You may be subject to GILTI if: U.S. Shareholder – United States Person (citizens, residents, domestic entities) owning at least 10%, directly or indirectly, of the foreign corporation’s voting stock or value (Prior toTCJA only consideration was voting stock). Controlled Foreign Corporation (CFC) – any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders on any day during a given year. […]
Read More… from GILTI – be careful – international investments
2018 Form 1040 U.S. Individual Income Tax Returns that have an S Corporation K-1 are required to check a box on line 28 of Schedule E to attach a basis computation. This applies to corporations reporting a loss, stock disposal, receive a loan repayment or DISTRIBUTION! […]
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 […]
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 […]
MUCH CONFUSION NOW! In general the new tax law allows self-employed and owners of pass-through entities (partnerships and S Corps) to deduct 20% of “qualified business income“. The law is COMPLEX with limitations, exceptions and undefined terms. Needs to define “qualified business income” more clearly. Specified service entities are subject to high income limitations. There […]
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. […]
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 […]
Optional standard mileage rates for business use of a vehicle will go down in 2016, the IRS announced on Thursday (Notice 2016-1). For business use of a car, van, pickup truck, or panel truck, the rate for 2016 will be 54 cents per mile, compared with 57.5 cents in 2015. Taxpayers can use the optional standard mileage rates to […]
SEP IRA PROVISIONS A. SEPs are written plans that are 100% funded by the employer. Contributions vest immediately. Contributions can vary from year to year and are discretionary. B. Employees must be covered if they have: 1. Reached age 21 or over; 2. New – Earned at least $600 during 2015; and […]
2016 2015 2014 IRAs IRA Contribution Limit $5,500 $5,500 $5,500 IRA Catch-Up Contributions 1,000 1,000 1,000 IRA AGI Deduction Phase-out Starting at Joint Return 98,000 98,000 96,000 Single or Head of Household 61,000 61,000 60,000 SEP SEP Minimum Compensation 600 600 550 SEP Maximum Contribution 53,000 53,000 52,000 SEP Maximum Compensation 265,000 265,000 260,000 […]
Read More… from 2016, 2015 & 2014 IRA’s Simples SEP 410(k) 403(b) Profit-Share
