Archive: taxes

  • Clear Filters

Is Your Injury Settlement Payment Taxable?

One of the most frequently asked questions tax professionals receive is “Are injury settlement payments are taxable?” According to Code Sec. 104(a)(2), payments received as compensation for a personal physical injury or physical sickness are not taxable. The key term here is physical. Payments for emotional distress or other reasons that do not stem from […]
July 25, 2017

2016 Tax Return Due Date Changes: Start Planning Now

Are you aware of the 2016 tax return due date changes for certain federal and state income tax returns? The changes will have the greatest impact on flow-through entities including S corporations and partnerships, as well as C corporations. Individual income tax return due dates are not impacted. The legislation signed into law by President […]
November 11, 2016

Transferee Liability – A Win for the Taxpayers

“Knowledge itself is power,” in its various forms, is a familiar phrase attributed to Sir Francis Bacon. However, in some cases, a lack of knowledge can be just as powerful. On June 13, 2016, the Tax Court again ruled that shareholders were not liable under a transferee liability theory for the taxes generated from a […]
August 11, 2016

Tax Issues for Newlyweds

Hopefully you’ve seen our recent blog posts related to the tax aspects of divorce. As a bit of a break this summer, I thought I would share thoughts from the IRS on How a Summer Wedding Can Affect Your Taxes, from their website. The article touches on some of the basic changes that affect a taxpayer’s return. […]
July 28, 2016

Thoughtful Divorce Planning Can Avoid $500,000 of Taxable Gain

Pat and Jordan were married and lived in the same jointly owned home for 9 years. After their divorce, Jordan lived in the home with their three children. Now, seven years after the divorce, Jordan is selling the house and both parties are asking their respective CPAs how much of the gain may be excluded from […]
July 13, 2016

Will the New Overtime Rules Impact Your Bottom Line?

Effective December 1, 2016, business owners must provide overtime pay to salaried employees who earn less than $913 per week or $47,476 per year. This is a substantial increase to the Department of Labor’s Fair Labor Standard Act (FLSA)’s previous salary level of $455 per week or $23,660 annually. While the FLSA ensures minimum wage […]
July 12, 2016

But We Agreed, It Was Alimony – Part 2

Sound familiar? The payments in post-separation Years One, Two, and Three were made according to the separation agreement; they were made in cash to the former spouse. The agreement indicated that the payments were alimony and the parties expected that they would be deductible by the payor and taxed to the recipient. The CPA preparing […]
May 20, 2016

M&A Tax Shop Talk – “F reorganization” Part II

Still thinking about selling your business? Do you have the proper techniques and structures in place? Generally, one of the most powerful planning techniques to structure a tax efficient sales transaction of your business is the installment sale reporting method under IRC Section 453. However, there are some complexities and inherit limitations that requires an […]
May 11, 2016

M&A Tax Shop Talk – “F reorganization”

The “F reorganization” has become the tax planning structuring technique of choice in today’s middle market M&A world. So, what does it mean to you as a seller? First, F reorganization is only applicable in the context of corporations not LLCs. Second, in the middle market M&A world, which is still controlled by S corporation’s […]
April 27, 2016

2015 Hospitality Industry Businesses; How Much Can You Save?

2015 Tax Savings Strategies for Restaurants and Hotels With 2015 complete, many restaurant and hotel owners should start thinking about preparing their upcoming tax returns. As a restaurant or hotel owner, there are multiple items to consider in order to reduce tax liabilities. Depreciation on Fixed Asset or Leasehold Improvement Additions Restaurant and hotel owners […]
January 21, 2016