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Life Insurance payoff
Asked Wednesday, January 28, 2026 by CWe are in California. 3 beneficiaries to a life insurance policy. Do we pay taxes for life insurance payoff for $100,000? If 1 person disclaim their share and it goes to the other 2 beneficiaries will they be taxed on that amount? Or will it just be added to whatever their original share is? I want to make sure we do not pay anything extra. Thank you for your help
Quick Answer:
Do I need to file?
Asked Tuesday, January 27, 2026 by LeoI'm 84 receive social security- no other income. Do I need to file a return?
CPA Answer:
Leo, in most cases, no.
If Social Security is your only income and you have no other taxable income, you usually do not need to file a federal tax return. Social Security benefits are only taxable if you have other income that pushes you over certain limits.
For a single taxpayer, Social Security becomes taxable only if your total income plus half of your Social Security is over $25,000. If Social Security is truly your only income, you are below that level.
You may still want to file if any of the following apply:
- Federal tax was withheld from your Social Security and you want a refund.
- You received a 1095-A for health insurance through the Marketplace.
- Your state requires a return.
- You had other income not mentioned, such as pensions, interest, or withdrawals from retirement accounts.
If none of those apply, a return is not required.
Melissa De Bedout
Capital gains
Asked Sunday, January 25, 2026 by ScottIf I make $54000 in pension income and this is my only income, how much in long term capital gains from the sale of stock can I have and still be in a 0% capital gains bracket
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Applying for ITIN
Asked Wednesday, January 21, 2026 by HaiderHello, I am reaching out to seek information about ITIN registration. We have an LLC registered in Wyoming and want to apply for ITIN. Can you please share the details about the process, timeline and costs associated with this. Thanks
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Tax Management and Options for Financial Hardship
Asked Friday, January 16, 2026 by MonserratI would like advice on strategies for managing federal tax payments and ensuring compliance while on an installment plan with the IRS. Additionally, what options are available for individuals facing financial hardship regarding their tax obligations?
Quick Answer:
Sold my moms house in 2025
Asked Friday, January 09, 2026 by ScottMy mother moved into a Memory Care facility January 2025. In order to afford the cost we sold her primary residence in October 2025. The house was held in our Family Living Trust, of which I am co-trustee and now have POA for her, since 2 doctors verified she is unable to handle her affairs. Need advice on preparing a 2025 tax return for her or the Trust. Also need advice on limiting the tax liability for the gain etc…Thank you.
CPA Answer:
Scott, in most cases this sale is reported on your mother’s 2025 personal tax return, not on a trust return, as long as the Family Living Trust is a revocable grantor trust. The IRS still treats the home as owned by her for tax purposes. Your Power of Attorney and role as co-trustee do not change that.
The main tax issue is the capital gain.
If this was her primary residence, she may qualify for the $250,000 home sale exclusion. To qualify, she must have owned and lived in the home for at least 2 of the 5 years before the sale. Time spent in a memory care facility due to medical reasons does not automatically disqualify her. The IRS allows a taxpayer who becomes physically or mentally unable to care for themselves to still be treated as using the home, as long as the 2-out-of-5-year rule is met.
The gain is calculated as:
- Sale price
- Minus original purchase price
- Minus capital improvements
- Minus selling costs (commissions, closing fees)
If the gain is under $250,000, there may be no federal capital gains tax. If it is higher, only the excess is taxable.
What you should confirm now:
- Whether the trust was revocable at the time of sale.
- How long your mother lived in the home before entering memory care.
- The original purchase price and improvement records.
- The closing statement from the sale.
A separate trust return is only needed if the trust became irrevocable or had its own taxable income.
Handled correctly, many families owe little or no tax on this type of sale.
Melissa De Bedout
Retirement accounts
Asked Thursday, January 08, 2026 by RickHi I have questions regarding distributions from an investment account. If I move to another financial institution what are the taxes? If any? Thanks
Quick Answer:
Tax liability
Asked Friday, January 02, 2026 by JOSEPHHello, I Own a llc. In Connecticut and do Excavating. I purchased .property in 2025 for 200k to ise for business operations. Im trying to figure out how much my tax liability will be come tax season.
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LLC Disregarded Entity
Asked Monday, December 29, 2025 by RonFiling business income (1099) and personal income(W2) When I contract work as a 1099, the payments will be routed to my business bank account and report tax as business income. However, I work one client as a W-2 employee. Paycheck will go to a personal bank account and file as personal income. Please let me know if this is appropriate for tax filing. Should I use my physical business address or mailing address for Tax filing?
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mortgage interest deduction
Asked Monday, December 29, 2025 by FrederickI have recently paid off a large portion of my reverse mortgage which included a significant amount of interest charges. Are the interest charges deductible and if so can the amount be carried over from one year to the next?