Friday, April 15, 2016
Tuesday, April 12, 2016
I have an LLC, How Does it Effect My Personal Taxes?
You have a couple choices:
- If there's one owner, the LLC is treated as sole proprietorship and goes on that person's personal 1040 via a Schedule C.
- If there's two owners, the LLC is treated as a partnership, which requires a 1065 to be filed which results in a K-1 that goes on your personal 1040.
- Form 8832 can be filled out to declare the LLC a corp but then we must file a full 1120 or 1120S corporate filing naming officers, wages and such.
Basically the first two ways are the only easy way to do it.
SOURCES:
Monday, April 11, 2016
When Do I Have to File a 1041 on Trust or Estate Income?
Only if the estate makes more than $600 in a year.
SOURCE:
https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-a-Schedule-K-1-Form-1041--Estates-and-Trusts-/INF20134.html
SOURCE:
https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-a-Schedule-K-1-Form-1041--Estates-and-Trusts-/INF20134.html
Saturday, April 2, 2016
Thursday, March 31, 2016
Where Can I Find Previous Years Forms and Instructions?
Here are all of them.
Forms start with 'f' and for instructions scroll way down and they begin with 'i.'
https://www.irs.gov/pub/irs-prior/
Forms start with 'f' and for instructions scroll way down and they begin with 'i.'
https://www.irs.gov/pub/irs-prior/
Thursday, March 24, 2016
REITs (Real Estate Investment Trusts) and Taxes
IRS
"Regulated investment companies (RICs) (mutual funds, exchange traded funds, money market funds, etc.) and real estate investment trusts (REITs) may pay capital gain distributions. Capital gain distributions are always reported as long-term capital gains. You must also report any undistributed capital gain that RICs or REITs have designated to you in a written notice. They report these undistributed capital gains to you on Form 2439 (PDF), Notice to Shareholder of Undistributed Long-Term Capital Gains. For information on how to report qualifying dividends and capital gain distributions, refer to the Form 1040 Instructions (PDF) or Form 1040A Instructions (PDF)."
So, gains on REITs usual are on Form 2439 and are treated as cap gain distributions on a 1040.
ALSO
"Dividends paid by tax-exempt corporations or trusts such as Business Development Corporations (BDCs), Master Limited Partnerships (MLPs), Limited Liability Corporations (LLCs), or Real Estate Investment Trusts (REITs) are considered non-qualified, and may be taxed at ordinary rates. You report non-qualified dividends on Line 9a of IRS Form 1040."
SOURCES:
https://www.irs.gov/taxtopics/tc404.html
http://www.sidley.com/news/12-18-2015-tax-update
http://www.dividenddetective.com/dividend_taxes.htm
"Regulated investment companies (RICs) (mutual funds, exchange traded funds, money market funds, etc.) and real estate investment trusts (REITs) may pay capital gain distributions. Capital gain distributions are always reported as long-term capital gains. You must also report any undistributed capital gain that RICs or REITs have designated to you in a written notice. They report these undistributed capital gains to you on Form 2439 (PDF), Notice to Shareholder of Undistributed Long-Term Capital Gains. For information on how to report qualifying dividends and capital gain distributions, refer to the Form 1040 Instructions (PDF) or Form 1040A Instructions (PDF)."
So, gains on REITs usual are on Form 2439 and are treated as cap gain distributions on a 1040.
ALSO
"Dividends paid by tax-exempt corporations or trusts such as Business Development Corporations (BDCs), Master Limited Partnerships (MLPs), Limited Liability Corporations (LLCs), or Real Estate Investment Trusts (REITs) are considered non-qualified, and may be taxed at ordinary rates. You report non-qualified dividends on Line 9a of IRS Form 1040."
SOURCES:
https://www.irs.gov/taxtopics/tc404.html
http://www.sidley.com/news/12-18-2015-tax-update
http://www.dividenddetective.com/dividend_taxes.htm
Wednesday, March 16, 2016
I'm a Bartender, Are Bar-back Tip-outs Deductible?
Only if your customer tips are claimed in Box 8 Allocated Tips on your W-2 AND you have written proof of each pay-out (receipt).
Reference here for more info:
https://ttlc.intuit.com/questions/2229933-how-can-i-deduct-the-20-i-tipped-out-to-my-barback
"You cannot deduct tip-outs (the tips you split with other employees) from allocated tips when you report it on your income tax return.
Reference here for more info:
https://ttlc.intuit.com/questions/2229933-how-can-i-deduct-the-20-i-tipped-out-to-my-barback
"You cannot deduct tip-outs (the tips you split with other employees) from allocated tips when you report it on your income tax return.
If your employer allocated tips to you, they are shown in box 8 of your Form W-2 (PDF). They are not included in box 1 with your wages and reported tips.
Allocated tips are amounts your employer assigned to you in addition
to the tips you reported. Your employer is required to allocate tips
only if:
- You worked in a large food or beverage establishment (restaurant, cocktail lounge, or similar business),
- You received any tips directly from customers, and
- The tips you reported to your employer were less than your share of 8% (or if your employer requested a lower rate, the rate approved by the IRS) of food and drink sales.
Generally, you must report the full amount contained in box 8 of your
Form W-2. However, you are not required to report the allocated tip
amount if you can prove the amount of tips you actually received with
adequate records was less than the allocated amount. If you do not have
records or have inadequate records, you must report the amount in box 8
as income on your tax return.
In the future, report the net amount of tips to your employer so that you will only pay on the tip income you actually took home.
Hope this helps."
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