Providing Sec. 132 Fringe Benefits to S Corporation Employees
Article:
S corporations can offer employees the same fringe benefits as other business entities; however, so-called 2% shareholders are treated as partners for fringe benefit purposes. Work related fringe benefits are an exception.
Published on November 30, 2012
Contemporaneous Documentation of Charitable Contributions
Article:
Earlier this year, the Tax Court highlighted how an apparently slight oversight in documentation can upend the interdependent relationship between donee and donor.
Published on November 30, 2012
Measuring Insolvency Under Sec. 108
Article:
While determining if a taxpayer is bankrupt is straightforward, determining whether a taxpayer is insolvent can be tricky.
Published on November 30, 2012
Nonrefundable Milestone Fees Do Not Qualify as Success-Based
Article:
A business can expense 70% of “success-based fees,” meaning amounts that are contingent on the successful closing of a covered transaction. It is important to remember this safe-harbor election can apply to both sides of the transaction.
Published on November 30, 2012
Debt Discharge Under Sec. 108 Partnerships vs. S Corps.
Article:
As tax liability for COD income gives many taxpayers an unpleasant surprise in today’s economy, its tax treatment continues to be a focal point for tax professionals in tax planning and preparation.
Published on November 30, 2012
Prop. Regs. Provide Guidance on Meals and Entertainment Expenditures
Article:
Proposed regulations clarify the definition of a reimbursement or other expense allowance arrangement and provide guidance on the applicability of the Sec. 274(e)(3) exception under various circumstances including employer/employee, two-party, and multiparty arrangements.
Published on November 30, 2012
Is the Sale of Real Property Ordinary Income or Capital Gain
Article:
Determining whether a real estate sale produces ordinary income or capital gain is difficult and is potentially an issue that can cause a taxpayer to be liable for significantly higher taxes.
Published on November 30, 2012
Who Can or Must File a Form 1099-C
Article:
With taxpayers and businesses defaulting on credit and loans, tax advisers may consider whether their clients should issue a Form 1099-C for a bad debt.
Published on November 30, 2012
Crop Insurance Proceeds Appropriate Tax Planning Strategies
Article:
The severe drought experienced by much of the United States this year, especially in agricultural regions, is expected to produce a record number of crop insurance claims.
Published on November 30, 2012
Organizational and Startup Costs for Single-Member LLCs
Article:
Despite the widespread use of single-member LLCs, some confusion still exists regarding the tax treatment of the initial expenditures to form and operate this type of entity.
Published on November 30, 2012
Top 10 Steps of Succession Planning for a Privately Held Business
Article:
Succession planning for the privately held business results in an orderly transfer of the ownership and management of the business to the next generation in a tax-efficient manner.
Published on November 30, 2012
Advising Clients Amid Constitutional Challenges to the Defense of Marriage Act
Article:
Recent court decisions provide an opportunity and responsibility for tax practitioners to assist their clients in same-sex marriages with protecting their rights to federal and state tax refunds as well as providing additional advice regarding income and gift and estate tax planning in light of DOMA’s uncertain future.
Published on November 30, 2012
Receipt of Form 1099-C May Not Signal Taxable COD Income
Article:
It is up to the taxpayer and his or her advisers to correctly identify the appropriate year in which to recognize COD income based on the date it is clear the debt will not be repaid.
Published on November 30, 2012
Reporting Trust and Estate Distributions to Foreign Beneficiaries (Part I)
Article:
This article explains the procedures and tax compliance issues that fiduciaries face before domestic trust or estate distributions are paid or allocated to foreign beneficiaries.
Published on November 30, 2012
Inflation Adjustments for 2013
Article:
The IRS released its annual revenue procedure making inflation adjustments to the gift tax annual exclusion and other items for tax years beginning in 2013.
Published on November 30, 2012