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So is Newt really vindicated?
While his presidential campaign seems to be fading, Peter Reilly at Forbes says that at least Newt’s tax return filings are looking better after last week’s decision on S corporation compensation by...
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Tax pro’s airplane deduction misses the runway.
A man who operated tax prep businesses in California and Nevada probably felt that he knew how to arrange things to stay out of tax trouble. The Tax Court decided otherwise last week in the case of...
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Tax Court: you can use distributions from one S corporation to restore basis...
An important Tax Court decision issued yesterday validates a traditional S corporation planning tactic from an overreaching attack by the IRS. Incidentally, it validates some old Tax Update advice. S...
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IRS: you aren’t allowed to escape our trap!
Flickr image courtesy Woodswalker under Creative Commons license A bunch of McDonalds franchisees in Utah were run in a multy-entity structure: the restaurants were operated in one corporation, while a...
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Tax Roundup, 9/21/2012: Area S corp owner knocks on Supreme Court door. And...
West Des Moines CPA asks Supreme Court to overturn employment tax assessment on S corporation income. The taxpayer has filed a petition asking the U.S. Supreme Court to overturn the Eighth Circuit...
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Bad records help stick struggling S corporation owner with extra salary
S corporation K-1 income isn’t subject to self-employment or payroll taxes. This tempts S corporation owners to take minimal salary and take earnings out as S corporation distributions instead....
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How much K-1 loss can I deduct? Start with your basis.
If search statistics for the Tax Update are any indication, one of the most pressing issues for people who end up here is “why can’t I deduct my K-1 loss?” There are three main reasons why your S...
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Tax Court: even if you lose money, your S corporation needs to pay...
One thing I like about S corporations is that while corporation income is taxed on shareholder’s 1040s, income on the K-1 isn’t subject to payroll or self-employment tax. Except when it is. Mr....
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Tax Roundup, 8/15/2013: Turning on the revenue cameras honestly. And mink...
But I thought it was about safety, not money. The Des Moines Register reports: The Clive City Council today is likely to reactivate its dormant red-light camera program, but only through June 30,...
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Tax Roundup, 1/20/14: If it’s not a scandal, it hurts like one. And: S...
The U.S. District Court for the Southern District of Iowa didn’t need my services as a juror this week, so I will be participating in the Iowa Bar Association webinar this afternoon on new...
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