Unanswered Tax Questions

CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?

View All Tax Questions

Tax Forms

filing 1041

I am required to file 1041's for my husband, sister and brother in law. I have received some 1099's that used their social security numbers, and, when I ask to have the 1099 changed. I cannot because the accounts were not in the estate's name. I have EIN's for each individual, and will use them when filing the 1041. But how will the IRS track the 1099's that used the social security numbers so that they know I have reported that income? I need to know how to handle this. Thanks

Asked Monday, March 18, 2024 by Laraine M.
Sign in to Answer

Payments and Penalties

Capital gains tax and avoiding

My parents have run into tough times and are unable to take care of the house,that has been in the family since 1998. My spouse and I were going to sell our property and move in with my parents. I know I need to put our names on the deed to there house but what can I do that we don't get taxed capital gain taxes or how can I avoid some. My spouse and I are wanting to take over the house.

Asked Monday, March 18, 2024 by Nicole K.
Sign in to Answer

Credits

Assigning the Used Ev credit when purchasing a vehicle jointly

Can I claim the used EV tax credit on a qualifying car when I purchase the car jointly with my girlfriend/ we are co-applicants (for credit reasons)

Asked Monday, March 18, 2024 by matthew w.
Sign in to Answer

Miscellaneous

Leasing property for solar panel farm

My sister & I inherited property on our family farm and the deed has both of our names on it. We are considering leasing the land to a solar energy developer group. What is the best, financially-sound way to proceed? How can we estimate what the tax will be on the rental income and how should it be reported when we file our personal taxes each year during the lease period? Is there specific language to include in the lease agreement to be sure the terms are in our best interest?

Asked Sunday, March 17, 2024 by Sue S.
Sign in to Answer

Miscellaneous

Minimum requirements for filing as an S Corp after submitting form 2553

I created a business in 10/22 but did not conduct any transactions until 2023; should I have filed a tax return for 2022 if I had no business activity? I filed form 2553 to file as an S-Corp in 2022. Do I need to file form 2553 every year or only once? Are there any minimum requirements to file as an S-Corp? If so, how do I file if I submitted form 2553 but do not meet the minimum requirements? Can I revoke form 2553 for the year 2023 when I file my taxes or is this not necessary?

Asked Saturday, March 16, 2024 by Shawn V.
Sign in to Answer

Personal Taxes

Oregon State Tax Make a Mistake on the return, That has already been mailed in.

I mailed in my Oregon State tax's March 14 , I believe I make a mistake on my Oregon State Tax instead of getting a (refund) ,.. I owe!! I did the Oregon State tax once more on Turbo Tax to be sure and yes" it was correct.. "I owe"....... Question " What do I do in a case like this? Amend ? or just wait and see? Thank you

Asked Saturday, March 16, 2024 by Brian H.
Sign in to Answer

Nonresident Tax Issues

Need to pay Self-employment tax for summer internship on 1099 contract?

I am an international student on F1 visa, I am a citizen of India. I have been here in the US for the past 7 months. I have a summer internship lined up in an early-stage startup, on a 1099 contract. It has been approved by my DSO (school) as CPT, Do I have to pay the self-employment tax (~15%)? I read that F1 students are exempt from FICA taxes for the first five years, and since the self-employment tax is basically FICA (right?), I would like to know if I am exempt from it. I would be interning in Texas which does not have state tax. So I believe I would only have to pay the Federal tax? I just want to have an estimate of what all taxes I would have to keep aside before negotiating for the stipend.

Asked Friday, March 15, 2024 by Harsh V.
Sign in to Answer

Credits

Foreign Tax Credit and Foregin Dividend Income Question

On form 1099-div, there was foreign taxes paid tied to dividends paid out on one security. It is strange because an adjustment was made that makes qualified dividend amount exceed ordinary dividend amount. The specifics are: ordinary dividend amount was $172 paid in 2023, ordinary dividend paid/adjusted in 2024 for 2023 $(160.35), total ordinary dividend amount = $12. Then for qualified dividend (same security): $0 was paid out in 2023, then $170 was paid/adjusted in 2024 for 2023, total qualified dividend = $170. You see how qualified dividend amount ($170) exceeds the ordinary dividend amount ($12). How am I supposed to account for this on form 1116?

Asked Thursday, March 14, 2024 by Jeffrey M.
Sign in to Answer

Business Formation

About who should own a new LLC

I collect SSA retirement, approx $20K, and my teenage son collects 50%, approx. $10K, of my benefit. I'm creating an LLC for a business that will have no employees. The business will generate between $10K to $20K within 3 years. For tax purposes, will it be better to register the business to my son or myself? Note that for the next 2 years, I will run the business exclusively. After that, my son will run the business.

Asked Wednesday, March 13, 2024 by Richard D.
Sign in to Answer

Personal Taxes

2023 Tax withholding

Hi, my spose and I (filing jointly) have made ~82,000/year and ~87,000/year, respectively. We have paid ~15,000 in taxes (maximum of taxes during 2023 according to our W4), and yet we have tax due of ~7,500. This income is from our W2 and we don't have other sources of income or anything else. It says that we should have paid ~22,000 in taxes in 2023. I guess my main question is how does the tax withholding gets calculated? I was looking at pg.4 on the W-4 form, and looks like we're within the estimated tax withholding range, hence not sure where is the 22,000 getting calculated from? Any insight on this would be very helpful, especially how does the tax withholding gets calculated yearly so we don't have to pay this much at the end on top of what we pay during the year. Thank you in advance. Best, Klausa

Asked Tuesday, March 12, 2024 by Klausa B.
Sign in to Answer