Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Cap Gains distribution > change in income!?!
Is this right??? Say I get $100 capital gains distribution; then my taxable income increases more than $100... it increases by $185?! 1. First impact is $100 taxed as ordinary dividends. 2. Second impact is $85 increase in Social Security Benefits being taxable. So $100 in capital gains distribution creates $185 increase in taxable income? I've gotta be missing something here?!?
Asked Friday, April 07, 2023 by Donald B.Sign in to Answer
Can I take the home office deduction if my LLC is registered to a "Digital Mailbox" service with a "Real Physical Street Address" for privacy?
Greetings, I have registered my LLC using my home address as principal office and understand that many choose instead to register their businesses using an address provided by a physical address mailbox service (like iPostal1 or a UPS Business Mailbox) in those situations where they wish for better privacy but renting a full-sized commercial office might not yet be economically viable. I wish to switch from having my home address publicly associated with my business in this exact same manner, but want to know: Is there still a way by which I can continue to take a home-office deduction if I still continue to do the bulk of all of my business operations from my home office while using the mailbox physical address as my new "Principal Address" of the LLC? Or is this going to have to be a decision of choosing privacy and professionalism over the ability to take a significant small business deduction on offer? Thanks kindly for any knowledge you can share on this issue-
Asked Friday, April 07, 2023 by Blake B.Sign in to Answer
Logging COG's & Sales
Do I have to itemize every specific item for COGS and Sales with my small business Sole Proprietorship? I've been grouping in lots (By day or transaction) and logging them into my google sheets. They are low cost items that all are unique. Is this an acceptable way to document for taxes? Thank you!
Asked Friday, April 07, 2023 by Tony Y.Sign in to Answer
Refund
My refund has taken longer then 21 days and no refund what do I do?
Asked Friday, April 07, 2023 by Sherron F.Sign in to Answer
Can I still file for current tax year?
I'm currently trying to verify my identity for my 2021 tax return. I'm also trying to do my current year's tax return to receive my refund. So my question is am I able to still file for 2022 and able to receive the refund while still awaiting to to verify my identity or will it freeze the money until I clear up the issue?
Asked Friday, April 07, 2023 by Armoni B.Sign in to Answer
Need to rent out of state apartment for business
I currently have a digital media company based out of my home in NY. Two of clients are located in NY and the other is in Washington DC. I recently have been hired to work on a special project in Washington DC for one year. I found an apartment in Delaware which is the middle ground for both my clients. The rent for the apartment is $3,300 per month. Would I be able to write any of that rent and utilities off as a tax deduction?
Asked Friday, April 07, 2023 by Tammy P.Sign in to Answer
Will my accountant know I filed with someone else?
Most of my income is from contract work. I met with my accountant and gave him my paperwork. He called to tell me I owe over $10,000 more, on top of what I paid quarterly. I have to put $15,000 into an IRA to keep from owing more than the $10,000. I feel that I should have more deductions than what he told me about. At this point, I’d like a second opinion, but my second opinion will result in me filing late. So, my question is… will my accountant know I filed with someone else and can I file for an extension?
Asked Friday, April 07, 2023 by Dawn L.Sign in to Answer
Used ADP to get paid (Im a single member LLC)
Hi, I used ADP to pay myself. Adp sent me a W2 form for 2022 year. I was trying to make things simple but after visiting a tax specialist they said I made a mistake using adp and didnt need a W2. One big issue that needs to be fixed is the (STATE INCOME TAX) section. Basically how it was explained to me was that the amount needs to go somewhere but its got no where to go. I called ADP to ask them what they can do to help me fix this and they said that they need to know from an accountant of where to transfer that money. Initially my thought was that I would use adp to get paid with deductions already so that at the end of the year I would simple. I didnt think I would pay myself more than 10k, 15k. The other money that was made I was going to invest into my business. -Karina
Asked Thursday, April 06, 2023 by Karina M.Sign in to Answer
Combined households
My in-laws and my family sold two homes in TN and moved into one home here. How do I need to go about not being taxed on the amount of the home sale? $10, 000 went into the move and $60,000 was paid to my Father in-law for the down payment of our new home.
Asked Thursday, April 06, 2023 by James W.Sign in to Answer
Taxes on pension
No income except for small pension and ssi Do I pay taxes on my pension
Asked Thursday, April 06, 2023 by Mary W.Sign in to Answer