Business Administration

Tag: At-Risk Rules

Negative Basis in Business – Tax Shelters

Apr 21, 2015

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by

David J Hoare MSA

in Terminology

Negative basis in business refers to the value of the equity investment in the company. It literally means you have no actual equity investment and worse you owe somebody money because other parties have fronted the necessary capital to make the business viable.
At-Risk Rules – An Elementary Understanding

Oct 28, 2014

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by

David J Hoare MSA

in Income Taxes

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 losses on his tax return contingent on the loss being directly tied to invested dollars…