Unanswered Tax Questions
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Reunion - Registration Fees and Donation
We are hosting a family reunion. Do we have to file taxes if we collect, save it in a non-interest bearing account (EIN-for banking purposes only) and spend all money collected, approx 100K? Is the donation money tax deductible for anyone donating? Can I registration money in 2023, keep it in the bank, and use it in 2024 and still not file for 2023?
Asked Monday, July 31, 2023 by Ketan P.Sign in to Answer
Sale of a condo
My mom is 82 and her only income is social security, dividend/interest income, and takes a small distribution from my deceased dad's IRA. I would guess her total income is around 45k, maybe less. My dad died in 2009 and we just sold her condo in FL and she moved into an assisted living facility in Georgia. After the commissions and fees her net from the sales was $647,000. The condo was bought in 1990 for 91k and it was worth 227k when my dad died in 2009. She put 50k in improvements into the condo so by my calculations her cost basis is $209,000. After she takes the 250k exemption I think she would be taxed on $188,428 of long term capital gains. My question is if she doesn't have much income in 2023, 45k or less, will she have to pay capital gains on that 188k or is her income too low. If she does do you know the percentage because if she does I would want to pay estimated taxes. If she is close to the income threshold of having to pay taxes on that 188k is there a way not to take social security temporarily or do we put the money from the sale into an account that doesn't pay interest?
Asked Monday, July 31, 2023 by David P.Sign in to Answer
Limits for qualified business deduction
Both my husband and I (married filing jointly) have W2 income, I also have substantial 1099 income in healthcare. What are the limits to get the qualified business deduction and does it pro rate over the limit?
Asked Monday, July 31, 2023 by Cassandre L.Sign in to Answer
Boat taxation in California.
If I purchase a boat in California, do I pay sales tax and a luxury tax to the state at the time of purchase ? Do I pay a federal luxury tax ? Do we pay a luxury tax every year and personal property tax on the boat. People I know are getting these luxury tax bills on the boats, lots of confusion over it.
Asked Sunday, July 30, 2023 by Kevin R.Sign in to Answer
what do I need to startup
I'm setting up a small side hustle selling handmade pottery. I'm also going to operate as a notary public and possible a loan signing agent. I'm in Virginia. What is the best path for me? Setting up an LLC as an umbrella to cover all options, and then a DBA for my pottery business? Is an llc a good path to even take or is it unnecessary?
Asked Sunday, July 30, 2023 by m m.Sign in to Answer
Taxes for American citizen opening business abroad
Hi there, I am an American citizen that has been living in Qatar since before I was eligible for taxes and always have filed my income as 0 as an international. I am in the process of opening a business here in Qatar with a partner and I have the following options in regards to the Commercial registration structure. At the moment my partner is planning on being 100% owner and then we have an internal agreement to split profits. This would help us circumvent local tax laws which don't apply if the owner is a local (such as my partner) Therefore I would be paying taxes on the profit as of it were my income. I could also take some share in the company (up to 49%) but then we would have to pay taxes here locally. My question is then, what structure would allow me to play as little tax as possible
Asked Saturday, July 29, 2023 by Abdullah S.Sign in to Answer
As successor trustee, file 1041 before or after distribution
I am successor trustee of my parents trust. We sold their house which was only thing in the trust. I’ve deposited that into trust bank account. Their cash was left to me payable on death. Can I deposit this cash into trust account and then distribute evenly between myself and 4 siblings? Do I file 1041 before or after distribution. And what are my tax implications personally?
Asked Saturday, July 29, 2023 by Kimberly Z.Sign in to Answer
Roth conversions vs losses in same year
In 2021 I converted traditional Ira money to a Roth. I paid for the conversion and then had to pay taxes on this as income since I took money from my traditional ira and converted it. During that same year I had losses in my 401 solo account exceeding those gains mentioned above but I didn’t count those losses that year. Can I go back 2 years and count those losses to possibly offset the gains I paid taxes on? I was hit hard with the converting to a Roth from a traditional Ira and then had to pay taxes on the money I took out to convert. Thanks
Asked Saturday, July 29, 2023 by Darrell W.Sign in to Answer
Trust financial reporting process
After having failed to provide annual financial reports on a trust since 2019, the trustee now says his CPA has completed "everything except 2019." It seems unusual that they wouldn't be prepared in chronological order. Is that indicative of some creative accounting?
Asked Friday, July 28, 2023 by Esso B.Sign in to Answer
state tax return correction notice non resident
I had filed for IL state tax 2022, because my employer mistakenly deducted IL tax from my one paycheck mistakenly. And told me they cannot correct it I need to file tax, and now I have gotten correction notice saying its missing schedule NR which I remember I filed and have charged me in error considering me a IL resident which I was not for full year. My employer is not giving me any letter regarding this. IL tax deduction was shown in my W2 along with current state tax that was deducted as current state resident. How shall I proceed to resolve this? I am being asked huge amount and interest is being charged on it which is all in error owing to Illinois gov.
Asked Friday, July 28, 2023 by Twinkle P.Sign in to Answer