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Recent Reduce Taxable Income questions

I have recently purchased a business, an S-corp, and did a

I have recently purchased a business, an S-corp, and did a stock purchase. I am paying off the purchase of the business in payments. My question is- Can i withdraw these payments from the business, or is it better for me to add the payments to my salary, pay all the taxes on them (greatly increases my salary then) and then make the payment?

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Brian Michels

Partner

Bachelors of Business Administration

284 satisfied customers
I received a lump sum from a retirement fund from several

I received a lump sum from a retirement fund from several years ago. The amount was $28,329.35, of this I paid $5665.87 in Federal Taxes. Do I need to enter the full $28,329.35 as an income or can I subtract the taxes already paid in and enter the actual amount I received?JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: I don't think so.

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Lev

Retired

Bachelor's Degree Equivalent

25,422 satisfied customers
My wife wants to file her taxes and has education credits

My wife wants to file her taxes and has education credits she wants to clain as deductions. My corporate taxes will be needing an extension so she cannot file jointly with me right now. Can she proceed to file as single and claim these deductions?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No thanks.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,922 satisfied customers
I'm self-employed and perform work for cash...what is the

I'm self-employed and perform work for cash...what is the threshold for showing x amount of dollars in income without being taxedJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I want to show earnings of approximately $18-$20,000 for 2016...do I have to show proof and or will I be taxed?JA: Is there anything else the Accountant should be aware of?Customer: I own a home with an approximate value of $160,000 no mortgage and expended probably $20,000 into it this past year

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,132 satisfied customers
Second opinion] My 33 year old son lives with my husband and

Second opinion] My 33 year old son lives with my husband and I in 2016. He worked sporadically off the books. We paid most of his bills. He is on Medicaid. Can we claim him as a dependant on our tax return? We live in New Jersey.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No

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Lev

Retired

Bachelor's Degree Equivalent

25,422 satisfied customers
What are possible ways to reduce taxable income for half a

What are possible ways to reduce taxable income for half a million net income C-corporation?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,132 satisfied customers
Do I have to pay for this advice? I really only have one

Hello there. Do I have to pay for this advice? I really only have one question so I hope not. :-(JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I work full time at a non profit, but also do some independent contact work on the side. I read that paying into a retirement account will help me reduce the amount of taxes that I owe on my self-employment income. However, instead of opening up an individual 401k, I think it would be easier for me to enroll in the 403b retirement plan at my non profit organization. If I make contributions to the 403b will this still help me reduce the amount of taxes I will owe on my self-employment income? From what I understand 403b plans and 401k are technically the same thing.JA: Is there anything else the Accountant should be aware of?Customer: Right? No

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,922 satisfied customers
Which is better from a tax perspective....make a charitable

Which is better from a tax perspective....make a charitable contribution directly from MDA IRA account thus reducing taxable income or to take the MDA amount as taxable income but then make a tax deductible charitable contribution?

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Robin D.

Vocational, Technical or Trade School

25,324 satisfied customers
I live in California. My tax situation is relatively

I live in California. My tax situation is relatively straightforward. I'm trying to estimate my tax bill for 2016 assuming I earn ZERO between now and the end of the year and any expenses mentioned below are what I'll have incurred by 12/31/2016.SingleNo dependents$57K self employment income$3K long term capital loss carryover$0 HSA contributions$0 IRA or other retirement contributions$12 Schedule A deductions$3K state tax REFUND...also, if you could please estimate my CA tax liability that would be great also.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,922 satisfied customers
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