Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I withdrew $140K from my IRA to start a small business in…

Customer Question
I withdrew $140K from my...
I withdrew $140K from my IRA to start a small business in Jan 2015, i did not pay taxes upfront, is there a way to defer taxes owed due to small business start up
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
2/29/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,988
Experience: Taxes, Immigration, Labor Relations
Verified

There is was a way to continue deferring the tax liability as long as the money are in the IRA account.

As soon as funds are distributed - income is recognized fro tax purposes - and reported on your tax return.

Ask Your Own Tax Question
Tax Professional: Lev, Tax Advisor replied 2 years ago

There is no additional deferral option regardless how the money are used.

But depending on your business expenses - you might be eligible to deduct some of these expenses as soon as your business already started.

If these are startup expenses - they are capitalized - and you only start deductions after the business started.

Please communicate back if you have any specific expenses which you are not sure where or how to deduct.

.

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,988
32,988 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
In preparation for MN income tax return, we noticed a
In preparation for MN income tax return, we noticed a discrepancy and would like to receive a transcript for the 2016 income tax return for MN. We have a POA on both spouses, thanks, … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
What determines tax liability for US citizens in Germany? If
What determines tax liability for US citizens in Germany? If I moved to Berlin in March 2017 under a Schengen visa and didn't finally get my work permit until June, do I have to pay taxes for the peri… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,397 satisfied customers
What is the tax liability on a frozen pension from outside
What is the tax liability on a frozen pension from outside of the US being brought to the country? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Is California IHSS provider income deductible if the
Is California IHSS provider income deductible if the recipient is my mother who lives with me and I am her main care provider? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
What is my capital gains tax liability on commercial
what is my capital gains tax liability on commercial property inherited in 1991. assessed value at the time of inheritance was $171,000. Selling price would be $850,000; $200,000 at time of sale - bal… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,397 satisfied customers
How much can I deduct on my 2017 income tax return for meals
How much can I deduct on my 2017 income tax return for meals per day when my husband went to Hangzhou, china on Sept. 2017? … read more
abci168
abci168
Principal
27 satisfied customers
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
My business expenses are less than my standard deduction. I
my business expenses are less than my standard deduction. I am an independent contractor. Can I deduct both? … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
111 satisfied customers
Looking for estimated tax rate for 500,000 income in 2017.
looking for estimated tax rate for 500,000 income in 2017 … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,512 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Tax question: Can you take a deduction as a business expense
Tax question:Can you take a deduction as a business expense the cost of medical treatment due to a work related injury (piano teacher needing chiropractic treatment due to hand injury)? Please provide… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Is there a tax liability on coins that were being stored by
Is there a tax liability on coins that were being stored by an investment company but I now physically possess them? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My 2017 Fed tax liability is $32k due to a series of life
My 2017 Fed tax liability is $32k due to a series of life events that necessitated a withdrawal of $140k from my $240k IRA in 2017. My only source of income is $22k/yr. SS and my IRA. I am 72 yrs. old… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,397 satisfied customers
I have a tax liability with the State of Wisconsin. Can the
I have a tax liability with the State of Wisconsin. … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
Can C-corporation deduct as business expense money paid for
Can C-corporation deduct as business expense money paid for life insurance policies that were purchased to fund bye-sell agreement? The Owner and the Beneficiary of this policy is 50% shareholder of t… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Tax deductions. Can i deduct the conversion on my income
tax deductions JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: can i deduct the conversion on my income taxes JA: Is there anything else the Accountan… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Unreimbursed Employee business expense - I have a taxpayer
Unreimbursed Employee business expense - I have a taxpayer who is a pilot. 1. What are the extra/special items that the pilot can deduct under unreimbursed employee expenses on his Schedule A? 2. Will… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
Am I going to be able to deduct business expenses, such as
Am I going to be able to deduct business expenses, such as mileage etc. as a 1099 employee. I am a salesperson and have a home office. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,283 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x