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Recent Tax Burden questions

I'm wondering about what happens to federal and state tax

Hello,I'm wondering about what happens to federal and state tax debt when someone dies. If someone owes back taxes, has no assets, and no spouse or partner, can the tax burden pass to parents or siblings? I know it can pass from parents to children or to spouses, but I'm specifically wondering if it can pass to parents or siblings. Again, no assets in any estate to pay any of the debt.

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Barbara

Enrolled Agent, Paralegal

4,986 satisfied customers
Basically I had a Roth with a brokerage company that had

Basically I had a Roth with a brokerage company that had fees which were too high. I attempted to do an indirect rollover to a Roth IRA at another brokerage. Somehow wires were crossed and it ended up rolling into a Traditional IRA. I've already paid taxes on this money and already have a 401k. I want it to go back to a Roth. The brokerage is recommending a conversion and filing a Form 8606 to demonstrate I already paid taxes on this money. But they said I should speak to an accountant first. What do you think I should do to get this money back into a Roth? How can I do it with the least tax or penalty burden? What is a Form 8606 and how would I file it?

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Mark Taylor

Certified Public Accountant

Masters

826 satisfied customers
My wife and I are working for a start-up company together.

My wife and I are working for a start-up company together. We both have stock options that we plan to exercise soon. We'd like to gift our stock options to her mother who lives in Malaysia to avoid paying US capital gains if and when the stock value increases. Is there anything legally that is keeping us from doing that? The amount of stock we will gift her is in excess of 14K (around 60K) so I figure we'll need to submit a IRS gift form

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Mark Taylor

Certified Public Accountant

Masters

826 satisfied customers
Scenario: I'm in the 31% tax bracket and the commercial

Scenario: I'm in the 31% tax bracket and the commercial building that I hold in a single person LLC is now providing significant income pass through via form 1065 to my personal return. I have bought a new single family rental property as an individual since I couldn't get a lender to finance it in the LLC. The new property will have a loss and I would like it to cancel some of the LLC properties gain.Sidenote: I feel that the LLC is not serving me well (I have very good insurance coverage on the building, I personally guarantee the commercial building loan any way, alot of extra hassle). My commercial lender is in the process of re-financing the LLC's building so now would be a good time to get their approval to transfer back to me personally. Both properties and the LLC are in Washington State, so it is only a federal tax issue.My Belief (may or not be true): I assume the loss on the residential rental property(closing costs, maintenance, minimal rent income) will not reduce my personal tax burden for 2016? I'm under the impression that gains after depreciation, taxes, interest, etc on rental real estate are taxable as additional income but losses will not reduce my adjusted gross income.Question: Am I correct? If so, then it seems I need both properties in the LLC or both out of the LLC to accomplish my goal. Is the transferring the commercial bldg. from the LLC back to me personally a taxable event? Anything special I must do to make sure it is not. Any other thoughts, advice?

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Mark Taylor

Certified Public Accountant

Masters

826 satisfied customers
My parents, (who are divorced) received insurance

My parents, (who are divorced) received insurance disbursement payments, one of equal amount to each of them. I was told by the bank as long as I was secondary on the account that I would not be taxed, so opened up two bank accounts with them as the primary and me as the secondary account holder. At this point, we want to lock away the money for the next year, we were thinking CDs would be a good option. Are the any other good methods? Main thing would be to keep my name on both of their accounts, while at the same time not taking on any tax burden.

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Robin D.

Vocational, Technical or Trade School

20,916 satisfied customers
My house and family are in NC. I worked and paid taxes in

My house and family are in NC. I worked and paid taxes in Michigan. I paid in over 8K total State taxes between both states and NC says I still owe them 4K. I don't think that is fair.

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Mark Taylor

Certified Public Accountant

Masters

826 satisfied customers
I have qualified money that I'm going to take out in lump

I have qualified money that I'm going to take out in lump sum and pay the tax, because i want to leave it to my son and don't want him to have the tax burden. I am risk adverse so I'm putting it into a fixed annuity with a 5% return.My question is, if I roll the money into a ROTH (still investing in the annuity), i know the rules are I then can't take any of the money for 5 years (being a ROTH), but what happens when it passes on to my son? does he have to wait 5 years before taking the money without penalty or tax consequence? The annuity is structured such that he will have the option to take lump sum cash or equal payments for 5 years, with the latter being more money. So if it's wrapped in a ROTH and he chooses the latter, he may, potentially, be faces with fees being a ROTH.

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Robin D.

Vocational, Technical or Trade School

20,916 satisfied customers
If I rent out my home via airbnb for $8,000 a month months,

If I rent out my home via airbnb for $8,000 a month for three months, and I acquire a temporary residence for those three months and pay $2,000 per month for that temporary residence, is this $2,000 per month expense deductible as it relates to this $8,000 per month in income?

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Robin D.

Vocational, Technical or Trade School

20,916 satisfied customers
I have a client who has a large tax debt. She wants me to

I have a client who has a large tax debt.She wants me to review her taxes and do them correctly.How many years back can she amend and lower her tax burden?I know IRS does not give refunds back more than 3 years.But can the amount of debt be owed be lowered for earlier years?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

3,962 satisfied customers
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