Unanswered Tax Questions
Questions Asked by Users That Have Not Recieved a CPA Response.
View All Tax Questionsavoiding state inheritance tax
Asked onSunday, September 03, 2023 by DavidMy mother is a widow living in PA which has a 4.5% inheritance tax. I am looking for ways to eliminate or reduce this impact. Her estate is about 1.5m of which she has a house valued at 350k, cash of 350k, and investments of 800k. She owns her home outright where she bought it for 220k and the current market value is 350k. If she transfers the house in her will then the estate would have to pay the inheritance tax on 350k. Is it possible that she gifts me (her son) 350k in cash. I file the irs form indicating the gift but no taxes since below the lifetime exclusion. i then buy her home for 350k and pay the 2% transfer fee for PA. She doesn’t pay capital gains as it is under the 250k exclusion for her primary home. She then gifts me another 350k cash from the sale. So her estate is 700k less. As long as she lives for 12 months then I think that avoids inheritance tax on the 700k and avoids the capital gains. Is this allowed?
Receiving a W9 from a client and providing a 1099.
Asked onSunday, September 03, 2023 by EVDoes a law firm have to provide a W-9(in order to provide a 1099) to certain clients? Who and Why?
Estate federal tax in California.
Asked onSunday, September 03, 2023 by DanaDo I pay a federal income tax on estate under 50000?
business loaning money
Asked onSunday, September 03, 2023 by CarterI have one business that has been running since 2008. I have another business idea and want to start a second business. The business will make cash and I would like to know if the 2nd business can loan myself money payable at a lower rate than what I am paying on my credit cards ? I don't want to pay 19% if my second company can loan me at 4%. Is this wise ?
Federal EV Credit
Asked onSaturday, September 02, 2023 by KunalDo you have to own the vehicle at the time of claiming the federal tax credit? I bought one earlier in the year and am considering switching my config because the math means I’m getting a very good deal to trade in my current car and get one from inventory. But this only works if I can claim the tax credit twice. The irs website doesn’t say anything about having to own the car at the time of claiming the credit, how could I confirm this one way or another?
Paying Capital Gains Tax from the selling of a second house I own
Asked onSaturday, September 02, 2023 by SteveI currently own a house that I rent to a relative that has a mortgage of $34K and has an appraisal value of well over $100K. If I sell at the appraised value what would be my capital Gain? If I take an equity loan on the house for the maximum equity allowed, then I sell, what would be my Capital Gain?
California lottery winnings but am a South Carolina resident
Asked onSaturday, September 02, 2023 by JaimeIf I earn $100,000 a year but win a $75,000 lottery ticket in California but am a South Carolina resident, how much do I pay in taxes on that lottery ticket?
Employer Taxes
Asked onFriday, September 01, 2023 by SamanthaI am an office manager trying to figure out what amount of taxes for payroll need to be paid, and I cannot for the life of me figure out each amount. Help please!
Capital gains on selling the house
Asked onFriday, September 01, 2023 by LeaHi, My husband passed away a couple of months ago this year. I heard that if I'll need to sell our house this year the tax exemption for capital gains would be $500,000 because I can still file jointly tax for 2023, is it correct? Does this exemption apply to 2024 and 2025? My taxable income each year isn't high, do I still have to pay capital gains on selling the house? Thank you for your help!!