Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax QuestionsCapital Gains on home gifted through bargain and sale deed
Asked onTuesday, February 21, 2023 by EvaMy 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?
Sale of business asset with a Sec 754 step up in basis
Asked onTuesday, February 21, 2023 by MollyWhat 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.
Is Form 706 (my father passed away) necessary in order to get a stepped up basis
Asked onTuesday, February 21, 2023 by JimmyMy 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?
Deductions
Asked onTuesday, February 21, 2023 by CeliaIf I know I have less than standard deduction, should I itemize?
Firpta
Asked onTuesday, February 21, 2023 by JoeIam am a buyer I? A house an the seller is from Canada an wants me to do firpta. Should i?
Home Sale Gain Exclusion Situation
Asked onTuesday, February 21, 2023 by EricMy 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.
Do I need to file taxes
Asked onTuesday, February 21, 2023 by AnnaI 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?
Early IRA distribution
Asked onTuesday, February 21, 2023 by KrisI 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
Car lease or no lease
Asked onTuesday, February 21, 2023 by AmberWe 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.
VA Tax Return
Asked onTuesday, February 21, 2023 by DebAre financial statements required with the VA tax return—i.e. reconciliation of Bal Sheet and P&L? Business produced net loss; gross was <$100k