Category Archives: FIRPTA

NEW EARLIER BUSINESS TAX RETURN DEADLINES – ARE YOU ALREADY LATE?

HOW DO I GET STARTED AND WHERE DO I BEGIN?  AM I LATE ALREADY?

Don’t wait to the Last minute! There are several NEW & EARLIER  tax filing deadlines starting with the 2016 tax year!

The 2016 tax year Personal tax returns are due April 18th, 2017  this year.  However, if you have certain types of small businesses, such as LLC’s and S-Corporations  – the filing deadline for most calendar-year corporation tax returns is March 15th for both of these types of returns each year!  (The LLC’s were previously due April 15th each year and are now due a full month early by March 15th of each year!)   Regular C-Corporation Type entity returns are now due April 15th each year.

It is important to note, that for certain types of business entities, such as S-Corporations and Limited Liability Corporations (“LLC”s) – since these are generally taxed as “pass-through type entities,” and the net taxable income or loss passes through to and is used in the tax calculation of the owners’ personal tax return,…the tax returns for these types of entities must be completed before the personal tax return of the owners’ !!

So, if you started a company during last year, and you are used to waiting until April to get your tax return done – you may be pushing the envelope as far as the deadlines to get both the business and personal tax returns done in time for the April personal filing deadline.

Worse, you may even miss the company tax return filing deadline should it now be March 15th and risk penalties – or not leave enough time to finish both the LLC and the Personal Tax Return by the mid-April filing deadline!

The IRS has been strictly enforcing the issuing of Form 1099-MISC to Independent contractors and for Attorney fees paid.  The new late penalties for filing after the NEW 7 EARLIER filing deadline of January 31 each year – as applicable – can result in penalties of approximately $200 per each late filed 1099 form!

It is important to realize that when you have a business, there may be other applicable earlier and more frequent interim Federal, State & Local tax form and tax filing deadlines compared to when you were just only filing a personal tax return before as an employee of someone else!

If you do in fact run out of time, you can perhaps file an extension.  However, remember that an extension is generally only an extension of time to file, not to pay the taxes.  Most Federal and State business and personal tax extensions require you to calculate and/or estimate as accurately as possible the amount of taxes due to be paid by the deadline and to pay that along with the extension – even if the forms are filed later – or you can risk incurring substantial penalties and interest.

With the right pre-planning and professional tax guidance form a certified tax professional, you can strive to be ahead of the game going forward…instead of behind the eight-ball!

Should you have questions or need Business or Individual Tax Advice, or help with FIRPTA:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

 

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IRS Recent FIRPTA Law Changes! FIRPTA withholding increases to 15%! Foreign sellers? Need Tips to avoid using the wrong applicable FIRPTA Rate ?

The new FIRPTA rules increase the withholding tax & rate to be 15%  paid by foreign sellers of certain properties effective Feb. 16, 2016!!

New FIRPTA Tax Rate applicable may be now 15% (versus the old 10% rate) on properties selling for US $1 Million  or more.

However, the 10% rate may apply for properties selling for under $1 Million (Note: Only if it meets and subject to the IRS criteria to be still eligible for the 10% rate).  Otherwise the new 15% rate may apply to certain transactions – even to those under $1 million!

Should you have questions or need help with FIRPTA,  or need Business or Individual tax advice, out firm is available via phone at (305) 672-4272  – as well as via e-mail at DAVID@CPA-FL.COM.  Our Firm Website is WWW.CPA-FL.COM

See our Firm Video on FIRPTA: 

http://www.youtube.com/watch?v=7ZfMCLgauwo

According to the FIRPTA Rules –  if a person is a US Non-Resident Foreigner and disposes of an interest in U.S. real property, that transaction (and the parties to the transaction) are subject to FIRPTA tax withholding.

The mere ‘disposition’ or transfer of real property by a foreign person can trigger the withholding tax of the minimum 10% -15%  (the newer applicable 15% rate for transactions over $1 million & 15% may be applicable on certain transactions even under $1 million per IRS criteria –  per the 2015 PATH Tax Act!)

The tax act puts a duty for a tax withholding of a minimum 10% – 15% tax  (the newer applicable 15% rate for properties transferred/selling for over $1 million – & 15% on certain transactions under $1 million per IRS criteria – per the 2015 PATH Tax Act effective February 16th, 2016) on the net proceeds on the purchaser(s), sellers, real estate agents and escrow agents such as the title company or law firm performing the closing.

The good news is that there are some exceptions provided for the FIRPTA withholding tax applicable – however it is important to note that these are not all automatically applicable.  Often, an Early Withholding Exemption Application must be filed with the IRS in advance of a real estate closing – in order to obtain a written determination of the actual withholding tax or exemption applicable to the transaction.

Also important to note is that If the IRS deems you are a responsible party for the FIRTPA withholding tax and you neglect to do so, you may be held liable for the tax!

If there is a moral to this story – it would be that if you are a realtor, purchaser, or real estate attorney who represents a foreign non-resident person, foreign entity or even a U.S. entity which is owned by a foreign person it is critical that you insist that the purchaser or seller seek the advice and formally engage a Certified Public Accountant or Tax Attorney to advise how the FIRPTA laws may apply to their particular situation.  The office of David L Wrubel, CPA, PA can be of assistance in this capacity.

Should you have questions or need help with FIRPTA as well as need Business or Individual Tax Advice:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

 

Source: Foreign sellers? FIRPTA withholding increases to 15%

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IRS New FIRPTA Law Changes! FIRPTA withholding increases to 15%! Foreign sellers?

The new FIRPTA rules increase the withholding tax & rate to be 15%  paid by foreign sellers of certain properties effective Feb. 16, 2016!!

New FIRPTA Tax Rate applicable may be now 15% (versus the old 10% rate) on properties selling for US $1 Million  or more.

However, the 10% rate may apply for properties selling for under $1 Million (Note: Only if it meets and subject to the IRS criteria to be still eligible for the 10% rate).  Otherwise the new 15% rate may apply to certain transactions – even to those under $1 million!

Should you have questions or need help with FIRPTA,  or need Business or Individual tax advice, out firm is available via phone at (305) 672-4272  – as well as via e-mail at DAVID@CPA-FL.COM.  Our Firm Website is WWW.CPA-FL.COM

See our Firm Video on FIRPTA: 

http://www.youtube.com/watch?v=7ZfMCLgauwo

According to the FIRPTA Rules –  if a person is a US Non-Resident Foreigner and disposes of an interest in U.S. real property, that transaction (and the parties to the transaction) are subject to FIRPTA tax withholding.

The mere ‘disposition’ or transfer of real property by a foreign person can trigger the withholding tax of the minimum 10% -15%  (the newer applicable 15% rate for transactions over $1 million & 15% may be applicable on certain transactions even under $1 million per IRS criteria –  per the 2015 PATH Tax Act!)

The tax act puts a duty for a tax withholding of a minimum 10% – 15% tax  (the newer applicable 15% rate for properties transferred/selling for over $1 million – & 15% on certain transactions under $1 million per IRS criteria – per the 2015 PATH Tax Act effective February 16th, 2016) on the net proceeds on the purchaser(s), sellers, real estate agents and escrow agents such as the title company or law firm performing the closing.

The good news is that there are some exceptions provided for the FIRPTA withholding tax applicable – however it is important to note that these are not all automatically applicable.  Often, an Early Withholding Exemption Application must be filed with the IRS in advance of a real estate closing – in order to obtain a written determination of the actual withholding tax or exemption applicable to the transaction.

Also important to note is that If the IRS deems you are a responsible party for the FIRTPA withholding tax and you neglect to do so, you may be held liable for the tax!

If there is a moral to this story – it would be that if you are a realtor, purchaser, or real estate attorney who represents a foreign non-resident person, foreign entity or even a U.S. entity which is owned by a foreign person it is critical that you insist that the purchaser or seller seek the advice and formally engage a Certified Public Accountant or Tax Attorney to advise how the FIRPTA laws may apply to their particular situation.  The office of David L Wrubel, CPA, PA can be of assistance in this capacity.

Should you have questions or need Business or Individual Tax Advice, or help with FIRPTA:

Our firm may be contacted at: 

PHONE:  (305) 672-4272  [4CPA]

E-MAIL:  DAVID@CPA-FL.COM   

WEBSITE:  WWW.CPA-FL.COM

FOLLOW US ON TWITTER: @MiamiBeachCPA

Source: Foreign sellers? FIRPTA withholding increases to 15%

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