An Argument Against Holding Real Estate in an S Corporation
As a CPA, it is crucial to understand the tax implications of different business structures for real estate holdings. One common mistake is placing real estate properties into an S Corporation (S Corp). Here are several compelling reasons why this should be avoided: 1. Taxation on Distributions When real estate is held in an S […]
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Business Assets: Section 1231, 1245, and 1250
Jessica I. Marschall, CPA, ISA AM January 23rd, 2024 Section 1231, Section 1245, and Section 1250 are provisions of the United States Internal Revenue Code that deal with the taxation of certain types of assets. What About Depreciation Recapture? Depreciation recapture under Section 1245 and Section 1250 refers to the process by which the IRS […]
Read MorePartnerships: 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 […]
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