asked
I have an oil well production question: Do you think there's any magic limit or number that would raise a red flag as a loss on a small producer's Schedule C? I have a client who had revenue around $250k, expenses (mostly Intangible Drilling Costs) around $750k. The numbers are completely legitimate, but to show a half million dollar loss makes me a little nervous. Additionally, he sold approximately $680k of leases (to cover the costs of the improvements to the remaining wells), and there is very little basis in those wells. So I'd be showing a Schedule C loss of around $500k against a Capital Gain of around $500k. Thoughts?
June 24th, 2024
A married couple files jointly. The husband has $275,000 in wages for 2013, and the wife has $20,000 in wages for the first quarter of 2013 before resigning. The wife, as a sole member of an LLC disregarded for tax purposes, earns $17,000 in profit from wedding planning. Is a SEP-IRA the best way for her to defer federal income on this $17,000 profit, and do the same income limits that apply to a traditional IRA apply to a SEP-IRA so that she is prohibited from contributing to a SEP-IRA?
February 10th, 2024
I am selling an inherited property to my cousin. He gave me a substantial down payment, but the transaction will not close this year. What do I need to show/tell the IRS when I do the taxes to avoid tax consequences, especially since I am selling the property for much less than its inherited value?
August 1st, 2024
Is it true that you can deduct the tax you paid on a new car?
July 7th, 2023
Are disability benefits paid by an S corporation for the shareholders deductible?
April 18th, 2023
I am getting few hours of nanny service in exchange for rent from our mother-in-law's apartment. What are the tax documents that I need to file and also to provide my nanny in this situation?
March 21st, 2023