Category - Tax

Asset or equity sale? How about a little of both via Section 338(h)(10) election?

June 11, 2018

In a business sale transaction, the buyer typically desires to buy assets and the seller usually wants to sell equity.  Section 338(h)(10) of the tax code provides a win/win opportunity to both parties (when applicable). There are tax and legal reasons for the customary situation where the seller of a business wants to structure the same […]

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The history and constitutionality of our federal tax system (by Jared Chatterton)

December 19, 2017

Here is the latest submission from my friend and accountant colleague, Jared Chatterton. As you will see, Jared is a nice blend of wisdom, expertise, and humor. Enjoy: Every tax season I encounter a random progressive buckaroo who strolls in to my office and with a confident drawl says – “I’m going to have you […]

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Tax reform update: postcard tax filings and sunset legislation

December 18, 2017

With the expected vote on and passage of the Tax Cuts and Jobs Act of 2017 (a/k/a TCJA and Trump Tax Cuts) later this week, perhaps it is time to review how closely the end-result matches some of the lofty promises made earlier in the process. By the way, I consider myself very much an “independent”

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Should you get your own captive insurance company?

December 12, 2017

Captive insurance has been around for a while, but micro-captive insurance structures are more recent in their invention and application. As with any other financial planning vehicle generally, and insurance product in particular, whether or not something is right in a certain circumstance greatly depends on said circumstance. In other words, despite what a very

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Tax reform bill passes Senate. One last hurdle remains

December 2, 2017

Early Saturday morning, the Senate Republicans pushed through their version of the tax reform bill by the closest of margins–i.e., a 51-49 vote. Job done? Nope. Now the Republican leaders from the House of Representatives and the Senate must get together to reconcile the differences between the bills each chamber of the legislature passed. Below

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Tax reform update–what is in proposed in The Tax Cuts and Jobs Act?

November 3, 2017

Who chooses the names of proposed legislation? In this instance, that person (or that group of folks) did a great job with the name. Who would not be in favor of something called the Tax Cuts and Jobs Act? I mean really, how would you like to be one of those legislators who votes against […]

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LLC, Corporation and Partnership–legal and tax classifications

October 27, 2017

I was reading an excellent article this morning about why it usually is a bad idea to own rental properties in an S-Corporation. The article is well-written in most respects and does a good job walking through basic legal, accounting and tax planning situations. The general premise is sound–namely, that because of the application of tax […]

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New rules for partnership audits are effective January 1, 2018

October 26, 2017

The way in which the IRS audits partnerships will change at the end of 2017. Per the Bipartisan Budget Act of 2015 (great name, right?), on January 1, 2018 the landscape relating to partnership audits by the Internal Revenue Service will have shifted dramatically. Why should you care? Great question. If you are directly or […]

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Are distributions from a trust taxable?

October 19, 2017

Maybe. It depends. Taxable to who or what? You see, this is one of those simple questions that often does not have a simple answer. Let’s distinguish first between types of trusts, as this can make a big difference when it comes to answering the taxation of distribution question. Revocable Trust Distributions A revocable trust […]

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The $500 billion word–tax reform political games begin

September 29, 2017

Can one word make that much difference? Yes, in the context of tax reform and the forecasted economic effect of the same, one word might equate to a difference of $500 billion. First, concerning the picture which accompanies this post, please take it with the intended humor with which it is used. Regardless of my […]

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