A Deferred Sales Trust is a powerful tax-deferral tool if you are considering the sale of a business, corporation, or real estate. Sales of highly appreciated assets of this type will most likely incur capital gains taxes associated with a sale, but a Deferred Sales Trust gives investors the option to defer capital gains when […]
Credit Card Charges All charges made to your credit cards before year end to pay business expenses may be deducted as current year expenses, although the payments may be made in the following year. In addition, all checks written and dated in current year, but cashed in the future regarding current year tax related […]
Beneficiaries Acquiring Property From Descendants As our society continues to age we are new seeing estates beginning to distribute their assets. On Tax Form 8971, you will find the list of these distributions and this form could be delivered at any point during the year. Please don’t forget to forward this to your Tax Preparer!!! […]
S Corporation or Limited Liability Company (LLC) losses The amount of losses from an S corporation or an LLC you can deduct is limited to your basis (your capital adjusted for earnings, drawls, etc.) in each entity. Tax Tip: The above mentioned losses are temporarily suspended and not deductible.
Reasonable Compensation for Shareholders who work for the Corporation When a stockholder works for her/his own corporation, she or must be on the company payroll and paid a reasonable amount of salary for the services performed. The Government Accountability Office has reported many employment tax abuses with respect to S corporation shareholders who worked for the […]
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 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 […]
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 […]