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Questions tagged [income-tax]

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-3 votes
1 answer
130 views

On Forming an LLC in a State with Greater Privacy Protection [closed]

I live in Virginia and plan on starting a small LLC publishing company. For privacy reasons, I would like to establish the LLC, in either Delaware or Wyoming which does not require the name nor the ...
0 votes
2 answers
77 views

What are the federal tax consequences of the repossession of a property where the FMV is less than the value of the loan?

This is a conceptual question, but I have included a sample set of facts to set the stage: Bank loans $200k to Individual A to purchase home. Individual A pays the loan down by $20k, but eventually ...
0 votes
1 answer
1k views

Do I have to file state income tax if I am working mentally?

I am a software engineer. I have the ability to write software in my mind without a computer. It's probably an advantage provided by my autism. There were a few times the code of an application ...
-1 votes
1 answer
151 views

Credit card debt past statute of limitations 1099C

I was issued a 1099c income for credit card debt that was relieved. The debt was made in 2018 in California, 3 year SOL. That means the SOL expired in 2021 and it is now 2024, so it isn't legal debt. ...
1 vote
1 answer
59 views

One trust paying out to another trust at the death of the grantor

Imagine a case where parents set up an irrevocable defective trust for their one adult child with the terms of the trust being that when the parents die the original trust goes away and the money goes ...
2 votes
1 answer
128 views

Does Lehrmann need to pay income tax on the rent that Seven paid for him?

It recently emerged from Bruce Lehrmann’s defamation case in the Federal Court of Australia that Lehrmann received 12 months’ accommodation, potentially valued at $130,000, in exchange for his “...
1 vote
2 answers
48 views

wash rule applicability between regular and retirement accounts

I have a regular brokerage account and a retirement brokerage account. Suppose that I actively trade in both accounts in a given tax year. I know that at tax time, my broker will generate two ...
3 votes
1 answer
119 views

Are resale of goods taxable by individual in germany?

Suppose I buy an induction cooker from IKEA, and then later when moving away from where I live, I decide to sell it to someone moving in. When I do this, I get some money back. Is income gained from ...
1 vote
2 answers
61 views

How does gift tax work for unmarried households?

Say Ash, Bret, and Charlie decide to form a household. Ash has a house that would rent for $10,000 a month, Bret has three extremely expensive cars, and Charlie has a huge collection of very valuable ...
0 votes
1 answer
97 views

Filing status for two families at one address [closed]

Under US tax law, (for example, in Missouri), are there any special filing considerations for two families with separate qualifying dependents at the same address, if they can provide proof of both ...
0 votes
0 answers
31 views

Living Revocable Trust and Death

If a person dies with a living revocable trust then that trust becomes irrevocable at the date of death. When it becomes irrevocable, does the date the trust was created change? That is, if a person ...
1 vote
1 answer
77 views

What Would be the Legality of a Company Paying Individuals for their Data?

Let's say I started a new social media company, which collects and sells it's users' data. To entice people to use my social media site, I give them a cut of the money that I get from selling that ...
3 votes
1 answer
128 views

For an LLC that is not a C-Corp but taxed as a C-Corp (form 8832), does the EIN change when becoming real C-Corp?

Suppose someone creates an LLC and will not be raising funds now, and won't have other company owners yet (like a sole-proprietorship), but elects for the LLC to be taxed as a C-Corp with form 8832. ...
1 vote
0 answers
292 views

EIN number(s) for an Estate - Are two needed?

A person dies with money in individual brokerage accounts and a living revocable trust which has brokerage accounts. Given these facts, it is my claim that to settle the estate, you should get two EIN ...
1 vote
1 answer
229 views

Getting an EIN number for a Trust and Section 645

A person dies with a revocable trust that becomes irrevocable after the person's death. The trustee of the irrevocable trust wants to get an EIN number. If in the process of getting the EIN number he/...
2 votes
2 answers
144 views

Car Debt and the IRS

A certain tax payer is on a payment plan to the IRS. The tax payer owes $10,000. The tax payer has missed several payments and now the IRS is going to take away the tax payer's car. The car is worth ...
2 votes
2 answers
118 views

Final Income tax Return due to death

If a person dies in 2023 and he has significant income in 2023 he has to file an income tax return. Would that income tax return cover the entire year or would it just cover Jan 1 to the date of death?...
0 votes
0 answers
45 views

Trust Income tax and distributions

A hypothetical person has an irrevocable trust fund set up for him when his/her parents die. The adult child is the sole beneficiary of the trust and the sole trustee. He has a general power of ...
1 vote
2 answers
257 views

Can you keep money from an unknown source?

I have recently rewatched Breaking Bad, and something that happened in the last season had me wondering. Jessie tries to give $2.5M each to Mike's granddaughter and the family of the boy that was ...
14 votes
1 answer
2k views

What is the maximum number of countries in which one can simultaneously be tax resident?

Inspired by this Reddit thread and other stories of people working remotely from all over the world, apparently without giving too much thought to the legal implications, Working abroad remotely and ...
-2 votes
1 answer
137 views

What laws prove tax protesters are wrong? [duplicate]

Tax protesters are frequently penalized for raising the "frivolous" argument that the individual income tax is not mandatory but voluntary. Can anyone provide the specific provision of the ...
1 vote
0 answers
41 views

Proceeds from a law suit and taxes

Suppose that an investor has owned the XYZ stock for a long period of time. It is then taken over by the ABC company and the investor has a long term capital gain. A couple of years later, a class ...
0 votes
0 answers
2k views

What can be reported on Schedule 1 (1040) Line 24z?

Schedule 1 of the 1040 U.S. individual income tax return for tax year 2022 has a line in part II, 24z, which says only "Other adjustments. List type and amount". The instructions for that ...
2 votes
1 answer
63 views

Tax year for spending when bank transfer begins and ends in separate years

As a business expense, Alice initiates a bank transfer to a company on 30 Dec 2022 and the money reaches the company some business days later, in 2023. For U.S. tax purposes - assuming Alice files ...
1 vote
0 answers
46 views

Is the effective tax rate for a digital nomad living in portugal 10%?

I read online that someone who earns over ~2800 euros per month can live on a digital nomad visa in Portugal and: There are several advantages: no taxes on foreign income; 20% tax on income earned in ...
1 vote
2 answers
2k views

San Francisco Local Income Tax

Reading https://www.tax-rates.org/california/san-francisco-income-tax it seems to suggest that my employer is liable to pay a 1.50% tax on my income due to me living in San Francisco despite the ...
0 votes
0 answers
44 views

When exactly does UK self-assessment tax accrue?

In the UK, "Self-assessed income tax (for those who pay by instalments) will be deemed to accrue evenly over the tax year in which the relevant accounting period ends. The accrual will be based ...
7 votes
2 answers
868 views

How can employer and union agree to tax-free payments?

The German news reports that the employer and employee representatives have reached a new collective labour agreement covering metal and electricity industries. I was surprised by on aspect of the ...
-2 votes
2 answers
182 views

Can I sell a handshake?

Can I charge someone for a hand gesture such as a high five or a handshake? How would a receipt be written for such a thing? It seems like a silly question but I am genuinely curious and want to make ...
0 votes
1 answer
70 views

Buying back a covered call

Consider a situation where an investor owns a stock for over a year and sells calls against it that expire in about 90 days. You can assume that this is a qualified covered call for tax purposes. ...
1 vote
1 answer
121 views

Bavaria (Germany) - Double Taxation of Immigrants [closed]

I moved to Bavaria, Germany, in late march 2021 from Australia. I have paid income tax for that year in Australia. I recieved letters from the Bavarian state government asking for income tax ...
0 votes
1 answer
39 views

Are business expenses put into escrow by a freelance marketplace deductible before they are released from escrow?

Say that a U.S. person is a sole proprietor, and pays a contractor to do some work to support his business. This would normally count as a business expense, deductible on the U.S. person's taxes. But ...
1 vote
1 answer
66 views

How Would A Sweepstakes Sponsoring Company Avoid Paying Taxes on Sweepstakes Entries and Winnings?

Lets say I were to host a service that allows for businesses to use me to handle their sweepstakes promotions. I would handle paid entries, alternate entry methods, use a third party to pick winners, ...
2 votes
1 answer
32 views

What's the point of this partnership template revenue clause?

In this partnership agreement template it states that The Company will allocate items of income and losses as if the Company were liquidated, its assets sold at their fair market value, and the ...
3 votes
0 answers
78 views

Tax Responsibility - American Remote Work in Toronto [closed]

I'm an American software developer working for an American financial services company that only services American citizens and permanent residents. I am a remote worker who lives and works in Michigan....
2 votes
1 answer
41 views

Startup business what can I deduct in Ohio

Per Ohio law I see that it shows taxable income can be deducted up to $250k. If I have a small startup business and make less than $250k a year as a side business, is it true that this 100% deductible?...
1 vote
0 answers
74 views

Is money received via crowdfunding or from friends for medical treatment taxable in India?

This question pertains to income tax in India. Suppose a person receives some money via crowdfunding. This may have been through a crowdfunding website, or from friends by sharing messages on WhatsApp ...
-2 votes
1 answer
106 views

How do billionaires get out of paying taxes? Can "normal people" do the same thing?

How do billionaires avoid having to pay taxes? Can "normal" people with average incomes do the same thing?
-1 votes
1 answer
76 views

How could you commit tax fraud in the UAE where income tax does not exist?

UAE does not have income tax but it has another form of tax. https://www.bdo.ae/en-gb/insights/new-tax-evasion-court-uae-en says that the UAE created a new court for tax evasion in November 2020. How ...
1 vote
0 answers
34 views

Am I French Tax Resident

I moved to London from Paris in March 2021 while my wife and son are still in Paris. I was assuming that I am a UK resident for tax purposes till I came across "the definition of 'domicile fiscal'...
1 vote
1 answer
101 views

Death of a Grantor and taxes

Imagine Paul sets up a defective irrevocable grantor trust for his daughter Mary. After the death of Paul, does the trust have to get an EIN number and file a separate tax return? Is there a way that ...
0 votes
2 answers
85 views

Are these two trusts substantial identical?

The following is a quote from IRS Instructions for form 1041: Two or more trusts are treated as one trust if the trusts have substantially the same grantor(s) and substantially the same primary ...
1 vote
1 answer
42 views

How would this non-grantor trust be taxed?

Paul sets up a irrevocable non-grantor trust for his adult daughter Sue. He funds the trust for $200,000. In the first year, the trust earns $15,000 from investments. The trust does not distribute any ...
2 votes
0 answers
144 views

Tax treaty between UK and USA: Article 20A

I am a UK citizen who has just finished working in the US after <2 years. I have claiming tax treaty benefits using article 20a as I am a J1 research scholar. However, I wasn't present in the UK ...
2 votes
2 answers
216 views

What is "income" for tax purposes?

I can find taxable income, which seems to basically be "income that is taxable". Okay. "Income" gets me something like "money received", but this seems vague for legal ...