How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13614
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I have a friend that has a business in Japan. She lives hear

This answer was rated:

I have a friend that has a business in Japan. She lives hear in the States and buys product hear in the states but sells them through a web based portal in Japan. She ships the product from the states and pay the export tax. She is paid in Japan yen and then converts the money into dollars and brings it back to the US. Is the money she brings back to the states subject to US income tax?

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
As your friend lives here in the US she is either a resident alien, a nonresident alien, or a citizen. If she is a resident alien or citizen she is taxed on her worldwide income. It does not matter if she brings the money back into the US or not.

Robin D. :

Her business type (sole proprietor, LLC,....) will determine how she is to report her income.

Robin D. :

Can you tell me more about the business type (incorporated or not) and if she is a US person?

Customer:

She is a sole proprietor not incorporated and yes she has us citizenship. How would the income be reported to The IRS.

Robin D. :

She should report her business income on Schedule C. She will also use the same to report her expenses. SHe will have self employment tax also for any Net over $400

Customer:

got it thank you!

Robin D. :

You are most welcome.
Your positive rating is always thanks enough.


 

Robin D. :

I really enjoyed working with you – please feel free to request me again when you come back to ask another question.
You will find the request feature when you come back under your MY QUESTIONS section.


 

Robin D. and 2 other Tax Specialists are ready to help you