TAX CODE HAS NOT CAUSED CORPORATE CHANGE

Tax code has not caused corporate change. One of the provisions of a change to the tax code, was to increase taxes on the Executive Compensation of Corporate Officers. It was intended by Congress to rein in excessive compensation packages that can cause problems in the marketplace. Prior to the change, Corporations were allowed to […]

IRS PROVIDES GUIDANCE FOR PUERTO RICO

IRS provides guidance for Puerto Rico. In IRS bulletin IR-2022-105, the Internal Revenue Service provided guidance for certain individuals in Puerto Rico on how to file and claim the Child Tax Credit payments that they are entitled to receive under the American Rescue Plan Act. “It’s important for residents of Puerto Rico to know that […]

TAX PROBLEMS LENDING TO FAMILY

Tax problems lending to family. Many people are happy to lend money to their loved ones, especially to children and grandchildren. But before stroking the check, review the tax rules. The tax consequences vary greatly depending on the terms of the loan. A small change in the terms of the loan can men big differences […]

IRS RULES ON PARTNERSHIP RETURNS

IRS rules on partnership returns. Many of the tax debt issues that we encounter happen because business owners do not classify themselves properly from the beginning of the business. Case in point a business we are dealing with where the partnership had the tax professional draw up the Corporate papers designating the structure of the […]

WINNINGS ON SUPER BOWL TAXABLE

Winnings on super bowl taxable. If you won money on the Super Bowl, remember that the earnings are taxable. We have run into virtually every reason why people have fallen behind on taxes. Some good, some bad. Gambling winnings and losses are something we are quite familiar with, and we understand that often individuals who […]

IS YOU HOBBY REALLY A BUSINESS ?

Is your hobby really a business ?  This determination is crucial if you want to be able to write off certain expenses, or whether the income is actually a business. The Tax Cuts and Jobs Act has eliminated the deduction for expenses for a hobby with the change to the Schedule A. This has made […]