In general, distributions of property other than cash from an LLC taxed as a partnership are tax-free to the members. This feature of an LLC is one reason why a business operating as an LLC may choose to be taxed as a partnership rather than a corporation. However, there are five circumstances in which a …
Continue reading “LLC – Distributions of Non-Cash Property – Disguised Sales”
What property, equipment or other assets will be used by the business? Will property, equipment and other business assets be purchased or will they be contributed to the new business by the owners? How much money will each owner contribute to the new business venture? Will the business operate at a profit or loss during …
Continue reading “Top 10 Questions – Choosing a New Business Entity”
In general, distributions of property other than cash from an LLC taxed as a partnership are tax-free to the members. This feature of an LLC is one reason why a business operating as an LLC may choose to be taxed as a partnership rather than a corporation. However, there are five circumstances in which a …
Continue reading “LLC – Distributions of Non-Cash Property – Hot Assets”
The SECURE Act, effective January 1, 2020, makes significant changes to the previous rules governing payout of distributions to beneficiaries of an inherited retirement account, including IRAs. Previously, beneficiaries were in general entitled to “stretch” the required minimum distributions from the inherited account over the life expectancy of the beneficiary. The “stretch” option allowed the …
Continue reading “SECURE Act – New Retirement Account (IRA) Beneficiary Rules”
Generally, all income received from any source is included in a taxpayer’s gross income. Income is taxed as ordinary income unless the income is received from the sale or exchange of property characterized as a capital asset or from property used in a trade or business. When a debt for which a taxpayer is legally …
