Category: SR Glossary
Understanding the purpose of a cost segregation study
Property acquired or constructed by a taxpayer can be ‘depreciated’ (expensed) for tax purposes over its useful life. The IRS has specific guidelines as to the specific useful life of property. There are different useful lives for different properties. For...
SR Glossary: Non-resident alien taxes
What is a non-resident alien? An alien is any individual who is not a U.S. citizen or U.S. national. A nonresident alien is any individual who is not a U.S. citizen or U.S. national and who has not passed the green card test or...
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...
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...
CANCELLATION OF INDEBTEDNESS (Part 3)
As we indicated in the discussion in Part 2, cancellation of debt (COD) can also occur with a partnership or S corporation. As you know neither of these type of entities pay income tax, the individual partners or shareholders pay...
CANCELLATION OF INDEBTEDNESS (Part 2)
As we indicated in the discussion in Part 1, the Internal Revenue Code has provisions under which part or all of cancellation of Debt (COD) may not be taxable. There are five situations that allow you to exclude COD from...
SR Glossary: CANCELLATION OF INDEBTEDNESS
Cancellation of Indebtedness (COD) occurs when you are discharged from a debt. The debt may be in the form of a mortgage, credit card, loan, state and local taxes, etc. The debt could be held by a financial institution, governmental...
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To the right of this post is a small orange button inviting you to follow this blog on your RSS reader. What does that mean, and how can you take advantage of RSS feeds to make following your favorite blogs...
SR Glossary: Below Market Loans
In the course of running a smaller company there comes times where the owner(s) may need to loan the company money. What is usually lost in this whole transaction are the details: How is it going to be repaid? When...
SR Glossary: Basis
What’s your basis in your business? When you own an interest in a partnership or S corporation you may run into issues from time to time regarding “basis”, or simply, how much money you have in the business. Basis can...