Unanswered Tax Questions

Nonresident Tax Issues

IRS tax filing (Form 1065)

Hello, My name is Obiora Obunike Umennaesie, I am not within the jurisdiction of the US. We just registered LLC on the 12th of January 2024 on Nonresident status. We are expected to file Form 1065 on the 15th of this month but unfortunately our scheduled business start date for 1st of February has been on hold. We do not have business activities going on yet business we are still working our facilities. Please, in order not to go against the regulations of the IRS, I need to know what we need to do. What Form do we need to file? Thank you in anticipations of your responses. Faithfully

Deductions and Write-Offs

Deducting Advisor Fees

I'm finding conflicting information about whether I can deduct my tax advisor fees on my IL tax return. I realize that after 2017 you can no longer do that FEDERALLY, but I am wondering about on my STATE return specifically. I called Turbotax and the rep chatted with a CPA who was finding conflicting information on this in her research. The Turbotax software has a section for IL that says "you can reduce your Illinois income by the amount of expenses used to maintain investments that are not subject to tax on your federal return, but are taxable in Illinois. Also, include expenses you couldn't deduct on your federal return because you took a federal credit related to those expenses." So if I paid a 1% fee to my financial advisor to manage a traditional IRA and a 1% fee to manage a separate roth IRA are those management fees deductible? If so is that total amount what I would enter in this section? Thank you!

Small Business

Passthrough LLC and mandated taxes Federal and State

I am trying to form a passthrough LLC and currently, I will be a single member of this company. If I get any customer who is will to pay some money for my consulting services, I want to charge my customer on this LLC, and take a salary from this company for my services. I want to know, what are the Federal and Florida State tax forms I have to submit, and when. Can I do them on my own, or do I need to hire experts like you? If I have to hire you, how much that would cost me. As on time, my company is not yet registered.

Small Business

What state should I incorporate a new business in?

I am based in Seattle, WA, but am opening an import/export business, planning to ship an existing product globally out of Guatemala. The product itself will never need to come in to/through the US, but I would like to be able to pay employees from the US and do other banking from the US. I am interested in advice on which US state to incorporate this new business in, given the different tax implications of all the different states. Thanks

Business Formation

Have I set up the correct business structure?

I have recently formed an LLC in Florida. I live in Arizona and she lives in New York. Our business will be providing travel and concierge services to clients across the country (not state specific). All the work will be doing will be conducted from our laptops and we have no physical address (we are remote). My question is in order to comply with florida llc regulations, do we need to register foreign LLC's in the states that we both live in. Or if we open a bank account and receive all invoice payments in florida, does this satisfy the requirements? Further, I am looking for a CPA that can support us with the business moving forward.

Tax Filing Tips

filing after a divorce

I was divorced in 2023 and have no income. We sold a home as part of the divorce. I purchased a home after the divorce. I need to know what it is that I must claim on my 2023 taxes. I do have some investment interest to claim.

Investment and Finance

De minimis tax rule for Treasury Bonds bought at discount

Hello, I know De Minimis rule applies for Municipal Bonds but does it also apply to Treasuries or Corporate Bonds that are bought at a discount below De Minimis? For example, 6 year 3.25% coupon treasury bought at 95.5, which is below 98.5 de minimis price. Would there be a capital gain tax on the appreciation from 95.5 to 100 at maturity or if sold prior? Thank you. Tim

Tax Filing Tips

I am a new business with no sales and no salary expense . I am also a non US resident. What are my tax requirements ?

Miscellaneous

Miscellaneous

Can we give the pastor of our church a monetary gift?

Credits

Can I Claim the Retirement Savers Credit if I was a High School Student

My son graduated High School in May 2023. He was 18 years old. He turned 19 in October 2023. He worked full time from July 2023 through December 2023. He did not attend any post secondary education beyond High School. His AGI was $18,590. He will file independently as a single taxpayer and will not be claimed as a dependent by anyone else. He did not contribute to a retirement account in 2023. He is planning to fund an IRA for 2023 before April 15, 2024. QUESTION 1 - Is he prohibited from claiming the Retirement Savers Credit since he attended High School for 5 months in 2023? QUESTION 2 -If he is not prohibited from claiming the Retirement Savers Credit -Can he contribute to a Roth IRA (as opposed to a Traditional IRA) for 2023 and still be eligible for the Retirement Savers Credit?