I inherited mineral rights in New Mexico in 2002 and have received some money each year. Now that I have sold them, I need to establish the cost basis for our inheritance. I was the executor and believe I made a mistake. Should I consult a CPA this year, and how do I establish the cost basis?

August 27th, 2023

I ran my business as a sole proprietorship for the first 2 years, then converted to a PLLC with S Corp election and was in corporate status for the full year 2011. If I had assets like a desk, printer, etc., on prior returns as a sole proprietorship which were fully depreciated in 2010/2009, do I still record those as a transfer to the S Corp as assets or capital contributions when it was formed? What about depreciation for my vehicle I used for business (80% usage)? Is that considered a depreciable asset as well that transfers to S Corp, and where do I record that in my return? The vehicle is still in my personal name, not the PLLC name. Even though not necessary due to sub-$250k revenues and assets, I am wanting to fill out a complete Schedule L and M-1 Balance sheet for record-keeping purposes.

March 18th, 2023

An individual on disability with low income is not required to file federal tax returns. However, he also operates a small business (sole proprietor, retail store) with very little income after expenses. Is he required to file federal tax returns because he operates this business? Or would he be exempt from filing if his total income (including the store's) fell below a certain amount? If he is required, can you please provide the law or IRS code that applies?

April 23rd, 2023

I owned an S corporation in Michigan that shut down and no longer exists in the state. I received a bill for taxes due from 2009, long after the corporation was closed. Taxes were paid at the time of the return, but the state said that after reviewing the return, there is a balance due. I had a tax firm complete the tax returns. The company is no longer in operation. As the sole officer, am I responsible for the state of Michigan tax debt?

February 6th, 2024

How do you report 401K contributions for partners on a K-1, and should these contributions be included on lines 19A as distribution and on line 13R (pension & IRA)?

November 10th, 2024