James H Sutton Jr.’s Answers

James H Sutton Jr.

Tampa Tax Lawyer.

Contributor Level 13
  1. Does a LLC need to file taxes if it made less than $1000.00 for the year?

    Answered over 2 years ago.

    1. Steven J. Fromm
    2. James H Sutton Jr.
    3. Arthur Harold Geffen
    3 lawyer answers

    What type of entity is this for tax purposes? S-Corporation, C-Corporation, Partnership, or disregarded entity? It would help everyone answer the question with this detail. Also - did you gross $1,000 of revenue or did you net $1,000 of profit. If the answer is the former and you actually made a loss overall, then that might affect the answer too. The 1st post gave the correct answer if the entity is disregarded in that it should be put on a schedule C with your personal return. That...

    14 lawyers agreed with this answer

  2. The judge wants to have a telephone "conference". How can we protect ourselves?

    Answered over 2 years ago.

    1. James H Sutton Jr.
    2. Phillip Monroe Smith
    3. J David Hopkins
    4. Rixon Charles Rafter III
    4 lawyer answers

    Ok - please hear me on this. You really do not want to represent yourself in Tax Court. There are tooooooo many very technical rules that a layman just can't begin to grasp. At least half don't even make logical sense unless you are seriously into tax to begin with. Tax court ruling can be devastating. If you are willing to fight, then bring in tax attorney to help. If you really and truely can't afford one, then contact the local bar association and see if someone can help you pro bono....

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  3. Do I need to include Sales Tax when invoicing a foreign company?

    Answered over 1 year ago.

    1. Todd Matthew Heine
    2. James H Sutton Jr.
    3. Luca Cristiano Maria Melchionna
    3 lawyer answers

    I believe you have been given two great starting point answers that both address the foreign tax issues inherent in your facts. To directly answer your question, from your brief description, I don't believe what you are providing is something subject to Florida sales and use tax. Most services are not subject to sales tax in Florida and research is not one of those few services subject to tax. Just make sure that you are providing all your research electronically and you should not have a...

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  4. Can a person who is not an active member in an LLC transfer shares to their spouse who is active without tax penalties?

    Answered over 2 years ago.

    1. James H Sutton Jr.
    2. Brett A. Thompson
    3. Henry Daniel Lively
    3 lawyer answers

    Short answer - most likely yes. Spouses can gift assets to each other usually without income or gift tax consequences. I hope this helps.

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  5. Am I personally liable for corporate income tax in California?

    Answered almost 3 years ago.

    1. Phillip Monroe Smith
    2. James H Sutton Jr.
    3. Henry Daniel Lively
    3 lawyer answers

    While your question was specifically about the potential of personal liability for the $800 minimum corporate income taxes in CA, there are other types of state taxes that can cause you to have personal liability. I mention this because I'm surprised by the number of people that do not realize that some taxes can cause personal liability until it is too late - and they often get advice from friends and business associates that leads them right down the path to personal liability. Taxes that...

    8 lawyers agreed with this answer

    1 person marked this answer as helpful

  6. I have an online business which it does not sell anything but service (no sales tax), where do i register the business?

    Answered over 1 year ago.

    1. James H Sutton Jr.
    2. Mark Robert Mohler
    3. Matthew Adam Pek
    3 lawyer answers

    If you want the least complications, then you should register the business where you are going to be running the business. Registering the business in one place then running the business from somewhere else will likely cause you to have tax issues in both places. AVVO says the question originated in Boca Raton, FL. Florida is not a bad place to set up the business because there is no personal income tax here and the services you describe should not be subject to sales tax either. If...

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  7. Can a remainderman apply some of a life estate ALF(medicaid) client's social security to maintain his property( taxes,repairs)?

    Answered over 2 years ago.

    1. James H Sutton Jr.
    2. Clifford Michael Farrell
    3. Henry Daniel Lively
    3 lawyer answers

    Your question is a little ambiguous. To which property are you talking about applying the income from the property? Your mother's homestead or your own. You mention "his property" in the question. Presuming you are talking about the same piece of property (considering that it will eventually be yours), then the most simple answer is that it depends on what the trust documents state. Most likely, as you infer in your question, the trust will give the trustee the power to use funds from the...

    6 lawyers agreed with this answer

  8. I'm in FL, want to gift $5,000 to grandkids now. What documentation do I need for tax purposes? Memo on check? Receipt fr. bank?

    Answered almost 3 years ago.

    1. James H Sutton Jr.
    2. Steven M Zelinger
    3. Christopher Michael Larson
    4. Henry Daniel Lively
    4 lawyer answers

    The most simple answer - keep a copy of each check after they have been deposited. You don't need to report anything for federal tax purposes as long as you do not gift more than $13,000 to any one person. It would be a good idea to have the check cashed before the end of the year, but it is not necessary. Giving the check before the end of the year is sufficient to make a completed gift as long as the funds are in the checking account at the time the check is given. It is usually a good...

    6 lawyers agreed with this answer

  9. Tax Return Question?

    Answered almost 3 years ago.

    1. Jeffrey B. Engle
    2. James H Sutton Jr.
    3. Phillip Monroe Smith
    3 lawyer answers

    The direct answer to your question is yes - $6,000 of revenue, $3,000 cost of cogs sold, equals $3,000 of net gain on your sale that may be short term or long term income. However, your question is rather curious. I don't get the impression you are asking whether you have to claim the income but rather whether you can claim the income. That leads me to question why you want to claim the income. Are you looking to claim the income to qualify for some retirement contribution minimums or...

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  10. Magazine Subscription and Sales tax

    Answered over 2 years ago.

    1. James H Sutton Jr.
    2. Curtis Lamar Harrington Jr
    3. Brett A. Thompson
    4. Christopher Michael Larson
    4 lawyer answers

    I agree with the prior answer. Any state that you have a physical presence (property, employees, or independent contractors), then you should presume that your have the required minimum contacts with the state to be force into collecting and remitting the state's sales taxes. This presumes that magazine subscriptions are actually subject to sales tax in that state (which you should confirm). The problem is that a state in which you have no physical presence still might try to claim (years...

    7 lawyers agreed with this answer

    1 person marked this answer as helpful