Do i have to provide w9 forms if i form a company whos sole purpose is to higher freelancers to do work for OTHER businesses?   No. But if you don't then "YOU PERSONALLY" will have an increased potential for serious legal issues at tax filing time.  If your company will be paying "ANYBODY" for "ANYTHING" then they are either a W-2 employee of your company, or a subcontractor hired by your company.  You can't do the legally required tax reporting without the employee's or contractor's SSN or EIN. You should require all prospects to provide you with a completed W-9 before you hire them, and before you pay one single penny to anyone or any other business/organization. Since you can get the W-9 form for absolutely free yourself "right now" at https://www.irs.gov/pub/irs-pdf/fw9.pdf and print as many copies as you need, this should not be an issue. In order for a business to claim wages paid to an employee or contractor, that business must have either the SSN or EIN of the person or entity paid in order for the business to claim and deduct it as a business expense. (Things are different if the employee/business is not a U.S. Citizen or legal alien, and physically resides outside of the United States.)   ... View more

Unfortunately, only the IRS can answer that question. Once your e-filed return is accepted by the IRS, that's it. Under no circumtances will the IRS communicate to TurboTax or anyone else, the status of your return. You can call the IRS on monday at 1-800-829-1040 and ask them. Expect to be on hold for a loooooong time.   ... View more

there is no limitation as to the number of owners/users who can claim the exclusion  While possible, I just don't find it realistic that two families would live in a single family dwelling as their primary residence for two or more years. But if this is a duplex, then it's perfectly possible if each family lived in one of the units. It's also possible for one family to live in it for two years, they move out and the other family moves in for 2 years. Then if it's sold before the 5-year mark of the first family moving in, both families would qualify. Of course, both families would also have a recapture and pay tax on their share of the recaptured depreciation too. As a reminder to others, the 2 year count does not start until "after" your name is on the deed.   ... View more

My dad is planning on gifting his rental property to me and my brother 50-50 ownership. Understand that when you are gifted the property you do *not* get a step-up in the cost basis. Your cost basis will be his cost basis. Additionally, you are also gifted "all" of his total depreciation already taken on the property, which you have to recapture and pay taxes on when  you sell the property *no* *matter* *what*. The depreciation is not excluded from taxation with the "lived in 2 of last 5" rule. You "will" pay taxes on recaptured depreciation, and that depreciation recapture will increase your AGI - potentially putting you in a higher tax bracket. Our plan is to move into the property for 2 years and then sell the property.  A few questions. As we are both married and we are going to live in the house for 2 years, do we both qualify for the FULL $500k exclusion I can't say definitively, but I seriously doubt it. If the property is classified as a single family residence, then only one family can call it their primary residence. will we be subjected to the non qualified use rule for the years the property was rented prior to us receiving it as a gift? Lacking some clarification here. Rented to "US"???? Rented to both families? Is this rental  property a duplex where each family paid rent to live in separate units? Or do the years prior to receiving as a gift not count as that relates to a different owner? Yes they count. Like I said above, when a property is gifted, "everything" is gifted, including all prior depreciation and use of the property. When we sell will we be subjected to any depreciation recaptured that occurred from depreciation claimed prior to us receiving the property as a gift?? Yes, you will be required to recapture all prior depreciation including that taken by the giver of the gift. That recaptured depreciation will be taxed too, no matter what. Since I get the impression the transaction hasn't occurred yet, I would highly advise all parties involved to seek legal advice of both a tax attorney and a real estate attorney. If your state also taxes personal income, then you can double that recommendation. Your situation is complex because you're dealing with two families that rented from a blood related family member and now that family member is "giving" the property to their blood related tenants. There is nothing simple about this - especially if the property is classified as a single family residence.  So in conclusion: Seek professional help and advice  *BEFORE* you make any final decisions or taken any action.   ... View more

If the HOA is a 501(c)3 organization (most are) then you can't use any version of TurboTax. The HOA has to file IRS Form 990 and TurboTax does not support or include that form.   ... View more

Not just income, but self-employment income. The fact is, you have to  do something, usually on a recurring basis to "earn" it. People don't' just walk up to you out of the blue and say "heres a few bucks" and walk away. You provide them something in return first, in the way of entertainment as a street performer. That would be in contract to a pan-handler to does ask for handouts for nothing in return.     ... View more

If you make at estimated payment of "AT LEAST" 20% of the unexpected and as-of-yet untaxed income, then come tax filing time you should be fine. If you had untaxed income in the first three quarters that you did not make quarterly payments on yet, then make one lump sum payment as soon as possible if not sooner, so as to stop the potential accumulation of late payment penalties. Then at tax filing time (and not before) you may be able to reduce any potential penalties (if not eliminate them entirely) by quantifying the income for each quarter. That's done under the "Other Tax Situations" tab in the section for quarterly tax payments. When you make the payment you are about to make "right now", make it your 2020 3rd quarter payment which was due on Sept 15, 2020. That leaves you room for your 4th quarter payment, which has a due date of Jan 15, 2021, in case you recieve any more untaxed income between now and Dec 31st. You can make your payment immediately online at www.irs.gov/payments.   ... View more

Don't know why you're filing separately if your status was married on Dec 31 of the tax year. But folks to have their reasons so I won't pry. Just be aware that when a married couple files separate, they BOTH automatically lose out on deductions they would otherwise qualify for if they filed joint. One of you having a business is not justification by any stretch of the imagination for filing separate. Business expenses are "NOT" a SCH A deduction. No exceptions here. Business expenses are a business deduction taken directly against the business income, and it does not matter if you itemize other deductions on SCH A or not. Until your itemized deductions on SCH A (which does not include business deductions) exceed your standard deduction, it will make absolutely no difference to your tax liability at all. Doesn't matter if you file separate or joint. However, what will have the potential of making a difference if you file separate returns, is the deductions you will both automatically disqualify for. For example, neither of you can take any education expense deductions, or some of the dependent child related deductions if kids are involved here. That's just the tip of the iceberg. ... View more

While I can see such documentation for the business that owns the car, I can't find anything that clarifies that for a rental vehicle. I mean, a car rental service does annotate starting/ending miles for each client that rents from them. But they don't ask for the purpose of use, list of destinations and all that stuff. The car is more of a business asset to the rental company that is used to generate income for that rental business. But while keeping more detailed records of my personal use for my business (which is the owner of the vehicle) I'd only see the need to document mileage only for the entity renting the vehicle from me. Just the mileage when it left the lot, and the mileage when it returned. Don't know what good that would do unless I was charging rent at a per-mile rate. But I'd do that anyway.   ... View more

I get the impression that you have a mix of 1 or more single member LLCs, and I already know that you have "at least" one multi-member LLC. The single member LLCs get reported on SCH C as a part of the personal 1040 tax return of the legal owner of the business. Whereas the multi-member LLC (you and brother) gets reported on the physically separate 1065 Multi-member LLC/Partnership tax return. Claiming a vhicle in multiple businesses of the same structure is complicated enough. Using it among different business types can be an absolute ever lasting nightmare from which you will never awaken. One teeny tiny mistake with just one business, can have a ripple effect (depending on the mistake) across all businesses making taxes pure hell. Since the vehicle will be purchased with one of the businesses as the titled owner of the vehicle, and will be 100% business use (i.e.; not driven one single inch for personal use by anyone) then I would suggest the business that owns the vehicle, rent it out to the other businesses at something like a fixed rate per day, or fixed rate per mile. Then claim the vehicle as a business asset. If feasible and reasonable, if the business that owns is the business that will drive it the least (or not at all) then it can be listed as a business asset that gets depreciated over 5 years. The rent paid to the business would be business income. The taxability of that income would be offset by the costs associated with maintaining the vehicle, which could include the cost of gas if you include that in the rental price. For the business that owns the vehicle, it's expenses for use would be the actual costs to that owning business. I'm not sure,but I'm pretty confident that with absolutely no personal use, mileage logs would not be required. (But I would still do so anyway) For the businesses leasing the vehicle, they won't need to keep mileage logs, since they would be paying a bonafide business rental expense for the vehicle.       ... View more