Tax
Does the local property tax exemption for nonprofit organizations (501(c)3) apply to leased equipment property tax?
A 501(c)3 nonprofit organization received a property tax bill after leasing a postage meter, raising the question of whether its local property tax exemption extends to leased equipment. This article analyzes tax principles and practical considerations.
Applicable Boundaries and Compliance Points for Florida Service Sales Tax Exemption
In Florida, marketing services are generally eligible for a sales tax exemption, but if product sales are involved, taxes may apply. This article analyzes the distinction between services and products in scenarios such as website delivery, and offers compliance recommendations.
Reporting Obligations for Former Directors in Form 990 Filings: Must They Still Be Listed If Unpaid?
Some organizations have consistently listed unpaid former directors on their annual Form 990 filings. The question now arises: if their annual compensation does not exceed $10,000, can they be omitted from the report? This article clarifies the criteria for determination and offers recommendations based on filing rules.
Analysis of Questions on Calculating Bonus Depreciation and Recapture Amount When Selling in the Following Year
This article addresses confusion about bonus depreciation: if you purchase a $60,000 SUV weighing over 6,000 pounds, use it 100% for business, fully deduct it in 2018, and then sell it in December 2019 for $45,000, how should you calculate the recapture amount (i.e., ordinary income)?
Do SaaS vendor payments need to be reported on 1099-MISC?
When a business purchases SaaS services from a software vendor structured as an LLC, is it mandatory to send a 1099-MISC? Current 1099 filing instructions do not explicitly mention software, but the determination must consider the nature of the payment and the vendor's tax status. This article outlines key considerations for finance and tax personnel.
Determination of the Relationship between Subsidiaries and Parent Companies from the Perspective of U.S. Tax Filing and Withholding Tax
Focusing on a scenario where a parent company invests in real estate and holds 94% of the equity (voting and capital interests) in a subsidiary, this article explores how to determine the beneficial owner when filing Form W-8BEN-E, whether the subsidiary constitutes a disregarded entity, and provides practical guidance.
Cross-Border Contractor Tax Compliance: 1099 Reporting Rules for Service Providers from India, the Philippines, and Canada
When handling tax procedures for overseas contractors from India, the Philippines, and Canada, businesses often face confusion regarding form selection and reporting obligations. The original consultation involved the use of Form W-8EIC and year-end 1099 issuance. This article, while preserving the original information, provides a professional review of the relevant rules, reminding businesses to note differences in tax treaties across countries and the conditions for form applicability.
Guide to Late Filing of 1099-MISC Forms in New York State
A New York business owner who started operations at the end of 2018, having missed the January 31 deadline for filing 1099-MISC forms, asks how to submit the forms for two contractors (one S-Corp and one sole proprietorship). This article outlines feasible paths for late filing, including electronic filing and mailing, and emphasizes the need to act promptly to avoid potential penalties.
Only Filed Taxes Once Since 1992: Compliance Risks and Remediation Paths for Long-Term Non-Filers
An expatriate who moved to the United States in 1990, after being required by the IRS to file taxes due to stock market losses in 1992, has not filed for over two decades. They state that they did not intentionally evade taxes, as their income never reached the filing threshold, but acknowledge they should have fulfilled their filing obligations. Now planning to file the 2018 return, they worry about triggering investigations into prior years and are concerned that a former spouse might report them. Based on their account, this article analyzes the compliance risks, remedial measures, and psychological concerns of long-term non-filers.
Valuable comics stolen and value uncertain, can the loss be itemized on the tax return?
A taxpayer discovered that his collection of valuable comics was stolen but could not determine the specific loss value, asking whether he could report a theft loss on his 2018 tax return. Based on his description, this article analyzes the possibility of reporting, methods for determining the amount, and key points for responding to IRS review.