User Submitted Tax Questions
Read Questions Asked by Users and the Answers Provided by CPAs.
View All Tax QuestionsTaxes on the sell of a rental home
I was awarded a rental home in my divorce. It’s a home my ex husband and I rented. The home was in his name. We didn’t change it because I was selling it and I was just going to give him money to pay the taxes on the profit. I sold the home for 72,000, paid off the home loan of 17,000 and spent about 20,000 in remodeling before it sold. My ex just completed his taxes 1.5 years late and stated that I owe him 8800$ in taxes. He wants me to pay his entire tax bill because he said this rental income from the sell adjusted his taxes. I was thinking I would just need to pay the taxes on the money and not all of his tax bill. I’ve asked for the documentation from him but still have not received it. Would the income from the sell adjust his taxes? I had a lawyer guess about how much the taxes would be and he said around 4000$. 8800 dollars just seems high for that amount of money.
Asked onWednesday, March 15, 2023 by CandaceCPAs - Sign in to Answer
Independent Contractor
Good Morning! I am set to begin a second part time job for an individual....not a business.....regular person.....they stated they will be using Venmo to pay each week. My total for 2023 should be 8000-9000.00 and I do have a full time job with an employer....my question is: if I'm paid through Venmo, will they report that income to the IRS at the end of the year. I'm getting conflicting info online regarding when the limit will go from 20,000 to 600.00 and when that will officially be put in place. Many thanks
Asked onWednesday, March 15, 2023 by MitchellCPAs - Sign in to Answer
Capital gains tax
I am a single filer and selling my primary residence. After all of the capital improvement basis figurings and allowable $250K exclusion for my filing status, I will expect to clear about $250K in long term capital gains. I would like a tax professional to confirm that as a single filer with a taxable income less than $41,000, that my tax rate on long term capital gains is 0% (per IRS guidelines for 2023). Have I understood the IRS guidelines correctly? Will I owe no tax on the $250K capital gain? Many thanks.
Asked onWednesday, March 15, 2023 by RichardCPAs - Sign in to Answer
How does the IRS report the sale of an inherited property?
I inherited a house and lot jointly with a sibling which we then sold. How will the IRS report our income from this sale? We sold the property at or below the appraised value and split the proceeds. Our portion was 75,000.00. I was wondering about the tax implications.
Asked onWednesday, March 15, 2023 by TraceyCPAs - Sign in to Answer
Reducing Payroll Taxes for an Anticipated Credit
I know that I will be eligible for the maximum ($2,500) American Opportunity Credit in 2023. May I reduce the amount of Federal income tax withheld from my paycheck accordingly? If so, how should I indicate this on my form W4? Thanks for your advice.
Asked onWednesday, March 15, 2023 by StevenCPAs - Sign in to Answer
Eic taken for student loan 15 years ago before loan forgiveness act
Eic was taken for student loan before loan forgiveness act
Asked onWednesday, March 15, 2023 by JulieCPAs - Sign in to Answer
Necessary Tax Forms for LLC
As a new multi member LLC, we are wondering what tax forms are needed to be submitted? Do we need to submit quarterly or yearly, or a combination of both?
Asked onWednesday, March 15, 2023 by QuynhCPAs - Sign in to Answer
Crypto tax question
Hello, I have a question. If I made money via crypto currency that I received via providing a service do I only need to calculate the amount I withdrew since I technically didn't purchase any at any price. Thank you.
Asked onWednesday, March 15, 2023 by DevinCPAs - Sign in to Answer
Rental Property Deductions
In 2022 had a $30,000 bill preparing a house for rent. Put the repaired property on the rental market in September 2022 but it only rented in February 2023. Can I deduct the $30,000 off my 2022 taxes?
Asked onTuesday, March 14, 2023 by RichardCPAs - Sign in to Answer
Colorado deduction limit for gambling income
Apparently there is a new law in 2022 in Colorado that limits the amount you can deduct. Does this affect my gambling income? I have 5 figure net profit from sportsbook gambling, but that comes from a substantial amount of bets won and lost. Let's say of all the best I placed, the ones I won total $1M and the ones I lost total $950K, for a net profit of $50K. Because I deduct the $950K on my federal taxes, am I supposed to do the same thing on my CO state taxes, which supposed now limit ductions to $30K/$60K for single/jointly? The tax preparer I am using doesn't seem to know the answer. Is the state of Colorado really going to tax me on most of the $1M and not let me deduct the $950K in bets that I lost?
Asked onTuesday, March 14, 2023 by TedCPAs - Sign in to Answer