Unanswered Tax Questions

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Personal Taxes

Is a lump sum payment for a promissory note subject to being taxed?

I was offered $90k to sell a promissory note. I would like to take that offer. Once I get that lump sum, am I going to be expected to pay taxes on it? Thank you, Mark Chang 202.491.0307

Asked Saturday, August 26, 2023 by Mark C.
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Personal Taxes

Capital Loss Offset & Carryover

I lost 1 million from real estate development investment. If I gained 300K from stock investment, would I be able to offset the capital loss? Also, If I gained another 700K next year, would I be able to offset the rest of the capital loss?

Asked Friday, August 25, 2023 by RICHARD C.
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Credits

EV Tax Credit As Self Employed

I’m self employed and have been looking into purchasing a new 2023 tesla model 3. I qualify for the $7,500 federal tax return, and want to double check that the “self employment tax” that I pay is categorized as federal, so I can take full advantage of this credit rebate. Thanks.

Asked Friday, August 25, 2023 by Carter N.
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Personal Taxes

Changing filing satus

Hello, I have been claiming Head of Household for the past three years but will file as single this year. Will this trigger an audit from the IRS?

Asked Friday, August 25, 2023 by Larry S.
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Personal Taxes

Rental income

I need help with taxes related to rental property. My wife and her 4 siblings have a quick claim deed for a house. The house has been rented to my son for the last few years and at below market value. I run all the rental income thru my taxes. Is that ok? Next, I have forgotten in the past to put how many days the property is used for personal use. Because of son living there. But I have put down that it was rented below market value. When I change the return to show that personal use was at 365 days last year it does not change any amount due. Can you help answer these questions?

Asked Thursday, August 24, 2023 by Sam S.
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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?

Asked Thursday, August 24, 2023 by Stephen C.
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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

Asked Thursday, August 24, 2023 by Sean O.
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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).

Asked Thursday, August 24, 2023 by John M.
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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

Asked Thursday, August 24, 2023 by Jeff M.
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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

Asked Wednesday, August 23, 2023 by John B.
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