Recent content by MoralesTax

  1. MoralesTax

    USA Posting deferred income

    Never used Avanquest Bookkeeper software, and you may find faster/better help contacting their customer support team than asking on this forum. Unless you're lucky enough to find someone who knows the software (but I've never even heard of it)! As for the accounting theory behind your...
  2. MoralesTax

    USA Can I Claim Business Losses for a Business I Started While Still Receiving Unemployment?

    If you had no income, you should amortize your development expenses. You can elect to deduct up to $5K of those expenses in the year (for Start-up expenses). You're welcome, best of luck to you and Happy Valentine Day's as well
  3. MoralesTax

    USA PPP loan and retained earnings on 1120S Schedule L

    It should be included as Retained Earnings Line 24, not separate as an adjustment on Line 25. It is indeed Tax-Exempt Income, should be reflected on Line 5a of Sch M-1. You are correct that it increases your basis and it should also appear under the OAA cloumn in Sch M-2.
  4. MoralesTax

    USA Can I Claim Business Losses for a Business I Started While Still Receiving Unemployment?

    Hello there! The simple answer is yes; you can technically do so. I am not aware of any laws that state the contrary. However, you should be mindful of the following - 1) Unemployment is reported to the IRS, but it is a state-run program. 2) You would be wise to not show earned income (wages)...
  5. MoralesTax

    USA Trouble with new LLC transactions (journal entries)

    Hello there! Well as all things tax, it depends. I have answers, but they're likely to yield you with more questions. First, you could treat newly issued units from the LLC as compensation. The trick is that your new employee must report the units as wage income through payroll (and pay the...
  6. MoralesTax

    USA Contributing to an IRA with a disability pension.

    Disability Retirement Benefits If you get disability retirement benefits before you reach the minimum retirement age, you must claim the benefits as earned income when you claim the EITC. To find your minimum retirement age, check your retirement plan. The minimum retirement age is the earliest...
  7. MoralesTax

    USA Is suspended PPIA payments during COVID a tolling event?

    I truly appreciate you letting us know. Thanks!
  8. MoralesTax

    USA Writing off a website acquired as an investment

    First, Section 179 depreciation deduction does not apply to intangible assets. Second, presumably the websites were classified as Section 197 property and are therefore subjected to Section 167(g) loss limitation rules. Here's the takeaway: The general rule is that you can write off worthless...
  9. MoralesTax

    USA Additional Paid-In Capital

    The amount of par value is added to (presumably) Common Stock Outstanding, with the excess recorded in Additional Paid-in Capital.
  10. MoralesTax

    USA How to calculate the market cap of a company before and after IPO

    You're using historical data; whereas, the trading platform is using "real-time" data. Your method is not necessarily wrong, but you're not factoring current market value of the shares, which differs from the US GAAP numbers you're using by looking at S-1/10-Q reports.
  11. MoralesTax

    USA LLC Partnership Tax Return

    The election is made on the initial tax return filed. If this is the first year filing, you can decide whichever method to use. If a tax return has already been filed, then you must follow whichever was checked off. It can be changed, by filing Form 3115**. **Do note that this is a lengthy...
  12. MoralesTax

    USA FSA

    Does the outside payroll company not report it on the payroll summary?
  13. MoralesTax

    USA Capital gains tax on gifted/joint stocks?

    First, I think it would be prudent to mention that you do not owe any capital gains tax on the stock, if it is NOT sold. In other words, it needs to be sold, in order for there to be a gain or loss. You could choose to keep it, have it generate passive income and not worry about potential...
  14. MoralesTax

    USA Selling Rental House to Family

    I think @BIG E nailed the response. I would add that you first should determine whether the sale will generate a gain or a loss, before anything. Since this is a related-party transaction, you won't be able to recognize a loss on the sale. Given that you should have "several year's" worth of...
  15. MoralesTax

    USA Expense Reimbursement Date vs Tax Year

    Hi Nicholas, The time between when you authorize a transfer and when the transfer posts between banks is known as "float". At times, this float time can be confusing, as you are finding out, but it does not have to be so. The mere fact that you mentioned how physical checks work is exactly the...
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