Today TaxMama hears from Mitchell in the Tax Parlor who just made a disturbing discovery. “I’m in the investigation process of setting up a corporation, S or LLC, for my one-man engineering business. Then I come across this category for Personal Service Corporation (PSC), whose definition includes engineering, but appears to be different than an […]
Tag Archives: Business/Finance
Today TaxMama hears from Mike in the Tax Parlor who tells us “My wife and I formed an LLC and began doing business last January. We are a home-based craft business and have done all our business under my SSN not a Tax ID #. Can we file our expenses/income for the business under our […]
Today TaxMama hears from Ronald in Tucson, AZ who asks: “Is it legal to sell my residence to my C corp and be exempt from capital gains tax?” OK, my friends, this is one of those questions we tax professionals look at, and cringe! Let me try to answer this one, briefly. OK? Well Ronald, […]
Today TaxMama hears from Phyllis in Iowa, who tells us: “I started a small business out of my home in October of 2005. In February of 2006 I made the business into an Limited Liability Company (LLC) with a partner. Do I need to file separate income taxes on myself and the business? If so […]
Today TaxMama hears from Joan in Los Angeles, who has a quick question. “I am a high school teacher. This year I spent a considerable amount of money to become certified to teach yoga in order to teach at my high school as well as at local yoga studios. I didn’t earn any income this […]
Today Michael from Tacoma, WA says, “I loaned money to a friend’s business. Can I deduct some of the loss of the business? I know if I received a profit from it I would have to claim and pay. If so do you know what tax form and/or line I enter it?”
Today TaxMama hears from Bill in the Tax Parlor who asks, “How do you write off the purchase price of an operating business?”
Today TaxMama hears from Marty in Wisconsin who is upset with her tax pro, “Is there a standard deduction of $,5000.00 for the first year that you open a small business? I was told there was and know someone who used it. My accountant will not redo my taxes or tell me if this deduction […]
Today TaxMama hears from Dennis in Texas who tells us, “My wife and I are both self-employed, and we’re both the only employees in our companies. We would both like to start ROTH’s, because we would like to be able to withdraw contributions, without penalty, if an emergency came up. We file jointly and our […]
Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”
Today TaxMama hears several people who are having problems with the amounts IRS wants paid on their balance due, compared to the amount they think they can pay. In most cases, the amounts due are under $25,000.
Today TaxMama hears from Guy from New Jersey who says, “I am trying to close out a Subchapter S Corporation. How do I deal with the loans I have made to the corporation, and the negative retained earnings? If you could just direct me to the proper IRS publication, I do not mind researching.”