Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax QuestionsUnable to deduct all Mortgage interest paid.
Asked onThursday, February 16, 2023 by MerrilyUsing TurboTax, I entered the amount of mortgage interest straight from my 1098. However, it is only giving me credit for approximately 15% of that amount. What would cause this difference?
Business Sale
Asked onWednesday, February 15, 2023 by AngelaHello. I was basically handed this pet product company that a friend/associate designed/invented the product. I had started my own company (EIN) and had to rebrand with new logo etc, but we did have a contract that if the company grew exponentially she would receive up to $50k purchase price for the rights to the product, a little bit of inventory and the guaranteed sales that came with the product, and then with some residuals in royalties. Unfortunately it did not happen, but it has remained a great side gig and I have paid her about $8k over the last 6 years which I have classified as Royalties on the books. I am now selling the company, I reduced the price and it still has great potential for this buyer. The inventor/previous owner is still a good friend so I want her to receive 60% of the proceeds of the sale. I have made a some money on it the last 6 years, so she needs to be compensated and I plan to do so. My question is, what is the best way to record this on the books. The sale price is $25k. So I would receive $10k, former owner would receive $15k. But is no longer really considered Capital Costs is it? So how do we do this so I am not paying Cap Gains on $25k? Do I have the buyer cut two checks, one to my current company/me and one for $15k to the previous owner separately? Or is there a way to show on my books the $25k income from the sale offset by $15k? If I put it to Royalties as I have been will I still have to pay the Cap Gains on $25k? Thanks for you help!
Do Foreign Owners of US LLCs Selling Print-on-Demand Products Need to Pay Taxes in Both the US and their Home Country?
Asked onWednesday, February 15, 2023 by DiogoWhat 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.
Adjusted cost basis compilation to figure capital gains on rental
Asked onWednesday, February 15, 2023 by Detta MaeWhat costs can I use over the 40 years I owned?
Retirement affecting child tax credit
Asked onWednesday, February 15, 2023 by NeicaI stopped working at this company 3 years ago and they notified me they were closing my retirement account and I would receive the money. Now my child doesn't qualify for the child tax credit since I received retirement distribution before age 59 , what can I do to get that CTC?
1099 misc amount for consigners that I sell products for in my shop
Asked onWednesday, February 15, 2023 by ArmandoI have a consignment shop. If I sell a consignees product in my shop for $1000 plus $40 credit card fee, and my consignment fee is $400, how much do I make their 1099 misc out for?
Shares match from another country - is tax withheld deductible?
Asked onWednesday, February 15, 2023 by KevanI work for a company that matches shares purchased by myself after 3 years. I have received several matches. The company (RioTinto) shares are based in England, and the company sells a portion of my match (approx 40%) to cover the Taxes. Should I be deducting/claiming any of this (withholding???) taxation? Not sure I have the correct terminology.
Changed Primary Residence in Under 12 Months. How to Approach?
Asked onWednesday, February 15, 2023 by MattHi, my fiancee and I bought our first home in 2021 as a primary (our only) residence. In 2022, we had an unexpected job relocation, which had us selling our first home and purchasing a different home in another state and reinvesting funds to that purchase. I am aware of a 1031 exchange for rental properties, but is there an exemption or something similar that exists for primary residences because of us living there a shorter amount of time?
Tax break on IRA distribution
Asked onWednesday, February 15, 2023 by RALPHI'm a senior citizens and prepare my own tax return. I didn't qualify to go long form. My IRA distribution rendered large amount owed. What options would I have to lower my AGI? Am I allowed to make payments?
Do I have sales tax nexus, if I run my business abroad?
Asked onWednesday, February 15, 2023 by BrandonIf I am a U.S. citizen living abroad and I want to start a business of drop shipping in the U.S. to U.S. consumers, do I have a “sales tax nexus”? And am I required to get a resellers permit/sales tax ID and collect taxes?