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Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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need advice if it makes sense to put money in a ira
Hi, need some tax advice. I am ready to file taxes for 2020. My income is between 30-35k. I have 2 kids so my EIC will be quite large. Does it make sense to open a IRA, deposit around 6k, which would then lower my taxable income to about 24-29k and get me about a extra 1k on my EIC? and I could potentially get more refund due to having less of a tax liability and also due to the savers credit? I don't plan on keeping the money there for a long time. I would wanna buy a house in the next 2 yrs (approx), so I would be able to take out up to 10k penalty free from a IRA for first time home buyer. The main issue I have is if I would want to get a mortgage I would obviously have to be making a lot more than 35K, so in 2 years from now when I gd willing have a larger income and I pull the money out to buy a house, my tax bracket on the money I put in will be potentially be considerably higher than it is now. any advice would be appreciated. thanks
Asked Wednesday, March 03, 2021 by Matt GoldbergSign in to Answer
Partial exclusion for capital gains - what is the burden of proof?
Hello! We may be moving after only owning our home for 20 months. What is the burden of proof for moving due to health reasons? We are moving to Colorado. My MIL lives in Colorado and was diagnosed with cancer. She has had surgery and they removed the mass. So, she is recovering but we'd like to be there to help her out since she will be on medicine for the next 5 years. However, she definitely doesn't "need" us. In addition, my husband just spent the last week in a Colorado ICU due to a blood clot; he will need surgery in a few weeks. Do either of those qualify as health reasons for a partial exclusion?
Asked Tuesday, March 02, 2021 by Alison LeibovitzSign in to Answer
Child tax credit
If I file my taxes before Bidens child tax credit is approved will I miss out on the benefit of those changes?
Asked Tuesday, March 02, 2021 by Amanda LockeSign in to Answer
Is Paying back margin taxable
If I have some stocks bought with margin and I sell just enough of my positions in other stocks to pay back the broker for that margin is it taxable? Do they consider it income if it was money that was never yours and you are just paying back a loan
Asked Monday, March 01, 2021 by Nick LeBlancSign in to Answer
Live in FL, work remotely in MD, employer in NY. Do I pay state taxes?
I was hired by a staffing agency in NY to work remotely for a company in Maryland. None of my services are performed in the state of NY (physically or remotely). I currently live in the state of Florida. Which state (if any), would I pay state taxes in?
Asked Monday, March 01, 2021 by Jessa BarreSign in to Answer
MA: Selling home to child. Reducing tax consequences.
Massachusetts: Family house (not a primary residence of the owner) is in aunt and father's name. Aunt and father intend to sell property to daughter and her husband (me). Property value is roughly $500K, tax assessed at $400K, intended sale price is $167K. Father is Connecticut resident and aunt is Massachusetts resident. I (daughter's husband) am active duty military, but separating before the end of 2021 and not stationed in MA on orders. I am currently a resident of Florida for tax purposes. We are all trying to reduce the tax consequences of the sale. What are our options? Thank you in advance.
Asked Sunday, February 28, 2021 by Kenneth ThorntonSign in to Answer
I put $2400 into a retirement annuity. Does this qualify as Retirement Savings Contribution Credits?
I have the Optichoice9 Fixed Annuity from Lincoln Financial for my retirement. I put $2400 yearly into it. Can I put this amount on my tax return as Retirement Savings Contribution Credits?
Asked Friday, February 26, 2021 by Marilyn SantiagoSign in to Answer
What will I pay on sold inherited stock?
I inherited stock and sold it and received my 1099 form. Will I pay taxes on total proceeds or just gain?
Asked Friday, February 26, 2021 by Caitlin AnderleySign in to Answer
Looking for a CPA with hotel experience
Looking for someone in Los Angeles who has been working as a accounting manager or CPA in a hotel, for 5 years. I am hiring a full-time position which will lead to a director or principle position. Leave a voicemail at 202.486.3198
Asked Thursday, February 25, 2021 by Lucas RichterSign in to Answer
Probability of an audit for a stripper (w-2 employee)
My wife makes over 200k in cash and gifts each year as a stripper. However she only reported 36,000. She is a w-2 employee and reports tips each night. Bank statements show 118k in cash deposits. Will the IRS look at bank accounts and see the variance from what was reported?
Asked Monday, February 22, 2021 by Chung LeeSign in to Answer