1st Q Estimated Tax Missed 2013

CarnewConsulting — Tue, 18 Jun 2013 20:16:33 +0000

This may have been discussed here before but my office manager failed to make the 1st Q estimated tax payment for 2013. She realized it when she made the 2nd Q payment in June and came right to me. I told her to go had and just make another payment for 2013 thru EFTPS.gov and not to worry about it. Well.....now I'm a little worried that I should have done something differently. Do you think I am ok as long as I pay all the estimated taxes for 2013 by the end of 2013? Lynne

Taxes

kelsess — Thu, 13 Jun 2013 13:09:41 +0000

If I start a small home-based business with a partner, both of us working out of our own homes, how do we divide the business to report and/or pay the taxes come April 15? We are hoping to just include the business on our individual taxes, but weren't sure how this would work since we would be co-owners of the business. Does anyone have insight on this situation, or know where I could find the answer? Thanks - KE

Small Business LLC partnership Tax Forms

JenniferSparkle — Sat, 08 Jun 2013 20:24:10 +0000

My sister and I just started a small LLC partnership business. We both co-own this business which is a cleaning company. We don't have any employees and just are assembling enough customers to have a weekly schedule so we can work for ourselves. Which are the exact forms that we have to file as co-owners? It gets confusing. Some people say that we only file an annual informational return because we are partners. I don't get it. Don't we both have to file quarterly SE taxes as well as Fed & State income taxes quarterly? Any information is greatly appreciated!

LLC as a Partnership or as a S corporation?

Lee M. — Wed, 12 Jun 2013 03:00:11 +0000

Would someone be able to break down the pros and cons of filing for taxes underneath a partnership or an S corporation with the following facts? Current LLC, partnership, technological consultancy, home based Husband and Wife, each has 50% No employees For hypothetical sake (and ease of numbers), let's say we make $100,000 for the year of 2013. What would be the amount of money in federal taxes would we be required to pay for either scenario? Also, can anyone easily identify which one we would come out ahead with?

US sourced income of a Non Resident Foreign National

Junaid — Wed, 22 May 2013 11:09:49 +0000

If I'm a US-non-resident foreign national and own a single membered LLC (a disregarded entity) and sales in US (through online channels) the product which is completely produced in my country (the country of residence), then the income which I gain through this sale is not considered as US sourced income, isn't it? see reference: http://www.irs.gov/publications/p519/ch02.html

How do LLC losses affect personal income taxes?

wliu0532 — Sun, 07 Apr 2013 07:50:16 +0000

I started a LLC in California with my friend, and I own 35% of the LLC. What is not clear to me is how losses affect the taxable income of the LLC members. Is there a limit to how much can be deducted for an LLC loss? For example, If I made $100k at my day job, but the LLC lost $100k (I have 35%), how much can I deduct from my personal tax? 35K? and my taxable amount becomes 65K? And any limitation on the deduction? Thanks in advance

Business Inventory Donations to Goodwill

twmart — Sun, 02 Jun 2013 14:20:00 +0000

I am starting a business and we pick up and recycle items from Businesses and individuals. During the course of business we end up with to many of certain items and have been looking into donating them to the local Goodwill stores. What is allowed in for business donations, how long does the business need to own or have possession of items/products before they are considered the property of the business and can be donated as inventory? Example… We pick up a few computers, printers etc… then later that day or that week make a run to Goodwill with 3 to 10 printers. Would these be something that could be donated as business inventory? What if we were dropping of 5-10 every other week for the year, could all 130 – 260 be written off as donated inventory.?

1031 Exchange

Douglas J Anderson — Mon, 20 May 2013 19:18:42 +0000

Background: A Taxpayer can defer the capital gains tax liability from the sale of real estate if they subsequently use the sale proceeds to purchase new real estate of equal of greater value. 1) The Taxpayer has 45 calendar days from the time he/she sells the relinquished property to identify his/her intended replacement property(ies). Failure to identify replacement property(ies) within 45 calendar days will result in the 1031 exchange transaction being disallowed and reconstituted as a taxable sale. 2) The Taxpayer must complete his/her 1031 exchange transaction by the earlier of: a) 180 calendar days from the sale of all the relinquished property b) Due date of the Exchangor's Federal income tax return for the tax year in which the relinquished property was sold, including filing extensions. Note: The Taxpayer is unable to extend deadlines under any circumstances 3) Title to the exchange property must be vested exactly the same as the relinquished property. This is only a snap-shot of the complexities involved in these types of transactions. As such, this article is not intended to replace the advice of a CPA.

ebay taxes

CARPARTS — Thu, 11 Apr 2013 21:12:46 +0000

I'm a new car dealership selling new car parts on eBay. Do i have to collect sales tax on out of state sales and then pay them to my state. I know i have to for sales within my state but i don't seem to find any kind of official documentation that states i do not though everything else i read seems to say i do not. Please Help Thanks

Already an LLC - how to choose how to be taxed

lucasmccoy — Tue, 30 Apr 2013 16:35:50 +0000

My husband and I have already formed a business as an LLC and we are each 50% owners. I am applying for a federal tax ID number and have the option to choose sole proprietor or partnership as the type of entity. Which is a better option since we are married and both equal owners?

Do i have to pay a quarterly estimated tax?

JerryAAA — Tue, 21 Feb 2012 02:15:58 +0000

Hi All, I just started my business in December so i am as new as they come. I have been reading books non-stop and am currently learning about taxes. My question, is my business required to pay a quarterly estimated tax (1040-ES)? My business is: -A SMLLC -Located in NY -Online Electronics retailer. -Estimated $24,000 annual revenue. Any help is appreciated!

Business in US & Brazil with US Partner & Brazilian Partner

timdorf — Fri, 06 Aug 2010 12:01:42 +0000

I am an American, living in Brazil. I registered a company (LLC) in Ohio in 2007 and claimed it 2007 & 2008, then inactive in 2009. It is set-up as a single owner.
Now, I am registering a company in Brazil. I have a Brazilian partner. Our company represents foreign companies in Brazil. Currently, we have one US company that we represent, but will be adding more soon.

I am not sure of the best way to handle the taxes or how to;lin- the companies together. For example, any commissions are set-up to be deposited in my US account (my primary personal accounts are in the US and my bank does not charge for international wire transfers). I fear that I would have to pay taxes on the entire amount, because it looks like only income for me. I would like to add my partner to the LLC and to the US bank account, but my partner does not have a Social Security number and may not be able to travel to the US for at least several more months. Of the commissions deposited in the account, a portion will remain in the account as our 'US business account', some of the business account money would be sent to a business account in Brazil. Some will be divided 50/50 for my partner and myself. However, any funds wired to Brazil, may also be subject to taxes again in Brazil. I thought that it would be better to leave the US LLC as 'inactive' and only use a business bank account in Brazil, because it would be easier to documented the money coming into Brazil, however, I have many business expenses that need to be claimed on my taxes in the US, so I really cannot just abandon the US LLC.

For me, it seems complicated, but I am sure somebody can provide direction for us.

Nate Orr - Question re. Sales Tax for Online Business

Nate Orr — Fri, 26 Apr 2013 13:25:09 +0000

My name is Nate Orr and I've read recently about changes to sales tax for online business. I was wondering how this may impact sellers who offer products for sale on online auction sites like Ebay where we may have buyers from different states all with different state sales tax. Does anyone know how the new rules may impact sellers or where we can find state sales tax information in one place?

Sales Tax

StaceyH — Fri, 07 Jan 2011 12:16:56 +0000

My husband and I have a raw petfood biz based in MN, we are starting to branch out to 3 other states. We have a website, the customer orders, and we deliver the product...do we collect sales tax based on those states rates and guidelines???

Help!!!!!!

W2 Tax for with old address

tqoe — Mon, 25 Mar 2013 14:30:17 +0000

I have a small business that provides classes for children at several child care centers. One of these schools pays me via 1099 Misc. Before the end of the year, I changed the business address. Since my business with the child care center had been completed, I hadn't updated them with the new address, not thinking of the tax forms. I now have a 1099 with the old adress. Is it important to have them go back and correct it or can I file it with the old address? I'd like to do the right thing without causing this other business extra work.

Business tax certificate or exemption

hed — Wed, 10 Apr 2013 23:14:39 +0000

The city of Los Angeles says all business must had a business tax certificate or an exemption if operating within the city. I have found their business tax certificate application form but... I have read on their sight that they are currently allowing exemptions for new businesses within the first and second years of business if they begin operating withing certain dates and bellow a certain threshold in business income. I'm pretty sure i will not be making anywhere near the threshold...and so i think I may qualify for the exemption. but aside from the application form i meantioned above I can't find another for an exemption that doesn't require a corporation or charity or trust. as i am starting up as a sole prop. does anyone know if its the same form or where i can find the application?

When is it time to separate home-business taxes from personal filings?

dantam8 — Fri, 12 Apr 2013 13:51:17 +0000

I do work as a freelance writer as a side business, writing for the media and providing copy to organizations. I do business under my own name and file schedules C and SE along with my 1040 each year. I am starting a new home-based business that is writing related, but will involve the selling of a physical product. This will require more overhead and expenses than the freelance writing business. I will also market this new venture under a brand name, rather than my own. What is the best way to handle the tax situation for the new business? Would it be advisable to operate this as a part of my existing freelance business and file along with my personal taxes, at least until I see if it will be successful? Or should it be kept as a separate business from the start? Thanks

Do I need to file small business taxes if I have not actually launched the business yet (just registered the LLC)?

carltb42891 — Mon, 08 Apr 2013 23:49:02 +0000

Hello, I registered my company a few months ago and I have not started the business yet (over that time I was working on building the product). I'm new to this and was wondering, do I have to file taxes even though I have no sales? Thanks!

general partnership taxation vs sole proprietor taxation.

hed — Wed, 20 Mar 2013 01:08:10 +0000

I'm looking into setting up what I guess would be a hobby business from home. But I am stuck on wheather to go with a sole prop and do it on my own. Or a general partnership with my spouse so he can be more involved with the business than occassionally volunteering. I have been told more than once that a general partnership has more comlicated taxes than a sole prop and we will end up paying more/higher taxes. And that I should stick to the sole prop. but when i looked up the two the general partnership didn't seem as different as I thought. But I am still unsure that I am fully understanding the difference. I understand to a point about them both being "pass through taxation". What I want is to choose the best option for us. if the taxes of a general partnership is essentually the same as the sole prop, I would like to involve my husband. But if it would cause more trouble for Him or both of us (he already has a full time job) then I will just run the business on my own as a sole prop. I guess what I need is a side by side compariosn/explanation of the taxation of the two for a complete dummy. :) if anyone could help me understand the differences I would be greatful :) thanks.

Independant Contractor

Johanna — Wed, 26 Dec 2012 20:53:40 +0000

I work 20 hours per week part-time as a cleaner for a cleaning company in Maryland. I make $15 per hour and considered an independant contractor for the company. Can you tell me how much money or how much of a percentage I should be saving each month to not have to owe the IRS at the end of the year?

EIN registration

EBenson4185 — Tue, 09 Apr 2013 16:44:47 +0000

Hello, If I open a restaurant that will serve alcoholic beverages, when registering for my EIN do I check Yes on the question "Does your business sell, or manufacture alcohol, tobacco or firearms?" Since I am serving alcoholic beverages, I assume the answer is no, but people are paying for the alcohol so I am unsure how to answer this question. Your help is much appreciated. Thank you : )

General Tax Questions

neonreefs — Wed, 27 Mar 2013 18:36:37 +0000

So Ive got a few questions about taxes. I am starting up a small coral propogation (coral farm basically) that is run from my home. I know basically what to do to collect sales tax, but in regards to the actual taxes on the profit of the business I am confused. This is not my sole source of income by any stretch of the imagination. The first year in operation Id expect to turn somewhere between $5000-$7500 in profit. My main source of income is from my day job as a teacher. With that being said; heres a few specific questions/topics I could use some help with. 1. When it comes time to file my income taxes next year would I do two separate returns? One for the business and one for my personal income from my job? 2. I know that only the profit from the business is taxable, but how do I account for the other 7.5% of ss tax? I know if you are "self employed" and file using a 1099 instead of a W2 then you have to pay the entire 15% of the ss tax and something called a "Self employment tax" How does this work with the business? 3. I suppose my basic question is what is the simplest/lowest tax way to file the taxes next year for a very small business that has hopefully made a small profit by then? thanks in advance everyone!

Checklist

tonynkris — Thu, 28 Mar 2013 16:05:22 +0000

What is a basic checklist of items needed on a business when filing taxes. my bookkeeper has not been helpful.

SMLLC and EFTPS To Pay Estimated Tax Payments

qwerks — Sat, 30 Mar 2013 03:20:16 +0000

I've created a SMLLC this year and its about time to pay estimated tax payments. I already have an account with EFTPS that I've been using to pay estimated taxes for my sole-proprietor business. So the account is tied to my SSN. Since SMLLC is a disregarded entity in the eyes of the IRS, can I continue to pay estimated taxes via EFTPS using my account tied to my SSN and my personal checking account? I see that EFTPS allows me to create a business account. Should I create a new account using the LLC's EIN and tie it to the LLC's bank account? Would that strengthen the LLC from a legal standpoint? What about paying estimated sales tax for Illinois. Do state treat LLCs the same way as the Feds? Thanks!

Taxes for Multiple Home-Based Businesses

elexsys — Sun, 31 Mar 2013 02:19:56 +0000

Hi. I have two home-based businesses that I make very little money from. I also have rental property. Currently I am living with my parents so I don't claim any of the home for my businesses. However, I do use the electricity and a small portion of the house for an 'office'. How do I report both businesses and the expenses for each? Do I have to do separate returns or can I account for both businesses on one return...? Thanks

Tax info on income from sales and/or commission from foreign company

HochMS — Fri, 22 Mar 2013 05:07:15 +0000

Can anyone provide direction to the IRS tax code about: 1) paying taxes from sales to foreign companies 2) collecting commission from foreign companies? TIA.

Home based business tax information/questions

MSCheath — Tue, 05 Mar 2013 00:46:55 +0000

I recently launched my first LLC, out of my rented apartment in Tampa, FL. I have several questions. How much room must be dedicated to a business to constitute a write off? Florida has no state income tax? How do I file? Can I deduct for depreciated equipment? Can someone lead to a good resource (simple, plain, complete and short), to find out about taxes in FL for an LLC.

Forming an LLC for Forex trading

Lafaso870 — Fri, 12 Nov 2010 19:16:45 +0000

Hello Folks ....i was wondering if forming an LLC for forex trading
helps to get taxes lower.....i dont know if it goes that way or
not...But is there any benefit for trading under an LLC other than tax
brackets if any...
would appreciate some discussion that
thanx

Sales Tax Over State Lines

MIT_MAN — Wed, 09 Jun 2010 12:14:50 +0000

There seems to be a lot of confusion about sales tax for internet sellers. I currently collect sales tax for Michigan since my small business resides in Michigan. My concern is not collecting tax for out of state buyers. My store sells Parrot Toys and business is exploding. I want to get ahead of this issue before it could potentially become a problem.

When I physically go out of State to Ohio for shows, I collect sales tax based on their rules but online sales seem to be a bit more confusing regarding taxes.

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Internet Sales and Taxes

mlittles23 — Tue, 13 Apr 2010 11:34:17 +0000

Can any explain how sales tax work in the US when it comes to Internet based sales? I'm hearing they don't apply in one area, and then somewhere else they say they do?