How are US taxes calculated dividends and gains for a non-resident investor

There are a few specifics you need to consider as you read the following answer for non-resident investors paying US tax. Dividends will generally be considered FDAP Income (Fixed, Determinable, Annual Periodic), taxed at a fixed rate for a non-resident. Effectively Connected Income (ECI) will be taxed differently than straight income from investments. Assuming you are just an Read more about How are US taxes calculated dividends and gains for a non-resident investor[…]

Tax

Married couple work as independent contractors form an LLC?

Question: Married couple live in California, both work as independent contractors, should they form a Delaware LLC and elect to be taxed as a corporation since the corporate tax rate is only 15% on the first $50,000 of profit. Answer by Wray Rives CPA CGMA: First off there is no scenario where just forming an Read more about Married couple work as independent contractors form an LLC?[…]

How important is it to file 83(b) election S-Corp?

My answer to How important is it to file a Section 83(b) election for an S-Corp? Answer by Wray Rives CPA CGMA: As to the question about making an 83(b) election, it is very critical that you understand the consequences of making the election for restricted stock in an S Corp, but if you should Read more about How important is it to file 83(b) election S-Corp?[…]

As a single non-resident U.S alien owner of a LLC in Wyoming selling inventory through Amazon FBA what are my US tax obligations

My answer to As a single non-resident U.S alien owner of a LLC in Wyoming selling only inventory through Amazon FBA… Answer by Wray Rives CPA CGMA: What makes FBA different? Generally speaking Amazon FBA creates an agency relationship between you and Amazon, which makes Amazon your agent in the US. Under most tax laws Read more about As a single non-resident U.S alien owner of a LLC in Wyoming selling inventory through Amazon FBA what are my US tax obligations[…]

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Should I file my startup in Delaware if it’s located in Texas?

My answer to Should I file my startup in Delaware if it’s located in Texas? Answer by Wray Rives CPA CGMA: If you will operate your Texas startup from Texas, you will have to be registered in Texas no matter what. The only reason to register in DE is because you intend to seek outside Read more about Should I file my startup in Delaware if it’s located in Texas?[…]

Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?

My answer to Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes? Answer by Wray Rives: First make sure that in fact your Australian employer is subject to US tax reporting and US employment tax. Employment Status Number one are you in fact an Independent Contractor (Self-Employed) or Read more about Can a US citizen and employee sue his Australian employer for non-payment of IRS employment taxes?[…]

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What happens with negative K-1 distribution of US S-Corporation?

How to you distribute losses on a K1 for S-Corporation shareholders? Answer by Wray Rives CPA CGMA: There are a number of issues and facts to consider with S Corp losses. Not Earned Income/Not Passive Income – The flow through income from an S Corp is not earned income, but it is not necessarily passive Read more about What happens with negative K-1 distribution of US S-Corporation?[…]

Accounting Calculator

How does e-business affect the accounting profession

My answer to How does the development of e-business affect the accounting profession, in both positive and negative… Answer by Wray Rives CPA CGMA I see two primary e-business dynamics that directly impact the accounting industry. Web based tools that facilitate remote delivery of services Web based tools that automate the clerical aspects of accounting Read more about How does e-business affect the accounting profession[…]