New answers tagged taxes
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After 10 working/qualifying years in the UK you will receive an UK pension as things currently stand. The amount will increase to the full amount as you accumulate more qualifying years.
https://www.gov.uk/new-state-pension/how-its-calculated
If you take it abroad, it may not be index-regulated, however, which seems rather unfair
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I asked my account and he confirmed that it is investment income and not subject to Social security and medicare taxes.
I guess I should have just done that in the first place instead of waiting a week. Any way I'm sure someone will need this information and god knows it not easy to find. anyway thx to @chepner for helping clarify my question, wish just ...
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 ...
5
No, that's not typical.
The IRS refunds site suggests you call if:
It has been 21 days or more since you e-filed
It has been 6 weeks or more since you mailed your return
"Where's My Refund" tells you to contact the IRS
It might take longer for prior year returns but I don't see any alternate timelines for prior year returns, in no case would I ...
2
In Canada only TFSAs and RRSPs are tax efficient in the sense that they allow you to forgo paying taxes on dividends and capital gains (TFSAs), or defer paying taxes until a later time (RRSPs). Any major bank will be able to set up an investment account for you where you can buy/sell/trade US equities. You will have to pay capital gains taxes on any ...
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What can I do legally to get her to sell the property?
There's not a way in any jurisdiction that I know of to force her to sell. One option would be to wait for the natural consequence, which is the county (or applicable jurisdiction) foreclosing on the property for payment of back taxes.
If she's content with that outcome then I don't know that there's ...
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As @Tomtom correctly pointed out, German income tax is progressive, so it will depend on your total income.
However, your employer should be able to tell you how much they'll have to deduct and there's nothing wrong with asking them this. This will tell you how much you should expect to arrive at your account.
You can also check that with the online ...
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Probably not. In general you can only deduct expenses you actually pay, and your own labor is not an expense. You could hire someone else to do the work and then the amounts you pay them would be deductible expenses. Your suggestion of paying yourself to do the work probably won't help you, as then you have additional personal income to pay tax on. Depending ...
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 ...
2
"is there even a reason to contribute to a Traditional IRA since you've lost the tax incentive? "
Even under a non-deductible Traditional IRA, you would defer your taxes on gains until you retire. However (unless the political situation between now and then leads to tax law changes), your gains will be taxed then at the regular income rate and not the ...
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One option you may have missed is the concept of a back-door Roth IRA. In this case, you contribute to a traditional IRA for the year. As you note, if your income is too high, this contribution will not be tax-deferred. However, you can ask that your traditional IRA be converted into a Roth IRA -- you ask for this conversion to occur immediately after your ...
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Don't hire an individual, pay a company for the service. If that landscaper or maid works for another company that company handles the 1099 or W-2.
If you are a business and you are claiming the expense then you may have to file a 1099. If they are your employee then you may have to file a W-2. Both forms have requirements for who has to file and when.
If ...
3
do you know any tax construction where time is used as a factor in calculating the tax rate?
They're pretty common in the US (and probably in other countries, too).
Two capital gains examples:
hold your stocks & bonds for less than a year, and the gains are taxed as regular income. When held longer than a year, the rate is much lower
If you live in a ...
3
The linked article starts with the line
When it comes to 1099s, many business owners find themselves in a
guessing game, wondering what exactly the rules and requirements are.
The article is targeted towards business owners, not individuals.
The list doesn't apply to you. Would it ever apply to an individual? Yes, sort of. We had a nanny for my baby, ...
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The 1099-MISC requires the employer's TIN, which can be either EIN or SSN.
-1
You bought a house fixed it up and sold it. Just because the buyer is your son and he is getting a mortgage to pay for the house has no bearing on the matter. In the US at least, you would need to pay taxes on the profit. Since you are probably selling it at cost means probably no taxes due. Selling below cost is most likely considered a gift and invokes ...
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I would ask a tax adivsor so you don't make any mistakes and everything ends up tax free.
Since your son is paying you back, what happened is that you gave him a loan to buy a house, then your company did work for him, giving him a long time to pay back.
You can charge him at cost for the work your company did plus materials, so you don't make a profit, ...
1
You will need to talk to an accountant about gift taxes - both for the home purchase and potentially for the (below market?) interest rate on the loan.
EDIT:
https://www.irs.gov/instructions/i709
If you gave gifts to someone in 2018 totaling more than $15,000 (other
than to your spouse), you probably must file Form 709.
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
State and local governments decide what land is exempt from taxes. If you can meet there definitions you will not have to pay taxes. You have to start with the state and local government.
Sometimes the exemption is based on who owns it such as specific organization; or how it is used such as a park or to generate solar power; or how it isn't used if you ...
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First, some corrections:
S-Corp distributions are not taxed at all. Instead, S-corp profits are taxed as regular income to their shareholders as a percentage of their ownership. For example, if you and your wife each own 50% of the company, and there is $500K in profit, then each of you would have $250K in additional taxable income on your personal tax ...
2
No, because there is a principle called inurement: https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations
"A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, ...
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)*(...
0
An investment with an annual return of 8% and an annual fee of 2% is an investment with an annual interest of 6%. You simply subtract the fee percentage from the return percentage.
And then you simply use the compound interest formula we all learned at school:
endCapital = startCapital * (1 + interest) ^ duration
So with a start capital of 1000, an ...
1
The self employment tax is before the 401k deduction. However, you mentioned this is your side job, but did not specify your income from you main job. The value of the tax savings from your deduction you get for your traditional 401k contributions is based on your total personal income tax, and the way your business is organized determines how its income ...
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Your question isn't entirely clear, but the answer is fairly simple:
With respect to that foreign partnership, you are either a lender, a partner, or both. In all these cases, you will have to report your interest income on the loan, your distributive share of partnership income, or both, as applicable.
If you lent the money to your relative, you are a ...
3
Amending my original answer in response to the comment from mhoran_psprep.
The interest on the $100k you receive back would only be deductible if you were to use the money to improve upon the home used to secure the debt. Purchasing a new property would not qualify, since the loan would only be secured by the original property that you refinanced.
So, ...
0
You talk about a "basis" when you are selling an investment. If you buy a stock as an investment and later resell it, the original price of the stock is your basis. Basis can get complicated when there are other costs involved, but it's really not what's relevant here.
You didn't buy this fossil from a dealer as an investment. This is more like an ordinary ...
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You may be able to deduct some of it. However, it is limited to the portion of the apartment that is used exclusively for work.
https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction
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Since the money is passing through your personal bank account it is your turnover.
Things might be different if the account was a business account owned by the property owner and if you were an employee. But that is not the case.
See an accountant if you need reliable advice. I run a business but am not an accountant, not a tax adviser.
Example ...
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do I owe tax on the proceeds?
Yes. It's income when you sell something for more than you purchased it for. (Your primary residence is an exception.)
is my basis the cost of the land?
No, because you're not selling the land.
Consider this: you buy an old house. In it you find a antique table buried under a pile of junk, and sell it for $10,000. Is ...
0
Having reviewed relevant EU legislation, the answer, though surprising, seems to be:
Place of Supply of Service is Germany (place where the painted wall is located), according to article 45 of Council Directive 2006/112/EC. Thus applicable rate is German rate payable to German authorities.
There is no small business exemption, despite this being a one-off ...
2
Frame challenge: between CapEx and OpEx, neither is intrinsically 'better' than the other. They are just different categories of expenditure.
CapEx is any type of expense that a company capitalizes, or shows on its balance sheet as an investment, rather than on its income statement as an expenditure.
- investopedia
According to the IRS, operating ...
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It's not high assets and high liabilities vs low assets and low liabilities. It's high assets vs low assets, liabilities are completely unrelated.
And of course, for tax reasons it might make sense to classify everything as OPEX. But, for the company, it would look much better to have lots of assets, i.e. classify everything as CAPEX.
Most likely, the ...
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Does your 401k provider stop you when you hit your max?
Here is a bogleheads discussion on the topic. Apparently different employers do different things.
https://www.bogleheads.org/forum/viewtopic.php?t=133214
Some employers stop your contributions, some put the money in after-tax 401(k) contributions, and some stop their own matching contributions.
...
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It happens. I maxed out my 401(k) contributions for 28 years and there was never an issue when the deposit hit the annual limit. Between the employer and administrator, it happens.
2
Which VAT rate is applicable and how do I pay it to which country?
German - you provide services locally and physically in germany. You need to register with the german VAT authorities for that.
There are exceptions if you run a quite small invoice you STILL invoice it in Austria. There is basically a limit per year per country under which you can use your ...
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