Category: SR Client Questions
SR Client Question: Can adding my child to our Michigan home’s title prevent the property tax value from uncapping when I pass?
If you add your child as a co-owner of real property, he or she won’t get a full step up in basis when it is sold after your passing. Also, there is a risk of re-assessment for real estate taxes...
SR Client Question: Can you collect unemployment pay if you received severance pay?
An individual cannot collect full unemployment benefits if there is severance pay that is allocated, by the employer, to the weeks of unemployment benefits. If there is no specific allocation of the specific weeks of severance pay by the employer,...
SR Client Question: How safe are password managers?
Many of our clients use password managers to protect and store their password libraries. With sometimes hundreds of unique log-ins between business and personal accounts, it can become unmanageable to remember each username and password. The convenient password managers built...
Can partners concurrently be employees?
Question: Can a partner in a business, for tax purposes, also be an employee? Answer: A partner CANNOT be an employee of the partnership. This conclusion is per the following: a) I.R.S. Revenue Ruling 69-184...
Client Question: What should I do if an employee claims a high number of exemptions?
According to the IRS, if an employee submits a valid Form W-4 that appears to be claiming an incorrect withholding amount, you should withhold federal income tax based on the allowances claimed on the Form W-4. But, you should advise...
Client Question: How long should I keep my tax records?
FROM THE IRS: The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return...
Congrats ShindelRock Client Detroit Denim!
Detroit Denim Co. Opens New Location, Launches Additional Product Lines Described as a new manufacturing center in the Motor City, Detroit Denim Co. opens its new location today in the city’s east riverfront district near Stroh River Place. Founded in...
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 Client Question: Can I avoid paying taxes on the sale of my primary residence?
A person selling his or her primary residence can, if certain conditions are met, avoid paying tax on some or all of the gain realized. This is allowed per code section 121 of the Internal Revenue Code. A maximum gain...
SR Client Question: When are transportation expenses deductible?
The IRS has rules to determine if transportation expenses are deductible. Here are a few of their guidelines: Between home and regular or main job, Never deductible. Between home and temporary work location, Deductible if you have a regular or...