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Personal Taxes

Interest deductions

Asked Friday, December 26, 2025 by Frederick

I have paid off a portion of my reverse mortgage which includes a large amount of interest. Is that interest deductible and can I carry over any of it into the following year?

Quick Answer:

Interest paid on a reverse mortgage is generally not deductible. For mortgage interest to qualify as a deduction, the loan proceeds must have been used to buy, build, or substantially improve your hom...
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Nonresident Tax Issues

Gift taxation foreign person

Asked Thursday, December 18, 2025 by Sandra

Non-US citizen and non-US resident (nonresident alien) with a US bank account want to gift a total of up to $100,000 in cash this year to 2 children who are US citizens and US residents. The gifts will be wire transfers or checks from their US bank account. Questions: Is this gift subject to US gift tax for me (the donor)? Is the gift considered taxable income to my children (the recipients)? Is it up to 100k per year with no reporting filing 3520?

Quick Answer:

As a nonresident alien, your gift of cash, whether from a U.S. bank account or wired, is generally not subject to U.S. gift tax. Cash is considered intangible property and is
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Small Business

I have less than 10,000 in revenue annually. How do I file my taxes?

Asked Tuesday, December 16, 2025 by J

I have less than $10,000 in business revenue annually. What do I need to consider regarding tax preparation?

Quick Answer:

For businesses with less than $10,000 in annual revenue, tax preparation primarily involves reporting your business income and deductible expenses. If operating as a sole proprietorship, this is typic...
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Education

Unused funds in 529

Asked Wednesday, December 10, 2025 by SHAANA

We have about 5000 unused funds in our daughter's 529 account. Does it make sense to withdraw the money, pay the taxes/penalty and put it into a high yield savings account to try to recoup the loss?

Quick Answer:

Withdrawing funds from a 529 account for non-qualified expenses involves specific tax implications. If the account has *earnings* (i.e., the current value exceeds your total contributions
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Small Business

What should I do to complete the registration of my non-USA company

Asked Tuesday, December 09, 2025 by Erman

Hi all, I have a small LTD in the UK and would like to buy wholesale products to resell here. I have an EORI/TAX number for UK customs/HMRC, so they can trace my activity. Do I also need an EIN to purchase certain items in the USA? Or can I buy goods w/o it? Also, some websites request an EIN to open a business account, eg, Amazon USA. Can I register my UK-based company with the US system, or is there an alternative solution for obtaining an EIN? PS. I need invoices for my UK-based company.

Quick Answer:

For purchasing wholesale products from the USA directly from suppliers, an Employer Identification Number (EIN) is generally not required for your UK LTD. Your UK EORI/TAX number is relevant for UK cu...
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Personal Taxes

Inherited mineral rights

Asked Sunday, December 07, 2025 by Faith

I was contacted by a company to buy mineral rights that I was unaware of. My dad passed in 2009. I sold the rights to this company and had to probate the will this year. The mineral rights are in Wyoming and I live in California. Since we couldn't find a will, my stepsister inherited half the interest from her mom that passed in 2022 but she signed a quit claim deed to me. I'm having a valuation done. Do we need to value the rights in 2022 for her portion for tax purposes?

Quick Answer:

Yes, for the portion of the mineral rights the stepsister inherited from her mother, the fair market value (FMV) on the mother's date of death in 2022 is the relevant valuation for tax basis purposes....
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Investment and Finance

Investment Property

Asked Saturday, December 06, 2025 by Shan

If I invest in rental properties through sites like arrived.com, how would that affect my taxes when I file tax returns next year? Would it position me to receive more back in tax returns?

Quick Answer:

Investing in rental properties through platforms like Arrived.com will introduce new elements to your tax return. You'll report your share of rental income and deductible expenses, typically detailed...
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Deductions and Write-Offs

Rental Properties

Asked Friday, December 05, 2025 by Shan

If I invest in rental properties through sites like arrived.com, how would that affect my taxes when I file tax returns next year? Would it position me for more deductions?

Quick Answer:

Investing in rental properties through platforms like arrived.com means you'll report your share of rental income and can claim corresponding deductions. Common deductions include depreciation, proper...
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Credits

How to report ERTC refund checks

Asked Friday, December 05, 2025 by Jose

I operate a C Corporation and file IRS form 1120 to report income. In June of 2023 I applied for the Employee Retention Tax Credit (ERTC). I amended my employer's quarterly federal tax return IRS form 941's for years 2020 and 2021. I received the ERC refund checks in 2025. How do I report the refund I just received? Since I amended the IRS form 941, do I have to go back and amend my form 1120 tax returns for years 2020 and 2021?

Quick Answer:

Yes, you must amend your Form 1120 tax returns for 2020 and 2021. The Employee Retention Credit (ERC) is treated as a reduction of your deductible wage expense. For income tax purposes, this reductio...
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Retirement

withdraw mistaken IRA after tax contributions

Asked Wednesday, November 12, 2025 by Mark

I mistakenly had a direct deposit go to my IRA account. This would be an after-tax contribution to an account that otherwise has all pre-tax contributions. Is it possible to remove just this deposit?

CPA Answer:

Yes remove this deposit from your IRA account, you will be over the limit and have to pay a penalty to the IRS.  Talk to your financial advisor as to how to go about doing this.  Keep a detailed record of the money going in and the money coming out.  This needs to be done by year-end


Answer Provided by: Jeanne Adams Jeanne Adams
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