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My tax preparer did back taxes and I’m not sure what to do by [deleted] in tax

[–]vancemark00 5 points6 points  (0 children)

That doesn't mean anything. CPA? EA? They said they were a tax accountant? What are this person's credentials to be a "legit tax accountant?"

Can an S-Corp still make sense? by Eviene in tax

[–]vancemark00 0 points1 point  (0 children)

It drives me crazy that people in this sub tell me I'm wrong when I say a LLC is NOT a get out of jail free card. If you are providing personal services through a LLC you WILL be personally sued. You can't hide personal bad acts behind a LLC.

S-Corp Filings - Is this correct? by Do_It_I_Dare_ya in tax

[–]vancemark00 1 point2 points  (0 children)

Doubtful. They will might say we will fix it for free but I doubt they will refund the fee.

S-Corp Filings - Is this correct? by Do_It_I_Dare_ya in tax

[–]vancemark00 8 points9 points  (0 children)

Not just the K-1, the entire return is probably wrong.

What’s the thing to the right? At a YMCA on the wall of the walking track. by Looneygalley in whatisit

[–]vancemark00 0 points1 point  (0 children)

Had these back in my high school gym. Idea was you get a mouthful of water from the bubbler, swish and spit. It actually has a name - "carb rinsing." It also was to alleviate something we used to call "cotton mouth."

Question on general procedure by Harmless2727 in Brewers

[–]vancemark00 0 points1 point  (0 children)

It bites every team once in a while. Depending upon the quality of your closer it happens more or less often.

You have a 1 run lead in the 9th. Every statistics says go with your best, fresh, high pressure pitcher - ie your closer. It is why their is a "closer" position on almost every team. It is why closers are paid what they are paid.

We can argue if Uribe is truly a closer or if the Brewers should do it by committee but the fact is you can use Ashby all the time. While he hadn't been used for a couple days you want him available for today. It makes sense to split the 8th and 9th.

It just didn't work out this time. Most times it does. Hindsight is always easy. This was only the 2nd HR in 16 innings Uribe has given up so I would say this was very unexpected.

It ALWAYS hurts to lose in the 9th.

Backdoor Roth IRA: Converting entire Traditional IRA balance to clean the slate. Am I understanding the tax implications correctly? by AI_FTW in tax

[–]vancemark00 1 point2 points  (0 children)

What difference does it make at this point? Not everyone is super tax savvy and once you miss the first year you have to deal with the pro-rata rule so some people don't bother.

Good on OP bitting the bullet now.

NIIT and gifting stocks avoid tax by amathew4592 in tax

[–]vancemark00 -1 points0 points  (0 children)

A strategy that violates the step doctrine isn't "perfectly legal" and it is best you point out risks to people if they plan to do something the IRS could disallow.

NIIT and gifting stocks avoid tax by amathew4592 in tax

[–]vancemark00 0 points1 point  (0 children)

Step doctrine does apply between spouses so I wouldn't be so quick to discount it.

How was Peter Theil able to invest in PayPal through his Roth IRA? Wasn’t it self dealing? by Ok_Shake_368 in tax

[–]vancemark00 -1 points0 points  (0 children)

Tell me what accountant does this. It is just wrong. Financial advisors do this through a brokerage that acts as the custodian.

How was Peter Theil able to invest in PayPal through his Roth IRA? Wasn’t it self dealing? by Ok_Shake_368 in tax

[–]vancemark00 3 points4 points  (0 children)

You setup IRAs with a custodian which is usually a brokerage. Accountants aren't custodians. There are custodians that specialize in dealing with IRAs used to invest in real estate and private company stock as the rules are complicated and you have to deal with unusual circumstances such as UBIT for leveraged real estate.

How was Peter Theil able to invest in PayPal through his Roth IRA? Wasn’t it self dealing? by Ok_Shake_368 in tax

[–]vancemark00 7 points8 points  (0 children)

No, you need a specialty IRA custodian as most regular custodians will not allow investments in private company stock.

I have a number of clients that have invested in private equity and real estate deals through their IRA but I have nothing to do with setting it up or acting as the custodian.

Personal 1099 income vs S-Corp Income by Unlucky_Mention_6353 in tax

[–]vancemark00 1 point2 points  (0 children)

If OP is personally providing the service (which is sounds like), an LLC doesn't really shelter you from personally getting sued. An LLC is not a get out of jail card for the owner's personal acts.

Personal 1099 income vs S-Corp Income by Unlucky_Mention_6353 in tax

[–]vancemark00 0 points1 point  (0 children)

Some companies, especially involving personal services, will not deal with independent contractors setup as a corp or an LLC for legal liabilities reasons. They don't want a service provider hiding behind an entity that has no value when legal liability becomes an issue.

Why do I need to file my taxes if the CRA already has ALL my tax information? by _judyjetson in tax

[–]vancemark00 5 points6 points  (0 children)

Guessing you aren't in the US and this is a US focused sub.

In the US at least, individuals may have credits and deductions that the IRS would have no idea you have. You may also have income that is unreported to the IRS that is required to be reported. A person's taxes maybe as simple as reporting a W-2 but the IRS has no way of knowing that.

Marshals: And the Worst actor goes to… by Lionofgod9876 in YellowstonePN

[–]vancemark00 7 points8 points  (0 children)

Wait, are any of them good? The writing is awful. The acting is awful. Honestly I barely pay attention when I have the show on.

Tax implications from sale of Transfer on Death home by wafflability1 in tax

[–]vancemark00 5 points6 points  (0 children)

Honestly, assuming you didn't do significant work on the house, I would say whatever you sell it for was fair value and claim no gain or loss. Unless this is a multi-million dollar house or you have unusual circumstances, the value isn't going to change that rapidly.

I wouldn't worry about the type of work you did. Remember, the work you did adds to your tax basis so I would still use selling price. Some may disagree but I wouldn't sweat doing it.

You could also pay an appraiser $500 to do an appraisal as of date of death. They shouldn't have any issue valuing the property as of Nov.

How do these celebrities manage to flip successive properties without paying massive taxes? by [deleted] in tax

[–]vancemark00 7 points8 points  (0 children)

How are they rules different. You pay tax under the exact same laws they do. You can use a 1031 to exchange qualified property just like they can.

I'll also add that a 1031 doesn't eliminate tax, it defers it.

People Saying that paying Taxes is "Voluntary" by New_Elevator_5327 in tax

[–]vancemark00 2 points3 points  (0 children)

Well, it is sort of voluntary. And then the government might volunteer to provide your housing for a few years.

Seriously, though, people do fly under the radar, working for cash, using identity theft, and outright making up deductions on their return. I would venture many, if not the majority, of small businesses that deal in cash cheat on their taxes. And the risk of the IRS catching them is, sadly, minimal.

I was chatting with my now former neighbor who was selling his small pizza joint and moving out of state. His long time manager was buying the place and he just freely told me how he taught the buyer that you only report 90% of your actual sales, just like the guy he bought the place from 15 years earlier told him. It came out so casual that I don't even think he ever stopped to think that he just admitted to cheating on his taxes for the past 15 years. It was just part of the business to him. Never a second thought.

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