Many business owners and executives fail to realize that accounting is the information connection within your own business. Accounting doesn’t simply capture the box scores of your company’s business transactions. A...more
The recipients of some merchant cash advances have an opportunity to defend, and even counterclaim for treble damages and attorneys’ fees, when funders of certain loans characterized as merchant cash advances sue them in...more
The IRS’ determinations in a notice of deficiency are generally presumed correct. Therefore, unless specifically excepted by Tax Court Rule or statute, the burden of proof in civil tax proceedings is ordinarily on the...more
Los contribuyentes pueden enfrentarse a la pregunta: “¿Es un hobby o negocio?”. El IRS afirma que: “a veces la línea entre tener un hobby y administrar un negocio puede ser confusa, pero conocer la diferencia es importante...more
Taxpayers may be faced with the question: “Is it a hobby or business?” The IRS states that: “sometimes the line between having a hobby and running a business can be confusing, but knowing the difference is important because...more
There is a case called Sheridan, that requires judges to report the failure to report income to the proper authorities. Like Big Foot and the Lochness Monster, many people have heard of a Sheridan, but few have actually seen...more
Qualified Small Business Stock (“QSBS”) is arguably one of the largest “gifts” Congress has given taxpayers by excluding from a shareholder’s gross income the greater of $10 million or 10 times the shareholder’s basis in the...more
Last week, Sen. Warren reintroduced her “Ultra-Millionaires” wealth tax proposal to the Senate. Query her timing. The measure has the proverbial snowball’s chance in Hell of being enacted by this Congress.Perhaps the Senator...more
The Fifth Circuit added to the emerging body of case law addressing the recovery of business income losses in the cyber insurance coverage context to kick-start 2024 in Southwest Airlines Company v. Liberty Insurance. ...more
The Minnesota Supreme Court recently held that the gain from the sale of goodwill was subject to apportionment as business income derived from a unitary asset rather than allocation of nonbusiness income pursuant to Minnesota...more
The Tax Court recently ruled that a limited partner’s share of business income may be earnings from self-employment. Earnings from self-employment are subject to the self-employment tax. Earnings from self-employment...more
Hope you had a good Thanksgiving Holiday. Some of us probably feel we ate or drank either too much or not enough, watched too much or not enough football, or spent too much time discussing politics and the state of the...more
It appears that many of the country’s colleges and universities believe they have not already contributed enough to the decline of American education and to the erosion of our society, generally. These institutions of...more
Managing personal finances is stressful, and many people are glad to let their spouse take the lead on paying bills, filing taxes, managing investments and the like. However, when preparing for divorce, you should have a good...more
Another Change- Last week BDO confirmed that it was going to convert from an entity organized as a limited liability partnership under state law to one organized as a corporation. With that, BDO became the latest in a...more
If you didn’t attend the American Bar Association’s Section of Taxation meeting last week, you may have missed that IRS Counsel confirmed they will not automatically challenge a Section 199A qualified business income...more
Every now and then, some well-meaning colleague will ask how I spend my free time. I usually pause before responding – to gather my thoughts – which prompts them to restate their question with what they believe is greater...more
Child support has aspects of persistent chaos in a day when more and more people work in a “gig” economy and many are self-employed. As we have noted in the past, it is not common for those who are well compensated to see...more
“Show Me the Money”- Much has been written in recent months about how well the investment portfolios of private foundations have performed over the last several years. For example, a study conducted by the Council on...more
Whether the damage to a gas station's gas pumps results from car accidents, fires, lightning strikes, vandalism, or even floods, there are many distinct aspects to consider when reviewing and analyzing related business income...more
Ohio has finally given taxpayers long-awaited clarity on the tax treatment for sales of business. H.B. 515 specifically addresses two situations when gains from the sale of an equity or ownership interest qualify as...more
Tax Litigation: The Week of August 1st, 2022, through August 5th, 2022 Whistleblower 769-16W v. Comm’r, 159 T.C. No. 2 | August 4, 2022 | Toro, J. | Dkt. No. 769-16W ...more
As we previously discussed, toward the end of June Whirlpool Financial Corporation & Consolidated Subsidiaries and Whirlpool International Holdings S.a.r.l. & Consolidated Subsidiaries (collectively, Whirlpool) asked the...more
Tax planning is often a vital consideration in an exit strategy for business owners. While most business advisors factor in federal income tax consequences when analyzing transaction structures, state income tax consequences...more
A California state appellate court recently upheld the trial court's decision in The 2009 Metropoulos Family Trust v. Franchise Tax Board that nonresident shareholders of an S corporation source gain on the S corporation's...more