Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Can a person on H4 EAD who is present in US from the past 10yrs can elect LLC as Scorp?
I'm current on H4 EAD and have a small business and residing in US from past 5 yrs. As I'm a non citizen/green card holder, i will be considered as a Non resident alien but I meet the substantial presence test. So in that case, I can elect my LLC as S Corp?
Asked Thursday, October 17, 2024 by Raghu C.Sign in to Answer
Prop trading firm
I tried getting into trading through a prop firm and it didn't work out for me. I invested about 4900 between subscriptions and tools and would like to write these off as a loss. The prop firm company normally issues a 1099misc for those that receive income however, I never received a positive income and wasn't issued a 1099. I typically file my own taxes using an online tax software and would like to get advice on how to report this loss on my taxes. Thank you for taking the time to read and assist. It is greatly appreciated.
Asked Tuesday, October 15, 2024 by Fred L.Sign in to Answer
Eligibility for Energy Efficient Home Improvement Credit?
I own House A, and lived there as my primary residence from the start of 2023 through late October 2023, at which point I moved into House B. I also rented out at (a) room(s) in House A throughout 2023, meaning I had one or two tenant-roommates while I was living there, and then it became pure rental in late October when I moved out. In December, I made an improvement to House A -- I had a new heat pump installed. That may make me eligible for the Residential Energy Efficient Property Credit: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit To be eligible for the credit, the improvement has to be made to my "main home", which is "generally where you live most of the time" according to the IRS link above. This is the only further clarification I see: "In most cases, the home must be your primary residence (where you live the majority of the year). You can't claim the credit if you're a landlord or other property owner who doesn't live in the home." Since I lived in House A for the vast majority of the year, does that mean I can treat it as my "main home" for the whole of 2023 for the purpose of claiming the credit? Or does it have to be "where I live most of the time" at the specific moment I make the improvement?
Asked Tuesday, October 15, 2024 by Matthew P.Sign in to Answer
Starting day trading on h4 without ead
So I am on h4 visa situated in the USA without ead and I want to start day trading and ead takes 1-3 years, how do I start now, there must be some alternative like paying tax in my home country or anything else
Asked Wednesday, October 09, 2024 by Ryan K.Sign in to Answer
IRS 5472 form
Hi, Could you please shed some light into this question. If a European citizen formed a US LLC that has been inactive for a few years, which means it doesn't conduct any business in the US and doesn't have a bank account, does this company still have to fill out the IRS 5472 form? Does it have any other reporting obligations? Thank you very much
Asked Friday, October 04, 2024 by Peter B.Sign in to Answer
offsetting long term losses with short term gains from stock trades
Ex: After reconciling short term losses with short term gains for the year I wind up with a gain of $10,000. After reconciling long term gains with long term losses I end the year with $13,000 in losses. On the tax return does the short term gain offset $10,000 worth of long term losses?
Asked Thursday, September 26, 2024 by Earl C.Sign in to Answer
Does selling inherited property affect your tax bracket?
My father passed away, and I inherited his condo, but I'm selling it. Will the money I receive from the sale affect our tax bracket on our taxes? Or is it separate from our income/what determines our tax bracket for the year?
Asked Sunday, September 22, 2024 by Anna R.Sign in to Answer
Income tax and Annual Report Filing penalties
Hello, I will present some context to my situation. I have an LLC set up in Wyoming since November 24th, 2023, and I haven't paid any taxes whatsoever or I haven't even filed my Annual Report File. I am based in Colombia and my LLC is a single-member foreign LLC. I just spoke with a local CPA and they told me that I owe taxes, as well as the annual report, and ever since April, there has been a penalty added to me for not paying any income tax or filed any annual report. I wanted to know how much of this is true, and if so, is there a way to appeal as a First Time Forgiveness, since this CPA told me there is a way to appeal that. Also I wanted to know what can I instantly do to solve this at the moment? I have an invoice from my Registered Agent that I can pay that is for the Annual Report Filing. Do I still have to pay extra for the penalties added every month? I need help and I need to know what to do in this case, can I file the income tax now and be able to appeal the penalty?
Asked Saturday, September 21, 2024 by Sebastian B.Sign in to Answer
Stepped up basis for property in probate
I am the sole heir and executor of an estate which includes a piece of property located in Virginia. If I were to sell the property through the estate, while still under probate, would the estate be able to claim stepped up basis for capital gains tax? I don't want to make the mistake of selling it under the estate and having a larger tax liability than if I waited until the property was transferred into my name.
Asked Friday, September 20, 2024 by Eric M.Sign in to Answer
ROTH Conversion
I am 70 yrs old, retired, & have both an existing Roth I have been drawing on & also have a 401k worth less than 200k. I am expecting some investment return $'s to go into the 401k account but I would like to convert that to a ROTH BEFORE those funds shows up. My question is if I do that conversion will I have to wait 5 yrs to access those funds, or because I already fulfilled more than 5 yrs on my ROTH account would the investment returns be immediately available?
Asked Thursday, September 12, 2024 by Doug C.Sign in to Answer