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Recent Excise Tax Law questions

My Mom is turning 90 years old. She needs to cash out a

my Mom is turning 90 years old. She needs to cash out a annuity policy that has about $67,000 in it. Her social security and pension income are less than $25,000 per year. Somewhere in the low 20's at best. How much Fed and State Tax should she ask them to take out. She lives in NJ. Need an estimated rate for her to use when completing the cash out...JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: no. I just want her to fairly reasonable with the tax so that she does not owe much afterward.

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Dr. Fiona Chen

President

Ph.D.

244 satisfied customers
Does the IRS keep copies of tax returns indefinitely. If

Does the IRS keep copies of tax returns indefinitely. If not, how far back do they go?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am filing for my social security and my statement says that I have no income for 1984. I know that is inaccurate. How can I get a copy of my tax returns for 1984 or is that too long ago.JA: Is there anything else the Accountant should be aware of?Customer: NO

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
Combination of S corporation and foreign tax question. Here

Combination of S corporation and foreign tax question.Here are the facts -1. A US citizen owns 49% of a Canadian corporation.2. Canadian corporation does not hold any rights or interests in real property located in Canada. It is a service type/internet business.3. The US citizen owns a 100% of a US S-Corporation.If the shares were transferred from the US citizen to his S corporation, what will all the tax implications be?

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Dr. Fiona Chen

President

Ph.D.

244 satisfied customers
In 1990 my grandmother created a trust. She at that time put

In 1990 my grandmother created a trust. She at that time put her home in the trust.My father and her sister, (no other siblings) were the original partners in the trust.My father died and then my mother. In their wills their interest in the trust were given to me and my brother. My grandmother died recently and because my parents died, my bother and myself inherited from the trust the 50% interest in trust. My aunt who is still alive retained her 50% share of the trust.The house was last month and will close this month.No one has any idea what the house cost to build in 1950 or any cost for updates, etc.Do my brother and I have to worry about paying capital gains tax on what we receive or do we owe anything in taxes?

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Dr. Fiona Chen

President

Ph.D.

244 satisfied customers
Retirement question - A married couple filing MFJ, both

Retirement question - A married couple filing MFJ, both spouses work and are active participants in retirement plan (SIMPLE IRA). Are there any restrictions from them making a deductible contribution to a Traditional IRA?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
In the trust scenario, IF it were irrevocable, IF you have

In the trust scenario, IF it were irrevocable, IF you have no discretion to distribute to yourself, and IF IRS didn't say that your power to appoint makes it property in your hands anyway, THEN you'd be giving away the company. THAT's a thought."I am not sure how to apply this.It has to be irrevocable for asset protection. It is Ok if the trust cannot distribute to me.So I give the IP or company to Buyer, buyer creates Trust... I get lost here somebody has to pay tax at sometime???At this point I think I will just take the cash, pay the tax, contribute the balance to a trust.In technology companies come an go overnight. I do not want to rely long term on this company's value or contract payments.RegardsSam, i will be out for a couple of hours...

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
Certainly qualifies for 1031, as as you sell it separately

Certainly qualifies for 1031, as long as you sell it separately from the business... again IF they have an asset to swap that would provide value (ongoing income or other) for you."What are the limitations on assets to swap for IP? I assume cash is not considered an asset, but I should ask, is cash OK?How about they buy AAA publicly traded stock with their cash (or they may already have some) and give it to me. Probally substance over form issue if cash is out.Can they create a trust, Grant the cash, make me the Trustee, make my kids the beneficiary?RegardsSam

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
I am a dual citizen of Canada and US - living in Canada

I am a dual citizen of Canada and US - living in Canada since birth - hold a US passport, but have never filed taxes. I have never made much money as a self employed musician, rarely paying tax (I file - up to 2012 so far) in Canada.JA: Because laws vary from state to state, could you tell me what state is this in?Customer: I would like to clear things up regarding US status.JA: Have you talked to a lawyer yet?Customer: noJA: Anything else you think the lawyer should know?Customer: I may move to US for work. I am expecting an inheritance.JA: Because employment law varies from place to place, can you tell me what state this is in?Customer: Alaska

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Can I purchase my mother's house as part of a 1031 exchange?

Can I purchase my mother's house as part of a 1031 exchange? She will receive approximately $100K from the sale (at fair market value) of her property.Thanks!Kim

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
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