Tax Court Differs on Treatment of Built-In Capital Gains

When valuing a controlling or non-controlling interest in a C corporation that owns only marketable securities, a common method to apply is the net asset value method under the asset approach. Under this method, the fair market value of liabilities is subtracted from the fair market value of assets. Included in the liabilities is a …

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IRS Slow to Adapt to On-Demand Economy

Last month, Professor Caroline Bruckner of the Kogod Tax Policy Center delivered a report to Congress detailing the failure of our tax system to keep up with the growing on-demand economy of companies like Airbnb, Uber, Lyft, and others. As part of their research, Kogod spoke to individuals working in the on-demand economy, tax practitioners …

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Heads Up on Form 1099-MISC

Please note the new filing date for Form 1099-MISC, per the IRS: Public Law 114-113, Division Q, Section 201, requires Form 1099-MISC to be filed on or before January 31, 2017 (compared to February 28th in the prior year), when you are reporting nonemployee compensation payments in Box 7. Otherwise, file by February 28, 2017, …

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IRS Shuts Down E-File PIN Tool

The IRS is continually having difficulties when it comes to defending taxpayers’ information from cybercriminals. Most recently, the IRS has had to shut down the e-file PIN tool due to a barrage of automated attacks taking place. The IRS announced Thursday that the attacks have increased in frequency and that it has closed both the …

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Tax Return Identity Theft – Not Just a Problem at the Federal Level

Many are aware of the big problem of identity theft relative to federal income tax filings. More and more individuals have been filing their federal income tax returns, only to find out from the IRS that someone already filed one using their information and they absconded with your refund. What many don’t know is that …

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Built-In Gains Tax

The built-in gains tax was originally established in 1986 as a way to prevent C corporations from escaping the double taxation on unrealized gains by electing to be an S corporation. The way it worked was that if a C corporation had any unrealized gains in its assets when it elected S corporation status, it …

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2016 Annual Giving USA Report Released

The Giving USA Foundation (a public service initiative of The Giving Institute) has released their 2016 annual Giving USA Report on Philanthropy in collaboration with The Indiana University Lilly Family School of Philanthropy. Using data from calendar year 2015, the Giving USA report compiles and analyzes data on charitable giving in the U.S in order …

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Commuting Costs and the Home Office

In general, commuting costs are nondeductible. There is no deduction available for traveling between your home and your normal work location. But how does that change if your home is your normal work location? First of all, you need to establish that your home is your principal place of business. A number of our other …

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Gift Stock to Help a Loved One – 0% Rate Tip

Do you have a loved one that may be in school, struggling with student loans, or buying a house? Yes? No? To be honest it doesn’t matter, because for this tax savings gifting tip, you don’t need a “qualified” reason or any reason at all! You can simply gift stock, help a loved one out …

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