Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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1099 payment write off
I want to pay a former employee who helped me build my business, $10k and 1099 him. Can I write this off against my business income? I am an S corp.
Asked Thursday, December 21, 2023 by Charly P.Sign in to Answer
Can I deduct legal fees spent ensuring my trustee is doing his fiduciary duties?
I have spent a significant amount in legal fees this year to ensure that my trust fund's trustee is adequately performing his fiduciary duties. As a result of this work, I have been able to withdraw a significant portion of my trust. Are these legal fees tax deductible?
Asked Wednesday, December 20, 2023 by Julian S.Sign in to Answer
Child tax credit
Is there a minimum income requirement to get the child tax credit in 2023? I have 3 qualifying children and have only earned about $600 (in Minnesota).
Asked Wednesday, December 20, 2023 by Danielle O.Sign in to Answer
Would like to buy a car for my business
I have a new LLC for my realty business with no income currently. However, I have a w2 job where I make 500k. I want to purchase a vehicle or my business LLC. Can I deduct this pretax from my w2 income?
Asked Wednesday, December 20, 2023 by Shahab S.Sign in to Answer
Transferring profits and expenses to LLC
Hi, I am a resident of California. I started trading forex earlier this year. I have earned profits and incurred expenses. I qualify for the trader tax status. I recently started S corp LLC in Wyoming. Can I transfer my profits and expenses before starting the LLC to the LLC for 2023 tax returns?
Asked Tuesday, December 19, 2023 by Abhijit T.Sign in to Answer
Where best to file a PLLC: NY or NJ?
I am a psychiatrist starting a solo private practice seeing patients in both New York and New Jersey. Where would it make the most sense from a financial standpoint to file my PLLC?
Asked Monday, December 18, 2023 by Jingna Z.Sign in to Answer
Married Filing Jointly with an EIN?
I am a sole proprietor (therapist) but have always filed jointly with my husband. This year I want to get an EIN so I can open up a solo-401k. Can I still file jointly even with an EIN?
Asked Sunday, December 17, 2023 by Elijah P.Sign in to Answer
Reversing cash flow from mortgage deductions
Hi. I’d like to figure out how to get the cash in hand result from a deduction for year 1 of ownership of a property. I realize the real-life scenario is more complicated than this; but would love to understand a simplified method first. Simple scenario: 1MM property. 20% down. 800k loan. Let’s say 7% interest for sake of argument. 30% tax bracket. I think you’re supposed to figure out the ratio of 750k of 800k because of the cap. So that’s 0.9375. Just to keep the math easy, let’s say that the interest total is 55k a year. How do I figure out what that represents as cash in my pocket? I thought you should take the 55k * 0.9375 to get the max deduction of ~$51,500. Then you multiply that by tax bracket. .3 * $51.5k = ~$15.4k So the cash in hand result after the deduction is about ~15.4k? Any help is appreciated.
Asked Friday, December 15, 2023 by Cav C.Sign in to Answer
Why did my accountant opt for accrual method?
I am a one-person LLC (C-corp) providing services, with average revenues $150-$200K per year. Have few vendors paid on an account basis; no inventory at all. Why would was I set up on accrual accounting method if I fall under the gross-receipts threshold and qualify for cash method in all other ways. Isn't cash method simpler?
Asked Friday, December 15, 2023 by J W.Sign in to Answer
Forming a Non-Profit
One of my clients has large profits this year and has decided to follow her dream of having a non profit organization providing the same services as the for profit organization. The for-profit will provide the supporting funds. What are my steps, Can we put this money in an account today towards the business even though we have not formed it/ registered it yet and it wont be completed before year end?
Asked Thursday, December 14, 2023 by Paula S.Sign in to Answer