Join the 9 million people who found a smarter way to get Expert help

Recent Tax Law questions

I am a F-1 student and have received gifted money oversea

Hi I am a F-1 student and have received gifted money oversea from my parents around 400k for recent years and I am wondering do i have to report this gifted money? My mom have constantly wire me 50k every couple months for last 3 years and I have deposited them in my US bank accountJA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: Since I am not a US citizen nor green card holder, but a F-1 international student.. so I am just thinking am I in trouble or I should do something? That's it

Read more

Mark Taylor

Certified Public Accountant

Masters

940 satisfied customers
I have/had a non-qualified annuity. This annuity is

Hello. I have/had a non-qualified annuity. This annuity is collateral for a loan. In 2013, we filed Chapter 7 bankruptcy. Since then, the bank has been taking money out of the annuity to make the payments on the loan. This has caused us a substantial tax event every year since then. The IRS has a tax lien against us because of this. Our CPA says we should just do an Offer-in-Compromise and offer the IRS 20 cents on the dollar to settle. We are not willing to do this because we bankrupted and the annuity should belong to the bank now. He told us to hire a tax attorney, which is ridiculous because the answer seems like it should be simple...we bankrupted on a loan that the bank had collateral for...we should be done with both the loan and the annuity...in my opinion. How can we stop the tax events? Shouldn't the annuity be out of our name? Please help! Thank you, ***** *****JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: Not that I know of. The first year this happened (2013) this event more than doubled our income!!! By the way, we had to file bankruptcy because our financial advisor stole all of our money.

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
I w1ithdrew $33000 from a stock account. My original

I w1ithdrew $33000 from a stock account. My original investment was 52% taxed income. That was accomplished by the rollover of 3 annuities which I pur chased for a total of $65000 into a stock account in the amount of $120000. Over the life of the account it has accrued no additional value. Obviously a poor showing. What percent of my $33000 withdrawel is taxable?

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
I am helping a friend to obtain a EIN number to his

Hi,I am helping a friend to obtain a EIN number to his corporation. My friend is the CEO but he is a foreign person without a SSN. Therefore, we wont be able to apply for the EIN online.Form reading several posts online, I understand that my foreign will have to fill out Form SS4 and designate a lawyer or a CPA (or a business lawyer" ) as a "Third Party Designee".My question is how the lawyer or CPA will fill out the POA (Form 2848) if my foreign doesn't have a SSN?Could you please help.Thanks!

Read more

Dr. Fiona Chen

President

Ph.D.

294 satisfied customers
I live in NJ. My father just passed. I have 2 sibling and we

I live in NJ. My father just passed. I have 2 sibling and we will inherit a house. At what point to I need to have the house appraised and what steps do we need to do to not pay taxes

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
Non profit free office space, is classified as an in-kind

Non profit free office space, is classified as an in-kind donation.Correct me if I'm wrong, if the free market value was $1000 per month. Within 12 months, the business that donated the office will have 12k not taxed.Can you please break this down for me?http://smallbusiness.chron.com/tax-deductions-donating-office-space-nonprofit-10578.html

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
I am on social security Disability. I will turn 64 in March.

I am on social security Disability . I will turn 64 in March . I recently have been able to work part time as a musician, but nothing else. I have been getting 300 a month from a Resturaunt for the past three months. I filled out an SS9 form at the Resturaunt.Will this affect my social security disability benefits which net around 1400 a month after withholding tax is taken out? Will I get in trouble with social security for doing this ?

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
QUESTION FOR JD, LANE PLEASE HOLD FOR HIM Thank you for your

QUESTION FOR JD, LANE PLEASE HOLD FOR HIMThank you for your excellent answer on my earlier question. Much appreciated. I tried checking the property search link you gave me. Records were inconclusive. One property they had no data at all on. And the second they showed a sale in 1999. My current belief is my client has not lied or withheld data to me based on following. I talked to his close friend and partner, who has been liasing with me on this cycle, as client is quite old. I have NEVER caught the partner in a lie and this is based on a long term relationship independent of client. Partner said one property is owned by ex-wife. That his name may have been left on mortgage statement, but that client has been paying rent and has never paid a mortgage. Property records give zero data in search done on link you gave me This is residence my client lives in.The second property record search sold a 1999 sale on. Partner says client owned the property in the seventies or at least partially. In the 80s he got divorced. He had made some joint investments with his mother-in-law of the time, and after the divorce property went to mother-in-law. Current record does not show who owner. is. Partner is sure that current owner is NOT the client.Client is in hospital recovering from something-- sounds like a stroke. Partner offered to get records on send property from LA County records office in Norwalk,California on Monday.I tried to call the RO and am waiting a call back.The first property is in San Diego.; Is there a way I can easily get this data? Can I call the county or some such? Same question for LA, but I will probably get this data Monday.Also, my mentoring EA has decided not to work with me. This is in the middle of several cycles, but resulted from this last. This is extremely irritating. She made an original claim that it was unethical for her to consult with me as she was not listed on 2848. She said it violated circular 230 rules. This came up on last cycle. I have been paying her an hourly rate to consult with me and advise me on various rep cycles. I could add her to 2848 on each as I have that right granted to me by client on 2848,I know of nothing in circular 230 that would prevent me from consulting with a fellow EA to ensure I service my client well. If I were working with a big firm, it would be analagous to me going next door to a veteran co-worker or to the boss asking for advice or confirming my understanding. Is there any 230 violation or potential 230 violation that you see around here? I have sent her IRS letters to my client and such to ensure she had full data.Is it unethical for her to abandon me and my client mid consultation because IRS RO presents a charge that appears to show my client lied. If this charge is disproven, would her cutting me off be unethical?I would prefer to have my consulting EA to continue to consult with me at least through current cycles. The one she has a concern on I can probably go alone on, but if the charges from RO are false, I would prefer to not have to take on a second consultant. The other ones. Yes, I can get another consultant, but I hate spending time finding and grooving in another person 3 weeks before the corporate extension deadline.Your view on this would be appreciated. Perhaps I can get my associate to review her ethics in stopping her consulting mid stream.

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,276 satisfied customers
My mother-in-law died in April and we are settling her

My mother-in-law died in April and we are settling her estate. Beneficiaries are her son (executor) and her daughter (my wife), and 4 grandchildren (one by her son, and 3 by her daughter). The son and daughter each get a third of the estate, and the third third is divided equally amongst the grandchildren. The estate is roughly $1,000,000, all in cash and securities.A significant amount of deferred income (about $20,000) will be unlocked by cashing in HH bonds that in the past were obtained in exchange for EE bonds in order to defer tax.The estate itself has a tax rate above 40% for investment income. My thought is to disproportionately distribute the investment income via K-1 to the beneficiary with the lowest tax rate (a non-dependent grandchild in the 15% tax bracket) along with cash to pay the tax. The net cash payment to this beneficiary would be offset by paying out less from the corpus of the estate, so that, in total, all beneficiaries get their prescribed proportion of the entire value of the estate. In this way, income tax is minimized on behalf of all the beneficiaries and everyone thus receives a bit more.The question is: does treating income payments to beneficiaries in this disproportionate way, though offset through corpus payouts, violate any estate tax law?

Read more

Mark Taylor

Certified Public Accountant

Masters

940 satisfied customers
View more tax questions
In The News