20
There is no gift tax in Canada. Neither the giver nor the receiver have to pay tax on a gift (unless it's from your employer or something similar). There are a number of rules around income attribution preventing couples from doing unauthorized income splitting, but none of them apply here.
You can pay whatever expenses of your wife's you like. You can pay ...
11
Owed tax on 50k is roughly zero after the child tax credit (note: you will actually owe some if you got those advance child tax credit checks in the mail) That’s why they’re telling her no withholding is needed. You didn’t put both kids (or have them put that for you, however that worked) so you’re getting the small withholding. That’s all fine so far.
What’...
10
In the United States a ride share driver is a part of the Gig economy. The IRS even has a Gig Economy Tax Center.
You will eventually find Pub 463. Travel, Gift, and Car Expenses.
It boils down to to options. a standard rate for every mile you drive for business, or calculating the actual expenses:
Actual car expenses include:
Depreciation
Licenses
Lease ...
9
How much taxes you'll owe really depends on a lot of things that go into your tax return, not necessarily just the wages. There's a nifty app on the IRS website that helps calculating the values to fill on the W4, you may want to use it.
What I find odd is that the withholding differs between the two of you even though you seem to imply that you filled W4 ...
6
Taxes paid by shareholders would not change the impact of the dividend payment on the price of the stock because it doesn't affect the financial position of the company.
Differing tax rates on dividends might theoretically impact how attractive a dividend paying company might be, and hence the price. However, that impact has nothing to do with how much the ...
5
Here is a page that gives an overview on letting homes in the UK.
Your rental income counts as income and you have to pay taxes on it, and possibly National Insurance. However you can deduct some of the expenses you incur as part of letting the property, and pay tax only on the profit.
Quoting the above:
Allowable expenses are things you need to spend money ...
3
Your choice whether you operate on a cash basis or accrual basis. Default is cash basis.
IRS Tax topic 414
Most individuals operate on a cash basis, which means they count their rental income as income when they actually or constructively receive it, and deduct their expenses when they pay them
You should review if you had control to direct the money at ...
3
You can request refund for up to 3 years after the initial tax return was due. For the year 2018 it was due in April 2019 - the 3-year period will pass in April.
Generally, after the three-year window closes, the IRS can neither send a refund for the specific tax year. nor apply any credits, including overpayments of estimated or withholding taxes, to ...
2
"Long Term Capital Gain (STT not paid and booked profit is less than double of Index Profit)" sounds cryptic but actually it helps you decide between B2 and B3.Let me explain. You can either pay 10% of booked profit (selling proceed - cost of acquisition) or pay 20% of index profit (selling proceed - cost of acquisition with indexation). Let us say ...
2
This isn't foolproof, but from Publication 4491 (Rev. 10-2021), page 122:
What is the basis of stock?
Basis
In order to compute gain or loss on a sale, taxpayers must provide their basis in the sold property.
The basis of property is usually its cost.
If taxpayers need help determining their basis and do not have the original purchase documents, refer
them ...
2
Capital gains are not earned income. Short term capital gains are taxed at the same rate as earned income, but it doesn't magically convert passive income into active. Earned income is defined in IRC Sec 32(c)(2):
(2) Earned income
(A) The term “earned income” means—
(i) wages, salaries, tips, and other employee compensation, but only if such amounts are ...
2
You have a complicated situation. Lets ignore the Japan situation for a second.
I work for a company based in NY, who pay my salary into a US bank
account.
...all my work is done remotely ...
The address in my company HR records is a PO Box in New Jersey.
However, I have never been to NJ, and certainly none of my work is
performed there. The company knows ...
2
All transactions inside the IRA are without tax relevance. You can buy and sell as much as you want, you never owe taxes (and never get deductions).
Taxes only apply when money moves out of the IRA, be it into the Roth or into your pocket. At that time, the full amount is considered taxable income.
Yes, it is a good idea to convert to Roth at a low price - ...
2
Technically you can. You'll need to satisfy the "exclusive use" requirements (and for storage there are some specific details). See pub 587 for details. In any case a "separately identifiable" space is a requirement you'd need to meet.
Whether it is a good idea or not is a separate question.
1
It's more of a legal question than a tax question. The IRS doesn't care about your bank accounts, it cares about your income (the R stands for Revenue).
In order to protect yourself from piercing the corporate veil of the LLC, you have to ensure to treat is as a completely separate legal (not tax) entity from yourself, and that includes having separate bank ...
1
This can be a good practice question for your spouse (taxes are covered in the REG part of the CPA exam).
Generally, education expenses are not deductible. Qualified education expenses may lead to credits, but these generally refer to a college tuition, not CPA exam training. Read here about qualifying education expenses.
1
I would only pay taxes on an increase in value, correct?
You'll pay taxes (and possibly penalties) on whatever money is taken out of the IRA.
Note that you can't typically move "stock" between IRA accounts - only cash. You'd get the same effect by selling the stock in your IRA, doing a rollover (or just contributing) in that amount to your Roth, ...
1
Some countries have a double tax agreement with the UK - an example is France (even post Brexit).
In France, you must declare all your world wide income (and the same will apply in many other countries too) but in view of the double taxation agreement, you will not pay French tax on the rental income from your property in Scotland. It will be declared in a ...
1
Box 16 is earnings attributed to the state. They filled it correctly, based on the facts you've presented. You told your employer you live in NJ, and they filled the W2 based on that information.
The reason those boxes exist is because states may define "wages" differently and what's excluded from them differently. For example, NJ doesn't allow ...
1
You are conflating two issues.
Share price is reduced by the exact amount of the dividend on the ex-dividend date before trading resumes that day.
What happens when trading resumes is a separate and subsequent issue. Any factor (such as dividend taxation) that induces traders to either buy or to sell shares will result in share price change of more or less ...
1
The effective tax rate on your overtime pay will not be the same as the effective tax rate on your basic pay because you normally get some tax free allowance. If you are paying any tax on your basic pay, then obviously this allowance has been used up and hence you will pay tax on all of your overtime pay. Something similar applies with National Insurance.
So ...
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