I have lived in my house for the last 20 years. For the last year, I have lived with my daughter and her husband at their house in the same town. The reason I have not lived in my house is that I allowed my son and his family to live there for a short period while he transitions from Texas to Idaho... Read more »
You will not have to pay taxes on the income of the sale of a personal residence for up to $250,000 (single taxpayer)/$500,000 (married filing joint taxpayer) of income. However, you must meet the ownership and use test:
During the 5-year period prior to the sale of the home, you must...Read more »
If you are the beneficiary of the trust and the trust document calls for you to receive the income from the trust than you will likely have to pay taxes on any amount of income generated in other states to their taxing agency as well as to yours in Arkansas. However, a lot of the determination on...Read more »
I am an international student and this was my very first time filing taxes, so I was completely confused on a lot of things. I filed using Sprintax and paid the $92 I owe the state of North Carolina online as well. But the problem is, I didn’t know that the next step was to mail the signed... Read more »
Assuming that you paid the full amount due on the tax return in a timely manner you shouldn't have anything to worry about. Most states as well as the federal government base any penalties related to the late filing of a tax return on whether or not their is still a liability when the return is...Read more »
If your wife takes over the account at your death, there will be no tax consequences other than the annual tax consequences of the trading activity within the account. You can pass your estate to your wife tax free.
Federally, the statute of limitations never starts to run until you actually file a return. Many states have his same policy. Sometimes they will look at your income and generate an amount due based on a single filed, but this does not start the statute, you will still need to file your own...Read more »
I left my Raleigh NC job at the very end of 2017. In 2018 I didn't work any hours for my NC job nor was I a resident. I moved to WA state where there is no state income tax and I work at a full time job in Richland WA. If I didn't live in NC or work in NC....and a NC company sent me a bonus check... Read more »
The bonus that you received was in relation to work that was performed in NC, therefore, NC can tax you in relation to that income. If the income was produced or "earned" in that state's jurisdiction, that state has the right to tax that income. The other way that a state would be allowed to tax...Read more »
During that time i finally graduated Chico State University. I don't have to pay this debt because i have qualified for Total and Permanent Disability through a student loan company called Nelnet. There is a catch during the last 3 years
from May of 2015 through May of 2018 i had to be... Read more »
Any time you have a debt that is forgiven, you will owe taxes on what is considered forgiveness of debt income. How much you will owe depends on the state where you live as well as what type of income you have on top of the cancellation of debt income.
Have 2 qualifying children. One has daycare expenss the other I've claimed $0 in expenses. TurboTax, IRS form, IRS website, and IRS calculator says she can be added to the form as a qualifying child but the IRS rep from audit feels otherwise. Can anyone clarify? The question is, Can I add her... Read more »
I took my required minimum distribution (RMD)from my qualified retirement account (simple IRA) early in April the year before the RMD was required. The next year (year it is required to start withdrawing) can I wait until December 31st?
Your required minimum distributions are determined on an annual basis. Therefore, if you took the distribution last year and are trying to include that distribution as part of your required minimum distribution for the following year, it won’t work. There is a different equation that is used...Read more »
Since the LLC will be a single member should I choose to be disregarded as an individual entity or register my LLC as a corp or S-corp? My main goal is to pay the absolute minimum taxes and to have the maximum deductions.
It somewhat depends. If you create an LLC that is a disregarded LLC with you as the single member, then you will have created a sole proprietorship. Whatever the net income is from the LLC you will be required to pay 15.3% in self-employment taxes above whatever your normal income tax rate is....Read more »
Qualified medical expenses that are part of the deduction will remain the same under the new law. For 2018, you will be able to deduct expenses exceeding 7.5% of your AGI. Therefore, if your AGI is $100,000 you will be able to deduct all medical expenses that exceed $7,500. Anything under that...Read more »
He himself would be the proximate cause of his injuries and could not recover from you individually for his injuries sustained in an accident while driving your car. He could, however, still recover from the insurance company of the driver at fault or from your insurance company if they have...Read more »
I owe the IRS $6500 and have the check ready to go. Will they reject my hardcopy without him signing as tax preparer? Is this legal for him to do? I have paid in full for my personal taxes, which he refuses to efile until I finalize pmt for my corporate taxes.
I am retiring soon, and plan to roll my government 401K-type plan into a self-directed checkbook IRA, with me as administrator and possibly also custodian.. The principal investment will be flipping foreclosure homes. I plan to buy the houses jointly with my IRA, to maximize the funds I have... Read more »
You cannot live in the house. Anything that you use IRA money to buy cannot be for the benefit of the IRA member. You can manage the LLC that you set up, but you cannot work on the house yourself nor live in it during renovation. That is a prohibited transaction and will cause the IRS to...Read more »
If you distribute from your IRA to pay medical bills, the distribution would be considered taxable income and be subject to income taxes at your normal income tax rate. You don't have to pay a 10% penalty for the early withdrawal once you have reached the age of 59 1/2. However, even if you were...Read more »
The IRS will place liens on all property owned by the tax debtor. Therefore, if your father does not owe the IRS money and has other property, that other property will not be at risk of having a lien filed on it, nor will they be able to levy or seize that property. The vehicle in which your name...Read more »
If she is simply gifting the proceeds to the children they would not have to pay tax on the proceeds. If her name was on the deed and she paid the taxes associated with the sale, she can distribute when she feels. She may however have to file another tax return if the gifted amount is more than...Read more »
It just depends on what type of work you are doing now. For instance, if you are working for another company, you might roll it into their 401k plan. If you are in retirement, the IRA might be a good option because you are just waiting on distributions. If you are running your own business, you...Read more »
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