Unanswered Tax Questions

Frequently Asked Questions

Inheritance question

I recieved my non taxable inheritance through vanguard. My aunt said that I wouldn't be taxed on it but im afraid that since it was sent through vanguard that when I take it out that the government won't know that it is an inheritance and tax me on it.

Personal Taxes

Previous Tax return

Hello, two years ago I started working at the end of the year and I filed taxes. I am married and have two kids. My husband and I both agreed to file separately and claim one child. I have had no problems getting my returns but my husband hasn't gotten his federal taxes for those two years.( I went to a tax preparer he went to a family member) He told me the reason he hasn't gotten his taxes was because I claimed one of our children and hadn't worked very long and it put extra taxes or something like that and they levied his taxes. Is this possible or could there be any other possible outcome.

Miscellaneous

non profit for federal employee morale group

want to open bank account for EMPLOYEE MORALE GROUP for TSA employees at Myrtle Beach International Airport. We buy food items at SAMS and sale at a slight higher price and use those gains to host pizza parties for officers, ice cream days, and misc employee appreciation events

Payments and Penalties

Class Action settlement check

I received a class action settlement check. I filled out a W9. Hoe much will I owe in taxes..what percentage needs to be deducted

Investment and Finance

U.S business selling cryptocurrency for INR and transferring the INR into USD.

I plan to establish a company that engages in buying cryptocurrency in USD and selling it for INR through peer-to-peer (P2P) transactions. The company aims to accept INR as payment, but it needs to convert it back into USD using a currency conversion service. The business will generate profits by capitalizing on the price difference between cryptocurrency purchased with INR, which tends to be higher, and selling it for USD. This cycle of buying with USD, selling for INR, converting back to USD, and repeating the process enables the business to generate profits. I understand that INR is a restricted currency, and I want to clarify that my business will not be directly dealing in INR or holding it. Instead, the primary requirement is to find a reliable service that accepts INR payments when selling cryptocurrency and efficiently converts them into USD. This allows the business to facilitate transactions seamlessly while complying with any applicable regulations regarding the restricted nature of INR. Here are some questions that I have: * Are there any services that will automatically exchange INR payments into USD? If so, what are they? * Do any exchanges offer OTC (Over-the-Counter) P2P trading for larger amounts? * How would the business be taxed? * What are the tax implications of engaging in cryptocurrency trading and currency conversion activities? * How would the profits generated from buying cryptocurrency with USD, selling for INR, and converting back to USD

Deductions and Write-Offs

Passive Income Gains/Losses and Oil & Gas Lease Bonus

1. I have $1,500 of net rental real estate income derived from a Schedule K-1. 2. I have $10,000 net rental real estate loss derived from a 2nd Schedule K-1. 3. I have $100,000 Section 1231 gain (sale of S-Corp rental real estate property) from a 3rd K-1. 4. I have a $30,000 Oil & Gas Lease Bonus paid to me individually (less $1,500 in legal fees). a. Is the Oil & Gas Lease Bonus paid to me individually considered passive income and does it belong on Form 8582 with the other passive income gains/losses from the K-1's? b. Can the $10,000 net rental real estate loss be deducted from the $100,000 Section 1231 gain? Or can only a portion of it be deducted from the $1,500 net rental real estate income with the rest carried over? c. How and where are each of the passive gains/losses listed on Schedules D & E respectively?

Miscellaneous

Crypto

I purchased roughly 65 dollars of bitcoin to conduct an online purchase. I never sold any just used it to make a purchase. Will i need to report this on my taxes.

Deductions and Write-Offs

How mileage deduction works

Hi. I am exclusively doing gig work (1099) so far this year. I've made $16,000 so far and have a mileage deduction of $7600 so far. Yes, I drive that much. How does that work? Does mileage deduction come off earned income total before tax or off the amount of taxes owed? In this case, earning $1000 week a driving 1000 miles per week, what % should I save for taxes? I'm in Michigan. Thanks

Miscellaneous

Tax Reporting Liability - Group Facillitator

Hello, I will be running a craft table where several artists will have their art for sale. I am collecting and distributing the money, but we are all just individuals. Am I liable for the whole table as the person counting and splitting the money (ie. do I need to make 1099s for everyone?), or is it ok to just say everyone is responsible for their own income reporting/sales tax paying once the money from the table is divvied up?

Frequently Asked Questions

Can I claim myself as a dependent