User Submitted Tax Questions
Read Questions Asked by Users and the Answers Provided by CPAs.
View All Tax QuestionsWould too much vacation pay on a paycheque cost you more tax?
My work recently accidentally paid me out all my vacation pay which I didn’t request. I ended up with a 3,000 pay when I usually receive about 1400 before tax. My paycheque reflects that I paid over 800 in tax. I panicked as this is all my vacation for the 3 weeks I have booked off for my wedding but my team says there is nothing that they can do about it. My plan was to use that money when I wasn’t working which I would pay my usual tax on. They say tax is tax and it would work out to be the same but because this pay is higher and I’m in a new tax bracket I think I am paying more. Am I in the wrong?
Asked onWednesday, February 22, 2023 by LoriCPAs - Sign in to Answer
Capital Gains on home gifted through bargain and sale deed
My parents bought our home in Oregon for cash in 2017. My husband and I have lived in it continuously since then, and in December 2021 my parents transferred the home into our names via a Bargain Sale and Deed, for $0. If we were to move prior to December 2023 would we still be paying capital gains tax on the profit, since we had not owned the home for at least 2 years, although we have lived in the home for 6 years?
Asked onTuesday, February 21, 2023 by EvaCPAs - Sign in to Answer
Sale of business asset with a Sec 754 step up in basis
What is the correct way to report the sale of a business asset that has a section 754 step up in basis on a partnership information return? A building and land were sold. Building With step up. W/o step up Sale Price: 380,000. 380,000 Cost: 581,175. 482,902 Depreciation: 460,008. 438,355 Adjusted Basis: 121,167. 44,547 Gain: 258,833. 335,453 Land. With step up. W/o step up Purchase Price : 95,000. 95,000 Cost. 117,000. 97,000 Loss. (23,000). (2,000) The total step up was 120,090. 20,170 had been depreciated. Do you report the loss of 99,920 as a separate item on that partner’s k1? For example: Gain on sale: 130,000, Loss on step up: 99,920 OR does the partnership make this calculations and report your Gain on Sale as 30,080 on the k1? I apologize if I’m not asking the question clearly.
Asked onTuesday, February 21, 2023 by MollyCPAs - Sign in to Answer
Is Form 706 (my father passed away) necessary in order to get a stepped up basis
My CPA insists that my family needs to file a Form 706 in order to use a stepped-up basis for houses that we inherited (via Transfer-on-Death deeds). Is this true? Or can I just get a licensed appraiser to get the appraised value of the homes at the date of death?
Asked onTuesday, February 21, 2023 by JimmyCPAs - Sign in to Answer
Deductions
If I know I have less than standard deduction, should I itemize?
Asked onTuesday, February 21, 2023 by CeliaCPAs - Sign in to Answer
Firpta
Iam am a buyer I? A house an the seller is from Canada an wants me to do firpta. Should i?
Asked onTuesday, February 21, 2023 by JoeCPAs - Sign in to Answer
Home Sale Gain Exclusion Situation
My wife and I recently got married and we moved into a rental house. We both owned houses and lived in them separately before we got married. Now we are looking to sell them. I pass the home sale gain exclusion criteria for the house I owned and my wife passes the criteria for the house she owned. Based on my understanding, we can sell both houses in the same year and each house can exclude a gain up to $250k (filing jointly). Neither house would be eligible for the $500k joint exclusion because I never lived in her house and she never lived in mine. Is this correct? Thank you.
Asked onTuesday, February 21, 2023 by EricCPAs - Sign in to Answer
Do I need to file taxes
I am on SS and only make $2309.00/month. I sold Stock and made 1,423.95, in 2022. Do I have to file taxes on this amount?
Asked onTuesday, February 21, 2023 by AnnaCPAs - Sign in to Answer
Early IRA distribution
I only worked part of the year, my salary was low, only $22,000 so I took from my IRA. When I did my taxes on a paper 1040 I owed $850 but online they are saying I owe $2100 with a penalty. On the paper form it doesn't say anything about a penalty? Thanks
Asked onTuesday, February 21, 2023 by KrisCPAs - Sign in to Answer
Car lease or no lease
We are thinking of leasing a company truck. The lease payment will be 850 . Is there a maximum dollar amount I can write off each month? Or is it based on the percentage you use the truck for work? Is it a good idea to lease a car for your work.
Asked onTuesday, February 21, 2023 by AmberCPAs - Sign in to Answer