California Wants Me to Pay Taxes
- Thread starter nwmnwm
- Start date
"A U.S. citizen will continue to be treated as a U.S. resident during a period overseas. This generally will also apply to Green card holders."
And that is exactly the reason why I have no intentions of ever getting a Green Card. Getting tracked down for the rest of my life because I lived in the US for a few years just doesn't sound all that great to me.
The exclusion for expats this tax year was $91,400. Nice incentive to spend 330 days per year abroad.
This sounds like bullshit to me. California is hard up for cash and is scraping the barrel. You're selling a product to them which is leads and since Cali hasn't passed the silly affiliate taxes yet I don't see them being able to collect taxes on this product sold over the internet. Though it sounds like you're running as a sole proprietorship or just under your name in which case they'll 1099 you which is typically for contract or consultant employees. If you were a corporation and provided invoices to them I believe you wouldn't need to be sent a 1099 and you'd have a stronger case that this isn't whats happening.
Of course you should talk to a professional and not listen to retards on a forum though.
Of course you should talk to a professional and not listen to retards on a forum though.
This is just amazing I can't even believe I am even reading this. How can this be happening in the our country, just rediculous. Although it is Cali so I guess if something like this were to happen it would be there. Only other thing I can say is LEARN TO SWIM Cali!
That's doubtful. The multimedia bussiness is more inline for the TV, movie and music industry.
I called the LA city of finance last year to figure out which category I belong to and they said all marketing, consulting and also web design professions would fall under the professions and occupations category.
paying taxes mean you are making money.
yeah cali sucks, but isn't it better to pay taxes from making money than not paying taxes from making $ 0?
of course you can skirt the law, skimp or whatever but do you really want to have the IRS crawl up your ass and have a look around?
yeah cali sucks, but isn't it better to pay taxes from making money than not paying taxes from making $ 0?
of course you can skirt the law, skimp or whatever but do you really want to have the IRS crawl up your ass and have a look around?
I guess I'd expect a CPA to know that when you get a 1099 from a state other then yours you have to look up tax codes of that state to know how to do the taxes properly, not wait until a notice comes in the mail from California reminding them. They don't have to know everything, but they should know enough to know when they need to look something up. And do it before a notice from the state comes to point it out.
If the notice hadn't come he would have been paying a CPA to do his taxes incorrectly. So the question is, do you expect a CPA you hire to be able to do your taxes correctly? I do.
Another laughable thing about this is if you did your taxes using TurboTax it would catch this rather common business tax issue.
Just to let people know, this isn't just a California law or something. This same law applies to most states....
Have you ever heard of a tariff? Taxing a foreign agent that's making a profit by selling to your residents.
These taxes are a problem because of how business is done in an industry like this. Paying a tax to sell to California residents if you are in another state makes sense for a business with some sort of physical product. A business is willing to put up with it to make a profit it couldn't otherwise make. But when it's a business in California that isn't even selling something to California residents and has no actual benefit to being in California other then that's where the business owners/employees live it will force businesses out of the state and cause a problem.
I know when I look at my taxes I envision a future where I live in Florida and only do business with networks in a few states and those out of the US.
Have you ever heard of a tariff? Taxing a foreign agent that's making a profit by selling to your residents.
These taxes are a problem because of how business is done in an industry like this. Paying a tax to sell to California residents if you are in another state makes sense for a business with some sort of physical product. A business is willing to put up with it to make a profit it couldn't otherwise make. But when it's a business in California that isn't even selling something to California residents and has no actual benefit to being in California other then that's where the business owners/employees live it will force businesses out of the state and cause a problem.
I know when I look at my taxes I envision a future where I live in Florida and only do business with networks in a few states and those out of the US.
I absolutely can not wait for these fucking morons to tax each and every business so hard that they leave the state and the shit really hits the fan. This is what 25 years of out of control liberal bullshit gets you.
You don't need to move to Florida. Hopefully you're moving for other reasons.
If you live in Cali, work from home, and have a "virtual" company just set-up a Nevada corp (or anywhere other than Cali really). With a few minor precautions there is no way they can prove you "did business" in Cali. Actually you'll never even show up on their radar so it's a moot point.
If you are selling berries or some other physical product and have customers in Cali then at most you'll have to pay tax on this income, but if you're doing lead gen or aff marketing just don't work with any networks in Cali and don't worry about it.
Obviously if you have a "real" office with employees in Cali this won't work ...
The other thing is that your corp really shouldn't have any profits to tax anyway (which is what Cali taxes on). Your profits should be removed from your corp via payroll, dividends, etc. Essentially your net profits should be close to 0, which means Cali gets the same.
Having a corp in Cali is actually better than having one in somewhere like Texas for example, because some states like Texas make you pay a bullshit tax based on GROSS revenues and not profits. For example if you have a Texas corp and have revenues of 10 million and expenses of 10 million, technically you made no money. But you'd still have to pay a big fat tax bill to Texas. Total bullshit.
If you have an s corp or llc then obviously none of this matters because your entity has no profits or losses as everything passes through ...
Having a corp in Cali is actually better than having one in somewhere like Texas for example, because some states like Texas make you pay a bullshit tax based on GROSS revenues and not profits. For example if you have a Texas corp and have revenues of 10 million and expenses of 10 million, technically you made no money. But you'd still have to pay a big fat tax bill to Texas. Total bullshit.
If you have an s corp or llc then obviously none of this matters because your entity has no profits or losses as everything passes through ...
I know absolutely nothing about taxes in the USA but I always thought if something was cross-state taxes were constitutionally a federal affair?
