Unanswered Tax Questions

Questions Asked by Users That Have Not Recieved a CPA Response.

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Personal Taxes

About taxes in New Mexico

Asked onTuesday, February 20, 2024 by ahmet

In May 2023, I formed an LLC in Albuquerque, New Mexico. In December 2023, I received an EIN number. Our company works in the software industry and provides software services to clients in Europe. For the services provided by our company, our clients in Europe will pay to the company account. What kind of taxation will apply in this case? For example, if a total of 50.000 usd is invoiced for 1 year, how much tax do I have to pay? Also, how much tax rate should I reflect on each invoice?


Deductions and Write-Offs

Is tail insurance premium for employed physician tax deductable?

Asked onMonday, February 19, 2024 by Michael

In 2023, I terminated my contract as an employed physician to seek a new opportunity. As such, I was required to pay the premium for tail insurance (extended liability insurance covering the previous employment). Am I able to deduct this as a business related expense or similar?


Small Business

Tax distribution

Asked onMonday, February 19, 2024 by Gina

Me and my friend are starting a business. She has an stablish LLC and the contract we will getting using her LLC name will be to split 50/50. My idea is to join as subcontractor and we want to split the earnings 50/50. Whoever the question is who will be taxed more her LLC or me? She suggested her keeping a higher percentage of the money because she will have to pay taxes at the end. But my understanding is that LLC is through pass and it will work the same on either side.


Tax Forms

additional tax on excess contributions to roth iras

Asked onFriday, February 16, 2024 by Kevin

i made an excess contribution to my roth ira in tax year 2021. i amended my 2021 and 2022 returns to add schedule 2 and form 5329 to pay the penalty for excess contributions. i made an untimely corrective distribution yesterday, and i am now preparing my 2023 return. because i had an amount in my 2022 form 5329 line 25, do i have to file a schedule 2 and form 5329 with my 2023 and pay the penalty again? or is it not necessary because i made the correction before 2023 taxes are due?


Deductions and Write-Offs

Non- collectable judgement tax deduction

Asked onThursday, February 15, 2024 by David

I have a judgement against a contractor for for non payment of a down payment. Can I deduct that from my taxes?


Miscellaneous

ERC

Asked onThursday, February 15, 2024 by Stuart

I believe I am eligible for the ERC for some qtrs in both my businesses and am looking for someone to help me file for it, if indeed I am eligible.


Deductions and Write-Offs

Deductions

Asked onThursday, February 15, 2024 by mia

i was in a car accident. are there any deductions i can use related to medical expenses, uber rides to doctors appointments/physical therapy? otherwise i will be using h&r block online tax prep. my income is straight forward.


Small Business

Retroactive S Corp Status

Asked onWednesday, February 14, 2024 by Brian

Hello - in Sep 22 I set up an LLC for my new consulting business. I wasn't sure how things would go, so did not file for SCorp status at the time. I am wondering if I can file retroactively to apply to the 2023 tax year and if there are other considerations I should make (specific to retroactive filing). Thank you Brian


Tax Forms

Form 7205: Energy Efficient Commercial Buildings Deduction - can a renter qualify to file, or only a building owner?

Asked onWednesday, February 14, 2024 by Anaya

We are a retail bookshop that RENTS our space from our landlord. Last year, we spent $30,000 installing new LED lights and a new HVAC system to replace old, energy inefficient equipment. Can a renter qualify to file form 7205, or only a building owner? The form instructions say only the owner and the designer qualify. But IRS Notice 2006-52 includes the word "lessee". If we don't qualify for this credit, is there any other credit available for us?


Tax Filing Tips

Filing an S-corp that never filed

Asked onWednesday, February 14, 2024 by Shane

I recently acquired an s-corp that never filed an 1120s or initial election. The company started in Nov of 2019, so it’s beyond the 3yr 75 day mark. Is there a way that I can file without being penalized?