Unanswered Tax Questions

Personal Taxes

Are shared household expenses considered income?

My adult children still live at home. My husband and I own the home and also reside in it. If we collect money from them to defray the cost of household expenses (such as groceries and utilities) would we be required to report that as income?

Personal Taxes

Capital Gains on sale of investment property

Deductions and Write-Offs

What happens to DCFSA funds if spouse is not seeking work

I set up a Dependent Care FSA with work to pay for childcare expenses. However my spouse is not working or seeking work, and so it seems like these expenses do not qualify. What happens to these funds? Are they all forfeited? Can I reimburse my expenses from the FSA but not claim the deduction? Thank you.

Personal Taxes

Gambling winnings

We won approximately 10k using Form 1099's, but we had 10k plus in ATM withdrawals from casino. My winnings should zero out my winnings right?

Tax Filing Tips

Where do I file my taxes

Hello, I have a bit of a complicated situation. I recently formed a Wyoming LLC through a registered agent. I am active duty military and stationed in Hawaii. However, my home of record is Washington state. All of my personal taxes are taxed through Washington state laws. My Business (LLC) is %100 online and is making money solely on commissions from digital products. I have no physical office anywhere (I work from my laptop/phone), I do not sell any kind of products myself, and I am the only member/owner on the LLC. From my understanding I DO NOT have to register my LLC in Hawaii or Washington as a foreign LLC since it technically is not doing any business in either one of those states specifically. So when I file my taxes for my LLC does it fall under Wyoming state laws or Washington (to go along with my personal taxes). My EIN does have its own EIN and the application for it to be taxed as an S Corporation is already in the works. Please let me know if you have any questions. I hope to hear from you soon! V/R, Arthur

Personal Taxes

Barn rental on a farm

MFJ return, has 80 acres and started a farm in year one of purchase of property (2021). Rental of barn 1 to an individual who lives in the upstairs barn and uses the rest of the first floor of barn stalls for horses owned by the renter. Barn also has a small arena. Property owner received 60k of rental income in 2022. Rest of farm is used by owner for breeding livestock (horses, cows, etc). Built another barn for about $300k to house their livestock. Typical farm expenses of feed, vet bills, property taxes, etc. Questions are how to treat the following. 1. Is barn 1 rental income schedule E and income is passive or is it possible to be included in schedule F? 2. Is barn 2 eligible for bonus depreciation? (barns are 20 year life so thinking bonus depreciation is an option). 3. New barn also has an apartment upstairs. Taxpayers are thinking either short term rental for horse shows (Airbnb) or long term (standard rental) in later 2023 or 2024). Does this impact 2022 taxes or not an issue until they actually have a tenant then what are the future tax issues? Husband is a physician. High income earner ($2M K1). Farm had minimal income but a lot of expenses in year 2 (2022)

Credits

Plug in hybrid rebate

I bought a 2016 Cadillac ELR plug in hybrid and was wondering if I can get the rebate even tho Im on SS with a small pension but dont have to file. Do I need earned income to qualify?

Tax Forms

Help on form W4P for 401K

My husband and I are both retired and receiving Social Security. I also have a 401K that I started receiving from when I retired in February. The amount is $1000, do I have to have federal taxes taken out of it?

Tax Law Changes

401k taxes on early withdrawal

Deductions and Write-Offs

Vehicle Expenses

After a work vehicle is fully depreciated, can I then deduct mileage in subsequent years?