Foreign Earned Income Exclusion (FEIE) vs. Foreign Tax Credit (FTC)
Jessica I. Marschall, CPA, ISA AM March 19th, 2025 U.S. citizens and resident aliens who earn income abroad may be able to exclude foreign income or claim foreign tax credits to reduce double taxation. The Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) serve different purposes and can sometimes be strategically used […]
Read MoreWhen the IRS Reclassifies Your Business as a Hobby: The Costly Consequences of Retroactive Tax Adjustments
By Jessica I. Marschall, CPA, ISA AM March 16th, 2025 The distinction between a business and a hobby under IRS rules can have profound financial implications. Many taxpayers assume that if they operate an activity with revenue, they qualify as a business. However, the IRS has the authority to retroactively reclassify an activity as a […]
Read MoreUnderstanding the Distribution of the U.S. Tax Burden: Federal Income Taxes vs. Payroll Taxes
Jessica I. Marschall, CPA March 12th, 2025 One of the most widely cited statistics in tax policy debates is that a relatively small percentage of high-income earners pay the vast majority of federal income taxes. While this is true, it is essential to recognize that the federal income tax system is highly progressive, meaning that […]
Read MoreUnderstanding Section 351: Asset Transfers and Requirements for Tax-Free Treatment
By Jessica I. Marschall, CPA February 9th, 2025 Section 351 of the Internal Revenue Code (IRC) provides a tax benefit for certain transfers of property to a corporation. When property is transferred to a corporation in exchange for stock, Section 351 allows the transaction to be treated as tax-free under specific conditions. This article will […]
Read MoreThe MLM Mirage: Financial Realities for Women and the Stay-at-Home Mom Trap
By Jessica I. Marschall, CPA February 9th, 2025 For 25 years, I have worked as a CPA, reviewing tax returns and financial statements for clients in a wide range of industries. One recurring theme I have noticed is the financial failure of Multi-Level Marketing (MLM) participants—particularly among women, including stay-at-home moms. While MLMs promise financial […]
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