All LLC members are considered self-employed and are responsible for paying self-employment taxes, which cover Social Security and Medicare. This tax is similar to the payroll taxes that employees have withheld from their paychecks, but LLC members must pay both the employee and employer portions. Self-employment taxes are calculated based on the net income of … Read more
Property tax reassessments typically occur for several reasons: * **Change in market value:** The most common trigger is a significant change in the estimated value of your property, usually due to factors like market trends, comparisons with recent sales of similar properties, and physical changes to your home or land. * **New construction or improvements:** … Read more
Filing joint taxes with an unmarried partner, such as a girlfriend, is typically not possible. Joint tax filing is generally reserved for married couples. However, there are exceptions, such as when you have a common-law marriage or meet certain legal requirements. To determine your eligibility, it’s best to consult with a tax professional or review … Read more
When it comes to inheritance tax, understanding how joint assets are treated is crucial. Joint assets, such as jointly owned property or bank accounts, can have implications for inheritance tax purposes. Generally, joint assets are not subject to inheritance tax if they are owned jointly by spouses or civil partners. This is because the assets … Read more
Whether an inherited Roth IRA is taxable to the beneficiary depends on the beneficiary’s relationship to the original account holder and the distribution rules. If the beneficiary is a spouse, they can generally roll over the account into their own Roth IRA without paying taxes. However, if the beneficiary is a non-spouse, they will have … Read more
Canadians can earn a certain amount of dividend income tax-free. This is known as the dividend tax credit. The dividend tax credit varies depending on the province or territory of residence, but generally allows for a portion of dividend income to be excluded from taxable income. The purpose of this credit is to reduce the … Read more
Tax treaties are agreements between two or more countries that seek to prevent double taxation of income and capital gains. Double taxation occurs when the same income is taxed in both countries. Tax treaties provide clarity and certainty to taxpayers, reduce compliance costs, and promote cross-border trade and investment. They also enhance cooperation between tax … Read more
Churches in the United States are generally exempt from paying income tax on their revenue. This exemption is granted by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code, which applies to religious organizations and other nonprofit groups. The exemption is intended to support the charitable and religious activities of these … Read more
Understanding the impact of a 1099-G form on your taxes is important. This document reports unemployment compensation benefits received from the government. These benefits are generally taxable as income. When completing your tax return, include the 1099-G in your taxable income, which may also affect your eligibility for tax credits or deductions. It’s crucial to … Read more
Scrip dividends are payments made by corporations to their shareholders in the form of additional shares of stock instead of cash. In the US, scrip dividends are taxable. The shareholder’s cost basis in the newly received shares is the same as the fair market value of the shares on the date they were received. The … Read more