Unanswered Tax Questions
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How to Handle the Regular Sale of Personal Items on eBay
Hello! I am a bit confused how to go about the correct way to account for personal items sold on eBay. I run a a small home-based business where I consistently offer for sale and frequently sell personal items from our own home (28+ years) and my mom's home (50+ years). Over this long time we both have accumulated lots of stuff! I have no idea how much these items cost when acquired, or even when they were acquired. I am wondering: 1) Since I regularly engage in selling personal items (I also have business inventory purchased for resale and between the two I have over 3,500 listings), I am assuming I need to include these items as inventory when I place them up for sale. Is their cost then FMV? 2) Also, since I regularly sell these items, I am assuming they wouldn't fall under the sale of personal property, per se, since my intent is to engage in business and make money and they are in fact part of my business sales and show up on my 1099-K? 3) If I do place these items in inventory, I am assuming, since I have no idea what their original costs were, that I would never make a profit on them as their cost will be what I sold them for (FMV)? For example: I list a used coffee pot for sale on January 1st on eBay for $19.95 based on competitive pricing. I sell it on February 14th for $15 as I accepted a best offer. I can use the $19.95 as cost (FMV) and record the sale at a $4.95 loss because it is a business transaction. Is that correct? I am so confused!
Asked Saturday, February 01, 2025 by Laura G.Sign in to Answer
there is an over accrual that is still sitting in the liability for three years now.. if i want to reverse should I use relevant expense account?
there is an over accrual that is still sitting in the liability for three years now.. if i want to reverse should I use relevant expense account?
Asked Monday, January 27, 2025 by Sasha L.Sign in to Answer
The Eligibility of Purchasing a "Gaming" Laptop With a 529
Hello! I'm seeking advice about my laptop purchase for college. At the moment, I'm looking into purchasing a gaming laptop for it, as it should be able to hold up performance wise over the next several years as I battle it out in college. My question: could I buy a gaming laptop with a 529 for this purpose? Would it be eligible? One reason why I'm fixated on buying one is that I'm planning on taking online college, so of course a laptop would be necessary. The other reason is I'm not sure what to major in, so if the major (or maybe I change a couple times) I choose involves serious performance, I want to be ready for it. Lastly, I'm wanting something powerful for 1000 or less, and do not want to replace the laptop for a long time. I appreciate your response in helping me!
Asked Saturday, January 25, 2025 by Joe M.Sign in to Answer
Adoption credits and reimbursements
I hope you're doing well. I have a tax question about adoptions last year. In 2024, I had both a successful and a failed adoption. Can I claim both as separate children/adoptions for tax purposes? I've heard mixed reviews—some say it's okay but might trigger an IRS audit. Others say with the right documentation, the IRS won't have an issue. Could you give me some guidance on this? Thanks so much for your help! Ben
Asked Monday, January 20, 2025 by Ben K.Sign in to Answer
Out of country medical deductibles
Spouse had stem cell therapy done outside of the country, Panama, which we paid out-of-pocket for. Is this deductible on our taxes. If so, what paperwork will we need in order to file?
Asked Thursday, January 16, 2025 by Shay V.Sign in to Answer
ax Guidance for My U.S.-Based Dropshipping Business
Hi, I’ve recently started a dropshipping business in the U.S., but I currently live in Turkey. My LLC is registered in New Mexico, and I source products from China to sell to U.S. customers through Shopify. So far, I’ve made only two sales, but I plan to scale the business quickly. I want to make sure I fully understand my tax obligations and comply with all requirements. Could you help me with the following: When and how do I need to pay taxes (sales tax and income tax) for my business? Do I need to register for any permits, such as Gross Receipts Tax in New Mexico or sales tax in other states? What records should I keep, and what steps should I take to remain compliant with U.S. tax laws as a non-resident? Your guidance would be much appreciated to help me manage everything properly as I grow the business. Thank you!
Asked Tuesday, January 14, 2025 by Gursu T.Sign in to Answer
Annual Federal Tax Problem
Hello, I opened an LLC company with your service and earned a net profit of $42.61 this year. I do not have an ITIN or Social Security Number, and I would like to pay my annual tax using my EIN. Could you please guide me on how I can do this? I need your assistance. Thank you!
Asked Saturday, January 11, 2025 by YUSUF EMRE E.Sign in to Answer
About tax
Hello, I am doing the dropshipping business model on Amazon and I need to make an annual tax declaration. I am an LLC company owner and in the state of New Mexico. I need help filing annual taxes in NJ.
Asked Saturday, January 04, 2025 by UGURCAN K.Sign in to Answer
Ohio Tax Payable
if in the previous years, the accountant recorded Accounts Receivable (debit) $120.00 Installation Income (credit) $100.00 Ohio Dept. of Taxation Payable (credit) $20.00 If this is the original entry and I want to reverse Ohio Dept. of Taxation Payable in the amount of $20.00, what is the adjusting journal entry?
Asked Friday, January 03, 2025 by Charlie R.Sign in to Answer
Taxes as a non-US resident
I have been looking into starting an LLC in the US, probably in either Wyoming or New Mexico. I want to know how my taxes would look like as a non-US resident operating the business from outside the country. My LLC would be selling a software for photography businesses. From some sources, I read that I would only be taxed on US-sourced income. For example, if I were to start the LLC in New Mexico and had customers all over the US, would I pay taxes for these customers? Would there be difference between customers in New Mexico and other states in the US? Would I have to pay taxes for any customers from Europe for example? Since my country has a tax treaty with the US, I can avoid being double-taxed as well? Thank you for your time
Asked Saturday, December 21, 2024 by Mohamed S.Sign in to Answer
