Unanswered Tax Questions

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Bookkeeping & Write-up

prepare an income statement

All inventory is valued on a first-in-first-out basis. • During July 2023, in addition to producing and selling the regular girl’s and ladies’ clothing, Courageous also produced ladies’ overalls, men’s overalls and unisex overall jackets. • The accounting team prepared the following extract from the company’s Statement of Profit or Loss and Other Comprehensive Income (SPLOCI) for the month of July 2023: SPLOCI July 2023 R Revenue 26 318 850 Cost of sales (16 544 762) Gross profit 9 774 088 Operating expenses (11 900 000) Net interest expense (385 000) Profit before taxation (2 510 912) Current taxation 652 837 Profit / (Loss) for the month (1 858 075) • Assume that the cost of sales amount given in the extract from Courageous’ SPLOCI is comprised as follows: Product Type Composition of cost of sales Fixed cost portion of cost of sales Girl’s clothing 21% 19% Ladies’ clothing 34% 8% Ladies’ overalls 14% 7% Men’s overalls 25% 6% Unisex overall jackets 6% 8% • The fixed costs included in the product cost in cost of sales are allocated to the products based on the actual number of units produced. Assume that Courageous has a fantastic team of financial planners and the actual amount of fixed costs allocated to production during the month is equal to the actual fixed costs incurred during the month. • Assume that the operating expenses are semi-variable and are comprised as follows: July 2023 June 2023 Sales expenses R2 616 003 R2 595 600 Distribution expenses R6 104 007 R

Asked Wednesday, September 27, 2023 by zwivhuya r.
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Personal Taxes

How is the AGI affected by capital gains vs capital losses?

Posing a hypothetical question for educational purposes: If a married couple, filing jointly has a $30k long term capital GAIN from the sale of a mutual fund & also has a $20k long term capital LOSS from the sale of a different mutual fund, does the AGI increase by $30k or would the AGI increase by $10k ($30k minus $20K). Thanks

Asked Wednesday, September 27, 2023 by Dennis K.
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Business Formation

See question in notes please

I own a HVAC company and I let one of my good friend of mine, basically he’s a subcontractor and I let him work under my license and he scored a $400k job. He’s the one doing all the work and I just sit and look pretty meaning he’s taking most of the revenue. My question is how can he take responsibility for the taxes? Does it have to come back to me? Does he have to do a 1099? Basically how can I make him responsible for the taxes on that job he did under my license.

Asked Wednesday, September 27, 2023 by Angel O.
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Ihss income and the CaEITC

Hello there. I provide ihss services to relatives I live with and they pay me out of pocket in cash. I am not paid by Medicaid waiver program or any other state or local program. I am paid in cash. Is this considered as earned income?

Asked Wednesday, September 27, 2023 by Ronald S.
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Filing a 1099

I started doing contract work in April 2023. I will be receiving a 1099 from my employer. First, i am not sure if i am even taking the correct amount out of each check to put aside for when i file my taxes. How do i figure that amount out? Second, am I supposed to be making quarterly payments to the IRS?

Asked Wednesday, September 27, 2023 by Debbie S.
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Deductions and Write-Offs

Taking a distribution for dental work

I want to know if I would be able to claim a deduction if I pay 11,000 for dental work this year?

Asked Wednesday, September 27, 2023 by Mary S.
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Do I need to file taxes?

I did not work last year or earn any income except for $60 in TikTok earnings. Do I need to file taxes on that $60? I would actually prefer to file taxes on it because I could claim the child tax credit for my daughter, but when I went to file it said I wasn't eligible for some reason (I think because of the low amount it said), then it just wanted me to pay the filing fees which is almost $200. So if there's no way I can get the child tax credit, then I'd like to avoid having to pay $200 in filing fees, on earnings of only $60 if possible. Is it illegal to not file on those $60 of earnings? Thanks!

Asked Tuesday, September 26, 2023 by Katie M.
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Home Ownership

Mobile Home

Are the profits from selling taxable . Been my residence for 4 years

Asked Tuesday, September 26, 2023 by Jeffrey H.
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Union 1st Year apprenticeship in Washington State- moving from Oregon now

I live in Oregon. Obtained electrician apprenticeship 1st year of 5 year program last week in Washington state. Need assistance on what to claim on W-4 and is it better to become WA. resident? I am young and this is first time on my own.

Asked Tuesday, September 26, 2023 by Tate P.
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Personal Taxes

Nc taxes

I received a 1099nec, live in SC working NC. Don't know how to file this or if I have to.

Asked Tuesday, September 26, 2023 by Janis S.
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