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What are the tax implications of paying my 2 sons as

What are the tax implications of paying my 2 sons as independent contractors from my LLC?1.) Ages 18 & 202.) Being paid $10/hour a data processing job I normally pay $8 - $153.) They have filled out W-9's and log their hours worked in a time tracking systemI've been told they do not have to pay Federal taxes on the first $6,400 or so dollars. What I'm trying to establish is:- what are my tax implications?- are their tax responsibilities any different than a non-family member contractor?

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Mark Taylor

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Masters

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Question about the US/CA business income tax sellers. I am

Question about the US/CA business income tax for international sellers.I am wondering whether I need to pay Federal or State(California) business income tax?Here is my scenarios.1) I am a Chinese citizen and living in China;2) I have a company registered in California;3) I hired people to buy goods online and shipped to CA, where I have a warehouse;4) I have the goods shipped to China and sell it in China only.In this case, do I need to pay the business income tax? If yes, is there any way I can remit it?Thanks a lot.Eric

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Lane

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Lane. It has been a while so I hope all is well and hope you

Hi there Lane. This is Jamie Eckard. It has been a while so I hope all is well and hope you had a great 4th of July holiday....I have a client who said another one of his partner's CPA's mentioned something about "Phantom Income". From my years I know this is when you have to pick up income and pay tax on cash you did not receive. The client mentioned that the other CPA mentioned tax deferral or something on "Phantom Income" from partnerships he's in but truly I'm missing something or just not sure I've ever crossed that clause....A 5 minute search took me to publication 538 about income recognition but honestly I'm slammed and have not had time and don't really have time to dig into the details. You have always been a huge help so I wanted to reach out to you first....Thanks as always in advance for any help you can provide....Hope you have a great day....Jamie

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Lane

JD, MBA, CFP, CRPS

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Property Tax Exclusions Property Held in Trusts: dies in

Property Tax Exclusions for CA Property Held in Trusts: John dies in Northern CA in January. He has two commercial properties (apartments) left to his five children in a trust. The property titles are held in the trust's name. The children/beneficiaries haggle over selling or not selling for 7 months. The children finally agree to put the buildings on the market and anticipate selling them. Just before getting them on the market, one property county assessor mails them a supplemental property tax assessment and increases the property taxes due. The assessors office valuation goes from 900K to 3.5 million and the taxes are raised from 5K to 60K. Isn't this property excluded from the increased property tax assessment and associated increased tax bill? If so, why?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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I'm not sure if I'm on the correct site to get help with my

I'm not sure if I'm on the correct site to get help with my issues. It has been recommended that I switch to online with my Quick Books to get updated. I'm a senior that isn't that good with computer stuff but currently using QB 2010. I'm afraid to upgrade as there will likely be changes that would challenge me. This is our back ground:-My wife and I live on HER 80 acres acreage just on the Saskatoon City edge. Fifty acres are rented out as hay land, but there are natural pasture spaces for our animals and I do use farm equipment of the remaining tilled hay land for feed. I also do small square baling for neighbors on their land that we use for feed.I also do grass mowing of 7 acres of a small community just outside City limits and have been doing this for the past 22 years. Statement entries are entered in QB.I also help with the Saskatoon Food Bank and learning centre with spring/fall working of the land on a ½ block of Saskatoon City property. This includes working the land that includes topsoil, manure, straw, wood chips etc. I have been involved with this for the past 7 years when this all began.NOW FOR QUICK BOOKS:All the foregoing is included in the quick books entries and with our home operation entries. I have purchased and use various types of farm equipment, builds, fences, animal care facilities etc. Entries to do with home utilities, maintenance etc.{A}…It has been suggested that we use an online Quick Books system to keep up updated as I currently use QB 2010, burn to CD and give the CD to our accountant along with our accounting book entries and receipts. It takes a lot of money to run/maintain this acreage and all records are recorded in ledger and computer.{B}…Online system will likely have a monthly cost which may greatly affect my senior pension. If so is this a recovery expenses at income tax time? Would our accountant be allowed to have access to our online system?{C}…With any new version of QB there will likely be a learning period to do stuff that I'm currently doing, but who or how do I get help from?{D}…We VERY RARELY pay any wages for help, absolutely no Credit Card stuff, as all our bills are paid via automatic bank withdrawal or paid by me via check or cash.{E}…Every three months I do the QB receipt entries for GST rebates.Once my foregoing initial issues have been addressed there may very well be other issues that could pop up. Would there be an account firm in the Saskatoon area that would come to our home to help or is all done online. Should I need help is there an online outlet that I can get help from. Thanks…. Ernie FastErnie & Elsie FastRR 2, Box 9, Site 207Saskatoon, Saskatchewan, Canada, S7K 3J5Res:(###) ###-#### *****: (###) ###-####FAX: (###) ###-#### ***@******.***

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Mark Taylor

Certified Public Accountant

Masters

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Lane, its from NJ. I have another estate matter ques. As

Hi Lane, its Susan from NJ. I have another estate matter ques. As daughter and executor, I have now completed paying the beneficiaries and am checking if all the tax filings done. I was named in the Will to receive the Residual which in this case is funds only. My question is, for Federal Income Tax Purposes for me, are the Residual Funds treated as regular income. Thanks so much

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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Currently I have a full time job which I earn about 80K a

Currently I have a full time job which I earn about 80K a year. I also work independently with Trading company in the Financial markets by trading Futures contracts daily. I did fill out W-9 for that. My question is how do I report Taxes for the income I make and how much would be the Tax rate for the Federal and state tax rate? I live in Massachusetts.

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TaxRobin

Vocational, Technical or Trade School

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I have a variable appreciable life insurance policy from

hi, I have a variable appreciable life insurance policy from Prudential... it has about 75k in death benefit... however it has about 12k in loans and a net cash value of about 2k... Should I decide to terminate this policy and not roll it over to another, I understand that I will need to pay income taxes on some of it... Would that amount be the sum of the loan and net cash value (14k in this case)... also would that income be ordinary income or capital gain which I may possibly apply a previous loss carryover against ??

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Lev

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Bachelor's Degree Equivalent

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I live in California. If I purchase a rental property in NC

I live in California. If I purchase a rental property in NC that my brother will manage for me, what will the state tax implications be? My projected income tax liability will put me in the 9.3% bracket for CA, and NC it will be 5.75%. Thanks.

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TaxRobin

Vocational, Technical or Trade School

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