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Federal Income Tax

It’s important to understand how taxes factor into M&A transactions

Assets, C Corporation, Federal Income Tax, LLC, Merger & Acquisition, Partnerships, Past-Through Entities, S Corporation, Small Business, Small Business Owners, Small Business Stock, Small Business Tax Tips, Stocks, Tax Considerations for Selling Your Business /

In recent years, merger and acquisition activity has been strong in many industries. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law. Stocks vs. assets. From a tax standpoint, a transaction can basically be structured in two ways: 1. Stock […]

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Spouse-run businesses face special tax issues

Federal Income Tax, Partnerships, Self Employment Tax, Social Security & Medicare (FICA) taxes /

Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue. An unincorporated business with your spouse is classified as a partnership for federal income tax purposes unless you can avoid that treatment. Otherwise, you must file an annual partnership return, on Form

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The advantages of using an LLC for your small business

Federal Income Tax, Limited Liability Company, LLC, Partnerships, S Corporation, Shareholder, Small Business, Small Business Tax Tips /

If you operate your small business as a sole proprietorship, you may have thought about forming a limited liability company (LLC) to protect your assets. Or maybe you’re launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might

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A tax-smart way to develop and sell appreciated land

(NIIT) Net Investment Income Tax, Captial Gains, Federal Income Tax, Land Owners, Ordinary Income Tax, Real Estate, S Corporation /

Let’s say you own highly appreciated land that’s now ripe for development. If you subdivide it, develop the resulting parcels and sell them off for a hefty profit, it could trigger a large tax bill. In this scenario, the tax rules generally treat you as a real estate dealer. That means your entire profit —

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Benefits of a living trust for your estate

Assets, Estate Planning, Federal Estate Tax, Federal Income Tax, Living Trust /

You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to

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The IRS clarifies what counts as qualified medical expenses

AGI (Adjustable Gross Income), Federal Income Tax, FSA, HSA, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses /

If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications. You can claim an itemized deduction for qualified medical expenses that exceed

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The tax advantages of hiring your child this summer

Business Income Tax, Federal Income Tax, Federal Income Tax Filing, Federal Unemployment (FUTA Tax, Income Tax, Small Business Tax Tips, Social Security & Medicare (FICA) taxes, Summer Employees /

Summer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win! Here are four tax advantages.

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Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances

Antidiscrimination Laws, Federal Income Tax, Small Business, Small Business Owners, Small Business Tax Tips /

You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and

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Key tax issues in M&A transactions

Assets, Business Income Tax, Capital Gains, Federal Income Tax, LLC, Merger & Acquisition, Partnerships, S Corporation, Small Business, Small Business Tax Tips, Sole Proprietors, Stocks, Taxes 2023 /

Merger and acquisition activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But some analysts expect 2023 to see increased M&A activity in certain industries. If you’re considering

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Employers should be wary of ERC claims that are too good to be true

(ERC) Employee Retention Credit, COVID-19, Employee Retention Tax Credit (ERTC), Federal Income Tax, Income Tax, Paycheck Protection Program /

The Employee Retention Credit (ERC) was a valuable tax credit that helped employers that kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers that haven’t yet claimed it might still be able to do so by filing amended payroll returns for tax years 2020

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