Unanswered Tax Questions

Investment and Finance

Interest income from a CD - Cash or Accrual accounting?

If I open a standard 1 year bank CD on 8/20/2025, and it matures on 8/19/2026, with interest paid *only* at maturity. The bank however compunds the interest monthly and "credits" it to the balance every month. But I will not actually receive any interest in hand until maturity. Contract is clear - if I close the CD on 5/8/2026, zero interest will be paid, and I'll only get principal back. So is income tax due on 4 mths of interest "credited" in 2025? Or is all 12 mth of interest taxed in 2026?

This answer is provided for convenience only and is not tax advice. It is important that you speak to a CPA about your individual tax situation.

Business Formation

LLC, Corporation, or SCorp

Im running a small home business. I make crafts to sell on etsy and am making about 15K per year in additional income. My question is at this volume, does it make any sense to form an LLC, Corporation, or Scorp for my side hussle?

This answer is provided for convenience only and is not tax advice. It is important that you speak to a CPA about your individual tax situation.

Business Formation

LLC EIN Question

Hello, I already operate a sole prop business, and I am looking to either open a new LLC or turn this into LCC. Will I be getting a new EIN for the new LLC? It will be single member LCC. Sincerely,

Tax Filing Tips

LLC is active but won't generate revenue. Do I file for taxes?

I'm a Canadian resident. I registered an LLC last year in Washington. The LLC is in active status but does not operate and won't generate any revenue. Do I still need to file with IRS?

Family Issues

Tax-Free Gift

How can I transfer the title to a second home to my child tax-free? It is valued around $200,000 and no other large gift has ever been given. The property is in Texas.

Retirement

Rule of 55

Do I need to wait until my 55th birthday to use the Rule of 55? Is it required to pull money out of the 401k, even if I don't need it?

Tax Forms

Foreign owned US based LLC funding

Our LLC is incorporated in the state of Wyoming and the members are based in India. The members are transferring funds to the LLC, however, it expected 2-3 months for the process to complete. As a supplier payment is coming up, I want to check if a US-based relative of the members can pay the supplier using their credit card? Members are ok to record this as a gift and the donor does not expect the funds to be returned to them. I wanted to understand what are the tax and book-keeping considerations and if this would be a recommended approach?

Business Formation

LLC

Hello, I was gathering information about forming an LLC and I read that for tax propose is better to have it in Delaware or Wyoming but I live in Massachusetts and I want to make sure that I will not be taxed twice. I will have an 100% online business selling classes for the state in different states with no US employees or physical location so its just me working from home. Is it convenient for me to have my LLC in Delaware or Wyoming ? I'm trying to make sure I don't make any mistake before register my LLC. Looking forward to hear from you soon. Thank you very much!

Business Formation

What LLC would be best for me

I’m a day trader who trades BTC in the market. It’s only me who operates the trading orders. What LLC would suite me best. Regular LLC, DAO LLC, S-corp

Personal Taxes

Do I owe Ga taxes, while living in TN?

If I am employed in GA but live in TN, will I owe GA state taxes? If so, will I be able to get a refund/credit when I file my taxes for the previous year?