Selling my C corp for 65k with an outstanding loan of 205k. What happens to my earned income, and for how many years can I get a refund? Additionally, if the sale collapses and I close the business, what are the tax implications? If I have 95k in stock capital gains, can I apply 95k of loss against it all or is there a limit on the amount?

August 19th, 2024

In a community property state, which statement is correct regarding filing a tax return for spouses that file as married separate?

January 11th, 2023

As a sole proprietor in California, what do I need to obtain to legally sell tangible items, specifically apparel, and how does this affect my tax situation compared to other business structures like S-Corp, C-Corp, or LLC?

August 10th, 2023

According to the instructions for form 8692 and for amending returns, a taxpayer must file by the due date of the return for amending filing status from MFJ to MFS. The reason for this amendment is that the taxpayer has excess advance premiums tax because they earned more than 50% of the federal poverty rate. Had they filed separately in time, even though they did not qualify for the premium tax credit, the total recapture would be less than the recapture on filing jointly. The Advance premium credit was for the spouse. There seems to be no exceptions they would meet as there are no issues in this long-term marriage. This problem came to my attention when they sent me form 1095-a after the extended return was filed. The spouse cannot get insurance with credits for 2021 without filing form 8692. She would qualify for some credit filing separately but not jointly. In fact, she would be under the 400% of the federal poverty level and only be subject to the maximum recapture in table 5 for form 8692. There does not seem any win-win here as eventually the IRS will reconcile the return since form 1094- premium tax credit is sent to the IRS and will not honor their refund carry-over as estimated payment for 2021 and she would not be able to get a lower insurance rate from the HealthGov marketplace. The form 8692 needs to be filed and since it was not filed and we are beyond the due date or extension date that the joint return was filed, there are no good options available. This is a terrible situation for people who have underestimated their income when signing up for the Insurance Marketplace. Any thoughts?

June 28th, 2024

I recently formed an LLC with NY state and received the TR-570 form. There's a check box asking if the LLC is a single-member LLC that is disregarded as an entity separate from its owners for federal and New York State tax purposes. The disregarded entity should obtain a federal EIN. Can you explain the statement?

March 2nd, 2023