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Recent Internal Revenue Code questions

If I have a negative balance in my S Corp basis, do I need

HiIf I have a negative balance in my S Corp basis, do I need to recognize capital gains in the same year or can I carry the negative balance to next year?Moreover, I have a zero balance in my loan account.

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
I set up a irrevocable living trust, funded it with tax free

i set up a irrevocable living trust, funded it with tax free munis, question do i have to pick up the interest from the trust, tax free interest, on my personal 1040 .... for AGI purposes for medicare payment amount.... or is this tax free interest just that tax free reflected on a 1041 sch B and thats it

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PDtax

Owner

Master's Degree

6,850 satisfied customers
I could potentially inherit real estate property which is

I could potentially inherit real estate property which is located in India. what are the taxation surrounding such inheritance? I reside in Massachusetts?Are there any inheritance tax, income tax or estate taxes when I inherit it and what are taxes when I sell the property and bring the money back to USA?Can I continue to hold the property in India and do I have to show such property when filing tax return in USA? Also when I sell the property I will be paying taxes in India do I have to pay taxes in USA as well if the taxes are already paid in India? if so what kind of taxes do I incur?

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Robin D.

Vocational, Technical or Trade School

20,922 satisfied customers
BACKGROUND FACTS: I had waived my community share of member

BACKGROUND FACTS: I had waived my community share of member ownership (25%) in an LLC industrial park, in California, in a legal separation settlement back in 2007, confirmed again with a divorce judgment in 2012. I had included my ex-wife's income draw of $51,000 when I filed "married filing jointly" for tax year 2006 while we were already separated and living apart as of Jan 2006. I had also contributed capital of $175,000 (from community funds) in 2006, after we sold our house in Nov 2005 in Los Angeles. I never received the benefit of any owner draw in 2006 and most of 2007. My ex-brother-in-law (the managing owner) had been directing my draw to my ex-wife before there was a financial settlement in our legal separation. Do I have a case in 2016 for (1) compensation of the difference in income tax paid by me for TY2006 and (2) for compensation of all my capital contribution to pay off the industrial park's mortgage? I do possess the Schedule K-1 and Form 1065, plus all my legal papers and court judgments. I was also hoping to recover my partnership membership in the likelihood of my ex-wife's passing. I had initially invested $117,500 into the industrial park with separately acquired funds from my deceased parents trust fund in 1996, but my ex-wife had me deposit and commingle the funds into a community-held bank account. Can you advise me if I have any legal standing? I can produce all the historic records. I live now in South Carolina.

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PDtax

Owner

Master's Degree

6,850 satisfied customers
I live in California, and I'm selling a condo for $650,000,

Hello, I live in California, and I'm selling a condo for $650,000, which I lived in for two of the last five years. The last 2 1/2 years I have rented the condo. I will have capital gains of about $300,000. does the state of California require me to withhold California State tax of 3 1/3% of the sale price or the capital gain?

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Dr. Fiona Chen

President

Ph.D.

250 satisfied customers
My wife will be taking 97K out of her 401K on a "hardship"

My wife will be taking 97K out of her 401K on a "hardship" in order for us purchase a new retirement home. How much of that money should we either set aside or have automatically taken out for federal & state income taxes?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,194 satisfied customers
My dad owned a two family and lived in it. in 2005 he

hi. my dad owned a two family and lived in it. in 2005 he changed his ownership to a life estate interest with me as the new owner. i paid him ten thousand dollars. (this was to help qualify him sooner for medicaid if needed) he passed away a few years ago.it has been a rental property for me. if i sell it, will it be taxed as inherited property? i.e. no capital gain tax or as purchased?

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Dr. Fiona Chen

President

Ph.D.

250 satisfied customers
What to enter On Form 8804 part 3 line "e" and how to

What to enter On Form 8804 part 3 line "e" and how to compute if the only ECTI allocable in my case is a negative? (In this case the only ECTI comes from a partnership K1 that like I said it is negative for this year)How about form 8805 line 9 if the amount is negative?Do I still have to file form 8813 installment payments with "0" for the current ongoing tax year (2016) if the estimates and calculations show losses?Can an individual that files form 1040nr have NOL carryforward?Does he/she still have to present/attach a statement to the 1040nr when filing it choosing the carryforward election?

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
I have an IRA I tied up in Life Settlements (fractional

I have an IRA I tied up in Life Settlements (fractional policy ownership). Laws changed, and now I have to move the investment out of the IRA. Will this automatically force me to pay penalties and interest on it?

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Mark Taylor

Certified Public Accountant

Masters

862 satisfied customers
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