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I am 67 years old. I contributed to my IRA, $6,500 for year

I am 67 years old. I contributed to my IRA, $6,500 for year 2016n (Jan.5, 2016) and purchased Service Credits from Washington State Retirement by rolling over the IRA. Jan. 28,2016. I realized now (6 months later) that I was not allowed to contribute to the IRA because I was retiring and did not have earned income in Jan. 2016. How do I remove the excess so that I do not have a 6% penalty "until the mistake is corrected"?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: The IRA was "rolled over" from the Ameritrade Account and that account is now closed. I have talked to both AMeritrade and the Washington State Department of Retirement. The Ameritrade IRA account was closed in February by my request and cannot be reopened. Ameritrade says that there is a form that the State should process called an "excess removal". I have the cash in my Savings account to fixed this myself if I am allowed to do this by IRS rules. Just could not find this on IRS site. Also, would like to avoid taking it from the Washington State Retirement account as it will effect my retirement significantly.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,750 satisfied customers
I am filing my 2015 returns now, after having gained an

I am filing my 2015 returns now, after having gained an extension in April. In April 2015 I sold my primary house of residence for $671,000. My new primary house of residence was purchased in 2014 for $361,000.JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I believed that the taxable capital gains on a house sale was computed as the difference between the prices of the former and new houses, but can find that written nowhere in the regs. Pub 523 talks only about taxation of the profit on the house sold. Is it true that all but $500,000 of the sales price is taxable, or does the house that now serves as primary residence play a role in this computation?JA: Is there anything else important you think the Accountant should know?Customer: A further complication: the house that now is our primary residence (since April 2015) was purchased in tax year 2014, so that we owned two houses for a period of 7 months, beginning in 2014 and into 2015, but the house purchased in 2014 did not become primary residence until 2015. If the purchase of the new house plays a role, can it be reported on my 2015 form although it occurred before 2015?

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Robin D.

Vocational, Technical or Trade School

21,216 satisfied customers
According to "FIRPTA Withholding" ( 15% of gross sales price

According to "FIRPTA Withholding" (https://www.irs.gov/individuals/international-taxpayers/firpta-withholding), 15% of gross sales price of a US real property has to be withheld and paid to the IRS, if the seller is a foreign person and the purchase price exceed $300,000 OR the buyer will not use the property as his/her principle residency.I am a nonresident alien. , thus no tax returns previously filed by me.1. If my house has no rental income since I bought it, what are the procedures and required documents for me to get "Withholding Certificate" by filing Form 8828-B? Is it usually done by my title companies or myself or my CPA?2. If my house had some rental income during my possession, are the procedures and required forms different from above #1 to get the Withholding Certificate?3. How soon can I get a ITIN after filing Form W-7?4. If I do not apply for a "Withholding Certificate" during the sales, is the only way to get tax refund from the IRS is to file tax return to IRS every year after I bought the property through the time when I sell it?

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Barbara

Enrolled Agent, Paralegal

5,148 satisfied customers
I am a Canadian citizen residing in California on a card for

I am a Canadian citizen residing in California on a green card for over 20 years. I have a joint account in Canada under 10,000. A home was sold and the proceeds will go into a Canadian bank. If 130,000.00 is was wired to my US bank account, what taxes would I incur, if any?

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Mark Taylor

Certified Public Accountant

Masters

1,262 satisfied customers
I have a closely held shareholder that sold stock in his

I have a closely held shareholder that sold stock in his corporation; however, he also was allowed to keep the cash and one vehicle. How should that be handled on the corporate books and on his personal return?

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37,974 satisfied customers
A certain taxpayer received a refund of 10,000.00 for a tax

A certain taxpayer received a refund of 10,000.00 for a tax year beyond the statute of limitation.. As per his calculation, this is erroneous refund. He returned the check. But the IRS sent it again. Then, he returned second time. Then IRS returned second time. He thought that he would not cash the check and kept it at home instead of tearing it. His wife accidentally cashed it. The check belongs to year four years back. Can the IRS demand the check if they come to know their error?

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Barbara

Enrolled Agent, Paralegal

5,148 satisfied customers
My wife is the owner of an LLC we created about a year and a

My wife is the owner of an LLC we created about a year and a half ago.It was dormant with no business until two months ago when I decided to really put energy into it.(I was unemployed and believed I had a non-compete,which I didn't).It is an llc taxed as c-corp by default.I am thinking that it would be better if I became owner so that we can make it a single member LLC since I am the only one working.Is this the best for us?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,750 satisfied customers
My wife's brother has yet to pay the property taxes on their

My wife's brother has yet to pay the Peruvian property taxes on their rental property for 2015, but, of course, our US tax deadline is looming. How does this work in terms of filing here in the US. Can I still include these taxes as a deduction off the rental income?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,750 satisfied customers
I need help with the foriegn income exclusion, Ok well

HiJA: Hello. How can we be of help?Customer: I need help with the foriegn income exclusionJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Ok well mailed out my taxea for 2013. I live in australia i a us citizen. I used the bonifide resident test. I only made about 20k. I just wanted to go over with an account if i used the right test. If i did not and i mailed the retuen already can i use the physical presence teat and mail an amended return for 2013 wven though i juat mailed a late one for 2013.JA: Is there anything else the Accountant should be aware of?Customer: Yea for all of 2013 i was in australia leas ten days in vietnam. Australia was my taz home i paid income taxes. I had permenant employment in australia but got let go dfuqrring 2013 and for new permenant employment in australia.

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Mark Taylor

Certified Public Accountant

Masters

1,262 satisfied customers
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