Tax Form 8971 – If Missed Could Cost You BIG!

by Susan Balcomb | Dec 15, 2020 | Tax Planning

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...

Defer tax with a Section 1031 exchange, but new limits apply this year

by Susan Balcomb | Apr 16, 2020 | Tax Planning

Normally when appreciated business assets such as real estate are sold, tax is owed on the appreciation. But there’s a way to defer this tax: a Section 1031 “like kind” exchange. However, the Tax Cuts and Jobs Act (TCJA) reduces the types of property eligible for this...

How entity type affects tax planning for owner-employees

by Susan Balcomb | Feb 19, 2020 | Tax Planning

Come tax time, owner-employees face a variety of distinctive tax planning challenges, depending on whether their business is structured as a partnership, limited liability company (LLC), or corporation. Partnerships and LLCs If you’re a partner in a partnership or a...

Court rules that real estate was held for investment

by Susan Balcomb | Mar 19, 2019 | Tax Planning

Court rules that real estate was held for investment. A custom home developer purchased undeveloped land through several single-member LLCs. He planned to develop the land, including making payments for permits. However, plans were stalled due to a lack of credit and...

How to reduce the tax risk of using independent contractors

by Susan Balcomb | Oct 27, 2018 | Tax Planning

Classifying a worker as an independent contractor frees a business from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income...