Frequently Asked Questions

Is Virtual Currency Treated As Currency In Foreign Currency Gain Or Loss Under U.S. Federal Tax Laws?

For purposes of determining whether a transaction results in foreign currency gain or loss under U.S. federal tax laws No. Under currently applicable law, virtual currency is not treated as currency that could generate foreign currency gain or loss for U.S. federal tax purposes.

How Is Virtual Currency Treated For Federal Tax Purposes?

How is virtual currency treated for federal tax purposes? For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.

How Do Taxes Work When You Have Your Own Business as Self Employed?

How Do Taxes Work When You Have Your Own Business as Self Employed? Your company profits are added to other income (interest, dividends, etc.) on your personal tax return. Qualified Sole Proprietors are able to take advantage of the 20% tax deduction, which allows them to deduct 20% of the business’s net income from their... [Read More]

When Do I Need to Issue a 1099-NEC?

When Do I Need to Issue a 1099-NEC? If you pay someone $600 or more for services during the tax year, you have to issue a 1099-NEC. This does not include payments for products.

What’s the Difference Between a Form W-2 and a Form 1099-MISC or Form 1099-NEC?

What’s the Difference Between a Form W-2 and a Form 1099-MISC or Form 1099-NEC? Employers who withhold payroll taxes issue Form W-2 to employees. Payers use Form 1099-NEC, Nonemployee Compensation for people or companies who provide services. Compensation to: Report payments made of at least $600 in the course of a trade or business to... [Read More]

Do I Have to File Taxes If My Business Made No Money?

All corporations and partnerships are required to file a tax return, even if they do not have any income. If an LLC has elected to be treated as a corporation or partnership for tax purposes, it must file a federal income tax return even if the LLC did not engage in any business during the... [Read More]

Need An Employer Identification Number (EIN)?

Sole Proprietorship & EIN Does A Small Company That Operates As A Sole Proprietorship Need An Employer Identification Number (EIN)? A sole proprietor without employees and who doesn’t file any excise or pension plan tax returns doesn’t need an EIN (but can get one).

For Business Travel, Are There Limits On The Amounts Deductible For Meals?

For Business Travel, Are There Limits On The Amounts Deductible For Meals? Generally, reimbursed meal expenses are deductible if your business trip is overnight or long enough that you need to stop for substantial sleep or rest to properly perform your duties.

How Does My Business Become An S Corporation?

How Does My Business Become An S Corporation? A corporation, or other business entity eligible to elect be treated as a corporation must use Form 2553, Election by a Small Business Corporation to make an S corporation election. A business entity treated as a corporation must meet certain tests to qualify to be an S... [Read More]

If I Were Sick For Covid, Can I Get A Tax Credit?

Self-employed and with COVID-19 If you are self-employed who, due to COVID-19 were unable to work or you cared for someone with COVID-19, you can claim refundable tax credits. According to the IRS, you can file a form 7202 if you: Conduct a trade or business that qualifies as self-employment income, and Are eligible to... [Read More]