In a common partnership, you will find a) general partners - running the business and responsible for the debts and b) limited partners - similar to investors where the money at risk is the amount contributed and not being involved in the day to day. The general partners will be subject to the self-employment tax
Cost Segregation is one of the big words use by tax gurus and tax strategists to potentially make you pay less taxes. Cost segregation is simply accelerating depreciation on real estate assets that are usually subject to 27.5 residential and 39 commercial to some items (parts of the building) at 5, 7 or 15 years
Thanks to the Secure Act 2.0 passed in 2022, there is another option for the overfunded 529 starting 2024. In the past, if you used those funds for non-education purposes, you had to pay your tax income and a 10% penalty on the earnings. Some of the rules to consider are: You can roll the
To close the year 2024, we bring to your attention a case on the news (NYTimes) a mind blowing case where a tax preparer through a network of franchises ATAX stole more than $145 million from the IRS. Back in April 2024, the IRS make the case public and issued a press release (see link
Since the pandemic, there is a higher mobility on the working force and even companies switching headquarters to more tax friendly environments. As a member of the Philadelphia Tax Reform Commission, we considered extremely relevant the comparison of State and Local taxes in different territories. Taxes is one of the factors for business and individual
On December 23rd, the US Court of Appeals - Fifth circuit reinstated the BOI (Beneficial Ownership information) filing requirement. The reinstatement made a few changes to the reporting deadlines which in many cases is now January 13th 2025 (instead of January 1st, 2025). As a result, you are now required again to file the BOI
You need to be extremely careful on how you get in business with. You might end up being liable for ghost income, funds stolen from your partners and many other issues. In the Maggard v. Commissioner, (TC Memo 2024-77), James Maggard co-founded an engineering consulting partnership, the initial co-partner left buying him out, and then,
We have numerous blog posts on the difference between a) employees and b) independent contractors based on the IRS, Department of Labor (DoL) and State authorities at the time the post was released. However, in January 2024, the DoL released new rules (or go back to the previous rules pre-Trump) on "... how to analyze
First, what is this harvesting? – no, you do not need to live in a farm. Tax loss harvesting is selling investment with a loss (take that capital loss) and apply against the capital gain of profitable investments. Example 1: Sold share of X Inc with a $5k loss (purchased at $7k and sold at
In the IRS IR-2024-262, the IRS estimated that there is a tax gap of around $696 billion for 2022. Even if the IRS mentioned in their communication that 85% of taxpayers are compliant, the 15% remaining is broken down in the following three areas (extracted directly from IRS communications): "... Non-filing, which means tax not
