Corporation State Change Income Tax Question

Corporation State Change Income Tax Question

Corporation State Change Income Tax Question

I want to change my sub-s Corp from a Kansas Corp to a Florida corp. I own real estate in Kansas under this corp.

What will my tax situation be regarding this real estate?

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Jan 20, 2024
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starstarstarstarstar 		Changing Your Sub-S Corp State:
by: BB

When transitioning your Sub-S Corp from Kansas to Florida and owning real estate in Kansas, it's crucial to consider the tax implications. Here's a brief overview:

State Tax Considerations:

Kansas has state income tax, while Florida does not. Moving the Sub-S Corp to Florida may impact state income tax obligations, potentially reducing your overall state tax burden.
Tax Treatment of Real Estate:

Assess how the change in state may affect the tax treatment of your real estate holdings. Different states may have varying rules regarding property taxes, deductions, and exemptions.
Tax Impact on Corporate Income:

Evaluate how the change in state affects the corporate income tax. Florida, being a no-income-tax state, might provide potential tax benefits compared to Kansas.
1031 Exchange Consideration:

If you plan to sell the Kansas real estate, explore the possibility of a 1031 exchange to defer capital gains tax. Consult with a tax professional to navigate this process effectively.
Tax Professional Guidance:

Given the complexities involved, it's crucial to consult with a tax professional or accountant who specializes in cross-state business transitions. They can provide personalized advice based on your specific situation.

Remember, tax laws can be intricate, and the impact of changing your Sub-S Corp's state on real estate holdings is multifaceted. Seeking professional advice will ensure a thorough understanding of the implications and help you make informed decisions.

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Corporate Tickets

Do I have to claim income for tickets I receive from my employer? Is there a dollar limit amount?

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Jan 20, 2024
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starstarstarstarstar 		Employer Provided Tickets
by: BB

es, you generally have to report income for tickets received from your employer. The value of these tickets is considered a fringe benefit and is subject to taxation. There isn't a specific dollar limit amount for all cases, as the value of the tickets would determine the taxable amount.

Here's a quick overview:

Fair Market Value:

The fair market value of the tickets is typically considered as taxable income. This includes tickets for events, concerts, or any other form of entertainment provided by your employer.
Taxation Rate:

The value of the tickets is added to your overall income and taxed at your applicable income tax rate.
Reporting Threshold:

There isn't a specific dollar limit that universally exempts the value of tickets from taxation. The fair market value determines whether the income needs to be reported.
Employer Reporting:

Your employer is likely to include the value of the tickets in your Form W-2 or provide a separate statement detailing the fringe benefits.

To ensure accurate reporting, it's advisable to consult with a tax professional or accountant. They can provide personalized advice based on your specific situation and help you understand the tax implications of employer-provided tickets.

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