26 votes

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

Sample answer: Be a US citizen - automatic US tax residency Own a UK property and live there for 91 days to gain UK tax residency Spend 60 days in India plus a total of 365 days over the previous 4 ...
user3490's user avatar
  • 395
15 votes
Accepted

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

certain kinds of payments just are tax-free There are several kinds of tax-free special payments in germany, such as certain types of additional payments (for example "Vermögenswirksame ...
Trish's user avatar
  • 37.3k
7 votes
Accepted

Can I sell a handshake?

The way law works is that you don't need to find a law which says you can do something. Instead, there needs to be an absence of a law which says you cannot do that thing. In other words, you can do ...
JBentley's user avatar
  • 7,737
6 votes

Filing status for two families at one address

You have two married couples, each of whom have dependents. More than one family can live at the same address for tax purposes. The analysis would probably be different for census purposes, which ...
ohwilleke's user avatar
  • 206k
5 votes

Are resale of goods taxable by individual in germany?

There are actually two types of taxes that may apply in this case: Umsatzsteuer (value-added tax) Einkommensteuer (income tax) Umsatzsteuer Umsatzsteuer must only be paid if you are legally ...
sleske's user avatar
  • 8,065
5 votes
Accepted

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

Since Alice uses "CASH ACCOUNTING" expenses are accounted for when they are paid by her, not when someone else receives it. So in your hypothetical, when she initiated the transfer would be ...
jwh20's user avatar
  • 3,496
4 votes
Accepted

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

By putting their finances into a complicated legal structure, moving assets and income through various jurisdictions, and lobbying to make that legal. They also employ highly skilled lawyers who ...
o.m.'s user avatar
  • 16.5k
3 votes
Accepted

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

If everyone involved consents adequately, this would be legal (assuming, of course, that the data isn't being collected as part of a scheme to defraud the users). The United States has few data ...
ohwilleke's user avatar
  • 206k
3 votes

What laws prove tax protesters are wrong?

The 16th Amendment to the Constitution says: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and ...
jwh20's user avatar
  • 3,496
3 votes
Accepted

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

UAE obviously taxes some entities and some transactions, so e.g. not keeping the appropriate records in those regards is considered tax evasion... according to the article linked in the question. On a ...
Dolphin 613 Motorboat's user avatar
2 votes
Accepted

What is "income" for tax purposes?

Clarification This is answered by upon the federal income tax in the United States. State and local income taxes and income taxes in other countries don't usually define key terms like income in ...
ohwilleke's user avatar
  • 206k
2 votes

What is "income" for tax purposes?

Your example is a borderline case. If you receive compensation for you work, it's taxable. Compensation does not need to be money: it can be goods, services, actions, non-actions or whatever else you ...
Hilmar's user avatar
  • 1,323
2 votes
Accepted

Are these two trusts substantial identical?

Now if two irrevocable trusts have the same grantor and the same primary beneficiary but a different number of trustees (One trust has asset protection, one does not.) are they considered ...
ohwilleke's user avatar
  • 206k
2 votes
Accepted

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

You pay income tax on earnings, not revenue The $1,000 prize money you receive is not earnings, in an accounting sense it is a purely balance sheet item - the $1,000 cash asset comes with a $1,000 ...
Dale M's user avatar
  • 205k
2 votes

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

united-states This is almost certainly a company subject to U.S. tax law because the language is language tailored to the U.S. Internal Revenue Code. the question is answered with this in mind. In ...
ohwilleke's user avatar
  • 206k
2 votes
Accepted

Startup business what can I deduct in Ohio

Based on the linked document, that does appear to be the case, provided that the business is organized as a sole proprietorship or a "pass-through entity" such as an S-corporation or an LLC. ...
David Siegel's user avatar
2 votes
Accepted

Buying back a covered call

The loss would be a long term capital loss. If you look at section 1092 of the tax code, it says: Any loss with respect to such option shall be treated as long-term capital loss if, at the time such ...
Bob's user avatar
  • 1,163
2 votes

Bavaria (Germany) - Double Taxation of Immigrants

You need to provide the requested information You will be taxed in Australia on your Australian income and in Bavaria on your Bavarian income but both systems need to know your total worldwide income ...
Dale M's user avatar
  • 205k
2 votes
Accepted

San Francisco Local Income Tax

The tax in question does not exist. San Francisco does not have a local income tax. It used to have a 1.5 percent payroll tax, but that tax was repealed and replaced with a gross receipts tax in 2020. ...
bdb484's user avatar
  • 58.2k
2 votes

San Francisco Local Income Tax

An "income tax" is levied on employees; it may be directly withheld by employers from the employee's gross wages or may be paid directly by employees, but in either case it's the employee's ...
Sneftel's user avatar
  • 1,890
2 votes

How does gift tax work for unmarried households?

united-states The use of Ash's house might be a gift of $3,333.33 per month ($40,000 per year), but not necessarily. The IRS often treats the privilege of allowing your friends and family to use ...
ohwilleke's user avatar
  • 206k
2 votes

Car Debt and the IRS

australia The lender is paid first Assuming the lender has properly registered a lien under the Personal Property Securities Act then they have first right to the proceeds of the disposal of the ...
Dale M's user avatar
  • 205k
2 votes

Credit card debt past statute of limitations 1099C

the 1099 being issued means it is taxable income despite not being valid debt of any kind being written off. This is the error in the question's logic. The fact that something is reported on a 1099c ...
ohwilleke's user avatar
  • 206k
1 vote

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?

Now, my understanding (if correct) is that this LLC is not a C-Corp, but only being taxed as one, and it will receive an EIN. If that previous sentence is correct, does becoming an actual C-Corp later ...
ohwilleke's user avatar
  • 206k
1 vote

Getting an EIN number for a Trust and Section 645

If the trust's income is reported under the estate given an election under 26 U.S.C. § 645, it does not need to apply for a second EIN while the estate continues to exist.
ohwilleke's user avatar
  • 206k
1 vote
Accepted

Final Income tax Return due to death

united-states Income Taxation At Death Final Income Tax Returns Of Decedents The return covers income from the start of the tax year (usually, but not always the calendar year, other elections are ...
ohwilleke's user avatar
  • 206k
1 vote

Can you keep money from an unknown source?

The process would play roughly as follows. Jessie gives $2.5M to Mike's granddaughter as a gift. Mike's granddaughter files this as income. I believe the appropriate tax law would be inheritance law ...
quarague's user avatar
  • 3,328
1 vote

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

While that's not what is happening here, as explained in Trish's answer, there is also another way in which such payments can be (made) "tax-free": the employer simply pays enough that the ...
Jörg W Mittag's user avatar
1 vote
Accepted

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

Depends if you pay tax on a cash or accruals basis If cash, it’s when you spend the money. If accruals, it’s when you become liable for the expense (i.e. when the contractor gets the money). It is ...
Dale M's user avatar
  • 205k
1 vote
Accepted

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. Yes. Is there a ...
ohwilleke's user avatar
  • 206k

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