Archive for June, 2009
How To File Tax For Llc
June 2nd, 2009
Question: Does my Colorado LLC have to file taxes if we did no business or made no money last year?
A group of friends and I established a LLC in Colorado at the end of last year, that we intend to "use" this year. We are getting into the Real Estate investing business and were getting everything set up before we start. My question is simple. Since we didn't do any buying or selling, and as such, didn't make any money as a company, do we have to file taxes on anything?
Answer: A multi-member LLC is treated as a Partnership at the Federal level. You must file a Form 1065 Partnership tax return every year that the partnership is in existence. If you're on a calendar year, that was due on March 15th by the way so you're late. There is an $85 penalty per month per general partner for late filing, so get moving on it to avoid additional penalties!
At the state level, LLCs are usually treated as corporations with all of the corporate filing requirements including tax returns and often other reports as well. Many states also impose minimum franchise fees on corps regardless of profit or loss or even total lack of any business activity.
I'd suggest that you consult with a local expert on small business tax issues, a CPA or EA, not a storefront tax prep mill. You've probably unnecessarily complicated your lives with the LLC but what's done is done now so you have to play by the rules.
From a recession to a measured resurgence, Telluride endures
If we learned anything about ourselves and about Telluride in 2009, it’s that we, and this town, endure. This last year was defined in simple economic terms for us, and we learned a lesson: Even our sno-globe town isn’t invincible. Our region made difficult financial decisions as revenues that once flowed ebbed. We braced against a recession and swallowed the passings of our friends. But for all ...
Business Laws : How to Set Up a Partnership
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Scholarship Taxable Income
June 2nd, 2009
Question: Are government grants (for school) and or scholarships considered taxable income?
Answer: technically grants should b report but people normally don't
Top tax refunds for recent grads
Don't miss out on these tax credits if you have recently graduated.
Tags: How Is Council Tax Determined
June 2nd, 2009
Town Council says yes to Big Box vote
With a unanimous vote on Tuesday night, the Pagosa Springs Town Council passed the first reading of an ordinance that will allow voters in the town to decide how the town will regulate the development of large-scale retailers — so-called Big Box development.
More police - you say
Irs Taxable Tuition Reimbursement
June 1st, 2009
Question: Why am I being taxed on my tuition reimbursement?
In 2007, I participated in the tutition reimbuirsement plan at my job. I recieved 4k in non-taxable tuition reimbusement. Why are they taxing me for this years tuition reimbursement? When I emailed them, they just stated that all courses are beign taxed now regardless of school or level (UG vs Grad).
Whats going on? Is this legal in reference to the IRS? I thought I wasnt to be taxed until I recieved more than $5200.
And how am I going to report this on my taxes? Will I get this money back?
Answer: Your company changed their policy. They used to give you a tax-free education benefit. They now will pay you additional taxable compensation as reimbursement for tuition you paid.
This change is legal as far as the IRS is concerned. There is no requirement that your employer provide you with a tax-free educational benefit.
How to report: On your W-2 for 2008, the reimbursements you receive will be included in Box 1 as taxable compensation. You will then be able to use any available education benefit, such as the Hope Credit, Lifetime Learning Credit, Tuition and Fees Deduction, or Unreimbursed Employee Expenses.
From your description, you already got your money back. The difference is, last year it was tax-free, you did not report it on your tax return, and you took no deduction.
This year, it is taxable compensation subject to income tax and payroll tax. You may be able to take a deduction or get a credit for it.
Former IRS Trainer offers 5 tips small businesses should implement today to save thousands on their 2010 taxes.
Pocketbook Professor, featuring Tax Expert Sandy Botkin, offers business owners tax saving advice and tips that most business owners neglect, and as a result they collectively overpay their taxes by billions of dollars year after year. (PRWeb Jun 22, 2010) Read the full story at http://www.prweb.com/releases/tax-saving-tips/small-business-taxes/prweb4172704.htm