asked
I started an IT consulting business as a sole proprietor in 2016. My wife helps with office work, but I didn't make her an employee or run payroll for her in 2016. This means she couldn't contribute the $18K employee contribution to her solo 401K for 2016. My question is about 2017 and beyond. If I find a permanent job as a W2 employee starting April 2017, and my business earns $30K in Q1 of 2017 but nothing from April to December, can I run payroll for my wife in 2017 and pay her $20K so she can save $18K as an employee contribution in her solo 401K? Also, if the business earns no money in 2018 but I keep it open and continue running payroll to pay my wife $20K annually, can she save $18K in her solo 401K without it being risky? What about the following years? My goal is to maximize our retirement savings and reduce tax obligations.
October 7th, 2024
My son works for a man in our subdivision putting up wedding tents. The man pays my son $11/hr and provided all the tents, tools, and everything to set up these tents. But he gave my son a 1099 form to file taxes. My son just turned 16 in December and made $7338 last year. Should he be getting a W2 or this 1099?
April 24th, 2024
We sold our LLC-registered company in Louisiana for 2.1 million, with an initial investment of 920k. We are residents of California. What are the tax implications, including state and federal taxes, on our personal capital gains, and how is the federal long-term capital gain tax bracket calculated?
October 22nd, 2023
I am supposed to receive part of an inheritance in cash in the next 2 weeks. The lady mentioned putting it on my 2016 taxes, but I already filed those and spent the refund. I am confused about whether this inheritance will be taxed or considered income for tax purposes. I am located in California.
May 2nd, 2024
My parents want to add me as JTWROS to a brokerage account with stocks, bonds, and funds, that will currently pass to me in their will. We all live in PA. Assuming I don't access any of the assets, does/could this cause a loss of step-up basis for some portion of the assets?
February 25th, 2024
An individual with an immigration visa (DV1) came to the US for 6 days in 2016, converting to a Green Card holder. They spent the rest of the year in Israel and plan to return to the US in 2017. They are married with children, and their spouse also has a Green Card. How should they file their tax returns for 2016, considering they may have dual status (non-resident and resident), and what strategies can they use to eliminate or reduce foreign earned income tax?
August 13th, 2024