Unanswered Tax Questions
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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
Taxes return
I have a business license, I run my own business through Amazon.com as a seller, and this year I have been breaking even on my sales and advertising cost most of the year. Would I be able to to deduct that advertising cost for a return?
Asked Tuesday, October 29, 2024 by Jonas Q.Sign in to Answer
Closing C-Corp with IRS
Hello, Need Help Closing a C-Corporation with the IRS. Tax Details: • Formation: 2012 • Filed Tax Returns & Paid Taxes: 2012, 2013 • No Tax Returns Filed: 2014 to 2023 • Business Activity: No transactions from 2014 to 2023 • State Status: o Administrative Dissolution: 2017 o Formal Dissolution Planned: 2024 How to properly close your C-Corporation with the IRS by fulfilling all federal tax obligations, including filing all required tax returns and forms, and addressing any potential penalties?
Asked Wednesday, October 23, 2024 by DEVENDRA S.Sign in to Answer
Can a person on H4 EAD who is present in US from the past 10yrs can elect LLC as Scorp?
I'm current on H4 EAD and have a small business and residing in US from past 5 yrs. As I'm a non citizen/green card holder, i will be considered as a Non resident alien but I meet the substantial presence test. So in that case, I can elect my LLC as S Corp?
Asked Thursday, October 17, 2024 by Raghu C.Sign in to Answer
Prop trading firm
I tried getting into trading through a prop firm and it didn't work out for me. I invested about 4900 between subscriptions and tools and would like to write these off as a loss. The prop firm company normally issues a 1099misc for those that receive income however, I never received a positive income and wasn't issued a 1099. I typically file my own taxes using an online tax software and would like to get advice on how to report this loss on my taxes. Thank you for taking the time to read and assist. It is greatly appreciated.
Asked Tuesday, October 15, 2024 by Fred L.Sign in to Answer
Eligibility for Energy Efficient Home Improvement Credit?
I own House A, and lived there as my primary residence from the start of 2023 through late October 2023, at which point I moved into House B. I also rented out at (a) room(s) in House A throughout 2023, meaning I had one or two tenant-roommates while I was living there, and then it became pure rental in late October when I moved out. In December, I made an improvement to House A -- I had a new heat pump installed. That may make me eligible for the Residential Energy Efficient Property Credit: https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit To be eligible for the credit, the improvement has to be made to my "main home", which is "generally where you live most of the time" according to the IRS link above. This is the only further clarification I see: "In most cases, the home must be your primary residence (where you live the majority of the year). You can't claim the credit if you're a landlord or other property owner who doesn't live in the home." Since I lived in House A for the vast majority of the year, does that mean I can treat it as my "main home" for the whole of 2023 for the purpose of claiming the credit? Or does it have to be "where I live most of the time" at the specific moment I make the improvement?
Asked Tuesday, October 15, 2024 by Matthew P.Sign in to Answer
Starting day trading on h4 without ead
So I am on h4 visa situated in the USA without ead and I want to start day trading and ead takes 1-3 years, how do I start now, there must be some alternative like paying tax in my home country or anything else
Asked Wednesday, October 09, 2024 by Ryan K.Sign in to Answer
IRS 5472 form
Hi, Could you please shed some light into this question. If a European citizen formed a US LLC that has been inactive for a few years, which means it doesn't conduct any business in the US and doesn't have a bank account, does this company still have to fill out the IRS 5472 form? Does it have any other reporting obligations? Thank you very much
Asked Friday, October 04, 2024 by Peter B.Sign in to Answer
