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you should try other banks... I use bench for bookeeping and they sent me a list of banks that were taking applications (can send if you want), and they advised to apply with multiple banks at once. I didn't have to go that route, but sounded like good advice....
Yes, please ๐Ÿ™
What did you decide about this U17A5A9U5? Did you check yes?
I honestly don't know the right answer. I'm assuming that the banks would verify if I qualify based on the documents I provided, but that may be a faulty assumption.
Itโ€™s so confusing
me too please!
I can't share links since I'm a newbie :( -- but just sent it to zhgauqrul if he can share the full link - -but main bank they listed was BlueVine then a list of other community banks.
I just got a notice of my stimulus payment in the mail about a month after the actual payment was direct deposited ๐Ÿ˜…
apparently everyone's getting a letter in the mail in addition to the deposit (with Trump's signature) that your check was deposited. It's for memories ๐Ÿ˜‚
why tf is there a deadline
because fuck you that's why
They're sure that all the people with accountants have already done it, and they don't give a fuck about people who don't have an accountant, because those people are poor
What a gigantic god damn waste of money
(not the checks, mailing out shit with Trump's signature)
i thought they were already mailing peoples checks though/
Oh no. I clicked on that article link and now I only have one more free article left to read this month in Accounting Today
Mine says it was โ€œscheduled to be mailed May 1โ€ so what the heck am I supposed to do?
mine was scheduled to me mailed may 1 and it took several days to arrive so I expect it wasn't actually mailed may 1
Mine still hasnโ€™t arrived. I assume theyโ€™re mailing it to my accountant since thatโ€™s the address I used on my 2018 tax return. Sheโ€™s in the Netherlands so I guess it could take a week or so
My stimulus checkโ€ฆif it actually existsโ€ฆmay do more traveling than me this year
My check gonna have status and Iโ€™m nothing ovah heya
yup a ridiculous waste of money, time and effort...smh
Why can't I just pay _them_ $1200 less, this is so ridiculous
Their system still thinks I don't exist, so whatever not worth my sanity
There is a certain irony of having his signature on checks given all the stories we heard of him stiffing small businesses and individuals before getting to the WH.
Question RE FEIE. Does anyone know how IRS classifies variable foreign earned royalty income? (royalty from book sales?)
znuiejkukutpv My understanding is that itโ€™s earned if youโ€™re still working in the space (writing it, marketing it, etc). Thus itโ€™s subject to SE tax but falls under FEIE. If itโ€™s passive then itโ€™s not earned so itโ€™s subject to income tax but not SE tax.
Ok, makes sense. So better earn it under a salary from a company...
Thank you
Is it a good idea to be cautious with PPP funds until the forgiveness is approved?
Remember that funds need to be spent within an 8 week period
What does that mean?
Especially for independent contractors....
I thought PPP can't be used to pay contractors
It can't be used to pay independent contractors, but if you are an independent contractor, you can qualify for funds.
Yikes! That seems to significantly reduce the amount I can get forgiven... I doubt I can claim an Airbnb bill as a forgiveable expense...
Or, wait... Maybe not...
I guess the loan I got is already for the forgiveable amount.
I think the PPP rules may be changing soon
Does anyone have an idea whether being a "self employed" overseas would be a CFC in the eyes of IRS? (not asking for a tax advice)
jifztglxtckkf do you run a company that is based in US? Or youโ€™re freelance?
jprjuyodawhu neither, I run a company which is based in Europe
My question is how IRS sees US Citizens who are self-employed in Georgia, for example
The US taxes it's citizen on their worldwide income
hey, hqqqplzeqh , how are you doing? Yeah, this fact is not an issue.
In some countries self-employed is kinda a business form, and may or may not be treated as a pass-through entity. so I'm wondering if those incomes are personal incomes or CFC incomes
I'm not really up on CFCs tbh, but if it's passthrough, the US will tax it. You've got the FEIE and the FTC to offset it. That's about as far as my knowledge stretches
Is there an IRS doc that says what is actually passthrough for the tax purposes?
It all passes through UJT9E93EY. Thatโ€™s pretty much the governmentโ€™s goal. You get taxed on all of it irrespective of entity. It used to be that you could leave some money in an entity and pay upon distribution. Now, mostly, you canโ€™t. You take in money, deduct business expenses, pay tax on the difference. Thankfully you get an FEIE break if youโ€™re eligible. What are you trying to exclude? And how much is it?
But it answers the "self employed" type of European entities in my case
U02T6G2G0ย hmmm isn't there is an exception when the corp tax rate is above 18.9% according to Subpart F income under Section 954(b)(4)ย 
Yep, it's the Subpart F income that I was referring to when I referred to how things used to be - before the most recent significant changes. The tax reform mostly eliminated the possibilities for deferring the taxes.
You can eliminate the tax on the FEIE income for both spouses and you can eliminate the Self-Employment tax. There are some other trivial things you can do. Beyond that, from what I can tell, you've got to pay the taxes.
Wait, but as far as I understand, 18.9% high tax exclusion according to 954(b) is still in effect, no?
```While the statutory language to the high-tax exception was unchanged by the TCJA, other amendments affect the determination of whether an item of income meets the high-tax exception. First, the TCJA reduced the top U.S. corporate tax rate from 35% to 21%. As a result, an item of income will meet the high-tax exception if it is subject to tax in a foreign country at a rate greater than 18.9% (rather than the 31.5% pre-TCJA rate). With the corporate tax rate in many foreign countries exceeding 18.9%, there is a greater likelihood that U.S. groups of multinational enterprises can take advantage of the high-tax exception post-TCJA because it is more likely that the effective tax rate requirement will be satisfied.```
I'm in a no way an expert, but this has been a theme through multiple people I've talked to
And yes, FEIE totally makes sense, absolutely, if we're talking about my family's personal income
Lets back up a bit - have you ever paid, or do you anticipate paying, corporate income tax? If so, why?
Haven't done it, but it will be paid in Estonia in case of dividend distribution. So 20% corporate to Estonian govt + whatever personal ordinary/gap gains tax. that IRS wants from me
โ€ข Corp reinvests revenue into itself or public stock
โ€ข Corp pays dividends to the shareholders at some point, which triggers a 20% corp tax
So let's say, for 2021 there are some dividends distribution planned.
I'm sure you're doing it right. I'm assuming you can't avoid a profit. But I've never been forced into that position and would do everything possible to avoid that kind of double tax. Obviously in the US (or in a zero corporate tax jurisdiction) it's easy to just pay it out in payroll.
Yes. The main target is payroll. The question is whether I can count that 20% Corp tax for the purpose of high tax deduction
And if yes, then I can safely reinvest profits that are not paid via payroll into stocks or other assets, or temporary keep in cash for timing structuring purposes
Many EIDL loans now closing. Emergency payments came through way back but the rest of the loan is now being funded for many folks I know.
Does anyone have any clue how would an Ex-Californian FEIE status affect a newly formed WY LLC and CA franchise tax? Customers are in US CA, NY, PA
It sounds like there is no hope and there is no effect at all, but maybe...
What do you mean by ex-Californian FEIE status?
Regardless of your LLC's location, your FEIE status, and your personal state residency, you still have to file a non-resident return and pay CA franchise tax if you have income sourced from California. I think there might be a minimum income threshold for this but I'm not sure
Does anyone have information on PPP forgiveness for business owners?
Iโ€™ve been reading the following โ€œNew Loan Forgiveness Caps for Owner-Employees and Self-Employed Individuals. To the surprise of many, the SBA imposes a cap on the amount of loan forgiveness available for owner-employees and self-employed individuals based on their 2019 income. For such individuals, payroll compensation cannot be more than the lesser of $15,385 or 8/52 of their 2019 compensation. Schedule C filers are capped by the amount of their owner compensation replacement, calculated based on 2019 net profit, and general partners are capped by the amount of their 2019 net earnings from self-employment multiplied by .9235. There is also no additional forgiveness for retirement or health insurance contributions of self-employed individuals.โ€
Iโ€™m aware this is varying regularly, just was curious if anyone has applied in this situation and what the response has been?
I donโ€™t understand the question. All the above quote seems to say is what the program terms were stated to be prior to applications being accepted. It was not a surprise..
You apply, you get the money, you get it forgiven (later) if you do what youโ€™re required to do
Yeah, domicile and income source are two separate tests....
Thanks for your response
I guess I was hoping to avoid a "doing business in CA" label
Yeah, I'm in a similar position and also wanted to avoid this. My accountant said there's no getting around it since I source about 36% of my income from California clients. IIRC, if it had been less than 25%, I might not have had to file in CA? But don't quote me on that
I guess this is will be inevidable for any service business that targets technology
Basically, most of tech /startups is in CA... so for me that would be always the case
Then question is this, whether having LLC in CA would affect FEIE in any way...
like CA thinks I'm doing business in CA and I'm not qualifying for a self harbor. question for an accountant.
I also had the same question about FEIE and CA, because that was where I lived before becoming a nomad. My accountant made me sever all ties with California personally, but she said it was OK to have my LLC's address be there because FEIE is for my personal taxes, and the LLC is a separate entity
The other thing to note is that CA does not recognize FEIE on your personal state taxes. So if you haven't done so already, it'd be good to establish permanent residency in another state (one that does recognize FEIE), or a different country, before you leave. But this is just relevant to your personal taxes, not your LLC
But obvi check with an accountant for all this because this conversation took place 2 years ago and I might not be remembering right
Yeah, my case is not residence in a different state, but more like employment in a foreign company.
Makes sense anyway. Do you have any idea what's the overall maintenance cost over a year for a generic single member software LLC in CA? Is it opening fees + $800 CA license +~$200 tax return prep fees?
Not sure. I use a very comprehensive tax prep package, so I pay far more than $200/year for tax prep, but they manage all this stuff for me. It's been a while since I've thought about the cost breakdown for this
whxnuac there is talk that all PPP loans < ~$150k will get auto-forgiven
heard whispers about that this morning, thanks for the tip
seems like things are changing so fast might as well just wait and see
Yep! We arenโ€™t filing any paperwork for a while
Letting this play out
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