Author Topic: any accountants out there that i can ask a question?  (Read 490634 times)

Offline Mordyk

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Re: any accountants out there that i can ask a question?
« Reply #440 on: May 14, 2015, 11:02:11 AM »
To get you started, I googled 'c corp vs llc', and this looked good.
http://www.obliviousinvestor.com/llc-vs-s-corp-vs-c-corp/
I know that.  sometimes people with experience can give you a 2 sentence answer, which would make my life simpler
#TYH

Offline Blazer

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Re: any accountants out there that i can ask a question?
« Reply #441 on: May 14, 2015, 11:04:25 AM »
i understand the corp can pay taxes. does that mean that i am?  maybe im confused about what the pros of a corp.
I'm not sure exactly what you mean, but I assume you want to know which income will actually show up on your 1040. If that is your question the LLC will flow to your 1040 and show up there as your income, the Corp is a "Blocker" the income stops at the Corp, and the Corp pays the taxes, it doesn't show up on your 1040.

Offline Mordyk

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Re: any accountants out there that i can ask a question?
« Reply #442 on: May 14, 2015, 11:09:03 AM »
I'm not sure exactly what you mean, but I assume you want to know which income will actually show up on your 1040. If that is your question the LLC will flow to your 1040 and show up there as your income, the Corp is a "Blocker" the income stops at the Corp, and the Corp pays the taxes, it doesn't show up on your 1040.
thank you.
#TYH

Offline MarkS

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Re: any accountants out there that i can ask a question?
« Reply #443 on: May 14, 2015, 11:12:01 AM »
thank you.
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.

Offline Mordyk

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Re: any accountants out there that i can ask a question?
« Reply #444 on: May 14, 2015, 11:14:22 AM »
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.
with this part im familiar. i gotta make sure to get some "expenses" along the way...
#TYH

Offline Blazer

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Re: any accountants out there that i can ask a question?
« Reply #445 on: May 14, 2015, 11:16:43 AM »
Buuuut, when you one day decide that you want to take money out of the company (as a distribution or as a generous salary payout) you'll need to pay taxes again on the already taxed money.
Mark you are correct, but
1) The reason he probably wants to do this is for programs, which is a lot more probably than what he will be paying in taxes.
2) If he pays himself a salary he won’t be double taxed since he will get that as a deduction for the Corp. ( assuming a lot of things, but simply put that is the case)

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #446 on: May 14, 2015, 11:47:00 AM »
Mark you are correct, but
1) The reason he probably wants to do this is for programs, which is a lot more probably than what he will be paying in taxes.
2) If he pays himself a salary he won’t be double taxed since he will get that as a deduction for the Corp. ( assuming a lot of things, but simply put that is the case)

If he pays himself a salary how does that help with programs?

Offline Blazer

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Re: any accountants out there that i can ask a question?
« Reply #447 on: May 14, 2015, 11:57:12 AM »
If he pays himself a salary how does that help with programs?
He can pay it in another year that wont affect his programs

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #448 on: May 14, 2015, 12:00:58 PM »
He can pay it in another year that wont affect his programs

If he pays in another year the corp won't have zero income this year.

Unless the fiscal year or accounting method is different.

But it will be a personal holding company.

Offline PTU

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Re: any accountants out there that i can ask a question?
« Reply #449 on: May 14, 2015, 01:00:02 PM »
with this part im familiar. i gotta make sure to get some "expenses" along the way...
If you have expense that reduce the income why bother with a corp?

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #450 on: May 14, 2015, 01:31:21 PM »
If you have expense that reduce the income why bother with a corp?
is this a legal business, or is it like gun running or something like that.

Because you can't deduct expenses of a certain illlegal businesses.

Offline PTU

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Re: any accountants out there that i can ask a question?
« Reply #451 on: May 14, 2015, 01:35:00 PM »
is this a legal business, or is it like gun running or something like that.

Because you can't deduct expenses of a certain illlegal businesses.
Cogs are always deducted.

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #452 on: May 14, 2015, 01:44:33 PM »
Cogs are always deducted.

Yes. But I was thinking COGS are probably expenses rather than "expenses".

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #453 on: May 14, 2015, 02:39:26 PM »


Because you can't deduct expenses of a certain illlegal businesses.

Which ones can you?

Offline henche

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Offline PTU

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Re: any accountants out there that i can ask a question?
« Reply #455 on: May 14, 2015, 03:04:34 PM »
Yes. But I was thinking COGS are probably expenses rather than "expenses".
But spoilage of inventory can be considered cogs. - Say you sell weed and there is a fire and some of you inventory goes up in smoke, I would argue to deduct this.

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #456 on: May 14, 2015, 03:24:58 PM »
But spoilage of inventory can be considered cogs. - Say you sell weed and there is a fire and some of you inventory goes up in smoke, I would argue to deduct this.

Or what if by some bizzare act it is simply--vaporized?

Offline Menachem613

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Re: any accountants out there that i can ask a question?
« Reply #457 on: May 14, 2015, 08:27:18 PM »

Offline henche

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Re: any accountants out there that i can ask a question?
« Reply #458 on: May 14, 2015, 09:47:57 PM »
I read that to say you cannot deduct the expenses.

Right. You asked which you are allowed to deduct. So I linked the code section.  It seems you can deduct nondrug expenses. are there ohter sections dealing with other illegal activities?

Offline Deal Guy

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Re: any accountants out there that i can ask a question?
« Reply #459 on: June 02, 2015, 03:51:20 PM »
I have 2 questions for any experts here:

1- American Opportunity Credit- is it based on you being an undergraduate student, or do you qualify during the first 4 years in college, even if a graduate student. The question arises for those who complete a Ba online or wherever in 2 years, and then begin a Masters Program. Can they still take the American Opportunity Credit during the first 2 years of their Masters program?

2- If a married couple filing jointly wants to get Earned Income Credit for their American kids, both parents need to have a social, not a Itin. Question is if only one parent has a social, is it ok to wait a few months or a year for the other parent to get full citizenship and a social and then be able to file for the EIC even for the prior year, even though in 2014 that parent did not have a social?