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Business expenses don't need to be smart business expenses in order to be deductible. They just need to be somehow connected to your commercial activity. If you incurred an expense because you or your client made a mistake or changed their mind, that's also a business expense.
A common litmus test for what is and is not a business expense is to ask: "If ...
26
Yes.
Just like if your business entered into a contract with a penalty for non-completion.
5
You bought something for your business. You used it in your business. You didn't need it anymore. You disposed of it as effectively as you could but nevertheless at a loss. If you could have treated the original purchase as a deductible business expense had you not later realized you didn't need it, you still can. The return of the item is effectively a sale ...
5
You have to file and pay taxes in California for your income received from California based clients, even though no services were performed inside of California. See California's OTA ruling on Bindley [i]. Bindley is important because it comes one year after a similar case, appeal of Larsen, where the OTA reached the opposite conclusion. Bindley took ...
5
I think you are confused about what the IRS considers a business or not.
The IRS has written on this issue regarding a person who makes investments for a living with Topic No. 429 Traders in Securities (Information for Form 1040 Filers) which classifies individuals as: Investors, Traders, and Dealers. Skipping Dealers as they have obvious customers,
So an ...
4
You will not lose any of your refund as long as you file within 3 years of the date that your return is due. From the IRS website:
In most cases, an original return claiming a refund must be filed within three years of its due date for the IRS to issue a refund.
Generally, after the three-year window closes, the IRS can neither send a refund for the ...
3
Broadly in the UK you have to pay UK income tax on foreigh earnings if you are legally defined as 'resident' which will depend on the details of your pattern of travel etc. Otherwise not.
Lots of countries change a 'withholding tax' on income to non-residents so they get some take. Usually (again depending on double taxation treaties etc) you can deduct ...
3
It will depend on the specifics of the tax treaties between the countries involved. If you haven't established a tax residence in any country since leaving country B, you are likely still going to be considered tax resident there.
I would start by contacting an accountant in your current physical location who deals with expats from country B and see what ...
3
A quick calculation (your pay increase of $20k/yr times 40%, an estimate of your marginal tax rate inclusive of FICA) suggests your withholding should increase by $8000 per year, or a little over $300 every 2 weeks. Your thought of "increase withholding by 30% of the old withholding" would fall considerably short -- my rough estimate is that your ...
2
Will this be your primary residence? If the answer is "no", then you do not qualify. Does your employer allow "hardship withdrawals"? Not all of them do.
There will be withholding and it is not clear if that will be at 20%, 30% (if under age 59.5), or some other amount dictated by the plan. So you will pay some of it right away. Then you will settle ...
2
It is not taxable, because the transaction is not a barter transaction.
The discount is not offered in exchange for a specific thing like an amount of work. It is offered to someone with a specific status, i.e. an employee. That is no different from offering a discount to a senior, or a veteran.
Key to this is that they person receiving the discount does ...
2
If you have not been told by the IRS in a formal letter that you are subject to back-up withholding, then you should answer that you are not subject to back-up withholding when filling out the W9 form. Those people who have been told that they are subject to back-up withholding have bee. understating their income regularly (by not declaring all income on the ...
1
Basically the W9 is just to reveal that you are an independent contractor getting paid from the website you are currently getting an income from. Backup withholding basically means you have to properly report your name and social security number to the payer.
Instead of your taxes being withheld by your employer in a w2 form. You would get a tax bill (if ...
1
I didn't withdraw any money from the account and gained interest. Money is still there as of today.
CUR depreciated during 2018 in 2 times.
The CPA is right, because your currency loss is unrealized. This is no different from owning a stock that has lost value during the year and which you still hold.
Only when you sell the currency will you realize ...
1
Your calculation for penalty seems to be wrong. 240 days is about 8 months, so you would owe 9% (the initial 1% plus 1% for each month) or $90.
The interest calculation is correct, but you need to check with them on the current interest rate (I cannot find it on their web site).
This is for informational purposes only and is NOT professional tax advice.
1
It's impossible to generalize a question like that because it entirely depends on the tax laws of the countries in question. It's possible that you only need to pay taxes to country C while it's also possible that you need to pay taxes in countries A, B and C.
In most cases there are tax treaties between the countries that simplify things, but that doesn't ...
1
For many people, the QBI deduction does make S-Corp less desirable because only the S-Corp profit is subject to the QBI deduction not the wage portion.
From the IRS:
QBI does not include items such as:
...
- Amounts received as reasonable compensation from an S corporation
...
At your income level you're likely in or beyond the phase out range ...
1
Based on the calculator they are doing the following:
you_invest=10,000
annual_return=6.4%
years=25
total_gain = ((you_invest)*((1+annual_return)**years))-you_invest
total_gain = (10,000*(1.064**25))-10,000 = 37,156.40
annual_fees = 1.75%
effective_return = annual_return-annual_fees
effective_return = 6.4%-1.75% = 4.65%
gain_you_keep = ((you_invest)*(...
1
If you have an IRA with pretax money (i.e. a traditional IRA you were able to deduct while depositing), this is the time to consider a conversion to Roth. You'd benefit long term by having the money available later with no tax due on the withdrawn funds, including growth. This is a great way to benefit from your situation if you have the funds to convert.
1
Scrip dividends are liable to income tax in the same way that cash dividends are. After the tax free dividend allowance of £2,000 (fr 2018-19 onward) had been used then you pay tax at the appropriate self assessment rate.
If the value of the scrip dividend shares varies by more that 15% from the value of those share on the scrip dividend payment date, the ...
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