Best Rated Taxes General Forum

Subject Author Posted Replies
 
Officer Salary
Scenario: An individual owns 100% of S-Corp A and draws no salary during the year Same individual owns 51% of S-Corp B and draws weekly salary (annual salary exceeds the social security earnings m...
4 weeks ago 1
 
Annual Exemption
Re: Annual Exemption We want to use the annual gift  exemption and give our kids a few dollars. Our children are over 21 years of age. Is there a way we can open an account with their name on th...
2 months ago 11
 
Home Sale Exclusion
Hi All - I got an inquiry about the home sale exclusion. This person left his primary residence 3.5 years ago for a new job in another location - more than 50 miles away. Based on Publication ...
2 months ago 4
 
1031 stretchout - what is this?
I have seen websites touting this, some stating "convert almost any appreciated capital transaction into a deferred sale. Take 100% of the income or let the principal grow for your family's future...
7 months ago 9
 
IRS Notice 54
I filed taxes earlier in the year, owing around $60, which I paid with the filing. Then I got a Notice 54 with a check for $14, stating I would "be receiving a notice in a few days that explains why ...
1 year ago 1
 
Gift value for illiquid asset
With the talk of tax reform, I am researching a particular aspect of the gift tax. I understand the $5.49M exemption on the death of an individual, the ability to retain that amount when one half ...
2 years ago 9
 
gift tax consequences of Coverdell ESA transfer to 529 plan
I have a Coverdell ESA with my child as a beneficiary. The Coverdell custodian recently announced to me that they're dropping support for the account, so I need to liquidate the account. I'd like to...
2 years ago 5
 
Wash sales on a liquidated account
I'm having problems finding a tax code or IRS statement on point. Is it accurate to say that there is no wash sale when you liquidate your holdings even if you bought a "replacement" security days...
2 years ago 2
 
Kiddie Tax, Foreign Parenta
With the recent question of the kiddie tax, I recently had an inquiry from a student who comes under the kiddie tax. The glitch is that his parents are Canadian, and have no US source income. I...
3 years ago 4
 
Can a sale of private stock with a fixed amount held back in escrow for 1 year and made "available to the buyer in certain situations to cover indemnification claims" be reported using "open transaction" method?
Background. I owned series A and series B preferred stock in a private company that merged with a public company in 2015 giving rise to large gains.The merger closing date occurred in September 2015 a...
3 years ago 1
 
Post-dated check, mobile deposit & constructive receipt
One of my tenant's January rent check (due January 1, 2017) arrived on December 31. I used my bank's mobile app to "deposit" the check and received a confirmation email that same day. December 31...
3 years ago 8
 
Amending Form 8288-A
The situation is that my client submitted a Form 8288-A with an old SSN and received a stamped copy from IRS a while ago. Then, he filed his personal tax return with a new SSN after getting VISA. Is i...
3 years ago 1
 
Liability of Incorporator for unpaid Franchise taxes
How does an incorporator of a never activiated C corp avoid personal liability for the years that entity did not file tax returns or make payments of the minimum California frachise tax? Gary -- ...
3 years ago 2
 
Re: 1031 exchange question. Is this illegal?
Re: 1031 exchange question. Is this illegal? *********************************************** We would like to sell a rental home and do a 1031 exchange. We are under a lease with the tenant till ...
3 years ago 5
 
Gifts and IRS Forms
If my wife and I want to give my son $20,000 from a joint checking account can we write two checks and not have to use a Form 709, Gift Tax Return? --
4 years ago 3
 
Market Discount Accretion for bonds bought at market discount
Market discount accretion generally requires reporting a portion of the market discount annually as additional interest and increase the basis by the same amount. I the bond defaults or stops paying...
4 years ago
 
Rules on using HSA funds for legitimate medical expenses
Hi, I just want to make sure I am doing things according to IRS rules. Have a baby on the way, and have been paying all OBGYN bills via personal credit card. Can I do that, and then at the end of ...
4 years ago 19
 
Taxation of Belgium military and NATO pensions in the United States for US resident
My client lives in CT and receives both a NATO old age pension and a Service des pensions du Secteur Public (SdPSP) for military service in Belgium. He claims that 1/3 of his income went as contribu...
4 years ago 1
 
A question on home sales
A friend had his house sold (or so he thought), but it fell through. The person backed out and my friend kept the earnest money. Is that income? Does it impact on the tax basis of the house? Anyth...
4 years ago 2
 
How to deal With W-2 and 1099 with Incorrect EIN
The treasurer of a small Not-for-Profit I am associated with issued a few W-2 and 1099's with an incorrect EIN for the organization. The treasurer corrected the error today and will file the correct...
5 years ago 1