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I half own an S Corp that my annual W-2 is over $200k and my

I half own an S Corp that my annual W-2 is over $200k and my half of the company profits range around another $100k or so that goes on my tax return. Been a W-2 employee there since 1990 and have a good book keeper and accountant. This job also provides a company car and my health insurance.I have several rental houses in my personal meme that produced income.In addition, on the side I dabble with flipping houses. Since I'm short on time about 1/4 or so of the 5 or 6 houses a year that I sell a year I hold for over a year. No rents. They just sit. Busy.I have always reported the sales on Schefule D except for in 2013 I included two sales on C and 2015 I included two on C. The reason at the time I reported those on C was that they were the only houses I carried in my LLC. The others were in my personal name. Income from the sales are around $100k a year.This year my pay from my normal job will remain the same as well as the company profits rolled to me. Sales of the houses, 2 being held for over a year with one rented for six months to the eventual buyers come Dec.What I want to do is just report all from here on out on Schedule D. I have a full time well paying job outside of real estate. I also am contemplating amending those two other returns to switch the sales from C to D. Do you think this would throw up red flags?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,018 satisfied customers
Please unlock so Lane can answer." Taxpayer pulled a NY

quot;For Lane. Please unlock so Lane can answer."Taxpayer pulled a NY state audit specifically interested in some cattle (sched D) sales that should have been but were not reported on the original return. Taxpayer needs to amend both Fed and State returns. What is the protocol for this? Can we simply amend and send state amended return before the deadline to respond? Thanks!

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,706 satisfied customers
I have an Etsy shop and my own website. I got 1099's for

I have an Etsy shop and my own website. I got 1099's for both which didn't include paypal. I didn't make enough through paypal for them to 1099 me. I still have to add up those sales and include them in my income, correct? How would the IRS know if you didn't declare that income without a 1099?

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I live in New Hampshire and I will be starting a software

I live in New Hampshire and I will be starting a software consulting company and I have the following questions:1- Should I go for an S-Corp and provide myself a salary so that I can save on FICA or should I just go for an LCC and be taxed 15% + profit tax?2- Should I register the company in Delaware (flat state annual fee of $300 + registered agent fee of $50) or should I do it in NH but I will have to pay %8 on the corporate profit?3- I will be working in all the states and probably not in NH. If I were in a state that has state tax, I will probably get double taxed but will get a credit from my state but in NH there is no state tax, so there is no way to get a credit.4- do I have to pay taxes in all the states where I work?thanks

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,018 satisfied customers
About Tax "Administrative Convenience Concepts" How to add

About Tax "Administrative Convenience Concepts"How to add something to make the Qs different?Original Qs:Sam is an owner of food Company and he has a restaurant. Every Tuesday and Friday the company offers free lunch to the employees and it cost 8 dollars per meal. This offer has a condition that the employee should buy a meal from Sam's restaurant every day to get this offer. Jenny is working for Sam's Company. She buys lunch from Sam restraint every day.Is Jenny taxed on the free lunch she receives from Sam restaurant?According to Administrative Convenience Concept, Jenny is not taxed on the free lunch.

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I just received a letter from the IRS stating your federal

I just received a letter from the IRS stating your federal income tax return for 2014 was selected for a compliance research examination they are examining 5 items from sch A and sch D 2 items and sch E1 schA lines 5...6..71040 interest taxable and 1040 line 21 gambling winnings i'm 60 years old and NEVER had anything like this.. the accountant will be going with me i have a meeting with him on weds...question is why are they doing this...what should i say or not say... how do i go through with this audit without headaches...all my taxes were paid without question..the 116,117 in gambling wins the lottery takes out 33% right out of the checks they issye you,,so they more then received every penny then some...i doubt i would need a lawyer present as a spokesman i need your advice on this issue it has my blood pressure soaringregardsmark

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
Lane, I have a client who has contracted work from me. I was

Lane,I have a client who has contracted work from me.I was to develop software for an online product/service. He was to pay money, put forth best efforts to commercialize, establish an operating entity.He is in default on these clauses of the contract. He is no longer communicating. The contract does not define what happens when there is a default or remedies and time to cure. The product/service is complete....each have a non-exclusive right to 100% of the System and all intellectual property developed by the Venture.By the client stonewalling they are enjoying all the benefit of the product/service in their market for free while preventing us from earning any money or other benefit.I do not want to do anything unethical or against business law.The product or service MAY have a large potential. So I want to create a paper trail of facts to deter either their suing us or winning if they do sue. I do not want to sue. I do not want them to cure, I do not believe they will cure, if they do I accept that and will fulfill my responsibilities under the contract.For example;Letter 1; notifying them of the default, setting out the facts and demanding compliance by a reasonable date, or we will be forced to default them out of the contract.Letter 2; You have not responded to the demand letter... you are now in default... you have until (a reasonable time, date) to cure the default... to cure the default you must...Letter 3; The reasonable time has passed, you have not responded, you are beyond the reasonable time to cure... Both parties are free from any and all obligations under the Contract. We will be incurring substantial costs moving forward commercializing the product/service. You have no claims to any future income.I believe something, (maybe more creative than I have shown above) should be a deterrent for them to commence any action against us, and if they did this correspondence should be persuasive to any court.In other words, when their perspective lawyer reads this he will advise them this is a losing suit, You did not give full consideration, you did not put forth best efforts, you did not even respond to their registered notices, and by the terms of the contract you can only sue for the amounts invested and/or amount received in the prior two years of the Venture.If they do not cure, my main goal here is I don't want to make this a huge success in spite of them not doing their part. Their learning of a big acquisition occurring and then threatening to sue to extort part of the proceeded from the acquisition.Can you give me pointers while I draft the letters over a series of JA questions?RegardsSam

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,706 satisfied customers
If I do some work for a foreign country (Sweden) and get an

Hi thereJA: Hello. What seems to be the problem?Customer: If I do some work for a foreign country (Sweden) and get an income from them, how do I declare it to the IRS?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I do not have my own business, or anything like that.JA: Is there anything else important you think the Accountant should know?Customer: not that i can think of

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
Are the new streamlined offshore program rules attached

Are the new streamlined offshore program rules attached valid. I just talked to attorney who said to be in compliance one must amend 8 years of income tax, pay back taxes and interest, penalty, and 27% of the highest balance on the account.Can a non-willful taxpayer really amend only the last three years of tax returns, pay the interest and taxes on those returns and pay a penalty equal to 5% of the highest year-end value of undeclared assets in the last six years?How many years of FBAR does one need to file?

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Mark Taylor

Certified Public Accountant

Masters

1,236 satisfied customers
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