Death and... Taxes.
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Punko
Macho Ma'am
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I can't imagine any tax form being more complicated then the Belgian ones.
In 2018 we collectively cheered, because the amount of input fields dropped to 849. In 2019 it even dropped as low as 819 fields.
I don't know how many variables rocket science involves, but 819 seems decent.
In 2018 we collectively cheered, because the amount of input fields dropped to 849. In 2019 it even dropped as low as 819 fields.
I don't know how many variables rocket science involves, but 819 seems decent.
TJT
Mr. Poopybutthole
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TJT
Mr. Poopybutthole
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AladainAF
a c i d.f l y
It's that time of year again. I know you use groups to protest the appraisal increase of your house for tax purposes. Is it better to just use the various groups that charge a few hundred or is it worthwhile to fill out the appraisal protest form and mail it in?
Frenzied Wombat
Potato del Grande
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It's that time of year again. I know you use groups to protest the appraisal increase of your house for tax purposes. Is it better to just use the various groups that charge a few hundred or is it worthwhile to fill out the appraisal protest form and mail it in?
Just sign up for one of the numerous services that will auto protest your taxes for you each and every year and only charge you if they get a reduction, which is a % of the amount saved.
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TheBeagle
JunkiesNetwork Donor
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My Dad passed away last week. Meeting my brother and sister today to go over the estate. There's a 401k and a life insurance policy. I don't know amounts yet but it sounds like he was very lax on naming beneficiaries. I think he named my sister on the life ins and no one on the Merrill Lynch 401k. Hopefully there's some hard documents I can dig up. If the life insurance distribution goes to my sister and she splits it up to my brother and I, are we then responsible for taxes on that? Should we arrange for the distribution to be split up first so there is no tax burden?
Frenzied Wombat
Potato del Grande
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Did he have a will?
Unless it’s some form of weird annuity, life insurance payouts aren’t considered taxable income— all that money is yours tax free.
I had a similar situation described above, except mine was foreign originated, which isn’t taxable either, but has a reporting requirement when over 100k. Of course looking into that revealed that the tax preparer I’ve used for the last five years has been fucking with my taxes, but that’s another nightmare story for another day.
TheBeagle
JunkiesNetwork Donor
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Lifelong smoker, in and out of the hospital the last ten years...no will. Thankfully divorced so no step mom problems and my siblings aren't assholes. They have more kids than I do so I'm going to take a little less than 1/3 so they get a little more.
I guess a tax attorney is who you hire to make sure everything is done correctly? If $50k hits my bank account from a wire transfer from my sister after the life ins payout I don't want to get a bill for $20k from the IRS in 3 years.
TJT
Mr. Poopybutthole
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Sorry for your loss man. I hope that you and your siblings don't end up fighting over all this shit. That suuuuuucks. Just went through that with. my Grandma and our extended family a year or so ago.
TheBeagle
JunkiesNetwork Donor
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TJT
Mr. Poopybutthole
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Be real glad your siblings are reasonable. People go completely batshit when any amount money is involved. It's insane to me.
Frenzied Wombat
Potato del Grande
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Like I said, there will be no tax bill on life insurance payouts, though there probably will be on his 401k. I'm not that familiar with Texas laws, but in most places you'd need some form of probate attorney since he did not have a will. My father up in Canada died without a will and his bank immediately froze his bank account and other investment assets-- took us almost a year to get access.
TheBeagle
JunkiesNetwork Donor
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Doing it in Oklahoma which makes it a pain since I'm in Texas, bro is in Louisiana, and sis is in OK. Bank didn't freeze anything, have been able to use his checking account to pay for funeral expenses. But look for a probate attorney...thx.
Borzak
Bronze Baron of the Realm
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It's amazing how stuff turns family against family in some cases. My sister and I are not what you would call close. She's 8 years older than I am so growing up she was out of the house and off to college and never moved back in when I was 9. Don't remember a lot. We will talk and have conversations when she visits mom and dad. Holidays we'll spend a day together that's about it. Same for her kids and now grandkids.
My grandmother is in get rid of stuff before she dies at 99. The property and house was in her will to be given to dad, her son. She changed it to me so I would have a house to live in since things aren't going that great. I'm guessing the house and property is valued at $60-$70k. Very rural and 60 year old house, in good shape though. Sister is ticked, I think she's been there 3 or 4 times in my life. I will likely live there.
Taxes will be next to nothing I'm guessing. Property tax is next to nothing and 1/2 the county is national forest and I think the entire county is 5k pop.
My grandmother is in get rid of stuff before she dies at 99. The property and house was in her will to be given to dad, her son. She changed it to me so I would have a house to live in since things aren't going that great. I'm guessing the house and property is valued at $60-$70k. Very rural and 60 year old house, in good shape though. Sister is ticked, I think she's been there 3 or 4 times in my life. I will likely live there.
Taxes will be next to nothing I'm guessing. Property tax is next to nothing and 1/2 the county is national forest and I think the entire county is 5k pop.
Yeah stuff has a funny way of fucking with people. My sister loses her mind if she misses out on a dollar, yet I've given her kids Xbox's and shit.... total insanity. Thankfully some business ventures have worked out for me, so am no longer concerned about whatever measly inheritance my mom will leave behind.
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Hey fellows!
I'm trying to learn about LLC vs S-corp for a potential business. I know I need an accountant, but I truly want to understand.
So, my question... Lets say I'm 90% owner of a business, and I have a 10% owner too. We have a business checking account for the business where all the profits get put in. Lets say after 1 year, we made $200,000, had $100,000 in expenses, and now have $100,000 in the checking account. What happens from here? That $100,000 has not been taxed in anyway. Are we required to distribute all of it to me and my partner so that we pay fed/state income taxes on it? Or can we leave it in the business so that we can grow the business?
I'm trying to learn about LLC vs S-corp for a potential business. I know I need an accountant, but I truly want to understand.
So, my question... Lets say I'm 90% owner of a business, and I have a 10% owner too. We have a business checking account for the business where all the profits get put in. Lets say after 1 year, we made $200,000, had $100,000 in expenses, and now have $100,000 in the checking account. What happens from here? That $100,000 has not been taxed in anyway. Are we required to distribute all of it to me and my partner so that we pay fed/state income taxes on it? Or can we leave it in the business so that we can grow the business?
An S-Corp is a pass-through entity and can't hold net income (in a way that alters taxes). Profit/loss flows though to the shareholders according to their ownership, reported on Schedule K-1 every year.
As a general rule, if you think you've found a way for income to remain totally untaxed you've probably done it wrong.
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Ahh. So, how do you keep money in the business? Or like have money in the business banking account to pay bills, etc?
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I went through all that in 2019. The only taxable piece of life insurance is the interest it earns from time of death to pay out. It should be minor. As for the 401k, it's taxable and whoever it pays out to will be on the hook for the tax bill. It's also possible to transfer that to an inheritrd IRA to keep for your own retirement or to cash it out another year to prevent too much income in one year.
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The S-corp can retain earnings instead of making the full shareholder distribution, but the shareholders are still on the hook for taxes even if they didn't actually receive the income. Generally, you want to run things so that paying the shareholder distributions doesn't create cash flow problems.
How to Distribute Net Profits Before Year's End for an S Corp
"The Problem With Retained Earnings
As previously discussed, an S corp. is a pass-through business, in which the firm pays no taxes. Instead, the firm's owners, or shareholders, pay all taxes as well as penalties.
"Keep in mind that the previous year’s closing balance in the retained earnings account is used as the opening balance the following year," says Upcounsel. Holding retained earnings past the year's end and into the next year can generate such problems as:
- Shareholders are taxed on a percentage of the profits, whether or not they end up receiving the money thereafter.
- If the S corp. has a silent partner investor, this individual might not be happy with paying taxes on profits that she may not actually receive, particularly if she doesn’t have authority over how the earnings will be handled after taxes are paid.
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