With my Friday hurdle for the week. I have a C Corp client
Hello Stephen: It's me again with my Friday hurdle for the week. I have a C Corp client with a deferred tax liability on the books that represents book/tax net book value differences. They had a loss in 2016, therefore, no federal income tax expense. I now need to lower their deferred tax liability. My normal entry would be to debit the def tax liability and credit Federal income tax expense. However, FIT is already zero. How do I record the change in the def tax liability?
Sr Financial & Tax Consultant
My husband and I would like to buy a little fixed wing
My husband and I would like to buy a little fixed wing airplane for our LLC. We develop apps and software specifically for pilots and aircraft operators.Our clients are spread all over the United States and most of them are located at an airport or small airfield and we could visit them much easier in a plane than with a car.We could also fly to airshows, aircraft exhibitions and trade shows since all these events offer fly-ins for aircraft owners. Owning and flying our own aircraft would also improve our image in the pilot community (“We use our own products and we know what we are talking about”). My husband holds a US private pilot license for fixed wing since 1999. He also has a private and commercial helicopter pilot license since 2010.My tax question: Would the purchase an aircraft bring us any tax benefits? Let's assume we buy the plane for $50,000. Would the plane become an asset which we can deduct for depreciation over several years? What about the running costs such as: maintenance, repairs, hangar rent, landing fees, aircraft fuel?What if we go on a promotion tour with this plane and document about this trip in a web blog to generate more traffic on our website? Would the costs for the tour be “Promotional Costs” similar as having a booth on a trade show?Thank you very much in advance!
JD, MBA, CFP, CRPS
I have just set up an LLC in Virginia (April 2012) and need
I have just set up an LLC in Virginia (April 2012) and need to complete an election classification form. Are the benefits of selecting corporation enough to outweigh the disadvantages? I am concerned because apparently I may have some requirement to file something for the end of the quarter. I am just in the process of setting up the business and haven't generated any income, but want to make sure I don't get in trouble with the IRS.
Bachelor's Degree Equivalent
If I am paying for my granddaughers school tuition but do
If I am paying for my granddaugher's school tuition but do not claim her as a dependent, can I claim the tuition as a deduction? She and her parents live with us and due to a her dad's kidney transplant and her mother's diabetes have hugh medical bills so they do not pay rent p does this affect our reporting status? Thanks for any help you can give.
I have currency related losses in 2008 on a foreign fixed deferred
I have currency related losses in 2008 on a foreign fixed deferred annuity that are greater than the interest I earned in 2008 on the annuity. I understand that both interest and realized and unrealized currency gains from the annuity are taxable as ordinary income in the year incurred. If I have ordinary income losses from the annuity in 2008, am I allowed to offset those losses against other income in some way (e.g. against other 2008 interest income, other 2008 ordinary income, or carried forward to offset against possible future currency gains from the annuity?
Senior HR Consultant and Business Devlpm
Wendy/Annie, any tax preparer, please help. Tax Credits. 1)
Wendy/Annie, any tax preparer, please help. Tax Credits.
1) How does the earned income credit produce a “negative” income tax?
2) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2007, Diane's wages are $15,100 and she receives dividend income of #300. Calculate Diane's earned income credit using the EIC table in Appendix B.
3) Calculate the amount of the child and dependent care credit allowed for 2007 in each of the following cases, assuming the taxpayers had no income other than the stated amounts.
a) William and Carla file a joint tax return. Carla earned $26,000 during the year, while William attended law school full-time for 9 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl. $_____________________
b. Raymond and Michele file a joint tax return. Raymond earned $#2,500 during the year, while Michele earned $9,000 for the year from a part-time job. They paid $7,000 for the care of their two children under age 13. $___________________
c. Beth is a single taxpayer who has two dependent children under age 5. Beth earned $23,500 in wages during the year and paid $6,700 for the care of her children.
4) Martha has a 3-year-old child and pays $10,000 a year in day care costs. Her salary is $45,000. How much is her child and dependent care credit?
How much federal and state tax should be due if I earn ...
How much federal and state tax should be due if I earn 20,000.00 per year, or 22,000.00 per year...and how much earned income credit will be allowed if I file single or head of household with my son as an exemption?
Bachelor's Degree Equivalent
L have a question regarding a rental property i want to
l have a question regarding a rental property i want to sellJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I understand that i need to do a 1031 exchange and purchase another investment property to avoid capital gains tax, but I want to know if the buyer can pay off the loans directly without going through an escrow?JA: Is there anything else important you think the Accountant should know?Customer: The reason is the buyer needs time to pay for the complete sales price, and has offered to pay off the loans that i have on the property in order for me to allow the buyer more time to come up with the rest of the funds. The rest of the money would go to an escrow in a 1031 exchange so i can purchase another rental
Tax advisor and Enrolled Agent