Tax
-
Residential Rental Property or Commercial Property
In July of 2005 my client bought a building that was classified as a residential rental and depreciation commenced at a life of 27.5 years. In January of 2015 a restaurant was established as an S Corp on the street level of the building. The square footage of the restaurant was approximately 45% or…
1
-
Mineral and royalty ownership tax question
My brother and I each own equal amounts of mineral and royalty ownership in Texas, Oklahoma and New Mexico. My brother is very ill and it is expected that he will not make it much longer than 6-12 months. My brother's wants to transfer his mineral and royalty ownership to me so that I can manage it…
-
Treatment of partner income for investment LLC (Sec 704 Question)
I would like to set up an LLC within which my partners and I will invest in various startups. We may not always have equal contributions or returns though and I want to see if anyone's done this before and how it fits in with section 704 requirements for allocating income to partners. For exa…
-
On an asset sale under the installment method, how is the gross profit percentage calculated when inventory, fixed assets, non-compete and goodwill are sold?
The inventory was sold at cost. Fixed assets had a depreciation recapture component. The owner received about 85% of the sale price in cash and holds a 10-year note for about 15% of the sale price. Does the installment sale only apply to capital gain from the sale of goodwill?
-
Confusing Sales Tax Question on Janitorial service company
Hello Pro accountants, I cant seem to figure this out. I work for a janitorial company in CA and have a client in Texas and we collect sales tax from the client on the janitorial services and cleaning supplies. However, we're using a sub contractor. Should the sub collect any taxes from us?…
-
Mileage Reimbursement
I found an old thread (2014) related to this, but not as detailed as I a looking for. We had a policy in place for years that when traveling to a temporary work location mileage reimbursement could be submitted from the location that was closest (from the normal assigned office location or home). …
1
-
Economic Nexus and Sales tax on SaaS software subscriptions
I recently joined a SaaS company, and have done tons of research on economic nexus and software taxability matrix. Some states have clear definition of saas, some not. Some identify it as a "canned software delivered on tangible media", some - as a "custom software delivered on tangible media". L…
-
Hong Kong entity doing business with UK - What's the rule on VAT Tax
Hello everyone! We are a Hong Kong based & registered company. We provide furnishing services to Asia based investors, investing in real estate in England. As such, we buy our goods from a UK based supplier, who will then take care of installing this furniture in these properties that are al…
1
-
Will a nonresident alien have to pay any tax except income tax if he sells IP for software to a C-Corp and a C-Corp PAYS for the software after full depreciation?
Under the IP assignment agreement, I sell IP for the software to a C-Corp. Under the agreement, the C-Corp pays for the software in 1 payment within 5 years, after the software is fully depreciated (3 years). The software is custom made, not off-the-shelf one. As far as I understand, I will have …
1
-
Will a C-Corp (cash accounting method) have to pay any tax if it buys IP for a tailored (not off-the-shelf) software, depreciates it and PAYS for it after full depreciation?
Under the IP assignment agreement the payment timeframe is 5 years. As far as I understand, the bespoke software will be entirely depreciated within 3 years. So, a C-Corp will pay the full price of the IP for the software after it will be fuly depreciated. Do I get it right that a C-Corp will n…
1
-
I'm a Financial Advisor that wants to add Tax Preparation to my practice
I'm a fee-only financial advisor and a big part of what we do, in addition to investment management, is financial planning. We get deep into tax planning as well, at least compared to other financial advisors, and I constantly get asked by clients if we can prep their taxes as well. I'm thinking …
1
-
Membership Units (LLC Partnership) provided as Compensation - Taxable?
I always find it interesting the differing opinions you get when you have a bundle of Financial Professionals together with varying backgrounds and thought this scenario that came up during the instruction of a Minority Business Accelerator Class. Company A is an LLC Partnership with 2 Existing …
-
Submission of US Tax Form (W9 or W8)
We are in Hotel business located in India and a tax resident in India. Any service rendered to guests would be performed in India. One of the US company has agreed to hold conference in India with its Indian partners. As per contract they are supposed to make a deposit (as advance) to confirm th…
1
-
280e and large (or any size) retailers selling CBD
The law is clear that CBD (a cannabis derivative) is only federally legal to sell as an ingredient in an FDA approved medication, such as Epidiolex, which is currently the only approved drug containing CBD. Unless CBD is contained in an FDA approved medication it is considered a Schedule 1 controll…
1
-
Vehicle Truck/SUV deduction question
Hello, I am an artist and own a small business where I am the only employee. I'm looking to purchase a truck or SUV to be used 100% for business. I will use it to deliver paintings, transport my booth and art to the art fairs and take it into the woods to get to areas i will be painting. I've read…
1
-
How can I best help a client that has 10 years of tax filings to catch up on?
I had someone approach my firm and ask to help them file past tax returns. This client has not filed since 2008, and it appears he may owe taxes between 2008-2012 (he withdrew early from an IRA to put funds into a dying side business). I've agreed to help him file these past returns, but this is a …
1
-
How to fix incorrect IRA classification
We opened a Vanguard IRA in 2001 and it was supposed to be a Roth. We made contributions in 2001, 2002 and 2003 and all years were under the allowable $3000 limit. Now we want to take out the money (over $12,000) and it should be tax free (we are over 59-1/2). But we never noticed that they set it …
-
Do foreign owned companies owe U.S. federal income tax on income from holdings of U.S. Treasury bonds?
Do foreign (non-US) owned companies owe U.S. federal income tax on income from holdings of U.S. Treasury bonds? For context, the foreign company has no U.S. citizen or resident ownership (not a CFC or PFIC). If yes, - Does the U.S. Treasury withholding some or all of the expected tax? - Un…
2
-
Capital Gains from Small Business Stock Sale
Say I invested in a small business in January 2010 (qualifies for 1012 treatment, 75% exclusion) and decided to sell the stock today. I also sold some small business stock at a loss this year (stock I bought 3 years ago). How should I go about netting these together?
-
Do I have to report earnings of an Israeli subcontractor to Israeli taxing authority or anyone else?
I have a contract to deliver educational services in Turkey. I will provide services, in country, with US citizens and an Israeli individual. In the US, all of the services are recorded as business expenses, US citizens will get a 1099. What do I have to report, and to whom, for the Israeli citizen?
-
Foreign tax credit question
The foreign tax credit cannot be more than your total U.S. tax multiplied by the fraction of taxable income from foreign sources. Since I have some U.S. income, it's not possible for the foreign tax credit alone to reduce your total tax to zero (which is what I am experiencing). Would I include…
2
-
Took on too much tax work- what do I do?
I own a niche tax practice and took on too much work this year. I've been working 90 hours/week and still don't think I'm going to be able to finish by the deadline. I'm still new (2nd year), so not really a pro at managing the practice yet. What are my options here? Has anyone experienced this? I …
1
-
LLC taxes: Loans Payable
I and my wife owns LLC. Personally we(Me and my wife) loaned(Ex: $100) LLC 13 years ago. In 2018, LLC made a profit of $166. Since LLC never made profit last 13 years, there was no money to pay back the loans. Now LLC made money and wants to pay back the loan $100 to Me and my wife. We see two …
-
Theft loss related to uncertain exact value of valuable comic books - can I itemize loss?
As a teenager I collected comic books. I have a dozen large boxes of comics. I never tracked exactly what I had, but 20 years ago I sorted the most valuable into a single box. I stored these casually in my basement for a long time. This summer I decided to catalog them to see what I actually have. …
-
I have only filed once since 1992
I am a foreigner and moved to the US in 1990. In 1992 I lost money in the stock market and the IRS wrote me that I have to file taxes. So I did. And never again. The reason why I have not files is not because I am trying to evade taxes but that I have never made enough money where I would have had …
Previous
