Business Taxes California
El Cid Bookkeeping, Inc. Accountancy and Taxation will work closely with your staff and current accounting/accountant to transition over to us. Once both parties are comfortable with the new implementation of operating and accounting procedures, your accounting will be managed remotely at our office moving forward. We will meet once a month to go over our accounting.
- 1120 – S or C Corporations
- 1065 – Partnerships and LLC
- 1041 – Fiduciary Tax
- 1041 – Estate Tax
- 990 – Exempt Org (Non-Profit)
- 709 – Gift Tax
Form 1120 is used to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation. Domestic corporations use this form to report their income, gains, losses, deductions, credits, and figure their income tax liability.
A tax document used to report the income, losses and dividends of S corporation shareholders; it is an S corporation’s tax return. Form 1120S is part of the Schedule K-1 document. It is prepared for each individual shareholder and identifies the percentage of company shares owned by the individual for the tax year.
Form 1065 is a tax document used to report the profits, losses and deductions of business partnerships. In addition to Form 1065, https://www.irs.gov/forms-pubs/about-schedule-8812-form-1040 partnerships must also submit Schedule K-1, a document prepared for each individual partner.
For businesses that operate as partnerships, it’s the partners who are responsible for paying taxes on the business’ income, not the business. Each partner is responsible for filing an individual tax return (1040) reporting his share of income, losses, deductions and credits that the business reported on the informational 1065 tax return.
About Form 1041, U.S. Income Tax Return for Estates and Trusts. The fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate files this form to report: any income tax liability of the estate or trust.
Fiduciary Tax Information. A fiduciary is a person who holds the legal title to real or personal property for the use and benefit of another, and includes a personal representative of a decedent’s estate or a trustee of a testamentary or inter vivos trust (“living trust”).
Income Tax Return for Estates and Trusts, is required if the estate generates more than $600 in annual gross income. The decedent and their estate are separate taxable entities.
An estate or trust can generate income that must be reported on Form 1041, United States Income Tax Return for Estates and Trusts. However, if trust and estate beneficiaries are entitled to receive the income, the beneficiaries must pay the income tax rather than the trust or estate.
Form 990 is a United States Internal Revenue Service form that provides the public with financial information about a nonprofit organization. It is often the only source of such information. It is also used by government agencies to prevent organizations from abusing their tax-exempt status.
Return of Organization Exempt from Income Tax, including recent updates, related forms and instructions on how to file. Tax-exempt organizations, nonexempt charitable trusts, and section 527 political organizations file this form to provide the IRS with the information required.
The simplest way to subsidize others is by using the annual exclusion, which allows you to give $15,000 in cash or other assets each year to each of as many individuals as you want. Spouses can combine their annual exclusions to give $30,000 to any person tax-free – a process called gift-splitting.
It is the person who gives the gift who is subject to the tax and has to report it to the IRS. The gift that you received is not considered income but could have some gift tax liability for the giver. Because this was a gift, it needs to be reported by the person giving the gift.