TLB issues 2007 year-end tax letter
November 20th, 2007TLB has issued a year-end tax letter for individuals covering recent changes in tax rules and regulations and covering simple strategies for minimizing your 2007 tax obligation.
New Rules on Employment Taxes for Single Member LLC’s
November 18th, 2007The
Eight reasons your corporation should be an S-Corp
October 12th, 2007When choosing the type entity to operate your business there are several legal and financial aspects to consider. These considerations vary, and carry different weight, depending upon each set of facts and circumstances. However, if you operate your business entity as a corporation - TLB recommends you recheck your reasons for not making the so-called “S” election. Some of the reasons why the S-election is advantageous are as follows: Read the rest of this entry »
Income from Real Property Subdivided for Sale
September 25th, 2007Real estate agents, developers and investors must be careful in how they report income from the sale of subdivided real property. Many taxpayers and preparers assume the sale of real estate is eligible for capital gains treatment (capital gains are currently taxed at 15% for federal purposes) as opposed to ordinary income (current maximum federal rate of 35%). Needless to say an
Cost Segregation Provides Opportunities for Significant Tax Savings
August 17th, 2007The case of Hospital Corp. of America v. Commissioner of Revenue established the right of taxpayers to utilize cost segregation studies for computing depreciation and provides guidance in identifying tangible personal property in a building, which is eligible for accelerated methods of depreciation over fewer years as compared to the traditional 27.5 year recovery period for residential rental property and the 39.5 year recovery period for commercial real estate. Read the rest of this entry »
Lump-sum payment in lieu of future annual lottery payments is ordinary income
June 18th, 2007Sorry lottery fans – except for the fact that you just hit the big one – you just can’t win, at least not with the
IRS attempts to update the audit selection process
June 15th, 2007The
What is the proper depreciable life for wine vineyard assets?
June 1st, 2007Obviously, if a taxpayer can recover the cost of acquiring an asset sooner rather then later, it is to her benefit. There are several instances I can think of where the life of an asset is not defined or particularly clear in the tax code. Well in the case of Trentadue v. Comissioner (128T.C. No. 8 –
Capitalization of costs when growing grapes for wine production
May 25th, 2007The Chief Counsel’s Office of the IRS advised what costs are subject to capitalization under §263A in connection with growing grapes for wine production. (See CCA 200713023) The taxpayer which operates vineyards that produce wine grapes and a winery, uses an overall accrual method of accounting, treating the grape-growing and wine-making activities as a single trade or business. Most or all of the harvested grapes are sent to the taxpayers winery to be crushed to produce juice that will be processed into wine. Read the rest of this entry »
Consider self-rental rule regulations when engaging in rental activities
May 12th, 2007Here is a common scenario: A shareholder of a corporation rents property to his corporation, in which he materially participates (maybe a builder, landscaper, consultant, etc.), and earns a profit on the rental activity. In addition, the shareholder also owns other rental property that is reporting a loss for tax purposes. In several cases we have seen the taxpayer utilize the losses of one property to offset the gain from the other property. Read the rest of this entry »