I've been doing freelance editing and ghostwriting for several years and earn about $40k annually. I want to write and publish a book on astrophotography, which would require about $2-3k worth of gear. Assuming I can write off the gear as an expense as long as I use it for research, what happens when I'm done with the gear? If I sell it, do I have to claim the sale as income, and if I keep it, do I still claim its value as income?

November 20th, 2023

My father died overseas and left a small life insurance. My brother would like to give us some of the money using the tax-free exception to me and my wife (bank-wire). Both of us are in the same savings/checking account. Can we receive $28000 (14,000 p/p) tax-free, and if so, would the same account be a violation? Would this gift offset other benefits such as IRA contributions and tax bracket position?

November 29th, 2024

For an S corporation with one owner, can the husband (as the 100% owner) register his spouse as an employee of the S Corp and as a result enjoy the benefit of 401K deduction (the employer portion) and health premium deduction? Additionally, should the spouse's health coverage premium amount be reported on the W2, and can the maximum amount for the 401k employer contribution and employee contribution be deducted on the spouse's paystub?

April 12th, 2023

If a real estate property valued at $1.5 million will be inherited by one of the children in a family through a revocable trust, does that property get applied to the $5.45 million lifetime gift and estate tax exemption?

August 26th, 2024

On line 5a of the 941 form, we had 4 employees in July, 3 in August, and 2 in September. QuickBooks filled out the form showing 2 employees, but I feel it should be 4. What number should I put on line 5a of the 941 form?

January 13th, 2023