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Recent Business Tax questions

I am looking at my business taxes. There is a section for

Hello, I am looking at my business taxes. There is a section for depreciation schedule for the year. do I record the current depreciation from that schedule into my accounting system? If so, I would debit depreciation expense and credit accumulated depreciation for the tax year, correct? The confusion is I see Federal and Maryland Depreciation which do I record?

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
I have a small business and I have a mortgage on a rental

I have a small business and I have a mortgage on a rental property. My business is about to receive enough money to pay off the mortgage. My idea was to have my business buy my rental property from me and use that big purchase as a business expense, then have the renters pay my company, & I would report the income from the property that I receive monthly as business income for my business. Is this legal, and can I claim the purchase as a business expense so long as I report the income from the property on the business taxes and pay all the property taxes etc?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,018 satisfied customers
If a couple is married, both living in CT, one is working in

If a couple is married, both living in CT, one is working in NYC, the other has a CT home business - the wage earner working in NYC has NYC taxes withheld from their pay, but the at-home worker in CT makes more money so the percentage of tax due to NYC based on the income earned in the city is inflated because the partner is bringing the NYC partner into a higher tax bracket. Is there a remedy for this? Why should the CT business owner have to pay NYC taxes?

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
My husband elected to change his business tax filing status

Hi there! My husband elected to change his business tax filing status from single member LLC to LLC taxed as an S-corp effective Jan 1, 2016. He made the change because we'd like to sell the business in a few years and our attorney said that this conversion would make it easier. I haven't been very involved with his business in the past, but since I recently completed my accounting degree, he would like me to take a bigger role. Prior to this, we had a family friend doing his books & taxes, but I'm realizing now that may have been a big mistake. As I'm in the process of setting up his "new" books, I have a few questions related to assets and equity. He had one truck (acquired in 2008 for about $50k, brand new) that will continue to be used for business (approx 95% business usage). He also has various pieces of office equipment (acquired in 2010) that have been fully depreciated on past on his Schedule C. My understanding is that to "move" the assets to the S-corp books as contributed capital, I'm supposed to do so at FMV as of the date of conversion, correct? How do I do this when, in the case of the office equipment, it's FMV is now negligible? Also, regarding his truck, I think it was depreciated incorrectly on prior returns (2008-2013). From what I can see, it looks like only $26k in depreciation was taken over those years. My understanding is that you only get 5 years to depreciate vehicles...and with the books still showing $24k left to depreciate, are we out of luck? Is there a way to "move" this unused depreciation over to the S-corp and take it on future returns? If not, how do I record his truck contribution on the new books? Any help on these issues would be greatly appreciated!JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: I think those are the major issues.

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
I am amending my business tax return (form 1120) for 2013

I am amending my business tax return (form 1120) for 2013 and 2014 to correct the depreciation for those years. Do I record this depreciation in my quickbooks for 2013 and 2014 or show this on schedule m-1?

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
I paid $40,000 in back taxes to the city of Philadelphia.

I paid $40,000 in back taxes to the city of Philadelphia. Can I write this off next year on my Federal and State Tax?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: there is no more to tell. If I had paid the tax as required this would have come out of my federal and state taxes as non taxable income. Retroactively can I do this?JA: Is there anything else important you think the Accountant should know?Customer: no

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ABC Accounting Group

Bachelor's Degree

192 satisfied customers
I filed my business taxes as being self employed last year

I filed my business taxes as being self employed last year but I now need to go back and do a w2 as being an employer of the business which means I will owe taxes(fed, state, medicaid). Is that possible to do? Filing 940, 944 and submitting w2 info that late

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Robin D.

Vocational, Technical or Trade School

21,204 satisfied customers
Currently, my father in-law pays my wife a salary and takes

Currently, my father in-law pays my wife a salary and takes out taxes, social security etc.We formed a LLC. We are wondering if my father in-law paid the LLC vs. my wife, if there are tax advantages for us or would we have to pay more because of state business tax on that income + state taxes, fed, and social security?

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
We prepared inhouse, business tax retrun, 1120s. this

we prepared inhouse , business tax retrun, 1120s. for efile this return, software asks for Tax prepared ID number or efin number. As it is prepared as a "self preparer" we dont have any of above mentioned number. I called IRS, they said to apply for efin number. But it seems long procedure. And size of business is so small , it is not worthwhile. So which is most cost effective method to efile business tax retuen 1120s? And NYS IT 201?

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Barbara

Enrolled Agent, Paralegal

5,132 satisfied customers
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