Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
Can i deduct interest on this cash back loan?
I’ve read that interest on a cash back loan taken out after 2018 & secured by a primary residence cannot be deducted when itemizing if you don’t use the cash to improve the residence. in 2023 i’ll itemize for the 1st time because i just bought a 2cnd home. i took out a cash back loan in 2014 & used the cash to improve a rent house & not for my residence. Can i deduct the interest, based on the date of the loan?
Asked Monday, October 09, 2023 by d p.Sign in to Answer
Tax
I’m considering buying 2 homes. A has $12,000 property tax, B has $6,000 property tax. With the SALT (state and local taxes) cap being removed in 2025, does this mean these taxes are practically the same?
Asked Monday, October 09, 2023 by Stephen A.Sign in to Answer
Treatment of Loan amount in zero cash flow property investment
How will the principal amount of the loan will get reduced every year in the books of the owner of zero cash flow property as the tenant is paying the mortgage payments directly to lender. what is the JE? Investors can deduct interest and depreciation expense, but what happens to the loan amount will it keep increasing every year as the interest entry is crediting the loan. what happens to the loan in owners books when the loan is paid off completely by tenant?
Asked Saturday, October 07, 2023 by Rachel S.Sign in to Answer
Capital gain on house exclusion
I bought a house in one state in 2016, lived there full time then moved to another state in 2022. We have never rented the house or had any other real estate sales. We sold the house in 2023, for a 1m gain. The house was used continuously since I commuted to work in that state and the house is about a mile from my employment. We definitely meet the test of living in the house 2 out of the previous 5 years. I've received advice from a CPA that we can exclude the 500,000 from the gain, but the tax publication seems to require that the house be the primary residence at the time of sale. My CPA says that is not necessary. Our primary residence was the other state post-2022. Can we take the exclusion?
Asked Saturday, October 07, 2023 by Sean M.Sign in to Answer
What do I need to file before dissolving my LLC
Hello, Last year, I established a Wyoming LLC, with the help of Northwest Registered Agent. I managed to get EIN for my company and acquired a bank account. I intended to set up an online drop shipping business. Unfortunately the business idea wasn't fully pursued and I'm now thinking of dissolving the LLC. I found it challenging to find proper information regarding the taxes. I have not filed anything yet. There were only two transactions with my company's bank account. One for $0.10 and the other for $0.19, both were initiated by PayPal when I was trying to set up the account. I'm co-owner of the LLC, my partner and I both are non US residents. What forms do I need to file? How should I proceed? Please help me, I'm very confused.
Asked Saturday, October 07, 2023 by Luka L.Sign in to Answer
Taxes on sale of vacation home
I owned a vacation home for 20 years. It is not my primary residence. In early 2021 I contracted for a new vacation home to be built. Due to Covid there were numerous delays and the new house was not finished until November 2022. The new house is also not my primary residence. I placed the old house on the market as soon as the new one was finished. The old house sold in January of 2023. Both the old and new house are held in a revocable trust. Do I have to pay capital gains on the sale of the old house or can I roll over the gain into the new house?
Asked Saturday, October 07, 2023 by Ronald C.Sign in to Answer
Capital Gain on Sale of Home
We sold our residence of 25 years for 929k. [It's our only house.] We paid 234k for it in 1998. We file a joint return and our taxable income will be under 88k for 2023. Do we have to p!ay capital gain for the gain over 500k? Thanks!
Asked Saturday, October 07, 2023 by Tim C.Sign in to Answer
Capital Gaims Tax Calculations
I live in Ohio. I am investing in crypto currency. I buy botcoin and send it to a management company who then earns a profit and has me withdraw the value of the portfolio every 2 weeks as USD. How is this taxed? Is it taxed each time I withdraw? Or is it taxed at the end of the fiscal year based on total net capital gains? Or am I saying the same thing a different way? Thank you,
Asked Friday, October 06, 2023 by Ridge J.Sign in to Answer
college scholarships and taxes
Are scholarships (college freshman) taxed? counted as income? last year , 2022, local community college had Free Tuition for HS grads entering as freshmen (covid help) Is that considered a scholarship?
Asked Friday, October 06, 2023 by S W.Sign in to Answer
2023 Mandatory Update Federal Tax Withholding Calculations
I have two (2) sources of personal income i.e.: social security benefits (age appropriate), and pension annuities. January 2023 IRS requested employers to update each retiree filing status, and include a flat dollar amount to be withheld each month. What's my expected Federal Tax withholding calculations for an AGI for 2023 filing $76,497.84?
Asked Friday, October 06, 2023 by Gwen P.Sign in to Answer