States with NO SALES TAX Alaska Delaware Montana New Hampshire Oregon […]
Category: General
States with NO INCOME TAX
States with NO INCOME TAX Alaska Florida Nevada South Dakota Texas Washington Wyoming […]
GILTI Tax eff Jan 1st, 2018
GILTI (Global Intangible Low-Taxed Income) effective January 1, 2018 Form 8992 is used to disclose the calculation. It basically is your share of Controlled Foreign Corporation (CFC)** Income which, prior to 2018, was just disclosed on Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations). It was a Balance Sheet and Income […]
RMD Missed?
RMD (Required Minimum Distribution) if not timely made is subect to a 50% non-deductible penalty! YES, 50% If you can show cause (illness, bad advice, the broker/banker screwed up) and that you took steps to comply just follow the instructions on Form 5329 and attach a letter of explanation. The penalty will be due only if IRS denies […]
1099 Reporting Requirement
Any individual to whom you pay $600 or more in a calendar year should receive a 1099. If you pay MARY JONES INC…. that is not an individual so no 1099. If you pay MARY JONES, that would require a 1099. And, only businesses are required to generate the 1099. The home you rent out […]
Accountable vs Unaccountable Vehicle Plans
Two kinds of vehicle plans ACCOUNTABLE PLAN Employee hands employer expense report showing X business miles. Employer reimburses X for that amount up to the approved business mileage rate per mile for that year. Done. Employer gets the deduction. Employee is not taxed. UNACCOUNTABLE PLAN Employee receives X per month with no accounting to the […]
Canadian Pensions
U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. According to the IRS, special tax treatment applies to payments received from the Canadianpension, the Quebec pension plan, […]
Wanting to Move to a Foreign Country?
If you move but keep your citizenship, you must still report your worldwide income. You may be eligible for a Foreign Earned Income Exclusion and a Foreign Tax Credit for what tax is paid to the foreign country… but ALL US CITIZENS must report and maybe pay. The rules on reporting foreign bank accounts still apply. […]
Tax Code – How Big
Internal Revenue Code (IRC) was 26,300 pages in 1984. As of April, 2106 it is 74,608 pages… and if ever tried to read it you would know why they call it code! There were approximately 4,430 changes to the tax code from 2001 through 2010, an average of more than one a day, including an estimated 579 […]
Long Term Care Premiums in S Corps
Can you deduct Long Term Care Preimums the same as Health Insurance for the greater than 2% Shareholder. Answer is …. sort of…. The way the math works……. Let’s say LTC is $6,000 Age based LTC for age 61 to 70 is $3,900 Step 1: The S Corp deducts the entire $6k (even if the […]