I started renting to tenants and airbnb 5 months ago. It never dawned on me to change my property class from primary (3.1) to primary rented to lodgers (3.3). Wondering what penalties I might be looking at and the best way to go about changing my class / preparing for back taxes, etc. I'm in Phoenix. submitted by /u/goltoof [visit reddit] [comments ..read more

My Dad has to take out $70,000 out of his IRA to pay for caregivers this year. He is in his 80s. There are no other money options except his house. (He also has already paid $140,000 for care givers. Some has been to a care giving company, and some of that, a little more than half, is from his sole propriership company that I set up to do W2s and pay employee taxes using Paychex. Is there a way to minimize his taxes on this? Fred I will also submitted by /u/Reckless_Fever [visit reddit] [comments ..read more

Curious how that would work if I were to buy a branch of a company submitted by /u/Property_Hopper [visit reddit] [comments ..read more

Two years ago, I got hired as a part-time paid intern. I signed a W-9 form and a 3-month contract. I was offered a company laptop but asked to use my own since I was more used to it. I received a company email address and was added to their Slack. I received an employee handbook that said I was under at-will employment and could be terminated at any time, and an offer letter that highlighted my expected work schedule, my hourly rate, and the end date of the 3-month contract. In my first week, I participated in training meetings where I was instructed on how to complete specific tasks. Three m ..read more

Hey folks, I seen a couple threads on a similar question but I want to include my situation for context if I need to pay taxes or penalties. Roth IRA was opened Dec 2019. I contributed $6,000 each year of 2019 - 2023, for a total of $24,000. I have bought stocks & mutual funds over the years and now it has grown to $50,000. None of my contributions or profit is in cash (all of my roth ira is in the form of stocks and mutual funds). I am in need of $20,000. If I were to sell some of my stocks and mutual funds and transfer that money to my personal checking. Would I need to pay any taxes or ..read more

I appealed an audit from when I filed jointly with an ex spouse and they underreported money that I had no knowledge of. I provided my evidence for innocent spouse relief and received a letter....Based on the information available, we have decided to withdraw your liability with regard to the income tax assessment dated without prejudice at this time. Does that mean the state revenue service can reopen the audit or my ex can reopen the case? Will the interest still grow in the event that the case is reopened years later? submitted by /u/pingpingofdeath [visit reddit] [comments ..read more

Hey all! I started a business in MA that focuses on health and wellness and I have been set up as an LLC, elected S corp. I also have a separate job where I am paid to do similar things, but as an independent contractor. I am paid via Zelle (I understand that is a bit of a “no-no”, but that’s just the facts of the situation). My business is losing money, as would be expected for a startup. Am I ok to run the 1099 income as schedule C through the business, using the business losses to offset my income? I have reached out to the CPA who filed my taxes last year and have not heard from him or hi ..read more

I'm trying to figure out if I'm caring for a lady who is 61 and it's legally fully disabled. If I'm living with her and shes on Social Security Disability and gets around $1,500/ Monthly I'm 28 years old and living here submitted by /u/DigitalGravityAgency [visit reddit] [comments ..read more

I have read quite a bit about cost basis and depreciation, still confused. Purchased a home 10+ years ago, it’s been a rental for 2yrs. This would be the first year I am depreciating it on our taxes.. I know how much I paid for the home, but I don’t have closing documents showing taxes, fees, line items etc. that I can add to my base.Can I just use a generic 2% added to cost of house? Also, do I not use the adjusted basis as to what the house is worth now? I’ve done upgrades, finished the basement, new hvac units but don’t have records.. Once I find my basis I would just divide by 27.5, Every ..read more

submitted by /u/KnoxOber [visit reddit] [comments ..read more