Electing S status by an LLC - The Tax Adviser
WEBApr 1, 2020 · An LLC that is eligible to elect S status and timely files an S election (Form 2553, Election by a Small Business Corporation) is considered to have made the election to be taxed as a corporation (Regs. Sec. 301. 7701 - 3 (c) (1) (v) (C)). These entities are not required to file Form 8832, Entity Classification Election.
Goodwill as Part of a Corporate Asset Sale - The Tax Adviser
WEBWhen a corporation is sold in an asset sale, a separate sale of a shareholder's personal goodwill associated with the corporation can result in the gain from the sale of the goodwill being taxed to the shareholder at long-term capital gains rates. Personal goodwill can be present when the owner's reputation, expertise, skill, knowledge, and ...
Cost recovery changes in the TCJA - The Tax Adviser
WEBJun 1, 2020 · Under the TCJA, the recovery period for residential rental property under the ADS was reduced from 40 years to 30 years. Some of the changes brought about by the law known as the Tax Cuts and Jobs Act (TCJA) 1 were straightforward, including increasing standard deductions and eliminating personal exemptions. Others, however, …
Qualified small business stock exclusion: Who’s eligible?
WEBNovember 1, 2021. Editor: Mark G. Cook, CPA, CGMA. Sec. 1202 was enacted to incentivize investment in certain small businesses by permitting gain exclusion upon the sale of qualified small business stock (QSBS). This 30 - year - old Code section is very popular, especially since 100% of gain is excluded for QSBS issued after 2010.
IRS notice response tips everyone should know - The Tax Adviser
WEBMay 11, 2017 · Taxpayers should explain themselves thoroughly, and attach documents where they will be helpful. The protest should analyze the facts and the law and put the taxpayer's best foot forward. The IRS may review the protest and agree. Even if it doesn't, how the protest is framed can help later.
Tax treaty benefits for U.S. citizens and residents
WEBFeb 8, 2018 · Even though tax treaties generally preserve or save the right of the United States to tax its citizens and residents on worldwide income with a "saving clause," treaties may have exceptions to saving clauses that also benefit U.S. persons in terms of their U.S. income taxes. This article will illustrate some of these exceptions, as they apply ...
S corporation shareholder recomputation of basis - The Tax Adviser
WEBFeb 1, 2022 · The new form is required to be filed by an S corporation shareholder to report shareholder basis. The form is based upon the 2020 instructions for Schedule K - 1 (Form 1120 - S), Shareholder's Share of Income, Deductions, Credits, etc., that includes an example format for reporting a shareholder's basis computation for prior years.
Transnational tax information reporting: A guide for the perplexed
WEBMar 1, 2018 · The purpose of this article is to provide a guide that acts to alert the practitioner to when an information return may be necessary. Making the determination often requires a time-consuming examination of the instructions for the form involved.. One problem a practitioner is likely to face is that it may be uncertain whether it is necessary …
A guide to changing previously filed partnership returns - The Tax …
WEBJun 1, 2020 · Partnerships needing to modify a previously filed Form 1065, U.S. Return of Partnership Income, must be mindful of the changes brought about by the Bipartisan Budget Act (BBA) of 2015, 1 which created a new centralized partnership audit regime. In addition to providing new rules for partnership examinations, the BBA altered the procedures for …
The function of basis - The Tax Adviser
WEBApr 1, 2018 · Thus, the function of basis can be summarized as follows: Determines whether gain or loss is recognized (Sec. 731 (a)). Limits the basis of distributed property (if the basis of distributed property in the hands of the partnership exceeds the basis of the distributee in his or her partnership interest) (Sec. 732).