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- Taxes and Flow-Through Entities in DivorceWhen a marriage involving owners of a flow-through entity is on the rocks, the intertwining of personal and business finances can create significant tax complications. This is especially true when one spouse is more involved in the business operations than the other. There are more than just tax issues to consider in divorce. But taxes…… Continue reading Taxes and Flow-Through Entities in Divorce
- A Government Step Transaction DoctrineWhen taxpayers weave together various tax rules to produce a favorable outcome, the IRS will often cite various judicial doctrines to avoid the result or to unwind the transaction. This can include economic substance, the step transaction doctrine, etc. These doctrines allow the IRS to effectively reverse the tax treatment of transactions when multiple tax…… Continue reading A Government Step Transaction Doctrine
- CDP Hearings and OICs: When Does the 24-Month Clock Stop?When it comes to tax deadlines, taxpayers are often held to strict standards. Miss a filing deadline by a day, and the taxpayer could lose their rights and/or ultimately be stuck with a higher tax balance. But what happens when it’s the IRS that has a deadline to meet? The short answer is that the…… Continue reading CDP Hearings and OICs: When Does the 24-Month Clock Stop?
- From Commingled to Contested: The IRS’s Audit of Tax DeductionsThe common idea that business expenses are deductible while personal expenses are not is an oversimplification. In reality, the tax rules are more nuanced. Some personal expenses are deductible, and the line between personal and business expenses is often blurry. This complexity is further compounded by the fact that many businesses, particularly small ones, fail…… Continue reading From Commingled to Contested: The IRS’s Audit of Tax Deductions
- The Tax Treatment of Pre-Start-Up CostsCan you deduct costs incurred while investigating whether to start a business? What if you spend several years researching, planning, and preparing to launch and you incurred costs during these years to do so? Are these expenses deductible in the years before your business officially begins operations? Does the answer change if the business actually…… Continue reading The Tax Treatment of Pre-Start-Up Costs
- Tax Planning With Disproportionate Distributions from S CorporationThere are several rules one has to meet for a legal entity to qualify as an S corporation. One of the rules is the requirement that shareholders of S corporations get identical distributions. Because this is a qualification to be an S corporation, one might think that the consequence of violating this rule is that…… Continue reading Tax Planning With Disproportionate Distributions from S Corporation