Anyone starting a new business should be aware of his or her federal tax responsibilities. Here are several things you should know if you plan on opening a new business this year. 1. First, you must decide what type of business entity you are going to establish. The type of business you open will determine…
Details
Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. Under Section 1031 of the IRC, however, if you reinvest the proceeds from the sale in similar property as part of a qualifying like-kind exchange, the tax code provides…
Details
Tim, who owns his own business, decided he wanted to take a two-week trip around the US. So he did–and was able to legally deduct every dime that he spent on his vacation. Here’s how he did it. 1. Make all your business appointments before you leave for your trip. Most people believe that they…
Details
Making Citizenship-Based Tax Reform “Easy” Heitor David Pinto wants to “make it easy” for Congress to move from citizenship-based taxation (CBT) to residence-based taxation (RBT). Pinto thinks CBT is “absurd.” And he aims to help Congress change it. Because of CBT’s complexity and because it’s a low priority for Congress, Pinto was concerned Congress might…
Details
• Flat dollar amount penalty • Percentage of income penalty • Household income • Modified adjusted gross income • Tax filing threshold The penalty for not having minimum essential health insurance for yourself and other members of your tax family takes a substantial jump in 2015. For 2014, the penalty was the greater of the…
Details
The National Football League’s central office will become a taxable entity, ending its tax-exempt status in a move with minimal financial effect and significant symbolic value. “Every dollar of income generated through television rights fees, licensing agreements, sponsorships, ticket sales, and other means is earned by the 32 clubs and is taxable there,” Goodell wrote.…
Details
Over the years I have worked with many families with special needs kids. I am amazed at their strength and the resilience of their spirit. The term “Special Needs” now encompasses more than what it used to and rightly so. It is truly phenomenal that studies show that the number of children diagnosed with autism,…
Details
Here we go again! It is campaign season and some candidates just cannot wait to say how they are going to penalize business. Hillary Clinton is proposing a new scheme where businesses that manufactured things will be tax differently than businesses that are “trading” items. I am not exactly sure what this means but it…
Details
Do you find yourself answering questions from the same clients who just keep calling and e-mailing, calling and e-mailing? Over and over, with questions you either answered three times already or that anybody with common sense could see are unrelated to their tax situation? Pains in the … “Depending on the relationship: Some I tell…
Details
Internal Revenue Service Commissioner John Koskinen has sent a message of thanks to tax professionals and their partners for managing to get through a “challenging” tax season. “As the April 15 deadline approaches, I want to thank all the tax professionals and other partners who have helped to make a challenging filing season run as…
Details