Do I have to pay tax on the money I take out of my S-Corporation?
Can I invest my IRA funds in real estate?
I have a new employee where can I get the necessary form for payroll information?
Can an individual receive distributions from a traditional individual retirement account (IRA) prior to age 59 1/2 and not be subject to the premature distribution penalty of 10%?
Are the proceeds received by a student from a scholarship or fellowship grant considered to be gross income for individual income tax purposes?
What address do I mail my estimated tax payments to?
At what point do I need to be concerned about estate taxes?
How much can I gift someone without having to report it to the IRS?
How long should it take to receive my refund from the IRS?
Am I required to report wages and pay taxes to the Unemployment Tax program?
Is there a difference between a corporate name and a fictitious name?
What can I throw away, and when?
What are the Corporate & LLC Annual Uniform Business Report requirements?
Do I have to pay tax on the money I take out of my S-Corporation?
Typically, a business' ability to pay a distribution to its shareholders is indicative that the business is making profit, however, the shareholders of an S-Corporation are not taxed specifically on the distributions taken out of the business. Instead, the shareholders are taxed on their proportionate share of the S-Corporation's taxable income, whether or not they distribute the income to the shareholders.
Can I invest my IRA funds in real estate?
Yes - Although most investment institutions do not offer real estate as part of their portfolio of investment products, there are companies that specialize in investing IRA funds in real estate, as well as many other types of investments. These are usually handled in what is known as a Self-Directed IRA and it allows the owner of the IRA to instruct a trustee as to the investments to be purchased in the IRA. Take a look at www.entrustfl.com for more information on Self-Directed IRAs.
I have a new employee where can I get the necessary form for payroll information?
When a new employee is hired there are three forms that must be filed. First a W-4 form must be completed in order to determine the correct amount of taxes to withhold from the employee's paycheck. This form can be obtained here. Second, all employers are responsible for completion and retention of form I-9 for each individual they hire for employment in the United States. On the form, the employer must verify the employment eligbility and identity documents presented by the employee and record the document information on the form I-9. This form can be obtained here. Lastly, all new employees in the state of Florida are required to fill out a Florida New Hiring Reporting Form. This form can be obtained here.
Can an individual receive distributions from a traditional individual retirement account (IRA) prior to age 59 1/2 and not be subject to the premature distribution penalty of 10%?
Distributions will be penalty free if timely and properly rolled over into another IRA within60 days, upon death or disability of the participant, after separation from service that are part of a series of substantially equal payments, for first time home buyers (limited to $10,000 during lifetime), for qualified higher education expenses, and for the purchase of medical insurance premiums by certain unemployed individuals.
Are the proceeds received by a student from a scholarship or fellowship grant considered to be gross income for individual income tax purposes?
Amounts received as a scholarship and or fellowship by an individual who is a candidate for a degree at a qualified educational organization is not included in gross income so long as the proceeds are used for tuition, books and other course required expenses.
What address do I mail my estimated tax payments to?
http://www.irs.gov/file/content/0,,id=105083,00.html This web address provides not only the address for estimated tax payments, but also provides other addresses that may be important for individuals.
At what point do I need to be concerned about estate taxes?
An individual that has assets that exceed $1 million should consult either a lawyer or an accountant well before passing away to determine if any estate tax planning is necessary. There has been a considerable amount of change in recent years concerning estate taxes and the excludable amount (unified credit) of assets from the decedent's estate. Here are the following exclusions as well as the corresponding years.
- Years 2002 - 2003 - $1 million exclusion
- Years 2004 - 2005 - $1.5 million exclusion
- Years 2006 - 2008 - $2 million exclusion
- Year 2009 - $3 million exclusion
- Year 2010 - No Estate Tax
- Year 2011 - Reverts to the $1 million exclusion
How much can I gift someone without having to report it to the IRS?
The amount
of money one can gift away without having to report to the IRS is referred to as the annual gift exclusion. Currently, the annual gift exclusion is $11,000. If you are married, both you and your spouse can gift away $22,000 to an individual without having to report anything to the IRS.
How long should it take to receive my refund from the IRS?
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you file a paper return — even faster when you choose direct deposit.
- To check the status of a refund you are expecting, use Where’s My Refund, available at IRS.gov web site.
- IRS Refund Hotline. This service is available to Form 1040-type individual and joint filers who need to check the status of their current year refund. It offers Automated Refund Self-Service Interactive Applications. The toll-free hotline number is 1-800-829-1954.
- If it has been at least four weeks since you filed your return, you can check on the status of your refund by calling the toll-free IRS TeleTax System at 1-800-829-4477. When you call, you will need to provide your Social Security number, your filing status and the amount of the refund.
Am I required to report wages and pay taxes to the Unemployment Tax program?
Yes, if you:
- paid $1,500 in wages within a calendar quarter,
- have employed one person for any portion of a day in 20 different weeks during the calendar year, or
- are liable for federal unemployment tax (FUTA) because of employment in another state.
Is there a difference between a corporate name and a fictitious name?
A corporate name is the name of a filed business entity. The name is checked prior to use for distinguishablity on the records of the Department of State. The exact name will not be granted to another business entity. A fictitious name is a registration only and is for "notice" purposes to the public. There are no ownership rights in a fictitious name and the name is not protected against use by anyone else. The same fictitious name can be used repetitively
What can I throw away, and when?
There are many requirements to save documents (depending upon the type of document) and differing retention periods, referred to as the Statutes of Limitation (SoL). Generally, federal (e.g., IRS) law imposes a three (3) year limitation from the later of the due date of the return, or the date the return was actually received by the IRS. This may be exteneded to six (6) years if the IRS can prove fraud (e.g., that income was underreported by 25% or more). Failure to file a return delays the start of the SoL until the return has been received by the IRS.
Florida generally imposes a five (5) year SoL for contacts and other written instruments, and for mortgage foreclosures; two (2) years for libel, slander and unpaid wages, ten (10) years for judgments (which may be renewed one time for a total of twenty (20) years). Almost all others fall under the four (4) year SoL catch-all limitations. Other states may have different statutes of limitations. Check with a lawyer familiar with the states in which specific documentation or operations exist, for state and local statutory requirements.
What are the Corporate & LLC Annual Uniform Business Report requirements?
Your Corporation (or LLC) is required to file a uniformed business report (UBR) annually with the state of Florida to maintain its active status. You can go to www.sunbiz.org any time between January 1st and May 1st to file your annual report and remit payment of $150 for your corporatio ($50 for your LLC). After May 1st, the fee increases to $550 for corporations. Please note that by not filing this report & fee your corporation (or LLC) wil be administratively dissolved by Florida, which reguires an additional fee to reinstate. |
