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Recent Dividends questions

We recently formed an LLC (2 members). We are franchising an

Hello,We recently formed an LLC (2 members). We are franchising an independent insurance company. Member 1 will handle all the office work, and member 2 will handle the selling.We wanted limited the direct taxable income at a higher rate by electing to be taxed as an S Corp. Pay ourselves a market salary and then push down the remaining profits as a dividend. Does this seem like a good idea, why or why not?Thanks!

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Mark Taylor

Certified Public Accountant

Masters

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The DOW was 1000 points 45 yrs ago. Since the DOW is over

The DOW was 1000 points 45 yrs ago. Since the DOW is over 18,000 today does that mean that a $1,000 invested in the DOW 45 yrs ago would be worth $18,000 today throughout all the market crashes during the 45 years assuming I never sold.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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Situation: resident. A non-US citizen wants to give me a

Situation: I am US-resident. A non-US citizen wants to give me a cash gift. In order for me to get the cash gift, the non-US-Citizen must first make a transfer to her account located in the US (this is required by the donor's financial institution overseas). then:1. Do I pay taxes on the cash gift, if the amount is greater than US$ 100,000? Do I pay if the amount is lower than 100,000?2. How would the cash gift affect my tax filing for the next year and future years? (if it is less than US$ 100,000 or greater than US$100,000)3. Once the cash gift is my account, and I want to withdraw partially or totally the money (to invest or spend it) do I pay taxes? If yes, how much would be the taxes and does it depend on the size of the amount withdrawn?4. Is there another way, to get the money (cash gift or transfer from the US account) to minimize the amount of taxes? such as society or trust? (for amounts lower and greater than US $100,000)5. Do US banks have to report to the IRS and other countries the size of the transfers? (meaning that I would get a tax report from my bankto file with the IRS or other financial institutions)6. I will apply to become a US-citizen in the future. Do you know the implications of this cash gift for my application as a US-citizen? (This is more of an immigration question, but maybe you had dealt with customers with similar situations)Thank you.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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OK, This is 1116 and. T/P sold real property non business at

OK, This is 1116 and amt.T/P sold real property non business at a lT gain of 946,309 in South Korea. She lives here in the US. She paid a foreign tax on it of 405,319. She does have 9600 in wages. That is it. No other income. standard deduciton. no dependents. I am putting this as passive ordinary income on the 1116. Correct? Do I put this on the line for qualified dividends and capital gains from Country? I feel like I am going in circles. This is also triggering AMT.

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Dr. Fiona Chen

President

Ph.D.

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84 satisfied customers
Does an LLC filing as a partnership 1065 get a break in Self

Does an LLC filing as a partnership 1065 get a break in Self Employment taxes for shareholder employees? I know an LLC can elect to be treated as an S Corp, and can then pay shareholder-employees a fair wage. And that this wage will be taxed for SS and medicare And the shareholders who are also employees can take the rest of their income as a dividend not subject to SS and Medicare. I know this can be done if the LLC has elected to be treated as an S-corp by filing a 2553 with the IRS. I am assuming a partnership LLC could elect to be treated as an S Corp by filing form 2553, and the partners would wind up owning the % of shares in the corporation that was their percent share of partnerhship. But if they did this, they would have to file an 1120S. So my understanding is if they file a 1065 and get a partner's share of profits, that that share is subject to 15.3% Self Employment (SS and Medicare) tax. Is this correct???

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Mark Taylor

Certified Public Accountant

Masters

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420 satisfied customers
My house and family are in NC. I worked and paid taxes in

My house and family are in NC. I worked and paid taxes in Michigan. I paid in over 8K total State taxes between both states and NC says I still owe them 4K. I don't think that is fair.

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Mark Taylor

Certified Public Accountant

Masters

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420 satisfied customers
More than 10 years ago I established an irrevocable trust

More than 10 years ago I established an irrevocable trust for the purpose of providing incidental support to my handicapped sister. The trust was not required to distribute income and paid tax on the income every year. My sister recently passed away. The terms of the trust call for the balance in the trust to be evenly paid to my siblings and me. Is this money considered taxable income to the recipients?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,802 satisfied customers
Due to Southern Company's acquisition of AGL, I received a

Due to Southern Company's acquisition of AGL, I received a check for $2,700 for the shares I had with AGL. what kind of banking account should I deposit the money in to avoid paying taxes on the whole amount?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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16,802 satisfied customers
Three siblings received the same disbursement amount into

three siblings received the same disbursement amount into their safe trust accounts from a business that the trusts own equally. The tax profession paid the taxs based on the trust account rate, in other words the funds where not disbursed to their personal accounts but held at year end in the trust. one sibling lives in nj, another in nyc, the last in nys,suffolk county. Are there 3 different tax rates base on where they live or it based on where the trust is domiciled?

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Mark Taylor

Certified Public Accountant

Masters

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420 satisfied customers
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