Our 2-person LLC, which has always filed taxes as a partnership, is doing an S-corporation conversion for tax filing purposes. My understanding is that all shareholders, including spouses in community property states, must sign Form 2553. Additionally, I want to ensure that remaining an LLC filing as a Corp>Sub-S is handled correctly and understand if we need to file Form 3115 for changing our accounting method from cash to accrual. Lastly, I need to know if I can sign the tax forms as a co-president instead of a partner.

February 18th, 2023

Can employee bonuses be paid via 1099, or do they also have to be paid via W2 with taxes withheld?

June 22nd, 2023

Where should I record PayPal merchant account fees, eBay referral fees, Amazon sales commissions, and website hosting fees on Form 1065 for our online book sales business? Should these be recorded under cost of goods sold or other deductions?

August 22nd, 2023

As trustee of an irrevocable trust that came into being in 2014 upon my father's death, I have distributed $5000 each to 15 grandchildren in 2014 and 2015, and equal amounts to my father's 5 children in 2014. The trust has a short-term capital gains loss carryover from 2014 and 2015. I plan to terminate the trust this year and distribute the remaining assets equally to the 5 children. My questions are: 1) Do I distribute the capital gains loss carryover with the K1s to all 20 children and grandchildren, or just to the children since only their trust asset distribution amounts were affected by the capital gains loss? 2) Since there was no positive income earned by the trust, do I base the capital gains loss distribution on the amount of assets received from the trust by the beneficiaries?

July 19th, 2024

If I was granted RSUs/ESPPs in 2011 while working in India, moved to the US in 2014 to work for the same company, and the stocks vested in 2015, how should I report the capital gains on my tax returns, considering the location of vesting and my current work visa status in the US?

July 30th, 2024