asked
I am a 42-year-old single individual with no income and no dependents. I need to withdraw $35,000 from my IRA to pay off debt and bills. How will I be taxed on this withdrawal, and what are the potential penalties or alternatives to consider?
February 9th, 2024
I prepare income tax returns for friends. A friend recently passed away owning tillable farmland with underground tile drainage, which is depreciable. The farmland was appraised without allocating value to the tile drainage. I have a 1995 tax seminar booklet stating that, in the absence of hard facts, the depreciable cost of underground tile drainage should be approximately 5% of the fair market value. My question is, has this 5% value allocation been increased since 1995? Is there a more recent training manual allowing a higher percentage of allocated value?
December 21st, 2024
My wife is a green card holder working at the Mexican Consulate. She earned income, but the consulate didn't provide a W-2, only proof of income. How do we report this income on our taxes, and does she owe taxes on it?
March 24th, 2024
I have a couple who are not legally married but have been living together for years and have one child together. He is the only one with income, and she does not work. How should they file their taxes?
July 20th, 2023
Parents quick claim deeded their vacant farm land and a home attached to it to their son in 2017 and 2018, respectively. They were renting the home to the son before gifting it. They claimed the rent on their tax return and depreciated the home over the years. The combined value of the land and home, less depreciation, is estimated at $110,000. No money was exchanged between the parents and son. Do they need to file a Form 709 (Gift Tax Return) even if they will never reach the $5.49 million gifting limit?
October 22nd, 2024
I have underreported depreciation on an asset because I misclassified it under the wrong asset class (it should be 15-year qualified restaurant property and I have it as 39-year property). How do I adjust this on the next tax return without amending last year’s return, which was a partnership with too many partners? Is filing Form 3115 the only solution, and would my situation be considered an automatic change procedure? Also, since this will result in a negative 481(a) adjustment, will I be able to take it all as catch-up depreciation in the current year by just attaching a corrected depreciation schedule?
September 1st, 2023