Christine H. asked
I have a C Corporation that was lent $250,000 from a private investor. Interest has not been paid, but I understand that interest must be accrued at the Federal Applicable Rate each year even if not paid. Is that interest fully deductible by the corporation even though not paid and picked up as income by the lender? If yes, does the C Corp need to send the lender a 1099-INT? Additionally, if the arrangement is such that when the company sells, the investor is to get a certain percentage, how will the company and investor record the amount paid in addition to the accrued interest and loan payback?
September 21st, 2023
Tiffany C. answered
As a cash basis taxpayer, the C Corporation does not deduct the accrued interest until it is actuall...
September 21st, 2023
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I have started a new C Corp in Texas and want to buy a service van to establish corporate credit. My father is willing to co-sign on the loan, but he faces possible liens for unpaid back taxes. If he co-signs, could the service van be subject to a lien? If the corporation pays all payments on time and the vehicle is titled in the corporation's name, wouldn't it be exempt from attachment by the IRS?
August 22nd, 2023
As a bookkeeper for a construction company, I am issuing 1099 forms for our subcontractors, some of whom are individuals who set up an LLC late in 2015. Should I issue those particular contractors 2 separate 1099s - one in their personal name and one in the name of their LLC? Or should I issue just one form, with the individual's name on the first line, then the LLC's name and the LLC's tax ID number? Additionally, one subcontractor did two separate types of work for the company and provided 2 separate W-9 forms. For one type of work, checks were written to his name, and for the other, to his "company name". Both W-9 forms have his social security number - no EIN. Can we issue 2 separate 1099s for one individual, possibly using a middle initial to separate them in our software?
October 9th, 2024
My husband and I own a business in Tennessee, a recruiting service that places sales reps nationwide with medical device companies. We work from home and can live and work anywhere. We are paid commissions from these US-based companies, and our business is set up as a partnership. We heard we could live abroad (Bahamas) and not pay tax on the first $90,000 (or $100,800 as you stated) of our income. Is this correct, and how would this affect our yearly tax liability?
May 5th, 2024
I am self-employed and have health insurance through my state's marketplace. I received a form from them and filled in the info on my return. I want to know if I can claim the out-of-pocket premium I paid and if I should show that amount under medical deductions or under self-employed health insurance.
June 26th, 2023
I registered an LLC in Delaware on 09/18/15 with myself and my wife as members. We filed an LLC Operating Agreement on 12/28/15 and funded a business checking account on 12/31/15. No revenue was generated in 2015, and no reimbursements were made from the business account to our personal accounts. We plan to file a Form 2553 for 2016 to be taxed as an S-Corp. Do we need to file a Schedule C for 2015, and does the third party who funded the business account on 01/05/16 need to file anything for 2015?
June 5th, 2023
