asked
I have a business with my brother and he wants out. I am unsure how to limit my tax liabilities: a straight buyout, sale of his share to a third party, or total dissolution with sale of all assets. Additionally, can another family member buy out my brother?
December 19th, 2023
My wife is receiving a small pension from the UK and social Security benefits in the US. Her US pension is being partially offset by the amount of the UK Pension. How do I report her foreign pension on our Joint Tax return for the year 2016?
May 24th, 2024
I am 89 years old with an IRA worth about $480,000. I have been taking Required Minimum Distributions (RMDs) and my current annual income is around $80,000 from Social Security and pension. I am a widower and have been using Table III for RMDs. I have a financial advisor suggesting converting my IRA to a Roth IRA. What are the implications of this conversion, and should I proceed with it?
May 26th, 2023
How can I increase the basis of a gifted property in New Jersey, where the original purchase price was $4,000 and the property was sold for $1.5 million, without having documentation of improvements made in the 1940s?
September 20th, 2024
Individual A won $40,000 in a lawsuit and hired an Attorney who will receive $15,000 for Attorney Fees. Individual A will have a $15,000 expense to offset the $40,000 income. Individual A is an individual, not a Corporation, Trade or Business etc., and the $40,000 is not wages or any type of earned income. Questions: 1. Is sending a 1099 to the Attorney for the $15,000 necessary? 2. Is the $40,000 reported on Form 1040 line 21 Other Income? 3. Are there other places/options to report this income? 4. Will the IRS easily match the reported 1099 of $40,000? 5. Is there any other place to report the $15,000 expense paid to the Attorney? 6. What is the deduction proof for the $15,000 Attorney Fee? 7. Can a copy of the $15,000 Cancelled Check be attached with the tax return? 8. If a 1099 is sent to the Attorney for the $15,000, can it be attached to the tax return? 9. Is there a risk of the $15,000 Attorney Expense being classified as Wage or Earned Income? 10. Should the $15,000 Attorney Expense be reported on Schedule A line 28 Other Miscellaneous Deductions? 11. Can a worksheet showing the Attorney Paid Name etc. and the Expense be attached to show the offset of the $40,000 income on line 21 with Schedule A line 23? 12. Will reporting the $40,000 as described above clearly show it is not Earnings from work? 13. How does the Social Security Administration check for classification of earned income?
March 25th, 2024
An unmarried couple buys a house together and then splits, with one of the couple buying out the other to keep the house. Can the money used to buy out the other person be deducted?
April 3rd, 2023