Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Inherited money
My brother passed away and left me the house. I sold the house at no capital gains. The check is in my bank account. I was told that inheritance is not taxable in Texas. But how do I show the IRS that this money was inherited? Not to be confused with the money that I had in my checking account.
Asked Wednesday, April 26, 2023 by Patricia V.Sign in to Answer
Market discount on t-note that matures next year
If I buy a t-note in 2023 at a market discount (coupon .5% vs. yield to maturity 4.5%) that matures in 2024, how is the market discount reported on my 1099? Is the total discount reported in 2024 upon maturity, or is it amortized with income reported in both 2023 and 2024? Is this interest income or capital gain? I understand the coupon payments are interest income the year I get them.
Asked Wednesday, April 26, 2023 by Steve S.Sign in to Answer
Gifting money to adult children
If you take money out of an IRA can you use the distribution given to yourself to gift cash to your children? If so, who is responsible for the taxes?
Asked Tuesday, April 25, 2023 by Tracy C.Sign in to Answer
Question about W4
I’m getting ready to fill out a new W4. I want the least amount of taxes taken out without owing at the end of the year. Step 2. Which do I choose. My wife and I both work so 2 jobs. I make $180,000 a year, she makes $40,000. I read somewhere where since our salaries are far apart it could affect how much taxes is deducted each paycheck of mine. So how do I need to fill out the W4 so I have the bare minimum of taxes taken out without owing any or much at the end of the year?
Asked Tuesday, April 25, 2023 by David M.Sign in to Answer
Divorce settlement amount
Divorce settlement amount paid to ex spouse from your community money impact on your tax returns ? This amount is in my personal account.
Asked Tuesday, April 25, 2023 by Osama M.Sign in to Answer
FATCA
Hello, I am planning to register my business in the USA to accept credit card payments as that is not an option here in the Caribbean. I am a non-resident and I am not a US citizen. I have no issue paying business taxes because the business is registered there, would setting up a limited liability company in the US result in me as an individual having to pay taxes in the US? also would I have to comply with FATCA legislation on the sharing of personal financial information? If these are not requirements then I will proceed with registering. I look forward to hearing from you soon. Best regards, Nicolette
Asked Tuesday, April 25, 2023 by Nicolette L.Sign in to Answer
Nonprofit will not reimburse me
Hello, I work for a nonprofit, a school, and recently went on an international trip on their behalf. I had to pay some things cash, such as taxi rides and food at fruit stands. I don't have any receipts for these items, but can provide written documentation for their records. They are refusing this and saying if I have no actual receipts, it's not reimbursable. This was purely a business trip and I couldn't get receipts from the taxi drivers. How do I handle this?
Asked Tuesday, April 25, 2023 by Anais A.Sign in to Answer
EIN Question
I had a Sole Proprietor EIN. I recently made an LLC, do I need to make a new EIN?
Asked Monday, April 24, 2023 by Nick H.Sign in to Answer
what constitutes gross income
Is a monthly withdrawal from a money market account to supplement Social Security considered gross income when calculating gross income for taxation purposes?
Asked Monday, April 24, 2023 by Ann R.Sign in to Answer
California Disater Relief for 1031 Real Estate Exchange
I live in TN and I am in escrow on a investment property in Orange county CA. I am doing a 1031 Exchange and am trying to figure out if I qualify for one of the extension from the IRS due to the floods. I know the county is listed in a disaster county just do not know if I qualify, not sure if the rental is consider a business if I am considered a affect or non affected person.
Asked Monday, April 24, 2023 by Vanessa B.Sign in to Answer