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Recent Tax Avoidance questions

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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38,492 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

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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

19,022 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

9,288 satisfied customers
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?

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Robin D.

Vocational, Technical or Trade School

21,824 satisfied customers
I have 3 LLC's and want to double check once more that it

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!

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,288 satisfied customers
I do some independent contract work throughout the year

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

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
Lev, We are a small tour operator in Florida (C-corp) which

Hi Lev,We are a small tour operator in Florida (C-corp) which you previously answered a question in January regarding completing the tax return (what to enter on line 26).My new question: We also control an LLC for rental property holding (not owned by the LLC but controlled by the same humans as control the C-corp ... except that two-of-the-three humans have used either another LLC (partnership ...one partner of this LLC is not related to C-corp at all) and an S-corp (treated as disregarded entity) to be members of the LLC with rental properties). So, it is and yet isn't same ownership.The rental property LLC will soon be making a property purchase and would like to obtain a loan from the C-corp for the down payment. Our current thinking is to perform a dividend distribution to each shareholder of the C-corp and then each puts those funds (less taxes) into the LLC and also additional cash out of pocket (the distributions would not be enough to meet the $125k down pmt).My other thought is to have the C-corp make a loan to the LLC. While I know that part is legal as long as it is a genuine loan but my curiosity is if the C-corp can make a so called "no-interest-no-payments" loan if repaid in full by the LLC to the C-corp within 2 years?

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
I have a question concerning capital gains on the sale of a

I have a question concerning capital gains on the sale of a principal residence in the presence of separation and divorce. My wife and will be separating next year. We almost separated two years ago, negotiated a "post-nuptial agreement" with lawyers and divided our finances and assets, and tried to repair the marriage. However, we have found this has failed and will formally separate late next spring. (The reason for the delay is not relevant to my tax question.The post-nuptial agreement provides that once my wife moves out she will transfer title of the residence to me. We also agreed to file joint tax returns as long as we are legally able to do so. We have owned the house for so long that there will likely a capital gain on sale of $550,000 to $600,000.From my reading on the capital gain exemptions for sales of principal residences I will be able to exempt $500,000 of the gain on sale as long as we are able to file joint tax returns. However, the year of any divorce will be the last year we can file a joint return. Does this mean if and when there is a divorce I will need to sell the house during the same year of the divorce in order to take advantage of the full $500,000 exemption? Are there other legitimate tax avoidance strategies to deal with the gain in this situation?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,666 satisfied customers
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