Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Does egg donation need to be filed aaa business?
Hello. I was an egg donor last year and I donated twice. The tax preparer said I need to file as a schedule c as if it’s a business in my name. I don’t think that is right as I would have to pay all these business taxes and it’s not a business. I know I have to pay on it but is there another way?
Asked Wednesday, March 29, 2023 by Candace L.Sign in to Answer
Question on whether an investment is foreign
I have an investment in a French company. The shares are held by ComputerShare in Providence Rhode Island. Is this a foreign investment for the purposes of Schedule B line 7a?
Asked Wednesday, March 29, 2023 by Randy S.Sign in to Answer
Taxable income
My wife had a cancer policy. She was diagnosed in 2022. She received a check as payment on the policy. Is it taxable as income?
Asked Wednesday, March 29, 2023 by Donald D.Sign in to Answer
Capital Gain Exclusion on house sale
My husband (then fiance) bought a home 2/17/2017 and sold it 5/6/2020. The profit was $95,000. He paid no capital gains on it since he owned it for more than 2 years. 9/6/20 we got married.We bought a home on 8/7/20. We sold the home 8/16/22. We made a profit of $45,000. Will we have to pay capital gains on the sale of our house?
Asked Wednesday, March 29, 2023 by Lori U.Sign in to Answer
SSD & INVESTMENTS
Wondering if I'm allowed to personally manage my investments without incurring taxes/penalties or negatively effecting my SSD?
Asked Wednesday, March 29, 2023 by Mike Y.Sign in to Answer
Capital Gains taxation
Hello, I sold my home in 4/2021 and rented through 10/22 while I built a new home. I have now been there for a little over 6 months and am looking at selling the home. I need to know if the proceeds from the sale are going to be subject to Capital Gains tax?
Asked Wednesday, March 29, 2023 by Hugh L.Sign in to Answer
Having a child before we are officially common-law
My partner and I moved in together in Feb 2022. My understanding is under Canadian law we wouldn't be considered common-law until Feb 2023; however, we had a child in Nov 2022. Do I put myself as single or common-law on my taxes? When would the 'start date' of our relationship be? If I put myself as single then I am asked if we share custody?
Asked Wednesday, March 29, 2023 by Deborah W.Sign in to Answer
PFIC
I am looking to invest in a foreign corporation set up as REIT which has developed and actively manages a shopping mall and commercial office space for leasing. Is it a PFIC?
Asked Wednesday, March 29, 2023 by Salman S.Sign in to Answer
Debt relief
Not sure if I’m to do taxes on my debt relief this year. They to me to ask you.
Asked Tuesday, March 28, 2023 by Cassandra K.Sign in to Answer
Calculating basis when selling partnership share
I sold my share in a partnership on 12/31/22 (let's call it in Company Z) and have a few questions about my basis. First, does Company Z report my basis to the IRS and does my basis calculation when I file my taxes and report the sale have to match what Company Z reports (if they report)? Second, how would you recommend dealing with this situation: I had a client with my own company (let's call it Company A) who ended up paying fees they owed to Company A, to Company Z. My understanding is Company A will need to report this money as income, and pay tax on it. Which Company A will do. But my question is about how to ensure this increases my basis in Company Z. How can I ensure this is handled properly? Does I, or Company A need to issue any forms/documentation to Company Z (e.g. K-1, 1099, etc.) to 'get credit' for this money that was paid to Company Z (that should have been paid to Company A)? What pitfalls are there with this situation? What records do I need to keep regarding this?
Asked Tuesday, March 28, 2023 by julie b.Sign in to Answer