Unanswered Tax Questions
CPAs - answer tax questions, and introduce your practice to potential tax clients.
How does it work?
IRA tax
I deposited $7,000 into my traditional IRA account this year. I invested the $7,000 in stocks and earned $1,000. I now want to transfer my $7,000 contribution plus $1000 earning from the traditional IRA to a Roth IRA account. However, I don't know how the tax will be calculated when I file my tax return this year? Do I only need to pay tax on the $7,000 contribution, or do I need to pay tax on the $8,000 ($7,000 contribution plus $1,000 earning)? I heard that people only need to pay tax on the amount contributed into the Roth IRA, but not on the earnings generated by the contributed amount, is this correct?
Asked Wednesday, May 29, 2024 by Peter S.Sign in to Answer
Which corporate taxes I should pay with ITIN?
I am a citizen of the Czech Republic, and I have registered an LLC in the State of Delaware. I work with neural networks (IT service) and have a website where I plan to provide clients access to my service for a fee. To accept payments, I need card processing in the USA. I encountered the issue that all processing systems require either an SSN or ITIN, which I do not have (I am a foreigner). Could you please advise me on the taxes I will need to pay in Delaware for the company (IT Service LLC) and as an individual if I obtain an ITIN?
Asked Saturday, May 25, 2024 by Kirill S.Sign in to Answer
how to file my taxes
Hello, since it's my first year with a foreigner LLC in Florida, I would like your help to understand how to file taxes, when, and where please. My friends are doing it right now, I could use some help understanding what to do here, also if you can help maybe? Thank you so much
Asked Saturday, May 18, 2024 by Sophie L.Sign in to Answer
PROFORMA
I am in the process of getting my allied health training facility approved by by by the dept of higher education but they are requesting that submit a proforma in order to finalize the application.
Asked Friday, May 17, 2024 by tamekka b.Sign in to Answer
Should I File For C-Corp Tax Status?
Hi there, I formed a multi-member LLC with 2 Canadians and myself. Since they are not residents of the US, we can't file for s-corp status. Do you know if there's any benefit from a tax perspective to change our tax classification to c-corp status? Do you recommend this? Instead of an LLC, should we have filed for a c-corp as an entity from the beginning? To give you some context, we are a dropshipping/online retail business. Any perspective would be helpful. Thank you for any recommendation that you might have. Jason
Asked Friday, May 10, 2024 by Jason W.Sign in to Answer
Tax ID Timing for a CRUT
My wife and I formed a charitable remainder trust in 2023 and contributed property to it. However, we did not apply for an IRS tax ID for the trust until April 2024. Can we still deduct the contribution on 2023 tax return so long as the tax ID is received prior to filing of the 2023 return?
Asked Monday, April 01, 2024 by Joel L.Sign in to Answer
Scholarship refund taxed?
I received a $10,000 scholarship from a third party that was sent directly to my university. Because I already have full ride, the money wasn't applied to my tuition and my school sent me the $10,000. I cannot uphold the conditions to the third party scholarship anymore so I returned the $10,000 back to the third party. When I receive my T-1098 later this year, it will state my school refunded me $10,000 which is technically income. However, I returned the money and therefore did not make any income off of it so will I need to pay taxes on it?
Asked Thursday, March 21, 2024 by Rudha F.Sign in to Answer
How to electronically file a Form 1098 as a lender.
We sold our last home to our neighbors and we carried the loan for them. The loan closed December 2022. In January 2024, I sent them a Form 1098 for the interest they paid us in 2023. I file my taxes electronically using the Free Fillable Forms on the IRS website. Our taxes are very simple as we are retired. There is no electronic Form 1098 on the IRS website. (like form 1099's etc). I thought I would maybe just list the interest we received with the name of the borrowers on the Schedule B of our Form 1040, but maybe I was supposed to mail the IRS a copy of the 1098 even if I electronically file the rest of my taxes. Please advise on what I should have done. If I was supposed to mail it to somewhere, I don't know where to send it and am probably late anyhow. IRS instructions for private owner lenders like us for the Form 1098 are hard to understand. Thanks for any advice.
Asked Wednesday, March 20, 2024 by Richard W.Sign in to Answer
Person or trust as the second in line beneficiary?
It is the time of life that my wife and I are setting up a trust to plan for where our IRA assets will go. My wife and I are co trustees in our trust. So if one of us dies before the other the transition is simple. My son will be the next in line to handle our affairs when we are both gone. My question is: Should my son be listed as a beneficiary or should I list the trust as the next in line beneficiary? My son will still be in control either way but is there an advantage to how I set it up?
Asked Wednesday, March 20, 2024 by Bill S.Sign in to Answer
Write off investment real estate loss
What form do I use to write off investment real estate loss? This is a dirt lot I had over 20 years and sale price was less than original purchase price.
Asked Wednesday, March 20, 2024 by Don B.Sign in to Answer