New answers tagged taxes
1
Applying for an exemption links to What qualifies as long-term care insurance?
That linked page describes LTC, but does not offer a minimum benefit required.
You were also required to buy the plan before November 1, 2021. FYI
2
They want to pay me in company shares worth 100k (as it is stated in our contract).
What does this mean? Does the contract state a number of shares, or an amount? If an amount, who decides the value of the shares, and thus how many shares you get?
Note that there may be several classes of shares (with different rights), which may not all have the same value....
33
I'm putting aside all considerations of whether your particular case is a red flag and whether you should accept shares as payment, to give you an answer to your original question: what are the tax implications of being paid in company shares in the UK?
I am myself paid both in salary and Restricted Stock Units.
Straightforwardly, when you receive some ...
6
It depends.
If you were contracting as self-employed, or as your own Ltd Co, or via an umbrella co, or you were paid personally as a private individual, the tax is different in each case. HMRC would treat the arrangement as set out in the written contract (IR35 possibly excepted), if there was one.
You should expect the true value of the shares you receive ...
9
The other answers seem to be focusing on "I wouldn't start from here" which is a good point for others but doesn't help you already agreed to this.
This will almost certainly be treated as payment in kind if you take it personally and you will take a cash tax liabilities you'll have to find from somewhere. Zero strike options probably won't help ...
4
I completed a project for a private ltd company. they want to pay me in company shares which they say are worth 100k.
This may be a danger signal: I wonder whether they are having cash flow problems? I'd be inclined to press for payment now, in folding money.
0
If you are taxable in the US for a certain tax year, that applies to all income of that year, no matter at which date you made it.
So selling any investment - including crypto - on January 2, and then moving to the US on June 29th makes any gains fully taxable (The tax rate could be 0%, depending on your situation, but that’s a different question).
If your ...
5
Whatever the bank thinks about your status doesn’t matter for taxes; worst case would be that if they trigger something, you have to prove to the IRS that you’re not taxable in the US. However, the chances for that are infinitesimally small.
What could happen is that the bank could hold back parts of any interest or dividends you get through them because ...
0
Want to keep the payments going after your liability is satisfied? Now the liability is on the other side. Your business can write your parents a reverse mortgage and keep the payments going. Your business will have to charge a minimal amount of interest (currently 1.15%) and include that interest income in its revenue. Your parents will receive the benefits ...
42
If this is only being proposed now by the company after you have completed the work, then I'm afraid it sounds like an attempt by the company to avoid or defer having to pay you.
Firstly, what did your contract with the company say? If they owe you £100k for the work then they can't suddenly decide to pay you in shares if that was not in the contract.
...
5
In 2021 you can gift your mom 15,000 a year You can gift your dad 15,000 a year. There is zero impact on their taxes or your taxes.
Brother #1 can do the same.
Brother #2 can do the same.
Together you can gift them 90,000.
If any or all of you are married your spouses can also do the same.
In 2022 these numbers go up to 16,000.
Of course this money comes ...
1
Do they always? No.
The US is not a participant of Common Reporting Standard (CRS) for Automatic Exchange of Information (AEOI) with other jurisdictions.
However, if a non-USA jurisdiction has signed a Model 1A agreement ("reciprocal basis") based on Foreign Account Tax Compliance Act (FATCA) of the US, there is always AEOI involved.
The exact list ...
1
It's because the dividend money is already taxed at the company level. To understand this best, compare what happens if you invest $1000 in a company via stock, vs investing $1000 in a company via bonds. Assume for the sake of convenience both the dividend yield on the stock and the interest on the bond is 3%.
Interest is a business expense and so paid with ...
5
And if I really donate enough money to bring my taxable income down to
0 does that mean I don't need to do my taxes this year ;) :P
The IRS will see the W-2's, and 1099 that imply that you make a significant amount of money. They will not have any forms from the charity that tell them that you donated any money. Therefore the IRS will be looking for your ...
0
Sell the shares, file a 1040 with the IRS and declare it on the equivalent with Germany (just to be safe). Do you have to do that, probably not. So why bother? I doubt you will owe anything for such small amounts/gains anyway in either country and just be done with it.
Incidentally, I wouldn't bother messing around with stocks and other such investments ...
1
See the information provided by the Australian Taxation Office.
If you sold assets during the year, such as property or shares, you need to work out your capital gain or loss for each asset. You pay tax on your net capital gains.
When you sell or otherwise dispose of an asset, you can reduce your capital gain by 50%, if both of the following apply:
you ...
0
The cliff is temporarily gone, but the phasedown is extended to a phaseout, at a slightly lower rate.
Specifically, your Premium Tax Credit is limited to the SLCSP (Second Lowest Cost Silver Plan) Premium applicable to your location and demographics less 8.5% of your household MAGI. Using $10k as a round-number approximation to SLCSP (since I don't know ...
2
The UK shop (that is VAT registered) should list VAT on the invoice, but that VAT should be "Zero Rated" i.e. VAT at 0%.
A shop unfamiliar with exporting might not be setup to handle this.
https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703
2.1 Zero rating on exports
VAT is a tax levied on goods and services consumed in the UK....
0
German tax law currently treats cryptocurrency tokens as ordinary property. No tax is typically due when receiving such property. But the income from selling the property is taxable within the first year. This is complicated when a gift is involved.
The profit from the sale is the difference between the price achieved by the sale and the price to which the ...
2
If you have a business, and the business has expenses, those are business expenses whether you're a sole proprietor or LLC or Corp or whatever. If you're a W2 employee you can't deduct expenses related to that job. If you're working as a 1099 contractor you're already a sole proprietor business and didn't realize it.
4
Ignoring that it it might be a scam.
Example: If a company or an individual sends me 50kUSD for me to pay
freelancers on Upwork, which I do (i.e., I kept 0 USD, and spent
50kUSD on freelancers on Upwork). Do I have to pay any taxes on that?
You will have to account for it on your tax forms. The company will be sending you a 1099 so that they can claim the ...
1
A wash sale occurs if you buy shares in the 60 day window surrounding the date of a realized loss (30 days before or 30 days after). Since you bought shares on November 1st, any sale for a loss before December 2nd will create a wash sale.
For closed trades, brokers default to FIFO. The IRS allows you to designate the shares you want sold. This must be done ...
0
I have discussed with several insurance brokers in Washington state: the consensus is that one is allowed to change (but not cancel) one's qualifying long-term-care insurance after opting out from the long-term care payroll tax in Washington state.
8
Do you have to pay taxes on the free stock you get from a Robinhood referral link if you don't sell it?
Yes. https://robinhood.com/us/en/support/articles/invite-friends-get-free-stock/ (mirror):
The cash value of the stock at the time you claim it may be reported as “Other Income” on a 1099-Misc form, if applicable. Any gains or losses on the sale of the ...
2
You are cutting it so close to the minimum AGI, that you might benefit from filling out the draft tax forms for 2021. This way you will have the most accurate estimate of your 2021 AGI, which you can compare against the ACA minimum 'modified AGI'.
These tax forms are the draft version, not the final version, but they should be more accurate for 2021 than the ...
0
This is a useful reference about SAFE Notes.
In essence and in the ordinary sense, as SAFE notes aren't a loan, and investors don't receive any sort of interest or payments nor do they provide dividends, there is no guarantee that it will ever convert into equity which in effect, for revenue purposes could mean that that there is, in fact, no consideration ...
10
Therefore, the 2-month period where I received W-2 income cannot be
included because that technically makes me an employee so no longer
self-employed. Is this true?
If they are giving you a W-2, and had you fill out a W-4, then you are not a freelancer, you are an employee. That means the state and federal government require them to provide benefits if you ...
3
In general, such a question ("why the tax code is just so") is a politics question as historically all dividends were ordinary income in the United States for the periods 1936-1939 and 1954-2003; one might ask instead why corporate dividends became privileged after 49 years without a change.
That said there is a rationale. As a "partnership&...
2
Premiums are always received upfront, plus a day or two for settlement. Premiums are not received when an option position is closed or expires.
It's not taxable at that time, however. The premium received (or paid for a long option) is accounted for when the position is closed (e.g. when a short option is bought back) or when the option expires. The premium ...
5
If you are a resident of Maine, you owe taxes on all of your taxable income, regardless of where you work. Since New Hampshire has no personal income tax, there is no credit for (hypothetical) taxes paid to New Hampshire on any portion of that income.
From Determining Residency Status (pdf):
If you are a Maine resident for the entire tax year, you must pay ...
-1
You're correct, Maine and New Hampshire do not have a tax reciprocity agreement. The usual course of action is to have taxes withheld at your working location state and then you will have to sort it out when you file in both New Hampshire and Maine.
Usually you will owe taxes in your state of residence and be owed a refund in your work state but situations ...
3
(Assuming US based on "dollars")
In year one, you would get a $10 tax deduction based on the capital loss. So that would (all else being equal), offset the tax on the $10 gain in year two.
There is a limit to the deduction you can take in one year, although additional capital losses over the limit can be "carried forward" and be applied ...
0
As a general rule, insurance settlements aren't taxable. The purpose of the settlement is to make you whole from an injury or accident - you're not experiencing any taxable gain there.
As far as other considerations on the money transfer or other limitations, engage your lawyer.
1
The 145kUSD tax cut assumes that the SALT deduction cap is removed, and not increased to 72.5kUSD as Fox News incorrectly wrote.
Source (mirror 1, (mirror 2):
Who would benefit from removing the cap on the SALT deduction? The rich – especially the very rich. Almost all (96 percent) of the benefits of SALT cap repeal would go to the top quintile (giving an ...
3
You sold personal property, you don’t have to do anything with this form. PayPal, or whoever, is now obligated to send you a 1099-k which is independent of whether you have an obligation to claim any or all of that reported amount as income for tax purposes. And there’s no rule obligating you to reconcile that amount on your taxes.
Unless your consulting ...
-2
As far as taxes - that $60k will very likely be taxable (to some extent) on your 2020 personal tax return (my questionnaire always asks about things like that). You should talk to a tax professional as soon as possible.
0
According to https://www.qsbsexpert.com/83b-elections-and-qsbs/, all your shares will qualify for QSBS as long as you meet all the other conditions:
According to the Code of Federal Regulations and its subchapter on
income tax,
“Under section 83(f), the holding period of transferred property to
which section 83(a) applies shall begin just after such ...
0
You will not receive money from an Asset Purchase Agreement (APA) as an owner of the company. The company will receive the money from the sale of its assets. This is not a purchase of the company itself (which you own).
It sounds like you are saying the APA substantially comprises all of the assets of the business and the company you are an owner of will ...
0
For the purposes of this answer lets ignore any accusation of fraud.
The first thing that occurs to me is that the first change of address should cause the credit card company to send a written notice your old address. That notice is designed to alert the people at the address that somebody submitted a change of address. Of course after you have convinced ...
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