Lanman Rayne Library

Can I (or Should I) Put My House Into an LLC?

The easy answer to this question is from a legal perspective, yes, it is possible to put your primary residence into a Limited Liability Company (LLC).  But, there are reasons why this might not be the right thing for you. Below are some issues to consider when thinking about transferring ownership of your primary residence to an LLC.           


Special Needs Trust FAQ

A special needs trust (sometimes called a Supplemental Needs Trust) is a trust created for the benefit of an individual who receives needs-based public benefits. The purpose of a special needs trust is to maximize available resources without causing the individual to lose eligibility for public benefits.

Estate Planning for Blended Families

Today, blended families are more common than ever. For a blended family, planning for the future can be complicated, as ex-spouses, stepchildren, and children with different parents need to be considered. All of these relationships are treated differently under the Maine intestacy laws, the laws that govern how property is distributed from someone’s estate if that person has no will in place.

Five Things to Know About an IRS Audit

An IRS audit is an examination of financial information. The goal of an audit is to make sure that this financial information is being accurately and correctly reported according to tax law. Being under this type of scrutiny can be stressful. If you think you might be subject to an IRS audit, here are 5 things to know that could make the process go a little more smoothly:

Tax Consequences of Crowdfunding

In recent years, crowdfunding to raise capital on sites like Indiegogo or GoFundMe has become a popular way to raise funds for creative, entrepreneurial, or even charitable endeavors. These funds are being raised to help new businesses get up and running, to launch creative projects, and even to fund special needs trusts. Often, the businesses or individuals setting up these crowdfunding campaigns put little or no thought into the tax ramifications of taking in funds this way.

Independent Contractor or Employee?

Why does it matter? It mostly boils down to money. Employers must pay half of the payroll tax (Social Security and Medicare, also known as FICA taxes) on all wages that they pay to employees. Contractors, on the other hand, are responsible for paying 100% of their own payroll taxes (in the case of a contractor these taxes are referred to as self-employment tax). This tax difference can be a big deal for an employer who is looking to hire.

What is Tax Basis and Why Does It Matter?

A member’s tax basis in his LLC interest plays a huge role in determining the tax consequences of a distribution made to that member. That means, any time cash is paid out to a member (and sometimes even when it’s not), that member’s basis in the LLC is going to determine how that distribution is taxed. For these purposes, an LLC and a Partnership are taxed in the same manner, and the description and calculations described below apply to LLCs and their members as well as Partnerships and their partners.

LLC Tax Trap: Deemed Distributions

Generally, when members of a Limited Liability Company (LLC) transfer assets into the LLC in exchange for membership, no gain or loss is recognized for tax purposes. But this can become more complicated when debt or liability is involved.

Business Mileage and Your Tax Return

If you are a business owner and you use your personal vehicle for business, you may be eligible to deduct some car-related expenses on your tax return. This is a huge benefit for a lot of small business owners. So what, exactly, can you deduct?

What You Need to Know About Obamacare and Your 2015 Taxes

Will you have to pay an Obamacare tax penalty?

The Affordable Care Act (ACA, also know as Obamacare) mandates that all individuals in the U.S. must have health insurance unless they qualify for an exemption. If you don’t qualify for an exemption and you went without health insurance for 3 months or more in 2015, you’ll have to pay a penalty on your 2015 tax return.

How much will you have to pay?