User Submitted Tax Questions
Read Questions Asked by Users and the Answers Provided by CPAs.
View All Tax Questionsinheritance tax and ira account
For PA Rev-1500 schedule E do I JUST put my brokerage acnt that was already taxed or do i also put the traditional IRA that has already been given out to the beneficiaries? I think the trad IRA part is NOT taxable on the inheritance part but I am not sure.
Asked onFriday, June 23, 2023 by ElizabethCPAs - Sign in to Answer
How to fix,taxes that have been red flaged
I do taxes for my xi husband I figure all recipes, get the totals broke down Take to CPA I help her with the file information Taxes have been done, sent off. My problem is she passed away and the next day it came back red flag
Asked onFriday, June 23, 2023 by LisaCPAs - Sign in to Answer
Purchasing asset under the business
Hi we have a unique business where we attend a lot of outdoor airsoft and paintball events and sell as a vendor. In that environment we often camp on the grounds and claim food and mileage. We have used an RV owned by us personally, but never claimed anything for it's use. We are in a situation where we need to purchase a new RV and I am wondering, since it is used exclusively for business, is it better to buy it under the business and have it as an asset or buy it personally and rent or lease it to the business? If we were to purchase as a business asset, can you rent out the RV for additional business revenue like we were doing personally before?
Asked onThursday, June 22, 2023 by JenniferCPAs - Sign in to Answer
EV Credit vs. Section 173 Self-Employed in Tennessee
I am trying to figure out how to qualify for a tax write-off or deduction on the purchase of a new Tesla model Y. My husband has W2 income that is over the threshold to qualify for the personal EV $7,500 write off. However, I am a part-time real estate broker in TN, and I will be earning at least $25K in income (commission from a real estate sale) in 2023. Could my self-employment brokerage business qualify for the $7,500 tax write off? If not, would I want to consider a section 173 write off? My only concern there is depreciation recapture as well as the reality that business use of my vehicle is very minimal (vs. personal use) due to my part-time work. I'm also considering going back into employment full time next year (vs self-employment). Please advise! Thx
Asked onThursday, June 22, 2023 by CaitlinCPAs - Sign in to Answer
How to assign cost basis on inherited stocks
I retired the same month I inherited stocks from my dad (this timing was not planned!) Dad's stocks were well-chosen, mostly decades ago, and paid him good dividends. This has also been a volatile time in the stock market, and some of them have lost value since he died in June 2022. I understand that I can assign the cost basis for individual stocks to be either the day he died or 6 months after. What should my strategy be? Do I want a lower cost basis or a higher one? Dad did an excellent job with his investments, but I will definitely be changing some of them, once I get my footing in all this. This is the last year I will have an income from employment, which I believe will be about $75,000.
Asked onThursday, June 22, 2023 by SandiCPAs - Sign in to Answer
How to know if you need a new EIN
If a single member LLC sells their company to a new owner, will the new owner need a new EIN, if the original owner is filing as a disregarded entity. The IRS told me you can only transfer the EIN to the new company if the old company is filing as an S corporation, but there has been some confusion/disagreement. And in this example, if a new EIN is gotten a few months after the sale, is there a different way to file taxes the next year for the few months when the old EIN is being used, since it would be two separate people filing with the same EIN. One last part, if an IRS form 8822B is filled out for change of responsible party, I believe that only changes who controls the LLC, it does not transfer the EIN to the new person. Thank you for your help.
Asked onThursday, June 22, 2023 by TracyCPAs - Sign in to Answer
Business Law in Accounting
Hello, I just wanted to know how big of a role does Business Law play in Accounting, and how has it affected you in your role?
Asked onWednesday, June 21, 2023 by JosiahCPAs - Sign in to Answer
Married but filing single
My husband and I are separated, not legally. His choice was to file this way. He claimed me as a dependent on his taxes without asking me. I've already done my taxes and I don't even know if I could have claimed myself or not because I owe in $95 to the IRS I just want to make sure that it's legal that he claimed me. We do own a house together. So maybe he could do that as head of household.
Asked onWednesday, June 21, 2023 by KellieCPAs - Sign in to Answer
Hardship withdrawal from my 401k
I'm thinking of taking a medical hardship withdrawal from my 401k. I am in New York state. Principal (the 401k holder) claims that they withhold 10% to pay taxes on the withdrawal and will 1099 me in January. Will this 10% null any increases to my state and/or federal income tax for 2024?
Asked onWednesday, June 21, 2023 by DavidCPAs - Sign in to Answer
ACA Insurance or Company Insurance
My S corp pays all of my medical insurance for my wife and I . We have no employees. I've semi-retired and moved to FL. Would I be better off expenses my medical cost with the business or getting a private policy through the market place, ACA? Example Blue Cross Insurance $1600 a month with the government crediting $1200 a month, net cost $400 a month.
Asked onWednesday, June 21, 2023 by SteveCPAs - Sign in to Answer