Suppose that during a given year, I receive payments of $50,000. During this year, $30,000 of these payments have not yet been earned. Should the $50k go as revenue on my income statement? Should the $30k go as a liability on my balance sheet? How should I represent all of this in the liability section of my balance sheet?
Thanks in advance.
Serving as executor – both parents passed in 2005. How is the Estate and Income Tax handled for both New Jersey and Federal returns on Annuities and Life/Term Insurance. Not sure what is taxable as Income and what is taxable to Estate. Also, not sure who pays the taxes, beneficiary or estate on the income tax – assuming there is a income tax liability.
My boyfriend and I are planning to start selling things on eBay. We want to split the income. Obviously the account will need to be set up through just one of us for now as we begin and see if it is something worth doing.
I know the basics of how taxes work with sole proprietorships in terms of paying tax on income and keeping records of expenses, but how can I "pay" him, vise versa or divide the income? We don't want to combine our taxes in any other way.
I recently moved from Michigan to Tennessee, and am continuing to work remotely for the same company. I understand that under normal circumstances, the two states would do some sort of weird mathematical equation behind the scenes to figure who gets how much tax on my income. How does this work in Tennessee, which has no state income tax on wages? Have I chosen poorly by moving to a state where sales tax is higher to help compensate for the lack of income tax, or will I get some sort of credit next year?
