How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask ALEX O Your Own Question
ALEX O
ALEX O,
Category: Tax
Satisfied Customers: 146
Experience:  Founding Partner at O&G Tax and Accounting Services, LLC
107172832
Type Your Tax Question Here...
ALEX O is online now
A new question is answered every 9 seconds

I have a question regarding SC LLC partnership,taxes. Not

This answer was rated:

I have a question regarding SC LLC partnership,taxes.
JA: Have you talked to a financial professional about this?
Customer: not yet. I handle our LLC's finances, but have come up with one tax question I cannot answer. Regarding the fact that I live out of state and do my own withholding
JA: Anything else you want the Accountant to know before I connect you?
Customer: they want me to fill out a I-290 before they will complete my SC Taxes, and which makes no sense since the company does not do my withholding

Hello , my name is Alex, a licensed CPA. Happy to help you get this resolved.

 

South Carolina income taxable to nonresident partners is subject to withholding by the partnership at a 5% rate. Nonresident partners providing affidavits of their intention to file or who are included in a composite return filed by the partnership on behalf of all of its nonresident partners are exempt from the withholding requirement.

......

What the above statement means is that SC provides 3 options in terms of withholding for Non-Resident Partners

….

1. Partnership can decide to withhold 5% of your allocable share of income – this is because you’re not considered to be a resident of SC, but since the income you’re receiving is SC sourced income, they have the right to tax or withhold taxes.

…….

2. You can do away with (1) by providing an affidavit or some kind of letter to the partnership that you will be filing a SC Non-Resident personal tax return at the end of the year.

……

3. The 3rd option is to have the partnership file a composite return, in this case the partnership, will file a return on behalf of all of its nonresident members to report and remits the SC income tax of the nonresident members. This option eliminates (1) & (2)

 

Customer: replied 7 days ago.
The i-290 has to do withholding specific to our llc's sale of real estate (what we do, flip houses) and it is written as though there should have been withholding for me in the sales transaction which there isn't, because I do my own.

Hello , thanks for the quick response, when you do your withholding , which state do you pay your withholding to ?

Customer: replied 7 days ago.
For the LLC it is paid to SC.
Customer: replied 7 days ago.
And they have never asked me for this other years

Is this the same llc that is engaged in the flipping ? , and who is requesting for the withholding , the title company ?

Customer: replied 7 days ago.
Same Llc always based on SC (I'm in PA, partner there). And it's the SCDOR asking
Customer: replied 7 days ago.
Would it be better if I just called them? I was just hoping to avoid that.

Yes , please call them . I believe there is a confusion somewhere. If you are already doing a withholding for the same LLC , no need to do another or additional withholding.

Customer: replied 7 days ago.
Thanks

Thank you for allowing me to help you with your question . Your 100% satisfaction is my goal. To continue our conversation, use the reply box below. If you are fully satisfied, please rate my service with 5 stars

ALEX O and 4 other Tax Specialists are ready to help you