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legal protection and the flexibility to switch entity types - there are many other benefits, you can see my video here for more information ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-supr7VYaZcA.htmlsi=GQRkbrFCHE-IwYCm
Hi I live in Fl since 2002 and own a home here, but got a job offer in CA started working in ca Feb 2023. My employer VA did not deduct state withholding tax in CA. Is this legal?
we cannot advise on the legality, but they should know better and should have deducted it, it is the obligation of the taxpayer not the employer to pay the taxes, so, in other words, you should have checked into that before accepting the job. I know that is not the best-sounding answer, but that is correct.
If i am retiring overseas can i domicile in SD instead of NY to save on state tax. It don't make sense to keep the NY domicile since i will be 100% out of the US.
Ive been paying 100.00 more every month on my home loan,i have paid down 10,000 dollars in 7 years then if i was paying the usual amount every month. I was so surprised how much less my 30 years is by doing that. Very good info.
exactly, I am glad to have helped you in a more secure financial future. Thank you for your interaction. Please let me know how I can help you further. Best regards, Greg
Is this generally the steps to take to make sure California has very little cause to tax a once prior resident?: For personal taxes purposes: California resident moves and sets up domicile in Florida (sells property and severs all ties to California: sends a final Tax return). Stays in Florida x 6 months (has family there, gets driver’s Lic, register’s to vote, etc. = see steps suggested below:). File a Florida Declaration of Domicile Obtain a Florida Driver’s License Register Your Vehicle(s) in Florida Register to Vote in Florida File Final Resident Income Tax Return in Your Home State (California = state it is a final tax return Rent or Own a Principal Residence in Florida Update Your Estate Planning Documents to Comply with Florida Law (have a will/power attorney/trust / estate plan set up in California = transition to Florida) Transfer Bank Account(s) to Florida (not critical) Change Mailing Address on Account Statements to Florida Live in Florida for a Majority of the Year (plan to stay for 6 months) After 6 months in Florida - the hope is we have established our Domicile in Florida and then will be spending large part of our time outside of the country (Expatriate). Keep our Florida ties and domicile status with distant future plans to return to Florida full time. Is this excessive or is it a situation where there is no one foolproof way to ensure California can’t clam you a resident / domicile of their state for Tax purposes?
This question is beyond the scope of an informational YT video. I would advise seeking out a paid tax professional with multi-state experience. I would also look at tax court cases for a similar situation and see how the courts have ruled in CA. You are certainly not the first one to move the way you did. I apologize if I cannot further guide you, as we are prohibited from rendering formal tax advice to an individual we have not formally engaged within a professional setting. We may be sued for malpractice if we render advice without being in the thick of it. I hope our video and my response give you a better direction. You are on the right track :) Please let me know if I can be of further use to you. Sincerely, Greg Freyman
This was so helpful! I'm a new single owner s-corp as of this year. I've been doing my own payroll through quickbooks, which sends in all of the payroll and FICA taxes as an employee, but I'm so used to sending in massive checks as an LLC that I was daunted at how to calculate quarterly estimates payments. This was more information than I could find anywhere. Thank you so much for making this video. I'm definitely going to be watching the estimate videos as well. I will definitely recommend this video to others!
Not that it is any big deal, but I think you meant Alaska and not Alabama on your list of tax-free States. Also, New Hampshire does have a dividend and interest tax. I had a wealthy relative who upon retirement looked into relocating from Massachusetts to New Hampshire, but the tax savings in his case were not that great, much to my surprise. He had a very very large investment investment in savings portfolio.
one needs to look at all the taxes to make such a choice, some states have no taxes but the overall tax cost is greater than a state with income tax. Yes you are correct, thre are many taxes that can come into play in our txa world, those are some examples you are correct, here we discuss income tax as that tends to have the most impact and that is what get people the most, hope that helps :)
How long does it take to not be a California resident? I've lived in California my whole life recently moved overseas to ASIA I wanna form a LLC but do not want to form in California $800 annual fee looking at other cheaper states Wyoming how long do I need to be away from California not to be considered a resident ive heard if I form in another state I still need to pay tax to Cali.
Hey there, this is not a straight forward answer as you are asking about your business, and that is certainly more complex than personal taxes, which is what this video is about. If for the franchise tax of $800 you are going to need to pay that as long as you have the CA entity, whether or not you pay business taxes or personal taxes is an entirely different question. Hope that helps, and sorry it took so long to get back to you.
I have a client that opened a new daycare center 2 years ago. She takes a salary of 60K. However, in year 2 her S corp profits are about 325K! She is the owner/President/Director and Office manager. She did these same job tasks when she worked at a daycare, prior to buying her own. She made about 50K. Will this flag an IRS audit
This is a great question. It is hard to say what will trigger an IRS audit; no one knows. We know for certain that some situations do, but it is hard to say with the salary audit. We know from reading other court cases that when the IRS reclassifies the distributions to salary, they typically have not exceeded the social security cap, so that is a very safe amount to take as a salary. I would recommend you point the client to the reasonable compensation reports and take it off your plate, it is not your salary to help set, and then you end up involved with determining a salary for them. I hope this helps.
Hi sir I need your help with some questions on career opportunities in the states in the field of accounting for immigrants. Can you please share your e mail id? Btw I watched 2-3 videos of yours. I really like it. 🙏🏻
Thank you for your interest in our content. You can forward your questions to info@taxproff.com, we can see how to best help you with your tax questions.
Thank you very much, I use Canva to design the template, and I have some folks here and there that help with the graphics. Our mission is to educate people and help people with taxation, as it is highly complex. If we are lucky, our videos also look entertaining and pleasant to the eye.
What advice could you make to roll up "organizational costs" to the next year since the date of initiation was october and soonest filling will be low or zero in this example the company start in october
Hello, and sorry for such a late response time, I am not clear on the question, and unfortunately, if we are not engaged formally we are not allowed to render specific tax advice as we may lead you down the wrong path without knowing everything in detail, I may be doing you a disservice and it may cause you tax problems. If you can clarify your question I can see how to help steer you to the right answer unofficially.
what if you worked in New York for 11 months but address in Florida? I filed federal taxes in Florida, but I worked in New York for 11 months, now what? what form do I file for New York State
Hi Alexandra, you pose an excellent question. Unfortunately your question is out of the scope of this informational video. This video was created with the intention of informing the general public on multi-state tax issues and to create an overall awareness of potential tax consequences when “switching” states for tax purposes. If you would need further information on how exactly the law is applied to your specific situation, we strongly suggest that you seek out the help of a qualified tax professional that will help you navigate the complexities and prepare a correct tax filing. Thank you, Freyman CPA
If you are a part-time resident in two states, and your only income is unearned, how do you allocate the amount of unearned income that goes to each state?
DOMICILES are not 'part time' - as the person in the video says, you may only have 1 Domicile, despite residing in, well 50 States as such may be the case with RV'rs. If you establish your FULL Domicile in South Dakota for example, you only need to reside in the State for 24 Hours, however, you have to build that connection to the people, such as joining a Church congregation, establishing a charity foundation, registering vote as a S.D Citizen, let alone joining a Housing Association, and/or placing our main "Bank Account" preferrably a CREDIT UNION chartered only in South Dakota. Now, IF 100% of your "INCOME" passes through South Dakota, it is effectively property of the "State" aka State Identity as a S.D CItizen - you need to also establish your TRUSTS in South Dakota, which many many People do, and by Trusts, I am referring to your Commercial Trust such as D.B.A Name, LLC, etc, your Retirement Trust, Healthcare Trusts, Education Trusts, Land and Real Property Trusts. They are ALL designed to protect your Unearned Income, shielding it from Other States, and this is becoming a huge issue to other States, cause in South Dakota - according to our statutes, and regulations, the State does NOT allow a Foreign State or Territorial Govt (federal government) access to them. South Dakota also does not have an Income Tax, it has a Direct State Sales Tax, which means, YOU as a domiciled S.D Citizen - do not owe sales tax to another State, so if you did pay sales tax in another state, you could end up with a "Tax Credit or Refund" inside S.D. All you statutory forced to pay is a 4.5% Sales Tax plus up to 2.0% Sales Tax in the City you reside within S.D in, so if you travel outside of S.D - you lawfully do NOT owe another States sales tax, you could, if you know how to do so, 'exempt' yourself from another States sales tax at the time of purchase. In South Dakota - the Sales Tax is defined as being DUE at the time you deliver the merchandise to your "Domiciled Residence" - not the store front itself. Although, if you shop and do business inside the State, the Retailers are collecting the tax up front, but in reality, the "Tax' is NOT due until you actually deliver the merchandise to your home. What South Dakota has done, is create RULES, if the Retailer has been contracted by the State, meaning a Sales Tax # - it legally has to collect the tax from you up front, however, IF you are purchasing items remotely, or by traveling to other States, and if the State can prove that those Businesses have generated revenues from you or other fellow Citizens, earning $100,000 a year, then those foreign businesses have to collect the tax from you up front. However, YOU are the one who actually owes S.D Sales Tax as a domiciled resident. Regardless of where you buy food, clothing, merchandise, services, the 'goods and services' are to be presumed, delivered to your "Front Door" or your Domicile Residence. So, it now comes very important, where you 'pass that income" through, if you wish to avoid Sales Tax let alone Income Taxes in other States, so long as South Dakota can show evidence, that your INCOME has been shielded inside South Dakota, by means of Banking, or other forms of TRUSTS, South Dakota will actually go to bat for you, and sue the other State over a Controversy or Dispute between States or Group of States. This is what is the majority of the argument today, over S.D Trusts... Americans are actually domiciling themselves in South Dakota thanks to our Trust Laws. The South Dakota Legislative Research Council has a very interestign research paper it published that you may want to read: mylrc.sdlegislature.gov/api/Documents/Issue%20Memo/207378.pdf South Dakota is fast becoming a huge "Domicile State" for not only RV'rs, but for many wealthy Americans wanting to shield their incomes from foreign states and territories.
1. On Form 7202 next year Line 2 will be 0 or do we leave it at 1,500 to match the capital contributions on the balance sheet. 2. Let's assume in Year 1, Person A is 100% owner with ending basis of $250. If in Year 2 Person A brings a friend to have 50/50 ownership would we decrease Person A's basis on Line 13 by (125) and increase Person B's basis by 125 on Line m?
Thank you for the detailed video...however, as you mentioned some small businesses stock basis' were never established- how do we calculate those basis, say for a company thats been open for a few years now? Or how do we calculate capital contributions? Thank you in advance for your responseq
You are quite welcome. You would need to go back and review the financials or reconstruct it. Capital contributions are funds contributed personally by the owners. Many owners contribute funds into the business and inaccurately call it a loan. A true loan would be treated no different from a bonafide business loan with any other third party lender such as a bank or other financial institution. If there were such instances you can count those contributions as capital contributions too. This is not formal advice and we would need to get into more details to fully assist in the right capacity but that is the idea.
Hi There, Im interested in understanding the radably payment by 12/31/2021. I am an S Corp, my net profit is about 739K. If I have not made estimated taxes, I have not run any payroll but will be paying myself 100,000 through payroll. How do I breakdown the witholdings so it is spread evenly i do not get penalized for not making estimated taxes? 2020 total taxes on my 1040 line 24 $15,308
So sorry we are a small firm with limited capacity for replies to our videos. Unfortunately we are prohibited from rendering advice without being formally engaged as we may be sued for rendering wrong advice without seeing everything. If you are a viewer, you will understand that tax law is highly complex and what may seem to be the right answer for one, may not seem to be the right answer for another. To address your question, ratably means evenly paid over the course of the year. You need to run a payroll for the entire year to avoid exactly your situation from my understanding. When withholding is made via payroll, it is not calculated on the personal return as if it was paid at a specific point of time, it is considered paid evenly over the course of the year, hence, you would avoid penalties by doing so.
Hi There, Im interested in understanding the radably payment by 12/31/2021. I am an S Corp, my net profit is about 739K. If I have not made estimated taxes, I have not run any payroll but will be paying myself 100,000 through payroll. How do I breakdown the witholdings so it is spread evenly i do not get penalized for not making estimated taxes?
In your example of the FSA vs Tax Credit @AGI of $125K, don't you need to factor in the extra taxes paid on the $10500 not contributed to the FSA when going for just the tax credit. So for the Dependent Care Tax Credit only savings, you would gain the tax credit amount ($8000) minus the $2520 paid in taxes on the $10500 you could have contributed to the FSA but did not, so that the net benefit of Dependent Care Credit only is $5,480. Is there something I'm missing here?
Is there any change to the earned income counted for a student spouse? Is it still $250/month (one child) or $500/month (two or more children)? Or has that limit been raised as well?
Excellent question, I do not see a publication 503 for 2021 on the IRS website just yet, I will reach out to our continuing education resource to see if they have an answer for you. www.irs.gov/forms-pubs/about-publication-503
