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Recent Double Taxation questions

You are traveling from another country to the USA and you

You are traveling from another country to the USA and you have already paid taxes on your income there.What papers and documents are needed to get relief from being doubled taxed?

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Robin D.

Vocational, Technical or Trade School

21,866 satisfied customers
I am currently a 50% partner of a Texas LLC which is in it's

Hi,I am currently a 50% partner of a Texas LLC which is in it's 9th year of successful operation.This past year, I have been absent from daily operations and management of the business due to other business interests. My partner and I have both agreed I would decline a salary and be removed from payroll going forward and be removed from daily management duties.When it came to taxes, I have always had a W2 and a K1 from the Texas LLC and paid my taxes based on my personal tax rate.My question is, now that I am not an employee of Texas LLC and in essence a silent equity partner. Can I categorize this income as capital gains?By the way, my partner and I both agreed to have the K1 from the Texas LLC pass through to my new "Holding LLC" rather to myself.Thanks,James

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,096 satisfied customers
Can you purchase a dba business using an out of state LLC?

Can you purchase a dba business using an out of state LLC?JA: Can you tell me what state the LLC is registered in?Customer: OregonJA: Has anything been filed or reported?Customer: it's a filed LLCJA: Anything else you want the lawyer to know before I connect you?Customer: THE BUSINESS WOULD BE IN nc

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,096 satisfied customers
I have an online freelance business based out of overseas,

Hi, I have an online freelance business based out of overseas, but I do receive profit from this business in the US.If I receive more than 20k in profit per year would it be wise to incorporate a business in Delaware in terms of tax benefits? Also will I be still responsible for any state tax etc in my home state which is GA if I do so?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,096 satisfied customers
Dear Pearl, and I have a C-Corp for imports and exports of

Dear Pearl, I am Brazilian and I have a C-Corp for imports and exports of goods in Florida. During the last 8 years, the corp accumulated 100k in profits. Can I use this accumulated earnings (cash in the account) to buy a real estate property as a rental investment under the company name? My current accountant told me I cannot buy a house for rental because it is different from the original company core activity. he says I must tranfer the money to my personal account, pay around 20% personal income tax, form an LLC to send the money. What can you recommend?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,096 satisfied customers
I am a partner in a NJ S-corp, but dont live there. I am a

I am a partner in a NJ S-corp, but dont live there. I am a resident of AZ. I received a letter from NJ asking for a NJ return. How do I determine how much of my distribution is attributed to NJ?JA: The accountant will know how to help. Is there anything else important you think the accountant should know?Customer: nope

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Mark Taylor

Certified Public Accountant

Masters

2,038 satisfied customers
Income of a US citizen taxed in India, will be taxed again

income of a US citizen taxed in India, will be taxed again in US? Is there a dual tax system?The expenses were done (i.e. Air ticket, house rent, food expenses paid in India) to visit India to control themoney and for Indian taxation purpose will be allowed by US tax department to claim in my US tax returns?.US citizens residing in India for a long time and gaining income there from investments, will need to come back to the US to file IRS returns every year?Or, can it be done from India?Or, CPA in the US would be able to file my taxes thru mail correspondence from India?Thank you

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Robin D.

Vocational, Technical or Trade School

21,866 satisfied customers
I wish to start a new business and register the LLC company

I wish to start a new business and register the LLC company in Nevada. I plan to have an office in Nevada itself. Since i live in CA , do i still need to re-register the company in CA ? and do i need to pay double the taxes ?

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ABC Accounting Group

Bachelor's Degree

394 satisfied customers
I am a tax professional (EA) and one of my clients sent me

I am a tax professional (EA) and one of my clients sent me the following article. He has an S Corp. Please review it and let me know your view on it. As far as I know, what he is proposing requires the client to pay 15.3 % of all ;profit to Social Security and Medicare. And for a one man S corp I see little advantage in what he is proposing. Am I missing something here? Also, last I knew S corps were way less audited than Sole Props. Not sure about partnerships. And I do not see why he would put things in a format that appears to give no SE tax shielding. Let me know your view. I am dealing with many one and two man S Corps and LLCs filing as S-Corps. Usually it is a step up from Sole Prop to shield profit from SE tax. Is there some advantage to what this guy says, or is he just ranting.LET'S PLEASE PUTS-CORPS COMPLETELY TO REST – DEAD & BURIED!We are in the 21st century, not the 1st century!Despite telling real estate investors and business owners to avoid S-corps in my courses, newsletters and other correspondence, I continue to get questions on using an S-corporation. The “S” in S-corp stands for SUCK! Here is why, which is not based on my opinion, but based on factual data…Major Tax Pitfall Of S-Corporations_More IRS audit profile and audited much more than partnerships. Very high IRS exposure (the most IRS litigated entity where the taxpayer almost always losses)._Highly Taxed W-2 Salaries With Substantial Employment Taxes – The net income of an S-corp is presently exempt from employment taxes*. But, based on numerous and continuing Tax Court cases, IRS requires the S-corp to pay you a significant amount (even 100%) of highly taxed W-2 salaries along with payroll taxes and filings. This amounts to thousands of dollars of “garbage” employment taxes out the window, reducing your business cash flow. (*Pending legislation would make S-corp net income totally subject to employment taxes)._Limits on fully deducting business tax losses because such losses are limited to the shareholder's basis in the S-corp's stock, which does not include third party debt. Termination of an S-corp status freezes the deductibility of unused carryover losses._S-corp distributions of tax-free borrowed money to shareholders could be taxable because of the above basis limitations. What a tax disaster!_Income and losses must be apportioned strictly in accordance with the exact number of shares owned, with no variations of special allocations to different shareholders._Limits on who can be a shareholder. S-corporations cannot have as shareholders – IRA's, corporations, partnerships and non-resident aliens._An S-corp can have only one class of stock ownership. Not being able to treat entity owners differently puts a limit on tax-reduction planning, such as with a special two-tier LLC structure (see below).What To Do > LLC-partnerships do not have the following disadvantages. Therefore if you have an S-corp, for your real estate investments or your small business other than real estate, get RID it.For real estate investments use a properly structured real estate LLC-Partnership per The LLC Master Machine Asset Protection System www.LLCProtectYou.comFor a small business other than real estate, use a properly structured two-tier business LLC-Partnership per The Business Owner's LLC- Protection System www.LLCBIZShield.comKnow Thy Money!SOME HARDCORE FACTS ABOUT MONEYFACT 1: NO body, but NO body. cares more about your money than YOU! And that is the way it should be as you are the owner. When I say “money” I do not just mean cash or bank accounts; there is also the equity in your home, real estate investments and other assets – IRA, 401(k), other retirement plans, stocks, bonds, mutual funds, insurance, annuities, etc. And your taxes (see below).FACT 2: Taxes = Money! Saving taxes is like making money. The wealthy know that taxes are a primary factor in determining whether you get rich or stay poor. Let's say, for example, you're able to save just $2,000 annually on your tax bill. (With a good tax plan it will be much higher). You invest the $2,000 annually in an IRA which earns a tax-free annual return of 10%. After 20 years, you'll have over $114,000! If you can save $10,000 annually on your tax bill and invest it in a Simple IRA for 20 years, you'll end up with almost $573,000! Over a half of million dollars!! (Imagine how much with Mike Warren note buying!) $5,000 in tax savings (which is found money) as a 10% down payment can allow you to buy an additional $50,000 in real estate! Assuming a 20% yearly return you would earn $10,000 which in 5 years would accumulate to $50,000! Get the point? Money makes money, but tax-free money makes a lot more!!

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,096 satisfied customers
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