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Recent tax questions
NYS IS BILLING AN S CORP CLIENT OF MINE FOR
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
Sr Financial & Tax Consultant
With an installment sale to daughter (i.e., "related party")
With an installment sale to daughter (i.e., "related party") of depreciable rental real estate property, what are the facts and circumstances that can show IRS that tax avoidance is not the principal purpose of the sale? We want to report the sale using the installment method. What documentation is needed? Is there a form? Is a statement used instead of a form?
Vocational, Technical or Trade School
I am actually giving a talk tomorrow
Hi, I am actually giving a talk tomorrow for artists preparing taxes and I want to double check a couple of things. I think I have this correct, but the consequences could be bad if I don't. So, here goes: My understanding is that visual artists (along with writers and photographers) are not subject to the to uniform capitalization rules, so they are allowed to deduct supplies like paint and canvas in the year they are purchased, not as they are sold. Is that correct? A second question is whether an artist who donates he work can take the deduction (for materials alone, of course) on her Schedule C or she has to take the deduction on Schedule A. Thanks for your help.
Working on a 1041 . Question:The will left the
Working on a 1041 for 2015. Question:The will left the residence to the son. The house had an outstanding mortgage which was paid off with 2015 income, per the advice of legal counsel. Should that amount pass through on a K1 as a current distribution? If so, will that be taxable income for the son?
JD, MBA, CFP, CRPS
In order to be recognized, income must be
In order for income to be recognized, income must be realized first. Realization of income takes place when there is a transaction with a third party. I thought that for income to be realized the transaction had to be between two parties. Why does it have to be a third party? and who is the third party?
I have 3 LLC's and want to double check once more that it makes
I have 3 LLC's and want to double check once more that it makes sense to change them to 3 S Corps so that I can effectively maximize the FEIE exclusion.Right now with the LLCs, because of the large expenses on schedule C, I've benefited in 2015 from about only $9k of the FEIE.I would pay myself a salary from each company and personally report the W2 income and the FEIE.Can you confirm my numbers?Net income of 3 S corps combined: $150,000S Corp pays 7.65% $7,650S Corp witholds 7.65% employee portion $7,650Distributions K1 $34,700On my personal 1040 return:W2 income: $100kFEIE on 1040 of employee/owner -$100,000Taxable amount on 1040 of employee/owner $34,700Taxes paid by employee/owner @ 30% $10,410Is this right? Anything I've missed or needs to be added? It seems that the S Corp is a clear winner over the LLC in terms of net tax savings.Thanks!
Sr Financial & Tax Consultant
I do some independent contract work throughout the year asideView more tax questions
I do some independent contract work throughout the year aside from my full time job. The person I do the contract work for is not going to give me a 1099. Which leaves me to figure out how to handle the money...I understand that one solution is to report it as income on my tax return and pay taxes on it... But could I ask him to to gift the money to my son instead? and would that avoid any taxes? The amount would be $8,000 on 2 separate occasions in the year.ThanksS
Bachelor's Degree Equivalent