Unanswered Tax Questions

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Small Business

Buying another similar business; I have a quick question about the structure.

I'm days away from purchasing another small business. I would like to retain it's name (good customer awareness). Should I try and keep it a separate business? My current plan is to dissolve the new business (SVPC), and add it's name as a DBA my current business (FoaF). Any advice on the structure of a purchase like this. Is there another, better way to structure it?

Asked Thursday, July 27, 2023 by DENNIS C.
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Personal Taxes

Reporting Requirement of Gifts above Annual Limit in case of non-spouse joint donors

I am a US Green Card holder in the US and currently hold a savings account with a bank in Singapore. The account is held jointly with my mother who is a ''Non-Resident Not a US Citizen''. In Feb 2022, I received a Wire Transfer amount of USD 25,000 in that Singapore account. I then transferred the sum of USD 25,000 from my Singapore joint account to my US Bank account in Chicago which is held in my name jointly with my father ( who is Non-Resident, not a US citizen). Subsequently, in the same year, I withdrew the money from the US Bank Account. Question: a) Given that I am a holder in both the remitting account (Singapore) and receiving account (USA), I believe I am both the donor and donee, and hence the wire transfer is not considered a gift. Is this assessment correct or b) If the wire transfer is considered a Gift, then am I required to file a Gift Tax Return (Form 709) and also include this amount in the Tax for 2022 given that the sum of USD 25,000 is greater than the Annual Limit of USD 16,000, Or c) Given that the transfer is happening from a joint account, the gift amount attributable to me is only half of USD 25,000 i.e. USD 12,500. Since my share of USD 12,500 is less than the Annual Limit of USD 16,000, there is no gift tax reporting liability on my side To clarify further, the aggregate amount of funds I received from Non-Resident Alien during the 2022 tax year is less than USD 100,000 so there is no requirement to report under Form 3520

Asked Thursday, July 27, 2023 by PJ D.
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Personal Taxes

1033: Involuntary Conversion

My questions are related to 26 USC 1033 for involuntary conversions. I looked but could not find an answer. I hope someone here can help. 1. To utilize section 1033(a)(1) and (b)(2) to defer a tax burden, does the property that is being compulsory or involuntarily converted have to reside within the USA? 2. Also, can the converted property still qualify under this section if the property is being converted by a foreign national government? To provide some context, I am an individual (not a business) who has a property within Hong Kong. Earlier this year, the city government of Hong Kong sent a notice to inform property owners within an area the government is purchasing back all the properties within the stated area for the purpose of tearing down the existing buildings and redeveloping the area. The notice further stated that if the owners within the designated areas did not agree to sell their properties back within a certain time, the government would forcibly purchase the property within the next year. I own a condo within this area and feel like this falls within the 1033 provision. After the sale I want to take the proceeds and purchase another property within the city, but I want to make sure that I am complying with all tax obligations. Within section 1033, there was no indication that the properties had to be within the USA nor indication that only conversions by the USA or other state/municipal governments would apply. Any information would be helpful.

Asked Thursday, July 27, 2023 by Mike S.
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Business Formation

Do I really need a DBA or Series LLC?

Hi, I have recently formed a Wyoming LLC for the purpose of starting multiple e-commerce stores with unique brand names. And I am planning to maintain separate business bank accounts for each e-commerce store. Can I legally run multiple e-commerce stores with unique brand and domains names totally different from my company legal name under single LLC company without legal issues? Or do I absolutely require a DBA for each store, or should I form a Series LLC? Kindly advise the best option for me.

Asked Thursday, July 27, 2023 by Shameer K.
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Miscellaneous

No federal income tax removed from paycheck

I am filing my federal W4 married filing jointly at my new job. Since I have started, none of my paychecks have been having any federal income tax removed. I have looked at tax brackets and I see no reason why this would be. I am just trying to get this resolved and make sure come next tax season I will not be liable for a huge payment into my taxes. I have copies of my W4 and paystubs if needed. Thank you

Asked Wednesday, July 26, 2023 by Alexander D.
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Business Formation

Salary for Holding company and subsidiary

If I own a LLC taxed as S corp holding company, that wholly owns an LLC, but I do therapy services for the subsidiary. Which company would pay me? The subsidiary or Holding company that I need to have a salary for? If it's the Holding company, does the subsidiary pay the parent company for services provided?

Asked Wednesday, July 26, 2023 by Anthony C.
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Personal Taxes

Insurance

We received an insurance payment on a policy we did not use after 20 years. Why is this taxable

Asked Wednesday, July 26, 2023 by Cynthia A.
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Personal Taxes

Inheritance/ estate tax

I inherited a portion of a home from my grandparents. If the other parties wish to buy me out of my part, is that considered taxable income. I am in WA state.

Asked Wednesday, July 26, 2023 by justin p.
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Tax Forms

Form 9465

I'm filling out a form 9465 bcuz I owe $ from 2021 and I got the letter the other day. My question is on the form line 2 it says the name of my business, I don't own a business. I'm just trying to set up my payment plan. I owe 1831.00 and can pay 100.00 a month.

Asked Wednesday, July 26, 2023 by Ann D.
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Home Ownership

Capital Gains When Selling a Home

I am thinking about selling my house before the two mark. I don’t plan on making $150K when selling my house. I’m also starting a new job in a different time zone closer to where my new job is located. Will I pay any capital gains when selling my house?

Asked Wednesday, July 26, 2023 by Aaron W.
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