A taxpayer used to have a Schedule C musician trade/business, during which musical instruments were purchased and depreciated. The trade ceased and was inactive for a couple of years. The taxpayer took the fully depreciated asset as a personal asset (basis zero). When they sell that asset, is there any depreciation recapture? Assume original cost of $20,000 and full depreciation. Assume the instrument appreciated to $50,000, is sold, and total income is in the net investment tax range. I'm struggling with treating this as a personal asset sale, subject to NIIT, or as a sale of a business asset. Thanks in advance.

April 1st, 2024

Where do I add the W-2G gambling forms when filing a return, specifically a short form senior form, and how should I report gambling winnings and losses?

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My niece is disabled and receives SSI. She recently received a $190,000 IRA distribution from her father's account and needs to choose an option for federal withholding. What is the best option for her to choose to protect her disability status and avoid potential inheritance tax issues?

July 16th, 2023

Is it correct to fill up form W8BEN-E if your company address is in the Philippines and the beneficial owner is a US citizen?

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How can I find out if someone claimed me as a dependent without my knowledge, especially if I am on disability and don't typically file taxes?

October 23rd, 2023