will be how and if you can get this. So if you’re a manager and you’re paid overtime, but your overtime is based on something other than the typical 40 hours, you may be at risk. If you are um um a manager that basically you’re not really a manager, they just give you that title, but you’re really just work clock in, clock out, you know, you probably will be able to qualify. But you do need to make sure because I know everyone’s just going to click the button saying they qualify. So let’s go ahead and hit the phones. It looks like we have someone on line one. Go ahead and bring them in. Sorry, I can’t read my screen right now. Hey, this is Dr. Friday. Can I help? Yeah, I have an IRA question. Okay, go for it, sweetie. Caller 02:01 Okay, I had I had two uh last year and I combined them and they were in two different places. Well, it turns out that where I put them in the one place, uh, they didn’t add that amount of money in for my required minimum at the end of the year ’cause they said They only send that notice out in the beginning of the year and I put that money in in March. So in realizing it in January, I did go and take the rest of what I’ve my required out. But I’m wondering if there’s some way I can uh or I have to let the IRS know that I took it out for the prior year in January Dr. Friday 02:43 So you did not take your RN, let me make sure I’m recapping really quick. You did not take your RMD or your required minimum distribution in the year Let’s just say in 2025, but you took it out in January of twenty-six or maybe different years, but the same concept? Caller 03:00 Well, I took part of it out in the first year i in in December and the m remainder what w what I w had to take out for that extra money I took in January. Dr. Friday 03:10 So it was and can I ask how old you are Caller 03:14 76. Dr. Friday 03:16 Okay. Uh I wasn’t sure if it was the first year in which you had to take your required minimum distribution. There’s a little wiggle room there. So when you do file, there is an eighty-six zero six that would require you to um document. that you um that there was a a um a miscommunication because I would have thought that your fiduci person would have giving you that information properly. Because your RMD is always based on the prior year balance, right? I mean, just for people that are listening, not so much for yours. So Whatever you have to take in a requirement of a distribution for 2026 would be based on your December 31st balance in your 401k IRA, whatever. And so then that’s what you have the whole year to take it out on Sounds like somewhere they dropped it, but yes, there is a form and how we they they they didn’t add it in. Caller 04:04 They did not add that amount that I uh they added to the IRA. They didn’t include it in my required minimum Dr. Friday 04:11 Yeah, so they they did not take the add in and add it back in, but you put it in that same year, in the year in which the prior year, I guess is what I’m saying. Caller 04:21 I took what I I I took I took part of it out in December, what they already had and the additional that I added in, I I wound up taking it out on January twenty ninth Dr. Friday 04:33 But when you put the additional in, when did the additional get added in? What what year? Last year or this year? In March of the prior year, correct? In the year that we’re talking about. Okay. Okay. Yeah. Yeah. Sorry, I know we’re going back and forth and poor people. Um you’re you’re so if you put it in March of twenty five, that doesn’t go into play until twenty twenty six RMD So 2024, whatever you had in there as of December 24, December 31st, 2024, is what you have to do for RMDs. Anything that got added in 25 will be part of your 2026 RMDs, which they do as of 1231-2025. Caller 05:15 Except that I always took it out of the other place and I f and I d it didn’t dawn on me that I that they didn’t add it in. I I it was all I always took two two different Right. Dr. Friday 05:31 Yeah. And so when the one company which is only responding to their percentage because that’s all they know. And the other company was and you were, I got it. So you were taking care, I mean you were basically managing both of them, but somehow one of them did not get added in Right. Okay. Well there it’s not a huge deal. I would just suggest writing a letter when you file your taxes about the innocent mistake. IRS is not so I have not found them to be extremely aggressive about this. They did reduce the penalty for failure to take it out, but you took it out as soon as you found out that the mistake had been made. It’s not like it’s a year later. Um so um I think you’ll find I file that form that you suggested 860606 and then yes you can also attach uh PDF if your system allows if you’re doing it online or if you’re doing paper filing, attach a letter explaining the situation, how it was just a mistake. As soon as you found out you resolved it and the money has been taken out. Caller 06:27 Okay, thank you very much. Dr. Friday 06:28 No problem. Thank you. Thank you. All right. Sorry guys. Like a little bit uh more intense than probably some of you, but that’s the problem with some of these. Um not not so much that, but it just it is When we’re dealing with taxes, everyone’s situation is slightly different. And uh what we were talking about for some of you that maybe just caught part of it was is that this listener has required minimum distribution but she also has two accounts. So each fiduciary responsibility is is independent for each one. So Well, this is one of the reasons that I personally I know some people I’m not a financial planner, so don’t come back at me. But I’m just saying as we get older, sometimes it’s nicer to have everything in one place. So that way these kind of things don’t happen as often. I mean, sounds like she’s done a great job up until now. So this is maybe just more of a simple mistake, but it is for all of us. It’s always harder and harder to track things when they’re in multiple locations. So not a bad idea to basically move them into one place where even you have two different types of accounts, move them in so that you have the ability to um you know, go for it and and see what you have. Um so anyways, if you want to join the show, 615-737-9986-615-737 379986. A lot of confusion on tips and overtime. I have found that for the people that it applies to, they are definitely getting better refunds. Um the confusion really still coming out is who’s really going to qualify, who’s not. Um, you know, a lot of people work overtime, but sometimes their overtime isn’t going to be considered qualified and remember if you’ve got double time triple time that doesn’t add more to you it’s only on um double it’s only on traditional overtime So again, making sure that you have that information in the right place, doing the things the right way, that is what we want to be able to do. And We’ll be able to, you know, move things forward. So if you’re working on your taxes this weekend, which you can be because obviously tax season is fully open. Make sure, because I’ve done a couple taxes this last week and a couple people sent me notices saying, oh wait, we did your taxes, but we just got another 1099 in the mail Or we just got another uh interest statement in the mail. So double check, triple check before you send the taxes because that’s what you don’t want to do is send off taxes and then have to amend them. Amending them can usually lead to more, but you don’t want to not file them correctly. So, you know, I mean obviously you want to amend versus that. And then the IRS will come back and give you some sweet little notification saying that we have changed your tax returns because And and also payments. I have one case where we have a gentleman, first we were dealing with 2024, now they’ve come back on 2023, and we’re still, you know You need to make sure if you owe money, you need to make sure that money has cleared your bank. Even if you’ve given the accountant the approval to auto-draft or anything else You need to be tracking. If you don’t see that money coming out of your bank, you need to stay on top of it. You don’t want the two years later the IRS saying you owe a ton more money because the money never came out. It is your responsibility to make sure that money comes out. All right, let’s hit William and Smyrna. Let’s see what we can do for William. Hey Will, what do you got going? Caller 10:02 Uh well uh uh I got a question about the R and D’ Uh I take uh some out every year uh for for that. But uh my question is, do you have to designate it on paperwork or some kind of special paper or you just take it out Dr. Friday 10:20 Um I mean from no I mean for the purpose of an a regular required minimum distribution or RMD you you’re gonna take it out you’re gonna receive a form called a 1099R You’re going to report it as ordinary income, assuming that you’ve, you know, traditional and then pay tax on it. It’s really that simple There’s nothing you have to designate. The only reason in her case we were designating more of it was because she took it out late. Caller 10:47 Oh okay. So I believe that pretty well answers my question. So as long as I take enough out each year to cover the R and D That’s all I have to do really. Dr. Friday 10:57 Right. Yeah, that’s it. As long as you’re taking out enough or more than what’s required, then there’s nothing really you have to worry about. Caller 11:03 That that takes care of my question. I really appreciate you. Thanks a whole lot. Dr. Friday 11:08 Thanks, William. And for any of those that are receiving RMDs or anything like that, you can hang up on William. Then they um you can also do what’s called a QCD, a qualified charitable deduction. And in that case, what you can do is you can give that money directly to a charity, and then that money is not taxed at all. You do have to put it through the system. There is a process. But it is a way of taking money and instead of taking it from your bank account and giving it to the charity, you take it directly from your required minimum distribution and send it to the charity. And now you don’t have to worry about itemizing. or any of that, you can take it directly off and it gives you a really, really good tax deduction. Now you do have to be 70 and a half and older to qualify for that and you do need to be having it through a traditional IRA 401k. It cannot be an inherited IRA or anything. It has to be your But um if you can meet those criteria, I mean most people or many people take money right from their checking account or cash out of their bank and give it to their church or their their uh charities and this would be a way of having them write the check from the fiduciary side and then you can reduce your taxes and You know, right now it’s hard for people to really itemize unless you’re giving, you know, $15,000, $20,000 because if you don’t have a mortgage, it’s very difficult to meet Itemization. All right, we’re going to take our first break. You can join the show at 615-737986-615 737-9986. We’ll be right back with the Doctor Friday show. Alrighty, we are back here live in studio talking about taxes. It is the season, guys. So the most important thing is making sure you file. If you haven’t filed in a number of years, you need to have a conversation because it’s now’s the time. I mean, there is some really good fresh start programs out there But most importantly, you have to be in compliance. You can hear all those ads you want, they’ll say they’ll settle for 15 cents on the dollar or 10 cents on the dollar, but none of that’s going to apply to someone that hasn’t filed First thing you need to file and then you need to find out what the IRS is actually showing on you. I had a case recently where they had taken someone’s ID, someone had filed a totally fraudulent you know, tax return trying to get two hundred thousand dollars or something worth of refunds um on this person that didn’t have that kind of situation Um but the government was trying to collect forty-five thousand dollars on them, which had nothing to do with their normal taxes. I mean they usually owed maybe fifty 1,500 or less, right? So again, making sure what the IRS has is correct and also filing what is correct for you so that that way then you’re now dealing with your particular tax. If it is a fraudulent situation like this one, there is a form that needs to be filed. You need to notify the IRS. You need to show the proof behind it. In this case it was so easy, but in some cases maybe not. But especially if if you’re self-employed and someone tries to fraudulently file a tax re I mean these returns were absolutely ridiculous. I mean, if you ever look at some of the the fraudulent returns coming through, I am totally surprised the IRS allows any of them to go through the system. system but you know it is what it is um and so you are the responsible person to let the know let the IRS know that you need to correct the file file the actual crop proper tax return Do it through the proper system and then go from there and then either make payments or settle, or then you can hear about the offer and compromise, the fresh start program, et cetera, et cetera. None of that can be done if you’re not filing the taxes and if they’re not correct. I had one that came in and they gave us all their paperwork and then recently I got a notice saying that the IRS has changed their taxes I mean it was completely again, it wasn’t that our return wasn’t uh was a fraud in this case. The taxpayer had not told us about additional incomes that they had come in and then the IRS came back and corrected it So you’re not hiding when you don’t do that. And anytime when I see when someone says, well, um, I just got a couple more 1099s and so I need to correct my taxes, that’s a problem because 1099 should not be gearing. your income. Your income should be totally what you received. It shouldn’t make a difference if two years from now you got additional 1099s. Because those 1099s are only a gear to make sure that that person is claiming the same amount you’ve posted to them, but not shouldn’t be your total income. That’s it’s just that simple. You know, I mean, even if you only have one employer, it’s still you should know how much money that person gave you. That is one of the jobs, one of the positions we have as um self-employed people And then the other side is tracking all of our receipts so we have the best uh deductions we can have. You can’t just wing it. I mean, you know, you can’t just say, well, I think I did this much supplies and oh I’m sure I did at least that much in in advertising. It doesn’t work that way. You have to have the physical receipts, guys. That doesn’t mean that you have a bunch of stuff for Amazon and you call it all supplies IRS is going to want the physical inventory. If you went to Amazon, what did you buy? How they know you didn’t buy school supplies or personal supplies So it is your job to do that and making sure that you have everything you’re supposed to have. And nothing the IRS will basically just turn around And, you know, be honest with you, they’ll turn around and basically disallow all of your expenses. You know, they they have no reason to allow them all. It’s not their job to give them to you. So as an entrepreneur, as a self-employed person. Because we have the higher higher chance of being audit. A gentleman with a or a female with a W-2, you’re not going to have much, right? I mean it’s a W-2. There’s no tax deductions against W-2s. You may have some overtime or tips, again, that’s being reported from your employer. So if you’re going to go in there and put $25,000 and you only made 30 is not going to make any sense and you’ll be audited anyways. I feel very strongly that the tip one, especially because you can report cash tips, but If it’s not reported on your W-2 or through your 1099, at least through the 1099, to be quite honest, we pay all of our ta our taxes. on it. But if you write off all these expenses and then you say, well, this much was tips, and then you turn around and show it, the government’s going to probably audit because it’s going to be, how did you support yourself People have a tendency to reduce things down to very, you know, they don’t want to pay any more money than they have to. And I get that. But there is a reality. You have a car payment or you have a mortgage or you have rent You have food, you have clothes, you have medical, all these things come in play. The IRS has already got a lot of that information on you. So then when you go in and say, Well, I only made $2,000 a month based on your tax return. And most of that came through TIPS. So there you four, I didn’t really have any income. Now the IRS is going to sit back and say, wait a second, this person has always been showing this much money, but now they’re saying almost all that money came through tips. You know, and I get it. Your bartender, your waiter, I can see where some of that, but most people only get 20% tip. They don’t get you know, hundreds and thousands of dollars. Um, you know, in even even if you make a thousand dollars a weekend at your job, your your wages should be offset and that should already be in that number So I would just have to say be careful when you’re looking at all of that information. Be truthful because it is going to most likely be one of the highest audited areas. Tips, especially overtime. I think most people can justify. Keep in mind you’re only using the qualified portion. Do not put 100% of your overtime in that box. It specifically asks you on the tax return. Is this the qualified portion? If you say yes and it’s actually 100%, then you’re gonna see that you’re going to either get your taxes uh audited and they’re going to come back and ask you for the money that they that you’ve taken or they’re going to disallow your tax return because they’ve already figured out that that was a problem in the first place So, you know, again, your choice, but no one likes to be audited. No one likes to have these kind of things happen to us. So Really, really important for you to make sure that you’re putting the right information because most of us like to file our taxes, put them to bed, never have to look at them again. That’s the perfect world. You know, you never know if the IRS is gonna pick your number and it does happen, but I usually find that most of the time, most of the time Something different happened in the year in which they’re pulling. Unless you’re just a self-employed person. They see some consistencies in the way that the expenses are going. Um, you know, they see some consistencies in how the numbers are reported. Most people don’t make the same amount in sales, most people don’t have the same expenses every year in same categories. Um, you know, it just isn’t normal associated with inflation and things. Most of the time we are paying more money and therefore we’re actually billing more money in many of those cases. So if you’ve got questions on that, um make sure you can always call the show 615-737-9986-65 So when preparing your taxes, what’s the first thing? First thing, make sure we have all of our documents in front of us. Right. We have our W-2s. We have our 1099 SAs if you have a health savings account. You have your 1098 T or mortgage or your 1098 T for college if you’re in college. Um all the things, interest, dividends, stock portfolios. If you’re into crypto, your stock portfolio, because crypto is stock, right? So all of those forms have to be in front of you before you even start doing your taxes. And all of those forms are also being copied to the IRS So if you have a Coinbase or you have, you know, e-trade, whatever, all of those are going to go to them. So making sure you have all that, then sit down and start putting the information. If you’re not sure of the answer. I will say I know some of these software programs have assistance. Don’t be shy to ask. You can also ask us, but you know, in most cases, it’s it’s a pretty straightforward answer. You know, you may not like the answer because you might find that the answer is basically one of those deals where you’re like, hmm, you know what? If I say yes to this answer That’s fine. But if I say no, I get more money back. I can’t tell you how many times I’ve heard those words. I went ahead and checked this. I married, but my husband and I filed separately. So I went ahead and chose head of household because if I change married filing separately, I didn’t get the kind of refund I did when I was filing head of household. Well of course not. Head of household means you’re supporting that person that you’re claiming as your dependent solely by yourself. You’re not living in the same house as your husband or wife and then claiming that that person doesn’t really exist that you know that’s blatantly lying but also it’s not that confusing Head of household means that you are the only adult basically in that household supporting those other people you listed as your dependent. If you are married, married filing separately is your only option. And right now, if you file married filing separately and you do have tips and you do have overtime, you will not get those deductions. It doesn’t fly when you’re married finally separately because most of them have means testing and they don’t know how much money your spouse made. So they’re not giving it to you at all. So understanding that if you switch from married filing separately to head of household because you want to get all this money, it’s not going to fly in the big picture Sooner or later, I feel that people are going to be caught. I know there’s some people out there that have probably been doing it forever and has never been caught, but you know, karma’s karma, so we’ll find out because theoretically that is just Wrong. That’s my opinion. Head of household should be for the people that are truly single parents trying to raise kids or grandparents that are trying to raise their grandkids, you know, a single parent and a and children because That’s why we’re trying to level the playing field by giving them head of household. All right, we’re gonna take our second break. If you got a question, you can join the show. 615-737-9986. 615-737-9986. We’ll be right back. Alrighty, we are back here live in studio. If you want to join the show, you can 615-737 9986-615-737-9986. And we have Rob on the line. Let’s see if we can get Rob on the line. Thanks. Hey Rob. Caller 24:36 How are you? I got a question. Um you were talking about the deductions for being uh married, uh and filing head of household and all that. Yes. I have a problem. My wife is medically disabled. But she cannot get disability from the government because I make too much money. Dr. Friday 24:55 Right. Caller 24:56 How can I claim her if it won’t allow me to use her as a dependent or anything Just an exemption, but I still have to pay all her medical bills. Dr. Friday 25:06 Well, I mean theoretically I mean the only option you have is You claim her as your wife, so you would claim married and she would be your spouse, and then any medical expense would go on Schedule A that you might be able to meet itemizing with your income being higher, it may be very hard to actually get itemizing under the current tax code, but that’s the way it would work. Caller 25:27 Okay, so I I was just checking to see there’s another way around it. Dr. Friday 25:31 Yeah, there’s no easier way around it. I mean unfortunately either way, you know, um She doesn’t have any way of deducting it. You could gift it to her, but there’s no income to offset and your income’s too high to offset it. So it’s one of those catch twenty-two’s it doesn’t benefit you either way. Okay. All right. Well thanks so much. Thanks, mate. And there’s the true story of how it happens so often. Um and I have a a number of clients with that kind of situation. So Um it it’s not easy. I have a couple that are, you know, theoretically now, you know, he could file Mary filing separately, but that wouldn’t benefit him because then he’d lose the actual higher deduction as being married um and she would have no advantage to being married violent separately because she has no income to report it sounds like so yeah it it’s not a it’s the the system definitely is not a perfect system. So um, you know, I hate to say this, but theoretically divorce, and then you could do head of household, but, you know, and have of her as a dependent but again it’s not really going to get you any more money you’d be better off almost married because the higher uh earnings would be tax lower as a married couple versus as mayor uh head of household or single so um no win in that conversation okay so um if uh you have question you can join the show Show 615-737-9986. 615-737-9986. Taking your calls, talking about taxes. It is tax season. We are working on all kinds of funding. and exciting things. We do have better depreciation this year. So for all of those that may have um purchased equipment, tractors, all those good things, we should have a better deduction. I will say again, talking about cars. Um, sorry, no one knows I’m talking about cars because I was just reading an email and someone had sent in and they are basically asking, you know, hey, I brought myself a Land Rover and I’m a real estate person and I want to take a 179 on it. How does this work? You have to be really careful when you’re truly, I mean, if you are audited and you’re a real estate agent and all you have is one Land Rover and nothing else to your name and you’re trying to say 100% of vehicle uh is being used for business, I would think the IRS would say, hmm, that’d be very hard because you do have to go the grocery grocery store you do go do personal things therefore the car is being used for personal use um say you do have a full car I mean you have another car that you use for personal and you only drive the Land Rover for the purpose of real estate. They could, I mean, for one, it’s a luxury vehicle, so does it really qualify? And you wouldn’t be able to to do it is over six thousand pounds I know you’re gonna say and it’s a bigger vehicle but you know um after the first year my question really comes to this so you got a hundred thousand dollar vehicle You’ve accelerated depreciation on that. So now the next year, all you’re going to have is interest, possibly penalty. I mean um insurance. and petro, but you’re not putting a lot of miles on this car apparently. And that’s my example from this email. So the first year you got all of this, even if you qualify and you you’re able to accelerate the depreciation in the first year and you can take this huge savings. Now you’ve got another two, three years and then you sell this car. And so let’s say you in three years you sell it and now it’s worth $70,000. Well you’ve taken all the expense for $100,000. So now you’ve got to recapture $70,000 as income. Or you go out and buy another Land Rover and now you’ve only got a savings of maybe $20,000, $30,000. After the first time you’ve done it, you’re you’re basically unless the car becomes worthless and you hold it long enough It’s an endless cycle. So yes, if you are a construction guy and you drive your truck to the ground and you want to use it and solely use for your business, or you have a tractor and you’re or a farmer or you’re a land mover, um, you know, you you build roads, whatever. Those types of equipment, no question, easy to do. But when it’s a personal vehicle, and even though you may be able to do something Something with it in the first parts. After the first time you do that, you’re going to then have to always be buying a more expensive vehicle than what you’re reselling it back for. And a lot of these cars have decent resale values. So Just put it in your mind, yes, you may be able to get an initial instant gratification, which is what we call section 179 or I do. Um, but after three or four years and you want to get rid of it and you’re gonna have to recapture 60-70 grand because that’s what it’s still worth, then you have to go buy another car worth more than that because you’re not going to have any depreciation to offset the gains And now you’re taxed three or four years later for what you could have just been paying the taxes for. So just keep in mind, maybe do it more of a straight line, um miles at 70 cents a mile, guys, um, for real use. Usage of vehicle is is pretty clean and you can use a vehicle that is used personally and for business as long as you’re tracking your miles and miles logs are required. IRS has never stipulated that you can just go in and just make an educated guess. You need to know what, when, where, and how, basically for why did you go there? Who did you meet with what was the purpose of the meeting was it business oriented and you need to know that on everything for every mile you do so i mean in some businesses it’s easy i went stopped at the client dropped off the product moved on and they they do deliveries. Um or you know, I went to visit my my my tax person and then you went back. And those are legitimate business if we talked about business. But you know, I went to the coffee house every day and some people try to write off their coffee every day. Now if you are in the coffee business maybe there’s some legitimate reason there. Otherwise that truly is just the stop and it’s not going to fly if you’re ever audited. And we do try to do taxes Just believe it or not, most people should. We try to do taxes based on the true fact. What is going to be legitimate when and if the government ever asks you to prove yourself right you don’t want to just throw some numbers on a piece of paper and then turn around and have to then try to backtrack and figure out well how did I come up with those 35,000 miles? Um and I’m a nail specialist or something. You know, I mean obviously it was commuting. Unless you’re going from location to location and doing people’s nails, maybe there is a business out there like that. Most of mine aren’t and remember commuting is not a tax deduction for nobody that means for Dr. Friday to go from my home here to the office in Brentwood, that is commuting. My clients are at the office in Brentwood. My clients are not where I’m at. So therefore I don’t get to take the miles from my home to the office and my office back home. Commuting. Always going to be. Once I’m in the office and then I go and and uh go to the bank or I go to see a client or I go meet Hank at his office to meet his clients, those would be legitimate business miles from office to go see client back, that’s fine Keep in mind that is very important because I have a lot of times. I mean, if you have a business with a um brick and mortar situation and you only have one business. and you’re coming from your home to that business, that is not a tax deduction. Now if you’ve got four or five locations, your first location would be the place that the you know the from home to the first location would be commuting from there to other locations could be um business miles and then obviously from wherever you’re going back home would be commuting Because it’s no different than a person that’s going to go to work. They have to go from home to the workplace and back. They are not allowed to ride off those miles. We are not allowed to ride off those miles miles. So again, don’t um when you’re when you’re estimating or you’re guessing, those are often the problems that people are not taking into account their true commuting miles. And it’s really important because if we’re ever audited, I will tell you miles are usually one of the first things they come back at, especially for people in the service business like real estate professionals or um Um or any, I mean, if it’s a business, let’s say that you have a hotel or you have a business like that and somehow you’re showing 15, 20,000 miles, but you only are showing one hotel in your tax return. or something like that. They’re going to question, are you really taking commuting from home to that hotel and back as part of your miles? Even if you’re you know, just an investor. I mean, you have to be able to justify those miles. So it’s really, really important that you’re doing that. All right. So for any of you that are just tuning in, I am Dr. Friday, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. just basically means I have passed all the tests. I’ve been doing this for 32 years this year. So I’ve been at it for a little while. And um, you know, I I find that I totally enjoy doing taxes. It’s always a change. Everyone’s taxes are different. But if you are in a situation where you don’t know what or how to get forward, maybe you haven’t filed for a number of years, maybe you’ve got a a lot of love letters coming. from the IRS, then we’re the people you might want to give a call. At least give us the option to see if we can help you. If you have a question now, you can join the radio show. It is 615 737-9986. Take your call. You don’t have to give us a real name or anything. 615-737-9986. There really are no I know a lot of times people are afraid I’m gonna sound really stupid on the radio. Well, hey guys, I’ve been doing this for what, 18 years or something. Um, I’m pretty sure I’ve said some pretty silly things. But seriously, there’s only, you know, if you don’t ask a question, you’re never gonna really know the answer. So give us a call, we’ll take our last break. We’ll be right back with the Dr. Friday show. Alrighty, we are back to the show. We’ve got two people that have called so let’s start with Jerry from Nashville and then we’ll go on to Greg. Hey Jerry, what’s happening? Caller 36:14 How you doing doc? Dr. Friday 36:16 I’m good. Caller 36:17 Hey, great. Uh question for you. As an airline pilot, say I live in Nashville but based in Dallas. If I have a dedicated car to drive to the airport Can I deduct those miles and the expense of travel to Dallas to begin my job? Dr. Friday 36:38 Uh there’s some software, I do a couple of different pilots and so when you go from here but let’s say your your flight is out of Dallas is what you’re saying. So if you’re staying in Nashville and you have to go to Dallas to get onto your first flight There is some allowable transfer in there, but in theory, the IRS is gonna say you driving from here to the Nashville Airport is your commute Caller 37:02 Oh, but then the expense of per say you purchase a ticket to go to work. Dr. Friday 37:08 Right. You would be able to go most likely from from Nashville to Dallas to have to catch your flight. They would allow that Caller 37:15 Oh I see. Dr. Friday 37:16 Just the drive would not be allowed because you’re going from the airport. Once you’re at the airport, you’re theoretically having to get to Dallas and they would allow that commute Okay. Or they can file the cost. All right. Caller 37:29 That’s that’s good good information to have. Thank you very much, man. Dr. Friday 37:32 Thanks, buddy. All right, let’s go to number two, which is Greg. Hey Greg, what’s happening? Caller 37:38 Oh not much. Enjoying the sunshine and no eyes. Dr. Friday 37:42 I like that. Caller 37:44 Quick question, we have a small construction company and we run two trucks. I run one and my helper runs it. Construction trucks, loaded ladder racks and all that. Um now my location I do have a active home office at my house that’s got desks and all that in there Um the shop is beside our property. We’re on Acreage, but I walk to that shop and he pulls up to that shop and we take off. Are we allowed to claim mileage from there to the first stop? I’m a little clear. You would have asked for a year. Dr. Friday 38:16 Yes, and and you would, Greg. You are a little different because your home office or your shop is your first place of business. That’s where you’re stocking up on all your supplies, you’re you’re taking your phone calls, whatever. Everything is starting there. So that is point one. So from there to your first client would be your starting of the meter. Yes Caller 38:37 Yes. And they don’t like even so we try to keep a good log. You know that if you’ve done any kind of audits with people. It is so tough like Did he stop at the store to get a soda or what? I I can’t keep up with all that, you know, and the mileage IQ goes so far, I mean it’s gotta be a little grace with some of this. You know, we try real hard to keep up with with everything but it is hard when you some pl times we see thirty clients a day. And that truck is active from day one. It’d be nice to have it where you could just Just do your mileage at the end of the year and never have to keep a truck. We keep a dump. Dr. Friday 39:08 Yeah, that would be sweet, but you could see how many people would cheat. But in your case, since your employee or your helper has a truck when he leaves the office and goes back home, those miles would be his commuting. Caller 39:21 Yeah he doesn’t we don’t allow him to take trucks home. Dr. Friday 39:24 We just construction guys do. Okay Um, so yeah, it sounds like you actually have a little cleaner because a lot of times they do allow them to take them home and that’s when it starts getting more because How do we and then they also have a gas card which makes it even harder because how do we know you filled it up to go home, not for business? So It is a it is a very difficult uh thing, but uh the best thing is if in your case would be always tracking a customer calendar so you could actually show all the trips that would have been there. So I have found most of the time if they’re darn consistent. the auditors are much more open than if there’s a lot of blank holes when people do their schedules. Caller 40:04 Oh I understand. Yeah, I appreciate that. Yeah it’s it’s tough as a business owner trying Dr. Friday 40:12 It is and that that’s where mileage IQ and stuff has helped, but I agree with you there’s still a lot of work that has to be done for an employer to make sure that it’s meeting compliance. Caller 40:22 And and and I have had a friend that just said, Forget it, I’m not gonna claim any mileage because I guess he got audited and he was like, I’m just done, I’m just gonna run. I can’t keep up with you know, I went two point eight miles to the next house. You know. Dr. Friday 40:34 Yeah. But that’s huge because in your life, I mean, I I’m assuming if you’re seeing twenty, thirty people, even if they’re all fairly close together, you’re talking at seventy cents a mile, you know, I mean that’s a lot of money that you’re leaving off the table. By just saying, hey, you know what? I don’t want to have to deal with the IRS. I get that hole, I don’t want to deal with the IRS. Most of us don’t. But if nothing else Play it on the safe side, you know. Hey, you know what? I’m gonna my my car had sixty thousand miles and I’m gonna be able to easily justify forty-five of it You know, at least take what you can easily justify. If you don’t want to push the bucket, that’s fine, but I think he’s probably leave you a lot of money on the table. Caller 41:14 Yeah, no, we we do that because uh we keep our vehicles until they’re plumb or out. So yeah, doing the what you were speaking about earlier, people buying these hot dollar vehicles and writing them off. Yeah, it’s great that first year to think about it, but that next year you’re kinda in trouble. And I’ll be honest with you, I don’t want to keep up with oil change and all that to collect that money, I’d rather do the mileage and take the 70 cents instead of keeping all the receipts for fuel. Did they put fuel in the you know lawnmower or what? I I I have no clue what all these guys are doing. You know, but I appreciate your time, ma’am. Have a wonderful weekend. Dr. Friday 41:42 You too. Thanks, Greg, for listening. Appreciate it. All right, let’s see if we can hit Elizabeth really quick. Hey Liz, what can I do for you? Caller 41:50 Uh just wanted to tell you uh enjoy your show, listen to it every weekend, and thank you for taking my call. I have two questions The first one is do you have to turn it in on income tax if you give your uh child, grandchild like three, four thousand dollars to buy a vehicle? Dr. Friday 42:11 No ma’am. That’s not sub has to be turned in and it’s underneath the gifting rules so nothing has to be reported. Caller 42:18 Okay. The second question is do I have to file I don’t file taxes because I’m on social security and low income Uh, but do I have to file taxes on like twenty-five thousand dollars uh interest on a savings account? Dr. Friday 42:35 If you actually earn twenty-five thousand dollars that would make you taxable yes I’m sorry two thousand five hundred oh twenty five thousand big difference there yeah twenty five hundred dollars would not make you a taxable situation No. Caller 42:51 Thank you so much. You have a wonderful day. Appreciate you. Dr. Friday 42:54 Bye. All right. Well, that was great. I love it when you guys participate. Makes my show go so much faster. We’re going to get down to the nitty-gritty. So if you would like to call our office on Monday Sunday morning you can phone number is six one five three six seven zero eight one nine six one five three six seven zero eight one nine and you can can also email friday at drfriday.com. Remember when you’re working on your taxes or someone else is helping you with your taxes, hopefully you’re using a tax tax person and enrolled agent. Um, but you know, make sure that the information you’re putting together is to the best of your ability. That’s what the tax law says. Um and I get it sometimes Sometimes it’s it’s frustrating and nobody likes to go through audits. Um no matter how good your paperwork is, you just it’s just a lot of time that has to go into it. So keeping track, making sure you’ve got everything saved and put into the proper files so that way if some question comes up on your tax return, then you’re able to turn around and respond to that instead of having to open up a full audit. Because if you don’t respond, what’s going to happen is the IRS is going to disallow everything and then it is going to be a full audit because you’re going to have to justify every expense and you know more and more I see that I will be honest a lot of times I see now we have paper audits and a lot of times they’ll come back and they basically say um here’s what we’re we’re auditing and it’s mostly a schedule C or a schedule E. We’ve disallowed all expenses. Please justify the expenses you took on your tax return. And now you have to send in all of those details. So easiest way to do that is obviously when you’re preparing your tax Make sure you’ve saved those documentations, scanned in the files. Um we do have to have receipts that justify the expenses, give or take, unless it’s $75 or less for meals and entertainment, but otherwise we can’t really take any entertainment only meals. Um so if you’re taking people out for entertainment purposes, remember that isn’t a tax deduction for a business right now. But meals would be a tax deduction so again if you’re interested or need help or just if you if we can lead you to someone else in your area because we’re in the Brentwood area maybe it’s a little too far away you can give us a call 615 367 0819 615 367 0819. You can also email Friday at drfriday.com again Friday at drfriday.com. If you don’t have any idea who I am or if you’re a returning customer and you have not yet got your calendar or got um you put onto my calendar I should say say you can check the website at drfriday.com the calendar is there and or you can call the office and we’ll make sure there’s an opening for you. If you’re a new client, we usually like to try to do an intake. So make sure Make sure that we are a good fit because you know your tax person should be able to handle the kind of taxes that you’re doing. Make sure that you feel comfortable because there’s gonna be a lot of personal information going between you when you’re tax person. And if you don’t have that comfort zone, you’re probably not dealing with the right tax person. So if you need to find a new tax person, even if we’re not that person, we might be able to lead you in the right direction. Again, the phone number in the office 615-367-0819. Or you can email Friday at drfriday.com or check out drfriday.com. Hope you guys have an awesome Saturday. Cop you later

Dr. Friday Radio Show – January 31, 2026

Dr. Friday Burke — Mon, 02 Feb 2026 21:24:55 +0000

Tax season is open and Dr. Friday jumps right in, clearing up confusion around tips and overtime deductions and the documentation required. She warns against preparers who charge by refund or fabricate numbers, then takes calls on senior deductions, energy credits, gift tax rules, IRS resolution delays, and business/investment questions.

Summary Points

Tips and overtime deductions must be backed by employer-provided numbers; do not make up figures or pay preparers based on refunds.
Senior Schedule 1A means testing can reduce the deduction to zero; negative values do not carry.
Energy credits and vehicle interest deductions require documentation like manufacturer IDs and VIN/FIN.
Gift tax basics: large gifts may require Form 709; recipients generally do not report the gift.
IRS resolution and amendments can be slow; choose qualified representation and keep records.
Business and investment call-ins cover HELOC interest limits, capital gains/loss netting with $3,000 annual loss limits, and 1099 deadlines.

Episode FAQ

Q: Is it okay for a preparer to charge a percentage of my refund?A: No. Fees should not be tied to refund size.

Q: If a parent pays off my mortgage, do I owe tax?A: The recipient generally does not report it; the giver may need to file Form 709 if over the annual exclusion.

Q: How do capital losses work against gains?A: Losses offset gains first; up to $3,000 of net loss can offset ordinary income, with the rest carried forward.

Transcript

00:00 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. 00:17 That’s 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday. Today I’m Dr. Friday, and the doctor is. in the house on this wonderfully cold Saturday. Actually very nice to be working in my office because it’s a bit nippy outside otherwise. 00:39 So we’re going to be talking today. Obviously, tax season has officially opened. We are working taxes as we speak. There has been some confusion a little bit about the tax um deduction that you’re getting on your uh tips and over time 00:59 I had one situation come through the door and I thought it was interesting. And actually I it was confirmed because I had another tax person. You guys hear me talk about Don all the time 01:10 She’s always working like I am on Saturdays and things. But anyways, she had the exact same thing happen on her side. So I think I want to put this out more as a warning than anything else because both of us have seen situations where people are preparing taxes for individuals 01:27 And you guys know I’m always talking about making sure you have somebody that is licensed, someone that’s going to stand behind the work, someone that’s going to be there when the IRS may send a sweet little love letter saying they’ve changed your return. or anything else and you want to make sure that you have the situation where you’re like, okay, I have this problem. 01:49 Well, anyways, they’re using the wrong numbers is what it really comes down to on the W-2. So W-2 box 14 has a number. Now I’ve had it come in in a couple different ways, different labelings. 02:03 I had one that was O B B B T T for overtime. I don’t know what TT stood for, but it should have been OT as far as I’m concerned. And then another one came in as like OT premium. On all the ones we worked on, we just called it overtime, trying to keep it simple. 02:18 But um that number isn’t something that you can make up. It isn’t something that your tax person, and in one of the cases, the tax person apparently got them like $6,000 back because of their overtime. 02:32 Um and that turned around to be um a a six and they took a thousand of it. Never should your tax price ever be based on your refund. Okay, it’s that simple. It should never happen. 02:45 So if that is something that your tax person is bringing up, you need to make sure that it is um I would walk away because you know they’re probably doing something fraudulent. All right, we’re going to go right to the phone lines because I am lucky today. 02:57 We got Pat online one. Pat, I am here for you. What can I do? Yeah, hi, thanks. I’m I’m talking about the uh enhanced deduction for seniors on Schedule one A. Yep Specifically line 33 and 34. 03:16 If the if you do the math on starting with 31 and you subtract 75,000 from 31, line 33 would be zero or less. Do you really put a number in there? Did you really put a negative number in there? 03:30 Or do you just move the the Okay, so then on thirty four it’s the same thing. It asked for a a computation. So that would have been a negative number also. Yeah, you can’t go to a negative on a tax return. 03:42 So it has to just go to zero. Okay, so then on line thirty-five, if those other two are zero, it says enter to six thousand and that’s the that’s the correct thing. You got it. Yes, ma’am. 03:53 Hi, thank you very much. No problem. All right. Thanks. I’m glad Pat’s work you too. Pat is working on her taxes. So um and what Pat was talking about, she’s obviously over the age of 65, and so she’s working on the additional money that you get when you’re over age 65 of $6,000. 04:13 She’s talking about the means testing that they do. And the same thing happens guys when you’re filing the additional Schedule 1A for the tips and overtime. Um, so those are going to be the same situation. 04:27 So just making sure that, you know, when you’re looking at these numbers, I have a young lady that came in and She um she’s qualifying for the the additional I believe it’s coming in on uh thirteen B for the purpose of this uh year on ordinary tax. That’s where um the additional deduction in her case was a little over ten thousand dollars is coming in and that does make a huge difference. 04:51 She was getting like $1,100 and now she’s getting like $4,400 Um that $10,000 can make a difference. And if if you’re getting that, doesn’t mean I’m going to charge you more. That was the whole point before that. 05:03 And so if there are people out there that’s going to talk people into if you have a W-2 and you walk in and they say, well, did you have overtime? And you say, yes. And you may have had over time, but if it’s not reported on the W-2, you better have a letter from the employer that shows it. 05:24 Because you tracking the overtime, the hours, multiplying it out, isn’t going to qualify because we need to prove those are the exact same hours that the employer used when reporting this information. And remember, if you’re tracking your total overtime, then you are going to have a situation where it’s a third of it, right? 05:45 Because time and a half, right? See the the time is two thirds and then a half of that. So you’re only going to get a portion of that number. You’re not getting a hundred percent of that number. 05:57 So You need to make sure that your employer’s number and yours match. If your employer is no longer your employer and they have not provided that information, we are allowed to do our best to recreate But I would be on the safe side on that. 06:11 You had better have timesheets or uh pay stubs, something that’s giving us the details of that information. And assuming that you’re just doing time and a half because if it’s double time or even triple time, it asks that in our our form that we’re completing. 06:28 We have to tell them, did you get normal to uh overtime? Did you get overtime if it was less than eight hours with someone paying you more in overtime? Um, those kind of questions are what you’re going to answer when you’re on. your tax system. And so uh same thing I had I wanted to bring up uh we are doing some energy credits for 2025 and in the past We have not had to have a manufacturer ID. You do have to have that. 06:57 If you have new windows, you need to make sure you call Window World or whoever and I will tell you we called Window World while we’re there in the office with one of my clients and they were very good about getting us that number ASAP. They were quick. 07:10 They were efficient. Um, it was wonderful because I kind of figured, oh gosh, we’re gonna end up not being able to get this number. And they had it on file. So they’re probably getting used to having that information, but you need it for your tax preparer or for you to prepare taxes if you have qualified windows, qualified doors. all of that kind of situation. We want to make sure that you have all the proper information so that you don’t lose out. 07:37 Remember if you’re if you purchased a car in 2020 You’re gonna want to make sure that you have um the fin number, right? making sure that Finn number qualifies and that you can take off that particular interest. 07:53 But you need additional, not just the note that says, hey, I paid this much interest. You need the FIN number. You need to know when the loan was taken over. Was it a fur was it in 08:04 A um new car? Was this something that you try to refinance? All kinds of questions are going to be asked. And not hard. We can handle it, guys. But being organized Totally gonna make life easier for all of us. 08:18 So just putting that out there, making sure that you and I are on the same page. We don’t want to have any issues when you’re in the office when we’re just trying to kick out those numbers. 08:27 We don’t want to have to wait. And then turn around and say something about, you know, oh, we can’t take this because we don’t have this and we don’t have that. Much easier if we can get that information and go forth. 08:38 Okay, so if you’ve got questions, maybe you’re working on your tax return, or maybe you have some situation that you’ve been working with the IRS. Um, I will tell you it’s taking me three years, but we have finally got one of my clients. 08:51 Um I will say it’s very um as much as you know my clients are awesome. I’ll be quite honest with you. Um but sometimes uh you know They can be extremely tenacious and this one was well worth it. 09:02 Finally got someone from the IRS. This was a 2019 issue that we finally Got someone from the IRS to look at what we’ve been submitting for four years, it feels like. I think it’s only been two, but um but you know finally got the right person because you know if the IRS isn’t on the right page, you know what they’re doing? 09:20 They’re collecting. Or they’re trying to collect. And the person on collections cannot help you when it comes to I’ve already amended this return. I don’t owe this money. You know, this is bad, you know, and then the client’s getting stressed because they get letters saying they intend to levy or they’re going to seize property and they’re like, okay, should I just pay it? 09:37 And, you know, of course, the answer is no. We don’t want to pay something you don’t owe. We want to make sure that we have all the right information. But on the other hand, you want to make sure that you’re doing what you need to do and how you need to do it. 09:49 So Just putting that out there to make sure we’re on the same page. We don’t want to have any kind of issues. If you want to join the show, you can. 615-737-9986 615-737-9986 is the number here in the studio. 10:06 Um, and we’re obviously talking about taxes. It’s tax season It’s a busy season. I have a few people that say they still haven’t received their refunds in 2024. I will tell you that um if you haven’t received it yet and it was filed on 11. 10:22 3 or right around that date because you waited till the last minute. Um you you need to go ahead and either get a hold of someone at the IRS, and we have found that they are answering the phone. 10:34 Now resolutions are running a little slow, but they have been for a number of years. So it’s not something really brand new. But it is something that we want to make sure that we have going in the right direction. 10:47 So if you have a situation and you need help or you You’ve got a tax issue out there. Well, you know, that’s what we do. I’m a that’s tax resolution, right? I’m an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. 11:01 I have never, ever, ever worked for the IRS. Let’s clarify that just in case somebody thinks I have. I have not. But I have been, I have passed all their exams and I have made it to a point where I can do resolution. 11:17 I can help people. do what we need done and go from there. But you know, again, it really does come down to if you have an issue with the IRS, your best thing is to move forward with some sort of resolution. 11:30 And um I do want to say, you know, if you’re working with one of those really big companies, one of the worst things I have to say about that is plain and simple Most of the people A aren’t someone you can sit down and talk to because they usually um sell your account to somebody that works for the big guys. So they’re also small companies that work with them. 11:51 Again, you may end up with an awesome person. So that’s not necessarily, but if they’re in Texas and you’re here, it can get a little frustrating. And then also if you haven’t Um, you know, if you haven’t heard, normally they’ll just start billing, right? 12:04 They say, oh, well, we you know it’s gonna cost you $10,000. So start paying us $500 a month or whatever they work out with you But meanwhile, you really haven’t found out what they’re going to do for you. 12:15 I mean, almost always do they have a minimum amount they’re going to charge you before they even know really what they’re going to do for you Personally speaking, doesn’t work for me. So you need to make sure that you are already dealing with this information the right way, right? 12:32 So if someone’s gonna do resolution, find out what kind of resolution. And then find out what it’s going to cost. And find out if they’re supposed to file five years of taxes for you, if they’re doing whatever it is that they’re doing. 12:44 I mean Just make sure that you’re not signing a contract and then moving on with that contract to go from where you’re at. All right, we’re going to take a quick break and then we’ll get to Logan. 12:53 That way we can spend plenty of time with him. We’ll be right back with the Dr. Friday show. Alrighty we are back here live in studio and Logan thank you very much for holding through that break and I will be more than glad to hopefully answer your question. 13:08 What can I do for you Logan? Yes ma’am. Uh I think you touched on it a little bit earlier. Uh bought a uh natural gas tank list water heater to replace electric tank water heater uh just at the end of last year and when I got it it said something about a uh rebate or a tax rebater uh six hundred dollar tax credit. 13:32 Yep Right. And uh so I needed to I’m just kinda curious to know what all I need documentation wise, I guess when I have my taxes done. Yes, you will need to have I ideally in my world I like to see the uh the invoice, the receipt, whatever you have, and then make sure on that, because the one the at Birch is windows, the manufacturer 13:53 ID number was not on it. It’s a five digit, four or five digit number, letters and numbers that they will provide to you. It’s not a real long number. But it should be provided by the company. 14:03 So if you brought it Home Depot or whatever, I’m assuming it might be on the receipt, but if it’s not, you might want to try to call before you get to the tax office because they will need that to get you your credits. Okay. 14:16 And that’s the manufacturer ID? Yes, manufacturer ID. Okay. I appreciate it. I will do that. No problem. Yep, and I’m glad I found out too because I mean normally up until now we haven’t had to have that. 14:29 You know what I mean? So that’s just a new thing for 2025. Okay, okay. Sounds good. Appreciate it. Thanks, Logan. Okay. Thanks. All right. Let’s get Kim on the line. See if I can help her. 14:40 Hey Kim. Hopefully you’re staying warm. I am. Thank you for taking my call. Hey, I am in a really wonderful position where my mother is wanting to pay a hundred and fifty thousand dollars on my house mortgage. 14:58 And um I don’t know how she’s gonna just directly pay the mortgage company. And I don’t know, do I need to claim that on my taxes or what what do I need to do No, um you will not do anything. 15:12 Um and thank you, Mom. Um so in mom’s case, since it’s gonna be 2026. It’s called a 709. It’s a gift tax return. Theoretically, she can give you 19,000 without filing this form. And I’m assuming this money sitting in the bank someplace she saved the money. 15:30 So she’s like, hey, honey, you know, let’s just make life easier, pay off the mortgage, whatever. Um, which is an awesome mom. Anyhow, um So whoever does mom’s taxes or if you help her, make sure the year she does that that they file the 709. 15:44 And basically all this does is it takes it out of her lifetime, which is like 15 million she can give away. So most of us will never get close to that number, but it’s just a form we have to file. 15:55 There is no taxes to her either, assuming that the money she has is like sitting in the bank. Not that she’s taking it out of 401k or you know I’m just saying assuming it’s already in an after-tax situation neither of you will pay any kind of tax So she just needs to have a paperwork of 709. 16:12 And it’s really that simple. It’s um we do them all the time. Uh but you know, as long as uh you guys are both US citizens, which it I’m sure I mean you are, then we don’t have any limitations for gifts or anything like that. 16:28 Wow, that’s wonderful. I I wasn’t expecting it to be that easy. Yeah, we try to keep it simple. But yeah, no problem. So just if she decides to do it, just and all she’ll need is your social security number or whoever does the taxes, social security number, address, and legal name. 16:44 That’s all She’ll need from your information so her tax person can complete that form. Okay, okay. And the 709 form for her. But I don’t I don’t know. Nothing. It doesn’t show up at all on you 16:55 Nothing. Wow. Okay. Thank you so much. No problem. Thanks for listening. Okay, thanks. Thanks. Bye. Okay. Bye-bye. All right. So that was a great question because I meant to bring up the fact that in 2020 17:08 You can have $19,000 per person. So theoretically, if mom wanted to give her $19,000, she could do that without filing this form, the $709. None of that has to play in. to it. If uh if one of them is married, they can each give 19,000. 17:26 If she has uh you know so if she’s married mom could have given her daughter and then the daughter’s husband each nineteen thousand but um You know, in this kind of situation, it’s just very easy. And so there are ways. 17:39 I have a number of parents that are pretty awesome, to be quite honest with you, that are um likely to put a down payment on a house for their children, pay off a mortgage, have more than one of them that’s done that. Um, you know, all those kind of situations. 17:56 I’m not a financial planner, so I’m not gonna tell anyone, but I think it’s pretty nice that any parent might want to I mean a lot of times it’s your inheritance anyways, but they feel better. Hey, you know what? 18:06 This takes the pressure off and I can do this without, you know. causing any kind of conflict. So um no big deal. You’re in great shape. So the exemption again is 19, but if you want to give more you can. 18:18 Only people that we have any limitations would be non-US citizen spouses, you have a limitation of $194,000. But theoretically you can give just about any person $19,000 without any kind of pay paper trail. 18:34 You just need to have name, uh, if ever audited, you would need the name and Social Security number of that person. But other than that, no pap Issues. Okay, so uh that being said, if you want to join the show, you can 615-737-9986-615-737-9986. 18:54 So we have a couple things that are different this year than we haven’t had in uh in the past or last couple years at least. We used to be able to write off Your credit card interest, your car interest, all of that on a schedule A back in the day. 19:08 But that’s been a long time. And now we do have the auto interest Again, this is a no tax on car loan interest provided under the LBBB. Deduction is available for purchase of new vehicle. 19:23 Not a lease, not a use. It has to be a new vehicle. And you know, there is some other expectations there that you have certain type of car. And all of that. So you do need to make sure these are the kind of things if you purchase the new car, you need to bring in the paperwork for the new car. 19:42 One, you might qualify for the sales tax as well. Um, and then you might want to make sure that it has the You know, the fin number is 100% most important thing. You can only write off to $10,000 of the interest. 19:53 So if you went and bought yourself a Maserati, I don’t know if it would qualify, but if it did, you’d only get $10,000 of the interest interest. So not one of those things that you’re going to have, but um again, the other thing is overtime and the other thing is tips. 20:08 So again, be very careful on the whole conversation of tips overtime because I just feel that we’re opening up a situation where there is going to be a lot of preparers that or people, I shouldn’t call them preparers. These are people that throw some numbers on a tax return, don’t have any accountability, don’t even put their name on these tax returns. usually and then they’re saying hey we’ll get you six grand back and you’re gonna pay me a thousand when you get it it really upsets me to be quite honest. It’s like any profession when you find out there are people out there that cheat that profession And you’ve worked hard for 30 plus years in doing it and trying to do your best. 20:50 I’m far from perfect. I’m sure I’ve made more than one mistake, but never intentionally. Never did that to to do something like that. I may have, you know, may have made a typo or two. 21:01 I won’t say I haven’t because after you do the number of returns I’ve done, there are times when that will happen. But I stand up, you correct it. Anybody that actually does taxes, if I make a mistake, people, I’m gonna stand behind that mistake. 21:16 I I will fix it or I will pay the penalties. I won’t pay your tax because you would have paid it no matter what. Um, but I would pay the penalty because that is a mistake I made If you make a mistake, we’ll help you negotiate penalties, we’ll help you negotiate interest. 21:31 But you know, again, you have to be accountable for the mistakes you make. That’s the way I have always done my business and hopefully more people do that. So if you’re interested in enjoying the show, you can 615-737-9986. 21:45 615-737-9986. I had someone email and say, I can’t Keep saying EA. What is an EA? Sorry. I just assume everyone knows these things. An enrolled agent is an individual that is licensed by the Internal Revenue Service, meaning we’ve taken exams that they have done and three different exams. And we have passed and then we have been certified and background checked and all that good stuff. And then we’re allowed to represent taxpayers in front of the IRS. 22:16 We’re also allowed to file, e-file, tax return. And we have to every year have a number of CE credits to keep up our education. And and continue to do that. So if you have someone that doesn’t have uh either an EA or a CPA, then you have someone that’s probably not really been licensed. 22:38 Now I’m not gonna say maybe they’ve been doing taxes forever and they are they are educated in the world of taxes, but you know, if they are registered, then they should be registered one way or the other. Um, as far as I’m concerned. concern. But if you really want someone that’s going to be there year round to protect you, then you need to make sure you go to an office that’s going to do that. One of my biggest pet peeves of the big houses, you know, the the companies that only do taxes during tax season is that uh in my world love letters from the IRS don’t just come January through April. They come all the year round. And sometimes they pop out of nowhere and they come back at us even when we think we have resolution and different situations or 23:22 You finally get one thing and then the IRS comes back with a whole nother situation. And if you’re not, if you don’t have someone that’s going to be there year-round to represent you, then you’re trying to represent yourself. 23:34 Or You’re paying someone else to do what maybe should have been done by that person in the first place. I’ve had a couple of cases this year where even simple things, you know what I mean, like something needed to be amended. 23:48 And uh the person basically wasn’t there, so amendment couldn’t be done because their offices are closed and they send them to someone else. You need to have that because, you know, statements come in late. 24:00 People change things, amended 1099s, amended W-2s, and then you might have to amend your tax return and your tax person needs to be reached so you can do that. All right, let’s see if we can take a really quick break and then I’ll get Charles so that way I don’t have to cut it really tight. 24:15 We’ll be right back with the Dr. Friday show Alrighty, we are back here live in studio. And so let’s get Charles who was nice enough to hold through that break. See if I can answer his question. 24:30 Hey Charles Hey, how you doing? I am good. What can I do for you today? Uh well let’s see. Uh I’ve got a kind of a a deal I’m gonna work on and I want to get a uh Helco loan. And with that money I’m gonna uh buy some land and uh use it for a a business. 24:52 Mm-hmm. Can I write the interest off on the Helco Um well uh h you m you mean a heatlock, right? Like a it’s secured against your house. Yeah, he’ll lock. I’m sorry. Okay. No, it’s right. 25:06 No, I knew what you meant. Um but the answer to your question is um theoretically it it would probably it would depend on how you set it up. You may want to set up the property. Since it’s in your name, Charles, and the business, it may be is it a sole proprietor or is it gonna be some sort of LLC? 25:24 Do you know how that’s gonna be right now? Okay, what I got is it’s um some just plain land anyway. I’m really interested in land and uh I’m thinking that I could put some sort of like a landscape business on it or a convenience store or something like that, you know. Uh right. I mean I love dirt. Don’t get me wrong. I think that’s great. But dirt in itself can’t be depreciated. So and it’s very hard to rent, I mean you can rent it. I mean people can grow crops and things and you can receive a portion of it as a a farming thing. Or you can go into like you said landscaping convenience store put a double wide on it and have someone 26:04 And rent it for their business, something. I mean, depending on how much you’re wanting to invest. The building that you put on it, we can depreciate. The land is not, but the whole loan could be, if you have rental income off of that property, you can then. take the interest off it along with all the repairs, maintenance and things like that that you have going into it. Okay, what about my equity loan? The interest I’ll be paying on that 26:29 Well I mean the HELOC is secured against I mean you have yes the the HELOC will be secured against your primary home but you’re using that as the funding to that property, correct? Correct, right. 26:42 Yes. So you’re not going to be able to do it. Right. I mean you’ll just have the HELOC. You won’t have another mortgage. The HELOC will be the hundred percent that you have or your cash plus the right so yes the interest would be tied to that property 27:05 Okay, but I can write it off, right? Yes. Okay. All right. And uh one other one too. Um okay, wait a minute, let’s see. I’m uh I’m just not quite clear, crystal clear on that. Uh I just my money wanna buy the land and I really don’t know what I’m I’m gonna do with it. 27:30 I do have some you know, some ideas but that’s what I was asking. Is it you know, it may be a year or so before I get anything going on there. You can’t write it off until you actually have a functional rental. 27:42 So if you start buy it today and you don’t do anything for the year, the interest is not going to be a tax deduction because it’s not tied to an to a passive investment or anything else. Now HELOCs themselves can be written off if it’s less than 100,000 right on your Schedule A, but nowadays people have a difficult time meeting itemization and you’re tying this to your rental property. 28:08 I mean what you’re calling investment property. Maybe I should call this an investment property. And so we have to make sure you understand. Okay, so I will not be able to write off any of the interest I’ll be paying on the Helco uh loan 28:22 No, is that what you’re telling me? Um not until it’s actually an active rental. No sir. It has to have a rental you have to have the ability to make, otherwise it’s just an investment 28:32 And it’s not a deduction. I uh I I personally would be owning the business on there. So how does that differentiate with the rental situation? Well I mean If I mean if it’s part of a business, then the business is uh generating income and you could tie it to the expense, but I think any tax person would tell you it’d be better to keep the property separate than a business if there’s a lawsuit. 28:57 You really don’t want I mean you would want to have them separate. I would definitely talk to an attorney if you’re buying dirt and running a business because you might want to protect that asset just in case somebody sues you There are ways of it. 29:14 So uh so there would be no way Is that I could just buy that land and write the interest off uh on the uh the loan on on my residence. Not without turning it into a farm or turning it into a business You have to have some reason to write it off. 29:30 Otherwise, it’s just an investment and that is not a deduction. Okay. All right, so I’ll read Now there’s no uh uh w whatever value to to uh rental and stuff like that that they go through. 29:46 So if I rent the thing out for a hundred dollars for a year and and have a guy uh use it to cut hay on that that would fly, right? Not necessarily you have to charge fair rent because otherwise it sounds like you’re underestimating i mean if you paid ten thousand dollars for and you’re charging a hundred dollars maybe that would be fair but if you paid a hundred thousand dollars and your mortgage is you know, a thousand dollars a month, I’m just saying, or whatever, and you’re only collecting a hundred, they would say possibly you’ve underpriced the rental. So again, there is some rules you have to abide by if you’re gonna do farming and things. 30:23 Which is what you’re talking about, land leasing. You would need to make sure it’s the same price as if somebody rented somewhere else. Yeah, it’s the the the uh property is located right on a major highway, just right at it 30:35 Addiction and uh I’m looking for ten years down the road, you know, it’s big enough that you know you can put Kroger on there or something. It’s a big big big corner lot, yeah. And uh so I mean the investment is there, it’s just the question is 30:50 I mean, will you be able to immediately be doing something with it or not? I’m not sure. I mean that would be some planning, but I would say, you know, the best thing to do would be to turn around and have that conversation with a good tax person and I would definitely say once you’ve purchased the land, talk to an attorney to make sure you’re protecting yourself because you don’t want one to to put something else in risk is all Right, yeah, yeah. That’s all I figured, yeah. 31:14 I need to get some an insurance policy on that code of liability. Yeah, okay, wait just one more. I got uh capital gains. Okay, um let’s see. Uh right now let’s see example here. I’ve got ten thousand in long 31:32 And I’ve got uh that’s a gain, and then I’ve got twenty thousand in short, that’s a loss. What can I do with that So you have $20,000 in short-term capital gains and a $10,000 in long-term capital gains. 31:48 Right. Is that what you said? 10,000 is gained, yeah. 3,000 of that once you’ve passed the the negative. So the 20 will wash the 10, leaving you with a $10,000 loss. Your tax return will show a $3,000 loss. 32:11 The other seven will roll over till next year. Okay. And how long can that in other words if I next year I don’t use I don’t use that seven. Is that what it is? Okay. So I mean just saying in these numbers 32:25 The seven you’ll get to claim another three thousand dollars. You’ll claim another three thousand dollar loss in twenty twenty six, for example, and then it will only be four. And that three thousand every year will go off, you’ll be able to use it in the next couple years or wash it against future gains if something happens in the next year or two. I hope so. I hope uh our good president keeps his mouth shut. We will find out. I’m hoping you didn’t put any bets on that. though we all know that okay well i really appreciate your information all right thanks all right if you thank you bye bye all right if you want to join the show you can 615-737-9986. 615-737-9986. 33:18 Taking your calls. Talking about taxes. Many of you have um a lot of different uh situations going on and um you can easily just give me a call, give me a scenario, and I’ll do my best. 33:31 But otherwise you may want to email or call um our uh our office at 615-367-0819 on Monday. No one will be answering before then but on Monday um and we can set up a time to help you as best we can and then set up an appointment if you’re a returning client make sure Make sure you are on our calendar or make sure you’ve uploaded your documents into the Smart Vault so we can get you started. 34:00 And now I know many of you, I mean some of you have started, but I mean let’s be honest. Carol Schwab’s not going to have anything out till probably the middle of February. So many of us are going to be holding off on some of that. 34:13 And so you know hurry up and wait is often the way we work around. here but if you have the ability to get everything in prior to that that’s awesome we’re working on taxes as we speak many of them we’re trying to get prep now i will tell you you some corporations and even individuals on uh some of the forms the IRS has not yet released so we’re not able to completely finish everybody’s return but within the next few days I think they’ll have a lot of them I think two seven was the last time I saw one of the the forms I’m waiting for will be we cleared off so another week or so and then we’ll be in good shape to finish finish up everything we need to finish. You do want to remember 1099s, W-2s, if you’re an employer, my suggestion would be is to put together a little note or even just have an Excel spreadsheet in your office so when people call they have the ability to receive those overtime and tip numbers if you did not already put them on box 14 um maybe even just putting together some sort of notice and and emailing it out to each client uh or employee excuse me and making sure that you have 1099 all of your subcontractors and that would also include all of us that have rental properties Remember if you have rental property and you have a repair guy that does your heating and air conditioning or you have a handyman that goes out and does things, you have a lawn guy that cuts the grass. 35:33 We are responsible for doing 1099 to those companies and making sure that we have submitted those forms out to them. And so they are due Monday. So if you haven’t done them, it’s not too late, but it’s also a good practice because is um one of the things that happens if you are ever audited. It certainly is one of those wonderful things they turn around and say, ah, you know what, you didn’t do that. So prove you paid it. 36:00 And then there’s a penalty that they can charge up to $500 for each. 1099 we didn’t issue so we don’t like penalties, right? All right, we’re gonna take our last break if you want to join the show 615-737-998 36:13 We’re going to be right back with the Dr. Friday show. Ex-services, planning, business, and IRS negotiation. Visit drfriday. com. Alrighty, we are back for the last bit on the show. 36:29 So if you’ve been waiting to join the show, probably now’s a good time to pick up the phone 615-737-9986 and we’ve got Stuart on the line so let’s see if I can help Stuart Hey, how are you doing? I’m good. 36:43 Stu, what’s happening? Hey, um, I’ve got a question. I was uh working for a sales company for about two years And they hired their sales representatives. This company has business in multiple states. 37:01 They hired us as sales reps as ten ninety-nine employees, but they required us to do meetings, do trainings. um travel for trainings, uh things of that nature. And I received a letter in the mail. 37:17 I do not I no longer work for that company, but a couple of the other employees Um, I guess there is now a lawsuit for the way that the company is. Management of employment? Yeah. Sounds like that. 37:30 Yes, that is correct. And so I didn’t know if that is something I should even look into or kind of a waste of time. The main thing that they were saying is that this company I’m not gonna say the company’s name obviously. 37:45 Um uh failed to provide its workers with the pay and tax treatment afforded to employees, including payment of overtime if earned, and failed to provide its workers with employee benefits including but not limited to health, retirement benefits, paid time off. Worker compensation over time unemployment. 38:04 I didn’t know if this is something that I should have. I mean there’s probably nothing wrong with it. I mean the fact is when you were hired there was probably disclaimers telling you, hey, you’re being hired as a subcon. 38:15 I don’t know this. I mean they should have made sure they understood you were being hired as a subflub, even though they may have told you certain times you may have had the ability to handle your own schedule. 38:25 You may have been able to work from home. Um, you know, there there may have been some, and that’s lawyers, you and I outside that my pay grade, to be honest. I will say if it gets settled, you’ll probably end up with certain amounts of of uh income and it would be reported as income. So it would become a taxable situation. But hey, every dollar you get, what you pay 20%, you still keep 80? I mean I’m just saying uh not a bad not a bad thing 38:51 Um, it just I guess just depends on um what you feel if there was misrepresentation or not. Because it sounds like to me they feel they should have been employees and I have been More than once on this radio, I even talked about situations where people misclassify employees versus subcontractors. 39:07 And it is a savings for employers in some ways. uh because we don’t have to pay the 10% match on Social Security and Medicare if we don’t list them as employees. And then if you’re a bigger company, there’s health insurance, you know, matches on 401ks. 39:21 There’s a lot of different things that are cheaper for me to make you a subcontractor than an employee. So I will say a lot. Salespeople do end up with I don’t know if they would actually have had to pay overtime. 39:33 Most salespeople don’t get overtime because the commission is over sand uh over normal What is it called? Minimum wage. You usually already make more than minimum wage. So usually the overtime is already built into your salaries. 39:47 But Some of the stuff they’re saying probably makes sense, especially if it was truly misclassification. So I guess it just depends if you’re still in that same industry, would your name come across, you know, would there be anything listed that could put you into a situation where you might not like to be listed, you know, between you and I? 40:05 That’s the only thing I’m thinking. But from the tax standpoint All I will tell you is if they win the case, it will be taxable income to you. But other than that, that’s not necessarily a bad thing. 40:14 If they truly misclassified you, we need to make sure that companies are not doing that because it’s it’s bad for all of them. Okay. And that was kind of my main question because they they classified us as a ten ninety nine, but they we were not able to set our own schedules. 40:29 And so I think that’s kind of the same thing. You should have had the ability to make your own schedule. You should have had the ability to um choose your clients in some cases. You know, there there is a rule of what an employee versus a subcontractor. 40:51 People hire me as a subcontractor. I tell you when to come in. You, you know, I mean just saying I have more control. And that’s where the misclassification comes, to be honest with you. 41:00 But I would say it can’t hurt to get a lot more information because it really does sound like and there are a ton of people that misclassify employees. Just let you know. Yeah. Okay, Steve. 41:10 I appreciate your time. Love your show. Thank you so much. Thanks, sir. All right, let’s see if we can get Steve on the line real quick here. Uh we have about five minutes. Let’s see if we can get him on. 41:18 Hey, Steve. Hey, I just I think mine’ll be quicker than five minutes. I work for a local government as a fire captain and we just got a notice From HR saying that our overtime is not going to be tax free because we have an administrative role, even though we’re out in the field with the firemen. 41:40 They have a lot of little clauses that people are gonna find out about. I mean I I only found out about a couple of these recently. But they’re basically gonna say that administrators don’t qualify and if they’ve got you listed as an administrator or a manager, they don’t qualify. 41:58 So basically they’re trying to you know, limit the people that are going to get the qualification. Um but yes, I I have read that that is you True that administrators or or even uh upper management are not going to qualify even though you do have and they do put you on overtime. that you’re not going to fit the criteria for. It’s under the Federal Department of Labor. They’ve got a whole bunch of rules they’ve put in to see who’s qualifying, who’s not. Where’s the best place to find that list of rules? 42:30 Um if you go under Federal Department of Labor, you’ll find it right there. I just read some of it today Okay, thank you. No problem. Thanks. If you can’t find it, just um email Friday at DR Friday and I’ll send you that’s Friday at drfriday. com and I can send you the link Thank you. Okay, thanks. All right. That was less than five minutes. Steve was a hundred percent correct. And I think that we’re gonna be finding a few more of these little things because um again, I am gonna be quite honest. 43:00 I think as a tax person, we are trying to figure out what this is. This is a brand new tax law. We’ve never had this one on the books, even bringing it back. We haven’t had tips and overtime being um. uh something we’ve dealt with in the past and uh the law was kind of brought in for what they consider the I mean a fireman you think is a working class in many ways, but um they’re they’re trying to bring it in. They limited it by income, $75,000 for an individual, $150 for married, and it kind of means test is out Um, and then they’re trying to bring it down to I think they’re trying to find companies, not to find ways for companies to be paying overtime and then giving it like as a kickback in a sense. I don’t know that for a fact, but um it is uh you know part of the OBBBA situation. I I really think that they’re they’re trying to come up with a way of making this a situation where it’s a little bit better for some. But anyways, it’s going to be confusing and make sure again there are boxes that are required to be checked on the tax return. If you are doing your own taxes and I’ve had more than one person that turns around and says, oh, you know what? 44:16 I checked this box and I had a smaller refund than if I checked this box. So I went ahead and checked the one that gave me the bigger refund. You don’t do that. Okay. You need to make sure if it says that are you qualified for the Federal Department of Labor rules and it says yes or no, you have to know the answer to that because one is going to give you the credit, one is not. 44:36 And if you don’t qualify for it and you say you do, it is going to come back at you with penalties, with interest, and that’s going to hurt a lot more because I really do think this is going to be one of those areas that IRS will open up for audits. Because 2025, a lot of employers are not putting that information on the W-2s, which means a lot of people are guessing, man, are doing their best to figure that out. 45:01 But it isn’t going to be easy for anybody. So just Make sure you answer that question. If you don’t know the answer, make sure you find out the answer before you check the box so you have something that works well on your, you know, meaning how you do it, how you’ll track it, how it’s going to work for you. All right. So we are down to the last oh minute of the show. So let’s go through some of the information you might need. 45:26 If you want to set up a tax appointment, you can go to the website drfriday. com. There is some, I think there’s still a few openings on there And if you’re a returning client and you don’t see anything, please call the office direct. 45:38 615-367-0819. 615-367 0819 is the number you can call Monday and set up an appointment. Or if you have some questions and you’d like to try to get the answers to those we’ll do our best to get to you. 45:55 You can also email Friday at Drfriday. com again Friday at Drfriday dot com and we’ll do our best to return your um your questions uh as fast as we can and then hopefully you guys are actually having a wonderful Saturday. 46:11 This has been um a great uh day and we’re getting ready to work on more and more taxes. Things are being updated as we go. But again, if you need help with taxes, you can call our office 615-367-0819 46:26 And um if you’re in the Mount Juliet and you have a appointment you want to have up there with Donna, hey, call our office and we will give you direct information for her. Um but if uh you want appointments, give us a call. As we always say in Australia. Cop ya later

Dr. Friday Radio Show – January 24, 2026

Dr. Friday Burke — Mon, 26 Jan 2026 21:17:25 +0000

This week, Dr. Friday breaks down the Trump account election (Form 4547) and what it means for parents, grandparents, and employers. She also revisits tips and overtime reporting, the new car loan interest deduction, and the recordkeeping needed for basis and mileage. The show closes with guidance on selecting ethical preparers and staying ahead of 2025 filing changes.

Summary Points

Form 4547 election for the Trump account can apply to children 17 and under; contributions are optional and may come from parents, grandparents, or employers.
Tips and overtime totals must come from employers (box 14 or a statement); do not guess amounts when filing.
New car loan interest deduction requires a new vehicle, lien-secured loan, VIN/FIN, US final assembly, and purchase after 12/31/2024; income phaseouts apply.
Cost basis matters; without records the IRS can treat basis as zero.
Mileage and expense deductions require logs and generally apply only to self-employed/1099 income, not W-2 wages.
Red flags: preparers who will not sign the return or charge a percentage of the refund.

Episode FAQ

Q: What is the Trump account and how do I elect it?A: It is a child savings account elected on Form 4547 with the 2025 return; participation is optional and contributions are not required every year.

Q: What do I need for the car loan interest deduction?A: A qualified new vehicle, lien-secured loan, VIN/FIN, US assembly, and proof of interest paid for that year.

Q: Can I deduct mileage if I am a W-2 employee?A: No. Mileage deductions require business use and logs and generally apply to self-employed or 1099 work.

Transcript

00:00 Hey, I’m Dr. Friday, and the doctor is in the house. We are here on this cold Saturday. Good day to be inside, not have to worry about being outside. May mean that many of you aren’t really listening today because you’re not in your cars going all over the place like you usually are. 00:16 But today we’re going to talk a little bit about a call. I had a phone call earlier this week from another tax person. that I worked really well with. And Donna, she she also does taxes. 00:30 But anyways, we were talking about the Trump account and the election on the 4547. and who should be filing it. And I’ll be honest, when that first came out, I was thinking it was only for parents that had had a child in the year of 2025. 00:47 And then it was going to be for those three years. Not not taking a bigger picture or looking at a bigger picture. And so I want to talk a little bit about how this is really going to affect anyone that has a child 18 and under but I should let’s just say seventeen under because in the year which they turn eighteen it becomes um an adult as far as for this account. So if you have 13, 14 year olds and maybe you’re thinking, I would love to have some sort of account, not a 529 plan, because that sometimes limits Und where uh the school or what they can do. 01:20 They cannot have IRAs because they’re not working yet. So this Trump account is really A a great thing uh because for a lot of my parents who are looking for find out or even grandparents or employers that are looking to put up to twenty five hundred dollars bonus into their uh employees children’s accounts, this all works. 01:41 You cannot be an employee. The employee can’t do it. The employer could do it or grandparents or you as the parent can put it in there But anyways, up to $5,000 a year. If the child was born in 2025, 26, 27, 28, they’re going to add another $1,000. to this. But I mean this is huge because think about in 18, well in some cases 18 years, there’s also a couple other organizations Dill is gifting a supercharge additional funds to the account. 02:13 They’re putting $250 for the first 25 million children. And also another company was doing it as well. But there’s a couple others. So if you have a child, but they’re basically saying that if you contribute that $5,000 for the full 18 years or 17 years. 02:33 Uh plus that 1,000. When that child hits 18, they would have $377,000. If they continue to let it grow and work, they would have um an additional um two million dollars by the time they’re 65. 02:50 If you just put zero contribution just let that one thousand dollars grow over their next um 10 years from when it happens, that would be like $17,000. I’m not a financial planner. 03:03 I’m not telling you I’m I’m not gonna really take calls on how that’s all crunching or working because that’s not my expertise. Expertise. But to me, it is going to be taxable when the children take the money out, unless they use some of it for first-time home buyers, because there’s a exclusion you only have to pay tax ordinary tax i should say on that you don’t have the penalty involved there is some college credits you can get out um uh that you wouldn’t have to pay the penalty on um but ordinary income tax. So this is going to be uh interesting because it is not tax Deferred, yet when the kids take the money out, it is taxed. 03:40 So in theory, there would be some double taxation in my mind, unless I’m not fully understanding how this works It looks like the employer, if they put in the $2,500, that is deferred. But the money that we’re putting in as parents or grandparents or or something like that. 03:57 As far as I know, that is not deferred, but yet it would become this is being treated like an IRA. So there’s still some moving parts. I have a question on one of it would be is if I’m putting after tax dollars in, is there a way to track that so that 04:10 We’re not paying tax on that original contribution at least, not so much the growth, because the growth would be taxed possibly or not, but uh these are not Roths, these are traditional So this is a wonderful thing because normally we can’t start doing anything for kids until they actually get the first job. And if you haven’t gotten your first job yet, and normally seven or eight-year-olds or four-year-olds 04:31 Do not have jobs. Um, so this would be a way of adding money up until they really do get their job, and then Starting an actual Roth or an IRA, whatever you you find to be the best thing for them. 04:45 And then when they’re working, contributing with that. This will stay in the child’s name. The parents don’t have the ability to spend this money. It is in the children’s name. This is supposed to be a way of helping that generation. 04:56 So think about 15, 20 years from now All those kids that might have been fortunate enough to have, instead of buying 15 Xboxes over their lifetime and other things, putting the money into this where they’ll act actually get a really good start, maybe even have money to use to pay for their own college or to start their own businesses. This would be a serious start for that generation um that maybe right now they wouldn’t have that kind of start because normally, let’s be honest, the the parents wouldn’t be sitting on those funds, especially if there’s multiple children. The form of 4547 has to be filed with your 2025 tax return. 05:36 You have to elect to have that done. So whoever’s doing your taxes, if you know this needs to be part of that conversation, we need to have the conversation. Are you going to be doing this? 05:49 Do you want to have this account set up? I don’t necessarily unless somebody that’s listening and you can call in 615-737-9986. 615-737-9986. If you have a little bit more knowledge, if 06:05 If you’ve read something that might not be a pro, I’m not seeing anything because I mean there’s no mandate. You don’t have to contribute to this. You don’t have to do it every year 06:15 But again, if you happen to have an employer that might want to help with that instead of bonusing the money some other way that might be taxed, this would be not taxed. Maybe you have grandparents that are putting money into something or want to put money in or they’ve started a savings account for the children. 06:31 Maybe this would be a great way for for them to help. It doesn’t always have to be um the parents, but you know, I mean obviously it’s designed to help this next generation get a leg up. 06:42 So it’s called the Trump account. You do have to elect to be in it. Not every child is going to fit in it and not everyone’s Going to qualify, I guess, for it. Um, there I’m sure there’s limitations like everything else in life, but this is something you need to be bringing up with your tax person to make sure that they understand, you understand. what you have and where it’s coming and all that so that you make sure you have the right information going through Uh so that way, sorry guys, you hear the the dogs in the back there, but um but uh anyways um It’s a it’s a snow day. I couldn’t put them outside. 07:22 So um we just need to make sure that if you are filing your own taxes or you have your own tax situation that you have the ability to take and put that all um in the in the knowledge of what you have or who you have and all of that. So just make sure that we have that going forward and that you don’t forget if this is something you’re interested in in having this conversation with um your tax person because it’s kind of important all right so now let’s talk about um a couple of the other things that are getting ready we’re gonna get ready to file your 20 07:55 2025 taxes. We some people call it the 2026 tax season. Either way, you want to make sure direct deposit Is going to be basically something you probably want to look into. You’re going to want to make sure that you have reviewed some of the new tax laws, right? 08:12 Because we have a number of new tax laws that may affect you. I’ve talked to a couple. people this week in fact and some of them were all talking about um the uh the interest on new cars like oh I brought a new car 08:27 You know, and that’s perfect, you know. I mean, but does it apply to the situation? Are you able to do something with it? I don’t know because you have to have the FIN number, there’s information you have to understand, but you want to make 08:40 Make sure you have that information when you go in and get your taxes done because that kind of information is going to be key when it comes time to making sure that you’re not leaving Anything on the table. Another huge tax question. 08:54 We covered this last Saturday, but I want to again make sure you understand that nothing on your W-2s are going to change when it comes to overtime or tips. Nothing. You’re going to have the same withholdings. 09:06 You’ll be reporting the same information. Everything is going to be going through The secret is when you file your 2025 taxes, you will be asked, how many hours of overtime did you have? 09:20 What was just the overtime? Not the rate, but just the overtime. Um, and then also tips. How much did you receive and tips? And then based on your income and everything, you will get potentially some money back or applied to the balance due. 09:35 So Really important to make sure you’re watching out for all of this kind of situation because let’s just be honest, it isn’t something that we’re usually asked. A lot of employers were not set up, even though because this passed part way through 20 2025, a lot of them were thinking, oh, I didn’t have to really get ready for this until 26, but no, they backdated it to 2025. 09:56 And so having it in 2025 means that employers are really scrambling in some cases. to get that uh information. I know in our office we’ve worked pretty hard, but um you know I mean obviously in some cases people may not have been even reporting it as overtime. I’ve talked to a lot of employers where they just put in the total amount that they want to pay the kid people the the employers or employees I should say. 10:24 So you know this person worked you know 40 regular and 15 overtime they add it all together and they just put that on a sub and that’s all they did. Now many of them still tracked it manually. 10:35 So this year for 2025 the IRS says hey we’re not gonna really um penalize anybody because it was set up and it was went backwards. But you as an employer are responsible for providing those numbers to the employees. 10:51 It doesn’t have to be in box 14. It does need to be on a sheet of paper or something that you can provide to them because if you as an employee are just looking at your overtime on your last pay stub, you are going to be wrong when it comes to the amount you’re putting in there unless. you’re only taking a third of it. Now if you want to do that, you would be okay because a third of whatever that overtime dollar amount is is what you would be credited for. So you need to make sure that you’re looking and doing all of that correctly because if your employer, or maybe you’re not talking to your employer 11:25 You have your if you have your final pay stub and you do have overtime or tips, you just need to make sure that your number is going to match what might be being turned in by your employer. And I know many times people are like, well, my employer is not talking to me. 11:39 I left on a bad situation. I can’t get my W-2. Um, and if you don’t have your final pay stub, you’re gonna have a very difficult time justifying the number you put on if you don’t have something in box fourteen and your employer has not provided you a number because the information you’re going to have would most likely then be something that you’ve just kind of guessed at. And that’s not one of those categories you want to guess at. So Again, if you want to join the show, you can 615-737-9986-615-737-9986. 12:14 We’ll take a break. We’ll get back to some phone calls and some more about coming up tax issues. after this break. We’ll be right back. All right. So for all of my digital currency people, this was in 2024 too, but they are pushing the 1099 which is the disposal of your currency. You need to make sure that you are filing all of that properly. What that means who sent it, who’s getting it, what all that means. So bottom line is when you have it, you have to have when you purchased it, when you sold it, what type of currency when you did the stable coin uh stabling your coins if you converted them into multiple coins because that seems to be the biggest misconception I have when talking to people about digital Digital currency, a lot of times they’ll say, Well, have you sold any of your digital currency? And they’ll say, No, no, I I didn’t sell anything. 13:04 I I um I only changed types of coins Well, anyone listening probably understands that that in most cases would mean that you sold your currency. So if you went bitcoin to lithium or lithium to some other, um, that is selling It doesn’t mean you have to sell it back to US dollars. 13:21 It just means that you have converted one type of coin for another. And at that point, you need to be reporting gains and or losses. And some of those losses may not be reportable or acceptable depending on the information. information you have and keeping track of the proper digital um what you know I guess the easiest way tracking your your cost basis, when you purchased, how long you’ve owned it, all of that. Because in many cases, it’s it’s not being tracked, you know? 13:47 So you have to have the ability to track your current If you don’t, your cost basis is zero. That’s what the IRS has ruled. So if you can’t prove that you purchased this because you purchased it for different types of conversions back 14:02 10 years ago and you weren’t tracking it because you thought you were going to be kind of off grid unless you have ability to personally recreate And follow that trail and all those and then making sure you reported the gains as they came through. Because I again I’ve had many people that have been with uh digital currency for 10-15 years but for years they were not reporting it. 14:27 So any growth, anything they had, you have to go back to the original purchase. In some cases they won. They were gamers and they they actually won the money through doing different things. 14:37 So there was no basis. then the then it became valuable and then going etc etc but unless that was reported and that gain was reported you are not able to then say, well, here’s my basis as of today. 14:51 That’d be kind of like getting a step up in basis before you even pass away. Doesn’t work that way. So you want to make sure that you have all of your digital currency. You want to make sure you’re doing the 1090 and following that through. The salt tax deduction, I said, should say salt deduction. We have that on our schedule A. We would basically consider that where we have our our state income tax, um, you know, your property taxes, um, in some cases personality taxes. 15:23 We don’t get we don’t have a personality tax in Tennessee from the purpose of tax deductions because we don’t have a state income tax. So all of those. So we have sales tax and property tax. 15:34 That’s the two things we actually get to deduct. We cannot deduct our car titles or our car fees, our titling, um, because we don’t have a state tax. Therefore, you’re not paying something that is actually deductible. 15:49 That’s just a fee that you’re paying out there so again very important but it has gone up so we now have 40 000 per return which means if married finally separately you would each get 20 um otherwise 40 it was 10 so This is huge, especially for people that might have state income tax that might be listening. I have people in California, I have people in New York. 16:12 Those are the two larger, higher incomes. Um, and in both cases, they were leaving a lot of money. I I’ve told you about my brother, he pays about sixteen thousand a year in just state income tax besides his property taxes. 16:23 Um and he was only allowed to get I get 10,000 of it. So he was leaving quite a bit of money on the table. Now we have that. Um the only thing is that there is an adjustable income overall of 500,000. 16:35 So if you’re in the higher income brackets, you may have limitations, but we’ve had limitations. on the schedule A anyways. So that’s that’s an important thing for making sure you have the ability to do what you knew when you’re doing it. 16:49 We also have, of course, the $6,000 per a person over the age of six. Over the age of 65, 6,000 per person that you’ll be able to have. I believe that’s falling on like line 13. It’s a separate deduction. 17:05 Initially we all thought it was going to be added to the standard or itemized deduction. It is a separate line that’s kicking in. for that so we can track that separately so you’ll have that 12,000 and then whatever your standard or itemized deduction might be will still be whatever it is. 17:23 You do get that extra 2,000 if you’re single over the age of 65 or 1700 if you’re married each uh to to be able to um get that additional uh credit on your on your itemization or standard deduction. Um well they wouldn’t Anyhow, so if you have questions, you can certainly join us today, 615-737-9986, 615-737. 17:52 Taking your calls, talking about all the different things we need to talk about. 2025, the standard deduction. In 2025 is 70 cents per mile, 14 for charity, 21 for military and or mil medical. 18:07 That’s actually down a little bit from uh 2020. 23, but 24 is the same. So um, but 70 cents. It’s getting so important to make sure that you are tracking your miles correctly. Every mile is becoming a huge I mean really think about it 70 cents out of every dollar that you spend on your car will be a tax deduction for every mile. Um so You need to make sure you’re using something. 18:34 I use mileage IQ, not attached to it. I know online QuickBooks also has a mileage guide that you can use anywhere because this is also more and more money going out means higher the higher audits likely to be on that category Not worried about it if you have a proper log. 18:53 If you don’t have a proper log, then you should probably be a little worried because you need to be able to justify the deduction And walking in and saying that I I think I drove about 25,000 miles isn’t going to justify anything to the IRS other than totally disallowing you from that that they will completely disallow. So don’t do that. 19:14 Make sure you’re tracking your information, make sure you know what you have going, and then make sure you can go from there and and track what you need to track in doing uh the basic expense for all of those trackings. And remember again, employees, people with W-2s cannot deduct Miles. 19:33 We have no place on the tax return to deduct it against a W-2. Even if your W-2 basically says that, you know, you’re driving 15,000 miles a year. It’s built into your wage. It is not a deduction. for you. It is just part of your wage. Therefore you have to do what you have to do, but it’s not going to be something that you’re going to deduct off the off of it and same thing for home offices. 19:58 Uh home office is great for anyone that has a 1099 or is self-employed, but anybody that isn’t employee and you’re working from home and you’re like well I’m having to use my electricity and I have to set up an office and I have space that I having to use for my employer, the IRS has basically come down and said, yes, you do, but you’re not having to drive every day to go to work. 20:22 Therefore, they’re not considering any type of home office expense. for those employees. So again, all of that should be built into your wage. There is no deduction. So anybody has a W to and that goes for my truckers or any of them you don’t have the per diem you don’t have any of the um uh overnight stays and things you might have been able to to take if you were a 1099 as a W-2, you will be only taking what is there and then itemizing your usual mortgage interest, property taxes. and charitable deductions are the major ones that most people itemize. 21:00 So just making sure that we have, you know, that information. information because that is and again you have to have quite a bit of money to actually itemize. So um you know how do I you know inform know, how do I do it or you know, when should I do it? And anytime I have a new client, I always double check it. But most of the time, you know, if you’re a single guy and you got less than 21:22 $15,000 in interest, property tax, and charity, you’re probably not going to be itemizing. Um but if you’ve got 25, yeah, you’re gonna be itemizing So, you know, making sure that you understand how that works and what you’re gonna do and when you’re going to do it. 21:39 So new car loan interest deduction, which vehicles are you buying and qualifying? So far, the average car price in twenty 2026, they’re saying is averaging about 50 grand, uh, five-year loan, 232. 21:53 Um, so what the biggest thing on that is it has to be assembled here in the United States And it has to be on a loan. It can’t be a lease, needs to be a new vehicle, and it needs to um have an you know have to be paying interest. 22:09 Most loans would be for interest, but you know, some some have zero percent interest. interest and then you will need to provide that thin uh thin a fin number I believe is f I n number I’m sorry vin number fin number uh for the vehicle so that you have the ability to you know take that off some are as high as 70 seven percent they’re saying so this should give you i believe uh up to like ten or twelve thousand dollars in interest so it is a viable usable number you just need to make sure that it’s something that is going to apply for you. Don’t just go buy a car because they’re going to pay the interest or give you a deduction for the interest. Keep in mind, whenever you hear the word deduction, that is not dollar for dollar, right? 22:52 It I mean so if you if you’re in the twenty percent tax deduction and you spend ten thousand dollars in interest, you will get a deduction for two thousand dollars, which means you spent eight thousand dollars that you’re not getting any credit for. So it is not a dollar-for-dollar situation. 23:08 So never go into debt just to try to find a tax deduction. Never ever a good plan. Seriously, never a good plan. So if you want to join the show, you can 615-737-9986. 737986 is the number here. 23:29 Hopefully you guys are all staying nice and warm. We have a pretty snowy uh day outside, at least here in Spring Hill. It is Um definitely got some snow on the ground. So we’re gonna follow up, but we’re gonna take our second break here. 23:41 If you guys want to join the show, or you can also email Friday at drfriday. com Um we can get that on the show as well. We’ll be right back with the Dr. Friday show. Alrighty, we are back here live in studio. 23:54 We got Andy on the line. I think he held through the break, which I appreciate. What can I do for you, sweetie? Okay, no problem. That happens. Associated with all the craziness. Well, and if you want to call back, you can. 24:05 Otherwise, I will keep it going So I did want to talk a little bit about the I I got an email and someone asked, what exactly can they deduct on the interest from their car? So let me get a little bit more detail first. 24:17 You have to purchase the car after December 31st, 2024. So basically as of January 1st of 25. It has to have a lien secured against that loan You cannot have refinanced or done some sort of jerry rigging to get it. 24:34 It has to be secured against that car. And it must include a valid identification number, a legitimate lender or dealership, and the interest is paid during that year. You So some cases 24:47 Sometimes people will accumulate interest and if they pay it all off, they’ll forgive it. It has to have been paid and applied for that year. In fact, you should have a form. That would show what your balance and how much interest you have. 24:59 It has to have been manufactured and mainly used only on public streets, two wheels or more, cars, minivans, SUVs. Does not allow for RVs or campers. The gross weight must be under 14,000 pounds, and it must be new 25:17 Used cars are not qualified for this. It must have an original owner. The vehicle is primarily used for personal use. And the income uh and you must still meet the income requirements. 25:28 You will get which is $100,000 for a single person, $200,000 for a married couple, up to $10,000 interest. And then it will work its way out. So if you have $105,000, you might only get $5,000 of interest deductible. 25:45 So well give a little wiggle room there but that hopefully will make it work again the whole secret is new car you have to have a lender that is actually showing this interest paid And then the ability to go from there. And it must, thank you, Donna, and the fin must start with one, four, or five. 26:05 There you go. See this? Well, I couldn’t do the show without Donna. I’ll let you guys know that. She’s a sweetheart. So anyways, one, four, or five, the fin number must have those numbers starting with, right? 26:17 Must start with those. So okay, so hopefully that answers the basic questions for most individuals. But if you have more questions, you can certainly um Email us or give us a call Monday and uh make sure that you have already set up your tax appointments. 26:34 Let’s just be honest. If you haven’t set up your tax appointments you’re probably going to be in trouble. You really do need to make sure that you have if you you’re in the Mount Juliet area, you might want to just call Donna Blackwell. 26:46 I’m just being honest She’s awesome. We’ve known each other, gosh, I don’t even want to say how many years now. Uh Mount Juliet Taxes, awesome. She’s an EA just like me. So that means she’s totally knowledgeable. 26:57 In fact, you can see sometimes she’s more knowledgeable than I am in some of these things. Um, so if you um need to to find someone in the mouth, Julie, because you know I am actually in uh in the Brentwood area. 27:10 So that’s how we always make uh Donna, send me the number they should contact you directly at, or how do they make appointments at your place? Just so if they’re up in that area, they might as well call you direct. 27:20 So I don’t have to refer them up that way Um, so I can move that in. But if you want, so you know, bottom line, talking about EAs, Donna and I are both enrolled agents, licensed by the Internal Revenue Service to do taxes and representation. 27:35 All that means is that we basically um do taxes. That’s all we do. I mean, I’ve been doing it for 30 plus years. I think Donna’s right there behind me. She’s a little younger, but still basically in that same ballpark 27:47 And we basically don’t do, you know, we don’t do bookkeeping. We don’t do auditing. Now we have bookkeeping in my office. My brother does. But we make our our income by doing taxes. 27:58 That’s what we’ve studied, that’s what we understand, that’s what we’re constantly trying to figure out. Donna was the one that brought up the whole thing on the Trump um Trump credits for kids the Trump accounts. 28:10 Um I was still thinking this was only for people that had kids from, you know, 25 through 28. I never even put it out there until she brought it up that, you know, this is awesome for parents that have children. 28:22 They’re basically 17 and under and you’re looking for another way to put money aside for your children I doubt that, Donna. 615, if you guys are in Mount Juliet, or maybe you’re looking for someone in the Mount Juliet area. 28:35 Enrolled agent, totally important, okay, because if you are not, um, you’re just going to HNR block or one of the others, no disking them because Both Donna and I know people that basically have work for them. But if you’re looking for someone that’s there 24, well, I should say at least 365 days a year, when we do our taxes, we actually stand behind our taxes not give you a phone number to call afterwards. So if you’re in that area and you’re looking for someone, 615-773-2736, that’s Donna’s number 615-773-2736. I don’t know, she may be like me. 29:09 Our calendars are getting booked full, but um, you know, if you want to call, see if there’s an opening she’ll be a little closer to you in that area versus coming all the way down to Brentwood. And I will be honest, unless you are um a returning client at this point, we’re pretty much at our max So the advantages of being around for 30 years is that we seem to keep our clients coming back. 29:33 The disadvantage is that I’m always fortunate enough to find new people and making sure you guys get qualified help. And that’s something that I really want. Donna does taxes like I do. 29:44 She’s always doing her best and So as an enrolled agent, us girls have to stick together. But also seriously, if you are right now, a lot of you are just getting your documents together and make sure you have everything together right make sure hey did you get any of these new tax things where if you have a new baby do you have a social security number for example 30:04 Um, do you uh new car? Do you have all the information that’s required? If you have um tips over time This isn’t something that as a tax person, we’re going to magically be able to come up with those numbers. 30:17 Those have to come from the employers, which means a letter, the employer great thing would be is if they have it in box 14 But since this was such a change, employers are going to be waived. But we do need a letter from your employer or something that says this is the actual overtime and this is the actual tips that we’re reporting. 30:38 It’s so important because if we don’t have that, we can’t just guess it. We have no idea. It does no info on a W4 or W2 for that information. W-2 information is just going to have box one, three, and five, how much earn, box two, four, and six, how much taxes come out. 30:54 That’s it really. So box 14 is what we’re looking for, or we’re looking for something that gives us that additional detail. Sometimes if you’ve only worked and you got your final pay stub, you know, we could probably take a third of the overtime and assume that that was pretty much close number, but I would not be overly confident with that. I would much rather have the employer giving us those numbers because they’re going to potentially have to get that back from uh the government, you know, is going to eventually ask for that information. 31:25 So we want to make sure we’re matching. The last thing you want is your tax return changed because the IRS says, well, we can’t comply with this because we don’t, you know, we don’t have that same, it’s not matching our information Then we’re in trouble. 31:38 We can’t do anything with that if that happens. So all we need to do is just make sure you’ve got all of your information together. If you’re not sure, when you call either of our offices, we have a checkoff list. of what basically is going to be, you know, what you need, how you’re going to make things happen, all of that. And we can run through some of the things you might need to bring in If you’re you can’t really bring too much information to my office, at least, I’ll be honest. 32:04 I’d rather you have too much and me say no, that doesn’t apply than coming and then having to make a second appointment And then that’s gonna in many cases cost you more money because we had to do two appointments. Not a good thing. 32:16 So make sure you’re organized, make sure everything’s going through, and then you’re in good shape to have that going through and where you’re at. So 6153 7379986 is the number here in the studio. 32:30 615-737-9986 is the number here in the studio. Um if you are wanting to um sometimes I have people that call a lot of times and they’re wanting to find out, hey, I do my own taxes, but I really like someone to check them I’m gonna be honest. 32:49 Um, we don’t do that very much anymore. We basically end up redoing the taxes and then you can compare and see if it’s the same. But if you’ve done your own taxes and just the reason you want to have someone else do your taxes is because you think you owe too much money. 33:04 That that probably isn’t going to save you a lot of money unless you’re unless you’ve never done your taxes. But if nothing’s really changed, I had a gentleman that called this last week and he’s like, well, nothing’s really changed, but now I owe $25,000. 33:17 Yet I found out he got married in that last this next year. Last year he was able to claim head of household with his daughter. Now he’s married and he’s doing he’s gonna have to file marry filing separately because his wife um wants the file separately, he couldn’t claim head of household. So right there was a huge change. And after the conversation, yes, we were able to help him, but When people say things don’t change, a lot of times they really have. 33:43 Or you’ve ended up changing jobs and you find out that you were claiming married in three for some reason, yet you’re single in zero And you didn’t have enough money come out. And that is often the problem with a lot of us. 33:56 So again, want to make sure that you, when you’re this is the perfect time, guys, to look at your tax situation and say, hey. Maybe I need to be claiming single and zero. I don’t care if you’re married with three children, but you’re not having enough tax come out because either your spouse works or you work two jobs and enough money is not coming out of your wages to make it work. then that’s fine. But all you need to do is adjust your withholdings. Now it could be simply just going to your W4 and going into box four and say, you know what, I was short twelve thousand dollars this year 34:29 I need an extra $500 for a paycheck every two weeks coming out. So I have that $12,000 coming out of my check. So I don’t have a Huge heart attack when my tax person says I owe money. 34:42 Now is the time. Not waiting until April or May, when then you’re three, four months into the year, five months into the year, and then you’re making it or Worse, waiting until October when we finally file the final tax return, and now you’ve got a whole nother year of that same problem. 34:58 Even if you’re not filing your taxes, even if you’re saying, hey, you know what, I might not have everything, you need to do a rough workup to make sure that you’re not going to owe $15,000 on October 15th because you extended it. And also that means the next year, most likely, if nothing’s really changing, you need to do the same thing. 35:18 Now is the time to make those adjustments. All right, we’re going to take a break and we get back. We’ll do the last part of the show 615-737-9986 is the number here in the studio. 35:28 We’ll be right back with the Dr. Friday show. Mike’s hot. Thanks. We’re back here in the studio. And if you have any questions, you can. 615-737-9986 615-737-9986. So for all of you that are sitting here thinking, okay, I gotta get ready. 35:50 Tax season’s here. I gotta start planning it. If you’re single and you have $15,000 or more in standard deductions, again, that would be itemizing, which would mean charitable deductions. mortgage interest, property tax, sales tax. Those are the four big things that you would have. If that all exceeds $15,000, you will be itemizing. In a married couple, $30,000. Head of household $22,500. 36:17 If you’re over the age of 65, single filers will be $32,000. Married filers would be $33,000. 200 and then obviously not part of the deduction. If you’re 65 and older, for each person on, you will have $6,000 in addition that you’ll be coming in, but it doesn’t affect your standard or itemized deduction. 36:38 So it is a separate bonus deduction that’s on the returns. Um we have the loans, tips, and overtime. Again, I just want to make sure you can deduct up to $12,500 of overtime, $25,000. 36:52 And tips as long as it matches your W-2, right? It’s important. And if it’s not on your W-2, you need something from your employer. We need to make sure all of this is gonna. to come back um and and pass because you can put any number you want on the tax return and i’m sure there’ll be people out there fraudulently doing tax returns 37:15 Or and you know doing something. In fact, there’s a big warning on the IRS website if you look under frauds. Any preparer that basically says, I’m going to take a percentage of whatever I get you back 37:27 Or any preparer that’s not willing to put their name on a tax return is not a preparer. I’m just being honest. That’s a fraud. Those people are doing something illegal as far as I’m concerned. 37:38 I don’t know if it’s truly. I’m not a police officer, but if you’re paying me to do a tax return, I better well have my name on that tax return. Return to prove that I am the person that put that information on that. 37:50 If I’m not willing to put my name on it and it says self-prepare, but yet you went out and had someone else prepare it Then you could have prepared it yourself as far as that’s concerned. You paid somebody that’s not taking any responsibility. 38:02 And that is not right Same thing with anybody that’s going to take a percentage of your refund. Well, that’s your refund. A. My fee should be based on my fee. Whatever I charge you shouldn’t be different than the next guy that walks in the door just because this guy has a larger refund or more money due or less money due. 38:21 None of that applies in our world A true tax person is just like anybody else. When you go in, there’s a set fee for those services. Those services are going to be billed based on that, not based on how it affects your refund. 38:33 And if they’re putting in numbers that are not right, if you go in there and they say, hey, you know what? We can get you $10,000 back this year. And you’re like, oh my God, that’s awesome. 38:43 That’s totally great. But Are they doing it correctly? I mean, are they just throwing in $12,000 and $25,000 in tips and $1,200 in overtime and just saying, hey, let’s just take that money and see what happens 38:57 Keep in mind the IRS doesn’t have to come back to you for a couple years before they can correct this. And they will catch a lot of this. They’re going to have a huge audit going Because one of the reasons I think they opened up overtime and tips was to be able to see if employers as well as employees were properly being paid and reported. 39:14 This is a great way for them. People are all excited about getting some money back. This also opens up a huge reporting issue for employers and employees. So she on tips, employees are responsible to help report that. 39:26 It may not be coming out properly. And then then of course on um Overtime, many times people are paid straight time or paid cash under the table for their overtime. That way they they think they’re getting away. 39:39 But again When people are throwing numbers in on tax returns, this is going to cause a lot of questions, which means Federal Department of Labor, State Department of Labor will be very busy in the next couple of years I just guarantee, as a as a person that has also bookkeeping in her office, I am predicting in the next two to three years we’ll have large numbers of federal and state unemployment audits or or just employment audits because um because now they have more information this employer said this employee said he had this much in overtime yet you didn’t report that Now is that a fraud from the employee or employer? And they’re going to be finding that out. 40:18 So just making sure you’ve got those key changes Um oh I think I misstated uh single followers are 157. Sorry, married followers are 31. 5 and head of household is 23625. I’m sorry, I was using 40:34 2024 numbers, 2025 numbers for the standard deduction are up. There you go. And then if the the The they still have the other caps. And then we used to have the salt caps at 10 is now $40,000. 40:49 That is huge. I think a lot of my people, um, you we stopped having people um track their sales tax because between property tax and the basic sales tax they were hitting that ten thousand dollars. 41:01 Now I will say for people that used to track how much money did you spend on sales tax. It’s well worth having that conversation again now that we’re not locked into that ten thousand dollar mark. 41:12 I had many people that would spend, you know, ten, twelve thousand a year in sales tax But when you can only put in five because their property tax was five, it wasn’t worth the tracking as much as it would have been on all of that. IRA contribution 7,500 over the age of 50, 8600. 41:33 So those are some of the changes. Earned income credits. Updated tax potential credits and potential taxpayers for qualified children. The child tax credit portion up to 1700 per may be received as a refund, 2200. is the dollar amount that we have. Um so again, and you know, income does apply in that. I had a person that come in and she only had like, I don’t know, four thousand dollars earned income and she had two children and her refund was like, I don’t know. 42:06 $400 and she was quite upset because she’s like, well, don’t I get the $1,700 refundable credit? And you don’t get it just because it’s available, you get it because you actually had some earning earnings. 42:17 So again, one of those things you want to follow up with. All right. So we’re getting to the end of the show. Here’s what we need to know. Um e If you are a returning tax client to Dr. 42:26 Friday Tax and Financial Firm and you have not gone on our calendar, you do need to call our office Monday or Tuesday, depending on how weather is for you guys. It is a little snowy out there today 615-367-0819. 42:39 615-367-0819. And again, for anyone that is looking for a great Tax person at Mount Gilliet, you can call her at 615-773-2736 or call my office, be more than glad to get you that information. 42:55 Um, and then we have My email, friday at drfriday. com. Friday at drfriday. com. You can also just check us out on the web, drfriday. com. Pretty easy. D-R-F-R-I-D-A-Y. com. And um make sure you just put together a minute envelope. 43:15 Start your 2025 year, put everything that comes in. I know you’re getting a ton of stuff in the mail, but just make sure you’re getting everything put away nice and organized, right? 43:24 So you don’t have your tax appointment and find out, oh, I forgot. I had two W-2s. I only got one of them. And if your employer is not very community Then you’re going to need to figure out, and I don’t have a good answer right this second. 43:38 Maybe uh other people listening might have some ideas of what we’re going to do if an employer doesn’t provide overtime or tips And they don’t have their last paycheck stub that we might have some information on. And the employer’s not talking to them We will have to find out and hopefully we’ll also have some information from the IRS that will be able to give us a little more information on how or what we’re supposed to be doing. to submit. Also don’t forget, if you have a child under the age of 17, really look into the Trump fund. Even if you hate Donald Trump. No one says you have to like the man to like the service 44:13 This is something that you could start that may give your child a great leg up 10, 15 years from now, when they decide they want to go to college, they want to buy their first house Um or they just want to save it and just keep it going, keep uh, you know, moving it through and and moving it through as the market and just let it be managed till they’re 65. 44:33 That would be a huge um way for them to move into the next step of life and have those ex uh extra funds to to do it with. So um if you don’t know what I’m talking about, you haven’t heard any of this, just give our office a call. 44:47 615-367-0819 is the number. You can call us Monday morning. We’ll do our f uh best to get you some information out on your questions you have, or just email Friday at drfriday. com. 44:59 That really is the easiest way probably to get a hold or get some information on what you have or a well way for us to actually send you additional information um whatever your question might be. And then make sure that when you file your taxes that you’re using a good tax person. 45:15 You’re not just out there and you may be a good tax person. Person listening may be a great tax person. If you’re doing your own taxes, not a problem. Just make sure that if you have questions, that you have someone you can ask those questions to. 45:27 All right, we’re going to be winding up the show one more time. The office number is 615-367-0819. Hope you guys all stay warm and cozy and we’ll be here again Next Saturday at 2 b. As we like to say, cop ya later.

Dr Friday Radio Show – January 17, 2026

Dr. Friday Burke — Mon, 19 Jan 2026 20:58:07 +0000

Kick off the 2025 filing season with Dr. Friday as she walks through the additional senior deduction and how the new tips and overtime deduction works at year end. She stresses documentation, correct W-2 reporting, and the importance of keeping business and personal records separate. Callers ask about overtime calculations, hobby vs business income, filing status after a spouse’s death, car loan interest rules, and selling inherited property.

Summary Points

The extra $6,000 senior deduction ($12,000 married filing jointly) applies with income limits and requires joint filing if married.
Tips and overtime deductions are claimed when filing 2025 returns; W-2 withholding does not change and employers must provide totals.
Tip deductions are limited to tip-based occupations and net income; Form 4137 and W-2 reporting matter for compliance.
Employers and employees should keep signed records to avoid audits and mismatched tip reports.
Caller Q&A covers overtime premium calculations, hobby vs business rules for flipping/egg sales, head-of-household status for widows, vehicle loan interest requirements, and step-up basis for inherited homes.

Episode FAQ

Q: Do tips or overtime reduce tax automatically on my paycheck? A: No. The deduction is applied at filing time, and you need employer-provided totals to support it.

Q: Who qualifies for the senior additional deduction? A: Taxpayers age 65+ with required SSN and income limits; married couples must file jointly to qualify.

Q: How do I keep a side gig from being treated as a hobby? A: Separate business and personal payments, show a profit motive, and keep records; repeated losses can make it a hobby with limited write-offs.

Transcript

00:00 have some questions today it’s a beautiful saturday uh it’s a little nippy outside to be quite honest the 17th and we’re getting ready to go into a full-blown tax season we’re gonna cover a little bit of the questions that keep coming in i know the last couple weeks We’ve had um some different shows on, but let’s get into the 2025 tax season. We file in 26. 00:21 Some people refer to it as the 26th tax season, but We are filing the year of 2025. If you want to join the show, you can. 615-737-9986. 615-737-9986. So we’re going to do a quick run through of some of the changes and that people keep calling and requesting more information on. 00:42 Let’s talk about first What they refer to as the senior or anyone over the age of 65. You have an additional $6,000 deduction. This is only going to be for the years that you filed 25 through 28 at this time. 00:59 In addition to your standard deduction. So whatever your standard deduction is or itemized deduction, whatever that is, you will have an additional $6,000 deduction. If you’re married, $12,000 deduction. 01:13 This does have a income limitation. So if you are single, that income limitation is going to to be um 75,000 it will work its way up from there and married couples it will be 150,000. 01:28 The good news in that conversation basically is there’s no penalty for being married. And we have talked about that over and over. You must be a U. S. citizen. You have to include your social security number. and filing jointly if married. So if you’re married filing separately and you’re over the age of 65, you will not qualify for this deduction. So again, if you’ve got questions, you can join the show. 01:52 615-737-9986. 615-737-9986. And that way we can deal with your situation. So again, one more time, really quick, standard deduction, which the standard deduction basically for what single person. is going to be 14,000. Then you’re going to add another 2,000 if you’re single. So $16,6 plus you’ll get that $6,000 deduction. And if you’re married filing jointly, the standard deduction is $29. 02:25 2 plus you’ll get sixteen hundred dollars each. So That’s going to be $32,400 plus $12,000 on top of it. And this applies to both itemizers and non-itemizers. So standard deduction or itemizing. 02:44 Either way makes it no difference. You’re still going to qualify. You just have to be over the age of 65. Okay. This next one, I think I’ve probably taken 20 or 30 phone calls in the last 15. 02:56 20 days. This has to do with tips. There seems to be a slight misconception because people People were thinking that they were not going to be paying any tax on tips on or from their wages. 03:12 Let’s clarify, this is a tax End of the year tax deduction or um you’re going to get the money based on what happens at the end of the year because again, it is income-based. So your W-2, your employer is not going to change. anything from what you had been filing before. Effective starting in 2025, but if you’re an employer and you’re listening There has been several different things coming down the line, but bottom line is you don’t necessarily have to put this on they’re giving us a window. 03:49 So you don’t have to have it on the W-2, but you do have to provide. the information to the employees of what their um tips and this would also apply to overtime. We’ll talk a little bit about that because again, a huge miss 04:03 But on the tips that are being reported, because in box one, three, and five on the W-2, their tips could be in there. Now sometimes if they’re waiters or waitresses, some of those tips could also be on line seven, which you hadn’t already. already paid tax on this will be a huge relief for those individuals. This will be a maximum annual deduction of $25,000, um, which I think pretty much in Tennessee a lot of the waiters and waitress. 04:30 I think that will be a nice kick in there. Self-employed individuals deduction cannot exceed net income. So If you’re in, I don’t know, this let’s say you’re a hairdresser or a nail specialist or something and you get tips and you’re reporting these because you’re self-employed and you do have to be in a specific business 04:51 They’re not going to say, hey, you’re an accountant and you’re living off tips. That would be very wed, right? It’s not not normal. That would not be on the typical situation. They’re not going to allow someone like myself to report tips and deduct it. 05:04 It needs to be in a profession kind of known for tips. So that’s one of the things they’re going to ask for. Um You have to have a specific trade. It needs to fall under the 199A. An employee of an employer must have that, including social security number filing, joint, so married filing separately. 05:24 This is not going to qualify. You can be single, head of household, or married finally jointly. Married finally separately will not happen. Employers and other payers must report certain cash tips and the occupation of the tips to the IRS or SSA information. 05:43 Treasury and IRS will provide penalty relief for the year of 2025. We’re scrambling here as well and we use ADP, uh, but they’re changing. I mean, really a lot of this is coming in new to them. 05:56 So what happened in 2025 isn’t going backwards So again, effective 2025 through 28, same thing as we talked about with the seniors, qualified tips received through an occupation that receives customarily and regularly tips through December 31st of 2020. 2024. 06:15 I mean honor before December 31st, 20, and reported on W-2 or 1099. So if you have people that are being 1099 And this is going to be a little bit unusual. It’ll be interesting to see. 06:29 I I have not yet done a 1099 and reported tips on a 1099. because normally a 1099 is used for I provide a service, you send me back the money, you 1099 me because of it. So it is something that has to be other statements furnished to an individual like a 4137 that are individually directly reporting their tips. 06:54 So I’m gonna put a little clause out here. I think sometimes the IRS and the government gets pretty darn smart, even though I know a lot of people don’t like it But if you are an individual and you have not been reporting all of your tips, and I will tell you, long time ago, many, many Decades um ago. 07:17 But anyways, I was a waitress and I reported what I had to report. There was a lot more cash back in those days. Nowadays it’s a little bit harder because almost all bills are paid with uh credit cards and tips show up on those credit cards. But I think the IRS is looking for industries that may be underreporting tips. The reason this is so important is that an employer is responsible for paying a matching social security and Medicare, right? 07:44 Uh what comes out of your check is sometimes some of you that actually receive large amounts of of tips may know at the end of the year you almost always end up owing money because enough did not come out. So just make sure the form again is a 4137. 08:00 It is currently what they’re going to be used. This is a brand new form that’s out there. Social Security, Medicare tips, and unreported tip income. And then they’re going to need the name, the employer’s name, the cash amount that you’re saying. 08:14 So this is going to cause some pretty interesting audits in my personal opinion. I think the IRS is going to be looking at that to see exactly how that’s going to tie into what they know. 08:27 But again, employers you need to be reporting because if your employees start reporting that you did not report all of their tips, there’s going to be um at least a state department of labor, possibly a federal department of labor leading. May it not be this first year, might not be the second year, but keep in mind this is running from 25 through 28 and they have two years to audit. 08:48 So just putting that out there so you have that information. Making sure you know what’s going on and how that’s going to affect you because, well, it is going to affect your business possibly. 08:59 So I would start now making sure that all the employees that I had was reporting to you any tips, make sure they’re signing off on that. Make sure there is a paper trail so you can then justify what you put down on their wages and on their W-2s or W-2s. 09:20 And again, every week or every uh day, I know some people, whatever they have at the end of the day, have the employees report what said tips if it’s An employee then turns around and reports different numbers to the IRS, that is going to cause one of two things, the employee or the employer, or both to probably fall into an audit. This is going to be a big area. 09:43 I don’t think it’s going to happen until 27. Probably it’s going to give some time. They’ve got to process all of this make Making sure it’s there. But if you are a person that makes a lot of money and tips and it does not reflect properly on your W-2 and you’re gonna say, oh well, I can go in here and I can file the 41 09:59 37 and I can put all that money in there. They’re going to wonder why it wasn’t reported properly. They’re going to bring that up to not just you, but the employer or or both. So um 10:11 As an employer, you can protect yourself by having the employees sign off on tips reported that way, at least for the purpose of the employer you could do that if an employee um I would again I would just be careful I’m making sure that I’m not reporting numbers that maybe you’re inflating your income because you can now show that you made $25,000 in tips, which could be more than your wages in some cases, and then then that is probably if it’s not matching the W-2, I would be prepared that you need to justify that number. you need to show where it was deposited or used and processed. And the problem is if it’s on credit cards, that’s easy to do. But if it’s cash every day, I think you’re going to have a hard time really tracking that properly and making sure that information. 11:02 I mean that’s really the biggest thing. We just want to make sure that whatever we have going on, that we can document it. There may be some employers that are not even reporting tips. 11:12 And the people have said, oh, that’s great. I go home. I don’t have to pay any tax on this. Um and that’s what I think they’re trying to, that it’s a huge fraud area. So I think that’s what the government is looking for. 11:22 And a lot of times when people think that they can get more money back because they can show a higher income. I think that is tempting for those individuals. All right, we’re going to get ready to take our first break. 11:33 If you want to join the show, you can. It’s 615-737-998. That’s 615-737-9986. Go take your calls when we get back, or if you want to, you can also email Friday at drfriday. com, and I’m more than willing to to put that on the air as well. We’ll be right back with the Dr. Friday show. Hey Mike, can you hear me? Yeah I can Good. Yeah, I got you on speaker. Ah, much better there. Thank you. 12:07 Well what it is is I was just asking about the overtime. I heard you I just heard you talking about the tips. And I thought, I wonder if she’s already talked about how the overtime is supposed to work for last year, this year and all of that. 12:21 Thank you so much. Because that was actually the next thing I was gonna walk into anyways because that it seems to be the the more confusing situation than most, right? Because a lot of people thought they weren’t gonna have have to pay any overtime tax um or how it was going to come. They thought their paycheck was going to change. And again, it’s not going to change, Mike. Everything that we talk about, these are all going to be stuff that’s going to actually go in effect. 12:43 Really, you’ll see the refunds come. um when you file your taxes this year. Then you’ll get your refund for 25 and et cetera into 26. But the biggest thing people don’t seem to understand is that the overtime is really just time and a half, right? Or the halftime. That’s what you’re going to get credit up to twelve thousand five hundred single or twenty-five thousand jointly filing, assuming both people have um the overtime on their wages and there is income limitations. 13:14 Do you get overtime? Oh yeah. Okay. So hopefully hopefully assuming that you are uh making less than 150 single or 300 jointly, you should see some extra money on your um refund this year. 13:31 Okay, so th but they’re only gonna credit the half, not the time and a half. Exactly. Thanks for yes, that is exactly right. So if you’re making fifteen dollars an hour, um then they’re only gonna credit that extra or maybe make ten dollars an hour and you get fifteen for overtime, you’re only gonna get that five dollars, not all fifteen, for your overtime. 13:57 Wow. There’s always a catch, ain’t it? There’s always a catch. But the way you have to really look at it is how many years have you been working? Have you ever got any extra time? No. 14:07 So Yeah, but if I’m working time and I I work forty hours, so if I work ten hours overtime, that whole ten hours is Overtime, not just the half. Well, but they’re only giving you the extra I mean they’re basically saying all straight time, no matter if it’s overtime, double time. 14:28 I got people that make triple time sometimes But that’s straight time, whatever that is. Go ahead, Mike. Yeah, some people do, but I mean most of us only get time and well, I only got time and a half when I actually did that but I mean Yeah, I used to work for a place, but anyway, they used to do that too, but depends on the company and all that stuff. 14:50 But anyway. Okay, I was just wondering because I thought I mean the way it sounds, you know, no tips, no, no, no tax on overtime. Tips or no I know. Yep, you’re right. No tax on tips, no tax on overtime. 15:04 That’s exactly the way it’s worded. on the basic big bold letters of the one big beautiful bill. Then you start reading and they’re like, wait, only portion is the half portion of the time and a half. specifically says or in tips and then of course they caveat that with how much money and it has to be reported on a W-2 and or a 1099 again Anyone working for a 1099, you should be, you shouldn’t be getting overtime or straight time. All of that should be billed as if you’re a subcontractor. 15:35 But um I think the IRS is looking for loopholes. Well, I mean the good news is this, Mike, no matter what, assuming your income fits in, you’re going to get a bigger refund this year than you’ve had before. 15:50 That’s the positive I’m looking at in this whole thing because you know, the 35 years I’ve worked, or you know, whatever, I never got anything for tips and or overtime. So I think it’s a unique approach, but it is to a lot of people. 16:03 And thanks for asking the question Yeah, it does. Yeah, I’m glad I called. I appreciate it. No problem. Thanks, Mike. All right, take care. All right. You two. Let’s go ahead and hit uh Jennifer, I guess, next 16:16 Yes, hello. Hello, sweetheart. What can I do for ya? So I have a question. I do a lot of flipping on um on stuff that I just pick up and I flip it for extra m or double the money or whatever. 16:29 So some people pay me by Venmo. And I’ve got Then on then though I have like my family reimbursing me for stuff, maybe loans or whatever. And then I have like a small homestead where I sell my eggs and I get money from that. Some some customers pay me on Venmo. How am I gonna report um what’s an actual clip, what uh my eggs, the eggs that I sell and all the feeds that I put into that. 16:57 So it’s actually a losing business on that that behalf. And then deciphering it out what’s what’s family, what’s not um any kind of business related item. Well, I will tell you what the IRS will tell you is that Venmo has two pie sides. 17:13 One is for purple Personal family and friends. One is for business. You probably have everybody reporting to you under family and friends, even if they’re buying eggs or doing a flip, because you have one 17:24 Venmo account. You don’t have one for your business because there’s a fee if you turn it on for business, right? Um and there’s no fee if you use it between family members. So I would hate to tell you this, but the best way to do that would be having some basic accounting. 17:39 So when you’re done at the end of the the month or at the end of the year, you can say, okay, I sold 400 worth of eggs, I had chicken feed, I had vet bills, I had whatever, whatever it takes to raise chickens. I had to buy new chickens, whatever. 17:53 And you have the cost. So the 400 would be the income, the cost, and this would be potentially falling on a a schedule F because it’s a farming situation, not uh a business situation. 18:05 And then the other flip would be a schedule C in which a Assuming that you’re not doing it as a hobby, that you’re actually intending to make a profit, then you again would have how much money? Not just Venmo, but this would be cash, all the money. 18:19 And I know, I know you know this, but I’m just kind of saying this for everyone listening jennifer as well but all the money you make the IRS basically says we have to report it all doesn’t make a difference if it comes to us on a form if it’s all cash if it’s a Supporting your lifestyle theoretically, if you’re ever audited, they’re going to say, well, how did you afford this if you didn’t make any money? 18:39 Um, so but on the flips, you’re gonna do the same thing. I made $1,000 in flips, but my purchase was $700, and then I had to. By the rehab, materials, blah blah blah, repairs, blah blah and maybe you broke even. 18:51 Most people will say after two years, if you have a business like Flips, um And you’re not making a profit, then you’re really doing it more of a hobby. I will let you know that, Jennifer. 19:01 That’s what the IRS would say. Two out of five years If you’re not making a profit. Oh, they’ve had a hobby. And if it’s a hobby, the downside to that is they don’t allow you to write off your expenses. 19:14 So we don’t really want a hobby because we want to be able to claim our income and expenses and in your case possibly a home office um whatever you know to to bring it down but uh and you know so the answer to your initial question would be You need to be tracking because if ever audited, they’re gonna say, well, how much money did you make? And you’re at the say, Well, I I sold 500 eggs. 19:38 I have no idea. I’m throwing a number out there, you know, and whatever that is. And I sold some chickens and I, you know, whatever. And same thing with the flips. The flips are probably in some ways trackable because you’re probably using um. 19:53 Facebook or some of those places to buy the original and there is a way of them tracking all of that. Um but it also for your purpose you need to make sure you keeping receipts on everything you purchase because we’ve had a number of audits in the past number of years where people would go out and and just buy things at garage sales and things like that but they didn’t keep a receipt 20:23 You need to carry a little receipt book with you, Jen, and you need to write down the address and the garage sale that you went to and then how much you paid for it and maybe even just take a picture of the two things so you have proof of what you you know what you did so that way you have a paper trail because I’m sure there’s a lot of cash going especially for garage sales right most people don’t want you to write a check or anything. They want they want the cash. So you need to make sure you’re protecting yourself more than anything else in that conversation. Because you know they’re not I mean the odds of being audited are very low, but th you know if you’re if you are doing more than what five thousand dollars now, I think a ten ninety 21:06 Venmo is funny because again, if it’s all done under your personal um then I don’t believe they’re 1099 because you’ve said that this is not a business situation. This is um I’m sorry. 21:20 So the threshold of six hundred dollars for reporting is no longer instead it’s twenty thousand or two hundred transactions is the current threshold for a Okay, well I don’t think I’ve made twenty thousand, but I definitely have done over two hundred. Right. 21:35 So if you’ve done over two hundred, you may see a 1099 Because even if it’s less than 20,000, they’re basically saying anyone that does 200 transactions throughout the year is basically running something other than friends and family. family. 21:51 Okay. Okay. Thank you. Sorry girl. No problem. Thanks for calling though. Great question. All right. Let’s see if we can get Lisa on and off before the break so she doesn’t have to wait for it. 22:03 Hey Lise, what can I do for you? Hey I have a question about my filing status for 25. I was widowed in twenty four And I still have two uh children even though they’re both adults that live at home. 22:19 One is disabled so he’s gonna be there, you know, forever because I’m his caregiver. So would I be head of household for twenty five? Definitely be head of household, yes. But at least with the I mean depending on the second child, with the disabled child, you will stay head of household because I’m a 22:38 Assuming that child’s only probably receiving Social Security benefits. If if they’re receiving that, maybe some well we we are both receiving survivor benefits off of my husband Right. 22:49 And that will that’s perfect. And then if the other child is what seventeen or or under, they may be receiving something. I think they get too old, they don’t get the benefit. Yeah, no, he’s not getting he’s just graduated from college so he’s not getting anything but you know he’s still living at home currently. 23:06 Uh so that one the head of household may come into play because he may have earned more than twelve thousand dollars. Yeah. No. The adult child going to college. Maybe not. Then if he hasn’t, then he can be your dependent as well as obviously the child that is 23:22 Disabled. Both would be. Okay. All right, good. And but so head of household is my best option. Oh yes, definitely. Yeah. Okay. All right. I just wanted to make sure. No problem, sweetheart. 23:34 Thank you. All right. We’re going to take a quick break here and we get back. You guys can join the show at 615-737-9986. 615-737-9986. We’ll be right back. Alrighty, we are back here live in studio. 23:52 If you want to join the show, you can. So we have covered no tax on tips, no tax on overtime, and kind of the exclusion that come with those. It always sounds great until we get into the details. 24:09 Now let’s talk on no tax on car loan interest. A lot of phone calls on this one as well. So let’s talk effective 2025 through 28. All of these are pretty much the same time period originated a car loan after jan uh december 31st 2024 so if you purchased a new car in 25 24:29 You should be good, but let’s talk about the exclusions. Individuals may deduct interest paid on loans used to purchase a vehicle for personal use. This is not something that’s going to happen. 24:41 Or if you tried to or if you purchased a lease vehicle, that isn’t going to qualify. Phase out for individuals that are making over $100,000 and for joint filers that make $200,000. 24:52 The origination has to be after December 31st, 2024, was used to purchase an original a vehicle originally used by the taxpayer, was secured by a lien on the vehicle, and was for personal use non-business. vehicles. 25:08 If the qualified vehicle loan is later refinance, interest paid on the refinance amount is generally eligible for the same deduction. Uh qualified vehicles, a car, minivan, van, SUV, pickup truck, or motorcycle that has a gross weight rated in less than 14,000 pounds, which is Pretty much all cause, even my big old uh truck is is under fourteen thousand. 25:32 Underwent ve uh final vehicle assembly in the United States. That is a key thing Went to the final assembly, had to be here in the United States. Vehicle label on the dealer. When you come in to get your taxes, you need to make sure you have the vehicle ID number or VIN number. 25:53 And there has to be a National Highway Safety Certificate with a decoder available for both itemized and non-itemized deductions. You must have the FIN number and the year you claim the deduction. 26:05 Lenders of other receptions and interest may be filed. So again A lot of times when we’re doing taxes, we’re not usually asking for your interest paid on a vehicle because, well, let’s be honest, we haven’t been able to deduct interest other than mortgage interest goodness for 20 plus years. 26:23 So very important that you if you purchase the car in 2025, the car was assembled here in the United States. You can have the FIN number and therefore you can go forward and see what you have on that one. 26:38 And then the last one that’s going to deal with pretty much a straight across the the table is the health savings account expansion Telehealth is now available that removes the care service now is available for higher deductible plans. People can still contribute to the HSA even after telehealth before meeting the deduction. 26:58 The rule is permanent for plans. that started on or after January 1st, 2025. Expanded bronze and catastrophe plans starting in January 1st, 2020. Um I would definitely say that the Treasury and the IRS invite a public comment. might be something if this at all applies to you or maybe you sell health savings accounts March 6th of 2026 they’re going to have a big forum and you’ll be able to participate in that to find out. I am a huge advocate for health savings accounts. 27:35 Just think that they’re very good, especially for the self-employed and also for many of us that don’t really um do much when it comes to medical. I’m I’m blessed, so I don’t have a lot of out of pocket and when I’ve had a few things it has been easy to deal with because I’ve already had a big chunk of money sitting in my my health savings account and my program that I have, my normal health insurance, I think, is very limited. 27:59 I mean I have people that you know I’ll pay four or five hundred dollars a month. Mine is less than two hundred a month, but I do have the higher deduction. on that. So I just want to make sure that we understand where that’s going and where we’re going to go with that. 28:12 So um again, so if you have a hill savings, no tax on car loan interest. No tax on overtime, no tax on tips. Let’s clarify. We all know that that word no tax on has caveats, that there is going to be some exception to that. that and to make sure you understand what that is. You know what? Let’s hit uh Steve real quick while you’re at it, uh RJ, if you don’t mind. Thank you. Hey Steve, what can I do for you? 28:39 Hey Dr. Friday, I always enjoy your show and I learn a lot. But I got a got a quick question for you. Okay, uh I I had a brother and uh him and I inherited a house from my mother in 2017. 28:53 She passed or she passed away in two thousand seventeen. Okay. Then my brother passed away this year. We were tenants in common with right of survivorship. So I inherited that house and actually sold the house exactly one month after he passed away 29:11 Uh if I understand the law correctly, I have zero uh oh or I inherited I have zero gain because I inherited it at the Whatever the new basis was. Both of you guys gotta step up in basis because neither of you own that house until she passed, right? 29:36 In seventeen. Okay. And then in twenty twenty five, since you owned half and he owned half You inherited his half, but you only get a step up on his half. You don’t get a full step up because you were now an owner of 50% of that home before he passed away. 29:56 So you will only get a step up in basis on the step up on what you just inherited, which would be his fifty. So you need to know what the house was worth. Hopefully you already know that at the time mom passed. 30:09 Let’s just use an example of $200,000 because it’s easy math. That was $100 on you. a hundred on him and let’s say now in twenty twenty five the house was worth three hundred thousand dollars so his share then became one fifty so you would get an additional step up, you know, 150 and 100, so your value would have been $250,000 because you inherit his at the full value of his share of the step up. Okay, I do understand that. Now let me ask you this question then. 30:41 This house it was in marginal condition w when we inherited it in twenty seventeen. He continued he never got married. He always lived with my parents And so he continued to live in the house. 30:56 Well, the house further declined in you know, in its condition. I and but I do know there was there was a whole lot of, you know, property value increase uh e from two thousand seventeen till today. 31:09 Uh on a standard property, but it definitely decl I mean it just needed a roof, it needed a central heat and air system I mean, is that gonna be something that uh Well I mean it really comes down to is what was the value of the house and then what did you sell it for? Because what you’re sounding like you may have gotten out of it without having to you I mean theoretically you could have invested money, not saying that would have been a good idea at all to improve the property. 31:36 You may have to do some improvements just to um clean it up or whatever after he passed away. But anything you have to put in the house, that would be a deduction on top of, right? 31:47 Because you had to improve the property. Uh and then I guess the the biggest question comes down to is what did you sell it for? And this is something you can call my office for. We don’t have to put it all on the radio necessarily 31:59 But whatever you sold it for, the question’s gonna be, because I’m assuming you didn’t get top value for that property. I’m just assuming that because You know, it sounds like it’s didn’t y yeah, did not because it was in such poor condition, I just auctioned it off right. 32:14 So but it was probably a lot more than what mom left it to you at. But uh the question is what was the difference which Between mom and w 17 and 25. Because like you said, okay in Tennessee, 20 and 21, we all saw unfortunately 32:30 Unfortunately, our property taxes go up quite a bit because of the value that all the property apparently just overnight became worth a lot more. We have to thank all those Californians that love us here um for some of that. 32:44 But you know, but we need, you know, honestly, we need to sit down or you’re tax person, you need to kind of sit down if you’re doing it yourself, whatever Get the the starting number, what you inherited at, and then find out what and the person that sold it might be able to give you some comps of what that house would have been worth Had you put it on the market, um, you know, what other houses in that area were selling for? 33:06 Because that’s what we, you know, a rough appraisal. And then the fact is you may have sold it for undermarket Because theoretically you wanted out. You knew it was going to be costing you more to maintain and to probably take care of than it would have been to hold out, do some things and just 33:23 You know, it’s just never easy. But that’s my two cents. But you need to get all those numbers. And a lot of times a real estate agent, especially if you paid an auction house, they can give you some estimated comps of what it would have been worth in what was the market selling those homes for. 33:38 Right. In 2017. Right. And then again in 25. Because, you know, we need both those numbers to give you a decent idea of what your real basis is in that house. Okay. Even though the what what I even though what I receive for it at auction doesn’t determine okay, well that’s what it was worth since you had a 34:00 Ready, willing, and I will buy at all. Not really, because an auction means that you took the highest bid that was available that day. Had you been willing to possibly put it on the market or do something, you know, they call that a flash sale in essence. 34:14 You may have put a minimum out there saying, hey, I’m not going to sell it for less than this, but you did not probably take the highest that could have been available had you been willing to play the market. Okay. 34:26 Auction doesn’t necessarily mean it was the highest price. Okay. Well, uh not not exactly the answer. I was looking I know, I’m sorry. So sorry. All right. That’s the way it goes. Uh I know. 34:38 All right. Thank you very much. Have a good one. No problem. You too. All right. We’re going to take a quick break here. When we get back, if Eddie can hold on the line, that would be awesome. 34:46 If you guys want to join the show, we’ll have a one more break after this. 615-737-9986. 615-737-9986. We’re going to take a quick break here and for any of you that have no idea who you’re actually listening to I am Dr. 35:03 Friday an enrolled agent licensed by the Internal Revenue Service. I do not work for them. I am licensed by them to do representation and taxation So if you need help with those converts, that’s who I am. 35:13 All right, we’ll be right back. And Eddie, I’ll get right to you. We are back here in studio. This is the last part of the show. So let’s hit Eddie and see if I can help it. Hey Derek Friday. 35:26 Hey buddy, what can I do for you, sweetie? All right, about three. You had a commercial on your ads about TBI, something to do with real estate. Or TIB or not ringing a bell yet. I mean I’ve been listening to my own ads, uh prepping the new things. 35:48 It was about the real estate though, that they had new tax law changes. Oh, on real estate For Tennessee? I mean like for Go ahead, keep talking, Eddie. We’ll get it in. Okay. All right. 36:04 Well, I’ll go on to the next thing. Life insurance, is that taxable to the receiver? 99% of the time, no. Sometimes there are some annuities that have life insurance tied to them, I have found, and some of that can somehow circle back around, but normal typical life insurance when someone passes away becomes tax free to the person receiving it. Okay, cool. And what about property sold at an estate sale? Uh property sold in an estate sale, meaning that someone passed away and there’s an estate sale? 36:39 Just making sure I’m correcting that. Okay. So yes, in most cases, property um kind of like when I was talking to Steve, when someone dies, everything gets a step up in basis. your property, your car, your furniture, all of that, right? 36:53 So when you sell it pretty much immediately after the passing, that’s basically considered considered a wash unless there was something found like a collectible or you know and didn’t get appraised or something like that that may have a actual auctional a a higher value than some of those you would still get a step up in basis, but sometimes people will hold on to them and then they’ll actually sell them later and make a profit. 37:18 Yeah, which one’s better, selling immediately or taking the profit? Well I’m I mean to me I I would always take money. Sorry. You know, because taxes on most things if if you let’s just say the tax on that is 20%, you’re still going to put $80 more profit than doing a fast or a faster sale just to get it out. 37:40 But sometimes you don’t have control. Estates are often because there’s many people inheriting that sometimes they don’t let you pick and choose what’s going to come. But if you’re like the only person inheriting, then you have a lot more control in saying, hey, wait, this person’s got gold this person’s got antiques you would be better to sell those to those particular collecting higher market areas and it could take you a year or two which means it could I mean like gold could go up or down you may even Leave it in a safe for the next generation in some cases. Yeah. 38:12 All right. Well so much. Have a good one. Hey, thanks for holding through. I appreciate it, Eddie. Thanks. All right, guys. We are going to wind up a little bit of the show. Let’s talk about one or two more things. 38:25 The big thing I haven’t heard a lot about is the Trump account under the the Working Families Tax Act that came out kind of part of the OBBB, but it’s a different one that came. Parents Guardian and others can establish Trump accounts for eligible children. 38:38 Trump accounts cannot be funded before July 4th, 2026. We can hang up on Eddie if you want. The federal government will make a one-time $1,000 contribution for each child account. And authorized contributions for individuals and employers are up to $5,000 per a year. 38:58 So wait, the government’s gonna put a account in your child’s name for $1,000. And then every year you and or your grandparents’ parents or your employer could put $5,000 in. An employer can contribute. 39:14 $2,500 per year towards an employee’s Trump account without it counting as taxable income. Think about this. Wait a second. I’m an employer. I want to really help bonus out some money to my employees. 39:26 But if I put it on their paycheck, you’re going to get a ton of money having to come out for taxes. But wait, you have a newborn baby and you’re you’ve got a Trump account set up and you’re like, wait, let’s put that $2,500 over here and let it grow. 39:40 Sooner or later you need an account for your child to go to school, whatever, and that money can be. Funds will be invested through certain mutual funds trades. You’re not going to have any control over this money, but think of it as a 401k or an IRA you really have very little. Generally money cannot be withdrawn before the child turns 18. After that point the account is treated like a traditional IRA or similar, which means there would be penalties if anything comes out before the age of 59. and a half. The eligibility, the child, I do believe needs to be born in 2020. five so it it’s for newborn children it’s not for just every child um let’s see if it tells us when the account has to be established because I think I I heard a seminar where some 40:28 Someone said that the child had to be a newborn child. It wasn’t like for every child under the age of 17 or something. And there is some additional maxes coming out. I want to say it was Microsoft or Elon Musk. 40:41 Somebody was matching. some of these contributions for the first 150,000 or million or whatever. Okay, they count before January 1st calendar year for child that turn. Okay, count generally cannot be coming out. So we will get more detail on exactly how that’s going to happen. It’s not going to happen quite yet because it’s uh they’re not going to allow us to do much with that until after uh July, which will be after tax season. You also have a beginning in December 31st, 24, up $5,000 the inflation for adoption credits. So that’s going to hit inflation instead of doing all the other good things. 41:19 There are so many changes, but I think most of those are going to be what you needed Keep in mind that a lot of the clean vehicle credits and the home energy credits, most of those expired on December 31st, 2020. 25. 41:35 So um if you did do anything in 25, you want to make sure that information is also put into your little packet so that way when you go do your taxes, do it yourself or have someone else help you with those taxes that you have them in the right place and you’re doing the right thing and you’re not sweating it because you’re like, oh My gosh, I forgot this. 41:55 I forgot that. You know, again, it is a little bit of a crazy um year. We’re gonna have a lot of different things. And I know many of you are looking at your paycheck thinking it was going to go up because of the tips and or uh overtime and again none of that is going to change on your paycheck the only place you’re going to see any additional refund or additional money is going to be from the IRS when you file your taxes. It’s going to be a larger refund. at the end of the year. And you know, of course, for some of you, this might be a perfect time to think about if you haven’t filed taxes in a number of years and you happen to be a person that works with tips or overtime, um, it may be a way of helping reduce your tax bills because your refunds will go back to any back tax anyways. And so it might be a good time to think about do I want to go ahead and address back tax issues so that way let the IRS kind of give you these extra funds and then use that money to pay them. 42:52 It’s not really coming out of your pocket because you’ve already lived the whole year with the paychecks that you have. All right, so let’s go through the numbers. If you are a current tax client of mine, again, if you do not have a tax appointment, please call our office on Monday, 615-367. 43:11 0819-615-367-0819. That way we can make sure that you have an appointment or if you just uh also you’ve probably received a lot of things from the lockbox. If you don’t know what that is or you you’re a client and you need your lockbox, again, feel free to contact us on Monday, 615-367-0819. 43:34 There is a calendar on the website. If you need to set up an appointment, if you’re new, we usually try to at least get an intake so we make sure we’re a good match for you. But We still have some appointments, so we’ll do our best to get you in. 43:49 And then obviously if you’re if you’re working with back tax issues or those kind of things things. I will tell you the IRS closed down in in November and they will reopen tax day on January the 27th. 44:03 And that’s when we can start e-filing. actually doing uh completing tax returns. Not that we’re not doing them, but um that being said, it seems like we’re not getting a lot of information on like 2848. I don’t know if anyone else is having this issue. We seem to be having a very slow fulfillment of that form. And I’m not too sure why, but it does seem like it’s happening. 44:26 So, um, but we, you know, if you need help dealing with IRS, dealing with collections or audits, that’s what we do all the time and we’ll be more than glad to help you out. If you would like, you can also email Friday at drfriday. com. That’s Friday F R I D A Y at D-R-F-R-I-D-A-Y dot com or just check me on the web, drfriday. com. Pretty easy. D-R-F-R-I-D-A-Y. First name is Friday. That’s why we keep carrying that over there. 44:59 And if you um you know need help doing your taxes, if you have someone that needs help and you don’t know where they can start, trust me with the doing this 30 plus years. We can help you help them get organized, make sure they know what they need and get everything going. 45:12 It’s not as stressful. I do my best at least to keep it less stressful than necessary. A lot of people will stress over taxes. I totally get it, but we can work together and make it a little less stressful for you. 45:23 I hope you guys are enjoying this Saturday. It’s a little nippy outside, but you know, it’s January 17th and You know, we expect it to be a little bit nippy. And for all my bee lovers out there, hopefully your hives are thriving. Um, and uh we are going to be here again next Saturday and hope you guys enjoyed the show. Cop you later

Dr. Friday Radio Show – January 3, 2026

Dr. Friday Burke — Tue, 06 Jan 2026 12:30:03 +0000

While taxes are usually the star of the show, Dr. Friday takes a detour “off the grid” this week to discuss a critical component of business health: cybersecurity. Joined by Matt Folker and Dennis Buzard from Innovative Solutions Through Technology (ISTT), Dr. Friday explores why small and medium-sized businesses are often the most vulnerable to hackers. From “sniff tests” for emails to the dangers of leftover COVID-era remote access, this episode is a must-listen for any business owner looking to protect their data, their employees, and their legacy.

Key Summary Points

The Goal is Risk Elimination: ISTT’s primary objective isn’t just fixing computers; it’s identifying hidden risks in a network and eliminating them before the “bad guys” find them.
The 30-Minute Assessment: Dennis explains their entry-level scan, which takes about 30–45 minutes. If their simulation software can run on your system, it means a hacker’s malware can too.
Good “Cyber Hygiene”: Matt shares simple but effective tips, such as the “toothbrush rule” (never share your password) and the “sniff test” (if an email looks off, it probably is).
Ransomware is a Business: Modern hackers aren’t just locking your data; they are stealing it to sell. Matt shares a cautionary tale of a business owner whose retirement plan was ruined after a breach forced him to pay for identity protection for every employee from the last seven years.
Hidden Entry Points: Your computer isn’t the only way in. Hackers often use “Internet of Things” (IoT) devices like office thermostats, printers, and security cameras to bridge into a company’s main server.
The “Good Guy” Support: Beyond security, ISTT discusses the importance of professional IT support to prevent “jerry-rigged” solutions that accidentally open security holes during emergencies like payroll processing.

Episode FAQ

What is ISTT? ISTT stands for Innovative Solutions Through Technology. They are a Kentucky and Tennessee-based IT and cybersecurity firm that provides technical assessments, end-user training, and managed IT support.

What happens during the free evaluation? Dennis Buzard visits your office for 30–45 minutes to run a sample scan on a few workstations. About a week later, they provide a 25–30 page detailed report (in layman’s terms) explaining where your security holes are.

I’m a small business with only a few computers. Do I really need this? Yes. Dr. Friday notes that many small businesses rely on outdated setups from decades ago or “big box store” Wi-Fi solutions that aren’t secure. Hackers often target smaller firms because they lack the robust IT departments of major corporations.

Does ISTT use offshore support? No. All ISTT employees are based locally in Kentucky and Tennessee, though they serve clients across the majority of the United States.

Transcript

Dr. Friday 00:00 All right, we are here with the Doctor Friday show. The Doctor is in the house, and we have some guests in the studio. Matt, could you say your name, please? Matt Folker 00:08 Yeah, my name is Matt Folker. Dr. Friday 00:10 And what’s your job title? Matt Folker 00:11 Well I’m got a little bit of everything, but um pretty much I’m the chief information officer for a company called ISTT, which is also a mouthful. It stands for Innovative Solutions Through Technology. Yes, I run out of breath every time I say it. That’s why we say it ISTT. But thanks for having me on today. Dr. Friday 00:28 Thanks for joining me, and I’m so sorry. Everyone that knows me knows I am Horrible with names. Dennis is also here. Dennis, you want to tell him a little bit about who you are? Dennis Buzard 00:37 Yeah, Dennis Buzard. I’m the senior sales manager with ISTT, helping folks stay safe and not let any cyber issues hit them. Dr. Friday 00:44 All right. And that’s what the show’s about today, guys. We’re gonna get into a little bit off the normal path. Taxes are fine and exciting and for me totally fun. But I think sometimes we need to, you know, let our brain rest and go and think about something else. And I um being an enrolled agent, we have to keep things kind of cyber safe And so I called these guys and Dennis came to my office and did this really cool evaluation. And so Matt, I guess we’ll just let you tell a little bit about what is the first step. How does IST keep the bad guys out? Matt Folker 01:22 So really it boils down to our objective is to eliminate risk. Okay, we we want to go into a facility and we do some technical assessments. We have some cool technology that helps us with this, but overall our objective is to find risk and eliminate it. Dr. Friday 01:40 And I guess the next question following that would be, how do you do that? Matt Folker 01:44 So um like when when Dennis went to your office, he had a little USB drive that I’d loaded up for him. Um and basically it does Kinda just an entry level scan, kinda looking to see if at least you’ve got your front door is is shut and locked, which, you know, most of the time the doors are wide open. But that’s okay. That’s part of the business. That’s why we’re here. Um but our our objective is to find things that have been overlooked and sometimes it’s things that have been set up incorrectly when it was first set up fifteen, twenty years ago and was just kind of forgotten about. Um but then we we evaluate, you know, what users have access to what, those kinds of things. Um and really the the skinny of it is if it’s really easy for, you know, one of your employees to come in and access some things that they shouldn’t shouldn’t have access to. Then that means the bad guys can too. And so if you have a really simple password, for example, um then It’s gonna be really easy for those bad guys to to get that password, or if you don’t have two FA, uh, which we can we can go into a little bit of that a little bit later. But But yeah, basically we are looking for risk and we are trying to eliminate that and we and we eliminate it via technology. Dr. Friday 03:00 Right. And I think that’s the any business owner or maybe you work for a firm where you work under the, you know, the the office staff and you know that maybe nothing’s been updated for a while, nothing’s been taken care of for a while. And you’re like, cause I mean my office you know, Matt hit her on the head. We’ve kinda just continued with what was set up decades possibly ago. Pretty sad. I mean we’ve updated the softwares we’ve updated and we think if we’ve got McAfee or Norton that it says it’s security software, hello, um, that we’re actually doing what we need to do. But we know now Thank you, Dennis. Um that we were not actually necessarily doing everything that we should. So so now let’s say you go in and you find the flaws. What would be the next step Um for someone, you know, not talking financial so much as, you know, what would you be doing to help them secure their borders? Matt Folker 03:55 So basically once we we’ll compile a report, okay, and a lot of it is kind of technical, nerdy jargon. And that’s why I keep Dennis really close. So ’cause he he’ll he’ll keep he’ll keep me close and he he’s a much better communicator than I am, as you can tell. That that said, um we we run this report um and then we review it with the the business owner or the decision maker of Hey, here’s all of the holes that we found and just lay the data out. Here it is. Here’s what we found. If you want to hire us to help you close some of those gaps. Great. If not, here’s the data. Here’s the report. Our objective is to make the community a safer place, whether you use us or not. Dr. Friday 04:39 And I I have to say that was a huge selling vehicle for me because I was thinking, Okay, I have Norton, I have the he’s gonna come in, he’s gonna say, Okay, there’s these little things, passwords. I know mine aren’t the most high tech, maybe Now knowing they’re even less high tech. But anyways, um, you know, I didn’t I didn’t think about it too much because I was figuring we we have these different things, but After seeing the report, it’s kind of guys like when you get in a love letter from the IRS and it says, we’re changing your tax return and you have no idea why. And they send you this whole booklet of stuff. This guy came into my office and he had to have twenty-five, thirty pages of all kinds of jargon. And Matt is correct. I’m feel myself a fairly intelligent individual, but with looking at that, I’m like, Dennis, break it down. Get it down to the layman terms because there’s a lot of information. It wasn’t necessarily something that an everyday person But the hackers would understand this information. And that’s what was scary for me. Matt Folker 05:36 So here’s a here’s a good example of I I’m gonna put myself in your shoes. Dr. Friday 05:40 Okay. Matt Folker 05:40 Um I have three three boys ages eleven, nine, and five. And my two oldest, uh, in in twenty seventeen, the hospital that they were born in had a huge breach. And two of my kids, they had their social security numbers stolen. And so in twenty seventeen or twenty eighteen when I went to file my taxes, uh, and y I I wasn’t late, but you know, I filed it in end of March somewhere in there. Um my taxes got rejected because someone had already filed taxes against my children. Yes. Okay. So you know, but so one kid was four, the other kid was two, and they had already had their identity stolen. Okay. Totally sad. And it’s it’s been, you know, there was two years of nightmare and a lot of paperwork, but at the end of the day, I can’t change my kids social security number. That’s what was assigned to them. Yep. And when they hit adulthood I expect they’re gonna have a lot of issues. They’re gonna have, you know, alerts of people trying to get loans and car loans and stuff like that and liens. On their social security number. Dr. Friday 06:47 They need to start a corporation with an EIN number, just create themselves an entity. Matt Folker 06:50 Yeah. Dr. Friday 06:55 We’ll talk about that when you get old enough to worry about it. Matt Folker 06:57 Yeah. I’ll I’ll bring them in. Dr. Friday 06:58 We’ll we’ll get that figured out. Matt Folker 07:00 Um but anyway, it it’s an absolute nightmare. And these are for my kids. Like I I’m the I’m supposed to be the cybersecurity expert and it still happened to me. You know, I mean there wasn’t there wasn’t anything I could do in this case. It was the hospital had a really large lapse in security and I was the victim of it as were a lot of their people. Dr. Friday 07:21 How many times do we get letters from TOGAT? and all kinds of places where we’ve used our credit cards or whatever and they come back and they said you’ve been your identity may have been stolen or or your information may have been hacked. IRS I got one from because they got somehow your information So we know that’s out there. And we also know our dentist’s office where we forgive them everything is probably not as secure as it should be and those kind of things, which is why I wanted you on actually, because I think a lot of times Us smaller guys, you know, maybe IBM or you know Coca-Cola, the big guys, they have these whole departments. Matt Folker 08:01 I know that there was a Couple couple well this was last year I believe T Mobile got hacked and they had gotten hacked previously like five or six, seven years ago. So even the big names in technology where you’d be like, Oh, they’re fine. We’re all humans. Yeah. Big or small. There’s gonna be mistakes that are made. Um and and so that’s why we we really take it seriously of keeping the bad guys out and keeping the good guys in. Right. That that is is is what we’re trying to accomplish on any level. It’s it’s the big corporate level and then also the the personal level. Dr. Friday 08:36 Right. So the bad guy out we all understand. I think that’s pretty much the hackers or the people that are trying to steal something from us. And then you have the the education side, which is like For me, if I work with you, it’s like keep the good guys in. Matt Folker 08:50 Yeah. Dr. Friday 08:50 How does that I mean how do you help do that if that makes sense? Matt Folker 08:53 So we we do a lot of end user training for our clients and really that that helps out in twofold Number one, our clients obviously they want to educate their staff to where, hey, you’re you’re handling this important company data, this important client data. And we don’t want it to get mistreated, we don’t want it to get leaked out, we don’t want it sold off to the highest bidder, those kinds of things, obviously. Um but at the end of the day, the our clients realize that even if they’re able to teach their clients or their their employees of, hey, this is how you detect a malicious email. Okay, here’s some password hygiene that you need to have. A term that I use is you never share your toothbrush, so don’t ever share your password. All right. Um the the our our clients understand that employees when the when they’re educated and even when they’re in their everyday life when they’re able to um kind of When when they’re able to um sorry, when when they’re able to do a better job of keeping their own data safe. When they have those good intentions, when they have you know good password hygiene personally, then they’re also going to do that on the on the business level. Dr. Friday 10:10 Sorry, Matt was stuttering partly because I’m doing this little hand signal that we have to take a break and I’m like Matt’s like, Okay, I get it, Friday. Anyhow, just so you guys don’t have a camera on here so you don’t see how Funny that isn’t here. If you guys want to get a free evaluation, they’re gonna stay on the show. But for our first break, if you want to call them 615-225-7070, 615-225-7070 Free evaluation. We’re gonna take our first break. We’ll be right back with the Dr. Friday show. Alrighty, we are back here. Dr. Friday. This is the Dr. Friday show for all of you that are listening. I’m Dr. Dr. Friday and enrolled agent licensed by the Internal Revenue Service to do taxes and representation. That being said, today we are going off grid. Well, I don’t know if that Eric C fits perfectly with this conversation, Matt. Dr. Matt is here with I S T T Inc. I’m trying to say it slow guys ’cause I I’m a mess it up. And you notice I didn’t use Matt’s last name. It’s a easy name, but I’m gonna mess it up no matter what I say. Maybe by the end of the show I’ll be calling him the proper name. Anyways, when we left the last break, you were talking about how, you know, keeping the good guys in, educating people so that they and I thought that was great because Um again, we’re working with these guys and they’re gonna be educating us because I think that’s something we take a lot of seminars. We’re big on CE credits and seminars. Um but you only apply what you know. With someone could come in and say, hey, we know your system. Right? We know, and this is what we need you to start doing. Passwords need to be better. Not sharing your toothbrush, that’s true. So therefore you don’t want to be sharing your passwords And I will say that happens in our office. I already know that because someone will get locked out and we have to, you know, get someone else in, whatever. And and Since Alone’s almost family in my office, it’s it’s very laid back. Only have two people that aren’t physically related to me, so it’s very close in my world, but it doesn’t mean that that information can’t get out the wrong way. And that’s what I feel um People trust my firm to keep their information as best I can. I need to do the best I can. And that’s why you guys come in. You’re the best. Matt Folker 12:12 Yeah. And that is their their personal data. They don’t realize the value of it on the dark web. And then also with obviously w with company data. You know, j one small breach. Can mean that all employees W twos get stolen. You know, name names, addresses, social security numbers, all that can be gone. Dr. Friday 12:28 And think about an accounting firm who has payroll. And all those, right? So I mean we have a lot more and the IRS has put out a lot of notices for accounting firms because they hijack it, right? They want to put some sort of A couple I I’ve never known anyone, but they had articles on the IRS where people had gotten hijacked they had to pay a fee to get their hard drive back. Matt Folker 12:47 So we call that ransomware. Dr. Friday 12:49 Ransom, okay. Matt Folker 12:50 And and basically is the bad guys will hack your system they will take a copy of your data and then destroy the data that you have. Okay? And so some people are like, oh, we got good backups, we’ll restore it, have a nice day. Well, that’s only half the problem because they have a copy of all of your data. And and it it may sound a little bit strange, but yeah, they’ll they’ll ransom your data and they’ll say, hey, we want five Bitcoin and we’ll delete the copy of the data we have and and First glance you’re like, well, I I can’t trust you. You’re you’re a criminal. Dr. Friday 13:20 You’re a bad guy. Matt Folker 13:21 And yeah, at face value, that’s true. But fr in their point of view, you know, these are guys in North Korea, Russia. Uh, you know, a a lot of a lot of naughty places and it’s a business for them. Oh yeah. And a lot of people, they’re just working for a company. Going out trying to steal people’s data, they don’t really see any harm in it. They’re and their their mindset is well if we got in, then you know Dr. Friday 13:56 Those are the kinds of things that you read about and you know of course you hope never happen, but it happens to somebody. So therefore I can’t live my life with the idea I hope I’ll never be the guy that gets caught So that’s the reason I have you guys in here. This reason I want you as my listeners to listen because if you’re working in a small office. Medium sized, large. These guys aren’t limited to numbers. I’m more thinking that and and Matt pretty much already said sometimes you think the big offices you already think have IT departments, therefore they should be But maybe this would be a cool test if you do work in a big office, have these guys come in and I mean again, it’s free. You’re not wasting anyone’s time, but they’re so hey, it’s really just a matter of Have them come in, run this test, and see if you are as safe as you think. Because if you aren’t, well, hey, they can fix that. But if you are They’re not going to do anything. I mean, it was their time, right? So it’s a it’s a free evaluation. So it really is only a matter of how long does it take, Dennis? Dennis Buzard 14:52 Thirty to forty-five minutes. Dr. Friday 14:53 Thirty-to-forty-five minutes. He comes into your office He’s he’s a sweet guy, to be honest with you. I have great Danes in my office and everything else. I did hang him off, but I mean bottom line is he’s having to move around dog beds. I mean it’s a really crazy world in there Um and and it’s in a big barn. So just so you guys you guys know where I live. Anyways, that being said, he he was cool. He went in there, left a few 30, 40 minutes later And then like I said, a week later or so he calls me, gives me this absolutely wonderful report. Um and then, you know, I’m like, well, how fast can you get in here? Um and and seriously, I I mean, I I I never thought I was as potentially as in a threat situation as I am. And that’s why they’re here. But I if I figure if I am after 30 years of business, how many of you guys who have been listening to me for 15 to 18 years are in that same place because we all kind of get that comfort zone. Never had anything happen. Never had to worry about anything. Everything’s good. So you need to give these guys a call. Again, if you want to call them Just pick up the phone right now. 615-225-7070. How easy is that? 225-7070. Matt Folker 16:01 The phone number was really expensive, by the way. Dr. Friday 16:03 Was it? Matt Folker 16:08 Yeah. Yeah. Dr. Friday 16:09 I like that Matt. And Matt, why don’t you tell them what the website is? Matt Folker 16:13 So the website is Istinc. Com. I I’m from I’m from Kentucky, so sometimes my my T’s and my P’s sound a lot a lot alike. Dr. Friday 16:25 They have no idea what I’m saying half the time. So they keep listening, don’t worry. They’ll they’ll they’ll figure it out at some point going through their So your basic plan is first keeping the bad guys out, which is a cyber you you do whatever the cyber world is. Mm-hmm. And then you come in, once you figure out what those you help educate that office to hopefully eliminate some of the Maybe I don’t want to call it laziness, but to a point it is our laziness. Matt Folker 16:49 Sometimes it’s it’s maybe it starts out as laziness, but then you know it turns into bad habits. Dr. Friday 16:53 Yes. Matt Folker 16:54 Or vice versa. You know, I don’t really want to call anybody lazy. I just want to educate. Dennis Buzard 16:57 Yeah Matt Folker 16:58 When I see a password on a monitor, you know, I’m gonna take it off the monitor, I’m gonna hand it to you, okay? And I’m gonna say, hey, I’m sure you can remember this now. Put it in your pocket. And we’ll and we’ll be on our way. You know? we we do have we we can help you with the password manager and those kinds of things. But but yeah, yeah. And I promise you if you keep your password under the keyboard Everyone knows that trick. Okay. Dr. Friday 17:23 Okay. So those are not the hidden places. I’ll have to rethink about that. Um and then then support. Okay, so we’ve got it. We’ve figured out the problem. We’ve educated and hopefully Taking our passwords out of the most obvious places, hopefully taking them out where people can’t find them, period. Yeah. And then what is the the Matt Folker 17:42 Yeah, yeah. So we we want to elevate the good guys. And what does that mean is is we can also be just your IT support. Okay? And whether that is we’re an on-site presence there or just phone call away or sometimes it’s a little bit of both. Um but we we see a lot of of businesses, and mostly this is in the smaller business field, but Um basically whoever fixed the printer seven years ago is now the IT guy or gal, okay? and and that’s not really what their passion is. That’s not really what their education is. They’re just kinda doing the best that they can. Right. And that y creates a lot of problems. A lot of times when we do the technical assessment, a lot of the holes we find is because someone didn’t know any better. Yeah. They just they needed Wi-Fi, so they went to Best Buy and they bought something, uh, put it in and they were amazed that it worked. And then they never touched it again. Dr. Friday 18:36 No. And and you guys are all listening and we’re laughing here in the studio because we all know that is exactly how most of our offices got established. We we hired someone and we had to have a second station and we’re like, okay. Well, according to m chat well nowadays ChatGPT or Amazon or Ma Microsoft, whatever, whoever we were doing back then, Google. It said, just open up this port and you can just have this person come in as another person and et cetera, et cetera. You may have five, six computers later, but you just continued that exact same process as we had before. So when we get back, because I’m gonna let Matt this time I don’t want him to feel like I’m pressuring him because we have a time clock going here. So when we come back, Matt and I are going to go back into that subject and let him talk a little bit more about how to elevate the good guy as well as probably just hit again on some steps we can be taking. Before or during this time when they come out and do this evaluation. So again, go to ISTTINC. Com. It’s an easy website, even though if you can’t get the letters just Come to me and I’ll give them to you personally. Matt Folker 19:42 You can Google this. Dr. Friday 19:43 You can Google it. So if you have the right ISTT, you can Google them or otherwise you have no idea what you’re doing. Um or the 615 225-7070. I still think that’s the best way, guys. 615-225-7070. Again, set up that free evaluation. This is costing you nothing, but could save you God, it could save your business. I mean all honesty. It could save you your entire business. After thirty years, the last thing I want to do is lose it to somebody or not doing the right thing. And that it could happen. It happens all the time. We’re gonna be right back with the Doctor Friday show. Alrighty, we are back live in studio. I’m Dr. Friday, and you guys know that. And if you guys are listening today, then you know today is not about taxes. It is about how we’re going to protect ourselves. And mainly this is for small businesses or people that work for businesses that have larger companies. Again, I keep saying the word small because I always consider myself a small business But this kind of thing, these guys don’t care how many computers, how many different states, they can do it all. They’re just looking at how someone’s getting to our system and how we can protect ourselves. So when we left Matt You were going to talk a little bit about how if you do have an IT guy, let’s say you have a company that’s doing your IT, maybe just like some of the tax people are just throwing numbers on a tax return, maybe they’re just kind of doing the same thing? Matt Folker 21:05 What do you think? Yeah, so one of the problems that we see is um y that that person that was never originally hired to be the IT guy but now is really good at printers and unjamming things. Um they wait around and hope a problem doesn’t find them. Right. Whereas w we’re the opposite effect is Going back to the risk conversation, um, if your business is unable to work, unable to function, if your internet is down, if your systems are down, that that is a huge risk. So we are going out and trying to find the problem before it finds us. So if if there is any kind of potential outage or a system that’s about to fail. We we want to get in front of that. And it’s a lot easier to like let’s say you’ve got a a piece of equipment that is about to fail. Hopefully we can catch that very quickly. And then we can schedule that downtime. You know, we can we can do it on an off day or do it on a Saturday or do it, you know, do do it w when it’s not when it’s not critical. Yeah, we want to be proactive. That’s a lot lot better scheduling than you know, it it’s Wednesday morning, you’re trying to run payroll, and Dr. Friday 22:17 Then that person that fixed the computer is now trying to jerry rig on internet access so that they can actually get the payroll run on time so that the clients are done. Yep. And now they’ve opened up probably more ways for somebody to do something because of it. And again, I can relate totally to this because and I think a lot of you guys listening can also because I have Well, a couple thousand people I deal with on tax seasons and most of you guys are small business and medium size and even a few of you are large and basically what you always talk about is You either the IT guy’s not available, so you have to fix it because you gotta do the payroll or whatever it is, or you can’t have the the the factory can’t be down because you have an order that has to be out because you’ve promised it. So Somebody is figuring out a way to bypass what may have been put in. And that’s when we’ve actually just opened up the if the barn door has now been flown open because we you know we may have gotten the system working, but we don’t know anything about Cyber, internet, anything. Matt Folker 23:16 Another good example of that was during COVID. A lot of businesses had to work from home. The the part-time IT guy or the the employee that just knows more about computers than anyone else, they were scrambling trying to set up remote access and those kinds of things. And overall, you know, a lot of businesses did a good job with that. Uh, you know, w we were able to keep on trucking along through COVID, or at least most of us were. But then when COVID ended and everyone went back to work, no one ever shut off. That remote access back. Dr. Friday 23:48 Okay. Matt Folker 23:49 And so even if you have nothing to do with your IT department, but if you were working remotely during COVID And you haven’t worked remotely since, go to your IT professional and say, do I still have remote access? Is this still turned on? Dr. Friday 24:06 Well that’s it. So again You know, I think that’s an example is that anyone listening today, in you we all live on computers. I mean it doesn’t make a difference if you were. It doesn’t matter what you’re doing. What you’re you almost all of our careers fall into something like that You might want to take this number down and give it to whoever’s the boss. Maybe you don’t have the authority, but this is free. So when you go in and then you save the day because you know what, these guys come in, they find all these problems and then they fix and educate and now your boss is like wow what a relief I just saved the day in essence because if any of these things that went bad and I didn’t do anything. Now we theoretically lost millions of dollars for ransomware or in smaller business. You put us out of business. I mean that would put us mostly out of business. Matt Folker 24:50 We’ve done investigations before where, you know, people have called us after an attack. You know. And it a lot of times it’s people we’ve marketed to and they’re like, nah, we’re good. They’ll call us six months later, help, my business is on is literally on fire and we don’t know what to do. There was there was one small business that we d we helped out in this has been a couple of years ago in Kentucky. Um the the owner of the company, he was in the midst of selling the business. Oh. Okay. Dr. Friday 25:15 So he didn’t want to put any more into it than he had to. Matt Folker 25:18 Yeah. He he he was Things things were progressing for him to sell. Um they had a a really large ransomware attack. They lost eighteen months worth of data. All of the employees data was stolen. Um and when when he was talking with the attorneys and I was at the table as well. The attorney recommended of like, hey, you’re gonna have to buy identity theft protection for all of your employees. U And he was like, okay, you know, well, we’ve got you know, thirty, forty employees, like, okay, I can afford that. And the attorney was like, Oh no, it’s every employee you’ve ever had for the past seven years. Dr. Friday 25:52 Right. Because that was stolen. Matt Folker 25:54 Yeah, because it was all stolen. You know, again, going back to our social security numbers never change. And so he ended up having to buy identity theft protection for three hundred and fifty people. Um That’s just the start of the problem that and he he did end up selling, but it he had to sell to a private equity. And it was pennies on the dollar. Dr. Friday 26:14 Yep. Matt Folker 26:14 And so that was his his entire retirement plan of selling the business, moving to the beach. Nope. Dr. Friday 26:21 Well and I think that’s the way I’m looking, not so much but it’s always proactive. I mean the same thing happens that people come in and they’ll talk and I want to resolve my IRS issues or whatever. And then then tense a levy letter comes in or they actually get their bank or their home has a levy or or a lien put on it. And then they’re bringing you back in. But then The door is wide open again, right? Now the IRS has you, they’ve already got you on a collection system, they’ve already went through three letters saying you owe. You it’s a lot harder to put that fire out than it is to go and if the IRS took money from you, a lot harder to get the money back from the IRS than it is to keep it out of their hands in the first place. The And so I look at this similar everything in my world, as you can tell, Matt, goes around Taxes. Sorry. Just the way my world thinks. But it’s it’s very similar. I want to be proactive with my taxes. I want to make sure I’ve got everything done. And that’s what I think people need to think about with their computers. We now have cell phones, iPads, laptops. Hard top um desktops, servers. I mean every printer, everything is now hooked up to the internet. Matt Folker 27:24 Even your thermostat. Dr. Friday 27:25 There you go. My thermostat and you’re right, mine is actually hooked up. That’s right. He knows these things. Um and all those different things, besides, you know, probably my cameras, you know, all these things all have internet access. And I know that was one of the big things Dennis, who’s been actually surprisingly quiet, I think Matt and I have taken over the conversation. But Dennis came in and that was one of the first things he he basically says is you don’t realize The main entrances th right through the laptop you think, okay, I’ve got that kind of but you don’t think about the printer or the cameras or the the thermostat, which is what Dennis had brought up, the thermostat that someone could get into my server. I mean everything. They can get into my life because everything’s in that computer. Dennis Buzard 28:07 Yeah. I’ve had a hack through the internet. Dr. Friday 28:10 So those are the kinds of things I think that’s reason I’m doing this show. This is reason I think people need to be listening because we’re all proactive with things that we think are important, our medical or our things, but This has all of our information in it. So they can find out everything about you through your computers and our things. We save every document, right? I mean most of the time, hey, I went to the dentist. I scanned in my receipt. Everything is in my computer. They know more about me than I know about me. Matt Folker 28:38 Yeah. You know, and so And and you’re keeping things in your downloads. Dr. Friday 28:41 Everything’s like. Matt Folker 28:42 You know, and no one no one is no no one is going through there and cleaning that out. You’re not cleaning out your own downloads folder. Dr. Friday 28:47 One of the few things we do is we never open an email we don’t know who it’s from. I that’s probably one of the strongest things I can say in my office, but other than that, there’s a lot of failures. So I’m not gonna chu pat myself too hard on the back. All right, so I S T T is um a local company. Um and so that’s good guys. We we want to keep it local. We don’t want to be working from someplace out of the Matt Folker 29:09 Yeah, we don’t use any offshore support and anything like that. All of our employees are either in Kentucky and Tennessee, but we do serve the country The majority of the United States. Dr. Friday 29:18 Okay. And so again, I did kind of say no s company too big, that’s pretty much the case, right? I mean you guys can handle the colour. Matt Folker 29:29 Right. And just again. Our goal is to better the community. Dr. Friday 29:33 Right. Matt Folker 29:33 Uh, so that if if we really believe that, we can’t pick and choose of who we want to work with. We want to work with the people that need help. Dr. Friday 29:40 Yeah. They’re working with me guys. I’m just saying. You got that right? So anyways. Just saying. Um but yeah, no, I love these guys because I think one thing I like best is normally when I have an IT company come in, it I it often makes me feel like I don’t know what I’m talking about, right? And they never make me feel like I ever really figure out what I’m talking about. They give you all this and they say Well, you need this or you need to and the biggest thing is, oh, you can go to the cloud. You can go to the cloud. Well the problem I have with the cloud people is plain and simple, what if the internet goes down? I can’t work So I like having access to things inside the office. And so when we come back, we’re gonna talk again a little bit about this will be our last break. So we’ll come back and just talk about the three big steps you guys have. And maybe some insight to what people should expect when Dennis comes in really quick and all of that. So again, free, that’s the week word, free evaluation. Dennis is awesome. He’s gonna come out. And if he can make that thing work, it means you’re in trouble. So just letting you know it works. Six one five two two five seven zero seven zero six one five two five two two five 7070. I can’t even do a telephone number. And their email or their website, I stinc. Com. It’s actually not too hard, guys. And we’ll probably try to put a link on our website too. So if you guys find me, you know me, you can always link right over to them to get this free evaluation. Because I think every company, no matter how big, how small, should have this and that way, you don’t have to use them You don’t have to do anything after it, but then you can’t say you don’t know that you have issues or not. We’ll be right back with the Dr. Friday show. Alrighty, I’m Dr. Friday. This is the Dr. Friday Show. And we are here in studio. With Matt Fulker. Yes. I did it, people. All right. And Dennis, we’re not going with his last name. All right. We got, you know, you can only have so many wins in one day. So Matt, we’re going to rewind a little bit So we have people are always coming in and out of the station. So again, we’re here. You guys are a cyber company. A quick overview of what exactly your company does and how it’s gonna make my business or anyone’s business. I use myself because I like to talk about myself, but people’s business a little better. Matt Folker 31:54 Yeah. So our objective is to eliminate risk and and define that risk so we can eliminate it. So we do have like a quick easy assessment that Dennis runs Um and it’s just, you know, if you’ve got 300 computers, we’re just gonna run an assessment on, you know, two to three or four computers. It just takes usually a few minutes to run on each one. And really if the assessment is able to run that’s actually a bad thing. The the assessment is kind of simulating to where if you were to to open up an email and click on something malicious, okay? and so if it’s able to run at all, then there’s a problem. But the longer the scan is able to run, we’re able to p pick out more data and just find more risky things going on. Um and but then we also we want to keep the good guys in, so we want to keep the the data that you have secure. We want to empower the your the employees there to that they’ve got access to everything that they need, that they’re they’ve got good w what I call cyber hygiene. You know, again, you d you don’t want to share your toothbrush. Another thing that that I I like to talk about is Um you gotta stick a deodorant, right? Well does that email pass the sniff test? Okay. Um, you know, just just Just kind of little dorky little things to remember that to kind of you know just. Yeah, does this email pass a sniff test? You know, take your password down, put that on there, boom. You you are set you are set for life. But then we also want to elevate the good guys and and what that means is we want to provide good, easy, fast, IT support. So your staff isn’t scrambling trying to fix something that they know nothing about. Or opening up security holes in order to run payroll that day. We we want to elevate your team with our IT team and you’re you’re not just getting an IT guy or gal. You’re you’re getting an entire team. Dr. Friday 33:52 And that’s you know that’s the way I I like to think of it. And and the cost, to be honest, and we’re not gonna get into the dollars, but for what I was quoted, it’s extremely reasonable when you put it against the fear of loss, ransomware, even just having systems down. Yeah. I mean there that seriously their rates are extremely good. But I won’t put them on the spot because I’m sure every company, everything is going to be different on that. But um so Dennis, we’re gonna give you a a minute here just because you came all the way to the studio and Matt and I didn’t give you much time to chit-chat. I But again, if s if once someone calls 615-225-7070, what should they expect? Dennis Buzard 34:31 Sure. So it’s a really simple process. First thing we do an appointment. I mean it’s I really want to take a look at the company, yourself. I want you to vet the company, make sure it’s a fit. So that’s first step one. Then step two would be an assessment. If it’s a fit, we’ll do the assessment. Very simple process. I mean, basically I come in, if you have whether you have 20 computers or whether you have 2,000 computers. We’re going to sample test three to four, hit the whole system, come back with some very extremely detailed information, probably within a one-week period. We have all the data within about within minutes we have it, but it takes us about a week assemble everything. Thirdly, I come back and during that period I would do an assessment review and go over every single thing top to bottom. Basically, if the assessment runs, again, that’s a bad sign because that means that a cyber goon can get in there too. Then we talk shop regarding pricing, two-fold program, monthly fee regarding computers and workstations. Then also if there’s hardware needed, we take a look at that too. So it’s kind of a one-stop shop Dr. Friday 35:30 Perfect. All right. And that in again, guys, this is exactly what I did. And that’s how I um Dennis reached out to me. And this is exactly, I called the number, he came in. And we did this and it’s been extremely pain free. Otherwise I wouldn’t put ’em on the radio because well why would I want to promote someone I don’t like? Um and and it it really does. I mean I know that it’s it’s always scary to think, but if these guys can do what they do Then imagine what the bad guys can do. And then I don’t have any idea. Seriously, I thought I had Norton and McAfee on my I have both on my computers thinking, oh, I’ve doubled down And yet I didn’t double anything, people. I’m just letting you know. I am blessed. I live in the country. Um, so not as many people know where and how to get to me, I think, is what saved my hide But I will be in better shape. I am taking the responsibility, and that’s it. I’m an owner of a business. I take in your information. I feel very responsible And so that information needs to be as safe as I can make it and all of you guys do the same thing. I know you feel the same way. If you’re a dentist, a doctor. Anyone. I mean you’re running a manufacturing company, you’re a real estate agent. You take in a lot of this information. If you run a large real estate office, Imagine what’s in there. We all fill out applications. We all that that data could become something that then someone’s putting on the black market and then they’ll track it back and they say, oh, you know what? That real track Came back up this or whatever and you don’t want to be the the weak link. That’s all I’m saying. I don’t want to be the weak link. So in conclusion We want to make sure that everyone knows this is a free evaluation. And in given take how fast their surface is, he came really quite quickly too. I mean their turnaround is fast. So if you give him a call, within a week or so he’s gonna be out evaluating you and then out putting the test. It and it it’s a lot of time on Dennis’s side because he had a visit He then had to go out and do the the evaluation and then he had to come back and tell me his great news. Um and then they they still I mean so then they have to come out and then set up the system and and fix everything. So it is a Very time consuming considering, yes, they’re going to eventually get their money because they’re going to be paid monthly. But if you look at what their input for this upfront, it’s awesome because most of the time people don’t want to put that in without Oh, pay us a consulting fee. Matt Folker 37:49 Yes. If you want to reinvest in your business or not. And this is also c very similar to insurance. But yeah we we just you know we’ll we’ll come in, we’ll get everything set up and it’s just build monthly. Um later. Dr. Friday 38:04 Yeah. So Dennis is telling Matt to say it’s a month later. So we built afterwards. So it’s the next month after they set it up. Matt Folker 38:11 Yeah, we we set everything up first and then we built. Dr. Friday 38:14 And then yeah, wait, yeah, they’re a lot like me. I do the taxes and then I bill. I don’t bill before I do your taxes. So they’re doing the work and then doing it. So that’s what I love about these guys. All right, one more time, their phone number, free evaluation 615-225-7070, website isttinc.com. Again, I’m Dr. Friday. You can reach me at 615-367-0819. Friday at drfriday.com or drfriday.com. And as we love to say in Australia. Cop ya later.

Dr. Friday Radio Show – December 27, 2025

Dr. Friday Burke — Mon, 29 Dec 2025 15:07:05 +0000

In this episode, Dr. Friday is joined by her long-time friend and colleague, Hank Parrott of Estate and Financial Strategies. Together, they dive deep into the critical importance of the “Team Approach”—ensuring your financial planner and tax professional are working in unison rather than in silos.

As we head into the new year, Hank and Dr. Friday discuss how to maximize your retirement income without triggering unnecessary taxes. They cover complex topics like IRMA surcharges on Medicare, the strategic timing of Roth conversions, and how to turn high medical costs, such as assisted living, into tax-saving opportunities. If you want to ensure you aren’t leaving money on the table or paying the IRS more than your fair share, this is a must-listen episode.

Episode Summary Points

The Team Approach: Why it is vital for your financial planner and tax preparer to communicate to prevent costly mistakes and amended returns.
Understanding IRMA: How selling property, stocks, or doing large Roth conversions can spike your Adjusted Gross Income (AGI), triggering higher Medicare Part B and D premiums (Income-Related Monthly Adjustment Amount).
Roth Conversions: Strategies for converting traditional IRAs to Roths over time to manage tax brackets and avoid “tax shock.”
Medical Deductions & Assisted Living: How to use the high costs of memory care or assisted living to offset taxes on IRA withdrawals, effectively allowing for tax-free “spend downs” of assets.
Qualified Charitable Distributions (QCDs): A strategy for those 70½ and older to donate directly from an IRA to a charity (tax-free) rather than withdrawing the cash first.
Estate Planning: The “10-Year Rule” for inherited IRAs and how to plan for your heirs.
Workshops & Evaluations: Information on Hank Parrott’s upcoming educational workshops and how to get a comprehensive financial evaluation.

Episode FAQ

Q: What is IRMA and how does it affect my retirement?A: IRMA stands for Income-Related Monthly Adjustment Amount. It is a surcharge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds (e.g., over $212,000 for a married couple filing jointly). Dr. Friday and Hank warn that one-time events like selling a house or a large Roth conversion can accidentally trigger this extra cost.

Q: Can I deduct assisted living costs on my taxes?A: Yes, in many cases. If a resident is in assisted living or memory care primarily for medical safety and requires assistance with daily living activities (like dressing or medication management), a large portion of the monthly fee may be considered a medical expense. This can create a significant itemized deduction on Schedule A.

Q: What is a QCD?A: A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to transfer money directly from their IRA custodian to a qualified charity. This counts toward your Required Minimum Distribution (RMD) but does not count as taxable income, offering a tax advantage over withdrawing the money and then donating it.

Q: Why shouldn’t I just pay off my mortgage with my retirement funds when I retire?A: Hank Parrott advises caution here. Taking a lump sum from a tax-deferred account (like a 401k or IRA) to pay off a mortgage creates a massive taxable event in a single year, potentially pushing you into the highest tax brackets and triggering other costs like IRMA. A staggered distribution strategy is often more tax-efficient.

Transcript

Dr. Friday 00:00 Alrighty, we are here on the Doctor Friday show. The Doctor is in the house, and today we have an awesome guest, one of my best friends, Hank Parrott Estate and Financial Strategies. He is one of the best financial planners. If you don’t have one, you need to get him. And if you do have one, you need to come in and get a free evaluation. So that way you know if you actually have the best person because you don’t know. Sometimes you have to have someone check out the number, see if it’s a better deal. Sometimes we kind of get stuck in a a little bit of a a system, okay, I’ve I’ve got my accountant, I’ve got my tax thing, I’ve got this. And we don’t really go back and see are they really giving us the best advice? Are they really looking at the current tax changes? Because wow I think one of the biggest things we’ve known each other for a number of years. We don’t need to count how many numbers. Uh, but one of the things I’ve always learned You had to go there, didn’t you, boss? Um but no, we have known each other a long time and most of what I know of financial planning has come from sitting in on meetings because every year you bring your clients and I bring mine. We all do these conversations and while you’re in the office a lot of times you’re evaluating Hank Parrott 01:03 and and it’s that team approach which we’re big believers in and it it’s a combination of working with uh on on taxes together for uh for our clients as well as Uh estate planning, working with, you know, we’ll bring in an estate planning attorney like uh Russ Cook over in Brentwood, uh board certified estate planning attorney, great guy. Uh Jack McCann in Cool Springs, another great guy, both real estate and uh estate planning. So w when we do that team approach, now you’re you know, they say two heads are better than one, three maybe even better yet. Exactly. Uh bring it all to bear and and this is one of those areas with uh when we get together we got what, about six I think six different days that we Just our clients in tax season. But that that means that whole day we get we’re getting 10, 12 of our clients at least in. And then I can come spend the day with you. Dr. Friday 01:59 And I get to pick your brain. And and vice versa. But what’s nice about those meetings that I do with you and I I mean I do a lot of different financial people as far as everyone has their own financial planner, but you’re the only one that really ever maximizes that same partnership because How many times does someone have a mistake on a tax form? And I’m like, I can’t this is what it says, Hank. I can’t change it. And you’re like on the phone dealing with that issue right there. So the client is getting such a nice simple relationship versus I’m sending them back to their financial person, then they’re gonna say, well, this is what it you know, and it could take months. It could take a bunch of things. A lot of times you actually get it before we actually leave the office. They’ve got a amended or corrected return so we know we can continue. It just makes that experience and also The um future tax planning. A lot of times people want to know about are we going to do a conversion? How much will my RMD? How’s that going to affect my IRMA? All these kind of questions come up and all those words I just use is because I sit in these meetings and now I know more about I mean, uh even in my tax office we talk a lot more about like Irma because it gets affected a lot faster. Everyone’s making But Irma is a big number. So if you sell a piece of real estate, for example, or you’re coming out of uh working a real job and going into retirement. But most of the time it’s when people do big stock sales or something and then the next thing they know they get a love letter from Social Security saying we’ve reduced your benefits And they think it’s Social Security being reduced, but actually it’s Irma being affected. And since you’ve looked it up, what is the affection of IRMA on a basic? Hank Parrott 03:40 If you are a married couple uh filing jointly and you exceed two hundred and twelve thousand between two twelve and two sixty-six, uh, you’re gonna add about seventy-four dollars to your uh Part B uh premium and an additional 1370 on your Part D prescription coverage. Dr. Friday 04:00 And I think that’s on AGI, which is your adjusted gross income, not modified, which is after your standard deduction. So this would be more like your gross income. Hank Parrott 04:11 Hit with it a lot of time, they sell a property, or maybe they’ve sold off a bunch of stock and they’ve so they’ve bumped up Dr. Friday 04:19 Through any or it could be an IRA distribution or conversion. That’s the one. I’ve had a number of them come in this last year. We’ve been playing the game a little bit. And before I was always just worried about tax brackets. Hank Parrott 04:30 Right. Dr. Friday 04:31 And then the last couple of years we in our meetings with your clients and stuff, it kept coming back with the Irma situation. Irma was being affected and people didn’t, you know, because I’m only I’m a tax person. I won’t keep you in the twenty-two, I want to maximize twenty-two, but if I do I now have affected your other side, possibly, Irma. So you want to have that team effect is all I’m saying, because you go to a tax person and say, how much can I convert? I’m gonna say tax wise this is what you can convert and this is how much, but what no one’s gonna say in that meeting most likely is now I’ve affected your IRMA and you’re gonna be paying $75 more a month for your healthy care for another year. And if you do these for multiple years, that could add up. It needs to be at least in the mathematics. Hank Parrott 05:11 And this is one of the things with Irma that a lot of people, you know, this is by the way, IRMA is a Acronym income related monthly adjustment amounts. And basically this has to do with Medicare. Dr. Friday 05:22 Right. Hank Parrott 05:23 So on your Medicare, if you’re 65 or older, that’s where this can affect you. And and when you’re doing a Roth conversion. You got to think of things not just about the tax on the conversion. That you’re taking out of that. It’s going to be taxable income that year. You’re then going to put it into Roth IRA. Dr. Friday 05:41 Yep. Hank Parrott 05:42 And if you’re over 65, you’ve got to be concerned there may be an additional cost to the tax. This Irma may just if every year that you do it. Now let’s say if it’s just a one-year conversion. You’re going to get tagged with that extra money. And it goes up, by the way. We just, you know, we shared the uh the base part. If you go over two hundred and twelve thousand, but if you go over two sixty-six, that’s 74 goes up to 185. Right. Dr. Friday 06:07 I’ve got some that are like six hundred dollars a month because um and then and then some people are like, well then let’s just convert it all. Hank Parrott 06:14 Right. Dr. Friday 06:15 Because then I only have to worry. But the penalty is so much lower than what the additional tax would be. In in my i scenario, I was working at the off Hank Parrott 06:24 You get a big million-dollar conversion. Dr. Friday 06:25 A million-dollar conversion. And so you only have, you know, so you pay six hundred dollars for a year versus maybe doing it over a period of years on multiple lower numbers. But you’ve now kicked yourself into Well, you’ve got the Medicare tax, there’s an additional. 09, you’ve got the 2. 9 of investment tax, you’ve got um ordinary income tax. It’s just going to be a little bit more than a little bit more. Hank Parrott 06:46 So it’s going to be pretty expensive. And we find that a lot of times it’s better to spread those conversions over time. And Irma is just one of the calculations we look at. And another of course is uh the effect on your t if you’re receiving social security benefits. Dr. Friday 07:01 Taxable amount, right? Yes. Hank Parrott 07:02 Most of my clients are receiving social security benefits. So Now 85% of the Social Security is going to get taxed as well. So you get all these little kind of hidden costs that we don’t think about necessarily, or at least the the consumer probably doesn’t think of. Uh but it’s our job to make sure they’re fully aware of of all the uh implications and costs associated with the show. Dr. Friday 07:24 Which is probably one of the big reasons I I wanted you on the show, partly because I think a lot of times I’ve had a number of clients that are hitting retirement and they’re actually retiring at sixty-six, sixty-seven, um, making the determination they don’t necessarily need to take social security, they may take it. Um, and that’s when you need to have that conversation about conversions. Cause if you’re not n mandated to have to take your social security and you have a window of time, I’ve seen you do some magic there where you’re converting and doing and being able to keep social security non-taxed, keeping them in a lower tax bracket, converting more. Um and again, it would still you just have to have in your mind there is other taxes than ordinary income tax. We keep saying the word Irma or your Medicare adjustment ’cause it’s based on your adjusted gross income. It’s not uh a set fee. But that’s one of the things I think that you bring to the table often is, well what about if this? Or you you don’t just have this like one path, you kind of Hank Parrott 08:28 Don’t be paying more in taxes than you’re legally required to pay. And as common sense and no-brainer kind of statement as that seems to be. We see it every year that people are in fact paying more in tax than they’re legally required to pay simply because they don’t understand the rules, don’t know how to take advantage of some of these things, or make poor choices like Oh, I’m gonna go ahead and do it. Dr. Friday 08:49 Pay off my mortgage so I pull it all off because I’m gonna hit retirement and instead of just taking a larger distribution which keeps you in a lower tax bracket, you know, I know a lot of people are getting s Kind of I wanna say fed up, but they’re at a point where they’re basically like, I just don’t want the IRS in my money. I don’t want the IRS. And of course all of us have it because Well, self-employed people. We’ve had them in our business since the day one, but also in our retirements, SEPs, IRAs, four three Bs or whatever. All of them are deferred. So there but there’s gotta be uh a path or a a a system versus I’ve got two million dollars. I’m gonna take it all out and give it, but then you’ve just given a third of fifty percent almost if you really think about all the things. Probably double. uh versus just taking a ten year window and saying, I’m gonna do this much per a year and do it over this period. So I think that’s what I want people that are listening kinda to walk away with on this. It there isn’t a set thing. All of you are different, just like in taxes, when you come in There may be a 1040 form, but how it’s filled out and what numbers go where is not always the same for each person. You have two people come in with almost the same numbers and have different numbers theoretically because of where and how it came in. So I want you to think One, Hank’s gonna give you a free evaluation. Okay. He’s not gonna charge anything. He’s gonna do the whole workup, not just like one of these little sit-down. It could take one or two meetings He’s still going to put the time in to see if he can do and explain where your money is, how much it is, why it is making money, why it’s not. And he may come back and say, this is an awesome plan. Just like I do with taxes sometimes. But other times you may come back and say, hey, this looks good, but do you know you’ve left this big door open or this window of of money that’s just turning and not not really making you money Um because in the right. Hank Parrott 10:35 So there there’s like I’d like to retire and they’re asking me Uh I’m saying, you know, when do you want to retire? And they’re saying, well, how soon can I retire? Dr. Friday 10:50 All you do is save, right? You’re just supposed to continuously save. And we never really knew how much we should save, but we needed to save because, you know, and Having those numbers and you being able to say, you know what, we can take this much out, we can move some money over here, you do this, you’ll be in this tax bracket. I think it gives them the peace of mind to say, you know what, I can put in my notice and quit when I’m ready. H Or, you know what, I can work another two years ’cause I love what I do. But maybe I don’t need to do this. Maybe I can do sh less hours, less overtime, whatever. All right, we’re gonna take our first break. But if you want to call Hank’s office, there is a phone number. That’s always good. 615-376-5325. Tell them Dr. Friday sent you 615-376-5325 is the phone number. Um and then they will is that an answering service they’ll answer probably most likely on a Saturday and Sunday Hank Parrott 11:41 If it’s on the weekend they’re gonna get uh we do have a service. Dr. Friday 11:44 Okay. The service will answer and then they will get back with you and just tell ’em you’re looking for that free evaluation. And then he’ll send you a checkoff list and you’ll need to bring a bunch of stuff in because he can’t do nothing unless you provide the numbers. All right, we’re gonna take our first break. We’ll be right back with the Doctor Friday show. Alrighty, we are back here live Well, recorded live, I guess I should say on this show, just so we have it covered, with Hank Parrot, Estate and Financial Strategies out of Brentwood, Tennessee. one of my best mates. And w during the break we brought up something I thought was great. And um let’s talk a little bit about how another way you help clients save money, but also using the right I’m only using one of his terms, buckets um to to take money out. So if I have a parent that is in a um assisted living or a memory care facility Maybe explain a little bit how that might work in your side and then I can jump into mine. Hank Parrott 12:36 Yeah, first thing we want to do is uh and we’ve of course over the years I’ve been doing this 35 years now. So and going back 30 plus years of those uh 35 years was doing estate planning. Yes. And so I had clients in, you know, 70s and 80s back then. Obviously they’ve of course passed on, gone h gone home. Uh and what I have found with that is that there are opportunities you look for as well. So when sometimes when something bad happens, I’ve got to go and assist a living, for instance. The good news is, well, we’ve got now a bunch of medical we can write off. Exactly. So I’m first thing I’m going to start looking at is IRAs, uh if there’s if they have maybe annuities with deferred interest buildup in them. uh we’re gonna start looking at ways that we can spin down those dollars. Right. Uh if you think about it you say with estate planning, we’re looking at not just you and your lifetime, but now on to your children and grandchildren and on on down generations. So when we’re looking at the in a situation such as that How can I get rid of the taxable dollars so that what’s left to your family? uh when I’m gone. It’s one way at least we’re gonna make uh lemonade out of lemons, right? Dr. Friday 13:51 And we’d love that. I mean and that’s the way that I mean what I a lot of people come in my office and the first thing they didn’t realize Because everyone always hears about the seven point five of medical and you know, I’m not gonna be able to itemize. But when you start going into assisted care And if you don’t have the ability to fully take care of yourself that you need help dressing, taking medication, cooking, clothing yourself, these things are now impossible to do unless you have assistance, then you now have turned that into a medical deduction. Um at least a large chunk of it can be considered a deduction. And most of the time the uh facilities will actually give us a percentage that they have worked up of what is considered medical, what is considered just basic housing. Um and so Those numbers and when you’ve got ten thousand dollars a month going out for a memory care facility for one of my clients and I think they came back and said it’s basically eight thousand for medical purposes. So you got eighty, ninety thousand dollars a year coming off. You’re itemizing, big time itemizing. So what you’re saying is then you’re looking at where can I get that money that I can also Hank Parrott 14:58 And this is where when we get together and do like with this particular client I’m thinking of that uh is in uh memory care unit currently One of the things that we’re going to be doing when we sit down and do their taxes, just as we did last year, is we’re going to look at, okay, how much Can I cash out here to maximize the value of this write-off and not miss out on it? Imagine that’s Dr. Friday 15:25 I have amended more than one tax return when someone’s come in and said, well, my wife’s been in a facility. Right. And you know, we’re we’re low, low, so I have to take all this money out, but then I look on the schedule A and I don’t see any medical deduction. And you’re like, well I didn’t know I could itemize. You know, I’m like and and and and I get it. Itemizing can be confusing. Especially a lot of times they just go to, you know, um a regular AARP place and they just basically say, here’s my forms. You know, they’re not really going into asking those questions. So if you don’t ask where’s your wife And you’re like, oh yeah, she ended up in a nursing home and then that would have triggered possibly something, but we always have all of those conversations. So um as you can see, I have no problem in talking But it’s a great way and then of course you maximize charity, you you charitable deductions, and then your say your property tax and sales tax. All of that will also add to my Schedule A. So not only do we have potentially 70,000, 80,000 after meeting the IR uh the IRS exclusion, we now have the ability to take out $100,000 out of a taxable account and basically pay almost zero tax. Hank Parrott 16:36 and we’re going over with my clients. But one of the things I love is the fact that we get there a thirty minute meeting and in that thirty minutes and it’s one I one of the reasons, you know, for a lot of my clients that they really appreciate go uh going to have you do their taxes is that they leave with their taxes done. Right. You know, in 30 minutes, it’s not like I’m sending it off to my CPA and and hoping uh that they’re going to get it back to me in time. Right. Or that I and typically right I’m calling them a month after I’ve sent them everything. Hey, remember me. Yeah, I can’t see. Uh as opposed to going in and not only they get in that thirty-minute meeting are they getting their taxes completely done and and they walk out one th less thing to worry about. Right Dr. Friday 17:17 But we’re doing a mini review of I am with them at the same time. But also I have that person there. Convert or how much can I cash out because of the medical. Hank Parrott 17:34 How do we max What’s the maximum amount? Dr. Friday 17:36 That’s the sad thing with most people that don’t have these kind of relationships, in my opinion, is because I have, I mean, I will have a number of financial planners that might call and say, hey, my my person said I should call you because they want to do a conversion. Well, that’s never happened in this relationship. I will tell you that. He’s always calling me saying, hey, I’m looking at this one. It looks like their income’s come down a little bit. Maybe we can do more on a conversion. Can you run the numbers? And that’s the way it works because I don’t think of conversions. I mean it’s not in my wheelhouse as far as it doesn’t save tax dollars. It does save estate dollars, and don’t get me wrong, but I don’t know why more financial planners aren’t talking more to the tax person because what’s worse is you do this conversion or you do a rebalancing. They come into my office. I now tell you you owe $25,000. They were never prepared for that number, and then they’re having a freaking heart attack as if I did it because the numbers came out of my computer. And I get that. I mean, but it would be such a better relationship even with even when that happens in our office and and uh something done. We converted, we did something You’re always there saying, Nope, we accounted for that, the money’s sitting here, we just held on to it, we weren’t sure how much. You always have a way of saying, Hey, don’t worry about it, we’ve got and that just takes that immediate shock instead of going home, having to Call the person, wait for them to call back, come back into the situation. They’ve already got a stressful day. They’ve lost all that wonderful day that they had. Because now they’re not sure or they ought to take it out. C How much more should I be taking out? What’s the percentages? Why didn’t you tell me I should take taxes? Hey guy took three hundred thousand out the other day. No taxes. Hank Parrott 19:15 Yep. Dr. Friday 19:15 And that was crazy as far as I’m concerned. Who gets a no tax unless you have a three hundred thousand dollar loss? Um again, so we are here with Hank Parrot with Estate and Financial Strategies. He’s 30 plus years of doing this, so he has heard and probably seen most everything. But more importantly, he’s always up on top of the changes. Because just like my world, which I love about taxes, and I’m frustrated with taxes is the changes, right? We always have something that’s kind of changing or quirking. And when we come back from this break, we’re gonna talk a little bit about QCDs and a couple things like that because I still think it’s not out there popular enough for a lot of people, so maybe we can get a few more. If you want to reach Hank’s office, 615-376-5325-615. 376-5325. Tell them Dr. Friday sent you and you want a free appointment to do uh an evaluation, and that way you can find out where you’re putting your money and if it’s actually really making you as much or if you can be making more money on your money. All right, we’re going to take our next break. When we get back, we’ll be continuing this conversation with Mr. Perrett Alrighty, we are back again here with Dr. Friday and Mr. Hank Parrott. He is a financial advisor, you know, and I realized I didn’t really have him tell his credentials. So really quick, tell them what a wonderful guy you are. Hank Parrott 20:34 Well, we’re doing uh first off, it’s the company, by the way, is Estate and financial strategies. We’re over in Brentwood, as as Dr. Friday said. I’ve been in business now for thirty-five years. Uh we also, by the way, a little cross promotion here, we we do a I do a TV show and Dr. Friday’s a a regular guest on called the Retirement Report. That’s on uh News Channel 5 Plus. That’s the uh cable outlet for the local CBS affiliate. Uh news channel 5 plus uh check your local listings for it. We’re on Friday mornings from 8 to 9. It’s live. Uh repeats again at 3 o’clock Friday afternoon, at uh 1 o’clock on Saturday, uh let’s see, 10 and 5 on Sunday, Monday evening. And I think I miss oh, there’s Saturday at eight A. M. I think we’ve got another one. So it’s it’s uh plenty of opportunity to catch it and we it’s an hour long uh program and we get into much of these same kind of conversations about planning. So we do comprehensive financial planning. It’s not just about your investments, not just about insurance and offsetting risk. It’s comprehensive. So we look at at everything. We look at your income, your expenses, your assets, liabilities, we factor in for taxes. for uh inflation, uh rates of return on your money, how well are you doing, what’s the needed rate of return to accomplish your goals. So all of that is part of the comprehensive planning that we do. And As Dr. Friday said, we’ll offer it up to you if you’d like to take advantage of that. It’s going to be two to three visits. You’re going to have to invest some time in it, but we’ll do it at no cost. It’s a great way for us to get to know you, see if we can be of value to you. Uh you’re welcome. You know, this is how we get a lot of new clients, of course, but there’s no no cost or obligation. And you’ll have something of real value because you will answer questions like, we’ve been talking about tax questions. Of course we get into that to tax planning. But we also get into things like Social Security and Medicare, the other uh complex areas that you’re going to have to deal with, health care costs and retirement. You know, that’s 250,000 to 300,000. out of pocket for the average sixty five year old couple that they can expect over their lifetime. So having a plan for that and how to minimize that is a big part of it. Just like with taxes, as we’ve been talking about QCD, you mentioned this is probably one of the most favorite tools that we have for our clients that are 70 and a half. uh and older. This allows them to give money to the charity that could be their church if they’re tithing to their church rather than If they if they take the money out of the IRA and then gift it over to that church, you know, or charity then uh they’re likely not gonna get any write off. Dr. Friday 23:16 I mean especially when you’re looking at forty thousand, forty four thousand for a married couple is Hank Parrott 23:21 Forty forty for a standard yeah age age sixty five and older so forty six thousand seven hundred zero tax but standard Dr. Friday 23:29 So you have to be giving fifty grand or more to give. And then now with some of the new changes, and that’s the big thing. This would also reduce your income right off the top. So if if you were doing Irma, for example, um and you gave the money out of your bank, let’s just say you gave fifty thousand dollars and you put on your schedule A. That is not going to give you the same deduction as if they came out of a QCD, because QCD is right off the top. So if you took $100,000 and you gave $50 to your church, it’s only going to show $50,000 taxable. Now we’ll show the hundred that you receive, but the other fifty or half of other fifty thousand will go to that charity and reduce. So Hank Parrott 24:11 It’s basically a hundred where you’d get zero write-off or maybe very little write-off, a small percentage, you can get a hundred percent write-off. So if you give them You know, in your example, fifty thousand, uh, zero you pay zero tax on it. Right. Uh that’s huge. I mean imagine re being able to uh do that each year. And we have I have one client I think they set the record, they were like I think it was either fourteen or I think it was fourteen charities that they were. Dr. Friday 24:44 Check with the custodial on what they I’m sure there’s rules and how often they work with the code. Hank Parrott 24:49 This doesn’t mean that you take money out of your IRA and give it and put it in your bank and then write a check to the charity, you don’t get to write off Dr. Friday 24:56 No. Hank Parrott 24:57 It’s got to go direct from the custodian, the person that holds your money. It’s got to go direct from them to the charity. Now that’s Sometimes it’ll go it’ll mail it to them, other times they’ll mail it to you. Right. To give to the charity, but the check is never going to get deposited into your account. It’s not in your name, it’s in the name of the charity. Dr. Friday 25:18 And that’s the that’s the that’s the tax loophole, right? That’s what we want to happen. So And that’s the biggest thing. You could take $100,000, put the money in your checking account, write checks for 10 different charities for $50,000 total. That is a possibility. But if you’re 70 and a half and you’re taking that out of an IRA You just paid tax on money that you’re waiting for a tax deduction on that you might not get a hundred percent of. This is a one hundred percent deduction. And if your financial planner is not talking about this all the time, because again, I don’t think ten, fifteen years ago you started talking about this. Um I thought he was crazy at first, but it he wasn’t. He just Thought he was. Uh but anyways, that being said, it is something if you don’t have him talking, you need to call Hank because this can save you. tens, if not hundreds of thousands over your lifetime because think it’s seventy and a half and you live to be ninety and you’re taking money out and giving to charity anyways Th I mean a lot of our clients give a lot of money to charity. So it’s not like, you know, uh it you’re gonna give. And it’s not because you’re giving because of a tax deduction, but you’re giving anyway. So why not give and give more with a tax advantage versus the other. You can even give a little bit more because you don’t have to have the taxes come out. Um so it’s a game. And that’s what I love about these shows in in our life and we get to be to your point. Hank Parrott 26:35 You give fifty thousand and if you if that’s taxable income to you and you had to pay fifteen thousand tax on it then Does that mean are you absorbing it? Is it net thirty-five to the charity? You know, how’s that gonna work? Or absolutely where I can give fifty and it’s hundred percent Dr. Friday 26:50 Yep. Hank Parrott 26:52 Win-win. Dr. Friday 26:52 Win-win. That’s what I consider too, yes. Because the only person that really loses on that is the IRS. And are any of us going to really cry if the IRS does not have to get their money? I’m pretty sure if we can find a lot of those little loopholes, we will. I jump in there real quick. In 2026, under the OBBB, we do have the $1,000 per person, $2,000 for a married above the line charitable uh deduction available as long as they’re under the thirty seven percent tax bracket. So um just something to put on the table So if you are going to give money, um, and maybe you’re not 70 and a half, or maybe you’ve you’ve done your big ones through that, but you’re still a couple little ones that you just wrote checks because the Girl Scouts came to the door or whatever Keep make sure though you have to have receipts. And this doesn’t have to be cash, which is what we had back in twenty eighteen or nineteen when they had the above the line. This can be um any type, but you have to have a documentation proving that it either cleared the bank or that you, you know, have a cash receipt or you went to Goodwill and you have a physical receipt that does need to list exactly what you gave and they usually just give you a blank your seat. So you have to have that completely filled out um with the address of where you went and everything. So it’s it’s acceptable because I have a feeling that might be an area They might look at. Who knows? It’ll be three years from now after that because they’ll wait. Uh but just so you if you’re a person that likes to do brunching or bunching, excuse me, I like to do brunching too. But uh bunching, we used to talk a lot about that, Hank, where we have people save all of their sales tax and then um obviously double up on their uh property taxes. uh every other year because now you have forty thousand dollars. Um if married filing separately it’d be twenty twenty. This is also where there’s a penalty for married couples. Sorry guys Uh us single folks make out better on tax code. We get forty or you get forty. That’s just the way it is. Um so if you are a person though, that’s a big number because if I pay twice my social I mean S I get to itemize because of mortgage interest and things, but let’s say you don’t normally get to itemize. If again, if you’re hitting forty four forty-six you said thousand dollars and you have no mortgage. The only way you’re hitting that is going to be potentially sales tax, property tax, maybe doubling up on some of that, and charity. Hank Parrott 29:14 Uh and maybe some hefty uh medical. Dr. Friday 29:16 And yes, yes, we talked about yes. A medical may get you so maybe having those numbers. I used to tell people last couple years you didn’t need to save all your receipts, you didn’t need to track your sales tax. Well, as of January 1st, I’m saying let’s get back to the game. Because we probably will start doing every other year for some of my clients. So they can itemize those years because they can double up on that property tax, which kicks them over. Now I don’t know. If it’s single, it’ll be easier Married forty some thousand, that’s gonna be hard for most people to really get over, even if you saved every receipt and every property tax you have. Um But you need to make sure you’re not leaving money on the table. That’s what this this is all about. That’s what I I live for. And that’s the reason I have Hank out here. Now Hank, you also have a radio show. Hank Parrott 29:59 Yeah, we do. I think we’re on 12 to 1. And then uh W-L-A-C. And then simulcast actually, it’s on an FM and then 1510 A. M. And then also, by the way, uh we’ve talked about the workshop uh we didn’t talk about the workshops, but we got a workshop coming up. Uh we do one uh most months uh in the year. January thirteenth is the next one. It’s a Tuesday from eleven to one. There’s no charge for the event. We’re going to do these are educational workshops. Our goal is to help you become better stewards of all the resources God has blessed you with. And one of the ways to do that is become better educated, uh better informed, more knowledgeable about all the rules we talk about and and understanding how these things work. So If you’d like to attend, just call the office, 615-376-5325. You’re welcome to bring guests as well. We just need to know how many to expect. Again, no charge for the event. Uh one other thing, by the way, we talked about the comprehensive financial plan. If you’d like to take advantage of that, uh we’ll get your information, send you out a checklist of things to bring to your appointment with me. Uh and when you come in to see me, I’ll also give you a free copy of my book, Seven Steps to Financial Freedom in Retirement. So again, 615-376-5325. Dr. Friday 31:18 Great. And that’s those are important because I know um I I every once in a while I’ll do a workshop with him, but I’ve had clients that’s went to his workshop and that’s how they’ve kind of come circling towards me and towards you. I mean again, anytime you can get um knowledge and see how it applies to you. I mean that’s the the game, right? Because we talk a lot of times, but it’s generic to a point. You know, I I don’t know who’s listening, so I can’t target this conversation directly. But when you’re in our offices, we can. It’s one on one. We know what we’re doing, we know how to do it, and we make it work for us. All right, we’re gonna take another break here. So if you want, you can call Hank’s office 615-376-5325. 615-376-5325. Ask him for the free consultation or just Sign up for the free workshop and that way you might not even like the guy before you actually have to go in for it. You know, come on, it’s a win-win situation. Um sign And then we’ll take this break and then we’ll be going into the last part of our show and I’ll give you my contact information and all that good stuff at the end of that one. We’ll be right back with the Doctor Friday show. Alrighty, we are back. This is the final time. So if you’ve been listening, thank you. But we’re here with Hank Parrot with Estate and Financial Strategies. We’re both out of Brentwood, Tennessee. And uh just for anyone that just tuned in, I am Dr. Friday, an enrolled agent with the Internal Revenue Service, licensed by the Internal Revenue Service. to do taxes and representation. That’s kind of all I do, guys. For the last 30 years, that’s all I’ve done. So that’s why Hank’s here, because I can only absorb so much information. And I do not want to be a financial planner. So a disclaimer, I am not. Hank is the financial planner. I am the tax person. Um Uh I I will help and lead people mainly when you convert and you need to know how much taxes or if you’ve taken money out, I will tell you how much, but I will never tell you it’s a great idea to cash all your money out to go pay off your mortgage That’s because Hank says that’s a bad idea. For most people, I guess there’s always an exception to an exception, so don’t lock me into those because someone’s gonna call up and says, I did it and I didn’t, you know, whatever. Um but I also love the ones where People are um in the lower income bracket. Say they’ve done a great job savings. They haven’t really done anything, and I’ve actually been a part of where you’ve done conversions for zero. Every year you just take out 10, 15 grand, whatever it is that keeps them and even though they don’t need it, but you just say, hey, we’re i you don’t need to file, right? You you’re not a filer, you don’t need to file. But now if you have an IRA, that’s kind of silly not to file. Because tell them a little bit. Hank Parrott 33:46 Sure, if you’ve got somebody with modest means maybe they’re able they’re living on, say, Social Security and a small amount of income from their investments. And they’ve got the the IRA and now they’re they’re hitting that required minimum distribution age is coming up. Right. We say, well before we hit that where you have to start taking money out We can, you know, sometimes it’s only $8,000 or $10,000 that we can convert and turn those taxable dollars into tax-free dollars and and pay zero tax in the process. So We’re always looking for opportunity to help uh improve our clients uh uh tax and well taxes is a big example. We’ll I help with tax planning. I know kind of the things to, you know, look for and then get with someone like yourself, well mainly in your situation Friday, it is you. Because we’ve been working together now for, as you said, over thirty years and and one of the things that uh I have found to be so uh advantageous is that team approach that, you know, I can sit down with you and I can say, okay, I’ve got this client, you’re doing their taxes, here’s what their situation is. Uh we want to do some conversions and can I do forty? How about forty-five? It’s like an auction. Fifty. Dr. Friday 34:57 Can I get can I hear sixty? Hank Parrott 34:58 Can I get sixty, please? Dr. Friday 35:00 Yeah. How close can we get? And then we leave a little wiggle room. But yeah, cause I know um there’s a a number of clients and a lot of times I realize a lot of financial planners There’s not a huge advantage to doing conversions for you. I mean it’s the managing of funds. Everyone has to make a living. That’s not but if you’re listening, and maybe you are a person that only has Social Security or maybe a small pension in social Even your RMD, maybe it’s a thousand dollars a year you have to take out ’cause like you said, maybe there’s only ten, fifteen thousand dollars in there and you don’t need to take it out, but you’re mandated to be taking it out. Maybe you should make that phone call and at least talk. It may or may not be something necessarily for for Hank’s office or something, but talk to someone and find out if you were to convert that, put it into a Roth, let it sit for the next 10 years, or let your children inherit, because you really didn’t need the money Now, talk a little bit about what I was just thinking about. Everyone, I mean, um, you don’t want to convert if you really need the money in a period of time, right? Hank Parrott 35:58 Well that’s like on the spending down uh when you were looking at retirement accounts, or is it a conversion or are we just going to spend it down? And one of the things we’re looking at is the value during your lifetime. Okay, so for the client, this is and f and if they’re married, of course, for their spouse, first and foremost, how do we make sure you’re gonna be okay? That you’re going to be able to attain and maintain your standard living, quality of life, you know, no matter how long you live. So that’s first and foremost. We do that. And that’s one of the reasons for doing the comprehensive planning. The next piece then that comes in, once we’ve made sure of that, we start thinking, okay, now when you’re gone, what do we want to have happen? And do you want uh one of the things for most people, uh when you when you ask them, do you think you, you know, pay too little in taxes? Exactly. That’s the response. No, I don’t think that. If anything too much. Even though we’re at historically low rates. But this is one of those areas do you want to have the IRS as one of the beneficiaries, or maybe even the biggest beneficiary of your estate? Because that comes into conversions and stuff. And keep in mind since the Secure Act uh back in 2019, we’ve got the now the 10-year rule. Dr. Friday 37:06 Yes. Hank Parrott 37:07 So this is one of those areas. Exactly. So when you uh leave money in an IRA or any kind of retirement account to a non-spousal beneficiary, in other words, to your children. They’ve only got 10 years, they’ve got to cash that out within 10 years. They don’t they no longer can spread those distributions out over their lifetime and and basically minimize taxes. it’s gonna probably increase the amount of tax that gets paid. So if we can convert that, maybe over to a Roth The benefit is now you still have the ten-year rule, but it’s here it’s a different strategy. Dr. Friday 37:45 Roth would be great. I’ll wait to the day before I have to take it out, let it ride the entire time it can cashy because there’s no tax improvation. Exactly. Hank Parrott 37:51 I would grow it tax-free for ten years to push it out. Dr. Friday 37:55 Exactly. Where the IRA and that’s the kind of thing, because I know sometimes people think about they keep hearing I need to do conversion but it really is a an individual again I know on taxes I think it’s very individual because The advice I may give you may be completely different than I give someone else that’s in the same industry because of just different life expectancies and different things. And that’s the same way with IRA conversions and all these conversations, one of the reasons you do this free evaluation is to find out more about that. You need to know that person to know what kind of advice to give them, I’m assuming. Hank Parrott 38:28 Oh yeah. This is one of the areas and imagine going to a doctor. and you walk in the door, say hello, and he writes a prescription before i ever examining you. I mean, how are you how does he even know what you not you you might need? Well Financially, it’s basically the same thing. I’m not sure what I would recommend for an investment plan before I know more about your entire situation, including what those income needs in retirement are going to be. Dr. Friday 38:52 Alrighty, we are winding down the show. So again, if you want to reach Hank Parrot, Estate and Financial Strategies 615 376-5325. Again, free consultation as well as a free workshop. Come on, how much more free can you get? It’s almost like a Christmas present after Christmas. 615-376-5325. You can also reach me, Dr. Friday, at 615-367-0819. 615-367. You can also check us out on the web at drfriday. com or email Friday at drfriday. com And um this way if you have any questions or if you need help with taxes or maybe you have a friend that’s received love letters and they don’t know what to do with them or you just put them in a drawer because you think that’s the best place to hide them. Not really the best idea. Just to let you know that, but you can give us a call as an enrolled agent. I can deal kind of like a superwoman between you and the IRS. I can shield you, but I also need to have that same information. Hank Parrott 39:53 So Hank, thank you for joining me. Absolutely. Dr. Friday 39:56 All right. We’re gonna take a um final out, so this is the Doctor Friday show, cop you later. Ab

Dr. Friday Radio Show – December 20, 2025

Dr. Friday Burke — Mon, 22 Dec 2025 13:50:41 +0000

In this episode, Dr. Friday is wrapping up 2025 with critical updates on the “One Big Beautiful Bill” (OBBBA) and what the changing tax landscape means for your wallet. With the holiday season in full swing, Dr. Friday takes a break from her beehives to break down the new 2025 tax brackets, the major increase in the SALT deduction, and the newly established “Trump Fund” for children. Whether you are looking for last-minute year-end moves or planning for retirement distributions, this episode is packed with essential financial strategies.

Episode Summary Points

Year-End Deadlines: While it is late in the game for 2025, there is still a small window for Roth conversions or maximizing 401(k) contributions before the final paycheck of the year.
Historical Tax Perspective: A look back at tax rates from 1913 to present, noting that despite current complaints, we are historically in a lower tax period compared to the 92% rates of the 1940s.
2025 Tax Brackets: A breakdown of the new brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) and the elimination of the marriage penalty for couples earning under $600,000.
Mortgage Interest: Clarification on the $750,000 mortgage cap (post-2017) and confirmation that interest on second homes is deductible if the combined loan value is within limits.
New SALT Cap (OBBBA): The State and Local Tax (SALT) deduction cap has increased from $10,000 to $40,000 for 2025, bringing “bunching” strategies back into play.
Medical Deductions: Tips on deducting medical expenses (over 7.5% of AGI), including essential assisted living costs.
The Trump Fund: Details on the new government-seeded investment accounts ($1,000) for children born after Jan 1, 2025, and contribution rules for families.
Social Security Taxation: Advice for retirees on the “Provisional Tax” calculation—if your combined income exceeds $25,000 (single) or $32,000 (married), your benefits are taxable.
Charitable Giving: The benefits of using Qualified Charitable Distributions (QCDs) for those over age 70½ to give directly from IRAs tax-free.

Episode FAQ

Q: Did the limit for State and Local Tax (SALT) deductions change for 2025?A: Yes. Under the new legislation (OBBBA), the SALT cap has increased from $10,000 to $40,000. This allows taxpayers to deduct significantly more for property taxes and sales tax, making itemizing deductions beneficial for more people.

Q: Do I need to have taxes withheld from my Social Security checks?A: It is highly recommended if you have other sources of income (like a pension or investment interest). If your combined income (Adjusted Gross Income + 50% of Social Security) exceeds $25,000 for individuals, up to 85% of your Social Security benefits becomes taxable.

Q: What is the “Trump Fund” mentioned in the show?A: This is a new program for children born on or after January 1, 2025. The government opens a $1,000 investment account for the child. Parents and grandparents can contribute up to $5,000 annually until the child turns 18. It functions similarly to an investment fund with penalties for early withdrawal.

Q: Can I deduct the mortgage interest on a second home?A: Yes, provided the combined mortgage debt of your primary and secondary homes does not exceed $750,000 (for loans originated after Dec 16, 2017).

Q: What is a QCD and who should use it?A: A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate directly from their IRA to a qualified charity. This money is not counted as taxable income, making it a more tax-efficient way to give than writing a personal check.

Transcript

00:01 No, no, no. 00:02 She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07 She’s the how-to girl. 00:09 It’s the Doctor Friday show. 00:15 Question for Dr. Friday, call her now. 00:17 737-WWTN. 00:19 That’s 737-9986. 00:23 So here’s your host, financial counselor, and tax consultant, Dr. 00:27 Friday. 00:28 G’day, I’m Dr. Dr. Friday and the doctor is in the house on this absolutely beautiful Saturday. 00:35 I was actually able to go out to my beehives and make sure they were all happy. 00:38 Didn’t want to open them with 00:39 It’s too cold outside, but it is a pretty day. 00:42 So everybody is out flying around and hopefully you guys are out doing your last minute Christmas shopping. 00:48 Um, it’s probably almost too late 00:51 to think about any kind of conversions or anything like that. 00:56 In my opinion, I doubt you’re gonna have a lot of financial planners that will be putting in a lot of extra time into uh dealing with, you know 01:06 That kind of stuff. 01:07 They’re pretty much probably full up and ready to close out the year at the thing, but the you still have time. 01:14 Theoretically, um a Roth conversion or 01:18 Contributing if you haven’t received your last paycheck, you could maximize your 401k. 01:24 Um, those kind of things would be a way of helping to reduce your current income situation. 01:30 But seriously, it’s the 20th and not a lot of activity probably happening in the next few days. 01:36 I came across this with one of my 01:38 One of my good friends, Hank Parrot, he had this uh saying by Albert Einstein. 01:43 I thought it was kind of a good one. 01:44 And why not? 01:45 Since I know most of you guys are out there probably shopping. 01:48 Preparing my tax return is too difficult 01:51 For a mathematician, it takes a philosopher. 01:54 The hardest thing to understand in the world is income tax. 01:58 That was what Albert Einstein said. 02:00 And think about back in the day, he was doing taxes. 02:03 It really wasn’t as complicated as it is now. 02:06 I mean, now it’s ten times the size of the King James Bible. 02:11 So I thought that um 02:12 Little information would be good for you. 02:14 Top income rates throughout history. 02:16 We all think that we’re paying a lot in taxes, and I’m sure some people feel that way. 02:21 And taxes has changed who they’re taxing, right? 02:24 So back in 1913, when the tax code was about 6%, that was actually only on the top earners, right? 02:32 I mean, you had to be making more than, you know. 02:34 $10,000. 02:35 And back in 1913, that would have been making like $200,000 today. 02:41 Um, and that’s my personal estimate. 02:43 I’m sure that’s not the exact conversion 02:46 But then if you look at like by by 1916, you’ll see that the tax rate went up to 80%. 02:55 80%. 02:56 Do you think those people felt like they are paying too much in taxes? 02:59 That’s when they started finding loopholes. 03:02 They find try to find some way to save. 03:05 And then by 2025, it was back down to about 25%. 03:09 Then we start kicking our way up the highest in the last. 03:12 hundred plus years was about ninety-two percent tax. 03:17 And that was right around nineteen forty-three. 03:22 That’s what they were paying in tax. 03:23 And then it kind of works its way down. 03:25 And we’re not actually, of course, the lowest was back in 1913, but we’re right around the lowest. 03:31 But the the lower period, there was some low periods back in the 1980s. 03:35 where we were pretty close to what we are, maybe a little bit less, but mostly we are at the lower period of our lifetimes of the tax cut. 03:45 So if you think you’re paying too much today in taxes, you must be prepared because it used to be when when 03:53 when I was working and still am, but when people used to always say, you save, save, save now, because when you hit retirement, you’ll be at a lower tax bracket. 04:02 But the question is, for some people, depending on what their work history was, they may may or may not be, but basically most of us right now are at a lower bracket than we most likely will be 04:14 Especially if you look at the spending of our government, most likely will be in our lifetime. 04:19 So the the the likeliness of taxes going down further 04:23 I think is fairly rare. 04:25 Will it stay the same? 04:27 I hope. 04:27 That would be great, at least for the next 20, 30 years. 04:30 I’d like that. 04:31 But, you know, no one really knows what’s going to happen. 04:35 So we do taxes based on what the current tax laws are. 04:38 And then we have to change those. 04:40 So the new tax brackets for 2025, 2000, 10%, 12%, 22, 24, 32, 35, 37. 04:48 Those are the brackets 04:50 And you can see there’s a big jump between 12 and 22. 04:54 And not only, and they’ve done a fairly good job. 04:58 of making there be no marriage penalty. 05:01 So if you’re single, your your 22 ends at 103 and a married couple 206 05:08 No penalty. 05:09 The penalty actually comes into play when you’re in the 35% going into the 37%. 05:15 At that point, if you are both high income earners. 05:20 Um, you know, there is a lot of penalty because you lose a huge amount of money uh being married at that point. 05:27 But up until you get past the 32 or a couple making more than about six hundred thousand dollars. 05:33 You don’t really have much of a marriage penalty at this point. 05:36 Not too sure why we have any marriage penalty. 05:39 It doesn’t really make a lot of sense. 05:41 But you know what? 05:42 No one really asked us. 05:43 So all we can do again is dealing with the tax picture. 05:47 All right. 05:48 So then we’ve got mortgage interest. 05:49 Here’s some good things about the OBBBA, the new one, the deduction for mortgage interest. 05:56 Of course, that stays if you have a home for $750,000. 05:59 You purchase it after December 17th, that’s the mortgage you can have. 06:03 So if you have a home today you purchased last year and the mortgage is a million dollars, you will not get 100% of your mortgage interest. 06:13 You will have to take a percentage based on how much the mortgage is and based on what you’re allowed, up to 750. 06:19 If you had a pre-existing to the 2017, then you had a million-dollar cap. 06:26 So it’s important for that information to be provided to whoever’s doing your taxes, right? 06:30 They should ask you that information. 06:32 Now, most of the time on the 1098, it will say the origination date. 06:36 So we don’t always have to ask, but we need to know it. 06:39 This is something that I’m not too sure if people know interest on a loan for a second home is still allowed. 06:46 So I have a lot of people that do have second homes. 06:48 Maybe they have a home here. 06:50 Home in Florida. 06:51 I have one that has one in California and his second home is in Utah because that’s where the two families are. 06:57 And they don’t rent them. 06:58 They don’t do anything. 06:59 It’s a 06:59 true traditional second home a mortgage on both as long as those mortgage interest up to uh value of the home was seven hundred and fifty thousand 07:09 You will only be able to deduct the interest on the first $750 of the combined value of loans on your first and second home 07:17 So again, that $750,000 is the prior or is the priority number. 07:24 So if you’ve got a first on your home, your your main home and it’s 07:28 400,000 and you have a second with a home of 350, we’ll be able to take all the mortgage interest. 07:35 If your first home is already at 750 and you have a second home, we will not be able to 07:40 take any more of that mortgage interest. 07:43 But you know, a lot of times people can can do that and make it work. 07:47 The new state and local tax deduction, we call it SALT tax. 07:52 state and local tax deduction. 07:54 And that’s where we take off our property taxes, the sales tax, that’s the two main ones, and then your primary home and if you have different properties, you can add additional properties. 08:06 We have it up now, now it’s jumped up to 40,000, right? 08:10 For the last couple of years, we were locked in at $10,000. 08:14 very hard to um really do um where where we would bunch. 08:19 We did bunching. 08:20 So every other year, like every even year, I made sure I doubled up on my property taxes 08:25 I had any big purchases I tried to do in the even years and and did that so that way I could maximize my property taxes and then take my mortgage interest, etc. 08:36 etc. 08:36 Right 08:37 Um you don’t have that uh as concern now because the ten thousand we we weren’t able to do it. 08:44 I mean with my property tax and my standard sales tax 08:47 I was already basically hitting that number and many of my clients were. 08:51 So what you do have is now the ability to go back to bunching 08:56 Right? 08:56 Because again, we’re going to talk about how much money you have to have to meet those standard deductions, but you know, if 09:04 If you’re single and you’ve got more than 15,000, great. 09:07 Uh if you’re over the age of 65, it’s like 17,000. 09:10 If you’re single and if you’re married, it’s like 31. 09:13 5, plus if you’re over the age of 65, you get an additional 3,200. 09:19 plus another 12 based on your income. 09:22 We’re going to talk about that new one on the OBBB or the one big beautiful bill. 09:28 Talk a little bit about how that um 6,000 per person over the age of 65. 09:33 Remember, this show is live, so if you want to join us, 615 09:37 737-9986-615-737-9986 is the phone number here. 09:46 So we’ve talked about bunching, we’ve talked about the sales tax. 09:48 The only other thing that really hits the itemization. 09:51 Uh there’s two things. 09:53 The next thing would be medical expense. 09:55 This one is a a very difficult because first thing you have to do is you gotta figure out what your adjusted gross income is. 10:02 Then you have to take off the top 700 7. 10:05 5%. 10:07 So, you know, if you have $100,000, 7. 10:09 5%, $7,500 would be not deductible. 10:15 So if you had $8,000 in medical, you’d only get $500 of that applied to your itemization. 10:21 So if that’s the case on this 10:24 Then, you know, and it does cover everything. 10:26 It’s surgeries, you know, petro for or or miles for yourself, um, qualified appliances, glasses, all that stuff, right? 10:34 You you can add it all together 10:35 Um, the ones that I find that mostly, unless you have high medical and fairly low income, then you can sometimes and I mean there are times when I I mean 10:44 I always hope that you have low medical because that means your health is good. 10:47 Cause sometimes I do have people that spend twenty, thirty, forty thousand dollars a year, but they’ve usually went through something horrific like cancer or they’re fighting something at a lot of out of pocket cost. 10:58 But the other is if you are a person that’s taking care of or helping maybe your parents and they’re in assisted living. 11:05 Keep in mind assisted living normally a portion, if not all, depending on the situation 11:11 um could be considered a medical deduction, right? 11:15 Because they have to stay in these facilities. 11:17 Someone has to tell them or give them their 11:20 prescription, someone has to help them with their hygiene. 11:23 Someone has to help them maybe even get up in and out of bed or or showering and bathing. 11:29 These are essentials. 11:30 If they can do all that themselves, then no, that’s not essential. 11:33 They may be living in an assisted living just because it’s easier, but it may not be essential. 11:37 But most of the people we deal with, it’s really essential that they’re in there. 11:41 And then 11:41 Now you really you know you might want to consider where the money’s coming from because if you’re spending $70,000, $80,000 for um assisted living or or dementia care or whatever 11:51 Um, you know, now we we are going to have a huge medical deduction that you want to maximize. 11:57 And maybe at that point, instead of using money that’s been saved, you might want to consider taking IRA distributions if they have some or something. 12:04 All right, we’re gonna get ready to take our first break. 12:06 We get back, we can have you on the phones at 615-737-9986. 12:11 We’re gonna continue talking about some of the changes that’s happening for the 2025 taxes. 12:16 We’ll be right back with the Dr. Friday show. 12:20 Common at the last Alrighty, we are back here for the video talking about time. 12:31 Many of you have listened and 12:33 And and followed me for a number of years. 12:36 Obviously it’s been what 14, 15 years now. 12:38 Uh but you know, just the last eight years we had what the Tax Cuts and Jobs Act that happened what 2017 12:45 Then we had Inflation Reduction Act of 2022, and now we have the one big beautiful bill or the OBBBA in 2025. 12:55 And this is just what’s happened, you know, in just in the last eight years. 12:58 We’ve had a number and it within those, you know, like the one big beautiful bill took and made several of the TCGAs, the the tax act, um 13:09 bills permanents, right? 13:10 They they made them through and then some of ’em were actually made permanent through the other uh through the tax act. 13:17 So 13:17 All of these are ones that are working. 13:19 Now I do want to say that I was talking about the new salt tax, uh, the state and local income tax, which we had the $10,000 limit on, and in 2025 that goes up to $40. 13:30 That has not necessarily been like a permanent thing, right? 13:33 We know it’s going to 40. 13:35 It’s also going to have an income phase out. 13:38 So 13:39 We have to be careful. 13:41 The way that a lot of these credits are coming to us are going to be income-based. 13:48 subjected to income limitations. 13:50 Most of these new temporary phases. 13:54 So the main ones are, of course, is tips. 13:58 Qualified tips, qualified overtime, the $10,000 loan up to $10,000. 14:07 You have an additional $6,000 for seniors over the age. 14:09 These are all 14:11 subjected to income limitations. 14:14 So if you have um an upper income situation and some of these 14:19 sound great because I was just doing someone’s 2025 already. 14:23 Yes. 14:23 Well we were estimating to give them an idea of what their estimates should be. 14:28 So we make sure we don’t underestimate this year. 14:31 Um, and we were going through the numbers and we were thinking we were going to have a wonderful benefit of an additional six thousand dollar deduction because this person was over the age of sixty-five. 14:42 But due to their income, that benefit did not show up. 14:47 And it took us a while because we’re all new at some of these and we haven’t really done 14:51 you know, hundreds of tax returns yet. 14:53 So we don’t have all of the exact details on that. 14:56 But that limitation um was 15:00 Pretty um, it seems like a limiting 75,000, but it basically phases, starts phasing out, and then it phases all the way out at like 175 for a single, and then it’s like 150 and it phases totally out by like 250. 15:12 Um 15:14 It’s just one of those things where it it sounds so great, but when you’re really working on the the information that’s being given to you. 15:22 And this person, the the problem was 15:25 um or not the problem, but the situation was this person had a large stock that they went ahead and sold to take care of, paying things off and, you know, making themselves more comfortable in 15:37 um retirement. 15:38 And at the time didn’t really know. 15:41 She did this early in the year. 15:42 She didn’t know anything about this six thousand dollar deduction. 15:45 And she could have, maybe she would have. 15:47 I don’t know. 15:48 uh moved it down and maybe took a portion this year and a portion next year, um, it was on the table. 15:54 But for us, it really wasn’t going to save tax dollars, right? 15:57 So 15:57 We didn’t know. 15:58 And that’s always the hard sense. 16:00 So basically the deduction is reduced six cents for every dollar over your modified adjusted to gross income over the initial threshold. 16:08 So if you are 16:10 eighty thousand dollars, um you’re gonna take six cents out of every dollar that’s above the $75,000, so $5,000, and you’re gonna reduce your $6,000 by that 16:21 It uh seems fairly straightforward, but you know, a lot of times people, especially as we get closer to retirement, and I deal with a lot of financial planners. 16:30 There seems to be a point where we’re really just trying to get the houses paid off, making sure we have the cash flow, reduce the overhead cost, and some of that sometimes can trigger these things. 16:39 So, you know, I’m just saying that you may hear a lot about these different deductions. 16:45 But sometimes they’re not going to apply to you. 16:47 It’s really that simple. 16:48 They’re just not going to um take in the effect. 16:52 I mean, most of the energy credits 16:54 uh for like clean vehicles and ever all those you had to uh purchase before September 30th. 17:00 Uh corporate law did get extended and uh I had an interesting conversation with a financial guy um yesterday, uh Friday. 17:08 And um he had an interesting, he was under the he’s a young guy, very young, um, and he just had the idea that a corporation should be paying more in tax instead of building up their 17:20 finances and that would help reduce the uh overall cash flow that the government has. 17:28 And you know 17:30 I totally disagree with that, to be quite honest. 17:33 I feel that a corporation’s tax is flowed down to the people that are the consumers 17:38 And the profits that mi corporations make show up in the stock portfolio, which my portfolio, if I’m invested with them and I’m invested with 17:46 Thousands of stocks in my 401k, or in my case, a SEP, then my CEP improves when those businesses do good. 17:53 So in essence, I’m getting a portion of that 17:57 Growth when I invest into these kind of companies. 18:00 And so my opinion, them paying more in taxes doesn’t help. 18:06 And also 18:07 you know, I find that a large number of these companies also have a very large charitable fund that, you know, they get a tax deduction for. 18:15 It doesn’t, you know, I mean there’s an advantage to them for it. 18:19 But it still doesn’t stop the fact that that also helps billions of dollars into the f the the charitable markets to help people, you know, feed children and everything else. 18:30 So 18:30 Everyone’s got their own opinion. 18:32 My opinion is that. 18:34 There is the new Trump fund. 18:38 I do want to bring this up because 18:40 If you have a child that was born as of January 1st, 2025, and I think it goes through December of 28. 18:49 They will put in the a in account. 18:51 You have to file this with your tax return. 18:53 So your tax person needs to know this. 18:55 But basically it comes down to is they’ll if you have a child and that was born 19:00 The first of this year or anytime after the first of this year, um, there’s a $1,000 account that the government will set up. 19:08 And I do believe I read something about a grant of $250,000 19:13 given by Dell Corporation for the first, I don’t know, 200 million or something like that. 19:19 So if you if you’re on top of it, you may qualify for both. 19:22 And then 19:23 Grandparents, aunts, uncles, or parents can put up to $5,000 into these accounts up until the age of 18. 19:32 Um the the the cool thing about this is is that normally we don’t have a lot of vehicles where we can put money into these counts. 19:40 for a minor child that’s not working. 19:42 Sure, as soon as your child goes to work, we can help put money into Roth IRAs, whatever their W-2s are. 19:49 w uh you know, Roth IRA could theoretically be gifted to them and that money could go into a Roth um and that would start. 19:55 But that’s usually fifteen, sixteen years old. 19:58 I don’t know what age kids start working nowadays, but in that ballpark. 20:02 Um, and then only grandparents or parents can really help and maybe the kids would actually contribute some. 20:07 But again, there’s not a lot and you’d hope to be able, but this would be the first 20:12 Let’s say fifteen years then and then they go to get a job and then maybe they can help fund the money. 20:17 I think it is great to teach everyone. 20:19 I mean it’s 20:20 It’s hard when you’re just making a few dollars on every paycheck and your petros is sp is is the entire paycheck. 20:26 Uh but you do, you know, if possible, teaching them that portion of every check should go to I had a 20:33 uh financial another a different financial guy and he was telling me he works so the rule of thumb that ten percent for savings, ten percent for church 20:42 and um and 80% or whatever for for lifestyle, something like that. 20:47 I seem like it was like 70%. 20:48 I’m missing 10% on something. 20:50 Uh, but that was his his whole mathematics. 20:53 So you should be living off basically 70% of your paycheck, not 100. 20:57 And that’s true. 20:58 We all know that, right? 20:59 We should never be living off 100% of our paychecks. 21:02 You owe me it’s always savings. 21:03 So it’s 10% uh retirement, 10% church, and 10% savings. 21:08 That way, you know. 21:10 you lose your job or your boss is a butthead and you need to change your jobs. 21:11 You 21:13 Um you’re not sitting there trying to figure out how you’re going to pay your rent or putting up with somebody because you don’t have the extra money to be able to 21:21 do what you need to do to move up in the chain. 21:24 So, you know, it’s and it’s I’m not going to tell you it’s not easy for someone to tell you this versus living it because 21:30 um a lot of things happen, your car breaks down. 21:32 But that’s where the savings come in, right? 21:34 I mean, you do have the ability because if you don’t have savings, guess what? 21:38 You’re getting into a credit card most likely. 21:40 And then the credit card, you’re gonna pay twice as much as what you paid if you had cash. 21:44 because you have to pay them money and you don’t pay it off fast enough, it’s gonna have interest in penalties and everything going there. 21:50 So I’m just saying it’s it’s not as simple, but ideally 21:55 um these these accounts. 21:56 And you need to tell, I mean, again, that tax person should know that. 22:00 But some of you guys do your own tax returns when you get ready to 22:04 um do them. 22:05 And if you do, make sure you’re looking out for that because, you know, you want to I’m I’m gonna assume there’s going to be a question um, you know, about the the Trump fund and what it has and everything. 22:17 But 22:17 uh you you are going to want to make sure that you qualify because $1,000 is a thousand dollars. 22:23 Now you can’t really take it out early and it’s very important that you um 22:28 you know, do what you have to do. 22:31 And you can look it up yourself. 22:32 It’s called the Trump account. 22:34 And no one should be shocked that we actually have something called the Trump account. 22:37 But it is an investment fund. 22:39 The money is invested for you. 22:41 You take it out early. 22:42 If you take it out anytime before you full retirement, basically, there is a penalty. 22:47 Um, it’s just like an IRA in many ways, but 22:50 I do think it’s important, I mean again, even if you never fund any of it, it’s a thousand dollars that this child would have and who knows what it would be worth. 22:58 assuming that the market holds or whatever, um keeping it moving forward. 23:03 But it is one of those things. 23:05 You can go to trumpaccounts. 23:08 gov also if you want to know more about that. 23:11 Again, I don’t have children, but anytime someone’s going to give away some free money, I want to make sure my listeners know that it’s available. 23:18 And then it’s another thing. 23:19 I mean, because you have the 529 plan. 23:22 As a parent or as grandparents, I am somewhat I’ve been researching them because I had a friend that actually got involved and I thought back back when they first started 23:34 There was some pretty bad features to it, right? 23:37 You couldn’t pay for your your rent, you couldn’t pay for almost anything. 23:41 It just basically could go towards um college uh tuition. 23:45 at at the beginning. 23:46 So now it goes for everything, right? 23:48 Tuition, fees, books, supplies, equipment like computers, room, board for students enrolled at least half the time. 23:54 Tuition for elementary. 23:56 and secondary public, private, or religious schools up to the federal limit of $10,000 annually per beneficiary, increasing to $20,000 in 2026. 24:07 So, you know, um those are those are huge. 24:10 And that’s a great way again, great way for grandma and grandpa, aunts and uncles to help 24:14 Do something with that. 24:15 All right, we’re going to take a second break. 24:17 If you want to join the show, you can. 24:18 615-737-9986. 24:22 We’ll be right back with the Dr. Friday show. 24:28 Alrighty, we are back here live in studio and you can join us live 615-737- 24:37 9986 and we have Ross on the line and Ross tell me what I can do for you 24:52 I’ll be starting collecting social security next year and I’m gonna be signing up for it 24:56 And I was wondering, do I need to withhold like uh withhold is you know as far on taxes? 25:03 ‘Cause I’ll be I will I be taxed on that? 25:04 ‘Cause I I understand there’s no tax on social security. 25:07 Are they doing away with that or 25:09 No. 25:10 I’m glad you asked, Ross, because it seems to be somewhat of a miscommunication throughout the uh internet or whatever. 25:17 Basically what they’re giving is if your income is within a limitation 25:22 you will qualify for a six thousand dollar deduction, which will reduce your income tax based on your income bracket. 25:29 So yes. 25:30 I mean, are you only receiving Social Security? 25:32 I missed part of that, Ross, and I’m sorry. 25:34 Is it only Social Security or do you have a job too? 25:37 No, no, no, I I’m retired now. 25:38 I mean I I receive a pension and plu well with pension and interest, you know, I I’ll probably earn about maybe thirty five thousand 25:45 And uh course I’ll be collecting social security starting and I said, Well should I withhold taxes on that too or cause it again? 25:53 Do you withhold anything on your pension right now 25:56 Yes, I do, yes. 25:57 I c currently hold like I don’t know fifteen, twenty percent in that range, but uh right, and you usually get a fairly decent refund every year. 26:05 Yeah, yeah, uh roughly yeah, just a little bit. 26:07 I usually break even or maybe owe a little about a hundred dollars, so it’s pretty close. 26:12 Yeah, so I will say yes, because 26:14 If you’re making $35,000 before Social Security, they do what’s called the provisional tax code, which basically take half of your Social Security. 26:22 and add it to your other income. 26:24 If it’s over twenty five thousand, you’re gonna pay tax on Social Security. 26:28 Well yours is gonna be over twenty five because you’re already over twenty five before we even add social 26:32 security so I would suggest at least having 10% coming out. 26:37 I don’t know if they do percentages or how they do it, but um I would suggest yes, have some withholding coming out of your social security. 26:44 Okay, that’s what I’m talking about. 26:46 Otherwise, but if you don’t have enough taken out, I I believe you’re penalized, aren’t you? 26:50 Well there’s a there is always a penalty in the first year you wouldn’t be, but after that they would require you to pay quarterly or estimated payments and that’s a real pain. 26:58 as far as I’m concerned. 27:00 Okay. 27:00 Okay. 27:01 I got you there. 27:01 Okay. 27:02 All right. 27:02 Well I appreciate the information and have a Merry Christmas. 27:05 Thank you. 27:05 Merry Christmas, sir. 27:06 Thank you. 27:07 Um, and that was a great question because I will tell you and I let let me go over that one more time because um for some of you you may have just tuned in and some of you may have no idea. 27:17 You may have just been listening to the radio and you’re like, oh wow, who’s this person talking about tactics? 27:21 right before Christmas. 27:22 What a fun person that person is. 27:24 Well I am Dr. Friday, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. 27:31 That’s all I do. 27:32 I do taxes or I represent those that are either having IRS audits or haven’t filed for 10 years or five years or two years or they 27:40 have balanced dues, but maybe they don’t qualify for a fresh start or an offering compromise. 27:45 Maybe they have to do a partial payment plan or a payment plan. 27:48 Um, you know, it and it’s not as crazy. 27:52 Um 27:53 I have one that’s just closing right now. 27:55 The gentleman owes close to $300,000 and he’s going to settle for a little over $100. 28:01 So obviously it’s not always 28:04 You know, you hear on the radio so often and people call all the time, Oh, I I can only, you know, I p I owe four hundred thousand dollars, but can we settle it for like twenty 28:13 Um, and you know, first it’s based on your assets, based, then it’s based on your income. 28:18 And it there is a mathematical way of figuring out what the IRS would expect. 28:24 uh you to pay. 28:26 And if you can settle, that’s great. 28:29 And this gentleman was very happy to get this 28:32 off his back. 28:33 He knew, I mean, we pretty much came within I think like they came back counter countered us like six, seven thousand dollar difference. 28:39 Um and he was 28:41 uh very happy to be able to just get this done. 28:44 And that’s you know, but even after that, he has to stay current for the next five years. 28:49 they will keep his refund for the first year. 28:51 Usually after that they don’t. 28:53 But these are the different things you have to deal with and you want to make sure that you are uh ready to be in compliance because sometimes people 29:03 Um, what want and I’ve had more than one case. 29:05 I’ve gone all the way, we’ve made the deal, and two years later or three years later, I find out that they haven’t filed taxes or they haven’t paid and they want to set up a payment plan. 29:13 Nope, you cannot do that. 29:15 You have to be paying your quarterlies. 29:16 you have to stay on top of it. 29:18 Um and some people are just not good at that. 29:21 Other people are really good at it. 29:23 So um if you if you have problems with the IRS or you need help or you’re just trying to figure out where to start, working on right now a guy that has to file for 29:31 2014 forward because of uh IRS already filing certain tax returns. 29:37 So these are all the kinds of things we we do, and we have no problem in helping you. 29:41 All right, so let’s go back to some of the changes that are happening in taxes or things that people might need to know. 29:48 This next one is not really a change, it’s capital gains. 29:51 We all have heard about capital gains forever, but 29:56 There is the 0% capital gains, which I feel doesn’t get as much love as it should. 30:01 Sometimes people basically have no real income. 30:05 And maybe they’re sitting on some stocks, and maybe it would be a good idea to sell some of them. 30:13 So 30:14 If you’re only on social security making 20 or 30 grand, um likeliness is you have some wiggle room to potentially 30:21 Cash out $10,000, $20,000, $30,000 in in stock. 30:25 You know, I mean, and again, you need to have an expert calculate it, figure out what it’s gonna be and where you’re at, but that is the important part. 30:32 And then you have the 10%. 30:33 I’m sorry, the zero, and then you have the fifteen percent. 30:36 Now the 15% truly only goes for 200 for a single person and 250 for a married 30:44 Then we have the investment tax that kicks in and it’s based on capital gains. 30:49 So I don’t know why most people don’t talk about this fact because I have so many people come in and say, hey, I’m in the 15% tax bracket. 30:56 I made less than $500,000. 30:59 Well, no, because the last 250 of that that you had really was taxed at 18. 31:05 8 or an additional 3. 31:07 8 is in there 31:08 Oh no one tell me about the and that’s a bit of a shock when you’ve got a couple hundred grand of of stock or capital gains going through. 31:16 So it’s always important to make sure that you’re minimizing your tax. 31:20 And we always love capital gains. 31:22 Don’t get me wrong. 31:23 Capital gains are a good thing to do 31:25 But it is important to make sure that you know where it’s coming from and what it’s going to do and you know just the whole reaction to it. 31:33 So again, we were talking a little bit about um 31:38 Going back and let’s talk a little bit about the standard deduction, right? 31:42 We have a standard and we itemize. 31:45 Harder and harder to itemize 31:47 15,750 for a single person right now, 2025. 31:53 23625. 31:55 31,500. 31:57 These are the amounts for everyone that is under the age of 65. 32:02 If you’re a single person over the age of 65, you go from 15,750 to 17,750. 32:09 You have to have a decent amount of charitable contributions, a decent mortgage or property tax thereof, something to kick you over that dollar amount. 32:18 Head of household was 23,625. 32:20 Again, if you’re over age 65, you would also get the $2,000, which would be $25,625. 32:28 Again, you have to have it. 32:29 But the married couples, you’re at you’re already at $3150, $31,500. 32:34 And then 32:35 Because you’re married, they they don’t give you the full $2,000 a person, they give you $1,600, which brings you up to $34,700 32:45 Then if you’re over the age of 65 and your income is within those limits we talked about for the Social Security deduction credit that they’re giving. 32:54 I don’t want to call it a credit because a credit is a dollar for dollar. 32:56 This is a deduction. 32:58 Um then, you know, theoretically that’s what 46. 33:02 7? 33:03 46. 33:04 7 is what you basically are going to be getting. 33:07 That could give you a little wiggle room in there. 33:09 So, I mean, and think, you know, itemizing means you have to spend more than that. 33:14 So that’s when we get back into that conversation. 33:16 Like some of my people sometimes we do bunching 33:19 Um and again when I use the word bunching, all I’m talking about is paying your property taxes. 33:25 Um, because you can pay property tax right now you could pay your 2025 proper 2026 property tax, but it’s not due. 33:33 until February, right? 33:34 So you could pay the one in February, one in December, and then you get to count them both in that same year because they were paid and we do taxes on the cash basis. 33:44 Same thing with charity. 33:45 You can maximize some of your charitable deductions and even big purchases. 33:49 Sales tax in this state is great, but we pay a lot, right? 33:53 9. 33:53 75 in most areas 33:55 And then you want to turn around and add on top of that, maybe you purchased a car or maybe you refurnished the whole house. 34:01 I was just talking to a guy that brought a brand new house and he didn’t 34:04 take any of his finances. 34:05 So he repay so he was going to go back and just do some. 34:08 So we have the opportunity on the tax return that says actual or or calculation. 34:14 And if you have your actual sales tax that you paid throughout the year. 34:18 That is a deduction you can use or or just adjustments like I was talking about, brought a new boat, car, motorcycle, and paid the sales tax. 34:27 Those would be things that you could also add in with the normal calculation based on your income. 34:33 Um it really just depends. 34:35 If you’re you’re like me and you you like to spend money a little bit too much 34:39 Your your sales tax will probably calculate better if you tracked it versus if you’re uh fairly frugal and you know you don’t go out and spend too much money outside of the normal things. 34:49 But just keep in mind groceries we pay 34:51 Sales tax, um, restaurants, food, clothes, um, even most of the gifts and things you buy, a lot of them have sales tax involved. 35:01 So 35:02 Just putting that out there because it is a way to help reduce your taxes. 35:05 But I do find that most people do better if they do the bunching. 35:09 And it looks like you might be able to do that, at least for 2025. 35:12 So right now might be a good year for you to go back and take a look at your sales tax. 35:16 before you do your taxes because this year you might be able to exceed because we’ve got that 40,000 instead of 10, so you can actually show up with you know a $4,000 or $5,000 sales tax number 35:29 and not have to worry about kicking over the ten thousand dollars and then we just lost the difference. 35:34 It didn’t help us much. 35:35 And of course for all of you that might live in another state 35:39 California, Alabama, Mississippi, Kentucky, all of you guys have a state income tax. 35:44 Therefore, the state income tax will kick in it, which is great. 35:47 My one brother lives in California and he’s usually leaving 35:50 you know, ten twelve thousand dollars under the salt tax. 35:53 So um anyone in a state would would benefit from that. 35:56 All right, we’ll come back. 35:57 We’ve got one more 35:59 uh session and when we get back you can also call us 615-737-9986. 36:04 We’ll be right back with the Dr. Friday show. 36:14 Alrighty, we are back here live in studio. 36:17 This will be the last bit for today. 36:19 And so if you have been waiting and you’re curious to have a 36:22 Question answered, you can at 615-737-9986. 36:28 So we’ve been talking about some changes. 36:30 We’ve been talking about different things that are going to be happening here. 36:32 We’ve got tax season that’ll be opening up very soon. 36:35 uh for the 2025 taxes open up in 26. 36:39 So the Secured Act of 2. 36:41 0 major changes increase the age for the RMDs. 36:44 That was probably one of the big things, right? 36:46 Age 73 beginning as of January 1st, 2023, and then it’s increasing age 75. 36:55 So at some point in my life, I will be 75 to do the RMDs. 36:59 Um, but people have, and they reduce the penalties. 37:02 So sometimes 37:03 People don’t even realize they should be taking these because personally I think the fiduciary people drop the ball. 37:10 Um, I mean, you you receive a fee for managing a 401k or an IRA or whatever 37:15 Least you could do is notify the person that they have a common uh penalty or they need to be taking these distributions. 37:23 And so they did go from 50% down to 25%, which is better than nothing. 37:28 Index the $1,000 age 50 IRA catch-up provision was 37:33 uh going to go with inflation since 2024. 37:36 So that extra $1,000 that you can put if you’re in it if you have an IRA and you have $7,000, you’re over the age of $50, you can put in $8,000. 37:44 And double the age catch-up limits for participants in deferred plans like 401ks, 403Bs, they have um ability to double up age 60 through 63. 37:55 These are important numbers because 37:57 Uh let’s be honest, a lot of times people have a really difficult time, um, especially when you’re first starting out and you you have your house, your family, your kids. 38:06 And then, you know, kids are getting ready to go to college and all these different things. 38:10 And the one thing you don’t really think about is how much you’re putting into retirement because sometimes you just have to have the money in the house 38:17 So now hopefully the kids get to age and then you can spend a lot more time doubling up and doing what you want. 38:23 But now it this is something that could still possibly be done before the end of the year. 38:29 um would be if you are 70 and a half and have money in IRAs, you can take an RMD, a required minimum distribution, not a mandated one, but you can do one for a qualified charitable deduction. 38:43 And what’s beautiful about that, most of people are sometimes trying to um, well, for one, if you’re giving money to a charity out of your pocket or out of the bank account, you’ve already paid tax on it. 38:52 And maybe you’ll be able to itemize it, maybe not. 38:55 But this is a direct deduction. 38:57 So this is only good for people over the age of 70 and a half and that people that have money in IRAs or 401ks, 403Bs, a deferred account. 39:06 Then you can go and have a fiduciary individual write a check to your church, to your charity, to feed the children, whatever it is you want to do. 39:14 And they that whatever that checks for, they’ll come to you on a 1099R, but it will not be taxable, not a dollar of it. 39:22 So it’s a much cleaner way for you to give money 39:26 to a charity than it is giving it through your bank, paying it through your credit cards, doing any kind of auto draft. 39:34 Anything like that, we’ve already paid tax, right? 39:36 Because if it’s in my bank account, I either will owe taxes at the end of the year or I have paid taxes already on that money. 39:43 So 39:44 It is so much smarter. 39:46 And again, this is just reiterating, this is only for people that are over the age of 70 and a half and have deferred programs. 39:54 But 39:54 If that’s a large number of people, a lot of people have IRAs and things like that. 39:59 So if you are one of those people, um, and if you can’t do it in time for 2025, 40:05 Think about maybe they, you know, doing something like that starting in 26. 40:09 Instead of writing checks to your your church, instead of giving money to your big charities, and I’m not talking about the $25 to the Girl Scouts and all of that. 40:19 I doubt your fiduciary individual is gonna love that. 40:22 But I’m talking about the the church that you give two or three thousand dollars to. 40:25 I’m talking about any of those kind of, you know, cancer foundations, towers, any of those um 40:32 That but a lot of my clients are very big givers. 40:35 And if you’re not giving at that age through that forum, then you’re leaving money on the table and you’re allowing Uncle Sam to take the money out. 40:45 of the money before you give it to a retirement uh to a nonprofit. 40:49 And that just doesn’t make any sense. 40:51 I mean it’s kind of like leaving your IRA to a trust 40:56 And yet you want to give a third of all your assets or ten percent of your assets to um a charity. 41:03 I mean, again 41:05 You need to go right from your IRA or 401k directly to the charity. 41:10 That way there’s no distribution, no tax before the charity gets their money. 41:14 Charity’s not paying tax. 41:15 That’s why they’re a nonprofit. 41:17 I mean, it has to be a legitimate 501c3, but you don’t have to worry about it. 41:22 And it gives you the tax deduction. 41:24 And if you’ve got a good financial planner, a good tax person, they should be talking about these strategies. 41:30 What I’m talking about doesn’t work for just one person. 41:33 It’s not going to be a one-size-fit-all. 41:37 But you know what? 41:38 That’s not the way taxes or financial planning or money works. 41:43 You know, one guy can go out to work and he ends up, you know, being the owner of the business. 41:48 The next guy ends up never changing the same job he started at his entire life. 41:52 Why? 41:53 Because things happen. 41:54 Life’s different. 41:55 Everyone’s life is different. 41:56 Things you you can’t just look at one size fits all. 41:59 So when you’re dealing with finances or you’re dealing with financial person or attorneys 42:04 or um anything like that, you’re gonna find that you need to find the ones that match because next couple weeks um you’re gonna have recorded shows coming out. 42:14 And uh you’re gonna have one that’s gonna have a great financial planner, Hank Perrott. 42:19 We’re also gonna have a security company because 42:22 I have realized going through to so many of these security seminars that at least to the best of anyone’s ability, especially a small business. 42:33 We need to take the bull by the horn, right? 42:35 We need to to at least have somebody because I’ll be honest, I’m not a computer person. 42:40 I mean, I know how to turn on, do my work, and do what I need to do. 42:43 But I couldn’t tell you how all of it works. 42:44 And I certainly can’t tell you how AI is going to interact with everything. 42:48 And am I opening up some sort of back door because my thermostat in the office 42:53 um is on my internet. 42:55 These are the kinds of things these guys do. 42:57 And so you’re gonna have a whole um day of of listening to that. 43:01 And then of course you guys just heard Russ Cook last week. 43:05 And um he’s a a wonderful estate attorney and I mean I’ve known him for 30 years as well. 43:10 Russ Cook, uh Russ and Telman Associates, but 43:13 Again, these are the kinds of people you need to have as a team. 43:16 If I were to have any New Year’s resolution for any of my listeners or my clients. 43:22 Um, you know, it’s to get yourself a team. 43:24 We’re not gonna all live forever. 43:26 It’s not gonna happen. 43:26 And the best way for us to leave things in good condition for the next generation 43:31 would be to make sure that we have a good attorney. 43:34 If something comes up, they know who to contact, a good financial planner so that they know the money is being handled, a good tax person, so that they’re not paying taxes on things they shouldn’t be. 43:44 or cashing things out thinking everything should be cashed out and then I’ll distribute, but maybe that’s not the best idea. 43:49 I had a case where the girl just went in, the she she was the executor, so she would went in and cashed out all the stocks, cashed out everything. 43:58 um which created a huge tax, even though some of it was a step up in basis, there was still a lot of money in IRAs that could have been deferred and spread over ten years to each custodial 44:08 or each uh beneficiary, there are ways, even five years through the trust if that’s what you want. 44:13 Don’t just cash everything and say I just want the money because that’s the the wrong idea. 44:19 Because 44:19 Only the only person that wins in those kind of conversations is the IRS. 44:23 Same thing with divorce. 44:24 I have couples that come in and they’re smart, right? 44:27 They’re like, okay, here’s the situation, here’s what we have 44:30 How can we, you know, how can we make this work where we’re not paying more money in taxes? 44:34 Because there are ways, especially if there’s children and things. 44:37 And then you have the ones that just 44:39 Don’t care and they, you know, hey, I don’t want my ex-wife to have anything, or I don’t want my ex-husband to get anything, so I’ll just do this. 44:46 And only person that wins in that is the IRS, right? 44:49 So it’s fine if you want the IRS to get richer, but let’s be honest, the IRS does not manage money. 44:54 Or it’s i it’s not even the IRS. 44:56 I mean the IRS collects, but it’s the government that spends the money, not the IRS. 45:00 Um they’re really uh um a big collection company and management. 45:04 Anyhow, I hope you guys all have a wonderful Christmas. 45:08 Again, this will be my last show for the year, so I want to make sure that you guys enjoy. 45:12 If you are an existing client and you have not yet 45:16 got on the calendar for the 2025 taxes or 2026 tax season, please call our office the first of the week and we will make sure we sent you. 45:25 And a lot of you guys are probably getting 45:27 Some emails from our office. 45:29 We’re trying to make sure again, we’re going through a lot of uh security different things, so lockboxes and different things. 45:34 We’re just trying to make sure all of your information is as safe. 45:38 as it can be and making sure that we’re doing everything we can, uh, you know, as much as we can with the information um provided. 45:45 So 45:46 If you um are wanting to have a tax person, again, call our office and we’ll do our best to get you on the schedule. 45:52 And um I hope that you guys, when you’re 45:54 out there enjoying Christmas, think about those that are maybe not as uh fortunate and you know share a little of the uh 46:02 Good times with everybody else. 46:04 If you want to reach our office, 615-367-0819-615-0 46:10 367-0819. 46:13 Check us out on the web also. 46:14 It’s drfriday. 46:16 com, drfriday. 46:17 com. 46:17 Or you can email. 46:18 Sometimes that’s the easiest way to get me. 46:20 Friday at drfriday. 46:23 com. 46:23 Again, Friday at drfriday. 46:26 com. 46:26 Cop you later.

Dr. Friday Radio Show – December 13, 2025

Dr. Friday Burke — Tue, 16 Dec 2025 16:28:54 +0000

Is your estate plan a “cure” or a “woe” for your family? In this episode, Dr. Friday is joined by board-certified estate planning attorney Russ Cook of the Cook Telman Law Group. With over 30 years of experience, Russ dives into the critical steps every family should take to protect their assets from creditors, minimize taxes, and avoid the public headaches of probate. From the dangers of putting children on bank accounts to the massive tax benefits of Tennessee Community Property Trusts, this episode is a masterclass in financial peace of mind.

Summary

Essential Documents: Every adult should have a Durable Power of Attorney (financial), a Healthcare Power of Attorney, and a Living Will to ensure decisions are made if they become incapacitated.
The Joint Account Trap: Russ advises against adding children’s names to bank accounts. Doing so exposes your money to your child’s creditors, lawsuits, or divorce settlements. Use a Power of Attorney instead.
Will vs. Trust: A Will must go through probate—a public, court-supervised process. A Revocable Trust remains private, avoids probate, and allows for a seamless transition of assets.
Special Needs Planning: Learn the difference between Third-Party Supplemental Needs Trusts (which protect government benefits for heirs) and First-Party “Payback” Trusts.
Tax-Saving Trusts: Discover how a Tennessee Community Property Trust provides a full “step-up in basis” on assets after the first spouse passes, potentially saving survivors thousands in capital gains taxes.
When to Update: Review your estate plan every 2 to 7 years, or immediately following life changes like marriage, divorce, or the acquisition of new real estate.
Business Protection: Business owners should ensure their LLC or corporate interests are correctly titled in their trust to avoid legal gridlock or forced liquidations upon death.

Episode FAQ

Q: Why shouldn’t I just put my child’s name on my bank account to help me pay bills?A: If that child gets sued, files for bankruptcy, or goes through a divorce, your bank account becomes an asset their creditors can seize. Filing a Power of Attorney with your bank grants them the ability to help you without the legal risk to your funds.

Q: Does a Revocable Trust change how I use my money day-to-day?A: No. A revocable trust is not a separate tax entity during your lifetime; you remain the trustee and beneficiary. You can buy, sell, or refinance assets just as you did before.

Q: Can I put my IRA or 401(k) into my trust?A: You shouldn’t transfer ownership of a retirement account to a trust while living, as the IRS will view it as a total distribution and tax it immediately. Instead, you should name the trust as the beneficiary of the account.

Q: How does a “Spendthrift Trust” work?A: This is designed for heirs who may struggle with addictions or poor financial choices. The money is managed by a trustee who doles out funds for the heir’s needs rather than giving them a lump sum that could be lost quickly.

Transcript

Dr. Friday Radio Show – December 6, 2025

Dr. Friday Burke — Mon, 08 Dec 2025 20:43:35 +0000

G’day! In this episode of the Dr. Friday Show, the Doctor is in the house to help you navigate the end of the year and prepare for the 2025 tax season. Dr. Friday breaks down the major changes introduced by the “One Big Beautiful Bill” (OBBB), including shifting tax brackets, new credits for families, and substantial changes for service industry workers. Whether you are looking to maximize your retirement contributions before December 31st or trying to understand the new rules regarding auto loan interest, this episode is packed with essential financial advice.

Episode Summary Points:

Year-End Retirement Planning: Reminders to maximize 401(k) contributions before the final paycheck of the year and utilizing Spousal IRAs.
The “SALT” Cap Increase: The State and Local Tax (SALT) deduction cap has increased from $10,000 to $40,000 for the 2025 tax year.
Social Security Taxation: Clarification that Social Security is not tax-free, but seniors (65+) now receive a qualified deduction ($6,000 for individuals, $12,000 for couples).
Service Industry Tax Breaks: New exemptions for federal withholding on tips (up to $25k) and overtime pay (up to 250 hours).
Auto Loan Interest Deduction: A new ability to deduct up to $10,000 in interest for new, U.S.-assembled vehicles purchased for personal use after Dec 31, 2024.
Student Loan Updates: Warning regarding the expiration of forgiveness programs in July 2026 and hardship deferments in 2027.
Estate & Gift Tax: The annual gift exclusion rises to $19,000 per person for 2025.
The “Trump Account” for Children: Details on the $1,000 government contribution for U.S.-born children starting in 2025.

Episode FAQ:

Q: Is Social Security income tax-free in 2025?A: No. Social Security can still be taxed up to 85%. However, under the new bill, there is an additional standard deduction for those age 65 and older ($6,000 for singles, $12,000 for married couples) which may reduce your overall tax liability.

Q: Can I deduct the interest on my car loan on my 2025 taxes?A: Yes, but there are strict requirements. The vehicle must be new, assembled in the U.S. (VIN starting with 1, 4, or 5), purchased after Dec 31, 2024, and used solely for personal reasons. The deduction is capped at $10,000 in interest and phases out for high-income earners.

Q: I have a teenager who is working. Can I put money into an IRA for them?A: Absolutely. As long as the child has earned income, you (or a grandparent) can contribute to a Roth IRA in their name. You can contribute up to the amount they earned or the annual limit ($7,000), whichever is lower.

Q: Are there stimulus checks coming for seniors in 2026?A: There are discussions about a potential payment (rumored around $1,390) for low and middle-income individuals in 2026, but this is not yet confirmed. If it happens, Social Security recipients likely won’t need to file extra paperwork to receive it.

Transcript:

00:01 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07 She’s the how-to girl. 00:09 It’s the Doctor Friday show. 00:15 If you have a question for Dr. Friday, call her now. 00:17 737-WWTN. 00:19 That’s 737-9986. 00:23 So here’s your host, financial counselor, and tax consultant, Dr. 00:27 Friday. 00:30 G’day, I’m Dr. Friday, and the doctor is in the house. 00:34 We are here live in studio and we are going to be talking about planning for 2025. 00:42 some of the things that came in with the one big beautiful bill,

Dr. Friday Radio Show – November 15, 2025

Dr. Friday Burke — Mon, 17 Nov 2025 15:55:42 +0000

On this episode, Dr. Friday dives into critical year-end tax planning strategies and offers expert advice for listeners facing tough IRS issues. From the tax implications of an inheritance to navigating W-4 withholding for multiple jobs, Dr. Friday provides actionable steps to protect your finances. Learn the pitfalls of dealing with national tax resolution firms, the strict rules for vehicle deductions, and the importance of diligent record-keeping for your business. Plus, get crucial advice on coordinating with your financial planner and attorney to ensure your estate plan is sound and your assets are protected.

Summary Points:

Inheritance & IRS Levies: If you owe back taxes, the IRS can place a levy on your inheritance. Dr. Friday stresses the importance of dealing with tax issues proactively before they become a family matter.
Choosing a Tax Resolution Firm: Beware of companies promising settlements for “pennies on the dollar.” Dr. Friday explains how to identify legitimate help and avoid firms that delay and overcharge without delivering results.
W-4 Withholding Issues: An employee questioning why federal taxes aren’t being withheld may not be earning enough to meet the threshold. For those with multiple jobs, it’s crucial to either have extra money withheld or make quarterly estimated payments to avoid a large tax bill.
Quarterly Estimated Taxes are a Must: For the self-employed, paying quarterly taxes is not optional. Dr. Friday warns that failing to do so can result in penalties, which are calculated monthly.
Vehicle Deductions (Section 179): Purchasing a large vehicle for your business doesn’t guarantee a 100% deduction. It must be a necessity for your industry, and you cannot claim 100% business use if it’s your only vehicle.
Business vs. Hobby: If you consistently lose money in a side business while working a full-time job, the IRS may reclassify it as a hobby, disallowing your loss deductions.
The Importance of Record-Keeping: Dr. Friday emphasizes the need for small businesses to maintain accurate profit & loss statements and mileage logs. For homeowners, keeping receipts for all improvements is vital to increase your cost basis and reduce capital gains tax when you sell.
Year-End Financial Coordination: This is the time to speak with your financial planner, tax professional, and estate attorney. Discuss Roth conversions, portfolio adjustments, and review your will or trust to ensure it reflects your current life circumstances.

Episode FAQ

Q1: I’m inheriting some property, but I owe the IRS from previous years. What should I expect? A: You should expect the IRS to find out about the inheritance and place a levy against the estate for the amount you owe. This can delay the distribution of assets and make your financial issues known to your family. It is crucial to contact a tax professional to address the debt before this happens.

Q2: My employer isn’t taking out any federal income tax, even though I requested extra withholding. Why is this

Dr. Friday Radio Show – October 25, 2025

Dr. Friday Burke — Mon, 27 Oct 2025 11:21:59 +0000

This week, Dr. Friday discusses the approaching 2024 tax deadline and dives into significant new tax deductions for 2025 concerning overtime pay and seniors over 65. The show also covers crucial topics such as the tax implications of selling a home, how large income events can trigger higher Medicare (IRMAA) payments, the right way to deduct business mileage, and how to navigate tax filings during a divorce. Dr. Friday offers practical advice for W-2 employees, self-employed individuals, and business owners to help them stay compliant and financially sound.

Key Summary Points

Approaching 2024 Tax Deadline: Time is running out to file 2024 tax returns. Due to a disaster extension in Tennessee, taxpayers have until November 3, 2025, to file returns and make payments.

New Overtime Pay Deduction (2025-2028): A new law allows employees to deduct the “premium” portion of their overtime pay (the “half” in time-and-a-half). The deduction is capped at $12,500 for single filers and $25,000 for married couples, with phase-outs for higher earners. Employers will need to track and report this, and employees should update their W-4s to adjust withholding.

New Deduction for Seniors (2025-2028): Taxpayers aged 65 and older will be eligible for an additional $6,000 deduction ($12,000 for married couples). This is available whether you itemize or take the standard deduction but is phased out for those with higher incomes. This may create an opportunity for strategic IRA withdrawals or Roth conversions.

Capital Gains on Home Sales: Dr. Friday reminds listeners that the old rule of deferring taxes by reinvesting home sale profits into a new property no longer exists. Gains exceeding the primary home exclusion ($250,000 for single, $500,000 for married) are taxable.

Medicare IRMAA Surcharges: A large, one-time income event, such as selling a home, can lead to an Income-Related Monthly Adjustment Amount (IRMAA), causing higher Medicare premiums two years later. Dr. Friday notes that successfully waiving this for a home sale under a “life-changing event” is very difficult.

Business Mileage Deductions: To claim mileage, you must have a clear business purpose for traveling from a specific Point A to Point B. The IRS requires a detailed and timely log including the date, destination, purpose, and mileage for each trip.

Taxes and Divorce: Filing jointly means both parties are responsible for the tax debt, regardless of what a divorce decree says. If you lack trust in your spouse’s financial reporting, consider filing as “Married Filing Separately” to protect yourself.

W-4 Withholding Accuracy: Dual-income households should review their W-4s. If both spouses claim “Married” and also claim the children without checking the box indicating their spouse also works, it can lead to significant under-withholding and a surprise tax bill.

Estimated & Payroll Taxes: Self-employed individuals are reminded that estimated tax payments are mandatory. Due to the disaster extension, the first three quarterly payments for 2025 can be made by November 3rd without penalty.

Dr. Friday Radio Show – October 18, 2025

Dr. Friday Burke — Mon, 20 Oct 2025 13:10:08 +0000

On this beautiful Saturday, Dr. Friday tackles some confusing tax changes and answers crucial listener questions. The show kicks off by clearing up the chaos around the 1099-K reporting thresholds, explaining exactly what the “One Big Beautiful Bill” means for individuals using payment apps like PayPal and Venmo. Dr. Friday also dives deep into a significant new tax deduction for seniors, outlines key tax strategies for year-end, and provides guidance on navigating taxes after major life events like the death of a spouse or a divorce.

Summary

1099-K Thresholds Clarified: After some initial confusion, Dr. Friday clarifies the final 1099-K reporting rule under the “One Big Beautiful Bill.” For 2025, the threshold is $20,000 in gross revenue or 200 transactions. Most everyday users of platforms like PayPal and Venmo will not meet this threshold.

New Tax Deduction for Seniors: A temporary deduction is available from 2025 through 2028 for individuals over 65 receiving Social Security. The deduction is $6,000 per person ($12,000 for a married couple) and is added to your standard or itemized deduction. Income phase-outs begin at $75,000 for single filers and $150,000 for joint filers.

Tennessee Tax Deadline: A reminder for all Tennessee residents that the deadline to file 2024 taxes and make any associated payments is November 3, 2025.

Strategic Roth Conversions: Dr. Friday suggests that the new senior deduction may create an opportunity. The resulting tax savings could be used to fund a Roth IRA conversion, potentially allowing you to move money into a tax-free account at a lower cost.

Filing Status After a Spouse’s Death: For the tax year in which a spouse passes away, the surviving spouse can still file as “Married Filing Jointly.” If a refund is due, Form 1310 will be required to issue the check to the surviving spouse.

Gifting Rules Explained: The annual gift tax exclusion for 2025 is $19,000 per person ($38,000 for a married couple). For larger gifts, you can utilize the lifetime gift exemption, which is set to be $15 million per person starting in 2026, without incurring gift tax, though a gift tax return must be filed.

Episode FAQ

Q1: I use Venmo to pay my dog sitter and split dinner bills with friends. Will I get a 1099-K and have to report this as income?

A: No, not unless you receive over $20,000 and have more than 200 transactions for goods and services in 2025. After some confusion, the “One Big Beautiful Bill” reverted the threshold to this higher amount, meaning most individuals using payment apps for personal transactions or small side jobs will not receive a 1099-K.

Q2: I’m 68 and on Social Security. Am I getting a $6,000 check from the government with the new senior tax break?

A: It is not a check or a direct payment. It is a new $6,000 deduction that lowers your taxable income. The actual tax savings depends on your tax bracket. For example, if you are in the 10% tax bracket, a $6,000 deduction would save you about $600 in taxes. This deduction also

Dr. Friday Radio Show – October 11, 2025

Dr. Friday Burke — Tue, 14 Oct 2025 20:25:03 +0000

With the November 3rd deadline for 2024 tax returns fast approaching, Dr. Friday is in the studio to tackle some of the most pressing tax questions. In this episode, she breaks down the new “one big beautiful bill,” specifically clarifying the $6,000 deduction for seniors over 65 and how it impacts your bottom line. Dr. Friday also dives into the complex tax implications of selling rental real estate, including depreciation recapture and capital gains. Plus, she answers listener questions about the difference between a hobby and a business for tax purposes and offers crucial advice on common estate planning mistakes.

Summary Points

Upcoming Tax Deadline: The deadline to file 2024 tax returns is November 3rd, 2025, due to a federal disaster extension.

New $6,000 Senior Deduction Explained: For 2025, individuals over 65 receiving Social Security may qualify for a $6,000 deduction ($12,000 for married couples). Dr. Friday clarifies this is a deduction, not a credit, which reduces your taxable income. For someone in the 10% tax bracket, this equates to about $600 in tax savings.

Applying the Senior Deduction: This deduction can be added on top of either the standard deduction or your total itemized deductions, offering flexibility for all filers.

Tax Strategy for Seniors: The new deduction may create enough “taxable income room” for some retirees to perform a strategic IRA-to-Roth conversion at a very low or even 0% tax rate.

Selling Rental Property: When you sell a rental, you must calculate tax on two components:

Recapture of Depreciation: The total depreciation you claimed (or were entitled to claim) over the years is taxed as ordinary income.

Capital Gains: The remaining profit is taxed at capital gains rates, which can be 15%, 18.8%, or as high as 23.8% for high-income earners.

Estate Planning Warning: Dr. Friday strongly advises against putting your children’s names on your house deed or bank accounts to avoid probate. This can lead to significant capital gains taxes for them later and exposes your assets to their potential financial or legal troubles, such as lawsuits, divorce, or IRS levies. A power of attorney is a safer alternative.

Hobby vs. Business: A listener’s question prompts a discussion on the IRS rules for distinguishing a hobby from a business. To be considered a business, you must operate in a business-like manner with a clear intent to make a profit, not just for personal enjoyment.

Episode FAQ

Q: Is the new $6,000 tax break for seniors a check from the government? A: No, it is not a refundable credit or a check. It is a deduction that lowers your total taxable income. The actual tax savings depends on your tax bracket; for example, a person in the 10% bracket would save approximately $600 in taxes.

Q: I never claimed depreciation on my rental property. Do I still have to worry about “recapture” when I sell i

Dr. Friday Radio Show – October 4, 2025

Dr. Friday Burke — Tue, 07 Oct 2025 22:08:47 +0000

Dr. Friday is back in the house! After a couple of weeks away, she returns to tackle the most pressing financial questions. In this episode, Dr. Friday breaks down the crucial November 3rd tax deadline for 2024 returns and clarifies the rules around estimated tax payments for 2025. She also discusses the impacts of a potential government shutdown on IRS refunds, dives into the major changes from the “One Big Beautiful Bill,” including a massive increase in the SALT deduction and new, larger standard deductions for seniors. Later, she answers listener calls on everything from investing in mutual funds and inheriting IRAs to the best way to handle estate planning for your home.

Summary Points

Final 2024 Tax Deadline: The deadline to file your extended 2024 tax return is November 3, 2025, due to a federal extension granted to all Tennessee counties.

Estimated Tax Penalties: Dr. Friday clarifies that even with the filing extension, penalties can still apply for not making required estimated tax payments throughout 2024.

2025 Estimated Payments: For 2025, the first, second, and third quarter estimated tax payments are all due by the November 3rd deadline.

Government Shutdown & IRS: A potential government shutdown could delay IRS tax refunds and halt progress on resolution cases, like offers in compromise, as many IRS divisions would be short-staffed.

SALT Deduction Increase: The “One Big Beautiful Bill” increases the State and Local Tax (SALT) deduction from $10,000 to $40,400, a significant benefit for those with high property or state income taxes.

Major Deduction Increase for Seniors: Seniors over 65 receiving Social Security will see a substantial standard deduction increase. A married couple will see their deduction rise to $46,700, and a single person’s will increase to $23,750.

Tax Planning Opportunities: These larger deductions create room for strategic tax planning, such as performing larger Roth IRA conversions or selling stocks with capital gains at a lower tax impact.

Inherited IRAs: A caller’s question highlights that inheriting an IRA now falls under new rules requiring the funds to be withdrawn within 10 years, which can create a higher tax burden for the beneficiary.

Estate Planning for Your Home: Dr. Friday advises a caller not to put children on the deed to a house. Instead, using a will or, preferably, a trust ensures children inherit the property at a stepped-up basis, saving them from paying capital gains taxes if they sell it.

Episode FAQ

Q1: What is the final deadline to file my 2024 taxes if I filed an extension? Due to a federal disaster extension covering Tennessee, the final deadline to file your 2024 taxes is November 3, 2025.

Q2: I’m over 65. How much is my new standard deduction under the proposed “One Big Beautiful Bill”? If you are over 65 and receiving Social Security, the new standard deduction will be $23,750 for a single individual. For a married couple where both spouses are over 65 and on Social Security, the deduction will be $46,700.

Q3: I inherited my brother’s IRA. Do I have to take all the money out at once? Under the new laws, you are required to withdraw the entire balance of the inherited IRA within 10 years. This differs from the old rules that allowed you to stretch distributions over your lifetime.

Q4: Should I add my children to the deed of my house to make things easier when I pass away? No. Dr. Friday strongly advises against adding children to

Dr. Friday Radio Show – September 6, 2025

Dr. Friday Burke — Tue, 09 Sep 2025 12:16:42 +0000

On this rainy Saturday, Dr. Friday jumps right into critical tax information, starting with an urgent reminder about the upcoming September 15th deadline for S-Corps, Partnerships, and LLCs, which is not covered by the federal disaster extension. She then unpacks the major tax law changes coming in 2025, including a new senior deduction, tax-free tips and overtime, and a deduction for auto loan interest. Throughout the show, Dr. Friday answers a wide range of listener calls on topics from 1031 exchanges and Social Security earnings limits to fixing W-4 withholdings to avoid a surprise tax bill.

Key points from the show:

Urgent Deadline: The federal disaster extension to November 3rd does NOT apply to S-Corporations, Partnerships, and LLCs that were on extension. Their filing deadline is still September 15th.

2024 Contributions Still Open: Individuals under the federal disaster extension have until November 3rd to make contributions to their SEP, traditional IRA, or Roth IRA for the 2024 tax year.

New Senior Deduction (2025): Starting with the 2025 tax year, individuals over 65 may qualify for a $6,000 deduction, which will be added to their standard deduction to help reduce taxes on Social Security income. This is not a refundable credit.

Tax-Free Tips (2025): A new law will make up to $25,000 in qualified tips deductible, though this phases out at higher income levels ($150,000 for single, $300,000 for married).

Tax-Free Overtime (2025): The time-and-a-half portion of overtime pay will be non-taxable for W-2 employees from 2025 through 2028. Dr. Friday cautions that this likely won’t apply to 1099 workers.

Auto Loan Interest Deduction (2025): A deduction of up to $10,000 for interest paid on a loan for a qualified, US-assembled personal vehicle will be available for loans originated after December 31, 2024.

Episode FAQ

Q1: I thought the federal disaster declaration extended all tax deadlines to November. Is my business tax return also extended? A: No. While the federal disaster extension moved the deadline for individual returns to November 3rd, it did not change the deadline for S-Corporations, Partnerships, and LLCs. Those returns are still due on September 15th.

Q2: I’m over 65. How do I get the new $6,000 tax credit for seniors? A: It is a $6,000 deduction, not a credit, and it begins with the 2025 tax year, not 2024. It will be added to the standard deduction for qualifying individuals over 65, which will lower your taxable income. You do not need to amend your 2024 return.

Q3: My wife started collecting Social Security at age 62 and still works. How much can she earn before her benefits are reduced? A: The annual earnings limit for those taking Social Security early is around $21,000. This limit applies only to earned income from a W-2 or 1099 job, not to distributions from pensions or 401(k)s.

Transcript
Announcer 00:01-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. Announcer 00:07-00:09 She’s the how-to girl. Announcer 00:09-00:13 It’s the Doctor Friday show. Announcer 00:14-00:15 If you have a Question for Dr. Announcer 00:15-00:16 Friday, call her now. Announcer 00:17-00:19 737-WWTN. Announcer 00:19-00:23 That’s 737-9986. Announcer 00:23-00:27 So here’s your host, financial counselor, and tax consultant, Dr. Announcer 00:27-00:28 Friday. Dr. Friday 00:29-00:31 G’day, I’m Dr. Dr. Friday 00:31-00:37 Friday, and the doctor is in the house on this very, very wet Saturday. Dr. Friday 00:38-00:42 Actually, uh my my yard needed it, so I’m kinda happy we had som

Dr. Friday Radio Show – August 2, 2025

Dr. Friday Burke — Mon, 04 Aug 2025 11:58:24 +0000

She’s not a medical doctor, but she can cure your financial woes! On this episode, Dr. Friday dives into the most pressing tax topics for today. With the November 3rd extension deadline for 2024 taxes looming, she explains why it’s crucial to get those returns filed before you can effectively plan for the new year.

Then, she unpacks the massive changes coming in the 2025 tax year, including the highly anticipated tax credits for overtime and tips, and a new deduction for car loan interest. What do these changes really mean for your paycheck and your refund? Dr. Friday breaks down the rules, income limits, and what you need to do now to prepare. Plus, she answers listener questions on dealing with back taxes when selling property and the tax pitfalls of inheriting money.

Episode Summary

2024 Tax Deadline Reminder: For those on extension, the deadline to file your 2024 taxes is November 3rd. Dr. Friday stresses the importance of completing your 2024 return to know your financial standing (e.g., carryovers) before planning for 2025.

Understanding the New 2025 Tax Credits: Big changes are coming, but they will affect your tax return, not your regular paycheck withholding.

No Tax on Overtime: This is a tax credit, not an exemption. It applies to the “time-and-a-half” portion of your overtime pay. It’s capped at $12,500 for single filers (income up to $150k) and $25,000 for married filers (income up to $300k).

No Tax on Tips: A similar credit structure applies to reported tip income, with the same income thresholds and credit limits. It will be crucial for this income to be properly documented and reported on your W-2.

New Car Loan Interest Deduction: Starting in 2025, you may be able to deduct interest on a loan for a new qualified personal vehicle purchased after December 31, 2024. This deduction is available even if you don’t itemize.

Retirement & Investment Payouts: A cautionary tale: when taking money from a retirement account, ensure enough is withheld for both the 10% penalty (if under 59 ½) and your ordinary income tax rate. Under-withholding can lead to a massive surprise tax bill.

Inheritance Tax Traps: Inheriting an IRA or 401(k) can create a large, immediate tax liability if you cash it out. Dr. Friday advises rolling it into a beneficiary IRA and spreading distributions over the allowed 10-year period to manage the tax impact.

Back Taxes and Asset Sales: If you’re in a deal with the IRS (like an Offer in Compromise) and sell a major asset like a condo, do not try to hide it. The IRS will likely find out via a 1099-S form and can revoke your deal for nondisclosure.

Episode FAQ

Q1: Is my overtime pay going to be completely tax-free in 2025?

A: Not exactly. It’s a tax credit, not a complete exemption from tax. You will still have taxes withheld from your paycheck as usual. When you file your 2025 return, you can claim a credit based on the “half” portion of your time-and-a-half overtime pay, up to a maximum credit of $12,500 for single filers and $25,000 for married couples, subject to income limitations.

Q2: My friend is selling a condo but owes the IRS back taxes. His banker said he could hide the money. Is that a good idea?

A: No, this is a very risky idea. The sale of real estate generates a Form 1099-S, which is reported to the IRS. If your friend has an agreement with the IRS (like an Offer in Compromise), a sudden influx of cash from an undisclosed asset can cause the IRS to review and even revoke the deal, demanding the full original amount owed. Transparency is key.

Q3: I inherited an IRA. Should I just cash

Dr. Friday Radio Show – July 19, 2025

Dr. Friday Burke — Mon, 21 Jul 2025 18:55:11 +0000

On this episode of the Dr. Friday Show, the doctor is in to dissect the massive new tax law, the “One Big Beautiful Bill” (OBBB). Have you heard that Social Security is now tax-free? Dr. Friday clarifies the misinformation and breaks down what the new $12,000 Social Security tax credit really means for retirees. Are you an employee who earns tips or overtime? She explains a new deduction that could put thousands back in your pocket and what this new reporting means for both employees and employers. Plus, she covers other surprising provisions like new “Trump Accounts” for newborns and the expiring electric car credit. Later in the show, she answers listener calls about avoiding estimated tax penalties, the specifics of the Social Security credit, and the strict rules for selling investment property. Tune in for essential, practical advice to help you navigate the 2025 tax year!

Summary Points

De-Mystifying the “One Big Beautiful Bill”: Dr. Friday breaks down the key provisions of the new tax law passed on July 4th, focusing on what you need to know now to prepare for the 2025 tax year.

The New Social Security Tax Credit: Learn about the new credit of up to $6,000 (single) or $12,000 (married) for Social Security recipients. Dr. Friday explains the income phase-outs and the many unanswered questions about how it will be applied on your tax return.

A Big Change for Tipped and Overtime Workers: A new deduction of up to $25,000 (for joint filers) for income from tips and overtime could mean big refunds. This also creates new reporting responsibilities for employers and highlights the need for employees to be vigilant about their pay stubs.

Advice for Employees and Employers: Dr. Friday stresses the importance of checking your pay stubs now to ensure tips and overtime are tracked correctly. She advises employers to get their payroll systems ready for the new W-2 reporting requirements.

Planning for 2025 and Beyond: Discover other OBBB provisions like government-seeded “Trump Accounts” for newborns and the impending phase-out of the electric car tax credit in September 2025.

Warning on IRS “Pennies on the Dollar” Schemes: Dr. Friday cautions listeners about misleading ads for tax settlement. She explains the reality of IRS negotiations and that the IRS will look at all your assets—including 401(k)s and home equity—when determining your ability to pay.

Caller Q&A: Listeners get answers on how to avoid estimated tax penalties, the specifics of the new Social Security credit, and the strict rules of a 1031 property exchange.

Episode FAQ

Q: The government sent a notice saying my Social Security benefits won’t be taxed anymore. Is that true?

A: Not exactly. While a new tax credit has been introduced for 2025, it’s not a complete elimination of the tax for everyone. Under the new law, taxpayers with a Modified Adjusted Gross Income (MAGI) under $75,000 (single) or $150,000 (married) may receive a credit of up to $6,000 or $12,000, respectively, to offset the tax on their Social Security benefits. The standard calculation of taxing up to 85% of your benefits still applies; this credit then works to reduce or eliminate that tax liability. The credit phases out completely at higher income levels ($175k for single, $250k for married).

Q: How does the new tax deduction for tips and overtime work?

A: For the 2025 tax year, workers can take a deduction for up to $12,500 (single) or $25,000 (joint) of their combined income from tips and overtime. To claim this, the income must be properly reported on your W-2 form by your e

Dr. Friday Radio Show – July 5, 2025

Dr. Friday Burke — Tue, 08 Jul 2025 16:13:20 +0000

The doctor is in, and she’s unpacking the “one big, beautiful bill” that was just signed into law. On this episode, Dr. Friday gives her first take on the massive tax changes set to take effect in 2025. What does this mean for your family, your business, and your retirement?

Listen in as Dr. Friday discusses the most significant updates, including a huge increase in the SALT deduction, the potential return of the car loan interest deduction, new tax credits for tip and overtime workers, and a major change to how Social Security benefits are taxed for many Americans. While the ink is barely dry and the IRS is still scrambling to create the new forms, Dr. Friday provides the essential information you need to start preparing now. Plus, she answers listener calls about the home sale exclusion, the nuances of the new Social Security deduction, and a crucial update on the Beneficial Ownership (BOI) reporting requirement for businesses.

Episode Summary

Here’s a breakdown of what we covered in this episode:

Breaking Down the New 2025 Tax Bill:

SALT Deduction: The State and Local Tax (SALT) deduction cap is set to increase from $10,000 to $40,000 for most taxpayers, with a phase-out for individuals earning over $500,000.

Tax-Free Tips & Overtime: A new credit is being introduced for income tax on tips (up to $1,300) and overtime pay (up to $1,400), primarily for workers in the 12% tax bracket. Social Security and Medicare taxes will still apply.

Social Security Tax Relief: A new deduction or credit of 4,000−6,000 will be available for Social Security recipients, with income phase-outs starting around $75k for singles and $150k for married couples.

Child Tax Credit: The credit is expected to be renewed at the $2,000 level, preventing the scheduled drop to $1,000.

Car Loan Interest: The deduction for interest paid on car loans is back on the table, though specific details (like whether itemization is required) are still unknown.

Charitable Deduction: An “above-the-line” deduction for charitable contributions for non-itemizers (similar to the one during COVID) is expected to return.

Caller Questions & Key Clarifications:

A caller’s question prompts a crucial update on the Beneficial Ownership Information (BOI) report: As of March 2025, filing is voluntary for domestic companies with no foreign owners.

The primary home sale exclusion ($250k single / $500k married) remains unchanged by the new bill.

Dr. Friday confirms all these new tax provisions are effective for the 2025 tax year, which you will file in 2026.

IRS & Tax Filing Advice:

Dr. Friday explains why 2024 tax refunds might be delayed, citing increased IRS fraud checks and return complexity.

A reminder about the federal disaster extension, which pushes the filing deadline to November 3rd for affected taxpayers.

The critical importance of staying in compliance by making quarterly estimated tax payments to avoid penalties and interest with the IRS.

Episode FAQ

Q: Will my tips and overtime pay be completely tax-free now?

A: Not entirely. The new law creates a tax credit against your federal income tax for tips and overtime pay, up to a certain limit ($1,300 for tips, $1,400 for overtime). This benefit is aimed at lower-income earners, likely those in the 12% tax bracket. You will still owe Social Security and Medicare taxes on this income. Dr. Friday stresses the importance of keeping detailed pay stubs as documentation will be required.

Q: Do I need to file that Beneficial Ownership Information (BOI) report for my small business?

A: This was a key clarification. As of March 21, 2025, the requirement to file the BOI report is voluntary for domestic companies that do not have any f

Dr. Friday Radio Show – June 21, 2025

Dr. Friday Burke — Mon, 23 Jun 2025 13:45:01 +0000
On this episode of the Dr. Friday Show, the doctor is in to cure your financial woes with a masterclass in tax-saving strategies. Dr. Friday tackles the complex financial decisions that come with major life events, from caring for aging parents and managing inheritances to navigating unexpected job loss. Discover the crucial difference between gifting property and inheriting it, learn how to leverage pre-tax dollars for nursing home care, and get expert advice on handling IRS collections. With calls from listeners covering everything from dependent care credits to capital gains on a home sale, this episode is packed with practical, actionable advice to help you keep more of your hard-earned money.
Topics Covered
Retirement & Estate Planning:

Tax-efficient strategies for paying for nursing home care using IRA funds.

Understanding the 10-year rule for inherited Traditional and Roth IRAs.

A “dollar-for-dollar” strategy to offset taxes on inherited IRA distributions.

The importance of using a will or trust to transfer property to preserve the step-up in basis.

The tax pitfalls of adding a child’s name to a property deed (quitclaim deeds).

Using IRAs as a vehicle for charitable donations.

Tax Credits & Deductions:

Qualifying for the Child and Dependent Care Credit with summer day camps.

Claiming aging parents who live with you as dependents.

Rules for claiming grandchildren or other relatives living in your home.

Warnings about improperly claiming a significant other’s children.

IRS & Tax Issues:

The 3-year statute of limitations for claiming an IRS tax refund.

How to appeal to the IRS for a late refund based on extenuating circumstances (COVID, death of a spouse).

How to handle tax debt with the IRS and state tax authorities (Alabama).

What assets the IRS considers during collections (home equity, extra vehicles, second homes).

The importance of compliance before making an Offer in Compromise.

The risks of having your name on a minor child’s bank account when you have tax debt.

General Tax Questions:

The tax implications of gifting money to an adult child (annual gift exclusion).

Managing capital gains tax on the sale of company stock through payroll withholding vs. quarterly payments.

Calculating the tax basis of a primary home after making major improvements.

Understanding the primary home sale exclusion ($250,000 single / $500,000 married).

Episode FAQ
Q: The IRS says I filed my return too late to get my refund. Is there anything I can do? A: While there is a strict three-year rule for claiming refunds, you can write a letter of appeal to the IRS. Explain any extenuating circumstances that caused the delay, such as the death of a spouse, personal health issues, or other significant hardships that prevented you from filing on time. Q: My elderly parents moved in with me and only have Social Security income. Can I claim them as dependents? A: Yes. If you provide more than 50% of their support (which includes housing) and they live with you for more than half the year, you can claim them as dependents. Their Social Security income is not considered earnings and does not need to be reported on your return. Q: I’m helping my adult son financially while he’s unemployed. Is this tax-deductible for me or taxable income for him? A: It is neither. This is considered a gift. You can give an individual up to the annual gift exclusion amount ($19,000 for 2025) per year without any tax implications or need to file a gift tax return. The money is not considered taxable income for your son. Q: I’m selling my home for a large profit after my spouse recently passed away. What is the tax exclusion? A: For the year your spouse passes away, you can

Dr. Friday Radio Show – June 7, 2025

Dr. Friday Burke — Sun, 08 Jun 2025 12:41:15 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode Dr. Friday Show emphasizes one key theme: planning ahead! Whether you’re considering selling stock, dealing with inherited property, or navigating retirement accounts, making decisions before the fact can save you thousands in taxes. Dr. Friday breaks down complex topics like capital gains, recapture of depreciation on real estate, and the rules around 1031 exchanges. Plus, she provides a critical update for all Tennessee residents regarding the federal disaster extension and what it means for your 2024 tax filing and 2025 estimated payments. Tune in to hear answers to listener questions on Roth conversions, overseas property, and IRA contributions.

Summary Points

The Power of Planning Ahead: Dr. Friday shares a client story illustrating how planning a stock sale across two tax years (2025 and 2026) can keep you in a lower capital gains bracket and save thousands of dollars.

Navigating Capital Gains: Learn the difference between short-term and long-term capital gains and how you might qualify for a 0% tax rate on long-term gains if your income is below certain thresholds.

Understanding Real Estate Tax Implications: Dr. Friday discusses often-overlooked taxes like the “recapture of depreciation” on rental properties and how rezoning an inherited property after the owner’s passing can create a massive, unexpected tax bill.

Big News for Tennesseans: Due to a federal disaster declaration, the deadline for filing 2024 taxes and making the first three 2025 quarterly estimated payments has been extended to November 3, 2025. This also extends the deadline for 2024 contributions to IRAs, SEPs, and HSAs.

IRS Compliance is Key: You can’t make a deal or payment plan with the IRS unless you are in compliance. Dr. Friday explains how this applies to offers in compromise and what to do if you receive a CP-2100A notice about incorrect 1099 information.

Listener Questions Answered: Can you do a 1031 exchange for an overseas property? Do you need to make estimated payments after a Roth conversion? Can you contribute to both a Traditional and a Roth IRA? Dr. Friday answers these and more.

Common Pitfalls to Avoid: Are you and your spouse filling out your W-4 forms correctly? A simple mistake on the “spouse also works” checkbox is a common reason W-2 employees end up owing taxes.

Episode FAQ

Q: If I do a Roth IRA conversion this year that will cause me to owe taxes, do I need to make a quarterly estimated payment to avoid a penalty?

A: Not necessarily. The IRS requires you to pay in either 90% of the current year’s tax or 100% of the prior year’s tax liability. If your regular income and withholdings already meet 100% of what you owed last year, you can typically pay the extra tax from the conversion when you file without a penalty.

Q: Can I sell a property in the U.S. and use a 1031 “like-kind” exchange to buy a property overseas and defer the tax?

A: No. A 1031 exchange is only permitted for properties located within the United States. You would have to pay capital gains tax on the sale of the U.S. property.

Q: Do I need to report large vacation expenses to the IRS, like if I take my whole family on a trip?

A: No. Spending your own money on a family vacation is not a taxable or reportable event. It is considered a personal expense, not a gift or income.

Q: I contribute to a traditional IRA for the tax break. Can I also start and contribute to a Roth IRA?

A: Yes, you can contr

Dr. Friday Radio Show – May 17, 2025

Dr. Friday Burke — Tue, 20 May 2025 11:26:17 +0000

Join Dr. Friday, your go-to financial counselor and tax consultant, in this May 17, 2025 episode. Dr. Friday addresses pressing IRS concerns, including “love letters” for late business filings, processing delays, and the crucial three-year limit for claiming refunds. She dives into strategies for handling back taxes, the realities of the Fresh Start program, and settling tax debts. Callers bring real-world scenarios, discussing Tennessee’s unique tax filing extension, RMDs while still working, capital gains on property sales, and smart IRA withdrawal strategies in retirement. Get practical advice on AMT, the importance of wills and trusts, 1031 exchanges, and making informed financial decisions.

Topics Covered:

IRS “love letters” for late business tax filings (LLCs, S-corps) and first-time penalty abatement.

Current IRS processing delays and potential impacts of budget cuts.

The three-year statute of limitations for claiming tax refunds.

Consequences of filing multiple years of back taxes, especially regarding older refunds.

Strategies for dealing with IRS debt, including the Fresh Start program and Offer in Compromise realities.

Rules surrounding bankruptcy and its application to tax debt.

Tennessee’s special federal tax filing extension to November 3, 2025, due to storms, and its impact on individual returns and estimated payments.

Explanation of the Alternative Minimum Tax (AMT) and who it might affect.

The importance of having a will or trust for estate planning.

Caller question confirming the Tennessee tax filing deadline of November 3rd.

Discussion on making quarterly estimated tax payments, especially with the extended deadline.

Caller question about Required Minimum Distributions (RMDs) for a self-employed individual still working and contributing to retirement accounts.

Caller question regarding capital gains tax on the sale of an investment property, including calculating basis and tax rates.

Caller question on how much can be withdrawn from an IRA annually to minimize or avoid income tax in retirement.

Brief mention of 1031 like-kind exchanges for investment properties.

Considerations before using 401(k) funds to pay off a mortgage.

The importance of seeking tax advice before making significant financial decisions.

Overview of various IRS penalties (failure to file, failure to pay, failure to make proper estimates).

FAQ about the Episode:

Q: Is there a special tax filing extension for Tennessee residents mentioned?

A: Yes, Dr. Friday confirms a federal extension for Tennessee residents to file their 2024 individual taxes and make certain payments by November 3, 2025, due to severe storms. This also applies to 2025 Q1, Q2, and Q3 estimated payments.

Q: What is the time limit for claiming an old tax refund from the IRS?

A: Dr. Friday states that you generally have three years from the due date of the return (or the date filed, if later) to claim a refund. For example, 2019 refunds would likely be unclaimable by May 2025 unless specific circumstances apply.

Q: Can I really settle my tax debt with the IRS for “pennies on the dollar”?

A: Dr. Friday explains that while programs like Offer in Compromise exist, they have strict eligibility requirements based on your assets and income. It’s not a simple negotiation, and having significant assets (like home equity or retirement funds) can make qualifying difficult.

Q: What advice does Dr. Friday give about handling IRS problems?

A: She advises addressing IRS issues promptly, understanding the specific processes involved (like penalty abatement or

Dr. Friday Radio Show – April 26, 2025

Dr. Friday Burke — Sat, 26 Apr 2025 21:16:28 +0000

Welcome to the Dr. Friday Show from April 26, 2025! While she might not have a medical degree, Dr. Friday is here to diagnose and treat your financial and tax ailments. In this episode, Dr. Friday dives into the significant Tennessee-wide disaster tax relief extension announced by the IRS, clarifying who qualifies and how it differs from state relief. She also tackles common issues like dealing with multi-year tax debt, the implications of tax problems on marriage and home buying, understanding the difference between a hobby and a business, and takes listener calls on Social Security income rules and self-employment tax. Get ready for practical advice on navigating IRS complexities and planning for the future.

Topics Covered:

Federal Disaster Tax Relief for Tennessee:

All Tennessee counties qualify for IRS disaster tax relief due to various events (tornadoes, storms, flooding) over the past year.

Federal filing and payment deadlines (including quarterly estimates and payroll taxes) originally due around April 15th are extended to November 3, 2025.

This extension applies universally within TN, regardless of direct impact from the disasters.

Unlike normal extensions, the payment deadline is also extended without penalty for federal taxes.

This extension also applies to 2024 IRA contributions (usually due April 15th). SEP contributions are also extended.

State Tax Relief Distinction:

Tennessee state tax deadlines (Franchise & Excise, business tax, sales tax) are not automatically extended for everyone.

State relief is granted on a case-by-case basis only for those directly affected by the disasters.

Addressing IRS Tax Debt:

Importance of resolving past-due taxes, especially when facing life events like marriage or buying property.

Filing “Married Filing Separately” might be advisable if a spouse has pre-existing tax debt. IRS collection actions: liens (especially payroll) and potential wage garnishment (up to 100%).

High cost of ignoring IRS debt due to penalties (failure to file, pay, estimate, understatement – up to 25% each) and interest (mentioned ~12%).

Offer in Compromise (OIC): Possible but often not “pennies on the dollar,” especially with assets like home equity, multiple cars, or recreational vehicles (campers).

IRS may expect taxpayers to borrow against or liquidate assets to pay tax debt.

Hobby vs. Business Income:

Discussion using Dr. Friday’s beekeeping as an example.

Hobby expenses are only deductible up to hobby income (no losses allowed).

A true business requires intent and activity level aimed at profit.

Social Security & Income:

Caller question about interest income impacting SSDI/early retirement earnings limits.

Clarification: Passive income (interest, retirement distributions) counts for taxability of SS benefits but generally not towards the earned income limit that reduces early retirement benefits.

Proactive step: Requesting federal tax withholding from Social Security benefits (requires filling out Form W-4V, likely in person).

Potential impact of large income events (like stock sales) on Medicare premiums via IRMA (Income Related Monthly Adjustment Amount).

Self-Employment and Early Social Security:

Caller question about structuring a mowing business when one spouse is collecting early Social Security (under Full Retirement Age) and the other is past FRA.

Advice: Structure business under the spouse past FRA. Pay the spouse under FRA as a 1099 contractor, limiting their earnings to stay below the annual limit.

Note: The earnings limit is prorated in the first year of collecting benefits.

Self-Employment Tax Basics:

Dr. Friday Radio Show – March 22, 2025

Dr. Friday Burke — Mon, 24 Mar 2025 12:38:48 +0000

In this episode of The Dr. Friday Radio Show, Dr. Friday dives into the heart of tax season with critical updates, valuable guidance for filers, and answers to real listener questions. She covers everything from business tipping practices and tax bracket planning to BOIR confusion and capital gains insights—plus what to watch out for when trying to “save” on taxes with big purchases. Whether you’re a business owner, parent paying college tuition, or navigating retirement, there’s something here for you.

Topics Covered

Tipping & Payroll Compliance

TN Dept. of Labor’s rules on tip handling by employers.

Federal law mandates tips belong solely to employees.

Risks for businesses using tips to supplement payroll.

Filing Head of Household

When you can claim it (e.g., adult children, elderly parents).

Income thresholds and care requirements.

Earned Income Credit Restrictions

Not available for those over 65 or under 22 (with exceptions).

College Tuition & Tax Credits

Why higher-income families often miss out on education credits.

American Opportunity & Lifetime Learning Credit phaseouts.

Challenges with student loans and aid eligibility.

Do You Need to File?

Elderly individuals and filing thresholds.

How to calculate whether Social Security income is taxable.

BOIR (Beneficial Ownership Information Report) Update

Correction issued: Most U.S. small businesses no longer need to file under the Corporate Transparency Act.

2025 Gifting Limits

Increased to $19,000 per person without gift tax implications.

Capital Gains Tax Brackets

Yes, 0% capital gains tax exists—but income limits apply.

Breakdown of thresholds for individuals, married couples, and trusts.

How the 3.8% Medicare surtax can sneak in.

The Myth of ‘Buying to Save on Taxes’

Why spending $100,000 to save $16,000 in taxes isn’t wise unless the purchase is truly needed for business.

Deadlines and Extensions

S-Corp and Partnership tax deadlines passed (March 15).

April 15 personal tax deadline approaching.

Benefits of filing an extension—even if you still file on time.

Live Callers’ Questions

Can I claim my 28-year-old son as head of household?

Widowed caller unsure if she needs to file taxes.

What can higher-income parents do to lower taxable income while paying for college?

Donating a valuable historical item and using it to offset a Roth conversion.

Transcript
00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07-00:10 She’s the how-to girl. It’s the Doctor Friday Show. 00:10-00:22 If you have a question for Doctor Friday, call her now, 737-WWTN. That’s 737-9986. 00:22-00:27 So here’s your host, financial counselor and tax consultant, Doctor Friday. 00:27-00:34 G’day, I’m Doctor Friday and the Doctor is in the house. 00:34-00:36 It is actually a gorgeous Saturday outside. 00:36-00:40 I stuck my head out a little bit, been working on taxes all morning. 00:40-00:43 I bet some of you have been working on your taxes, I am sure. 00:43-00:51 So if you’ve got questions concerning about how to file taxes, maybe you’ve run into something on your tax return and you weren’t sure how it works. 00:51-01:00 I’ve had some really int

Dr. Friday Radio Show – March 8, 2025

Dr. Friday Burke — Fri, 14 Mar 2025 00:48:48 +0000

Welcome to the Dr. Friday Radio Show recap for March 8, 2025! Dr. Friday, a financial counselor and tax consultant, discussed crucial tax topics, business regulations, and answered live caller questions. If you’re navigating tax season or dealing with financial concerns, this episode provided valuable insights and updates to keep you informed and compliant.

Key Topics Covered:

Beneficial Ownership Information (BOI) Filing:

Deadline approaching (March 21, 2025) for businesses registered with the state.

Applies to LLCs, S-corps, C-corps, partnerships, and other entities.

Failure to file results in penalties of $592 per day.

BOI is required for transparency in ownership to prevent money laundering.

Tax Filing & Extensions:

Corporate tax returns (Forms 1065, 1120S) due March 15, 2025.

Importance of filing an extension to avoid penalties.

Individual tax deadline and when to consider filing an extension.

Handling Missing Tax Documents:

What to do if you haven’t received all necessary forms.

The importance of estimating income to avoid penalties.

Job Changes & Tax Implications:

W-4 form adjustments when switching jobs.

Checking the right boxes to prevent under-withholding.

Married couples and how incorrect W-4s can lead to unexpected tax bills.

Gifting & Tax Consequences:

Gift tax exemption limits ($18,000 per person in 2025).

Gifting real estate and how the recipient’s cost basis is determined.

Potential tax liabilities when selling gifted property.

Charitable Contributions & Deductions:

Standard deduction vs. itemizing for tax benefits.

How to maximize tax savings through direct IRA charitable contributions.

Donating vehicles: necessary documentation and valuation.

Capital Gains & Roth Conversions:

Long-term capital gains tax brackets.

Strategic Roth conversions to minimize tax burden.

Tax-efficient ways to manage stock and investment assets.

Upcoming Tax Code Changes in 2026:

Expiration of the current tax brackets.

Potential increases across income levels.

Implications for long-term tax planning.

Transcript
00:00-00:04 She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:04-00:08 She’s the how-to girl. It’s the Dr. Friday Show. 00:08-00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. That’s 737-9986. 00:19-00:24 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:28-00:32 Hey, I’m Dr. Friday and the doctor is in the house. 00:32-00:39 And we’ll be able to take your calls live today at 615-737-9986. 00:39-00:46 615-737-9986 is the number here in the studio. 00:46-00:48 So if you’d like to reach us, you can give us a call. 00:48-00:51 We’re working on taxes ourselves here in the office. 00:51-00:58 So if you have a question on preparing your tax return, maybe you’re dealing with something else, as far as maybe something came up in 2025. 00:58-01:07 Usually we have a lot of people that are either selling homes or inheriting property, and they’re not always sure how that’s going to affect the taxes. 01:07-01:09 Maybe you’re working on a conversion. 01:09-01:15 All of those come into pl

Dr. Friday Radio Show – February 22, 2025

Dr. Friday Burke — Tue, 25 Feb 2025 15:54:46 +0000

Join Dr. Friday, trusted financial counselor and tax consultant, as she dives into this week’s hottest tax topics! From IRS refund delays to capital gains on property sales, Dr. Friday answers listener questions and shares valuable tax-saving tips. Whether you’re wondering about earned income credits, qualified charitable deductions, or how to handle debt forgiveness on your taxes, this episode is packed with insights to help you navigate tax season 2025 with confidence.

Topics Covered:

IRS Refund Delays: Why some refunds, especially those with earned income credits, are held up and what to do if you’re waiting.

Claiming Dependents: Legal issues when biological parents wrongfully claim children on tax returns and how grandparents can file correctly.

Mileage Rate Updates: Business miles are 67 cents per mile in 2024 and 70 cents per mile in 2025—key deductions for self-employed individuals.

IRA Contributions: The deadline to contribute to traditional and Roth IRAs is April 15, 2025—how it can lower your tax bill.

Qualified Charitable Distributions (QCDs): How retirees over 70½ years old can donate pre-tax from their IRA to save money.

S-Corp Vehicle Transfer: Steps to legally transfer a company-owned vehicle to personal ownership and avoid IRS red flags.

Medical & Charitable Deductions: When out-of-pocket medical expenses and donations are worth itemizing vs. taking the standard deduction.

Debt Forgiveness & Taxes: How canceled credit card debt counts as taxable income and what options exist for reducing the impact.

Missing W-2 Forms: What to do if an employer goes out of business and fails to issue a W-2.

Real Estate Capital Gains: Why most homeowners don’t owe taxes when selling their primary residence under $500,000 in gains.

Business Owners Information (BOI) Act: Important March 21st deadline for LLCs and corporations to file required information.

Transcript
00:01-00:07 No, no, no. She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:10 She’s the how-to girl. It’s the Dr. Friday Show. 00:14-00:22 If you have a question for Dr. Friday, call her now. 737-WWTN. That’s 737-9986. 00:23-00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:30-00:33 G’day, I’m Dr. Friday and the doctor is in the house. 00:33-00:35 I am here live in studio. 00:35-00:42 So if you’re working on your taxes, just like I am for some of my clients, then this might be the perfect time to ask a question. 00:42-00:44 If you have any questions, you want to join the show. 00:45-00:46 737-9986. 00:47-00:50 737-9986 is the phone number here in studio. 00:51-00:53 And we’re talking about taxes, right? 00:53-00:57 There’s not been a ton of tax changes from 23 to 24. 00:58-01:00 Probably one of the biggest is the mileage. 01:00-01:02 Obviously, every year we get an adjustment. 01:02-01:04 In the last few years, it’s went up. 01:04-01:11 Who knows what the next year, but it’s going to be 70 cents in 25, 67 in 24 for business miles. 01:12-01:15 And it’s a little less for charity and also medical. 01:15-01:28 But mainly what you want to make sure and what I’m finding is I have had, obviously we’ve been doing taxes now and tax season open, basically e-file open in January, end of January, 27th, I think. 01:29-01:32 And I had a couple of people calling me. 01:32-01:39 I will say our office doesn’t do a lot of taxes where it comes to child earned income credits. 01:39-01:44 But I had a client that had been waiting and we filed it on the first day of tax season. 01:45-01:48 And she contacted the IRS because it’s been more than 21 days now. 01:48-02:01 And she was told that they don’t actually release f

Dr. Friday Radio Show – February 8, 2025

Dr. Friday Burke — Mon, 10 Feb 2025 15:46:40 +0000

On this episode of the Dr. Friday Radio Show, Dr. Friday tackles key tax season concerns, from handling 1099 discrepancies to adoption tax credits. She also answers listener questions about property tax freezes, Social Security taxation, and dealing with IRS notices. Tune in for expert tax tips and real-world scenarios to keep you informed and prepared this tax season.

Topics Covered:

Tax Season Prep: Ensuring you have all your W-2s, 1099s, and other necessary documents before filing.

1099 Income Mismatches: What to do when a 1099 doesn’t match what you received in the bank.

Adoption Tax Credit: Eligibility and how to claim up to $16,810 in 2024 for adoption expenses.

Dependent Care Tax Considerations: Qualifying conditions for claiming an elderly parent or adult child.

Property Sale and Taxes: How escrow delays affect when you owe taxes on home sale proceeds.

Head of Household Filing Status: Who qualifies and how it can increase deductions.

IRS Notices & Disputed 1099s: Steps to take when the IRS claims you owe taxes for income you never received.

Medical Reimbursement & HSAs: Reporting rules for HSA distributions and tax-free employer medical stipends.

Social Security & Taxes: Income limits before Social Security becomes taxable and filing requirements.

Property Tax Freeze for Seniors: How homeowners on limited income may qualify for property tax relief.

Extensions & Tax Payments: Why filing an extension doesn’t delay your tax payment deadline.

Transcript
00:00-00:03 G’day, I’m Dr. Friday and the doctor is in the house. 00:04-00:09 And if you want to join our show on this beautiful Saturday right before the Super Bowl, you certainly can. 00:09-00:14 You can join us at 615-737-9986. 00:15-00:19 615-737-9986. 00:19-00:23 Taking your calls. Talking about my favorite subject, which is taxes, which is what I’m working on all weekend. 00:24-00:29 But it’s also the time to think about what you’re going to be needing to organize, right? 00:29-00:34 It’s time for you to think, okay, so have I received all of my W-2s? 00:35-00:36 Did you work any part-time jobs? 00:36-00:41 Did someone send you a 1099, but it doesn’t match what you actually put in the bank. 00:41-00:46 Sometimes that happens, you know, sometimes depending on when they paid you. 00:46-00:51 I had a situation where one of my clients said, well, I didn’t get the check until January 4th, 00:51-00:53 but they mailed it and it was posted. 00:53-00:57 I mean, theoretically, it was dated December 21 or something like that, 21st. 00:58-01:02 So the 1099 was higher than they expected. 01:03-01:03 And that’s fine. 01:04-01:06 They wrote the check at the time that they received it, 01:06-01:10 and you’re cashing it at the time that you’re going to pay it. 01:10-01:12 Now, here’s the biggest problem. 01:12-01:17 If that is your only payment, and the IRS gets a check for more, 01:17-01:21 and you report less, you need to put explanation in there why. 01:22-01:25 The 1099, there is a way of doing that, but you want to explain it, 01:25-01:28 because otherwise the IRS is going to think you understated your income 01:28-01:30 based on what somebody had reported. 01:30-01:32 So it’s important that you address it. 01:32-01:34 You don’t just let it slide and then you turn around 01:35-01:38 and you’re like, oh, wow, what do I need to do on this 01:39-01:39 or whatever. 01:39-01:43 You need to make sure that you have all that information 01:44-01:48 because again, the IRS is going to match that information 01:49-01:51 and if you don’t hav

Dr. Friday Radio Show – February 1, 2025

Dr. Friday Burke — Tue, 04 Feb 2025 17:09:47 +0000

Welcome to another episode of the Dr. Friday Radio Show, where tax expert and financial consultant Dr. Friday breaks down the latest tax updates, answers listener questions, and helps you navigate the ever-changing world of taxation. With the 2024 tax season officially underway, this episode covers key topics such as capital gains taxes, IRS resolutions, filing deadlines, tax credits, and more. Whether you’re filing back taxes, dealing with IRS collections, or simply looking for ways to save on your return, Dr. Friday has you covered. Tune in and take control of your financial future!

Topics Covered in This Episode:

Tariffs and Their Impact: Discussion on upcoming tariffs, their potential effect on inflation, and whether they could lead to more U.S. jobs.

2024 Tax Season Updates: E-filing for tax years 2022, 2023, and 2024 is now open, with key deadlines to keep in mind.

IRS Resolution Issues: The need for more resolution officers to improve IRS collections and reduce unnecessary enforcement actions.

Filing Deadlines & Standard Deductions: Important changes to tax deadlines, standard deduction increases, and tax credit adjustments.

Earned Income Credit Age Restrictions: Explanation of eligibility limits for taxpayers under 25 and over 65.

1099-K Reporting Thresholds: New $5,000 threshold for 2024, with a planned reduction to $600 in the future.

Capital Gains Tax Concerns: A listener’s question about estimated taxes on a $350,000 capital gain and how it affects Medicare premiums.

Surviving Spouse Tax Filing: How widows/widowers should plan their income to stay within favorable tax brackets.

Electric Vehicle Tax Credits: Updates on tax credits for new and used EVs, including how they can be transferred to a dealer.

Health Insurance Marketplace Issues: Risks of underreporting income and surprise repayment obligations.

Home Sale Tax Implications: How long-term homeowners can exclude up to $500,000 in gains from taxes.

IRA Withdrawals & Tax Consequences: A caller’s question about missing the 60-day rollover deadline and its tax impact.

Transcript
00:00-00:02 Paid for by Dr. Friday Tax and Financial Firm. 00:03-00:09 For tax services, planning, business, and IRS negotiation, visit drfriday.com. 00:11-00:12 No, no, no. 00:12-00:17 She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:17-00:18 She’s the how-to girl. 00:19-00:20 It’s the Dr. Friday Show. 00:24-00:26 If you have a question for Dr. Friday, call her now. 00:26-00:28 737-WWTN. 00:29-00:31 That’s 737-9986. 00:33-00:37 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:39-00:46 G’day, I’m Dr. Friday and this is the Dr. Friday show where we talk about taxes, which is one of my favorite subjects. 00:46-00:56 If you’ve got any questions, maybe you’re working on your own taxes or you’re trying to get together all your documentations and maybe something came in and you’re not too sure exactly how that should work. 00:56-00:57 This is the show. 00:57-00:58 You can ask a question. 00:58-01:02 If I don’t have the answer, if we need to do it off the mic, we can do that as well. 01:02-01:07 Easiest way to get on the show is 615-737-9986. 01:07-01:11 615-737-9986. 01:12-01:17 You can also email friday at drfriday.com. 01:17-01:19 Friday at drfriday.com. 01:20-02:10 We’re going to start the show off with someone asking me if, and it really doesn’t, in my opinion, has not a lot to do with taxes, more about maybe tax news, the tariffs that go into effect. How is that going t

Dr. Friday Radio Show – January 18, 2025

Dr. Friday Burke — Tue, 21 Jan 2025 14:06:12 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday covers essential tax updates and financial tips as tax season approaches. From changes in tax credits to scam prevention advice, this episode equips listeners with the knowledge to navigate the 2025 tax season confidently.

Topics Covered

Donald Trump’s Presidency and Tax Implications Speculation on how the administration and 119th Congress may impact tax laws, including Section 179 depreciation changes.

Key Dates for Tax Season E-filing for 2024 taxes begins on January 27, 2025. Deadlines for W-2 and 1099 issuance are also highlighted.

California Tax Extensions Residents in disaster-affected areas receive tax filing extensions.

Commercial Clean Vehicle Tax Credit New IRS proposals for tax credits on qualified commercial and used clean vehicles.

SALT Tax Reform Efforts Discussion of potential changes to the $10,000 cap on state and local tax (SALT) deductions.

Recovery Rebate Credits IRS efforts to issue payments to those who missed their 2021 recovery rebate credits.

Scam Awareness During Tax Season Tips to recognize and avoid tax-related scams, including fraudulent IRS calls and Ponzi schemes.

Tax Return Preparers Advice on ensuring your tax preparer signs your return and has proper credentials.

Employer Retention Tax Credit (ERTC) Clarification that ERTC funds are taxable.

Child Tax Credit and Earned Income Credit Updates Insights into fraud prevention efforts and eligibility criteria.

Preparing for Emergencies Importance of offsite document backups to protect tax and financial records.

Transcript
00:00-00:02 All right, guys, this is the Doctor Friday show. 00:02-00:04 A couple new discussions. 00:04-00:09 Obviously, we know Donald Trump is going to be soon brought into the presidency. 00:10-00:11 What will that mean for taxes? 00:11-00:13 And to be quite honest, we’re not sure. 00:13-00:17 I mean, there is, the 119th Congress will be enrolled. 00:17-00:23 And we will find out if they’re going to go back and do anything when it comes to some tax law. 00:23-00:29 One of the big ones I would love is a section 179, instead of having theoretically 40% in 2020. 00:29-00:32 having that back to the 100%. 00:32-00:37 I think it encourages small business owners to be able to go do things and make it work 00:37-00:41 where if you spend $100,000 or $100, whatever, 00:41-00:47 and then you turn around and you don’t have the ability to make anything work, 00:47-00:49 then it will become more of an issue. 00:49-00:54 So if you spend $100 and you can only get $60 versus you spend $100, 00:54-00:58 you get $100, more people are encouraged to probably do the 100, 00:58-00:59 is all I’m going to say on that one. 00:59-01:03 So that way you can actually make sure that you have everything you need. 01:04-01:08 Other things, obviously, we’re still waiting to hear on some of the different situations. 01:08-01:16 If you have family in California, obviously tax season isn’t going to be an issue that’s all been extended. 01:18-01:25 So there is nothing there that anyone has to worry about as far as the tax season that’s in those areas, in those counties. 01:25-01:28 Tax season will start on January the 27th for e-filing. 01:29-01:34 So that is something that we will be looking forward to and moving forward on. 01:35-01:47 But other than that, we will be able to hopefully start finalizing some of our tax returns and getting them sent out so people will be able to, you know, put some money back in their pocket, make sure it’s all working. 01:48-01:51 We also have some new IRS proposals. 01:52-01:55 The IR

Dr. Friday Radio Show – January 11, 2025

Dr. Friday Burke — Mon, 13 Jan 2025 19:16:32 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday dives into key tax updates and practical advice to help listeners navigate the 2024 tax season. From filing deadlines to common tax pitfalls, this episode is packed with useful tips for individuals, small business owners, and contractors alike. Plus, callers share unique tax situations, including gambling income, Medicare payments, and travel deductions.

Topics Covered

Tax Filing Deadlines:

E-filing for 2024 taxes opens January 27, 2025.

Employers must issue W-2s by the end of January; IRS filing for employers due mid-February.

Filing Tips for Early Filers:

Avoid using your last pay stub to file taxes; discrepancies can lead to IRS issues.

Tax credits like Child Credit or Earned Income Credit may delay refunds until mid-February.

Mileage Deduction Insights:

Business mileage rates increased to $0.70 per mile for 2025.

Clear guidelines on deductible miles for delivery drivers and contractors.

Medicare and Tax Considerations:

Paying Medicare premiums via Social Security or separately has no tax impact.

Small Business Tips:

Importance of reconciling expenses and documenting credit card purchases for taxes.

Use tools like QuickBooks for receipt and record-keeping.

Gambling Income & Deductions:

Winnings must be reported; deductions for losses limited to winnings and require itemization.

Key considerations for online gambling and tax obligations.

Energy Tax Credits:

30% tax credit for installing solar energy systems; unused credits roll over to future years.

Unique Caller Questions:

Handling taxes on Canadian Social Security while living in the U.S.

Per diem and actual expenses for travel related to income-generating activities.

Addressing scams and financial exploitation from a tax perspective.

Tax Scams Awareness:

IRS never demands payments via phone; verify any suspicious calls independently.

Transcript
00:00-00:05 If you want to join the show, you can at 615-737-9986. 00:05-00:09 615-7-37-9986. 00:10-00:13 And to be quite honest, it’s been a pretty quiet weekend. 00:14-00:16 Friday, most everybody was trying to deal with the snow. 00:17-00:19 Saturday, it’s been pretty nice on the roads. 00:19-00:23 I was out there a couple times, but still, it hasn’t been overly crazy. 00:25-01:59 But hopefully everyone will get back to work on Monday morning and we’ll be in good shape able to make it through and I’m sure all the kids love the snow day so that was actually a fun and exciting thing but if you have questions or you need help you can call the show I do realize it’s a it’s a pretty quiet day I’m not expecting a lot of phone calls but 615 737 986 615 737 97 9986 is the number here in the studio and you can call and ask your questions and then if you if I can help I’ll be definitely glad to you know we want to review it is what the 10th 11th of January so tax season for 2024 has started individuals are getting I know many of our clients have already received we use ADP so a lot of them have received their W-2s already some are still waiting the just so you know the employer does not have to have anything to the employees until the last day of January so and I believe they don’t even have to have filed with the Social Security Administration until the second week of February. So sometime between the end of January and the second week of February, if there’s been corrections or anything, you should

Dr. Friday Radio Show – January 4, 2025

Dr. Friday Burke — Mon, 06 Jan 2025 19:03:42 +0000

Welcome to the January 5, 2025 episode of The Dr. Friday Radio Show! Dr. Friday, an experienced tax consultant and financial counselor, is here to answer your tax questions and help you kick off the 2024 tax season the right way. Tune in as she covers key updates, answers listener calls, and shares practical advice for navigating taxes, RMDs, and financial planning in 2025.

Key Topics Covered:

2024 Tax Season Kickoff

Importance of organizing tax records early.

Recommendations for small business accounting tools like QuickBooks.

BOI Compliance Updates

Recent court hold on the Business Owners Information (BOI) mandate.

Estimated Tax Payments

Strategies for wage earners with investment income to avoid penalties.

Explanation of quarterly tax requirements for self-employed individuals.

Claiming Dependents and Tax Credits

Guidelines for claiming non-income earning dependents, such as elderly parents.

Inheritance and Taxes

Tax implications of life insurance payouts and inherited assets.

Cryptocurrency Taxes

Warning about potential scams and clarification on crypto taxation rules.

Required Minimum Distributions (RMDs)

Updates on rules for RMDs and Qualified Charitable Deductions (QCDs).

Listener Questions

Topics ranged from Roth IRAs, trusts, and estate planning to charitable giving strategies.

Transcript
00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07-00:10 She’s the how-to girl. It’s the Doctor Friday show. 00:14-00:22 If you have a question for Dr. Friday, call her now. 737 W.WTN. That’s 7379986. 00:23-00:27 So here’s your host, financial counselor and tax consultant Dr. Friday. 00:27-00:32 Oops, I have a feeling I wasn’t talking. 00:32-00:33 This is Dr. Friday. 00:33-00:34 I’m here live in the studio. 00:35-00:36 And sorry about that. 00:37-00:40 We are wishing everyone to Merry Christmas and a Happy New Year’s. 00:41-00:44 And we’re getting ready to start the 2024 tax season. 00:45-00:47 And obviously it’s 2025. 00:47-00:52 So we’re going to get ready to making sure that everyone has their tax appointments, making sure that we’re dealing. 00:53-00:56 I want to start with the B-O-I business owners information. 00:56-01:00 You heard us talk a lot about that in the last year, especially in the last month. 01:00-01:06 And then, no surprise, someone decides they’re going to be taking that particular ruling to court. 01:06-01:08 So they put a hold on the mandate. 01:08-01:16 So if you did not comply or you’re not even sure what I’m talking about when I say B-O-I, at the moment, you are good. 01:16-01:18 You don’t have to worry about doing anything else. 01:18-01:23 All you have to worry about is getting your tax records ready for the 2024. 01:23-02:06 And if you’re a brand new company, making sure that you have, you know, starting the new year outright, start out with a good system. That system can be something as simple as pen and paper, to be quite honest with you. There are some businesses that really do do just fine with pen and paper, but the most likely or best system that we have found in almost 30 years of doing accounting and taxes is using Intuit or QuickBooks. It has changed a lot in the last, number of years. It was a little easier when everything I think some ways was on desktop. That may be just making me a little bit older. The online system does work. It’s just a little bit more

Dr. Friday Radio Show – December 14, 2024

Dr. Friday Burke — Mon, 16 Dec 2024 15:51:02 +0000

In this festive episode of the Dr. Friday Radio Show, Dr. Friday combines holiday cheer with practical year-end tax advice. Whether you’re gearing up for Christmas celebrations or navigating the complexities of accelerated depreciation, this show has something for everyone. Dr. Friday answers listener questions, shares tips for staying on top of your taxes, and spreads Christmas joy through exciting gift card giveaways.

Topics Covered:

Christmas Show Giveaway: Dr. Friday celebrates the holidays with Amazon, Olive Garden, Home Depot, and Outback gift card giveaways.

Year-End Tax Planning: Insights into accelerated depreciation, year-end purchases, and tax-saving strategies for 2024 and 2025.

Tax Compliance Help: Guidance for those behind on taxes, including representation options like payment plans and offers in compromise.

Business Tax Queries: Selling a business, home office depreciation, and navigating capital gains and ordinary income taxes.

Retirement Considerations: Tips on managing Medicare, Social Security, and income during retirement transitions.

Listener Questions: Addressing issues like IRS love letters, missing 941 forms, and QuickBooks account management post-retirement.

Transcript:
00:01-00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06-00:07 financial woes. 00:08-00:09 She’s the how-to girl. 00:09-00:10 It’s the Dr. Friday Show. 00:14-00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:20-00:22 That’s 737-9986. 00:23-00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27-00:34 G’day, I’m Dr. Friday and the doctor is in the house on this wonderful Saturday. 00:35-00:42 And today is always a show I like to do because, well, I think we’ve been at this 13, 14, getting close to 15 years. 00:43-00:46 First year I’m doing it without Dr. Electric. It’s our big Christmas show giveaway. 00:46-01:02 And so if you are listening and we’ll be giving away some Amazon cards, some restaurant cards, some Home Depot cards for all my favorite listeners and clients, the show will open up with just some fun facts. 01:02-01:07 And if you have tax questions as well, I mean, it is a tax show, guys, and it’s almost the end of the year. 01:07-01:12 So if you’re thinking, do I need to buy something? We may talk about the potential of doing that. 01:12-01:17 We may also say buying something isn’t going to save you as much as you think it will this year. 01:17-01:27 So if you have your own tax person, I would definitely suggest talking to somebody on what accelerated depreciation is at this point in the current situation. 01:28-01:36 But if you have questions, maybe you’ve inherited something or you are in the process of selling something, then we need to talk. 01:36-01:41 We need to find out what’s going to be the best thing and what’s going to be for 2024, which is the year we’re finishing. 01:41-01:54 and then what’s going to happen in 2025, you can join the show at 615-737-9986, 615-737-9986. 01:55-01:59 I am an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. 02:00-02:06 That is what I do, guys. I help individuals that want to obviously file taxes on a normal basis. 02:06-02:10 If you have businesses, trust, I do all of those, also for multiple states. 02:11-02:19 And then for those individuals that maybe have had some tax issues, maybe you haven’t filed taxes in a long time or you haven’t done much going on at that point. 02:19-02:26 That will also be what I do as far as the representation. We can get you all caught up, get you into compliance, and th

Dr. Friday Radio Show – December 7, 2024

Dr. Friday Burke — Tue, 10 Dec 2024 13:00:32 +0000

In this episode of The Dr. Friday Show, Dr. Friday offers practical financial advice for listeners navigating taxes, business transitions, and retirement planning. With real-life questions from callers, the show dives into topics ranging from sales tax collection to Social Security strategies. If you’re looking to optimize your finances as the year wraps up, this episode is packed with valuable insights.

Topics Covered

Preparing for the 2024 Tax Season: Deadlines, changes, and key considerations for e-filing.

Sales Tax Guidance for Businesses: When and how to file sales tax, especially for new retail ventures.

Gifting a Vehicle: Tax implications and processes for transferring a car as a gift in Tennessee.

Social Security and Income Limits: How earnings affect Social Security benefits for early retirees.

Maximizing Retirement Savings: Contribution limits and strategies for 401(k)s and Roth IRAs.

Capital Gains on Home Sales: Tax exclusions and calculating your taxable gains.

Disability and Asset Management: Selling a home while receiving disability benefits.

Cryptocurrency Taxes: What you need to know about reporting and tracking crypto transactions.

Electric Vehicle Tax Credits: Qualifications and considerations for new and used EVs.

Transcription
00:01-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:11 She’s the how-to girl. It’s the Dr. Friday Show. 00:14-00:22 If you have a question for Dr. Friday, call her now, 737-WWTN. That’s 737-9986. 00:23-00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27-00:33 Warm Saturday, considering I’m inside. 00:33-00:36 Do not want to be outside in that bitter cold if I don’t have to be. 00:36-00:44 So enjoying the holiday time, getting ready to, I’m sure, have a couple parties and things like that in your guys’ neighborhood. 00:44-00:49 But right now we’re going to talk a little bit about preparing for 2024 taxes. 00:49-00:51 Hopefully everyone has filed their 23. 00:52-00:53 If not, you’re going to be late. 00:53-00:57 So probably preparing for 24 and then doing 24 and 23. 00:57-00:59 E-file is not available at this time. 00:59-01:03 They usually close it down until about January 18th, I believe. 01:04-01:04 It may be 20th. 01:04-01:06 I haven’t heard the date yet. 01:06-01:11 But at this point, if you wanted to file 21, 22, or 23, you would have to do it by mail. 01:11-01:14 Any year prior to that would have to be done by mail anyways. 01:14-01:21 But e-file is not available to anyone while they’re prepping for the new tax season, I guess we’ll call it. 01:22-01:27 So let’s talk about a little bit of a few things that we know we might want to consider. 01:27-01:31 Obviously, when we’re looking at our taxes, we’re also thinking about our tax brackets. 01:32-01:45 Anything that might have changed in the year of 2024, marriage, divorce, had a baby, a child that may have turned 17 in the year of this 2024, because that would change your child credits. 01:46-01:49 All those kinds of interesting things that you might have. 01:49-01:54 You need to make a little bit of a list so you can try to figure out what you have and where you’re going to go with it. 01:54-01:55 But we are lucky here. 01:56-01:57 Wayne has already jumped on from the borough. 01:58-02:00 So let’s go ahead and get Wayne on the phone. 02:01-02:02 Hey, Wayne, what’s going on? 02:03-02:04 Hey, Dr. Friday. 02:04-02:04 How are you today? 02:05-02:06 Awesome. 02:06-02:06 How about yourself? 02:07-02:08 Just fine. 02:08-02:0

Dr. Friday Radio Show – November 16, 2024

Dr. Friday Burke — Tue, 19 Nov 2024 00:39:43 +0000

Welcome to the Dr. Friday Show from November 16, 2024! Dr. Friday, an enrolled agent and tax consultant, dives into timely financial tips and tax strategies to help you navigate the end-of-year tax planning season. Whether you’re preparing for changes in tax law, exploring charitable giving options, or tackling IRS debt, Dr. Friday has you covered.

Topics Covered

End-of-Year Tax Planning:

Review tax situations before year’s end to make smart financial decisions.

Consider Roth conversions, stock sales, and tax estimates.

Accelerated Depreciation:

Current depreciation rate is 60% for 2024, impacting major asset purchases.

Charitable Contributions & Qualified Charitable Distributions (QCDs):

Maximize giving while lowering taxable income through QCDs.

Understand standard deduction limits for single and married taxpayers.

Estate Planning & Trusts:

Importance of wills and trusts to avoid probate and protect assets.

Planning for special needs or addiction issues within families.

IRS Debt Solutions:

Options include non-collectible status, payment plans, and offers in compromise.

Bankruptcy as a potential last-resort strategy.

Business Owners Information Act (BOI):

New filing requirements for 2024 to avoid steep penalties.

Maximizing Standard Deductions:

Sales tax, property tax, and mortgage interest strategies.

Unique Holiday Gifting Idea:

Highlighting Lolita Roasters’ custom coffee blends for client gifts.

Transcript
00:00-00:07 No, no, no. She’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:11 She’s the how-to girl. It’s the Dr. Friday Show. 00:14-00:22 If you have a question for Dr. Friday, call her now. 737-WWTN. That’s 737-9986. 00:23-00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27-00:34 G’day, I’m Dr. Friday and the doctor is in the house. 00:35-00:40 And we’re going to be here talking for the next hour about my favorite subject, which is taxes. 00:41-00:56 And seeing if there’s anything new we need to be covering as far as at the moment, nothing has obviously changed due to the president coming into the White House or will be coming in in January. 00:56-01:12 That’s not going to change anything at this moment. So we’re just waiting to see what will come if you’ll extend the current tax changes. But at the moment, what we’re looking at is just what we know, which means the current tax laws will change at the end of 2025. 01:12-01:32 This year, right now, accelerated depreciation is at 60%, which is important to know because at 60% means if you go buy, and a lot of people like to go buy new trucks or buy a new dozer or a piece of equipment, and you’re looking at being able to write the entire thing off, you will not be able to do this. 01:32-01:36 You couldn’t do it last year, but it’s also less this year than what you had. 01:36-01:41 So we’ll be one of those deals where you’re like, OK, got it. No big deal. 01:41-01:47 But I just want to make sure that we’re all on the same page and that we’re able to make sure we’re estimating our taxes. 01:47-01:57 Now is the time to have those conversations. Right. Because we don’t have anything that we can count on other than what we know. 01:57-02:00 And if we want to make a change, met with a couple the other day. 02:00-02:08 And the biggest reason you have someone that helps you with taxes,

Dr. Friday Radio Show – November 9, 2024

Dr. Friday Burke — Tue, 12 Nov 2024 15:47:37 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday discusses essential tax updates, business requirements, and strategies for keeping on top of IRS obligations. Whether you’re a business owner, contractor, or simply have tax questions, Dr. Friday provides valuable insights and practical advice for tax season and beyond.

Topics Covered:

Business Owner Information (BOI) Filing: New requirements for businesses registered with the state, with a December 31, 2024 deadline.

Tax Deductions for Contractors: Advice on allowable deductions, including mileage and clothing guidelines for 1099 workers.

Saving for Taxes as a Subcontractor: Importance of setting aside 20-25% of net income for tax payments to avoid surprises.

Capital Gains Tax on Real Estate and Business Sales: Tips for managing taxes on large asset sales and avoiding financial pitfalls.

Estate Planning and Collectibles: How to handle valuable collections in your estate, valuation issues, and charitable donations.

IRS Payment Plans and Hardship Options: Guidance on payment plans, compromises, and asset considerations for those in debt to the IRS.

Veteran’s Day Tribute: Appreciation for military veterans and their families, recognizing their service and sacrifice.

Transcript:
00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:11 She’s the how-to girl. It’s the Doctor Friday show. 00:14-00:22 If you have a question for Dr. Friday, call her now. 737 W.WTN. That’s 7379986. 00:23-00:27 So here’s your host, financial counselor and tax consultant Dr. Friday. 00:27-00:57 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… 00:57-01:04 As an enrolled agent, I am licensed by the Internal Revenue Service to do taxes and representations. 01:04-01:05 So that’s pretty much all I do. 01:05-01:11 So this show talks a lot about the different taxes that we are responsible for when we need to file taxes. 01:12-01:13 I’ve been talking quite a bit. 01:13-01:14 I thought it was funny. 01:14-01:20 One of my clients called me or text me the other day and said, have you heard anything about B-O-I? 01:20-01:26 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. 01:26-01:33 and if you’ve opened up a new company in 2024, you need to be doing it within like 30 days. 01:33-01:41 So pretty much anyone that sets up a new company needs to also basically set up their B-O-I. 01:42-01:46 So that way, and it’s not the most complicated thing, but if you need help, obviously we’re here. 01:46-01:52 But it’s important that it’s done because they’re very scary about the penalties that are coming out. 01:52-01:56 They’re saying $500 a day if you don’t comply. 01:57-01:58 I don’t know. 01:58-01:59 We’ve never seen this. 01:59-02:05 So I have no experience of knowing what is or what isn’t going to be available to us. 02:05-02:11 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. 02:12-02:13 Phone system is off just so you know. 02:15-02:16 He’ll be turning it on in just a second. 02:17-02:18 It looks like it’s got X’s on the whole board. 02:19-02:20 You can give us a call here. 02:20-02:21 6.1. 02:21-02:21 Thank you. 02:21-02:22 615. 02:2

Dr. Friday Radio Show – October 26, 2024

Dr. Friday Burke — Mon, 28 Oct 2024 15:17:49 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday addresses tax extensions for those impacted by Tropical Storm Helene, tax planning, and ways to manage unexpected IRS debts. She also discusses end-of-year gift ideas for clients, unique holiday plans, and shares a few personal anecdotes. This episode is packed with helpful tax tips and guidance for listeners navigating IRS and estate issues.

Topics Covered:

Tropical Storm Helene Tax Extensions: Extended deadlines for Tennessee residents impacted by the storm.

Voting Reminder: Importance of voting and early voting benefits.

Tax Payment Plans: Steps for negotiating and maintaining affordable IRS payment plans.

IRS Collection Hardship Options: Non-collectable status for those facing severe financial challenges.

Estate Management: Tax considerations for inherited assets and stocks, including capital gains.

Gift Ideas for Clients: Unique, personalized holiday gifts, featuring Lolita Roasters coffee.

IRS 1099-K Changes: New transaction thresholds for 2024 and 2025.

Avoiding Tax Scams: Recognizing fake IRS or sheriff calls.

Energy Credits Update: IRS energy credit regulations and required PIN numbers for 2025.

Transcript
00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:11 She’s the how-to girl. It’s the Doctor Friday show. 00:14-00:22 If you have a question for Dr. Friday, call her now. 737 W.WTN. That’s 7379986. 00:23-00:27 So here’s your host, Financial Counselor, and Tax Consultant, Dr. Friday. 00:27-00:38 Gooday, I’m Dr. Friday, and the doctor is in the house, and we’re here on this wonderful Saturday to take questions concerning taxes. 00:39-00:41 I did want to start the show talking. 00:41-00:55 I had a person that sent me a question asking about the fact that they were affected by the Tropical Storm Helene in Tennessee, and they were not able to make the October 15th deadline. 00:56-01:06 If you were affected by the storm, we are under an additional extension only for the people that fit into those storm areas. 01:06-01:17 And they have until May 1st, 2025, that applies to your quarterlies, that applies to your final payments. 01:17-01:22 So that would be April 15th, April, January 15th, April 15th, the 25th. 01:22-01:30 The deadline applies to quarterly payroll and excise taxes that might have been due on October 31st or January or April. 01:31-01:39 In addition to penalties and excise deposits that were done after September 26, 24, that might have been due after that due date. 01:40-01:46 There are waivers and extended state circumstances, but you do need to be in the true affected area. 01:46-01:48 It’s not the entire state getting this waiver. 01:49-01:58 So in the case of this particular individual that was hit, there’s no question you have time, probably not to be worrying about taxes as much as other issues. 01:58-02:10 So if you have something like that that may have come up, there is, like I said, there is an additional extension for individuals that were affected directly or in the area of where that happened. 02:11-02:18 Then you’ll be able to, and this will be for companies as well, businesses, payroll taxes, things like that that might have been due. 02:18-02:47 you will be able to apply for penalty waivers if that was a situation. So if you’ve got questions on that, you can always call our firm. But if you’ve got questions today, you can give us a call at 615-737-99-86. 615-737-99-86. This morning I was out and I was able to do my part. I voted. Hopefully, anyone that’s listening that’s kind of on the fence that maybe yo

Dr. Friday Radio Show – October 5, 2024

Dr. Friday Burke — Mon, 07 Oct 2024 13:21:32 +0000

On this episode of the Dr. Friday Radio Show, Dr. Friday dives into key tax changes impacting small business owners, real estate transactions, disaster tax relief, and IRS updates. She also answers listener questions about capital gains, 1099 filings, and how to avoid tax penalties. Tune in to get practical tips for managing your taxes and staying compliant with the IRS.

Key Topics Covered:

PayPal and Third-Party Payment Changes: Starting in 2024, businesses receiving over $5,000 via PayPal and similar platforms will receive a 1099-K.

Capital Gains on Second Homes: How selling a second home differs from selling a primary residence, including tax implications and capital gain rates.

Disaster Relief and Taxes: Tax relief for those affected by storms and terrorist attacks, including deadline extensions and loss claims.

Inheritance Tax Update: What to expect in 2026 when the estate tax threshold is projected to lower.

Tax Deadlines and Penalties: Importance of filing by October 15th for those with an extension, and understanding IRS penalties for late filing and payment.

1099 Requirements for Small Businesses: Clarification on when to issue 1099s and how to stay compliant with IRS rules.

Transcript
00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07-00:09 She’s the how-to girl. 00:09-00:10 It’s the Dr. Friday Show. 00:10-00:11 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:11-00:12 That’s 737-9986. 00:12-00:12 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:12-00:34 G’day, I’m Dr. Friday and the doctor is in the house. 00:34-00:45 You can join us live here in studio at 615-737-9986. 00:45-00:49 Phone lines will be open. 00:49-00:51 And then we’ll be able to get your calls. 00:51-01:03 We want to talk a little bit about a few things that have come down for all of you that may have those small businesses that you have been taking PayPal or some portion of merchant fees. 01:03-01:18 And I know that 2024 will be the first year that they will be sending those to you based on $5,000 instead of the, I think it was 200 transactions or 15 or 20,000. 01:18-01:20 So it was a big difference. 01:20-01:25 So that’s going to make a huge difference to have what you have going there. 01:25-01:40 So just make sure that you have that information because if you are running a business right now and you have the ability to do what you’re doing and before you really weren’t concerned. 01:40-01:45 So in 2023, the third party payment system was hired this year. 01:45-01:54 It’s going to be $5,000 in the phase out to implement the Washington follows feedback from taxpayers and tax professionals. 01:54-02:00 They’re basically claiming or saying that they won’t have quite so much. 02:00-02:03 They’re claiming that they’re not going to tie this directly into taxes. 02:03-02:11 They are saying that it is going to be, it was 20,200 now it’s $600 threshold enacted by the American act. 02:11-02:21 And that anything above that, theoretically you should be filing taxes, a 1099 K for any sale more than $600 of goods will be following on a 1099 K. 02:21-02:41 They’re saying the max, basically you have to be doing up to $5,000 threshold before the form will be coming out and that they will be working with taxpayers and other people to try to manage this carefully to help that the 1099 Ks are issued only to taxpayers who should be receiving them. 02:41-02:45 Well, we all know how well that works for the government. 02:45-03:01 So all I’m going to suggest is if you are a person that maybe has their own little shopping or maybe they even just do things on

Dr. Friday Radio Show – September 28, 2024

Dr. Friday Burke — Mon, 30 Sep 2024 15:27:52 +0000

In this episode of the Dr. Friday Show, financial counselor and tax consultant Dr. Friday discusses various tax-related topics, provides advice on business practices, and answers caller questions about specific tax situations.

Key topics covered:

October 15th tax extension deadline and the importance of filing on time

Quarterly estimated tax payments and penalties for late payments

Business Ownership Information Act requirements and potential penalties

Health insurance deductions for self-employed individuals

Flex spending account carryover limits for 2024 and 2025

Social Security benefits and taxation for those still working

Medicare enrollment considerations and potential penalties

1031 exchanges and capital gains tax implications

Employing children in family businesses and associated tax benefits

Business mileage deduction rates for 2024

Distinguishing between legitimate businesses and hobbies for tax purposes

Transcript
00:00.001 –> 00:06.640 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06.640 –> 00:07.640 financial woes. 00:07.640 –> 00:09.920 She’s the how-to girl. 00:09.920 –> 00:10.920 It’s the Dr. Friday Show. 00:10.920 –> 00:20.120 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:20.120 –> 00:23.880 That’s 737-9986. 00:23.880 –> 00:27.640 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27.640 –> 00:36.960 G’day, I’m Dr. Friday, and the doctor is in the house on this very rainy day. 00:36.960 –> 00:48.720 If you want to join the show, you can at 615-737-9986, 615-737-9986, taking your calls, talking about 00:48.720 –> 00:50.360 my favorite subject, taxes. 00:50.360 –> 00:54.700 Right now, we’re in the midst of finishing up the 2023 tax returns. 00:54.700 –> 00:57.280 They are due October 15th. 00:57.280 –> 01:02.180 If you filed an extension, if you are not on extension, you’re late. 01:02.180 –> 01:03.860 So probably makes no difference. 01:03.860 –> 01:08.740 But if you are on extension, you do need to file that return so you don’t get failure 01:08.740 –> 01:10.920 to file on time penalties. 01:10.920 –> 01:13.300 It does not extend the money. 01:13.300 –> 01:17.340 After all these years, it seems like I’ve said this a lot, but you need to realize it 01:17.340 –> 01:20.480 doesn’t extend the money that you owe. 01:20.480 –> 01:26.500 If you owe money and when you file in October, that money is going to have to be something 01:26.500 –> 01:31.540 that you should have paid back in April or even May quarterly throughout the time to 01:31.540 –> 01:33.140 do what you needed to do. 01:33.140 –> 01:38.860 So it’s not something that you can just say, “Hey, everybody would extend it to October 01:38.860 –> 01:40.220 15th if we didn’t have to pay. 01:40.220 –> 01:44.060 I mean, everyone would wait to the very last minute to make that payment.” 01:44.060 –> 01:46.220 So obviously, that’s not the case. 01:46.2

Dr. Friday Radio Show – September 07, 2024

Dr. Friday Burke — Wed, 11 Sep 2024 12:56:35 +0000

In this episode of the Dr. Friday Radio Show, tax expert Dr. Friday discusses various tax-related topics, focusing on inheritance, property sales, retirement accounts, and tax planning strategies. She provides valuable insights and answers caller questions on a range of financial matters.

Key Topics Covered:

Selling inherited property and capital gains considerations

Handling inherited homes among multiple siblings

Spousal IRA inheritance rules and Required Minimum Distributions (RMDs)

Cryptocurrency taxation and reporting requirements

Tax implications of selling rental property

First-time homebuyer credit repayment ending in 2023

Importance of tax planning and adjusting W-4 forms

Penalties and interest for underpayment of taxes

Benefits of Qualified Charitable Distributions (QCDs) for seniors

Tax deductions for medical expenses and charitable miles

Importance of organizing tax documents throughout the year

Transcript
00:00.001 –> 00:07.640 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07.640 –> 00:09.920 She’s the how-to girl. 00:09.920 –> 00:10.920 It’s the Dr. Friday Show. 00:10.920 –> 00:20.120 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:20.120 –> 00:23.880 That’s 737-9986. 00:23.880 –> 00:27.400 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27.400 –> 00:35.760 Good day, I’m Dr. Friday and the doctor is in the house. 00:35.760 –> 00:40.320 Just so you know, guys, I cannot see the screen for the callers. 00:40.320 –> 00:43.640 I’m in there, but it’s just a black screen. 00:43.640 –> 00:46.360 So if you want to join the show, you certainly can. 00:46.360 –> 01:00.520 We take our phone calls live, 615-737-9986, 615-737-9986, talking about my favorite subjects, which is taxes. 01:00.520 –> 01:01.520 Perfect. 01:01.520 –> 01:02.880 You did great. 01:02.880 –> 01:17.120 And we’re going to be dealing with any questions you might have when it comes to dealing with taxes or inheritance, or maybe you’re thinking about selling a piece of real estate, be that your primary home or a piece of rental property. 01:17.120 –> 01:24.800 How’s that going to affect your taxes or your Medicare if you’re actually over the age of 65 and receiving Medicare? 01:24.800 –> 01:29.560 Any of those kinds of questions may come in and it’s a great time to at least get you on the right track. 01:29.560 –> 01:35.160 Make sure that you’re at least asking the right questions and most importantly, is it going to be taxable or not? 01:35.160 –> 01:39.240 And if it’s taxable, have you set enough money aside to deal with it? 01:39.240 –> 01:45.960 Because nothing worse than filing your taxes, thinking you had everything in control, then find out you owe more money. 01:45.960 –> 01:46.960 Nothing worse than that. 01:46.960 –> 01:47.960 All right. 01:47.960 –> 01:48.960 Well, we’re lucky. 01:48.960 –> 01:49.960 JR is already on the line. 01:49.960 –> 01:50.960 So, hey, JR, what’s happening? 01:50.960 –> 01:51.960 Hey, good afternoon, Dr. Friday. 01:51.960 –> 01:52.960 Enjoy your show, believe it or not. 01:52.960 –> 02:04.080 I have a question about selling rental property. 02:04.080 –> 02:18.280 As I understand it, when you can sell rental property without capital gain, if you’ve lived in it for the last two out of five years, which I have not done, but I have an option of moving back there. 02:18.280 –> 02:20.480 It’s my

Dr. Friday Radio Show – August 24, 2024

Dr. Friday Burke — Mon, 26 Aug 2024 13:13:23 +0000

In this episode of the Dr. Friday Radio Show, financial counselor and tax consultant Dr. Friday answers caller questions and provides valuable insights on various tax-related topics. From business deductions to property sales and retirement accounts, Dr. Friday offers expert advice to help listeners navigate complex tax situations.

Topics covered:

Business deductions for new entrepreneurs, including mileage tracking and equipment depreciation

Tax implications of selling a primary residence, including capital gains exclusions

The importance of keeping receipts for home improvements and their impact on taxes

Self-directed Roth IRAs used for real estate investments

Required Minimum Distributions (RMDs) and their applicability to different retirement accounts

The new Business Owners Information Act (BOI) filing requirements

Annual reporting requirements for businesses and nonprofits

The importance of maintaining compliance with tax laws and regulations

Transcript
00:00.001 –> 00:07.760 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07.760 –> 00:10.000 She’s the how-to girl. 00:10.000 –> 00:11.000 It’s the Dr. Friday Show. 00:11.000 –> 00:22.000 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:22.000 –> 00:23.960 That’s 737-9986. 00:23.960 –> 00:26.960 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:26.960 –> 00:38.280 G’day, I’m Dr. Friday and the doctor is in the house on this absolutely beautiful Saturday. 00:38.280 –> 00:43.880 And if you have questions, I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation. 00:43.880 –> 00:46.480 I do not work for the IRS. 00:46.480 –> 00:52.320 I am just licensed by them to help represent taxpayers in front of the IRS. 00:52.320 –> 01:09.000 So if you have IRS issues, if you’re thinking about doing some, I don’t know, selling property, you inherited property, you’re in a transition in your world and you’re thinking about changing things around a little bit and how is that going to affect your taxes is always a big question. 01:09.000 –> 01:20.480 And sometimes people just kind of make decisions or they think, I can’t tell you how many times I think that people think that they sell their primary home is they’ve got two years to reinvest the money, which was a tax code that was back. 01:20.480 –> 01:24.560 Gosh, it had to be in the early two thousands, if not earlier. 01:24.560 –> 01:26.960 And now we don’t have that code on the books right now. 01:26.960 –> 01:41.640 It’s if you sell your primary home, you have an exclusion of 250,000 for a single person and 500,000 for a married couple above the purchase price or, and adding any major improvements that may have appreciated the property. 01:41.640 –> 01:44.680 That’s why you need to understand how it’s going to work for you. 01:44.680 –> 01:59.300 So if you want to join the show, 615-737-9986, 615-737-9986 is our number here in the studio and you can give us a call and ask questions concerning about that. 01:59.300 –> 02:09.240 Maybe you have someone that you know that hasn’t filed taxes in a number of years and you’re concerned that, well, I mean, one of the biggest things I’ve had two clients, you know, we’re not getting any younger. 02:09.240 –> 02:13.840 And at some point you’re thinking, I’m going to want Medicare. 02:13.840 –> 02:17.240 I’m going to want to get onto social security. 02:17.240 –> 02:40.740 Some people, you kn

Dr. Friday Radio Show – August 17, 2024

Dr. Friday Burke — Mon, 19 Aug 2024 13:14:08 +0000

In this episode of the Dr. Friday Show, financial counselor and tax consultant Dr. Friday covers a range of important tax-related topics, from recent IRS updates to practical advice for taxpayers. She addresses several caller questions and provides valuable insights on various tax situations.

Topics covered:

Employee Retention Tax Credit: Second chance program for improper claims, deadline November 22nd

Beneficial Ownership Information (BOI) reporting requirements for businesses

Tax implications of selling inherited property

Estimated tax payments for self-employed individuals and investors

Impact of large financial transactions on Medicare premiums (IRMA)

1031 exchanges for reinvesting property sales proceeds

Capital gains tax considerations for retirees

Qualified Charitable Distributions (QCD) from IRAs for tax-efficient giving

Importance of proper payroll tax management for small businesses

Upcoming tax filing deadlines for extensions (September 15th and October 15th)

Transcript:
00:00.001 –> 00:06.800 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06.800 –> 00:07.800 financial woes. 00:07.800 –> 00:10.040 She’s the how-to girl. 00:10.040 –> 00:11.040 It’s the Dr. Friday Show. 00:11.040 –> 00:17.040 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:17.040 –> 00:18.040 That’s 737-9986. 00:18.040 –> 00:23.040 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:23.040 –> 00:36.160 G’day, I’m Dr. Friday and the doctor is in the house. 00:36.160 –> 00:40.600 And we got a couple things we’re going to want to really cover today, which sometimes 00:40.600 –> 00:51.240 in phone lines are open, 615-737-9986, 615-737-9986. 00:51.240 –> 00:56.560 So let’s start with the state of Tennessee, or I should say the Internal Revenue Service, 00:56.560 –> 00:59.920 but the employee retention tax credit. 00:59.920 –> 01:02.480 Many of you guys maybe applied for it. 01:02.480 –> 01:07.480 There is a second chance for programs for people with improper claims. 01:07.480 –> 01:14.560 They have until November 22nd to refile for those claims. 01:14.560 –> 01:17.240 I’m going to put a little caveat out there. 01:17.240 –> 01:22.480 We are in the midst of having several people that have come to my office that did go after 01:22.480 –> 01:25.560 this employee retention and now they’re being audited. 01:25.560 –> 01:27.680 I’m not going to say that you will be audited. 01:27.680 –> 01:31.960 I’m not saying that I wasn’t a part of the original filing, so we’re just dealing with 01:31.960 –> 01:33.840 the issue at this point. 01:33.840 –> 01:39.000 But they will be auditing a large number of people that did get the employee retention 01:39.000 –> 01:41.320 tax credit. 01:41.320 –> 01:45.840 Some people got audited prior to, meaning the IRS found some issue and then they rejected 01:45.840 –> 01:47.180 the claims. 01:47.180 –> 01:51.760 Other people may have gotten the money and now the IRS is coming back and looking at 01:51.760 –> 01:54.800 that information to see if it was properly done. 01:54.800 –> 02:01.400 But if you did or should have received the employee retention tax credit, then you do 02:01.400 –> 02:07.760 have until November 22nd to refile that claim if you were rejected or if you’re in the process 02:07.760 –> 02:10.160 of still dealing with that. 02:10.160 –> 02:16.100 The more important subject today is going to be the beneficial owner

Dr. Friday Radio Show – August 10, 2024

Dr. Friday Burke — Mon, 12 Aug 2024 13:41:23 +0000

In this episode of the Dr. Friday Show, financial counselor and tax consultant Dr. Friday discusses various tax-related topics, including recent changes to tax laws, retirement contributions, and inheritance issues. She also takes calls from listeners, addressing their specific tax concerns and questions.

Topics covered:

Changes to tax brackets and standard deductions after 2025

The end of the “stretch IRA” and new rules for inherited IRAs

Business Owner Information (BOI) filing requirements

Cryptocurrency reporting for businesses

Contributions to 401(k)s and SEPs for individuals over 70

Inheritance and basis step-up for inherited property

Dealing with IRS payment issues and correspondence

Tax implications for retirees and Social Security recipients

Planning for tax changes when filing status changes due to spouse’s death

Transcript:
00:00.001 –> 00:06.760 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06.760 –> 00:07.760 financial woes. 00:07.760 –> 00:10.040 She’s the how-to girl. 00:10.040 –> 00:11.040 It’s the Dr. Friday Show. 00:11.040 –> 00:19.040 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:19.040 –> 00:20.040 That’s 737-9986. 00:20.040 –> 00:27.040 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27.040 –> 00:35.440 Good day, I’m Dr. Friday and the doctor is in the house. 00:35.440 –> 00:38.240 It is an awesome Saturday going on outside. 00:38.240 –> 00:40.360 Hopefully you’re able to enjoy it. 00:40.360 –> 00:42.840 But it’s time to talk a bit about taxes. 00:42.840 –> 00:44.240 You know how I love taxes. 00:44.240 –> 00:46.960 We’ve been doing this about 15 years together, guys. 00:46.960 –> 00:49.800 So it is something we have a good time doing. 00:49.800 –> 00:54.440 If you have a question, maybe you’ve inherited some properties or maybe you want to convert 00:54.440 –> 00:59.720 or you have converted some 401ks or something along those lines, thinking about selling 00:59.720 –> 01:02.960 out some stock, how will that affect your taxes? 01:02.960 –> 01:04.600 I can give you some rough ideas. 01:04.600 –> 01:07.280 Remember the information I’m giving to you is an outline. 01:07.280 –> 01:11.480 You need to go to your tax professional and make sure the information is appliable to 01:11.480 –> 01:12.480 you. 01:12.480 –> 01:16.840 But I will do my best to lead you in the right direction so that you don’t make decisions. 01:16.840 –> 01:20.400 Always better to ask these questions before you go and do them. 01:20.400 –> 01:24.880 If you’ve purchased some land and now you decide you want to turn around and sell that 01:24.880 –> 01:29.000 land, it may be a good time to think if this is not a primary home, maybe I should be doing 01:29.000 –> 01:31.520 a 1031 so you’re not paying taxes. 01:31.520 –> 01:36.520 Or maybe you’d rather pay the taxes and get the IRS out of your investments. 01:36.520 –> 01:39.920 There is all kinds of trains of thoughts, but I can help you with how the tax changes 01:39.920 –> 01:41.040 are happening. 01:41.040 –> 01:42.560 We are in 2024. 01:42.560 –> 01:48.060 And remember, the Tax Cut and Job Act ends at the end of 2025. 01:48.060 –> 01:52.040 So we are at the last year and a half or so of the current tax code. 01:52.040 –> 01:56.520 No one has any idea what’s going to happen after this election and probably depends on 01:56.520 –> 01:58.680 wh

Dr. Friday Radio Show – July 27, 2024

Dr. Friday Burke — Mon, 29 Jul 2024 20:42:16 +0000

In this episode of the Dr. Friday Radio Show, financial counselor and tax consultant Dr. Friday covers a range of important tax topics, from capital gains to inheritance issues, and provides valuable information about the current tax-free weekend in Tennessee.

Topics Covered:

Capital gains tax rates and thresholds

Inheritance and step-up basis for real estate

Tax implications of gifting property vs. inheriting

Health Savings Accounts (HSAs) and contribution limits

Electric vehicle tax credits

Retirement account contribution limits for 2024

Tax-free weekend in Tennessee: eligible items and restrictions

Early Social Security withdrawal penalties

1031 exchanges for real estate

Handling unsold business inventory for tax purposes

Transcript
00:00.001 –> 00:07.760 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 00:07.760 –> 00:10.040 It’s the Dr. Friday show 00:10.040 –> 00:16.880 If you have a question for Dr. Friday call her now 737-WWTN 00:16.880 –> 00:20.280 That’s 737-9986 00:20.280 –> 00:26.320 So here’s your host financial counselor and tax consultant Dr. Friday 00:29.440 –> 00:35.760 G’day, I’m Dr. Friday and the doctor is in the house this beautiful Saturday afternoon 00:35.760 –> 00:41.060 And we’re gonna cover a couple things that we need to prepare for I’ve gotten quite a few phone calls with 00:41.060 –> 00:43.720 individuals either selling real estate or 00:43.720 –> 00:49.680 inheriting real estate and selling that real estate and wanting to know a little bit more about what the 00:49.680 –> 00:57.400 exclusion or thresholds for capital gains had someone call me and thought that if their income was below a certain dollar amount which it’s 00:58.440 –> 01:00.920 47,025 or less for individuals 01:00.920 –> 01:05.600 And then if if they would be at the zero percent capital gains 01:05.600 –> 01:12.460 But the one thing that you have to remember in that conversation that would have to include your capital gains 01:12.460 –> 01:17.120 So if your total income including your capital gains is under 01:17.120 –> 01:23.320 47,025 for an individual then you will not pay any tax on that capital gains 01:23.600 –> 01:30.700 But if that is just your normal income and then you have fifty thousand dollars or whatever of capital gains now 01:30.700 –> 01:33.400 You’re in a different situation. You’re looking at 15% 01:33.400 –> 01:41.700 roughly and the and again when people are quoting capital gains rates whenever I’m looking at the the ones on the 01:41.700 –> 01:45.160 Internet or whatever. They always seem to miss that 01:45.160 –> 01:47.520 3.8 of 01:47.520 –> 01:50.120 investment tax that we have anyone that makes a 01:50.520 –> 01:54.600 Mer any individual over 200 any married couple over 250? 01:54.600 –> 01:59.200 so what you’ll see is 15% from the 47,000 up to 01:59.200 –> 02:04.240 518 and then above that 518 it goes to 20% 02:04.240 –> 02:10.600 And if you’re looking totally at the fact that ca

Dr. Friday Radio Show – June 22, 2024

Dr. Friday Burke — Mon, 24 Jun 2024 17:55:30 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday provides expert advice on navigating the complex tax landscape, discussing topics such as extensions, phantom income, and real estate tax implications. This episode is packed with valuable insights to help you manage your finances better.

Key Points

Tax Extensions and Deadlines:

Discussion on the recent tax extension deadline of June 17.

Importance of filing extensions to avoid penalties.

Upcoming deadlines for individuals (October) and businesses (September).

Phantom Income:

Explanation and tax implications of phantom income.

Examples in Sub S corporations, 1065 partnerships, or LLCs.

Recent court cases and controversies around phantom income taxation.

Pass-Through Entities:

Understanding pass-through profits and their impact on individual taxes.

Differences between cash basis and accrual basis for tax purposes.

Uber and Lyft Drivers:

Tax tips for ride-sharing drivers.

Importance of accurately tracking mileage.

IRS audits and common pitfalls for drivers.

Real Estate and Capital Gains:

Tax implications of selling primary residences.

Exclusions available for married couples versus single individuals.

Special considerations for retired individuals and those on Social Security.

Quarterly Tax Estimates:

Importance of making quarterly estimated tax payments.

Penalties for underpayment and how to avoid them.

How to calculate quarterly payments to avoid surprises.

Inheritance and Taxes:

Tax treatment of inherited properties and cash.

Step-up basis and its impact on capital gains.

When inherited money or property becomes taxable.

Transcript
00:00 –> 00:02 Hey, this is the Dr. Friday show. 00:02 –> 00:07 If you want to join the show, you can at 615-737-9986. 00:07 –> 00:13 615-737-9986. 00:13 –> 00:15 You’re going to want to open the phone lines. 00:15 –> 00:18 And we’re talking today about my favorite subject, 00:18 –> 00:21 which is obviously taxes and anything to do 00:21 –> 00:23 with basically money. 00:23 –> 00:26 There’s not been a lot of tax changes, as we know. 00:26 –> 00:30 Many of you were under extension until 6/17 00:30 –> 00:31 and that’s already passed. 00:31 –> 00:34 So hopefully you filed extensions. 00:34 –> 00:36 That way you’re good until October for individuals, 00:36 –> 00:40 September for businesses. 00:40 –> 00:43 And you’ll be able to then make sure everything is filed 00:43 –> 00:45 and done properly. 00:45 –> 00:49 I had an interesting question that came in the email bag. 00:49 –> 00:50 And I thought it was interesting 00:50 –> 00:53 ’cause it was referred to as phantom income. 00:55 –> 00:57 There’s been some controversy a little bit 00:57 –> 00:59 on what is phantom income 00:59 –> 01:03 and should I have to pay taxes on phantom income? 01:03 –> 01:06 And for anyone that’s actually part of a sub S corporation 01:06 –> 01:10 or a 1065 partnership or LLC, 01:10 –> 01:12 you probably know we call it pass through, 01:12 –> 01:16 but it is income that you’re going to want to, 01:16 –> 01:17 you will pay tax on, right? 01:17 –> 01:21 So if a business you’ve invested in as a partner 01:21 –> 01:24 and you make money, but maybe they can’t

Dr. Friday Radio Show – May 25, 2024

Dr. Friday Burke — Tue, 28 May 2024 14:32:34 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday discusses various tax-related topics, including franchise excise requirements, inheritance tax, and the American Family and Work Act of 2024. Dr. Friday also provides advice on starting a business and maintaining proper documentation for tax purposes.

Topics covered:

Franchise excise requirements and potential refunds for Tennessee businesses

Business ownership information (BOI) filing deadlines and penalties

Inheritance tax and step-up in basis for inherited property

American Family and Work Act of 2024 and potential changes to the child tax credit

Sales tax exemptions for farmers selling their own products at markets

Tips for starting a business and maintaining proper financial records

Importance of documenting expenses for tax purposes and audit-proofing

Dr. Friday’s credentials as an enrolled agent and her ability to represent clients before the IRS

Notice: Please note that due to some technical difficulties during the recording, the audio quality may be slightly compromised towards the end of the episode. We apologize for any inconvenience this may cause.

Transcript:
00:00 –> 00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06 –> 00:07 financial woes. 00:07 –> 00:09 She’s the how-to girl. 00:09 –> 00:10 It’s the Dr. Friday Show. 00:10 –> 00:18 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:18 –> 00:19 That’s 737-9986. 00:19 –> 00:26 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:26 –> 00:34 G’day, I’m Dr. Friday and doctor is in the house. 00:34 –> 00:39 So if you’re thinking about working on taxes or you happen to be a small business owner, 00:39 –> 00:42 not necessarily small, but franchise excise requirements. 00:42 –> 00:47 Now, these are not going to be individuals that only pay the $100. 00:47 –> 00:51 There’s no refund for them, but there was a change in the tax law that basically said 00:51 –> 00:57 you can’t be taxing both schedule G and F and they were taking basically the highest 00:57 –> 00:59 of the two. 00:59 –> 01:05 Now they’re only allowed to request what is your schedule F, which is your debt ratio 01:05 –> 01:09 or your income that you have. 01:09 –> 01:14 So the only way to adjust this is first you have to go on to TINTAP. 01:14 –> 01:19 I mean, every day we’re getting two or three people sending us a letter that the Tennessee 01:19 –> 01:21 department of labor sent out. 01:21 –> 01:26 The letter basically says you could be entitled to a refund. 01:26 –> 01:33 But that’s such a lean, you know, I mean, I’m just being honest, a large number of clients, 01:33 –> 01:38 even my big clients, many of them aren’t going to be in much of a refund so far. 01:38 –> 01:43 I think we’ve seen like a $600 refund, which I’m not saying isn’t a purpose to do it. 01:43 –> 01:48 Of course, go ahead and do the refund, but it just keep in mind that you have to file 01:48 –> 01:50 to get the refund. 01:50 –> 01:54 You have to first go in and file an amended return. 01:54 –> 01:58 Then you can either attach a balance sheet or you have to give them a report of debt 01:58 –> 02:01 if your refund is over $200. 02:01 –> 02:07 So you’re theoretically going to go through an audit with the state, which again, isn’t 02:07 –> 02:08 the end of the world. 02:08 –> 02:11 It’s just one of those situations wher

Dr. Friday Radio Show – May 11, 2024

Dr. Friday Burke — Wed, 15 May 2024 13:09:59 +0000

In this episode of the Dr. Friday Show from May 11, 2024, Dr. Friday covers a range of tax-related topics, including updates on tax laws, advice for handling tax issues, and answers to listener questions. She provides insights and guidance to help navigate the complex world of taxes.

Topics covered:

Tennessee franchise and excise tax refunds for filings after March 31st, 2020

Handling amended tax returns and dealing with IRS delays

Gift tax exemptions for 2024

1099-K threshold changes for 2024

Depreciation rules for vehicle purchases in 2023 and 2024

Tax implications of selling a primary residence

Handling taxes for a deceased relative as an executor

Importance of estate planning and power of attorney

Communicating with the IRS and setting up payment plans for tax debt

Transcript:
00:00 –> 00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06 –> 00:07 financial woes. 00:07 –> 00:09 She’s the how-to girl. 00:09 –> 00:10 It’s the Dr. Friday Show. 00:10 –> 00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:19 –> 00:23 That’s 737-9986. 00:23 –> 00:29 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:29 –> 00:30 All right, good day. 00:30 –> 00:31 I’m Dr. Friday. 00:31 –> 00:37 This is the Dr. Friday Show, and we are today going to be talking more about state tax. 00:37 –> 00:43 I know a number of you have received the letters from the Tennessee Department of Revenue talking 00:43 –> 00:49 about refunds, a portion of your franchise and excise tax that could be being refunded, 00:49 –> 00:53 anything that was filed after March 31st, 2020. 00:53 –> 00:58 You do have to file for your credit or refund claim, must be filed between May 15th and 00:58 –> 01:01 November 30th, 2024. 01:01 –> 01:06 This is an alternative minimum tax measure that minimizes the franchise tax using only 01:06 –> 01:12 a portion of net worth taxes ending in or on before January 1st, 2024. 01:12 –> 01:18 The bill was authorized refunds for franchise tax paid using an AMT or an alternative minimum 01:18 –> 01:23 property calculation reduced by the amount of tax that would have otherwise be owed under 01:23 –> 01:27 the proportional net worth calculation. 01:27 –> 01:32 Bottom line, plain language, they’ve changed the way we’re calculating the franchise excise 01:32 –> 01:33 tax. 01:33 –> 01:39 So, this is really the guys that are paying $100, self-employed, single members in many 01:39 –> 01:45 cases, not to say it wouldn’t apply, but most of those cases, you’re not paying all those 01:45 –> 01:46 taxes. 01:46 –> 01:52 This would definitely apply to larger companies where you were paying a portion of your net 01:52 –> 01:57 worth on the books, and now they’re changing the way it was calculated, claiming it was 01:57 –> 02:02 not constitutional, and so they’re able to go back three years, basically, and make this. 02:02 –> 02:08 So, you have available refunds for the tax filings on or after January 1st, 2021, for 02:08 –> 02:13 the tax period on or after March 30th, 2020. 02:13 –> 02:17 Claims must be made on the forms that the tax commissioner will prescribe solely for 02:17 –> 02:18 the purpose of refunds. 02:18 –> 02:22 So, it’s not going to be something that you can easily just go out and say, “Hey, I amended 02:22 –> 02:23 the return.” 02:23 –> 02:25 No, they’re going to have refund forms. 02:25 –> 02:31 There is going to be some publications for the refunds, and then claiming waivers. 02:31 –> 02:36 Businesses claiming a refund

Dr. Friday Radio Show – May 4, 2024

Dr. Friday Burke — Wed, 08 May 2024 14:52:47 +0000

In this episode of the Dr. Friday Show, tax expert Dr. Friday takes on a variety of questions from callers seeking advice on tax issues, inheritance, and financial matters. Dr. Friday provides insights and guidance to help listeners navigate the complex world of taxes and finance.

Topics covered:

Changes in Tennessee tax laws for small businesses and franchise excise tax

Handling inheritance of bonds and the process of cashing them out

Reporting class action settlement money received by a deceased individual

Lending money to a friend for home improvements and potential gift tax implications

Filing requirements and penalties for late payment of taxes

Setting up payment plans with the IRS and the importance of compliance

Dealing with IRS audits and the need for professional representation

Transcript:
00:00 –> 00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06 –> 00:07 financial woes. 00:07 –> 00:09 She’s the how-to girl. 00:09 –> 00:10 It’s the Dr. Friday Show. 00:10 –> 00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:19 –> 00:23 That’s 737-9986. 00:23 –> 00:26 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:26 –> 00:33 Good day, I’m Dr. Friday and the doctor is in the house. 00:33 –> 00:37 It’s a nice rainy Saturday, I guess. 00:37 –> 00:41 Not really raining here in Spring Hill, but it’s supposed to. 00:41 –> 00:44 And if you want to join the show, if you’ve got tax questions or maybe you’re working 00:44 –> 00:51 on 2024 questions, or maybe you’re even thinking, do I need to amend my franchise excise because 00:51 –> 00:53 I was an early filer? 00:53 –> 00:59 The phone number here in the studio is 615-737-9986. 00:59 –> 01:05 615-737-9986 is the number in the studio. 01:05 –> 01:10 And I will say many of us filed extensions for many of our businesses and franchise excise 01:10 –> 01:15 if they had something to do with depreciation, because we did know that something was coming 01:15 –> 01:16 down the line. 01:16 –> 01:20 But in some cases, you don’t always know, and some clients just like to get it paid 01:20 –> 01:21 and done with. 01:21 –> 01:27 But you might be an individual that needs to reevaluate, especially if you have assets 01:27 –> 01:32 and the state of Tennessee was not complying with bonus depreciation. 01:32 –> 01:33 We always had separate situations. 01:33 –> 01:39 So I know for a fact I have one or two that we will have to go back and amend those returns 01:39 –> 01:43 so that they can get some of their refunds back because they’ve actually physically overpaid 01:43 –> 01:49 due to the fact that the tax law did go in effect after the tax season had already begun. 01:49 –> 01:54 So again, if you are an individual that has a small business and maybe you have assets 01:54 –> 01:58 or different things like that, there are many things that may have changed. 01:58 –> 02:03 But one of the main ones is that Tennessee is now following the federal law for bonus 02:03 –> 02:04 depreciation. 02:04 –> 02:08 So that can lead to an important situation on that. 02:08 –> 02:09 All right. 02:09 –> 02:12 So Kevin here in Nashville, let’s go ahead and get him on the line. 02:12 –> 02:14 Hey, Kev, what can I do for you? 02:14 –> 02:16 Hi, thanks, Friday. 02:16 –> 02:20 A question about taxes in general. 02:20 –> 02:27 I’m considering getting my CFP and I’m wondering, are there any cou

Dr. Friday Radio Show – April 20, 2024

Dr. Friday Burke — Mon, 22 Apr 2024 15:44:17 +0000

In this episode of the Dr. Friday Radio Show, tax expert Dr. Friday discusses various tax-related topics, including extensions for certain counties affected by severe weather, setting up payment plans with the IRS, and handling tax situations involving inherited properties, capital gains, and more.

Topics covered:

Extension until June 17, 2024, for individuals and businesses in certain Tennessee counties affected by severe weather

Importance of filing extensions and being in compliance with the IRS

Setting up realistic payment plans with the IRS and understanding their collection process

Tax implications of inheriting a rental property and receiving rental income

Reporting and splitting a charged-off commercial loan with an ex-spouse

Earned Income Tax Credit for retirees with low income

Deducting margin interest expense on Schedule A when itemizing deductions

Capital gains tax on the sale of a primary residence and a rental property

Transcript
00:00 –> 00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06 –> 00:07 financial woes. 00:07 –> 00:10 She’s the how-to girl. 00:10 –> 00:11 It’s the Dr. Friday Show. 00:11 –> 00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:19 –> 00:20 That’s 737-9986. 00:20 –> 00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27 –> 00:34 G’day, I’m Dr. Friday and the doctor is in the house. 00:34 –> 00:36 We are here live in studio. 00:36 –> 00:40 So if you’ve got a question, this will be the time to talk and we’ve got some good news 00:40 –> 00:45 for some of those procrastinators out there and even some of my clients because some people 00:45 –> 00:51 never got the memo that if you lived in certain counties, and really the ones that it’s closest 00:51 –> 00:59 to us is Davidson, Robertson, and Sumner, but there are eight counties due to severe 00:59 –> 01:03 thunderstorms and actually I think it was tornado warnings. 01:03 –> 01:10 The FEMA or the IRS ruled as severe thunder and so now they had until June 17th. 01:10 –> 01:16 So even if you filed your taxes and you weren’t able to pay them or maybe you weren’t able 01:16 –> 01:22 to make your first estimate because you had to pay your taxes or even your fourth quarter 01:22 –> 01:26 estimate on time, it could have been because of financial reasons. 01:26 –> 01:31 If you had a partnership or corporation that was due on March 15th and you weren’t able 01:31 –> 01:39 to file it or regular corporations or fiduciary ones that were due April 15th or even individuals. 01:39 –> 01:45 Also the non-profit, the tax exempt ones that are due May 15th, all of those estimates, 01:45 –> 01:50 all of those are extended until June 17th. 01:50 –> 01:57 So that gives you at least people that live in Robertson Weekly, Cheatham, Gibson, Stewart, 01:57 –> 02:01 Davidson, Dixon, Montgomery, and Sumner. 02:01 –> 02:06 Those are the counties that have an extension that we’ll have till that time. 02:06 –> 02:10 So it gives you a little, I mean, again, if you had a tough time and you weren’t able 02:10 –> 02:13 to make it, that will

Dr. Friday Radio Show – April 6, 2024

Dr. Friday Burke — Wed, 10 Apr 2024 13:35:14 +0000

In this episode of The Dr. Friday Show, Dr. Friday, discusses various tax-related topics and answers questions from callers. She provides insights on the new Tennessee franchise tax bill, medical deductions, self-employment taxes, and dealing with the IRS.

Topics covered:

Tennessee Senate Bill 2103 and its impact on franchise excise tax

Maximizing medical deductions and the 7.5% AGI threshold

Adjusting W-4 forms to avoid owing taxes

Quarterly estimated taxes for self-employed individuals

Amending tax returns to include Social Security income

Inheriting property and the stepped-up basis

Filing as head of household with a dependent ex-spouse

Communicating with the IRS and resolving tax issues

Transcript
00:00 –> 00:06 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:06 –> 00:07 financial woes. 00:07 –> 00:09 She’s the how-to girl. 00:09 –> 00:10 It’s the Dr. Friday Show. 00:10 –> 00:19 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:19 –> 00:23 That’s 737-9986. 00:23 –> 00:27 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:27 –> 00:33 All right, I’m Dr. Friday, and I’m here live in studio. 00:33 –> 00:37 You probably hear my dogs in the background having a little chit-chat of the neighborhood, 00:37 –> 00:43 but we are going to talk a little bit first about the new bill that the governor has put 00:43 –> 00:49 out there concerning the franchise tax board and the refunds that the business operating 00:49 –> 00:51 in Tennessee could be heading towards. 00:51 –> 00:53 This has not yet been signed. 00:53 –> 00:56 So this is a bill that he has put. 00:56 –> 01:02 It’s the Senate Bill 2103, which will change how we complete the franchise excise tax and 01:02 –> 01:07 not having the property tax calculation in there, which is pretty big. 01:07 –> 01:13 I mean, they’re saying that’s going to reduce revenue for the state of over $400 million 01:13 –> 01:16 beginning the year that this goes into play. 01:16 –> 01:21 So it will be an interesting — this only applies to businesses that file franchise 01:21 –> 01:23 and excise tax. 01:23 –> 01:30 So it’ll be interesting to see if this actually passes, and we’ll stay on top of it to see 01:30 –> 01:33 if there’s any changes. 01:33 –> 01:38 Nothing I read in here does it say that it’s going to go backwards. 01:38 –> 01:45 So it looks like to me it’s really going to go into effect for 2024, not in 2023. 01:45 –> 01:53 All right, let’s see if we can go to the — oh, the phone lines here in the studio are 615-737-9988. 01:53 –> 02:01 And it looks like we’ve already got Jay on the line, which is awesome. 02:01 –> 02:03 Hey, Jay, what’s happening? 02:03 –> 02:04 >> Hi, good afternoon. 02:04 –> 02:09 Thank you so much for taking my call. 02:09 –> 02:17 My wife had a lot of health issues last year, and so like $217,000 in medical expenses. 02:17 –> 02:25 And so anyway, we have a high deductible health plan, $10,000, and we’re on the hook for that. 02:25 –> 02:32 Anyway, so obviously w

Dr. Friday Radio Show – March 23, 2024

Dr. Friday Burke — Tue, 26 Mar 2024 13:29:28 +0000

In this episode of the Dr. Friday Show from March 23, 2024, Dr. Friday discusses various tax-related topics and answers caller questions. As the tax deadline approaches, Dr. Friday provides valuable insights and advice for navigating the complexities of tax season.

Topics covered:

Business tax, franchise excise tax, and annual report deadlines for small business owners

Marginal tax rates and brackets for 2024

Contributing to Roth IRAs and amending tax returns

Reporting inheritance and capital gains on tax returns

Dealing with the IRS on tax issues and amendments

Business depreciation and bonus depreciation for 2023

Reporting interest income from joint accounts and deceased individuals

Handling tax debt with the IRS through payment plans

Transcript
00:00:00.000 –> 00:00:07.000 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:07.000 –> 00:00:08.000 financial woes. 00:00:08.000 –> 00:00:10.000 She’s the how-to girl. 00:00:10.000 –> 00:00:11.000 It’s the Dr. Friday Show. 00:00:11.000 –> 00:00:12.000 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:12.000 –> 00:00:13.000 That’s 737-9986. 00:00:13.000 –> 00:00:14.000 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:14.000 –> 00:00:14.000 [music] 00:00:14.000 –> 00:00:34.000 G’day, I’m Dr. Friday and the doctor is in the house. 00:00:34.000 –> 00:00:36.760 We are here, hopefully gonna get some fun. 00:00:36.760 –> 00:00:41.400 The weather outside is so nice, but it is tax season, so we need to talk about some 00:00:41.400 –> 00:00:47.320 of the changes that are in play and also any questions that you might have concerning taxes 00:00:47.320 –> 00:00:52.100 and the issues that we might be dealing with in doing our taxes. 00:00:52.100 –> 00:00:57.120 Do not forget that if you are a small business owner, you also have your franchise excise, 00:00:57.120 –> 00:01:02.740 your business tax, and your annual reports that are going to be changing, so you need 00:01:02.740 –> 00:01:07.400 to make sure that you have all of that in play so that you don’t get a late notice, 00:01:07.400 –> 00:01:11.640 because many of those are due April 1st, which is just around the corner. 00:01:11.640 –> 00:01:15.080 So just making sure that you’ve got everything that you need, because a lot of times I know 00:01:15.080 –> 00:01:18.240 people will call me and say, “Oh, I just got a notice. 00:01:18.240 –> 00:01:19.240 Business tax wasn’t filed. 00:01:19.240 –> 00:01:20.240 I thought you filed it.” 00:01:20.240 –> 00:01:22.480 Well, business tax is only a state tax. 00:01:22.480 –> 00:01:26.000 We don’t deal with that in our office unless you do our monthly bookkeeping service, then 00:01:26.000 –> 00:01:28.360 the bookkeepers will usually handle that. 00:01:28.360 –> 00:01:33.640 Annual reports, again, are not really part of bookkeeping or taxes, so it’s just a licensing 00:01:33.640 –> 00:01:37.920 renewal for your charter every single year, but you need to make sure that you either 00:01:37.920 –> 00:01:42.080 have your person, that whoever’s dealing with it is there,

Dr. Friday Radio Show – March 16, 2024

Dr. Friday Burke — Mon, 18 Mar 2024 17:04:26 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday, a financial counselor and tax consultant, discusses various tax-related topics and answers caller questions. As the tax season is in full swing, Dr. Friday provides valuable insights and advice for listeners.

Topics covered:

Filing deadlines for different tax forms (1065, 1120S, 1120)

Consequences of missing tax deadlines and the importance of filing extensions

Beneficial Ownership Information Act compliance and penalties

Determining filing status for separated or divorced individuals

Deducting medical expenses and mileage related to hospital visits and care

Filing requirements for trusts and estates after a person’s death

Importance of keeping email addresses and cell phones active when handling an estate

Settling tax debts with the IRS and the offer in compromise process

Accurately reporting income and expenses on tax returns

Transcript
00:00:00.000 –> 00:00:06.000 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.000 –> 00:00:07.000 financial woes. 00:00:07.000 –> 00:00:09.240 She’s the how-to girl. 00:00:09.240 –> 00:00:10.240 It’s the Dr. Friday Show. 00:00:10.240 –> 00:00:16.240 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:16.240 –> 00:00:17.240 That’s 737-9986. 00:00:17.240 –> 00:00:22.240 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:22.240 –> 00:00:34.240 G’day, I’m Dr. Friday and the doctor is in the house. 00:00:34.240 –> 00:00:38.960 We are going to talk about my favorite subject, it is the middle of tax season. 00:00:38.960 –> 00:00:45.120 And if you are a 1065, an 1120S and an 1120, in some cases, some 1120s can have it until 00:00:45.120 –> 00:00:46.720 next month. 00:00:46.720 –> 00:00:51.440 You have just missed a deadline if you did not file an extension. 00:00:51.440 –> 00:00:57.200 Because we’re due on the 15th for all 1065 and 1120Ss, unless you’re on a fiscal year 00:00:57.200 –> 00:00:58.200 end. 00:00:58.200 –> 00:01:00.920 So you need to make sure that you file your taxes. 00:01:00.920 –> 00:01:02.960 The penalties can be pretty steep. 00:01:02.960 –> 00:01:08.120 So again, making sure that you have filed your taxes and if not, an extension. 00:01:08.120 –> 00:01:13.560 That’s the same goes come April 15th for everything else, unless again, you’re on a physical year 00:01:13.560 –> 00:01:18.060 end, makes for you to basically need to file those extensions. 00:01:18.060 –> 00:01:22.520 It’s such a time saver, but more it’s a money saver, right? 00:01:22.520 –> 00:01:27.960 Because if you haven’t filed your taxes yet, then you’re in trouble when it comes to filing 00:01:27.960 –> 00:01:30.440 what you need to file for all of that. 00:01:30.440 –> 00:01:36.320 So again, if you have a question, you can reach us here in the studio at 615-737-9986. 00:01:36.320 –> 00:01:44.560 615-737-9986 is the number here in the studio. 00:01:44.560 –> 00:01:48.560 And many of you are probably working on taxes or maybe even working towards something that’s 00:01:48.560 –> 00:01:50.040 happening in 2024. 00:01:50.040 –> 00:01:55.080 It’s never too early to start thinking about how you̵

Dr. Friday Radio Show – March 2, 2024

Dr. Friday Burke — Wed, 06 Mar 2024 01:11:08 +0000

In this episode of the Dr. Friday Show, Dr. Friday covers a wide range of tax-related topics, from individual tax situations to business tax considerations. She provides valuable insights and advice for listeners looking to navigate the complex world of taxes.

Topics covered:

Roth conversions and their tax implications

Taxation of Social Security benefits

Tax considerations for surviving spouses and dependents

Life insurance payouts and potential taxability

Business losses and the IRS’s expectations for profitability

Importance of filing tax returns for partnerships and S corporations

GoFundMe accounts and their tax implications

1099K reporting for Venmo transactions

Adjusting W-4 withholdings to avoid tax surprises

Transcript
00:00:00.000 –> 00:00:06.560 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.560 –> 00:00:07.560 financial woes. 00:00:07.560 –> 00:00:09.800 She’s the how-to girl. 00:00:09.800 –> 00:00:10.800 It’s the Dr. Friday Show. 00:00:10.800 –> 00:00:19.800 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:19.800 –> 00:00:23.760 That’s 737-9986. 00:00:23.760 –> 00:00:26.760 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:26.760 –> 00:00:32.280 All righty, I’m Dr. Friday. 00:00:32.280 –> 00:00:33.280 We are live. 00:00:33.280 –> 00:00:44.320 You can reach us here at 615-737-9986, 615-737-9986, taking your calls, talking about taxes. 00:00:44.320 –> 00:00:47.280 Many of you may be working on your taxes this weekend. 00:00:47.280 –> 00:00:50.320 I know I’m in the process of working on taxes. 00:00:50.320 –> 00:00:54.640 You may actually be running into some things that you’re thinking about for 2024. 00:00:54.640 –> 00:00:56.040 I mean, things are always changing. 00:00:56.040 –> 00:00:58.800 A lot of people are thinking about Roth conversions. 00:00:58.800 –> 00:01:03.480 I am not a financial advisor, so I do not get into that aspect, other than the fact 00:01:03.480 –> 00:01:07.200 that if you do a conversion, you will end up paying taxes. 00:01:07.200 –> 00:01:10.200 So you may want to talk to your tax person when you’re doing that. 00:01:10.200 –> 00:01:15.240 We do a lot of planning when we’re usually doing tax prep because what you have happening, 00:01:15.240 –> 00:01:18.600 you know, sometimes people are thinking, “Well, maybe I’ll sell a house or I’ll do this,” 00:01:18.600 –> 00:01:26.000 and all those kinds of things not only affect your actual taxes that are due, but your IRMA, 00:01:26.000 –> 00:01:28.600 if you’re in and receiving Medicare. 00:01:28.600 –> 00:01:33.680 So it’s very important to take into account not only what you’re going to be paying in 00:01:33.680 –> 00:01:38.480 actual ordinary or capital gains tax, but make sure that you talk about the IRMA as 00:01:38.480 –> 00:01:43.280 well because we have found over the years, many times people take into account, you know, 00:01:43.280 –> 00:01:44.760 how much am I going to pay in capital gains? 00:01:44.760 –> 00:01:45.760 I already calculated that. 00:01:45.760 –> 00:01:49.800 And then they get the love letter from Medicare that says, “Hey, we’ve changed the amount 00:01:49.800 –> 00:01:54.500 we’re

Dr. Friday Radio Show – February 17, 2024

Dr. Friday Burke — Mon, 19 Feb 2024 16:19:34 +0000

In this episode of “Dr. Friday Radio Show”, Dr. Friday, an enrolled agent licensed by the IRS, offers valuable tax advice and financial counseling to listeners dealing with various tax situations. Topics covered include:

Understanding the difference between federal and state tax laws, especially regarding the sale of property and capital gains tax.

The importance of timely tax preparation, with a focus on business tax returns and the upcoming March 15 deadline for LLCs and corporations.

Navigating state tax obligations and the implications for businesses operating across state lines.

Guidance on filing annual reports, business licenses, and navigating franchise excise taxes.

Tips for handling 1099 forms, both for businesses and individuals, to ensure compliance with IRS requirements.

Advice for individuals working remotely for out-of-state employers and the tax implications thereof.

The episode also features listener call-ins, providing personalized advice on specific tax queries, including rental property depreciation, the taxation of social security and pensions for seniors, and the tax treatment of income from YouTube content creation.

Transcript
00:00:00.000 –> 00:00:06.480 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.480 –> 00:00:08.080 financial woes. 00:00:08.080 –> 00:00:09.680 She’s the how-to girl. 00:00:09.680 –> 00:00:11.680 It’s the Dr. Friday Show. 00:00:11.680 –> 00:00:18.560 If you have a question for Dr. Friday, call her now. 00:00:18.560 –> 00:00:19.560 737-WWTN. 00:00:19.560 –> 00:00:23.560 That’s 737-9986. 00:00:23.560 –> 00:00:27.360 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:27.920 –> 00:00:30.600 Good day. 00:00:30.600 –> 00:00:33.360 This is Dr. Friday and we’re live here in studio. 00:00:33.360 –> 00:00:39.640 And if you have a question, you can join us live as well at 615-737-9986. 00:00:39.640 –> 00:00:46.480 615-737-9986. 00:00:46.480 –> 00:00:49.440 For many of you that may not or maybe it’s your first time listening to me on the radio, 00:00:49.440 –> 00:00:54.280 I’m an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. 00:00:54.280 –> 00:00:56.080 That is pretty much all I do. 00:00:56.080 –> 00:01:00.960 So if you’re working on your taxes this wonderful weekend, or maybe you’re making some tax planning 00:01:00.960 –> 00:01:06.120 for 2024 and you’ve got a question, possibly something to do with inheritance or selling 00:01:06.120 –> 00:01:12.520 or buying property, paying the capital gains tax, that kind of situation, making sure you 00:01:12.520 –> 00:01:17.080 understand what the federal tax law is compared to the state. 00:01:17.080 –> 00:01:21.960 Kind of found out an interesting situation because we seem to have had a large number, 00:01:21.960 –> 00:01:27.440 in my opinion, a large number of individuals that were thinking that if they reinvested 00:01:27.440 –> 00:01:32.760 the money from the sale of their home, they weren’t going to have to pay any kind of federal 00:01:32.760 –> 00:01:33.760 taxes. 00:01:33.760 –> 00:01:40.640 I did find out that California state income tax has that available transaction on it. 00:01:40.640 –> 00:01:43.120 It is not a federal law, but a state. 00:01:43.120 –> 00:01:49.560 So you really do need to understand what is state, what is federal and how that works. 00:01:49.560 –> 00:01:52.320 So that way you understand how you’re going to be able to save. 00:01:52.320 –> 00:01:55.920 In most cases

Dr Friday Radio Show – February 3, 2024

Dr. Friday Burke — Wed, 07 Feb 2024 20:40:54 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday tackles the latest in tax legislation and offers expert advice on managing your finances in light of new changes. Key highlights include:

Overview of the Tax Relief Act of 2024: An introduction to the new tax legislation and its key components.

Changes to Child Tax Credit: Detailed explanation of the expanded child tax credit and how it affects families.

100% Depreciation Rules Extended: Insight into the extension of 100% depreciation through 2025 and its benefits for business owners.

Adjustments Based on Inflation: Discussion on the adjustment of refundable tax credits in response to inflation, including the specific figures for 2024.

Implications for Early Tax Filers: Advice for those who have already filed their taxes and how they might be affected by the new changes.

Retirement Savings Strategies: Solutions for retirees looking to contribute to a Roth IRA through earned income, including tips for those with unique circumstances like farm income.

This episode is essential for anyone looking to stay informed on the latest tax laws and learn strategies to optimize their tax filing and financial planning for the upcoming year.

Transcript
00:00:00.000 –> 00:00:06.480 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.480 –> 00:00:07.480 financial woes. 00:00:07.480 –> 00:00:09.720 She’s the how-to girl. 00:00:09.720 –> 00:00:10.720 It’s the Dr. Friday Show. 00:00:10.720 –> 00:00:20.000 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:20.000 –> 00:00:23.720 That’s 737-9986. 00:00:23.720 –> 00:00:27.400 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:27.400 –> 00:00:34.200 Good day, I’m Dr. Friday and the doctor is in the house. 00:00:34.200 –> 00:00:36.680 We have some breaking news. 00:00:36.680 –> 00:00:44.160 Back on the 31st of January, we finally got a new, the Tax Relief of American Families 00:00:44.160 –> 00:00:49.160 and Workers Act of 2024 came through. 00:00:49.160 –> 00:00:53.880 It’s going to be interesting to see exactly how that’s going to affect some. 00:00:53.880 –> 00:00:59.680 If you already filed your taxes, you may find that there could be some new changes. 00:00:59.680 –> 00:01:06.720 Most of it’s going to come into 2024, but they did change the child tax credit. 00:01:06.720 –> 00:01:08.400 They expanded some of that. 00:01:08.400 –> 00:01:12.680 They extended some of the 100% depreciation through 2025. 00:01:12.680 –> 00:01:17.880 And this year, if you’d already filed your taxes, you would have only had an 80% on most 00:01:17.880 –> 00:01:19.460 of your depreciation. 00:01:19.460 –> 00:01:21.980 So that will be a big situation. 00:01:21.980 –> 00:01:28.240 So again, if you have already filed, they did do some things that went backwards and 00:01:28.240 –> 00:01:31.640 we’re going to cover some of that as we move forward. 00:01:31.640 –> 00:01:34.520 And it may affect if you’ve already filed. 00:01:34.520 –> 00:01:38.120 Again, opened on January 29th, the tax season. 00:01:38.120 –> 00:01:40.200 And so I guess, you know, it’s like hunting season. 00:01:40.200 –> 00:01:47.200 I always say the tax season started on that, but you know, there is always new and exciting 00:01:47.200 –> 00:01:49.000 things continuously happening. 00:01:49.000 –> 00:01:53.500 A portion of the refundable tax credit is based on inflation. 00:01:53.500 –> 00:01:56.400 S

Dr. Friday Radio Show – January 27, 2024

Dr. Friday Burke — Wed, 31 Jan 2024 18:57:38 +0000

In this episode of the Dr. Friday Radio Show, Dr. Friday delves into crucial tax updates and financial strategies. From the essentials of tax preparation to navigating new IRS regulations, this episode offers valuable advice for both individuals and businesses. Key highlights include:

Preparation for Tax Season: Importance of gathering W-2s and 1099s without rushing the filing process to ensure accuracy.

1099-K Form Thresholds: Updated requirements for digital and small-scale sellers, emphasizing its effect on gig economy participants.

Tax Filing Requirements: Guidance on who needs to file taxes, focusing on income thresholds and specific financial circumstances.

Dependents and Education Credits: Tips on claiming dependents and maximizing education-related credits.

Digital Assets and IRS Regulations: Overview of new IRS guidelines on reporting digital assets.

Business Tax Compliance: Insights into beneficial ownership information compliance and clean energy credits under new tax laws.

This episode is packed with expert advice to help listeners efficiently navigate their tax responsibilities and optimize financial planning for the year ahead.

Transcript
00:00:00.000 –> 00:00:06.280 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.280 –> 00:00:07.280 financial woes. 00:00:07.280 –> 00:00:09.540 She’s the how-to girl. 00:00:09.540 –> 00:00:11.120 It’s the Dr. Friday Show. 00:00:11.120 –> 00:00:19.800 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:19.800 –> 00:00:23.520 That’s 737-9986. 00:00:23.520 –> 00:00:29.520 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:29.520 –> 00:00:34.600 G’day, I’m Dr. Friday and the doctor is in the house today. 00:00:34.600 –> 00:00:38.920 We’re going to be talking about my favorite subject, which of course is taxes. 00:00:38.920 –> 00:00:44.120 There has been a few minor upchanges on a few things that might be on the other, ununique 00:00:44.120 –> 00:00:47.480 side of things, but we’re going to cover that. 00:00:47.480 –> 00:00:51.960 And of course, many of you are probably getting all of your tax records together, so it’s 00:00:51.960 –> 00:00:56.280 time for you to probably start thinking about, I wouldn’t rush still because I know many 00:00:56.280 –> 00:00:57.840 people are still waiting. 00:00:57.840 –> 00:01:00.760 W-2s do not have to be out quite yet. 00:01:00.760 –> 00:01:05.120 1099s are still being processed, at least in our office. 00:01:05.120 –> 00:01:11.360 So many of those will be something that may hold you up in processing that information 00:01:11.360 –> 00:01:15.520 and don’t rush to file something until you have all of your documentation. 00:01:15.520 –> 00:01:20.760 It’s not worth the IRS turning around and changing your tax return, which is something 00:01:20.760 –> 00:01:26.380 that can happen anytime they don’t have the right information on the right lines that 00:01:26.380 –> 00:01:28.160 matches what they think you should have. 00:01:28.160 –> 00:01:30.360 All right, we’re going to go right to the phone lines. 00:01:30.360 –> 00:01:31.360 We’ve got Ryan. 00:01:31.360 –> 00:01:34.040 I love it when my phone lines start lighting up early. 00:01:34.040 –> 00:01:35.040 Hey Ryan, what’s happening? 00:01:35.040 –> 00:01:36.040 I hope it’s Brian because that’s me. 00:01:36.040 –> 00:01:37.040 Oh, okay. 00:01:37.040 –> 00:01:38.040 B

Dr. Friday Radio Show – January 20, 2024

Dr. Friday Burke — Mon, 22 Jan 2024 16:06:29 +0000

In the January 20th episode of the Dr. Friday Tax Show, Dr. Friday, an experienced financial counselor and tax consultant, delves into crucial topics for the 2024 tax season. This episode highlights important updates including:

Beneficial Ownership Information Compliance: Urgent for business owners to comply by January 1, 2025, with significant penalties for non-compliance.

IRS E-file Opening Delayed: Now starting January 29th, impacting early filers, especially those with earned income and child tax credits.

Social Security and Tax Liabilities: Discusses how income changes affect Medicare costs and child support calculations.

Small Business Tax Filings: Critical deadlines for 1120-S and 1065 forms emphasized.

Handling Disability Benefits and Trust Incomes: Insight into tax implications for those receiving disability benefits and beneficiaries of trusts.

Interactive Listener Queries: Addresses a variety of questions, from personal tax situations to complex issues.

Essential for business owners, retirees, and individual taxpayers, this episode offers a wealth of information to smoothly navigate through the tax season.

Transcript
00:00:00.000 –> 00:00:07.000 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:00:07.000 –> 00:00:11.000 She’s the how-to girl. It’s the Dr. Friday Show. 00:00:11.000 –> 00:00:22.000 If you have a question for Dr. Friday, call her now. 737-WWTN. That’s 737-9986. 00:00:22.000 –> 00:00:28.000 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:29.000 –> 00:00:36.000 G’day, I’m Dr. Friday and the doctor is in the house on this very cold Saturday. 00:00:36.000 –> 00:00:41.000 Many of you may be at the house, not actually out running around, but who knows? 00:00:41.000 –> 00:00:44.000 When I went out earlier, it looked like it was a bit busy out there. 00:00:44.000 –> 00:00:48.000 So, I will say that many people probably have enjoyed the snow a little bit. 00:00:48.000 –> 00:00:52.000 But, hopefully that will go away so we can get back into some serious business. 00:00:52.000 –> 00:00:56.000 A little hard for people to get to their tax appointments when there’s snow coming down. 00:00:56.000 –> 00:01:03.000 So, if you want to join the show today, if you’ve got questions concerning taxes or things that you may have heard or you’re working on, 00:01:03.000 –> 00:01:09.000 either your 2023 filings or preparing for 2024, something that may be coming up, 00:01:09.000 –> 00:01:19.000 all you have to do is pick up the phone. 615-737-9986. 00:01:19.000 –> 00:01:27.000 We’re getting a lot of phone calls on the BOI or the Small Business Compliance Guide that’s put out by the Finance Criminal Enforcement Network. 00:01:27.000 –> 00:01:32.000 This is a true thing, beneficial ownership information, BOI. 00:01:32.000 –> 00:01:38.000 Many of you are getting emails or being told by other individuals that this needs to be filed. 00:01:38.000 –> 00:01:43.000 It does need to be filed and the rules are kind of interesting. 00:01:43.000 –> 00:01:52.000 So, if you already have a business and it started prior to 2024, you have until January 1st, 2025. 00:01:52.000 –> 00:02:01.000 If you’ve opened it in this first period, you only have less than 90 days to actually put this BOI in. 00:02:01.000 –> 00:02:10.000 So, if you’ve just opened up a new LLC or a new corporation, then you need to make sure if you are required to file the beneficial ownership information, 00:02:10.000 –> 00:02:14.000 that

Dr. Friday Radio Show – January 13, 2024

Dr. Friday Burke — Wed, 17 Jan 2024 14:16:23 +0000

Welcome to the Dr. Friday Radio Show! In this episode, Dr. Friday provides valuable insights into the intricacies of tax preparation and compliance. Key topics include the delay in IRS e-file opening, the crucial Small Entity Compliance Guide, and the urgent need for business owners to understand the Beneficial Ownership Information requirements. Dr. Friday emphasizes the importance of accurate tax documentation and the potential implications on Medicare and Social Security. The episode also covers payroll tax issues, child support considerations in relation to Social Security, and questions about capital gains on real estate sales. Insightful call-ins add to the dynamic discussion, making this a must-listen for anyone seeking practical tax advice.

Key Highlights:

IRS E-file Delay: The opening of IRS e-file is postponed to January 29th, impacting the filing process for basic tax returns.

Beneficial Ownership Information Compliance: A critical alert for business owners about the substantial penalties for non-compliance by January 1, 2025.

Medicare and Social Security Impacts: Discussions on how income changes, including Social Security benefits, can affect Medicare costs and child support calculations.

Real Estate Sales and Taxes: Guidance on the tax implications and exclusions related to selling property, particularly for seniors in different living situations.

Interactive Listener Queries: Dr. Friday addresses a variety of caller questions, from payroll tax concerns to retirement account rollovers.

Whether you’re a business owner, retiree, or individual taxpayer, this episode is packed with essential information to help you navigate the complexities of tax season.

Transcript
00:00:00.000 –> 00:00:06.880 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.880 –> 00:00:07.880 financial woes. 00:00:07.880 –> 00:00:10.100 She’s the how-to girl. 00:00:10.100 –> 00:00:11.600 It’s the Dr. Friday Show. 00:00:11.600 –> 00:00:18.720 If you have a question for Dr. Friday, call her now. 00:00:18.720 –> 00:00:19.720 737-WWTN. 00:00:19.720 –> 00:00:20.720 That’s 737-9986. 00:00:20.720 –> 00:00:27.720 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:27.720 –> 00:00:35.600 Hey, this is Dr. Friday and the doctor is in the house. 00:00:35.600 –> 00:00:42.800 We are here live in studio on this very cold Saturday, getting ready to start our tax season. 00:00:42.800 –> 00:00:45.680 Well, actually, it’s already started, already completing returns. 00:00:45.680 –> 00:00:53.000 I will let you know that the IRS is now saying January 29th for many of my very basic W-2 00:00:53.000 –> 00:00:58.560 only tax returns, that e-file will not open until January 29th. 00:00:58.560 –> 00:01:02.640 So in some cases, if you were thinking to rush to that line and get your money back 00:01:02.640 –> 00:01:07.920 from the IRS, you may have to wait a little longer than you expected. 00:01:07.920 –> 00:01:12.040 But if you’re working on your taxes this weekend or you’ve got some questions, a little call 00:01:12.040 –> 00:01:17.600 out to all my prior or existing clients that we, you know, every year obviously handle 00:01:17.600 –> 00:01:19.200 your taxes. 00:01:19.200 –> 00:01:23.960 If you don’t see a time, our calendar, the calendar is open at drfriday.com. 00:01:23.960 –> 00:01:26.560 If you don’t see an available time, just call the office. 00:01:26.560 –> 00:01:31.040 We do have available time, so we just can’t open up on the calendar because, well, if 00:01:31.0

Dr. Friday Radio Show – January 6, 2024

Dr. Friday Burke — Mon, 08 Jan 2024 23:29:33 +0000

Welcome to the Dr. Friday Radio Show, January 6th, 2024 edition! In this insightful episode, Dr. Friday, a seasoned tax consultant and financial counselor, navigates through the complexities of the tax season. The show delves into various tax-related topics, including the implications of real estate transactions, capital gains tax, and retirement account distributions. Additionally, Dr. Friday provides personalized advice to callers on issues ranging from tax deductions and inheritance taxes to Social Security and Medicare impacts. This episode is a treasure trove of valuable information for anyone looking to make informed decisions during the tax season.

Key Highlights:

Real Estate Insights: Dr. Friday discusses the tax implications of buying and selling real estate, offering expert advice on how these transactions affect tax filings.

Capital Gains Clarifications: Callers receive detailed explanations about capital gains tax, especially concerning the sale of long-held stocks and assets.

Retirement Accounts and Taxation: The episode covers the tax treatment of distributions from traditional IRAs, including the tax liabilities arising from such withdrawals.

Social Security and Medicare Considerations: Dr. Friday addresses questions about the taxation of Social Security benefits and the potential Medicare implications of increased income.

Interactive Q&A: The show features interactive segments where listeners call in with specific tax queries, which Dr. Friday addresses with her expertise.

Small Business Tax Tips: Valuable information is shared about business tax filing deadlines, the importance of updating business licenses, and other regulatory compliances.

Whether you’re a taxpayer seeking guidance on personal finance, a retiree grappling with tax implications, or a small business owner, this episode offers a wealth of knowledge to navigate the tax season confidently.

Transcript
00:00:00.000 –> 00:00:06.780 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:00:06.780 –> 00:00:10.320 She’s the how-to girl. It’s the Dr. Friday Show. 00:00:10.320 –> 00:00:21.800 If you have a question for Dr. Friday, call her now. 737-WWTN. That’s 737-9986. 00:00:21.800 –> 00:00:26.960 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:29.320 –> 00:00:33.360 G’day, I’m Dr. Friday and the doctor is in the house. 00:00:33.360 –> 00:00:37.880 It is that time of the year where it’s going to start getting a bit more crazy. 00:00:37.880 –> 00:00:44.320 Tax season is upon us and we have just finished up, it feels like, the last tax year. 00:00:44.320 –> 00:00:46.320 So we will be talking mostly about 00:00:46.320 –> 00:00:52.080 2023. Doesn’t mean that if you haven’t filed prior tax years or if you’re having tax issues in other ways 00:00:52.080 –> 00:00:55.540 that there might be something that we need to still address as well. 00:00:55.680 –> 00:01:00.440 But the important part of all this is we are ready to get going with 00:01:00.440 –> 00:01:05.360 2023 tax season, which is going to be a crazy one. 00:01:05.360 –> 00:01:11.040 Not a lot of changes from last year to this year to be quite honest if we’re looking at certain things. 00:01:11.040 –> 00:01:16.240 You know, tax brackets always change a little bit and itemizing. 00:01:16.240 –> 00:01:20.480 But I still have a large number of people that seem to be buying and selling real estate. 00:01:20.480 –> 00:01:22.880 And so that does have an effect on us. 00:01:23.480 –> 00:01:27.640 And d

Dr. Friday Radio Show – December 9 – Christmas Special 2023

Dr. Friday Burke — Mon, 11 Dec 2023 21:28:09 +0000

Welcome to the Dr. Friday Radio Show Christmas Special 2023! Hosted by financial counselor and tax consultant, Dr. Friday, this episode promises a blend of financial insight, lively discussions, and festive giveaways. Joined by special guest Dr. Electric (Joe Macri), the show celebrates the season of giving with its annual Christmas giveaway, a tradition for nearly 15 years. Tune in for a unique mix of business updates, expert advice, and exciting prizes!

Key Highlights:

Special Guest Appearance: Dr. Electric (Joe Macri) joins the show, providing insights into his business and joining the festive giveaway.

Annual Christmas Giveaway: Celebrating a 15-year tradition, the show features a range of giveaways, including Netflix cards, restaurant gift cards, and more.

Business Updates: Discussions about the latest happenings and seasonal trends in Dr. Friday’s tax consultancy and Dr. Electric’s business.

Interactive Segments: Listeners call in for a chance to win various prizes and ask questions related to finance, taxes, and electrical issues.

Practical Financial Advice: Dr. Friday addresses listener questions, offering guidance on topics like tax deductions for businesses, dealing with inheritances, and navigating changes in tax laws.

Unique Prizes: The giveaways include items like half a deer for a holiday feast, signifying the show’s blend of practicality and festive cheer.

Listener Engagement: Engaging with the audience through calls, the show fosters a sense of community and offers direct assistance to individuals.

Join Dr. Friday and Dr. Electric for an episode filled with warmth, wisdom, and the spirit of Christmas. Whether you’re seeking financial advice or just in for the festive atmosphere, this special show has something for everyone!

Transcript

Part 1
00:00:00.000 –> 00:00:06.400 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your 00:00:06.400 –> 00:00:07.400 financial woes. 00:00:07.400 –> 00:00:09.640 She’s the how-to girl. 00:00:09.640 –> 00:00:11.360 It’s the Dr. Friday Show. 00:00:11.360 –> 00:00:19.880 If you have a question for Dr. Friday, call her now, 737-WWTN. 00:00:19.880 –> 00:00:23.600 That’s 737-9986. 00:00:23.600 –> 00:00:27.400 So here’s your host, financial counselor and tax consultant, Dr. Friday. 00:00:27.400 –> 00:00:34.280 G’day, I’m Dr. Friday and the doctor is in the house. 00:00:34.280 –> 00:00:40.160 And today we have a show of shows that we’re going to be putting on every year. 00:00:40.160 –> 00:00:45.560 I’m fortunate enough, many of you know that Dr. Electric is not on the show as often or 00:00:45.560 –> 00:00:50.680 he doesn’t have his normal Saturday shows, but I have dragged him onto the radio. 00:00:50.680 –> 00:00:54.360 So we’re going to have a really good time having Joe here and myself. 00:00:54.360 –> 00:00:57.000 This is our annual Christmas giveaway. 00:00:57.000 –> 00:00:59.800 We have done for nearly 15 years together. 00:00:59.800 –> 00:01:04.160 So I’m so glad that he’s going to join us on the show. 00:01:04.160 –> 00:01:08.000 We’ll talk a little bit about what his business is doing, what my business is doing, but most 00:01:08.000 –> 00:01:13.720 importantly what we’re going to do is talk about what we’re giving away. 00:01:13.720 –> 00:01:14.720 That’s right. 00:01:14.720 –> 00:01:16.600 This is always, usually we had two hours. 00:01:16.600 –> 00:01:18.840 We got to get it all into one hour.

Dr. Friday Radio Show – December 2, 2023

Dr. Friday Burke — Wed, 06 Dec 2023 20:50:32 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday delves deep into the complex world of taxes, offering clarity, guidance, and solutions for listeners. Here are some of the topics she addresses:

Roth IRA conversions and the best time to undertake them, especially considering the holiday season.

Maximizing your 401(k) contributions and the strategic timing for doing so.

Advice on gifting significant amounts to children, including tax implications and necessary forms (like Form 709).

Clarifications on tax credits and debunking myths regarding their repayment.

Year-end tax planning for small business owners, including equipment purchases and the importance of placing new equipment into service before year-end for tax deductions.

Tax implications of receiving a trust fund distribution.

Guidance on home equity and mortgage issues in estate planning.

Updates on Tennessee Department of Revenue’s new policies for small business owners regarding gross business receipts.

Live calls from listeners with specific tax-related questions and scenarios.

And more!

Transcript

Part 1

00:00:00.000 –> 00:00:07.000 No, no, no. She’s not a medical doctor, but she can sure cure your tax problems or your financial woes.

00:00:07.000 –> 00:00:11.000 She’s the how-to girl. It’s the Dr. Friday Show.

00:00:11.000 –> 00:00:22.000 If you have a question for Dr. Friday, call her now. 737-WWTN. That’s 737-9986.

00:00:22.000 –> 00:00:28.000 So here’s your host, financial counselor and tax consultant, Dr. Friday.

00:00:29.000 –> 00:00:34.000 Good afternoon. I’m Dr. Friday and this is the Dr. Friday Show.

00:00:34.000 –> 00:00:46.000 And we are talking about my favorite subject. It is December, so it means that we are thinking about what can we still do for the year of 2023.

00:00:46.000 –> 00:00:50.000 We only have something like 20, 24, 25 days left of the season.

00:00:50.000 –> 00:00:57.000 So we need to really start concentrating on if you’re considering the Roth conversion, you want to do it earlier versus later.

00:00:57.000 –> 00:01:02.000 Later you get towards Christmas. A lot of people are out of town. It’s hard to make that conversion.

00:01:02.000 –> 00:01:11.000 The other would be maximizing your 401(k). Sometimes people will put their final paycheck into their 401(k) to help reduce their overall income

00:01:11.000 –> 00:01:16.000 because you really have a tough time knowing what your income is until this time of the year for year to day,

00:01:16.000 –> 00:01:20.000 especially if you work with some limited bonuses and things like that.

00:01:20.000 –> 00:01:26.000 Maybe you got an inheritance or something and you can’t really convert your inheritance into a retirement.

00:01:26.000 –> 00:01:32.000 But you can maximize your work or your 401(k) or put money into an IRA of some sort.

00:01:32.000 –> 00:01:37.000 And then that would help you reduce the overall tax that maybe you’re looking at.

00:01:37.000 –> 00:01:40.000 So these are the kinds of things we really want to go with.

00:01:40.000 –> 00:01:44.000 Oh, wow. Awesome. You guys are ready for the Dr. Friday Show today. I love it.

00:01:44.000 –> 00:01:49.000 It’s not been quite tax season. We usually get that. Let’s go to Ron in Nashville and we’ll go right to it.

00:01:49.000 –> 00:01:50.000 Hey, Ron.

00:01:51.000 –> 00:01:52.000 Hey.

00:01:52.000 –> 00:01:53.000 I’ve got a question.

00:01:53.000 –

Dr. Friday Radio Show – November 11, 2023

Dr. Friday Burke — Wed, 15 Nov 2023 18:20:03 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday delves deep into the complex world of taxes, offering clarity, guidance, and solutions for listeners. Here are some of the topics she addresses:

Nonprofit Tax Compliance: Understanding the IRS regulations for nonprofits, particularly the importance of filing the 990, 990-EZ forms to maintain nonprofit status.

Charitable Contributions: Insights on verifying the legitimacy of charities, especially for online and overseas donations, and ensuring they qualify for tax deductions.

Personal Tax Situations: Addressing unique tax scenarios that arose in 2023, including inheritance taxes and selling properties with shared interests.

Tax Basis Tracking: The importance of accurate tracking for tax basis in properties to ensure correct capital gains tax payments.

Gift Tax Concerns: Guidance on gift taxes and how to navigate them, especially in anticipation of potential tax law changes in 2026.

Estate Planning: Emphasizing the need for wills and trusts to ensure your assets are distributed according to your wishes and not left to default government plans.

IRS Representation: Offering advice on dealing with the IRS, including the significance of having an enrolled agent for representation in tax issues.

Tax Planning for Life Events: Discussing how life changes like marriage, divorce, or job switches can impact tax liabilities and the need for proactive tax planning.

Year-End Tax Strategies: Tips on year-end tax strategies for individuals and businesses, including adjusting W-4s, managing investment losses, and maximizing retirement contributions.

Tax Loss Harvesting: Strategies for leveraging investment losses against capital gains for tax benefits.

Retirement Contributions and Distributions: Guidelines on required minimum distributions from retirement accounts and the impact of various types of contributions.

Updating Personal Information: The importance of keeping personal information up-to-date with financial institutions and the IRS for accurate tax record-keeping.

Tax Record Retention: Advice on how long to keep tax records and the best practices for storing them securely.

Join Dr. Friday as she navigates these and other tax-related topics, providing valuable insights for effectively managing your taxes.

Transcript

Part 1: 0:00

Announcer 0:00 Oh, no, no, no, she’s not a medical doctor, but she can share 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-WWTN that 737-9986. So here’s your host, financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. We are here live in studio today. So if you have any questions, you can jump right on the phone 615-737-9986 – 615-737-9986.

I want to touch on a couple things that have come up this week. One of the big things I think the IRS and it really just depends on when your nonprofit started, you have three years if you have not filed a 990 in or 990 or 990 ez, they will discontinue or dis basically remove you from the nonprofits. I’ve had a couple phone calls this last couple of weeks on this situation. So if your nonprofit has received that love letter saying, you know we’re determination has been removed for your exemption, you do need to deal with that issue. You cannot continue to be a nonprofits, you can’t continue to take money if you’re if yo

Dr. Friday Radio Show – November 4, 2023

Dr. Friday Burke — Mon, 06 Nov 2023 18:31:00 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday delves deep into the complex world of taxation, offering clarity, guidance, and solutions for listeners. Here are some of the topics she addresses:

Year-End Tax Strategies: Dive into the intricacies of 2023 finances, the nuances of business purchases for tax savings, and the critical decisions surrounding major expenses. Discover the world of depreciation, the significance of timely equipment updates, and individual tax pointers, from medical expenses to maximizing deductions.

Decoding Inheritance Tax: Uncover the potential tax impacts of inheritance, the capital gains maze when selling inherited property, and the latest limitations on retirement accounts like 401ks and IRAs.

Medicare Insights: Clarify the myths and confusions around Medicare payments and get the lowdown on a recent payment discrepancy.

Guidance on Tax Payments: If you’re bracing for a higher tax bill this year, learn why it’s pivotal to pay at least 110% of the previous year’s tax.

Engaging with the IRS: Good news! IRS response times have improved post-COVID. Learn about the positive shifts and how the landscape has evolved in recent years.

Tax Advocate Office Explained: An ally in the complex tax world, this office not only collaborates with the IRS but champions taxpayers. From resolving IRS-related challenges to the specifics of the ‘nine one one’ form, get acquainted with how they can be your tax savior.

Dr. Friday’s Expertise: As an IRS-licensed representative, Dr. Friday underscores the value of professional advocacy, emphasizing her role in standing up for taxpayers.

Navigating Tax Filing & Refunds: The clock is ticking! Understand the importance of prompt tax filing, the three-year refund window, and the need to claim stimulus funds.

Inheritance & Disability Dynamics: Explore the tax implications when inheriting revenue-generating assets on disability. Emphasize the need for specialized counsel, especially during major life transitions, and the strategies to shield assets and revenue.

Book Your Tax Session: A gentle reminder to secure your tax appointments for the upcoming 2023 tax season.

Golden Tax Nuggets: As always, Dr. Friday stresses the significance of seeking advice from seasoned experts, be it lawyers, financial advisors, or tax pros. After all, in the realm of taxation, forethought and proactive measures reign supreme.

… And so much more!

Transcript

Part 1 – 00:00

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 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: G’day, I’m Dr. Friday and the doctor is in the house on this absolutely beautiful Saturday. It is perfect weather outside to be working outside for some of us crazy people. I was just mentioning to my engineer that I have started to put my Christmas decorations up and I know that’s a little early for some people, but you know, it takes me a little while to get all my outdoor decorations up, so it’s time to start getting them down and getting them prepared.

So it’s getting close to the end of the year and what do we have to do by the time the end of the year? We need to be making sure that we have looked at our 2023, evaluated, do we need to buy something if that would help save

Dr. Friday Radio Show – October 28, 2023

Dr. Friday Burke — Tue, 31 Oct 2023 15:43:36 +0000

Welcome to this episode of the Dr. Friday Radio Show! Join tax expert Dr. Friday as she navigates through:

Introduction & Upcoming Tax Season:

Dr. Friday’s role as a financial counselor and tax consultant.

Preparations for the upcoming tax season, including scheduling, deadlines, and extensions.

The significance of tax planning and understanding personal tax situations.

Life Events & Taxes:

How events like withdrawing from a 401k, selling real estate, and changes in marital status affect taxes.

Tax Programs & Scams:

Warnings about misleading advertisements, especially concerning the Employee Retention Tax Credit (ERTC).

The difference between the ERTC and PPP (Paycheck Protection Program) funds.

Offer and Compromise with the IRS:

Handling negotiations with the IRS and the importance of maintaining good standing.

Entrepreneurial Tax Challenges:

The tax dilemmas faced by self-employed individuals.

Emphasizing the need to stay updated on tax obligations.

Caller Queries:

Inquiries on topics like inheritance, unfiled taxes, and the implications of sales and investments.

Complexities in Taxation:

The intricate nature of taxation, particularly for those with varied income streams.

The importance of comprehensive tax documentation.

Advice for Business Owners:

Challenges faced by entrepreneurs regarding taxes, including different types of taxes.

Guidance on the Tennessee Department of Revenue’s “TNTAP” system.

Capital Gains & Medicare:

Discussions on capital gains, especially related to selling homes.

Potential Medicare implications due to significant capital gains.

Closing Thoughts:

The significance of understanding capital gains and their broader impact.

A festive sign-off wishing listeners a Happy Halloween.

Stay tuned as Dr. Friday demystifies the complex world of taxes and offers her expert advice!

Transcript

Part 1 – 00:00

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 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

G’day, I’m Dr. Friday and the doctor is in the house. We are very busily getting prepared for the next tax season. Honestly, I got to play hooky the last week or so. So I am all ready to get ready to get organized, really.

If you are a tax client of mine and you want to set up your tax appointment, the calendar is on the website. So you can go ahead and set up your time for your tax appointments. If you are looking to have a tax appointment.

And then of course we still have to deal with some of the issues that are still coming out there. There were a few extensions out there for individuals that might’ve been, I know in California they have an extension. There may be a couple other small ones for the year of 2022, but all in all, most everybody should have already filed your 2022 tax return. It was due on the 16th of October and hopefully that was all filed. If you’ve gotten love letters containing something in them, or you have a question concerning maybe this year, because we’re what, 10 months into 2023, about time we start really talking

Dr. Friday Radio Show – October 7, 2023

Dr. Friday Burke — Thu, 12 Oct 2023 14:48:04 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, tax expert Dr. Friday has invited Nathan Wright from https://medi65.com back to the show. Below are several topics discussed in this episode.

Medicare overview – Explaining the different parts of Medicare (Part A, B, C, D) and options like Medicare Advantage and Medigap/Medicare Supplement plans.

Medicare enrollment – When and how to initially enroll in Medicare and make changes during the open enrollment period.

Medicare penalties – Penalties for not enrolling in certain parts of Medicare when you are first eligible.

Comparing Medicare plans – How to use online tools to compare different Medicare plans based on your doctors, prescriptions, etc.

Plan changes – Reasons to review your Medicare coverage annually as plans and costs can change year to year.

Getting help with Medicare – Using an insurance broker/agent to understand Medicare and make the best plan selections.

Medicare and retirement – Transitioning from employer insurance to Medicare at age 65.

Medicare coverage gaps – Parts of healthcare that original Medicare doesn’t cover like vision and dental.

Medicare Advantage pros/cons – Discussion of the tradeoffs between Medicare Advantage and Medigap plans.

Medicare savings programs – State programs to help pay Medicare costs based on income.’

And much more!

Transcript

Part 1: 00:00

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 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.

(upbeat music)

Dr. Friday: G’day, I’m Dr. Friday and the doctor is in the house. We have a really good show scheduled for today. And as you know, you can always join our show live at 615-737-9986. And we today are going to be talking with Nathan Wright. Many of you guys have been listening to me for well over 10 years now. And Nathan’s been on the show a few times and he is my go-to when it comes to Medicare. And it’s probably one of the more confusing. People think taxes, Nathan, are confusing. First I should say, hello, Nathan, join the show.

Nathan: Hey, how you doing, Dr. Friday?

Dr. Friday: I am good. I was just gonna say that, you know, Medicare is a subject in itself. I know a lot of people think taxes can be complicated, but having to deal with Medicare, in my opinion, is just so much advice out there. and some of it can just seem like it’s more confusing than probably it needs to be. So I’m hoping today we can always take your calls if you’re dealing with Medicare or if you have a family member and you might be helping them make decisions. Remember, this is, I don’t know, this is the time when people can start getting ready to make changes, right? ‘Cause there’s only a certain time of the year, Nathan, that people can do adjustments to their Medicare?

Nathan: Yes, you are absolutely correct. This is the annual election period which starts on October 15th and runs through December 7th. So we are almost there.

Dr. Friday: Yeah, so this is the time. So if they’re wanting to add or if they feel that they have too much of something, this is the only window of time that they can really do that. They can’t like, if I don’t like my insurance today, I can go out and change my insurance. You can’t do that in Medicare.

Nathan: That’s generally correct. Although there is what’s called special election period.

Dr. Friday Radio Show – September 30, 2023

Dr. Friday Burke — Wed, 04 Oct 2023 13:41:41 +0000

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

Introduction and mention of the upcoming tax deadline on October 15th.

Discussion on potential tax changes for 2023 and the impact of life events on tax situations.

Caller question about capital gains taxes on the sale of co-owned hunting property.

Caller question about reporting the sale of a rental property with gifted equity to a daughter.

Importance of staying current with taxes and options for resolving tax debts.

Mention of potential benefits of bankruptcy in certain tax situations and the advice to seek professional advice.

Encouragement to track expenses and income for better tax planning and setting aside money for self-employment taxes.

Explanation of 1031 exchange for deferring capital gains and advantages of long-term real estate holding.

Emphasis on understanding tax liabilities when inheriting property or receiving gifts and the tax implications of life insurance policies.

Reminder to file 2022 taxes by the deadline and discussion of SEP contributions for retirement savings.

Dr. Friday’s contact information for further assistance.

Transcript

Part 1: 00:00

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 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. (upbeat music)

Dr. Friday: This is the Dr. Friday Show. Let’s see if we have us going here. I think I was a little bit rough getting on the show here, but I think we’re good to go. Guys, we’re live here in the studio, and if you wanna join the show, you can at 615-737-9986, 615-737-9986, the number here in the studio. We’re all working pretty diligently this next week and a half to finish up the end of the extensions that were filed. Obviously, if you filed an extension, then your taxes are due October 15th, and then you must have them filed, otherwise you’re late. So making sure, and then obviously, we’re all thinking about 2023 taxes. What’s going to be happening? Is there anything that’s gonna change? Maybe something’s changed in your life, how that’s going to affect you on that situation. Is it that you inherited something? Did you have some sort of change in marital status or maybe had a baby or got married or, you know, all those things do have an effect on your taxes. So understanding how that affects, usually, obviously getting married, it can be a different situation because now you’re going from being single on your withholdings. And if you’re merging people’s W-2s, sometimes it’s better to stay single on as far as withholding than it is to change to married and zero. You may find out that you won’t have enough of a withholding. make sure you’ve talked to someone before you make changes. Let’s go to Jim in Nashville and see if we can help him out a little bit. Hey Jim, what can I do for you, sweetie?

Caller: Hi doc. How are you doing this Saturday?

Dr. Friday: Oh, not complaining. Seriously. It’s pretty nice day out there. Beautiful, beautiful.

Caller: Hey, I’ve got a question for you. Several years ago, my best friend and I went in together and bought some hunting property. and now we have just put it on the market to sell. We own the land free and clear, so the money that we get will be split between the two of us. Help me out as far as what I’m looking at as far as capital gains taxes and any way to avoid that. I don’t plan on reinvesting that mone

Dr. Friday Radio Show – September 23, 2023

Dr. Friday Burke — Tue, 26 Sep 2023 15:04:11 +0000

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

Warning about scams involving fake IRS calls and fraudulent emails.

The importance of being cautious with personal information and verifying the validity of payment requests.

Retirement planning, including when to start collecting Social Security and the tax implications of different sources of income.

Clarifying the tax bracket based on pension, Social Security, and 401k withdrawals.

Inherited funds, taxation of life insurance proceeds, and financial management for seniors.

An anecdote about a scam involving fake IRS calls and the significance of verifying emails and bills to prevent fraud.

The necessity of being in compliance with the IRS before entering into any deals or payment plans.

The challenges of dealing with the IRS and the value of having representation.

The limitations and qualifications for offer in compromises and payment plans.

The importance of cautious spending when dealing with the IRS.

A caller’s inquiry regarding tax implications when selling a house in a different state for a family member in a nursing home.

The tax-free limits and potential Medicaid look-back period for the sale of the house.

And much more!

Transcript

Part 1 – 00:00

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 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: G’day, I’m Dr. Friday and the doctor is in the house. So what a beautiful Saturday, the first day of fall, but it is gorgeous out there. A little warm when you’re working outside, but I’ll take it compared to rain or any of the other things we could be having. So appreciate the weather. Hopefully you guys are enjoying it.

If you wanna join the show today, where I’ll be talking about my favorite subject, taxes. I’m an enrolled agent, licensed by the Internal Revenue Service to do taxes and representation. So that means if you haven’t filed taxes, if you’re getting love letters and you’re like, I don’t know what the IRS really wants, or you’re trying to make a deal with the IRS and they just don’t seem like it’s making sense to you why they want something, or you don’t know if you can make a deal with the IRS, you don’t understand how that works, that’s where I come in. That’s my expertise, that and just basic tax preparation.

And again, I’m an enrolled agent, been there for almost 25 years doing taxes and representation. So if you have questions, or maybe you’re pying something, you’re like, I don’t know if I sell my home, am I gonna owe taxes? If I inherit something, is it taxable income? Is it not taxable income? What’s the difference between the two? Big difference, obviously, all of us know, no taxes, taxes, never a good thing when you have to pay taxes.

You can join the show at 615-737-9986, 615-737-9986 is the number here in the studio. You can also email friday@drfriday.com. If you’re a little bit shy, totally relate. Calling a radio wasn’t something I ever really was doing until I started this 15 plus years ago. Now, of course, it feels like a second job. So if you’ve got a question or you just, maybe you have a friend or someone that you’re not sure of, you know, they’re behind, they’ve gotten divorced, that’s al

Dr. Friday Radio Show – September 9, 2023

Dr. Friday Burke — Thu, 14 Sep 2023 14:13:26 +0000

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:

Discussion about upcoming business tax deadlines on September 15th

Explanation of estimated tax payments and their requirements

Advice on making proper estimated tax payments

Discussion about penalties for late filing of business tax returns

Reminder of the October 15th deadline for individual tax returns

Importance of tax planning for the current and upcoming tax years

Advice on converting or taking money out of an IRA for various purposes

Introduction of the Sweet Addiction, a job readiness program for women in recovery

Announcement of the Tip the Waitress breakfast fundraiser event

Explanation of the difference between non-profit and not-for-profit organizations

Answering questions about IRA distributions and tax rates

Advice on gifting property or money to family members

And much more!

Transcript

Part 1

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 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: G’day I’m Dr. Friday and the doctor is in the house so if you are working on your business tax returns because if you filed an extension for your partnership LLC’s your sub S corporations and even for C corporations those will be due on September 15th again September 15th which is this coming Friday.

So if you haven’t, and if you did not file an extension, you’re just late, period. But that’s also the same day that we have to make our third estimated payment. Kind of want to touch base a little bit on the requirements for estimated tax payments. The tax law says we have to make four equal payments based on the year before. Now that doesn’t mean that if you want, some clients say, well, do I have to make four?

Can I not just on the first payment in April, can I just send all of the money or on the second payment?

Can I make a first payment and then the second?

As long as those payments are paid before the due date, those are considered for equal payments.

So if you wanna make all of your payments at one time and the original due date for every year is the first estimate is April the 15th or the filing date, whichever it might be, you may make all of them.

If you had an unusual situation, So let’s say you sold a piece of real estate that is taxable, not your primary, possibly it could be your primary, but in most cases with the exclusions, people don’t have a lot of taxes due, but let’s say it’s a rental property or a piece of investment land property, whichever that might be, then let’s take that and say that you owe taxes, maybe 50, $60,000.

So you are required within 90 days to make an estimated payment.

Again, estimated payments are based on the prior year.

So as long as you have made all the proper estimates for the year before, so you need to make sure you make 110% for this kind of situation.

So you might want to pay in a little extra.

It doesn’t mean you need to pay all $40,000 in taxes that may be due, but you do need to make an estimate, especially if you normally don’t owe taxes.

Two reasons I usually suggest this.

One of the big reasons is if the money is sitting in the bank and you are not a good person as far as being able to hold that money until tax time, you don’t want the IRS to ever be a loan officer.

It’s never a good experience.

Their

Dr. Friday Radio Show – August 26, 2023

Dr. Friday Burke — Wed, 30 Aug 2023 23:17:31 +0000

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:

The Importance of Filing Your Taxes on Time

All Business Tax Returns Due on September 15, 2023

All Personal Tax Returns Due on October 15, 2023

Self-Employment Tax Should Always Be Between 10% and 30%

How To Manage Quarterly Tax Payments as Self-Employed

Best Way To Claim on W4 When Married

How To Take Advantage of Qualified Charitable Deduction

The Importance of Setting Money Aside for Retirement and Taxes

How to Get in Touch With Dr. Friday

How To Make Sure You Have Enough Money for Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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, I’m Dr. Friday, and I’m here live in studio. So if you want to join, the show you can at 615-737-9986, we’re gonna be talking a lot about some of the things that’s kind of coming up here.

Dr. Friday 0:51 We have, obviously, September 15th, which will be here before you know it, that’s when all of our business tax returns are going to be due. And then October 15, for all those that have waited to that last minute to file the paperwork. Keep in mind that does not extend the money you owe. But if you’ve paid all your taxes, and you’re just waiting, I know if we don’t finish the business tax returns, those individuals cannot file their personal tax returns.

Dr. Friday 1:19 So many of you had to wait for K-1’s or other documents. Once you get those then we have until October 15 to file those taxes. So very important to make sure you make those deadlines because otherwise, you’re going to get hit with failure to file on time penalties, which add up a lot faster than and failure to pay. So you know, if you’ve got questions, you need to figure out what we need to do, how you’re going to move forward.

Dr. Friday 1:46 And of course, we’re going to talk a little bit about people that have had some back issues. I mean, if you haven’t filed taxes, especially in the last couple of years, because in 20 and 21, we had quite a bit of free money, that may either be able to go back and pay for some of your tax issues or help you pay the tax years that you may have may not have a keep in mind, 2021 and 22 are the three years we’re able to get to get actual refunds from the IRS.

Dr. Friday 2:15 So if you don’t have, if you haven’t filed, it’s going to fall off. And before you know it when when 2023 comes on 2020 is going to drop off. And that was one of the stimulus checks they had to that year, adding up to somewhere between I think it was 600 and 1200 may have been $1,800, that you would have been able to get for free that year. And then 2021, I believe was 1400. But either way, you don’t want to leave that money on the table.

Dr. Friday 2:46 And so you might want to think about making sure that you’re filing all of your taxes. And there are some situations where maybe you haven’t filed taxes in 1015 20 years, and I have that happen more times than a lot of people think doesn’t mean we have to file all those years in some cases, we may not have to file more than six years to get you into compliance.

Dr. Friday Radio Show — July 29, 2023

Dr. Friday Burke — Wed, 02 Aug 2023 15:24:57 +0000

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:

Sales Tax Holiday in Tennessee Starting August 1, 2023

Dr. Friday’s Tips on Saving Money on Taxes

How Do I Avoid Paying Taxes On My Investment Account?

Should You Exclude a Home Sale From the Schedule D?

The Difference Between Gifting and Inheriting Money

How to Protect Your Assets From a Lawsuit or Creditors

What You Need To Know About Bonds and Taxes

How To Set Up An Irrevocable Trust

How To Make Sure You Have Enough Money for Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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 0:29 Good day, I’m Dr. Friday and the doctor is in the house, I will tell you it is a very warm day outside. So hopefully, you guys are all getting a chance to listen to me. While we are inside either an air conditioned vehicle or actually at your house, listen, I Heart Radio. But if you are out there having to put up with a lot of this weather then drink lots of water and keep yourself hydrated about the only thing I can share with you. But let’s talk a little bit about some of my favorite subjects first, you can join the show 615-737-9986.

Dr. Friday 1:11 So right now from Friday through Sunday, in Tennessee, we have the sales tax weekend we call it and it covers three different categories. You have school and art supplies. So any supplies, folders, pens, pencils, as long as that individual item is $100 or less. And you can’t do anything crazy like and say, Well, I want to buy this art kit. But this is one big kit and you want to say well, I’ll buy this and this and split it in half, and it’ll be under the $100. Now if it’s usually sold as a kit, that’s what they’re going to say. So anything under $100 per an item, which is great, especially for school supplies, paper supplies, things like that, that you might have. Even small business owners think about it, you can buy reams of paper, you can buy pens, papers, folders, whatever you might usually use might be a great weekend here in Tennessee and Williamson County, I believe were 9.75 Murray County 9.25. And in some of the other counties 9.5, no matter what we are at nine plus percent.

Dr. Friday 2:14 So that is a healthy savings on every dollar. The second one of course is clothing, right? You actually have your general apparel, anything less than $100 per item, that would be Jeans, shoes, you cannot split the shoe. So you can’t buy $200 with the shoes and put one on each, they’re not going to allow it. But anything else socks, dresses, etc, etc. Anything that you might have if your kid goes to school and has a dress code or uniform, again, buying the pants or the shirts that would qualify as long as each of those items are under $100. And again, this is only from yesterday, Friday till midnight on Sunday. So today is a busy day for a lot of people another one for small business owners as well as just individuals or people that have kids in college or nowadays all grades almost is the computer $1,500 or less.

Dr. Friday 3:07 If you want to buy a computer, now might be a time to think about it. They always talk about Black Fridays and all that. But nowadays we have black Friday’s goodness in May, June, July, they kind of took the

Dr. Friday Radio Show — July 15, 2023

Dr. Friday Burke — Thu, 20 Jul 2023 14:08:57 +0000

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:

Owing Money to the state of Tennessee Increased the Penalties to Almost 13%

How to Get Money Back From your Child’s Bank Account When the IRS Pulls It

What Is a Revocable Living Trust and How Does It Compare to an Income Tax Return?

If You’re a Business Owner, Take Seminars at the Tennessee Department of Revenue

When Is the Best Time to Start Making Your Quarterly Estimates?

Is Living In A State With No Income Tax Better Or Worse?

When Is the Best Time to Start Making Your Quarterly Estimates?

Qualified charitable deduction for those over 70.

Tax Responsibility for 2023 and the 30% Energy Tax Credit

The Tax Deadline Is October 18 for Individuals

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

Announcer 0:00 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 Good day. I’m Dr. Friday and the doctor is in the house on this beautiful Saturday afternoon. Let’s start out the day with a couple just reminders for some of you that may be still procrastinating a little bit on Monday, July 17 is the final day to to file and you have to do this by mail, we cannot file electronically your 2019 return.

Dr. Friday 0:54 So if you have not filed and if you would like to get your refund if you actually have one that would happen by July 17. Which of course is this coming Monday, I believe. So we have that notice. And then the second notice, I just wanted to make sure if you are also a person that lives in Rutherford County McNair Macon, and Haywood and Lewis, there’s about five counties out there cannon, your final deadline without extension is July 31, 2023, due to the storm damage that you were under federal disaster extensions.

Dr. Friday 1:32 So one to start the show out with those times and extensions, just so if you’re listening, and you still haven’t filed your 19, or you forgot to file your extension, and you happen to live in one of these other counties, about eight of them most common for my listening audience, Kenan Rutherford and making you You still have time and you won’t be late, which is the important part of that conversation.

Dr. Friday 1:57 So if you’ve got a question, you can join the show 615-737-9986 State of Tennessee has come out with their new interest rates. I think I told you guys last week, maybe a little bit about this. But they’re pretty ridiculous. If you owe money to the state of Tennessee, federal, you know, for sales tax or any of that, then, you know, they have increased that to almost 13%, I believe.

Dr. Friday 2:32 So that is huge. When you’re trying to make a deal you’re trying to get paid to get things paid off. I also found out an interesting thing. One thing I like about the people that do actually handle audits, and I know most of you guys are like no one likes audit as well, you know, it’s a job, it’s not something that anyone else, it’s just it’s a job that anyone has to do. And sooner or later someone has to be done.

Dr. Friday 2:55 And sooner or later, most of us will probably be audited by some format, if you’re in business, especially, but had a situation where a young man had filed reports be that sales tax busi

Dr. Friday Radio Show – July 8, 2023

Dr. Friday Burke — Thu, 13 Jul 2023 15:23:57 +0000

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:

What Are the Interest Rates In Tennessee?

Over $1.5 Billion in Tax Refunds That Have Not Been Claimed

Tax Rules For Buying a Vehicle For Work

Tennessee Residents Given Until July 31 to File Federal Tax Returns

How Do Capital Gains Work on Inheritance?

What Is the Fastest Way to Talk to the IRS?

Is Private School Tuition Tax Deductible?

The Tax Deadline Is October 18 for Individuals

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

Dr. Friday 0:00 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 0:25 Good day. I’m Dr. Friday and the doctor is in the house. It’s a wonderful Saturday out there. And many of us are trying to get some things together, especially still trying to work on tax returns. But right now we’re really working on a lot of cases, dealing with the IRS directly as soon as back taxes or making offering compromises.

Dr. Friday 0:50 Remember, I’m an enrolled agent licensed with the Internal Revenue Service do taxes and representation, which basically means guys, that’s all I do is Texas and representation. So if you are a person that has been dealing with IRS issues, if you’re thinking, I don’t know how I’m ever going to get the IRS off my back, or how, you know, where do I even start? Because a lot of times you’re gonna haven’t filed for 10, 15, 20 years, what does the IRS have expectation for you to do? Where do you stand? And that’s where we come in?

Dr. Friday 1:20 To be honest, there are so many different things that you need to understand. How far back do you really have to go? What is the IRS has expectation for you moving forward, as well as moving backwards? What do I pay? If I’ve got a little money? Should I be paying forward? Should I be paying backwards? These are really in it’s different. I’m not going to tell you there’s a perfect science that I could say right here on the radio, this is the step step steps you’re going to take. And that’s how it’s going to work. No, it doesn’t always work that way.

Dr. Friday 1:20 What I might suggest for one individual will be completely different for a different individual, depending on how many years we have to do. If there’s been assessments in past years. What’s the window of collections? You know, I mean, there’s said date. So what are those said dates? Had the clocks been stopped? The IRS really only has 10 years to collect. But if you haven’t started the clock, or if the IRS started for you by assessing you in those tax years, what does that really mean? Do we need to amend do we need to just get the taxes filed because we’re going to be doing an offer and compromise anyways.

Dr. Friday 1:48 So making the right information, and then making sure not only dealing with the past, but also dealing with the future, right? Because in the future, we have to stay current for five years, otherwise, the IRS will go back and they’ll say, “Sorry, Charlie, you didn’t keep your end of the deal. So we’re going to eliminate everything.” So if you made a deal that saves you hundreds of 1000s of dollars, and you didn’t keep your deal with them, they’re

Dr. Friday Radio Show – July 1, 2023

Dr. Friday Burke — Wed, 05 Jul 2023 14:52:32 +0000

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:

What You Need To Know About the American Families and Jobs Act

What Is the Small Jobs Act HR 3937?

Retirement and Selling Your Home

How To Buy Your Parents Home at a Fair Rate

What To Do If You Inherit Property

What Is the 1099 Reporting Threshold for 2023?

The Tax Deadline Is October 18 for Individuals

What Is the Required Minimum Distribution Table for 2023?

The Importance of Having a Disability Trust

What Is the Standard Deduction for Middle-Class Families?

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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 0:05 Good day. I’m Dr. Friday, and the doctor is in the house on this somewhat crazy weekend, one minute, it’s nice and warm and sunny in Spring Hill. Next thing you know, we’ve got thunderstorms and rain coming down. So be careful if you’re outside, it’s a bit of a crazy day for for enjoying the outside weather. But if you’re inside and you’re thinking, wow, what’s going on in the world of taxes. I know, I always seem to be thinking about that most of the time, because I’m working on individual tax returns or business ones.

Dr. Friday 0:57 And one of the things that came down during this last week was that House Republicans released a draft of three separate bills they’re trying to pass, it’s all called the American Families and Jobs Act. And it basically one is for helping to cut out certain things, the HR 3936, which is for working families, helping to negotiate better and to include some sort of job tax credits. And then you have the Small Jobs Act HR 3937, and then Build an America Act of 3938, trying to get businesses that bring their their assembly and things back to the United States to give them credits that will help increase those situations.

Dr. Friday 1:43 At this moment. The standard deduction, which is what we’re looking at, they’re trying to increase it and make it a guaranteed deduction bonus. For middle class families one of the big things it’s $2,000, for single 4000 for married couples, that would only begin and 24 and 25. But reduce the bonus amount taxpayers will modify justed income of to over 200,000, they love to use that one 200,000, they don’t realize how many people, it sounds great. But when you sell a piece of real estate or you get ready to retire and you’re transitioning, sometimes those numbers can get completely skewed and you don’t have what you need.

Dr. Friday 2:23 And then you end up paying tax on things that normally you might not think about having to deal with. But because of those situations, you have a lot more to deal with on that on that plane. So making sure that you know how much things are going to cost before you go in to cash out a pension or retirement plan of some sort, because you’re retiring. Also, you know, 401k is taking money out of them. There is usually unless you’re over the age 59 and a half, you get the 10% penalty plus 20% or 30% tax depending on the tax bracket you’re in. So it’s really, really important to encourage you too, just make sure you’re crunching those numbers. So if you’ve got a question, maybe today you̵

Dr. Friday Radio Show — June 3, 2023

Dr. Friday Burke — Thu, 08 Jun 2023 19:27:39 +0000

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:

Changes To Tax Laws for The 2023 Tax Year

How To Audit-Proof Your Tax Returns

Is My Cell Phone A Write-Off?

The Effective Tax Rate If You Don’t Pay Taxes On Your Pension?

The Trump Tax Cuts Expire At The End of 2025

Can I Still Get Medicare If I Retire Early?

How Much Will the US Debt Interest Payments Be in 2023?

How To Get an Extension to Pay Your Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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 0:31 Good day, I’m Dr. Friday, and the doctor is in the house on this beautiful, fairly warm outside Saturday. And it’s not the midst of taxes. But we do have some interesting conversation that’s going to go on about the new debt ceiling bill that the House and Biden have put through, I don’t think we’re going to find huge changes today.

Dr. Friday 0:56 But just looking at the numbers, when you think about the budget act of 2011, which was about $1.3 trillion, that they were supposed to spend over the next 10 years. And that went up to 1.6 and 2025 $1.61 trillion, roughly in 2025. And then every year after that it’s up about now our debt for the United States, just the dollar amount that we have to bring in just to pay the debt is 15.6% of our GDP. So it’s really, really important to understand that, you know, yes, we managed to keep everybody getting paid. But no resolution has actually come out of any of this. So we know when the GDP averaging is going to be up by the time this bill is supposedly it’s a 10 year bill, theoretically.

Dr. Friday 1:50 So we’re in 2023. So 2033, they’re saying that the it’s going to be 24.2% of the GDP, is what our debt is going to be 25% of the income brought into the United States, or what they bring from all of us is going to be close to what we’re just paying in debt. Yeah, that’s it. I mean, if we don’t catch what’s going on, guys, if we can’t change what we want to spend, and instead of encouraging people to use the systems that’s out there, instead of wanting the government to pay for everything that’s happening.

Dr. Friday 2:28 We’re going to become a point it’s going to happen, that your children or your grandchildren are going to have so much debt on them, that they’re no longer going to be in a capitalize situation, they’re not going to get out there and be able to work because it’s not going to be beneficial for them to go and make a living on their own because the government’s going to take all of their money.

Dr. Friday 2:51 Because there’s already what 50 to 60% of the United States right now receive some sort of benefits from the government. That’s ridiculous. I’m sorry. I mean, we can I come from a very big family, eight kids, 10 people in our family with our parents. And at no point in my life did I ever see anyone in my family take any coin, and it wasn’t that we didn’t have rough times I can remember my mom just taking fruit and vegetables and putting them on the table when there wasn’t a you know, Dad didn’t get paycheck for a few days, there was cereal for dinner, whatever it took

Dr. Friday Radio Show – May 20, 2023

Dr. Friday Burke — Tue, 23 May 2023 02:31:29 +0000

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:

Changes to tax laws for the 2023 tax year

Earned income credit increase for 2023

Annual exclusion for gifting increase for 2023

Lifetime estate exclusion increase for 2023

Adoption credit increase for 2023

Rollovers and conversions for 401k accounts

Capital gains rates for 2023

Student loan forgiveness and tax implications

Changes in tax brackets due to life changes such as divorce or marriage

Importance of staying current on taxes and making necessary adjustments

And much more!

Transcript

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

Dr. Friday Radio Show – May 13, 2023

Dr. Friday Burke — Thu, 18 May 2023 13:55:08 +0000

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:

Is the Employee Retention Credit Real or A Scam?

IRS Warns Taxpayers of New Fuel Tax Credit Scam

How to Avoid Getting Ripped Off By Your Tax Preparer

How do You Qualify for an Offer and Compromise?

What Happens If I Don't Know How Much I Owe in Taxes?

What Kind of Form is a 1099-K?

What Happens If I Can't Pay My Taxes on Time?

How To Get an Extension to Pay Your Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – May 6, 2023

Dr. Friday Burke — Wed, 10 May 2023 15:06:06 +0000

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:

How Do You Calculate Taxable Gains in Real Estate?

Will My Social Security be Taxed If I Continue to Work?

Can You Use Your Social Security Benefits While You’re Still Working?

How Old Do You Have to be to File a Tax Return?

What Is the Best Filing Status for Married People?

Can You Gift Money to People Without Paying Taxes?

How Do I Avoid Paying Taxes on Prize Winnings?

How Do You Know if You’re Using Your Car for Business or Personal Use?

What Happens If I Can't Pay My Taxes on Time?

How To Get an Extension to Pay Your Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – April 29, 2023

Dr. Friday Burke — Wed, 03 May 2023 19:23:26 +0000

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:

Do I Get a Refund If I Overpay Estimated Taxes?

How Capital Gains Tax on Real Estate Works

Why Do I Owe Taxes If My Job Takes My Taxes Out?

Do Single Taxpayers Pay More than Married Filing Jointly?

What to Do If You’re Behind on Your Taxes

The Importance of Tax Planning in the Middle of Tax Season

How to Get Straight With the IRS to Avoid Bankruptcy

What is The Qualified Charitable Distribution for 2023?

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – April 15, 2023

Dr. Friday Burke — Thu, 20 Apr 2023 14:20:31 +0000

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:

Application for Automatic Extension of Time: Form 4868

What Happens If I Don't Take My Minimum Required Distribution?

How to Find Out the Status of Your Tax Return

The Two Reasons Why Some People Get Tax Changes

Do I Need to Report Inheritance Money to IRS?

What Can I Expect from Tax Court?

What Happens If You Put Wrong Information on 1099?

What to Do If You Haven’t Filed a Tax Return in a Number of Years

The Best Way To Do Taxes as a Self-Employed

The Importance of Paying Quarterly Taxes

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – March 25, 2023

Dr. Friday Burke — Wed, 29 Mar 2023 12:48:01 +0000

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:

Cryptocurrency Is Not Included in Property Taxes

How Do I Track Crypto Transactions for Taxes?

How Long Can I Live in a Rental Property Without Tax Implications?

What You Need To Do if You're Behind on Taxes

The Importance of Having a Will and Power of an Attorney

What Happens If Your Employer Messes Up your Tax Withholding?

What To Do If Your Income and W-4 is Low

The Importance of Paying Quarterly Taxes

Who Qualifies for Employee Retention Tax Credit?

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – March 11, 2023

Dr. Friday Burke — Wed, 15 Mar 2023 23:46:55 +0000

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:

The Importance of Paying Quarterly Taxes

Inheriting s House That Is Paid Off

How Do You Show Proof of an Elder Dependent?

What Is a Homesale Worksheet?

Can I Deduct the Value of My Investment Property as a Donation on Taxes?

S Corporations Due Date March 15, 2023

Who Qualifies for Employee Retention Tax Credit?

The Importance of Accurate Tax Filing

When Must You File a Tax Extension?

What You Should Know About 1099-PATR

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – March 4, 2023

Dr. Friday Burke — Wed, 08 Mar 2023 11:14:24 +0000

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:

The Importance of Paying Quarterly Taxes

Do You Need to File a Tax Return Every Year?

How Do You Write Off a Bankrupt Company’s Stock in Taxes?

How to Calculate Your Capital Gains Tax

When Must You File an Extension?

IRS Postpones Implementation of $600 Form 1099-K

What Does IRS Require for Mileage Tracking?

CA Implements New Automatic Billing for Late Tax Returns

What You Should Know About 1099-PATR

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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,

Dr. Friday Radio Show – February 18, 2023

Dr. Friday Burke — Wed, 22 Feb 2023 17:36:28 +0000

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:

The Importance of Paying Quarterly Taxes

Do I Have to Pay Taxes on Critical Illness Insurance?

Do Pastors Have To Pay Social Security?

How to Choose the Right Type of Business Entity

How To Approach the Estate Tax Process

What Is the Age Limit for QCD?

The Difference Between Capital Gains and Long Term Capital Gains

How Much Will Charitable Donations Reduce Taxes?

What HVAC System Qualifies for Tax Credit?

How To Do Tax Preparation and Financial Planning The Right Way

And much more!

Transcript

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

Dr. Friday Radio Show – February 11, 2023

Dr. Friday Burke — Wed, 15 Feb 2023 21:42:19 +0000

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

Does a privately held company receive a 1099 form?

How much can charitable donations reduce taxes?

How will having a second job affect my taxes?

What type of HVAC system qualifies for a tax credit?

Do I need an appraisal for charitable donations?

Can I only claim capital gains on my tax return if I buy a house?

Does a revocable trust avoid capital gains tax?

Who receives a 1099 tax form?

How can I do tax preparation and financial planning correctly?

Listen to learn much more!

Transcript

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 0:31 Good day, I'm Dr. Friday and the doctor is in the house. And if you want to join the show, you can it is our favorite time of the year it is tax time, which means now instead of just talking about it, we are going to be doing it we are preparing taxes, goodness, every single day, this next few months. And so if you are working on your own taxes and you're needing some questions answered, you're not too sure how something's going to be filed.

Dr. Friday 0:57 Or if you're from one of those states that maybe got a little bit of tax relief, and now finding out that maybe that tax relief is going to become taxable income that is not going to affect Tennesseans. But if you're going to in from other states, you may have some of those situations like California and some of them, where if there was tax issue to you, you may find that some of that income given to you has now become possibly taxable income.

Dr. Friday 1:23 In fact, 70 million tax returns were already filed before the IRS say wait a second, Where's all this money? And where are we? Where are we going to tax it or not. So they're, they're still trying to figure out what they're going to do. So that being said, if you're filing taxes, and you have some questions, you can join us 615-737-9986, taking your calls, talking about all things taxes, maybe you've had a situation where you've sold real estate, maybe you have a situation where you're doing different things, you know, I mean, maybe you're actually having to deal with someone else's estate, maybe someone's passed away or anything like that.

Dr. Friday 2:06 So if you've got those questions, this is the show, you want to at least start the conversation. And then some of them you are going to just as a caveat, some of the information provided is more general, you may want to double check this information. In fact, I will say you definitely want to double check this information with your tax expert. And if you don't have one, you can always give us a call.

Dr. Friday 2:26 Or we can give you a referral to someone that might be able to be an expertise in that situation. But making sure that the information you get let's start with getting that information out. And then we can go from there. Again, it is tax season 2022. So if you haven't filed taxes and 21 or 2020, you can still file your 2022 on time, don't use that as an excuse that he hadn't file past taxes. So now you're not too sure how to file your current one. We are on the calendar year people. So even if you haven't filed back taxes, you could start with your 2022 and deal with other issues. All right, we've already got the phone lit up, which is so awesome. I love when you guys call. Let's go to Joey, and see if I can help him. Hey

Dr. Friday Radio Show – January 28, 2023

Dr. Friday Burke — Wed, 01 Feb 2023 20:36:10 +0000

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

How Much Will Charitable Donations Reduce Taxes?

How Many Miles Can You Write Off on Your Taxes?

How Do I Know If I Need to File a Federal Tax Return?

How Much of my Social Security Income is Taxable?

How Do You Fill Out a w9 Step by Step?

The Number One Thing You Need to Do If You Get Audited

Which Estate Was Exempt From Paying Taxes?

Do You Get A Tax Deduction for Owning a House?

What Percent of Donations Can You Claim?

How To Do Tax Preparation and Financial Planning The Right Way

and much more!

Transcript

Dr. Friday 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 Today, I'm Dr. Friday, and the doctor is in the house. It is all season we are off very busy preparing tax returns, and dealing with tax questions. And this is your opportunity because I will tell you trying to reach us during the week on the telephone, email or texting can take 24 to 48 hours to get a return.

Dr. Friday 0:48 But right now, on the radio, if you're able to get through the phone lines, you probably can get your question answered, at least get you in the right direction so that you can move forward with either filing your taxes, your questions can have to do with 2022. And some of the things that were happening in 2022. And then 2023, I do want to update anyone that may know about the contributions; they did not renew the 306 100 for the charitable contributions into 2023. We thought they might actually do that in the secured act.

Dr. Friday 1:18 So the standard deduction does not have an exception or an extra dollar amount of 300 or 600. And we'll have a bunch of other things that we are slowly finding out now for sure what's on tax returns, what was approved, what wasn't. I had an interesting gentleman call me the other day about the student loans and the fact that they did take it all the way through to the first of January of 2023 for not having to pay or not paying interest or anything.

Dr. Friday 1:49 Therefore, it is our understanding at least that if you have a refund, normally they keep it. You may have a refund coming in 2022, and you may be able to get that in your pocket like you did in 2021. All right, if you've got questions, 615-737-9986. And I believe Brian was first in Donaldson, so let's do it. Hey, Brian.

Caller 2:15 It's me. Thanks for taking my call. Thanks. I have just Social Security, PVC, and a little bit of bank interest. It all totals to 27 650. Do I need to file a federal tax?

Dr. Friday 2:31 So how much of the 27,650 is Social Security?

Caller 2:36 25.596

Dr. Friday 2:38 No. So you do not need to file taxes.

Caller 2:42 You are an angel again this year. Thank you.

Dr. Friday 2:45 Thank you, sweetie. All right. Let's talk to Kelvin in Lebanon.

Caller 2:51 Yes, I just moved from a house that had a lot of outbuildings, and I could put my storage up my construction equipment in them outbuildings. I don't have this at this next house at this other house. So I've had to get a rent a storage shed for my construction equipment. Is that something I can take off my taxes?

Dr. Friday 3:17 Well, are you operating as your own se

Dr. Friday Radio Show – January 21, 2023

Dr. Friday Burke — Wed, 25 Jan 2023 19:56:55 +0000

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

What Is the Tax Advantage of a Second Home?

Is Social Security Based on Total Income or Taxable Income?

Can You Take Money Out of An IRA and Put It Back Without Paying Taxes?

How to Maximize Your Tax Return

Can I Claim a New Home Purchase on my Taxes?

Dr. Friday’s Advice for Those Who Have Tax Problems

Correcting Any Mistakes on Your Taxes Before Filing

2022 tax filing season begins Jan. 24

1099-K Deadline Extended to January 31, 2023

How To Do Tax Preparation and Financial Planning The Right Way

and much more!

Transcript

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 0:25 This is the Dr. Friday show. Hopefully, we're hearing here. And we are ready to talk about my favorite subject taxes. If you would like to do something more on taxes, this is the show you want to talk about it's tax season, we are already starting taxes.

Dr. Friday 0:44 Remember, e file will not happen until the 24th, which is right around the corner here. It's the 21st A few more days we'll be able to E-file going directly through that. And so if you have started to receive your documents, don't rush to the fiddle finish line because I've already had a couple of people that have come in. And they thought all I have is a W-2, we can get this done, I can go ahead and get filed. And sure enough, on the two days, the people I'm talking about had something more that happened.

Dr. Friday 1:14 And it was enough to make it where we changed their taxes. The good news is we had an E filed them yet. So we did not have to physically amend the taxes. But we were able to get them corrected before we filed anything else. So again, if you have a question or you want to do something with your taxes now is the time that you can concentrate, make sure you have everything again, we can't file them, even if you go to h&r block or any of those either people they do not have a faster door than anyone else.

Dr. Friday 1:49 The difference is some of them have services where they'll give you advances on your estimated refund. I'm going to say this, be careful. I know some of you guys do this every year, and you don't care if you have to pay a couple extra $100. Because you're getting a couple of $1,000 some cases six $7,000.

Dr. Friday 2:09 And you rather pay that money today and walk out the door with 3500 in your pocket and wait for the difference in refunds. But you know, if for some reason they've already basically come down last year was the first year this year, they're going to do the same thing. They're going to slow refunds to individuals with earned income credit for children, they're trying to confirm that the person claiming the child is the proper parent. And therefore they already said those refunds aren't going to be coming out until almost late mid to late February.

Dr. Friday 2:36 So you may get the money today. But remember the interest on those loans, if for some reason they give you too much. It's not where it's going to be guess what the interest is, like 20 Some percent, that's ridiculous. Besides, if you've already paid a fee to get the money early, then you're going to pay a penalty for either getting money that you shouldn't have, or they're going to keep more of it. Because if it goes past

Dr. Friday Radio Show – January 14, 2023

Dr. Friday Burke — Wed, 18 Jan 2023 16:17:45 +0000

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

The Importance of Keeping Track of Mileage for Tax Purposes

2022 tax filing season begins Jan. 24

No Stimulus and Advanced Child Credits Makes Tax Season Simpler

1099-K Deadline Extended to January 31, 2023

How to File YOur Taxes Correctly

Is Converting Crypto the Same as Selling?

How Much in Taxes Do You Pay on a Flip House?

Understanding Clean Vehicle Credits for Electric Vehicles

How To Contact Dr. Friday’s Office

How To Do Tax Preparation and Financial Planning The Right Way

and much more!

Transcript

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 Good day. I'm Dr. Friday and the doctor is in the house. So I'm hoping you guys are all ready for an awesome tax season, we are going strong IRS will actually open E file officially when I know a lot of companies are preparing including ourselves. But we actually end up putting in my queue. But bottom line is January 24 is when you will be able to actually e file your tax returns. So if you are working on your own online or anything like that, you will be able to get an official acceptance from the IRS on January 24.

Dr. Friday 1:07 Do again expect if you are filing early, there's a couple of things they're warning people one, make sure you don't miss any information this year is going to be a little simpler, and a couple of different reasons. One, we don't have all the stimulus and the advanced child credits, that's gonna get back to a bit of normal, but the child credit of course, is back down as well to the 2000 instead of the 35 or $3,000, depending on the age of your children.

Dr. Friday 1:33 So some of you that may had a large refund in the last year or two due to the stimulus and or child, additional credits may find your refund to be less than what you had in the past couple of years. You may also find that the 1099k, they extended that to 2023. So many of you that were worried about eBay and having those shops and different things like that, you may find that you're not going to receive that 1099k That was part of one of the adjustments they made under the secure act. And they extended that out to to the next year. So that will be something we will be still having to face in 2023.

Dr. Friday 2:18 But they did extend it out to us. So it might be a benefit as well, for many people that just weren't sure exactly how that was going to work. We are going to make sure that if you have any stock sales, if you sold any real estate, if you started a business, if you've changed the business, you close the business, just make sure you put a little thought because a lot of times people think, Okay, I've only got my W 2, but sometimes other things happen throughout the year.

Dr. Friday 2:47 And if you don't actually have that information or you know, don't file your taxes, I know it always looks like you're gonna get a great refund, therefore, you know, I'm going to file it so I can get my money fast. But you know, there is penalties assessed when you don't file the taxes correctly. Most of the time, simple things like stock sales forgot to put in my portfolio. And keep in mind if you are a cryptocurrency individual that is dealing with selling cryptocurrency, and that is not just selling it back to US dollars. But maybe you went from Bitcoin to lithium to somethi

Dr. Friday Radio Show – December 17, 2022

Dr. Friday Burke — Fri, 23 Dec 2022 13:27:28 +0000

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

Dr. Friday's Tips On How To Save Tax Money

What Is the Required Minimum Distribution for 2022?

Should I Convert My 401k to a Roth 401k?

What You Need to Know About the New Tax Law

Understanding Clean Vehicle Credits for Electric Vehicles

Do You Need to Pay Taxes on Your Social Security checks?

How To Contact Dr. Friday’s Office

How Do I Make a Mileage Log for Taxes?

How To Do Tax Preparation and Financial Planning The Right Way

and much more!

Transcript

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 0:29 Good day. I'm Dr. Friday and the doctor is in the house at least I'm here somewhere at the moment. So if you want to join the show, you can 615-737-9986. And then we want to talk a little bit about you know, tax season. Christmas is upon us and then guess what happens? Then we start having a lot of fun, due date will be April the 17th this year. So a little later than some other years. Sometimes it's April 15, as we all know, but when it comes down to getting the the important things in life, we want to make sure that we are covering all of that. And you have all the information.

Dr. Friday 1:18 So if you're thinking about your taxes, keep in mind, anything you do in your taxes is on a calendar year with the exception of a few small things like making your IRA contribution or doing something along those lines. But other than that most of the time, your other stuff is all going to be on the calendar year. So if you want to give to charity, you need to you need to give to charity now before December 31. And remember up to cash up to $600, a married couple or $300 a single individual, you get to claim above the standard deduction that does not include giving clothing to Goodwill or any of those other situations, this has to be cash, if you're going to do it that way. So again, if you're going to want to take that as a tax deduction, you need to do it in the calendar year.

Dr. Friday 2:16 So if you have questions on that, or if you want to, maybe you've sold some real estate inheritance is usually a very confusing or a very subject that many of us aren't always sure is it going to be taxable? Is it not going to be taxable? Whatever the situation might be, it's still going to come in. So if you're you know, now's the time, because again, January 15, you should be taking and making your first or your fourth if you're self employed, and you have to do quarterly is your fourth quarter contribution. If you are a single I mean if you are have a single entity or a single situation like you sold some land or something like that, my suggestion is always to make at least by January 15, a quarterly estimate, so they don't get you for not paying proper quarterly. And keep in mind the quarterly law doesn't it? People are always thinking, "Well, I can send something in." The way the IRS looks at it for packs a penalty is pretty straightforward to be quite honest. Whatever your taxes do in the year before, then you basically have...

Dr. Friday 3:29 Let's say you owe $10,000, then you would pay you know what $2,500 every quarter equally, even if your income i

Dr. Friday Radio Show – December 10, 2022

Dr. Friday Burke — Wed, 14 Dec 2022 21:04:13 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this special Christmas episode, we have tax expert Dr. Friday and electrical contractor, Dr. Electric answer caller's tax and electrical questions, and talk over the following topics:

How Do I Make a Mileage Log for Taxes?

How To Do Tax Preparation and Financial Planning The Right Way

Do Non-Residents Need to File a Tax Return?

How Much Do You Have to Sell to Get a 1099-K?

Needing Help With Old I-T-E EQ Low Center Panel

Can I Write Off My Car For My Business?

How Often Should Fuse Boxes be Replaced?

and much more!

Transcript

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 0:29 Good day, I'm Dr. Friday and this is our Christmas show. We have Dr. Electric still on here. So I want to go quickly because Trey was the winner of the $50 Olive Garden/Longhorn or other things Tray. Thanks for holding through that switch of shows. We appreciate you listening. So they've got your information. So thank you again and Merry Christmas.

Caller 0:55 Merry Christmas to you.

Dr. Friday 0:58 All right. So, we've got an electrical question from Sherry. Sherry, why don't you go ahead and come on first. Hey, Sherry. You got a question for Dr. Electric?

Caller 1:14 I do. A couple of quick things. All right. So the first question is, my husband and I are in charge of basically the maintenance type stuff at the church building where we attend. And we have an exterior outlet, a exterior light, and then an interior light and a little airlock type room before you go into the fellowship hall that has suddenly stopped working. There's no breaker tripped or anything obvious going on. So I was wondering if you might have any ideas as to what we might be looking at there.

Dr. Electric 1:53 If you don't see a breaker trip at all, and sometimes just reset them to be safe, but look for the closest thing working next to it. Sometimes it's like dot to dots. A wire, you know, you might have three things not working. But one of the hallways right there might be working, the wire could have came off of it what feeds. Like if you picture in your mind, five plugs in a row and a wire goes from one to two to three to four to five and number. The wire comes up at number two, one and two will work but three, four or five won't. So that's how we'll check. We'll we'll pull out a couple of things.

Dr. Friday 2:35 He's still talking even when we can't hear him Sherry. Okay, well, I think he's basically trying to say to a Sherry is that you need to figure out where the last one's working. And then open up that one and find out if something might be disconnected inside the plug. I'm guessing, I'm not an electrical person.

Dr. Friday 2:56 Yeah, we can hear you. But then you went out now we can hear you again.

Dr. Electric 3:00 I'm in the Ozarks. Look for the nearest thing working.

Dr. Friday 3:06 Okay. That can be inside and outside? or just most likely, wires run inside.

Caller 3:16 Nothing else outside right there. The next closest thing would be an outlet that's just inside the door.

Dr. Friday 3:23 Okay, so what wo

Dr. Friday Radio Show – December 3, 2022

Dr. Friday Burke — Wed, 07 Dec 2022 13:05:48 +0000

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

What Taxpayers Need to Know About 2022 Estimated Tax Payments

How to Get Your $300 or $600 Charitable Deduction

Are Tax Credits and Tax Breaks the Same?

Biden's Student Loan Forgiveness Plan

How To Safely Negotiate With a Credit Card Company

Is the IRS Hiring 85,000 Employees?

Is It Time To Start Thinking about Tax Savings?

How To Do Tax Preparation and Financial Planning The Right Way

and much more!

Transcript

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 0:30 Good day, it's Dr. Friday and the doctor is in the house. What a wonderful Saturday. It's a little overcast out there. I know. But it's still a nice day out there, at least. So if you have questions, maybe you're starting to think about It's almost the end of the year. So if you have any kind of changes that you're thinking Roth conversions, selling something, possibly maximizing a 401 K, now is the time to be doing that, because we only have a few more weeks of this year. And anything that happens in 2023 pretty much stays in 2023.

Dr. Friday 1:06 So if they're thinking about making a change or altering these next couple of weeks will be the weeks that you want to do that if you want to join the show, you can 615-737-9986. And for many of you that have been listening for a long time we've been on here, I think 1314 years, we have our big Christmas show next weekend. So as many people that have listened, many of my clients actually have when one little gift cards, we give away 1000s of dollars and two hours Doctor electric and the Dr. Friday show merges for that one weekend. And we we have a great time thanking all of our listeners for listening all year, and using all services.

Dr. Friday 1:54 So again, that will be next Saturday starting at one o'clock on the Dr. Electric show. So that's gonna be a lot of fun. And, again, if you want to join the show, if you've got questions about taxes, or maybe you've inherited or you've sold something, and you just want to make sure you've estimated your taxes, keep in mind, if you have sold a piece of property, or you have made a large profit on a stock or anything else, the IRS expects within 90 days an estimate to be made either 110% of what you owe the year before in total taxes, or the amount due that you would estimate do up to 100%. Otherwise, you could look at penalties.

Dr. Friday 2:39 So again, if you're at that point, and you're like oh my gosh, because January 15 is our final estimate for the year of 2022. And so we want to make sure that you have made all the proper estimates and that you are making sure that the money has been passed, because the worst thing would do is if you've sold something you already have a client come in the other last Wednesday, I think it was and they had sold an $800,000 piece of property and their basis was a couple 100. So they're looking at roughly 80 to $90,000 worth of estimated taxes needing to be paid in.

Dr. Friday 3:16 But looking at their prior year, we able to send in a smaller amount, not a whole bunch. But we did send in less than what we know could be due but we want to send that in again. So that the IRS doesn't hit us with failure to file or proper estimated taxes. Because

Dr. Friday Radio Show – November 19, 2022

Dr. Friday Burke — Wed, 23 Nov 2022 16:19:47 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Dr. Friday’s Question: Is It Time To Start Thinking about Tax Savings?

When Should I Sell My Home?

The Impostance Of Having An Exit Plan For Your Business

How To Do Tax Preparation and Financial Planning The Right Way.Is There Any Advantage to Transferring Annuities and IRAs Into Roth IRA?

The Best Way to Give to Charity and Save on Taxes

Give a Gift to Your Kids and Grandchildren

Can I Buy Another Rental Property and Not Have High Capital Gains?

Can I File Taxes in 2022 If I Didn't Work?

Should We File for Married Filing Jointly or Separately?

Penalties to Keep In Mind When Married Filing Separate

Is There a Limit on Charitable Donations for 2022?

and much more!

Transcript

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 0:28 Good day, this is Dr. Friday, and you're listening to the Dr. Friday show. And we are live here in studio having a little technical difficulty. Usually it's mine, because let's be honest, I'm not necessarily a technical person in this world people. So we can go ahead and see if you have questions, you can give us a call at 615-737-9986 going to be taking your calls in the video. So you may see if the Zoom is working just to see if we're gonna be able to do it that way or not. We're good. Either way, I know you're working multitasking there. So let you do your thing. There's not been a whole bunch of changes, a lot of conversation out there about things going on as far as the 2022 tax changes that could be coming down the line. But I think what most people need to be really thinking about at this point, we've got down to about 3035 days to the end of the year.

Dr. Friday 1:24 And what we need to be thinking about totally is Is it time for us to think about tax savings, right? If you're on RMDs, have you done your qualified charitable deduction, or taking your RMD through that format? If you've purchased or sold homes, this is something we can do that direction as well. You know, do we need to not not RMBs? What can we do something as far as a 1031 exchange? Or do we need to think about taxes on our primary homes? We have all kinds of questions that's gonna go that direction, along with if you had inheritance, how much taxes are you going to be looking at? or whose taxes are you looking at? You know, when and where is that going to come into play for you. And because you know, I have tax time is great, it's a perfect time to really get with your tax person.

Dr. Friday 2:14 But if you have the ability to get with that person earlier, always a better thing to do. Because if we can do that, then we can deal with the situation of how to make things more user and let's be honest, we're very busy at tax time. If you can talk to someone before tax time starts, then you'll be able to get somewhere and do some of the things you need to do. I'm not sure if I can take these kinds of videos only because I'm not sure if I can actually hear anything on here. So I just feel like I'm talking to myself. But if I can, that's great.

Dr. Friday 2:46 So I guess we can check and see if the caller one which is going to be let's see if I can hear anything. Hey, Roy, can you hear me?

Caller 2:55 Yes, ma'am. I hear you fine.

Dr. Friday 2:57

Dr. Friday Radio Show – November 12, 2022

Dr. Friday Burke — Wed, 16 Nov 2022 16:15:33 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Can Students in College and Grad School Put Their Loans on Tax Return?

Is There Any Advantage to Transferring Annuities and IRAs Into Roth IRA?

The Best Way to Give to Charity and Save on Taxes

Dr. Friday’s Tip of the Day: Give a Gift to Your Kids and Grandchildren

Can I Buy Another Rental Property and Not Have a 41% Capital Gain?

Can I File Taxes in 2022 If I Didn't Work?

Should We File for Married Filing Jointly or Separately?

Penalties to Keep In Mind When Married Filing Separate

Is There a Limit on Charitable Donations for 2022?

and much more!

Transcript

Dr. Friday 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 0:30 G'day, I'm Dr. Friday, and we are here live in the studio. And it is a nasty cold day outside. Great day for us to all be at the radio listening and talking about my favorite subject, taxes, or how can we put more money in our pocket? Oh, we're going to have some other things that we're going to be needed to deal with? Maybe looking at some of the tax things that may be expiring, but most of that I'll be quite honest, isn't going to happen until 2025. But we will be able to move forward and see what we have as far as other credits. And if maybe some people that maybe think get health insurance found out maybe there is some health insurance still out there in the marketplace. But you just have to figure out which way or the best way to deal with those situations.

Dr. Friday 1:17 So let's go ahead and hit Joe. Let's hit Joe, while we're on the line here. Always love my callers. First we'll get back to my conversation. Hey, Joe, can you hear me?

Caller 1:27 Yes, ma'am. Okay, well, my wife and I had a trust. And we still have a trust. But unfortunately, she passed away back in April. And I'm seeing if I can go through the stocks that are in the trust and increase the value for tax purposes. At one half of what the value was at the date of her death.

Dr. Friday 1:58 Well, was this an A B trust? Or was it? I mean, normally...

Caller 2:03 Its a family revocable trust.

Dr. Friday 2:09 Okay, so the answer is at the time of her passing, everything basically went to you, but they didn't trust, correct?

Caller 2:16 That's correct. So you into trouble. I'm sorry, the trust continues other than the fact that she is no longer a trustee. Of course, I'm still a trustee of the trust.

Dr. Friday 2:32 Right, but this is a revocable, which means that you're able to take stocks in and out or any assets, you still have full control of the stocks in there, correct?

Caller 2:43 That's correct.

Dr. Friday 2:44 Right. So in that situation, you would have a half up, step up and basis if it was held, normally, and most stocks, I mean, you are husband and wife, but if it was in her name alone, you would have a full step up. If it was in joint tenancy, then you would have a half step up.

Caller 3:02 Great. Okay. Well, that's what I thought I just was just trying to double check on that. Thank you for your help.

Dr. Friday 3:09 Oh, yes, sir. Thanks. All right, let's hit Jamie in Winchester. Hey, Jamie.

Caller 3:18

Dr. Friday Radio Show – November 5, 2022

Dr. Friday Burke — Wed, 09 Nov 2022 22:20:15 +0000

Welcome to the Dr. Friday Radio Show! In this episode, host John Haggard and tax expert Dr. Friday take on the latest tax updates, answer caller's questions, and talk over the following topics:

Can You File Taxes in 2022 If You Didn't Work?

Are There Increased Child Tax Credits for 2022?

Should We File for Married Filing Jointly or Separately?

Penalties to Keep In Mind When Married Filing Separate

Do You Still Have to Pay Taxes After You Retire?

Is There a Limit on Charitable Donations for 2022?

Can I Actually Do M Taxes for Free?

Is PPP Loans still Available 2022?

The Enhanced Employee Retention Tax Credit

and much more!

Transcript

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.

John Haggard 0:28 And live from America's Music City it may be Saturday where you are but it's Friday all day every day all the time with the tax doctor the tax lady, the doctor of accounting known in these parts of America ladies and gentlemen, right here she is the Dr. Friday. Hey, how are you doing there, Dr. Friday? You ready?

Dr. Friday 0:50 I am ready. I am ready to go. Let me tell you it's been a crazy month for me but I am ready.

John Haggard 0:58 I know you are because, boy, we are at T-minus about, I'm gonna guess. What about seven weeks? And that's the end of 2022. And you're an all comes, right? Like an avalanche to you.

Dr. Friday 1:12 Absolutely. We are getting geared up as we speak for the next season. It's like, you know, one prepares for Black Friday and Christmas. I prepare for tax season.

John Haggard 1:21 Absolutely you do. And I guess you probably may be up about 3:30 or 4 o'clock in the morning to do those calisthenics workout, get ready to go and boom, bam, here we are. It's been a quick, quick year. And I think the very first thing people want to know right now at this very moment is do we have more clarity yet on what's going to happen to us for 2022 tax returns? Has Joe Biden or Congress or anybody done anything that's going to hurt us?

Dr. Friday 1:54 Well, it's a great question. And we don't have all the clarity that we'd want to have. We do know some of the tax laws that have come down, that have made but most of those haven't really affected really more of the concern that most of us people in the tax businesses having is still getting resolution for issues that came up in 2019 and 2020 and also 2021.

Dr. Friday 2:17 We still have clients that haven't received stimulus checks, we still have clients that have mailed-in tax returns that haven't been processed for the year of 20 or 21. So we're really just hoping that the IRS is going to get caught up so that we can actually start a tax year without having to be dealing with two or three other years at the same time. Because many times people hold off in filing because they don't have resolution for the prior year. And you really can't do that in some cases. So now we have multiple years with issues on the same client.

John Haggard 2:51 Now is this the worst it's ever been that far back? And you know, no sort of acknowledgment or what's going on?

Dr. Friday 2:58 Well, I mean, I've been doing this 25 years. And in my record, this is the worst we've had as far as communication and resolution. We're just not getting, the poor tax advocate office, at least for my office. I mean, we probably have four to five cases open. And in the hi

Dr. Friday Radio Show – October 22, 2022

Dr. Friday Burke — Tue, 25 Oct 2022 14:08:23 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Can I Purchase the House I’m Living In Before I Sell My Primary Home?

How to Know If It’s Better to Cash Out Part of Your Bonds?

Can RMD Be Used for Charitable Contributions?

When Did IRS Increase Standard Deduction?

What Are the New Tax Brackets for 2023?

How Do I File a Tax Return When I Have No Income?

Do I Pay Taxes on Social Security Disability Income?

What Is the New Tax Code for 2022?

The Minimum Franchise Tax in Tennessee?

and much more!

Transcript

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 0:25 Good day. I'm Dr. Friday, and the doctor is in the house. It's a beautiful Saturday we're having outside. And we're going to talk about a couple of things. Many of you guys probably heard some of it, but let's see how it's going to apply. We don't always get a lot of good news, some people are a little confused about the tax changes the IRS came up with, it's for the 2023 tax updates. We'll be going into those as we all know, inflation rates for 2022 had some major big changes.

Dr. Friday 0:58 And finally, someone seems to be making some adjustments, at least in the tax code to help offset some of this information. So married couple filing jointly in the year of 2023, you'll have a 27.7 100 standard deduction, that would be up from our 2022 numbers that we'll be filing very soon, of 259 so that's a 7.1 increase. So we're going to have that across the board. Standard deductions have went up head of household, individual dependent care credits, and individual standard deductions for individuals have went up, versus $400.

Dr. Friday 1:36 Additional which these are big, big jumps. So you know, if you're, if you're looking to do some tax planning, maybe you've thought about doing some small conversions, I would never suggest I'm not a financial planner. But if you've been thinking about doing a few things, 2023 may be the year to look at some of those, they also increase the tax margins. So the 10%, the 12, the 22, all of those have had some fairly decent adjustments, you know, in the 22%, for a single bracket has increased more than $5,000.

Dr. Friday 2:12 So what you would be paying tax in 2022, you could earn 5000, more in 2023, and stay in the same exact tax bracket. So these are the kinds of things you need to know if you're going to do some tax planning. And also just make sure that you're following and understanding one of the big ones, of course, in 2023, we we still have guys the 0% capital gains rates for everybody. And so if you add the standard deduction plus the 0%, capital gains rates, you would be in the ballpark of about $57,000 for a single person. That's going to be pretty much double for a married person.

Dr. Friday 2:51 And so that would be that if you take your ordinary income, and then you turn around and you add the capital gains along with that, and if it stays as a married person under $57,000 on long term capital gains, you would pay zero tax on that capital gains. Same thing for a married couple if you take all of your money, and then you add also in the long term capital gains to it, you might find that it's all adds up to a little less than $108,000 or there abouts, you would basically have a 0% capital gains.

Dr. Friday 3:28 Again, in doing tax

Dr. Friday Radio Show – October 8, 2022

Dr. Friday Burke — Wed, 12 Oct 2022 18:55:04 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Dr. Friday’s Advice for People Who Have a Lien

Do I Pay Taxes on Social Security Disability Income?

Dr. Friday’s Explains Quarterly Estimated Payments.

How Do I Pay Back Deferred Social Security tax?

What Is the New Tax Code for 2022?

October 15, 2022, Is the Tax Deadline for Individuals for 2021

Do Day Traders Pay Capital Gains Tax?

What You Need To Know About IRS Workers

Married Filing Separately Explained

and much more!

Transcript

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.

John Haggard 0:28 Live from America's Music City. It may be Saturday where you are, but it's Friday, all day, every day all the time with the tax doctor, the tax lady, the doctor of accounting known in these parts of America including Nashville, Tennessee, the Dr. Friday and right there she is. How are you Dr. Friday?

Dr. Friday 0:51 That is a heck of an introduction. I don't get that kind of introductions when I started my show. You just said something like, "the doctors in the house, start calling!" You know, not all that. You're always so much better at that. I love it, John, love it.

John Haggard 1:05 It's so much fun to bring the truth to the radio audience. I gotta tell you. And speaking of truth, oh, my goodness, right here the midterms coming up in what is it a couple of weeks or three weeks or something like that. But there's also another truth, Dr. Friday, and we know that you have it or what's available. I think the big thing on people's minds with the way the economy is the you know, we're in a recession, it's just a question of how bad is it?

John Haggard 1:33 You know, it's either depression for some people, which is really bad or a recession for some that is not quite as bad. But here's the deal, I think what we're all wondering is what is going to happen if you have any forecast on this or sort of, you know, you're in the business. So this is what you live in.

John Haggard 1:52 Is there any type of projection what's going to happen over all to the tax code, how we're going to get hurt, or, you know, what's in any, any direction there you can give us at this point?

Dr. Friday 2:05 Well, I think there's a couple of things we have to keep our eyes open for. As we know, in the Inflation Reduction Act, they did do a few small tax changes. But in the last two years, there's been quite a few tax acts that have come in effect that has a small amount of change. But I think the biggest was in the last one was the 85,000 new employees to the Internal Revenue Service, depending on which way you heard it, armed and ready to come collect.

Dr. Friday 2:35 But to be honest with you, A, I don't I don't see that as a major issue or problem. What I do see is in the last, I mean, I've been doing this 20 plus years, let's just do that 20 plus years. And you know, many times in the earlier days, we didn't have a problem reaching the IRS, we had resolution in the same day. We were able to reach a revenue person and find out about collections or deals. The last two to three years, we've waited on hold for three, four or five hours get hung up on couldn't get their computers to work, but there's just not been any way of really getting resolution.

Dr. Friday 3:12 And that's

Dr. Friday Radio Show – October 1, 2022

Dr. Friday Burke — Tue, 04 Oct 2022 11:37:08 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

How much is taxed when you inherit money?

October 15, 2022, Is the Tax Deadline for Individuals for 2021

What Is Considered a Real Estate Professional for Tax Purposes?

What Is an IRS Paper Audit?

Is House Flipping Considered a Business?

Do You Need a Will or Trust?

Plan In Advance To Avoid Probate

Are Personal Injury Settlements Taxable in the US?

Biden Is Hiring 87000 New IRS Agents and What You Need To Know

and much more!

Transcript

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 0:29 Good day, I'm Dr. Friday and the doctor is in the house on this absolutely gorgeous Saturday, I will wish to tell you I can be outside all day, which I would love. But we are still in the midst of the final tax period. So if you haven't filed your 2021 taxes, obviously you have until the 17th of October, that's assuming that you filed an extension, if you did not file an extension, well, you're late, you need to file it now versus never. Because you know there was a and unfortunately, we were really busy because anyone that hadn't filed 19 and 20. In fact, some of you have gotten some love letters for the years of 19 and 20.

Dr. Friday 1:09 And maybe you accidentally or maybe for some reason you filed a tax return late in one of those two years, the IRS waived late filing fees as long as you had filed as of yesterday for 19 and 20. We tried to get that out as much as possible. And we did get a managed to get a few more returns in on time trying to get people back into that particular situation. So if you have a question, you can join the show at 615-737-9986. And let's go ahead and hit the phones. We got dawn in my town Spring Hill. Hey, Don, Hi, how are you? I am good. What can I do for you, sweetie?

Caller 1:48 I am getting watches that say my wife is getting an inheritance. Father and all passed away. And what we want to do is pay off a house. Both of us are on social security. And I have a pension. And I'm just wondering, what's the tax? Or how does that tax even work?

Dr. Friday 2:12 Well, there's a couple of different ways. So if she inherited a home, or cash out of the bank, there is no tax unless as long as you sell the property within the 90 days are there about from the time that person passed away. So the basis is as of the date of passing real estate's kind of coming down for a couple of years there.

Dr. Friday 2:33 I mean, to be honest, people were passing away in the home was selling for more than they actually had it valued at at that time. But so if it's that if she inherits an IRA, or a pension or 401k, any of those, those will be taxed at the rates of ordinary income that you guys might be at, which obviously is a lower income bracket at this point in life, which is always nice to have. But so that's you know, normally people either have stocks, you'll get a step up and basis on a stock. So whatever the stock was worth at the day of passing, that will be your basis.

Dr. Friday 3:08 And if you sell it, there could be a slight gain or loss depending on the situation home same thing basically going to break even the only ones we really worry about are not worried, but we have to manage more our 401 K's mutual funds, things that may have taxable dollars still in them that we'l

Dr. Friday Radio Show – September 17, 2022

Dr. Friday Burke — Wed, 21 Sep 2022 19:50:06 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

October 15, 2022, Is the Tax Deadline for Individuals for 2021

IRS Encourages Using E-File and Fling Before the Payment Deadline of August 31, 2022

Biden Is Hiring 87000 New IRS Agents and What You Need To Know

How Do I Know What I Can Write-Off Business Expenses?

Which Entity Type Is Best for Your Small Business?

Sub S Corporation, LLC Partnership, or 1065, due September 15, 2022

Dr. Friday's Tips on Contacting the IRS

How To Find Out How Much You Owe To the IRS

and much more!

Transcript

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 Good day Dr. Friday and the doctor is in the house. So if you have some tax questions, and remember, October 15 final filing for anyone that has not filed their 2021 with a legitimate extension, if you haven't filed, then you don't have an extension? Well, you're late, not much we can do about that.

Dr. Friday 0:46 So finally, more earlier, faster is always better. You know, I was doing some reviewing of corporate tax returns this last day will do with an extension. Again, I always say with extension, because if you didn't file an extension, you're late on any of the tax returns. But if you filed an extension, your 1065 was due on the 15th, which was last Thursday. And in reviewing a couple of them, I noticed a few people hadn't been filing, some people are now required to file K 2's and K 3's.

Dr. Friday 1:16 And what you're going to find that if one of it is the partner share of income deductible credits, some is for international won't apply to many, many people. But some of it has to do with examination of extension and failure to if you don't file it, you can get failure to file penalties even if you file the tax return on time.

Dr. Friday 1:39 So you need to make sure if you're a Sub S or a partnership, and beginning in 2020, partnerships, returns should also include the K 2 which is the partners distribute distribution shares, international and K 3 for shares, deductions and credits, etc. For international some, again, this doesn't apply to everyone. But it does apply to many people, they don't always think about what they're you know what's going on. And so it's very important that you make sure that whoever is doing your corporate tax returns.

Dr. Friday 2:09 I'm sure many people have very, very good edits. But I was like I said, I had a situation that we had to rush to do something on it because the K 2 was not attached. And it should have been. Also remember, if you're prepared that we also have to include bases with all 1065 and 1120. SS, again, because if you have a loss, and you continuously take the loss, you may not be entitled to it based on the basis that you have in that company.

Dr. Friday 2:39 So making sure that you understand how that works. Because I had a situation with people that came in and they had someone filed the taxes and then the IRS came back and had sent them some love letters and some changes. And next thing you know, they're sitting there going, "Wait a second, why are we getting in trouble because we didn't file these taxes this guy did." And the fact you have to remember, you know, you get a good reputable tax person that will stand behind their work.

Dr. Friday 3:06 And I've always tried

Dr. Friday Radio Show – September 10, 2022

Dr. Friday Burke — Wed, 14 Sep 2022 12:00:14 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Sub S Corporation, LLC Partnership, or 1065, due September 15, 2022

Can I File Another Tax Extension?

October 15, 2022 Is the Tax Deadline for Individuals for 2021

Is There Any Advantage to Paying Cash Versus Getting Student Loans

What Is The Corporate Tax Rate in 2022

Dr. Friday's Tips on Contacting the IRS

The Biden-Harris Administration's Student Debt Relief Plan

How To Find Out How Much You Owe To the IRS

and much more!

Transcript

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 0:27 Good day, I'm Dr. Friday, and I'm here live. So if you've got questions, I know there's a lot of things happening. The biggest thing is if you have a Sub S Corporation or a LLC partnership or a 1065, then you know that tax day is 9/15, assuming you filed an extension, which is why it's really crazy around here at my office at the moment, only have about five days left to finish up a number of tax returns.

Dr. Friday 0:32 So if you have not filed your taxes for those types of entities, remember they are due on the 15th of September, there are no more extensions. Often though, other questions I've been getting this week, "Can I file another extension?" Nope, no more extensions out there for you guys, you have to file those tax returns, or you will be filing for late fees.

Dr. Friday 1:16 And those can be pretty hefty $300 per month for each shareholder up to I think it's like $1,000 or something per shareholder. So you can end up with multiple 1000s of dollars very quickly. I had a guy that had 60 shareholders and they had not filed on time. And you can imagine it was a very hefty building. Goodness, it was a first time offense, and we were able to get it waived.

Dr. Friday 1:38 But my point being you rather do it on the right time at the right place versus waiting for something like that to happen. So if you want to join the show, if you've got a question about filing your taxes, because we all know October 15 is the deadline for individuals. This is for the tax year of 2021.

Dr. Friday 1:56 And if you haven't filed like myself, and you've got PTO taxes that are due, then you need to go ahead and start making sure you've got that information. If you want to join the show, you've got a question maybe one of the reasons you haven't filed this because some things come up like sale of real estate and inheritance.

Dr. Friday 2:10 Those are often some of the big ones this last year, or maybe change of jobs or something along that line and you're not sure how to handle it, I can at least head you in the right direction. You can reach us here in the studio at 615-737-9986. The number here in the studio for the show. And you can you don't have to leave your name or number anything special you can call yourself Joe Schmo as far as I'm concerned, just ask your question.

Dr. Friday 2:39 And hopefully, the whole purpose of doing the show for the last 13 plus years is really just to get people on the right track to realize there are other ways sometimes in doing things. And I guess today's show I want to bring in I had a really unusual situation where, you know, the fact is, I've been doing taxes for 25 years, some of you guys have been with me just as long and totally appreciate that.

Dr. Friday Radio Show – August 27, 2022

Dr. Friday Burke — Thu, 01 Sep 2022 23:32:51 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

What You Need To Know About Inflation Reduction Act

What Is The Corporate Tax Rate in 2022

What Are The Chances of Getting Audited In 2022?

Which EVs Qualify for the New Electric Vehicle Tax Credit?

Dr. Friday's Tips on Contacting the IRS

The Biden-Harris Administration's Student Debt Relief Plan

How To Make a Tax Deal With IRS

How To Find Out How Much You Owe To the IRS

Sub S Corporation Tax Deadline September 15, 2022

Individuals That Filed Extensions Deadline October 15, 2022

and much more!

Transcript

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 0:27 Good day, I'm Dr. Friday, and I'm here live on the radio. You can join us if you want at 615-737-9986. Hopefully, the background noise won't be too bad you can. Today we're going to talk a little bit about the Inflation Reduction Act, I know there are quite a few different things happening. This one obviously did pass back on, I think the 12th or 14th of the month. And so we're gonna cover a few of the things that we all need to know there's good and bad, in some of this.

Dr. Friday 1:06 Obviously, one of the biggest concerns is they're going to increase corporate taxes, which I know everyone thinks is a great idea for those big bad corporations in the bad times, that is I've never seen a corporation yet pay taxes. So if they're going to increase, that means it's going to cost us more for the product that we're buying. And we're already in a big inflation situation. So I don't see how that is actually fitting for an inflation Reduction Act. But either way, you look at it. That is one.

Dr. Friday 1:33 One of the other things that may or there depends on your choice of cars and vehicles, but they are going to increase energy efficiency. So they're trying to give people some incentives. While I was reading up to $14,000, it looks like a lifetime. And then they're going to bring back some of the energy efficiency that we didn't have. So you know, smaller ones like refrigerators, all of those had expired, or most people have met their lifetime, dollar amounts, and now they're going to be able to actually be able to use some of those credits on your tax return.

Dr. Friday 2:08 So going back to clean fuel, clean energy, heat pumps, solar, all of them are back on the table as far as being able to possibly take off. Of course, a big part of this is the increase in tax enforcement, I think it's like $124 billion, 85,000 new people. I would say if you are an individual that is behind on taxes, or a person that is trying to deal or wanting to get better acquainted with getting yourself straightened out in taxes, this would be a time to do it now possibly vs, they're going to be doing a lot of training at some point, they've already said that a big number of these are going to be auditors.

Dr. Friday 2:51 So if they're going to be auditing, that means you and I all of us are going to be potentially on the table. So sooner you get yourself caught up and your resolution was taken care of they can't go back if they've accepted your resolution. So one of those situations where you really do want to try to deal with this the best that you can.

Dr. Friday 3:10 So if you haven't obviously, I'm an enrolled agent licensed with the IRS. It

Dr. Friday Radio Show – August 6, 2022

Dr. Friday Burke — Tue, 09 Aug 2022 19:25:22 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

You Can Still Get Your Stimulus Check

Do I Have To Take an RMD from My Roth 401k?

Sub S Corporation Tax Deadline September 15, 2022

Individuals That Filed Extensions Deadline October 15, 2022

How To Pay Down A Line of Credit

Dr. Friday Can Help You Get a Tax Resolution

Can I Do A 1031 Exchange?

Is It Better To E-File or Paper File?

What If I Haven't Filed My Taxes In a Number of Years?

How To Find Legitimate and Honest Tax Resolution Companies

Dr. Friday's Tips on Getting In Contact With the IRS

Tennessee's General Assembly Approved Sales Tax Holiday on Food & Food Ingredients August 1-August 31

and much more!

Transcript

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, I'm Dr. Friday, and we're here live this wonderful Saturday; I don't know what part of town you're in. But if you're in Spring Hill, we just had some nice little rain showers. I think every day we're getting a bit of rain, it always makes it a bit exciting for all of us. But hopefully, you are staying dry. I know my nephew is here in town, and he is playing in the baseball tournament up in by the Vanderbilt and all that area.

Dr. Friday 0:53 And so obviously, hopefully, the rain will stay away from those tournaments. So if you want to join the show, you can look at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday. So I am an enrolled agent licensed with the Internal Revenue Service to do taxes and representation. That's all I'm really good at. And so if you haven't filed your taxes in a number of years, maybe you're getting some of the love letters from the internal revenue or from the state of Tennessee or other states.

Dr. Friday 1:26 Or you're just you know, wanting to get straight with the IRS, maybe we've not really done anything. I mean, the sad thing is, I have many cases that come in where someone just hasn't filed taxes for a number of years, many reasons why simply is just never happened. And so they want to get caught up, and they want to be able to maybe go buy a house, or their kids are getting ready to go to college. And they need to do Pfeiffer and those kinds of things.

Dr. Friday 1:51 So you know, whatever it might come up to being, but whenever you don't file taxes, sometimes there are a couple of things. One, you have the limitation where you can only go back three years to get your refunds right. So, 19, 20, and 21 pretty much is what you have as far as getting refunds. So anything prior to 18, you may you will not get your refund. Now, if there's already an IRS assessment, and they're taking money out and paying earlier years, and it's been done in the last few years, then you may be able to collect some of those monies even though they're for older years.

Dr. Friday 2:24 That being said, you also have the situation where you're dealing with stimulus money, right? I mean, there's still a large number of individuals that did not get stimulus money because they did not file 19, 20, and 21 taxes. And those are still available. So if you did not receive the $1,400, or you did not receive the $2,800 if you're married, or you know the advanced child credits and all this, those will come to you if and when you file your 20 and 21 taxes.

Dr. Friday Radio Show – July 30, 2022

Dr. Friday Burke — Wed, 03 Aug 2022 18:38:44 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

How To Get In Contact With the IRS

Sub S Corporation Tax Deadline September 15, 2022

Individuals That Filed Extensions Deadline October 15, 2022

Dr. Friday Can Help You Get a Tax Resolution

Is It Better To E-File or Paper File?

What If I Haven't Filed My Taxes In a Number of Years?

How To Find Legitimate and Honest Tax Resolution Companies

Dr. Friday's Tips on Getting In Contact With the IRS

Tennessee's General Assembly Approved Sales Tax Holiday on Food & Food Ingredients August 1-August 31

and much more!

Transcript

Dr. Friday 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 Good day. I'm Dr. Friday, and the doctor is in the house right now here in the Spring Hill area. We are not seeing any rain, but according to my phone, it's supposed to be raining anytime. So hopefully, you guys are staying dry and not too humid outside for you guys. So if you want to join the show, it's easy. Call 615-737-9986.

Dr. Friday 0:54 We are live here on this beautiful Saturday. So if you've got questions, we are getting closer to the tax deadline. So if your business is a corporation, or unless you're on a fiscal year, LLC, anything like that, sub S corporations, you do have a deadline of 9/15, September 15. And then individuals that did file extensions, and this is only for individuals that have filed extensions or businesses, the deadline is 10/15.

Dr. Friday 1:21 We are already at the first of August, guys. So if you haven't started working on your numbers, preparing that information, you're going to need to make sure that you are dealing with that I do want to also open the show explaining that I don't know about other tax people. And if you're listening, I always appreciate the fact that you guys do listen, I'm going to say I'm running into issues where people we file back in March and April on time and do not have their refunds yet.

Dr. Friday 1:50 When we go online, the IRS just has this whole apology sorry, it's taking longer than normal to process your return blah, blah, blah. And in no, no letters coming to the taxpayer saying that there was some issue, they couldn't prove the W two or your federal withholdings, or you know that they change the tax return for some reason. It's just sitting out there in limbo.

Dr. Friday 2:12 So would be great to hear if anyone else has had that problem because hopefully, it's not just my clients. It's not that many, but in comparison, but still, any one client that's been waiting for months and months, you know, to get your money is supposed to take 21 days on most basic tax returns, then, you know, we're always wondering, and if anyone has had any success, calling the IRS now I haven't had a call them last week, but the week before I did, and it took me two days, pretty much straight calling to get through to somebody that at that time, was having computer issues, and they weren't really able to help out wasn't the IRS issue.

Dr. Friday 2:52 But you know, when you're you're spending 12 hours, on and off, you know, getting hung up on and everything else, it becomes that person's problem, because you're sitting there basically saying, "I understand you're having computer problems, you know, totally can relate to that. But this is like 12 hours, and I'm tr

Dr. Friday Radio Show – July 16, 2022

Dr. Friday Burke — Wed, 20 Jul 2022 13:16:31 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

What You Need To Know About Cryptocurrency and Taxes

What If I Haven't Filed My Taxes In a Number of Years?

How To Find Legitimate and Honest Tax Resolution Companies

How Are Double EE Savings Bonds Taxed?

Can a Company Buy Back Your Shares?

Can I Avoid the 15% Capital Gains Tax on the Home?

How To Get An Offer in Compromise With the IRS

Dr. Friday's Tips on Getting In Contact With the IRS

Is Loss of Income Taxable?

Tennessee Sales Tax Holiday on Clothing, School Supplies, and Computers begins July 29-July 31

Tennessee's General Assembly Approved Sales Tax Holiday on Food & Food Ingredients August 1-August 31

October 17 Deadline for Filed Tax Extension

and much more!

Transcript

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.

John Haggard 0:27 Live from America's Music City. It may be Saturday where you are but it's Friday, all day, every day all the time with the tax doctor, the tax lady, the doctor of accounting known in these parts of America as the Dr. Friday. Ladies and gentlemen, right here she is Dr. Friday. Hello there, Dr. Friday.

Dr. Friday 0:50 Hello, John. And thank you as always for stepping into the studio for us sometimes when I can't get in. So I appreciate it.

John Haggard 0:58 Always glad to be here we like to talk about money because you know, money is the number one cause of divorce, they say and there's so much going on with money. It's a great topic. So I'm always glad to be here, because you know if I can get it if I can get a tip from you. Because why do I want to pay more when I can pay less?

John Haggard 1:16 So Dr. Friday's here to give us all the answers to those types of questions. So that's a good deal. And folks if you are tuning in for the very first time because we have so many new people moving into Nashville from Chicago and San Francisco and New York and Philadelphia and Oregon and parts all over the place.

John Haggard 1:34 This is the Dr. Friday show. And the cool thing about Dr. Friday is she's an enrolled agent with the Internal Revenue Service. And some of you say, "Let me run, I don't want to run into the Internal Revenue Service!" No, she does not work for the Internal Revenue Service. But she can represent you like an attorney would in a court of law. So if you're in some trouble, or you haven't filed in the last 10 years, and I've met the dream person in my life and this person is making a lot of money and I don't want to get him or her thrown into jail or something like that.

John Haggard 2:06 Anyway, Dr. Friday can get you out of so many jams and you would never have to talk to the Internal Revenue Service again. So when we say live, that means you can jump on the phone and ask any question at all. Dr. Friday's got the answers here. Anything about taxes, stuff that's been bugging you.

John Haggard 2:22 Like for example, you know, how long does the IRS have to collect money? I owe them if I have not ever received a, as Dr. Friday calls it love letter, that, "Hey, you owe this." So we'll answer all kinds of questions. Here's the number to call right now only here until three. So you know don't say, "I'll call in a minute" because a minute becomes an hour and then you don't get an answer.

Dr. Friday Radio Show – July 9, 2022

Dr. Friday Burke — Thu, 14 Jul 2022 16:49:35 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

How To Get An Offer in Compromise With the IRS

Dr. Friday's Tips on Getting In Contact With the IRS

How Long Does it Take the IRS to Process An Electronic Payment?

Did The IRS Recieve My Paper Payment?

How Long Can College Student Be My Dependant?

More Than 2.1 Million Paper Tax Returns are Still Waiting for Processing by the IRS

Putting Money Into You 401K When You Owe Money To The IRS Is Not Allowed

Tennessee Sales Tax Holiday on Clothing, School Supplies, and Computers begins July 29-July 31

Tennessee's General Assembly Approved Sales Tax Holiday on Food & Food Ingredients August 1-August 31

October 17 Deadline for Filed Tax Extention

Getting Back On Track With the IRS with Dr. Friday

and much more!

Transcript

Dr. Friday 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 Good afternoon, this is Dr. Friday, and moving along here. It's a crazy Saturday for me, I imagine all of you guys are probably out there working, it's a pretty day outside. But anyway, today we're going to talk a lot about what I love talking about, which is taxes. Also a little bit about the offer and compromise process. Because we've had a lot of individuals that are getting to a point, I think, you know, 2020 was a very difficult year for many people. But people are now getting back on their feet, and they're wanting to deal with the IRS.

Dr. Friday 1:05 And they're like, I don't know where to start, I don't know how to start. And just for everyone that's maybe never heard of who I am Dr. Friday, or just tuned into the radio show. I'm an enrolled agent licensed by the Internal Revenue Service to be represented in taxes. So basically, it's all I do.

Dr. Friday 1:21 So if you have received the love letters, or if you have, you know that you have unfiled tax returns, you know, there are issues that need to probably be dealt with. This is what we have to start with when we talk about doing an offer in compromise is not just a matter of filing a 433 A or B depending if your business or not.

Dr. Friday 1:42 It really comes down to first and foremost getting you in compliance, it is so important that you are in compliance because the first thing the IRS really is looking for everyone always thinks it's the money. But that's not true. What the IRS is really wanting is for people to start filing their taxes on time.

Dr. Friday 1:59 And yes, of course paying their taxes. But if you have gotten behind, a lot of times divorce, other things have happened in life, and you ended up getting yourself behind, it happens. And what the IRS would want you to do is to file back up to six years, sometimes further in that, depending on if they have assessed your taxes already for you. If they filed, the IRS can file taxes on your behalf, never probably a good thing.

Dr. Friday 2:25 But sometimes they will go back usually for the entrepreneur, at least in my world, it's usually people that have received 1099s, you haven't filed your taxes yet. So they'll be nice enough to file you as single zero and no deductions. And then they'll send you a collection notice saying, "This is what happens, this is where you're at."

Dr. Friday 2:43 So, that being said, what you basically need to make sure y

Dr. Friday Radio Show – July 2, 2022

Dr. Friday Burke — Thu, 07 Jul 2022 14:17:33 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have tax expert Dr. Friday take on the latest tax updates, answer the caller's questions, and talk over the following topics:

More Than 2.1 Million Paper Tax Returns are Still Waiting for Processing by the IRS

Tennessee Sales Tax Holiday on Clothing, School Supplies, and Computers begins July 29-July 31

Tennessee's General Assembly Approved Sales Tax Holiday on Food & Food Ingredients August 1-August 31

Small Estate Probate Is Being Taken Away.

Gift Tas Rules Changed for 2022 to $16 million Limit

What You Need To Know About Hiring Children and FICA Taxes

October 17 Deadline for Filed Tax Extention

How Do You Know If You Filed Your Tax Return Correctly?

How To Get Back On Track With the IRS

and much more!

Transcript

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 Good day, I'm Dr. Friday, and the doctor is in the house. What a beautiful first Saturday of July. A bit nippy out there, my best bit hot out there. I was doing some yard work earlier, and I'll let you know a little rain came down. So that cooled it down. So if you want to join us today, we're going to be talking about obviously my favorite subject, taxes.

Dr. Friday 0:52 We still have taxes that many people may have filed extensions for the year 2021. And we're going to talk a little bit about 2022. And also, we want to talk a little bit about amended returns. Because I know that the IRS has put out a new thing on June 11, so this is back a little bit. But on June 11, the agency said they had 2.1 million unprocessed amended tax returns. Normally it will only take them 16 weeks to handle an amended return. Now they're saying it can take 40 or 50 weeks.

Dr. Friday 1:29 So we're looking at basically a year to process an amended return, which sits perfectly with my cases where we had filed an amended return. We finally just got the notification. They showed that they received it, and it was processed practically a year ago. And now they needed additional information. So not only did it take them a year to actually get us a letter saying that, that they needed information, but it took that long for it to get in. You can go to irs.gov, click on "amended or corrected returns," and you can look to make sure at least then you'll see that the returns are in the system.

Dr. Friday 2:08 And the sad part of this conversation is throughout that whole year. We have received probably four to five love letters from the IRS trying to make collections for something that we are correcting for this client. And in the big picture, they don't owe any money, they actually have a refund coming back. But meanwhile, they keep getting letters that the amount due is larger and larger. We continuously submit copies of the amended return back to the IRS, we contact them and let them know that we are in the process of dealing with the IRS. But you know it in all honesty, it doesn't seem to make a lot of difference.

Dr. Friday 2:47 I think they're just far behind on the letters that we're mailing back, and getting a hold of someone on the phone is very difficult. So we usually try to certify copies. So we can prove that we are in communication with the IRS, but it is a bit frustrating. So again, if you have a large number of amended returns that happened in the year 2020. A couple of reasons. One, we had serious storms that year. So we had some possible corrections for some people.

Dr. Friday Radio Show – June 4, 2022

Dr. Friday Burke — Wed, 08 Jun 2022 18:29:21 +0000

Welcome to the Dr. Friday Radio Show! In this episode we have tax expert, Dr. Friday, take on the latest tax updates, answer the caller's questions, and talk over the following topics:

Individuals Who Have Not Received Their Tax Refund

Second Quarterly Estimate Due on June 15th

PPP Reporting Rules for Tax Returns

Why Is The IRS Checking For Identity Theft?

How To Get In-Person Appointments With the IRS

Tax Filing Extension Due October 15th

How To Handle an Offer in Compromise

How Dr. Friday Can Help You Find Tax Resolutions Offering Compromises

Selling Property and the Tax Complications

What Is ID.me and Is It Safe?

How To Get Back On Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can 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 I'm live here in the studio. So if you've got a question, it's actually a gorgeous day outside, playing in the dirt or morning enjoying myself. And you know, the weather isn't too bad as long as the shades out there, I guess I should say.

Dr. Friday 0:46 So if you have questions, you can join us live here in the studio at 615-367-0819. 615-367-0819 that's the number we're looking for 615-737-9986 Sorry about that guys getting confused with my own direct line. And you can call us live here in the studio if you want. If you've got questions concerning taxes.

Dr. Friday 1:18 I can tell you that I have a number of emails for individuals that have still not received their refund, be it either their regular 2021 refund and/or their stimulus money even though they filed their taxes. They're getting rejection letters, saying that they've changed their tax return because the IRS is saying that they did receive this letter.

Dr. Friday 1:42 Now I'm going to be quite honest with you, we are working with the tax advocate office, we are trying to find ways to be able to get a better resolution because right now if you were to call in, they're going to tell you that the cheque was sent to you or that you received it on this day. And that's as much information as you're going to get. And for many people, they're like, "I never did get it and never received it. I never cashed it."

Dr. Friday 2:09 So they are telling us that they are reconciling the payments as they have come back to them. And then they will be, I'm assuming, there'll be resubmitting back out those payments, but we haven't received a resolution on that to know that for a fact. So just as a point of interest, my suggestion for anyone that hasn't received their refund, I would check.

Dr. Friday 2:37 Actually, if you haven't been online for a while, because I have a number of people that we failed two and three years at a time, you can check your refund now for 19, 20, and 21. When you click on "Where's My Refund." So if you're looking for more than one year's refunds, you now can do that that's new, they didn't use to have that they used to only have the year in which we were operating. So this case is only in 2021.

Dr. Friday 3:02 But I would go to IRS.gov, and click on "Where's My Refund." And I would then go ahead and find out where your actual refund from your tax preparation for the year 2021. They are also sending everybody on to the IRS. And you can check the status of your stimulus in all three of them. But you do have to be able to sign on through the IRS website.

Dr. Friday 3:29

Dr. Friday Radio Show – May 21, 2022

Dr. Friday Burke — Thu, 26 May 2022 13:25:28 +0000

Welcome to the Dr. Friday Radio Show! In this episode we have tax expert, Dr. Friday, take on the latest tax updates, answer the caller's questions, and talk over the following topics:

What Are The Biggest Common Mistakes Taxpayers Make?

When Is The Right Time to File Your Taxes

What To Do If You Haven't Received Your Tax Refund

The Primary Purpose of Form 3911

The IRS Will Not Be Giving Out Advanced Child Tax Credits in 2022

How Dr. Friday Can Help You Find Tax Resolutions Offering Compromises

The Consequences of Gifting Property Away and Capital Gaines

What Is ID.me and Is It Safe?

Why Avoiding Social Security and Medicare Is Not Good Tax Planning

How To Get Back On Track With the IRS

and much more!

Transcript

Dr. Friday 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 0:30 Hey, I'm Dr. Friday, and the doctor is in the house. We are here live in the studio. So if you've got questions, and you've been working on some tax issues or problems, or maybe you're just trying to figure out how to deal with some of those problems, this is the show you want to listen to. And hopefully, I can get you in the right direction.

Dr. Friday 0:49 We always try. Call 615-737-9986 is the number here in the studio is 615-737-9986 is the number. So if you want to join us, you can basically what we want to talk about a little bit today is, you know what should we be looking at for 2022. We are now five months into the new tax season, we haven't had a lot of current tax changes, or things that are going to go into effect. So pretty much your tax planning will be consistent with what's happened in 2021, give or take a few minor adjustments to the cost of living.

Dr. Friday 1:26 But it's always very important, especially with the current changes that we have happening in real estate and stocks. We all know the stock market right now has come down quite a bit. So many of you are some of you may be looking at potential stock losses. If you're like me you're holding and waiting for that to hopefully bounce back so that I won't affect any of my tax losses. But sometimes a tax loss could help if you had large capital gains.

Dr. Friday 1:56 And I want to put a caveat out there, I am not a financial planner, I am totally talking about taxes, and how to potentially save on tax dollars, never take a tax loss just to save tax dollars. Because anytime I'm talking about a tax loss, in most cases, you would be losing the value of your tax bracket.

Dr. Friday 2:17 So for example, if you have a $10,000 tax loss, a physically lost $10,000, and you're in the 20% tax bracket, you would only save $2,000 in tax dollars. So never a good idea to just go lose money just so you can save money. Now sometimes you can by having a loss, it could kick you into a lower tax bracket, or things like that.

Dr. Friday 2:41 So it may help help you even more than a few 1000. But all in all, it's never a $ 1-for-dollar loss. So always make sure you're consulting with a financial planner if this is something that's going to have a major effect on your finances, right? Because, again, if you're only talking to someone like myself, an enrolled agent, that's what we do is taxes, we do representation, I'm not looking at what's going to be happening in the big picture under my expertise.

Dr. Friday 3:11 My expertise is how to save you taxes today, tomorrow, or in the future. I had a really interesting c

Dr. Friday Radio Show – May 14, 2022

Dr. Friday Burke — Tue, 17 May 2022 13:10:25 +0000

Welcome to the Dr. Friday Radio Show! In this episode, we have host, John Haggard, and tax expert, Dr. Friday, take on the latest tax updates, answer caller's questions, and talk over the following topics:

Counties That Have a Tax Extension Until May 16, 2022

What Is Earned Income Tax Credit?

Will Congress Pass This Huge Tax Increase?

Earned Income Limits for Taxpayers Who Do Not Have Qualifying Children

What You Should Know About the Build Back Better Plan

What the IRS Considers as Earned Income

How The People You Vote For Affect Your Taxes

Do I Need A SSN To Be Eligible to Claim the Earned Income Tax Credit?

Child Age Requirements for Earned Income Credit

Gifting Property Away and Capital Gaines Tax Consequences

Why You Should Trust Dr. Friday With Your Taxes

How To Get Back On Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can 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.

John Haggard 0:28 Live from America's Music City. It may be Saturday where you are but it's Friday, all day, every day all the time with the tax doctor, the tax lady, the doctor of accounting, ladies and gentlemen, known in these parts of America as Dr. Friday. Right here she is. Dr. Friday, how are you?

Dr. Friday 0:49 I am awesome. What an intro. That's why I love having you do my shows. Because John, you really know how to bring in an intro.

John Haggard 0:57 Well, I'll tell you what, you are the one. And that's why we like to do this because folks who have questions who have been running from, who haven't, you know, filing an income tax return in 10 years, because they think, "Well, you know what, I ain't done it in 10 years, what's another 10 gonna be?"

John Haggard 1:13 They're gonna learn some things today from Dr. Friday, that could save you a lot of trouble. I'm going to just promo one thing folks, you're going to hear especially those of you who are new to Nashville. If you have not met or heard of Dr. Friday, and you're just tuning across the internet, or maybe hear on the radio, especially the folks from California and Chicago and New York and Philadelphia and other markets.

John Haggard 1:36 We're meeting new people, it seems like every week in Nashville, as people move here, I'm gonna give you something here that you might want to know. If you are one of those who hadn't filed an income tax return or let's say, you know, you've gotten the last as Dr. Friday would call it "love" letter. And now including taxes and interest and penalties, you owe a million dollars.

John Haggard 2:01 And you say, "You know what? I mean, forget it, you know, I'm just gonna go off the grid. There's no way." I'm going to tell you this. And we'll prove it later, in that particular case, Dr. Friday had client folks who owed over $1 million, not a typo. I said $1 million. And you settled it for about what Dr. Friday?

Dr. Friday 2:21 A little over 100,000. Just right around 102,000.

John Haggard 2:27 Now, you know, folks, I mean, every case is different. But imagine that? How would you like to be staring at that? Or maybe you're staring at a bill that's 500,000 or 100,000? Or it could be 25,000? Anyway, it's more money than you've ever got. You don't think you could ever make it? That's the type of work she does.

John Haggard 2:42 Do you know why? Here's one of the things you should know, and listen very carefull

Dr. Friday Radio Show – May 7, 2022

Dr. Friday Burke — Wed, 11 May 2022 23:05:58 +0000

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

Counties That Have a Tax Extension Until May 16

What is Deferred Action for Childhood Arrivals (DACA)?

Seminar on July 14 and 15th in Mount Juliet for Association of Enrolled Agents

What is ITIN and Who is Required to Get It?

Personal Tax Extensions Due October 15

Business Tax Extension Due September 15

Can I Receive the Child Tax Credit?

How To Get Back On Track With the IRS

Why You Shouldn't Sell Anything Before Accounting the Taxes

What If I Sell My Primary Property?

and much more!

Transcript

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 Hey, I'm Dr. Friday and the doctor is in the house. And we are here live in studio to enjoy this kind of overcast Saturday, it's not the most crazy, but tomorrow is Mother's Day. So for all of you that are mother's or step mom's and all the other kinds of scenes that go along with that people that have helped raise wonderful kids. Well, hopefully tomorrow, you'll have a wonderful day.

Dr. Friday 0:54 So I know I have one of the best moms in the world and I miss her everyday. So hopefully you guys will enjoy, weather is going to be beautiful tomorrow, according to my chart. So that will be a great thing to do. All right, today, we're gonna talk a little bit about taxes, maybe prepping for the 2022 tax year, we've already been taking several meetings. Because with all the real estate sales and inheritance and people retiring, it just seems like there's quite a few choices and decisions people need to make.

Dr. Friday 1:25 And sometimes if you don't make those decisions in advance, they will be made for you. I mean, it's really what it comes down to. So what I'm saying is, if you haven't sat down and kind of plan, "Okay, I'm gonna sell this house. So I have a $250,000, I've lived in a two out of the last five years. So I'm going to move into a new house." And if you're single or married, and in that case, you would basically have zero tax, if it was your primary home, if you're married, you can have up to $500,000 exclusion.

Dr. Friday 1:54 But keep in mind, in some cases, people were maybe self employed, and you use your home and maybe you depreciated your house, during the time that you had a home office, then you might have some recaptured depreciation, I have probably just in the last month talked to four or five people that are selling their rental real estate, in which of course, we have the recapture of depreciation.

Dr. Friday 2:17 And you know, and of course, the capital gains on that one, depending on how much you make, it's going to be anywhere between 15% and 23.8%, there is a 0% capital gains rate. So just letting you know, but it's not as easy to do I mean, you'd have to be making 50,000, including the capital gains for a single person total income under 50,000. And a married couple under 100,000, basically, and that, again, would include the capital gains.

Dr. Friday 2:45 But if you do have that and get remember, capital gains is something that is a year and a day, right? Anything that's called long term capital gains, really only capital gains is when we actually have it for more than a year in one day. Otherwise, it's taxed at ordinary income rates. So just you know, in that, obviously can fluctuate all the way up to what 37%.<

Dr. Friday Radio Show – April 23, 2022

Dr. Friday Burke — Wed, 27 Apr 2022 16:36:43 +0000

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

Counties That Have Tax Extension Until May 16

What To Do If You Haven't Received Your Tax Refund

How To Get Back On Track With the IRS

Real-Estate Tax Benefits You Should Know About

Why You Shouldn't Sell Anything Before Accounting the Taxes

Did I Receive the Child Tax Credit?

How To Deal With An Estate or Property Sales

Short Term Capital Gains is Also Ordinary Income Tax Rates

Payments or File Taxes Extended Until May 17th

What If I Sell My Primary Property?

The Importance of Reporting Everything On Your Taxes

and much more!

Transcript

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 Good day. I'm Dr. Friday and the doctor is in the house. Boy, we made it through the initial tax season, I guess is what we usually like to think of it as. But keep in mind that there are many counties, Davidson Decatur, Dixon, Dyer, Gibson, Henderson, about 22 different counties to be quite honest, that are still actually active until May 16. Even if you did not file an extension, you have an extension because of the disaster victims of the fear storm and straight line winds that fell into those counties.

Dr. Friday 1:03 So if you haven't filed, there's still time to go ahead and get them filed. And make sure you have those going on. Even the biggest thing is obviously making those payments. So that's very important. So if you haven't done it, you might need to do that. If you want to join the show, you can 615-737-9986. We are taking your calls talking about taxes and things that are going on. I know that for many people, the IRS is still there's some delays out there.

Dr. Friday 1:38 So just the best advice I can say is if you did send your tax returns in in January or February, and you still have not received your payments or refund, then I would say it's time to probably contact the IRS unless first thing I would do is probably go to irs.gov, check your refund, find out if the refunds there and then go from there. As far as where, you know, if it says it's still pending, that may mean that they're still trying to match information.

Dr. Friday 2:09 I know we had a case that we just had spoke to the person this morning, where the IRS, they did not think about the fact that they were in the marketplace. But they were and or the IRS came back and said we can't process the return because we're looking for the 8962, which has to do with insurance from the marketplace. And this individual realized that they did have a couple months before his wife went on to Medicare, that they may have had the marketplace.

Dr. Friday 2:36 So they're going to be able to go back and look at that. So these kinds of things are what's happening and how it comes down. So you need to make sure that you are dealing with your issues. I mean, what you hear here or any other situation, not always the same situation. But it is important that you're able to take the time, make the information and then use it to the best of your ability, everyone's situation is a little bit different. So just want to make sure that we're all on the same page, and that we're able to get your information to the IRS.

Dr. Friday 3:09 If you could not file electronically for some reason. Some people did have some problems. I know I've g

Dr. Friday Radio Show – April 16, 2022

Dr. Friday Burke — Wed, 20 Apr 2022 13:40:31 +0000

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

Dr. Friday’s Tax Tips For the Tax Season

Did I Receive the Child Tax Credit?

File A 4868 Tax Extension

Remember Short Term Capital Gains is Also Ordinary Income Tax Rates

Payments or File Taxes Extended Until May 17th

You Cannot Get Earned Income Credit on Someone Else's Children

What If I Sell My Primary Property?

The Importance of Reporting Everything On Your Taxes

How To Report Your Capital Loss on Taxes

The Changes in Tax Laws

How To Get Your Tax Details In Order

How To Get Back on Track With the IRS

Taxes For Individuals Are Due April 18

and much more!

Transcript

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, and yes, it is crazy busy for all of you that tried to reach us on Friday thinking that that was the last day to file an extension or make a payment. Hopefully you got through to realize that isn't the case, kids. We have until Monday, it was actually Emancipation Day for tax people. Of course, it was Good Friday for a lot of us.

Dr. Friday 0:55 But we did have until that time. So Monday is our last day to file for an extension or in those situations. I say that but we also have in some counties, tornadoes, straight winds, basically federal disaster situations that came about and many of you will actually have if you're in one of the counties that actually have that. And I would double check to make sure you have that ruling.

Dr. Friday 1:26 You have until . So in some cases, some people get a little extra window there of time, just want to make sure that you don't miss the window of filing your tax deadline. federal disaster areas do give us a little extra time again, it's May 16 2022. There are certain counties, and that is because of severe weather. So if you have a question you want to join the show, you can do that easy enough 615-367-0819.

Dr. Friday 2:06 I also want to remind all of you that our LLC S corporations, single member LLC, as many of you may have filed federal tax extensions. But remember, the state of Tennessee does have what's called franchise excise many of you need to go in, we've always done you can do it by paper. It's an FAE 173 form. But you can also they said this form is not required to be filed that the taxpayer has already paid the required payment to receive the extension. The payment is required depends on the dollar amount, obviously, required payment would be equal to 100% of the prior year, or 90% of the current year liability.

Dr. Friday 2:50 So that's the only way you're going to basically get an extension in the state of Tennessee anyway. So if you're not sure the minimum is $100. After that, if you know what you paid the year before ideally making that payment on or before Monday would be an ideal situation for you. So that way you can make sure that you're going to have what you need. If you want to join the show you can 615-737-9986. We are taking your calls, dealing with what we need to deal with when we're going in there.

Dr. Friday 3:28 And then we also talked a little bit about the May 16, 2022. individuals affected by severe storms, straight line winds, tornadoes that recited or have businesses in Cheatham, Davidson Decatur, Dixon, Dyer, Gib

Dr. Friday Radio Show – April 3, 2022

Dr. Friday Burke — Tue, 05 Apr 2022 18:11:20 +0000

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

Dr. Friday’s Tax Tips For the Tax Season

Did I Receive the Child Tax Credit?

File Your Tax Extensions Before It's Too Late

What If I Sell My primary Property?

How To Report Your Capital Loss on Taxes

The Changes in Tax Laws

How To Get Your Tax Details In Order

Don't Leave Tax Money On the Table

How To Get Back on Track With the IRS

Taxes For Individuals Are Due April 18

and much more!

Transcript

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 0:27 All right, the doctor is in the house and we are counting down we are in April. Everyone, Tax Day is April the 18th. That means if you're a procrastinator and you're like, "Oh, I'm going to file my taxes on time," you might want to think about preparing for those tax returns.

Dr. Friday 0:43 There's a few extra questions, you need to make sure you do have your advanced child tax credit information, you need to make sure that you have you know, your 1400 or your stimulus money that you received it or not. And I'm telling every single person seriously, I've had more than one person that has come and said, "No, no, no, I would have known if that $1,400."

Dr. Friday 1:03 Or it could have been a maybe not exactly 14, depending on your income bracket. That does means test out. So some people had less than 14 when they went looking, but it will say EIP 3 or, you know, basically it's the third stimulus check. And so it will say that the other ones for the children will say CTC, child tax credits.

Dr. Friday 1:25 And again, a lot of people are saying, "Oh, no, no, I didn't get it."And I will say least on the Child Tax Credit, if you didn't receive it, it's able to be put in, in you know, theoretically. And if you received it and the child is not your dependent this year, it will become income to you. Now on the stimulus money.

Dr. Friday 1:47 That is not the case, if you received it and you were not entitled or if you did not receive it. It's not taxable. I am just telling you last year, we held up a lot of tax returns because people kept saying, Oh, I didn't get especially the $600 even though we were specifically saying it probably hit in January, a lot of people said, "No, no, no, I didn't get it. Last year, I didn't get it."

Dr. Friday 2:09 And then the IRS changed the tax return. We don't want to do that. In fact, if you're my client, most of you guys will know that I pacifically tell you, we will claim it because the only way for you to get your stimulus money, if you did not receive it through the mail are in a direct deposit is to file a tax return.

Dr. Friday 2:27 So we will file it and we'll claim it on the tax return. But I will use the if there's money do suggest my client pay the money do and then wait for that refund check to come back versus claiming them and it will reduce the amount due and then if they disallow it because they say you did receive it, or your parents received it because you were a dependent last year for them, or the bank account you had was not correct on the tax return they had in 2020.

Dr. Friday 2:57 And the bank still has to reject it. Any of those things could have happened. Then, you know, you'll have to chase it afterwards. But the first thing you need t

Dr. Friday Radio Show – March 26, 2022

Dr. Friday Burke — Wed, 30 Mar 2022 17:54:07 +0000

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

Dr. Friday’s Tax Tips For the Tax Season

File Your Tax Extensions Before It's Too Late

What Is A Mega Backdoor Roth IRA?

How To Report Your Capital Loss on Taxes

The Changes in Tax Laws

How To Get Your Tax Details In Order

Can I Take My IRA Out Without Penalty?

Don't Leave Tax Money On the Table

How To Get Back on Track With the IRS

Taxes For Individuals Are Due April 18

and much more!

Transcript

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 0:27 Good day. I'm Dr. Friday and the doctor is in the house. And we're going to go ahead and go right on to the phone since Brian has joined the show already. Brian, there you go, buddy. All right. Sorry about that.

Caller 0:47 We've spoken before. I sent you a Facebook message I didn't know I wanted to be really super clear. I don't know if you had time to read it or not. But anyway, I've got a friend from the family. He's 20 years old, getting married, he and his fiancee make $15 an hour $60,000 household income. And they're not married yet. And they're going to build.

Caller 1:14 And I'm wondering if it is a good idea or just an idea to build a garage with an apartment and then use the garage as his shop's slash office slash storage facility? And if so, how much of his mortgage? Could he write it off? What kind of expenses? How much could he do to depreciate the property, etc?

Dr. Friday 1:41 So well guess there are two catches on that one, in my opinion. First, what I may have missed Brian, was what did what does this person do for a living?

Caller 1:53 He works in a factory.

Dr. Friday 1:55 Okay. So there would be no home office if he's working at a factory, right?

Caller 2:00 Well, no, he would be a lawn care, handyman.

Dr. Friday 2:06 Okay, so he's gonna be taking care of the property that he's staying on. Or the owners are going to give him room and board in exchange.

Caller 2:15 No, he's being deeded this property as a wedding present. And he's gonna have his own small business. He's gonna do he's going to mow yards. He's going to do handyman things and he's going to do tear-outs and Holloway's on flip houses.

Dr. Friday 2:32 Okay. Okay. So he's making a big change here.

Caller 2:37 He's gonna be employed, and he's going to be self-employed.

Dr. Friday 2:41 Right. Well, I mean, I guess the bottom line to that answer is if it is an actual buyable workspace, meaning a place where he is storing his lawn mower's a space where he is working invoicing, doing something that's legitimate, and the place that he can't sleep.

Dr. Friday 2:59 Because you can't have your bed in the same room that you're working in and because home office? Um, so that would be because you were talking about possibly the target portion of the garage and making it into his office space is what I was kind of hearing, but I want to make sure I was on the same page. Yeah, he would be able that.

Caller 3:16 Offices storage. Yeah.

Dr. Friday 3:19 He'd be able to take a portion of it, it would all be based on square footage. Um, so the downside t

Dr. Friday Radio Show – March 12, 2022

Dr. Friday Burke — Wed, 16 Mar 2022 20:33:00 +0000

Welcome to the Dr. Friday Radio Show is here! In this episode, Dr. Friday takes on the latest tax updates, answers the caller's questions, and talks over the following topics:

Dr. Friday’s Tax Tips For the Tax Season

The Changes in Tax Laws

The Identity Protection PIN (IP PIN)

Did I Receive My Stimulus Payment?

How To Get Your Taxcc Details In Order

Can I Take My IRA Out Without Penalty?

The Qualified a Required Minimum Distribution

Tax Deductions You Should Know About

Don't Leave Tax Money On the Table

How To Get Back on Track With the IRS

Taxes For Individuals Are Due April 18

What If I Received Two Stimulus Checks In 2021?

and much more!

Transcript

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 Hey, I'm Dr. Friday and the doctor is in the house on this cold, crazy Saturday. I will tell you that it is definitely going to be one of those bitter days, which is great because I'm endorsed doing taxes. So you know, safe sound and a little bit crazy myself. But if you want to join the show, this is the time I know a lot of other people are probably choosing this day to do taxes. And if you have, you can reach us at 615-737-9986. Dr. Friday 1:01 And I can take your call here in the studio, hopefully, to make your tax season go as smoothly as possible. And then we'll be able to, you know, make sure that you're not missing out or filing or maybe you've had some pretty big changes. Let's be honest, this year has been a bit crazy. Quite a few home sales have quite a few people relocating. And unfortunately, I think probably out of my 20 plus years, a number of people that we have lost. Dr. Friday 1:27 So it's, you know, to just age or whatever. So it's one of those situations. So if you want to join the show, 615-737-9986 is the number and we've already got Dan from Mount Juliet. I appreciate your call. So let's see if I can help you out. Hey, Dan. Caller 1:47 Hello, Dr. Friday, thank you. I do my own taxes. And I probably don't do a very good job because they sent me a letter saying credit on account of over $1,400. And they have a notice CP80. Dr. Friday 2:03 Is that possible to say that's for last year? Damn, where do they say they haven't received your tax return yet? Why is it possible? Caller 2:12 I sent it in. Dr. Friday 2:13 I know, but what does the letter say? Just out of curiosity, does it say that we have a credit on account and we're looking for and it may be your 2019 2020 tax return? Does it say that in the letter? Caller 2:25 A signed copy. If you've already filed this return please send a newly signed copy to Dr. Friday 2:35 Yeah, so what tax year probably 2020. Because to be quite honest with you, you along with about 5 million other people. So you're not really feeling this too much alone, um, that they've sent those notices out? And actually, they got quite a reprimand from some of the other offices, because how can you send a letter out like that if you haven't processed all the returns yet, right? Dr. Friday 2:56 I mean, doesn't make a lot of sense. But my suggestion and we've gotten a couple in our office, that's the only reason I knew how to or what the letter was about. But in all honesty, what you're going to want to do personally, I would just get another copy at the top, say, "Second copy filed on time" is what I would put in big bold letters, resign the return. And again, you kn

Dr. Friday Radio Show – March 5, 2022

Dr. Friday Burke — Wed, 09 Mar 2022 15:03:30 +0000

Welcome to the Dr. Friday Radio Show is here! In this episode, Dr. Friday takes on the latest tax updates, answers the caller's questions, and talks over the following topics:

Dr. Friday’s Tax Tips For the Tax Season

The Changes in Tax Laws

Where Can I Find My Stimulus Payment?

Can I Take My IRA Out Without Penalty?

The Difference Between E-Filing and Paper-Filing

Don't Leave Tax Money On the Table

How To Get Back on Track With the IRS

Taxes For Individuals Are Due April 18

What If I Received Two Stimulus Checks In 2021?

The Difference Between Sole Proprietorship and LLC

Should I File An Extention For My Taxes?

and much more!

Transcript

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 Good day. I'm Dr. Friday and the doctor is in the house, it is a beautiful Saturday outside, thank goodness, I had time to go out and do some yard work because it is gorgeous. So hopefully you guys are enjoying this weather.

Dr. Friday 0:43 And also, it's our favorite time of the year. It's tax time, we are in the midst of the most, but seems like the busiest tax season, I don't know if it's just every year gets a little different. But definitely a busy tax season for us here. And I'm sure for a lot of you that are listening, that you are also kind of buried and trying to get your own tax documents together.

Dr. Friday 1:02 We have all the changes that are happening with the tax laws, of course, having to make sure we have the advanced Child Tax Credit, we've got the stimulus payments, and all those are posted. And I will say many times I have a number of people that have walked in the office and they're like, "I got this letter, but I don't remember seeing 1400 I didn't get it."

Dr. Friday 1:21 But I have them go back and start in March and work their way through the system. And so far every person has found their $1,400. So in the case that if you're thinking you'd or may not have received your stimulus from last year, the final, well, I should never say that because you never know. But the third stimulus, which was $1,400, would have happened from March through the end of the year is what I tell people, basically it would have been March, April, or May in most cases.

Dr. Friday 1:49 But to go back through and see and make sure it is also the same situation where it comes down to your the money where you were you supposed to get it you should have received a letter saying how much you received because some people may have earned too much money and did not receive it. And in other cases, that it may have gone into a bank account that you don't think to look at like savings, it should be in the same bank that you might have had for a refund or draft for auto payments with the IRS. Just keep that in mind.

Dr. Friday 2:21 All right, let's hit the phone lines. We've got Steven in my town Spring Hill. Let's see what Steven has to say. Hey, Steven.

Caller 2:28 Hey, how are you?

Dr. Friday 2:30 I am very good. How about you?

Caller 2:32 Okay, I have an odd, I guess a slightly odd situation. My late father-in-law had a rental property, he essentially got into the long story with a divorce. But I'll try to keep that out of it. But essentially, the estate didn't have a lot of money and was upside down on this rental property. We got the mortgage company to agree to a short sale. That

Dr. Friday Radio Show – February 26, 2022

Dr. Friday Burke — Wed, 02 Mar 2022 12:44:44 +0000

Another incredible episode of the Dr. Friday Radio Show is here! In this episode, Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Dr. Friday’s Tax Tips For the Tax Season

Can I Take My IRA Out Without Penalty?

Taxes For Individuals Are Due April 18

How To Start Filing Quarterly

What If I Received Two Stimulus Checks In 2021?

The Difference Between Sole Proprietorship and LLC

Why You Need to Start Preparing for Tax Season

Do I Need to Get an EIN for My Sales?

Don't Leave Tax Money On the Table

How To Get Back on Track With the IRS

and much more!

Transcript

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, the doctor is in the house and oh, man, are we in a full blown tax season? That's right, it is tax time. And if you haven't already set up an appointment, unless you are pre-existing clients, then our office I know is already full. I'm sure a lot of other CPA or accounting full firms are also you can't wait to that last minute to decide who you're going to have do your taxes, or you may end up doing them yourself.

Dr. Friday 0:55 You can join the show we are live 615-737-9986 is the number here in the studio 615-737-9986. While we're waiting for some of those calls to get answered here. I did want to start the show up with an email I had gotten this morning from one of my clients that have been with me for a number of years.

Dr. Friday 1:17 And apparently he was getting some emails saying that there was going to be another stimulus out there. And he was smart enough to say hey, Fridays, this actually true coming for home $3,708 home stimulus. Guys, I need you to make sure you understand if anyone has actually received that and thinking that there's another stimulus check coming in the mail. It's not going to be that kind of stimulus. Okay, guys?

Dr. Friday 1:43 This is actually been out there since the middle of last year. But it is something that had to do with homeowners and renters and it was during the COVID. And what they were trying to help people be able to extend their mortgages, try to get you out of not losing your home just because you had a lower income. So that's where that is. It's not a stimulus check. Just wanted to get that out there because I know I'll start getting quite a few phone calls on that situation. Once it starts coming out, especially if a lot of people are getting these robo emails or whatever they're called.

Dr. Friday 2:15 Alright, sweetheart, why don't we start with the first one Lisa in Nashville. Hello, Lisa.

2:22 Hello, I've got a question we received from my son's college, two 1099 Q's one made out to him. And one made out to me because I made a draw against his 529 for reimbursement of things that I had to pay out of pocket before we got financial aid setup and all that. And he also received a 1098 T from the college. And we received a it was a $2,000 refund as part of the America Rescue Plan. How does that affect?

Dr. Friday 3:08 So claiming the child is the child on your tax return? Or is he old enough where he's filing his own taxes?

Caller 3:14 No, he's a dependent.

Dr. Friday 3:17 Makes it easier as far as I'm concerned. So what you're going to basically have is you're going to be filing the two 1099 Q's on the 529 plan or state plan, whatever it might h

Dr. Friday Radio Show – February 5, 2021

Dr. Friday Burke — Thu, 10 Feb 2022 21:36:26 +0000

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

Dr. Friday’s Tax Tips For the New Year

Taxes For Individuals Are Due April 18

Why You Need to Start Preparing for Tax Season

What You Need to Know About The Advanced Tax Child Credit

Facial Recognition to Prevent Tax Fraud

Don't Leave Money On the Table

IRS Letters on Child Tax Credit and Stimulus Check

The Difference Between E-File and Paper File

How To Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can 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 and are we busy. It is the season guys, the whole time that we seem to talk about taxes a lot. But now is the time that people are preparing tax returns. You should have received in most cases, most of your forms.

Dr. Friday 0:45 I will say do not rush to just file your taxes. Because in many cases, we are still waiting for information from like stock retirement accounts, where you may have taken distributions or earnings. So you know, make sure you have received the actual year in reports. And then you know, go ahead and put that information in and make sure that you're doing all the forms.

Dr. Friday 1:08 Don't forget this year, we've got some specialties when it comes to filing, of course, for the Advanced Child Tax Credit, as well, as you know, we still had a stimulus check or a rebate that we had for 2021, which was $1,400 per person. So you want to make sure that that is also coming through. So for all of you that are working on your taxes, don't forget that you know you have line 30, that's going to come across, if you did not receive the EIP 3 or the stimulus check three, that would show up on number 30.

Dr. Friday 1:42 And then you also had the advanced Child Tax Credit, that's going to show up a little bit of a change where you're going to also see in 2021, we do have the charitable tax deduction, which is now $600 for a married couple $300 for a single individual, which is now split up between 12 A B and then 12 C being the amount that shows as your true standard deduction.

Dr. Friday 2:07 So you'll have your standard plus your your charitable to get you to what's going to show up on 12 C. So again, just the one of the situations where we have some changes, and we're working on all those.

Dr. Friday 2:20 But it looks like I am fortunate enough Dalton is in the line from Franklin Dalton. Let's go ahead and start the phone.

Caller 2:27 Hi there. Thanks for the phone call.

Dr. Friday 2:29 No problem. Thanks for calling Dalton, what can I do for you?

Caller 2:32 Question. If you have a stock call it stock X that you bought 10 years ago, and you're down $90,000. But you have a stock Y that you bought six years ago, and you want to sell 255 shares to bring in the $90,000?

Dr. Friday 2:52 Absolutely long term for long term? Perfect situation.

Caller 2:55 Okay. So you cant just take the $3,000, you take the 90 for the 90.

Dr. Friday 3:01 Right. So what you get to take is the 90,000 plus three. So if you had a $95,000 loss, and you only had a $90,000 gain, you could take 93 of the 95. That makes sense, Dalnton?

Dr. Friday Radio Show – January 29, 2022

Dr. Friday Burke — Tue, 01 Feb 2022 00:03:44 +0000

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

Dr. Friday’s Tax Tips For the New Year

Taxes For Individuals Are Due April 18

The Advanced Tax Child Credit

Facial Recognition to Prevent Tax Fraud

W2 Are Due January 31

IRS Letters on Child Tax Credit and Stimulus Check

When Can Is Someone Considered My Dependent?

The Difference Between E-File and Paper File

Filing Married Jointly or Separately

Why You Need to Start Preparing for Tax Season

Cryptocurrency and Taxes

Getting Back on Track With the IRS

and much more!

Transcript

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 0:29 Good day, I'm Dr. Friday and the doctor is in the house. And is it busy around here for all of those that are entrepreneurs are in charge of payroll department, obviously, you know that W2's are due on Monday, the 31st, then so are 1099, miscellaneous 1099, NEC's, so we need to make sure all that information is out there.

Dr. Friday 0:50 And if you're doing your own payroll, obviously, a lot of times you want to make sure you've reconciled their state with your 941, your 940 and your W3's to make everything balances out because the last thing you want to get is a love letter halfway through the year that says, "Oh yeah, it looks like you reported this here. And we've got W2 for this. And please explain the difference." Never a good day when that happens.

Dr. Friday 1:13 And normally I find that happens is sometimes in payroll systems, some will make an adjustment after a 941 from one quarter has been filed, then another adjustment will be made and just makes it a bit more challenging when it comes down to it. So just make sure that your information is correct. And make sure your employees have the ability to receive them by Monday, at least in the mail by Monday. So that way you're in compliance and you don't have to worry about it.

Dr. Friday 1:39 That makes life a little bit more exciting then, you know, just winging it and saying, "Oh yeah, we're going to get those out," because employees can be a bit testy when they don't get what they want, especially when it's time for them to file the tax returns. So making sure that information now we'll say to employees, it is not your employer's responsibility to make sure that your social security number if it's been provided properly, that that is still the right number, especially the name, address change. That is your responsibility.

Dr. Friday 2:10 And according to the IRS and employer can charge somebody for making those changes after this, you know, after a W2 has been filed, because well, then you usually have to file an amended or corrected one, which can cost additional funds. So just making sure that you've updated your employer, even if you've left them, you know, send them something before the end of the year, so their records can be up to date. So when they kick out those W2 you're getting it or making sure nowadays, a lot of us are sending our W2's by email.

Dr. Friday 2:40 So again, making sure you have a current email or if you've changed something, notifying the employer prior to the first January is usually the best bet because many employers some some employers have their W2's out within the first week of January, some not as not as fast as others.

Dr. Friday Radio Show – January 22, 2022

Dr. Friday Burke — Wed, 26 Jan 2022 17:23:47 +0000

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

Dr. Friday’s Tax Tips For the New Year

The IRS Will Go Through E-Files Starting Jan. 24, 2022

IRS Letters on Child Tax Credit and Stimulus Check

The Difference Between E-File and Paper File

Capital Gains Tax for Married Couples

Start Preparing for Tax Season

The Employee Retention Tax Credit

The Advanced Child Credit

Cryptocurrency and Taxes

Getting Back on Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can 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 0:28 Good day. I'm Dr. Friday and the doctor is in the house on this nice cold Saturday. If you have questions and you want to join the show, maybe you're working on your taxes, they will not be actually open. The IRS opens on 1/24. So that's when the actual e files will start going through. But up until then they are taking and putting them in a holding cycle. So you will be able to do some of the work that you need to do and get it out there because the most important thing is getting it filed.

Dr. Friday 0:55 Remember, in the 2021 tax year we'll also have the stimulus or the recovery rebate for $1,400 for each person on the tax return. So that will be how if you never did receive that money, it's essential that you file a return even if you don't think you need to or you know, normally you don't have to move about a time. This way, you can make sure you're going to get that last stimulus that you may have missed. So again, that will be on the 2021 tax return. I'm going to say it's essential that you guys make sure you receive the letters, the IRS is sending out one for the child tax credit. The other is for the stimulus or go online and pull your transcripts.

Dr. Friday 1:40 Last year a lot of people said they never received any of the stimulus money they filed tax returns. And the IRS basically came back and said, "No, we're not approving your things because we show you did receive it." So it's gonna be interesting to see how that works out.

Dr. Friday 1:54 Alright, let's go the Lisa. Looks like she's in Nashville, hopefully staying warm. Hey, Lisa.

Caller 2:00 Hi, how are you, Dr. Friday?

Dr. Friday 2:02 I am good.

Caller 2:04 I've got a question about doing inventory and the cost of goods sold. If I am going to start my business this year, my inventory was should be zero to start with. But what if I had a lot of supplies that I had bought for personal use at some point, but then want to transition to incorporate into the business? As far as it's making jewelry? So if I wanted to roll that in and have it as inventory, is there a way to do that?

Dr. Friday 2:40 The offsetting entry is going to be your investment because you paid for that out of your own pockets. And nothing to do with the business. So it's like when you open the bank account with $100 or whatever, you know, the same kind of situation that's money that came out of your pocket. So either owner drawl members contribution, shareholders contribution depending on what type of entity it is, but the offsetting entry would be And remember, it's your costs, not what it's worth, but your costs that would go in as the inventory. And then the offset would be your investment or share. Are you a sole proprietorship?

Ca

Dr. Friday Radio Show – January 15, 2021

Dr. Friday Burke — Tue, 18 Jan 2022 22:29:19 +0000

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

Dr. Friday’s Tax Tips For the New Year

Real Estate Tips from Dr. Friday

Meal Cost For Business is 100% Tax Deduction

Capital Gains Tax for Married Couples

Why You Should Start Preparing for Tax Season

The Employee Retention Tax Credit

The Advanced Child Credit

Charitable Contributions for Married and Single People

Cryptocurrency and Taxes

RMD’s Are Back for 2021

Getting Back on Track With the IRS

and much more!

Transcript

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 Hey, I'm Dr. Friday, and the doctor is in the house. And hopefully, you guys are all staying nice and warm, because we have apparently a big cold front coming through. I'm gonna be quite honest, tonight, I plan to be going out. So I hope that it holds off until I get back because the Lion King is calling my name, my birthday present for my sister. And so we are going to go see it. So I'm hoping that it is still out there. And everyone's able to do it safely and looking forward to it.

Dr. Friday 0:56 So besides that, I think it's that time of the year when we get to chit-chat about finally my favorites. Finally, my favorite time of the year, is taxes, right? I'm probably one of the crazy people in the world that truly enjoys taxes, and I enjoy the challenges and the ability to try to do the best I can for my clients. And always I mean taxes are constantly changing, we have seen a ton of changes in the last year since 2020 2021. Now going into 2022.

Dr. Friday 1:28 So far, nothing in the first 15 days of the year, that's been major, but hold your breath there, maybe don't hold your breath, because I'm assuming there'll be some more things to come. If you want to join the show. It's easy if you've got questions, or if you're listening and have some situations, maybe you sold some real estate and you're looking to figure out how much money you're going to owe, I can give you some basic information here give you some idea of how to calculate possibly, especially if it's inherited or investment property impress property that you actually did do something along the lines of renting it out.

Dr. Friday 2:00 There are different types of calculation, we have recaptured depreciation along with the capital gains tax. So if you have a question, you can join the show. 615-737-9986 is my number here in the studio. And then obviously, if you want you can also email me at Friday@drfriday.com. Since what happened when you're multitasking friday@drfriday.com if you've got some questions. I know I got a couple of questions last week that I didn't actually answer on the radio. And sometimes some of the questions are too in-depth to actually take on to the radio.

Dr. Friday 2:46 But sometimes, there are some and again, a lot of people have sold real estate in the year 2021. And many of them it was either they sold real estate, their primary homes, and they brought those home for like 200,000 but sold them for nearly a million dollars. And in those cases, you do have situations where that's going to create a situation where the capital gains and the waiver on your primary home are still going to leave some money possible for you to actually still have to pay taxes, right?

Dr. Friday 3:19 Because we had that 500

Dr. Friday Radio Show – January 8, 2022

Dr. Friday Burke — Wed, 12 Jan 2022 21:45:32 +0000

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

Dr. Friday’s Tax Tips For the New Year

Start Preparing for Tax Season

Buying A Vehicle For Small Business

The Stimulus Check Taxes

The Advanced Child Credit

Charitable Contributions for Married and Single People

Cryptocurrency and Taxes

RMD’s Are Back for 2021

Getting Back on Track With the IRS

and much more!

Transcript

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. I'm Dr. Friday, and I am here live in-studio on this snowy Saturday. And if you have some tax questions, we all know it is tax time it is time where the forms are going to start coming in. Questions are so going to start and we're going to have to get going and start moving in the direction we need to do that.

Dr. Friday 0:48 So if you've got questions on your 2021 taxes, or maybe you're just sitting there thinking, "Okay, what do I need to get together? How am I going to get this all together? "You need to give us a call you can 615-737-9986 is the number right here live in the studio. And I know many of you guys are sitting at home listening to the show because there's not a lot of things happening outside with the snow went to take my trash out today. And you know what they told me the garbage wasn't coming out today.

Dr. Friday 1:21 So just saying, you know, a lot of people don't know what to do on these snowy days. But we all do. We lead some to taxes, and we start thinking about our taxes. And we try to figure out what do we need as far as forms. Remember, we had a stimulus check, as well as the advanced child tax credits, both of those, are going to be coming in this year.

Dr. Friday 1:42 And it's going to be coming as a letter and you're going to need to have that even if you're doing you're doing your own taxes. Or if you're having someone else do those taxes. There's a letter that the IRS sent out and they're going to tell you how much money you received. Because everyone's going to be asking that question. So even if you've never received any the IRS is still asking on the tax form.

Dr. Friday 2:08 You know, did you receive it what letter you know how much because sometimes parents share children, sometimes you're the grandparents and maybe last year you received it because you are grandparent this year, you didn't. So again, you're going to be receiving a letter and 6419 is the letter on it. And it's going to be telling people how much you received as an advanced tax credit. On the child credit.

Dr. Friday 2:33 You also received a stimulus check for $1,400 per person in the household. That letter also is going to be coming and telling you whether you received it or not. If you didn't receive it, you need that letter just as well because it's gonna say you did not receive it.

Dr. Friday 2:46 Alright, let's go to the phones. We've got Dan from Hendersonville. Let's see what Dan can do for us. Hey, Dan.

Caller 2:51 Hi, Dr. Friday.

Dr. Friday 2:53 What can I do for you on this snowy Saturday?

Caller 2:57 I sold some property rental property this year to a relative. And I gifted quite a bit of the equity. So my question now is do I pay capital gains on the gross amount of property, or the net min

Dr. Friday Radio Show – December 18, 2021

Dr. Friday Burke — Wed, 22 Dec 2021 16:02:27 +0000

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

Dr. Friday’s Tax Tips For the End of the Year

Taxes for Married Couples

Charitable Contributions for Married and Single People

Cryptocurrency and Taxes

Start Preparing for Tax Season

What You Should Consider Before Selling Your Home

RMD’s Are Back for 2021

How To Know If You Are Paying Penalties and Interests

Getting Back on Track With the IRS

and much more!

Transcript

Announcer 0:01No, 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 0:30Good day. I’m Dr. Friday, and I'm here live in the studio. So if you want to join the show, if you've got a question, now's the time to get on the line 615-737-9986. And I've got Will that's on the road. And why don't we go ahead and get him on the line? Hey, Will, what's happening?

Caller 0:54I enjoy your show. Question. Giving cash to dependents, how does the IRS know how much cash you're giving your dependents unless they audit you?

Dr. Friday 1:06Well, I think you answered your own question in all reality, unless you or your dependents or somebody that paid. And sometimes it can be wonky. I've had a gentleman that he had done something where he given a large chunk to his son, his son then turned around and purchase something.

And that person that he purchased from got audited, and it backtrack to the child and then the child said, “Well, my dad gave it to me,” kind of thing, nothing was illegal about it, it wasn't going to change anything for his father's taxes or his son's taxes, really, because in theory, right now, you can give the most what a million dollars or something to your family just have to file a gift tax return, which was the only thing that wasn't filed.

So in all honesty, it's not a huge area that the IRS is usually looking for in the normal everyday working family, we would never be able to give that kind of money away. But theoretically 15,000 per child per parent or whatever. So if the child's married, you could give 15 to him and 15 to his wife, or theoretically, if you have a wife and they can each give 15. But the only way that the IRS really knows is by auditing or back tracking through the someone else's finances to get to that number.

Caller 2:19Okay, I understand. I appreciate it.

Dr. Friday 2:21No worries, thanks for the call. I appreciate it drive safe. Alrighty, we are here live in the studio. And that was a great question. Because you know, right now, a lot of times parents are often thinking about, you know, I mean, it's estate planning, what should I do to help maybe a child is trying to buy a house, there are ways of helping and there are legal ways of just doing a gift tax return, it doesn't cost really anything all the way down the line, unless you're giving millions away but normal family, you want to give your daughter a $50,000 deposit for her home.

And you can do that, and you'll have to probably write a gift letter anyways, because for finance purposes, at least, and then and then you would have to do a gift tax return. That is really all there is to it, there would be no taxes do the only time taxes if there are any taxes is to the person that is giving the money not the person receiving. And the only reason the person t

Dr. Friday Radio Show – December 4, 2021

Dr. Friday Burke — Tue, 07 Dec 2021 22:07:19 +0000

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

Dr. Friday’s Tax Tips For the End of the Year

Charitable Contributions for Married and Single People

Cryptocurrency and Taxes

The Build Back Better Act

Why You Should Start Preparing for Tax Season

What You Should Consider Before Selling Your Home

RMD’s Are Back on the Table for 2021

What Is a Step-Up In Basis?

Should You File Married or Jointly?

How To Know If You Are Paying Penalties and Interests

How to Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 All right. I’m Dr. Friday, and we are living here in the studio. It’s a beautiful Saturday. Actually, it’s a little overcast. Hopefully, some of you guys will be going out to some of these Christmas parades. This year, I didn’t actually do afloat, we have decorated the house. But it’s a bit crazy, I got serious lights going on. But hopefully, everyone will enjoy the holidays and keep them safe for everybody.

Dr. Friday 0:53 But if you want to join the show, we are getting close to the time where we’re going to be getting ready to think about taxes again. And so I want to make sure that everyone if you’ve got questions if you haven’t filed your taxes now is a great time to try to set up an appointment in the next week or two before the holidays to see if we need to be getting some transcripts or if we need to be moving forward.

Dr. Friday 1:12 So that way we can try to make sure and if you have something different that happened this year, maybe you’ve done some sale of real estate or, you know, inherited or whatever, this is the time we need to double-check and make sure because January 15, I mean, that’s the last time to make your quarterly estimate for the year of 2021. And from that point on, we’ll go from where we have.

Dr. Friday 1:34 But if you want to join the show, you can at 615-737-9986. And we will take your calls online here live. So if you’ve got questions about that, we’re going to talk about some of the things you did.

Dr. Friday 1:53 Just covering a few of the things that maybe you know we’ve every year, it seems like in the last couple years, we’ve had some changes, some different things that have happened with tax law, some major ones, some smaller ones. And every year they like to add a few things or take a few things away.

Dr. Friday 2:07 So I just want to make sure one of the big things obviously in 2021, that changed directly from 2020 is the charitable contributions for everyone that does not itemize, we still have the line deduction of 300 per single and this year 600 for married. So again, that’s something that you have to deal with.

Dr. Friday 2:26 And RMDs, you do have to do your required minimum distribution. That’s kind of important, because a lot of times, especially last year with COVID, they did remove those you did not have to take your RMDs. And then we’ll talk a little bit about qualified charitable deductions using your RMD. And getting a dollar for dollar deduction by giving to charity, especially considering a large number of you guys do it all the time.

Dr. Friday

Dr. Friday Radio Show – November 27, 2021

Dr. Friday Burke — Thu, 02 Dec 2021 01:18:27 +0000

Welcome to the Dr. Friday Radio Show, where Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Dr. Friday’s Tax Tips For the End of the Year

Cryptocurrency and Taxes

What Is the Build Back Better Act

Why You Should Contact Dr. Friday Before Selling

Apply for PPP Forgiveness

RMD’s Are Back on the Table for 2021

Should I File Married or Jointly?

How To Know If You Are Paying Penalties and Interests

The Capital Gaines Tax Changes

How to Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:27 Good day, I’m Dr. Friday and the doctor is in the house and we are live today on this beautiful Saturday after Thanksgiving. I know many of you guys have probably enjoyed Black Friday a bit differently than when I was a child.

Dr. Friday 0:40 But then again, everything seems to change as we keep going. So we had some good time shopping, as well as then obviously, now we’re going to be doing a lot more on the internet, right cyber. So making sure one of the big things I want to touch on a little bit is every one of my clients, I promise you are many of them almost are all great people they give, especially during the season, and many people are buying things for like Angel trees, buying food for families that maybe aren’t able to have the same kind of Christmas or Thanksgiving that you were able to have.

Dr. Friday 1:14 So they’re giving and sharing those things. Now keep in mind that under the new tax law that the $600 for married couples and $300 for single individuals that’s above the standard deduction has to be cash. And that doesn’t include if you go out and buy clothing, gifts, whatever for Angel Tree that is not going to be qualified for that type of charitable deduction. Just put it out there nothing wrong.

Dr. Friday 1:44 I know myself, my sister, and I, we’ve probably got four or five bins for the angel trees that we’re working with. But just putting that out there that that is still a charitable contribution, but it would be considered non-cash because you’re actually buying something for them not giving cash. Same way as if you go out and you buy a lot of food for a food bank helping to make Thanksgiving or Christmas baskets.

Dr. Friday 2:08 Again, you are using cash for but you are yourself you are not a nonprofit yourself. And so you’re buying the food with after-tax dollars. And then giving that to the charity, the charity is claiming the food or the clothing. So therefore the money did not go through a 501 C three.

Dr. Friday 2:25 So just as a point and go fund me accounts kind of want to touch on those a bit. Because I know I have many clients especially at this time of the year, a lot of times they will go in and do a GoFundMe for different families in the neighborhood ones that are having health or medical issues. I have a client a case right now where one of my client’s significant others, set up a GoFundMe account for someone in their church that was having a really hard time.

Dr. Friday 2:55 And they were trying to get money for treatments. Long story short, she raised, I don’t know somewhere, I think it was around $25,000 on her GoFundMe. She physically wrote a check to those people. But she did not set it up as a nonprofit or ch

Dr. Friday Radio Show – November 13, 2021

Dr. Friday Burke — Tue, 16 Nov 2021 13:01:07 +0000

Welcome to the Dr. Friday Radio Show, where Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

Dr. Friday’s Tax Tips For the End of the Year

What You Need To Know About Cryptocurrency and Taxes

What Is the Build Back Better Act

Why You Should Contact Dr. Friday Before Selling

Apply for PPP Forgiveness

How You Could Qualify for College Credits

RMD’s Are Back on the Table for 2021

How Much Money Can I Gift My Child?

Should I File Married or Jointly?

How To Know If You Are Paying Penalties and Interests

The Capital Gaines Tax Changes

How to Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. So if you have questions concerning taxes or money issues, mainly taxes, I do love my taxes. And there are so many things going on. We keep hearing about some of them are just the Build Back Better plan, which we haven’t really had passed yet. But many things in that plan are going to have some major tax changes for us. So we will stay on top of that.

Dr. Friday 0:53 Talking a lot more about the cryptocurrency and the tax policy that’s going to follow along with that. So for all of us that might own cryptocurrency, how we’re going to make the bookkeeping practice, you know, education, how are we going to take certain credits on that, making sure we understand and know what’s going on is very, very important. So we just want to follow through with all of that.

Dr. Friday 1:16 And if you have any questions at all you can during the show. We are here live on this wonderful Saturday. 615-737-9986, we are taking your calls, talking about again, my favorite subject and soon to be your favorite subject because tax season is going to be here before you know it.

Dr. Friday 1:40 And so let’s talk a little bit about cryptocurrency. I have a large number of clients now more than I used to have. Well, I think there are a lot more people that are into cryptocurrency than used to be into the cryptocurrency and I have a whole number of you that are listening right this second saying, “Hey, I don’t want to tell anyone I have cryptocurrency it’s top-secret.”

Dr. Friday 2:00 It’s like when I was younger people would buy gold or silver. And they caught up, hid that away because that was going to be their emergency stash in case something happened in the world. And we were going to have to go back or lose our currency and what was going to happen. So it’s somewhat the same kind of thing because there wasn’t as much tracking done, especially in the beginning, right?

Dr. Friday 2:22 I mean, let’s be honest, if you lost your account number and cryptocurrency, you lost your entire fortune, it was not something that was going to be able to stay with us or do with us. But that is not necessarily the case any longer. Many of us have Bitcoin wallets, many of us have some other software that we can actually convert crypto into other types of currency or convert US dollars into crypto. So we have software.

Dr. Friday 2:47 And to be quite honest, I don’t think it’s as hidden or as unknown as it was at least 10 years ago. So if you’re a person that is big into cryptocurrency, k

Dr. Friday Radio Show – November 6, 2021

Dr. Friday Burke — Tue, 09 Nov 2021 23:13:59 +0000

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

Dr. Friday’s Tax Tips For the End of the Year

What You Should Know About the Consolidated Appropriations Act

What You Need To Know About the Advanced Child Credit

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

Certain Limitations Contributing to A Roth IRA

Standard Deduction Changes for 2020 Tax

The New Charitable Contribution Deduction

How To Know If You Are Paying Penalties and Interests

The Capital Gaines Tax Changes

How to Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 I’m Dr. Friday, and the doctor is in the house, we are here live. So if you want to join the show, you can 615-737-9986. We are taking your calls talking about my favorite subject taxes and money. We all know that there was a new bill passed for infrastructure just well, it’s on the President’s desk, I guess you would say it hasn’t fully passed. But it did go through the house, and the Senate and $1.9 trillion. Not a lot about taxes in there. Thank goodness, they didn’t put anything major.

Dr. Friday 1:06 There’s a few things but nothing that’s going to be on the day-to-day things that many of us are watching for, they’re still hoping to pass another bill, because they couldn’t agree on the total thing. So we’ll see if they’re going to pass a larger bill coming soon. But under this particular one is more for utilities and infrastructure, per se versus some of the other concepts.

Dr. Friday 1:30 So we’ll have to follow and stay in tune with that and see what we do have moving forward some of the things we do know, that have passed in the Consolidated Appropriations Act, and some of the other well, the three different bills that we had passed in the last year. And one of them was, of course, I was talking to one of my clients. And we were saying he’s saying, Well, I couldn’t write off any of my meals in the last year. So because you kept saying, well, Friday’s not tied to this.

Dr. Friday 1:57 And I will say under the newest tax law, they have extended meals for people that are entrepreneurs and business owners, this has nothing to do with individuals, but people that take their clients to lunch or to dinner, they are allowing 100%, which we’ve never had before, it used to be 50%. Because either way, they always said that the owner would have had to eat one way or the other.

Dr. Friday 2:21 But right now they’re using a 100% for 2021-2020 to one of the few things we’ll be looking at when we’re looking at reconciling people’s urine, paperwork, but you may have other questions, tax changes, or things that we’re looking to, maybe you’re looking at your 2021 tax bill, and you’ve sold real estate or even inherited some property, or money and you’re not sure what you need to use or pay for at that time, we need to be ahead of this. We don’t want to be waiting until tax season.

Dr. Friday 2:51 And then you turn around and you say, “Oh, wait for a second, I did have this” and “Oh, you do oh, this, we really would like to get that money paid earlier versus later.” If

Dr. Friday Radio Show – October 23, 2021

Dr. Friday Burke — Thu, 28 Oct 2021 15:44:33 +0000

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

Dr. Friday’s Tax Tips For the End of the Year

What You Should Know About the Build Back Better Act

How To Be Prepared for the Advanced Child Credit

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

Certain Limitations Contributing to A Roth IRA

Standard Deduction Changes for 2020 Tax

Am I Being Audited By the IRS?

The New Charitable Contribution Deduction

How To Know If You Are Paying Penalties and Interests

The Capital Gaines Tax Changes

How to Get In Touch with the IRS

Dr. Friday Talks About How to Get Back on Track With the IRS

and much more!

Transcript

Caller 0:00 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:28 Good day, I’m Dr. Friday and the doctor is in the house. We are all working on our last big weekend for the final numbers for the individual and corporate. If you’re less than 20, your due date is 10/15, which is next Friday. So now’s the time to hopefully sit in front of that computer, when it’s a little bit quiet, I hope, and make those numbers sing for you.

Dr. Friday 0:52 So that way, and I have quite a few people to be quite honest with you, I am in the process of working with many people or you know, my clients at least will email me things that are coming up with things that have changed. And there, you know, we have quite a few people that sold real estate, it’s that simple.

Dr. Friday 1:11 So quite a bit of real estate. And in doing so you may have created some tax situation, especially if it was rental real estate because rental real estate can usually have recapture of capital gains along with recapture of depreciation sorry, which is ordinary income plus the capital gains.

Dr. Friday 1:30 So we might need to make sure that you’re covering both of those so that you are ready when it comes few more months, and we get ready to start looking at doing taxes, that we’re not telling you that you owe another, you know, $50,000 in taxes.

Dr. Friday 1:45 I know in the last just today alone, I’ve had three people I’ve been working with clients that have sold real estate that has been rental real estate, and all of them have had some pretty good tax bills, one of them only paid like 40,000 and sold it for like 410,000. So obviously in those situations, you’re looking at some pretty big capital gains.

Dr. Friday 2:06 So if you’ve got questions because it’s not just straight across the board 15% If you’ve got questions, give me a call, you can do it here in the studio at 615-737-9866. Taking your calls, talking about pretty much all things when it comes to taxes.

Dr. Friday 2:25 So if you’re in the process of finishing your 2020s, or prepping for your 2021, you know that there’s going to be certain things like some changes, the standard deduction in 2021 is going to be 25,100 for married filing jointly 12,550 for single and 18,800. For the head of household. This is including inflation, so every year will go up a little bit, I do want to make sure individuals that are receiving the advanced child tax credit that you have prepared that information.

Dr. Friday 3:01 Especially, it’s just go

Dr. Friday Radio Show – October 9, 2021

Dr. Friday Burke — Tue, 12 Oct 2021 15:04:27 +0000

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

Tax Extension deadline Oct. 15 to file your tax return

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

FBAR Extention Until Oct. 15, 2021

How To Be Prepared for the Advanced Child Credit

Certain Limitations Contributing to A Roth IRA

Standard Deduction Changes for 2020 Tax

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

How To Know If You Are Paying Penalties and Interests

Tax Changes Done to the Capital Gains

The New Charitable Contribution Deduction

How to Get In Touch with the IRS

Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:21 Good day. I’m Dr. Friday and the doctor is in the house. We are all working on our last big weekend for the final numbers for the individual and corporate.

Dr. Friday 0:38 If you’re level 20, your due date is 10/15 which is next Friday. So now’s the time to hopefully sit in front of that computer when it’s a little bit quiet, I hope and make those numbers sing for you so that way. And I have quite a few people to be quite honest with you I am in the process of working with many people or you know, my clients at least will email me things that are coming up things that have changed.

Dr. Friday 1:05 And there, you know, we have quite a few people that sold real estate. It’s that simple. So quite a bit of real estate. And in doing so you may have created some tax situation, especially if it was rental real estate because rental real estate can usually have recaptured capital gains along with recapture of depreciation sorry, which is ordinary income plus the capital gains.

Dr. Friday 1:30 So we might need to make sure that you’re covering both of those. So that you are ready, when comes few more months and we get ready to start looking at doing taxes, that we’re not telling you that you owe another, you know, $50,000 in taxes. I know in the last just today alone, I’ve had three people I’ve been working with clients that have sold real estate that has been rental real estate, and all of them have had some pretty good tax bills, one of them only paid like 40,000 and sold it for like 410,000. So obviously in those situations, you’re looking at some pretty big capital gains.

Dr. Friday 2:06 So if you’ve got questions because it’s not just straight across the board 15% if you’ve got questions, give me a call, you can do it here in the studio at 615-737-9986, taking your calls, talking about pretty much all things when it comes to taxes.

Dr. Friday 2:25 So if you’re in the process of finishing your 2020s, or prepping for your 2021, you know that there’s going to be certain things like some changes, the standard deduction in 2021 is going to be 25,100 for married filing jointly, 12,550single and 18,800 for the head of household. This is including inflation. So every year, well go up a little bit.

Dr. Friday 2:51 I do want to make sure individuals that are receiving the advanced child tax credit that you have prepared that information. Especially, it’s just going to be a little confusing in my mind, because maybe I deal with a lot of peo

Dr. Friday Radio Show – October 2, 2021

Dr. Friday Burke — Wed, 06 Oct 2021 11:40:42 +0000

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

Tax Extension deadline Oct. 15 to file your tax return

How To Know If You Are Paying Penalties and Interests.

Have There Been Tax Changes Done to the Capital Gains?

The New Charitable Contribution Deduction

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

How to ensure your Stimulus Status

FBAR Extention Until Oct. 15, 2021

New Tax Increase In ETax and Cigarettes

How the Increase of Labor

Earned Income Credit for taxpayers with Non-Qualifying Children

How To Get Back on Track With the IRS

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can share a cure for your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:28 Good day, I’m Dr. Friday and the doctor is in the house. So if you’ve got tax questions, we all know that October 15 is just around the corner. And it is time for all of you procrastinators, which usually includes me this year, I did manage to get mine done before October 15.

Dr. Friday 0:44 But been there done that, you need to be able to get your taxes filed on time. And remember, it doesn’t extend the money you owe. So one of the hardest thing is always to, you know, explain to people, “You owe this and there’s going to be penalties.”

Dr. Friday 0:59 Your money is due on or before April 15. Normally in the normal worlds where we don’t have all these extensions and things. And then if they do give us an extension, an actual federal extension like we had one because of storm damage and things like that many people in Nashville, Williamson County, Davidson had until August 2, right?

Dr. Friday 1:20 And there wasn’t going to be a penalty if you hadn’t paid like normally in April. But at this point, anything you haven’t paid after that August 2, assuming that you were not in that extension, you are now paying penalties and interest. Assuming you have a legitimate extension, you will not pay a late failure to file a penalty until after October 15.

Dr. Friday 1:43 They’re still going to get you to fail to pay on time failing to make quarterly estimates all kinds of other failures to do. But that one is one that you really do want to have. Because most of the other ones are like point 5%, when you get a failure to file, it is 5% per month up to 25%. So that was really, really painful.

Dr. Friday 2:05 So just wanted to put that out there. If you’ve got questions, or maybe you’ve been following a little bit about what’s happening in the news as far as what’s kind of passed the house, and now they’re looking at some proposals of what they’re going to do. They keep calling these changes that they’re doing that they’re not going to affect the middle class, which is obviously what Biden ran on.

Dr. Friday 2:27 And the thing is, he ran on he wasn’t going to do proposals that were going to be over, it wasn’t gonna affect anyone unless you make $400,000 or more. But yet, a couple of things that are now on the table, of course tax unrealized capital gains, some other ideas of mainly the capital gains tax.

Dr. Friday 2:49 They’re also going to hit some new taxes that they have out there raising cigar

Dr. Friday Radio Show – September 25, 2021

Dr. Friday Burke — Mon, 27 Sep 2021 19:14:14 +0000

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

Tax Extension deadline Oct. 15 to file your tax return

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

Letter 6470 from the IRS about the Recovery Rebate Credit

The New Charitable Contribution Deduction

The IRS Using Collection Agencies

How to ensure your Stimulus Status

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

Changes in the tax law for Real Estate Professionals

Donating a commercial property and how to appraise

Cryptocurrencies and how to track for tax purposes

Cryptocurrencies and wash sales

Veterans and Taxes

Capital Gaines in the sale of Motorcycle, Airplane or Boats

Earned Income Credit for taxpayers with non-qualifying children

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

Catching up if you’ve fallen behind in your taxes

and much more!

Transcript

Announcer 0:00 No, no, no, she’s not a medical doctor, but she can share cure your tax problems or financial woes. She’s the How-To Girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29 Good day, I’m Dr. Friday and the doctor is in the house. So if you’re working on your tax return, remember October 15 is our deadline. So many of us are working through the weekends, trying to make sure everybody’s taxes are done and completed. So if you haven’t done your taxes yet, probably now would be the time to start thinking about them. You don’t want to wait to the very, very last minute, you know. You can always wait until the last second to hit the send button. But you do want to get them prepared. So you can at least see what you have or what’s going on.

Dr. Friday 0:56 So there you go. So you want to make sure so if you’ve got questions, you haven’t filed your 2020 taxes yet… this is the show you want to call 615-737-9986.

Dr. Friday 1:10 I thought I’d start off the show a little bit with some new information about what’s coming down the line from Congress. The infrastructure bill, excuse me, is being debated. Obviously, we all keep hearing about it. 3.5 trillion something along that line. Interestingly enough, I got this from my bank. And they’re basically saying that part of this bill will be that the United States Congress contains a proposal that would require financial institutions to report to the Internal Revenue Service, the IRS, the amount that flows through account holders that have more than $600. So now we’re going to start reporting… this kind of reminds you of Greece when they started charging the tax on people that held money in the bank. They’re now going to have the IRS be notified if anyone has more than $600 in their bank at any given time. Now, I mean, let’s be honest, that’s would be a very large number of people in society. So it says money that flows through an account for more than $600. Paychecks. You know, a lot of things would be over $600. So this is part of that infrastructure bill that they keep trying to say isn’t going to do anything but give us a better type of roads, better internet. You know, they keep trying to sell us, but what kind of personal information are we losing, by having this pe

Dr. Friday Radio Show – September 18, 2021

Dr. Friday Burke — Wed, 22 Sep 2021 13:41:12 +0000

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

Tax Extension Deadline Oct. 15 To File Your Tax Return

Operating Businesses Tax Extention Deadline September 15, 2021

Quarter Estimates due September 15, 2021

Apply For Forgiveness For PPP Loan

Returns for C corporations That Are On a Calendar Year Have Now Been Extended to October 15, 2021

How To Verify Your Identify With the IRS

The Current Capital Gains Rates

Is the $300 Charitable Deduction for 2021?

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

and much more!
Transcript
Announcer 0:00 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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:26 Good day, I’m Dr. Friday and the doctor is in the house. We’re having a wonderful Saturday around here. All kinds of things getting finished and completed. As we know, if you had an 1120 S or a 1065, you were now late if you have not filed your 2020 returns, those were due on 9/15.

Dr. Friday 0:45 So not single members, or LLC or sole proprietorships, or individual tax returns. Those are now due October 15, along with normal 1120 tax returns. So all of that being said, if you haven’t filed your 2020 tax return, you need to get an appointment fast if you’re trying to get in with my firm. Or if you do it yourself, you need to get them ready and file don’t wait till the very last minutes because there’s a likeliness that you will not get them filed on time. And then the penalties can even be worse than not filing in the first place.

Dr. Friday 1:17 So you know, I mean, it’s like a 25% penalty if you actually don’t file on time. So filing with an extension, if you do not have an extension you’re already late. So sooner you file better it’s going to be so if you have a question and you need it, maybe you’re working on that, or maybe you’re actually pre-empting, your 2021 taxes, what a concept.

Dr. Friday 1:39 You can join the show 615-737-9986. We are taking your calls here in the studio. If you have some questions concerning taxes, or maybe something that’s come along, maybe you’ve inherited property and you’re selling it or you’ve sold rental properties, you want to sell your primary home and you’re not too sure what your taxes may or may not be, this would be the time to try to get at least the right basic answer which direction to go, everybody’s got a slight difference.

Dr. Friday 2:08 But that is all based on percentage of income so we can get you pretty close to what you need. So again, the phone number here in the studio is 615-737-9986. All right, so we’re going to talk a little bit about, as I’ve told you, in the last couple shows.

Dr. Friday 2:25 The fact is we’ve had several taxes, we’ve got the American Rescue Act and the consolidated appropriation act of 2021. We also had the Families Act, the economics for Families Act are going to be as follows. One of the reasons this is kind of important is there are some big changes that affect people with children, obviously.

Dr. Friday 2:46 So the child tax credit will be fully refundable under this new Act, which came in effect for 2021. And the amount would increase from $3,000 per child to 3600 for children under t

Dr. Friday Radio Show – September 11, 2021

Dr. Friday Burke — Wed, 15 Sep 2021 16:09:43 +0000

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

Tax Extension Deadline Oct. 15 To File Your Tax Return

Operating Businesses Tax Extention Deadline September 15, 2021

Quarter Estimates due September 15, 2021

Returns for C corporations That Are On a Calendar Year Have Now Been Extended to October 15, 2021

Apply For Forgiveness For PPP Loan

How To Verify Your Identify With the IRS

Why You Need To Adjust To Your W4

What Are The Current Capital Gains Rates?

Is the $300 Charitable Deduction for 2021?

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

Tips On How To Lower Your Taxes

and much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house and we are here live. So if you do want to join the show, you can pick up the phone at 615-737-9986. That’s a number here in the studio. Many of you are probably working this weekend possibly like I am because this is the last big weekend before tax season.

Dr. Friday 0:53 For businesses, it’s going to be here on September 15, which is next Wednesday is the final day. If you filed an extension on a corporation and LLC, trust in some cases 1120, 1120 S, and 1065 are the main ones. And if you file any of those, and you follow the extension, this coming Wednesday, 9/15 will be the deadline and so many of us are working on tax returns this weekend to make sure that they get filed on time.

Dr. Friday 1:22 And if you’ve got a question or if you’re in the process of filing one and you’ve come across something you need to ask feel free to give us a call again here in the studio at 615-737-9986.

Dr. Friday 1:35 I have been taking quite a few appointments this week, talking to people that are trying to figure out 2021, we’re already three-quarters of the way through almost. And there’s a lot of talk of what’s happening back in the House and the Senate.

Dr. Friday 1:50 Just to bring up to date for some of the people that may not follow everything happening there is that you have the ability to Secure Act that passed in 2019. And then there, of course, they changed a few things for IRAs and workers. But now there are some more proposals in front of the House and the Senate that will even go further than what happened on the Secure Act.

Dr. Friday 2:13 Of course, one of the proposals is raising the age for taking minimum distributions from 72, which is what happened in the Secure Act up to the age of 75, which means you can leave your money longer in an IRA, let it grow. And then that way you would be able to sorry about that guys, let it grow longer. And that means your mandate to take it out of an IRA would be longer.

Dr. Friday 2:39 So it was 70, it went to 72. And now they’re trying to approach the age of 75. Also allowing more part-time to participate in 401 K’s enhancing tax credits for small business owners that had the workplace and letting people age 60 and older to contribute still to a 401k. And expanding the charitable contribution.

Dr. Friday 3:03 The qualified charitable deduction or distribution, I think is a pretty well unknown text to break for people that are taking RMDs. Mo

Dr. Friday Radio Show – August 28, 2021

Dr. Friday Burke — Tue, 31 Aug 2021 12:07:18 +0000

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

Tax Extension Deadline Oct. 15 To File Your Tax Return

Operating Businesses Tax Extention Deadline September 15, 2021

Apply For Forgiveness For PPP Loan

How To Verify Your Identify With the IRS

Why You Need To Adjust To Your W4

What Are The Current Capital Gains Rates?

Is the $300 Charitable Deduction for 2021?

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

Tips On How To Lower Your Taxes

and much more!
Transcript
Announcer 0:00 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 at 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 and we are live here on Saturday, this wonderfully sunny, I guess is the proper term. It’s a really nice Saturday outside, I’ve been working all day. But I did get a chance to go out earlier. And it’s very nice.

Dr. Friday 0:44 So hopefully you guys are enjoying your Saturday. And if you have any tax questions, we all know we’re coming up on another deadline here. Now, most of us already hit the, I guess you would say, one deadline of August 2. Now the next one is going to be the true extension deadline date, which is October 15. For individuals, all operating businesses are going to be on September 15. So those are coming up. And you know, before you know it, you’ll also have your third estimated payment, which is going to be due on September 15, unless something changes. So making plans.

Dr. Friday 1:16 You know, there’s a lot of changes every year. And I think this year, maybe more than some because of the real estate market here in Tennessee, I have had an out rageous number of individuals that have decided to sell either a rental property or second home, a primary home. And so you’re going to be looking at some tax changes that you might not normally have in your situation. So that would be one of those times when it’s between the crazy seasons, to talk to your tax person, and make sure that you’ve set enough money aside for the potential of capital gains. So that way we know.

Dr. Friday 1:58 Right now capital gains rates are zero if you’re in the 15% tax bracket, which is kind of now the 12th. Then it goes to 15%, then it’ll go to 18.8%, and then it’ll go to 23.8. And that pretty much when you hit over 400 and some up 460,000s when you’re maximizing that for a married couple.

Dr. Friday 2:21 So that will be something you need to be looking at making sure you understand. And if you have questions about that, or maybe you’re just getting ready to start thinking about changes that might be happening, changing of jobs, many people are relocating to different areas, it seems like. These can also cause some tax changes if you get a job that makes more money. It’s a good problem to have, but it can’t happen.

Dr. Friday 2:44 And you can reach us here, the radio phone number is 615-737-9986. And we can take your calls here live. Again, if you’re dealing with any of those. I took a meeting earlier this week with someone that was– another thing. When you’re selling real estate a lot of times in some cases, you might have a lot of leftover furniture goodwill, per se, items. And how do you track that? And is it even going to be a tax deduction

Dr. Friday Radio Show – August 21, 2021

Dr. Friday Burke — Tue, 24 Aug 2021 14:11:12 +0000

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

Tax Extension Deadline Oct. 15 To File Your Tax Return

Operating Businesses Tax Extention Deadline September 15, 2021

Do I Have To Claim Child Tax Credit?

Current Capital Gains Rates

Is the $300 Charitable Deduction for 2021?

If You Did Not Receive A Stimulus Check, Claim It On Your 2021 Tax Return

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

Apply For Forgiveness For PPP Loan

Tips On How To Lower Your Taxes

and much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Hey, I’m Dr. Friday and the doctor is in the house on this really, really stormy Saturday. I don’t know if any of you, I know a lot of my clients actually have pets. And as you guys all know, I have Great Danes, and my biggest, Zar, my largest one is six and he does not like thunderstorms. So he is all buried in his blankets and underneath his head. It’s hilarious. But he is definitely not the one for the thunder. So every once in a while, it rumbles through, he is looking at me like, “What is going on Mama?” So just feel for you guys, if you’ve got pets because obviously there’s not much they can do, they can only look at us and say “Keep me safe.” And so we try.

Dr. Friday 1:11 So if you’ve got questions, you can call 615-737-9986. And Lavidious, if you can get that other screen, so I can see my callers, that would be great. Um, you can also join the calls and move forward on that one. If you’ve got some questions, this will be the easiest way to do it. But you can also email friday@drfriday.com.

Dr. Friday 1:39 This week has been even though I know lately, there have been quite a few different people, as of 7/15 or July 15, individuals have been getting the child credit. I’ve received a ton of calls from the individuals that either should be getting it that aren’t or individuals that don’t want to get it but they’re not able to get online and actually turn it off. One reason is they actually have to both the husband and wife to do it. Or they can’t even get access online for that. So there isn’t at this moment, there is not a telephone number that allows you to do it. This is what I will tell you and what’s been coming down, you know, down the line from the IRS.

Dr. Friday 2:24 If you are not entitled to the child tax credit, you can either return it to the IRS. And I would make sure you keep very good records on how you do that so that the IRS doesn’t try to turn around and make you pay it on your tax return. Because whoever is receiving it, when it comes time to actually do your taxes, you are going to be claiming that on your tax return. So if you do not have a child and you’re getting it because, in 2020, you did have a child that qualified you. Or if keep in mind, this is an advance on the child tax credit. It is not like a person, you either need to give the money to the correct person and/or you need to have that conversation because I know what’s going to happen.

Dr. Friday 3:14 Come tax season I’m going to have the head of household parents that did not receive it, and they’re going to claim it on their tax return. And then the individual

Dr. Friday Radio Show – August 7, 2021

Dr. Friday Burke — Tue, 10 Aug 2021 11:59:08 +0000

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

Tax Extension Deadline Oct. 15 To File Your Tax Return

Operating Businesses Tax Extention Deadline September 15, 2021

Current Capital Gains Rates

Are The Latest Tax Changes Permanent?

How To Sell Real Estate Without Paying Taxes

What Are The American Rescue Plan Act and the Consolidated Appropriations Act of 2021?

Apply For Forgiveness For PPP Loan

Tips On How To Lower Your Taxes

Tax Extension Deadline Oct. 15 To File Your Tax Return

The Latest Biden Campaign Tax Changes

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

and much more!
Transcript
Announcer 0:00 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 at 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 and we are live here on Saturday, this wonderfully sunny, I guess if this properly term. It’s a really nice Saturday outside. I’ve been working all day. But I did get a chance to go out earlier. And it’s very nice. So hopefully you guys are enjoying your Saturday. And if you have any tax questions, we all know we’re coming up on another deadline here.

Dr. Friday 0:50 Now, most of us already hit the I guess you would say the one deadline of August 2. Now the next one is going to be the true extension deadline date, which is October 15 for individuals. All operating businesses are going to be on September 15. So those are coming up. And you know, before you know, you also have your third estimated payment, which is going to be due on September 15 unless something changes. So making plans.

Dr. Friday 1:16 You know, there’s a lot of changes every year. And I think this year, maybe more than some because of the real estate market here in Tennessee. I have had an outrageous number of individuals that have decided to sell either a rental property or a second home, a primary home. And so you’re going to be looking at some tax changes that you might not normally have in your situation. So that would be one of those times when it’s between the crazy seasons, to talk to your tax person. And make sure that you’ve set enough money aside for the potential of capital gains, you know, so that way we know.

Dr. Friday 1:58 Right now capital gains rates are zero, if you’re in the 15% tax bracket, which is kind of now the 12 and then it goes to 15%, then it’ll go to 18.8%, and then it’ll go to 23.8%. And that is pretty much when you hit over 400 and some up 460, 000s when you’re maximizing that for a married couple. So that will be something you need to be looking at making sure you understand. And if you have questions about that, or maybe you’re just getting ready to start thinking about changes that might be happening changing of jobs.

Dr. Friday 2:33 many people are relocating to different areas, it seems like these can also cause some tax changes if you get a job that makes more money. It’s a good problem to have, but it can’t have.

Dr. Friday 2:44 And you can reach us here, the radio phone number is 615-737-9986. And we can take your calls here live. Again, if you’re dealing with any of those. I took a meeting earlier this week. With someone that was–another thing– when you’re selling real estate a lot of t

Dr. Friday Radio Show – July 31, 2021

Dr. Friday Burke — Tue, 03 Aug 2021 16:30:42 +0000

Another episode of the Dr. Friday Radio Show is here! In this podcast, Dr. Friday takes on the latest tax updates, answers callers questions, and talks over the following topics:

What Are The American Rescue Plan Act and the Consolidated Appropriations Act of 2021?

Apply For Forgiveness For PPP Loan

Tips On How To Lower Your Taxes

Tax Extension Deadline Oct. 15 To File Your Tax Return

When Can I Apply For Forgiveness for Second PPP Loan?

The Latest Biden Campaign Tax Changes

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

Can I Make A Deal With the IRS?

and much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. We are live here on this beautiful Saturday. And if you want to join the show, all you have to do is pick up the phone and call 615-737-9986. We are taking your calls live.

Dr. Friday 0:49 Maybe you’re thinking about taxes. You’ve probably heard me on either here or even on NewsChannel 5 talking about the August 2 date, which is Monday for anyone that lives in most of the surrounding counties, Williamson, Maury, Davidson, all of these counties would have been on a federal extension, which means that if for some reason you did not file an extension back in April, or you did but you owe money, now would be the time to make sure that payment is posted by Monday. So that way, you may find that your penalties and interest will be quite a bit lower than what you would have had if you wait till October at this point. So think about that. So that way you have something to possibly save.

Dr. Friday 1:35 And you probably heard but they did not extend the extension for landlords for, I should say renters, actually. So now landlords will be able to start doing evictions, which I’m sure there are people on both sides, that table but being a landlord and people, you know, having had people live in your home without paying rent or getting very minimal amounts from the government not to offset your own mortgage. So many landlords at this moment have had to put their home mortgages on hold, which means they’re not moving forward. And in some cases, the banks have actually caused, you know, because the money’s in the landlord’s name, not the renter’s name, that house could become jeopardized for that. So I think that was a good move.

Dr. Friday 2:21 So if you have renters that are not paying, and I have been extremely blessed, that I would suggest getting out there as soon as possible, because they may change that rule again. But for the next six weeks, since they’re not in the office, I would say that you have time to make sure that your renters are actually paying rent.

Dr. Friday 2:41 Alright, so if you’ve got questions. Again, we have taxes, and we’ve had quite a few tax laws that have changed in the last year, we had the American Rescue Plan Act and the Consolidated Appropriations Act of 2021. And those are both under Biden, and many of them have temporary situations that will only affect the year 2021.

Dr. Friday 3:07 One of the biggest ones because I know come July, or you know what you guys all received, or many of you that have children, would have received your first installment for the Child Tax Credit or the Dependent Care Credit. And that is just for most people, that is a temporary situat

Dr. Friday Radio Show – July 24, 2021

Dr. Friday Burke — Wed, 28 Jul 2021 17:03:13 +0000

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

How To Audit and Proof Your Business Documentation

Tax Extension Deadline Oct. 15 To File Your Tax Return

Tax Deadline Extension to Aug. 2 for Victims of Tennessee Disasters

Why You Should Pay Quarterly Taxes as an Entrepreneur

Can I Make A Deal With the IRS?

When Can I Apply For Forgiveness for Second PPP Loan?

The Latest Biden Campaign Tax Changes

Tax Returns Are Beginning to be Distributed

Reasons Why You May Not Have Received Your Stimulus Check

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

and much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29 Good day, I’m Dr. Friday and the doctor is in the house. So if you’ve got questions, remember, if you haven’t filed your taxes yet, and you have a balance due, we have until, many counties I should say not every county in Tennessee, but most of the ones surrounding us, Davidson, Williams, and Murray all of us had till August 2, as a federal exclusion because of storm damage and things.

Dr. Friday 0:50 So if you haven’t, now’s the time to really try to prepare those taxes. Don’t wait until October, which is when your extension is good. Get it done early. So maybe you can actually waive some penalties and not get hit as hard as it is. People are always so shocked by how much money can cost. I mean, I do a lot of people’s taxes that we’ve done for six, seven years back most of the time, a minimum of six years, we have to go back. And you know, if you owe $3,000, you might as well figure in six years, you’re likely to owe $6,000 with penalties and interest.

Dr. Friday 1:25 There is some possibility of waiving some penalties, but in most cases, there isn’t a legitimate reason, you know, lifeless, difficult things happen. But there’s really no reason why back six years ago, you couldn’t have filed within the last six years. And so that’s what the IRS is looking for. If there were some reasons that there’s an explanation, otherwise, they may waive one out of the six years. But other than that, they may not because you may not have been actually even a good filer prior to that. So they’re looking at people that you know, “Hey, you know, I made a mistake once I did this or whatever.”

Dr. Friday 2:00 And yeah, they’re looking at that history. But otherwise, they’re looking at the fact that you might actually owe that money. And they’re like, “Well, you have it, you paid it.” And so often people come in and you know, I love the ads that are often running on the radio shows and things. And many of them turn around and they say things like, “Well, we can negotiate you 10 cents on the dollar.”

Dr. Friday 2:21 Well, that is true, we’ve made some awesome deals, I’ve had people that are owed hundreds of 1000s of dollars, and paid minimally, I mean, like 1%, you know, I mean, less than $10,000 or $1,000. Um, but it’s not the everyday situation. If you’re sitting with a house, and this is fairly new, the last couple of years, the IRS has gotten a bit smarter. But if you’re sitting on a house with equity, even if you can’t get the e

Dr. Friday Radio Show – July 10, 2021

Dr. Friday Burke — Thu, 15 Jul 2021 14:08:17 +0000

Welcome to the Dr. Friday Radio Show! In this episode, you’ll get to listen to Dr. Friday talk about the latest tax updates, answers callers questions, and talks over the following topics:

How To Audit and Proof Your Business Documentation

Tax Deadline Extension to Aug. 2 for Victims of Tennessee Disasters

The Latest Biden Campaign Tax Changes

Why Have I Not Received My Tax Return?

Biden’s Top Federal Tax Rates For Long-Term Capital Gains

Why You May Not Have Received Your Stimulus Check

Do You Have An IRS Issue That You Need Help With?

Do You Need Help With Tax Representation?

and much more!
Transcript
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 at 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. Hopefully, you guys are staying safe there in the area. And if you’ve got questions about taxes, I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation, which basically means, guys, all I do is taxes or dealing with the Internal Revenue Service.

Dr. Friday 0:50 So if you haven’t filed taxes in a number of years, if you’re trying to figure out where to get started. And I know many, many, many of you are listening right now and you’re just trying to figure out, “Hey, I filed my taxes on time, I get everything I’ve done every other year, and yet I still have not received my stimulus or my refund.” If that’s the case, we’ll see if we can give you a little bit more help.

Dr. Friday 1:13 I’m not going to say it’s going to be a ton because I’m going to be quite honest with you guys, the IRS is not giving us any response on what we should be doing. I’ve been giving out phone numbers. Some people have been able to get through, but they’re being told very similarly to what is on the website. So we’re gonna have to see what we can do to help you out.

Dr. Friday 1:33 If you want to join the show, you can call 615-737-9986. We are taking your calls talking about all of my favorite subjects, taxes. If you’re trying to figure out if you may be inherited or should you or should you not sell something. Right now I know there’s a big conflict going on in my world as far as when I say my world with taxes and things because Biden is talking about increasing capital gains taxes. And then we’re also talking about a lot of people getting some pretty good deal on selling things. So if you’ve got questions, call 615-737-9986. Let’s get to Ann. Ann’s on the line. What can we do for you, Ann?

Caller 2:23 Hi, my mother-in-law is 93. We had to move her to nursing assisted living. She lived on a farm got 35 acres of farmland. Bought it in 1963 for $1,000. Gonna sell it for about $150,000. She didn’t pay taxes in many years because there’s been no income. Now, how much money will she owe on this when we sell it?

Dr. Friday 2:48 Well, I would do one of two things. I don’t know if she has the ability to do it in a split sale. I mean, theoretically, she’s looking at basically 15% that’s what her tax is going to be. And since she pretty much had no real cost to it. There may be a small step up in basis with her lived there with her husband, but he may have died many years ago. I mean, she’s living a nice age.

Caller 3:18 He died 11 years ago.

Dr. Fri

Dr. Friday Radio Show – June 19, 2021

Dr. Friday Burke — Tue, 22 Jun 2021 16:38:27 +0000

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

How To Audit and Proof Your Business Documentation

What To Do If You’re Receiving Letters From the IRS

How You Can Make A Deal With the IRS

How the IRS Decides If You Can Afford To Pay Them

Why Entrepreneurs Should Be Paying Quarterly Taxes

Why Have I Not Received My Tax Return?

Reasons Why You May Not Have Received Your Stimulus Check

How Many Years of Taxes You Need To File To Get Back Into Compliance With the IRS

Do You Have An IRS Issue That You Need Help With?

Are There Advantages To Spreading Your IRA of 401K?

Do You Need Help With Tax Representation?

What Changes Is The Biden Campaign Making?

and much more!
Transcript
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 at 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. We are live here today. So you can join us at 615-737-9986. I am an enrolled agent licensed by the Internal Revenue Service to do representation and taxation. So guys, that’s pretty much what I do. So if you haven’t filed taxes, or you’re getting all those love letters, there’s liens, levies, and you’re tired of it. Guess what, there’s someone local here in town, not one of those national advertisers. There’s someone here you can sit down face to face, and we can find a resolution.

Dr. Friday 1:09 I’m gonna be honest, I’m always straightforward with my clients. This just basically means if you can make a deal with the IRS, we will make a deal with the IRS. But if you’re not able, because of Home Equity, 401k equity, you have the money you’re inheriting or you have a second house, then the logic is you can pay someone all you want, but they’re not going to ever get a true offer and compromise through. But we could resolution in other ways. So if you’re interested in doing that, or you’ve got questions about letters you may have received, and I’m sure we’ve got listeners right now that have some questions about where in the good book is my stimulus money and or refund?

Dr. Friday 1:50 And I’m gonna be honest with you guys, there is no easy answer on that particular one. But if you want to join the show, or if you have received, you know, your refunds and you have been waiting for a long time, it might be reassuring for other people to hear and say, “Hey, I waited 60 days, but I finally got my stimulus money.” That would be awesome. You can reach us here at 615-737-9986. And let’s go to Pat in Marshall’s. Nashville, sorry. I’m like reading that sideways. You had to be there. Hello, sweetie.

Caller 2:23 Hey, how are you? My husband and I are having a complication. My husband had changed his job last year, his job ended in March and because of COVID and everything he went and you know, be he was going to turn full retirement age in July of last year. So he went and applied, didn’t enroll. But I mean, he applied to get his full benefits four months down the road. He went and applied for Social Security and they forced him to take Medicare Part A causing the last seven months of his HSA contributions to be eligible.

Caller 2:59 So we had to back out of everything, the employer wouldn’t contribute to the fix in the first ye

Dr. Friday Radio Show – June 12, 2021

Dr. Friday Burke — Thu, 17 Jun 2021 14:02:36 +0000

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

What Is the Best Business Type for Taxes?

The Difference Between Each Business Tax

Why Have I Not Received My Tax Return?

Reasons Why You May Not Have Received Your Stimulus Check

How Many Years of Taxes You Need To File To Get Back Into Compliance With the IRS

Do You Have An IRS Issue That You Need Help With?

Where To Find the Best Social Security Advice

What Taxes Payments To Make If You’ve Sold Property or Inherited Property

Second Quarter Payments Due On June 15, 2021

Do You Need Help With Tax Representation?

The Best Way To Convert To A Roth IRA From An IRA

and much more!
Transcript
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 at 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. We are here live on this wonderfully warm, boy is it warm, Saturday. And life is definitely getting interesting. I’m sure some of you guys may even have some questions. Maybe you’ve gotten some of the letters from the IRS. We’ve been really busy here with either IRS or state. A lot of times people haven’t done quite everything, like renewed their annual reports or their business licenses. And they’re getting those notices. So if you’ve got a question on those or anything else, all you have to do is give me a holler. Meanwhile, it looks like we have Mike on the line. Let’s go ahead and hit Mike.

Caller 1:08 Thank you for taking my call.

Dr. Friday 1:10 Thanks for calling. What can I do for you?

Caller 1:13 I’m an executor of a will and the deceased person died in February 2020. And only had ten months of taxable income of $1,027. I have an employer ID number for that account. Do I need to file since it was only $1,027?

Dr. Friday 1:36 Well, I will tell you that normally when I’m handling them, I’ll always filed the last year no matter what. It will most likely be a zero effect, you know, obviously, unless there was some withholding on that money. But more just because on the tax return, it will ask you for the data passing and you can put that on there and close those forms off.

Dr. Friday 1:55 I know that the IRS is, you know, Social Security and everything has already been turned off if they hadn’t even, but they’ve been probably notified. But it’s just part of my process, I always just file a final. And if they were receiving any kind of Medicare benefits, maybe they were in a nursing home or something if there was a Medicare, I always get a waiver from them as well with filing that so that way I make sure that I can close those off. And then you know, I don’t know the size of the estate or anything, just those but it’s not mandated. You don’t have to with that small dollar amount, you know.

Dr. Friday 2:27 Unless it was 1099 miscellaneous would have been the only time that I can think of where there may have been taxes due if they were working self-employed. Otherwise regular income coming in ordinary income or capital gains income, there would be no reason that you have to file it.

Caller 2:43 Okay, thank you. I had closed everything off, you know, a couple of weeks after she had passed away, so.

Dr. Friday 2:50

Dr. Friday Radio Show – June 5, 2021

Dr. Friday Burke — Tue, 08 Jun 2021 16:00:41 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday shares all the latest tax updates, and talks over the following topics:

Updates On Tax Return Status

The IRS Is Holding Refunds for EITC

What To Do If You Haven’t Received Your W2 From Your Employer

Get Forgiveness For Your PPP Loan

What Taxes Payments To Make If You’ve Sold Property or Inherited Property

How To Flip A Home Without Paying Taxes

Second Quarter Payments Coming Up On June 15, 2021

What’s The Difference Between EIDL and PPP Loans?

Do You Need Help With Tax Representation?

Tax Extensions Expires October 15, 2021

How To Find Your Stimulus Check

and other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is live-in house. So if you’ve got questions you can join us today at 615-737-9986 is the number here in the studio, you can give us a call, let you know what’s happening. Probably the biggest thing that’s been happening more than anything is phone calls to my office asking about updates on tax return statuses. You know, once a day, at least you know everything. I have a guy that says, “Every day I check once a day at 6 a.m.” He emailed and said no status change just says that they’re processing.

Dr. Friday 1:11 I am going to say the IRS is holding refunds for the EITC, which is the earned income which some people isn’t always available to them, they may have claimed them in the past, maybe they’re not supposed to. Also, for the EIDL loan or the stimulus money that you may have been requesting. Again, they have to match it up because in some cases, maybe the money was provided to an ex-spouse and was received in cash. In some cases, children that were claimed in one year, and then claimed by another spouse or person in the next year, the person that reclaims in the first year got the money the other person filed on their tax return said they never received the money. So who’s supposed to get it and when? You know, and the IRS is kind of coming back and saying if this happened if for some reason your spouse playing the children.

Dr. Friday 2:07 And some of my clients claim every even year and then their spouse does every odd year. And if you didn’t file your taxes as fast as possible, or even if you have the money came out like on March 12, or 15th was when they started issuing the third stimulus. And then the second one was like December 29, or something like that. So they base them on the prior year. Even though a lot of people think of the second stimulus as a 2021 stimulus, it was still based on 2019 tax returns is still based on 2019 tax returns. And then 2020, which we filed on or before May 17, was then moved on to that section. So it really just comes down to the government’s basically not going to get between husbands and wives or people that have divorced and have children. They’re pretty much coming up straight out saying, “This is the situation, this is how we’re going to deal with it. We’re not going to if the money is already been cashed to provide it to for those children.”

Dr. Friday 3:17 And then I’ve got other people that say, “Yeah, my husband got it, and then I got it again.” So I don’t know how that’s going to come back. If there’s going to be any recourse aga

Dr. Friday Radio Show – May 22, 2021

Dr. Friday Burke — Tue, 01 Jun 2021 00:54:55 +0000

Another episode of the Dr. Friday Radio Show is here! In this episode, Dr. Friday shares all the latest tax updates, and talks over the following topics:

File An Extention With A 4868 Form

Why You Should Be Paying Quarterly Taxes

How Can I Find My Tax Refund?

Who Does The Government Want To Audit

Tax Extensions Expires October 15, 2021

How To Find Your Stimulus Check

What Can I Deduct From Charitable Contributions?

How To E-File Your Tax Returns

Do You Need Help With Tax Representation?

Should I Rent or Rent to Own My Home?

and other caller’s questions!
Transcript
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 at 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 Dr. Friday show and we are here live today. So if you want to join us you can at 615-737-9986. We are talking about my absolute favorite subject which is taxes. Now a lot of you may already think that you know what taxes are done, we don’t need to worry about them anymore, which is completely wrong. Some of you have managed the file but many of you have still not received your refunds today, even though I was traveling and I’m on basic vacation thanks to Dr. Electric. I am here in sunny Florida and there are at least six people I spoke to on the way here and they all are asking me why they didn’t get their refund, and the answer is the same for everyone guys, the IRS is running slow. Now for some of you procrastinators you do have if you live in Campbell, Cannon, Clay, Davidson, Decatur, Henderson, Hickman Jackson, Madison, Murray, McNair, Moore, Overton, Scott, Smith, Wayne, Williamson, and Wilson counties. I’m not repeating all those. If you live in one of those counties, if you’re not too sure, you can certainly text me and I will let you know what those counties were, you have an automatic extension if your primary home and or businesses in those counties, you have an automatic extension to August 2, for a few of you that may not have been able to make the May 17 deadline for one reason or another, you may have a get out of jail card for free here because August 2 will automatically extend those people in those counties. Those are for anybody. It’s for victims of severe storm damage, wind damage, tornadoes, and floods. That happened back in March. But it’s anyone that lives in those counties, not necessarily you been directly affected by those storms.

Dr. Friday 2:31 So that may give a few of you a little bit of a way out. Louise, I cannot see the screen. So just text me if you can, if anyone’s calling that way, we can just do it that way. It’s no big deal. I appreciate it. So again, if you are an individual that is doing something with your taxes, and maybe you didn’t get a chance, or maybe we had to file extensions, it’s been a bit of a crazy year with not only dealing with 2020, and its issues, but the PPP loans, the EIDL, the SBA loans, all of those coming out in the 7500s for payroll, employee retention forms, I should say. All of those are on top of our normal tax season. So it’s been a crazy year, trying to help all of our small businesses try to stay open to take advantage of any of the funds available for them to keep their doors open and doing that.

Dr. Friday 3:25 So if you’ve got a question, you can join the show at 615-737-9986. We’ll take your calls. So again, that’s one of the big things I know a lot of people and I will tell you, I wasn’t really pushing the August 2

Dr. Friday Radio Show – May 15, 2021

Dr. Friday Burke — Tue, 01 Jun 2021 00:54:33 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday gives all the newest tax updates and answers the caller’s questions:

Why You Need To File An Extention

Do I Report My Stimulus Check As Income?

Tax Extensions Expires October 15, 2021

Go To Irs.gov To Find Your Stimulus Check

What Can I Deduct From Charitable Contributions?

Tax Filing Deadline Is May 17, 2021

Where can I Find My Tax Refund?

How To E-File Your Tax Returns

File The 4868 Form for A Extension

Unemployment Is Taxable Income

Do You Need Help With Tax Representation?

and other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. It is the last weekend before tax day, a lot of people thought Friday was tax day, our phones went crazy. But it is actually Monday, so of all of you that may have procrastinates that last or didn’t get ahold of somebody, or me, hopefully, I’ve returned everyone’s phone calls or text texting at this point is probably the fastest. But extensions can still be made IRA payments can still be done on Monday. So you have until Monday to hit the button, pay the taxes. And remember, if you’re filing an extension, it only extends the paperwork. So just means that if you owe money, filing an extension isn’t going to stop that from happening. It’s going to basically continue and if you don’t file an extension and you owe money, you’re going to have 5% per month. If you file an extension and owe money, then it only points to 5% per month. So there’s a huge difference no matter what. So filing that extension.

Dr. Friday 1:34 Let me clarify the extension doesn’t last for years, it does expire come October 15, 2021. So, people that come in a lot of times, they’ll say, “Well, I file extensions every year,” but they never filed taxes for the last 5, 10, 15 years. So you know you were good up until you pass the October 15 deadline. At that time, you just kind of fell off the radar. So very, very important to file an extension, you can go to irs.gov. There are some free ones on there. The 4868 is the form you’re looking for. So if you have a tax form, and you’re looking to file something, you can do that 4868 you can also go to irs.gov, click on pay, and you can either make a payment with a credit card or your bank account. That is now just kept in mind, if you’re filing money and you file it under the 48 extension, that doesn’t mean an extension has been filed. All it means is that you’re making a payment with an extension. So you need to make sure you have electronically filed ideally, the 4868. If you owe money, put some of it towards it. Anything’s going to be better than nothing. I understand it’s difficult, but it is crazy. Alright, let’s go ahead and hit the phone lines. We got Jim in my town of Smyrna. What’s happened in Jim?

Caller 2:52 Hey, thank you for taking the call. Here’s my question. My wife inherited an annuity from her aunt who passed last year. As far as filing tax, we took it and rolled it into another. I don’t even know exactly what it was, but in the Merrill Lynch and they took it and put it into basically a tax-deferred product. So my question is when we’re filing taxes, do we put this into our income tax?

Dr. Friday 3:29 Great qu

Dr. Friday Radio Show – May 8, 2021

Dr. Friday Burke — Tue, 01 Jun 2021 00:53:41 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday gives all the newest tax updates and answers the caller’s questions:

How To Find Your Tax Refund and Your Stimulus

Tax Filing Deadline Is May 17, 2021

The PPP Applications Closed on May 4, 2021

You Can E-File Tax Returns

Who Qualifies For A PPP Loan?

If You Haven’t Filed Your Taxes, File The 4868 Extension

Unemployment Is Taxable Income

Reasons Why You Haven’t Received Your Stimulus Check

and other caller’s questions!
Transcript
Announcer 0:00 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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29 Hey, this is Dr. Friday. I’m live here in the studio. So if you want to join us, call 615-737-9986. So, obviously, we’re working on the last few days, you have until May 17, which is Monday, about a week from this Monday, coming up. If you haven’t, you need to make sure you file your extension. If you haven’t received your refund, and I am getting a lot of emails and phone calls. The only answer I can tell you is to check the IRS website if you’ve checked it, and it’s been more than 21. I would even say like 30 days, and it’s been more than 30 days since it e- filed, I would then take the time on a day that you have the ability to do that, I would have them call and see if they can tell you the status update on that situation. That’s gonna be something you’re going to have to figure out.

Dr. Friday 1:28 Unfortunately, I have had quite a few people when they do call, they have found out that they have to prove their identity. So I think the IRS is working very hard to make sure that we don’t have as much identity theft as we’ve had in the past. So that may be a good thing, but a little time-consuming in the middle of everything else. All right. Let’s go right to the phones. We got Melissa on the line. What do we have for you, Melissa?

Caller 1:51 Hey, Dr. Friday, glad to get to talk to you finally. My father passed away about three and a half weeks ago, and he had left my sister and I both an annuity. That was wired into my account on Friday. It’s about $90,000 roughly. I am just needing some advice on where to place that?

Dr. Friday 2:21 Two things. An annuity is usually taxable. So some of that income that came in maybe taxable income to you. So you are going to within 90 days of receiving it make an estimated payment.

Caller 2:37 I had them withhold on it. I had them my whole 10%. I think that’s okay for our tax bracket. I’m not quite sure. I’m guessing I’ll figure that out next year.

Dr. Friday 2:48 The biggest thing is you don’t want to put the money into an investment that if you find out next year that it is short because the lowest tax bracket is 12%. Now we all know there are effective tax brackets was so it could be less. If you’re adding and I’m assuming all of it wasn’t taxable income, you only have to pay tax on the growth assuming that you’re following that into this with after. So it’s only a percentage of what went into your account, that would be taxable, but on top of your ordinary income. You know, if your family makes less than 100,000, I’d say you’re fine with that annuity added in with the taxable portion. If there’s more than 100,000 with that taxable portion of the annuity, it does go from 12 to 22 overnight, basically.

Dr. Friday Radio Show – May 1, 2021

Dr. Friday Burke — Tue, 01 Jun 2021 00:52:38 +0000

Another episode of the Dr. Friday Radio Show is here, and you won’t want to miss it! In this episode, Dr. Friday talks all about taxes, new tax updates, and answers the caller’s questions:

Tax Filing Deadline Is May 17, 2021

Why Haven’t I Received My Tax Return?

The SBA Has New Grants For Small Business Owners

The PPP Is Open Until the End of May 31, 2021

How Are Taxes Going Up?

Who Is Going To Be Audited?

Will There Be A Penalty For Early Withdrawal From My 401K or IRA?

You Can E-File Tax Returns

How To Find Your Stimulus

Who Qualifies For A PPP Loan?

and so much more!
Transcript
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 at 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 I’m live here in the studio. So if you have a question, the phone lines are open at 615-737-9986. We are taking your calls talking about my favorite subject only a couple of weeks left guys. Today is May 1, and we all know the deadline is May 17. So it is time to make sure if you haven’t filed taxes file an extension. Just a reminder, extensions are not extending the amount due, it only extends the paperwork required. So if you think you’re going to owe money, and you have the ability to pay some of it, my suggestion is to send a little of it along. Also, I’ve gotten quite a few phone calls this week, so I thought I’d go ahead and start the show out. For any of you that might be still in the marketplace, you have to file the 8962. Usually, many of you may have already done that early because you filed your taxes like we did. A lot of people with unemployment, if you did pay a penalty, if your income was exceeded the apt, then you usually file the 8962 to balance that out. Then you have to pay a portion of that back, they did waive that for the year 2020. It was a part of the American RescueAct that came in March 11, or 12th, of 2021. If you did already pay or you have it in the system to make a payment the IRS will be correcting. They’re asking people not if you have unemployment, and you filed early, or if you have 8962 or the repayment of the credits, do not file amended tax returns, they will be getting those corrected.

Dr. Friday 2:24 I also want to kind of put a little ear out there. I know a lot of people are looking for their refunds or looking for their stimulus checks their website is doing I’m assuming the best that they can do. Since I’m not a programmer, I don’t know how that all works very well. I will say that it seems like sometimes it doesn’t work really very well. But that being said, it is something that if you’re on the site, the IRS is running a little slow in doing the refunds. Some people seem to get it within 10 days, other people have been out 30-35 days. Keep in mind that the IRS now has to be matching for all these other things. If you have any unemployment if you’ve been on the marketplace, and you have 1095 and if you had stimulus money that you never received, all of these things are being added to the already extremely busy season for the IRS. So they’re having to make adjustments to make sure they’re not refunding money that is not entitled to that individual.

Dr. Friday 3:23 On the other hand, also making sure you’re not paying tax or not getting the refund that you should be getting with these adjustments. So my suggestion is to just keep watching, keep following. It may take a little bit longer than the usual 21 days. But the IRS is w

Dr. Friday Radio Show – April 24, 2021

Dr. Friday Burke — Wed, 28 Apr 2021 04:04:21 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday talks all about taxes, new tax updates, and answers caller’s questions:

Tax Filing Deadline Is May 17, 2021

Itemizing Charitable Contributions

Make Sure To Have All Your Tax Documents

You Can E-File Tax Returns

How To Find Your Stimulus

Why Haven’t I Received My Tax Return?

PPP Extended Until May 31, 2021

Who Qualifies For A PPP Loan?

What Is the New Tax Law?

Unemployment Is Taxable Money

Do You Need Help With Tax Representation? Call Dr. Friday

and so much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. It’s Friday and the doctor is in the house on this kind of gloomy and possibly really nasty weather. Hopefully, you guys are all staying safe in there. But we’re going to have a good hour of talking about my favorite subject, which is taxes. That’s right, taxes, taxes, taxes. We are still in the 2020 tax season, even though it’s 2021, we’re still doing taxes for the year 20. So if you haven’t filed your taxes, you still need to do that or file an extension. Extensions are going to be required on or before May 17, which is the deadline date. Remember, an extension does not extend the money due. So if for some reason, you don’t like the numbers on your tax return, and you’re thinking, “Hey, I’ll just wait and see if I can do something.” Or if you’re waiting still for forms, because I still have several cases where K1’s and things like that are not received. You need to make sure when you file your estimated tax amount when you file your extension, go ahead and send in an estimated tax form. That would be the best or smartest way to handle that. So if you’ve got Tax Questions, this is the show to do. Call 615-737-9986. We are taking your calls.

Dr. Friday 1:44 I’m an enrolled agent licensed with the Internal Revenue Service, which means it’s all I really do guys is taxes and representation. So if you’ve got IRS issues, you’ve got problems that you’re trying to deal with. I’m the person, you least want to take the first call to. Our initial meetings are always free, because we want to make sure that we’re all on the same page and how and what we’re going to do to try to help some sort of resolution to your situation. So if you need help, you can call the office on Monday and they will set up an appointment for you. I know many of you have probably sent in or I know we get quite a few through our websites, I will let you know that we’re going to be responding to those. It’s been a little crazy. We’ve had a lot of tax clients come in last minute that was from last year. So we always try to get the same clients done. And so it’s just been a little bit busier considering procrastination is probably the middle name for many, many of my clients. So again, if you want to join the show, you can at 615-737-9986.

Dr. Friday 2:44 All right, so making sure that a lot of people when I’m looking and reviewing taxes, and they’re trying to itemize again, itemizing is only required if you’re spending more money on interest, or if you’re a very giving person, you have a lot of charitable contributions. Because the average person that has less than $12,400 is not going to itemize with those deductions, which are basically made up of property taxes

Dr. Friday Radio Show – April 17, 2021

Dr. Friday Burke — Tue, 20 Apr 2021 22:18:15 +0000

Another episode of the Dr. Friday Radio Show! In this episode, host John Haggard talks with Dr. Friday about all the updates on taxes and the following topics:

New Tax Filing Deadline Is May 17, 2021

First Quarterly Taxes and Other State Taxes Due April 15, 2021

“I Haven’t Filed Taxes In Years. Why Did I Receive My Stimulus Checks?”

What Qualifies For a 179 Deduction?

“Under What Conditions Does a Driver Qualify as an Independent Contractor?”

Tax Extention Date Will Be Extended

If You Didn’t Recieve Stimulus 1 or 2, You Can Claim Them On 2020 Tax Return

Do You Need Help With Tax Representation? Call Dr. Friday

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

John Haggard 0:30 Live from America’s Music City, it may be Saturday where you are but it’s Friday, all day, every day, all the time with the tax doctor, the tax lady, the doctor of accounting known in these parts of America as Dr.Friday. Right here she is. Hello, Dr. Friday.

Dr. Friday 0:47 Hello, John. What an intro. I always love when you host my show. You’re so enthusiastic about my name.

John Haggard 0:53 Well, we’ve had such a fun time, and boy, do we need you more than ever? What’s getting ready to come up here a lot of activity they’ve extended. You know the tax filing deadline. Is there any breaking news doctor Friday, anything that you’re hearing on the inside about what might happen with the tax code for 2021? Does anybody have an idea?

Dr. Friday 1:15 I don’t think anyone has a good idea. But I did want to jump in because I know they extended obviously till May 17, the 2020 tax filing. But they did not extend making your estimated tax payments for 2021. It was due on the 15th. So a lot of people did not realize they thought everything got extended. Also business license, franchise excise tax, anything that had a deadline pretty much for April 15. On the state side, many of those did not get extended. So you want to be very careful about thinking that you made things on time. If you haven’t filed your first quarterly for example, John, you’re self-employed, I’m assuming, like myself, and so we have to pay those. Those were due on the 15th. They did not extend them out to May 17.

John Haggard 2:04 Well, folks, now did you hear that? Because most people or a lot of people would have thought, well, “I’ve got until May!” Well, no you don’t. Based on what Dr. Friday said. You know what’s interesting, the government always wants their money on time. They’ll take the paperwork a little bit later.

Dr. Friday 2:23 Correct. They want their money early, not late. They definitely, I think it’s a great way to explain, anything we do most of the time, from the tax standpoint, we’re really just following up with paperwork. They want people to be paying their taxes on a monthly or quarterly basis.

John Haggard 2:37 Early and often. Right?

Dr. Friday 2:41 So true.

John Haggard 2:42 Folks, you’re listening to the Dr. Friday show. Every single week someone will be tuning across the dial or on the internet or something. So what is this? What are you listening to? Well, this is an advice show and not only advice, but you can actually get work done and get a consultation don

Dr. Friday Radio Show – March 27, 2021

Dr. Friday Burke — Mon, 29 Mar 2021 12:00:24 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday gives all the updates on taxes and the following topics:

New Tax Filing Deadline Is May 17, 2021

What To Do If You Haven’t Received Your Tax Refund

The New Proposed Inheritance Tax and Estate Tax Changes

The third Stimulus Coming March 15- April 15

Stimulus Check for All Dependants On Tax Return

Tax Extention Date Will Be Extended

The IRS Won’t Take Taxpayers Refund Money To Pay Off Federal Debts

If You Didn’t Recieve Stimulus 1 or 2, You Can Claim Them On 2020 Tax Return

Do You Need Help With Tax Representation?

Stimulus Check for All Dependants On Tax Return

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. I’m Dr. Friday and the doctor is in the house. It is a stormy, kind of not a very happy outdoor Saturday. But we are still working taxes, guys. For all of you procrastinators, you do have another almost 30 days, it will go till May 17 is the new April 15 deadline, I guess if that makes sense. We usually file on April 15, they’ve extended it out to May 17. So you do have a little bit of time where you can go and make sure you’ve got all of your records, make sure you understand all the forms coming in. For small business owners make sure that you’re getting those tax grants in your tax numbers. Because we don’t want to have to come back later and have to amend those tax returns or you know deal with those.

Dr. Friday 1:17 If you want to join the show, you can 615-737-9986. As an Enrolled Agent, I’m licensed by the Internal Revenue Service to do taxes and representation. So that means guys, this show is about taxes or tax issues. So if you are working on your own tax return, or maybe you’re trying to figure out what’s going on with your refund. This morning, I’ve had a couple individuals texting and emailing me saying they haven’t received their refunds yet, and what can be done about it. So we’ll talk a little bit about that. Or if you’re just trying to complete your tax return, and you’re a little confused about some of the new things going on. We do want to reiterate out there for all of you that might have filed your taxes. I know I have about 40 returns who filed your taxes before the March 12 signing of the American Rescue bill. Do not amend your taxes if you have a change due to the $10,200 waiver. Now, I want to reiterate that there is a $10,200 waiver for people on unemployment but only for those individuals that earned $75,000 or less as an individual or a married couple making $150,000 or less. So if you did get unemployment and you made more money throughout the year on those, you are not going to be able to take the waiver for the $10,200. It’s supposed to only be helping those particular individuals. But if you have questions about that, or something else going on, this is the show be interesting and also helps all the listeners. So let’s go ahead and get to the phone lines. Let’s go hit Larry. Hey, Larry, what’s happening?

Caller 3:03 Quick question about IRA. Actually, cashed one out last year, about 160,000, and took out 418 taxes for that made a mistake by doing that. So I’ve opened another one for [inaudible] trying to offset some of the penalties and interest that I took. But I don’t see how to claim that on my taxes. How does that wo

Dr. Friday Radio Show – March 20, 2021

Dr. Friday Burke — Tue, 23 Mar 2021 21:06:03 +0000

Welcome to the Dr. Friday Radio Show! Dr. Friday gives all the updates on taxes, deadlines, and the following topics:

New Tax Filing Deadline Is May 17, 2021

Tax Extention Date Will Be Extended

Free Unemployment For Those Making Under $75,000 Single and $150,000 Couples

The IRS Won’t Take Taxpayers Refund Money To Pay Off Federal Debts

If You Didn’t Recieve Stimulus 1 or 2, You Can Claim Them On 2020 Tax Return

Do You Need Help With Tax Representation?

The third Stimulus Coming March 15- April 15

“I Got Custody of my Niece and Nephew, But I Never Received Stimulus Checks For Them.”

Stimulus Check for All Dependants On Tax Return

Can My Stimulus Money Be Applied To Debt?

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house and are we having another wild ride of it when it comes to tax season. People think sometimes my job is probably a little boring, all I do is taxes. But look at the last two years it has gone crazy. So just for all you that may have just tuned in, let’s remember that they have done an extension to May 17. Let’s start with that. May 17 is our new deadline for your 2020 tax filing for your tax returns on May 17, 2021. That will be an important date. Because if you have a need or something happening, then you need to make sure that you have done that which also means extensions will be extended. Right? We’ve always had April the 15th. I know last year was unique. We did it in July, this year, we’re doing it in May. And there are some really good reasons I have to give credit where credit is due. I know the American Association of CPAs, as well as the Enrolled Agents associations, have been ones that help push or encourage the IRS to take this into consideration. Because there are quite a few changes that have happened. And we need to make sure we know what’s going on. Because I know myself, I thought I was going to have to amend like 40 different tax returns. But we’re gonna talk about people that might have filed and then the changes affected them. Let’s go ahead and hit John about a loss of job unemployment limits. Hey, John.

Caller 2:02 Hey, Dr. Friday, thanks for taking my call today, I really appreciate it. I was unfortunately caught up in the COVID 19 turmoil like everybody else, and I lost my job because of that. So I’m now running a combination of like unemployment and gig work. I do realize like you just spoke about unemployment, it’s going to be treated a little bit differently because of that stimulus plan. But what’s the limit, when I have to start to be concerned about paying estimated taxes to the IRS? Is it the is worth using that standard deduction number that you get? Is there just no minimum? Or is there a maximum?

Dr. Friday 2:47 There is. It sounds like that you you work under as a musician or something along those lines, because it sounds like when you say gig work, I’m making that assumption. But anyway, so if you’re self-employed, or a combination of W2 and 1099 work, obviously all W2’s assuming that withholding is coming out, you don’t have to worry too much about those. But as subcontractors are 1099, anything over any money that we owe more than $500. So the standard deduction doesn’t come into play for our self-employment tax. So theoretically, you could have a negati

Dr. Friday Radio Show – March 13, 2021

Dr. Friday Burke — Tue, 16 Mar 2021 21:00:39 +0000

Welcome to the Dr. Friday Radio Show! Dr. Friday gives all the updates on taxes, deadlines, and the following topics:

The American Rescue Plan Passed

Make Sure Your Tax Software Is Updated

Do You Need Help With Tax Representation?

The third Stimulus Coming March 15- April 15

Child Credit Increased To $3000

Stimulus Check for All Dependants On Tax Return

Additional Money To The PPP Program

Can My Stimulus Money Be Applied To Debt?

Have The Right Documentation For Filing Your Taxes

Unemployment and 1099 G’s Payment Is Taxable Income

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. Oh, boy do we have fun to talk about now. They did pass the American rescue plan, and it’s going to make changes for any of you that were on unemployment, we may have to be doing amended tax returns, because they’re going to allow the first $10,200 to be tax-free. Obviously, if we’ve already filed your taxes, we’re going to have to get that amount back. Also, if we’ve got issues with getting the next stimulus check if you haven’t filed. Let’s go ahead and hit Dave from Colombia, he may actually open that conversation about some of the problems people are having. Hey, Dave.

Caller 1:17 Hello Dr. Friday, thanks for taking my call. Earlier this week, I prepared my 2020 with the fillable form provided that the IRS online. I went ahead and transmitted that to the IRS at the same time I owed about $350 in tax on that forum. So I went ahead and direct paid it to the IRS so they have $350 of my money. The next day, the IRS got back to me and said they will not accept the E filing because they couldn’t verify my 2019 AGI. That’s because they haven’t processed my 2019 return yet for some reason. So my question is this, I can mail in 2020. I know that’s the fallback. But for the 350 that I’ve paid, do I reflect that as a credit on the 2020 return or I just leave the taxes owed showing 350?

Dr. Friday 2:10 Well, once you can confirm that the money I would probably wait, make sure you know the money has come off. Because if you did it through the form, and they didn’t accept the form, it’s possible that they didn’t accept the direct payment. But if you went to the IRS separately, then yes, it would be a credit. I would correct the return to show that the payment was there, and then zero would be due.

Caller 2:33 Okay, now they did get the money, I’ve confirmed that. So the question is there a tax owed? I sent it to either one address that you are paying taxes on or another address, you’re getting a refund, which address do I send it to? If it’s zero taxes owed?

Dr. Friday 2:48 It would go to the one where the refund.

Caller 2:51 Okay. All right. Okay, that’s what I’ll do.

Dr. Friday 2:55 No worries. Thanks, mate. Appreciate the call. And yes, we are going to be running in all kinds of those situations where some of the programs do require. And this is often a problem people have is if you haven’t filed or for some reason you file but you did it by mail in 2020 for the year of 2019. To this day, we are processing are still getting information on people that we filed in this was as late as October, and we’re just getting letter

Dr. Friday Radio Show – March 6, 2021

Dr. Friday Burke — Mon, 08 Mar 2021 22:30:47 +0000

Another episode of the Dr. Friday Radio Show is here! Dr. Friday talks about all things taxes, deadlines, and the following topics:

Make Sure to Have The Right Documentation For Filing Your Taxes

The third Stimulus Coming March 15- April 15

When Will I Get My Tax Refund?

Need Help Preparing Your 2021 Taxes?

Is My Social Security Taxed?

Corporations Taxes Due March 15th

Charitable Contributions Deductibles

Do You Need Help With Tax Representation?

Unemployment and 1099 G’s Payment Is Taxable Income

Do I Claim My College Child As A Dependant of Mine?

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good morning, I’m Dr. Friday, and I’m living here in the studio. It is all-season taxes that are going everyone is needing to get those taxes filed on time. Remember, if you haven’t filed taxes for 2018 or 2019, you probably haven’t seen the stimulus. You will be able to get that stimulus money if you file your 2020s. So you can go ahead and file 2020, even if you haven’t filed 18/19. So just keep that in mind that you can go in different orders, I’ve done it more than once. Just do what you need to do, make sure you’re filing your taxes get back on track because it’s never easy. Once you get off track to be able to do things you want. If you’ve got questions, and you want to join the show, you can we’re live today at 615-737-9986. The number here in the studio. We’ll take your calls. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation, which basically means that what I do all the time are taxes and representation. And I know that many of you guys have been if you haven’t used our services in the past, you will find right now that we’re kind of full. As far as getting clients in unless you’re willing to file an extension, then we’ll do our best to try and do something for all my returning clients. Of course, we still have more than enough time on the calendar to get you squared away, and taking care of we’ll be working our ways through these weekends as we go.

Dr. Friday 1:58 If you do want to join the show, and you can at 615-737-9986. Time to ask your questions. It looks like the phone lines are lighting up really well. So my big guy over there in the studios is having fun. You want to go hit line one, and I’ll take that while you work. Hey, Lynn, this is Dr. Friday.

Caller 2:21 Hi, Dr. Friday. We have a rental that we’ve had losses on for a couple or three years due to the fact that we make too much money to claim it. I was wondering if we sell that rental and make a profit, can we offset those losses that we weren’t able to claim?

Dr. Friday 2:42 100%. Yes. So sometimes it’s nice when we’re unable to claim all of our losses, because then when we actually do do the sales, we can offset those losses directly you get 100% of whatever you haven’t been able will automatically come in because obviously that rental is no longer in existence. So they will be able to wash all of that against that at that time.

Caller 3:03 Okay, and then one other quick question. Is the profit that you gain on that is that taxed the same as capital gains tax or is that taxed as regular income?

Dr. Friday 3:14 So there are two sides to anytime we have ren

Dr. Friday Radio Show – February 27, 2021

Dr. Friday Burke — Mon, 01 Mar 2021 13:00:04 +0000

You won’t want to miss out on this episode of the Dr. Friday Radio Show! Dr. Friday talks about all things taxes, deadlines, and the following topics:

Can My Child Get a Stimulus Check If They’re My Dependant?

Do You Need Help With Your 2020 Taxes?

Do I Need To Tell The IRS I Own Cryptocurrency?

There Is More PPP Money Available

Should I Claim My College Child?

The Third Stimulus Coming March 15- April 15

Unemployment and 1099 G’s Payment Is Taxable Income

Do You Need Help With Tax Representation?

Have The Right Documentation For Filing Your Taxes

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. It is that season, guys when all of us get to go file our tax returns. Forms are coming in. I know more and more people have now received their unemployment form. I just want to make that a reminder that 1099 G’s are responsible to be filed on your tax return. You’re also going to be reporting, if you’re filling out your own tax return, you will be asked “Have you received both stimulus?” I have a lot of people that say, “Well, I received one of them in 2021.” it doesn’t make a difference they are reconciling the one you received in 2020, as well as the one you received in 2021. Both of them are being reconciled on this tax return. So it’s not taxable income, I want to reiterate that because a lot of times people think it’s taxable or not, it is not taxable income. But if you have not received it, you will be able to get it as a refund on your tax return or help pay for taxes, whatever it may be, as far as the situation is on that. So you do want to make sure that you’re filling that out.

Dr. Friday 1:35 Also, the last couple of years because of the tax change, we all know that charitable contributions in 2020 on this tax return, I don’t know if it’s going to extend past this year. But they’re asking us if you gave $3,000 to charity in the year 2020 above the standard deduction. Make sure you have receipts. I know a lot of people just love to throw a number in there. But you never know if you’re going to be asked for this. But when it comes down to it, I have great clients. Maybe you only gave $100 maybe gave $200. Whatever it is you gave, remember, fill in the charity section because that’s going to roll over to a separate deduction onto your 1040. So you want to make sure you have that information. It’s an additional deduction. So again, it’s not a credit, it’s a deduction, but it is going to help no matter what it’s always nice to get a few more dollars in our pockets. So and then this year, big decisions about college kids who are claiming them all that. I will say if you have a college kid, don’t just file it before you figure out who’s going to claim, and legitimately some of these kids have worked and taken care of, but they’re not maybe supporting themselves over the 50%. But you need to figure if they’re going to be a better deduction, what’s going to happen on that. So make sure you talk to your tax person when you’re agreeing to taxes or if you’re doing your own file your kids and yours altogether. Make sure you’re making the right decisions when it comes to your college kids. College credit could be $2,500, but some parents make too much money or don’t have

Dr. Friday Radio Show – February 20, 2021

Dr. Friday Burke — Tue, 23 Feb 2021 22:00:39 +0000

The Dr. Friday Radio Show is here, and you won’t want to miss it! In this show, Dr. Friday explains all the latest tax updates, including the following topics:

Partnership Form 1065 S and Corporation Form 1120S Due March 15, 2021

Available Forgiveness Without Documentation for PPP Loans Under $150,000

Need Help Preparing Your 2020 Taxes?

Can My Child Get a Stimulus Check If They’re My Dependant?

A 1099 Payment Is Taxable Income

Unemployment Is A Taxable Income

IRS Says It Will Take 21 Days To Get Tax Refunds

The Third Stimulus Coming March 15- April 15

Why You Should Get Help With Tax Representation

and answers other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. Yes, we are live today. You can reach us at 615-737-9986, is the phone number here. In case you want to reach us we have some great news from the SBA and Treasury. They have simplified anyone that received PPP loans for less than $150,000, they are going to be offering forgiveness without supporting documentation. So you can’t ask for anything easier than that, can you? So that will be something that’s going to be for the this is right now for first PPP. Forgiveness hasn’t been offered on number two, I don’t know very many people who have received PPP number two yet.

Dr. Friday 1:17 So that is the first thing and then they say portals remain open for PPP two, you can still register. So here’s the deal, guys. A lot of people I meet with quite often just see people that are self-employed individuals, they did not know how or what they should have been filing to get a PPP loan. Remember, if you’re a Schedule C individual, and you paid self-employment tax on the money, you can get your PPP and you can get around one, round two. Round two is open people. So if you missed the first window, it may be something that you need to do when it comes to getting ready to do that. So just a heads up, if you are having a hard time and you did not get the first PPP, you may be looking to be able to get the second. All right, mate, let’s go ahead and go to line five. Hello, Mitch.

Caller 2:10 Hi, I have a question about those stimulus payments. My wife and I received both of them, we received the first and the second. And we have two dependent children. We didn’t receive the payments for my two dependent children. I’m wondering if my Social Security has something to do with it?

Dr. Friday 2:28 Well, I have to ask, are your dependent children 16 and older or 16 and younger?

Caller 2:33 16 and younger.

Dr. Friday 2:35 Okay, well, that’s good news. It would have nothing to do with your ID being in all honesty, your Social Security because anyone on Social Security can receive stimulus as well. So it would be that, were they listed on your 2018 and or 19?

Caller 2:52 Both of them were and we received the earned income credit from my wife.

Dr. Friday 2:58 You would have gotten yours under Social Security sounds like you, you. I’m assuming you know, you weren’t working, you’re disabled, or whatever you might have in your situation. But it doesn’t make a difference. You should have received the extra, I think it was 500 for the first one for each child and 600 for the second one. The good news is

Dr. Friday Radio Show – February 6, 2021

Dr. Friday Burke — Wed, 10 Feb 2021 17:02:14 +0000

Welcome to the Dr. Friday Radio Show! In this show, Dr. Friday explains all the latest tax updates, including the following topics:

Haven’t Gotten Your Stimulus Check? Here’s How To Get It

IRS E-File Starts February 12, 2021

Why Some People Have Received Their Second Stimulus Check

Have The Right Documents For Your 2020 Tax Returns

Can My Child Get a Stimulus Check If They’re My Dependant?

IRS Is Not Processing Tax Returns Until February 12th

Don’t Forget Your Unemployment

Unemployment Is A Taxable Income

Do You Need Help Preparing Your 2020 Taxes?

Why You Should Get Help With Tax Representation

and other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:31 Good day. I’m Dr. Friday and the doctor is in the house. We have some fun topics to talk about. Sounds like they’re gonna definitely be giving out some more free money, which is just absolutely terrifying for some of us because we’re not too sure where that free money is coming from. That being said, let’s figure out how we can make sure everybody that is entitled to actually truly I guess I don’t afford entitled but hasn’t received their stimulus money, we can talk a little bit about that. We’ll talk a little bit about some of the forms and things coming out on the new one. And we’re gonna go ahead and get to some of the calls that are coming in if you want to join the show you can call 615-737-9866, which is the phone number for the studio. So if you want to join the show, remember, there are no stupid questions. I mean, if you don’t know the answer, I bet a lot of other people don’t either. I might not even know the answer, but we will get the answer. So why don’t we hit Andrew first and see if we can help him out with a question on Social Security? Hey, Andrew.

Caller 1:36 Dr. Friday, I heard a spot on the radio and it was about social security. And it was actually one of my questions I asked you last week. I’m on Social Security, I’m over 70 total income of $25,900 of that 238 is Social Security. Do I file taxes?

Dr. Friday 1:59 No. You wouldn’t need to because the difference is only a couple of $1,000 that you’re making above Social Security. The provisional tax code takes half of your Social Security, adds your other income. And if it comes up to about 30,000, then you would need to file. So you are way below what you can earn. So you are a zero file. Now, the only time I’m telling individuals in your situation to file taxes in the year 2020 is if they haven’t received both of the stimulus checks because you could get that as a refund on the 2020 tax return. But in normal situations, Andrew, you should not be filing and don’t have to do anything.

Caller 2:39 Excellent call. Thank you very much.

Dr. Friday 2:42 Thank you and I appreciate you listening. Okay. Alrighty. My guy in the office. Yes. Go ahead and hit Calvin.

Caller 2:49 Yes, yes. Dr. Friday, I got a few questions. I’ll make them quick. Will the COVID change the filing date like it did last year and give us more time?

Dr. Friday 3:01 No, they basically came out and said as of right now there is no intention of moving the date. The date is going to be April the 15th.

Caller 3:10 Okay, and you said that 1099 is going to change thi

Dr. Friday Radio Show – January 30, 2021

Dr. Friday Burke — Tue, 02 Feb 2021 21:23:32 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday shares all the updates on taxes and also the following topics:

Have Your Documentation For Your 2020 Tax Returns

The IRS Is Not Processing Tax Returns Until February 12th

Unemployment Is A Taxable Income

What To Do If You Haven’t Received Your 2020 Stimulus Check

Self-Employed Individuals Can Apply For PPP 1 and PPP 2

Do You Need Help Preparing Your 2020 Taxes?

Is Timing Really Important When Filing Taxes?

Small Business Money Is Available

Do You Need Help Preparing Your 2020 Taxes?

Why You Should Get Help With Tax Representation

and so much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house and are we having fun this season. I will tell you tax season, of course, has officially I guess you would say has opened but since the IRS is not processing any forms until after February 12, we are just accumulating them in a holding period until the IRS starts opening up e-file. But obviously we are getting them completed, making sure that we have everything we need. Don’t forget, some people get so excited about coming in. I know we’re excited people what can I say but you know, sometimes the mortgage statements, unemployment, the 1099 G’s, according to the Department of Labor, they weren’t going to be putting them out until as late as February 2. So you have time to get all your documentation together, make sure we have it all. So we can complete the tax returns 100% the way they are.

Dr. Friday 1:25 Also remember that it’s a little tricky with the $300 extra charitable contribution. So if you don’t qualify for itemizing, but yet you gave more than $300 to charity, make sure at least in our system, we have to complete the Schedule A even if you’re not itemizing, and then it will roll over that additional 300. If you don’t complete that it will not there’s no place to put it in, it’s rolling over from the Schedule A at least again in our software. So that way we have that information. You know, you don’t want to leave any money on the table, because a lot of people do give to charity, but they’re not getting enough to be able to get the you know, the rest of the view or whatever they have. So just if you have charitable contributions, maybe you only did $100-$200, whatever it might be, then you have what it takes to do what you need.

Dr. Friday 2:16 So if you’ve got questions, you can certainly join the show 615-737-9986. We’ve got callers on the line. You’ve been a busy boy in that studio, haven’t you? Alright, go ahead and hit the first one. Hey, Bob, what’s happening?

Caller 2:49 Good to talk to you. Hey, I have a question for you. There’s been a lot in the news lately about proposed tax changes by the Biden administration, one of which is to eliminate the step-up in basis on inherited property. Right. And what I wanted to ask you, are there any strategies that someone could take on right now to possibly get around that later on for their heirs down the road?

Dr. Friday 3:16 I mean, we are talking a lot about that too. And I find it hard to believe, because that wasn’t even something that was actually put into by the Trump administration, we’ve had the step-up in basis for a long time. But I know they’r

Dr. Friday Radio Show – January 16, 2021

Dr. Friday Burke — Tue, 19 Jan 2021 16:09:36 +0000

Welcome to the Dr. Friday Radio Show! Dr. Friday talks about all about taxes, new updates, and also the following topics:

You Need To File Your 2020 Taxes to Recieve the 2021 Stimulus Check

New Laws and Tax Changes

Is Timing Really Important When Filing Taxes?

Unemployment Is A Taxable Income

What To Do If You Haven’t received Your 2020 Stimulus Check

Small Business Money Is Available

Do You Need Help Preparing Your 2020 Taxes?

The Next Filing Date Is on February 12, 2021

Why You Need Help With Tax Representation

We Are Certified QuickBooks Advisors

and so much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and we are in the house. That means the phone lines are open if you want to reach us, call 615-737-9986. We are taking your calls and talking about my absolute favorite subject, taxes. Now there are a few things we were not going to touch much on what Biden said, I will tell you that. I had a lot of people emailing me, but you know, what he said isn’t law. So we’re gonna stick to what we know. So let’s talk a little bit about forms you might be receiving in the mail, and what forms you need to be watching out for or maybe not receiving what you thought would be coming in the mail. So we’ll start with the stimulus, probably because a lot of people are saying I didn’t get my stimulus money yet, what can I do? So we’re going to talk about a couple of things you’re going to do. One thing you’re going to do is probably not something that you’re used to doing if you’ve not been a filer, because this is going to be a completely different game than the first stimulus. If you have not received either of the stimulus checks. Sometimes, so my clients that are coming in now, it’s because they did not file 2018 and or 2019, that they’re working on some different situations there, and so you do need to have 2019 filed at least guys. And in most cases, you’re going to have to file your 2020 if you want to see that stimulus check. So making those payments and getting that done properly.

Dr. Friday 1:54 Why we go ahead and hit John real quick, and then we can let you keep the phone’s going because you’re a busy man in there. Okay, we’ll come back. My boy in the office, there is awesome. He is multitasking all the time trying to take phone calls as I’m talking to them. Alright, so stimulus really quick, let’s talk with the stimulus, you’re going to have to file a tax return, if you have not received your stimulus money, even if you’re social security only. If you haven’t received it January 15 was the last day they were sending it out. So it’s very important that you pay attention to what the next steps are going to be because it’s not going to be like the first one where you can go in and do a non-filer or anything like that. You’re going to need to file a tax return. All right, let’s go ahead and get John in Murfreesboro.

Caller 2:42 All right, Dr. Friday, thanks for taking my call today. I appreciate it. I operate a Subchapter S here in Tennessee, where I provide training. I have the opportunity a competitor approached me and said they’d like me to do work for them, which I agreed to, and they would pay me a flat fee on an ad need basis. Now they’re gonna provide 1099. My question is, is can I treat this just as a regular sale thr

Dr. Friday Radio Show – January 9, 2021

Dr. Friday Burke — Wed, 13 Jan 2021 19:03:15 +0000

Welcome to the Dr. Friday Radio Show! In this episode, Dr. Friday talks about all the new 2021 tax changes, and also the following topics:

New Laws and Tax Changes

Is Timing Really Important When Filing Taxes?

Small Business Money Is Available

The Second PPP Loan

What Happens If I Didn’t Get My 2020 Stimulus Check?

Unemployment Is A Taxable Income

Do You Need Help Preparing Your 2020 Taxes?

Why You Need Help With Tax Representation

We Are Certified QuickBooks Advisors

and so much more!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:31 I’m Dr. Friday and I’m here live in the studio. So if you have questions, you can join us by phone at 615-737-9986. Have we have quite a bit to cover in just 45 minutes. Well, I guess they say it’s an hour, but we only have about 40 minutes or 45 minutes to cover. Probably one of the biggest things that are happening is Monday morning drawl two on PPP loans. Things that we might need to know, small business money is available. There’s money for areas in which maybe had been hit a little bit harder than others. But there are some twists. Some are great, some are going to be a lot easier to get a number to loan PPP versus people that may not have qualified for it or applied for it because a lot of self-employed individuals did not know that they could do it. The loans are opening basically, for places that were hit hard in certain economic areas, women, a business owned businesses, and a certain type of industries are opening Monday morning. So this is going to be very fast especially considering it is also tax time. So we’re gonna talk about some of the tax changes some of the new laws, and we’re gonna go ahead. I normally keep my guy busy today in the studio, but we’re gonna go ahead and hit Andrew if you have a second. Hey, Andrew, what can we do for you?

Caller 2:03 Okay, maybe a two-part question. Already given relative to relative an amount of money a check written for more than $10,000? Who pays taxes, that kind of a thing? And second, the second question is another relative is going to give a relative $25,000. Just gifting. Can you do that in increments of nine, nine, and seven over a period of a couple of months? And what will be the problems, drawbacks, and legalities of doing any of those?

Dr. Friday 2:39 Okay, so the first one we’ll just take it kind of comes into both. So the first one they had received $10,000, the person that gave the gift would be the person that would have to pay tax if there’s any tax. Normally, when people are gifting, they’re taking money from their own personal accounts on which they’ve already paid tax on. So they’re really just moving money from one bank account to another bank account. As long as it’s less than $15,000, there really is no place to report or to tax. Now, if the individual that gave the money took the money out of a 401k or sold stock, obviously, when they get ready to prepare their tax return, they would have tax forms that would tell them that they have taxes possibly due on those funds.

Caller 3:21 Okay, that was taken out of a personal checking account, and it was $18,000.

Dr. Friday 3:28 So 18 and 25. So is this individual married by chance that’s receiving the money, or are they single?

Caller 3:37 Receiving the money in the $18,000 is married.

Dr. Friday 3:42

Dr. Friday Radio Show – December 19, 2020

Dr. Friday Burke — Wed, 23 Dec 2020 03:47:55 +0000

Another episode of the Dr. Friday Radio Show is here! In this episode, Dr. Friday talks about all things taxes, and also the following topics:

Tax Advantages Because of Covid-19

What Happens If I Didn’t Get My 2020 Stimulus Check?

You Can Now Deduct Up To 7.5% of Your Adjusted Gross Income

Who Will Recieve PPP Forgiveness?

Unemployment Is A Taxable Income

1099 and W2’s need to be mailed by The End of 2020

Do You Need Help Preparing Your 2020 Taxes?

Why You Need Help With Tax Representation

Tax Deductions Will Expire By The End of 2020

IRA Conversion Deadline Before The End of 2020

and other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:32 We are live here. So if you want to join the show, you can at 615-737-9986. We are taking your calls talking about all things taxes. We had a big tax, Christmas giveaway. If Jimmy King Woodberry is listening or someone that knows him, please have him call the show the information we received did not go through or you can call me direct on Monday morning at my direct number, but we need to get your gift card to you. We didn’t quite get a good phone number apparently. So I’ll repeat that a couple of times. But as we’re going, let’s talk about a few things. We’re winding down guys, there’s only like a week left or so. And many of those days, people are not going to be around doing a lot of things when it comes to preparing or moving forward on tax planning. So you do want to go ahead and start looking at your options, what’s going to change. What decisions you might make today might change for next year, etc, etc. We all know that the standard deduction did go up. When we filed taxes last year single person was 12,200. When you file them this year for 2020, there’ll be 12,400. Head of household 18,350 up to 18,650. So those are important numbers. Because if you don’t have expenses to exceed those numbers as a single person, if you can’t itemize past $12,400 you’re not itemizing.

Dr. Friday 2:16 The same thing for basic married couple 24,800, you will not be itemizing there is a little bit of a change. In fact, this year is going to have a couple of different changes. So one of the changes is $300, up to $300 charity deduction will be on your 2020 tax return. So normally, that falls on the schedule a were files on to itemizing they added it as an extra deduction. So up to $300 above your standard deduction, you will be able to deduct the second part is the stimulus checks, which were actually advanced payments on a special 2020 tax credit, known as the recovery rebate credits, you will be filling that out as well. So, individuals that didn’t get their stimulus money, you will be getting it on your 2020 tax return. If you did get your stimulus money which would have been $2,100 or $2,400, for a married couple $500 for each child that was under the age of 17. So that means they were 16 or less, then you would have you’ll put that in there and it will count for that information. So it’s going to be a little tricky because of children and ages. If the children are over that age now how’s the system going to count for it? I don’t really know all the answers yet because it hasn’t come down from the IRS how they’re going to treat you if you were overpaid.

Dr. Friday 3:45 What’s going to happen if you were underpaid? What’s going to happen? We

Dr. Friday Radio Show – December 5, 2020

Dr. Friday Burke — Tue, 08 Dec 2020 22:52:51 +0000

Welcome to the Dr. Friday Radio Show! In this episode, Dr. Friday answers all the caller’s questions concerning taxes, tax deadlined, and also the following topics:

Tax Advantages Because of Covid-19

Do You Need Help Preparing Your 2020 Taxes?

Why You Need Help With Tax Representation

Will The Elected President Affect My Taxes?

Tax Deductions Will Expire By The End of 2020

IRA Conversion Deadline Before The End of 2020

Can I Take Money Out of My IRA Without Penalty?

Nevada Will Have A Short Term Tax Amnesty

and other caller’s questions!
Transcript
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 at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. Hopefully, you guys are having a great Saturday out there enjoying the weather. It’s a little nippy, but it is obviously December. Therefore we’re getting to some deadlines, some explorations. Now in some cases, it may or may not affect your taxes. But we do have some extenders, what we call extenders or tax deductions that will expire by the end of 2020. We’re going to cover some of those. If you’ve got questions, maybe you’re getting ready to prep for 2020 taxes. And we have to have all those done as far as your expenses are paying with exception of IRAs or SEPs, things like that. You need to do everything before December 31, which is sneaking upon us. Conversions of your into doing an IRA conversion, which is something that has to be done before the last day of the year. Also some of the tax advantages because of COVID, and the cares act, taking out money from the IRA without penalty, all have to be done before the end of the year. So we’re going to cover a few of those things as well. But you can join the show at 615-737-9986. We are taking your calls talking about taxes.

Dr. Friday 1:51 I’m an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. This basically means if you’re getting some love letters in the mail, and you’re not too sure what to do, you know, you haven’t filed or you just don’t have the money to pay them. But you’ve been ignoring them, which doesn’t usually lead to good things. It’s something that we probably need to deal with instead of just putting our head in the sand and hoping that they don’t catch us. That works for some people, not for many, many people. So just making sure that we have everything, we need to see what’s going to expire, and we’ll start with that. The exclusion for the income of a discharge or indebtedness on our principal residence. So if you had to do a short sale on your principal residence or something along those lines. Or you renegotiated your mortgage, and you ended up getting it reduced, in normally would become income because of the money that you put in your pockets. But if it’s to your principal residence, we were able to not have to pay tax on that. That expires as of the end of 2020. The ability to treat mortgage insurance also known as MIP, mortgage insurance premium, qualified residence, we can usually write that off on our taxes that expires. That has expired many different times. So far, they keep adding it back, a big one for individuals that have the ability to deduct medical, which is not easy under the current itemization. But they reduced it down to 7.5 of your adjusted gross before you get the first dollar onto your itemizing. That expires and it’s going to go up to 10% of your AGI. So that may m

Dr. Friday Radio Show – November 21, 2020

Dr. Friday Burke — Tue, 24 Nov 2020 15:23:06 +0000

Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday answers all the caller’s questions concerning taxes, including the following topics:

Is There A Minimum Distribution From An IRA?

Charitable Deductions on 2020 Tax Returns

Why You Need Help With Tax Representation

Tax Advantages

RMDs

Will There Be A Second Stimulus Check?

What Do I Do If I Didn’t Recieve My Stimulus Check?

Is Life Insurance Taxable?

and more!
Transcript
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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor in the house, and this is an awesome Saturday, come on, you have to admit the weather’s perfect. It’s a beautiful day outside. It’s that time of the year where we’re wanting to get ready. I mean, we have a family may be coming into town who knows? Thanksgiving this year, I think is going to be a completely unique situation. I have a friend that’s basically planning this whole huge Skype meeting, that is going to be all of her family. Everyone’s gonna is sitting with their own family or their own meals or whatever. They’re going to be taking it and doing their thing. So I think that’s interesting. They’ll have monitors, I guess on the table, and everyone’s gonna be able to look and watch and eat dinner together in a unique way. So if you’re doing some sort of celebration like that, and you want to kind of share it, I think it’d be really a lot of fun. I know, this year is going to be a lot harder for a lot of people. Maybe if we could show some unique ways that people could still be with their families, maybe not face to face, but still include them in the holidays, Christmas and Thanksgiving are going to be a lot different, I think it’d be a great idea.

Dr. Friday 1:38 So you can always share those on the radio by calling 615-737-9986. All right, we have a deadline today, November 21, by 3 pm Eastern Time, which of course is already passed because eastern time would be only 2 pm here. So hopefully you have already done this. The deadline for filing economic impact payments based on the file. If you’re a non-filer, you don’t have to file 2019. I had two people calling me yesterday, both of them were required to file tax returns, but they thought they could just file this nonfiler and still get their stimulus check. This is not for you. This was for individuals that may be live solely off social security and they never got their stimulus check, then this would have worked for you. Hopefully, you’ve already addressed this situation. We’ve had now about six months of being able to make sure your information has been filed with them to get your $1200 dollars. And a lot of people are preparing just in case another stimulus is on the way. I will tell you at this moment, there is no movement or anything else happening with that situation, but one never knows. So you want to make sure you have the current address again. So that was something that did end as of 3 pm Eastern Time, which would have been 2 pm here, which means we are now five minutes late for that one.

Dr. Friday 3:09 If you did not get your stimulus check, remember that when you file your 2020 tax return, you will be in good shape, because you will be able to get that money on that tax return. So they have now started issuing or showing at least some of the information forms and things that are will be available for the 2020 year. Another big

Dr. Friday Radio Show – November 14, 2020

Dr. Friday Burke — Tue, 17 Nov 2020 21:36:03 +0000

Welcome to the Dr. Friday Radio Show! In this episode, Dr. Friday answers all the caller’s questions concerning taxes and the following topics:

Need To Take Money Out of Your 401K?

Tax Advantages

How The USA President Will Affect Your Taxes

Charitable Deductions on 2020 Tax Returns

Changes to Retirement Plans Due to COVID-19

The Truth About Virtual Currency

Is PPP Money Taxable?

The PPP Loan Forgiveness Deadline

Are Quick Claim Deeds Safe?

Why You Need Help With Tax Representation

and other callers’ questions!
Transcript
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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day! I’m Dr. Friday and the doctor is in the house. We are talking about my favorite subject. You know what? Time is flying, we are in the middle of November, not a whole bunch of time to actually make a lot of changes. But if you’re thinking about doing conversions, or if you’re thinking about taking some money out, maybe you had a hardship from COVID, and you need to do or you want to take some money out of your 401k. We’re going to talk a little bit about some advantages that may come up for that. Again, I am not a financial planner. So I’m going to talk about tax advantages. You should always consult with your tax person as well as your financial planner, before making any of these suggestions I will put out there. But if you have questions, you can certainly join the show by calling 615-737-9986. All right, and you can join the show.

Dr. Friday 1:28 Let’s talk about a couple of different things. We all know that at this point, we’re going to be moving forward. We know what’s happened in 2020 as far as taxes, there’ll be no change, we don’t really know what to expect for 2021. Depending on the final numbers and the count, if Biden is President, I think we’re going to see some major changes in what Trump successfully did for some tax changes. I think we’re going to find that we may find that there’s gonna be some changes that we may need to preempt. The hard part of that conversation is, when will it happen? I mean, when he comes in, will they immediately try to change or reduce the taxes that we know, or will it be something that’s gradual, giving us enough time to make some changes to adjust our taxes? So we know what’s going to be there and what’s not going to be there. So we want to make sure that we understand what the best options are. If you’ve got questions about that, or want to join the show about any other questions you might have, you can join it at 615-737-9986. All right, and why don’t we go ahead and hit Gary. Hopefully, my buddy on the other side here is multitasking. So we’ll see if Gary can be joined the show here or if we need to give him a second to type because you know, he only has two hands. Alright, so let’s see if we can get Gary on the show. Thank you, buddy. Appreciate it. Hey, Gary.

Caller 2:56 Yes, the question I’ve got for you is two parts. The first part is if you receive money from [inaudible] injury, do you have to pay taxes on that money?

Dr. Friday 3:08 Well, if it’s for injury, meaning it’s not loss of income, but you had it for medical purposes, then the answer is going to be no. If it was partly for injury and partly for loss of income, because you may not be able to work or earn the same income that you did before then the answer is part of it will be y

Dr. Friday Radio Show – October 31, 2020

Dr. Friday Burke — Mon, 02 Nov 2020 21:13:36 +0000

Another episode of the Dr. Friday Radio Show is here! In this episode, Dr. Friday answers all the caller’s questions:

Check The SBA If You’re Selling A Business That You Received PPP Money On

Cares Acts Deadline

Who You Vote For President Will Affect Your Taxes

Why You Need Help With Tax Representation

If I Gift A House, Do I Pay Taxes On It?

Get Forgiveness For PPP Loan

Can Entrepreneurs’ Taxes Be Forgiven After 10 Years?

and other callers’ questions!
Transcript
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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday. It is an awesome Saturday here at two o’clock on this wonderful Saturday and the weather. It’s Halloween people, this is a great time of the year. But you know what, we have to talk about a few different things. One, PPP. I had a situation that came into my office for all of you that may have applied or received PPP money, this may be something you may have to face. This particular person was in the process of wanting to sell the business. But they had received PPP money. So actually the SBA did release and we found out some pretty interesting information. So if you’re in the process of selling a business that you did get PPP money on, very important that you go and you check out the SBA, what you need to do, because it’s not just a matter that you can now sell that business because you want to, there are some rules and even possibly pay back that loan, because it’s not going to be with the same owner. So very, very important that we do that. All right. Well, we’ve already got somebody on the line, and I believe it’s Steve in Cooksville.

Caller 1:44 Yes, I was gonna ask I have a couple of annuity. They use of term qualified nonqualified. Just wondering, about the one that’s not the right base type of annuity. What would be the difference in having an annuity that you could have just a regular life savings account? You know, if it’s one that they talk about free money? On the statement, I could take out so much money, cash before the penalty. And I thought as long as I stay below it Is there much different than withdrawing as far as tax-wise?

Dr. Friday 2:21 As you said, Steve, if it’s not in an IRA situation, but it’s with an after-tax investment, you’re allowed once a year to take the money out a certain dollar amount without penalty from the annuity, you will pay on the tax first, most annuities take out the growth of the annuity first, leaving the original investment in there. So later on, you’ll eventually if you take it all out, we’ll eventually have that. So the biggest difference will be is that if you’ve had, let’s just say you’re taking $5,000 out and it’s and you’ve had 5000 in that year of growth, you’re gonna pay tax on all $5,000.

Caller 3:02 I know I’m sounding stupid here. But, when I get my statement ready to file for IRS, does it show how much or if that’s something totally taxable all the way or?

Dr. Friday 3:14 Right, they’re gonna give you that information, to be honest. You’re gonna receive a form called the 1099 R and in box one, it’s going to show the total distribution and in box two, it’s going to show the taxable amount, doesn’t mean they’re going to match. Theoretically, box five would be the difference. So just as a point of interest, yeah, you’ll find o

Dr. Friday Radio Show – October 17, 2020

Dr. Friday Burke — Tue, 20 Oct 2020 20:16:58 +0000

Welcome to the Dr. Friday radio show! In this episode, Dr. Friday talks with Russ Cook on questions about estate, setting up a trust, including the following topics:

What Is A Trust?

How You People Should Look At Their Estate Planning

How A Trust Works

When Should I Have A Will?

How Much Money Do I Need To Have A Will?

Should I Add My Children To My Bank Account?

Why You Should Have An Estate Plan

Is There An Estate Tax?

Do I Have To Change My Estate Documents Every Time the Law Changes?

Why You Need Help With Tax Representation

and so much more!
Transcript
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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:44 All kinds of great things. I do have a wonderful guest on and you can just open his line if you want. Russ Cook and Associates will be joining us today. Let’s see if Russ is online. Can you hear me?

Russ Cook 0:59 Yes, I can

Dr. Friday 1:01 Look at you. Technology is working fabulously. Hey, you know what? It is what it is my friend we all live and learn. Alright, so Russ, why don’t you tell my listeners a little bit about who in the heck is Russ Cook? Not that they shouldn’t know you already?

Russ Cook 1:20 Well, I’m a board-certified estate planning attorney. I’ve been doing it for over 30 years, my father and grandfather did as well. So it couldn’t escape generationally. Went to law school in DC and came here.

Dr. Friday 1:33 Lucky us. I’ve known you for good, I don’t know, 15 years, at least I guess. Russ handles all of my stuff and I refer him to my clients. I’ve got all kinds of noises going on over here. So today I want to have Russ on because it’s getting close to the end of the year. I always love having you on to talk about some of the things not even really necessarily the end of the year situation. But this year, gosh, it’s been a crazy year. But a lot of times, things happen every year. Dealing with estates, it seems to me that would be one of the things that we need to consider. How often should we look at our estate planning? Are there certain times when something major obviously people may be thinking of getting married or getting divorced? So is there a certain time period people should do it is every time there’s a major event? How should people look at their estate planning?

Russ Cook 2:28 Well, we’re sending letters out to our clients every two years, asking them to look over their estate planning documents, and if certain events have happened in their lives, then, of course, it’d be a good time to come in and review what they have. Because the estate planning documents are not only wills but also power attorney for financial matters, power attorney for health care matters, and living wills. You want to make sure that the people you have in place are the ones that you think will do the job.

Dr. Friday 2:57 Yeah, I have one that will pull the plug. I’m very happy with that theory. Okay, so one of the big things, and I learned this years ago from you, and I didn’t even know it. And I have people to this day that whenever I hear this, I’m like no, no, no. But how important it is to have like a joint bank account with your kids. A lot of times, especially as we get older, we want to make sure that our children have access to help pay for bills and things. So they add them to the bank account. Is that a good idea or not?

Dr. Friday Radio Show – October 10, 2020

Dr. Friday Burke — Tue, 13 Oct 2020 20:34:08 +0000

Welcome to the Dr. Friday radio show! In this episode, Dr. Friday gives all the new tax updates and deadlines, including the following topics:

October 15, 2020 Tax Deadline

Pay Into Your SEP

New Grant Program – Tennesee Department of Revenue

Apply For PPP Loan Forgiveness

All About The Cares Act

Tax Advantages To Giving To Charity

Need Help Getting Caught Up On Taxes?

Quarterly Payments For Entrepreneurs

Why You Need Help With Tax Representation

and other caller’s questions!
Transcript
Dr. Friday 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. We are here talking to you live. So if you’ve got questions, all you have to do is pick up the phone at 615-737-9986. We are taking your calls. Talking about taxes. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation which is pretty much what I do. So that means if you’ve got questions, maybe you’re getting ready to finish up those tax returns. I know I’m working most of the weekend, we have an October 15 deadline for filing your taxes assuming that you filed an extension. If you did not file an extension, then you are late. But if you did, then you have until 10/15/20 to file the actual paperwork. Now, remember, that does not and has not extended the amount due. So you could or will be getting hit with a penalty if you owe additional funds. If you’ve waited until the last minute. You also need to pay into your SEP, its one of the reasons many people delay is because they have extra time to pay into their self-employed retirement programs. So remember that deposit has to be done on or before 10/15.

Dr. Friday 1:43 So what’s new in the world of taxes and things? One of the newest things, there was a new program introduced by the Tennessee Department of Revenue the state of Tennessee has a new grant program available to reimburse small business and nonprofit organizations up to $30,000 in costs related to COVID. As recipients of the funds under the Tennessee business Relief Program, you can apply for this under tncareact.tn.gov/serg. If you need more information, I can send you a link to that. All applications have to be in before December 29, 2020. This is supposed to help cover costs to create social distancing measures, purchasing personal protective equipment for employees or customers contactless equipment, payroll expenses, and mortgage interest. So they are trying to help take the money that was given to them from the federal government during all of the cares act and moving that back through to the small business owner. So if you are still barely making ends meet, there is a criterion on this one, they are matching May through August of 2019 to May and August of 2020 to see if you have been affected by the COVID. If you have not been affected if you’re still making money still profiting doesn’t mean you can’t have a profit just means you’re not making the same amount of profits, then you may be able to apply. My suggestion is everybody should apply. If it doesn’t work well then fine. Most small businesses are having to do whatever it takes to survive. So again, if you are a small business owner, or working with a nonprofit, there’s up to $30,000 grant available, which means that you will not be paying that back It is a grant.

Dr. Friday 3:35 Then the next thing is PPP money. Now I know there’s no more PPP co

Dr. Friday Radio Show – October 3, 2020

Dr. Friday Burke — Tue, 06 Oct 2020 22:13:22 +0000

Welcome to Dr. Friday’s show! In this show, Dr. Friday and Nathan Wright talk about taxes, medicare, and so much more:

What Does Medicare Not Cover?

Do I want A Medicare Advantage Plan or A Medicare Supplement Plan?

Medicare Open Enrollment

Does Medicare Cover Everything?

Will I Get A Penalty If I Don’t Take Medicare?

Why You Should Be On Credible Coverage

Is Medicare Part B Optional?

Why You Need Help With Tax Representation

Transcript
Caller 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 All right, I am Dr. Friday here live. It’s a wonderful Saturday, October 3. I have a wonderful guest with us. If you want to join the show, today, you can at 615-737-9986. You guys have heard this gentleman’s name on my show before and his voice. We have Nathan right who is a specialist in insurance, especially specializing with people on Medicare. Hey, Nathan, can you hear me?

Nathan Wright 1:03 Hey, Dr. Friday, I can hear you.

Dr. Friday 1:06 I love it when technology actually works. I’m sure the guy in the studio is excited about that, too. All right. So today, we’re gonna cover a couple of different things. Are we getting to a point or a time where people should be looking at the types of insurance that they have? I know, there are certain times of the years that that’s more important than others?

Nathan Wright 1:26 You’re exactly right. So October 15-December 7 is what we call Medicare Open Enrollment. Actually right now through the 14th, it’s called the pre-shopping season.

Dr. Friday 1:38 It’s kind of like Christmas, you know, we have black Friday, a little pre-shopping and then rolls around. Eventually, we have Christmas. That makes life easy. Okay, so what does someone that is on Medicare need to know? If they think “Hey, I’ve got Medicare covers everything.” Maybe not?

Nathan Wright 1:58 It definitely does not cover everything. So in general, you’ve got deductibles, you’ve got expenses that are not going to be covered with Medicare, especially like vision, dental, and hearing that is something that is actually not covered by Medicare.

Dr. Friday 2:16 Wow. So I think we’re talking about Part B is probably standard Medicare, is that correct? And I’m not an expert at all.

Nathan Wright 2:25 So part B is actually the doctor portion of Medicare. Part A is going to be your hospital portion of Medicare.

Dr. Friday 2:32 Alright, so everyone gets standard, part A then?

Nathan Wright 2:36 So what happens is, when you first get onto Medicare, you’re gonna get Part A. Then Part B, they actually automatically sign you up for part B, unless you opt-out of Part B.

Dr. Friday 2:51 Right, which most of us won’t even know if we should or shouldn’t. So, if somebody is on Medicare right now, we’re getting ready to go into what you called the open enrollment. So they’ll be wanting to revisit the vision, the dental, those kinds, is that something they can control and still have their part A for doctors? Is each one of these pots is individual?

Nathan Wright 3:18 Well, Part A or Part B does not cover the vision, dental, and hearing. So these things called Medicare Advantage plans that many of those have those built-in, that you can get, in addition to M

Dr. Friday Radio Show – September 26, 2020

Dr. Friday Burke — Wed, 30 Sep 2020 13:01:50 +0000

Another episode of the Dr. Friday show is here! In this show, Dr. Friday talks about the new tax updates and deadlines, including the following topic:

Will I Still Get My Stimulus Check?

All About The Cares Act

The Tennessee Business Relief Program

Is The Stimulus Money Taxable?

PPP Money & Forgiveness

Why You Need Help With Tax Representation

EIDL Information

and other caller’s questions!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:31 All righty, we are live here. It’s a wonderful Saturday, whether it’s fairly nice, I guess you’d say fall is coming in, and tax season is upon us. October 15 is a major deadline for all of us that like to procrastinate or just the reason we like to extend it. So we can actually put more money into our SEPs or our 401 Ks, which can be extended to make payments if you’re self-employed. So there’s a couple of strategies we need to think about. We all know, it seems like I’m always talking a year behind, obviously, October 15 is for everyone that hasn’t filed an extension, but basically, we’re talking 2019. Meanwhile, 2020 is going to be probably one of the most unusual tax seasons I’ve seen in 25 years, which is how long I’ve been doing taxes. With the Cares Act, and all those different things happening, there’s been some changes, something I haven’t talked a lot about is during the Cares Act, they authorized an above the line deduction of $300 to donations. So you do not have to itemize to take $300 of donation. So you’ll take your standard deduction plus 300. So if you haven’t given to charity this year, because you’re always like, “Well, it doesn’t change, I can’t give enough to make a difference as far as itemizing.” It’s part of the conversation. If it’s not a tax deduction, maybe I don’t do anything with it. Well, it comes down to it, it’s going to be this simple, it’s going to be that you can give up to $300. Do not itemize, furthermore, increase your charitable contributions or monetary gifts up in 2020. So you might want to think about giving, but the $300 is going to be above the line. So that is a kind of an important thing that happened during the Cares Act.

Dr. Friday 2:24 Again, it’s a 2020 situation, 90% of my clients give more than $300 in a year no matter what, but if it’s a year in which you haven’t, and I realized, for many people, this has been a very difficult year. Keep in mind that sometimes doing this as far as giving charity, this is going to be an additional $300. So if you’re at the 10% tax bracket, it will save you $30 right 10% of 300 if you read the 15 or 2020 will save you $60. So, depending on your tax bracket, it’s going to put a few more dollars in your pocket. Small businesses are facing extremely unusual days, right? And we need to probably do more tax strategizing than we ever have. PPP money is coming in. I do want to make sure we talk about the Tennessee business Relief Program. There are quite a few people that I keep getting information on that there isn’t anything going that direction. I mean, they did not know it existed. They’re getting some letters, and they’re not really sure. So keep in mind, you have to have had a 25% drop in income and you have to be within certain types of industries.

Dr. Friday 3:39 Most of them are tourism or restaurants, florists, and those kinds of the one

Dr. Friday Radio Show – September 19, 2020

Dr. Friday Burke — Tue, 22 Sep 2020 18:12:58 +0000

Welcome to another episode of the Dr. Friday radio show! In this show, Dr. Friday shares all the latest tax updates, including the following topics:

The IRS Is Hiring

Why Have I Not Received My Stimulus Check?

Will There Be A Second Stimulus Coming?

Why Haven’t I Received My Tax Refund Yet?

The IRS Is Hiring

PPP Money: Forgiveness

Why You Need Help With Tax Representation

Is The Stimulus Money Taxable?

and other caller’s questions!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good morning, I’m Dr. Friday and the doctor is in the house. If you’ve got questions concerning taxes, if you haven’t filed your taxes for 2019, it is coming quickly. We only have until October 15. If you have a business, an LLC that is multi-member or corporation 1065, 1120, 1120-S, those were due on 9/15. So you may be late at this point, that’s assuming you filed an extension in the first place. Otherwise, you are just a late period. It’s time to talk taxes. If you want to join the show you can I am live here 615-737-9986. So we have a lot of things going on lately. Many questions coming from some of my listeners and clients concerning payments. Many people mailed in a check. And then obviously, it’s been months and they hadn’t cleared the bank. So in some cases, we have people that we told them to go ahead and make a payment. Because we had no proof in those cases that they had actually mailed the payment, besides their word, but there was no secured tracking. Then the checks are clearing the bank, and in some cases, they’re getting double payments, some cases that people made stop payments. The IRS is bouncing payments are getting returned payments, I should say.

Dr. Friday 1:52 This is a bit more confusing than our normal situation, and that’s all because the mailroom was months behind. Obviously, they’re getting caught up because they’re finding cheques and they’re starting to deposit them. The downside to that conversation is, is that if you already paid the bill once, you could end up either paying it twice. So I would double-check and make sure you made a stop payment. If you do bounce a check on the IRS, there are fees that they can charge you. So you need to make sure you’ve documented that the payment cleared. And the reason why you made the stop payment, etc. so that there is a chance of getting that penalty waived, most importantly, is tracking. So whenever you send something to the IRS a check, communication of any sort, you need to make sure that there’s tracking on it. So we have documentation showing that you filed this and that they received it. That way, you know, if you’ve got proof that they’ve received your cheque, but they just never cashed it, I would wait it out, especially in this year where we know that the mailroom was months behind in doing everything they need to do. Most importantly, you need to make sure that your communication is tracked because otherwise there’s no guarantee the IRS received it. Therefore, you may be waiting and accumulating penalties and interest on money that you assume they would get, and they didn’t. So very important for you to be able to track your information. The first lesson in dealing with the IRS, always make sure that you have a paper trail,l that is just common sense.

Dr. Friday 3:19 If you want to join the show, you can at 615-737-9986. Maybe you’re dealing with an IRS issue at th

Dr. Friday Radio Show – September 12, 2020

Dr. Friday Burke — Tue, 15 Sep 2020 14:17:33 +0000

Dr. Friday is back with another incredible Radio Show! In this episode, Dr. Friday talks all you need to know about taxes, including the following topics:

The IRS Is Hiring

PPP Money: Forgiveness

What Do I Do If I Haven’t Received My Stimulus Check Yet?

How Much Money Can I Gift My Child Per Year?

Selling Your Home & Capital Gains

Why You Need Help With Tax Representation

Will There Be A Second Stimulus Check?

Is The Stimulus Money Taxable?

and so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. I’m Dr. Friday and this is the Dr. Friday show. We are here to talk about my favorite subject, taxes. If you want to join the show, you can 615-737-9986. We’re taking your calls talking about again, my favorite subject taxes. Maybe you haven’t filed taxes in a number of years. Now maybe the time to think about making a deal with the IRS getting caught up getting everything filed. Very difficult to move forward with purchasing houses going to college. A lot of times college kids need to have parents tax returns. If you haven’t filed those, it’s very difficult to get funding. Or you’re wanting to start over and you’ve got a lot of things in the past that just happen. We can’t change the past. But what we can do is get it taken care of. So it’s not continuously coming back. So if you’ve got questions on that, or remember, coming Tuesday, if you have a business that would be people that are operating as a corporation, a partnership, a trust, in most cases, unless you’re on a fiscal year, all of those are due September 15. So that is next Tuesday. So if you haven’t filed, I would suggest that at this point, you probably better figure out something to get into a tax program because I doubt you’re going to find a tax person Monday to do your taxes. Otherwise, you’re going to have some serious late fees. Now that’s assuming that you actually filed an extension. If you didn’t file an extension, you are already late as individuals You have until October 15. And those deadlines are coming very quickly. If you don’t have someone to do your taxes and you’re still looking for help, you can go to my website, Drfriday.com. Click on appointments and set up an appointment, I’d be more than glad to still help you. I believe there are still some appointments open for us to help you get filed. Again, this is for individuals that filed an extension. If you haven’t filed an extension, then you’re late already on your individual tax returns.

Dr. Friday 2:30 Here is some good news for individuals who haven’t received their stimulus checks or were paid too little. The IRS will be able to correct amounts in certain cases in creating processes that help some people who are due to an economic impact payment but never got it or received at the correct amount. But you know, for people like identity theft, innocent spouses, or just people that made a mathematical error on their tax returns, they’re hiring about 5000 new employees. So again, if you don’t have work, might well look on the irs.gov website then look and see if there’s a job opportunity. They are looking for people to help them with the backlog of emails, calls, and obviously stimulus checks. So it’s not over if you haven’t received your stimulus check, to be quite honest, if you haven’t received it, and we’re by the end of the year, you will be

Dr. Friday Radio Show – August 29, 2020

Dr. Friday Burke — Wed, 02 Sep 2020 02:41:55 +0000

This week’s Dr. Friday Show is here! In this episode, Dr. Friday talks all about tax updates, and the following topics:

Will There Be A Second Stimulus Check?

What Do I Do If I Haven’t Received My Stimulus Check Yet?

Is The Stimulus Money Taxable?

Is There A Way To Deffer My Social Security Tax?

Should I Pay The IRS Electronically Or Through Mail?

Why You Need Help With Tax Representation

PPP Money: Forgiveness Or Pay Loan Back?

Help If You Haven’t Filed Your Taxes

and so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can sure cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. So if you’re thinking about taxes, maybe you’ve had something come up in your tax situation, buying, selling, changing any of those kinds of things, then you might need to ask a question. Because once you do something, it’s really, really hard. In fact, in some cases, totally impossible to correct where we might have been able to save you tax dollars. You can’t do it if you change things. So if you go without I mean, you go sell a large piece of property and maybe had the ability to tote the note or do something where you may have been able to save some taxes. Sometimes it’s not a good idea. Sometimes it is, but you need to know what your options are. So you can move forward and make sure you’re doing what you need to do and when you need to do it. If you want to join the show, all you have to do is call 615-737-9986 is the number here in the studio. We are live in-studio and as you guys know, we are working nowadays via Skype through our home offices. So if you’re hearing a little bit of a whine, I have a nine-week-old Great Dane puppy in the office with me here. He’s not totally happy because he’s no longer the center of attention for a bit of time. So just the background noise maybe a little bit scratchy from time to time, and that’s alright, you know what, they’re great and I love my baby. So if you have a call or you want to join the show again 615-737-9986.

Dr. Friday 2:00 Okay, so one of the biggest questions that I keep getting asked, Do I think there’s going to be another stimulus? So I went out there to take a look not just on my own opinions, but what other people what other companies and individuals are saying and it really sounds like individuals are probably not going to get another package. There may be because there was still leftover PPP money that may be able to do but basically, they’re now saying that what was going to be a possibly fairly decent size bill is probably not going to pass again, Republicans are feeling the pain of the first bill. Democrats are wanting to have more money put towards the post office and other situations before they’re willing to either come back to the table. So for all of us that kind of sit a little bit in the middle saying, “Why can’t we make things work? Why can’t we do things?” Well, that is why it’s a little bit more difficult. So most of us are looking at the right now PPP money. We’ve received it hopefully since it’s no longer available out there. But taking the PPP money and making sure you have a couple of options. Obviously you also have the employee credits that you can take. But remember, you can’t take both in some of these cases. The same thing with the self-employed, you can’t take both. If you’re self-employed and you’ve got Unemployment and you got P

Dr. Friday Radio Show – August 15, 2020

Dr. Friday Burke — Wed, 19 Aug 2020 12:35:22 +0000

Welcome to the Dr. Friday Show! In this episode, Dr. Friday talks all about tax filing, tax updates, and the following topics:

PPP Money: Forgiveness Or Pay Loan Back?

How Who You Elect As President Will Affect Your Taxes

Why You Need Help With Tax Representation

When Do Business Tax Returns Have To Be Filed?

The Extention For Unemployment

Should I Pay The IRS Electronically Or Through Mail?

Can I Take Money Out Of My 401K?

Will There Be A Second Stimulus Check Coming?

and so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Hey, this is Dr. Friday and I’m living here in the studio and we’ve got quite a show to do. And if you’ve got questions, I would say now’s the time to pick up the phone. It’s gonna be a great show. Call the number 615-737-9986. We’re going to talk about several emails that came in this week. We want to start the show out strong because many companies small business owners received PPP money. That was the payroll protection money. In some cases, it was needed you were going to keep your doors closed. But in other cases, it was helpful. It was a way of keeping because many companies were not sure exactly if their businesses were going to get closed, what was going to happen, especially restaurant owners. But with lots of my clients, I will have to say we’ve been blessed to the extent that they were able to make up or to move forward with money that came from the PPP, but they can drive through and pick up and delivery. A lot of local people were great as far as using the local services. And so they really did not have any layoffs. And they didn’t have as much loss of income as they were expecting.

Dr. Friday 1:45 So one of the big questions comes is by using the money and getting it forgiven. That means that in the case of let’s just say a small restaurant that maybe received $30,000 in PPP money, but they didn’t really have any major loss because they were able to tighten down they were able to continue to pay their rent and everything with the profits. So the PPP was really used to pay the payroll. So now they paid payroll, they can get it forgiven because they met the criteria, but now they have $30,000 more income in 2020 than what they would have normally had because they’re going to lose that $30,000 deduction. PPP paid for it, they didn’t, they now have a larger profit. So the question comes is this, if you don’t go for forgiveness, you have a 1% loan for five years. And the question comes in, it’s gonna be different for everyone but something you might want to talk to your tax person or do some number crunching depending on how much money you made, and how much profit you are showing for 2020. We pay tax and most of my clients are many of them in the 22% to 25% tax bracket in some cases, would it be better not to ask for forgiveness and to pay that money back over a period of time, or to claim the profits and have to pay 22% tax and in some cases self-employment tax, which adds that another 7.65%. So that could be almost a 30% tax, in some cases or anywhere somewhere there. So that’s the question you need to really think about in some of my business cases, we have come to the conclusion that it may be smarter not to ask for forgiveness, but to actually pay the loan back at 1% interest. Better to have control and do what you need to with it than to even though they would legitimately qualify for forgiveness, the prophets are getting into a tax

Dr. Friday Radio Show – August 1, 2020

Dr. Friday Burke — Thu, 06 Aug 2020 20:02:50 +0000

Welcome to another episode of the Dr. Friday Show! In this episode, Dr. Friday talks all about tax filing and the following questions:

What You Can And Can’t Use The PPP Loan For

The EIDL Loan Eligibility

What You Can And Can’t Use The EIDL Money For

Update On The Heroes Act

Can I Get Both Unemployment And PPP Money?

Will There Be A Second Stimulus Check Coming?

Why You Need Help With Tax Representation

Talking About Capital Gains

and other caller’s questions!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day I’m Dr. Friday and the doctor is in the house but we’re going to have an unusual show today. So if you have a question, you can either text 615-367-0819 or you can just email Friday@drfriday.com. Both lines are down so we won’t be able to take your calls directly but again throughout the hour I will give out those phone numbers and email so that you can if you have questions, even if they Don’t make it on the air, I will do my best to make sure that you get the answers that you need to make good tax decisions, because that’s what this show is all about. As an enrolled agent licensed by the Internal Revenue Service, what we are trained to do and what I’ve tested for 20 plus years is to make sure that people have the information at their fingers to make good decisions because sometimes one decision sounds really good. “I should pay off my house. Oh, shoot, now I owe taxes on the money I took out of my retirement account. ” or things like that. Sometimes one hand doesn’t always go with the other. So making the right decisions with the right tools is what I want to be able to give people. But if it is that I want to make sure you have the information now to make the decisions. Especially now, we are in the middle of something that many of us have never dealt with in the past.

Dr. Friday 1:53 One of the big questions I’ve had we’re going to start the show out with today is self-employed individuals. So in most situations, for example, my business is a corporation. I can’t go get unemployment under my Corporation. But the employees that worked for me if for some reason they weren’t able to continue working may have been able to apply. We’ve been blessed, and that hasn’t happened. But as a self-employed a 1099 person. Many people applied for both the PPP Program and Unemployment. And so now they have the money on both, which means you’ve been paid twice for your time, right? Because if you went and got Unemployment, and maybe it didn’t cover the full income you normally have it doesn’t make a difference. It was covering you were saying you were unemployed during that time the unemployment kicked in, but at the same time you applied for what we refer to as PPP loans. That is also supposed to be 2.5% of your income, and you had them at the same time, you cannot push the PPP out, saying, “Well once Unemployment ends, I’m going to use the PPP money to pay me,” because it will no longer be forgiven. And kind of what you’ve done is double-dip on the same amount of salary. So you’ve been paid for the same time twice. So they’re really, really looking at this. Now many people have not gone into forgiveness yet, some have. If you’ve gone in under the PPP and did the forgiveness, and got forgiven on the PPP, but you also took unemployment you will have at some point, they’re saying that there is going

Dr. Friday Radio Show – July 18, 2020

Dr. Friday Burke — Fri, 24 Jul 2020 14:43:41 +0000

Another episode of the Dr. Friday show is here! In this episode, Dr. Friday talks all about tax filing and the following questions:

Will There Be A Second Stimulus Check Coming?

It’s Not Too Late To Apply For The PPP Loan

When The Federal Unemployment Ends

Do You Need Help With QuickBooks?

What To Do If You Haven’t Filed Your Taxes Yet

Do You Need Help With Tax Representation

Can I Call The IRS About My Stimulus Check?

and other caller’s questions!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Hey, good day. I’m Dr. Friday and the doctor is here live on the air. If you want to join the show you can at 615-737-9986. I realize we’ve made it through the big tax deadline of July the 15th. Sounds weird to actually say after 20 plus years of doing taxes. And then of course we were able to file extensions for many of you that may not have been able to file taxes, just as we would have done on April 15. Those extensions are good for individuals through October 15. So hopefully now, I just want to reiterate that that does not extend the money you owe. So if you didn’t file the taxes because you knew you didn’t have the money and right now you have no idea where you’re going to get the money from. Just be prepared that the money is charging penalties and interest on that money as it grows. There is a failure to pay but as long as you filed an extension, at least you won’t get the failure to file extension on top of everything else. I do want to just put out some good news for a few of you that are thinking about maybe doing some shopping, just don’t forget next weekend, Friday the 31st through Sunday, the second is our sales tax holiday. So there’s a lot of things that are exempt like clothing, but some apparel that is priced at more than $200 per an item. Those things are exempt, you don’t get sales tax holiday on those but anything that’s under the $200 per an item, those will actually get school supplies, obviously, computers, but there’s you know good things. So if you’re a small business owner and maybe you’ve been meaning to purchase a printer, something maybe this in this state, you know that can be 9.75 almost the 10% savings, just not having to file sales tax.

Dr. Friday 2:31 I will tell you again if you are a small business owner, there is some tax relief coming our way for TNTAP if you file your sales tax or your business license, franchise excise tax, all of those are filed liquor taxes, all on that account. Some businesses won’t be every business but there are some businesses that will qualify for eligibility through the Tennessee business Relief Program. Barbershops, beauty shops, nail salons, a lot of them that were been forced to close. People in the museum park or bowling alleys, gyms, fitnesses, restaurants, bars, hotels, theaters, agents of any athletes or independent artists, writers, performing artists. All of those are going to fit in. There is some additional relief that is available now. So my suggestion is if you’re in those criteria, or you want to know more about it, just go to Tennessee Department of Revenue, website or revenue.support.tn.gov. Alright, so if you want to join the show, you can 615-737-9986. A lot of talk on the news. In the areas of which we’re always listening to is there going to be a second stimulus?

Dr. Friday 3:49 It really does look like there is going to be a second stimulus. I cannot say at this t

Dr. Friday Radio Show – July 11, 2020

Dr. Friday Burke — Wed, 15 Jul 2020 18:37:35 +0000

The Dr. Friday show is here! The tax filing deadline is coming up, and Dr. Friday talks all about taxes, tax filing dates, and the following questions:

It’s Not Too Late To Apply For The PPP Loan

Do You Need Help With Tax Representation?

When Stimulus Checks Will Be Done Sending Out

Will Filing An Extention Help You Or Hurt You?

Can I Still Apply For EIDL Loan?

Will There Be A Second Stimulus Check?

Get Help With QuickBooks

Why Have I Not Received My Stimulus Check?

and so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. We are live here in the studio. I keep saying in the studio because for 10 years we are physically but we are still live on the radio. Now I’m in my home studio I guess they keep everything safe and sound. If you want to reach us at 615-737-9986 is the number here in the studio. We are on the last weekend before taxes are due. They are due this Wednesday coming on the 15th of July. So either does an extension. Remember extensions do not extend the amount due or file your taxes. So we have someone that called in early and they’ve been on hold for a little while. So why don’t we go talk to Brian and see what his question is? Hey Brian.

Caller 1:23 Dr. Friday, my daughter may come into a house, irrevocable trust, or a will. My question is, can she Give that to me? Can I live in it? Will she be paying taxes on it? How can we get that situation to where she owns it? But I am the one who lives in the house.

Dr. Friday 1:49 Well, there are a couple of options that you would have. I mean, since she’s inherited it, she already owns it. So that’s not really a question and when she inherits there should be no tax because there should be a step-up in basis that the date that she received it, so whatever date the value is, would be what she would inherit it. So that would be what she would later use for if she eventually sells it. She could do a perpetual agreement where you have a lifetime lease on the house so that it can’t be sold if part of the agreement of her inheriting is that you are able to live there for the rest of your life. There is the ability to have that kind of leases where someone can’t just sell it out if there’s something that happened to her. What would happen to the house if you’re still living, those are the kinds of considerations you might need to have. Theoretically, she doesn’t have to rent it to you, you could live in it and you maintain it or she maintains it and it’s an investment into her home, she didn’t have to consider it a rental because she’s not charging a fair rent to you. Or if she is then you could just treat it as a regular rental. I don’t know the whole situation but you do have some options.

Caller 3:00 So simply, she gets the house I’m allowed to live in and I pay all the bills all the taxes, upkeep it. It’s still her house. But I’m the one who lives in it just free and clear. Right?

Dr. Friday 3:13 Exactly, exactly. That would be the simplest, but I would make sure, God forbid something happened to her and whoever inherits the house after her that same agreement rolls if that’s the agreement in the existing will. I’m just saying, you might want to make sure you have something in writing and notarized so that you know, there’s a backup plan just in case.

Dr. Friday Radio Show – July 4, 2020

Dr. Friday Burke — Sat, 11 Jul 2020 12:30:50 +0000

Welcome to another episode of the Dr. Friday show! Don’t miss out on this episode where Dr. Friday talks all about taxes, tax filing dates, and the following questions:

Do I Have To Pay Back TNTAP?

Do I Qualify For TNTAP?

Can I Still Apply For PPP and EIDL Loans?

Will There Be A Second Stimulus Check?

How Filing An Extention Will Help You

Do You Need Tax Representation?

When Will Stimulus Checks Be Done Sending Out?

and so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:31 I’m here live so if you want to reach me You can call me at 615-737-9986. Hope you guys are having a wonderful Fourth of July. I know that there’s going to be some fireworks around town so hope everybody will enjoy it. In my opinion, one of the fun parts of the day hopefully enjoys the fireworks this evening. It used to be one of the days we actually spent time as a family. But now a lot more people are spending more time together than they might wish sometimes. So hopefully you are going to enjoy this day and have a fun picnic or something. The weather, at least here is actually in a really good place. It’s overcast mostly. So it’s a pretty decent day out. So if you’ve got questions, we’re down to the wire here, we’re only going to have until 7/15/2020 and then you either need to file an extension or file your personal tax returns. Remember, if you were a business, you did have to have your extension filed by the 3/15/2020 deadline. So if you haven’t filed your business and you haven’t filed an extension, sooner versus later would be the answer to that question. So if you’ve got questions, call 615-737-9986 and it looks like we’ve got someone already on the line, so let’s hit Barry. Hey Barry.

Caller 1:51 Dr. Friday, thank you. How much money Cash Money can a Father give to the Daughter in whatever period of time and is it taxable?

Dr. Friday 2:06 So theoretically you can give them $11 million and that would be your lifetime allowance at this point assuming that you pass away while this law is current, this so you would have to file a gift tax return. Otherwise, it’s $15,000 per year that has no effect on your lifetime allowance and it is not taxable. The person giving the money is going to pay the tax it has to be after-tax dollars that you then pass on to a child or a spouse or whoever you’re gifting it to. So they don’t have to pick it up. The person that gives the money would pay taxes on it before it is actually gifted.

Caller 2:44 Okay, so it’s money already earned. It’s in the bank and we’ll say a safe deposit box. It’s just $15,000 a year?

Dr. Friday 2:54 $15,000 a year per spouse or parents so if you’re married, you and your spouse can give your daughter 15 each, so a total of 30. But if it’s just you and your daughter, then you could give them $15,000 a year.

Caller 3:07 A year. Okay, and it’s just like it never happened. Right?

Dr. Friday 3:10 Exactly.

Caller 3:11 Well, that’s good info. Thank you so much. I appreciate it.

Dr. Friday 3:14 Appreciate the call. Thank you. That was a great phone call. It’s something that you do and you can I mean, sometimes giving. I know a lot of times people will help their children maybe give down payment for their house, or something like th

Dr. Friday Radio Show – June 20, 2020

Dr. Friday Burke — Thu, 25 Jun 2020 21:47:57 +0000

Welcome to the Dr. Friday show! In this episode, Dr. Friday talks all about taxes, tax representation, and the following questions:

Is A 401K Or Roth IRA better?

Why Have I Not Received My Stimulus Check?

How To Do Taxes As A Small Business Owner

How Much Of Social Security Is Taxed?

Do You Need Help With Tax Preparation?

Will The Stimulus Check Be Taxed?

Get Help With QuickBooks

Do You Need Help With Tax Representation?

And so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good morning, this is Dr. Friday and the doctor is in the house and we are talking about my favorite subject which is taxes and that day is coming quickly. Have we ever thought that we’d be saying July 15 as our filing date? I can guarantee you, no, that was never something that I wanted to extend as far as I was concerned. I think anytime we do we just extend the whole thing but it has happened. We are working on it and so if you need you might want to go ahead and make sure your tax appointment if you’re using all services or anyone else’s, I’m assuming that they’ve opened their calendars up again. So just make sure that you have an appointment to get your taxes completed, make sure they are done or an extension is filed. Again, extensions do not extend the amount of money that you owe, but they do extend the time that you can file the taxes, which sometimes is necessary, especially if we’re working with multiple entities and having to wait for other tax returns to be completed before we can complete your individual tax return. The Internal Revenue Service has come out with for any of you and a lot of people I know that we have about 200 individuals that receive PPP money through our firm, our systems I should say we don’t offer PPP money. But one of the questions that we’ve been going back with is, is PPP money the forgiveness? So the IRS has basically answered the question in public guidance saying to prevent double taxation, the expenses are not deductible. So if you get forgiveness for the PPP loan, whatever money that was forgiven, which most likely is going to be payroll, rent, and utilities, that you would then have to claim that you will not be able to claim those expenses. So it’s going to be a little interesting with individuals that are sole proprietors.

Dr. Friday 2:16 As you know, Schedule C individuals are able to get a percentage that is now based on line 31 of your 2019. schedule C. So the problem is, let’s say you get two and a half percent of that and you pay yourself now you’re going to have to pick that up as income because you did not pay somebody else that money, you paid it directly to yourself. I will tell you that there are many firms that have pledged to reverse this with Congress and we are waiting to see if that is going to be reversed. Otherwise, Schedule C individuals that did not pay other individuals through forms of payroll or rent. Now if you paid rent or utilities, you won’t be able to claim those but your actual payroll which is always based on total profits will have to somehow be reversed and that’s going to be the interesting part of that conversation. Now I have many people that are facing a dilemma and you may or may not be but they were unemployed. So they went to collect unemployment and then they also a Schedule C individual went to collect PPP money. So the question is going to come back as if you’re paying yourself a full wage, are you actually allowed to

Dr. Friday Radio Show – June 13, 2020

Dr. Friday Burke — Thu, 18 Jun 2020 13:12:19 +0000

Another episode of the Dr. Friday show is here! In this episode, Dr. Friday talks about taxes, representation, and the following questions:

New Changes To The PPP Loan

How To Do Taxes As A Small Business Owner

Get Help With QuickBooks

Is It Too Late To Apply For A PPP Loan?

Why It’s Important For Someone To Represent You

Is The Stimulus Check Taxable Money?

Help With Tax Preparation/Representation

Will There Be A Second Stimulus Check Out?

And so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day, I’m Dr. Friday and the doctor is in the house. We are here today to talk about my favorite subject as an enrolled agent licensed with the Internal Revenue Service. What I do is taxes, top taxes, live taxes, love taxes. So if you have questions concerning your tax preparation, remember July 15 is the new deadline. So if it comes to time and you need to be able to do something with your taxes, you need to be able to go in there and see what you can do to make it happen for you. But otherwise, the phone number here in the studio 615-737-9986. We are taking your calls and let’s go ahead and hit Joe since he was nice enough to call. Hey, Joe.

Caller 1:13 Hi Dr. Friday. Thank you for taking your time on Saturdays to come in here and help us out. Here’s my question. We have terminated about 10 days ago at my job. The new company came in and gave us positions now. I’m going to need to do a 401 rollover. My old 401 daily access in the new one is like fidelity. Do you do 401 rollovers for people? Should I come in and see you?

Dr. Friday 1:52 I don’t sweetheart, thank you for even asking. No, I did the tech side. So thank goodness you’re not taking the money out. As a rollover, there’s really not a lot of things to worry about to the extent that they’re going to re-ask you to reallocate, possibly. Are you going to take plan one plan to plan three? I’m not sure how old you are and what your situation is, but I’m assuming they’re going to have you when you do the rollover reevaluate since you’re going to a new company. Other than that, as long as you’re not taking any money out, there shouldn’t be any tax situation.

Caller 2:27 Excellent. One more thing, Dr. Friday. I snail mail my taxes every year and sent them in on April the 14th. I haven’t seen anything was about eight weeks ago. So they’re probably that far backed up. Would you agree?

Dr. Friday 2:44 Yeah, I’m getting quite a few phone calls on this to be quite honest with you. Thanks for bringing it up because it’s probably other people listening to asking that same question and the answer is yes. I am working with the idea that especially with snail mail, as you know, I love to say but if You mailed it, it can take 60-90 days for that to actually get processed. But even people that are filing they’re finding delays longer than the 21 days. So just be prepared to wait a few a bit longer as my suggestion.

Caller 3:14 Dr. Friday, have a blessed day. Thank you again.

Dr. Friday 3:18 Thank you appreciate the phone call very much. All right, let’s go ahead and continue this with Dallas.

Caller 3:25 Hey, Dr. Friday. I just helped a mother in law redeem some stock price, and she got capital gains and I looked online and I got some confusing information abo

Dr. Friday Radio Show – June 6, 2020

Dr. Friday Burke — Thu, 11 Jun 2020 13:38:54 +0000

Welcome to another episode of the Dr. Friday show! In this episode, Dr. Friday talks all about taxes, upcoming dates, and the following topics:

Do I Have To Pay Back The Stimulus/ Pay Taxes On It?

How Much Of Unemployment Is Going To Be Taxed?

Do You Need Help With Tax Preparation/Representation?

How Entrepreneurs Need To Do Taxes

Will There Be A Second Stimulus Check Coming Out?

What To Do If You Need Help With Tax Preparation/Representation

What To Do If You Don’t Need/Want Your Stimulus Money

I Owe The IRS Money, Will I Get The Stimulus?

And so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. I’m Dr. Friday and I am all set to have a wonderful show today. Hopefully, you guys are too. We’ve had a few chances for individuals that may be small business owners. The President didn’t sign in and additional change. So instead of having the eight weeks we now have 24 weeks to spend the money for the PPP. Instead of some of them expiring in July it’s going to go through December. We’re going to have five years to pay back if you can’t meet forgiveness instead of two. There’s going to be some additional things with the extension of a company paying portions of their payroll taxes, they are going to be able to be forgiven. So they’re really working hard to find ways to be able to help small business owners to continue to try to figure out how to get their doors open with all the people and things stopping and doing things. It’s very difficult when you can’t get the employees because, in my opinion, they’ve maybe over thought unemployment. The Federal the cares act, unemployment expires on July 31. I know many people who really need that money. In statistically in a large number of cases, people are making more money on unemployment than they were making when they were working, and that is a problem, which they are trying to address in the Heroes Act, which is now at the Senate. They’re trying to figure out possibly another stimulus check, that’s on the table. But we don’t know for sure what or where that’s going to lead. The president’s office has basically said nothing’s going to be done until after July and now with many people protesting, rightfully, some of the things going on, they’re wondering if that’s going to slow down what’s happening in the Senate and Congress because they’re going to be trying to figure out additional things that need to be done with that situation.

Dr. Friday 2:34 So if you’ve got questions, if you’re a small business owner, especially maybe dealing with PPP, or EIDL loans. At this point, I don’t think there’s a lot of ideal loans going out. But if there’s either those you have questions on along with what we’re going to do to move forward. Don’t forget July 15, we have to file our taxes or we file an extension. Now, it used to be the extension was six months after the due date. That has changed, obviously, unless something changes from now, it used to be six months from April 15. So if you choose to file an extension in July, it will still be due in October for individuals, and in September for business owners. Either way, you can join the show 615-737-9986 if you have questions concerning taxes, or maybe something that’s going on as far as the PPP or additional small business loans that are out there. 615-737-9986 talking about things mainly about

Dr. Friday Radio Show – May 30, 2020

Dr. Friday Burke — Mon, 01 Jun 2020 16:47:04 +0000

Welcome to another episode of the Dr. Friday show! In this episode, Dr. Friday answered all the caller’s questions about taxes, stimulus checks, and the following topics:

I’m On Social Security and I haven’t Gotten My Stimulus Check. Why?

How Entrepreneurs Need To Do Taxes

How Much Of Unemployment Is Going To Be Taxed?

Is There A Second Stimulus Check Coming Out?

What To Do If You Don’t Need/Want Your Stimulus Money

Do You Need Help With Tax Preparation/Representation?

Why Have I Not Received My Unemployment Paycheck Yet?

Documentation For Employer’s With PPP Loans

Why It’s Important For Someone To Represent You

And so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:26 Good day, I’m Dr. Friday and the doctor is in the house. We are here talking about my favorite subject, which is taxes, taxes, and more taxes. It can’t be taxed when it comes to this kind of thing. So we will be able to move along and do what we need to do. If you want to join the show, call 615-737-9986 which is the number here. Maybe you’ve started to do your tax return. That would be something that people need to think about doing maybe a little bit. We have a situation where we have taxes due and they’re gonna be here before you know it. July 15 is the new April 15, just for this year. So don’t think every year that’s going to be the situation. But we do need to start preparing taxes getting ready to start figuring out if you owe money do you need to be able to pay it? What you’re going to do maybe making payment plans if you haven’t worked and you have some situations, things you need to deal with. So if you want to join the show, 615-737-9986. I’m doing a lot of reading on a couple of different things. One of the things we all have to deal with, of course, as business owners are the PPP Fund, the Payroll Protection Program, and many are getting letters now. It’s getting close to that eight weeks. So instead of being looking to achieve getting the money Now we’re looking to see if there’s forgiveness. Then there’s another element to that for many of us, we’re trying to figure out if they forgive the loan, does that mean they forgive the expenses? So in the tax or the accounting side of the situation, are they going to also say that you can’t claim the payroll expenses that you paid out if they have forgiven the expenses? So we’re still waiting to hear exactly how the IRS is going to rule on that question. We’re not too sure. But I will tell you keeping really good records this year is going to be essential. We need to know about how we’re going to get the PPP how the money’s been spent if we get forgiveness if we do not the 1% loan over 24 months, how we’re going to pay that what we’re going to do with it. So it’s really, really important that people, you know, do what they need to do. I know a lot of people are like, “The economy hasn’t really fully bounced back” even though the markets doing pretty good if you’re in the stock market side of thing. When it comes down to it, we still have to figure Figure out what we’re going to do with the rest of it. So looks like we might have a caller. Can’t tell if it’s actually ready. If Sue’s ready to go ahead and hit it, we’ll go for that one. Hey, Sue, what can I do for you?

Caller 3:14 Yes, I have a question. I make 166

Dr. Friday Radio Show – May 16, 2020

Dr. Friday Burke — Thu, 21 May 2020 13:05:12 +0000

Welcome to another episode of the Dr. Friday show! In this episode, Dr. Friday answered all the caller’s questions about taxes, stimulus checks, and the following topics:

I’m On Social Security and I haven’t Gotten My Stimulus Check. Why?

Will I Get The Stimulus Check If I Owe The IRS Money?

Reasons Why Some People Won’t Get The Stimulus Check

Are Medical Bills For A Dependant Deductable?

What Part Of Unemployment Is Going To Be Taxable?

When Are Estimated Tax Payments Due?

Do I Have To Pay Back The Stimulus/ Pay Taxes On It?

Does My Child Qualify For The Stimulus Check If They Have A Job?

Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. I’m Dr. Friday and the doctor is in the house. Hopefully, you guys can hear me. I am ready to go. We got some conversation to go after. We’re going to be talking about the stimulus check because that is on everyone’s mind about where your refunds might be. If you have some issues with the IRS which direction we need to go. If you want to join the show, you can at 615-737-9986. Why don’t we go ahead and go right to the phones, we’ve got Tony that’s called before the show started. So let’s start with Tony.

Caller 1:06 Dr. Friday, you stated my call. I’m on Social Security, don’t file income tax, I get direct deposit for my Social Security. I haven’t seen any money. I went online, and they say there’s not enough information about me. Do you have any insight as to what’s happening?

Dr. Friday 1:27 Well, I do. It’s probably not what you wanna hear but thank you for calling because this is a question that is on a lot of people’s minds, not just yours. We probably get at least 10 phone calls a day. So here’s what we’re hearing from Social Security. You’re not getting your check directly from the IRS. It’s going to be going through the Social Security the same way you get your monthly checks. Those checks were delayed waiting for non-filers with children in their homes. So they started issuing them about a week and a half, two weeks ago to them. The IRS is issuing 5 million checks a week. Obviously like I said, Social Security and IRS are both issuing these. They’re going to be issuing all the way up until September. So I know everyone’s like, “Oh, everyone else got one, but I didn’t get one.” There are millions of people yet haven’t gotten them, Tony. So you are on the list. Unfortunately, I can’t tell you when. The website is more confusing to individuals, in my opinion, in some ways than helpful because getting a thing saying there’s not enough information or the information you’re putting in doesn’t match is more frustrating than helpful. So, again, Social Security doesn’t issue the checks themselves, but they’re using the same banking information. So keep an eye out. I can tell you that as of about 10 days ago, several of my own personal clients called me and said that they had received and these are people that are only on Social Security non-filers that and they did receive them. So I know that it has started with Social Security. I don’t know how many people are on Social Security, but a large number, so I’m assuming it’s going to spread out, Tony.

Caller 3:07 I get direct deposit, will I get it direct deposit or check?

Dr. Friday 3:10 Absolut

Dr. Friday Radio Show – May 2, 2020

Dr. Friday Burke — Tue, 12 May 2020 11:05:43 +0000

Welcome to another episode of the Dr. Friday show! In this episode, she answers all your questions about the tax filing as well as the following topics:

Can I File for a PPP Loan?

If I’m Still Working, Do I Qualify for the PPP Loan?

I Still Haven’t Received My Stimulus Check

Do I Qualify For Unemployment?

Is The Stimulus Check Returnable?

What Taxes Do to File to Qualify For the Stimulus Check

When Are Estimated Tax Payments Due?

Can I Claim a Home Office On My 2020 Tax Return?

And so much more!
Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day. I’m Dr. Friday and the Doctor is in the house. We are live, so if you want to join the show call 615-737-9986. I know there are many of you still listening to the show that has not received your stimulus check. At this time, all I can tell you is the website is not necessarily giving all the information that you’re needing. Obviously those situations where people are talking about details and it’s coming back that they can’t match it. If you have your adjusted gross income and you’re putting it in for 2018, it doesn’t match what the IRS is showing. Many times that is happening, do not get too stressed over it. I do realize that money is getting tight for many people. So you’re really needing that extra assistance. But to be honest, I do have good news, at least people that are on social security and VA I will say as of this last week, I have received calls from many of the listeners that are keeping me in the loop and they are starting to receive their stimulus money. Again, not everyone has received it so you’re not the only person out there that hasn’t received their stimulus. If you have questions, the easiest or the only place the absolute only place I can suggest you going to is IRS.gov and go to the stimulus check to see your status. If it’s not giving you a good status, I am under the understanding that the IRS phone numbers are working. It’s just that again, there are millions of people that still haven’t received the money or trying to get answers to other questions. Therefore, the phone lines are backed up for hours if not hanging upon you as soon as you call, which is what happened to me. So I’m just making the assumption.

Now, if you’re a small business owner, a self-employed individual that receives 1099, there was still as a Friday at least PPP money out there for all entrepreneurs and small business owners. You can use your schedule C which had to be prepared, at least prepared for 2019. If you have received your PPP money or your EDIL money that’s forgiven. Remember, there are some steps we must take from the date of receiving it, you must prove that 75% or more was used on payroll and that does not include the payroll that you have for your company portion of the payroll tax, it is only the employee portion health insurance for the employees. I can’t see on my monitor just in case I don’t see the screen. If there’s any callers or anything, I don’t see the screen there. So maybe you can help me put that on there. I’m not sure how to do it usually comes up on my screen. So we have that and then forgiveness. We want to make sure that forgiveness is forgiven. We do not want to have a situation where the forgiveness is sitting out there, and then the next thing you know you have a 1% loan for two years. The reason they’re not forgiving the company portion is that there is already forgiven

Dr. Friday Radio Show – April 21, 2020

Dr. Friday Burke — Sat, 25 Apr 2020 16:06:07 +0000

Welcome to another episode of the Dr. Friday show! In this episode, she answers all your questions about the tax filing as well as the following topics:

Will I Get the Stimulus Check?

Help Getting Your Taxes Filed

Is the Stimulus Check Taxable Money?

Can I Refuse the Stimulus Check?

Does the IRS Know If My Address Changed?

Will I Get the Stimulus Check Electronically or Mail?

SBA Bridge Loans

Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day! I’m Dr. Friday, and the doctor is in the house, and I’m here to take your calls at 615-737-9986. It has been a busy week. Let me tell you. Obviously, April the 15th really did not hold the same impact as it has in the last 25 years of me preparing taxes. So you know we are still preparing taxes, making appointments as soon as everyone is able to get back out and start moving around and doing things. We are seeing clients still right now. If you need Tax Help, or if you’re trying to get things filed, we have quite a few people trying to get their 18th and 19th filed because they know things happen, and you don’t always get your taxes filed on time. But now, with the stimulus check, things have become quite interesting. I do want to put people at ease. I do realize that 80 million people have received stimulus checks. But just as a point of interest, not everybody has received their stimulus check. So you will still probably be getting a stimulus check coming to that direction.

Again, the website, pros, and cons. Maybe some people can share their thoughts on that if they want, but the website is not working wonderfully as far as giving everyone the information they need. So if you’re having some troubles with the website, I do know it’s up, I do know you can put your banking information in so that you can get your check electronically. Just keep in mind, if you don’t get electronically, it will come through the mail, it’s not lost, it’s not like you’re not going to get it. It will just take a little bit longer for you to get it. So, you know, again, some people really have not had a lot of change during this time. And many people have been living on the same exact income prior to this. So if you were on Social Security, then that’s all you were living off of. This is a bonus check. It’s not changing your lifestyle, and the check will be coming. We just haven’t gotten the date of that. So and some people that are on social security and file taxes may have already received that information, but I don’t think people solely on Social Security have received it. I can be wrong. I have quite a few clients that have not. Alright, why don’t we have Jerry and then we can go to some other calls. Jerry, what can I do for you?

Caller 2:55 Yes, Dr. Friday, thank you for taking my call. I’m calling on behalf of a relative of mine that I’ve always heard that she didn’t make enough money to file. She’s elderly, and she’s in her 80s. She never filed out because she didn’t make enough money to make it worth filing because she didn’t know anything. She has since come down with Alzheimer’s for several years and was so acute that she finally had been admitted to a nursing home. Unfortunately, there were no beds, but she had to go into what they call assisted living. So that was over $65,000 in nursing home costs, plus they had to have private healthcare sitters for another $65,000 in the last year. Can she file for so

Dr. Friday Radio Show – Apr 11, 2020

Dr. Friday Burke — Wed, 15 Apr 2020 17:55:50 +0000

You don’t want to miss this episode of the Dr. Friday show! She talks about all the latest updates about tax filing, tax forms, as well as the following topics:

Should I File For the Payment Protection Program?

New Tax Filing Date

New Tax Payment Deadline

“I’m A Non-Filer, Can I Get The Stimulus Check?”

Need to Update Adress For IRS?

How To Know If You Qualify For Small Business Loan

What Is the Best Way to Contact the IRS Now?

Do I Pay Tax For The Stimulus Check?

Are You Qualified For The Stimulus Check?

Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good day I’m Dr. Friday, and the doctor is in the house, and we are here. Hopefully, you can hear me well. We are working on trying to make sure that we can take your calls. There is so much going on. I do want to make sure we’re getting a lot of emails, and I want to make sure that you are actually all understanding that the new filing date is actually July 15. They have now extended both of our estimated tax payments. So the one that would normally be due April 15, as well as the one that is due June 15 to the July 15 deadline. So that is important news because for a while there they had extended the April but not June. So now we have both of those extended through till July 15 for both of the filings. There’s also a lot of questions about individuals who maybe you don’t file a tax return. Maybe you don’t make any income, but you’re not on Social Security or disability. There is now on the irs.gov for non-filers. There is a place where you can fill in the information so that you could still qualify for the stimulus check even if you are not filing taxes. So that is something. Again, on the irs.gov, there is also the ability to update your address and your banking information. I believe that updated just on Friday or Saturday or today’s Saturday. I guess time flies when we’re having fun. So there’s that information as well. If you want to join the show, you can 615-737-9986 taking your calls and questions about business owners. Of course, we have three different types of loans that we can be doing, or possibly receiving money on the 10th. They open the one up, and I will tell you there has been a lot of confusion coming down from who should be filing for the PPP. We call on the PPP (Paycheck Protection Program), who should be filing for the disaster funds for the COVID-19 on just directly on the SBA. I have been told by some of the local people here that they are starting to release funds at least for the ones that did go the ten thousand dollar hardship ones under the COVID-19 economic impact loans. I haven’t heard anything yet. So if anyone’s listening and you have received money from the paycheck protection, it’d be nice to know. So that way, a lot of listeners that are filed for it and we can if you’ve got a question again 615-737-9986. The bottom line is this, the first band of PPP loans or the paycheck protection loans is really for people that had 941-940 W2’s. So for employers, that was the first line they were trying to get money out to people that had payroll, so they could keep those employees still on paychecks and not have to worry about having them all hit the unemployment lines. The second line, which again really just opened up now, is going to be for the entrepreneur. Keep in mind if you have your own Corporation, and maybe you’re your only employee, so you have one paycheck, you would have qualified or will qu

Dr. Friday Radio Show – Apr 4, 2020

Dr. Friday Burke — Wed, 08 Apr 2020 12:39:36 +0000

Another episode of the Dr. Friday show is here, and she is ready to help you answer all your questions! She gives you all the new tax information updates as well as the following topics:

How to Protect Your Credit

The Paycheck Protection Program

Tax Filing Deadline

The Economic Impact Payments

Is Your Dependant Eligible for Stimulus?

Construction Loan Deductibles

Information on Quitloans

Are You Eligible to File for Unemployment?

Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share cure your 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 at 615-737-9986. So here’s your host financial counselor and tax consultant Dr. Friday.

Dr. Friday 0:30 All righty. We are here doing our bit to try to stay out of the way but still try to help educate and prepare people for some of the things that are coming down the line. The economic impact payments, stimulus payments, I referred to them as are supposed to start coming out as early as next week. I just want to kind of go over that really quick just like maybe answer a few of the phone calls before they start coming in. Who are eligible individuals making $75,000 up to $99,000? Married people 150-198,000. Head of the household is going to be like $110,000 up to 140- 150,000 you will get 1200 dollars as an individual, $2400 as a married couple, $500 for qualified children that are children that are 16 and under in the year of 2019. This will be being reconciled on your 2020 tax return. So I don’t know if they give you too much money. I have cases where the ex-wife claims the children and in odd years the ex-husband claims to children. So if they haven’t filed their 19 yet, but they are basing them on the 18, who’s going to get the $500? I don’t know the answer to some of these guys. They haven’t given us that information. “The IRS does not have a direct deposit.” That’s been something that’s been sent to me probably a good 20,000 times, no not quite that many times, but they will be actually getting there. They’re supposedly going to be updating the IRS website. I’ve checked today I did not see any place you can change your address, you can update your address, and your name, I did not see where you could update your electronic payments. So most of the people if you had it on your 19, or if you had it on your 2018 or 19, if that information is wrong, then the money will bounce back if it is your ex-wives or girlfriends account that you had on there because you wanted them to get that particular refund and not get the stimulus, then you’re going to need to contact the IRS. Here are the funny parts. And I’m saying funny because the IRS specifically has a phone number on the website and it pacifically says that at this time, they are not available, they do not have anyone answering the phone. So there is no easy way to contact the IRS. But let’s go ahead and hit the phone lines. We look like we have john on the line from Spring Hill. Hey, john, how can I help you?

Caller 3:21

I’ve been seeing commercials for, and this is maybe not in your field, about a person who has lost their home due to some crook got their title information for their home?

Dr. Friday 3:37 Oh, I’ve heard those commercials myself. I have not had any hands-on personal experience with them. I would hope that that would be something that’s somehow covered under insurance. I have seen those commercials and it sounds like there’s not a lot you can do. I’m assuming there are lawsuits. They can get you your house back. But what’s your question? Or has that happened to you gosh forbid?

Dr. Friday Radio Show – Mar 28, 2020

Dr. Friday Burke — Wed, 01 Apr 2020 21:59:20 +0000

Welcome to the Dr. Friday show! In this episode, Dr. Friday answers all your questions about the updated stimulus check and the who, what, where, and why of these checks. She also answers the following questions:

Should You File Your 2019 Taxes?

How To Know If You’re Getting The Stimulus Check

Do Your Dependants Get a Check?

If You Owe Income Taxes, Will You Receive Your Check?

What File You Should Use If Your Address Has Changed

Is Filing For Unemployment Taxable Income?

If I’m On Disability Social Security, Do I Need To File My Taxes?

Transcript
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 at 615-737-9986. So here’s your host financial counselor and tax consultant Dr. Friday.

Dr. Friday 0:30 All righty. We are here live in-studio I guess I should say remotely because the boss is still running this stuff from the board there. So, we can take live calli-ins so if you want 615-737-9986 taking calls. We have had a ton of changes, especially since the final or maybe not even the final stimulus from the President was signed on Friday. We’re going to talk a lot about who, when, why and what we’re going to have to go with those checks. I’m sure a lot of people are wanting to know which ones are which and how it’s going to work and who’s going to get the check and etc, etc. So we’ll take a look and see what we have going there. Should you even file your 2019 and we’ll get into who should file who shouldn’t file and what happens if you have children that are 17, 18, 19, 25 whatever, living at home and they are your dependents. What needs to be done about that because under this new stimulus, things are going to be a bit different and they’re looking at a dependent just as the tax law does, which is children 16 and under are legitimate dependence children in college or moving on going to have different situations so I know the phones are gonna be fun today and that is awesome. I will do my best to keep you informed and let you know what going on. Of course, my business owners. Hey guys, we have the Cares Act, who should be filing for the payroll, things like that. Awesome. Thank you for moving that over so I can actually see. Appreciate it. Alright, so let’s go ahead and go to line one. I believe it’s Mark. Mark, what can I do for you?

Caller 2:20 I turned my taxes in on February the second and I had a couple of small part-time businesses. And every time I pulled my thing out it says it is still processing. Should I start getting worried that maybe I did something wrong, but I haven’t heard with the IRS.

Dr. Friday 2:37 I would not. I would probably make sure I have a copy of E-file that has been processed. We have had the same situation here where some of the people haven’t received their refund yet then I have other people that within 10 days are getting their refunds. It may be a match situation. Do you have children or are you married?

Caller 2:58 No, all single. Just me.

Dr. Friday 3:00 All right. So my suggestion is I wouldn’t get overly worried. I will tell you that there was a news release from the IRS that was sent to my office on Friday that the IRS right now has closed their helplines. So life again is going to be a little bit more challenging on how do we even get the information out. They’re going to be still taking some calls, but I know for a fact I was on hold for over three hours and then they hung up on me. So my suggestion at the moment, make sure you have confirmation that it’s been f

Dr. Friday Radio Show – Mar 21, 2020

Dr. Friday Burke — Sun, 29 Mar 2020 13:08:58 +0000

Another episode of the Dr. Friday Radio Show is HERE! This week, Dr. Friday gives you the latest updates on any tax information questions you might have as well as:

The New Tax Exception Date

Advantages For Small Business Owners

Should You File Your Taxes Now?

What To Do If You Can’t Pay Your Mortgage

Difference Between Furlough and Lay-off

Is The Government Issuing Checks?

Best Tax Form For Small Business

Is Now The Time to Invest In Stocks?

Transcript
Announcer 0:01 No, no, no, she’s not a medical doctor, but she can share 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. 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:30 Good Day. I’m Dr. Friday and the doctor is… I can’t really say in the house, I guess live on Skype. This is a new experience for the radio for Friday. So after 10 years, I guess it’s good to have new experiences. So if you want to join the show, you can 615-737-9986. Okay, so we have a lot of new things to talk about.

Probably the number one thing people are asking about, and I can’t say I got less than 100 phone calls yesterday, as did the tax extension deadline get moved? The answer is yes. New tax date as of the 21st, which was I guess today they actually posted this is July 15th. You can get that information right at irs.gov but July 15. So April 15, is no longer so if you can’t get to your tax person, you’ve had to reschedule. They basically have pushed everything. So if you owe money on or before normally April 15, right, we have to play well, now it is July 15. I will tell you that many people that were in the tornado area, you already had this extension, but now the entire state of Tennessee or basically all of the United States to my knowledge has the same extension date. So we are extending to July 15th. That would be if you own less than a million dollars as an individual if you owe more than a million dollars, and I did get a question on this, you want to pay it down. So they will waive the penalties and interest up to $1 million as of July 15th. So if you pay it down, then you don’t owe that much, and you will actually still be within compliance. So you just want to make sure you’re meeting those criteria. I have in many cases in our office because we had no idea where this was going to go what kind of people were going to turn up or not turn up. We’ve been in the office the whole time. You know, people have to take their own situation on it. I will say that in this situation, rescheduling. We’re not even sure when to reschedule so in many cases we’re kind of just putting it on hold till we have a better idea of when the extension and deadlines are going to be. If you if you’re going to get a refund. Keep in mind this is really for people that owe money. Because if you don’t owe money, an extension makes no difference. It’s only for individuals that owe money that we fall extensions for. It’s not to extend the money but a lot of times it’s because they basically don’t have the paperwork to finish their taxes as well. So we make an estimated payment in hopes that we’re covering the total tax bill. If you have a refund, feel free to go ahead and file at your own time. Many of you file if you file from home, I am working myself this weekend and a lot of people have emailed their information to me so I’m sure other tax people are working very similar to me. If you’re needing help or doing that.

I can’t tell if anyone’s calling in so I’m not sure if we can get a count or not. I think we should be able to but if no one h

Dr. Friday Radio Show – Mar 14, 2020

Dr. Friday Burke — Sat, 21 Mar 2020 14:50:05 +0000

To support those who have been affected by COVID-19, the IRS has provided an extension for the filing of tax returns. Learn more about that here with Dr. Friday and host John Haggard at the Dr. Friday Show. They also covered topics such as the following:

New Tax Scams

Process of IRA Distribution of an Inherited Estate

Medical Miles

Proving Your Identity After Filing A Return

How Accurate Are Tax Preparation Programs?

What to do When You Have Something On Your 1099-R’s Box 5

Itemized Deductions on Installing Elevators for Medical Purposes

When You Get A “Warrant” from IRS

Is It Better to Spread Your Tax Bill Out?

Transcript
Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

John Haggard 0:29 Live from America’s Music City! It may be Saturday where you are, but it’s Friday all day every day all the time with the tax doctor, the tax lady, the doctor of accounting. Known in these parts of America as Dr. Friday and right here she is. Hello Doctor Friday.

Dr. Friday 0:46 Hello John and no I do not have the coronavirus. I just got a tax virus. I have a lot of taxes today.

John Haggard 0:53 Oh man, I bet that you do have a tax virus, I can only imagine. Speaking of that, there has been so much information and let me say, misinformation and misunderstandings that people have about what’s happening with the tax situation, extensions, and this and that. So this is a program folk that I encourage you to pay very, very, very, very close attention to so that you don’t get caught having to pay a bunch of penalties and things because well, I thought so. And so doctor Friday here with all of the answers. And I think the first thing we have heard about, and I know you’ve got all the details, but as it impacts the Nashville, Tennessee area, I’m understanding that the IRS is extending the April 15 and possibly some other upcoming deadlines for tax relief for victims. How does that work?

Dr. Friday 1:44 Yes, since we are a federal disaster area zone, a federal disaster area, the IRS stepped up knowing a lot of people were having to really focus on, you know, clean up, you know, especially the ones, anyone in the counties where these hits. So Davidson, Rutherford, and Cookeville, I can’t remember the counties therein. All of those counties that were initially affected with the tornado then have an extension until July 15. And so that way that’s your normal extension. So if you don’t make your payments by April 15, if you can’t get an extension filed on or before April 15, you now have till July 15 to do everything you need to do. That would even be theoretically making your IRA payment which you normally make on the 15th of April. All of that would be extended, but those individuals, also individuals that are business owners, maybe you weren’t able to make your tax payments. Back when it was due on March 18. March 3, they extended those individuals out to the 18th of March which is coming up a lot of business owners have a march 15 deadline if you have a corporation and LLC, I should say 16th. Because the 15th on Sunday, six, you know anything that’s a separate entity. LLCs, partnerships, corporations, all of those are due on March 15. They have not yet totally announced. Oh, they have allowed Yes, I’m sorry business returns that were due or other things that mean their effective tax will be July 15, as well. So this is great news because there’s just a l

Dr. Friday Radio Show – Feb 22, 2020

Dr. Friday Burke — Wed, 11 Mar 2020 13:36:06 +0000

Another episode of the Dr. Friday Radio Show is LIVE! This week, Dr. Friday discusses many tax issues with her callers, including:

Receiving a 1099-R

Contributing to a GoFundMe Campaign

Paying Taxes for Portioned Inheritance

Putting up a Roth IRA for Adult Son/Daughter

Alimony Deductions

Virtual Currency

Interesting IRS Facts

How The IRS Is Doing With Chasing the “Tax Cheaters”

Taxes on Social Security Disability

Charitable Gifting to Children

How to Get Tax Returns With Little to No Proper Documentation

What to Do When You Receive a 1098T

Paying Taxes on a $50,000 Annuity

Standard Deduction for College

And More!

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29 Good day. I am Dr. Friday and the doctor is in the house. So if you’ve got questions, it is February 22nd, which means we’re getting close to the end of the tax season. We’re actually about halfway I guess, but it just seems like time Is flying. Tax forms, most of the tax forms are available, I just had an update this morning. I saw that they finally got some depreciation on there that we were working with. So you should be able to get most of your taxes done. We’ve got someone that’s called the show already so if you want to join it 615-737-9986 and We’ve got Chris on the line. Hey, Chris.

Caller 1:02 Hey, Dr. Friday, how are you? Thank you so much for taking my call. So this is, I kind of have a unique situation this year. My first year receiving a 1099-R. It was associated with an injury that I received. I’m a retired police officer, I got hurt in the line of duty. And I received a tax-free pension as a result of that. And the 1099-R on it says that the income that I received has zero taxable income. However, when I’m plugging it into the software that I’m using, which is like one of the freebase software’s online, it’s flagging it that I need to be reporting taxes on and it’s actually saying I owe a bunch of money based upon the 1099 R.

Dr. Friday 1:52 So are you putting any number and, I don’t know how you feel about your software, but when I put mine in it, I completed 1099 R. There’s a box one which would show the total amount of distribution and then box two, which you should be putting a zero in, which would then show, you know, not taxable. Box two is the taxable amount. And then you should also have a code in box four or five, that’s like a code seven or when I guess you’re probably gonna code two for disability, something like that. What does it say?

Caller 2:23 Yeah, I know what you’re saying it and it does say it’s a disability pension. The box that it has there is number three. The code I’m sorry, box seven is code three.

Dr. Friday 2:34 Oh, gotcha. So that would that should tell them on a 1099 R what that is, as well as the most important one is box two. Yeah, but code three is disability pay. So that should be perfect. And what’s it? What’s in box two on yours?

Caller 2:55 I’m sorry, what’s in box two?

Dr. Friday 2:57 I mean, yeah. Did you put a zero or did you just leave it empty?

Caller 2:59 No. It’s them. I mean, I received it from the…<

Dr. Friday Radio Show – Feb 29, 2020

Dr. Friday Burke — Fri, 06 Mar 2020 14:02:29 +0000

We’re getting very to the tax return deadline! And with that, Dr. Friday says you need to do what you need to do; finish up or file an extension. If you have tax questions, this is the show for you! In this episode, Dr. Friday talks and answers queries from callers with topics such as:

Children on Your Tax Return

Taxes When Taking Custody of Grandchildren

Daycare Expenses

How To Handle a Hobby-Type Business with Taxes

Do You File Jointly or Separately After a Divorce?

Installment Sale Form

Your Kid’s First 1099

Taxing “Early Inheritance” Money

What Is The Hall Tax?

Filing Tax Returns With Another Person’s Information

Irrevocable Trust Tax

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 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. I will tell you, I was in the midst of working on taxes and debt – I almost did not make it. It was like, “Oops, I’ve got to get to the studio.” So if you’re thinking about or you are actually working on your taxes, and you’ve got some questions, this is the show you want to call at 615-367-0819, 615-367-0819. Taking your calls about taxes, maybe you’re working on 2019 tax returns, or you’re planning for something in 2020. Remember, every year doesn’t always match up. Sometimes, you know, your children get older. So a big thing for a lot of my clients is in the year in which my child or the child on the tax return turn 17, we’ve lost a $1500 tax credit and many of the cases of my clients, maybe a child’s going to college maybe they’re not that they’re still living in the house. Are they truly dependents or not? Sometimes, a question who should be claiming the child, we have a situation sometimes and we do with every year. I’ve always respected divorce parents that actually look at the situation from what is the best tax advantage not just what’s on the divorce decree. Because I had a case where this is a $2489 – I remember the dollar money because there’s not quite $2500.

Dr. Friday 1:56 But, there was a difference that legitimately the wife was a lower income, had a situation or the ex-wife would be able to claim a child that was actually could have been claimed by the husband and had always. But because they started college this credit was available. It’s a huge credit, it didn’t make a difference. And in this case, the husband was like, “No, no, no, that $500 wasn’t enough to worry about.” That’s all he was entitled to. If he had claimed the child, she would have gotten all $2500. Again, you know, this is where it comes into play, knowing the tax law, working with the tax law, who should be claiming, who not just what the divorce decree says but who’s really going to get the best benefit. Because otherwise, the person that’s getting the best benefit is the Internal Revenue Service. So if you don’t want them to be a part of the conversation, then sometimes having one with the ex is a good you know option. And I say I have some pretty cool clients because we do this often from year to year when it comes to what is the best tax advantage, what is going to get the largest reach funds, and then taking it from there – not so much on who, who is entitled to take them. So if you want to join the show 615-737-9986, 615-737-9986 taking your calls here in studio.

Dr. Friday 3:17

Dr. Friday Radio Show – Feb 15, 2020

Dr. Friday Burke — Thu, 20 Feb 2020 19:25:51 +0000

Did you have a great Valentine’s Day? Love was in the air, indeed, but there’s one “love” you don’t want to get – a love letter from the IRS. Luckily, Dr. Friday and host John Haggard are here to talk about tax issues and answer queries from callers. In this episode of the Dr. Friday Show, John and Dr. Friday talk about the following topics:

Tax Changes for This Year

What an Enrolled Agent Does

Will Closing out Your CD Affect Your Social Security?

When Does One Not File a Tax Return

Higher Medical Deductions for 2019

Affordable Care Act

Filing a Tax Return for a Deceased Loved One

Is Life Insurance Taxable Income

Does Electronic Accounting Software Commit Mistakes?

Can You Pay Estimated Tax in Advance?

How Out-Of-State Occupations Are Taxed

Why Opening up an Audit Is Important to Business

Having a Grandson as a Dependent

Is Alimony Considered Income

The Difference Between an Audit, a Review, and a Compilation

How to Avoid Tax Scams Over the Phone

How to Fix Errors When You Do Tax Using Accounting Software

Taxing People With Permanent Disability

Itemizing deductions with your medical expenses more than your taxable income

Limited Partnerships Inside IRAs

QuickBooks Online

Taxes on Electric Vehicles

Provisional Tax Code

Transcript

Announcer 0:00 No, no, no! She’s not a medical doctor, but she can 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 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

John Haggard 0:26 Live from America’s Music City, ladies, and gentlemen! It may be Saturday where you are, but it’s Friday, all day every day all the time with the tax doctor, the tax lady, the doctor becoming known in these parts of America as the Dr. Friday. And right here, she is. Hello Dr. Friday!

Dr. Friday 0:44 Hello, John, and thank you for sitting in on this, which makes my life a little bit more convenient. So I appreciate you very much.

John Haggard 0:51 Glad to be here and you haven’t any sleep in the last four weeks…

Dr. Friday 0:56 It has been a bit challenging, let me tell you. And for our office, it truly has just started. So for about the next eight weeks is the busy season for us. So it’s going to be, people have finally received W-2s and 1099s. So there, you know, I think my complete month of February is already fully booked and there are limited openings in March at this point. So we’re doing great in our office, no complaints.

John Haggard 1:23 Gotcha. Any breaking news in the tax front in this past week or two? Anything that’s going on or about to go on or anything folks should know about? Maybe a radical departure or somewhat different than last year?

Dr. Friday 1:37 Well, probably not a ton. I think really what more people need to be paying attention to and I’m driving as we talked but, in my opinion, will be is this is an election year. So people need to be listening to the people that we might be voting into office and making the decisions do we really want, you know, a different tax code. Are we looking, you know what changes, what are the big changes that some of them are bringing to the table? Are taxing things like Roth IRAs, bringing back the excise tax. You know, taxing certain elements of Social Security instead of having a cut off of where it is now, taxing 100%. These are major tax issue

Dr. Friday Radio Show – Feb 8, 2020

Dr. Friday Burke — Fri, 14 Feb 2020 11:19:20 +0000

Taxation is never an easy subject. But, Tennessee is lucky that we have Dr. Friday to show her listeners the way! In this episode, John Haggard takes over the studio while Dr. Friday is on the line taking phone calls from listeners who have various tax questions. For this week, the topics include:

Taking Distributions to Two Life Policies

What to Do Tax-Wise Before Remarrying?

Where to Listen to the Dr. Friday Show?

California’s Landmark Labor Registration – What Is It?

Higher Medical Deductions for 2019 and 2020

Are Home Health Care Providers Taxable?

Other Tax Filing Surprises That Might Trip You Up?

Taxes for Recently Divorced, Separated, Married and Widowed

How to Tax Lottery Winnings?

Helpful Tips to Avoid Tax Scams

Limitations on Expense Report

Tax Credits Post Retirement

Income Limits for Social Security Withholding?

Taxing Clients From out of State

Taxing Miscellaneous Income

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

John Haggard 0:29 And now live from America’s Music City, ladies, and gentlemen! It may be Saturday where you are, but it’s Friday, all day, every day all the time with the tax doctor, the tax lady, the doctor of accounting known in these parts of America as the doctor Friday. And right here she has everybody, Dr. Friday. Hello, Dr. Friday.!

Dr. Friday 0:49 Good afternoon, John. How is life for you?

John Haggard 0:52 Well, life is pretty good considering my age, income, and attitude. But I do know this; I do know this, this is a trying part of the year for anybody that has anything to do with the tax business. And you must be knee-deep in it probably got papers all over the place and computers that are busting at the seams on their hard drives with information. Would that’d be kind of accurate?

Dr. Friday 1:15 That is totally accurate. If you saw me right now, your picture would be awesome because, yes, I am buried in papers. Everyone’s wanting to get something done so they can find out how much they owe good old Uncle Sam or if they’ve estimated or some of the new tax changes has any of this affected some of them even though 2018 we did have the new tax law with the exception of possible divorce that people get divorced in 2019. They may have had different effects, but, all in all, I think a lot of people are now feeling some of the changes if that makes sense. Like in 2018 they’re like okay, I didn’t get the refund I expected or I did, now when they’re looking at 2019 is it going to be the same refund, did I make an adjustment that was too much? Some people don’t like a large refund, so they try to adjust their W-4s, their offset of what they were getting. So yeah, it’s, it’s been a good year, so far. No complaints on my side. I have wonderful clients that like to return. So I am very blessed on that side. But I will tell you; they keep me busy.

John Haggard 2:13 And before we go to the phone lines, folks here’s something very important you should know about Dr. Friday because you might be one of those who has not filed a return in three years, five years, ten years, maybe 15 or 20 years. And now you’re saying, man, it’s time to come clean. Dr. Friday, especially for those of you who do not know her, you need to know this. She’s an enrolled agent with the Internal Revenue Service. And when we say with no,

Dr. Friday Radio Show – Feb 1, 2020

Dr. Friday Burke — Sat, 08 Feb 2020 20:04:16 +0000

The “crazy lady on the radio” is back at it again! For this episode, Dr. Friday, an IRS-licensed tax agent, answers queries from listeners that are all about taxes. It’s an hour full of information and fun, covering topics such as the following:

Reminder to All Business Owners

Rolling CDs Over

Changes on the Tax Forms

How to Correct Errors on Child Claims

Taxes and Democratic Policies

Receiving 1099s After Serving Time?

Someone Pays Your Student Loans on Your Behalf

Private Assets Are Not Deductible

Claiming Tax Deductions From Hospital Bills

Tax Deductions on Medical Necessities

Exception in Selling An Estate Property

Taxes and Hobbies

My Daughter Just Got a 1099-ED Recently

Mutual Funds and Early Retirement

Retiring but Wanting to Take Part-Time Job?

Inherited a Rented Property

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 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! It is tax season, everyone! The ball is rolling. We’re filing taxes. It is time to actually start making this happen. So if you want to join the show, you got a question, maybe you’re thinking about filing your taxes on time, or maybe you’re actually filing them this weekend. 615-737-9986 is the phone number 615-737-9986 the number here in the studio. Big changes that have happened and just making sure especially if you have rental property, your sole proprietorship, a partnership, a Limited Liability Partnership, multiple anything pretty much besides a corporation if your trust their state, we all know that QBI came into effect in 2018. And let’s just all be honest, we did not have a lot of rags to go with. So we weren’t sure exactly how some of that happened. Many people I noticed they just completely did not take it in fear that they weren’t entitled to it, especially with rental properties. Or they took it where they were not entitled to it. So you just want to make sure that the person is doing the taxes if it’s you, that you understand. Don’t leave money on the table for fear of not understanding it. But on the other hand, don’t just keep clicking yes because you think that’s going to give you a better tax refund.

Dr. Friday 1:53 It is better to not get the refund today and not make the mistake in some ways. Then getting money that’s not yours. And then the government charges you interest penalties. You know, all kinds of wonderful little sidekicks on that to get you more than what you actually – it can be 100% more than what you actually receive in a refund. So just be really careful. But on the other hand, don’t leave money on the table. So if you’re not sure what QBI is, or if you’re basically saying, Hey, you know, I don’t have that kind of thing, but maybe you’ve just started a business, maybe you’re brand new to entrepreneurship or rentals, or maybe you’re flipping properties. Or having a beer in the hip business that seems to be very popular right this second, I have quite a few people that’s getting more and more interest in that kind of either byproduct of that or whatever. Whatever your interest is, just make sure most of it comes down to is this record-keeping especially on rental properties. It’s not that they don’t qualify, but it is the way that you track them especially if you’re an individual that may have residential and

Dr. Friday Radio Show – Jan 25, 2020

Dr. Friday Burke — Sat, 08 Feb 2020 20:02:22 +0000

And the doctor is in the house once again! For this episode, enrolled IRS agent Dr. Friday went overtime to accommodate all tax questions from callers. Dr. Friday also talks about the changes in the tax forms and other topics which include:

Updates of the Form 1099 for 2019

Married Filing Jointly When Spouse Is Deceased

Cd in Another State

Missed Taking a Required Minimum Distribution

Paying Tax for an Inheritance

Solving Tax Issues When Your Business Partner Disappeared

Canadian Pension

Why Some Businesses Require 1099s From Customers

Taxes When You’re Selling Your House

Self-Employment Tax

Tax Credit for Adoption

Injured Spouse and Innocent Spouse

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.

Dr. Friday 0:29 All right, we are here live in the studio. So if you want to reach us, it’s 615-737-9986, 615-737-9986 And we’ll go right to the phones since Bryan’s holding. Hey, Brian!

Caller 0:44 Dr. Friday! Great intro music. My question is I didn’t file federal last year. I want to know if there are any changes. My total income is $255,234. That is social security.

Dr. Friday 1:00 No, I mean, you would still not be required to file.

Caller 1:03 Oh, you’re the angel. Thank you.

Dr. Friday 1:05 No worries. Thanks, mate. All right, now we’ve got that going. Has anyone seen the 1044 for 2019? Is anything kind of looking familiar? Well, as you know, they made a few more changes in December of 2019 for us. And they move some more income on the first page. And guess what, we are now signing the taxes on page two again. So it’s a little bit of a test. They’re trying to see if we’re actually paying attention, I think. So they’ve moved a lot of things around. They’ve moved some of the information so we have more income sections, IRAs, pensions, qualified dividends, all of that now on the front page. As you know, we had Form one through six last year, we now have one through three. Part one is going to cover income and allow for certain adjustments in your like alimony and tax cut jobs act and any of the important things. And then at number two is generally going to be your AMT. Tax insurance is different things, self-employment tax, unreported Social Security, Medicare contributions, pensions, etc. And then three covers all refundable credits. So just pay attention if you’re doing your own taxes because it’s different again, I mean, for many of us that’s been doing this 20 plus years, you know, for a while we actually knew every line that something was going to fall on, we knew how it’s going to come through the tax return.

Dr. Friday 2:27 And then in 2018, they changed the trying to make what they called a postcard. Obviously, that did not work, it never really was the size of a postcard, but there again, they were trying to simplify it by adding six new reports. I’m not too sure if their version of simplification and mine is the same. But then of course in December of 2019, they came in with the Security Act and in there they added some more things or took some things away and added some, right? So they move for more information to the front page, extending the tax return again on to the regular 1040, reducing the number of extra schedules we have, they also added the 1040 s are for only taxpayers that are 65 and older. So it’s basically the

Dr. Friday Radio Show – Jan 18, 2020

Dr. Friday Burke — Tue, 28 Jan 2020 13:40:04 +0000

A lot of ch-ch-ch-changes in tax laws recently. To learn more about these shifts in the taxation landscape, listen to this episode of the Dr. Friday Show. For this episode, IRS Enrolled Agent and tax consultant Dr. Friday sheds some light on the questions thrown at her by callers. She also talks about the following topics and more:

Changes in Divorce and Virtual Currency Taxes

Brand New W-4 Form

Penalty Rate Increased for Failure to File

Useful Tax Apps and Software

72 Years of Age and Required Minimum Distributions

Having Your Primary Residence in One State and Buying a New One in Another

1040 Forms Intended for Seniors 65 Years Old and Up

No More Schedule 4, 5, and 6

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 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! A bit nippy outside a little damp that you know what? It’s a perfect day to talk about my favorite subject, which is taxes. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation. No, I do not work for the IRS. What I do do is help represent you in front of the IRS. So if you’re dealing with an audit or if you’re dealing with, like, haven’t filed taxes in a number of years, I really am just trying to get back on my feet I’m trying to figure out, that’s what I do. Deal with the Fed and the state on helping you get back on your feet and trying to set up the right plan to hopefully keep you growing and going in the right direction but at the same time keeping the IRS satisfied. So we’ve had some changes as we know when we had the tax law come in to effect in 2018, a couple things didn’t really come in effect till 2020. The biggest one was as of -I’m sorry, until 2019, excuse me. So what came in effect was divorce, right? So if you got divorced in 2019, starting on January 1st, 2019 moving forward, the way alimony is received has changed or the taxes on alimony, I should be more specific.

Dr. Friday 1:41 So, up until I mean, if you divorce in 2018, 2017, any of those years, normally what would have happened, you received alimony, you pay tax, you paid alimony, you deducted it as a tax deduction. Starting in January of 2019, it became more likely Child Support. So if you paid someone alimony, it is not a tax deduction to you. Now, this is only for people that actually were divorced on January 1st, 2019 and on, right? So moving forward, not anything, so I don’t want to confuse anyone if you have alimony and you’ve been doing it for a number of years, none of that has changed. Only for new divorce cases that started in 2019. So it is a big step. Basically, you know, the person receiving alimony is no longer going to be responsible for the taxes and the person paying it will be responsible for all of the taxes that really has, I mean, to be quite honest, at least in our office. The blessing is we don’t deal with tons of divorces, but it has affected many of our clients on the way that they would approach divorce.

Dr. Friday 2:49 It becomes a much larger conversation than before because before it might have been you paid a little bit more out knowing that the person receiving was in a lower tax bracket and the person paying was in the higher. So, it gave them the benefit of actually doing that. So, just remember when you go in and if you have separated or you’re d

Dr. Friday Radio Show – Jan 4, 2020

Dr. Friday Burke — Mon, 20 Jan 2020 00:54:21 +0000

It’s the first Saturday of the new decade, but it’s always Friday for Dr. Friday! Welcome the new year with new tax issues and questions. And, to help you out, of course, we’ve got Dr. Friday of the Dr. Friday Tax and Financial Firm. For this episode, Dr. Friday talked to a number of callers and answered all their tax questions and woes, including the following:

It’s a New Tax Season!

Congress’s Extension for 2017 and 2018 Lapses

Roth IRA Payroll Deduction

New Tax Form for Seniors 65 and Up

Updated Tax Forms

Disability and Joint Return

How to Keep Accurate Records for Car Mileage

Getting Your Social Security for Seniors

Limited Earnings

Entrepreneurship and Tax

Company Match and 401K

Maximum Roth Contribution

Thinking About Doing Charity?

Receiving SCP Post Jail Time

Are Social Security Benefits Taxable?

What to Do When You’re in a Possible Tax Fraud Incident

Excess Roth IRA Contribution

Claiming Tax Without Legal Guardianship

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can sure cure your tech 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 0:29 Good day, I’m Dr. Friday and the doctor is in the house! It is the first Saturday of 2020 hope everyone had an awesome New Year’s, wonderful Christmas or other holidays and it’s time to start thinking about taxes. Tax forms will start be arriving next couple of weeks, you start getting them. Just a note of interest, most people do not have to have those tax forms to you until the last day of January and brokers like your Ameritrade and then have until February 15th and theoretically, they have to have them in the mail by February 15, which means they have 21 days to actually don’t ask why the mail is moving so slow, but 21 days to get it into your hands. So, you know, don’t be surprised if you don’t have everything by the first or second week of January. Employers do have till January 31 to get you a copy of your W-2.

Dr. Friday 1:24 Now I do know that there are some people that can take their final paycheck stub and prepare taxes. We’ve never been big on that in our office, but most of the time we don’t have to do that. The tax season officially opens as far as being able to get e-files accepted by the IRS on January 21. So again, you still have a couple more weeks before that’s going to happen. You can start getting your tax documents, right now’s a great time to kind of sit down on a quiet weekend. Get a pen and paper out or get yourself a manila envelope and put on there: Did you work multiple jobs? Are you looking for more than one W-2? Did you take any money out of the retirement account? Did you go gambling and get any W-2Gs? These are the things that you want to kind of list so you know when everything’s in there. Sure, it’s easy. If I worked one job, I didn’t take any money out of retirement. I didn’t borrow any money. I didn’t refinance. I didn’t do anything but just work one job. All I have is one W-2. Well, that envelope probably would not be necessary. But if you’re a husband and wife and you’ve got multiple jobs, you’ve got childcare, you’ve got college interests, all these different things happening. You are going to want to make sure that you don’t forget something because trust me, Uncle Sam will be more than glad to tell you when you miss it, and then charge you a penalty for failure to claim all

Dr. Friday Radio Show – Dec 21, 2019

Dr. Friday Burke — Mon, 20 Jan 2020 00:52:57 +0000

Welcome to the Christmas Special Edition of the Dr. Friday Show! In this episode, Dr. Friday plays Santa Claus and, together with her sister Sydney, gives out gift cards to the lucky callers of her show. In addition, she also talks about the following topics:

New Mexico Tax Fact

Is Uber Schedule C?

Taxable Illegal Drugs

Tax on Athletes

Filing for Capital Gains

Submitting a Tennessee State Income Tax Form

Got Veteran Affairs but Still Getting CDs?

Tax on Beards

The First-Ever Income Tax

When to Stop Contributing to IRA

When You Bring a Person to Your Home to Take Care Of

Tax Implications on Divided Estate

Employees Non-Reimburse Expenses

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can sure cure your tech 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 0:29 Good day! I’m Dr. Friday, and the doctor is in the house. Yes, we are live today, the last Saturday before Christmas. Santa is going to be packing his sleigh really soon. And so we thought we’d help out. We’re going to have some giveaways today. Also, we’re going to share some really unique and strange tax laws. Some that are in existence, some of them that are only in certain states, but you know, taxes can be fun and exciting and, you know, a little bit odd and I think so at least. So, if you want to join the show, the got questions about taxes because we all know tax season is around the corner for the 2019 tax year, or maybe you haven’t filed for 2017 or 2018 or many many years behind, 615-737-9986. 615-737-9986. I thought this is an interesting fact. A resident of New Mexico who is over the age of 100 does not have to pay New Mexican or New Mexico personal income tax. So if you make it to 100, guess what? You don’t have to pay income tax. Tell me that it is pretty cool. At least something comes with age because we all know that when you know you hit 65 and you think about Oh, should I take social security or should I do that? Different things? Alright, so in New Mexico over 100, interesting fact, no state income tax. Let’s go to the phones, we got Mac. Hey Mac.

Caller 1:56 Hi, this is Mark, how are you?

Dr. Friday 1:58 Oh, hey Mark. Sorry, my mouse is over the thing, it’s all my fault. What can I do for you?

Caller 2:05 Great. So I appreciate what you’re doing here publicly. I recently started driving for Uber. Will that be a Schedule C? And how much can I pick up?

Dr. Friday 2:15 Yes, that will be considered a small business and you can deduct miles, that’s gonna be your largest. You’re also going to have some of the other fees that Uber charges you depending on. I have some people that actually are buying their car through Uber and all kinds of different things, phones and different things, but it’s mainly going to be your miles. Now, the question is going to be marked on the miles is the IRS basically stipulates from your home to your first place of pickup is commuting, not miles. So but from that point, while you’re on the clock, theoretically, sometimes let’s say someone takes someone from Nashville down to Spring Hill, they can’t get another trip, so they’re gonna have to drive back to Nashville before they get the next pickup. That would be considered miles.

Caller 3:02 Okay, great. Thank you so much.

Dr. Friday 3:0

Dr. Friday Radio Show – Dec 13, 2019

Dr. Friday Burke — Sat, 21 Dec 2019 01:09:00 +0000

Welcome to the Dr. Friday Show! A few days left and it’s Christmas Day, but we’re still the gift that keeps on giving – especially to all your tax questions. In this episode, host John Haggard is on studio while Dr. Friday is on phone while at the annual Christmas Parade in Gallatin. Together, they talk about pressing tax issues as well as answer questions from callers live. Topics include:

Dr. Friday Live on the Annual Christmas Parade

Who Has the Better Tax Advantage Between Non-Married Couples?

Virtual Currency and IRS

Whistleblower Allowance

Filing Jointly or Filing Separately for Newly Married Couples

Tax Credits on Home Renovations

Will You get in Trouble for Developing Your Will-Be Inherited Property?

Tax Advantages for Military Personnel

Tax Credits and Homelessness

Capital Gains from Selling Rental Properties

Should You Keep or Withdraw Your 401k Before You Die?

Early Retirement Questions from Two Different Callers

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.

John Haggard 0:29 Live from America’s Music City Ladies and gentlemen, it may be Saturday where you are but it’s Friday, all day, every day all the time with the tax doctor, the tax lady, the doctor of accounting known in these parts of America as the Dr. Friday and live from the parade scene. There she is. And here she is Dr. Friday. Hello, Dr. Friday!

Dr. Friday 0:50 Hello John sounds like you guys had an awesome show going there. I totally missed it this year.

John Haggard 0:55 Well, we missed you. I gotta tell you it’s a wild of just a great hour. I got to talk to some people. One guy called in and he said, I’ve been trying to win that venison, that deer meat for four years, or at least a couple of years or whatever.

Dr. Friday 1:08 It always shocked me on how many people, well, I mean, we get the ton of phone calls when he gives away that deer meat every time.

John Haggard 1:14 It’s really something and he’s a deer hunter. And so Joe said, as you probably heard, you want the left side of the deer the right and you said the left. Now, I don’t know the difference between the left and the right side. Do you?

Dr. Friday 1:24 No, I was curious when he asked that, I was like is meat better on one side of the deer vs the other? I mean, I don’t know the big difference, you know? I’m sure there’s one side of it that may have more… I don’t know, better meat, apparently. Who knows?

John Haggard 1:38 I’ll tell you what, if anybody says anything to me about deer meat and they ask I’m gonna say left side. I don’t know why. But if Joe said left side, I’m going left side.

Dr. Friday 1:49 Better side, we’re all gonna go with that. This is a little bit – next week, we’re having our big giveaway. First time in eight years. We did do it together. Next year we will be back together here. But this next week we’re going t

Dr. Friday Radio Show – Nov 30, 2019

Dr. Friday Burke — Mon, 09 Dec 2019 20:05:02 +0000

Welcome to the Dr. Friday Show! Hoping your Thanksgiving weekend went well like my Thanksgiving weekend did! For this episode, I focused more on planning for retirement. That’s why I have Hank Parrott of Estate and Financial Strategies, Inc. in this episode. Hank, aside from being a good friend of mine, is an expert when it comes to planning your retirement. Together we talk about:

Risk Being in Retirement

How to Get Hank Parrott’s Free Consultation

What to Do to Protect Your Money for Retirement?

Required Minimum Distributions for Couples

Social Security During Retirement

Why Roth Conversions Is Not a Do-It-Yourself Process?

Tax-Efficient Income in Your Retirement

Using Capital Gains Tax Rates to Your Advantage

Sunset Provision

Why Having a Second Opinion Is Better When Talking About Taxation

Is There a Way out of Annuity?

Different Types of Annuity

Transcript

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 0:29 All right. We’re here in studio today with Hank Parrott with the Estate and Financial Strategies. How are you, mate?

Hank Parrott 0:36 All right, another good day.

Dr. Friday 0:38 Another good day in the neighborhood. We’re going to have an awesome day. And we’re going to talk a little bit about some of the risks of being in retirement, how that might affect people’s taxes, Social Security benefits. All those kind of things because it’s that time of the year where I think people also need to be making some pretty major decisions as far as are they on track or do we need to make a final adjustment before year-end.

Hank Parrott 1:02 Yeah, good time. I mean, we’re talking this is Roth conversion time, this is a great time before the end of the year, would meeting with clients here recently and have found some great opportunity for them to do Roth conversions and then doing the Roth conversion, we’re clearing out some taxes, take advantage of the really low tax rates that we have right now. And in many of these instances, when we’re doing the analysis, we’re saving, I mean, we’re talking about tens of thousands of dollars in tax savings and money. They’re not going to have to write checks to the IRS.

Dr. Friday 1:34 Well, and that’s why I love having you on the show to a point because my job is really to do taxes. I’m an enrolled agent. I’m licensed with the IRS, but I do taxes and representation which basically means instant gratification, in most cases. Sure, put some money in an IRA, if it’s a good thing, and I don’t know their final tax plan. So I’m just looking at a standard IRA because that’s going to help me tax-wise may not be a great approach because of Roths or whatever. So that’s why I think people have to have that plan to have a bigger picture, then going to your tax person every year and say, here’s my portfolio, which of course, I have absolutely really no idea if that’s a good fund or bad fund. It’s not my background, right? I mean, so all I’m gonna say is, well, if you take money out, this is what you pay in taxes, if you leave it here, you don’t pay taxes, you know, and that’s kind of the extent. You need a bigger picture.

Hank Parrott 2:20 Yeah, it&

Dr. Friday Radio Show – Nov 16, 2019

Dr. Friday Burke — Mon, 09 Dec 2019 20:01:41 +0000

Before your tax woes become TAX-ic, come and take a listen to this yet another insightful episode of Dr. Friday Show. For this episode, Dr. Friday takes calls, answers questions, and talk about anything under the taxation sun. Here are the following topics touched today:

New Tax Season Is Coming

Complete Everything Before January 1st

Selling Your Property as a Land or Commerical Property?

Property Exchange Defined

Taxing Charitable Gift-Giving

What Is Recapture of Depreciation?

Wholesale License – What Is That?

Reminder for Those Who Have Health Flex Spending Account

Property Tax from Another State

Inherited IRA from a Family’s Trust

When to Start Taking the 401k?

Got Tax Issues? Ask a Tax Person Before Doing Them!

How to Do Itemization

When Can You Get Something off Your Medical?

Are There Any Mds on Roths?

Allocating Investment Money to Spouses

Deducting Residence Space as an Office Space

Transcript

Announcer 0:01 No, no, no, she’s not a medical doctor, but she can 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 0:29 Good day! I’m Dr. Friday and the doctor is in the house. It is an awesome Saturday out there and I know it’s just about that time for Turkey day. So you know, it’s also that time that we have to start thinking about a new tax season, right? We got through October 15th. It’s time for us to start thinking about what are we going to do for the 2019 tax season? Is there something we should be thinking about? Because once we hit Thanksgiving, you have a couple of weeks that you might be able to do something and then you start hitting the holidays for Christmas. And it’s very difficult to get a hold of people to get things done. So if you’re thinking about a Roth conversion, or you’re thinking about doing something even setting aside the money for an IRA, remember, you can only contribute an IRA up to April the 15th. So you just need to make sure that you have it all worked out, you want to plan in advance what you’re going to do, is it really worth putting your money in a regular deductible IRA? Or should you really think a Roth IRA for the next few years? Because I mean, let’s be honest, tax brackets are really low right now.

Dr. Friday 1:32 And if you’re a married couple making $100,000 or less, in my humble opinion, I’m not your financial planner, but saving 12% if I put it into an IRA and deferring it paying the 12% now and then when I retire, it’s grown tax free and I will probably be in possibly the 12% or even higher now there’s no guarantee I don’t know your financial situation. So but think about it, talk to somebody, but business owners. Let’s take a talk and see what we have. We’ve caught very soon, we’re going to be getting ready to do 1099 and W-2s. We have to have them done, completed out the door by January 31st, which basically means as soon as we’re back from the holidays of New Year’s, we are starting to obtain that. all through the year though, you need to be making sure that you’re obtaining the information for your subcontractors, you hire somebody. And this also includes you with rental properties. If you hire somebody to do a repair and it’s over $600, that handyman, that AC company, because many of them are LLC, which means we still have to 1099 them any kind of that roofing company if it’s not a corporation, we were supposed to be issuing 1099s for those jobs done. So t

Dr. Friday Radio Show – Nov 9, 2019

Dr. Friday Burke — Thu, 14 Nov 2019 19:19:39 +0000

Alrighty! The Doctor is in the house yet again with another exciting episode! In this episode, Dr. Friday singlehandedly answered interesting questions from callers and discussed the topics listed below. Also, don’t forget to listen to Dr. Friday’s Tax Tips – One Minute Moment that can be found on this website by clicking on the link.

Deduction for the Cost of Modification for Senior Proofing a Home

Medical Expense and Deduction

Filing Taxes for Someone Who’s in Assisted Living

Taking Taxes out of Social Security or Pension While Working

Are There Any Tax Deduction If You Pay Your Children or Grandchildren’s Bills?

How to Start Having a Filing Relationship with the IRS for a Self-Employed Individual?

Filing Taxes with No Permanent Address

Recent Glitch in the Electronic Federal Tax Payment System (EFTPS)

Child Care Credit

Taxing a Crowdfunding Situation

The Problem with Preparing Taxes Too Early

Mistake for Not Filing Your Taxes Electronically

Issues with Not Paying Your Taxes Quarterly

Penalties on Required Minimum Distribution

Deducting Musical Instruments and Tutoring – Is It Possible?

Getting a Rmd Late in the Year

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can 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 0:29 Good day! I’m Dr. Friday and the doctor is in the house! We are live here in studio so if you’ve got questions pick up the phone (615) 737-9986. (615) 737-9986. A big hi out to all those that did the hike for the homeless this morning down in Nashville. For Safehaven. It was a lot of fun. My two Great Danes and my big sister and I did that this morning and it had a wonderful turnout. So it was a great day outside. News Channel Five was out there and many others representing it and so it was a wonderful morning for that kind of walk. I will tell you, my big boys are, well, most you guys know I have Great Danes, and one of them’s about 185. The other ones closer to about 145. But the 185 was thinking two miles may have been just about a little too long, apparently. My sister got them home and their sound asleep. So if you’re out there enjoying this Saturday, I hope you well. It’s a beautiful day. I know a lot of people think it’s a little nippy, especially you guys coming from California. But after a few years, guys, trust me you will start loving with the weather when turns like this. If you do want to have some questions, may we’re talking about taxes.

Dr. Friday 1:39 I’m an enrolled agent license with the Internal Revenue Service to do taxes and representation. So if you have questions about tax preparation, maybe you haven’t filed taxes for a number of years, maybe you have an issue maybe you’ve received some love letters from the IRS and you’re really just not sure what they’re wanting or you know, do I open that can of worms, do I even start the conversation. So you want to get some answers, this is the show you want to join (615) 737-9986. (615) 737-9986. Taking your calls talking my favorite subject, all things taxes. So let’s talk about few things that people will get close in the year may so we’ll put you guys thinking caps on and deduction for the cost of modification for senior proofing a home. I think sometimes we have to think a l

Dr. Friday Radio Show – Nov 2, 2019

Dr. Friday Burke — Wed, 06 Nov 2019 13:15:16 +0000

Financial advisor Hank Parrott of Estate and Financial Strategies is this week’s guest for the Dr. Friday Show. If you have questions about Social Security or if you want to have a sound financial strategy for your life, Hank is the man. Together, the two experts answer questions from callers and talk about the following topics:

Should You Be Selling Stock This Time of the Year?

Land Sales Contract

What Hank Parrott Can Offer to His Clients

Preparing Pension for Retirement

Social Security and Pension Talks Between Spouses

Claiming a Dependent as a Foster Parent

Can You Put Your Spouse on Your HSA When You Change Jobs?

How HSA Works and How to Get the Most of It

What You Need to Know About NUA

Facts About the Qualified Charitable Distribution

What to Do When Having Difficulties Due to CPA Neglect

What Is Capital Gains?

Transcript

Announcer 0:01 No, no, no! She’s not a medical doctor, but she can share 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 0:29 Good day! I’m Dr. Friday and the doctor is in the house! That’s right. We are ready to rock. Well, I mean, it’s taxes. Come on. There’s no more exciting than that, you know. And today, we’ve got one of my best friends here in the studio. Hank Parrott. You guys know who Hank is.

Hank Parrott 0:46 There we go. Just to make it really exciting today. We can talk about taxes. We can talk about finances, we can talk about investing…

Dr. Friday 0:54 Numbers! We can talk about numbers people. Yes! Alright, well, and probably Hank and I are totally two people really totally enjoying this, but that’s one of the reasons I think we’ve been friends for over 20 years. Because we both the… So if you’ve got a question, let’s say you’re looking at the end of the year, this is the time you really need to do that evaluation. You need to say, should I be selling stock? If I sell it now, is there really just because you’re saving tax dollars this year, is that really a smart move? Should you be doing conversion? Should you… And remember, there’s been some new tax laws. So if you decide to do the conversion, then you’re like, oops, I shouldn’t have done that, oops, is no longer an answer. It’s done. You gotta live with it. We got the required minimum distributions we need to talk about. There are some advantages to doing things with charitable contributions through that. Also, if you don’t take… if you know, and I’m saying the words required minimum distribution, you have absolutely no idea and you are in your late 60s, or 70s, or 80s. And you have no idea then either you do not have a retirement account or you’ve missed the boat, and there’s some serious penalties that we could be getting hit with. So we’re gonna talk all of that. Be prepared!

Hank Parrott 2:02 Yeah, this is the end of the year. So if you, if you turned 70 and a half this year, you’ve got until December 31st to get that required minimum distribution out of that retirement account. Of course, we’re talking traditional, not Roth, unless it’s an inherited Roth. And then you may even have…

Dr. Friday 2:19 Well, if it’s inherited for individual other than a spouse, you’ve got the requirement of distributions, no matter if it’s a Roth…

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