Tax planning critical when buying a business

If you acquire a company, your to-do list will be long, which means you can’t devote all of your time to the deal’s potential tax implications. However, if you neglect tax issues during the negotiation process, the negative consequences can be serious. To improve the...

Not All Losses Are Deductible Right Away

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...

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....

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...