Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Commute or business expense
I know commuting does not count as a deduction but I've been looking and it serms that if you dont have a primary office or work site and you have to travel outside the metro area for work it may. my spouse is an independent contractor delivery driver and must travel 1 and 1/2 hours each way to an area with stores that use the service to work. It's several counties away so clearly outside the metro area does that count as a work related expense that can be deducted or is that still a commute?
Asked Wednesday, November 15, 2023 by Daniel A.Sign in to Answer
Question about avoiding capital gains tax on home sale
Hello! I have a question about capital gains tax. I’m trying to help my mother-in-law find out if she can get around paying capital gains on the sale of her home (which has NOT been her primary residence for about 6 years now) if she moves to the country with us in the near future. My husband and I are looking to purchase an acreage soon and she’d like to go with us. If we sold her home and put her on the purchase papers of our new property with my husband, instead of my husband and I….. would this help her get around the capital gains taxing of the sale of her home. Although the home is not currently her primary residence, it is the only home she OWNS. The home she lives in now is a much smaller home that she rents, down the street.
Asked Wednesday, November 15, 2023 by Stefanie C.Sign in to Answer
Does this count a commute or business expense
My spouse delivers for Walmart and other companies as an independent contractor for Spark ddi. we recently moved and the closest location is 1 and 1/2 hours away. The only reason for the drive is for work. He does not have a real " home office" could we count his vehicle so could it count as him starting work when he leaves or only after the first pick up. I know commuting isn't a write off but because he has no physical primary work location he it basically working from the moment he leaves home. Does the drive too and from count as a business expense for milage deduction? Thanks in advance.
Asked Wednesday, November 15, 2023 by Daniel A.Sign in to Answer
when to retire
My wife is employed and has a 401(k) with employer. She is over 71 1/2 (born b4 June 30, 1949.) Her work hours have been cut (I believe co. wants her to retire.) If she retires b4 end of calendar year (2023) and rolls over 401(k) to IRA, I assume that amount will be included for 2023 RMD. If she waits until 2024, that amount for RMD calculation will be tax year 2024. However, I noted there appears to be an exclusion if she retires after April 1 or next year (2024,) i.e. the calculation on the rollover would not occur until 2025? (I read and reread the tax code section on this and am still uncertain as to whether I am correctly interpreting the information) We just need to know if I am correctly understanding the April 1 exception, in order for her to determine a retirement date that is tax advantaged. thank you in advance
Asked Wednesday, November 15, 2023 by Steve M.Sign in to Answer
Just married
I just got married on November 12th 2023 I need to file taxes for 2021 and 2022 . I was not married those years would I file single since I wasn't married in those years or married since I'm currently married now?
Asked Monday, November 13, 2023 by Joel D.Sign in to Answer
IRA Distribution
I rolled over an amount from my traditional IRA to my Roth IRA. I know that I pat taxes on the rollover amount and I know what tax bracket it puts me in for 2023 income. Can I pay the tax or partial tax now on the distribution amount? Or do I wait until Spring 2024 when I typically file my taxes?
Asked Monday, November 13, 2023 by Robert R.Sign in to Answer
Can I file as head of household?
My 16 year old daughter lives with me 4 days a week and 3 with her mother. I have always let her mother claim her, but I pay for her insurance and all medical and dental bills and anything else she needs. Can I file as head of household if I don't actually claim her on my taxes?
Asked Monday, November 13, 2023 by John J.Sign in to Answer
Etsy Shop
Hi, i live in KY and have opened an Etsy shop selling digital designs (PNG files) and there are no physical products. I am looking at getting a business license (likely single member LLC) but am curious about tax write offs. My husband purchased me a new laptop to use for the business as my credit limit was not high enough to afford the laptop. Would i be able to write off the expense of the laptop even though he purchased it? Or do i need to look at a different business model?
Asked Monday, November 13, 2023 by Kendall D.Sign in to Answer
Overpaid sales tax on new car
I paid taxes on my new car but I paid too much. It was 34k car with 11k trade in and I was taxed at 34k and not 23k. How do I get the difference?
Asked Saturday, November 11, 2023 by Jarvis L.Sign in to Answer
IRS Worksheet for Determining Support [for Dependent]
Here is the scenario. A single retired parent collecting social security benefits ($21k/yr) lives in Greater San Diego in a middle-class house with a young teenage son (son's total income $12k in social security benefits). Using the IRS 'Worksheet for Determining Support', calculations show the parent pays slightly more than 50% of the child's support ($12k child income/support, $12.5K parent support = total combined support $24.5K), thereby qualifying the son to be a "dependent". But since the numbers are very close, I suppose some amounts could possibly be disputed and the dependent status not accepted. So I just want to know if my numbers seem to be "in the ballpark" or if they might seem to the IRS to be off the mark and could possibly trigger an audit. I have seen articles online saying that the average cost of raising a child in Southern California is about $30k/yr so it looks like I'm in range, but I just want to be sure. Also, note that parent will file as 'Single' instead of 'HOH' since the filing status support criteria are somewhat stricter than the dependent status criteria. Preliminary 2023 tax return won't contain tax credits, won't have to pay any taxes, and won't be getting any refund. Thx, Brian
Asked Saturday, November 11, 2023 by Brian W.Sign in to Answer