| Subject | Date Asked |
|
| Gifting Money | 11/17/2008 |
Q: I know I can give my son $11k per year and my wife can do the same. But can I give my future ...
A: Yes, and if you were so inclined you could gift me $11,000. But. . . why all the gifting? Is it to ...
|
| Ownership of Rental Property | 11/15/2008 |
Q: My son and I inherited a home which we own 75/25. We intend to rent it. My question is about the ...
A: Because you own it jointly, you are already a general partnership by default. If you go with this ...
|
| Adding LLC "members" from outside the US | 9/23/2008 |
Q: We currently are operating an LLC out of the state of Arizona for our software organization. We ...
A: To answer your explicitThe LLC would be obligated to withhold (and pay to the IRS) 30% of the money ...
|
| S Corp profit disbursements | 9/22/2008 |
Q: I appreciate your time in answering my question. I live in Texas and on August 1 became a partial ...
A: I'm not trying to be evasive or hard to understand, I am just trying to be accurate: There are no ...
|
| per diem laws | 9/21/2008 |
Q: Can a sub contractor charge a contractor more on per diem than they pay their employees? Our ...
A: The two agreements aren't really related. Agreement 1 between you and your employer: You ...
|
| S Corp profit disbursements | 9/20/2008 |
Q: I appreciate your time in answering my question. I live in Texas and on August 1 became a partial ...
A: Your disbursement of the "tax liability" is well defined. At the end of the year, you will be ...
|
| non-profit organization tax-exempt | 9/19/2008 |
Q: we are a non-profit organization located in LA, CA. We own a commercial building and lease the ...
A: It is not tax exempt. This would be subject to the UBTI (unrelated business taxable income). You ...
|
| Shareholder buyout issues | 9/19/2008 |
Q: I have a C-Corp client that has 6 shareholder/owners. It is an electrical contractor business and ...
A: I'm going to start with part 2: The purchase of stock is made out of capital (after tax dollars). ...
|
| Notice form Delaware revenue division that I didn`t file Personal income tax for 2004-2007 | 9/19/2008 |
Q: I'm a bit confused with this notice I got from Delaware revenue division, about not filing and/or ...
A: Normally, when winding up a business it is expected that you mark the last tax return as "FINAL ...
|
| Foregiveness of Interest on Notes | 9/18/2008 |
Q: We are cash basis. We loaned a company $90,000 on a secured interest bearing note. They quit paying ...
A: What was the collateral for the "secured" note? The unpaid interest would be transferable to the ...
|
| Hi | 9/17/2008 |
Q: I want to know when you start a sole propritorship. Im will be doing business in Little Rock ...
A: A sole proprietorship is the default business structure if you do no planning. The first time you ...
|
| Business Expenses | 9/17/2008 |
Q: I'm a self-employed website designer. Can I deduct the following as business expenses? - Laptop ...
A: First: are you profitable? If you are not, then the deduction does not do any good for the business. ...
|
| corporation start-up phase | 9/17/2008 |
Q: We v been incorporated May 1, 2007 and started renovation & improvement of leasehold property in ...
A: The IRS will not allow the business to deduct payments to individuals without a completed 1099. The ...
|
| Paying and Collecting Taxes on Consultants | 9/16/2008 |
Q: I have been a consultant and am now an account exec with a staffing and recruiting company. My ...
A: As to What to bill the customer? That should be decided and stipulated in the contract, whether the ...
|
| Per Deim Rates | 9/16/2008 |
Q: I am a contract employee. The company I work for is located in Boston, Ma. The company I am assigned ...
A: No. They can pay as much or as little as they can negotiate. The GSA perdiem is really a Maximum ...
|
| corporation start-up phase | 9/16/2008 |
Q: We v been incorporated May 1, 2007 and started renovation & improvement of leasehold property in ...
A: The corporation is required to file a tax return every year. Filing for 2007, will allow you to ...
|
| Taxes and Artists. | 9/15/2008 |
Q: I am a working artist who like most creative folks, has a full time day job as well to make ends ...
A: The potential for audit and the potential to lose in an audit are two separate concerns. Obviously ...
|
| Tax benefits question | 9/1/2008 |
Q: I am a non-resident alien (on L1 visa) working in Texas. I would like to know if I am eligible to ...
A: Nope. The deduction only applies to a primary residence (that home that frequent more than 50% of ...
|
| Question about DBA and taxes | 9/1/2008 |
Q: Wellman, I live in Massachusetts and I am considering opening a DBA company and I am a little ...
A: This not Mr. Wellman my name is Richard Fritzler I am an expert here on all experts and I see that ...
|
| 1120S | 6/27/2008 |
Q: I understand where retained earnings come from(accumulated earnings over years). But when it climbs ...
A: Any retained earnings, would normally be added to investor equity. Since they already paid the taxes ...
|
| LLC Contribution for Interest | 6/26/2008 |
Q: 2 members are starting an LLC, 1 Member is contributing $75k in cash as initial capital contribution ...
A: Allow me to point out that capitalization is not a taxable event. So your contribution or his ...
|
| C CORP ASSET/GOODWILL SALE | 6/26/2008 |
Q: BOTH SELLER AND BUYER HAVE A LIST OF SALE ALLOCATION (FUN.& FIX., PERSONAL PROPERTY, AND GOODWILL). ...
A: Asset sales by a C Corp are reported on Form 4797 with capital gain/loss transferring to Schedule D. ...
|
| 2nd home tax implications | 6/25/2008 |
Q: I would like to buy a second home for my in-law in Kentucky. Our principal residence is in ...
A: Is your annual income derived as a w-2 salary, or are you in business? Contrary to commom belief, ...
|
| Married couple residents of two different states | 6/25/2008 |
Q: I recently bought a home in Florida and my husband owns a home in Wisconsin. Can we (as a married ...
A: You can each sell you own home and get a $250,000 exemption. You cannot both sell one home and get a ...
|
| Married couple residents of two different states | 6/24/2008 |
Q: I recently bought a home in Florida and my husband owns a home in Wisconsin. Can we (as a married ...
A: Like I said, If you can live by the rules then it is theoretically possible. To clarify on the ...
|
| Can any of these things be advantageous to us tax-wise? | 6/23/2008 |
Q: My husband works for a private environmental firm as a geotechnical driller. He's out-of-town 80% ...
A: All of the money that is given as Reimbursement is tax free. I can't think of a greater tax ...
|
| Selling sole proprietership business | 6/21/2008 |
Q: I am selling a furniture business for $55,000 in July, 2008. Apparently, I have some leeway ...
A: Allow me to describe the tax situation for the buyer: He is going to pay with after tax dollars ...
|
| Married couple residents of two different states | 6/21/2008 |
Q: I recently bought a home in Florida and my husband owns a home in Wisconsin. Can we (as a married ...
A: Well it is theoretically possible, however, married or single is not the determinant. Job, length of ...
|
| Single Member LLC: S-Corp vs Disregarded Entity | 6/20/2008 |
Q: I have formed an LLC for the purpose of giving away my home via an essay contest a la 'Spitfire ...
A: You might want to make sure of your footing on charging a fee for entry into drawing for a prize. ...
|
| State Income Tax | 6/19/2008 |
Q: I have a few questions regarding state income taxes and whether I should register a business as an ...
A: "Time of residence" in a state, is only one criteria to determine, another is "Have a Job". If you ...
|
| state taxes on sale of business | 6/18/2008 |
Q: I moved to Arizona from Florida in Dec of 2007, having hired a person to manage my business in FL ...
A: I would recommend that you do all that you can to remove yourself from being considered and AZ ...
|
| LLC/Buy-In Opportunity/Personal Loan & Taxes | 6/18/2008 |
Q: I have been offered an opportunity to buy into my company which will be a multi-member LLC entity in ...
A: According to the tax code you are eligible for interest deductions for investment purposes that do ...
|
| Startup Help please | 6/17/2008 |
Q: I am currently located in Massachusetts and planning to start my home based business to provide the ...
A: For tax purposes, the LLC is considered a "disregarded entity". What does that mean? that means that ...
|
| Convert Sole Proprietorship to S corp | 6/17/2008 |
Q: I have been S Sole Proprietor for 15 years. Last year, I set up an S corp, plan to continue my ...
A: Well . . . What assets are we transferring. The "business" is not an asset, the inventory, the ...
|
| Comparing taxes on profits from commodities futures investment profit | 6/16/2008 |
Q: I'm trying to decide if I should trade commodity futures as an individual or form an LLC and trade ...
A: I have to start with: "the LLC is a disregarded entity", the IRS does not recognize it. Why start ...
|
| NYC jobs make S-Corp less attractive? | 6/12/2008 |
Q: I'm going through the standard LLC vs. S-Corp debate - I understand you strongly advise towards ...
A: Wow, you really set me up with the worst case scenario: As you have described it, a lesser man would ...
|
| Sale of closely held S Corp | 6/12/2008 |
Q: If a Mom & Dad wanted to sell their auto repair business (S Corp) to their son (Who works in the ...
A: This really more of topics for discussion than questions that have hard and fast answers. For ...
|
| Commute Mileage for Field Sales Professionals | 6/10/2008 |
Q: I am a field sales professional for a high tech company in the US. My company doesn't have a field ...
A: Yes. If you are using and claiming your home as your primary business location, then traveling to ...
|
| LLC taxing of consulting jobs within LLC | 6/10/2008 |
Q: My friends and I have sole proprietor consulting situations. We are considering forming an LLC in ...
A: Reasons 1 and 2 are good solid reasons to formalize your business model. However the LLC is not ...
|
| LLC taxing of consulting jobs within LLC | 6/7/2008 |
Q: My friends and I have sole proprietor consulting situations. We are considering forming an LLC in ...
A: I can empathize with the confusion, in your description you have appropriately pointed to a number ...
|
| LLC and personal taxes | 6/7/2008 |
Q: I recently started an LLC with three other members. I would like to plan ahead and keep track of ...
A: The IRS does not recognize the LLC. Their term is "Disregarded Entity". Since you are a multi-member ...
|
| How to ensure my fiance' is not liable for my tax debt | 6/6/2008 |
Q: I am currently engaged, and owe some back taxes that I pay on each month. However, I do not want my ...
A: Be assured that the person that said a Prenuptial is satisfactory, is not giving the most sound ...
|
| disguised sale??? | 6/4/2008 |
Q: First I am trying to determine if in fact this is a sale or contribution. Partner A contributed ...
A: The first part of your explanation is correct, both partners made a contribution (we'll discuss ...
|
| Tax ID Number | 6/4/2008 |
Q: I am self-employed as a freelance camera operator and editor here in Los Angeles. I have been ...
A: Since you are in business, as a camera operator, you are already expected to file quarterly. Failure ...
|
| Gain on The Sale of a Business | 6/4/2008 |
Q: We have made a land and asset purchase of 14 million dollars. The business that operates on the ...
A: Tax rates very so much depending on whether your are married, single, filing jointly or filing ...
|
| 401k and S corp. | 6/3/2008 |
Q: and thanks. I have resigned from my job of 24yrs., I am 45yrs. old, have a 4yr old daughter and am ...
A: If you are willing, I am willing to commit more than just this brief exchange of e-mails. Some of ...
|
| Washington LLC agent | 6/2/2008 |
Q: My question is this: My sister has a consultant business set up as a LLC. I plan to piggyback on ...
A: May I ask why you would want to "Piggyback" your business onto hers? For tax purposes the LLC is a ...
|
| setting up as a ranch or farm | 6/2/2008 |
Q: NV a town an hour outside of Las Vegas. I was wondering how do you go about setting up my ...
A: Well, you can certainly farm your ground. Were you looking for a Farm Loan? a loan designed to ...
|
| Late 1099's | 6/2/2008 |
Q: I failed to mail out 4 1099's to 4 of my sub-contractors. Its totally my fault. Now that I'm ...
A: Well, regardless whether they received the 1099, they are still obligated to file a correct tax ...
|
| Complex: PER DIEM Reimbursement - Deductibility | 6/1/2008 |
Q: I work as a Consultant for an END CLIENT through several 'layers' of consulting companies. Here is ...
A: Per diem is a Per day rate, regardless, what was actually expensed. The Per Diem rates and ...
|
| 1099 vs W4 | 5/1/2008 |
Q: When is one an employee or independent contractor?
A: Well Tom there are so many ways to answer that question, but I think you are looking for the ...
|
| Corporations/LLC | 4/28/2008 |
Q: I have a question about setting up a corporation or LLC (Limited Liability Company). I have an ...
A: I'm not sure who you sent this question to, since it ended up in the "Question Pool" so let me ...
|
| Form 1041 Line 20 Exemption- Definition of "all income" | 4/7/2008 |
Q: Am self-preparing my late father-in-law's Residuary Trust return. Am stumped by whether it ...
A: Whether or not the trust is required to disperse all income or not is stated in the trust document. ...
|
| selling personal property with primary residence. | 4/6/2008 |
Q: I am selling my primary residence for $300,000 for house, and $50,000 for personal property (none of ...
A: You will have to reference it on your tax return, otherwise you may get a NastyGram, also known as a ...
|
| tax | 4/6/2008 |
Q: I am on ss/retirement My wife had a bussiness in 2007. She was closing in aprox 6-17-2007. On Dec ...
A: That was not long winded at all. I hope she is on the speedy road to recovery, my father went in for ...
|
| Using My LLC | 4/4/2008 |
Q: I hold a full time job and have a couple of rental properties. I handle all the property management ...
A: "Is there a Point?" Exactly. You have done nothing to change your tax disadvantage. Nor have you ...
|
| Taxes | 4/4/2008 |
Q: "I have an S corp. I need to pay quarterly taxes personally. How do I legally obtain cash from the ...
A: When you say "Cash" do you mean $100 bills? This is not an advisable way to pay the taxes. If you ...
|
| S-Corp | 4/3/2008 |
Q: I have an S Corp and I am the only owner. Last year I had a loss of $20,000 which I reported on ...
A: You obviously are starting to see some of the problems with the Sub-S, that these losses once ...
|
| LLC for a personal residence? | 4/3/2008 |
Q: I am trying to buy a 2 bedroom condo in Hoboken, NJ (north jersey). I would bring in a tenant to ...
A: The LLC would do either Nothing or make things more complicated and costly. And it would do those at ...
|
| International Tax | 4/2/2008 |
Q: I have a customer from India. Our invoice amount will be $ 500. In India they are required to pay ...
A: I believe that India and the US have a tax treaty that in insures there is not the appearance of two ...
|
| TAXABLE INCOME FOR NON PROFIT | 4/2/2008 |
Q: If a Homeowner Assoc. received a one time payment of $ 72,000 for the use of land that belongs to ...
A: Even though your HOA is set up as a tax exempt entity, it is still subject to the UBTI (Unrelated ...
|
| LLC taxed as Corp | 4/2/2008 |
Q: A partner and I formed a LLC and bought a business late in 11/07. Our payroll service would not put ...
A: Sorry the 2553 form won't change your status for last year, in fact you can't change your tax status ...
|
| Tax Liability | 4/1/2008 |
Q: I am a legal temporary immigrant here doing my own advertising business, let's call it Business A. I ...
A: As long as Business A operates only in the US, it pays taxes only in the US. As long as Business B ...
|
| LLC or S corp | 4/1/2008 |
Q: I am buying an apartment building and trying to decide if I need to form a LLC to take ownership of ...
A: I could just pop off with a reactionary "knee jerk" answer, but you shouldn't accept that. You ...
|
| spouse living/working 3 -4 days in another state | 2/22/2008 |
Q: Husband works for airline. Pays for place to stay in PA while he works there anywhere from 3 to 5 ...
A: By definition your husband resides in PA. The state claims that on two fronts, the first is whether ...
|
| taxation of an Indian company | 2/21/2008 |
Q: I received information that if the board meetings of a foreign company is carried out from the USA, ...
A: Certainly, there are areas of the law that are subject to interpretation. The US Government would ...
|
| per diem and travel expenses | 2/18/2008 |
Q: I have an employee that is on temporary assignment and I am paying him per diem. He will also be ...
A: The per diem rate is intended to compensate him for Lodging, Meals, Incidentals, and Entertainment. ...
|
| 1099 Reporting | 2/16/2008 |
Q: I received 2 1099-S's for the sale of a principal residence and a farm that was held in a living ...
A: Yes the IRS uses the 1099 to "proof" the return. Although you may not owe tax, if there is ...
|
| claiming a parent | 2/15/2008 |
Q: My mother has been living with me for 14 months and receives social security disability and makes ...
A: Unless she is a dependent (meaning she stays with you because she cannot take care of herself and ...
|
| Converting a S corp to a C corp | 2/13/2008 |
Q: Just doing a little research, in a previous question you replied that the IRS gave you 60 days after ...
A: The March 15 date would be the date a tax return is due after a calendar fiscal year. Just like an ...
|
| LLC shares and ownership | 2/12/2008 |
Q: I recently opened a LLC business in New Jersey. I am the sole member. How do I transfer ownership to ...
A: I'm going to start this answer with a question. What paperwork do you have to show you own the LLC? ...
|
| Partial Sale of Corporation | 2/10/2008 |
Q: The corporation owned by three friends and me operates restaurants. In 2007 we sold one of our ...
A: outside of the real estate, you are most likely on a cash basis accounting and therefore account for ...
|
| oil and gas royalties | 2/10/2008 |
Q: I had roaylty payments in unclaimed property from 1999 to 2003, and other royalty payments from the ...
A: Well. . . The IRS doesn't have a dormant status. You are expected to file taxes every year, profit ...
|
| vehicle mileage | 2/10/2008 |
Q: My employer has just started counting personal mileage as a benefit. We have been told that driving ...
A: The rules haven't changed, but enforcement is ramping up. Either your employer has already been ...
|
| W2 required | 2/9/2008 |
Q: We bought a nail salon and are operating it under an LLC we form. The LLC has 2 members, my partner ...
A: 1099, while simpler because you don't have to do withholdings or pay FICA, are a minefield. Most ...
|
| Sole Proprietor and rental property | 2/9/2008 |
Q: Here's the situation. Back in 2002 I was looking at incorporating my private practice from a sole ...
A: The whole answer is: The Practice can pay anyone for anything that it chooses. It can also deduct ...
|
| initial capital investment or loan | 2/8/2008 |
Q: A friend and I are forming a partnership to buy and sell raw land. He already has some land and is a ...
A: My best recommendation is that you DON'T go into this partnership. Partnerships are the worst ...
|
| Reporting an LLC Loss | 2/8/2008 |
Q: Let me give a little background before the question. A couple partners and I started and ended an ...
A: Actually the 8832 would be if you wanted to have your LLC be taxed as a Corporation. And although I ...
|
| contest winning | 2/7/2008 |
Q: I recently won $250.00 as a prize at work - when I received the money my company had taken $100.00 ...
A: Sadly the IRS has limited untaxable gifts from your employer to a Christmas ham. ANY cash award ...
|
| rental property | 2/7/2008 |
Q: I have rental properties that I have in my personal name. I have an LLC, but have come to the ...
A: You are absolutely correct that the LLC is pointless. As far as what you are reading, I recommend to ...
|
| PSC | 2/5/2008 |
Q: After reviewing your questions and answers you make a good case for utilizing the advantages of ...
A: As a Consultant you "could" be deemed a PSC (personal Service Corporation); but you have to pass all ...
|
| Loan proceeds/payments for Cash Basis LLC | 2/1/2008 |
Q: I am the member-manager of a 10-year old LLC that specializes in software development consulting. ...
A: Sorry a loan is not capital, nor income. If it were income it would be taxable (or in your case, ...
|
| LLC Tax Question | 12/7/2007 |
Q: I had invested in a friends startup company in March 2007 through an LLC of my own. I became a ...
A: You are correct, the LLC did you no good for tax purposes. His business may be required to ...
|
| real estate sale sub S versus C corp | 12/7/2007 |
Q: I hope you can help me, my accountant passed away recently and the person picking up his practice is ...
A: a rule of thumb that is always true, is that "any profitable business", retail, property leasing, ...
|
| Home-Office Renovation | 12/6/2007 |
Q: This year, my wife and I did a major renovation of our house that included adding a partial third ...
A: I appreciate your goal and how you want to get there. But as you tug and pull to get your house ...
|
| Final C Corp Return | 12/5/2007 |
Q: I have a C-Corp client, filing a final return. They will have unused NOL's after the final return ...
A: They can only take advantage of the 1244 option if the stock was originally issued as 1244 stock. ...
|
| LLc payment problem | 12/4/2007 |
Q: "Hello.I am in the middle to forming a LLC. My business is importing from China and sell the ...
A: Sorry your plan won't stand up. Part of the reason that you can't make those types of payments is ...
|
| S corp Status | 12/4/2007 |
Q: A 100% owner of an S-corp failed to file his state Property tax returns (for three years) and the ...
A: The IRS has a 3 year look back window in which to start an audit. Every year one of those windows ...
|
| Investment Property | 12/4/2007 |
Q: I am considering setting up an S-corp to buy, renovate, and sell property. Would the net income from ...
A: Let's take a moment and get our bearings: All that you mention is based upon a flawed assumption. ...
|
| taxes on real estate | 12/3/2007 |
Q: Richard, when a person sells a business property and the sales price is 500k, and if he gets 200k ...
A: Well John, just like your real estate agent, the IRS wants to get paid up front. the reasons are ...
|
| tax form for contract labor | 12/3/2007 |
Q: my husband has recently started his own tree service business and he has a guy that works for him on ...
A: I completely understand why you want this to be handled that way. You need to understand the IRS ...
|
| S-Corp loss deduction against personal income | 12/2/2007 |
Q: I have formed an S-Corp for my restaurant business and I am the 100% owner. My wife is an ...
A: "Would I be able to deduct losses in this S-corp against my personal income eventhough I don't ...
|
| Investment Property | 12/2/2007 |
Q: I am considering setting up an S-corp to buy, renovate, and sell property. Would the net income from ...
A: YESSSSssss, a C-Corporation will be far better for these types of transactions. In spite of the knee ...
|
| S corp Status | 12/2/2007 |
Q: A 100% owner of an S-corp failed to file his state Property tax returns (for three years) and the ...
A: You have given the IRS an opening to disallow your business status. They often use any opening ...
|
| Convert property from corporation to personal use | 11/7/2007 |
Q: If I bought a vacation home for investment under a corporation 's name, the move to live there when ...
A: You can buy it from the corporation, which would allow you to then consider it your primary ...
|
| LLC tax | 11/5/2007 |
Q: I own a LLC that I started in 2005 for real estate. I never filed taxes through the business as I ...
A: I certainly appreciate your desire to get as much tax advantage as possible, problem is the LLC ...
|
| Corporation 941 taxes and other returns | 11/5/2007 |
Q: I started my own business as a C Corporation in VA about 9 months back. I have no employees. The ...
A: Zero is a great number if it true. When do you see the trend of negative cashflow changing? Keep me ...
|
| Inactive investment | 11/4/2007 |
Q: My husband and I have just formed an LLC elected to be taxed as corporation. We want to invest in a ...
A: The IRS will require a tax return every year. the IRS can recategories your business as a hobby if ...
|
| Tax reporting obligations to IRS | 11/4/2007 |
Q: I’d like to ask for help in below simple case concerning tax reporting obligations to IRS: ...
A: There is tax to be paid. "A US Citizen is required to report and pay taxes in it's world wide ...
|
| Taxation of Capital Gains in LLC taxed as Corp. | 11/3/2007 |
Q: I'm considering setting up a single-owner LLC for the purpose of trading stocks. I would plan to ...
A: The LLC is a "Disregarded Entity" for the IRS. They don't recognize it at all. If you are a single ...
|
| Corporate passive income tax | 11/2/2007 |
Q: 100% of the My Mothers C-corporation's income is passive (rents) and she owns 100% of the stock. ...
A: "If the corporation is receiving more than 60% of it's income from passive sources, such as rent, ...
|
| What entity would a options trader need? | 10/4/2007 |
Q: I have been options trading for a number of months now and been quite successful. I understand that ...
A: I'll try and provide you the foundation of answers in this e-mail, just not in the order that you ...
|
| two companies, one with profits | 10/4/2007 |
Q: I have two Sub S companies. One is no longer producing income, but has some left over expenses to be ...
A: Let me preface this with saying that you are trying to move water from one side a bucket to the ...
|
| per diem | 10/3/2007 |
Q: I am an owner of a small construction business in Texas. My employees occasionally travel out of ...
A: No you are not required to pay a per diem. The Per diem was initially set up by and for the Federal ...
|
| subchapter s corp obtains a mortgage and distributes the proceeds to it's members | 10/3/2007 |
Q: We are financial consultants and have a client who owns a subchapter s corp that has three ...
A: You are correct that the Sub-S would not be required to credit a taxable event to the stockholders ...
|
| One return Or Two? | 10/3/2007 |
Q: If I have a home-based business that supplies all my earnings, do I compute taxes for the business ...
A: Since you have not done any preplanning you are stuck with being a sole proprietor. That will ...
|
| re: LLC | 10/1/2007 |
Q: I want to set up a rental property into an LLC for asset protection. I live in Florida The property ...
A: "I want it to be protect for from any lawsuits against myself personally," Even the charging order ...
|
| re: LLC | 10/1/2007 |
Q: I want to set up a rental property into an LLC for asset protection. I live in Florida The property ...
A: You will not be able to transfer the property to the LLC if there is a loan outstanding. Finance ...
|
| Dividends | 9/28/2007 |
Q: Does the question of whether a company should pay a dividend depend on whether the company is ...
A: the term "Organization" is not a recognized type of Entity. But I think I can give you enough of an ...
|
| Non profit formation | 9/28/2007 |
Q: We are a group in Wisconsin, that are presently forming by laws for our non profit charitable ...
A: If you intend to comply with IRS requirement as a tax exempt charity, neither is your best choice. ...
|
| Revenue Sharing Investment Transfer | 9/27/2007 |
Q: Revenue to Stock? Thank you for taking the time and interest in answering these questions. I have ...
A: Lee I had not heard from you, my email is expert !at! owelesstax.com I'm dashing off a quick answer ...
|
| Number of member of LLC | 9/27/2007 |
Q: My husband and I have been operating a business for a couple years as sole proprietorship, and ...
A: All LLC's are "disregarded entities" by the IRS. There is no tax advantage for LLCs. A single member ...
|
| LLC Member Payroll Withholding | 9/26/2007 |
Q: We have set up a two-member LLC, and we have no other employees just yet, but plan to in the near ...
A: The LLC is specifically not able to do what you want. Can I ask if you are profitable? if so, you ...
|
| How to change from LLC to incorporated | 9/21/2007 |
Q: I am the Executive assistant for a small LLC called Regnier and associates. I am the very first ...
A: Well Alicia Congratulation on the new job, and the trust and respect your boss has given you. You ...
|
| s corp | 9/20/2007 |
Q: I have properties ($13million) and debt ($7million) in an s corp. Can i create a new s corp filling ...
A: I hesitantly say yes, it is possible to do so. Assuming the $4 million is debt free assets. The ...
|
| incorporating a business | 9/20/2007 |
Q: I am seeking to incorporate an e-business which will ship products worldwide. I can live, if ...
A: Are you planning for "startup" or "success"? If you are planning for success then you need to ...
|
| Vehicle Purchase | 9/19/2007 |
Q: I am a partner in an LLC taxed as a partnership in Minnesota. It is a concrete service company, and ...
A: If your accountant said "the LLC Cannot" own them then your accountant is wrong . . . the LLC can be ...
|
| Loan to LLC | 9/18/2007 |
Q: I have a new LLC that will be filing a 1065. I'm going to be funding the LLC business account with ...
A: You are correct, no tax advantage to transferring the capital. As to the Tax reducing hopes. you ...
|
| Loan to LLC | 9/17/2007 |
Q: I have a new LLC that will be filing a 1065. I'm going to be funding the LLC business account with ...
A: First let's consider that the LLC is a disregarded entity for tax purposes, There is no LLC tax ...
|
| S-Corporation dissolution | 9/14/2007 |
Q: Where can I find a comprehensive discussion of how to handle all of the different issues with ...
A: You could try the "US Master Tax Guide" Published by CCH. It is the common handbook for tax ...
|
| Mixing company and personal finances | 9/13/2007 |
Q: The company I work for is incorporated, but my boss is the sole shareholder. He is paid a salary as ...
A: If you are looking for a reason to quit and get another job, you don't need any of the reasons you ...
|
| Taxes for Asset Sell of Our Business | 9/13/2007 |
Q: My husband and I own a franchise business and we are setup as an S Corp. We are selling the business ...
A: The IRS consistently holds that moneys used to pay of debt are considered income and subject to tax. ...
|
| 1099C | 9/11/2007 |
Q: I received a 1099C in 2005 I filed it on my taxes. Then in April 2006 I started getting letters from ...
A: You are getting a peak behind the curtain in the collection industry. Let's put aside your actual ...
|
| US tax liability if we open a US bank account ? | 9/10/2007 |
Q: I would like to know if my company would become liable for US taxes if we open a US bank account ...
A: Applying the rules as defined by US and international law, having a bank account in the US is ...
|
| S-Corp | 8/24/2007 |
Q: My wife and I own a small publishing business that is an s-corp. Our house is currently worth ...
A: If you could do what you are asking you would lose a great tax benefit. Right now, if you live in ...
|
| C Corp vs. S Corp | 8/23/2007 |
Q: Richard, you have made it clear in your previous answers that you believe a real corp. or C Corp, is ...
A: Well . . . that is the spin that the fear mongers put on it. I once read in a quote in Fletchers ...
|
| Auto Allowance | 8/22/2007 |
Q: Our small company currently supplies cars for its employees. But do to recent liabilities they are ...
A: How will this affect you? Will it cost you or pay you more? what changes would happen for tax ...
|
| Carried Forward Losses - C Corp | 8/21/2007 |
Q: What are the conditions and restrictions on which a C-Corp can use their carried forward losses.
A: Be profitable. Without profit there are no taxes to pay, and no use for the loss carry forward. ...
|
| Paper Route | 8/21/2007 |
Q: A person asked: I am a single male and I currently run a newspaper route for USA Today as ...
A: Oops, I misread the miles, I calculated as 85 Miles a WEEK. Thanks for bringing this to my ...
|
| Newspaper route and taxes | 8/20/2007 |
Q: I am a single male and I currently run a newspaper route for USA Today as an independent ...
A: I previously misread the mileage here is the adjusted answer Let's say income is on the high side. ...
|
| LLCs vs C-Corps - real estate with 401k funds | 8/20/2007 |
Q: I am planning on using my 401k to partially fund a few real estate investments. I have the option ...
A: Let me first say that you investing your Tax deferred retirement funds into a C-Corporation (or LLC) ...
|
| Section 351 Transfer | 8/18/2007 |
Q: Mr. Fritzler, I have been reading about the Section 351 Transfer with a property being tranferred ...
A: Section 351 describes how a transfer of property to a corporation will be interpreted for tax ...
|
| Personal property and LLC | 8/17/2007 |
Q: I wish to buy my first property but would like to have it held under a corp structure (like an llc). ...
A: The lender might allow this, but the have the right to refuse. An LLC is in no way a Corporation. ...
|
| Section 351 Transfer | 8/16/2007 |
Q: Mr. Fritzler, I have been reading about the Section 351 Transfer with a property being tranferred ...
A: You wouldn't avoid the capital gains tax, you would transfer the property to the corporation and the ...
|
| LLC vs INC for issuing 1099's at year end | 8/16/2007 |
Q: I know I don't need to send 1099's to companies that are incorporated. But, what about LLC's? And, ...
A: Technically, if the LLC has a separate tax ID number, and you only wrote checks in the name of the ...
|
| How to Desolve S corporation.. New One No Business done yet | 8/15/2007 |
Q: Sir, I recently opened S corporation( 08.01.2007).. registered at NJ. Due to personal problems... I ...
A: For the IRS: Have you filed an SS-4 form? If not the IRS would not know the company exists and you ...
|
| Best way to distribute money | 8/15/2007 |
Q: First, let me say that I love your No Spam Guarantee and that you have a sense of humor. Let me lay ...
A: I think you will really like the results. Let's start with how the money is coming in. Is it ...
|
| LLC Taxed as S-corp | 8/14/2007 |
Q: Mr. Fritzler I have searched IRS website and have taken CPE courses for LLCs but I am still unclear ...
A: Part of the confusion is that there is no direct jump from LLC to Sub-S status. the LLC would have ...
|
| Deducting Educational Benefits over $5250 | 8/14/2007 |
Q: Richard: My company seems to be willing to entertain sending me for an executive MBA program. The ...
A: Beyond the $5250 which is the "Working Condition Fringe Benefit", someone is going to have to pay ...
|
| tax issues after dissolving a general partnership in california | 8/14/2007 |
Q: Sir, I was involved for a short time in a general partnership. For many reasons the partnership ...
A: Not if everyone sticks to the agreement. Since you receive nothing but the return of your initial ...
|
| LLC vs S-Corp | 8/1/2007 |
Q: I want to create an entity where I have multiple (2 to 3) DBAs' under an Umbrella (may not be the ...
A: You can. . . But can I ask you why? What is it about this blue print attracts you? Is it because ...
|
| rental property loss tax deduction | 8/1/2007 |
Q: My son, daughter, and I each own 1/3 of a vacation rental property in Lake Tahoe. We usually have a ...
A: Your accountant was not "uncommon" in recommending an LLC. That is by far the leading recommendation ...
|
| 1120S AMENDMENT | 8/1/2007 |
Q: MY SMALL S CORP FILED USING CASH BASIS FOR 2005 WHICH RESULTED IN A LARGE TAX LIABILITY YET HAD ...
A: I'd love to give you all kinds of great news, but . . . If you were a real corporation, then you ...
|
| Sell of Insurance Agency | 7/31/2007 |
Q: I have owned an insurance agency for 8 years (sole proprietor, no corp.) and looking to sell. I am ...
A: The capital gain would apply to the tangibles, but as you point out that is diminimus. The recurring ...
|
| K-1 Distributions from Statuatory Trust | 7/25/2007 |
Q: My grandfather died in 1987 and his home was transferred into a statuatory trust with a cost basis ...
A: Since the house was never actually given to your father, he would not have enjoyed a step up in ...
|
| Corporate Equity/Stock transfer | 7/19/2007 |
Q: I have a partnership with a friend. We came up with some ideas that we patented. There is now a ...
A: If you set up the corporation and put the patent in the corporation, you have capitalized the ...
|
| 1099's | 7/19/2007 |
Q: I gave a 1099 in 2006 to a consultant, but upon review of the accounts, that 1099 was for $8000.00 ...
A: You would resubmit form 1096 along with the new 1099 to the IRS. And send new 1099 to the "Common ...
|
| 1065- loan rec. & interest | 7/18/2007 |
Q: If I have a partnership(wholesaler for products)can I loan money to individuals or corps. to earn ...
A: Absolutely, you can loan money. What you can't do is charge a "Compounded Interest Rate" this is ...
|
| Owning a rental property in WA | 7/13/2007 |
Q: Is the best way to own a rental property in WA is via LLC in WA? Or is there another way?
A: Do you plan to be profitable? If no my recommendation; Rethink your plan. If yes then do business ...
|
| s-corp | 7/13/2007 |
Q: I'm starting my own business selling invitations, programs, etc, I was wondering about s-corps. How ...
A: To file a real corporation you need to contact the "Secretary of State" in your state, they will ...
|
| Capital gains | 7/12/2007 |
Q: Is the gain a business realizes from the sale of its contracts and licenses capital gains? I ...
A: If you can give me more specific details I can probably give you a complete answer. It could be ...
|
| LLC Texas Self Employment Tax | 7/12/2007 |
Q: I am the sole proprietor of an LLC registered in Texas. I produce websites and internet services ...
A: As an LLC you are, from the IRS Perspective a Sole Proprietor (the LLC is consider a "Disregarded ...
|
| Foriegn Entity | 7/12/2007 |
Q: A partner and I recently formed a delaware LLC; however, we are required to give a "legal address" ...
A: The business entity will be required to file in Every State in which it does business. The ...
|
| Sale of Liquor License | 7/11/2007 |
Q: I have a an S-Corp client that owns a deli. In New Jersey a liquor license is very valuable and ...
A: that is a nice profit, and the tax on that profit would be long term cap gain. With NJ taxes ...
|
| Sale of Liquor License | 7/11/2007 |
Q: I have a an S-Corp client that owns a deli. In New Jersey a liquor license is very valuable and ...
A: The license is an asset. The sale of which would be shown as a gain or loss. I don't know what they ...
|
| Building and selling house capital gain or income | 7/11/2007 |
Q: A client has started an LLC being taxed as a sole-proprietor. The LLC has built a house and ...
A: The difference between the costs associated with construction and the sale price of the house would ...
|
| S-Corp -VS- LLC | 7/11/2007 |
Q: My husband and I are looking into opening a fast food Mexican restaurant in Hawaii, but we want to ...
A: You can file a corporation in CA and do business in Hawaii. That will result in filing additional ...
|
| Sole proprieter | 7/10/2007 |
Q: WE just started a delivery business as sole proprietor and are considering hiring some help. What ...
A: In short; ALL OF THEM. State and local rules and rates vary, so I will point you to your local ...
|
| Selling my house | 7/10/2007 |
Q: I'm selling a house in Mexico and I heard that I need to report it as an income. If I'm paying taxes ...
A: The US and many other countries have tax treaties (including Mexico) where you will get credit in ...
|
| donations involving a non-profit | 7/9/2007 |
Q: When can our non-profit organization start receiving donations, when we file articles of ...
A: You will only have "Tax Deductible donation" status after the IRS approves your 501 application. And ...
|
| Sole Proprietor Paying a family member to do work | 7/9/2007 |
Q: I'm a sole proprietor of a home-based consulting engineering business. Most of my work involves CAD ...
A: Beyond the value of the feudal apprenticeship system? (Where one works for years to learn the craft ...
|
| Out of State Home Sale | 6/28/2007 |
Q: My grandmother passed away last august. The deed of her house was in both her name and her eldest ...
A: Lisa I see that you got posted to the Answer pool. Allow me to answer this for you. Federally, if ...
|
| getting back taxes | 3/14/2007 |
Q: hi i am a tourist i bougth a personal computer here in usa and a camera i paid like 180 dollars in ...
A: You may be able to claim the taxes you paid in the US against your home countries tax return. The Us ...
|
| social security tax | 1/31/2007 |
Q: My husband is a sole proprietor. Our largest tax burden is the 16% social security income tax. Is ...
A: There is no way to become exempt; any earned income (wages as an employee, sole proprietor profit, ...
|
| Tax Audit | 1/31/2007 |
Q: I am a hvac plumbing desinger working with some engineering companies and I became self employed for ...
A: Filing an extension is very straight forward and simple. The extension is for an additional 6 months ...
|
| SEP-IRA | 1/30/2007 |
Q: I am a self-employed consultant with a SEP-IRA. One of my clients pays my hourly rate through a ...
A: there are other options. First, let's look at how you receive the money. Your employer pays 7.65% ...
|
| 1099 | 1/30/2007 |
Q: I formed a new LLC last year and am required to fill out a 1099. This is the first time I'm filling ...
A: 1. yes 2. It is required of you that if you employ someone that you get their tax ID information, ...
|
| Sale of Partnership | 1/29/2007 |
Q: I am a 50% member of an LLC. I am 65 and my partner has offered to buy me out for 33% of the ...
A: Normally, (But you can adjust these points in the terms of the agreement): You would experience a ...
|
| sale of rental property to son | 1/28/2007 |
Q: I am selling my rental home to my son for $50,000. Due to "creative financing" he will borrow ...
A: If you are going to receive $65,000 then the accountants are correct in claiming that you got $65k. ...
|
| tax question | 1/25/2007 |
Q: I am trying to figure out what i need to do for claiming inventory. Do I need to know what I started ...
A: When you ask about "claiming" inventory, are looking for a tax deduction? Because there is none. ...
|
| Small Business Taxes | 1/25/2007 |
Q: I just opened up a small alterations shop from my home. I have a vendor's license and have been in ...
A: Tax payments are paid quarterly. For your federal responsibility, Self Employment tax and ...
|
| Deductions | 1/24/2007 |
Q: My husband and I formed a non-profit corp (501c4)in Fl to start a girls softball team, in which we ...
A: You may want to log into www.stayexempt.org. This is the IRS training website for tax exempt ...
|
| house tax | 1/23/2007 |
Q: i have a 3 family home i live in the first floor i want to sale the house but i paid 115,000 i ...
A: You will be required to pay taxes on $255,000 minus $115,000 Minus commissions, closing costs, etc. ...
|
| married filing separate | 1/22/2007 |
Q: My husband started his own business in Feb. 06. I also work. Would we be better off to file joint ...
A: If you are looking for tax benefits, your husband should operate his new business as a real ...
|
| pay/hire friends | 1/21/2007 |
Q: Can wealthy people hire and overpay their close friends? If I wanted to give 3 of my best friends ...
A: You can. . . and people do, sometimes when you have an extra few hours and a high tolerance for ...
|
| LLC Filing | 1/21/2007 |
Q: Myself and my fiance started a LLC in May of 2006. This business has made no income, but has ...
A: You are not alone in your quandary. The IRS has defined the LLC as a "disregarded entity". There is ...
|
| Closed business. Stock investment | 1/20/2007 |
Q: Good morning Richard, I closed a business in 2006. The business never generated any income. Had a ...
A: Good question and the answer is YES. But it doesn't end there. Under standard capital loss rules, ...
|
| LLC tax filing rule | 1/18/2007 |
Q: Every year this question comes up amongst my partners. There are 6 of us that own our Martial Arts ...
A: The IRS has stated that the LLC is a disregarded entity for tax purposes. So, yes, at this you would ...
|
| LLC tax filing rule | 1/17/2007 |
Q: Every year this question comes up amongst my partners. There are 6 of us that own our Martial Arts ...
A: "How would a business ever save any money for growth?" The successful businesses do it as a real ...
|
| NJ-1065 Partnership Return and Instructions | 1/17/2007 |
Q: My business is filed as an LLC in New Jersey, i'm the only owner. Do i need to file this return? ...
A: AS an LLC you are considered a "DISREGARDED ENTITY" by the IRS. You are actually a sole proprietor ...
|
| taxes on winnings | 1/16/2007 |
Q: how would i file taxes on gambling winnings at a casino
A: Gambling winnings are fully taxable and must be reported on your tax return. Gambling income ...
|
| Art Guild | 1/15/2007 |
Q: The situation is an Art Guild was formed in the state of MA. It’s a nonprofit organization. A ...
A: More information would be nice but I'll just make some assumptions. That you filed as a Non-Profit ...
|
| Standard Mileage Rate | 1/15/2007 |
Q: Can a corporation or partnership take the standard mileage rate for business mileage? THe IRS ...
A: The standard mileage rate would apply only on the occasional use of vehicle. If the corporation ...
|
| S-Corp stock redemption | 1/12/2007 |
Q: If a 2 person s-Corp redeems the stock of 1 s/h with appreciated real property, is there tax at both ...
A: There would be no double tax. Taxes are not paid on transactions they are paid on realized gains. ...
|
| End-of-Year Bonus | 1/12/2007 |
Q: I own a company with one other person. We are organized as a corporation. Throughout the year we ...
A: Before you try and give away 40% or more of the money to the Government, can I ask you why? You ...
|
| dividends draw in S corp | 1/11/2007 |
Q: Is dividends draw in S corp a reportable taxable income? I don't think so. Please confirm for me. ...
A: By design a Sub-S is a passthrough entity, that means that all the income (or at least the tax ...
|
| LLC questions | 1/11/2007 |
Q: I'm thinking about starting an LLC and have tax questions on it. I will be the only member of the ...
A: Can I ask you what benefit you were looking for in filing an LLC? As you point out there is no tax ...
|
| CHILD SUPPORT | 1/10/2007 |
Q: I'M A MEMBER OF UNITED STATES ARMY AND I'VE BEEN SEPARATED SINCE MAY/94..STATE OF CALIFORNIA ...
A: You kids can only be claimed as dependents by one of the parents. Unless the divorce decree ...
|
| Taxes | 1/9/2007 |
Q: Since a contribution to an individual Retirement Acconut is a volutary action, a taxpayer may ...
A: No. A contribution to an IRA is a "compensated" "contractual" event. you are compensated by ...
|
| New Buisness Financed by Profit Sharing | 1/9/2007 |
Q: What type of Corporation would I create? I just want to open up a smaalmexican restaurant in a town ...
A: You end with a very telling statement: "I'm not going to make much profit". This becomes a foregone ...
|
| paying taxes concerning class action suits! | 1/8/2007 |
Q: IHope you can answer a question or two or point in rt direction!! I"m involved in a suit and havnt ...
A: If there is a settlement, the terms of the settlement must be set out in writing, and you have an ...
|
| New Buisness Financed by Profit Sharing | 1/7/2007 |
Q: I'm qualified to take out 1/2 my DPSP (Profit Sharing). I'd like to use this money to open my own ...
A: Sadly, profit sharing is income, and subject to all those taxes. But since you are tax sensitive, ...
|
| RETAIL/TAX QUESTION | 1/6/2007 |
Q: I run a small retail store in minnesota and currently am having a sale of 70% off all christmas, the ...
A: Are you asking if your register could be set to charge tax on full retail then give the discount ...
|
| payroll taxes for sub-s | 1/4/2007 |
Q: Richard, I just started a Manufacturers Rep business in 2007 in NC. My accountant suggested to ...
A: Your accountant is not on target with his recommendation. Doing business as a sub-S is possibly ...
|
| question on taxes for options trading | 1/4/2007 |
Q: I do only options trading using Scottrade, and Charles Schwab. I want to know if I can file my taxes ...
A: Not wanting professional trader status is a good thing. however you are in business and since you ...
|
| quarterly taxes | 1/3/2007 |
Q: i have been paying my taxes all year on time, but this last quarter i did not earn as much as ...
A: You can certainly adjust your quarterly payment. As long as you are within reason when you file the ...
|
| LLCs investing in real estate | 1/3/2007 |
Q: I own an LLC whos primary business is buying, fixing up and selling residential real estate. How ...
A: I think I can simplify your question. the LLC is a "disregarded entity" (IRS Definition) for tax ...
|
| S-Corp | 1/2/2007 |
Q: We opened our S-corp in 2005. The main reason we opened S-corp is to avoid double taxation. I have a ...
A: The not so quick answer: You each would have to take the first portion of the dollars as salary and ...
|
| Can a husband-wife LLC be taxed as sole proprietorship ? | 1/1/2007 |
Q: My husband and I have a LLC (we are both members). From a lot of reading, I understand that when a ...
A: Technically? No. The IRS is already aware of the LLC and the two member status. they are expecting ...
|
| s-corp distributions | 12/29/2006 |
Q: The facts about my S-Corp distributions: 1. I made a little under 15K last year as an s-corp. 2. I ...
A: This is a textbook example of how a sub-S doesn't do you any good. q1: The minimum compensation is ...
|
| Board of Directors expenses | 12/28/2006 |
Q: I'm currently serving as Treasurer of the Board of Directors for a condo I am a part owner of in ...
A: It would not qualify as a personal deduction. If you are in the "business" of being a treasurer you ...
|
| Bonus and Chart of Accounts | 12/27/2006 |
Q: We ae a very small Sub S Corp. If we give my husband who is the only employee of the Corp. a bonus, ...
A: Bonuses are consider payroll and you would ad it to the payroll accounting. A bonus is not a good ...
|
| Distributions from an LLC | 12/22/2006 |
Q: We have an LLC with only two members (80%, 20%) all net earnings will move through to the two ...
A: The LLC is a "disregarded entity" by the IRS, which means it is not recognized as a taxable entity. ...
|
| husband's corporate tax on family land sales | 12/21/2006 |
Q: My husband's family corporations had to sale entire farm/family business to pay mortgages and ...
A: I can imagine a situation where someone who is a stockholder of a sub-S could end up where you are ...
|
| Sub S | 12/18/2006 |
Q: When an owner of Sub S stock wants to sell of the company, is there a tax advantage or differce to ...
A: Although the minutiae of process is different, the ultimate affect is about the same. The more ...
|
| Limited Liability Corporations | 12/18/2006 |
Q: Richard, What are the tax disadvantages of having an LLC in California?
A: The IRS uses the term "Disregarded Entity" to describe the LLC. There is no tax return form, no ...
|
| Transfer of Property to New S Corp. | 12/18/2006 |
Q: Through the advice from an attorney, taxpayer and the only shareholder, formed a S-Corp for the sole ...
A: 1. Absolutely, it has to comply with 351, and the first statement of 351 is: (a) General rule No ...
|
| What and with whom do I need to file? | 12/18/2006 |
Q: I think it is so wonderful. I love this site! Here's my question(s): I live and work in Virginia ...
A: You won't find an LLC federal tax return. It doesn't exist. The LLC is a "disregarded entity" for ...
|
| Sales tax | 12/16/2006 |
Q: I was wondering if you were at all familar with NYS taxes? I was wondering what the laws were ...
A: I am certainly not an advocate for more and greater taxation. But, the fair part of it, that the tax ...
|
| Trading stocks within corporation | 12/16/2006 |
Q: Wow, your answers are great! If I set up a corporation in Nevada, could the address be a PO Box, ...
A: The "Model Business Corporation Act" (the defining standard) specifically states that a PO box is ...
|
| Trading stocks within corporation | 12/15/2006 |
Q: And you used Nevada as an example because it has low taxes? Is it the lowest of the 50 states? Can ...
A: "And you used Nevada as an example because it has low taxes? Is it the lowest of the 50 states? " ...
|
| Sales tax | 12/15/2006 |
Q: I was wondering if you were at all familar with NYS taxes? I was wondering what the laws were ...
A: "I was wondering if you were at all familiar with NYS taxes? I was wondering what the laws were ...
|
| sell or rent condo now and sell in a couple years | 12/15/2006 |
Q: My condo is in San Diego. I bought it two years ago and have lived in it all this time. I want to ...
A: You only have to live in it for 2 out of the last five years to get the $250,000 exemption. If you ...
|
| fair market rental | 12/14/2006 |
Q: My Dad is a 24.6% owner in a family farm C-Corp. He has two brothers, with controlling interest ...
A: You are absolutely correct in that their self dealing does not correspond with the intent of the ...
|
| Closing a Company | 12/13/2006 |
Q: I have a S-Corp that is no longer doing business. I am wondering what the "official" things I need ...
A: You need to file tax return and mark it as "final tax return". That'll let the IRS know that they ...
|
| Trading stocks within corporation | 12/13/2006 |
Q: Is it possible to set up a corporation to trade stocks and not get taxed on the gains and dividends? ...
A: You'll be taxed, but you will be taxed much lower, so more of your profit can go back into the ...
|
| what is the differance between an s & c corp? | 12/13/2006 |
Q: what is the difference between an S corp and a c corp. i have read your replies to other S corps, ...
A: An S-Corp pays no tax. A C-Corporation pays taxes. An S-Corp attributes all the tax liability to ...
|
| C Corp asset moved to S Corp | 12/12/2006 |
Q: My understanding is that the election to move from C to S corp would eliminate the double taxation ...
A: Zig Ziglar was fond of stating that "he would never eat cottage cheese because it makes you fat". ...
|
| s- corp cash draw | 12/12/2006 |
Q: my accountant (new) suggested that i cut my salary in half, and "draw" the other half. he went ...
A: It is not your best option, but it could reduce a couple of the taxes that you pay personally. The ...
|
| capital gains | 12/12/2006 |
Q: The information you provided me is very helpful. In my situation I have ownder the home for about ...
A: That would be a "short Term" gain and is the same tax rate that you would pay on income. So imagine ...
|
| capital gains | 12/11/2006 |
Q: I was told by my realtor that if I profit over $30,000 from selling my home that I will have to pay ...
A: Ummmmm. No. If this is your primary residence, and you have lived in it for at least 2 out of the ...
|
| C Corp asset moved to S Corp | 12/8/2006 |
Q: A C Corp was established in 2003 and bought a unimproved property (land with no buildings). The C ...
A: Filing taxes for 2003,4,5 would allow you to claim the interest and taxes paid against the ultimate ...
|
| Incorporating | 12/7/2006 |
Q: I curently have my business"farming" organizied as a sole-proprietorship and was considering ...
A: The S-Corp is a pass through entity and therefore transfer all tax liability and all losses to you ...
|
| 2 member LLC | 12/7/2006 |
Q: My Wife and I recently formed an LLC in Arizona, I am getting ready to fill out form SS-4 to recieve ...
A: "Best" is not a term that can be applied here. Let me explain. For tax purposes, the partnership ...
|
| Dissolution of a parntership Depr of assets | 12/7/2006 |
Q: Five man parntership is having to dissolve as of Dec. 5 2006 due to two parnters buying out the ...
A: Yes. This is best explained in IRS publication 541 you can view or download it from www.irs.gov Are ...
|
| Partnership Giving | 12/6/2006 |
Q: We are a start up business in '06. 3 partners, one employee. We would like to disperse our profit ...
A: You can pay as much as you want for service from employees and independent contractors. However, ...
|
| Same person EE and 1099 | 12/6/2006 |
Q: I am part of a 3 man partnership with 1 employee, hired 3rd quarter. The employee worked for us as ...
A: Well, the 1099 by design is an audit flag. If the person was truly independent, that means had full ...
|
| R & D Tax Benefits | 12/6/2006 |
Q: I work for a small company that sells after market parts and accessories for off road motorcycles ...
A: Let's start with depreciation of a vehicle is bad. Now, you can do it, in fact it is viable that ...
|
| LLC or C Corp | 12/5/2006 |
Q: I live in Texas and am starting a commercial data backup firm. I am stuck between LLC and C Corp. ...
A: The LLC is a "disregarded entity" for tax purposes, if you choose this, you will continue to pay ...
|
| selling vs. tax write-off | 12/5/2006 |
Q: I have a collection of comics, quite a few in fact. I am trying to figure out if I should sell the ...
A: If you donate the comics to a charity, then you would get no money. If you sell the comics and pay ...
|
| Sub S Corp | 12/4/2006 |
Q: We are in the last days or year end tax planning for our Sub S corporation employer. Historically, ...
A: Your idea of pushing the tax liability on the payment made to pay the taxes would reduce the taxes ...
|
| New business in Thailand | 12/4/2006 |
Q: I just set up a business in Thailand. I live in the US. Can I deduct the start up costs ( ...
A: There are many, and I mean many, limitations to deductibility on your personal tax return. And even ...
|
| solo (k) plus pension? | 12/3/2006 |
Q: I have a retirement related question. I have a business which pays me $37,000 per year (with small, ...
A: If the pension includes an employer contribution, then it would be good. Otherwise, tax deferred ...
|
| LLC Tax Question | 12/2/2006 |
Q: Need help please! We started an LLC in Jan 2006 with 2 members and are considered a partnership in ...
A: If you have been treating yourself as employees, then do the w-2's. The end of year accounting and ...
|
| Non- u.s. resident | 12/2/2006 |
Q: How would a non U.S. resident be taxed if he holds interest in My LLC in Georgia
A: The LLC would be required to withhold, and pay to the IRS 30% of all the funds that were intended to ...
|
| quickest way to get resale certificates in many States | 12/1/2006 |
Q: I am a reseller of Audiobooks to Public Libraries, (an LLC-we DO NOT CHARGE SALES TAXES) and my ...
A: In most states the Sales and Use tax permits are handled by the Local business license department, ...
|
| short sale of house | 12/1/2006 |
Q: If a person is doing a short sale on their home, can that person use the deduction to eliminate the ...
A: I think you'll find the bank will be unwilling to allow a short sale if the owner is benefitting ...
|
| Business loss/Email changes? | 12/1/2006 |
Q: I am a sole proprietor business who just started last year. I spent the money to purchase booth set ...
A: For the long term, learn from this and don't depend on others, registering a domain is cheap, simple ...
|
| Initial Capital investment | 11/30/2006 |
Q: My name is Rene, and I am a construction contractor. In July of 2006 I formed a C Corporation. To ...
A: Let me first congratulate you on your intelligence, shrewd business savy and independence to choose ...
|
| Sch C to S-corp--351 transfer | 11/30/2006 |
Q: I guess the last part of this question--"and still have this fall under the 351 regs?" was ...
A: So you want to loan the assets to the sub-s, instead of capitalizing them into the sub-s? When you ...
|
| Converting to S-Corp Taxes | 11/30/2006 |
Q: I took a 1099 programming contract a couple months ago. I recently started the process of ...
A: Directly to yourThe Sub-S would be a new entity at hte date you create it and would only be ...
|
| Sch C to S-corp--351 transfer | 11/29/2006 |
Q: I have a Sch. C for a client that we are incorporting to an S-corp. Assets are: small cash, 200,000 ...
A: When you say "still have this fall under the 351 regs" Does that mean you want to know; whether ...
|
| taxes for 1099 | 11/29/2006 |
Q: i will have made about 40k this year that i am 1099'd for. my husband has a w-2 and has probably ...
A: You're, right your husband's income has most or all of the taxes with held. You have not. On your ...
|
| Tax Liability for LLC | 11/29/2006 |
Q: I am a minority partner (5%) in an LLC. I am considering leaving this partnership in the near ...
A: Normally, it is apportions based upon the percentage of the year that you hold the ownership ...
|
| acquisition taxes | 11/29/2006 |
Q: when a company is sold to another what are the standard taxes and are there steps you can take while ...
A: For the business itself there is not taxable event. The taxable event happens to the owners. The ...
|
| husband-wife partnership | 11/28/2006 |
Q: My question is on behalf of a friend that runs a husband-wife partnership. It is a dance school and ...
A: Since, I assume, it is not a charitalble, tax exempt, enterprise; the word donation does not really ...
|
| salesman expenses | 11/28/2006 |
Q: What exactly can salesman expense out, re: meals, gifts, office supplies?
A: You can expense "Actual Business Expenses". Meals are limited to 50% (that would be the other guys ...
|
| Use income from 1st freelance gig to buy business equipment | 11/28/2006 |
Q: I have two questions I hope you can help me with. I live and work full-time and recently started ...
A: Well, generally, a computer is a depreciable investment so it would take 5 years to realize all the ...
|
| Cell Phone Usage | 11/27/2006 |
Q: Is there an amount that employees can be paid through Accounts payable (instead of payroll) for ...
A: Many businesses provide a cell phone to the employee for work and deduct the entire payment. You ...
|
| sole proprietorship | 11/27/2006 |
Q: are there government taxes for Sole prprietorship, like partneship and coorporation
A: As a sole proprietor you pay personal tax, both income and payroll on all the money that the ...
|
| Converting C-corp to Sub-S | 11/27/2006 |
Q: Several years ago I put some rental property in a C-corp (that is all the C-corp is used for). I ...
A: It would be a bad Idea. But if you want to convert your real corporation to a sub-s you would file ...
|
| S Corp | 8/29/2006 |
Q: Even if they were never a C Corp? What if they do not care if distributions are not done equally ... ...
A: Those persons could purchase more stock with their distributions, increasing their percentage ...
|
| home purchase at a loss | 8/29/2006 |
Q: I am interested in purchasing a home that is marketed as a teardown for $300,000. The ...
A: One of the misconceptions about writeoffs is that they are a good thing. They aren't they just make ...
|
| S Corp | 8/29/2006 |
Q: Are S Corp shareholders required to take distribution checks eqaully? I have been told this but ...
A: Conventional corporate form requires distributions to be commensurate with stock ownership. Meaning ...
|
| CAPITAL GAINS ON INVESTMENT PROPERTIES | 8/29/2006 |
Q: Richard, I live in Texas, and am about to purchase a building for 2,100,000. Once the condos will be ...
A: From the total sale price, deduct costs including construction, sales, and closing costs; From that ...
|
| 401K Restriction | 8/28/2006 |
Q: my employer states that per an agreement with the IRS, I cannot do a withdrawal from my 401K unless ...
A: I believe they meant to say that you would be subject to additional penalties if you withdraw for ...
|
| Taxation for an NJ LLC | 8/28/2006 |
Q: I am planning on incorporating an NJ LLC. I have 2 questions: a) In case the LLC makes a loss then ...
A: The minimum $500 tax is a State of NJ rule and I don't know if that applies to LLC's or not, so a ...
|
| single member LLC and S-corp election | 8/26/2006 |
Q: You answered the following question. Everything I read says that sigle member LLC can elect s-corp ...
A: I don't remember the context of that particular response, but let me apologize for the ...
|
| minority interest | 5/31/2006 |
Q: I am a Trustee of a Trust that owns 50% of the shares in c-corps that hold real estate. There are ...
A: The argument would not apply. As you state, you would dissolve then create a new entity; the LLC. If ...
|
| Distributions in S Corp and LLC taxed as Partnership | 5/31/2006 |
Q: If I maintain separate accounts on the books for investment and retained earnings (profit & loss), ...
A: Whether you maintain seperate accounts or not, you will make 1 k-1 distribution form the business to ...
|
| Small Business Write Offs | 5/30/2006 |
Q: You say that it's not 100% but I was sitting at H&R Block when they asked my fiance if he wanted to ...
A: When I say "not 100%" there are two things that apply. First there are no deductions against Self ...
|
| used mobile home dealers | 5/30/2006 |
Q: How does the IRS require sales and financing of used mobile homes to be reported? Do you have to ...
A: I take it, you are describing owner financing. Otherwise the seller would get the entire amount the ...
|
| LLC Tax Rates | 5/26/2006 |
Q: Mr. Fritzler, I am in the process of writing a business plan for a start up business that is ...
A: Yes. You metiuon an LLC, which for tax purposes is a "disregarded entity" according to the IRS. ...
|
| How do I... | 5/26/2006 |
Q: We currently cannot deduct our real estate losses due to the fact that our AGI in excess of $150k. I ...
A: Hands down choosing to do business as ALL of the most successful businesses do is a good choice. ...
|
| Capital gains tax | 5/26/2006 |
Q: We own a Pepperidge Farm Distributorship in Arizona. The business is about to sell. Is there any way ...
A: "Would buying another business avoid the taxes?" Avoid, NO, postpone yes. A 1031 (like kind ...
|
| LLC vs C-Corp tax advantages for small fry | 5/24/2006 |
Q: I'm a freelance writer who's thinking of incorporating because of a client's request to take on an ...
A: The IRS classifies the LLC as a "disregarded entity". They do not recognize the LLC for tax ...
|
| LLC vs S-Corp | 5/23/2006 |
Q: My husband and I are in the process of opening/creating an online spirit apparel store. It will be ...
A: This is a very common question, and yet many people seem to make the wrong recommendation. Try this ...
|
| S Corp - Owner s Draw | 5/23/2006 |
Q: I have a share in an S-Corp with 55% share going to my partner and the remainder to me. We ve just ...
A: The owners draws are considered income to you and you'll have to pay income and payroll taxes on ... |
