Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Vehicle Purchase for Business Use
I'm considering purchasing a vehicle for business use. It would also be great for brand marketing purposes once it's wrapped. I'm a single member LLC, that may be moving to S Corp designation. Should I purchase the car in my name or the business name?
Asked Friday, February 17, 2023 by Laurie H.Sign in to Answer
Form 1040SR
May a taxpayer file a joint return using 1040SR if he is over 65, but his spouse is not?
Asked Friday, February 17, 2023 by Bob K.Sign in to Answer
Who claims a vehicle deduction when two parties have vehicle equity
Last year I started an LLC to run a car rental business using Turo. My third vehicle was purchased in cash, however half of that cash was provided by a family member who does not own any equity in my LLC, however she does help me with day to day operations for a small monthly fee. The vehicle was registered under my name. I am confused on whether we can legally split the deduction based on vehicle "equity" or if she can even claim her portion of the vehicle payment on her taxes in schedule C? Ideally we want her to claim all the earnings and entire vehicle purchase, would this be possible if I do not claim either?
Asked Friday, February 17, 2023 by Nick C.Sign in to Answer
Ramifications of Selling 1031 property on Contract for Deed-Missouri
We purchased a mini storage in Oct 2020 with 1031 funds. We are ready to sell, can sell with realtors but were approached by a business man to possibly sell on contract for deed. How does this affect the 1031 sale, do I have to repay the deferred taxes when that contract is initiated or will it stay deferred until paid in full by the buyer? Do I continue to take any depreciation associated with it while on contract or does that stop? Trying to figure out what will take place if sold that way as opposed to just getting it all paid in full when sold.
Asked Thursday, February 16, 2023 by Gary M.Sign in to Answer
Threshold
Ok, so I do business through PayPal and made just around 10k and had 93 recieved transactions for the year of 2022. I called PayPal and they said they only issue forms to those who meet the annual $20k and 200 transactions threshold and that reporting it to the irs is not needed. I have been paying through quarterly vouchers since I do freelance art. Have I been needlessly paying? Do I need to report my income? What do I do?
Asked Thursday, February 16, 2023 by Jared W.Sign in to Answer
Tax Form W-4P
My husband needs to fill out the W-4P for an annuity he will be receiving monthly. We file jointly; he is retired and I'm still working. How do we fill that out so he doesn't get taxed as a single?
Asked Thursday, February 16, 2023 by Michele T.Sign in to Answer
tax obligations for foreign owners of US LLCs
What are the tax obligations for foreign owners of US LLCs selling print-on-demand products to customers in the US threw Etsy, and do they need to pay taxes in both the US and their home country? As far i know, i have to fill both Forms 1120 and 5472, but i am not sure whether i am considered " engaged in US business ", therefore I'm not sure to who i should pay taxes to, US or my home country ( Portugal ), my country has a tax treatment with the US to avoid double taxination.
Asked Thursday, February 16, 2023 by Diogo R.Sign in to Answer
EI Clawback
Hi, in Canada I have to repay my EI for 2022, does this lower my overall income in the 2022 tax year, or the 2023 tax year or am I still liable for paying taxes on money I had to pay back?
Asked Thursday, February 16, 2023 by Colton S.Sign in to Answer
Filing
I'm retired collected 11280.00 social security no taxes withheld do I have to file
Asked Thursday, February 16, 2023 by Carla F.Sign in to Answer
Estate Taxes
My mom passed with an regular IRA and an IRA annuity, with the beneficiary listed as her estate for both. Lawyers, who setup mom’s will and had all of her asset information before she passed, advised us to distribute all funds to the estate account, which was used to pay remaining debt and then distributed to the estate beneficiaries. We then filed taxes for the estate (1041 form) and ourselves working with the CPA at the law firm, with each of the estate beneficiaries paying income taxes on the money that was received from the distributions. The amount in the estate account was under $750,000 and the lawyers advised that we wouldn’t have to pay federal estate tax because it was less than the exemption amount. Fast forward to 2023 (tax year referenced was 2021), and we receive a notice from the IRS that the estate owes over $200,000 in taxes stating there was an error in the 1041 form that was completed by our CPA. We’re working with them now, but trying to understand if there will be taxes due on any of the assets.
Asked Thursday, February 16, 2023 by Maggie S.Sign in to Answer