Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Leasing property for solar panel farm
My sister & I inherited property on our family farm and the deed has both of our names on it. We are considering leasing the land to a solar energy developer group. What is the best, financially-sound way to proceed? How can we estimate what the tax will be on the rental income and how should it be reported when we file our personal taxes each year during the lease period? Is there specific language to include in the lease agreement to be sure the terms are in our best interest?
Asked Sunday, March 17, 2024 by Sue S.Sign in to Answer
Minimum requirements for filing as an S Corp after submitting form 2553
I created a business in 10/22 but did not conduct any transactions until 2023; should I have filed a tax return for 2022 if I had no business activity? I filed form 2553 to file as an S-Corp in 2022. Do I need to file form 2553 every year or only once? Are there any minimum requirements to file as an S-Corp? If so, how do I file if I submitted form 2553 but do not meet the minimum requirements? Can I revoke form 2553 for the year 2023 when I file my taxes or is this not necessary?
Asked Saturday, March 16, 2024 by Shawn V.Sign in to Answer
Oregon State Tax Make a Mistake on the return, That has already been mailed in.
I mailed in my Oregon State tax's March 14 , I believe I make a mistake on my Oregon State Tax instead of getting a (refund) ,.. I owe!! I did the Oregon State tax once more on Turbo Tax to be sure and yes" it was correct.. "I owe"....... Question " What do I do in a case like this? Amend ? or just wait and see? Thank you
Asked Saturday, March 16, 2024 by Brian H.Sign in to Answer
Need to pay Self-employment tax for summer internship on 1099 contract?
I am an international student on F1 visa, I am a citizen of India. I have been here in the US for the past 7 months. I have a summer internship lined up in an early-stage startup, on a 1099 contract. It has been approved by my DSO (school) as CPT, Do I have to pay the self-employment tax (~15%)? I read that F1 students are exempt from FICA taxes for the first five years, and since the self-employment tax is basically FICA (right?), I would like to know if I am exempt from it. I would be interning in Texas which does not have state tax. So I believe I would only have to pay the Federal tax? I just want to have an estimate of what all taxes I would have to keep aside before negotiating for the stipend.
Asked Friday, March 15, 2024 by Harsh V.Sign in to Answer
Foreign Tax Credit and Foregin Dividend Income Question
On form 1099-div, there was foreign taxes paid tied to dividends paid out on one security. It is strange because an adjustment was made that makes qualified dividend amount exceed ordinary dividend amount. The specifics are: ordinary dividend amount was $172 paid in 2023, ordinary dividend paid/adjusted in 2024 for 2023 $(160.35), total ordinary dividend amount = $12. Then for qualified dividend (same security): $0 was paid out in 2023, then $170 was paid/adjusted in 2024 for 2023, total qualified dividend = $170. You see how qualified dividend amount ($170) exceeds the ordinary dividend amount ($12). How am I supposed to account for this on form 1116?
Asked Thursday, March 14, 2024 by Jeffrey M.Sign in to Answer
About who should own a new LLC
I collect SSA retirement, approx $20K, and my teenage son collects 50%, approx. $10K, of my benefit. I'm creating an LLC for a business that will have no employees. The business will generate between $10K to $20K within 3 years. For tax purposes, will it be better to register the business to my son or myself? Note that for the next 2 years, I will run the business exclusively. After that, my son will run the business.
Asked Wednesday, March 13, 2024 by Richard D.Sign in to Answer
2023 Tax withholding
Hi, my spose and I (filing jointly) have made ~82,000/year and ~87,000/year, respectively. We have paid ~15,000 in taxes (maximum of taxes during 2023 according to our W4), and yet we have tax due of ~7,500. This income is from our W2 and we don't have other sources of income or anything else. It says that we should have paid ~22,000 in taxes in 2023. I guess my main question is how does the tax withholding gets calculated? I was looking at pg.4 on the W-4 form, and looks like we're within the estimated tax withholding range, hence not sure where is the 22,000 getting calculated from? Any insight on this would be very helpful, especially how does the tax withholding gets calculated yearly so we don't have to pay this much at the end on top of what we pay during the year. Thank you in advance. Best, Klausa
Asked Tuesday, March 12, 2024 by Klausa B.Sign in to Answer
Submitting a return
I am a 78-year-old retired American living in the Philippines. I am married to a Filipina. My total retirement pension and social security is about $22,000. I have no dependents. My question is; do I have to submit a tax return?
Asked Tuesday, March 12, 2024 by David L.Sign in to Answer
IRA rollover/Solar credits
I have a traditional IRA that was started in the mid-1980s. Shortly after I started it there was a change in the tax laws, eliminating any deductions from it. Consequently, I never used any deductions and never made any more contributions to it other than the initial minimum deposit required to open it, which I think was $2,000. The latest account holder is Sofi.com since September, 2019. They are reporting a $27,281.22 gain since that date. There are no documents available from eTrade, the previous holder, and I have no tax records going back to the 1980s. It’s value is now a little over $103,699. I’d like to rollover into my already-established Roth IRA. Since there were no contributions or deductions ever claimed for the Trad IRA, are the gains taxable at I rollover? If taxes ARE required, are they based on the $27,281.22 gain reported by Sofi or $101,000, the apparent gain since the 1980s? We also have a $14,000-plus solar credit we thought we could use to offset any taxes on the rollover. We’re moving overseas this summer and will be converting our residence to a rental. We’ve been told by tax pros once we rent our house, we can no longer use the tax credit, so we have to use it before summer or lose it. Would I have to file quarterly estimated tax payments to pay (via the solar credit) any taxes due from the rollover to avoid underpayment penalties?
Asked Monday, March 11, 2024 by Stephen W.Sign in to Answer
Capital Gains Tax (CGT)
Good morning, I have miscalculated my Capital Gains Tax (CGT) and applied the' more than 12 months holding' not the 'up to 12 months holding'. As such, my tax bill will become 2x what i had provisioned for. Come tax time when i submit my tax return i was curious what the consequences will be? is there a way to pay half (the amount i had provisioned for) then go on a payment plan? Thanks Ed
Asked Monday, March 11, 2024 by Ed P.Sign in to Answer