What is an uncertain tax position?

As set forth in the current drafts, an uncertain tax position includes a federal income tax position for which the taxpayer has recorded a reserve in an audited financial statement. It also includes a position where no reserve is reported

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Special Tax Incentives for Small Businesses to Provide Health Care, Hire New Workers

Videos HIRE Act: English Small Business Health Care Tax Credit: English WASHINGTON — In recognition of National Small Business Week, the Internal Revenue Service encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. A

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Posted in Business Expense, Employee Business Expense, Health Insurance, Self Employ, Small Business, Sole Proprietor

HIRE – Depreciation and Section 179 Expense

HIRE and Section 179 Deduction - A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years.

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Posted in Deductible Expense, Depreciation

Grouping Passive Activities – IRS Disclosure Rules

As part of the IRS's continuing efforts to require greater disclosure of tax positions and strategies on returns, it recently released new, mandatory disclosure rules for grouping passive activities. Rev. Proc. 2010-13 for the first time mandates that passive-activity groupings

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Posted in Appeals & Audit Resolution, Asset Classification, Cost Segregation, Passive Activity, Rental Real Estate, Tax Deductible Expenses

*****S Corporations and Self Employment Tax

The American Jobs and Tax Loopholes Act, currently in Congress, would subject to Self Employment Taxes (FICA, FUTA, SUTA) all distributions from S Corporations which are "personal service" corporations. This is HUGE. This is not good for the small business

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Posted in Employment Tax, FICA, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation

Hedge Funds Buy Tax Whistle-Blower Claims

New York Times, Whistle-Blowers Become Investment Option for Hedge Funds, by David Kocieniewski: Hedge funds have found a new market to invest in: whistle-blowers. Informants who turn in tax cheats have to wait years to get their share of any

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Posted in Tax Whistle Blower

Therapeutic Discovery Tax Credit

The Treasury Department released new guidelines for applying for tax credits to fund promising new therapies, with small medical research firms eligible to receive up to $5 million each out of a $1 billion pie. The Therapeutic Discovery Credit was

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1099-S example involving multiple property owners

Question: Tax payer produced Form 1099-S from the sale of property she owned jointly with her brother. The Form 1099-S had the full amount reported to her and the brother did not receive a Form 1099-S. What should be done?

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Posted in 1031 Exchange, Capital Gain, Capital Loss, Passive Activity, Paying Taxes, Rental Real Estate, Self Employ, Small Business, Sole Proprietor, Tax Guidance & Preparation, Taxable Income, Uncertain Tax Position

Health Insurance Premiums: Tax implication for the self employed – example

A tax payer is the 100% owner/employee of an S corporation that she started in 2010. She only wants to take $2,000 in wages for the first year. In addition, she would like the S corporation to pay for her

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Posted in Personal Service Corporation, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Deductible Expenses, Tax Guidance & Preparation, Tax Problems & Requests

Net Operating Loss Carry Back (NOL)

The key to determining the optimal carry back period may be correctly calculating the minimum tax credit net operating loss. The American Recovery and Reinvestment Act of 2009 (ARRA) permits an eligible small business to elect to increase the net

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