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Tax Articles

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 variety of business tax deductions and credits were created, extended and expanded by the American…


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 and regrouping, as required under Code Sec. 469 regulations, be disclosed on the taxpayer’s return.…


*****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 owner. If you thought your taxes were high now you’re going to be in for…


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 established as part of the health care reform bill. The program will provide tax credits…


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? Answer: The IRS explains in the General Instructions for Forms 1099, 1098, 3921, 3922, 5498,…


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 health insurance, which costs about $4,800 per year. Her friend told her that if the…


Options Traders and taxes

The 1099-INT and 1099-DIV reported to the Internal Revenue Service details how much you received in interest and dividends through your account, while form 1099-B reported the total proceeds of your sales of stocks and bonds during the year. The amounts shown as interest and dividends should have tallied with your own records. But if…