Unanswered Tax Questions

CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?

View All Tax Questions

Family Issues

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

Investment and Finance

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

Miscellaneous

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

Small Business

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

Personal Taxes

How do inherited IRAs and non-qualified accounts get taxed

I have inherited several accounts from my mother's estate. There are some that are listed as IRAs and some listed as non-qualified accounts. I am wondering how these accounts will be taxed when I withdraw the money from them. How is the percentage to be withheld determined? Is it a fixed inheritance percentage? Is it determined by my most recent filing's tax bracket (AGI)? Are both state and federal taxes in play for these (I live in Massachusetts)? Will any of these count as income for my household when we next file taxes? thank you for any info

Asked Tuesday, March 28, 2023 by Joseph B.
Sign in to Answer

Tax Forms

Box 14c on K-1 (Form 1065)

Does the amount listed in box 14C of the K-1 on Form 1065 impact the tax I will owe? Or do I only owe on what is in box 14A? (Assuming I'm not using the nonfarm option method - which I'm not 100% sure I understand, but it seems like it's a very narrow criteria and wouldn't apply to most people). This is a business I was actively involved in but have subsequently sold my partnership share (on 12/31/22).

Asked Tuesday, March 28, 2023 by julie b.
Sign in to Answer

Deductions and Write-Offs

Sold land for a loss - capital loss carryover

Bought property 01/09/06 for $20000 Sold property 08/15/22 for $19000 Last tax year, accountant had a capital loss carryover of -$87. What forms and amounts do I need to know for this years taxes.

Asked Tuesday, March 28, 2023 by Frank S.
Sign in to Answer

Personal Taxes

Claiming one on w4

If I claim one on my w4 that is not a child are more taxes taken out or less?

Asked Tuesday, March 28, 2023 by Alexa L.
Sign in to Answer

Personal Taxes

Why double taxes?

Working remote for a NYC company but I live in the Bronx. I'm being taxed for Bronx County & NY, why?

Asked Tuesday, March 28, 2023 by Princess G.
Sign in to Answer

Tax Forms

Can I list an investment property as an asset before it has a tenant in it?

Can an investment property be added to my taxes to deduct mortgage, interest and depreciation before in service? Can we deduct that asset on our taxes before it has a tenant? Also- if not- are we able to at least list that asset on our taxes? Can I list an investment property as an asset before it has a tenant in it?

Asked Tuesday, March 28, 2023 by Sommer W.
Sign in to Answer