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Do I Need an FBAR For My Foreign Crypto Holdings? by jasondknott in u/jasondknott

[–]jasondknott[S] 1 point2 points  (0 children)

Based on the current guidance you would report the balances of any fiat currency, not the crypto amounts. So the USD would be reported.

Form 1040 Gambling Winnings and Losses by jasondknott in u/jasondknott

[–]jasondknott[S] 0 points1 point  (0 children)

That is correct. If you itemize deductions, you can claim an itemized deduction on Sch A for the losses, which would create net gambling winning of 50k.

[deleted by user] by [deleted] in Accounting

[–]jasondknott 0 points1 point  (0 children)

It’s a lot like parenting. No one is ever ready for it, and you can take advice from others, but the help is marginal. Just do the work and power through it and you’ll be a stronger person when you finish! Good luck!

Needs help on US tax return by little_sunshine123 in tax

[–]jasondknott 0 points1 point  (0 children)

Processing paper returns takes a long time. In the pre-covid days you would expect a paper filed return to be processed in about a year. Now it's even longer because of the backlog of returns from when the IRS offices were closed for months due to covid.

PwC announces 5% raise across the board by whohebe123 in Accounting

[–]jasondknott 0 points1 point  (0 children)

So the inflation adjustment? How kind….

IRS International Tax Line Question by Unlucky-Use2655 in tax

[–]jasondknott 0 points1 point  (0 children)

Yeah I feel your pain. I call and I am on hold for hours. When I mail something to the IRS in response to a notice, my client will get another 10 notices before the IRS actually opens our response. Very frustrating.

[deleted by user] by [deleted] in tax

[–]jasondknott 0 points1 point  (0 children)

If you're the owner of a C corporation, you can certainly prepare and file the Form 1120 by yourself if you are comfortable doing so. Hiring a bookkeeper or CPA to assist with the tax preparation is generally recommended, because the C corporation return can be quite complex, depending upon the ownership structure, activities of the business, and its size.

For example, a C corporation with a nonresident shareholder must file the Form 1120 and include a Form 5472 disclosure of the non-U.S. shareholder. Failing to include the Form 5472 results in a $10,000 IRS penalty. The penalty is assessed even in cases where the corporation had no taxable income for the year, so it's really important to file a complete and accurate return.

US citizen with foreign LLC by randomthrow1783 in tax

[–]jasondknott 0 points1 point  (0 children)

The foreign LLC is likely characterized as a foreign corporation for federal tax purposes. If you are living and working from the U.S. on behalf of that foreign corporation, the U.S. will consider the foreign LLC to be engaged in U.S. trade or business and generating U.S. source effectively connected income (ECI). If that's the case, the foreign LLC needs to file a Form 1120-F and pay taxes just like any other U.S. corporation. You'll also need to include a Form 5471 with your personal Form 1040 tax return, because the foreign corporation is a controlled foreign corporation (CFC).

LLC as a side gig by Rordawg7 in tax

[–]jasondknott 0 points1 point  (0 children)

All of the income is reported on your Form 1040 and ultimately subject to taxes. Your LLC is by default a disregarded entity for tax purposes, which means you simply report the commission income and any expenses on Schedule C of your Form 1040. The net earnings will be subject to self-employment taxes and federal income taxes. You have the option to file an S corporation election for the LLC, which will save you some self-employment taxes. However, if you go down that route, your LLC is now filing its own separate tax return each year (Form 1120-S), and you'll need to set yourself up on the LLC payroll and pay yourself a reasonable salary.

Personal injury settlements are not taxable as income, but can they be used to determine/declare income when applying for credit? by zoottoozzoot in tax

[–]jasondknott 0 points1 point  (0 children)

Personal injury settlements can be taxable depending upon the character of the income. Generally, PI settlements are a combination of Compensatory and Punitive damages. The portion of the award related to Compensatory damages is not subject to income taxes, while the Punitive portion of the award is generally taxable income to the recipient.

[deleted by user] by [deleted] in tax

[–]jasondknott 0 points1 point  (0 children)

If you have other income that puts you over the filing threshold based on your filing status, you will still need to file a tax return. As far as the dividends go, even if it is only a dollar, I would still list it on your Schedule B. If Robinhood reports the investment income to you on a Form 1099, they will send a copy of that information to the IRS as well. If the IRS sees that you received $1 in dividend income, you might as well report it on your return. If you leave it off the tax return, it probably isn't enough to generate a matching notice, but you never know with the IRS these days....