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I am retired and want to close out my small LLC based in Pennsylvania if necessary. I have no remaining liabilities or assets, and I have already filed the final tax returns for the LLC. How do I complete the process of closing or determining if closure is necessary for the LLC?
answered on Apr 19, 2025
This is not a site to help do-it-yourselfers do it themselves. To close out an LLC there is an abundance of forms to be filled out and filing fees to be paid. Call an attorney in your area for help.
I have a 401(k) retirement plan through a company, and I was previously convicted of embezzlement but am now out of jail. I continue to receive quarterly statements and pay restitution. Are there potential legal consequences if I attempt to cash in my 401(k), considering there might be early... View More 
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answered on Apr 16, 2025
If there is no court order, restitution agreement, or garnishment specifically restricting access to your 401(k), then you can typically access the funds—subject to tax and early withdrawal penalties. A past criminal conviction, including embezzlement, does not by itself disqualify you from... View More
I am currently going through a divorce, and my spouse plans to withdraw funds from my 401(k) to pay for her half of our house. Does that money need to be reinvested to avoid tax penalties?
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answered on Apr 12, 2025
In a divorce, funds from a 401(k) can be transferred to a spouse without triggering taxes or penalties, but it must be done through a Qualified Domestic Relations Order (QDRO). If your spouse plans to withdraw money directly from the 401(k) instead of rolling it into her own retirement account or... View More
I have a newly established LLC in Pennsylvania, which I registered using a virtual address. The business is still in its early stages and hasn't made any money yet. For tax filing purposes, should I use the virtual address I registered the business with, or my actual home address?... View More
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answered on Apr 12, 2025
Yes, you can use a virtual address for your Pennsylvania LLC's registration and tax filings, provided it meets certain criteria. The address must be a physical street address—not a P.O. Box—and should be capable of receiving official correspondence. This is essential for both your... View More
I'm an F-1 student currently residing in Pennsylvania. In 2024, my gross winnings from online gambling apps playing blackjack, roulette, slots, etc., totaled around $17,000, with wagers around $16,000, resulting in a net income of less than $1,000. The apps did not generate a tax document for... View More
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answered on Apr 12, 2025
As an F-1 student in Pennsylvania, you are still subject to U.S. tax laws on your income, including winnings from online gambling. Even though the gambling apps did not issue a tax document, you are still required to report the winnings on your tax return. Since your net income from gambling is... View More
Our father passed away and left his three children equal shares of his traditional IRA. At the end of the month some residuals were paid into the original IRA which were then distributed into my inherited IRA. I would like to transfer 1/3 of the residuals to each of my siblings to keep things... View More
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answered on Feb 5, 2025
It does not make sense the the custodian directed the main distribution in thirds but the “residuals” all to you. The residuals should have gone out in thirds too. Make the custodian go in and fix that.
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answered on Feb 8, 2025
No, the sheriff or deputy does not always have to personally serve a homeowner with notice of a tax upset sale. The laws on tax sales vary by state, but in many cases, notice can be given through other means, such as certified mail, posting on the property, or publication in a newspaper. The key... View More
I recently added my card to my xbox for an online purchase and while purchasing there was no sales tax. In the state of pennsylvania, online sales tax charges you 6% and it does charge me on my playstation not my xbox. I made sure all my information was correct and it was. I’m wondering if I get... View More
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answered on Jan 28, 2025
You don’t need to worry about getting in trouble for not being charged sales tax on your Xbox purchase. Sales tax collection is the responsibility of the seller, not the buyer. In this case, Microsoft is the one responsible for ensuring taxes are applied correctly, based on your state’s tax... View More
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answered on Jan 10, 2025
Making money in the stock market alone typically does not qualify you as self-employed for tax purposes. The IRS considers trading activity as investment income unless you meet specific criteria to be classified as a trader in securities, which requires frequent, regular, and continuous trading as... View More
I am adding my daughter's name to my deed with right of survivorship. We have a draft of a special warranty deed with right of survivorship and I want to know if there is specific language that should be included in the deed to show she is my child in order to be exempt from the Pennsylvania... View More
answered on Nov 20, 2024
I do not know all the facts in your situation but before you proceed with adding your daughter to the title of this deed, you should consider the potential that doing so could reduce the benefit of stepped-up basis in calculation of capital gain tax if the house is sold in the future. The... View More
I have a contract with my employer.Initially I was issued a 1099 but my CPA advised me that I can not be 1099 any more and we switched to W-2. We did not sign a new contract. However, for years the employer issued me W-2 withheld my taxes and paid their portion of taxes as well. Now, as I am... View More
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answered on Oct 18, 2024
It’s important to understand that classification between a W-2 employee and an independent contractor is based on the nature of your working relationship, not just the paperwork. Since your employer issued W-2 forms for several years, withheld taxes, and paid their portion, these actions... View More
I have a call center for booking appointments, for added motivation I want to do a monthly contest, for x amount of appointments scheduled they get a grab out of a cash box containing 20s, 50s, and a 100 dollar bill. The whole strategy around it is cash in hand and not waiting for a bonus on... View More
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answered on Oct 11, 2024
Paying employees cash incentives without going through payroll can lead to several legal and tax issues. Even small bonuses or rewards are considered taxable income and should be reported accordingly. Failing to process these payments through payroll might result in penalties for both you and your... View More
It seems the Pennsylvania revenue only taxes 8 type of income excluding commonly recognized retirement benefits as per FAQ
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answered on Aug 17, 2024
In Pennsylvania, personal income tax applies to eight specific categories of income, and the state's tax law typically excludes common retirement benefits from taxation. This generally includes foreign pensions if they are considered retirement income. However, to qualify for exclusion, the... View More
We are elated to help family and get the extra money, but we are wondering how to keep as much of it away from the IRS as possible.
This is not a typical surrogacy. For one, it's family. Secondly, the amount of money my wife will be given will only be $850 a month for 12 months. What... View More
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answered on Aug 15, 2024
Since the surrogacy payment is not formal income, there's flexibility in how you handle it. If you can categorize the payments as a "gift" from your wife's cousin, it might not be subject to income tax. The IRS allows individuals to give up to $17,000 per year (as of 2024) to... View More
Disaster declaration FEMA-4618-DR-PA. Will IRS allow me to use the retrospective appraisal of principal residence to determine the FMV of the property immediately prior to the casualty loss? Determining a loss based on Safe Harbor methods available under Revenue Procedure 2018-08, 2018-2 I.R.B.... View More
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answered on Aug 10, 2024
Yes, you can use a retrospective appraisal to determine the fair market value (FMV) of your principal residence immediately before the casualty loss, especially when the property was sold before restoration. The IRS allows for this approach, particularly when other Safe Harbor methods under Revenue... View More
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answered on Aug 5, 2024
When your mom received the car as a gift from her father in Pennsylvania, there were no immediate tax consequences because gifts are not subject to income tax. However, Pennsylvania does impose an inheritance tax on the transfer of property from a deceased person to their heirs.
Since your... View More
If assets in my will shall pass to a minor and I have named a guardian in the will, must the guardian be approved and monitored by the court?
On the other hand, if the assets are passed to a trustee (whom is also named), must the trustee be approved and monitored by the court?
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answered on Jul 24, 2024
If you've named a guardian in your will for a minor beneficiary, the court typically needs to approve this guardian to ensure they are fit to take on the responsibility. The court's approval process involves verifying the guardian's suitability and may include ongoing oversight to... View More
Hi, i am a trucking company owner and operate interstate and do have a interstate operating authority. Currently one of my truck broken down and getting repaired in state of Wyoming. I am trying to explain the the shop that i am exempt and taxes for parts and repairs needs to be waived. But they... View More
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answered on Jul 2, 2024
As a trucking company owner operating interstate with an interstate operating authority, you may indeed be eligible for certain tax exemptions in Wyoming, including exemptions on sales tax for parts and repairs. Here's how you can approach this situation:
1. Wyoming Tax Exemption for... View More
Just received notification of the extra earned income for 2023. It's affecting my retirement benefits because of it. Possible fraud and It involves missing money.
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answered on Jun 25, 2024
I understand you're concerned about extra earned income being reported for 2023 that's affecting your retirement benefits, despite not having any W-2 or other documentation of this income. This is indeed a serious situation that could potentially involve fraud. Here's how I'd... View More
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