Ask a CPA

If a joint return was originally filed, you may not change to married-filing separate returns once the due date of the returns has passed.
If married-filing separate returns were originally filed, you have three years from the due date (without extensions) to switch to filing a joint return.

Yes. The taxpayer has until two years from the due date that the IRS first attempts to collect tax from you on the joint return to make the innocent spouse election. The election is filed on Form 8857.

You are not eligible to choose head of household filing status if the qualifying person is your dependent because a multiple support agreement Form 2120 was filed.

Yes. Children age 18 years or under with investment income of more than $1,900 must use Form 8615 to figure their income tax. Income over $2,000 is taxed at the parent's higher rates if applicable.
If certain criteria are met, the parents may elect to claim the child's income on their tax return using Form 8814.
Speak to your local CPA about the tax strategy of filing Form 8615 or Form 8814.

No. Whatever monies earned in that IRA during your marriage is considered a marital asset. As a result, this means that if you get divorced your spouse will be entitled to 50% of the money. You would also be entitled to 50% of your spouse's retirement money. This is true even if you did not name your spouse as the beneficiary of the IRA.

No. Anybody can be the beneficiary of your IRA(even your trusted local CPA). Unlike retirement plans sponsored by an employer, an individual can choose anyone he wishes to be the recipient of his IRA.

Only the spouse of the deceased can roll over an inherited IRA.

Unlike yourself who is entitled to roll over an IRA from your deceased spouse, your children must pay taxes on the IRA money they inherit. The trick is to stretch out the required minimum distributions from the deceased spouse's IRA since the IRA cannot be rolled over into your children's name. If your spouse died before 70 1/2, your children must take the money within five years or their own life expectancy. You should retain a CPA to determine the minimum distributions. If your spouse died after reaching 70 1/2, it is even more complicated. Speak to your local CPA.

NO. A Publically Traded Partnership whose interests are traded on an established securities market. Passive activity losses from a Publically Traded Partnership can only be used to offset income or gain from passive activities of that same Publically Traded Partnership. The losses cannot be used to offset income of other entities.

In most cases NO. The Taxpayer Relief Act of 1997 changed the law for the alternative minimum tax due for corporations. For entities whose tax year began after 12/31/97, a "Small Corporation Exemption" was created. A corporation is treated as a small corporation exempt from AMT for its tax year beginning in 1999 if that year is the corporation's first tax year in existence or its average annual gross receipts for the 3 year tax period ending before 1999 did not exceed $7.5 million (5 million if the corporation had only 1 prior tax year). You should speak to your local CPA about the "Small Corporation Exemption" and special rules that apply in determining gross receipts.