I have a client who is filing 2014 and 2015 taxes. He has some thousands of dollars in penalty for 2014 and is eligible for a first-time abatement of penalty. Should I file for this when I file the tax return? Do I need to have a POA to do so?

May 11th, 2024

A single-member LLC, taxed as an S-Corp, reported a $10K loss for 2014 and a $9K loss for 2015. The company is closing in 2016 with no assets or liabilities. The member did not perform basis limitation calculations. The company equity at the end of 2014 was $8K, attributable to the member. Questions: 1) Is it correct that the member's basis is measured after the loss, even though the losses were funded through contributions? 2) If the individual amends prior tax returns to suspend losses and shows zero basis for 2015, can they unsuspend the losses when the company is dissolved? 3) Are unreimbursed expenses reported on Schedule A also limited by basis?

November 7th, 2024

My wife and I together draw 34,377.60 in social security. If we just claim the standard deduction and ourselves as dependents, how much more money can we make in a year before we have to pay any taxes?

November 26th, 2023

My client has an LLC treated as a partnership for tax purposes. One of his partners needs to be reimbursed for health insurance. In 2015, the partnership had no income and the partner paid insurance from his personal account. The partners agreed to treat the payment as a loan and reimburse it when the company makes money. Do we report it as guaranteed payments, and if so, do we report it on K-1 box 4 and box 13 (M)?

April 21st, 2024

My father added me to a savings account of his. His reasoning is that I can go and take it out right away so it doesn't go through probate. My question is - will this be taxable income to me? The amount is around $90,000. His total estate would be under $500,000.

September 23rd, 2024