Small Business

Laptop depreciation and recapture after 2018

Asked Tuesday, July 28, 2026 by Luke

From what I understand, laptops are not considered "listed property" anymore since 2018. If buying a laptop today (over $2500 outside of the de minimis safe harbor rule) that's used 80% time for business (self-employed consulting), I understand that it can be expensed 100% via bonus depreciation. The question is: if anytime in the next 5 years, personal use goes to 100%, does the laptop need to be recaptured? Must very detailed logs of usage and depreciation be kept for the 5 years?

Quick Answer:

Since the laptop is no longer "listed property" under Section 280F, the rules regarding recapture and recordkeeping are significantly more lenient. **Recapture:** If business use falls to 0% (100% pe...

Small Business

Conversion from C corp to single member LLC

Asked Saturday, July 25, 2026 by Izabella

I am planning to convert my C corporation into a single-member LLC. The business has not generated any income or had any financial activity so far this year. Could you please explain the legal and tax consequences, whether I will need a new EIN or final tax filings, and what additional steps I should take with the IRS, Florida agencies, banks, insurers, and other parties?

Quick Answer:

Converting a C-Corp to a single-member LLC is generally treated as a **taxable liquidation** under IRS Sections 331 and 336. Even with no activity this year, the corporation is treated as if it sold a...

Small Business

Double Taxation - UK & US

Asked Monday, March 16, 2026 by Hannah

Do we need to file quarterly tax returns in the U.S. if our company is UK-based? The only reason we created a U.S. LLC was to access the Klarna payment method, as they require a U.S. entity. Since our primary company is in the UK, filing taxes in both the UK and the U.S. could potentially result in double taxation for us.

Quick Answer:

Yes, a U.S. LLC generally has U.S. tax filing obligations, regardless of its ownership or the primary company's location. If the LLC is expected to generate U.S. taxable income, estimated income tax p...

Small Business

LLC Disregarded Entity

Asked Monday, December 29, 2025 by Ron

Filing business income (1099) and personal income(W2) When I contract work as a 1099, the payments will be routed to my business bank account and report tax as business income. However, I work one client as a W-2 employee. Paycheck will go to a personal bank account and file as personal income. Please let me know if this is appropriate for tax filing. Should I use my physical business address or mailing address for Tax filing?

Quick Answer:

Your approach to separating 1099 contract income and W-2 employee income for tax purposes is appropriate. Payments for 1099 work, routed to a business account and reported as

Small Business

I have less than 10,000 in revenue annually. How do I file my taxes?

Asked Tuesday, December 16, 2025 by J

I have less than $10,000 in business revenue annually. What do I need to consider regarding tax preparation?

Quick Answer:

For businesses with less than $10,000 in annual revenue, tax preparation primarily involves reporting your business income and deductible expenses. If operating as a sole proprietorship, this is typic...

Small Business

Single-member LLC

Asked Tuesday, September 16, 2025 by Deen

I have a single-member LLC (Deenil Groups LLC) that is registered neutral but I runs a transportation & tour business with, then makes income, can I use some of the money made from the income as a down payment for a condominium for business or house for business without getting into any tax problems? Or buy a vehicle for the business. What is the best way to do it? I will appreciate your response. Thank you!

Quick Answer:

Using business profits for a down payment on a condominium or vehicle for your single-member LLC (Deenil Groups LLC) is generally permissible, but careful record-keeping is crucial to avoid tax issues...

Small Business

Single-member LLC

Asked Tuesday, September 16, 2025 by Deen

I have a single-member LLC (Deenil Groups LLC) that is registered neutral but I runs a transportation & tour business with, then makes income, can I use some of the money made from the income as a down payment for a condominium or house without getting into any tax problems? Or buy a vehicle for the business. What is the best way to do it? I will appreciate your response. Thank you!

Quick Answer:

As a CPA, I must advise you to consult with a tax professional for personalized advice. However, I can offer some general guidance. Using LLC profits for a down payment on a personal residence is ge...

Small Business

Sole Prop vs LLC

Asked Friday, August 16, 2024 by Kevin

I'm starting a social media marketing business and want to start out with as little expense as possible. I would like to start as a sole proprietorship until I get off the ground and then convert to an LLC. I see little risk in having sole prop in this industry, but would like to add the protections an LLC provides as I grow and potentially add employees. Is the process of converting difficult? Should it coincide with a certain date, like the start of the next year? For reference I will be operating in Illinois. Thanks!

CPA Answer:

HI Kevin!

I always recommend starting off as an LLC because the default tax status for a single member LLC is a sole proprietorship. An LLC is a legal entity, then tax status is secondary. The reason to start off as an LLC is ease of transition to partnership or S Corp should your needs change.

Answer Provided by: Jackie Compton Jackie Compton

Small Business

Tax obligations for an Online Travel Agency in the United States

Asked Wednesday, July 17, 2024 by Sirish

Hi, we are starting a new travel agency. The home state of the Business is in the state of Nevada. We have also registered as out of state corporations in the state of California, Florida, Hawaii, Washington and IOWA as these states would need us to have a seller of travel license in order to enable customers from these places to book hotel accommodations on our website. However, we do not have any physical office in any state other than Nevada. I would like help to comply with the tax requirements that my company may have in the United States or will i have tax liability only in the state of Nevada.

CPA Answer:

Hi Sirish-

Generally states do not tax non-resident business revenues unless your sales values exceed a certain amount or your transaction value exceeds a certain amount. Each state will vary in their filing requirements. If you would like to do some consulting with me on this, let me know and I can advise you on next steps! Thanks, Jackie

Answer Provided by: Jackie Compton Jackie Compton