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Tax question - how to avoid tax on stock gain from regular

tax question - how to avoid tax on stock gain from regular stock account (not IRA etc)? if i re-invest, can i defer tax?

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Robin D.

Vocational, Technical or Trade School

21,234 satisfied customers
I'm the founder of a startup that has 3 co-founders. I've

Hi there,I'm the founder of a startup that has 3 co-founders. I've already begun as an LLC because i figured i would appreciate the freedom of structure, but now i fear i haven't set myself up for angel investing and paying myself/partners with the money already invested.Currently theres 5k invested between us (not a lot but we just started a few weeks ago) and i'm thinking we should be a c-corp instead so i can pay ourselves (even minimum wage) incase we 'break up' and they feel entitled for compensation.basically, we're a startup that has the business model of a subscription box company, i haven't paid anyone for work yet, have promise 5% to each of them, and am not sure if i should have signed up for a c-corp, s-corp or LLC.cheers

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
Doe dies on Sept 1, 2013, leaving shares of X mutual fund in

John Doe dies on Sept 1, 2013, leaving shares of X mutual fund in a trust. During probate, on October 1, 2015, executor of trust sells all shares of X mutual fund to put money in estate bank account. Will the beneficiary still be able to do tax basis step up to the value of the shares on Sept 1, 2013, or will the executor having sold the shares on October 1, 2015, spoil that opportunity?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
I had a company that I dissolve a couple of years ago. It

I had a company that I dissolve a couple of years ago. It was a c corp. I have a state tax debt in the amount of $970,000.00.I don't even have $970 dollars. There were no assets left when the company was dissolved. What would you suggest that I do at this point?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
I volunteer 4 -6 hours a month as a sponsor to a non profit

I volunteer 4 -6 hours a month as a sponsor to a non profit and the earned revenue goes to a registered 501 3c. I get paid $25 per hour for being a sponsor. Can I claim a contribution deduction on my personal income tax?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: no

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Robin D.

Vocational, Technical or Trade School

21,234 satisfied customers
Bank account was frozen and money removed from the account

The State of Texas has frozen a bank account of mine and removed some of the money from the account. I was, but not am a citizen of the State of Texas and I never received any notice from the state. Is it legal for the State of Texas to take such action and my that action be reversed? I have not lived in Texas for over 2 years. I now live in Tennessee. Does Texas still have any jurisdiction? And, I have not conducted business in Texas for years, and own no taxes as far as I know.

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Mark Taylor

Certified Public Accountant

Masters

1,296 satisfied customers
Is inheritance money brought from India to US taxable?

I'd like to get my inheritance money from India to us (around $300,000), is it taxable? The property will be sold this year and I am US citizen

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,786 satisfied customers
Question on tax treatment of capital gains in the final year

Question on tax treatment of capital gains in the final year of a trust.A marital deduction trust was created in 1998 upon the decease of a husband. The trust invested in a diversified stock portfolio and has remitted all dividend income generated over the years to the income beneficiary, the surviving widow. Per the trust document, capital gains and/or principal may be remitted as well if needed by the widow , but over the life of the trust this was never necessary or done.Each year, capital gains and losses from transactions in the trust were offset, or loss carryforwards used, to zero out the trust's capital gains and losses on the trust's tax return. Income was reported on K1 to the income beneficiary who paid income taxes on it.The income beneficiary passed away this year (2016), the stock portfolio was entirely liquidated, generating net capital gains, and the trust assets (all cash now) will be distributed to the designated heirs/beneficiaries. (There are two children and four grandchildren.)Questions:1. Must the trust itself pay the taxes on the final-year capital gains generated?2. I believe it is not permitted to remit net capital gains to the beneficiaries in this case. True?3. Instead may we remit gross gains and losses to the beneficiaries, some of whom have a lower tax rate? (I believe so)4. Do we have discretion on which approach to use? If both ways are permitted, does the IRS look on the latter approach, with its lower tax result, as particularly aggressive, a red audit flag, etc.?Background:I'm no expert but the online commentary on the Regs do suggest that the trust may remit the gross capital gains, reporting on a K1, pro rata to the remainder beneficiaries, and also remit the gross losses in the form of loss carryforwards that each beneficiary can apply against their share of gains, all of this on their personal tax returns in the same year, 2016. I get this from online commentaries on §1.643(a)-3(b) and §1.642(h)-1.(It is assumed that the ordinary income (dividends) generated by the trust after the widow's death will be distributed to the remainder beneficiaries, who will pay income tax on it.)

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
My husband's estate received $18,000 from the State of South

My husband's estate received $18,000 from the State of South Carolina's unclaimed funds. After the money was deposited into the estate account, as my husband's only heir, I transferred the money into my personal account. Do I have to pay income tax on the money or does my husband's estate pay the taxes?JA: Since estate law varies from place to place, can you tell me what state this is in?Customer: South CarolinaJA: Has anything been filed or reported?Customer: No. I got an extension on my 2015 taxes, but have to file by October 2015. So not sure if need to report it on my income tax or the estate tax filing.JA: Anything else you want the lawyer to know before I connect you?Customer: My husband's estate has not been closed yet. Has to be closed by Jan. 2017.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
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