Posted on August 17, 2024

INVOLUNTARY CONVERSIONS OF PROPERTY

Here we are discussing gains that are not taxable. Normally, if there is a gain, we pay tax on the gain and if there is a loss, we get to deduct the loss but there are some gains that are not taxable …

Posted on August 4, 2024

PROPERTY TRANSACTIONS - TAXABLE DISPOSITIONS

For certain type of transactions, gain may be realized but not recognized.

Amount realized- NBV=Gain (if positive)--> Pay Tax

Amount realized-NBV=Loss (if negative)--> May be deductible

Gains …

Posted on July 2, 2024

TAX PLANNING STRATEGIES- ESTIMATED PAYMENTS

As a Tax Professional, we usually look at the following three strategies for tax planning purposes:

Timing, Income-Shifting and Estimated Payments

We have already discussed the first two …

Posted on June 25, 2024

INCOME-SHIFTING STRATEGIES

Income-shifting, also known as income splitting, is a tax planning technique that transfers income from high to low bracket taxpayers. It is also used to reduce the overall tax burden by moving income from a high …

Posted on June 22, 2024

CORPORATIONS' TAX PLANNING STRATEGIES

Corporations, like other taxable entities, often seek to minmize the tax paid to governments in order to retain cash for:

Internal investment Shareholder payouts Debt payments Other purposes- such as …

Posted on June 9, 2024

THE BUSINESS OWNER

The definition of a small business is a type of business entity that is owned and run by one individual (the proprietor) and in which there is no legal distinction between the owner & the business. The owner receives all …

Posted on June 8, 2024

TAXING SYSTEMS

There are two types of taxing systems, generally followed -

WORLDWIDE TAX SYSTEM

The U.S. Tax System is classified as a worldwide tax system because its citizens and residents are generally subject to tax on their worldwide …

Posted on June 4, 2024

NOLs

Net Operating Losses - The result when a company's allowable deductions exceed its taxable income within a tax period. If your business operates and looses money, then that net operating loss can be carried back for a TAX REFUND, by …

Posted on May 27, 2024

Filing a corporate consolidated return is a privilege afforded to affiliated groups of corporations. It is possible only if all the affiliated corporations consent to such a filing.

AFFILIATED GROUP DEFINED WITH MEMBERSHIP REQUIREMENTS

An …

Posted on May 26, 2024

SHAREHOLDER LOANS

There could be different kinds of transactions between a corporation and its shareholders but mainly are classified in the following two categories:

Equity Transactions - which mainly comprises of the following:

Any …

Posted on May 21, 2024

Distributions from corporations to shareholders are taxable to the shareholders, if those distributions are classified as dividends:

DIVIDENDS , AS DEFINED BY THE IRC , IT'S SOURCES AND TAX EFFECTS TO SHAREHOLDERS

A dividend is a …

Posted on May 19, 2024

CORPORATION TAX CONSEQUENCES

Formation of a C Corporation is not taxable if the requirements of IRC Section 351 are met.

No gain or loss is recognized by the corporation in exchange of stock for property in the following situations:

Format…

Posted on May 16, 2024

We are all waiting on our tax refunds !! If you paid more through the year than you owe in tax, you may get a refund. Even if you didn't pay tax, you may still get a refund if you qualify for a refundable credit.

Refund Status if Return is …

Posted on May 13, 2024

Navigating tax responsibilities can be daunting for small business owners. Understanding and managing your tax obligations effectively is crucial for the success and sustainability of your enterprise. This comprehensive guide is designed …

Posted on May 11, 2024

Tax season often brings a sense of urgency and, sometimes, confusion. Every taxpayer's goal is to maximize returns and minimize liabilities. Understanding individual tax deduction strategies can lead to significant financial benefits. …