Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
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help me read schedule k-l
I don't understand what the lines and numbers mean on the Schedule k-l. I was wondering if someone could go through it with me. It can be done over the phone.
Asked Thursday, October 05, 2023 by Sally W.Sign in to Answer
Tax Forms For Deceased and Estate
My mom passed away earlier this year and I am the Successor Trustee and Executor. All real estate and bank accounts were in the Living Trust so no probate. I filed an extension ealier this year, 2023, so have to do her last 1040 taxes by 10/15/23 and then next year estate taxes. I applied for and received a new EIN number. The local counties (CA) were notified about her death on their 502 forms for property tax purposes. I have several questions. 1) I believe I use a 1040 taxes write final on it but do I use her old social security number or the new EIN number I got for the estate ? 2) I think I use a 1040 and write final return on it?, but we are still in the process of selling several properties, those sales may not happen until next year what form do I use to do I use for those, form 1031 and 760 and 1310? There was 6 months of rental income after her death , I assume that goes toward the estate form and not her final 1040? 3) There is also an REIT that is locked up and going through bankruptcy court and may not be settled for a few years? How is that handled? 4) I’ve used H&R Block’s Taxcut for years but I see Taxact has an Estates & Trusts tax software, any opinion on best software to use?
Asked Thursday, October 05, 2023 by Todd C.Sign in to Answer
Taxable gifts
Hello! My husband won a motorcycle valued at $20,000. We made $80,000 this year jointly. We are trying to figure out how much we can expect to pay in taxes. We would also like to know how much we can expect to pay in taxes if we were to sell the bike at value. Any insight you can offer us would be greatly appreciated!!
Asked Wednesday, October 04, 2023 by Ashley W.Sign in to Answer
Taxable interest income
I have CD and treasury bills I just began in July of this year with money I already had with fidelity. Is the interest income taxable? What if I withdraw that money? I am 62 and on disability. The answer I found says at my age that money is not taxable.
Asked Wednesday, October 04, 2023 by Charlene W.Sign in to Answer
Early retirement refund
Hello, I am taking a refund of my maine state retirement. The amount is 47,000. I was told 20 percent would be taken out for federal and 5 percent for state. What should i expect when i file taxes. Would i need to pay more?
Asked Wednesday, October 04, 2023 by Chris L.Sign in to Answer
Buying Car in Canada as NY Resident Sales Tax
I am a resident of new york and looking to buy a vehicle in Canada. Specifically ontario where they have a 5% federal tax rate and 8% state tax rate so 13% tax total. Although I am not a resident there I am being told I need to pay state and federal tax on the car so when bringing the car to new york am I able to get a tax credit or deduction towards the new york sales tax? I saw an article about reciprocal credit for sales or use taxes paid to other taxing jurisdictions but I am not sure on how it works.
Asked Wednesday, October 04, 2023 by Nicholas C.Sign in to Answer
What do I need to have set up as a business to pay a 1099
I pay a friend about $500 a month to help me with my work that I get paid for, I have paid him well over $600 since last April, if I issue a 1099do I need a business llc or anything to pay him? Can I pay him as an individual? Once he leaves I will find another employee. Thank you very much
Asked Wednesday, October 04, 2023 by Luis P.Sign in to Answer
Church pastor taxes housing allowance
I pastor small church and last year they started paying me a small salary to cover my housing. What should I do if the amount I'm paid only covers my housing and nothing additional? I know that clergy taxes are different but I've never had to file them before. How should I file? I've filed an extension to be filed by Oct 16 but I don't know the process or procedure for filing for minister taxes. Pleas help. Thank you
Asked Wednesday, October 04, 2023 by Ryan F.Sign in to Answer
Gifting Money from Sale of Homes / Capital Gains Tax
Hello! We are selling 2 rental properties in California that have been owned for more than 2 years by our Dad. He's been renting them to me and my brother. Our Dad wants to transfer ownership of these homes to us, but we plan to sell them and move to Missouri in the next 3-6 months. Our plan is to take the Capital Gains hit. We're assuming the 2 properties will sell for 550,000 and the cost of them (including closing costs) will probably be about 225,000. This will leave us with 325,000 that we'll owe capital gains on. Since our Dad has owned them for more than 1 year, it seems like it's better to have him pay Capital Gains Tax of about 48,750 (guessing his tax bracket is over 100k) out of the money he receives for the sale of the homes and then to gift us the remaining funds and to file a 709 Gift Tax Form. Then we can purchase the new home (the 2 of us brothers are going in on a property together) in Missouri with the funds he gifted to us. Questions: 1. Does that sound correct? 2. Is there a better way to do this? (Dad isn't interested in a 1031 exchange and to continue renting to us, he wants to transfer the value of these homes to us, so we can handle it moving forward) 3. If my Dad gifts us the money, will it impact our personal taxes? Or do gifts not count towards income? 4. What kind of support would you recommend for this plan? A CPA? Thank you for your time, Dylan
Asked Tuesday, October 03, 2023 by Dylan and Makayla M.Sign in to Answer
Grown child with disabilities
I made 25,000 this year my son who lives with me made 24,000 survivor benefits with a back payment, his step dad is making 39,000. Can we still claim our son as a dependant? How should we file together or separate?
Asked Tuesday, October 03, 2023 by Marcie T.Sign in to Answer