Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

My private investigations business (S-Corp), here in NY,

Customer Question
Hi, my private investigations...

Hi, my private investigations business (S-Corp), here in NY, went through a lawsuit (contractual dispute with a former joint venture partner) where there was a large payout in February 2017. The significant amount of earnings took place in 2016. My accountant says I am now liable for paying the taxes on those earnings, earnings which were ultimately awarded to my former jv partner. The business is no longer in operation due to this lawsuit as it essentially wiped me out, placed me heavily in debt, and we lost our large contract (which we disputed over). I'm aware I may carry the losses forward for years. It seems wrong that I have to pay taxes on $360k+ earnings that were handed over to somebody else. My accountant doesn't seem to know how to facilitate this. A local tax attorney told me he knew precisely what needs to get done but he askes a $6000 retainer. I have gone broke due to this lawsuit. Any advise is immensely appreciated!

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

The settlement funds as a result of the litigation between Validus/Campa and Informa/Santiago were paid directly to the firm of Magnozzi & Kye as attorneys for the plaintiffs/claimants. Therefore, your accountant should be aware that a 1099 would issue to the firm and the amount paid would be represented as non-compensatory payments.
As for your accountant requesting to issue a “K-1” to Validus/CAmpa, that does not seem correct. As you know based upon the positions taken in the litigation, neither of the claimants/plaintiffs were owners of Informa, Inc. Moreover, a 1099 need not be issued to them as well because no money was ever paid to them during the course of the joint venture.

Submitted: 4 months ago.Category: Finance
Show More
Show Less
Ask Your Own Finance Question
Customer reply replied 4 months ago
The following is response from the plaintiff/claimant attorney when I requested my former jv partner's social security # or EIN: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: The settlement funds as a result of the litigation between Validus/Campa and Informa/Santiago were paid directly to the firm of Magnozzi & Kye as attorneys for the plaintiffs/claimants. Therefore, your accountant should be aware that a 1099 would issue to the firm and the amount paid would be represented as non-compensatory payments.
As for your accountant requesting to issue a “K-1” to Validus/CAmpa, that does not seem correct. As you know based upon the positions taken in the litigation, neither of the claimants/plaintiffs were owners of Informa, Inc. Moreover, a 1099 need not be issued to them as well because no money was ever paid to them during the course of the joint venture.
Answered in 46 minutes by:
12/1/2017
Financial Professional: PDtax, CPA, MBA replied 4 months ago
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 5,011
Experience: Tax professional and business consultant for 35 years.
Verified

Hi from Just Answer. I'mCustomer and can assist. And for far less than the retainer you suggested.

Please see my offer to assist via phone conference, to keep matters private.

Ask Your Own Finance Question
Financial Professional: PDtax, CPA, MBA replied 4 months ago

premium service window isn't opening on my end yet. I'll post my offer shortly, and I'll let site management know.

Customer/p>
Ask Your Own Finance Question
Customer reply replied 4 months ago
I’m looking for some insight at this point in time. If it seems like something you may facilitate, fine, but simply replying that you know what to do gets me nowhere and feel like I was just fleeced. My number is(646) 208-2573. I am seeking insight. Please.
Financial Professional: PDtax, CPA, MBA replied 4 months ago

See my phone call offer.

Ask Your Own Finance Question
Customer reply replied 4 months ago
I am not opposed to paying additional $ for additional information. I just paid $35 and received zero information or insight. Please provide some insight. If it seems you know what you’re talking about, fine, then I would move forward with paying for additional advise, etc.
Financial Professional: PDtax, CPA, MBA replied 4 months ago

There are issues yet to be disclosed. I would ask what the settlement was for, if you were both owners during the time, your payment history, tax return history (did the other party ever get k-1, either of you get w-2) and more. The answers will drive my assistance.

Ask Your Own Finance Question
Was this answer helpful?
Ask PDtax Your Own Question
PDtax
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 5,011
5,011 Satisfied Customers
Experience: Tax professional and business consultant for 35 years.

PDtax 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:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Bryan, in continuation to my previous questions about LLC, I
Hello Bryan, in continuation to my previous questions about LLC, I would like to figure out if it is really necessary to do an LLC for a rental home. I believe the liability is less with an LLC. For e… read more
Bryan Mullis
Bryan Mullis
Managing Partner
Masters of Accountancy
27 satisfied customers
California C corporation went out of business in 2015 but
California C corporation went out of business in 2015 but neglected to dissolve with Secretary of State. As a result, minimum corporation tax is due California for 2016 and 2017. Non-stockholder, form… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I recently started my own LLC (single-member) and I have a
I recently started my own LLC (single-member) and I have a consulting business with no real write-off's. I was going to lease a new vehicle in hopes to create a write-off, and was wondering if I shoul… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My question is I am 150000 in debt can you tell me what
my question is I am 150000 in debt can you tell me what would be the best way to get out of my hardship? … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
828 satisfied customers
If I pay for a condo which I intend to rent with funds from
If I pay for a condo which I intend to rent with funds from home equity loan, is the interest on the home equity loan deductible as expense on Schedule E? … read more
abci168
abci168
Principal
27 satisfied customers
I am in the process of shutting down my company and filing
I am in the process of shutting down my company and filing for corporate bankruptcy. It will take a few months to shut down. Can I pay myself $10,000 throw the process or once I file will I have to re… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have been advised by financial experts to make a Town home
Hello I have been advised by financial experts to make a Town home rental property as an LLC so their is safety in terms of liability involved while renting the house out. The rent will be $3000. Howe… read more
Bryan Mullis
Bryan Mullis
Managing Partner
Masters of Accountancy
27 satisfied customers
I pay myself from my company primarily through S-Corporation
I pay myself from my company primarily through S-Corporation payments. I record the payments on my tax returns. In the past sometimes I pay myself through Quicken and I deduct the taxes. I pay off all… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Lane. Still following up on the SS exemption question—I a
Hi Lane. Still following up on the SS exemption question—I a 501(c)3 church automatically exempt from SS withholding for it's employees or does each individual employee need to opt in or out? Is there… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am a member of a family irrevocable trust originated by my
I am a member of a family irrevocable trust originated by my parents. They are both deceased and left oldest son as trustee. There are total of 8 children who were original beneficiaries.My question i… read more
Bryan Mullis
Bryan Mullis
Managing Partner
Masters of Accountancy
27 satisfied customers
We are Canadians living in US w/perm residence as spouse was
We are Canadians living in US w/perm residence as spouse was transferred to US for work ...after working for company in Cayman Islands for 8 years. We have funds in Pension Plan in Cayman and have rec… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I NEED HELP IN GETTING A PENSION LOAN CAN YOU HELP ME PLEASE
I NEED HELP IN GETTING A PENSION LOAN CAN YOU HELP ME PLEASE ?? … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
In continuation to my previous question, what if there are 2
Hello, in continuation to my previous question, what if there are 2 members within a family under the LLC, such as husband/wife or father/son. can the LLC be included in the tax returns of both partne… read more
Bryan Mullis
Bryan Mullis
Managing Partner
Masters of Accountancy
27 satisfied customers
My tax preparer who had done my taxes for nearly ten years
my tax preparer who had done my taxes for nearly ten years has made an error which the its is charging me for. I have not yet approached the person. Are they liable for this error or even if I have be… read more
Carter McBride
Carter McBride
LLM
967 satisfied customers
What are the consequences of retiring at age 60 or 61 after
Second opinion] What are the consequences of retiring at age 60 or 61 after working at the same job continuously for 11 years? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Not duplicate -- I need to book the following scenario in
Not duplicate -- Hello, I need to book the following scenario in Quickbooks: Customer Invoiced for $1,000. They paid us $1,000 using pay pal but we only received $970.70 after fees. How do I apply thi… read more
Marcia Mitrano
Marcia Mitrano
MBA
62 satisfied customers
We are a LLC based in DE, owned by two non-resident aliens.
We are a LLC based in DE, owned by two non-resident aliens. We sell services (no physical product) to US and International customers. As LLC, we tax our US-based income, not non-US income. (We then ta… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I am in the process of saving plan for first home purchase
Hi I am in the process of saving plan for first home purchase with a known company.They have advised that if I can prove that I demonstrate some saving in 3 months time, they will provide a pre-loan a… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 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