Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Wash Sales Rule Question
I started day trading in 2024 and ignorant of wash sales, traded in December 2024 continuing into 2025. So I am assuming I incurred some wash sales tax in 2024. Now in 2025 I want to avoid this and decide if I should continue with day trading. So lets say in 2025 I started with $10000 and I kept trading only SPY options daily (multiple times daily) and net in one day I lose $1000 and next day I make $1000 and this keeps happening for all the trading days of the year. In the end in my account, I didn't make or lose any money. So if I trade all the months of the year, with 250 trading days, I should be paying tax for $125000 gains I made is what I understand from Wash sales rule. Is that correct? Now if in the the month of December 2025 I don't trade. What kind of tax would I have to pay for 2025? Will it be zero is my question. For keeping it simple assume I am in the highest tax bracket. Also I have another job and don't have an LLC or Mark to Market.
Asked Thursday, March 20, 2025 by Abhish P.Sign in to Answer
Gift of equity
I'm buying a house from my girlfriends parents. They are gifting us 300k in equity. Does anyone have to pay taxes on that equity
Asked Tuesday, March 18, 2025 by Jackson D.Sign in to Answer
Tax form
Can a tax prepare print and mail form 4852 with you?
Asked Saturday, March 15, 2025 by Jeremy B.Sign in to Answer
Can S-Corp install Solar Panels and will it still get 30% off in tax credit?
Can my S-Corp install Solar Panels (on my own residential property) and will it still get 30% off in solar tax credit? Can I further claim depreciation on the Solar Panels against other S-Corp incomes?
Asked Thursday, March 13, 2025 by Alex T.Sign in to Answer
Irrevocable Trust With Interest Rolled Over
My wife and I have an irrevocable trust with the interest rolled over. For the past couple of years, we have been declaring the interest, even though it hasn't been disbursed, by filing a 1041. Is what we've been doing correct, or should the Trustee claim the amount when the trust is disbursed? Thanks John
Asked Tuesday, March 04, 2025 by Laura F.Sign in to Answer
Forfeited deposit
I wanted to buy a house in Spain as an investment. In the process of buying the house you need to give a 10% deposit to lock the house. The deal didn't move forward. Can I claim that 10% as capital loss?
Asked Sunday, March 02, 2025 by Jesus S.Sign in to Answer
Travel Nursing
I live in Indiana and have a tax home. I am a travel nurse that works in Michgan 13 weeks a year, 3 days a week. What state taxes should come out?
Asked Saturday, February 22, 2025 by Steven C.Sign in to Answer
Due dates anual tax filings LLC wyoming (non USA resident & no USA clients)
A couple of months ago i started a LLC in Wyoming (i am not living in the USA) and i was wondering when are the due dates for the annual tax filings? My LLC is not really active and is still in the early phases therefore i dont have a CPA. Could you advise me on the due dates, is there a certain date, is it counted from when the LLC was formed and will i be notified whenever i need to file my taxes?
Asked Thursday, February 13, 2025 by Henk d.Sign in to Answer
Question about early withdrawal penalties
I am thinking about rolling my Public School Employee Retirement System (PSERS) contributions to a traditional IRA. The rollover of the $32,737 would be tax free. PSERS rules requires that I start taking a pension to do this. This pension would be structured as an annuity and taxed at ordinary income. Since I would be taking the pension before the age of 59.5 would the pension payments also receive an early withdrawal penalty? Since the withdrawals are structured as an annuity would I qualify for an exception to the IRS early withdrawal tax? I want to confirm that this qualifies under this equal payments exemption: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions#:~:text=Generally%2C%20the%20amounts%20an%20individual,tax%20unless%20an%20exception%20applies
Asked Tuesday, February 11, 2025 by Stephen P.Sign in to Answer
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