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Recent Federal Taxable Income questions
Good afternoon. I have a non qualified pension plan from
Good afternoon. I have a non qualified pension plan from derived from income earned while working in Pennsylvania. At the time of my employment, Pennsylvania withheld state taxes from the contributions going into this plan. Accordingly, my distributions from this plan are not taxable in Pennsylvania. If I change my primary residence to S. Carolina, will these distributions become taxable?
Vocational, Technical or Trade School
Accural basis - - State corporate income tax paid last year
Accural basis - - State corporate income tax paid last year is deductible on a current year federal tax return, right. How about the state income tax of current year? Does it need to be accounted for a timing difference on a federal income tax return?
Sr Financial & Tax Consultant
A person wishes to move to FL and sell their home in NY. the
a person wishes to move to FL and sell their home in NY. the NY home will be an installment sale. should they move to FL first then sell the NY home in an effort to pay lower tax's? also how many days do they have to reside in FL to be considered a resident for tax's?
Tax advisor and Enrolled Agent
There, First off, my apologies wall of text
Hi there,First off, my apologies for the wall of text but I like to sketch the situation as detailed as possible and really, I have never received a clear or accurate answer to this, not even from my local accounting firm(which has international connections in the US).Here's the case:In late 2015 I have registered a single-member LLC in Delaware as a non-resident(I am from Belgium). The reason for this is that I did plan to only sell to US customers + set-up costs for a company over here are way higher.For the past 5-6 months I have been selling physical products on Amazon(US).The process is pretty much this: my US supplier manufactures the goods, ships them to one or multiple Amazon fulfillment centers/warehouses, then ships the customer who has made an order on the Amazon platform.In other words, I never get to see the products myself.For the past few months, I have been in contact with a local (Belgian) accounting firm.Unfortunately, as I am such a small starter and haven't turned profitable yet, they seemed to put me on the side and in the dark for pretty much this entire period of time.When they did contact me a few days ago, the only thing they could tell me was that I would need to pay income tax in the US, and not Belgium(contradicting what they initially had told me weeks/months ago).What I was wondering really, as I am a Belgian resident with an US LLC things get MUCH more complicated than it seemed at first hand. The accounting firm just gave me a two possible outcomes/quotes that he still needs to figure out himself:outcome 1: If there is no permanent establishment and no state nexus then he will probably charge me $3000 for the Federal protective tax return and treaty based return disclosure in this first year, and $1500-$2000 each year thereafter.outcome 2: if there is no permanent establishment BUT a state nexus(which I'm guessing it is as I have physical products stored in Amazon's warehouses), then this would immediately means a fee of AT LEAST $8000.Here was the full email that the collegue sent to my accountant in regard to getting my single member LLC's administration in check:"I think that a short memo outlining the key US Federal income tax issues (including an introduction to State taxation) should cost approximately $3,500. That assumes that the enterprise will undoubtedly constitute a permanent establishment. If this is not a clear case and we need to analyze whether or not the LLC constitutes a PE, the fee should increase by $2,500.We should also review whether the LLC creates a taxable presence (“nexus”) in particular States (be it for State income tax or for sales & use tax purposes). The fee for an in-depth State nexus analysis would need to be discussed with our State & local tax (SALT) team.Going forward, I would anticipate tax compliance costs to be as follows:Alternative 1: no PE in the US, no State nexusFederal protective tax return and treaty based return disclosure: $3,000 in year 1; $1,500-2,000 in subsequent yearsAlternative 2: no PE in the US, but State tax nexus (incl sales/use and income tax)Federal protective tax return and treaty based return disclosure: $3,000 in year 1; $1,500-2,000 in subsequent yearsPro-forma Federal tax return (as basis to determine Federal taxable income for State tax purposes: $3,000 - $4,000State income tax returns: $800 - $1,000 per StateState sales & use tax compliance: TBDAlternative 3: PE in the USFederal tax return: $3,000 - $4,000State income tax returns: $800 - $1,000 per StateState sales & use tax compliance: TBDBest regards"My questions:- Are these the effective costs that I will need to pay to be fully compliant with the laws and legal side, as a non-resident single member LLC? I have spoken to a few LLC owners(including non-residents) over these past few months, and never has someone mentioned something of this scale...- Where would my business have a 'Nexus', just in the states where my product are/were stored or in every state that a customer has ordered from?- I've gathered from other sources(not my accountant) that I would need to do the following; "since the single member owner is a foreigner, you file 1040NR and W8-BEN and the withholding tax is 30%." Is this accurate?Not even my accounting firm seems to know exactly what they should do, so I'm feeling a bit lost and helpless here...PS: I have an 'official' address in Florida through MyUS.com, so I can receive letters/mail/packages.
Bachelor's Degree Equivalent
No W-2 or a 1099-MISC was issued to a Pastor. There is housing
No W-2 or a 1099-MISC was issued to a Pastor. There is housing provided to the Pastor and the church maintains the expenses of the house located on the Church property. The amount of checks received totaled $18,000. How is income properly imported into a Tax return.
We are building a new home. Which part of the cost is taxView more tax questions
We are building a new home. Which part of the cost is tax deductable?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: sJA: Is there anything else important you think the Accountant should know?Customer: such as fees and permitsJA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and then connect you two.