Tax
Keogh Plan- deposit made within tax guidelines not counting for former year- how do I fix this?
The user deposited $25,000 into a Keogh plan in February 2019 for the 2018 tax year, but Fidelity's tax statement did not attribute it to 2018, and no tax return was filed for 2018; in February 2020, they deposited $34,000 for the 2019 tax year, worrying about the same issue. This article analyzes the causes and provides recommendations.
reduced AMT cost of rental house in entire disposition
A taxpayer reports that in their 2018 tax return, the accountant used the actual property cost paid on Form F4797, but used a significantly lower cost basis on the AMT Form F4797. After reviewing the relevant form instructions, the taxpayer could not find a basis for this, and it was difficult to contact the accountant's office due to its closure during the pandemic. This article outlines the background of the issue and suggests possible reasons.
Sports Coach + PPP
A sports coach (1099 income earner) who received a PPP loan consults about whether the loan is subject to income tax and how to properly use the loan to obtain full forgiveness. The article outlines the specific questions and highlights relevant tax and compliance points.
S Corp setup
A buyer plans to acquire an existing business in Pennsylvania and establish an S Corp to save on payroll taxes. Three shareholders collectively invest $340,000, but the contribution amounts do not match the equity ratios. The article provides professional clarification on accounting entries, whether to issue shares, and how to avoid triggering equity or tax basis changes.
Knowledge resouces for US taxation
This article provides a practical guide to U.S. tax learning resources for freelance bookkeepers, recommending reliable online platforms and webinars, and offering learning path suggestions. All information is based on the original query and does not constitute tax advice.
Roth IRA contributions
If you did not contribute to a Roth IRA in 2019, but your net income for both that year and 2020 exceeded $6,000, can you write a single $12,000 check before July 15 (the tax filing deadline extended due to the pandemic), with $6,000 allocated to 2019 and $6,000 to 2020? Based on current IRS rules, this article analyzes the feasibility, income eligibility, and contribution limits.
Why did my dependents receive stimulus checks QUESTION
A taxpayer filed based on their 2018 joint tax return, and because their 2019 tax return was submitted too late to be included in the stimulus calculation. Their son and daughter were both dependents in 2018 and each had part-time income, but both received $1,200 stimulus checks, while the taxpayer couple only received $942. This article analyzes possible reasons and whether this constitutes an error.
What form of taxes should I use if I am going to receive a US fund and my company is in Mexico?
A Mexican company has been selected by a U.S. company to receive a sum of funds (a donation), and the U.S. party requires the completion of a tax form, offering three options: W-9, W-8ECI, and W-8BEN, while also distinguishing between individual and entity forms. Based on the facts, this article analyzes the applicable conditions of each form to help determine which one should be filled out.
Value benefit regarding TAXES to change from LLC to S Corp (for both company and individual)
A Texas LLC partner consulted about the tax differences of converting from an LLC to an S Corp, and their accountant only provided a verbal explanation of "LLC pays 25%, S Corp pays 12%" without specific figures. This article, based on a hypothetical scenario of annual profits of $156,000 and total dividends of $253,440 (split equally between two people), outlines the key differences between the two entity types at both corporate and individual tax levels, and points out potential simplifications and ambiguities in the accountant's statement, helping readers assess whether the conversion fee is worth paying.
Advice needed
A business owner who recently moved to the U.S. asks on a forum: They own two companies (one is a single-member LLC, and the other is a C corporation with 100% ownership). If no income is withdrawn from the C corporation, whether nothing needs to be reported on the individual tax return, or whether there are mandatory reporting requirements. This article organizes relevant tax filing points based on available information and points out the uncertainties involved.