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Steven Francis Schroeder

Steven Schroeder’s Answers

119 total


  • Live in California and want to create an LLC or Corporation in a startup/tax friendly state. I'm thinking Nevada and Wyoming.

    I have a children's product I invented and want to start selling online and soon start selling to big name stores such as walmart, target, toyrus, etc. I want to keep my personal finances and taxes separate. I don't plan on taking any salary at ...

    Steven’s Answer

    I would strongly suggest consulting with a attorney in your area. There are a lot of issues to go over when selecting a business entity in which to conduct your business and taxation is just one of those issues.

    There are three main entities you will be looking at, LLC, C Corp, and S Corp. Each has its own advantages and disadvantages. The C corporation is the only one that is not a pass through entity, unless a election to be treated as a corporation for tax purposes is elected on the LLC.

    There may be benefits of setting up the entity out of state but if you are operating the business in CA, i.e. managing resides in CA, then you will need to qualify the business in CA too. This could lead to additional operating costs.

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  • I am a teacher in California and I am leaving Teaching to run my own business, I need to get my retirement money

    What is the best way to get money (I have some hardships) I also have a 403 B

    Steven’s Answer

    The withdrawals will be subject to tax and possibly a 10% early withdrawal penalty. The IRS is pretty strict on waiving the 10% penalty based on hardship, and based on the minimal facts presented it doesn't seem you would qualify for a hardship withdrawal. You will want to speak with a attorney or CPA prior to withdrawing the monies so that you have a better understanding of the liabilities incur.

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  • If you worked but did not file taxes from 1993-2006, What is the outcome and how can it be fixed?

    Went to prison for DUI's for 2 years , 2006-2008, have filed ever since out of prison. Worked different jobs, paid taxes in but did not file, What happens when time to draw social security?

    Steven’s Answer

    You will want to contact a tax attorney or CPA in your area. They will be able to contact the IRS to see what income has been reported under your social security number and whether there is a filing requirement for that year.

    The IRS typically has 10 years from the date a return was filed to collect the taxes, and 3 years to audit the return. Have the CPA/ tax attorney can file the appropriate years to determine your liability and then speak with you about how best to resolvie the outstanding liabilities.

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  • I am listed on a report for mortgage satisfaction (deedbacks) but I am still getting letters on the tax and maintanence??

    Information shows under Volusia County Public Records.. I should no longer be responsible for this property.

    Steven’s Answer

    I agree with Mr. De Groot in that your questions is very confusing. What specifically are you asking?

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  • Claiming a child on income taxes

    I have joint legal custody of my four year old son. I have his mother who shares joint legal custody to give me his social security number so that I can use him as a dependent alternating years. Because she gets back thousands of dollars and an ...

    Steven’s Answer

    The issue of who can claim the child should have been addressed within the marital settlement agreement. If the agreement is silent on the issue you will need to look at the IRC Sec. 152(c)(4) to determine who is eligible to claim the deduction.

    Where both parents claim the child as a qualifying child the parent with whom the child lived the greater portion of the year is the one entitled to the deduction. You will want to take a look at the number of days your child lived with you and if it is more then 1/2 the year you would be entitled to the deduction. If this is the case paper file your return with your child marked as a dependent. This will get flagged by the IRS as a duplicate SSN resulting in the IRS opening a inquiry.

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  • I started a one-person IT consulting business in NC incorporated as an S Corp 2 months ago. But I have to move overseas soon.

    I will live in a foreign country for the next 3 years. I will provide my clients with consulting services remotely from this country. All my clients are from states other than NC. My clients will wire my fees to my business bank account in NC. For...

    Steven’s Answer

    I suggest sitting down with a tax attorney in your area as you have quite a bit of issues that need to be discussed, including the reporting of foreign based income on your Federal/ state return, potential FBAR requirements (Foreign Bank Account Reporting), and whether it is beneficial to keep open your NC corporation.

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  • Form 8843 for international students

    I'm an international student. For year 2012, I did not receive any income. Nevertheless, I forgot to file Form 8843 for taxes. The deadline for it was June 15 2013.

    Steven’s Answer

    As stated by Mr. Nielson it is better to file the form late rather then not file at all.

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  • Our 501(c)(3) tax exemption was revoked for failing to file 990 EZ for 3 years. We want to dissolve. What to do with real estate

    our non-profit owns. We have a contract to sell it but do not want to incur capital gains. Can we transfer the deed to the national headquarters for our non-for-profit that has a tax exemption and let them complete the sale? (the buyer would agree...

    Steven’s Answer

    I would suggest contacting a business/ tax attorney in the Chicago area as this could get quite complicated. There may be other issues that you as a director need to address. Look in the AVVO directory for some good attorneys in your area.

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  • I want to quit claim part of my mining claim to a family member, as a gift, do I use taxation code 11930? Thank You Gary

    Any help would be much appreciated

    Steven’s Answer

    Your question is rather vague. How much is the property worth? What tax are you concerned with, i.e. gift taxes, income taxes, etc. Please provide more details so that the attorneys here can respond.

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  • My mother sold her home years ago(not an issue?) She sold a piece of farmland while alive and paid capital gains on it.

    She is now ill and appears she will die within the year. After she paid capital gains on farmland(just land), she was (is) receiving monthly payments from bank which we brothers use for medical. She was Told by her accountant/attorney/broker (ABB)...

    Steven’s Answer

    You will want to speak with a tax attorney regarding this matter. I believe there are two issues that need to be discussed (capital gains and interest income). It sounds like when your mom sold the property she created a installment sale by carrying back paper. The installment sale will be comprised of 2 parts, capital gains on the appreciated property and interest due on the note. You will want to specifically discuss the tax treatment of these two components.

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