Unanswered Tax Questions

Tax Filing Tips

Keeping Inventory and Accrual method

Hello, I am a very small business owner in Maryland, I make beauty products , lip gloss, lip oils, lip scrubs and body oils, and I would like to know what is the best method to choose on my schedule C form of my taxes, accrual or cash. Also, do I have to keep and value my inventory for taxes? Thank you

Retirement

Payment to irs

I sold my home of 26 years in 2022. What write-offs can I clam to get the amount owed down

Home Ownership

Recasting mortgage, avoiding capital gains tax.

My wife and I recently moved back to our home state and purchased a new home in order to move my aging parents in with us to take care of them. When they sell their home they were going to give us a portion of that money to put towards the new home. We were then going to make a lump sum payment, recast the mortgage and add their name to the mortgage. My question is what would be their tax liability? For example, if they sell their home for $400,000 and give $250,000 towards the new home purchase is their tax liability going to be on the remaining $150,000? What can they do to avoid the capital gains tax, if any?

Credits

EV Tax Credit

I plan on purchasing a Chevy Bolt Euv this year which qualifies for the $7,500 tax credit. My question is how can I utilize this tax credit so that I can get the full $7,500 tax credit. Should I work more so that I owe more in taxes to balance it out?

Miscellaneous

IRS Letter

What doe "waiting for tax account information to become available mean?" thank you

Bookkeeping & Write-up

Intercompany loan and exchange rate realized and unrealized category

We just started to repay a intercompany loan that was made to us in Euros. Of course I have a massive loss. We have paid half of the loan off with 89k in exchage loss. But because of the journal entry, the unrealized loss is currently 84k but I don't know what to do with this. My reading states both go on the PNL but I wonder should the unrealized (or both for that matter) should be on the balance sheet until it is fully repaid and fully realized?

Miscellaneous

Capitial Gains tax in an irrevocable trust

My mother's home was placed in an irrevocable trust in 2022 and the trust sold the house after she passed in 2023. Is the sale of the house subject to Capital Gains tax to the trust or to the beneficiaries? Is so, at what rate?

Investment and Finance

Capitol Gaines

Do you have to pay capitol gains taxes when withdrawing funds from a mutual funds account (non-ira) to purchase a home that will be our primary residence?

Personal Taxes

Taxability of Reimbursement

My divorce attorney did not submit my financial paperwork to the court properly. As a result, I was required to transfer $40K from my 401(k) to my ex-spouse that I wouldn't have otherwise been required to. I have reached an agreement with my attorney's law firm that they will reimburse me the $40K. The law firm has stated that they will not be providing me with a 1099 form in January. Will this $40K that I receive need to be included in my taxable income when I file my taxes next year?

Tax Forms

Filling out W4 for WI salary job 3 kids husband doesnt work