Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Person or trust as the second in line beneficiary?
It is the time of life that my wife and I are setting up a trust to plan for where our IRA assets will go. My wife and I are co trustees in our trust. So if one of us dies before the other the transition is simple. My son will be the next in line to handle our affairs when we are both gone. My question is: Should my son be listed as a beneficiary or should I list the trust as the next in line beneficiary? My son will still be in control either way but is there an advantage to how I set it up?
Asked Wednesday, March 20, 2024 by Bill S.Sign in to Answer
Write off investment real estate loss
What form do I use to write off investment real estate loss? This is a dirt lot I had over 20 years and sale price was less than original purchase price.
Asked Wednesday, March 20, 2024 by Don B.Sign in to Answer
Tax Liability on an Inherited Annuity Payout
I am the beneficiary of a non-Qualified Annuity with a Death Benefit. The annuity paid out over the years and the cost benefit is less than half of the death benefit. My financial advisor looked at it and says the death benefit should be viewed like as a life insurance (like a rider) and should NOT be subject to tax. The annuity holder tells me I will owe regular income tax on the amount between the cost benefit and the death benefit (over 50% of the total payout). Which is correct? And should I tell the annuity company to withhold the taxes or should I just get the full lump sum, put it in savings and deal with the taxes next year and pay then (after I've been ale to accrue some interest on the full amount)?
Asked Tuesday, March 19, 2024 by Isabel N.Sign in to Answer
filing 1041
I am required to file 1041's for my husband, sister and brother in law. I have received some 1099's that used their social security numbers, and, when I ask to have the 1099 changed. I cannot because the accounts were not in the estate's name. I have EIN's for each individual, and will use them when filing the 1041. But how will the IRS track the 1099's that used the social security numbers so that they know I have reported that income? I need to know how to handle this. Thanks
Asked Monday, March 18, 2024 by Laraine M.Sign in to Answer
Capital gains tax and avoiding
My parents have run into tough times and are unable to take care of the house,that has been in the family since 1998. My spouse and I were going to sell our property and move in with my parents. I know I need to put our names on the deed to there house but what can I do that we don't get taxed capital gain taxes or how can I avoid some. My spouse and I are wanting to take over the house.
Asked Monday, March 18, 2024 by Nicole K.Sign in to Answer
Assigning the Used Ev credit when purchasing a vehicle jointly
Can I claim the used EV tax credit on a qualifying car when I purchase the car jointly with my girlfriend/ we are co-applicants (for credit reasons)
Asked Monday, March 18, 2024 by matthew w.Sign in to Answer
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