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scribe jones posted:I don't see why not. You can deduct them on Schedule C under "dues and subscriptions". Depends on whether he also needs them for his day job and pays them year after year even without the SE income. That being said, I would deduct them too.
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Sep 24, 2013 18:03
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AbbiTheDog posted:Depends on whether he also needs them for his day job and pays them year after year even without the SE income. Interesting. Can you go into any more detail on this? For what it is worth, my day job is in the same field as my legal consulting (for obvious reasons). I have been paying those dues for 10+ years now.
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Sep 24, 2013 18:48
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gp2k posted:Interesting. Can you go into any more detail on this? For what it is worth, my day job is in the same field as my legal consulting (for obvious reasons). I have been paying those dues for 10+ years now. If you need them for your day job have your employer pay for them.
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Sep 24, 2013 22:01
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AbbiTheDog posted:If you need them for your day job have your employer pay for them. Ah, I see. No, I don't "need" those memberships to maintain a professional license to practice or anything like that--just for ongoing education. Thanks!
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Sep 24, 2013 22:25
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AbbiTheDog posted:If you need them for your day job have your employer pay for them. I guess he can allocate between Sch C and Form 2106 if the employer won't reimburse? Seems like more trouble than it's worth tbh
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Sep 25, 2013 06:55
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IMNACPA (yet), but I think my tax classes suggested to put professional dues under Sch C if you file SE. I'm not familiar with 2106, but a brief read of the instructions make me think it wouldn't apply to professional dues, and they should go on Sch A, unless you're SE'd where in it would go to Sch C. Right? I could be way off base! Is it the norm for law firms (or CPA firms too frankly) to not pay for professional dues?
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Sep 25, 2013 23:19
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I have an IRA and a SEP IRA that I contribute to every year, both with Vanguard. Can I contribute the max to the IRA, then the remainder to my SEP IRA (in multiple contributions), then transfer the SEP IRA balance to my IRA? If so, would I have to set up a new SEP IRA every time, or can I just keep the two accounts I have and transfer between them? (Reason I want to do this is simplifying my holdings due to minimum investments.) Edit: I'm self-employed. Cranbe fucked around with this message at 19:56 on Sep 27, 2013 |
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Sep 27, 2013 19:43
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SiGmA_X posted:IMNACPA (yet), but I think my tax classes suggested to put professional dues under Sch C if you file SE. I'm not familiar with 2106, but a brief read of the instructions make me think it wouldn't apply to professional dues, and they should go on Sch A, unless you're SE'd where in it would go to Sch C. Right? I could be way off base! If you're self-employed professional dues are deductible on Schedule C. If you are an employee the dues go on Schedule A. Form 2106 is just a form for mileage and business expenses, don't overthink it. Most large firms pay for professional dues, according to my attorney relatives.
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Sep 28, 2013 11:58
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So I just started an LLC and I basically have no idea what I am supposed to do when it comes to taxes. I've never had anything more complex than filing a 1040 every year with some itemized deductions. If some of this has already been answered, my apologies but there's a lot of pages in this thread. I have two concerns. I don't want the IRS on my rear end and I want the layer of liability protection. I'm thinking of filing as an s-corp for tax purposes since I have heard that courts have so far treated single member llcs as sole proprietorship for liability. I intend to seek a professional's advice, however. I am a newly formed single-member llc with zero income. I hope to start earning in the next few months but right now I just have the name. Will an accountant still consult with me? And does it cost money for an initial meeting to go over my options? My business will be eCommerce. Does that change anything in my search for a qualified accountant?
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Oct 1, 2013 05:23
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Kung Fu Jesus posted:So I just started an LLC and I basically have no idea what I am supposed to do when it comes to taxes. I've never had anything more complex than filing a 1040 every year with some itemized deductions. If some of this has already been answered, my apologies but there's a lot of pages in this thread. Yes, it usually costs money for an initial consultation. No, ecommerce usually does not change your search. All of our audits this year have been sole proprietors, which is essentially what a single member LLC is. If you're worried about audits, you can file Form 2553 and elect S Corp status for your LLC. Some notes: 1) It's harder to claim office in home with an S Corp. 2) S Corps require taking a wage, which means doing payroll, which might cost more money. 3) You need to pay someone to do your S Corp tax return. 4) Depending on your state, you might have additional S Corp minimum "taxes" that need to be paid. Here in Oregon it's $150, in California, it's $800. Per year. I recommend to my clients when they are starting out to leave it as the LLC to make sure they're going to have enough reasons to elect S Status and overcome #1-4 above.
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Oct 1, 2013 16:42
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So after an audit of 3 tax years (the returns of which I screwed up after doing on my own) I filed amended returns. One of them was accepted and the other two are currently going through audit reconsideration. For the amendment that was accepted, my tax liability was zeroed out, however the associated penalties (accuracy related) stayed on my account. I filed a request for abatement, explaining the situation, approximately 2-3 weeks ago (after getting notice of the adjustment based on the amended return). Yesterday I received a bill for those penalties (CP503). What's the best course of action? Calling the IRS? Waiting for the abatement to get processed? Paying of the penalties and then getting them refunded (in the request for abatement I stated that I hadn't put any payments towards the penalties). Any advice is much appreciated  .
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Oct 1, 2013 16:50
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shodanjr_gr posted:So after an audit of 3 tax years (the returns of which I screwed up after doing on my own) I filed amended returns. One of them was accepted and the other two are currently going through audit reconsideration. The IRS typically won't consider a penalty abatement unless the penalties have been paid or you are in an installment agreement to pay them. This is kind of a weird situation though so they might make an exception.
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Oct 1, 2013 17:56
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furushotakeru posted:The IRS typically won't consider a penalty abatement unless the penalties have been paid or you are in an installment agreement to pay them. This is kind of a weird situation though so they might make an exception. They're closed today anyways.
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Oct 1, 2013 18:09
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furushotakeru posted:The IRS typically won't consider a penalty abatement unless the penalties have been paid or you are in an installment agreement to pay them. This is kind of a weird situation though so they might make an exception. It is my understanding that since the penalties are accuracy related and determined as a percentage of the tax liability, they would get zeored out if the liability itself would be zeroed out. Am I wrong to assume that? Should I just pay the penalty and keep my fingers crossed? shodanjr_gr fucked around with this message at 18:22 on Oct 1, 2013 |
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Oct 1, 2013 18:17
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shodanjr_gr posted:It is my understanding that since the penalties are accuracy related and determined as a percentage of the tax liability, they would get zeored out if the liability itself would be zeroed out. The departments you are dealing with are separate and do not communicate well with one another. The notices you are getting are from the collections arm, the amended returns and associated processing is done through the audit reconsideration unit (correct me if I'm wrong). If a decision is made on one end, it might take months for the other to know. I would call (when the IRS starts working again) the collection arm and explain what's going on and ask for more time.
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Oct 1, 2013 20:02
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AbbiTheDog posted:Yes, it usually costs money for an initial consultation. So I can change by filing status at any time? I've heard two things about that. First, I need to decide within around 60 days of the formation of the llc. Then I cannot change it for five years. I also heard I can change it any time for the first time but it just won't take effect until the next tax year or something like that.
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Oct 2, 2013 01:55
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Kung Fu Jesus posted:So I can change by filing status at any time? You can simply file Form 2553 (S election form) or form 8832 (check the box election for C Corp status)at anytime. Once an election is made you can't change for five years. The S corp election technically needs to be made within a certain period of time (the 15th day of the third month in the tax year, typically March 15th) from the beginning of the tax year (in the initial year, it's the date of formation) but under rev. proc. 2003-43 you can make a late s election up to 18 months late. ALL LLC MEMBERS need to consent and sign the elections. If you're the only one, not a problem. http://www.irs.gov/pub/irs-pdf/f2553.pdf http://www.irs.gov/pub/irs-pdf/f8832.pdf http://www.irs.gov/pub/irs-drop/rp-03-43.pdf
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Oct 2, 2013 17:21
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I am pretty sure my boss is loving me by having me as a 1099. I think it is sketchy as gently caress.
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Oct 2, 2013 19:48
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Stealthgerbil posted:I am pretty sure my boss is loving me by having me as a 1099. I think it is sketchy as gently caress. Probably! You could always fill out a Form SS-8 and send it to the IRS if you want to get fired.
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Oct 2, 2013 21:18
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scribe jones posted:Probably! You could always fill out a Form SS-8 and send it to the IRS if you want to get fired. I've found the states are much more aggressive than the IRS on these matters. And although legal to turn in your boss, yeah you're going to piss him off (and your co-workers) if you all lose your jobs. Workaround: Take a 10% break in pay to be put on payroll. For both parties it tends to come out pretty equal to what he's currently paying you on a 1099.
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Oct 2, 2013 22:06
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AbbiTheDog posted:I've found the states are much more aggressive than the IRS on these matters. Even here? I'm surprised the Employment Dept. can put its shoes on in the morning, let alone go after misclassified workers
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Oct 3, 2013 04:35
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scribe jones posted:Even here? I'm surprised the Employment Dept. can put its shoes on in the morning, let alone go after misclassified workers ODR, once they find a payroll tax case, looooves to jump on it. Problem is getting them to notice the issue and care about it to start with. What I've seen with my clients is if they have an IC who they terminate the relationship with/gets hurt on the job, the IC files for unemployment/workers comp and the state awards it to them without checking with the employer, and then the ODR jumps all over the employer and it's a huge mess to sort out.
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Oct 3, 2013 16:31
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AbbiTheDog posted:The departments you are dealing with are separate and do not communicate well with one another. The notices you are getting are from the collections arm, the amended returns and associated processing is done through the audit reconsideration unit (correct me if I'm wrong). If a decision is made on one end, it might take months for the other to know. So considering that it doesn't look like the government is gonna be opening any time soon, do I just sit and wait? I think that the cp503 that I got had an October 20 deadline...
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Oct 7, 2013 18:16
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shodanjr_gr posted:So considering that it doesn't look like the government is gonna be opening any time soon, do I just sit and wait? I think that the cp503 that I got had an October 20 deadline... There isn't anyone to answer the phones right not as far as I know. You have no choice but to wait until the government opens back up for business.
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Oct 7, 2013 19:22
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furushotakeru posted:There isn't anyone to answer the phones right not as far as I know. You have no choice but to wait until the government opens back up for business. Of course  I was just wondering what happens in terms of payment deadlines and what not..
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Oct 7, 2013 19:48
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shodanjr_gr posted:Of course I think they're still taking payments. Don't know for sure. If you have a deadline for sending in paperwork, we're recommending certified mail, return receipt requested for all time-sensitive mailings.
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Oct 7, 2013 22:51
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AbbiTheDog posted:I think they're still taking payments. Don't know for sure. If you have a deadline for sending in paperwork, we're recommending certified mail, return receipt requested for all time-sensitive mailings. Yeah dude, it's all on their "lapse in appropriations" FAQ: http://www.irs.gov/uac/Newsroom/IRS-Operations-During-The-Lapse-In-Appropriations Not going to be issuing refunds, though!
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Oct 8, 2013 00:47
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Okay after looking at final numbers from last year, and such, I actually did substantially WORSE tax-wise as an s-corp than I would have if I had just taken the income as 1099. I had to basically take almost all the income as salary anyways, except there were costs in doing payroll AND I lost a bunch of writeoffs I had used in prior years - home office being a giant one. Taxes, fees and such ended up being nearly 35% of my gross revenue, and that's hilariously awful compared to prior year's 1099 percentages. So, in light of this having been a dumb idea suggested by idiot accountants, how do I get rid of the s-corp at the end of this year? I'm the sole shareholder and the only officer is my wife, however i'm the only salaried employee or anyone taking money out.
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Oct 8, 2013 01:22
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cstine posted:Okay after looking at final numbers from last year, and such, I actually did substantially WORSE tax-wise as an s-corp than I would have if I had just taken the income as 1099. I had to basically take almost all the income as salary anyways, except there were costs in doing payroll AND I lost a bunch of writeoffs I had used in prior years - home office being a giant one. Just file a final 1120s with the "final" box marked. We usually do this form with the corporate return as well. http://www.irs.gov/pub/irs-pdf/f966.pdf
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Oct 8, 2013 17:02
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AbbiTheDog posted:Just file a final 1120s with the "final" box marked. So basically Jan 1, I'd just start taking the checks personally again, and when they file 2013's taxes, I'd just file those and be done with? (Other than notifying the state that the corporation is no longer in business, and not going to be filing any more payrolls and such.) Any tax considerations involved with taking corporate assets back out? Essentially there's not any assets other than money sitting in an acccount at present, and some laptops/phones purchased for use.
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Oct 8, 2013 18:12
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cstine posted:So basically Jan 1, I'd just start taking the checks personally again, and when they file 2013's taxes, I'd just file those and be done with? (Other than notifying the state that the corporation is no longer in business, and not going to be filing any more payrolls and such.) http://www.borelassociates.com/topics/Distributing_Property_to_S_Corp_Shareholders.pdf
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Oct 8, 2013 19:23
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I was looking at my pay statements at work and apparently I'm not claiming any allowances on my income. This means I'm paying more taxes per pay period than I need to right? I'm single, don't own a house/property, no dependents, pay a boatload of student loan interest every year and I definitely don't itemize on my taxes. I also think I'll end up contributing like 800 bucks to a 401k by the end of the year and work pays for part of my medical coverage. Does that matter? I always get huge tax returns so I think I'm doing this wrong? My gross wages for this year are gonna be like.... 27-28k I think. After trying to read through this thread and going through that IRS withholding calculator I don't really understand what I'm messing with here at all. This is the first job I've had where I've made this much money and have had benefits so I don't know what the gently caress I'm doing. 100 HOGS AGREE fucked around with this message at 14:09 on Oct 9, 2013 |
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Oct 9, 2013 14:00
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100 HOGS AGREE posted:I was looking at my pay statements at work and apparently I'm not claiming any allowances on my income. This means I'm paying more taxes per pay period than I need to right? The 'rule of thumb' is to take total deductions equal to the total amount of people on your 1040. If you're single, do 1. If you're MFJ, you and your spouse should each do 1, or one of you do 2 and the other 0 (this gets tricky with big income differences, I believe I'd suggest the higher earner doing 0 and lower earner doing 2, but I'd run the numbers in that case).
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Oct 9, 2013 19:19
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I'll just change it to 1 then, thanks.
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Oct 9, 2013 19:57
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100 HOGS AGREE posted:I'll just change it to 1 then, thanks. Just make sure you understand that you'll pay exactly the same amount of taxes either way; the only question is whether you'll get a refund or owe more when you file next spring. (Technically if you significantly under-withhold you can wind up owing penalties to the IRS, but there's really no chance you'll underwithhold to such a degree with 1 deduction.) A lot of people like to use the IRS as a (non-interest-paying) bank, over-withholding so they get a refund in April and then spend that refund as if it were free money from the government (instead of actually being money you gave the government for free and now they're giving back). If you like that idea, you could stick with 0 deductions.
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Oct 9, 2013 22:15
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Leperflesh posted:Just make sure you understand that you'll pay exactly the same amount of taxes either way; the only question is whether you'll get a refund or owe more when you file next spring. (Technically if you significantly under-withhold you can wind up owing penalties to the IRS, but there's really no chance you'll underwithhold to such a degree with 1 deduction.) Generally my entire return just goes into savings or student loans anyway.
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Oct 10, 2013 13:03
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Before the end of the year I will be moving from Illinois to Nevada, and continuing to telecommute/work from home in Nevada. So for all of 2014 I will be a full time resident of Nevada, working from Nevada for a company based in Illinois. I will be paid as a W2 employee (although this would actually be flexible if it helps). From what I can tell, I won't owe any tax to Illinois since I will no longer be a resident, and I won't actually perform any work in Illinois. It also seems like possession is 90% of the law in cases like this, so if I just have my employer stop withholding Illinois tax everything should be fine and I won't even need to file with IL. Can anyone who knows more about it comment on this? Thanks
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Oct 10, 2013 15:04
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Droo posted:Before the end of the year I will be moving from Illinois to Nevada, and continuing to telecommute/work from home in Nevada. So for all of 2014 I will be a full time resident of Nevada, working from Nevada for a company based in Illinois. I will be paid as a W2 employee (although this would actually be flexible if it helps). That is typically how it works for most states but I don't know anything about IL's rules specifically.
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Oct 10, 2013 18:35
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My question is the last paragraph, the first part is the introduction to the problem: My In-Law is visiting from Japan. He has 15,000 invested in stocks in the US and he wants to divest them and transfer it to his bank back at home. I called his online brokerage service and he said that the best way to do this is to sell the stocks, transfer them to my bank account, and then wire it to his bank in Japan. My question is: Will I run in to tax issues for not reporting this cash as income, even though I was only keeping it temporarily? What if it is significantly more than the amount I specified?
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Oct 11, 2013 13:37
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This sets off several sets of alarm bells, and you should stay as far away as possible. Number one, no reputable brokerage service would recommend this course of action. They shouldn't even be talking to you about your In-law's assets unless they have his written consent for you to handle his finances. They certainly shouldn't be recommending that he legally transfer those assets to you. Having $15,000 transferred into your bank account and then wired out of the country will raise some major red flags, the IRS will know about it and may be asking some very pointed questions. Something very shady is going on here, if you're a part of it you are in way, way over your head and need to GTFO, and if you're not a part of it then you need to stay that way and not get involved with your in-laws finances at all.
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Oct 12, 2013 00:29
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