TX-How would I go about transferring a personal vehicle to my corporation, is this a smart move?

Q. I have a truck that is my personal vehicle. I am creating a sub Ch. S corporation & am considering transferring my vehicle to the corp. The vehicle would be used for bus. purposes. Also possibly blocking myselft from monetary liability & possibly as a write off/Insurance benefit. I am still making payments on the vehicle. Is this a worthwile move? Any tips to facilitate the transfer?

A. You can easily transfer the title by taking it to the motor vehicle department. Accounting for it you should debit (increase) the asset account "autos & trucks" and credit "shareholder equity" for the contributed asset.
The corporation can take depreciation expense. But beware, the insurance on a company owned vehicle is higher than a personally owned vehicle.

Original Question

I saw a corsa car(rear damaged and written off).Boot lid and bumper needs replacement.How much would it cost?

Q. Replacements are available.I need to know how much would it cost to repair these(lid and bumper).Rest of the car in excellent condition.
Also what are the implications of buying such cars(accident involved and written off by insurance team)??

A. if you go on the cheap like ajunk yard you can get the parts for about $100 if you do the work yourself. that means replacing the broken stuff with junkyard stuff. lid $40, rear bumper $65, tail lights, gas tank about $60 if needed.
if you remove the broken stuff and find something else like rear end damage, crushed trunk, gas tank,etc you can get pricey quickly. if the damage seems minimal get a good look at the trunk space, and overall rear body metal. any folds in the metal need to be pulled more money. other than that make sure the car runs, can pass inspection with rear lights and stuff and fix it.

Original Question

I'm work for a company and use my car, can I write off the insurance on my taxes?

Q. I know you can write off if you are self employed, but what if you work for a company and are required to use your own car and receive a mileage reimbursement?
Wow! Thanks Agha, you have just been reported for spam! Sux to be you!
You too King spammer

A. You cannot take a dollar for dollar deduction for your insurance.

You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.

Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.

In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.

All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.

Original Question

If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?

Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.

So why would it be tax free if I go through an employer, but not if I buy my own plan?

A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.

Original Question

Powered by Yahoo! Answers

When does an insurance company writes off a car as a total loss?

Q. Does anyone know when an insurance company writes off a car as a total loss?

Thank you.

A. When it would more economical to scrap it than to repair it.
1

Original Question

When is it okay to write off a balance on a medical claim?

Q. Scenario 1: Medicare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (United Healthcare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 2: United Healthcare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Medicare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 3: Cigna primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Aetna) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?

A. Is your physician contracted with the insurance's listed above? If they are a contracted provider they MUST bill the patient for the balances. After 1 bill has been sent and no response the balances maybe discounted per your office policy, but an 'attempt' must be made. This is normally stated in the contract that your physician signed with the insurance companies to become participating.
Medicare has become increasingly strict on this in recent years. I have audited accounts regarding this and Medicare actually removed the doctors ability to bill them (participation revoked for a certain amount of time) for not abiding by the contracted terms. I always suggest that doctors include a section in their office policy's that state you will bill once and if no response with a balance under $XX.XX($5.00 or $10.00 your office picks) then the balance is written off to a specific account that you can track (ie:low balance write off-contracted vs non contracted write off) and if need be, you can run a report for various insurances if they request.

Original Question

Is it illegal to "write off" health insurance copays and deductibles?

Q. I work for a professional office where a patient inquired if we can write off his/her copay. Can anyone provide documentation stating if this is legal or not? I appreciate your thoughts in advance.

A. There are three words that people often misunderstand and misuse. They are: co-pay(ment), coinsurance, and deductible.

A deductible is the amount a person MUST PAY before their insurance will begin processing claims for payment in any given year. The amount is applied to the first claim(s) that are received during the year, and the patient must make payment to the provider of service whenever an amount is applied to their deductible.

Co-insurance is the amount that the insurance company does not pay, after the deductible has been met. Typically, the insurance will pay 80% of the allowable amount, and the insured member is responsible for the other 20%.

Both of these concepts, deductible and co-insurance, are cost share obligations under a traditional indemnity, or fee-for-service health insurance plan.

A co-payment is completely different, and pertains to a managed care plan. The co-pay is the managed care (HMO, MCO, etc.) cost share obligation.

Managed care IS NOT INSURANCE! So laws that regulate insurance companies in regard to claims, benefits, etc., do not apply. Managed care is referred to as a "subscription plan," because it does not constitute the issuance of a certificate of insurance.

Read the rules of managed care. The patient CANNOT see the doctor until they make their co-payment. Managed care is governed by federal law and is not open to interpretation. To "write-off" a co-pay, or to allow a patient in to see the doctor without collecting the co-payment, is against the law!

This flies in the face of traditional indemnity insurance, and because so many people are not familiar with the laws governing managed care (including doctors and administrators) they believe that the same rules apply. They do not.

Traditionally, even if an established patient owes the doctor money, we must still let them in to see the doctor. As opposed to managed care, where the patient cannot see the doctor until the co-payment has been made.

Having said that, deductibles and co-insurance amounts cannot just be written off. IRS code demands that we do one of two things before we write it off. And understand, an adjustment is different from a write-off. You eat an adjustment. Write-offs can be included on your Schedule C, and be accounted toward your profit and loss statement for the year.

The IRS demands that we either: 1.) Substantiate that the patient suffers a financial hardship; 2.) make a collection effort.

A financial hardship is more laborious and time consuming, but offers better protection if you are audited. Basically, you must gather paycheck stubs, tax info, mortgage or rent info, car note info, utilities bills, and anything that will assist in documenting the fact that the patient suffers a financial hardship. This process must be repeated every 180 days. However, once established, you can simply write the amounts off that the patient would normally owe.

Making a collection effort is defined by the IRS as sending a bill (statement) once each 30 days for a period of 90 days, followed by a demand letter on day 120. If funds are not received to reimburse us for that expense, we can then write it off.

These are the rules as stated by the IRS when it comes to write off allowances. The managed care scenario is covererd by federal law, so please be careful what you do.

There are no HIPAA police looking in our windows. There are no IRS police, either. But it only takes one patient to complain, and an audit can ensue.

Hope that helps!

Original Question

Will Obama be ending the write off for personal medical expenses now?

Q. If his health care reform is so inclusive then it is no longer needed?

Will this be the third hit on those that cannot afford insurance because of preconditions?
He already denied them the ability to write off their extremely expensive insurance policy (like corporations do for their employees) to guarantee that it would most likely be affordable. So will they pay the fine and then be unable to write off the bills they pay out of their pocket?

A. That would be next as it would put extra pressure on people to over insure and put more money in the bribers pockets.

Original Question

Powered by Yahoo! Answers

If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?

Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.

So why would it be tax free if I go through an employer, but not if I buy my own plan?

A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.

Original Question

When does an insurance company writes off a car as a total loss?

Q. Does anyone know when an insurance company writes off a car as a total loss?

Thank you.

A. When it would more economical to scrap it than to repair it.
1

Original Question

When is it okay to write off a balance on a medical claim?

Q. Scenario 1: Medicare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (United Healthcare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 2: United Healthcare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Medicare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 3: Cigna primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Aetna) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?

A. Is your physician contracted with the insurance's listed above? If they are a contracted provider they MUST bill the patient for the balances. After 1 bill has been sent and no response the balances maybe discounted per your office policy, but an 'attempt' must be made. This is normally stated in the contract that your physician signed with the insurance companies to become participating.
Medicare has become increasingly strict on this in recent years. I have audited accounts regarding this and Medicare actually removed the doctors ability to bill them (participation revoked for a certain amount of time) for not abiding by the contracted terms. I always suggest that doctors include a section in their office policy's that state you will bill once and if no response with a balance under $XX.XX($5.00 or $10.00 your office picks) then the balance is written off to a specific account that you can track (ie:low balance write off-contracted vs non contracted write off) and if need be, you can run a report for various insurances if they request.

Original Question

Is it illegal to "write off" health insurance copays and deductibles?

Q. I work for a professional office where a patient inquired if we can write off his/her copay. Can anyone provide documentation stating if this is legal or not? I appreciate your thoughts in advance.

A. There are three words that people often misunderstand and misuse. They are: co-pay(ment), coinsurance, and deductible.

A deductible is the amount a person MUST PAY before their insurance will begin processing claims for payment in any given year. The amount is applied to the first claim(s) that are received during the year, and the patient must make payment to the provider of service whenever an amount is applied to their deductible.

Co-insurance is the amount that the insurance company does not pay, after the deductible has been met. Typically, the insurance will pay 80% of the allowable amount, and the insured member is responsible for the other 20%.

Both of these concepts, deductible and co-insurance, are cost share obligations under a traditional indemnity, or fee-for-service health insurance plan.

A co-payment is completely different, and pertains to a managed care plan. The co-pay is the managed care (HMO, MCO, etc.) cost share obligation.

Managed care IS NOT INSURANCE! So laws that regulate insurance companies in regard to claims, benefits, etc., do not apply. Managed care is referred to as a "subscription plan," because it does not constitute the issuance of a certificate of insurance.

Read the rules of managed care. The patient CANNOT see the doctor until they make their co-payment. Managed care is governed by federal law and is not open to interpretation. To "write-off" a co-pay, or to allow a patient in to see the doctor without collecting the co-payment, is against the law!

This flies in the face of traditional indemnity insurance, and because so many people are not familiar with the laws governing managed care (including doctors and administrators) they believe that the same rules apply. They do not.

Traditionally, even if an established patient owes the doctor money, we must still let them in to see the doctor. As opposed to managed care, where the patient cannot see the doctor until the co-payment has been made.

Having said that, deductibles and co-insurance amounts cannot just be written off. IRS code demands that we do one of two things before we write it off. And understand, an adjustment is different from a write-off. You eat an adjustment. Write-offs can be included on your Schedule C, and be accounted toward your profit and loss statement for the year.

The IRS demands that we either: 1.) Substantiate that the patient suffers a financial hardship; 2.) make a collection effort.

A financial hardship is more laborious and time consuming, but offers better protection if you are audited. Basically, you must gather paycheck stubs, tax info, mortgage or rent info, car note info, utilities bills, and anything that will assist in documenting the fact that the patient suffers a financial hardship. This process must be repeated every 180 days. However, once established, you can simply write the amounts off that the patient would normally owe.

Making a collection effort is defined by the IRS as sending a bill (statement) once each 30 days for a period of 90 days, followed by a demand letter on day 120. If funds are not received to reimburse us for that expense, we can then write it off.

These are the rules as stated by the IRS when it comes to write off allowances. The managed care scenario is covererd by federal law, so please be careful what you do.

There are no HIPAA police looking in our windows. There are no IRS police, either. But it only takes one patient to complain, and an audit can ensue.

Hope that helps!

Original Question

Powered by Yahoo! Answers

TX-How would I go about transferring a personal vehicle to my corporation, is this a smart move?

Q. I have a truck that is my personal vehicle. I am creating a sub Ch. S corporation & am considering transferring my vehicle to the corp. The vehicle would be used for bus. purposes. Also possibly blocking myselft from monetary liability & possibly as a write off/Insurance benefit. I am still making payments on the vehicle. Is this a worthwile move? Any tips to facilitate the transfer?

A. You can easily transfer the title by taking it to the motor vehicle department. Accounting for it you should debit (increase) the asset account "autos & trucks" and credit "shareholder equity" for the contributed asset.
The corporation can take depreciation expense. But beware, the insurance on a company owned vehicle is higher than a personally owned vehicle.

Original Question

I saw a corsa car(rear damaged and written off).Boot lid and bumper needs replacement.How much would it cost?

Q. Replacements are available.I need to know how much would it cost to repair these(lid and bumper).Rest of the car in excellent condition.
Also what are the implications of buying such cars(accident involved and written off by insurance team)??

A. if you go on the cheap like ajunk yard you can get the parts for about $100 if you do the work yourself. that means replacing the broken stuff with junkyard stuff. lid $40, rear bumper $65, tail lights, gas tank about $60 if needed.
if you remove the broken stuff and find something else like rear end damage, crushed trunk, gas tank,etc you can get pricey quickly. if the damage seems minimal get a good look at the trunk space, and overall rear body metal. any folds in the metal need to be pulled more money. other than that make sure the car runs, can pass inspection with rear lights and stuff and fix it.

Original Question

I'm work for a company and use my car, can I write off the insurance on my taxes?

Q. I know you can write off if you are self employed, but what if you work for a company and are required to use your own car and receive a mileage reimbursement?
Wow! Thanks Agha, you have just been reported for spam! Sux to be you!
You too King spammer

A. You cannot take a dollar for dollar deduction for your insurance.

You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.

Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.

In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.

All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.

Original Question

If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?

Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.

So why would it be tax free if I go through an employer, but not if I buy my own plan?

A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.

Original Question

Powered by Yahoo! Answers

I'm work for a company and use my car, can I write off the insurance on my taxes?

Q. I know you can write off if you are self employed, but what if you work for a company and are required to use your own car and receive a mileage reimbursement?
Wow! Thanks Agha, you have just been reported for spam! Sux to be you!
You too King spammer

A. You cannot take a dollar for dollar deduction for your insurance.

You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.

Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.

In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.

All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.

Original Question

If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?

Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.

So why would it be tax free if I go through an employer, but not if I buy my own plan?

A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.

Original Question

When does an insurance company writes off a car as a total loss?

Q. Does anyone know when an insurance company writes off a car as a total loss?

Thank you.

A. When it would more economical to scrap it than to repair it.
1

Original Question

When is it okay to write off a balance on a medical claim?

Q. Scenario 1: Medicare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (United Healthcare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 2: United Healthcare primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Medicare) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?
Scenario 3: Cigna primary allowed $85 on a $260 charge, paying $70, leaving $15 balance for the secondary insurance to pay. The secondary insurance (Aetna) paid $11.50 of the $15 balance, is it okay to write off the $3.50 balance or do you leave the balance for patient?

A. Is your physician contracted with the insurance's listed above? If they are a contracted provider they MUST bill the patient for the balances. After 1 bill has been sent and no response the balances maybe discounted per your office policy, but an 'attempt' must be made. This is normally stated in the contract that your physician signed with the insurance companies to become participating.
Medicare has become increasingly strict on this in recent years. I have audited accounts regarding this and Medicare actually removed the doctors ability to bill them (participation revoked for a certain amount of time) for not abiding by the contracted terms. I always suggest that doctors include a section in their office policy's that state you will bill once and if no response with a balance under $XX.XX($5.00 or $10.00 your office picks) then the balance is written off to a specific account that you can track (ie:low balance write off-contracted vs non contracted write off) and if need be, you can run a report for various insurances if they request.

Original Question

Powered by Yahoo! Answers