Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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offsetting long term losses with short term gains from stock trades
Ex: After reconciling short term losses with short term gains for the year I wind up with a gain of $10,000. After reconciling long term gains with long term losses I end the year with $13,000 in losses. On the tax return does the short term gain offset $10,000 worth of long term losses?
Asked Thursday, September 26, 2024 by Earl C.Sign in to Answer
Does selling inherited property affect your tax bracket?
My father passed away, and I inherited his condo, but I'm selling it. Will the money I receive from the sale affect our tax bracket on our taxes? Or is it separate from our income/what determines our tax bracket for the year?
Asked Sunday, September 22, 2024 by Anna R.Sign in to Answer
Income tax and Annual Report Filing penalties
Hello, I will present some context to my situation. I have an LLC set up in Wyoming since November 24th, 2023, and I haven't paid any taxes whatsoever or I haven't even filed my Annual Report File. I am based in Colombia and my LLC is a single-member foreign LLC. I just spoke with a local CPA and they told me that I owe taxes, as well as the annual report, and ever since April, there has been a penalty added to me for not paying any income tax or filed any annual report. I wanted to know how much of this is true, and if so, is there a way to appeal as a First Time Forgiveness, since this CPA told me there is a way to appeal that. Also I wanted to know what can I instantly do to solve this at the moment? I have an invoice from my Registered Agent that I can pay that is for the Annual Report Filing. Do I still have to pay extra for the penalties added every month? I need help and I need to know what to do in this case, can I file the income tax now and be able to appeal the penalty?
Asked Saturday, September 21, 2024 by Sebastian B.Sign in to Answer
Stepped up basis for property in probate
I am the sole heir and executor of an estate which includes a piece of property located in Virginia. If I were to sell the property through the estate, while still under probate, would the estate be able to claim stepped up basis for capital gains tax? I don't want to make the mistake of selling it under the estate and having a larger tax liability than if I waited until the property was transferred into my name.
Asked Friday, September 20, 2024 by Eric M.Sign in to Answer
ROTH Conversion
I am 70 yrs old, retired, & have both an existing Roth I have been drawing on & also have a 401k worth less than 200k. I am expecting some investment return $'s to go into the 401k account but I would like to convert that to a ROTH BEFORE those funds shows up. My question is if I do that conversion will I have to wait 5 yrs to access those funds, or because I already fulfilled more than 5 yrs on my ROTH account would the investment returns be immediately available?
Asked Thursday, September 12, 2024 by Doug C.Sign in to Answer
CPA for LLC
I'm the owner of a digital LLC (foreign single member) in Wyoming, and I'm looking for a CPA who can assist me with documents and taxes. Can you help me find the right CPA for my business?
Asked Saturday, August 31, 2024 by Edoardo G.Sign in to Answer
Business Tax issue for non-us residents
Hi Team, I hope this email finds you well. I am writing to inquire about your free tax consultation and your tax service for setting up an international office for Beijing Drama and Film Culture in the USA. We are a leading distribution company specialising in copyright and original IP operation, with an international arm for animations and films. We offer comprehensive business solutions for producers and IP parties in China and worldwide, including project investment, programme production and distribution, licensing and merchanting. We plan to operate the international business line and to start distributing children’s content via YouTube and ott/iptv/vod platforms through a USA company ( the LLC, or a better business structure). We are thinking about registering the company in CA or WA state and operating it in LA. In the early stages, we are concerned about the general company set-up advice in the US for non-US residents to help us determine the right type of company, the best taxation options for the company owned by non-US residents, business structure, registration and operation location. Later, it might be expanded to general business tax services for our new US company. I normally work from 10:00-19:00 BJT(GMT+8), but I could accommodate your time to talk from 20:30 to 22:30 BJT. Looking forward to talking to you to learn how you could help us. Best, Yixiang Shirley Lin Assistant to CEO, International Distribution Assistant
Asked Monday, August 19, 2024 by YIXIANG L.Sign in to Answer
Cybertruck qualification for IRS Residential Clean Energy Credit / Inflation Reduction Act Credit
I have a question regarding the IRS Residential Clean Energy Credit which allows for 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2032. Specifically around "Battery storage technology". I'm not sure if you're familiar with the new Tesla Cybertruck but it has the ability to act as a battery backup for your entire home with the installation of another device called a Powershare. There's an interesting discussion on Reddit here (https://www.reddit.com/r/cybertruck/comments/18uboyv/using_a_cybertruck_for_an_irs_battery_backup_tax/) where people are arguing that due to this, you should be able to deduct 30% of the cost of the Cybertruck under this rule. Some are saying that the line “…other than property primarily used in the transportation of goods or individuals…” might disqualify it, but then others argue because it would be parked and plugged into the house more than it's driven on the road, that this doesn't disqualify it. There was another thread here (https://www.reddit.com/r/cybertruck/comments/1eoc7zi/cpa_agreed_that_cybertruck_is_eligible_for/) today where a few people said their CPA said that it does qualify. Currently the language is vague and I'd like to be able to take advantage of this credit before it's taken advantage of and changed.
Asked Saturday, August 10, 2024 by Nick F.Sign in to Answer
Interest Expense for Oil Investment
Based on my reading, for debt-financed acquisition of an LLC or S-Corp, the interest paid on that debt is deductible to offset any passive income. Link: http://archives.cpajournal.com/2000/0400/Departments/d45500a.htm#:~:text=Passive%20int I’m curious to know if I acquire debt to invest in an oil investment, where I will receive a Schedule K, will I be able to deduct that interest? If so, where would I be able to. Secondly, if I am not a general partner, I’m told that I can’t not take 75% of the investment as intangible drilling costs in Year 1 then it would be distributed through 5 years. I’m trying to find the literature for that. As well as, would that deduction go against active income?
Asked Tuesday, August 06, 2024 by Vishal P.Sign in to Answer
Capital improvements/expenses
Hi, just sold a house in California and am wondering if the items below are considered capital improvements that can be added to the basis, or capital expenses that can be deducted from the gain. If so, should that be done prior to calculating capital gains tax and other affected taxes? As well, is landscaping - perennials, shrubs, trees, irrigation systems - considered a capital improvement? Thank you. Master Bathroom Tiling Roof vents - Pest Control Carpet install - bdrm and media room Door build and install - main bath Door install/hardware Electrical work - interior Electrical work - exterior Electrical work/parts - interior Stair repair Garage door keyless entry install City permit costs Plaster wall repair Misc. Plumbing Misc construction int/ext Lower deck and pergola design Architectural services Media room remodel Architectural services Lower deck and pergola construction
Asked Friday, July 26, 2024 by Sloan F.Sign in to Answer
