Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Capital improvements/expenses
Hi, just sold a house in California and am wondering if the items below are considered capital improvements that can be added to the basis, or capital expenses that can be deducted from the gain. If so, should that be done prior to calculating capital gains tax and other affected taxes? As well, is landscaping - perennials, shrubs, trees, irrigation systems - considered a capital improvement? Thank you. Master Bathroom Tiling Roof vents - Pest Control Carpet install - bdrm and media room Door build and install - main bath Door install/hardware Electrical work - interior Electrical work - exterior Electrical work/parts - interior Stair repair Garage door keyless entry install City permit costs Plaster wall repair Misc. Plumbing Misc construction int/ext Lower deck and pergola design Architectural services Media room remodel Architectural services Lower deck and pergola construction
Asked Friday, July 26, 2024 by Sloan F.Sign in to Answer
1099
I am going to be moving to Canada in the next couple of months and in order to continue working with my current US employer, I will likely be moving to a 1099. I am trying to map out and understand how this affects my take home pay/how I need to pay taxes. Can you take a look at this https://we.tl/t-zZtLehkvwN and let me know if you think it is accurate? Any other insights would be greatly appreciated.
Asked Wednesday, July 17, 2024 by Lindsay D.Sign in to Answer
Tax obligations for an Online Travel Agency in the United States
Hi, we are starting a new travel agency. The home state of the Business is in the state of Nevada. We have also registered as out of state corporations in the state of California, Florida, Hawaii, Washington and IOWA as these states would need us to have a seller of travel license in order to enable customers from these places to book hotel accommodations on our website. However, we do not have any physical office in any state other than Nevada. I would like help to comply with the tax requirements that my company may have in the United States or will i have tax liability only in the state of Nevada.
Asked Wednesday, July 17, 2024 by Sirish T.Sign in to Answer
Exchange Real Estate for Company Shares
My 501(c)7 (a "hunting and fishing club") sales shares in the club to raise money to purchase properties for use by the share holders. There are a couple of shareholders or potential shareholders who would like to turn over their real estate holdings to the club in exchange for shares in the club. After such an exchange, the two would control more than 80% of the club. Is such an exchange allowed (perhaps under Section 351?) without tax consequences? If so, Is there a "holding period" during which the two shareholders may *not* sale their shares in whole or in part? In other restrictions or reporting requirements following such an exchange?
Asked Thursday, July 11, 2024 by Greg C.Sign in to Answer
Concerning passing ownership small business to son and then son directly selling the business
So my Father is retiring and is selling his business (a mom and pop Dry Cleaners in California), but he asked me that he wants to pass ownership to me before he sells the business to the buyer. Therefore, I would be the recipient of the money The reason why he wants to do this is because he does not want to lose his and my mothers medicaid as they have a variety of health issues and have heavily relied on it to live. If he sells the business as the owner he believes he would lose their medicaid coverage. Also, they have been ebt (or food stamps). My question is would this considered be legal first of all and if so how much tax would I be looking at. The total amount coming in from selling the business is $100k in total, with the incoming payments being split into 5 years with the first down payment for $20k, and installments of $1,500 every month after that. Plus, I as an individual make about $45k annually from my job. Thank you so much.
Asked Sunday, June 30, 2024 by Thom Y.Sign in to Answer
Minimizing Tax in Gift/Transfer and Sale of a Gifted Home
My great aunt sold my mom a home for $1 in the early 2010s, so my mom owns the home outright with no mortgage. It is now valued at $460,000. As part of her estate plan, she wanted to leave me the house. However, she decided that she wants to enjoy the proceeds with me while living, so she wants to either: - [ ] Somehow sell the home and - [ ] Gift me $200,000 of the proceeds to use to pay off debt, and - [ ] Gift me the remainder to use to buy a new, larger home in which both she and I live, and on which I pay the mortgage (so I can help take care of her after Dad passed away a few years back). Or: - [ ] Gift me or a trust the home directly to then sell to accomplish the same as the above. How can the above happen with the least tax consequences? Ideally, we wanted to put the house or funds in a trust of some sort to protect her (I.e., ensure she has partial ownership but the remaining equity transfers to me when she passes, ensure I’m required to use the first $200,000 to pay off debt, etc.), but if some sort of sale by her, gift to me, 1031 exchange, etc. is more tax-efficient, we’d prefer to go that route and accomplish the “protection” by other means or contracts.
Asked Friday, June 28, 2024 by Bryley G.Sign in to Answer
square taxes paid to gig employees
I had gig employees that were paid through square and taxes were held out for them as well. Do I enter this on my LLC or personal tax forms someplace? As I am the owner of the business who set up the square payments for coffee delivery services
Asked Wednesday, June 19, 2024 by Jeannette Y.Sign in to Answer
IRA tax
I deposited $7,000 into my traditional IRA account this year. I invested the $7,000 in stocks and earned $1,000. I now want to transfer my $7,000 contribution plus $1000 earning from the traditional IRA to a Roth IRA account. However, I don't know how the tax will be calculated when I file my tax return this year? Do I only need to pay tax on the $7,000 contribution, or do I need to pay tax on the $8,000 ($7,000 contribution plus $1,000 earning)? I heard that people only need to pay tax on the amount contributed into the Roth IRA, but not on the earnings generated by the contributed amount, is this correct?
Asked Wednesday, May 29, 2024 by Peter S.Sign in to Answer
Which corporate taxes I should pay with ITIN?
I am a citizen of the Czech Republic, and I have registered an LLC in the State of Delaware. I work with neural networks (IT service) and have a website where I plan to provide clients access to my service for a fee. To accept payments, I need card processing in the USA. I encountered the issue that all processing systems require either an SSN or ITIN, which I do not have (I am a foreigner). Could you please advise me on the taxes I will need to pay in Delaware for the company (IT Service LLC) and as an individual if I obtain an ITIN?
Asked Saturday, May 25, 2024 by Kirill S.Sign in to Answer
how to file my taxes
Hello, since it's my first year with a foreigner LLC in Florida, I would like your help to understand how to file taxes, when, and where please. My friends are doing it right now, I could use some help understanding what to do here, also if you can help maybe? Thank you so much
Asked Saturday, May 18, 2024 by Sophie L.Sign in to Answer