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Recent Tax Avoidance questions

What do you mean by effectively connected income you

What do you mean by effectively connected income you mentioned in my first question "Correct - either as dividends or as effectively connected income"?Does effectively connected income you talking about fall under description below from IRS website and such exempt from US income tax?"Income that residents of Japan receive for personal services as independent contractors or self-employed individuals is subject to the provisions of Article 7 (business profits) of the treaty. Under that provision, business profits are exempt from U.S. income tax unless the individual has a permanent establishment in the United States."

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Lev

Retired

Bachelor's Degree Equivalent

25,386 satisfied customers
C-corporation 100% owned by foreigner pays non W2

C-corporation 100% owned by foreigner pays non W2 compensation. Besides the amount being reported on 1120 as deductible expense, are there any requirements to withhold taxes from the amount paid to him or any additional forms to be filed?

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Lev

Retired

Bachelor's Degree Equivalent

25,386 satisfied customers
Ultimate tax responsibility of a corporation. We are

Ultimate tax responsibility of a corporation.We are planning to create a new company (a FL C-corporation), for our employees. Every employee would have about 5% of shares of this company. I plan to be the Director and the President.The question is what if later the company is audited and found to be liable for significant tax and penalties, which the company itself would not be able to pay, as most profits would be regularly distributed to shareholders. In such case would I, as the management, would be responsible or will the IRS go after each shareholder?

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Lev

Retired

Bachelor's Degree Equivalent

25,386 satisfied customers
I have recently been sent a Inheritance Tax Return analysis

Dear Sir or Madam:I have recently been sent a Inheritance Tax Return analysis from a NJ Tax attorney working on a draft of my Uncle's Estate. I reside outside of New Jersey and listed as a Non-Resident Decedent. My uncle left two small properties, one has a pending signed contract AS_IS ( with liens, mortgage, and back taxes owed) and another property ( liens, mortgage, back taxes owed) to be sold as is with a potential buyer ready to purchase. The amount owed to the state is outrageous especially on two inherited small properties at a rate of 15%. (*The numbers range from tax of $16,650,.$14,250, and a tax of $11,669*)The NJ Attorney says these are the options/ methods available:1) Simplified Tax Computation2)Ratio Tax Using Net Estate3)Ratio Tax Using Gross EstateQuestion:1) Are Non-Resident Inheritance Tax avoidable?2) What questions should I be asking this attorney before committing to any of the above 3 methods/options?3)Do you know of any other other approaches -that come to mind- that can be calculated for this Estate to lessen the cost?(Note, this attorney deals with "high-profile individuals" ...we don't meet this criteria, another story)Thanks for your reply.Al

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,012 satisfied customers
We'll register a company(LLC) in Delaware soon. You can get

Hello,We'll register a company(LLC) in Delaware soon. You can get all the details about the busines we will do.1. We are Non Resident Alien.2. Our company will have 2 members.3. We will not do any business in Delaware.4. We will not be in US soil for this business.5. We will not employ anyone in US at least 1 year.6. We will do business with some companies(independent agents) in Colorado.7. We will use Amazon's Fullfilment Center in Delaware.Here are the questions;1. What is the taxation rates for Income, State and Federal taxes?2. Are there any other taxes?3 Should we consider other type of companies besides LLC?Last question;If foreign company registers a Single Member LLC, will it have same advantages like non-resident-alien and avoid fed, state and income tax?Thanks alot.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,546 satisfied customers
I loaned my parents $50,000 in June, 2013 and they are ready

I loaned my parents $50,000 in June, 2013 and they are ready to pay back the full amount now. Do I need to charge them interest? I prefer to make this an interest-free loan unless I'm required to charge them interest by the IRS.

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39,598 satisfied customers
I'm currently unemployed, I work through June 13th. And

I'm currently unemployed, I work through June 13th. And trI'd insurance sales for 3 months as a 1099 employee. Barely made $1500 over 3 months. I sold my publix stock in the profit sharing plan which was about $40,000. All the money went to paying off credit cards, loans and debts, and catching up my bills I was behind on. I have another $45,000 in my 401k and I really need the money as I have no income now. I just purchased this townhome the end of last december and homesteaded it this year, as well as enrolling in an online University. Is there any way to avoid insane amounts of taxes owed for this year if I pull my 401k as well?

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Robin D.

Vocational, Technical or Trade School

24,966 satisfied customers
If a foreign corporation transfers property to their

If a foreign corporation transfers property to their personal name is ***** ***** penalty for tax avoidance at the corporate level

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

21,546 satisfied customers
NYS IS BILLING AN S CORP CLIENT OF MINE TAX LIABILITY. HE

FOR STEVE, NYS IS BILLING AN S CORP CLIENT OF MINE FOR PAYROLL TAX LIABILITY. HE DOES NOT HAVE ANY EMPLOYESS AND HE RECEIVES A K-1 FOR HIMSELF. THE NYS TAX AGENT HELPING US SAYS THAT IF HE WERE A DBA OR SCHEDULE C LLC HE WOULDNT NEED TO FILE QUARTERLY PAYROLL REPORTS, BUT BECAUSE HE IS AN S-CORP. HE MUST. Can you please clarify this for me. I did not think he was supposed to file payroll reports even if it was 0.00

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,012 satisfied customers
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