Blog posts from: 2016
SR Glossary: Foreign ownership of U.S. rental property
The method by which rental income will be taxed depends on whether or not the foreign person who owns the property is considered "engaged in a U.S. trade or business." Ownership of real property is not considered a U.S. trade...
Tax-related investment strategies and news
The recently released "Panana Papers" allege to showcase an illegal way to shelter income from your local tax authority--off-shore unregulated accounts. Obviously, this is a bad tax strategy that can and will quickly land you in jail. But there are plenty of...
Criteria for determining worthlessness of stock
IRC Code Section 165 (f) and (g) allow for a losses on the sales of capital assets and losses on worthless securities. The determination of worthlessness is based upon facts and circumstances. To be considered a loss from worthless stock the...
SR Client Questions: Employee stock transfers and “S” Corporations
Question: An “S” corporation is considering transferring stock to an employee/physician. What are the tax and related economic issues? Answer: Tax Law – Code Section 83: The controlling IRS code section determining the tax consequences for both the recipient/employee and the...
SR Glossary: U.S. taxpayer identification number (Form W-7)
What is a U.S. taxpayer identification number? A Taxpayer Identification Number (TIN) is an identification number used by the IRS in the administration of tax laws. It is issued either by the Social Security Administration or by the IRS. A...
Substantiating charitable contributions
As you compile information on charitable contributions for your 2015 tax return, please take into account the following requirements. For a contribution of cash, check, or other monetary gift, regardless of amount, you must maintain a bank record or a...
Scam Alert: New IRS impersonation phone scam
Aggressive and threatening phone calls by criminals impersonating IRS agents remain a major threat to taxpayers, but now the IRS is receiving new reports of scammers calling under the guise of verifying tax return information over the phone. The latest...
IRS delays estate basis reporting deadline
The Internal Revenue Service has again delayed the deadline for reporting the basis of property distributed from the estate of a decedent until March 31. Notice 2016-19 provides that statements required under section 6035 of the tax code, regarding the basis...
Minimizing tax implications during “C” to “S” corporation conversion
Many companies find that converting from "C" corporation to "S" corporation status can be beneficial from both a tax and operation standpoint. C corporation owners can convert their company to an S corporation without triggering an immediately taxable transaction in...
IRS wraps up the “Dirty Dozen” list of tax scams for 2016
The IRS recently wrapped up its annual "Dirty Dozen" list of tax scams with identity theft topping this year's list but with phone scams and phishing schemes also deserving special mention. Taxpayers need to guard against any ploys to steal their personal...