Business Administration

Tag: Gains

  • Basis for Tax Purposes

    Basis for Tax Purposes

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    by

    David J Hoare MSA
    in

    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 an asset? 

  • At-Risk Rules – An Elementary Understanding

    At-Risk Rules – An Elementary Understanding

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    by

    David J Hoare MSA
    in

    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…

  • Realized and Unrealized Gains or Losses

    Realized and Unrealized Gains or Losses

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    by

    David J Hoare MSA
    in

    When a product or investment is sold, the seller must realize a gain or loss from the transaction. The actual sale or transaction will trigger the gain or loss realized.  In effect, the receipt of cash sets the threshold for a ‘REALIZED’ amount. Unrealized gains or losses are potential i.e. on paper transactions.