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Recent Income Tax Liability questions

If you are self employed, what % of your prior year tax

If you are self employed, what % of your prior year tax liability must you send in for estimated payments (and by when) in order to provide a safe harbor against a penalty for underpayment of current year income tax liability?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,920 satisfied customers
This question is for a tax professional with expertise in

This question is for a tax professional with expertise in dealing with expats and relinquishing of green card. From final tax return, form 8854, my question is in regards ***** ***** IV section A item 6: 'Do you certify under penalties of perjury that you have complied with all of your tax obligations for the 5 preceding tax years?' I assume by “complying” would include not having errors in credits, debits, etc in return? If any corrections need to be made to any returns of past 5 years in order to be able to answer YES to this question does it matter whether the returns are amended before or after relinquishing green card, as long as done before form 8854 is submitted? Instructions do not specify so would seem that just needs to be done before final return submitted.

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Robin D.

Vocational, Technical or Trade School

22,348 satisfied customers
Robin. You helped me with a question last year relating to

Hello Robin. You helped me with a question last year relating to our income tax return. I have another question for you.Background: My wife and I both sell real estate ( we are both 55) . We market ourselves as a Real Estate Team and both work for a national real estate brokerage firm. From the brokerage firm's perspective, all of our Sales activity are considered team activity. My wife is considered the lead of the team and all sales production for our team is credited to her. Therefore, all revenue for our team will be reported to her on a 1099 and nothing is reported to me.Based on your advice last year, my wife issues me a 1099MISC that splits the income so that 1/2 of the income is attributable to me. Therefore, we both have a Schedule C and report our own expenses, etc. as sole proprietors.Question: Our first year in the business was kind of slow but we have had a pretty good year for 2016. I am trying to think of ways to reduce the income tax liability for 2016.My question relates to establishing a retirement account that will allow us to reduce our tax liability. We currently have traditional IRAs and Roth IRAs but I am looking for something that might allow me to defer more income this year than those basic plans.We don't have any full time employees.I am considering opening a Solo 401(k) or a SEP IRA .Are these the type of accounts that I should be considering to defer income and reduce our tax liability this year?Do you have advice on which type I should set up and why?Do I set up accounts for each myself and my wife or just one account?What date do I have to have these accounts opened by? Is it 12/31/16 or by 4/15/17?Thanks a lot.Mike O

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Robin D.

Vocational, Technical or Trade School

22,348 satisfied customers
I am looking to purchase a small restaurant business that is

I am looking to purchase a small restaurant business that is a going concern in New South Wales via an asset purchase. The business employs 8 staff who will be offered employment. Before I make an offer I need to establish my business entity to purchase this restaurant. I will be running the business and all it's functions however the funds to purchase the restaurant will come from a family members line of credit/mortgage facility. This family member does not wish to participate in the business other than by providing the initial funds.What is the simplest most advantageous way to setup my business entity to reduce my family members tax liability and complexity of annual personal income returns? Should the family member grant a private loan to me personally or the business? Should the family member be included in the business entity?

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Barbara

Enrolled Agent, Paralegal

5,978 satisfied customers
My wife and I are considering retirement starting 2/2017 at

My wife and I are considering retirement starting 2/2017 at age 62. I live in Pa, 17331 zip code. The question is with a combined income from Social Security of 36928.00 and company funded private pensions of 39780.00 for a total of 76708.00 and possible addition from 401k of up to 26000.00 per year how much federal, state and local tax will we pay on a gross salary of 102708.00?

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Robin D.

Vocational, Technical or Trade School

22,348 satisfied customers
I am considering relocating to South Carolina. My wife and I

I am considering relocating to South Carolina. My wife and I are retired. We will be buying a home valued at about $350,000 in Horry county. We are leaving New York, Rockland County.I'm concerned about state income tax and property tax. I'm currently paying about $10,000 per year property taxes.Our income is from several sources;41,400 SSA (total)6,000 Minimum IRA withdrawal24,960 Workers Compensatiion5,436 Clorox pension36,816 VA disability114,612 totalWhat would be our property tax and state income tax liability for South Carolina and would there be a better eastern state to move to? (not Florida)

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Robin D.

Vocational, Technical or Trade School

22,348 satisfied customers
Only" does having my children on the title affect their

quot;Richard only" does having my children on the title affect their income tax level or credit score?

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Richard

Owner

Doctoral Degree

48,578 satisfied customers
If I receive of a gift or allowance from a friend, a

If I receive of a gift or allowance from a friend, a personal check for 37,000 Can I deposit this into my bank? Does the IRS immediately know about it, and do I have to pay a gift tax? This money is From a Native American and is tax free.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

19,678 satisfied customers
I have a new client who is a 70% partner in a privately

I have a new client who is a 70% partner in a privately owned manufacturing outlet in Bangladesh. My client is a US Citizen due to which I have advised him to file form 5471.When I prepare form 5471 is it true that I would take the line 5D number and report it on 1040 Other Income?Would I have my client pay taxes on 70% of his Income?Also for Depreciation for foreign assets would I calculate using ADS with Plant Equipment for 7 years and Real Property for 40 years?Thank you,Prashant

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Mark Taylor

Certified Public Accountant

Masters

2,612 satisfied customers
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