Recent Articles

Taxation

From the Internal Revenue Service to your local governing regluations. This category deals with the area of income taxes, revenue taxes, personal property taxes, and other tax matters.

Owner Compensation in an S-Corporation

06/05/2015

One of the tax attributes of an S-Corporation over other forms of tax entities is the ability to reduce the overall tax obligation.  Naturally the lower the overall tax requirement the more profit generated for the owner(s).   The S-Corporation [...]

SS-4 IRS Application for an Employer Identification Number

05/09/2015

An employer identification number (EIN) is the business equivalent of a Social Security number.  A unique identifier is assigned to the business for use in communicating and complying with the Internal Revenue Service.  Just like a Social Security [...]

Basis for Tax Purposes

02/19/2015

Basis is a term used in computing gains and losses on the disposition of an asset.  For any business owner or individual taxpayer it is important to understand what the Internal Revenue Service (IRS) is really seeking.  What is your tax basis in [...]

Nondeductible Expenses in Small Business

02/10/2015

One of the more significant expenses for the small business owners is income taxes.  Since most small businesses are tax pass through entities, it is beneficial to the business to have the least amount of net income in order to reduce the tax [...]

Estimated Tax Payments – Why and How

01/25/2015

In the normal taxpayer relationship with the Internal Revenue Service, the taxpayer is an employee and via withholding, taxes are paid the U.S. Government by the employer.  Basically the employer pays the tax after each payroll run on behalf of all [...]

Organizational Expenses – Types and Tax Implications

01/03/2015

Prior to initiating operations, every business spends money to develop the idea and create the legal entity.  These types of costs are referred to as ‘Organizational Expenses’.  There are several different types of organizational [...]

Mileage Deduction – Rate for 2015

01/01/2015

On December 10, 2014, the Internal Revenue Service announced the mileage rate deduction for 2015.  They increased the amount allowed 1.5 cents to 57.5 cents per mile.  So how do you calculate and use the mileage rate formula for tax purposes?  If [...]

Mailbox Rule in Business

12/03/2014

There is one tax rule that confuses business owners and it relates to the year-end practice of paying bills and receiving compensation for receivables.  This is referred to as the ‘Mailbox Rule’.  This is strictly a tax issue for cash basis [...]

At-Risk Rules – An Elementary Understanding

10/28/2014

Code Section 465 of the Internal Revenue Code defines ‘At-Risk’ as the financial value the taxpayer has in jeopardy related to the business activity the taxpayer is invested in as some form of an owner.  Effectively, the taxpayer may only take [...]
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