Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax QuestionsConcerning passing ownership small business to son and then son directly selling the business
Asked onSunday, June 30, 2024 by ThomSo 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.
Minimizing Tax in Gift/Transfer and Sale of a Gifted Home
Asked onFriday, June 28, 2024 by BryleyMy 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.
square taxes paid to gig employees
Asked onWednesday, June 19, 2024 by JeannetteI 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
IRA tax
Asked onWednesday, May 29, 2024 by PeterI 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?
Which corporate taxes I should pay with ITIN?
Asked onSaturday, May 25, 2024 by KirillI 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?
how to file my taxes
Asked onSaturday, May 18, 2024 by SophieHello, 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
PROFORMA
Asked onFriday, May 17, 2024 by tamekkaI am in the process of getting my allied health training facility approved by by by the dept of higher education but they are requesting that submit a proforma in order to finalize the application.
Should I File For C-Corp Tax Status?
Asked onFriday, May 10, 2024 by JasonHi there, I formed a multi-member LLC with 2 Canadians and myself. Since they are not residents of the US, we can't file for s-corp status. Do you know if there's any benefit from a tax perspective to change our tax classification to c-corp status? Do you recommend this? Instead of an LLC, should we have filed for a c-corp as an entity from the beginning? To give you some context, we are a dropshipping/online retail business. Any perspective would be helpful. Thank you for any recommendation that you might have. Jason
Tax ID Timing for a CRUT
Asked onMonday, April 01, 2024 by JoelMy wife and I formed a charitable remainder trust in 2023 and contributed property to it. However, we did not apply for an IRS tax ID for the trust until April 2024. Can we still deduct the contribution on 2023 tax return so long as the tax ID is received prior to filing of the 2023 return?
Scholarship refund taxed?
Asked onThursday, March 21, 2024 by RudhaI received a $10,000 scholarship from a third party that was sent directly to my university. Because I already have full ride, the money wasn't applied to my tuition and my school sent me the $10,000. I cannot uphold the conditions to the third party scholarship anymore so I returned the $10,000 back to the third party. When I receive my T-1098 later this year, it will state my school refunded me $10,000 which is technically income. However, I returned the money and therefore did not make any income off of it so will I need to pay taxes on it?