Pay Attention Foreigners Buying US Property

Foreign Investment in Real Property Tax Act (FIRPTA) The Foreign Investment in Real Property Tax Act (FIRPTA) requires a tax of 15% of the amount realized on the disposition of all US real property. A buyer of U.S. real property interest from a foreign investor is considered the withholding agent of the IRS and is obligated to […]

Foreign Gift and Inheritance Also Count In The US

Foreign Gifts and Inheritances, IRS Form 3520 If you received gifts or inheritances in excess of $100,000 during 2016; make sure to report it on the form 3520 “Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts” to the IRS. This is due at the same time as your personal income […]

In 2017 Gift and Estate Tax Might Go Away

Gift Tax The life­time gift exclusion is $5,450,000. Any amount in excess of this threshold is taxed at 40%. The annual gift exclusion remains $14,000 per person per year. Inheritance Tax/Estate Tax and Planning The life­time estate exclusion is $5,450,000. Any amount in excess of this threshold is taxed at 40%. The estate portability, by […]

Business Valuation

If you know the actual fair market value of your business, then you are in possession of a very valuable tool. Some pundits go so far as to say that business valuation is one of the most important concepts in finance. While that might be debatable, there is no question that every business owner should […]

Plan to Best Defer or Acceleration

Defer/Accelerate Income   Most small businesses utilize cash basis of accounting for their taxes, may defer their current billing and collection efforts to future year, if they believe to have less income or predict the tax rates will be lower next year, and their conduct doesn’t violate any laws. Conversely, if they believe they will have more […]

Benefits to Accelerated Expensing of Assets

First Year Bonus Depreciation The bonus depreciation expense for property acquired and placed in service during 2016 has been extended through 2019. The amount of deprecation is 50 percent for cost of property placed in service during the year, in addition to regular deprecation.   Section 179 Depreciation Under IRC Section 179, now permanent and indexed […]

Merger and Acquisition (M&A) as a growth strategy

M&A is a tool that is being used more and more by companies as a way to ramp up growth. An acquiring company hopes that the merged combination of products, people, and pipelines will grow the business more quickly than it would grow organically. Credit being as cheap as it has been in recent years, […]

Causion to Litigations In Same Sex Marriages

Recognition of Same ­Sex Marriage   In United States v. Windsor, (2013) (Docket No. 12­307), the Supreme Court held that section 3 of the Defense of Marriage Act (DOMA) is unconstitutional because it violates the principles of equal protection of the Fourteenth Amendment to the US Constitution. It concluded that this section“undermines both the public […]

Not All of The Energy Credits Will Continue

Residential Energy Efficient Property Credit (Section 25D)   A credit of 30 percent of the expenditures made by a taxpayer during the taxable year for: qualified solar electric systems; qualified solar water heaters; qualified fuel cell property; qualified small wind energy property; and qualified geothermal heat pumps. The credit for expenditures made for qualified fuel […]

Gambling and Taxes

Do you like to play the slots a couple of times a year in Black Hawk? Do you go to Vegas a few times a year to play some serious Black Jack? Or are you one of the much-smaller groups of people who consider themselves to be professional gamblers?                 Whatever your approach to gambling, […]