Capital Gains and Losses

Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP

Ask an Expert,
Get an Answer ASAP!

Capital Gains and Losses
This answer was rated:

I recently moved out of the country but a us citizen. i have

small side activities on the...
i recently moved out of the country but a us citizen. i have small side activities on the side, i am not selling anything but things like website banner ad revenue, or book royalty. Question 1) when doing taxes, on schedule c if i write my foreign address what happens? will this considered as a foreign sole proprietorship now? all this income is from US sources and going to my US bank accounts. if it becomes foreign then i will need to do all paperwork for a foreign firm? 2) if i write a US address there, for example a mailbox i purchased at UPS. can I do this? again all income is from US sources and going to my US bank accounts. and I think about a no tax state like FL or WY or TX . can i do like this? if so, until i start selling something i dont do any paperwork, but when i start i register for tax, as sole proprietor, although i will have done no paperwork before? note: i will use my own name and last name
Show More
Show Less
Ask Your Own Capital Gains and Losses Question
Answered in 1 hour by:
10/15/2017
emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 3,233
Experience: Master Tax Adviser and Enrolled Agent
Verified

Hi. My name is ***** ***** I will be happy to help you.

A solo proprietorship is not a separate entity for tax purposes. It means that you are the business and the business is you. A foreign address does not make the business foreign, regardless where you are. You need to use an address where you can receive correspondence in case the IRS will mail you something.

It is possible that the income will be taxes in US and in the country you are moving. A US company can have foreign income that is taxed in US as well as foreign companies can have US income that is also taxed in US. As US citizen you have to report your worldwide income on your US tax return and you will have to check with the tax authorities in the country you are moving to what their tax rules are.

There's no special registration requirements for sole proprietorships. You will use your social security number for US reporting.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 1 month ago
for question 1, if i write my main foreign address on 1040 and the same foreign address on schedule C, that would not be considered as foreign company and the income i write on schedule C would not be considered as foreign, and this situation would be exactly the same as if i was in the US and used US address? In other words nothing extra foreign paperwork to be done because of this? Again all money goes to my US bank account.And question 2, again i write my main foreign address to 1040, but this time on schedule C, i write a US address. Id this possible ? Or the address on schedule c for a sole proprietor MUST be same as where he lives or what he writes on 1040?Yes i know i must write my ssn and must show all income, no matter where i live, i only want to know which address to write for what makes most sense, or, question 1 or 2 doesn't matter and all IRS cares is an address that i can receive mail, as long as i show all my income?

Unless your business has a different business location than your home, you do not use any address on Schedule C. The address on your tax return does not determine if your business is US based or foreign. The address is irrelevant. It is only used for contact purposes. A solo proprietorships is not a separate business entity. Your business is where you. It is like your dependent. It is there but everything is reported under your social security number.

Question #2, yes it is possible but why would you do that? If you have a store with a separate address, than you would write the store location. If you are running your business from home, than your business address is your home address.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 1 month ago
I asked 2, just because, i didn't know if i write my foreign adress on schedule c , then a year later irs will contact me and say " hey your address on schedule c is foreign, it means you had a foreign company, and where is your paperwork for foreign business?"....So then, to question 1, if you are saying that writing my foreign address does not cause such a thing, and everything would be as if i was in the US, then i do not need to use a US address of course.So ok then, whether i use a US or foreign address, it doesn't matter for my situation, and everything would be same like i was in the US right ?

Again, the address does not determine if the business is foreign or US base. Any business reported on Schedule C is not a separate entity for tax purposes. The IRS will never use the address to determine if the business was foreign or local, not for a schedule C business. Anything reported on Schedule C is a disregarded entity, meaning that you and the business is the same person. If your business is home based you cannot separate you and your business.

What paperwork for foreign business are you talking about? You do not own a Scorp or corporation that requires a separate tax filing. A sole proprietor type of business does not need to be separately reported as a business.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 1 month ago
you answered my question 1 already. i only wanted to confirm that foreign address will not create separate paperwork, just because it is foreign that is all. i am not talking about a special company here. i know sole proprietorship is same as me. my business consists of running a few websites and earning google or banner ad money, or receiving book royalties from amazon, or remote consulting fees that doesnt require any special license to all US based clients, and all goes to US bank account so everything is in the US.so then the only case i would still write US address on schedule C, only if it was a US based LLC that i fully owned then right? i mean, i can not be in a foreign country, and write a US based address on schedule C for a sole proprietorship then right?
Customer reply replied 1 month ago
ohh and for question 1, i realized, after you answer, that i was making wrong sentence, sorry about that. i didnt mean to say foreign company. i meant to say paperwork for foreign income. so if i write my foreign address as sole proprietorship on schedule c, is this going to generate paperwork for foreign income? again all money is coming from US sources and deposited in my US bank account

Unless your company has a separate physical address like an office or store, you do not write any address on Schedule C. Just leave it blank. If your business has an office outside your home that your regularly use to conduct business than list that address on Schedule C and your home address on 1040.

Ask Your Own Capital Gains and Losses Question
Customer reply replied 1 month ago
okay and finally, even with my foreign address, the income on schedule C, is still not considered foreign income, because as i said, that money only comes from US sources.. correct? i will rate you after this and thanks for the help....

For the IRS purposes income is income. For most part it does not really matter where it is earned, inside or outside the US, the tax rate is the same. If you are US citizen or resident you do not report foreign income and US base income separately. If you run your business from your living room Canada than the income is earned in your living in Canada It is not where your clients are, it is where you are while earning it. If you reside in foreign country for an extended period of time you may claim foreign income exclusion. You may have US clients but if you earn it while residing in Turkey than the income qualifies for the exclusion. Again, the income does not necessarily need to originate in foreign country to qualify for the exclusion. You can work for an US company, be paid with US dollars while working on a project in Japan and the income will qualify for foreign earned income exclusion.

But again, you will need to check with the local tax authorities about their filing requirements. US tax laws end by the US borders. Just because the income is reported on your US tax return it does not mean that you will not be taxable in the country you reside.

emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 3,233
Experience: Master Tax Adviser and Enrolled Agent
Verified
emc011075 and 87 other Capital Gains and Losses Specialists are ready to help you
Ask your own question now
Ask emc011075 Your Own Question
emc011075
emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 3,233
3,233 Satisfied Customers
Experience: Master Tax Adviser and Enrolled Agent

emc011075 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

R. Klein, EA

R. Klein, EA

Enrolled Agent

263 satisfied customers

Over 20 Years experience in resolving tough tax cases

jgordosea

jgordosea

Enrolled Agent

173 satisfied customers

As an Enrolled Agent you can be ensured of my competence in income tax matters.

PhillipB EA

PhillipB EA

Accountant

130 satisfied customers

Enrolled Agent with 8 years experience in tax return preparation, representation, and taxpayer consultation

Arthur Rubin

Arthur Rubin

Tax Preparer

72 satisfied customers

Over 22 years of tax preparation experience.

Bill-the-CPA

Bill-the-CPA

Certified Public Accountant (CPA)

55 satisfied customers

Seasoned professional with over 15 years in public accounting. Income, sales and property tax. Also accounting/tax software.

FredStevens

FredStevens

Accountant

37 satisfied customers

Experienced in business, accounting and tax planning for individuals, small/medium sized businesses and non-profit organizations

Shane-CPA

Shane-CPA

CPA, PFS, CGMA

11 satisfied customers

Shane Northrop is a Certified Public Accountant, Personal Financial Specialist and a Chartered Global Management Accountant

< Previous | Next >

Related Capital Gains and Losses Questions
I have a question in regards to term capital gains tax on
I have a question in regards ***** ***** term capital gains tax on real estate. Can anyone answer that kind of question here?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
I want to sell the house I inherited in 2010. It is worth
I want to sell the house I inherited in 2010. It is worth 1.2 million. I know I have to pay capital gains taxes over $500,000. My husband and I combined income was 79K last year, just 3 grand over the… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Eva, regarding the $2M in capital gains (assuming it's cap
Eva, regarding the $2M in capital gains (assuming it's cap gains). Will all $2M be subject to the 23.5%? I thought that since my my taxable income without the capital gains is so low that this would s… read more
emc011075
emc011075
Master Tax Adviser
3,233 satisfied customers
In 2016, my AGI was $85k, almost entirely from the salary
In 2016, my AGI was $85k, almost entirely from the salary from my job. My taxable income was $25k. —In 2017, I expect my employment income to remain the same, however, I will receive $2,000,000 as my … read more
emc011075
emc011075
Master Tax Adviser
3,233 satisfied customers
I have an LLC in NJ which I will close before the end of
For Lane: I have an LLC in NJ which I will close before the end of this year. I am the only owner. I am thinking about closing it now. My things were just online, very simple, such as google ad revenu… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I purchased a home about 40 years ago and lived in it for
I purchased a home about 40 years ago and lived in it for about 30 years. We could not sell it ten years ago so we rented it out. I'm ready to sell it but am confused about the Capital Gains tax. I'm … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
His wife are in the 33% bracket but only just. They wish to
Charles and his wife are in the 33% bracket but only just. They wish to move to a lower bracket for both ordinary income and capital gains but only if doing so would increase aftertax income. Thus the… read more
emc011075
emc011075
Master Tax Adviser
3,233 satisfied customers
I live in San Antonio TX. I was added to the Deed of an
I live in San Antonio TX. I was added to the Deed of an elderly friends home in order to renovate and sell. My wife and I did just that in 2 months. We did not buy the house and spent our own money to… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
My husband and I are about to and accept an insurance
My husband and I are about to and accept an insurance settlement for $100,000. It's from an auto policy of a driver that made a left hand turn and killed our son. What are the tax implications for thi… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Second opinion] I have moved from Oregon to California
Second opinion] I have moved from Oregon to California during this tax year. How will my capital gains be taxed at the State level? Is it just determined by which State where I'm claiming residency at… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
I have moved from Oregon to California during this tax year.
I have moved from Oregon to California during this tax year. How will my capital gains be taxed at the state level?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
I have a capital gains question relative to sale of a
Good afternoon: I have a capital gains question relative to sale of a mixed-use house (rental/residence) and was hoping you could provide some guidance. Please be prepared for follow-up questions and … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If capital gains put me into the top tax bracket will I pay
If capital gains put me into the top tax bracket will I pay the 20% rate on those gains or is the capital gain rate calculated only on non-capital gain income?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Taxes Specific to Stock Trading called OPTIONS Stock
Taxes Specific to Stock Trading called OPTIONS Stock trading. I am late on 2016 Taxes. I had options trading LESSONS with an Options trading mentor, plus classes and hotel etc associated with my trade… read more
emc011075
emc011075
Master Tax Adviser
3,233 satisfied customers
I am selling my property for $400,000 no mortgage and
I am selling my property for $400,000 no mortgage and $165,000 basis. I want to use 1031 exchange to purchase $750,000 property that will be financed. How much money can I finance without having to pa… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
We sold 1.8 acres with our horse barn on the property. We
we sold 1.8 acres with our horse barn on the property. We had owned the property for 20 years. We had quite an investment in the barn. The new owner had it appraised so he could have it insured, total… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
This year our son assumed an Alaska state loan for a gillnet
Here is my question. This year our son assumed an Alaska state loan for a gillnet permit we had purchased years ago but never used. The outstanding balance he assumedon January 1, 2017 was $25,060. He… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
This questions is for a Canadian Accountant or Tax attorney
This questions is for a Canadian Accountant or Tax attorney - I am a Canadian Citizen but reside in the U.S. and file my taxes in the U.S. as a resident alien. I have no Canadian income and have not l… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x