What are the Tax Implications of an Involuntary Conversion?

Usually when when economists define a business transaction in a free market society it involves a willing buyer and a willing seller coming together on terms. More often than not however it seems to me that in a wide variety of transactions there is not a willing seller and in some cases not a willing…

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100 Percent Exclusion of Capital Gains From Certain §1202 Stock Transactions

A substantial benefit for those individuals who have formed small to mid-sized C corporations before the end of 2010. IRC §1202 has been previously used by taxpayers to exclude one half of the capital gain they realize when they sell qualifying §1202 stock at a gain. To qualify, the stock had to be acquired as an original issue directly from a C corporation with less…

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100% Bonus Depreciation – Revenue Procedure 2011-26

For those of you fortunate enough to have actually invested in your operations through the purchase of certain ‘qualified property’ last year you are going to want to read IRS Revenue Procedure 2011-26 which provides guidance on the new 100 percent bonus depreciation from the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of…

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Personal Service Corporations (PSC) – the Sub Chapter S Election and Wages/Employment Taxes

As I have blogged before a Personal Service Corporation can indeed elect Sub Chapter ‘S’ corporate status and be treated as a disregarded entity for income tax purposes.  This requires the filing of IRS form 1120-S, not IRS form 1120. However if you are successfully (ie profitably) operating a personal service corporation structured as a…

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Can’t Afford to Pay Your Taxes?

Many people are completely underestimating their tax liabilities this year.  It is absolutely incredible. So these are some of my suggestions for those of you in this position: Pay as much as possible now to minimize interest and penalties. Request an Offer in Compromise. Finance the full payment of your tax liability through a loan. The…

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Farm Income and Deductions – IRS Publication 225

Oh boy, another bankrupt independent farmer with questions.  Yes there are a few left but extinction is eminent with the exception perhaps of local co-ops. So please support the local people that care about food, even if you have to pay a little more.  Think of it as you contribution to society. Nevertheless if you…

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Colorado Revenue Dept. New Online Functionality

The Colorado Department of Revenue will unveil its new service called “Revenue Online” on April 25, 2011 at www.Colorado.gov/revenueonline.  With this new system taxpayers will be able to: · File an individual amended return online, regardless of whether the original return was filed electronically or on paper. · Submit the Colorado Power of Attorney (DR 0145)…

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The IRS Collection Process – Publications 594 and 1660

IRS Publication 594 (PDF), The IRS Collection Process IRS Publication 1660 (PDF), Collection Appeal Rights IRS Collection Actions include: * Filing a Notice of Federal Tax Lien. The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises. The federal tax lien arises automatically when you…

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Is that Gift taxable? Is IRS Form 709 Required?

If you give someone money or property during your life, you may be subject to the federal gift tax. Most gifts are not subject to the gift tax, but the IRS has put together the following eight tips to help you determine if your gift is taxable. Most gifts are not subject to the gift…

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The IRS Collection Process – Publications 594 and 1660

Publication 594 (PDF), The IRS Collection Process Publication 1660 (PDF), Collection Appeal Rights IRS Collection Actions include: Filing a Notice of Federal Tax Lien. The federal tax lien is a legal claim to your property, including property that you acquire after the lien arises. The federal tax lien arises automatically when you fail to pay the taxes you…

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