Partnerships: Dissolution and/or Conversion to Single Member LLC
December 26, 2023 Partnership Dissolution When a partnership dissolves, it means that the business relationship among the partners comes to an end, and the assets and liabilities of the partnership need to be settled. In the context of a partnership, the capital accounts of each partner represent their ownership interest in the business. If some […]
Read MoreNavigating the IRS: Start-Up Expense Allowance for Small Businesses
Introduction: Starting a small business is an exciting venture that often comes with various costs and expenditures. To assist entrepreneurs in the initial stages of business development, the Internal Revenue Service (IRS) offers allowances for start-up expenses. Understanding and properly utilizing these allowances can significantly benefit small businesses, providing them with the financial flexibility needed […]
Read MoreIRS “Dirty Dozen” Tax Schemes
November 17th, 2023 The “Dirty Dozen” is an annual list released by the Internal Revenue Service (IRS) in the United States that highlights common tax scams and schemes that taxpayers may encounter. The list is meant to raise awareness and help individuals and businesses protect themselves against fraudulent activities. Keep in mind that the specifics […]
Read MoreWhat is Carried Interest?
What is Carried Interest? October 2023 Carried interest, often abbreviated as “carry,” is a financial arrangement commonly used in the private equity and venture capital industries, as well as in some hedge funds and real estate investments. It represents a share of the profits that investment professionals, such as fund managers or general partners, receive […]
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What is a Tax Short Year?
A short tax year is a tax period that covers less than 12 months. This can happen for various reasons, such as when a business is established or terminated in the middle of a calendar year, when a taxpayer changes their accounting period, or when there are other circumstances that result in a tax period […]
Read MoreMarried Filing Joint or Separately?
Filing your taxes as “Married Filing Separately” (MFS) is generally less common than filing jointly for married couples because it often results in a higher tax liability and limits access to certain tax benefits. However, there are some situations where filing separately might make sense. Here are some reasons why you might consider filing MFS: […]
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Estimated Tax Penalty
The IRS (Internal Revenue Service) estimated tax underpayment penalty, also known as the underpayment penalty or the estimated tax penalty, is a penalty imposed on taxpayers who do not pay enough in estimated taxes throughout the year. Estimated taxes are payments made by individuals, self-employed individuals, and businesses to cover their tax liability when they […]
Read MoreThe Dreaded Depreciation Recapture
Depreciation recapture is a tax concept related to the sale of a rental property that has been depreciated for tax purposes. Depreciation is an accounting method that allows property owners to deduct a portion of the property’s cost as an expense over its useful life, which helps to offset taxable income. However, when the property […]
Read MoreDealer vs Investor
Article: Dealer vs Investor From the perspective of the Internal Revenue Service (IRS) in the United States, the distinction between a dealer and an investor is important for tax purposes, particularly in the context of buying and selling securities, real estate, or other assets. The categorization as a dealer or an investor can have significant […]
Read MoreTax Incentives for Deconstruction and Personal Property Donations
Article: Tax Incentives for Deconstruction and Personal Property Donations Current tax law allows individuals to deduct the Fair Market Value of non-monetary charitable contributions. Materials salvaged from a building structure as well as personal property donated to a nonprofit 501(c)(3) or government entity like schools, colleges or parks and recreation systems, may qualify to be […]
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