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Can I Get a Tax Extension Past October 15? And More Free Tax Advice – Ask The Tax Pro 10/4/12

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On Thursdays, CPA and Vice President of Corporate Tax Network, Gary Milkwick, answers tax questions for free on the LegalZoom Facebook Page. Did you miss the last Ask the Tax Pro? Don’t worry. We’ve got it all right here.

Chris: Is it possible to get another extension past Oct 15?

Corporate Tax Network: Chris, unfortunately it’s not possible to get another personal extension past Oct. 15. If you owe money, you will have to pay penalties and interest based on the amount you owe; however, if you do not owe money, you really don’t have a problem – you’ve given the government an interest-free loan. And no, you can’t charge interest on your loan to the government.

Anthony: Is it better to have credit card debt going into tax season? Also do you have to pay tax on the money you use to pay that debt?

Corporate Tax Network: Anthony, credit card debt does not provide any benefit to you personally from a tax perspective; the interest is not deductible. However, if you own a business, the interest on credit card debt for business expenses may be deductible. You don’t pay tax on the money to pay credit card debt, but since it’s not a tax-deductible item, you are using after-tax dollars to pay the debt.

Stan: Hello: Tax Pro question: “Should I be, in Ohio, charging tax on building and/or maintenance for website creation for clients?” If I do Facebook Fan page work and invoice a client for it, should I charge tax?

Corporate Tax Network: Stan, per the Ohio Department of Taxation, creating a website is a charge for a personal service, and it is not subject to sales or use tax. State rules vary fairly significantly for charging and collecting sales tax, so this may not be the case in other states.

Stan: How ’bout if the “I or me” is a small business. -Still a “personal service”?

…in other words, “How about if it’s more of a Business-to-Business service I provide?”

Corporate Tax Network: Yes, that’s correct. At times, lawyers tend to make the verbiage more complicated and confusing than necessary…

Jenn: I am an IRS certified level 1 tax preparer my PTIN expires 11-1-12, and I have no clue where to get free classes and recertification (including all the new requirements)?????

Corporate Tax Network: Jenn, you can renew your PTIN here:

http://www.irs.gov/Tax-Professionals/PTIN-Requirements-for-Tax-Return-Preparers

Registered tax return preparers must also complete 15 hours of continuing education, including the following:

- 2 hours of ethics
- 3 hours of federal tax law updates
- 10 hours of other federal tax law

http://www.irs.gov/Tax-Professionals/Continuing-Education-for-Tax-Professionals

You can find a list of approved continuing education providers on the following website – I’m not sure which ones (if any) are free, but this should be a good resource:

https://ssl.kinsail.com/partners/irs/publicListing.asp

Lance: What type of itemized deductions could one get for owning a chicken farm?

Corporate Tax Network: Lance, in general, the “ordinary and necessary” costs of operating a for-profit farm are considered deductible business expenses. Some common expenses / deductions related to raising livestock and egg production are as follows: the purchase of feed, fertilizers, supplies, labor, gasoline, repairs, the purchase of seeds and plants, etc.

IRS Form 4835, Farm Rental and Expenses, contains a list of many of the deductible expenses for a farm. You can also refer to publication 225, Farmer’s Tax Guide (page 19), for a more comprehensive description of farm business expenses.

http://www.irs.gov/pub/irs-pdf/p225.pdf

LegalZoom: More free tax Q&A with Corporate Tax Network next Thursday!

And don’t forget to check out free legal advice tomorrow with Barely Legal Radio w/ Joe Escalante: http://zoo.mn/bFreeJoe

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October 8th, 2012 at 5:48 am