The Dr. Friday Radio Show Unknown

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 distribute it.
01:24 –> 01:27
So let’s say you own 10% and they make a hundred thousand.
01:27 –> 01:30
So theoretically your K1 could come to you
01:30 –> 01:32
with a $10,000 profit,
01:32 –> 01:35
but maybe the money’s tied up in inventory or equipment.
01:35 –> 01:37
So it’s not actually tangible.
01:37 –> 01:39
Therefore no distribution can be done
01:39 –> 01:42
of that

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 where you’re like, well, do I want to have to go through
02:11 –> 02:14
an audit to get my own money back?
02:14 –> 02:20
So, you know, just be in mind that

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 must waive any claim or right to sue, alleged in the state
02:36 –> 02:37
of Tennessee.
02:37 –> 02:42
The franchis

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

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

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