Tax
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If a NY online retailer uses a CA manufacturer, do we need to collect CA state tax?
My client is an online retailer based in NY, using a manufacturer in California to build and ship its products. Do we need to collect sales tax in California underneath the out-of-state threshold, or is the outside manufacturer considered nexus?
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Is step-up basis of property sold within 6 months of the decedent’s demise the sale price?
My question specifically deals with the home of a decedent that passed in January 2021. His 4 children became recipients of his estate. There was no spouse, as their mother had passed previously. This house is the only asset, and the home was sold on June 2021. I wanted to verify if …
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Tax implication: Intercompany debt-waiver between parent and subsidiary
I work for a US subsidiary (I'll call Inc) whose parent company was based in the Nordics (I'll call A/S) and filed for bankruptcy. A/S no longer exist and is now managed by a Trustee over there. Under the Inc's books, there is an intercompany balance owed that is now being considered to be waive…
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Charitable Tax Contributions
I am opening up a charity to help Fallen Military personal that have made a mistake in life and ended up with a felony. Would it be against ethics to solicit accountants to possibly suggest their clients to donate to my charity for tax savings? What would be the best way to go about doing this? Sho…
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Should I issue two 1099 forms for an Independent Contractor that updated their EIN#?
One of our Independent Contractor sent us a W9 with a new EIN#. Should I process two 1099 forms this year, one with the old number and another with new number? or Should I issue their 2020 1099 using their new#?
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1120F filing
I have a client who is converting his LLC in to a C Corp by checking the box for tax purposes only. New share holders will be foreign corporation . If the company does not have any dividends in the current year will the foreign shareholder need to file an 1120f? They are under the US and MX tre…
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Estate Tax
The home of a decedent became an asset of his estate upon his death. His three children are fiduciaries of the estate. If the estate sells the home, does the cost of the home receive a stepped up basis or is the original basis carried over to the estate when the estate was established?
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NON FOR PROFIT--- ALLOWED OR AN INUREMENT?
We are a 501 non for profit. A family asked us to pay for a funeral for a terminally ill member who will sadly soon pass away. Are we allowed ($10,000 ) , or is it an inurement, and prohibited? Thank you Star1441
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Advice needed
Hi All, I'm new to this forum and require a bit of advice from practicing accountant, I recently moved to the USA and own two companies one is sole member LLC and the other one is C Corp where I'm 100% shareholder. Just wanted to know that if I'm not withdrawing any income from C corp then I shoul…
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Value benefit regarding TAXES to change from LLC to S Corp (for both company and individual)
Hello everyone, I have a question, which the accountant I worked before was not very clear when answering and therefore brought me doubts about his work. Me and a partner have a small consultancy business that was opened last year in Texas as a LLC. We decided to take almost a full year to "orga…
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What form of taxes should I use if I am going to receive a US fund and my company is in Mexico?
My company is Mexican and we were chosen to receive a fund (donation) from an American company. They ask me to fill out a form and they give me the following options: w9, w8 ECI and W8 BEN. it can be an individual form or an entity form. Which one should I fill?
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Why did my dependents receive stimulus checks QUESTION
Everything was based off of 2018 taxes(joint filing) because I filed my 2019 taxes too late to be considered for stimulus. In 2018, my son finished his senior year of high school and became a full time college student in the fall. He earned about $8,000 with part time work. I claimed him on my…
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Roth IRA contributions
If I did not contribute to a Roth Ira in 2019 but made over 6k net and also will make over 6k net this year could I write a 12k check to put into my Ira this week since taxes got pushed back to July 15th? This way half would be for 2019 and half for 2020.
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Knowledge resouces for US taxation
I am a freelance bookkeeper and i wish to learn about US taxation. I want some online resources pr webinar links through which i can study US taxation. Please Suggest
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S Corp setup
I am purchasing an existing business in PA and will set it up as an S Corp to save on my salary’s payroll taxes. There are 2 silent investors besides myself and we are investing a total of 340k: I (shareholder 1) am investing 90k for 87.5% equity, shareholder 2 investing 200k for 10% equity, s…
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Sports Coach + PPP
Hi All, First time poster so PLEASE go easy on me. I have looked through the forum here and it seems like a wealth of knowledge (insert butt kissing emoji). I am looking for a little info on PPP. My account says I have to go to the banks for info and the bank said I should ask an accountant (I'm…
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reduced AMT cost of rental house in entire disposition
An accountant filed my 2018 tax return. He filed F4797 and AMT F4797. Somehow, in the F4797, the cost of the rental house sold was real cost I paid but the AMT cost was much smaller. I could not find any cases which make me use a smaller AMT costs. I read the instructions of F4797 and F6251 but I…
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Keogh Plan- deposit made within tax guidelines not counting for former year- how do I fix this?
I made a Keogh deposit of 25K in Feb 2019- well before the April 2019 cut off date for the 2018 year. I then made a deposit feb 2020 for 34K for the 2019 year- again before the April deadline for the prior year contribution. While retrieving my tax documents from Fidelity- I noticed my 2019 Ke…
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How do I record the purchase and sale of a business vehicle in service for less than a year?
Hi, I am the owner/manager of a multi-member LLC. On 1/30/2019, I bought a company van (12 pax) for $5,775, which I placed into service on 2/1/2019. Because the vehicle was supposed to be used for more than a year, I classified it as a fixed asset "vehicle", then I depreciated the van using s…
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Owning Partnership Interest with S-Corp
Would there be a bona fide business purpose risk for owning an accounting firm interest through an S-Corp? The benefit of the SE tax savings obviously can't be a legitimate purpose. Has anyone had any experience with the IRS on this? I am envisioning a professional having their S-Corp be the partne…
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Can an Inherited IRA be put into a Special Needs Trust?
Disabled person receiving SSDI needs to maintain SSI eligibility for Medi-Cal. Has inherited her parents IRAs. I know if they were her own IRA, they could not go into the trust, but as they are inherited she cannot contribute to them. How might it be possible to move them into a SNT so as not to ar…
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Cost basis for inherited asset recovered abroad that was previously confiscated by foreign government (and hence not part of estate at time of death))
Hello, have a question about a cost basis for an asset (property -- land & buildings) that was confiscated by government (nationalized) in the 1940s and recovered in the 2000s. The challenge is that it was part of inheritance. In summary: Region: Eastern Europe - 1949 a fully functioning/pr…
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Tax implications to US non-residents who are beneficiaries of 401k
I am the administrator of the estate of my deceased friend. The beneficiaries are my friend's parents who are not US residents and do not reside in US. The estate is primarily a tax-deferred (traditional) 401k account. Will the beneficiaries have to pay any taxes to the US federal and state gove…
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Section 179
My client is a single member LLC filing as a disregarded entity on Schedule C. He is thinking of purchasing a truck prior to Dec 31 and putting it into service on that date. If he uses the truck 60% for business/40% personal will he then be able to take the Sec 179 deduction on form 4562 for the fu…
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Accounting for New Business
Hi All, I will be starting a new business in 2020. My problem is that over the years I have procured inventory to be sold as an individual and not all have receipts/records. When I start the new business it will start with (making up numbers) 3000 items worth of ~$50,000 all purchased with …
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