Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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Tax ID Timing for a CRUT
My wife and I formed a charitable remainder trust in 2023 and contributed property to it. However, we did not apply for an IRS tax ID for the trust until April 2024. Can we still deduct the contribution on 2023 tax return so long as the tax ID is received prior to filing of the 2023 return?
Asked Monday, April 01, 2024 by Joel L.Sign in to Answer
Scholarship refund taxed?
I received a $10,000 scholarship from a third party that was sent directly to my university. Because I already have full ride, the money wasn't applied to my tuition and my school sent me the $10,000. I cannot uphold the conditions to the third party scholarship anymore so I returned the $10,000 back to the third party. When I receive my T-1098 later this year, it will state my school refunded me $10,000 which is technically income. However, I returned the money and therefore did not make any income off of it so will I need to pay taxes on it?
Asked Thursday, March 21, 2024 by Rudha F.Sign in to Answer
How to electronically file a Form 1098 as a lender.
We sold our last home to our neighbors and we carried the loan for them. The loan closed December 2022. In January 2024, I sent them a Form 1098 for the interest they paid us in 2023. I file my taxes electronically using the Free Fillable Forms on the IRS website. Our taxes are very simple as we are retired. There is no electronic Form 1098 on the IRS website. (like form 1099's etc). I thought I would maybe just list the interest we received with the name of the borrowers on the Schedule B of our Form 1040, but maybe I was supposed to mail the IRS a copy of the 1098 even if I electronically file the rest of my taxes. Please advise on what I should have done. If I was supposed to mail it to somewhere, I don't know where to send it and am probably late anyhow. IRS instructions for private owner lenders like us for the Form 1098 are hard to understand. Thanks for any advice.
Asked Wednesday, March 20, 2024 by Richard W.Sign in to Answer
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
