In our last blog, we discussed the benefits of the 1031 exchange. This IRS rule allows property owners to delay paying capital gains taxes if they trade their property for a like-kind property. If both your old and new properties are used for business or held as an investment, you may qualify for a 1031 […]
Parting Ways on Property Investments: How Partnerships Can Leverage the 1031 Exchange Read More »
In a previous blog, we discussed the benefits of the 1031 exchange. This IRS rule allows property owners to defer capital gains taxes when they trade a property for a like-kind property. So if your client has a property that is used for business or held as an investment and exchanges it for another property
Tax Deferral Strategies for Real Estate: Using the 1031 Exchange in Partnerships Read More »
One of the hidden benefits of setting up your business as a partnership is the ability to use special tax allocations. Because a partnership is a pass-through entity, income, losses, credits, and deductions “pass through” to the business owners who are taxed at personal income tax rates. Special tax allocations allow the partnership to distribute
Making the Most of Business Partnerships: How to Qualify for Special Tax Allocations Read More »
If you are working with business partnerships or entrepreneurs trying to decide on an entity type, be sure to introduce them to the tax benefits of establishing a partnership. As a pass-through entity, any income, losses, credits, and deductions from the partnership “pass through” to its partners who are taxed at personal income tax rates.
Each type of business entity comes with its pros and cons. Entrepreneurs may be more aware of some of the downsides of launching a partnership, such as possible tax disadvantages for non-passive partners. However, a major benefit of setting a business up as a partnership is the option to leverage special tax allocations. Below is
Tax Planning for Partnerships: What Are Special Tax Allocations? Read More »
As an entrepreneur, you have already established that you are an out-of-the-box thinker. After all, you developed a product or service that delivers value your competitors simply don’t offer. However, there is more to launching your business than a well-thought-out marketing mix. How you structure your company may impact your bottom-line results as much as
Beyond the Marketing Mix: How Your Business Entity Impacts Your Results Read More »
Beginning in tax year 2020, the IRS has updated its compliance rules for partnerships. Most partnerships will now be required to report their capital accounts. These accounts show the equity owned by each partner and typically include information like the initial contributions made by each partner, business profits and losses assigned to each partner, and
Understanding Partnership Capital Accounts Read More »
Understanding tax basis is key to maximizing tax deductions, especially for shareholders or partners involved in an S corporation or partnership. Tax basis refers to the amount that a taxpayer has invested in business assets, calculated by taking the purchase price and subtracting any accumulated depreciation. This value will determine the gain or loss when
Overcoming Limits to Tax Deductions for S Corporation or Partnership Losses Read More »
When it comes to entity selection, there really isn’t a general “rule of thumb”. Most business owners consult their attorney to determine which entity is appropriate, but in many cases, they’re making a big mistake if they don’t seek counsel from their tax team before choosing their entity. But you know that. Let’s talk about
How To Answer The Not-So-Quick Entity Question Read More »
A lot of professionals feel like they have to keep their work life completely separate from their personal life. If you’re one of those professionals, you’re not alone! And for a long time, that was true. But now the truth is that more and more professionals are choosing to do business with people they have
5 Ways To Connect With Your CPA Partners, “Just Because” Read More »