Unanswered Tax Questions

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Deductions and Write-Offs

Travel Agent Commission on Personal Travel

I have a side business as a travel agent. I book personal travel for myself that I earn commission and am 1099’d on. Can I rebate the commission back to myself and deduct it from my 1099 income. For instance I book a $100 hotel room and earn 10% commission if $10 that would add to my yearly 1099-Misc. can I deduct that $10 and rebate myself since I paid $100 out of pocket to “make” that $10?

Asked Thursday, April 06, 2023 by Christopher G.
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Deductions and Write-Offs

Can you deduct miles going from your home office to volunteer work

I am volunteering for a nonprofit and is it possible to deduct miles going from home to volunteer work under Charitable Miles/Gifts to Charity? If not, what are some exceptions?

Asked Thursday, April 06, 2023 by Jonathan N.
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Family Issues

Does my fulltime live at home college son have to file income taxes?

Our son worked part time and earned only $5800 while going to college. We claimed him on our income tax returns since he lived at home. Does he have to file income taxes in California?

Asked Wednesday, April 05, 2023 by Steve D.
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Personal Taxes

How to file 1041 for Grantor Trust with 1009 R

First year filing Form 1041. Received 1099R from Fidelity to the Trust (Grantor) which shows my Soc Sec # as recipient. Do I list proceeds as Other Income (line 8), show the distribution deduction on Schedule B, then issue K-1 to myself, or leave Form 1041 blank after top part and just include a copy of the 1099R - I think I saw that in the instructions. (When I file my 1040 electronically, IRS will be looking for the 1099R and the K-1 might confuse the system.) Thank you for your help!

Asked Wednesday, April 05, 2023 by Margaret K.
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Personal Taxes

2020 California unemployment paid in 2022

What year do I report this in

Asked Wednesday, April 05, 2023 by Kirk L.
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Home Ownership

Will there be tax on a down payment that has to be made with a gift letter.

My partner & I have lived together for over 10 years and have two kids, but we are not married. Her father recently passed away and left her a large sum of money. We are buying a $600,000 home. I'm taking out a loan for $170,000 and she will put down $430,000 to pay for the rest. In order to take out the loan the bank says she needs to sign over a gift leader because she can't be on the loan. My questions is "will we be taxed on the $430,000 at the because its labeled as a gift?" We have heard conflicting advice.

Asked Wednesday, April 05, 2023 by William B.
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Personal Taxes

Homestead house for sale

The profit of the house we are living might overpass the maximum tax exemption profit gain of $500,000. What's the best way to lower tax rate? Or if any repair expense on the house will deduct the profit gain?

Asked Wednesday, April 05, 2023 by Fang L.
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Personal Taxes

Lawsuit Settlement

Hello! I will be receiving a $10k settlement for punitive damages and emotional distress. I know these settlements are fully taxable, including the contingent fee portion that goes to my attorney (a whopping 45%!). However, my attorney recently told me that she will receive a $10k 1099 from the defendant and I will receive a $10k 1099 as well. In addition, she will 1099 me for the portion she pays me out of her $10k, so another 1099 for $5,500. Meanwhile, I received only $5,500. First, is this even correct and second, how do I offset this on my taxes? She said talk to a CPA. I am freaking out. Please help. Thank you!

Asked Wednesday, April 05, 2023 by Lindsay M.
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Personal Taxes

Should Ebay Sales Be Taxed

I am currently selling off many old items that we have own for years. I will definitely got above the $600 threshold for a 1099-K form. However I am using this as more of an online garage sale as of right now. None of the items I am selling were bought to make a profit on. Would I need to pay quarterly/yearly taxes on the sales? One caveat is that in the future, not this year most likely, I intend on reselling items. However that is not what I am doing now.

Asked Wednesday, April 05, 2023 by Eddie D.
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Tax Forms

Net Operating Loss

In 2021 I filed my taxes for the year of 2020 and had a business loss of 20,000, it's recorded on line 31 of my schedule C for that year In 2021 I didn't make any money Now i'm filing my taxes for 2022, and I made some money, can I bring that negative 20,000 as a NOL to reduce my schedule C profit?

Asked Wednesday, April 05, 2023 by Maurice L.
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