Our tax laws include start-up rules that limit the ability to deduct certain business and investment expenses. For business owners and investors with other sources of income, this can result in funds being sent to the IRS to pay taxes at a time when the capital is needed to fund the business or investment growth.… Continue reading Tax Planning for the Start-up Limitation Rules
Tax Articles
How to Record Operating Lease vs Capital Lease in Quickbooks
Are you renting a property or equipment for your business? Accounting for a lease can be tricky given the recent […]
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Loan to an S Corporation to Allow Tax Loss
Tax basis can limit a shareholder’s loss from an S corporation. If an S corporation has a tax loss but the shareholder doesn’t have sufficient tax basis to take the loss, the shareholder will typically have to loan money to the S corporation. This tax debt basis makes the loss allowable in the current year.… Continue reading Loan to an S Corporation to Allow Tax Loss
Tax on Payment for Being Born With Medical Condition
We can do some amazing things given the state of our science and technology. These advances lead to some interesting tax questions. The IRS recently addressed such a question in PLR 201950004. It considers whether damages paid by a fertility clinic for failing to perform a genetic test are excluded from the recipient’s income as… Continue reading Tax on Payment for Being Born With Medical Condition
How to Use Quickbooks for Real Estate: The Basics
Quickbooks is a convenient tool for real estate businesses. Since there are many types of businesses in real estate, your […]
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Reliance on an Attorney as a Defense to a Tax Crime
Reliance on advice of a tax attorney or CPA is a defense to some tax crimes. But what if a taxpayer merely consults with a tax attorney or CPA and does not actually rely on their advice? The recent United States v. Wright, No. 18-4087 (6th Cir. 2019) case addresses whether this defense is available… Continue reading Reliance on an Attorney as a Defense to a Tax Crime
What is the Like-Kind Exchange Form 8824 All About?
Are you selling real property with plans of buying a new one of the same kind? If so, you may […]
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When an IRS Agent Makes a Misrepresentation
IRS agents interact with taxpayers. In doing so, they make misrepresentations as any other human does. Some are unintentional and some are intentional. But what is a taxpayer to do if the IRS agent makes a misstatement and it negatively impacts the taxpayer? The McRae v. Commissioner, T.C. Memo. 2019-163, case touches on this issue.… Continue reading When an IRS Agent Makes a Misrepresentation
Sale of Trailers Doesn’t Qualify for Installment Sale Treatment
If you buy, subdivide and sell real estate, can you seller-finance the sales and report the gain over a long period of time? The answer is generally yes, but advance planning is needed. The court addresses this in Joyner Family Limited Partnership v. Commissioner, T.C. Memo. 2019-159. Facts & Procedural History The taxpayers purchased land… Continue reading Sale of Trailers Doesn’t Qualify for Installment Sale Treatment
Form 5471: What Is It and Do You Need to File One?
Are you a U.S. shareholder of a foreign corporation? If you have been diligently filing all your returns and disclosures, […]
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