Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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My taxes never showed up at my bank
Yes my taxes were supposed to be accredited to my direct deposit at my bank but my bank never received it I don't know what to do.
Asked Sunday, March 05, 2023 by Brenda S.Sign in to Answer
Can i claim my child if i collect ssdi
I am a west Virginian citizen. I collect a ssdi check am I capable to claim my child on my income taxes
Asked Sunday, March 05, 2023 by William T.Sign in to Answer
Depreciation on live/work building
Hello - we bought a live/work building in 2020. It’s a dance studio with a tiny apartment. For 2020 and 2021, we depreciated the building as 75% commercial dance studio and 25% residential rental property, as I paid rent to our company to live in the apartment. Starting in June 2022, I am no longer paying rent to the company in exchange for handling our rental business. I am not sure how to handle this in terms of a depreciation schedule starting June 2022. Do I need to dispose of the rental property asset, and place a new asset into derive, in order to claim depreciation on all 12 months for the apartment portion?
Asked Sunday, March 05, 2023 by Magan W.Sign in to Answer
Form 4562 required?
I own a travel trailer camper that I use for my carpentry business more than 50% of the time. I have always documented my depreciation on Form 4562, part v, line 26 for listed property. I opted to use a straight line half year depreciation over a five-year depreciation period. It’s a 2015 model that I bought new for personal use in 2015 and put the camper in service for business use in 2018. Recently I engaged a CPA to review and electronically file my belated 2020 tax return for me. I had already filled out the forms which I provided to her. I am a super neurotic engineer, so I don’t think she found any math errors on my forms. The first draft of my return that she provided as ‘ready for filing’ contained nine corrections that I identified, five of which were careless errors on her part, and two of which were incorrect assumptions she made without asking me to clarify. I lost a lot of faith in her based on all the careless errors because she did not backcheck what her software output compared to my forms. After she made the corrections, the second version did not include form 4562. I asked about it, and she said it’s not necessary. I stated that I believe my camper is listed property as it lends itself to recreational use and in fact, I do use it some recreationally. She said it has to do with the depreciation method that since we’re not taking accelerated depreciation form 4562 is not required. I am skeptical. Please advise.
Asked Sunday, March 05, 2023 by Darin S.Sign in to Answer
Can I claim my spouse if they are not a Canadian resident?
My husband currently has his application in for permanent residence but is not officially a Canadian resident, nor does he have a SIN. He is a US citizen. Can I still claim him as a spousal dependent since he is unable to work in Canada and I am financially supporting him? He has been living with me for all of 2022 and has not earned any income for that year.
Asked Sunday, March 05, 2023 by Chelsea M.Sign in to Answer
Profit sharing, salaries, and draws
We are a 2 person 50/50 split S-corp. We take relatively low salaries ($70K) and draws over $200K. We would like to offer an employee profit sharing of 5%. However, with our salaries so low, the profit is skewed. If we were to increase our salaries to $200K and make our draws $70K (that becomes the profit), what would the tax implications be? I believe we would pay more in taxes up front for anything below $147K but would that be offset by lower draws. Also that would mean much lower profit payments that would also offset our higher payroll taxes. Thank you for your help.
Asked Saturday, March 04, 2023 by Sid P.Sign in to Answer
Is 1099 NEC taxable?
Received a 1099 NEC from my realtor for giving me a portion of his commission. He says it's not taxable. A CPA told me it is taxable Is this true?
Asked Saturday, March 04, 2023 by Ron C.Sign in to Answer
Nonresidential or Partial-Year?
I lived in Maryland the entirety of 2022, but I had lived in Pennsylvania previously. My employer did not complete everything for the transfer in time, so on my W2 I have PA and MD income. I was confused as whether to put a nonresidential income, since I did not live in PA, or a partial-year resident, since according to the W2, I "lived" in PA.
Asked Saturday, March 04, 2023 by Josh H.Sign in to Answer
Bad Debt Qualified Deduction?
Hello, I sold a business as owner financed which then went sideways after 6 months or so due to inactivity. The buyer admitted he was at fault, couldn't repay under any reasonable circumstance, and I received the business back. The business has clearly lost valuation, though still profitable. The remaining debt could be reasonably estimated at 80k after factoring their payments and the lowered business valuation upon return. All equipment/inventory was fully deducted long prior to the sale. I don't know if the entire remaining balance of the payment terms would be considered bad debt, or if only the months he did not pay prior to defaulting? Perhaps the lost valuation is considered bad debt? I think this situation is slightly uncommon, so I haven't been able figure this out on my own. Thank you
Asked Saturday, March 04, 2023 by Spencer M.Sign in to Answer
1099c
I got this from from bank and there no way I can pay back 24 389.93 back what should I do
Asked Saturday, March 04, 2023 by Allison W.Sign in to Answer