We have 5 kids and 20 years worth of all you can imagine from that and inherited items. We both work, I make over 100k. This thing I’ve been procrastinating to do is a ton of work but also fun and rewarding. I’m probably going to hit the 20k cash in threshold for PayPal to issue a 1099. I’ve... View More
The IRS has what’s considered a the hobby loss rules, which is essentially they will check to see whether you have entered into business with a profit motive. If you never make a profit and your intent is to tak the losses on your return, the IRS will consider what your doing a hobby and not an...View More
It depends on the type of business. If it is investment related, there is a good chance you would
Like to just be a sole proprietorship. However, if it is an active business with ordinary income, it is best to be an S-Corporation. This way you can control the self employment tax with it....View More
The IRS has 10 years to collect on any tax due from the date of the last assessment. For instance, if you filed in 2007 and they audited the return in 2009, making changes to the return and assessing a new balance, they would have until 2019 to collect the taxes because that is the new assessment...View More
When the IRS places a lien on an individual, it places a general lien on that individual which then is supposed to attach to all personal property that individual owns. If the house is owned by two unrelated individuals and you go to sell the house, the title company will not be allowed to clear...View More
You will have to pay taxes on the land that you sell if the value that you get for selling the property is larger than the value that you inherited the property at. When you inherit property, the estate tax takes care of the taxes due on the difference in value that the deceased individual holds...View More
The defendant payed a settlement to my mother's estate. The settlement states "No Releasee has ever admitted, and but rather each specifically denies, any allegation of wrongdoing. " The case was against a nursing home.
If the settlement is for pain and suffering, then the payment of that settlement is non-taxable. The only issue you would have as far as taxability of the funds that were then distributed to you through the estate would be if the distribution exceeded the exemption amount on the gift tax of 11.5...View More
You would pay the sales tax to the State of Texas. There are a lot of complex rules with online sales, but it typically depends on the level of sales that store/person has in the state on whether the State of Ark. can also collect sales tax.
I came back to my USA resident from living in Japan from June 2019 to a few days after Xmas 2019 at my son's resident and his family. I saw IRS deficiency letter inside my USA resident mail-box,I respond to IRS AND filed my court petition in Jan. 2020, the Tax Court comes up with a specific... View More
The issue is that you were probably receiving multiple letter prior to June of 2019 at that address and that is the address that the IRS has on file for you, which is probably the address you used to file the return. There are a couple of ways to change the outcome of missing the time period to...View More
Typically, the best way to separate the refunds attributed to your income from his income is to file a Married Filing Separate tax return. However, this usually affects the amount of refund you get overall because you miss out on some credits and deductions that you would otherwise qualify for...View More
This happened during the shutdown so I assume they hadn’t processed anything. I insisted that it had been settled. She just responded with “we will deduct it from the following 6 pay periods, if you want to speak to them go ahead”
Im currently receiving refund checks, but it’s... View More
When the IRS requests a wage garnishment from the employer, they are obligated to follow it or they will receive punishment. Even if your employer believed you, they will not be able to discontinue the wage garnishment without the IRS notifying them.
You could report this to the IRS if he is not reporting all the income he is making to the IRS for tax purposes. The IRS has a whistleblower program, where you can turn in individuals or businesses for evading taxes and take a percentage of whatever the IRS is going to collect from the taxpayer....View More
You would only go to court if you weren't able to agree on the audit determination through the initial audit or through the appeals process. Even then, if you were to petition the tax court, it is very unlikely that you would go all the way to the court for a trial.
You will not go to jail for filing your tax returns with an "honest" mistake on them. In order for you to serve time in prison for an incorrect tax return, the IRS would have to prove that you committed tax fraud. Tax fraud is only proven when the IRS can show that you INTENDED to...View More
If the awarded damages were the result of physical injury, then she will not have to pay any taxes related to the judgment award. The only time you will have to pay taxes on the judgment is if there is any part of the judgment that is related to non-physical type pain and suffering damages. (ie....View More
Yes, you will have to retain an attorney to file a complaint against the individual driving the other car. However, you will need to get the treatment needed as soon as possible and probably wait until treatment is done in order to know what the value of your case is before filing the Complaint.
We are almost finished building a home in the Monterey, CA area. My husband's job may force us to move out of the area within 6-9 months. If we make a gain on selling our home of $200k having only lived in it 6 months, with the tax exclusion for a move, how much in Capital Gains would we... View More
You will still be able to take the exemption from gain on the sale of a personal residence under certain circumstances. It's called the 50 mile rule. If the location of the new job is 50 miles or further away you will be able to take the exclusion of the 2-year rule and the entire...View More
two foreigners I mean non USA residents or citizens formed an LLC in the USA, managed by a manager third person non USA resident and citizen as well. they issued an international EIN for the LLC in order to open a Bank account outside the USA. For the first two years the LLC will not... View More
If the income is earned within the U.S., the taxpayers always have to file a US tax return to pay taxes on the income that they generate in the U.S. They may also have to file the income in the foreign country that they reside in, but they will likely get a credit for any income taxes that they...View More
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