Unanswered Tax Questions

Home Ownership

Capital Gain Eligibility

We are selling our home because we need to move closer to our recently divorced daughter. She and her two sons will be moving in with us after the divorce is final. We had the home built and moved in December 2021 so we will be in it less than 2 years. We will have probably have about $200,000 in capital gains from the sale. Will we be eligible for any of the capital gain exemption due to the circumstances?

Personal Taxes

Roth 401k rollover to Roth IRA

Hello, I am looking for some tax advice on how I can handle my Roth 401k that I rolled over into my Roth IRA. I opened my Roth IRA in 2016 and I rolled my Roth 401k over into it last year. I contributed $19,000+ to my Roth 401k in 2019, 2020, 2021, and 2022, so I could take up to $76,000 out of my Roth IRA if I needed to right? What are the exact codes that should be on the 1099 form that Merrill Lynch issues to me for the withdrawal? Do we only need to say $0 in box 2a? And then use codes B and 2 in box 7 to ensure I pay no taxes, no penalties, and avoid an IRS audit? I reviewed these two resources to try to determine how Merril Lynch should prepare my 1099 for me. (https://www.dwc401k.com/form-1099-r-distribution-codes) (https://twonline-20.taxwise.com/Help/WebHelp/Content/IRS%20Codes/English/Miscellaneous_Codes/1099R_Codes_for_Box_7.htm) Thanks, Sean

Tax Forms

Maximizing my work paychecks/new W-4

I am currently going thorugh a divorce, and ive been instructed to redo my w-4. I get to claim all of my kids (dependants, i have 4 of them under the age of 17). I am needing to redo my w-4 so i can maximize my paycheck from work. Essentially i need to rework my w-4 so that i can get the max i can on my paychecks now, and come out to as close as i can for a $0 tax return every year (or close to it).

Personal Taxes

Free membership

Do I need to claim or should I receive a tax form from a boat club that provides a free membership and boat slip in excess of $600.00 to its officers. The club is in Connecticut

Tax Forms

Figuring the QBI deduction on annualized income

when using the annualized income installment method, on form 2210, schedule ai, line 9 you can enter you QBI deduction for each period. Since it is added to your standard or annualized itemized deductions then subtracted from you annualized AGI on line 3, logic tells me that the QBI deduction must be calculated using annualized income. Am I thinking correctly with this? Thanks in advance for any help

Tax Filing Tips

Just wondering about if I need to tax

Hey I have a question about receiving cash gifts in the mail. I have a huge follower base and I’m asking my fans to help support me getting a new car by receiving cash gifts in the mail and each one is willing to give me $2 and my goal is $9,600 so is that taxable if I’m a teenager making $200 a week from cash gifts or like would I need to file for taxes

Small Business

Business loan from myself to my business?

I understand that I can loan my business(sole proprietorship) from my personal savings using a promissory note to myself? Is this accurate? Can I make it for zero % interest? What needs to be included in the process. Can I then move money back to personal savings if needed? Do I structure them as payments etc?

Nonresident Tax Issues

Out of state tax

What are tax liabilities when using an out of state company for construction or retail?

Nonresident Tax Issues

Remote work from Florida for company in New York

Hi, I have just accepted a position in New York state (Long Island area precisely) and I live in Florida. I will be permanently remote with no work in NY. I have a friend that works for the same company and lives in Florida and they are taking out NY state taxes. My research indicates I should not have to pay state taxes. Can you verify the accuracy of this?

Bookkeeping & Write-up

Are lease termination fees for an operating lease accrued for? ASC 842 has not been implemented.