Unanswered Tax Questions
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Taxes as a non-US resident
I have been looking into starting an LLC in the US, probably in either Wyoming or New Mexico. I want to know how my taxes would look like as a non-US resident operating the business from outside the country. My LLC would be selling a software for photography businesses. From some sources, I read that I would only be taxed on US-sourced income. For example, if I were to start the LLC in New Mexico and had customers all over the US, would I pay taxes for these customers? Would there be difference between customers in New Mexico and other states in the US? Would I have to pay taxes for any customers from Europe for example? Since my country has a tax treaty with the US, I can avoid being double-taxed as well? Thank you for your time
Asked Saturday, December 21, 2024 by Mohamed S.Sign in to Answer
standard deduction
As a senior with no major interest income I was glad when the sandard deduction was renewed Is it going to stay with Trump. Filing all those small interest claims was a nightmare
Asked Monday, December 16, 2024 by MICHAEL I.Sign in to Answer
Annual Return
Looking for a tax professional with expertise in filing annual returns for a foreign-owned disregarded LLC. Specifically need assistance with compliance for Form 5472, Form 1120, and related IRS requirements. Please share your services, fees, and required documentation.
Asked Friday, December 13, 2024 by Yatin K.Sign in to Answer
Closing an LLC and selling assets to one partner - what are the IRS tax implications?
How do I close an LLC that has never generated a profit and sell the primary asset to me as an individual? What are the IRS tax implications? A partner and I created an LLC to purchase and flip houses during COVID-19. We registered as an LLC in another state (with an S-corp election with the IRS) and bought our first fixer-upper house in 2021, intending to flip it. We made some material improvements and had some ongoing expenses which were capitalized and deducted from our tax returns using an 1120S, resulting in a loss each year for that LLC. This loss was passed to us on a K1, reducing each partner's taxes proportionately. To use round numbers, we purchased the house for $150k; we had expenses of $15k, $12k, and $10k in 2021-23. It was never put into service, so there is no depreciation. We will also not consider that the house improved in market value since this increase is minor. We will shut down the LLC after this one asset is sold or transferred to one of us. The IRS certainly has some rules about these asset transfers to avoid abuse, but it is unclear where to look. Could I sell the house to me from the LLC at the original price ($150k)? Or at the price of the house ($150k) plus the material improvements (let's say these are $20k) = $170k? Or for $1? Or another value that makes sense? What are the steps necessary?
Asked Thursday, December 12, 2024 by Christopher H.Sign in to Answer
Foreign Contractor Advice
Hello, I have worked with a foreign contractor on smaller projects under the $600 requirements for 1099-NEC. But recently I have been getting more work and want to bring this contractor on board with a more formal agreement and more long term projects. My questions involve what the tax ramifications are and if there's anything I need to fill out in regards to foreign contractors. Additional information: Resident State: Michigan Contractors country: Russia Industry: Vtuber Rigging (Highly specialized, and theres not many people in the USA or even the world that do this) Im open to hiring a CPA to help with this if this is more complex than what can be answered here.
Asked Wednesday, December 04, 2024 by Jason W.Sign in to Answer
Mom is my dependent
My mother moved in, in June and is my dependent. Should I update my W4 now? Can I claim her through June when I file early next year?
Asked Saturday, November 23, 2024 by Justin D.Sign in to Answer
Profit & Loss Statement
Cost of Goods, Business Loss Due to Crime Civi Suit
Asked Saturday, November 23, 2024 by PATRICIA J.Sign in to Answer
I am renting my property to a family member. I am renting this property below market value. Do I have to declare this as income?
I am renting my property to a family member. I am renting this property below market value. Do I have to declare this as income?
Asked Friday, November 22, 2024 by Paul Y.Sign in to Answer
Sale of business, owner financed, pay all tax upfront??
We are selling our business as a Membership Interest Sale (according to the attorney). We are seller financing - collecting a 20% down payment on Jan 1 2025 and will collect monthly payments for the following 6 years, amortized over 9.5 with a balloon payment due at the end. Our local CPA tells us that we will owe taxes in 2025 on the full sale price amount, even though we won't collect that money in 2025. Is this correct and/or is there a way to not have to pay so much up front? Sale price is 300k, down payment is 60k and he is telling us that the majority of that down payment will go straight to taxes. If it's helpful, we have structured it as 50k assets, 250k goodwill, but can change that in the documents that have yet to be signed..
Asked Friday, November 08, 2024 by Melissa C.Sign in to Answer
EIN update with IRS
Hello, I have formed single member LLC in Wyoming now i need to change it to multi member LLC. Please advise how to update EIN with IRS.
Asked Wednesday, November 06, 2024 by Aziz A.Sign in to Answer
