Ask a CPA

Deductions and Write-Offs

Home Office Deduction and Reimbursement Structure for Manager-Managed Partnership LLC

Asked Monday, June 15, 2026 by May

We are a manager-managed LLC taxed as a partnership. Managers are required to maintain a home office so which is the better approach: 1. LLC reimburses managers for home office expenses and deducts them as business expenses. 2. No reimbursement; managers claim home office deductions on their personal tax returns. Can managers report reimbursements as non-taxable? How are mortgage interest and property taxes treated if reimbursed? Which option is more compliant and tax-efficient?

Nonresident Tax Issues

Non-US owner of New Mexico LLC - filing requirements

Asked Sunday, June 14, 2026 by Mykyta

Hello, I am a non-US resident and the sole owner of a New Mexico LLC. My LLC was formed on December 31, 2025. An EIN was obtained on May 5, 2026. No US tax forms, information returns, or other filings have been submitted yet. The company has been used for e-commerce activities. I would like to know: What federal tax filings are required for my LLC? Have any filing deadlines already been missed? Is there currently any risk of penalties? If penalties may apply, what is the best way to corre

Business Formation

Setting up business in Idaho as foreign entity

Asked Thursday, June 11, 2026 by Wonda

Today I set up through NW Registry a Holding company in another state. Since we are physically located in Idaho but launching mostly digitally it was suggested we set up a Idaho foreign LLC under the holding company. We also would like to be able to do booths locally at events or even out of State to sell printed items. What is the best way to set this up and keep my name private as owner and have correct taxes?

Retirement

How do I maximize my 2026 standard deduction?

Asked Wednesday, June 10, 2026 by G

I am 69 and my husband is 75. In 2025, I worked full time and had plenty of taxable income to apply against our $46,000 standard deduction. This year, I am retired. I have postponed receiving social security and will have no W-2 income. We expect our '26 taxable income to be only around 6K. We want to use all of the standard deduction. What are the tax implications of a $40K distribution from my taxable retirement acct? Is there a better strategy to use all the standard deduction?

Personal Taxes

Crowdfunding management need to know how it gets taxed

Asked Sunday, June 07, 2026 by Erica

I maintain some crowdfunding campaigns where I keep none of the profits and there are no gifts or services sent out to any donors. I need to know how it will get taxed. I have a gross income around $13,000 and a net income at around $12,000. Can I use it as a charitable write off? How much should I set aside for taxes?

Personal Taxes

FiCA tax exemption for domestic services

Asked Sunday, May 31, 2026 by Mary

Is a step parent exempt from paying FICA taxes for performing domestic services for their adult step daughter that lives in the home?

Nonresident Tax Issues

LLC election to corporate tax status

Asked Saturday, May 30, 2026 by Tomas

Hello, I seek general U.S. tax guidance. Can a U.S. single-member LLC, currently treated as a disregarded entity and owned by a non-U.S. individual, elect to become tax-nontransparent for U.S. federal tax purposes, e.g. taxed as a C corporation? Under what conditions is this possible, what forms, timing and state steps apply, and what taxes/obligations follow: corporate tax, dividend withholding, treaty relief, transition issues and filings? Contact me via email. Thx.

Retirement

Roth IRA Withdrawal

Asked Thursday, May 28, 2026 by Sarah Ellen

I’m 47, live in CA, and make $80k a year. What will my federal tax, state tax, and penalties be on an unqualified $125k Roth IRA withdrawal?

Business Formation

Law corporation - S Corp v Partnership

Asked Thursday, May 28, 2026 by Elizabeth

Hi, I am considering opening up a law practice with another attorney in California. We will be partners owning the practice and are debating which is a better option, a S-Corp or partnership. What are the tax advantages of either? Is one better over the other? Also, my law partner is a partner in another practice. Does that impact my practice that we open together at all? How? Thanks.

Personal Taxes

Withdrawal from rollover IRA

Asked Wednesday, May 27, 2026 by Kate

How much am I qualified to take out from my rollover IRA as a first time homebuyer in Massachusetts to help with closing costs and what do I need to do from a tax perspective in order to accomplish this?