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Recent Individual Tax questions

I sold my business on a promissary note that the buyer

I sold my business on a promissary note that the buyer defaulted on 6 months later and has since bankrupt the company. It is a $250,000 loss to me.Can any of this be a write-off?

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
My husband started a partnership LLC with his brother. My

My husband started a partnership LLC with his brother. My husband wants to be removed - however, his brother wishes to retain the EIN number since he plans to continue with the business. Can my husband write a letter asking to be removed? We were told that his brother has to do it in order to retain the EIN number, but his brother is dragging his feet. What kind of implications are we looking at tax wise if my husband isn't removed? Thank you so much for your help!

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
I'm researching the chances for abatement for late filing of

I'm researching the chances for abatement for late filing of 1120S S-Corp return. S-Corp makes little $ and has only 2 shareholders.JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Rec'd CP162 Notice for 2013 tax year. Not sure if FTA applies since our accountant had to request an abatement in 2010 due to his mistakes in filing the extensions for all his clients.JA: Is there anything else the Accountant should be aware of?Customer: We have the 2014 returns ready to file so they will show as late also. Wondering if we should address this in the abatement request also or send a separate penalty abatement letter along with the 2014 filing.

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
Dear Tax expert, My husband and I are Australia citizen who

Dear Tax expert,My husband and I are Australia citizen who is living and working in USA for almost 21 months.I have $16000 AUD saving interests in Australia in 2015, the Australia tax rate (32.5%) is higher than USA. After we report the $16000 interests income and lodged tax return in Australia, the taxation office refund some money to us through Australia investment's loss. The problem starts when my USA accountant lodge my tax return, she ignore the tax we paid for our saving interests in Australia completely, and put full 16000 AUD as income, and ask us to pay $4,693 tax again in USA for the saving interests. I did pay tax for our saving interests in Australia, the money we got back is because have large amount of the loss for the investment. As we belong to the high income in US, the loss we have in Australia got completely ignored in US, but how can my US accountant ignores the tax we paid for my saving interests in Australia, I can't pay tax again for it in USA. My US accountant said she can't see the tax we paid for the saving interests in Australia as I got refund. My Australia tax return calculate everything as a whole, doesn't show individual tax for saving interests, rent, other incomes, but my Australia tax accountant informed me that our tax rate is 32.5% for all income including the saving interests, we got refund because of the loss, nothing to do with the tax we paid. Please help me out here as my US account think we didn't pay tax in Australia for the saving interests. It is so bad that our loss got completely ignored, but we are also forced to pay double tax simply it doesn't show on the Australia tax return paper due to our loss in Australia. What if my Australia accountant give a letter which shows what amount tax$$ we paid for our $16000 saving interests, will these tax we paid in Australia got disallowed simply because of the refund we received for other investment losses? I don't see it is fair at all. We paid tax, we can approve it, the money we get back has nothing do to with the tax we paid.Best Regards,***** *****(###) ###-####

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
I previously was an employee in a private group

I previously was an employee in a private group psychotherapy practice. I would file business expenses under Unreimbursed Employee Expenses.As of 1/1/2015, I became a partner/owner in the practice, with an investment in the practice of $5,000.I am filing 2015 taxes late. What schedule(s) do I use to report my $5,000 investment, as well as business expenses incurred in 2015?Any other advice re this situation?Much appreciated.Jerry O'Brien

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,252 satisfied customers
Q; Should our son file an amended return? For TY 2015 our

Q; Should our son file an amended return?For TY 2015 our son filed his 1040 - back in Feb 2015. He is a college student - going to be a senior this fall-- and is applying for Federal Student aid -- we have submitted the FASFA to his college. His FASFA has been "Selected for Verification"; i.e. his college is auditing the FASFA App since his FAFSA does not exactly match his tax return. He has submitted his tax return and his 2015 tax transcript to his college.When the IRS transferred his tax data to his FASFA- we noticed a few entries ( Total Income) and one other item was different than his Tax Return. The Tax Transcript has entries like "adjusted Gross Income" then immediately on the line below it says "Adjusted Gross Income Per Computer". This creates FAFSA problems, again because the Tax Transcript numbers do not jive with the actual number on his Tax Return.In reviewing his tax return we found an error in transposition -- on Line 7 of his 1040 he entered $9630, while his W-2 Form listed his income as $9360 However, his Line 22 - Total Income is correct since he combined his 1099 Schedule C Income to the correct amount ( not the amount he entered on Line 7). He received a refund back in March -- and the IRS Tax Transcript does not show he is owing any tax. He has not been contacted by the IRS since he filed.We thought the IRS publications say that in errors like this -- (mathematical errors or transposition errors ) you should not file an amendment -- the IRS will simply "amend" the return to conform with the W-2 Form Income.So , for starters- should he amend and try to correct the math/ transcript error?

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
Currently there are rental properties titled in a person's

Currently there are rental properties titled in a person's name. I have a single member LLC in almost every state where the properties are located which collect the rent. These LLC's are owned by a multimember LLC (Parent Company). Currently all rents flow into the SMLLC then to the Parent. Since we cannot file an individual tax return per state using the SMLLC (simply doesn't allow it to, flow through entity), the Parent files all state taxes. Currently all properties are mortgaged in a member of the Parent Company. Prior to sale we will change title to either the SMLLC or the Parent Company. To avoid complexities, would it make sense to put the property into the Parent Company and bypass the SMLLC in order to do a 1031 exchange?

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
I have a question redgarding NY state individual tax return,

Hi,JA: Hi. What is your issue regarding?Customer: I have a question redgarding NY state individual tax returnJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I have a K-1 presenting a federal passive loss (rental loss) of 14629. The NY addition (EA-16) is 14449, which means the NY loss is only 180. The PAL is not deductable this year. I would like to know whether on form IT-182 the NY loss to be presented is 180 or 14629. If the latter - does that mean there is a taxable NY income of 14449 (the addition)? And finally, next year, if PAL could be used on NY return - will I be using a PAL of 14629 or 180, or in other words do NY additions and subtractions of prior years have to be taken into account in the year when using the PAL.JA: Is there anything else important you think the Accountant should know?Customer: I think I gave the full information - hope its clear

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Dr. Fiona Chen

President

Ph.D.

282 satisfied customers
I've asked this question before so I'm hoping a different

I've asked this question before so I'm hoping a different lawyer will answer it.I live in New Jersey. I've learned that it is not a "community property" state, but it is a "common law" state. So the situation is I own a house. I am married but the deed is and always was just in my name. My wife has an it's lien for owed taxes a few years ago. We have always filed separately, married but separate. So my question is now that I am going to sell the house will that lien on her come to me meaning it has to be paid before or at the sale.I've gotten different answers so I wanted another opinion

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Robin D.

Vocational, Technical or Trade School

20,940 satisfied customers
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