Unanswered Tax Questions

Deductions and Write-Offs

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

Miscellaneous

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?

Nonresident Tax Issues

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.

Miscellaneous

Question Please

I live in AZ a community property state. My spouse has a $70,000 "business" loan apparently I just found out about. If I were to divorce him financially would I still have to pay this debt if something happened to him? Please advise. Christina tchristina773@gmail.com

Nonresident Tax Issues

Illinois Non resident correction notice

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 NC state tax that was deducted as I am NC 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.

Personal Taxes

I want to know how much I can make per year in MN being retired and taking social security and pension

Deductions and Write-Offs

Lease or Purchase EV Vehicle

Background: I’m deciding between 1) Purchasing a Tesla Y for approximately $57,000, $10,000 down, payment of $776.00 per month, 72-months, car weighs less than 6,000 lbs, 2) Lease a Audi Q4 Etron, $55,000 lease price, $10,000 down payment, $596.00/month, 3-year lease, car weighs less than 6,000 lbs. I file married with my spouse and our taxable income will be approximately $75,000 - $100,000. We are both realtors (independent contractors) and use the vehicle at least 70% of the time for business. Questions: 1) Which is would be a preferred option purchase or lease? 2) I know the Tesla Model Y will qualify for the $7,500 ev tax credit. Will I be able to qualify for this ev tax credit based upon filing as independent contractors and married couple? 2) IF I am to purchase the Model Y with a loan would I be able to depreciate $20,200 for tax year 2023, write off actual usage expenses (electricity charging fee, maintenance, repairs, insurance, etc), write off the interest paid and if there is any other applicable expenses I could write off (please list)? 3) IF leasing is the preferred option, I know the Audi Q5 Etron does NOT qualify for the $7500 tax credit. Would I be able write off the monthly payment of $596.00/month, actual expenses, would depreciation apply ($20,200 for tax year 2023), actual expenses (gas, maintenance, repairs, insurance, etc) 3) We will be purchasing or leasing either vehicle under our personal names (also our business names).

Miscellaneous

Payroll taxes

I noticed on my payslip that my employer(state university) is not taking state or federal taxes out. When I asked about it this is what I was told: The IRS charts change at the beginning of each year to allow for the standard deduction increase. For a biweekly employee, in 2021 the first 965 has no tax withholding, then for 965-1731 they withhold 10% on the income above 965. In 2022, the first 996 has no tax withholding and then 10% on the income above 996. You income is taxed after the pretax deductions are deducted and in 2022 the insurance premiums increased which made your taxable income lower". Is this correct, if so what should I change to make sure I don't have a huge bill when I file.

Small Business

Buying another similar business; I have a quick question about the structure.

I'm days away from purchasing another small business. I would like to retain it's name (good customer awareness). Should I try and keep it a separate business? My current plan is to dissolve the new business (SVPC), and add it's name as a DBA my current business (FoaF). Any advice on the structure of a purchase like this. Is there another, better way to structure it?

Personal Taxes

Reporting Requirement of Gifts above Annual Limit in case of non-spouse joint donors

I am a US Green Card holder in the US and currently hold a savings account with a bank in Singapore. The account is held jointly with my mother who is a ''Non-Resident Not a US Citizen''. In Feb 2022, I received a Wire Transfer amount of USD 25,000 in that Singapore account. I then transferred the sum of USD 25,000 from my Singapore joint account to my US Bank account in Chicago which is held in my name jointly with my father ( who is Non-Resident, not a US citizen). Subsequently, in the same year, I withdrew the money from the US Bank Account. Question: a) Given that I am a holder in both the remitting account (Singapore) and receiving account (USA), I believe I am both the donor and donee, and hence the wire transfer is not considered a gift. Is this assessment correct or b) If the wire transfer is considered a Gift, then am I required to file a Gift Tax Return (Form 709) and also include this amount in the Tax for 2022 given that the sum of USD 25,000 is greater than the Annual Limit of USD 16,000, Or c) Given that the transfer is happening from a joint account, the gift amount attributable to me is only half of USD 25,000 i.e. USD 12,500. Since my share of USD 12,500 is less than the Annual Limit of USD 16,000, there is no gift tax reporting liability on my side To clarify further, the aggregate amount of funds I received from Non-Resident Alien during the 2022 tax year is less than USD 100,000 so there is no requirement to report under Form 3520