41
At the time of the sale, you can designate what shares you want sold. The IRS requires that your broker verifies that those specific shares were sold. The IRS calls this "specific share identification." Without that confirmation, the IRS will default to FIFO (First In, First Out).
21
No.
Purchases for your company are intended to be for your company to perform its function: merchandise that the company sells, equipment that the company needs to function...
Purchases for companies are taxed considerably lower than purchases for people. Your company purchases will be VAT free (you pay it when buying anything, but you get reimbursed for it ...
16
Yes, it could - it could not deduct them from taxes, and THEY WOULD BE OWNED BY THE COMPANY, but there are very valid cases for all your examples:
a new jacket, a new pair of shoes,
Yes, because the company can buy clothes for representation. Tax deductibility is disputable (not a UK specialist).
Or perhaps you can only buy things with company profits ...
10
You may have to file in both states.
First determine when you switched from Michigan to Maryland. The switch of the drivers license shows that you made Maryland your new residence, but the date of the license isn't necessarily the date you switched residence. Other key events that show the change are registering to vote, and registering your car.
When ...
6
An interesting question. I was in fact able to find an official IRS document saying that the box must be checked. However, it is not among the normal "user-facing" IRS publications oriented towards taxpayers. Rather it is this document which is apparently part of the training materials for Volunteer Income Tax Assistance (VITA), an IRS program ...
6
On Line 4(b) of the new Form W-4, it says,
Deductions. If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the Deductions Worksheet on page 3 and enter the result here
Looking at the Deductions Worksheet on page 3, it has you entering in your expected total Schedule A (itemized) deductions, ...
answered Jan 5 at 22:28
Ben Miller - Remember Monica
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5
There are lots of types of income that go on the Schedule 1, Line 8 "Other Income" spot. The Form 1040 instructions say this:
Use line 8 to report any taxable income not reported elsewhere on your return or other schedules. List the type and amount of income. If necessary, include a statement showing the required information. For more details, ...
answered Jan 15 at 19:57
Ben Miller - Remember Monica
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3
The premium of the option will become part of the cost basis for the stock, meaning the cost basis of your stock is the strike price of the option plus the premium paid. There is no tax consequence until you sell the stock that you received. The price you sell the stock for minus the cost basis will determine if you had a gain or a loss.
The category of the ...
3
I think, legally speaking, it is clear that the person is not eligible for the Recovery Rebate Credit. 26 USC 6428(d) (as well as the corresponding section from 26 USC 6428A for the second round recently added) says:
For purposes of this section, the term "eligible individual" means any
individual other than-
[...]
(2) any individual with respect ...
3
Yes. You may donate to a non-profit even if you are the founder or are on the board. If the amount you donate takes you above the federal standard tax deduction, then you can use that donation to reduce your tax burden. (Not a tax credit though- donations are tax deductions.)
Note that if you decide to pay yourself a salary from the non-profit, you would ...
3
First, are you certain that you are selling the startup itself as opposed to selling the assets of the startup? Often for smaller startups, the assets are sold rather than the startup. In this case you still own the startup, but the startup doesn't have much left.
This makes a big difference:
Sales of assets (e.g., IP or software) are often taxed as ...
3
When filling the Form 1040X column A (Original Amount) should I use the amount as it would have been after applying the first 1040X ....
That one's right in the instructions for 'Columns A Through C' (emphasis added)
Column A.
Enter the amounts from your original return. However, if you previously amended that return or it was changed by the IRS, enter the ...
3
Yes, failure-to-file doesn't apply because you did file -- even though you made some mistakes; that penalty is for not filing at all i.e. ignoring or defying the law. (There are some cases where they can treat a facially unresponsive return as not filed at all, but they only do this for the nutcases who file things like "I don't have to pay US taxes ...
3
MarylandTaxes.gov is a great site; they even have interview-style filing just like paid software.
Specifically, Tip #52 walks you through how to file your MD502 (Maryland's "main" form, like 1040 is for federal).
The site will likely ask you the dates and compute the percentages as needed.
2
i got my drivers license changed then to a maryland license at the end if August. Which I believe is what makes me a resident of MD.
Not true. You become a resident when you (permanently) move; drivers' licenses have nothing to do with it.
Thus, if you only got a paycheck while working in Maryland, you only pay taxes in Maryland.
EDIT: information added ...
2
How is income tax residency determined ... longest stays, source of income? on citizenship?
It simply depends on each nation. It's quite different for each country (indeed state where relevant). You can easily look it up in each case.
Furthermore what ensures that the laws of multiple jurisdictions become consistent
Absolutely nothing.
You're probably ...
2
If you buy the call back before expiration, the $4,000 will be considered a short term loss regardless of the length of time that the option position was open (short sales are treated as short-term even if they were open for more than one year).
It might have been a good idea to either cover the short call before it appreciated so much or to have rolled it ...
2
There's no way to withdraw money from an IRA brokerage account without paying taxes and/or incurring a penalty unless it's one of the exceptions allowed under tax law.
You can hedge your IRA with options in a non sheltered account but that's an indirect transfer only if the IRA positions drop in value. Should they rise, your hedge will be a loss, deductible ...
2
I'm assuming that your business is a sole proprietorship, and that you have not set up a corporation or an LLC.
The DBA form (Assumed Name Certificate) that you submit to a Texas county just registers the name that you are using for your business. It does not really create any type of legal entity. If you have not created a corporation or LLC for your ...
answered Jan 11 at 23:20
Ben Miller - Remember Monica
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2
Shall I add VAT,
No, why would you? VAT is a EU concept and a consumer tax for EU residents (ignoring details because they are irrelevant for the question).
Last time I checked the Dominican Republic is not in the EU - so VAT does not apply. YOu essentially are exporting out of VAT territory. This is not subject to EU VAT regardless of the type of client. ...
2
You filed 2019 taxes wrong. Since you were married as of December 31, 2019, you cannot file as "Single" filing status. You could only file as Married Filing Jointly or Married Filing Separately (or in rare cases Head of Household if the two of you have been living apart for the latter half of the year and you have a dependent; I will assume that ...
2
The only way you could list the $5,000 in "other income" as opposed to Schedule C is if it's considered a hobby. This is a common question so the IRS has information on it here. I think the default assumption is that it's a business. In your example, is the student actively seeking out gigs? Then it's almost certainly a business. Or were they just ...
2
Dislaimer: I'm in Belgium but from the answers already posted I think some ideas might still be relevant to UK.
First things first, TomTom is very right to advise you to discuss that with your accountant. They can probably better than anybody here advise you on things to do, things to avoid doing, etc... How you choose your accountant will also probably ...
2
I don't think this is the best way to approach this problem for reasons mentioned by others - the assets would legally belong to the company so it becomes a bit of a grey area.
However, there is one way you can leverage the company to your benefit: DIVIDENDS.
Currently, you can earn up to £2000 in dividends tax-free (source). For any amount up from there, ...
1
Your quote from the 8949 instructions starting with gain is confusing because you are only looking at part of the sentence:
Report the sale or exchange on Form 8949 as you would if you were not
taking the exclusion. Then enter the amount of excluded (nontaxable)
gain as a negative number (in parentheses) in column (g). See the
example in the instructions ...
1
No - interest expense is reported separately form interest income. One reason is that interest expense is an itemized deduction, so you could have interest income that is taxable, but not deduct any interest expense if you don't itemize because the standard deduction is more than your total itemized deductions.
Also note some interest expenses such as ...
1
Since the land sale occurred in an earlier tax year than the house
sale, are we able to claim the exclusion when filing our 2020 taxes,
or do we have to pay capital gains for the land sale in our 2020
taxes, and then wait until we file the 2021 taxes to go back and file
an amended return for 2020 and receive refund of overpayment?
The IRS can't know that ...
1
Q: Have you changed everything to Florida: drivers license, car
registration, voting, banking...?
A: Not everything - I do not drive and I kept my NY id. I do not have
voter registration - funnily for 2020 elections I never got my mail in
ballot. For 2021, I am planning to get my FL id. But, I did change my
mailing address with my bank and I of course paid ...
1
Have you asked your current bank? They will/should know more about it than nearly anyone else. Or at least can do research on it to help your specific case.
#1
You could probably manage to continue to use your US account for a while, but that can get tricky quickly. If your account/identity is hacked, it'll take longer to get you a new card and deal with ...
1
If you are talking about US Federal Income tax you will pay the long term capital gain rate for any stocks you held more than a year. The taxed amount will be the proceeds minus the total cost of purchasing them.
Capital gains are basically gains on any investment asset that you earned a profit from appreciation in value, as opposed to earned income that you ...
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