WITAXLADY

Volunteer worked 6 months and the organization got a grant and split it up amongst the volunteers.  Taxpayer forgot to claim it in 2021- no 1099, just her check stub.

Amend? - Claim as other income?

Only expenses would be miles..

Thank you,

darlene

so last year we did our own WISP - thought it was fine.

Now after review - I think it is not adequate -

We have the IRS 15 page document filled out, read and signed by each employee, etc - what we are doing ourselves monthly and a quote for $100/month for the servers (2) to monitor them and $15/month to monitor each laptop or desktop  - Is this comparable?

Thank you,

D

hm - this still seems to me to be a tax issue??

update - WI

Sch C - mom has 1 with both luncheonette and organic market

splitting off into 2 businesses as luncheonette can now stand on their own with a manger

Market very profitable now- = LLC to S corp in WI so as to have wages and distributions with retirement to lower SE Tax due

the 2 LLC's under 1 S corp and the S corp would be the parent company doing the payroll as holding company

The 3rd company splitting off is a skincare line that is doing very well - but has another person involved with the mom - so a separate LLC - for liability

My question - can LLC's with different members all be under 1 S corp - if the S corp does not have all of them as shareholders - as the other person is only involved in the 1 LLC
Or should that be it's own LLC and then it's own S corp

2ndly, And then can the 3rd LLC/S corp contract to the first S corp to do it's payroll?

And if so - would there be still 2 payroll accounts/EIN's or just 1 from the 1st S corp as contract labor - like a temp agency does?

Make money! or would not consider

D

yup! me too...

ORGANIC business has a store and a luncheonette. They also have started a wonderful skin care line.

1 party is common to all 3

The skin care is mother daughter

The other 2 businesses are mother and (husband)

Husband is the rental LLC for the building and another property they rent out and grow herbs on

The Sch C's have become profitable and looking at LLC's and S corp

I know the S corp can be the parent co or holding co for the Market LLC and the Luncheon LLC with the mom being the sole shareholder.

She wants to put the skincare under the same S corp - Is that possible with different shareholders? of each LLC in the S Corp?

Or does the Skin care need to be a separate S corp?

Thx

payroll would be done by the s corp as the parent company

Thank you

He has a couple kinds of cancer - surprised he is still alive..

A phenomenal year but worked really hard this year and is willing to pay taxes if need be - but no insurance company will cover him - has been on WI Badgercare but need to have low income for that.

Maybe get by 1 year 2022 as an aberration and then from here on less $$/income as wholesaler

Or just a draw with putting money into a Foundation 1x/1 year  - this year and taking a salary yearly.

I thought it might be too late to do.

Thx D

Sch C - LLC client came in today - made way too much money!! and he is up to 4 cancer surgeries a year.. and struggling with keeping insurance coverage and high income..

First we talked about an S corp - if so - do we put it into his wife's name so he has no assets as future develops.. could go on disability then.

She works with him as bookkeeper.

Or they inquired about setting up a Foundation.

Donate most of their profits ($300,000) from 2022 this year - to a newly created Foundation, non-profit - pay themselves a salary - under $40,000 total for management and donate the 5% each year.

Would that then bring the Sch C or S corp down to $20,000 income as charitable donation to the foundation and Fopundation non-profit/non-taxable?

Sounds too good to be true??

No issue with being a non-profit - can live on $40,000

For 2023 - Could they then just turn the business into the Foundation and rent the building/shop to the foundation to pay those bills? Continue the business within the Foundation?

Or just quit their business ?

Are a  retail used car dealer and looking at doing wholesale so do not have to deal with rude public.

Thank you!

darlene

THANK YOU!

I would do that as the new laptops all come with Windows 11 loaded??

Happiest of thanksgivings - counting our gifts and blessings.

D

All my current desktops and laptops are Windows 10

I am looking to purchase a dell on black Friday with windows 11 - for ATX - Will this be compatible with dropbox and flashdrives back and forth remote?

Thank you,

D

grrr - $440,000 of Goodwill? Is that an usual amount?

http://archives.cpajournal.com/old/12543355.htm

if the cost of the  client list can be separated from the goodwill - it could be considered a separate property.

In this case it is a milk truck route and the client list is the list of farms sipping to a specific cheese plant -

So I think a case could be used by #'s of milk per farm could be used to make part of the the $$$ be tangible. ??

And the excess GW?

D

Ours are the reverse - but 10 a year and S corps as trade or business...

Not happy with the new K-3 offer!! Explaining Why THEY DO NOT WANT A -0- k-3 WITH TONS OF PAGES OF INSTRUCTIONS - oops - maybe a falt $750 fee

as none of them have foreign income and now having to do an Operating Agreement - as most are single shareholders.

D

we discussed the verifyle/mango/efile approach to delivering their tax returns - But what do we do with those who gave us their tax papers?

Easy decision when they emailed their documents - not sure what the solution is when they mail or drop off?

D

so could a Client List be considered tangible?

The partnership sends specific notification to the partners by two months before its filing deadline, without extensions (January 15 for calendar-year partnerships); and

No partners specifically request Schedule K-3 from the partnership prior to one month before the entity’s filing deadline, without extensions (February 15 for calendar-year partnerships). If the information is requested after February 15, then the partnership only has to provide the information to the requesting partner and does not have to file the K-2 and K-3 with the IRS.

Meaning we need to have our partnerships / S corps send letters to the partners? Shareholders asking if they want one... ?!! Explain that to them.. by Jan 1?

WI Tax Lady

per a Naea class on S Corps this week.

still doesn't cover increased cost of toner, paper, postage, etc

Can goodwill be written off through Safe Harbor? 2nd year  -need to have more expenses!!

I know it cannot be sec 179'd

Thx D

I know I ask strange questions and I do not answer too manyu as you all answer better than I do - but I chime in when I can..

But I could use some insight please on my questions -

Mostly because they are are areas I am not very familiar with and hope to never cross this way again!!

And some are other states - I should say NO!

Thank  you! Best and happy November!

We go right into only 10 days to do 3rd quarter! and now have about 78 S corps!!  Finish the Oct tax drop-offs!

Too much squeeze,

November is cleaning and organizing

December we are booked at Fort Myers Beach???? - a client's condo - have not heard the state of yet..

but going somewhere..

And looking for someone to transition to train and buy me out over the next 3 years..

Is there anyway a CA resident can take off the Trust NOL's from WI?

She has no assets in WI, sibling took them all. she cashed out.

Are they just lost?

Thank you,

D from WI

WI resident - worked in CA first half of the year -

So on the CA NR - I would subtract the other half of the year as it is not in CA - as if a CA resident - and they were not in CA so not CA wages?

That is how other NR's are done..

Then the 2106 is allowed for CA - but can I take all of the expenses or just the ones incurred in CA? It seems to take all of them and the instructions do not seem very clear. 

And then the tax prep is also allowed - where does that go now on the CA?

Thank you,

d-

hmm - I would re read articles on expenses against scholarships - Well known speakers Mary and Dave Mellon would say add up all tuition and expenses and net against the Grants..

I even read that on the IRS website somewhere to back it up..

Just no time to find the cite  now..

The K-1 is a loss from another state - is there any way that can be used against income of CA - I will research - but not until next week.. and if so, file an amend..

thx D/WI