Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax QuestionsFamily Loan & No Gift Tax
Asked onThursday, September 28, 2023 by DannyI am getting a zero percent loan from my mom for $75000. Paying back $625 month for 10 years. How do we write promissory note so it doesn't trigger gift tax.
Starting a new business in another State
Asked onThursday, September 28, 2023 by MaryWe own a fence company in Massachusetts its an S-corp. We are residents of Massachusetts but go to Florida for the winters. We want to do subcontracting work for other fence companies when we are in Florida. We will need to buy a truck, trailer and tools down there. Which of the following should we do: 1) Register our existing company as an out of state business in Florida and put our pay as subcontractors through our existing company? If we do this do we just set up an income category as subcontracting income? 2) Just do 1099's in our personal names and just be sole proprietors and file a Schedule C. 3) Register a new S-Corp in Florida? Or do you gave another suggestion? Any tax or other implications we should be aware of for any of the above options? Thanks so much. Mary Hughes
Inheritance tax
Asked onThursday, September 28, 2023 by PatriciaInheritance is in a savings account earning 4.25% since 1/1/2023. Lawyer said we cannot get our inheritance because the interest needs to be reported to IRS. Please help.
S Corp dissolved 13 years ago - need advice
Asked onThursday, September 28, 2023 by CathyWe dissolved our S Corp 13 years ago in Florida. All debts, etc were handled and it was dissolved properly by our accountant at the time. We had a few outstanding judgments owed to the S corp at the time but honestly thought they would never be collected. Well lo and behold someone who owed us (the S corp) money has come out of the woodwork and wants to satisfy the judgment. We were the only 2 shareholders in our S corp. I am not sure how to handle the receipt of the money for tax purposes (assuming the person actually follows through and sends the money). I have asked for the check to be made payable to the business name and my husbands name (so that it can be deposited and so that I can do a proper Satisfaction of Judgment). Do I just claim it as personal income? Do I do nothing with it? We ran our books as cash basis (if I remember correctly). I usually handle our taxes now because they are not that complicated, but not sure how to proceed with this. Thanks!
Employment overpayment
Asked onThursday, September 28, 2023 by YvetteI was overpayed by my employer and want to know how this can be fixed on my w-2 after returning the overpayment
Plasma donation reporting.
Asked onThursday, September 28, 2023 by HienDo I need to report money I make donating plasma?
prepare an income statement
Asked onWednesday, September 27, 2023 by zwivhuyaAll inventory is valued on a first-in-first-out basis. • During July 2023, in addition to producing and selling the regular girl’s and ladies’ clothing, Courageous also produced ladies’ overalls, men’s overalls and unisex overall jackets. • The accounting team prepared the following extract from the company’s Statement of Profit or Loss and Other Comprehensive Income (SPLOCI) for the month of July 2023: SPLOCI July 2023 R Revenue 26 318 850 Cost of sales (16 544 762) Gross profit 9 774 088 Operating expenses (11 900 000) Net interest expense (385 000) Profit before taxation (2 510 912) Current taxation 652 837 Profit / (Loss) for the month (1 858 075) • Assume that the cost of sales amount given in the extract from Courageous’ SPLOCI is comprised as follows: Product Type Composition of cost of sales Fixed cost portion of cost of sales Girl’s clothing 21% 19% Ladies’ clothing 34% 8% Ladies’ overalls 14% 7% Men’s overalls 25% 6% Unisex overall jackets 6% 8% • The fixed costs included in the product cost in cost of sales are allocated to the products based on the actual number of units produced. Assume that Courageous has a fantastic team of financial planners and the actual amount of fixed costs allocated to production during the month is equal to the actual fixed costs incurred during the month. • Assume that the operating expenses are semi-variable and are comprised as follows: July 2023 June 2023 Sales expenses R2 616 003 R2 595 600 Distribution expenses R6 104 007 R
How is the AGI affected by capital gains vs capital losses?
Asked onWednesday, September 27, 2023 by DennisPosing a hypothetical question for educational purposes: If a married couple, filing jointly has a $30k long term capital GAIN from the sale of a mutual fund & also has a $20k long term capital LOSS from the sale of a different mutual fund, does the AGI increase by $30k or would the AGI increase by $10k ($30k minus $20K). Thanks
See question in notes please
Asked onWednesday, September 27, 2023 by AngelI own a HVAC company and I let one of my good friend of mine, basically he’s a subcontractor and I let him work under my license and he scored a $400k job. He’s the one doing all the work and I just sit and look pretty meaning he’s taking most of the revenue. My question is how can he take responsibility for the taxes? Does it have to come back to me? Does he have to do a 1099? Basically how can I make him responsible for the taxes on that job he did under my license.
Ihss income and the CaEITC
Asked onWednesday, September 27, 2023 by RonaldHello there. I provide ihss services to relatives I live with and they pay me out of pocket in cash. I am not paid by Medicaid waiver program or any other state or local program. I am paid in cash. Is this considered as earned income?