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19

Hoo boy. This is a huge mess. TLDR: There's no tax on the withdrawals (most likely). The bigger issue is paying taxes on the LLC's gains all along. Here's the problem: It's very unclear whose taxes the LLC passes through onto (if anyone). You say the LLC is in your name, but your father was doing all the paperwork and taxes. If you weren't adding detail ...


15

My question is, can I get in legal or tax trouble as it is technically "my business" and am "paying" myself? Do I need to claim this or acknowledge it in my own personal taxes? Even though it is only a handful of times a year and for a sum total of less than $1000? Or am I just worrying over nothing? I have read that because it is a single-entity ...


12

I created an LLC for my Dad's business. He does all of the business but it is in my name using my SSN and all that (long story). He does all the operations and handles the taxes and everything. I literally never touch it outside of renewing the license with the state every year. This statement is troubling. You own the LLC, it is in your name and ...


12

Broadly, it means that you'll be responsible for the first $3,000 of medical expenses that you incur over the course of the year before insurance kicks in. There may be a co-pay as well where you're responsible for some fraction of the bill once you've met your deductible up to an out-of-pocket maximum. Realistically, your plan very likely covers certain ...


7

When the car goes from $400 to $600,000 in probate, will the estate owe capital gains on the car somehow, or does it get the new basis "for free"? No there are no taxes due on this part of the gain (assuming the overall estate is small enough to be exempt from estate taxes) - that's why the "step-up" in basis is so powerful. It's also why "giving" assets ...


5

The rate is not precise in the tax table because the table covers a range. Taxable income from $6,000 and $6,049 results in $603 for your example, that's marginally above/below 10% depending on where in the range your taxable income falls, but it rounds to 10% in either case: 603/6000 = 0.1005 603/6049 = 0.0996 I've not seen an official IRS explanation ...


4

Let's keep it simple: The money is a gift to the couple from the WKP. No income tax should be owed by the couple. The WKP, however, would owe gift taxes at the very least, and perhaps would face investigation over what kind of income the money was to them before they gave it away. It's possible that if the WKP has an unpaid tax bill, the IRS could go after ...


3

If you and your wife file as married filing jointly, the only difference her starting date (2019 or 2020) will make in your Federal Income Tax is that the two of you will have more income in 2019 because she started in 2019. And, note: the pertinent date is not when she started her job, but when she received her first paycheck. State Income Taxes are often ...


3

There are a number of different arrangements, but at a high level the deductible is the amount you must pay before insurance will start paying for medical expenses. Commonly there are some things that are covered to some extent before you hit your deductible, for example I can get a physical every year without paying, but otherwise I pay for everything ...


1

You asked a slightly different version of this question on meta. For the sake of completeness, I'm going to largely answer this question by cutting and pasting material from that one. This is an interesting question because it allows for exploration of a larger topic: how do "the authorities" know the transaction had happened? Would the IRS, if they had any ...


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