Today TaxMama hears from Teri in California with this question. “Do you know if there is authority for relief from the 10% penalty on early distribution of IRAs due to the California wildfires?” [Note: For working links, please see the Resource

Today TaxMama hears from Barry in New York, who wants to know. “I have an LLC incorporated in a different state than the one I reside in. I will run an Web-based business under this LLC. Does having the company incorporated in a different state create a

Today TaxMama hears from Guy in Connecticut, with this question. “Our local PTA, a 501c3, runs book fairs with a book company. We collect the receipts in full, then pay the invoice from the book company. Is the income from these activities the gross or

Today TaxMama hears from Simon in California, who tells us. “I have two friends operating a home-based business out of one of their homes. This is a part time operation. They agreed to share expenses and profits. Rather than file a 1065 can they just f

Today TaxMama hears from Sandra in California, who tells us. “I have a client that inherited a house from her father. She kept it as a rental income property. She cleared out all of his possessions from the property and put them in storage. Now she w

Today TaxMama hears from Roki in Michigan, who wants to know. “I have people calling me telling me I won sweepstakes. But the thing is they say that I have to pay a sum to get my winnings. Is that true or a scam? Also what is the best way to find out i

Today TaxMama hears from Barbara in New Jersey, who says. “I am the executor of my mother’s estate in NJ. I would like to take the executor’s fee that I am entitled to. I am trying to find out if her home that was just sold is considered an estate

Today TaxMama hears from Betty in Arizona, with this question. “ I realized that I didn’t deduct depreciation at all in my past 8 years tax returns. So I will use Form 3115 to capture all the depreciation. But this will create a big loss on Schedule E

Today TaxMama hears from Marilyn in California, who tells us. “ I have a client who is a resident of Maine and receives retirement income from CA (PERS or STRS). Does he have to pay state tax on that in CA and in Maine?” Dear Marilyn, Once u

Today TaxMama hears from Sue in Nevada with this question. “I am retired and working part-time as a consultant. All of my income is reported via ‘’1099’’ (not W-2). I must pay quarterly ‘’estimated taxes’’ (Form 1040-ES). If I pay th