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Recent tax questions

In Canada, as an only owner of a corporation that does about

In Canada, as an only owner of a corporation that does about 600k in revenue, and paying myself 80k per year, what is the most tax effective way for me to withdraw 25k from the business for my own purposes?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,278 satisfied customers
Would it be worth itemizing and increasing deductions on my

Would it be worth itemizing and increasing deductions on my paycheck for this year?I have been filing standard.This year...I bought a car 3 months ago... $14,800.. 2.4% loanClosing on a house before Aug. 1... sometime in July... $141,300... 3% loan....Should I just wait till next year to adjust my deductions on my paycheck?I made $39,800 last year

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
I have a CA LLC, single member. There has been no activity

Hello, I have a CA LLC, single member. There has been no activity in the business other than costs associated with start-up, and product development. I am considering shutting the venture down in August 2016. I have about $17000 of raw materials in inventory. My question is, if I simply dispose of the inventory (throw it away) what if any percentage of the "loss" will I be able to deduct. My personal income outside of the zero revenue LLC is $80000. thank you. Daniel

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Barbara

Enrolled Agent, Paralegal

 
4,688 satisfied customers
I am the sole owner of an LLC that is taxed as an S Corp. I

I am the sole owner of an LLC that is taxed as an S Corp. I also have a solo 401K and I want to make sure that I understand the process for contributing to my 401K while maximizing the contribution.I am over 55 so catchup contribution applies.My understanding is that getting $140K in W-2 wages from the LLC is the magic number so that that the maximum 401K contribution can be achieved. This breaks down as follows. I can have the 1st $24K deducted from my wages as a deferred elective 401K contribution in pretax dollars. This shrinks my taxable wages to $116K.I can have $35K = $140K X 25% contributed as a non-elective contribution.Assuming the above is correct, what I do not understand is where does the $35K come from. Does it come from me as an individual in after tax dollars from the $116 that I am getting in wages or does it come from the profits of the LLC?If from the LLC that I guess the LLC would need to have at least $175K cash = $140K + $35K in order for this scenario to work. Is this correct?Lastly, how is all of this reflected on my W-2 and K-1 of the LLC? Assume for the moment that the LLC has income of $250K for the calendar year.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,278 satisfied customers
I've carefully gone over my tax situation with a consultant

I've carefully gone over my tax situation with a consultant and did some calculations some calculations on my own, with the percentages and numbers provided to me by just answer.comNow I feel comfortable about what to expect, filing taxes this year with the IRS. However, I still have a few more follow-up questions if you don't mind helping me:To my last conversation I was basically told that 0.153% is used for self-employment tax and basically .25% is what to spec on the net income...

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
What should I be paying in taxes?

What should I be paying in taxes?

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
I am a self employed sales broker and work from my home.

I am a self employed sales broker and work from my home. I have an office which is approximately 600 square feet. I also store product samples (for presentations) and historical business files in my basement. I measured that space and it is about 400 square feet. My house is 5,000 square feet. Do I get to use 20% (1,000 of 5,000). The samples take up half of the 400 square feet. They are only for demonstration purposes and not for sale. Thanks for your help.

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Mark Anderson

Attorney

Doctoral Degree

 
472 satisfied customers
When I prepay a business trip in a given year planning to make

when I prepay a business trip in a given year planning to make the trip in the next year, can I declare the trip in the year i actually make the trip

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Mark Anderson

Attorney

Doctoral Degree

 
472 satisfied customers
I operate an e-commerce business. As I am in the

Hello,I operate an e-commerce business. As I am in the market research phase of my business, I have been driving everywhere (various department stores) from my home based office to find merchandise to eventually sell on my website. The business purpose is to get product ideas and to physically research products that I have in mind.Question: Can I deduct these miles for purposes of market/product research or to find merchandise to sell?Thank you.Denise

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590 satisfied customers
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