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Hi Laura-

This is not a simple question but I will give you the basics. However, I recommend that you get further advice beyond here. In general, if you have a rental property in the US, you will need to file as a non-resident. Florida does not have a state income tax but you would need to research whether they have any Franchise Taxes or Lodging Taxes that your property would be subject to. Hope this is helpful. Jackie

Hi Christopher-

I recommend claiming married filing jointly with two jobs only and no dependent. Then you need to do a tax projection to see if you are having enough withheld and to see if your wife is making adequate quarterly estimated payments.

HI Kevin!

I always recommend starting off as an LLC because the default tax status for a single member LLC is a sole proprietorship. An LLC is a legal entity, then tax status is secondary. The reason to start off as an LLC is ease of transition to partnership or S Corp should your needs change.

Hi Sirish-

Generally states do not tax non-resident business revenues unless your sales values exceed a certain amount or your transaction value exceeds a certain amount. Each state will vary in their filing requirements. If you would like to do some consulting with me on this, let me know and I can advise you on next steps! Thanks, Jackie

If the decedent owned 200% of the house before the date of death, then the basis of the house will be stepped up to fair market value on the date of death. If the house was sold within a couple of months of the death, then that value can generally be used as the step up value even without the alternative valuation date. In other words, the basis is the selling price of the house. If the house was used for personal purposes, then there will be a capital loss due to the expenses of the sale, but it will be disallowed under 26 U.S. Code § 165 (c).

Hi Marcus,

Choosing the appropriate legal entity depends on many factors including the type of business, types of services, future operational expectations, etc.  Most people that are starting a business will either choose to be a Sole Proprietor or and LLC; however, in some circumstances, starting as an S-Corp or C-Corp make the most sense.  If your business has some risk that you would like to separate from your personal finances, you may want to start out as an LLC.

To answer the question based on your current situation, since your business has zero income and expenses, there will be no tax impact since there will be nothing being passed on to you to be taxed. 

Paul,

I understand your concerns.  Since you were married I am sure she has all of your sensitive information from tax returns you filed in the past. 

I don't see the need to provide her with the 1095A if your divorce decree indicates you are covering the insurance for both of your children.  I don't understand why she would be requesting this information from you as she would be filing her tax returns.

I hope this helps,

Jeanne Adams, CPA

Firestone, CO

Amy, You will need to take a look at the Hobby Law Rules 1st.  If you reported losses for 3 out of the last 5 years for your businesses, the IRS will consider this a hobby and disallow any deductions.  They may send you correspondence regarding this as well.

Given the above information, you could report both of your incomes on a Schedule C and show a profit with each of your Schedule C's. 

I hope this helps,

Jeanne Adams CPA

Firestone, CO 80504

How you heard about me?

Kiara, both of you will file Single for 2023 since you did not get married until January 4, 2024.

Jeanne M Adams, CPA

Firestone, CO 80504