asked
I need to start a new company file for a client who has customer retainer balances. What is the offsetting account to accomplish this? I know I need to credit retainer liability, but what do I debit? Originally, it was debited to cash, but I can't debit cash again because it's on a closed period and that will throw off my bank reconciliation.
December 3rd, 2024
I exercised Stock Options in 2005 and had the appropriate Federal tax withheld from the proceeds of the sale. I have a nagging doubt that I incorrectly prepared my 2005 Federal Return, causing a payment rather than a refund for the first time as a taxpayer. Do I need to account for these taxes already paid in some part of my 2005 Federal return?
March 28th, 2024
I own 10% of an LLC that is selling an asset and liquidating. The LLC has been in existence for 2 years, but my holding period is just 6 months. Is my portion taxed as personal income or capital gains, and is there a way to structure the deal to be taxed at the capital gains rate?
September 3rd, 2024
What is the tax treatment for a shareholder who is also a lender to a bankrupt corporation? Specifically, how is the worthless stock treated (capital or ordinary) and how is the bad debt treated (capital or ordinary)? Are there related party issues that affect the tax treatment?
April 1st, 2024
My sister is leaving $40K to care for my mother. She is sending it in increments of $10K to her three siblings and mother to comply with the gift tax laws. Where do we put the money to care for my mom while paying minimal tax?
October 20th, 2023
How do I find out if my business status with the IRS is a Corporation or an S Corp? We had filed the papers incorrectly as a Corp initially and were working with HR Block to get the status changed to S Corp, but the person handling our case passed away and HR Block can't help us now.
February 15th, 2024