any accountants out there that i can ask a question?

[ffam]

When was the property inherited?

I am not an accountant but I don't think they will have to pay taxes as the cost basis is calculated from time of death, not the purchase date.

Yup.
Their "purchase price" is the value at the time they inherited, not the purchase price  that their parents paid.
So if they recently inherited, their capital gains tax will be minimal.

Sorry, thanks for responding. I’m not sure the details about the inheritance, that wasn’t what I was asking about. Apparently they recently sold something it was a big hit for them so I guess I don’t know the details of how the company was/is structured.

I’m asking if there are ideas from accountants or anyone that can be creative ways to get around having to deal with a chunk of capital gains taxes that I can present to them to convince them to sell….

Sorry I did say

Not sure how to phrase my question exactly….

[yochai]

I’m looking for an accountant to help me setup/manage a small business.
PM me with any leads.

[Essen est zich]

Am I expecting a 1099 from reselling the ts ticket?

https://www.keepertax.com/posts/do-you-pay-taxes-on-reselling-tickets

[gozalim]

EIC Question

Currently EIC (and related child credits?) are limited to earning "under $11,600 investment income"

*does "tax exempt interest" (line 2a) count towards that?
*are there other related 'expenses' that can mitigate against this number? anything to check for?
*is there any type of mitigation that can be done after 12/31? some kind of loss harvesting? somehow transfer the appreciated assets?
(e.g. IRA contribution now will lower total AGI, but not this portion)

[Dawie]

EIC Question

Currently EIC (and related child credits?) are limited to earning "under $11,600 investment income"

*does "tax exempt interest" (line 2a) count towards that?
*are there other related 'expenses' that can mitigate against this number? anything to check for?
*is there any type of mitigation that can be done after 12/31? some kind of loss harvesting? somehow transfer the appreciated assets?
(e.g. IRA contribution now will lower total AGI, but not this portion)

not that i recommend it but...
nominee

[gozalim]

an extreme measure would be to file married filing separately?

[Dawie]

an extreme measure would be to file married filing separately?

You can't claim EITC if your filing status is “married filing separately”.

[gozalim]

*does "tax exempt interest" (line 2a) count towards that?

[Goat]

Unearned income limit only applies for EIC, not the CTC (Child Tax Credit) or Dependent Care Credit.

Yes, non-taxable unearned income (e.g. tax-exempt interest) counts towards the limit.
No expenses, just a decrease in net unearned income. (Interest + dividends + capital gains/losses + passive activities, e.g. real estate + k-1's).
IRA/HSA/FSA/529 contributions, Sch C losses, etc, won't help. Not really much you can do about it now, unless you know of a company that can retroactively give you losses of the type listed above.

It's not as bad as it used to be, when the limit for unearned income was less than $3K, and young couples would lose $10K+ in tax credits because their grandparent did them a favor and gifted them a bond that had $3K of interest. That was PAINFUL

[gozalim]

Unearned income limit only applies for EIC, not the CTC (Child Tax Credit) or Dependent Care Credit.

can still cut out 5-8K between fed and state

Yes, non-taxable unearned income (e.g. tax-exempt interest) counts towards the limit.

ouch. this was likely the mistake...

No expenses, just a decrease in net unearned income. (Interest + dividends + capital gains/losses + passive activities, e.g. real estate + k-1's).
unless you know of a company that can retroactively give you losses of the type listed above.

would it be necessary to have some of the income be coming from that type? (i.e. if all the existing income reported there is variety of banks etc.)

[gozalim]

not that i recommend it but...
nominee

proper use case for nominee would be: "X"(person? business?) had given me money to place in my account (interest/investment) on his behalf, and I then already gave him the (relevant portion of) the interest earned therefrom?

or is that also an audit risk/bad idea even then?

[Goat]

can still cut out 5-8K between fed and state

What? I don't understand what you mean by that.

would it be necessary to have some of the income be coming from that type? (i.e. if all the existing income reported there is variety of banks etc.)

Ditto. If you can give specifics to your case (I don't need names or exact amounts, just ballpark figures) I can try to explain better.

[gozalim]

What? I don't understand what you mean by that.

putting my info into Turbotax, when I imported the bank info into TT, my projected federal return dropped by about $5K, and NYS projected dropped by another $2K plus

Ditto. If you can give specifics to your case (I don't need names or exact amounts, just ballpark figures) I can try to explain better.

all income came in from banks (Interest, Dividends, etc.), would a RE loss be able to offset it?
(referring to the 'retroactive' comment)