Recent content by Werner Reisacher

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    USA Vendor's startup costs - Expense or Capitalize?

    We are really looking at a "retainer fee" that is non-reimbursable. How would you treat a lawyer's retainer?
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    USA Help, please

    And don't forget - collect as many copies of useful documents, manuals, etc., etc. you can get your hands on. Most of us are able to keep an established system running. Most of us are able to start from a blank piece of paper.
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    USA Withdrawing State Retirement Pension Early

    Not to mention: - Not every company/government agencies are accepting transfers of funds out of an employee's 401a as long as the employee is employed. - The CARE ACT has established rules that define the conditions that must be met to qualify for Care Act benefits. - Opening an IRA and closing...
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    USA Withdrawing State Retirement Pension Early

    Kirby, If you doubt that the IRS early withdrawal rules on 401K and the application of the "hardship rule" do not apply to 401A plans, I suggest that you do your research. And no, I do not do that work for you as I did for KAT who was unable (or too lazy) to find FBAR under the Treasury Act...
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    USA Withdrawing State Retirement Pension Early

    Irrespective whether you are applying for a waiver of the early withdrawal fee from your pension plan, under the Care Act or directly under the current rules of the IRS, the critical point remains your ability to justify the "hardship elements" of your situation and the kind of debts you are...
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    UK Flat rate VAT and Self Assesment

    The best way for you to understand the fundamental concept of the VAT law in the UK and the various opportunities it offers to small business self-employed "owner/operators" like you, is to read the information you will find on the following URL's...
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    USA Tax question

    Yes, you can if you select the "expense" method and do not simultaneously claim the "milage" deduction. You also must observe the rules regarding "personal" vs "business" and claim the lease payments on a proportionate basis. I assume that you have an agreement with your business partners on...
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    COGS/ Inventory Costs

    The company you are dealing with is using the "full absorption costing" under IAS 2. (under the umbrella of IFRS) Contrary to the direct costing system, all costs that are related to the purchase and handling and conversion of materials (fixed and variables) direct labor and services, and...
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    USA Closing a subsidiary

    From an accounting point of view, you closed "the books" of this company. From a legal and tax point of view, you must check with the Secretary of State of the State in which this company is incorporated, whether you need prior approval before redeeming the share capital of the company. In...
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    USA Deferred Royalty Payments- Can you recognize revenue??

    This scenario sounds like a "dream come true" for a salesman. Buy now, and don't worry about paying. Any graphic display of the probability to collect funds after 30 days displays the classic "hockey stick" shape. This is unfortunately the trap 70% of the restaurant start-up businesses fall...
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    USA Tax Treatment of Foreign-sibling Gift to U.S. Citizen and Resident

    Sorry, Kat, I should have been more precise in my definition of the reporting requirements of foreign financial assets owned by US citizens or residents. Back in 1970, the FBAR (Foreign Bank Account Reporting) law was passed. It was a requirement for US taxpayers to report foreign bank accounts...
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    USA Tax Treatment of Foreign-sibling Gift to U.S. Citizen and Resident

    1) Since your mother was never a US citizen nor a tax resident during recent years, this issue is mute. 2) Sorry, but I did not read carefully that all of the entire inheritance goes legally directly to your sister. In this case, all it changes is the fact that the funds will actually be...
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    Final Rules re: IRS Section 2801 and Form 708

    IRS Section 2801 deals with gifts and funds inherited from outside the country that belonged to a covered expatriate (an ex-US citizen that has renounced his citizenship)
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    USA Tax Treatment of Foreign-sibling Gift to U.S. Citizen and Resident

    Your mother's national status actually matters. If she was a US citizen, she was subject to US worldwide income taxation. If that was not disclosed, there would be a tax and possibly a FATCA (foreign bank account) issue. (for retroactive years during which income was earned) During the probate...
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    USA Margin Interest Reporting

    Yes, you will receive a 1099 INT and the corresponding information the IRS needs in form of 1099 DIV, 1099 B, K1s. Total interest deducted cannot exceed the profits generated by the investments.