Questions tagged [taxes]
For any question related to taxes and not otherwise covered by a more specific tag such as income-tax, sales-tax, capital-gains-tax etc. When asking about taxes, please also specify a country tag such as united-states, canada, united-kingdom, etc.
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If my company is going to be acquired for $50m, how can I avoid high taxes?
Let’s say for example I have a company that is going to be acquired for $50m and I own half it as a cofounder.
How can I avoid a large tax hit?
I know someone who received $25m from an acquisition and ...
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Foreign student with unpaid taxes returning to the US - What are the risks?
In 2001 I was a foreign student from Haiti, I Studied in the States and my tuition was paid for by my grandfather, so I didn't apply for financial aid and no student loans.
After graduation I worked ...
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ETF Authorized Participants and the taxes they pay when they sell low cost basis securities on the market
It is known that:
When the price of an ETF is lower than its NAV (i.e. Net Asset Value, the value of underlying securities, per ETF share), the Authorized Participants essentially buy ETF shares from ...
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401k Contributions Guidance for Two-Member LLC in a Community Property State
We established an LLC at the beginning of this year, with just two members – my spouse and myself. We reside in a community property state and file our taxes jointly as a married couple.
Throughout ...
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Is Bitcoin taxable?
A few months age the SEC has regulated bitcoin as a commodity. Quick googling tells me than commodity wages are exempt from taxes and it looks like if a company can fully operate in bitcoin ...
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Canada GST/HST credit eligibility depends on last year's or current year's income?
The GST/HST credit is a non-taxable amount paid four times a year to individuals and families with low and modest incomes to help offset the goods and services tax/harmonized sales tax (GST/HST) that ...
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What is the difference between regular dividend and special dividend?
One implies ordinary income tax while the other is taxed according to capital gains tax, but how would you convince the IRS that your dividend payment is a special one and should be taxed at capital ...
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Taxes Related to CD with Primary and Secondary Account Holder
I visited a Bank of America branch and the representative told me that I can open a Certificate of Deposit account with them and have my mother, a nonresident alien, be the primary account holder ...
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Tax responsibilities for international dropshipping [closed]
I am thinking of starting an international dropshipping business, and I'm worried about the tax implications of selling into foreign territories, like the US, Canada, Europe, or Australia. I've found ...
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Declaring $50,000 cash deposit from parents in a foreign country
During the summer vacation in my home country, my parents gave me $50,000 USD in cash (they exchanged this cash several years ago from the bank by their savings) to support me buying a car. Recently (...
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What exactly are you taxed on as a US resident vs US non-resident? Is this guide correct?
Tax Guide
During the period of time that an individual is considered a US-resident for tax purposes:
All worldwide income is taxed by the IRS at the normal rates. (e.g. basically any source of income ...
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Can you sell shares before ex-dividend and buy back after, to replace 'dividend income' by 'capital gains'?
Note: this is the opposite direction than most sell/buy questions over dividend day.
Here is the situation: I have large losses from unrelated trading activity, and can only deduct 3000 per year from ...
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Will the money I owe that I am going to payback to my sibling be taxed?
I recently completed my masters in the US, and started a job which pays decent. During my masters, my brother who works in the US paid for most of my tuition fee which is around 40000. I am planning ...
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Tax on stock transaction and day trading
In EU countries like France and Belgium, each stock transaction is subject to a tax from 0.12% to 0.3%. That means that a day trader buying and selling all his assets the same day would pay up to 0.6% ...
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Is holding US stocks through a US broker enough to have to report to US taxes
I was never a US resident and I don't have a citizenship or green card.
However, I would like to invest via an American broker, simply because they have the best commissions.
I am not sure which US ...
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Am I considered a non-resident of California?
I need help in determining if I qualify as a non-resident in the state of California:
I physically work in an office in CA
It is a W2 job
My primary domicile is outside of CA
I spend more than half ...
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Qualifying for an HSA contribution
There are two basic criteria to check if your health insurance qualifies for HSA contributions. (There are details on the IRS website.)
Minimum annual deductible (single person): $1,500
Maximum ...
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Where do I find RIU codes and tax codes?
I am trying to make a wire transfer from an offshore bank to my bank in the United States. I am being asked for a RIU code and a tax code. Where do I find these codes?
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US Tax withholding on business expenditure paid for using Amazon gift cards
If I have to pay a US individual $1,000 fee for professional services, and i don't pay him in cash but instead give him an Amazon gift card for the same amount, will it be deductible under business ...
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Avoiding extra tax - UK
For the past 10 years I have been earning from an employed job, with all taxes paid before I receive my salary. (Around £60k)
I have recently started to do extra work for which I receive the payment ...
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Augusta Rule, 280a - Can I rent my primary residence to my business if I am a Renter on that property myself?
Heading says it all -
I rent my primary residence(I am a renter), and am wanting to rent it to my business (Scorp) for business meetings 14 days of the year. Does this still qualify for both the ...
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Avoiding penalties and interest on long-term capital gains taxes without paying estimated taxes
I have a question about tax penalties and interest
Suppose my total tax due was 30,000 last year, and all of that was due to employment.
Suppose this year I expect to have about the same 30,000 taxes ...
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Working around IRA contribution limits using options
Lets say I have a taxable brokerage account with $1k of shares for ABC. I'm reasonably sure ABC will go down over the short term but don't want to sell it so I buy puts.
But since I just opened a Roth ...
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Does an employer need to know his contractors'/employees' birthdate to correctly file taxes?
If so, then how to verify a birthday and what if a contractor or employee lies about his/her birthday?
Sometimes a payroll software will automatically do the taxes, but certain payroll software only ...
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Employer not sending corrected W-2. What can I do?
For USA tax year 2022: I got my W-2 via ADP in February 2023. It had a mistake and I requested a corrected version (W-2C) in March 2023. Tax filing was due in April 2023 so I filed an extension (...
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Can I include the costs incurred for adding landscaping to the cost basis of my house?
Although there is a $250,000 gain exclusion for those who qualify, it's probably a good idea to track costs beyond original purchase price to track a more accurate cost basis. I've read that expenses ...
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Are Meals part of expenses?
I drove from Pittsburg to Philly to meet with customers. I left my home at 6:00 A.M. and did not get back from Philly until 11:45 P.M. that night. I was very busy and all 3 of my meals were takeout ...
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Taxes for selling property in foreign country
I've been owning half of the house in Russia before I immigrated to the US and I recently inherited the 2nd part of it. Now I'm thinking to sell it.
Should I pay any taxes in the US if I sell it?
I'm ...
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Non Resident Alien with a W2 and a 1099B - What are the obligations here?
I worked in the United States between the 1st of January 2023 and April 15th 2023. In addition to salary I had some RSUs and my company would sell some of the RSUs to cover tax obligations. The broker ...
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Can I buy I-bonds with my tax refund, as a non-resident?
I want to own American I bonds, but I'm not a US citizen/resident so I don't have a SSN (I live in Canada). As such, I can't just create a TreasuryDirect account and buy I bonds there.
Here's my plan:
...
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IRA withdrawal for new construction home and 120-day rule
As per IRS Section 72(t)(2)(F) (paragraph (8)) one can withdraw up to $10,000 for a qualified first-time home purchase penalty-free. The withdrawn funds must be used within 120 days.
If one is buying ...
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Which REIT dividends are eligible for QBI deduction?
There seems to be a lot of conflicting information about this so I thought I would ask here.
I am wondering if all REIT dividends are eligible for QBI deduction. And by ALL, I literally mean ALL.
I ...
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Can an IRA contribution with after tax money be deductible?
I am trying to make an amendment for 2020 tax year. In December 2020 I contributed $6000 for Roth Ira and $6000 for traditional Ira (I did not know any better). I used after tax money in both ...
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Question about the specifics of the safe harbor rules for underpayment penalties
For the safe harbor rule for underpayment penalties, you don't have to pay a penalty if:
You expect your withholding and tax credits to be less than the smaller of:
a. 90% of the tax to be shown on ...
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Figuring out the tax basis of property inherited 15 years ago
In 2008 my father died. 15 years later I just sold the property that I inherited from him. Now I need to pay capital gains on that property, but what do I use as the tax basis?
I could just assume the ...
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(Canada) How does a trust help with tax burden?
My company is offering me share options. I'm trying to understand what the tax implications are.
My understanding is that as soon as I convert the options into shares, I must pay tax because the ...
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What legal dictionary does the CRA use for business and tax terminology?
I am currently looking for the technical definition used by Canada's Revenue Agency for these words:
Payment
Capital Debt Obligation
To determine whether payments made towards my margin loan in my ...
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Tax benefit of custodial brokerage account
If my understanding is correct, then the tax benefits of a custodial brokerage account are (in 2023):
Sheltering of up to $2200 of unearned income / year
Avoid gift taxes on gifts up to $15,000 / ...
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How to determine which dividends are qualified vs non-qualified when calculating quarterly estimated taxes?
I have enough dividend income that I need to pay quarterly estimated taxes. When I look at my monthly statements, I'm not seeing any indication of which dividends are qualified vs not, but I need to ...
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Need help understanding Estimated Tax payments and safe harbor rules
I have not worked for the first half of this year and have some modest dividend/interest income that would end up being less than $1000 in taxes by the end of the year, so I have not been paying any ...
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is the treasury bill portion of a bond fund subject to state/local taxes?
Assume we have some fund (like a money market fund) with x% of the capital in treasury bills. Treasury bills are not state or local taxed.
If I invest some capital into this fund, is my entire portion ...
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IRS publication 936 weirdness. Deductible home mortgage interest limits and zero-pay or cash-out refinance
There is a 750,000 home acquisition loan limit for deducting mortgage interest. This limit only applies to "home acquisition debt" (excludes the cash-out part). However this is used to ...
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Tax Implications of Forex Transactions when Changing Country of Residence
I have a somewhat complex tax question related to forex transactions and moving to a different country. Here's the scenario:
I'm a UK resident, and I sold GBP to buy USD in order to purchase American ...
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Selling shares of a publicly traded partnership?
I invest in individual stocks and some ETFs through a stockbroker. Last year, I bought less than $200 worth of shares in a company, which I did not realize was a publicly traded partnership until I ...
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Can a non-refundable tax credit be used to negate an early withdraw penalty from Traditional IRA?
I'm considering buying a new electric vehicle which would qualify for the US Federal Clean Vehicle Tax Credit.
In theory, I could be eligible for up to a $7500 tax credit.
My current paycheck tax ...
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Built a house on property. Florida residence when can we sell the property and avoid fed capital gains?
Sold primary house in 03/2021, and then bought land in 05/2021, address assigned same month. Lived on the property in RV. Built a house on the property. Florida residence, when can we sell the ...
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Income tax principles when moving countries
I am currently in Germany and moving from there to Singapore in April next year. I am a remote worker and continue to be paid by the same employer. After quite a lot of searching, I am quite confused ...
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Will there be any incoming & outgoing taxes on $40,000 money transfer from USA to India and possibly back from India to the US between siblings?
I am an Indian citizen and future UK postgraduate student (September 2023). To fund my studies and living expenses in the UK, I have applied to for a local government scholarship, the result of which ...
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Deducting mortgage zero-cost refinance points from taxes when using the money for home improvement NEXT year
I have refinanced a mortgage and paid for quite a lot of points. The refinance was zero-cost, so the points came from the increased loan amount. I used the money I saved due to zero-cost refinance to ...
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ongoing tax implications of 1031 exchange out of California
I'm considering a 1031 exchange of a rental property to a different property out of California.
I assume that I will owe tax to California if I sell the property after the 1031. But will I have to do ...
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