Tax Blog 2018-08-17T15:58:54+00:00

Tax Matters

Choice of Entity Decisions in Light of the 2017 Tax Cuts and Jobs Act – It Is Not as Easy as it Once Was

The choice as to the appropriate type of entity to use for a business venture has historically been fairly straight forward. With regards to a closely held business, a “pass through” entity avoiding taxes at the entity level was generally the most attractive alternative if the choice was available. While there were exceptions to this general rule, they were fairly limited and specific. As a result, the overwhelming majority of existing business entities are pass through entities. The 2017 Tax Cuts and Jobs Act makes the decision of choice of entity much less apparent. For example, assume that a taxpayer [...]

By | February 1st, 2018|Categories: Tax|0 Comments

Section 1031 Exchanges and Proposed Reforms

The 1031 Exchange: Section 1031 of the Internal Revenue Code provides an exception from the rule requiring the current recognition of gain or loss realized upon the sale or exchange of property. Under §1031(a), no gain or loss is recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of a like kind to be held either for productive use in a trade or business or for investment. Section 1031 provides an exception only from current recognition of gain realized. The realized gain is deferred until the “exchange property” is [...]

By | June 19th, 2017|Categories: Tax|0 Comments

Late Subchapter S Election Relief

If a taxpayer misses the deadline to file a subchapter S election all is not lost. The Internal Revenue Service (IRS) has struggled with the procedures for obtaining relief from missing such a filing. Rev. Proc. 2013-30 is the method for obtaining relief for late S elections. It modifies and supersedes Rev. Proc. 2007-62, Rev. Proc. 2003-43 and Rev. Proc. 97-48. No user fee is required when requesting relief under Rev. Proc. 2013-30. Section 1362 of the Internal Revenue Code (the “Code”) and its corresponding regulations provide that a corporation meeting all the requirements to be a small business corporation [...]

By | November 17th, 2016|Categories: Tax|0 Comments