Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax QuestionsCan I deduct legal fees spent ensuring my trustee is doing his fiduciary duties?
Asked onWednesday, December 20, 2023 by JulianI have spent a significant amount in legal fees this year to ensure that my trust fund's trustee is adequately performing his fiduciary duties. As a result of this work, I have been able to withdraw a significant portion of my trust. Are these legal fees tax deductible?
Child tax credit
Asked onWednesday, December 20, 2023 by DanielleIs there a minimum income requirement to get the child tax credit in 2023? I have 3 qualifying children and have only earned about $600 (in Minnesota).
Would like to buy a car for my business
Asked onWednesday, December 20, 2023 by ShahabI have a new LLC for my realty business with no income currently. However, I have a w2 job where I make 500k. I want to purchase a vehicle or my business LLC. Can I deduct this pretax from my w2 income?
Transferring profits and expenses to LLC
Asked onTuesday, December 19, 2023 by AbhijitHi, I am a resident of California. I started trading forex earlier this year. I have earned profits and incurred expenses. I qualify for the trader tax status. I recently started S corp LLC in Wyoming. Can I transfer my profits and expenses before starting the LLC to the LLC for 2023 tax returns?
Where best to file a PLLC: NY or NJ?
Asked onMonday, December 18, 2023 by JingnaI am a psychiatrist starting a solo private practice seeing patients in both New York and New Jersey. Where would it make the most sense from a financial standpoint to file my PLLC?
Married Filing Jointly with an EIN?
Asked onSunday, December 17, 2023 by ElijahI am a sole proprietor (therapist) but have always filed jointly with my husband. This year I want to get an EIN so I can open up a solo-401k. Can I still file jointly even with an EIN?
Reversing cash flow from mortgage deductions
Asked onFriday, December 15, 2023 by CavHi. I’d like to figure out how to get the cash in hand result from a deduction for year 1 of ownership of a property. I realize the real-life scenario is more complicated than this; but would love to understand a simplified method first. Simple scenario: 1MM property. 20% down. 800k loan. Let’s say 7% interest for sake of argument. 30% tax bracket. I think you’re supposed to figure out the ratio of 750k of 800k because of the cap. So that’s 0.9375. Just to keep the math easy, let’s say that the interest total is 55k a year. How do I figure out what that represents as cash in my pocket? I thought you should take the 55k * 0.9375 to get the max deduction of ~$51,500. Then you multiply that by tax bracket. .3 * $51.5k = ~$15.4k So the cash in hand result after the deduction is about ~15.4k? Any help is appreciated.
Why did my accountant opt for accrual method?
Asked onFriday, December 15, 2023 by JI am a one-person LLC (C-corp) providing services, with average revenues $150-$200K per year. Have few vendors paid on an account basis; no inventory at all. Why would was I set up on accrual accounting method if I fall under the gross-receipts threshold and qualify for cash method in all other ways. Isn't cash method simpler?
Forming a Non-Profit
Asked onThursday, December 14, 2023 by PaulaOne of my clients has large profits this year and has decided to follow her dream of having a non profit organization providing the same services as the for profit organization. The for-profit will provide the supporting funds. What are my steps, Can we put this money in an account today towards the business even though we have not formed it/ registered it yet and it wont be completed before year end?
Two EV tax credits in one year for two vehicles
Asked onWednesday, December 13, 2023 by ChristopherWe just bought a Tesla and are thinking about buying a second, if we will get the $7500 tax credit for the second vehicle as well. Can you get more than one EV tax credit if you buy a second car?