Latest Posts on USTaxAid's Blogs

Are There Nexus Issues for MLMs?

This past Saturday, Megan and I did a webinar “IRS Tax Secrets for Online Businesses.” You can listen to a replay at http://www.OnlineBizTaxSecrets.com if you missed it. We couldn’t get to all of the questions during the webinar, and so, as promised here is one of the questions and the response. Q: On "nexus" what if you are working with and MLM, who is responsible for the tax? me, as an independent distributor or the MLM... Read More »

How Fast Can You Act?

Richard and I moved to Baja California full time in 2009. We’d taken a major economic hit in 2008 and thought it was time to just semi-retire at the beach.  We spent a lot of time traveling, gardening, hanging out at the beach and a little bit of time working.  Then things changed, this time for the better, at least economically.

In 2008/2009, things changed and we reacted.... Read More »

Which Company Do You Want?

Would you rather have a half million dollar company or a million dollar company? If you answered, “It depends”, then you get to go to the front of the class. Usually when you hear the term “million dollar company”, “multi-million dollar company” or the like, it refers to the gross sales of the company. So a half million dollar company gets $500,000 in gross sales per year. A million dollar company gets $1,000,000 in... Read More »

How Much Interest Do You Need to Give to a Partner?

Got a question? Here’s how you can get your questions answered: http://www.ustaxaid.com/got-a-tax-question/ We recently received a question about bringing a partner into an LLC. My partner, Megan Hughes, answered the question about how much or little you can give to an LLC and still have a legitimate multi-owner LLC. You can go here to http://www.smartbusinessincorporation.com/blog/how-much-or-little-can-an-llc-member-own/... Read More »

Maybe You Can Make a Late S –Corporation Election, But HURRY!

It never fails that I get a new tax client in late fall who hasn’t been paying attention to his business. Or rather, he’s been so busy with his business that he didn’t pat attention to his growing tax issues. If you have a business that is taxed as a Sole Proprietorship either because you don’t have a business structure or because you are a single member LLC and didn’t properly elect a structure, you’re going... Read More »

Qualifying for Real Estate Professional Status

We continue to get a lot of questions about real estate professional status. If you have a question, please go to http://www.ustaxaid.com/got-a-tax-question/ to find out how you can get an answer. Here is a question we recently received: “My questions: 1. - For tax purpose, if we file the LLC as a business, not a single member entity, in order to be considered RE professional, do each of us need to get the professional status with 750... Read More »

The Story of the Real Estate Agent and the Series LLC

We had a lively discussion on business structures on this past Saturday’s webinar. If you missed it, you can catch up on this and other archived webinars at: http://www.USTaxAid.com/insiders-club/ Here’s one of the questions we weren’t able to get to in the allotted time. “I am a realtor, I have my rental properties set up as series LLC. I would like to begin flipping properties. Can I consider the flipping as a "hobby" instead of... Read More »

Taxpayer Asks “Can IRS Auditor Really Call My Business Passive?”

We recently received this question regarding Real Estate Professional status for an ongoing business. “I formed an LLC with a partner in 2002. The business is involved with real estate (acquire land and develop, acquire existing building fixed up for sale or rent). However, the other partner opted out in 2004 and the business became a "Single member, LLC" with a Single asset on a large acre land. I am in the process... Read More »

Law Changes for 2013 in Health Plan Deductions

Megan and I did a webinar this past Saturday on “How IRS-Risky Is Your First Business?” If you missed it, you can still catch it at http://www.USTaxAid.com/Insiders-Only One of the questions we received at the end had to do with MERP and HSA plans. There have been changes this year and because there is so much misunderstanding, I think this is an important subject to cover in a special article. Let’s start with medical insurance... Read More »

What NOT to Do If You Get an IRS Audit Notice

How Should You Buy a Car?

Minimize the value.  If you’re looking a big ticket vehicle purchase and it won’t qualify for a Section 179 exclusion, then you may want to consider leasing Probably the second biggest purchase (next to your home) that you can make will be your car. While you’re sorting through all the details (type, new or used, color, etc), take a minute and think about how you’re going to pay for it. What if... Read More »

What Do Small Business Owners Think About the US Tax System?

The National Small Business Association recently released the results of their small business owner survey about taxes. Can you guess what the #1 tax concern was for small business owners? And, no, it’s not the amount of taxes. Let me tell you a few more results from the survey and then I’ll give you the answer. Of the people in the organization, most employed 1 – 5 people and operated in S Corporations. The vast majority spend between... Read More »