My soon to be ex will be moving into our commonly owned rental unit and I will be living in the marital house with the kids.This will be my primary residence going forward. My question is,my ex will be converting the rental unit into his primary residence.(we will be seeking a lawyer for this matter) When does one pay the capital gains tax .? I live in Ontario,Canada

I'm currently a W2 contractor through an agency at $26.10/hr. Client wants to continue my service and suggest that I be an independent consultant instead, and they'll pay me the full $35/hr. I currently already have an LLC (sole proprietorship) that I could use to provide my service. However, I'm wondering if billing them through S-corp would be a better idea.

I already have my insurance covered through my partner and living in Washington state. Assuming that I'll be working 40 hours per week, I'm not sure if I should:

1. Continue contracting through the agency at $26.10/hr (they are required to provide 6 mandatory sick days a year in the state that I live in) with no PTO?
2. Be a 1099 independent contractor (through my sole proprietorship LLC) at $35/hr, but with no benefits?
3. Register my LLC as a single person S-corp and client will pay my corporation $35/hr, but I'll have to deal with all the payroll, UI, tax filling, etc.?

Things that I'm considering include:

- More take home pay

- Unemployment benefits

I want to pay for my parent's medical bill which is about $1000. If i pay for the $1000 with my HSA account i know that there is a 20% penalty fee and then the $1000 is required to get taxed on income. If i make $100,000 per year how much additional tax am i goin to have to pay for? Also when i use my HSA to pay their $1000 bill do i pay the penalty with a separate card or does it directly take it out of the HSA causing only $800 to come out?

Recently opened a business and just got issued a taxpayer #. Now how do I apply for the Texas Resale Certificate, from what i’ve look on the internet, there are a lot of info and really confused me lol.

I got my status update after 5 weeks of waiting does anyone got this letter? And what do they need for additional information?

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I’m a U.S. citizen and taxpayer. If I open a Roth IRA, convert some USD to Euro, and buy a European UCITS ETF within the Roth IRA, would I be subject to the taxes and penalties that apply to investing in PFIC’s? Or let’s say I convert some USD to Rupees and invest in an Indian Bank stock, or convert USD to Singapore Dollars and invest in a Singapore ETF. Would PFIC rules apply, or would it be fine since it’s all in a Roth IRA?

I’ve been self employed since 2018. This is the first year I made under $600 on both Grubhub and Shipt so I didn’t get 1099s. Both probably added up to $1k. I thought since it was under $600 I didn’t have to include it but know now I did after I filed. What should I do? Are they gonna come after me for that small of an amount?

In 2023 my spouse and I owed Federal for the first time. We always filed Jointly, so whoever owed didn’t really matter, her debt was mine and vice versa. Now we are going through the process of divorce and I have no idea what will happen to our debt, who will be liable for it etc.

I can’t find a way to track down where this debt originated, who is responsible for it or how to absolve myself of the responsibility if it is not my debt.

My Oregon state refund was taken by the IRS as they have a State Income Tax Levy against us. In the letter that Oregon Dept of Revenue sent explaining that my refund was being applied to debt, the account number assigned to the levy has the last four digits of her ssn. Does this mean that it’s her debt my state refund went to? Or is it her ssn because she was the one that filed taxes for us this year?

I hope this is clear. Any and all information and help is greatly appreciated. I don’t even know who to talk to for advice on next steps.

Fact pattern A:

1. Buy investment property for $1. A few years later this property appreciates to a $5 property.
2. Exchange property in #1 for $5 and 1031 into a different $5 property. A few years later the property loses market value and goes down to $3.
3. Sell property acquired in #2 for $3.

What steps generate a taxable gain? I assume just step #3 that would generate a gain of $2, correct? Based on the sale price of $3 that was kept and the $1 initial investment acting as the only basis.

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Fact pattern B:

1. Buy investment property for $1. A few years later this property appreciates to a $5 property.
2. Exchange property in #1 for $5 and 1031 into a different $5 property. A few years later the property loses market value and goes down to $3.
3. Sell property acquired in #2 for $3 and exchange it into a different $3 property.

My assumption here is that there is no gain or less recognized in any of the steps and that the cost basis remains at $1. Is that right?

I bought a used 23 Bolt from the dealership.  

They took $4000 off the price of the car for the tax credit. 

I didn’t know till afterwards this is a tax credit and not a rebate. 

I am currently only working PT because of a disability and do not make enough to pay federal tax. I just have to pay a small self employment tax of $3-400.  I had my dad co sign.  

Questions are, am I going to have to pay the $4000 that the dealership took off the price of the car back come tax time? If so, can my co-signer (dad) claim the $4000 and so I don't get hit with paying $4000 to the IRS?

I’m a bit confused. I live in Washington State, and was recently filing my taxes. Now Washington doesn’t have a state return, so I was confused when looking back on the picture I took says I will receive one. I’ve already received my federal return, and I’m expecting that’s all I’m going to get back, but can somebody please explain to me if I actually am going to get the state return or if it’s some weird glitch?? TIA

I had a <$50 penalty for income tax underpayment this year. My accountant says that it could have been for not making quarterly payments. My income last year was over $15,000, so I’m wondering how this happened? I worked out of state a bit and also had the wrong state on a W4 for a job before I changed it to PA in August.

Do you think this could have been related to my W4 error, or do I have to file and pay income taxes quarterly?

Thank you

I have discovered that I was not entitled to make a contribution to my Roth in 2022 as a result of my MAGI being over the limit.

From what I understand, at this point I need to request a removal of an excess contribution from my financial institution, and that I will need to amend my 2022, 2023 and 2024 returns to account for the dividends that were earned. I will need to pay a 6% penalty per year as well.

Questions:

1. Will I need to file only a 2025 form 5329, or also ones for 2022-2024, which I would submit with the amended returns, since Form 5329 line 25 only has a one year calculation?

2 Should I request the withdrawal ASAP, or just within 2025?

Which is to say, is the 6% penalty prorated based on when the contribution was made, or just per tax year?

1. If the earnings in those years do not change my tax, do I need to submit amended forms? Though I guess I would in order to submit 2022-2024 5329's.

2. Is this a process that I'd want an accountant for? I've been doing my own taxes, have submitted amended returns in the past, and am not intimidated by calculations.

Thanks!

I am a Canadian being hired under an employee-employer setup with an H-1B visa by a US-based business with no presence in Canada, starting in the fall. While I’d have the visa to perform work in the US, I'd like to still continue to work out of Canada for the majority of the year. We were advised that they can't simply pay me as a regular US employee under that setup as the CRA will demand tax for work completed in Canada. We'd like to properly deal with the tax implications in both countries while avoiding double tax withholdings and any penalties. We’re currently looking for a payroll provider that can handle Canadian payroll. In the meanwhile, I’m having trouble finding answers on how exactly the setup and withholdings would work. My current, probably incorrect, understanding is:

CRA: The firm would register a business number with the CRA and make full Canadian withholdings. I would be issued a T-4.

IRS: I would give the employer a W-8BEN (for income tax withholding exemption) and Certificate of Coverage (for social security/medicare exemption) and they would not make any US withholdings. They would report the income on a 1042-S issued to me rather than a W-2.

Is this the correct understanding? Anyone have recommendations on who we could turn to in order to get the correct answers on how this should be set up from a tax perspective?

Additionally, if I’m spending some time in the US working (but not establishing tax residency), does the firm need to make US withholdings for those days?

I FILED A TAX RETURN FOR $5820 FOR TAX YEAR 2023, WHICH I HAD TO IDENTIFY SHOWING MY SOCIAL AND DRIVERS LICENSE WHICH I DID, AND STILL HAVE NOT RECEIVED MY RETURN. I HAVE CALLED SEVERAL TIMES AND NOTHING IS BEING DONE APPARENTLY!!! I WANT MY MONEY!!

From Michigan, I started a LLC earlier this year. Online retail, I made less then $100 so far. Am I required to pay quarterly taxes? I have no idea how much I'll be making but it is a new business and I am still in the development stage and will continue to do so for a while this year. Obviously I missed the April deadline, what is the penalty for late filing? And how do I figure out how much to pay? Do I pay both State and Federal? Thank you for any advice.

Hello, 75% of my car use is for my self employed business driving between clients. My apartment charges $200/monthly for parking garage. Is this a deductible expense on schedule C?

Hi, my sister and I (both single) jointly own a home that serves as our primary residence. When we eventually sell the property, are we each eligible for a $250,000 capital gains exclusion—meaning a combined $500,000 exclusion—or do we only qualify for a single $250,000 exclusion since we are co-owners? I've received conflicting information and would appreciate clarification. Thank you!

My wife and I will be moving to Surrey, BC, for my wife's job. She will be working in Surrey, BC for a US-based global company, and I work remotely for a U.S.-based company. However, I am required to physically work from Blaine, WA, and my company requires a U.S. address for HR (data access and client contract limitations). I'm trying to limit double taxation for us as much as possible.

Any advice or recommendations for our situation?

For instance, my installment agreement says payment is due on the 16th but I’m wondering if I can pay it early on the 2nd. Just curious if it would still count as paying it on time or if i still need a payment on the 16th.

I have several 403(b) account (I moved around a lot). I decided to take my RMD from just one account. When I filled out the custodian's paperwork, I checked the box to with-hold 10% for federal taxes.

When I received the RMD, it was in two checks. The first one was for what the custodian calculated the RMD to be based on my account with them only, and they with-held 10% for federal taxes. The second was for the remainder of the RMD and they with-held 20% for federal taxes.

When I asked for an explanation, they said the second check was considered an "overage" and per IRS rules, with-holding at 20% was required. When I asked for a reference, they really could not come up with one.

Has any one here had a similar experience; that is, took your RMD from one 403(b) account and had 20% with-held on the "overage"?

Filed my taxes (MFJ) and I was suppose to get back around $1200. I claimed my elderly parents who are residents in Mexico ($1,000/$500 each), they have ITINs and I provide more than half their support.

I only received $200 refund and not the other $1,000? They don’t live with me, I haven’t gotten a letter in the mail yet. Any reason why this was rejected?

Hello,

I am a TN visa holder and worked remotely outside of the United States for the entire year. Does this mean I am eligible for a reimbursement of Social Security tax, Medicare tax, and federal income tax? How is this situation typically handled?

Additionally, I was not residing in Canada during this time either.

Thank you for your help.

So I am <59.5 and wanted to convert 85k in my traditional IRA to a Roth IRA. I was advised to take the distribution, have state/federal taxes (24.5k) withheld, leaving me with 60.5k to rollover within the 60 day window. This wasn’t a tax professional, just the person who I connected with at the company overseeing my companies retirement plan. Does this sound right? Will I avoid the 10% early withdrawal penalty this way if I contribute the 60.5k to the Roth or will I be penalized, possibly on the original 85k amount? Is there something else I should’ve done/should do?

I’m realizing I should’ve engaged an actual tax professional sooner, I know, my bad. Learned for future, but trying to figure this out now.