For the tax year 2015, I am an LLC and would like to be taxed as an S Corp. Can I file Form 2253 by Feb 15, 2016 and be treated as an S Corp for the tax year 2015? Or, the election will only be going forward (in other words, for the tax year 2016)?

February 23rd, 2023

My mother passed away in March 2015. My brother, mother's estate, and I sold a property we all owned for $195,000. I owned my 1/3 share of the property before my mother's death, which I received through a 'forgiveness loan'. Do I still have to pay capital gains taxes on the 1/3 of the money I received?

November 8th, 2023

If I want my Sole Member LLC to be taxed as an S Corp, should I file Form 2553 to the IRS fax number within the deadline, or do I need to first elect Corporation tax status and then Subchapter S? Additionally, do I need to fill out the first two pages of Form 2553 and fax it to the IRS, and do I need to attach any corporate documents like bylaws or Title of Organization?

September 4th, 2024

My husband and I separated in 9/2003 and I decided to surrender our home with a 1st and 2nd mortgage to Beneficial. I communicated this intention to Beneficial in November 2003, but they never sent the necessary paperwork. In 2006, I received a 1099-C for the 2nd mortgage and paid taxes on the forgiven debt. In 2015, I received another 1099-C for the 1st mortgage. The house was sold in 2005, but we never received any paperwork. Beneficial stopped reporting the debt in 2009. How can they claim forgiven debt for 2014, 12 years after the initial decision, and do I have to pay taxes on that forgiven debt?

November 14th, 2023

I run a small business and rent space in a group store where I live. Each of the vendors in this space pays a monthly rental fee as well as a 25% commission on sales to the owner of the group store, who in turn uses this income to pay rent to the landlord/property owner. The vendors' rental and commission fees are taken out of the first of our two payouts per month, so these payments reflect our net income. The store owner, however, refers to our payouts as our gross income and tells us not to claim our total sales income, nor our rent or commission payments, on our taxes. Even though cash does not change hands when we pay these fees, there is a paper trail, so I believe we should be doing a full accounting of our income and expenses. I wonder, is there an advantage for the store owner if her tenants do not claim our actual gross income or our rent/commission expenses? Is she able to write off more expenses or avoid additional taxes with this set-up? (Or put another way, is it a DISadvantage to me if I only claim net income?) Or alternatively, since the bottom line numbers don't change whether she calls it rental income or something else, does it all come out in the wash?

July 19th, 2024