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Posted by: chollis
Curious about the Health Care Law’s effect on your federal tax liability? Call us to setup an appointment!
Concerning money (or property) distributed to Partners:
The partner’s basis is decreased (but never below zero) by the following items:
Posted by: chollis
If a partner’s share of partnership liabilities increases, or a partner’s individual liabilities increase because he or she assumes partnership liabilities, this increase is treated as a contribution of money by the partner to the partnership. However, a partner’s basis in a partnership is only increased by an increase in partnership liabilities that:
(1) create or increase the partnership’s basis in any of its assets, (2) gives rise to a current deduction to the partnership, or (3) is a nondeductible, noncapital ...
Continue Reading →Posted by: chollis
A deduction is not available for business gifts made in excess of $25 to a person during the tax year.
If a taxpayer gives a gift to a member of a customer’s family, the gift is generally considered an indirect gift to the customer. This rule does not apply if taxpayer has a bona fide, independent business connection with that family member and the gift is not intended for the customer’s eventual use.
If the taxpayer and the taxpayer’s spouse both give ...
Continue Reading →Posted by: chollis
Listed property is any of the following:
Beginning ...
Continue Reading →In calculating the Alternative Minimum Tax Income, the first step is to add certain adjustments to taxable income. These include:
Itemized deductions for charitable contributions and casualty and theft loss are not added back in when calculating the Alternative Minimum Tax Income.
Continue Reading →Posted by: chollis
An individual retirement account is a trust or custodial account set up in the United States for the exclusive benefit of a taxpayer or his beneficiaries. A taxpayer creates this account with a written document. The document must show that the account meets all of the following requirements:
Posted by: chollis
In the eyes of many small business owners, the corporate world is the realm of massive conglomerates such as Microsoft and General Motors. To be successful and hold the line financially, however, tax experts agree that even the smallest of businesses may benefit by incorporating.
An S corporation, as defined by the Internal Revenue Service, must be a domestic corporation that consists of no more than 100 “allowable shareholders” — including individuals, certain trusts and estates. It may not include partnerships, ...
Continue Reading →Posted by: chollis
Never accused of oversimplifying things, the IRS doesn’t break the tax year into four three-month quarters. The first quarter is three months (January 1 to March 31), but the second “quarter” is two months long (April 1 to May 31), the third is three months (June 1 to August 31) and the fourth covers the final four months of the year.
The installment payments are due on April 15, June 15, September 15 and January 15 ...
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