There are two types of interest in a partnership: Capital Interest and Profits Interest. Both Capital Interest and Profit Interest are determined based on the contribution of property to the partnership and or services performed for the partnership. The Tax Court has described a Capital Interest is any interest that would entitle the holder to […]
Read More»
Posted in:Business Tax ArticlesPartnership or LLC Distributions may be taxable to the partners or LLC members. Distribution of partnership assets can be done as either current distribution or liquidating distribution. A current distribution is when a partnership makes a distribution to the partner(s). The receiving partner’s capital interest is retained fully or partially (IRC Sec. 761(d)). Even if the distribution reduces partner’s […]
Read More»
Posted in:Business Tax ArticlesDisclaimer: This article is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Choosing the best and correct business structure is vital key component to starting a new business or office. This article will address some formation and legal issues that businesses encounter daily. Hopefully […]
Read More»
Posted in:Business Tax ArticlesHaving access to reliable NJ/NYC accounting CPA tax services is important for businesses of any size in the New York/New Jersey area. But some businesses may not spend as much time as they should in choosing the accounting and tax services firm for their company. Often the business owners just select the “low cost provider” […]
Read More»
Posted in:Business Tax ArticlesA taxpayer who trades securities, reports his/her trades on schedule D of form 1040. He/she is subject to the $3,000 annual limitation that applies to net realized capital losses. Also, securities are subject to the Wash Sales rules (in a nut-shell; loses will not be recognized for tax purposes if you sell a security at […]
Read More»
Posted in:Business Tax ArticlesIf you have a small business like a sole proprietorship or an independent contractor, or you operate as Single Member LLC, you generally would consider yourself to be a self-employed. For tax purposes, you must file IRS Schedule C, Profit or Loss From Business or Schedule C-EZ, Net Profit From Business with your individual income […]
Read More»
Posted in:Business Tax ArticlesMany business owners are curious and interested to know about different ways to save money on taxes. This article will introduce you to a legal way of reducing businesses or corporate taxable income by paying your minor children. The payments to minor children have to be reasonable. The minor child needs to be compensated for the services […]
Read More»
Posted in:Business Tax ArticlesThe corporation does not recognize gain when it distributes cash to its shareholders. Also when a shareholder in exchange for cash, redeems a corporation stock, the corporation recognizes no gain. (Sec. 311(a)). On the other hand, if a corporation distributes property in connection to stock redemption, this may result in corporate-level capital gain and/or ordinary income. […]
Read More»
Posted in:Business Tax ArticlesIf you were thinking of getting additional office help and wanted to hire someone on a part-time of full-time basis you need to understand the difference between employees and independent contractors. There is a major difference between employees and independent contractors when it comes to how much tax you as an employer has to pay and withhold […]
Read More»
Posted in:Business Tax ArticlesReligious organization can provide to clergy ministers non-taxable benefits referred to as parsonage allowance. It’s done as part of total compensation paid to the minister. How does this work? Religious organization can provide to a minister with rent-free furnished apartment or housing that is owned by the religious organization. Religious organization also can pay the […]
Read More»
Posted in:Business Tax ArticlesGenerally, you cannot deduct amounts that you approximate or estimate. You should keep proper records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered Proper. This is because written evidence is more reliable than oral evidence alone. However, […]
Read More»
Posted in:Business Tax ArticlesThis material was written and prepared by TaxBizPro, LLC © 2009 You have a great idea, you are excited and now you want to start your business. So you are asking yourself, where do I begin? First you need to understand that in any business you need to have a plan and a good tax […]
Read More»
Posted in:Business Tax ArticlesIRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.
