Unanswered Tax Questions

Miscellaneous

Do I need to pay taxes on a Nonjudicial Settlement Agreement?

Hi, Hi, I am going through a nonjudicial settlement agreement, and I would like to know if I would have to pay any tax on the amount I receive before signing the agreement.

Miscellaneous

What forms to file for the year 2020

My daughter is a beneficiary of a granters trust and she did not receive any distributions from the trust and she has her own income for 2020. What tax forms she needs to file? I under stand that the reply to my question is free.Thank you

Business Formation

Free tax advice

Small Business

Tax Prep Validation : Form 1125-A

Hello - Thank you for your guidance validating details of a Return for my small retail business. Our CPA recently completed our 2022 Return (Accrual accounting) and Form 1125-A (Cost of Goods Sold) showed a value on line 8 of -$36457. A negative COGS value suggests an issue somewhere. In the end, we found that line 2 of Form 1125-A was completed using the COGS value from our year end P&L Report. Changing line 2 to the value of total expenses paid for goods (not just the sold goods) resolved the negative COGS value and reduced our income liability by $92k. My question is about line 2 on Form 1125-A. Was it an error to complete this line using the already calculated COGS value from our year end P&L Report? I think I know the answer but our CPA is standing his ground and we need a second opinion. Thank you for your prompt reply!

Miscellaneous

State tax owed

I am filing for 2020 and 2021. I did not have unemployment hold taxes for 2020. I did for 2021. I’m getting most of what I paid for 2021 back, but I owe the state for 2020 even with a dependent? Does this sound right?

Deductions and Write-Offs

Deduction.

I bought a truck and I'm leasing it to a company.. How do I give them they write-off?

Personal Taxes

Losses from Pass through partnership on K-1

I am a limited partner of a pass through partnership and received a K-1 with a business income loss of approximately 37,000 in box 1. I am able to deduct this loss in full against ordinary W-2 income? Also, I have a loss, wages and unadjusted basis of assets in box 20 with code Z. How do I determine QBI, if any applies? I appreciate any help you can provide. Thank you.

Personal Taxes

Settlement in Lawsuit

My husband got a small settlement from a lawsuit (not his own, it was another employee at his company who filed against the company), and he got a photocopy of a W2 for it. (The amount on the W2 in the "Wages" box is less than what he won). My question is do we include it in BOTH federal and state tax returns, is there any special box on the forms it must go in, and do we include the photocopy of the W2 in with the return (he only has one copy for the Federal, does he need another one for the state)? Please answer this ASAP and send it to my email or text it. Thanks in advance! Yours truly, Denise Mayosky

Small Business

What to include in an invoice

Hi, I'm an artist and I've been contacted by a major company to do a project. They are requesting my bank info to send the money and want me to send an invoice to them as well. The issue is, while I have an LLC I don't have an EIN or separate business bank account. Should I just draft an invoice using my personal info? Or should I include my LLC name but still have it routed to my personal account?

Deductions and Write-Offs

Handicapped Wheelchair Van deduction

I purchased a used handicap rear entry van for my spouse who is incapable of walking. I paid $7500 for the van. Average cost for the same van for regular use is $3300. Can I deduct the difference in pricing, ($4200) because of the conversion to accept a wheelchair? Even though van is used? I know the difference can be deducted for the conversion for the cost above the regular price of the van when new….but this is a used vehicle. Thank you