Unanswered Tax Questions

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Tax Forms

Form 7205: Energy Efficient Commercial Buildings Deduction - can a renter qualify to file, or only a building owner?

We are a retail bookshop that RENTS our space from our landlord. Last year, we spent $30,000 installing new LED lights and a new HVAC system to replace old, energy inefficient equipment. Can a renter qualify to file form 7205, or only a building owner? The form instructions say only the owner and the designer qualify. But IRS Notice 2006-52 includes the word "lessee". If we don't qualify for this credit, is there any other credit available for us?

Asked Wednesday, February 14, 2024 by Anaya G.
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Tax Filing Tips

Filing an S-corp that never filed

I recently acquired an s-corp that never filed an 1120s or initial election. The company started in Nov of 2019, so it’s beyond the 3yr 75 day mark. Is there a way that I can file without being penalized?

Asked Wednesday, February 14, 2024 by Shane R.
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Tax Filing Tips

1099 nec deductibles

I love your content!!!! I was wondering if I could possibly ask you a question ? I won a settlement of 40k last year the company that payed that settlement payed me $19500 as 1099 nec independent contractor and $6500 a w2 and $14000 for my lawyer fees. Can I deduct my lawyer fees on my 1099 as an expense ?

Asked Wednesday, February 14, 2024 by Flavio L.
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Small Business

What type of business should I establish for my new venture?

I am looking to become a home inspector. Many home inspectors are Sole Proprietors, but are encouraged to form LLCs to protect themselves personally. I have a desire to work with another local inspector who has an already established business, but I want to be able to write off my own expenses, and I assume working as a w-2 employee for them will not allow that. My wife is a disabled military veteran, and we considered forming a business together for the military owned designation benefits. I will have to have my own general liability insurance and Errors & Omissions insurance. If i were to form an LLC with my wife, will we be seen as one individual, and can the other company just hire me as a subcontractor?

Asked Wednesday, February 14, 2024 by Cody W.
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Small Business

Own

I have a Texas license because I have Texas address and home there . I own my business in Georgia that where I work at and also I have house too . Where will I file my company taxes for this year ? Will it be Georgia or file ? Because I received in the mail the tax form for my new house I purchased in Texas but the house is in my name only. I have spouse who lives in Georgia that she don’t live at that house at all and I have 3 dependents that lives in Georgia that I take care of .

Asked Wednesday, February 14, 2024 by Eddie C.
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Deductions and Write-Offs

charitable contributions

I see that charitable deductions do not have to be itemized it it is under 250 dollars. How many charitable deductions can I deduct and for a total of?

Asked Monday, February 12, 2024 by Richard C.
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Personal Taxes

What are the tax implications for two brothers who sell land they own together?

My husband was given 11 acres of land by his deceased aunt many years ago. Several years before we married, he added his brother to the deed to insure it would remain in the family. After we married, we have paid the property tax on the property for the last twenty years. The two brothers have now decided to sell the land. The question is what do we have to report in income and who must report it? For inherited properties, do you take the value it sold for minus the value when it was when it was inherited, and if so, how do you determine that value from many years ago? Also, do the brothers pay the tax upfront and then split the proceeds, or split the money and each report their half as income?

Asked Sunday, February 11, 2024 by Donna Gold H.
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Miscellaneous

Incorrect 1099

How do I handle an incorrect 1099 that the issuer admits is incorrect but refuses to reissue?

Asked Saturday, February 10, 2024 by Robert W.
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Miscellaneous

Sales Tax Payable

What are the required documents and steps to reconcile sales tax payable?

Asked Saturday, February 10, 2024 by Dee H.
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Nonresident Tax Issues

Foreign Owned LLC Now Active after 5 Dormant Years, Need to file NIL Income Taxes

I have a single member LLC created in 2019. I am in good standing at the state level, but have never filed taxes Federally with the IRS. I have had NO business income during this time. My company will finally be active this year, and I need to get my house in order. What should I do? **Note my LLC is foreign owned - I am a Canadian citizen and resident who does business in the US and MIGHT relocate officially in the next 3 to 4 years.

Asked Friday, February 09, 2024 by Jared A.
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