Unanswered Tax Questions

Business Formation

Will NOLs and other losses like depreciation be transferred from prior years taxes if the sole prop is changed to an llc?

Currently the business is a sole proprietorship but want to change to LLC then scorp. Will NOLs and other losses like depreciations be carried over to the LLC?If so how far back in taxes will this go? There are three rentals and also IRAs that will all be separate LLCs. Also will carryover losses from IRAs transfer to the llc too? If so how far back or how many years?

Payments and Penalties

1099s

July acquired a home through probate. Sold home yesterday. Was given a 1099 s. If the amount on form is $185,000 how much tax will my husband and I owe It was not our residence

Deductions and Write-Offs

Crowdfunding Taxes

Hello. I'm an actor and filmmaker creating a small-scale cinematic project. My intention is to secure funding through a crowdfunding platform such as Kickstarter, IndieGogo, Seed&Spark, or GoFundMe. I have a query regarding the financial aspect: If I successfully raise funds in 2023 but get to the actual filming in 2024, how will these funds be treated in terms of income and expenses for tax purposes? Specifically, must I report the donations as income in 2023, even though we won't start incurring filming expenses until 2024? Additionally, can I offset this potential income by claiming a loss in 2023 before our filming activities begin in 2024?

Deductions and Write-Offs

K1 Passthrough expenses

I have a K1 where Line 13W has a dollar amount in it. The following warning comes up after I enter everything into the computer system (below.) Are pass through expenses deductible and where would I add these in if they are deductible? I looked under "Miscellaneous deductions" but none of the categories seemed to fit this situation. Computer System Warning: Enter Other Deductions Elsewhere Amounts entered in Box 13 of your K-1 with a code of W for "Other Deductions" need to be entered on the appropriate screen based on the type of deduction. The K-1 should have a description that explains what type of "Other Deduction" is contained in Box 13. K1 Information: LINE 13 - OTHER DEDUCTIONS ========================== W OTHER DEDUCTIONS ------------------- OTHER DEDUCTIONS INCLUDED IN ITEM L, CURRENT YEAR INCREASE (DECREASE) OTHER PORTFOLIO DEDUCTIONS XXX (hidden for privacy.) FROM PASS-THROUGH ENTITIES XXX (hidden for privacy.) TOTAL BOX W 928. --------------- ===============

Small Business

Can i Deduct inventory right away when purchased

Can i Deduct inventory right away when purchased under cash method

Miscellaneous

Do I have to pay a gift tax if I buy someone a 175K car?

Deductions and Write-Offs

I just got married and they quit withholding federal taxes

I just got married in July and my employer changed my marital status and now there not withholding federal taxes is this going to effect my tax return

Nonresident Tax Issues

Failed to pay sales tax- let them pursue or pay actual which is much much higher?

I received a letter from the irs last week saying I had failed to pay my sales tax from 2021. If I did not do XYZ (submit this that and the other), they would outside collection of what they estimated the amount to be. My question is what is the disadvantage of letting them pursue collection? It would be significantly easier for me and likely be much less money. Does it hurt my credit or anything like that? And if I choose to go that route do I just do nothing and wait for them to make the next move?

Miscellaneous

My employer says im not making enough money for federal taxes to be taking out of my check that cant be right.

Personal Taxes

Disability

I am on soc sec disability and can’t afford to put aside taxes from alimony and live. Is there some way they would excuse the taxes?