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US LLC With Sole Member Who Is Non-US-person Residing Outside Of US Working Remotely As An Independent Contractor For A US Entity, Is The...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

I presume you mean the income earned by the independent contractor. That is not effectively connected income as the contractor is not a US citizen or resident and is performing the work outside the United States....   Read More
We Sold Our Interests In The LLC, Of Which We Were Majority Owners In August 2015. I Am Trying To Finalize Our Taxes For 2015, But I Have...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

The only form you should receive from the LLC is a K-1. It is due when the return is due, April 18. However, it is not uncommon for partnerships to file for an extension, so you may not see the K-1 until September....   Read More
What Does The Control Substances Act Say About Marijuana And The Taxation Of Them? Does It Cover Any Such Tax Rules?
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

The Controlled Substances Act classifies marijuana as a Schedule 1 drug, meaning that, under Federal law selling marijuana is an illegal business. This is true even if the business in located in a state that allows...   Read More
What Are The Rules Regarding Nj Imposition Of 100 Per Month Penalty For Late Returns? What Tax Years Does It Apply To? What If There Is No...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

The NJ Division of Taxation begin imposing the $100 per month late filing penalty as authorized by N.J.S.A. 54:49-4 in 2004. The law provides that this penalty may be imposed for each month (or fraction thereof)...   Read More
We Never Showed Our Cows On Our Taxes. We Are Retired. Due To Poor Health Had To Sell Them. Collected 40,000.00 Do We Have To Show That As...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

Yes, you do. That is a taxable transaction. However, if you had any cost basis in the cows, you can deduct that basis from the proceeds to reduce the amount of tax due. You might consider filing amended returns for...   Read More
When Itemizing If $$ Of Medical Expenses Entered On Schedule B Are Below Threshold For Deduction Is It Still Necessary To Hold On To All...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

If the medical bills are not sufficiently large in a given year you cannot take a deduction for medical expenses on Schedule A. Those bills cannot be used in subsequent years. In the event of audit, the bills would...   Read More
For Building Depreciation Purposes, What % Of Property Value Is Considered Acceptable To Attribute To Land If No Land Assessment Value...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

There is really no formula that can be used to make that allocation, as each parcel of land is different. You can place an identical house on a 1/4 acre tract of land, or you could place it on a acre parcel. The...   Read More
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Is It Correct That A Mixed Use Property Is Considered Acommercial Rental For IRS Reporting Purposes? This Is A Multi-unit Property Overseas,...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

In most cases, that would be true.The IRS classifies mixed-use properties as commercial unless the income from the residential portion is 80% or more of the gross rental income. So if 80% or more is residential,...   Read More
At What Point Do I Need To Pay Alternative Minimum Tax?
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

There is no easy answer to that question. The AMT for individuals and for corporations differ and have different thresholds. The AMT is essentially a parallel tax system. You calculate your regular income tax and...   Read More
How Do You Report Matching Contributions To A 401(k) By A Partnership On Behalf Of Its Partners On Form 1065? Do These Matching...
User Photo John Stancil
Tax Professional Level: Master Tax Advisor

The contributions must be shown on the K-1 as Guaranteed Payments. Line 4 of the K-1. They would also be shown on line 13, code R. As a guaranteed payment, the amount would be included in taxable income. However,...   Read More

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