Questions Answered by D. Mathew Blackburn
Q: How do I File taxes when I live in texas and my wife lives in louisiana where I come home to on the weekends
D. Mathew Blackburn's answer
Put your TX address on your Federal return.
Get a TX driver's license.
Intend to reside in TX indefinitely.
For any LA source income you would need to file a non-resident return.
You'll have to file a part year resident return for the year you move away from LA to TX.
Spend less than 6 months out of the year in LA.
If you don't have any income produced in LA and you don't reside in the state then you don't have to file a return.
The...
Put your TX address on your Federal return.
Get a TX driver's license.
Intend to reside in TX indefinitely.
For any LA source income you would need to file a non-resident return.
You'll have to file a part year resident return for the year you move away from LA to TX.
Spend less than 6 months out of the year in LA.
If you don't have any income produced in LA and you don't reside in the state then you don't have to file a return.
The...
Q: I pay child support and mortgage support in PA. How much can I itemize on taxes of the marital home?
D. Mathew Blackburn's answer
Child support is not deductible regardless of what its spent on.
I've never heard of mortgage support before, but there's no deduction for it.
If you mean that you pay the mortgage directly to the bank then you can deduct the interest for the amount you pay on Sch A. It's a good idea to discuss this with the other individuals on the mortgage who make payments so you don't over or under deduct the applicable amount.
Child support is not deductible regardless of what its spent on.
I've never heard of mortgage support before, but there's no deduction for it.
If you mean that you pay the mortgage directly to the bank then you can deduct the interest for the amount you pay on Sch A. It's a good idea to discuss this with the other individuals on the mortgage who make payments so you don't over or under deduct the applicable amount.
Q: Does investment firm have to refund withholding tax that was withheld in error?
D. Mathew Blackburn's answer
When you file your personal return you add the withheld tax as a credit which will be applied to tax due or refunded.
The investment firm doesn't have the money they sent it to the IRS.
When you file your personal return you add the withheld tax as a credit which will be applied to tax due or refunded.
The investment firm doesn't have the money they sent it to the IRS.
Q: the word income means profet and if only corporations can make a profit so i have to show 0 income and never pay tax
D. Mathew Blackburn's answer
Your premise is faulty.
Income does not only mean profit, it's not true that only corporations can make profits.
Falsifying tax return documents is a felony and you'll end up owing way more and possibly in prison.
If you want to take that risk it's your choice, but don't pretend you've figured out a technicality.
Your premise is faulty.
Income does not only mean profit, it's not true that only corporations can make profits.
Falsifying tax return documents is a felony and you'll end up owing way more and possibly in prison.
If you want to take that risk it's your choice, but don't pretend you've figured out a technicality.
Q: I got a letter from the IRS saying I have to return the earned income credit. We have joint custody but I have him more
D. Mathew Blackburn's answer
File an appeal and present your evidence. Just remember the IRS rules and your state custody laws are not the same.
File an appeal and present your evidence. Just remember the IRS rules and your state custody laws are not the same.
Q: i purchased a condo which I now rent and want to sell it to buy a house to live in. Do I have to pay capitol gains tax
D. Mathew Blackburn's answer
Yes. It's a business asset so the net gains would be taxed at long-term capital gains rates.
You can't use the like kind exchange rules to go from rental to personal.
Yes. It's a business asset so the net gains would be taxed at long-term capital gains rates.
You can't use the like kind exchange rules to go from rental to personal.
Q: which state in the USA has No TAX or rather low tax rates for entrepreneurs /businessmen providing employment
D. Mathew Blackburn's answer
None, every state has some tax. Income tax, employment tax, franchise tax, gross receipts tax, modified business tax, etc...
None, every state has some tax. Income tax, employment tax, franchise tax, gross receipts tax, modified business tax, etc...
Q: if i was paid a 1099 from my s corp, do i put that on line 7 (compensation of officers) on 1120s?
Q: Do I have to pay taxes if I invest the money earned in a rental property into my primary residence?
D. Mathew Blackburn's answer
Yes, money earned through rents or through the sale of the property are both taxable and putting that money into a private residence is not an exemption.
Yes, money earned through rents or through the sale of the property are both taxable and putting that money into a private residence is not an exemption.
Q: Help with the calculation
D. Mathew Blackburn's answer
Distributions from S-corps don't go on the 1040, just the net income.
Also, S-corp income goes on the Sch E not the Sch C.
Distributions go on the K-1 and adjusts your basis. They don't affect income except for very limited circumstances.
I'd suggest you find a professional if you're running an S-corp it's worth it.
Distributions from S-corps don't go on the 1040, just the net income.
Also, S-corp income goes on the Sch E not the Sch C.
Distributions go on the K-1 and adjusts your basis. They don't affect income except for very limited circumstances.
I'd suggest you find a professional if you're running an S-corp it's worth it.
Q: I had over 10K dollars in discharged credit card debt this year? Is that counted as income that is taxed in PA?
D. Mathew Blackburn's answer
Yes, discharged debt is reported on Form 1099-C and is taxable to the recipient. There is an exemption for insolvency but you'd have to run the worksheets from IRS.gov.
Yes, discharged debt is reported on Form 1099-C and is taxable to the recipient. There is an exemption for insolvency but you'd have to run the worksheets from IRS.gov.
Q: i made 8k on my s-corp and i took that money out and put it into my disregarded llc how would i have to report it
D. Mathew Blackburn's answer
You would file an 1120S for the S-corp income of $8k, issue a k-1 to yourself showing box 1: $8,000; Box 17: D $8,000 for the distribution to yourself.
Then record an $8,000 capital contribution to your LLC.
You would file an 1120S for the S-corp income of $8k, issue a k-1 to yourself showing box 1: $8,000; Box 17: D $8,000 for the distribution to yourself.
Then record an $8,000 capital contribution to your LLC.
Q: Is there a way to determine slot machine wins within a session rather than reporting $1,000 wins on w-2g to IRS?
D. Mathew Blackburn's answer
You have to report the W-2gs and reduce the amount of the winnings by your losses.
You cannot take those losses against any other income.
You have to report the W-2gs and reduce the amount of the winnings by your losses.
You cannot take those losses against any other income.
Q: Which state do I pay my state taxes too?
D. Mathew Blackburn's answer
You're going to have to determine in which states you have an income tax nexus.
New York you will have nexus because you're organized there. Next step is to determine the amount of income allocable to New York.
You likely have nexus in Mass. due to a physical place of business that you maintain.
If you did not operate your business in NJ you likely do not have nexus.
Once the business side is figured out you'll have to determine that same for personal taxes....
You're going to have to determine in which states you have an income tax nexus.
New York you will have nexus because you're organized there. Next step is to determine the amount of income allocable to New York.
You likely have nexus in Mass. due to a physical place of business that you maintain.
If you did not operate your business in NJ you likely do not have nexus.
Once the business side is figured out you'll have to determine that same for personal taxes....
Q: i have an s corp and i didnt pay myself a w2 in 2018? what do i do acn i pay myself a 1099?
1 Answer
| Asked
in
Tax Law, Business Formation and Business Law
for
New York
on
Answered on Feb 22, 2019
Answered on Feb 22, 2019
D. Mathew Blackburn's answer
If you didn't pay wages you can't issue a W-2.
A 1099 does not solve the problem and creates self-employment tax.
Make an estimated tax payment on IRS.gov or EFTPS.gov.
If you didn't pay wages you can't issue a W-2.
A 1099 does not solve the problem and creates self-employment tax.
Make an estimated tax payment on IRS.gov or EFTPS.gov.
Q: I just submitted my 2018 tax return yesterday. I forgot to add a 250 dollar 1099 misc amount in the return
D. Mathew Blackburn's answer
If you amend and pay the difference you can resolve it now.
If you wait for a letter from the IRS there will be interest and penalties.
You should also calculate the tax that would be owed so you know what you're looking at as far as payment interest, and penalties.
If you amend and pay the difference you can resolve it now.
If you wait for a letter from the IRS there will be interest and penalties.
You should also calculate the tax that would be owed so you know what you're looking at as far as payment interest, and penalties.
Q: Would a person be trespassing if he or she was invited in by stenter of a private property with no trespassing signs pos
D. Mathew Blackburn's answer
What is a stenter?
This is the only definition I could find:
A stenter is a machine for drying cloth, in which sheets for drying are held by the edges.
What is a stenter?
This is the only definition I could find:
A stenter is a machine for drying cloth, in which sheets for drying are held by the edges.
Q: Cash "distribution" to beneficiary while grantor of living trust is still alive
D. Mathew Blackburn's answer
Assuming it's revocable the gift occurs as if there was no trust. Reduced by $15k for annual exemption and then reduces lifetime exemption of grantor.
If it's irrevocable I'd need more information.
Assuming it's revocable the gift occurs as if there was no trust. Reduced by $15k for annual exemption and then reduces lifetime exemption of grantor.
If it's irrevocable I'd need more information.
Q: My wife won a settlement from a lawsuit involving a wire mesh for a bladder sling. Do we have taxes to pay on it?
D. Mathew Blackburn's answer
It depends on what the damages were awarded for. Mental and physical pain and suffering are not taxable, most other awards are taxable. Yours may be a combination of different award types. You'll need to consult a tax professional and let them review the court documents to get a definitive answer.
It depends on what the damages were awarded for. Mental and physical pain and suffering are not taxable, most other awards are taxable. Yours may be a combination of different award types. You'll need to consult a tax professional and let them review the court documents to get a definitive answer.
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