Related party rentals – what’s the big deal?

As long as the tax code has been in place, people have looked for ways to shift income, reduce their liability and increase their cash flow. And, as an owner of a small business, rent expense has been an area that has allowed some creative accounting. However, the IRS has taken notice of this area …

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When are legal settlements taxable?

According to the IRS, “all income is taxable from whatever source derived, unless exempted by another section of the Code” (IRC Section 61). How does that affect monetary awards in legal settlements? Awards and settlements can be broken into two separate groups to determine whether they are taxable or not. The first includes claims relating …

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Quickbooks Online

I have a client that has been using the desktop version of QuickBooks since 2000 and is thinking about making a switch to QuickBooks Online.  They asked me how the online version compares to the desktop version.  The truth was that I had used both versions for what I needed from a tax reporting perspective, …

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What are intangible assets?

By definition, intangible assets consist of items that are not tangible. In other words, these items are not able to be touched or seen even though money may have been paid to purchase them. Some common examples include: Goodwill Patents Copyrights Trademarks Organization Costs Loan Fees Intangible assets can be developed over a period of …

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Key points of the US – Canada Tax Treaty

The U.S. has entered into tax treaties with many countries in an effort to reduce or eliminate double taxation. The U.S. – Canada Income Tax Treaty is of special interest due to the proximity of this neighboring country. This treaty was signed in 1980 and has since been amended by five protocols. Income from personal …

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NOL carrybacks: re-computation rules

Considering the economic conditions as of late, many taxpayers have found themselves incurring economic losses. These economic losses have translated into taxable losses, which, as a general rule, can be carried back to offset taxable income from up to two years prior. Under special provisions enacted for 2008 and 2009 losses, taxpayers can elect to …

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