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Unique Tax Situation for S-corp Formed in Texas but Living in Two States
I formed a single-member LLC (taxed as an S-corp) in Texas for online technical consulting. I lived in Florida temporarily for 6 months to work at a client's office and then moved back to Texas, where I have a permanent home.
- Should I run payroll in Texas, or should I run payroll in Florida for the months I was traveling there? What is better for tax deductions?
- If I run payroll in Texas, can I claim per diem expenses while in Florida, such as rent and meal expenses, as they would be considered travel expenses?
- If I can deduct my rent in Florida, does the lease need to be in my LLC's name, or can it be in my personal name? We rented an apartment for 6 months.
- I bought a car that I use solely for work. Considering I get the same deduction for the standard mileage rate versus actual expenses, is it better to choose one over the other (e.g., less scrutiny or proof needed for the IRS)?
March 14, 2024
3:46 AM