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I have a couple who have joint costudy of their son. With

I have a couple who have joint costudy of their son. With court document they rotate years on who claims. They split the child care. so can they both claim child care and eicJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am using turbo tax to perpare their taxes and it give both eic. But both can not e-file.JA: Is there anything else the Accountant should be aware of?Customer: would just like to know if both can claim the eic and child care each year or if the one who clain the son that year should claim it all.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,856 satisfied customers
I supported my 78 year old mother this last year. She lives

I supported my 78 year old mother this last year. She lives with me and I paid for more than half of her expenses. She gets social security and she also gets a small survivorship pension that belonged to my dad of $344 a month. I have never claimed her as a defendant on my taxes before and this year I want to but unsure if I can. She gets w2's on both of these and she has not filed taxes on either because she was told 8 years ago that they are not taxable. My question is am I able to claim her as a dependent because the total gross of the survivorship pension is $4128 and the max gross amount a dependent parent can make in 2016 $4050. Again, I'm questioning this because she doesn't file taxes, told she didn't have to, and so if I claim her I don't want to be audited and pay penalties. I'm a single guy that has no dependants so it changes my status to head of household and the deduction changes my return substantially. Any input you can provide would be helpful.

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Robin D.

Vocational, Technical or Trade School

23,164 satisfied customers
I was advise incorrectly to file form 8832 to change my

Hi PearlJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I was advise incorrectly to file form 8832 to change my election on my llc to be taxed as a corportation 2014 I just correct it with FTB to change it back to a partnership which is should have been but my question is how to i make the change with the IRS to i fill out the 8832 form again changing it back to a parntership?JA: Is there anything else important you think the Accountant should know?Customer: I had the LLC since 2019 but haven't use it until 2014. When it was change to a corportation. The LLC is a real estate investment company and i have one rental property under the LLC i tihnk that's it think*

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taxmanrog

Master's Degree

1,148 satisfied customers
Our high school class is about to have a 50 yr reunion in

HI, Our high school class is about to have a 50 yr reunion in April. Do we absolutely have to have an EIN or can one of the committee members use their SS#. The account will only be open for maybe 3 months.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: was told in 2017, rules changed as we did not do it inthe past.

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Robin D.

Vocational, Technical or Trade School

23,164 satisfied customers
I have a GAAP question and was told that "just answer" could

I have a GAAP question and was told that "just answer" could provide an answer but I'm not sure who to address the question, so I selected Tax Professional. If this is incorrect please advise to whom I address the question.I am preparing a reviewed F/S for Company A, an LLC, owned 51% by member 1 and 49% by member 2. Also, Company A is a "minority owned" business which comes with various benefits (member 1 is an African American).Member 2 also owns Company B 100% (a single member).Am I required to consolidate the two companies?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,412 satisfied customers
Second opinion] My husband and I have an LLC partnership. In

Second opinion] Hi. My husband and I have an LLC partnership. In 2016 we converted our garage to our new studio and we are reporting it as unreimbursed partnership expenses. My question is does this amount also get reported in the Business Use of Home section where it says: "If applicable, enter the total cost or other basis of an addition or improvement (that affects the business part of your home) placed in service after you began to use your home for business"? Thank you!

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,856 satisfied customers
How strict are gift tax rules? If a parent wants to buy

How strict are gift tax rules? If a parent wants to buy their child a car or pay off their loan is that taxed?

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Mark Taylor

Certified Public Accountant

Masters

3,298 satisfied customers
This is about rental depreciation for a situation in which I

This is about rental depreciation for a situation in which I have roommates living with me in my house. In 1998 I bought my house and got 2 roommates, then later reduced it to only one roommate, then in 2003 decided to never have a roommate again, so for 11 years I had no roommate. I've been told that my house reverted to personal use then. Then in 2014 I decided to try again and got one roommate (house square foot rental percentage 16%). In 2016 I needed more income, so I got a second roommate (increasing the rental percentage by 7% to 23%).1. I think that I made a mistake in 2014 when I started back having a roommate, renting out 16% of the house. I depreciated 16% of the 1998 cost of the house ($185,000) but didn't add in any of the improvements I made during the years I had roommates (1998 – 2003). These items previously got depreciated on those years' tax forms:1998 - $3500 new roof1998 - $1915 remodeling done to convert the living room to a bedroom2000 - $5227 new A/C & new fence2002 - $6616 roommate bathroom remodeling--------------------------------------------------------------------------------------------Total improvements: $17,258What do I need to do now? Do I have to re-do my taxes for 2014 & 2015 or can I just start doing things right for 2016? If the latter, should I add a line to my 2016 Form 4562 for 27.5 years for a basis of 16% x $17,238, with a starting time of January 1, 2016?2. Should my 2014 basis have included ALL improvements to the house, even those having nothing to do with the rental area, including the remodel I did of my bathroom/bedroom in 2002 and the new hardwood floor added in 1998 (which never got depreciated in 1998)?3. This year 2016 I'm also renting out the back bedroom to a second roommate, which is 7% of the house. Do I need to add a line to my 2016 Form 4562, for 27.5 years, for a basis of7% x (house cost + improvements) = 7% x ($185,000 + $17,258)4. When does depreciation end for my house: 27.5 years after 1998 or 27.5 years after 2014? If the latter, does all the depreciation done during the first rental period of 1998 – 2003 just vanish and never have to be recaptured, even if I had to sell the house later?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I don't think so.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,856 satisfied customers
I received a settlement for wrongful termination. The were 2

Hello, I received a settlement for wrongful termination. The were 2 checks written- 1 to myself and 1 to my attorney. The check to myself deducted all of my taxes and I received a W2 for this income. I have now received a 1099 for the attorney portion. Do I have to pay taxes on the attorney portion of the settlement?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No, just that I have already filed my taxes and was not aware that a 1099 would be coming for the attorney part of the settlement. Would I also have to send an amendment for my federal and state tax returns?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,412 satisfied customers
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