User talk:Ksnoopytax

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Dental Plan

I am not sure if I explained correctly my question and yet maybe I did. The employer is offering health insurance for no cost to the employee but if they want dental insurance; they have to pay for it on their own. For convenience, the employer is taking the $12.00 per month out of the employee's paycheck. Everyone is saying that a cafeteria plan needs to be in place. Could this be considered like a premium-only plan (POP) which allows the employees to purchase group health/dental coverage or life insurance on a pre-tax basis using salary - reduction contributions???? So could this be a tax free benefit? email is tlcqbadvisor@msn.com--TLCTaxGirlAZ 20:26, 20 August 2007 (CDT)

1120-H Expenditures Test

I've been agonizing over the same issue, mainly since the primary source of information has been the instructions for the 1120-H which is cryptic, at best.

We all seem to leap at the idea that the 90% test means that 90% of gross income or revenue must be offset by qualifying expenses, and fail to note that transfers to a Reserve Fund are specifically NOT a qualifying expense.

What the section law (S. 1.528-6) on the Expenditures Test actually says, is, that the money transferred to a Reserve Fund shall ** not be counted ** as an expenditure. Therefore, itemize your expenditures, not counting the Reserve Fund - it is excluded, remember? From that total, 90% must be expensed in one of the qualifying ways.

The specific point is that the test is not an gross income vs. total expenses calculation. The test excludes transfers to a Reserve Fund from the calculations, altogether.

Read the full section in this link. It is a bit more explicit than the instructions on the form: http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=fc56c3b6f1dc72eb13d45079f04f3cad&rgn=div8&view=text&node=26:7.0.1.1.1.0.5.121&idno=26

So, if you had $100,000 flow through your checking account, and $12,000 went to the Reserve Fund, you would make your 90% calculation based on the $88,000 that was left after the Reserve Fund money was excluded. You would, therefore, only have to prove that $79,200 was used for the purposes listed in the instructions.

Does that help?

dajohns777

Joint account query

Have seen you answer a few queries are joint accounts. Wondered if you could give a few leads :

Facts:

H, is a NRA, married to W, also an NRA .(Non-Treaty domiciled in community) H and W own a joint bank account in the State of NYK with Rights of Survival. H and W own a joint broker account in the State of NYK with right of survival H is the sole contributor to the NYK bank account by way of his employer directly transfering the funds to the Joint account (employment not connected with a trade/business in the US). H is the sole contributor to the NYK broker account by way of receiving US shares from his employer(employment not connected with a trade/business in the US) Questions :

Would H’s contribution to the joint bank account be defined as "intangible assets" ? Would H’s contribution to the joint broker account be defined as intangible asset ? Are there any gift tax implications on the incoming funds/shares ? Are there any gift tax implications if the couple wire funds (not shares)from their joint US bank or joint US Broker to a joint account outside the US ?

Are there any gift tax implications if the couple wire funds to separate accounts outside the US.