Recent content by BIG E

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    QUESTIONS ON HOW TO RECORD DISPOSAL OF ASSET

    1,2,3,4 - Why don't you take a bookkeeping or accounting course to find out the answers to your questions? Part of the answer lies in the tax reporting rules.
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    Cost of Goods Sold

    That's pretty much the way to figure it - but do you also keep track of inventory on hand at the end of an accounting period? Of both fruits and vegetables AS WELL AS bottles and labels?
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    USA Booking ghost assets

    Why not have the client recognize what was done and Dr. Inventory/CR SALES? Of course, if it's merchandise, you'd have to recognize and pick up a sales tax liability? Problem with booking a J/E to shareholder equity is to prove WHERE THE FUNDS CAME FROM.
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    Goodwill entry

    When reporting this on the entity's tax return in the year of the transaction, you need to include Form 8594 that breaks down the sale by asset class.
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    USA Father passed leaving funds for children's college expenses.... need advice!

    You need to consult with an estate attorney Blind advice over the internet is no protection to your family over these types of issues
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    Rented building improvement

    The overlooked issue here is whether or not the tenant is permitted to make the improvements? Is there a provision in the lease that permits it?
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    Australia Prepayment

    What is stated on the bill for the billing period?
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    USA Not-for-profit?

    You need to form a tax exempt entity for this activity. It should be done through an attorney to set up the entity with the state's Department of State. But that's not all. Once set up, the entity needs to apply for an Employer Identification number with IRS and can be done online through...
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    USA 706-NA help

    You need to seek an estate attorney familiar with these issues. Certain things you've stated don't make sense. How can a brokerage account have 2 parents and 2 children's names on the same account? There needs to have been a transfer somewhere along the line between the parents to the children...
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    USA Schedule C Loss

    Can't you get the supplier to provide you with duplicate copies?
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    USA Selling/trading gifted car Texas (taxes)

    It doesn't matter what price your relative bought it for. What is important is that the car is valued at the lower of cost or FMV on the date the gift was made to you. Your relative should be filing a gift tax return to disclose the value of gift given to you since it could be valued at more...
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    USA Prepaid inventory?

    You don't record anything. You're attempting to learn just the bookkeeping without understanding the accounting function. When a financial statement or tax return is prepared, the difference shows up as a gross profit, the way it's supposed to.
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    USA Will this be taxed?

    Yes - the earnings from the investments will still be taxable, unless it's from municipal bond interest.
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    USA Will this be taxed?

    The way you posted the facts, it appears that they are no longer married. The money he gifts to her is not taxable income. However, if he is not married to her, he should file a gift tax return to show that he gifted more than the annual $ 15,000 exclusion. Transfers between married spouses are...
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    USA S Corp State Income Tax

    Because a distribution effects the shareholder's basis, whereas nondeductible expenses charged to AAA don't.
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