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Recent Corporate Tax questions

Should driveway and sidewalk paving be capitalized? during

Should driveway and sidewalk paving be capitalized?JA: The expert will know how to help. Please tell me more, so we can help you best.Customer: during fy 2016 the driveway and sidewalk was paved with concrete with cost of $8,000.00 should these be capitalized or expensed.JA: Is there anything else important you think the expert should know?Customer: This for corporation tax purposes.

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Barbara

Enrolled Agent, Paralegal

6,642 satisfied customers
My question is regarding a US based C-corporation. Here is a

Hey All,My question is regarding a US based C-corporation.Here is a situation. Both my wife and I are partners/owners of a C corp. We both have exact 50/50 split ownership. I would like to get rid of the corporation and have my wife be its sole owner. Also, please note that both of us are not US citizen nor green card owners. We are here on work visas.My question is this, if I were to give my wife my part of the company I understand it would qualify for a spousal gift exemption. A gift to a non-citizen spouse is exempt up to $145,000 per year (2014 value) and this amount would be much less than that.The true problem is whether this gift is considered a gift of future or present value. I understand that gifts of present value qualify for the exemption whereas gifts of future value do not. My thinking is that giving up my 50% share of the corporation to my wife and her becoming a 100% owner is a gift of present value. Here is why I think that: Once she owns 100% of the company she will be able to make all the decisions about the corp by herself without my permission immediately. Currently she cannot as we both must agree. If the company were to pay her dividends, she could get 100% of them whereas now, it must be split 50/50 between the two of us as you cannot pay one owner and not the other as this is considered discriminatory practice as all stock in our corp is common stock and considered equal. Please note that the company has not paid any dividends yet in its 10 year history.Anyway, can someone please confirm that this is correct and therefore me giving my 50% ownership in our C corp to my wife is considered a gift of present value and therefore qualifies for spousal gift exemption? If so, my understanding is that it does not have to be reported on the 1040 personal return at all. However, I do understand that it will have to be properly documented and reported on the corporate tax return.Thank you!

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40,202 satisfied customers
It's Gwen, we talked yesterday on the phone. I wanted to

Good Morning, it's Gwen, we talked yesterday on the phone. I wanted to pass some ideas by you:Scenario 1:Move the money that Marcie and Jeremy took from subcontractor expense to a loan to each of them, i.e. Loan – Marcie and Loan – Jeremy. Then at the end of each year write off that amount for each as bad debt. Is this legal? Marcie did file bankruptcy and it was finished in 2016 so could we legitimately write her money off?? And Jeremy plans to file bankruptcy as soon as he can get all of this stuff done. In fact, he already paid the lawyer to get the paperwork started he just never followed thru just yet.Scenario 2:Move BOTH Marcie and Jeremy's money to Loan - Jeremy ONLY and pay towards it little by little just to show good faith. Neither shareholder gets a 1099 and if we decide to close up shop that loan just goes away. Is this legal?Marcie is very culpable and liable but engaging her in any fashion will create a battle of epic proportions. She will retain a lawyer, lie to him and we will have to spend thousands for forensic accountants just to find out that yep, she stole all that money. It will be years and years of fighting and the legal fees are more than we can handle. So if we can avoid sending her huge tax bills and we can keep up on the payroll tax installment payments then she will be none the wiser of any of this. Totally not fair to us but at least she won't steal the next five years from us too. Thoughts?Also, I emailed the CPA about a Wednesday afternoon conference call with you.

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,186 satisfied customers
My ex wife and I started a company in 2013. The court

My ex wife and I started a company in 2013. The court awarded the company to me in the divorce. Since then I have started to get the taxes filed for 2013-2016. In doing so, my CPA wants to file as an s corp but we never filed the form to do that and are structured as a c corp. In order to file as an s corp we need her signature on form 2553. We can not get her to cooperate. What can we do?JA: Because family law varies from place to place, can you tell me what state this is in?Customer: IL this is tax law thoJA: Has anything been filed or reported?Customer: Nothing! we want to file as an s corp to avoid double taxation but since she was a shareholder we need her signature. That's what we are being told by our CPAJA: Anything else you want the lawyer to know before I connect you?Customer: no

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

11,186 satisfied customers
S corporation tax for depreciation method from C schedule

S corporation tax for depreciation method from C schedule transfer to S corporation, how to work on this type depreciation on the S corp?

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Mark Taylor

Certified Public Accountant

Masters

3,750 satisfied customers
This question is for a tax pro famililar with CA FTB

This question is for a tax pro famililar with CA FTB Corporate taxes. I have a client who moved to Nevada She had a CA Corporation. She wants to close it down and just have a new Nevada corporation. She still has a major operation in Califorinia. If Corp is in Nevada but has workers in CA, is the CA FTB going to be able to somehow tax corporation?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

22,480 satisfied customers
I would like to get some feedback on the percentage of

Hi,I would like to get some feedback on the percentage of capital gain due for a non-U.S. citizen on a CA property (when it's time to sell) and what is the best way to buy a property in California for a non-U.S. citizen and pay the least amount of taxes on capital gain: establishing a corporation vs. sole ownership.Thanks.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

22,480 satisfied customers
I registered for vat last year, I then got a large vat

Hi pearlJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I registered for vat last year, I then got a large vat refund from Amazon.co.uk. Which I had paid before as unregistered. My account says I have to pay income tax on the amount, is this so?JA: Is there anything else the Accountant should be aware of?Customer: Not sure

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

22,480 satisfied customers
I'm looking for consultation involving divorce and corporate

I'm looking for consultation involving divorce and corporate lawJA: Because family law varies from place to place, can you tell me what state this is in?Customer: PennsylvaniaJA: Has anything been filed or reported?Customer: I'm in divorce settlement and need advice in particular arrangement.JA: Anything else you want the lawyer to know before I connect you?Customer: I need Lawyer versed in CPA issues along with family law.

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Matthew Breecher

President

MBA (Graduate Legal Studies)

360 satisfied customers
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