General Rules for S-Corporation Distributions A Random Walk Down IRC 1368
Unless you elect different treatment, for shareholder income tax purposes S corporation distributions are applied in the following order: 1. To reduce the Accumulated Adjustment Account (AAA)...
View ArticleS – Corp Charitable Donations
The most intriguing aspect of maintaining this tax blog is the pleasure of meeting and engaging a wide variety of successful people all with the courage to take the risk of venturing out on their own...
View ArticleIRC 7216 Disclosure Issues to Consider When Selling Your Practice – Start...
As many of you know who follow this blog I also currently serve in a voluntary capacity as the President of the Colorado Society of Enrolled Agents, a state affiliate chapter of the National...
View ArticleDefending Against Alter Ego Allegations
What is an “alter ego” allegation? Aside of course being one of several nuanced yet distinct stages of intoxication, when it comes to the IRS it seems from my perspective that there are several...
View ArticleHow to Report An Incorrectly Issued K1
I’ve been working a very complicated file since my last post involving income in 11 states and countless K-1s, Partner’s Share of Income, Deductions, Credits, etc. Interestingly enough one of my...
View ArticleWhat is an FTE? What is a Seasonal Employee?
My friend, confidant, mentor and expert in the procedural ramifications of ObamaCare, Debbie Nash of D. Nash & Associates, got to talking with me about some of the nuances of this legislation and...
View ArticleWhat is the best Business Structure to form If Any?
What I love most about Colorado, more than the 300+ days of sun every year and the glorious rocky mountains, are the people. For the most Coloradans are risk taking job creators, starting new...
View ArticleDefining Passive Activity Between Spouses – Beyond the Bedroom: What Is...
One would imagine this is the script to a low budget B-rated film by the title, it is not. But if it got you reading all the better because you may want to know about my friends, a professionally...
View ArticleSchumann v. IRS: Reg. 1.469-2(f)(6) – The Nuanced Relationship Between...
Back to my friends that I previously wrote about who misunderstood passive activity and material participation. They are a married couple filing jointly and own a very successful business together...
View ArticleCan You Establish a SEP Plan if you are a Sole Proprietor? What if that Sole...
Regardless of their nature or topic matter, off beat questions are one of the spices of life. When it comes to the realm of taxation generally speaking the answers frequently distill down to – it...
View ArticleBusiness Taxes Due Next Week – AVOID PENALIZATION – File An Automatic...
The Business and Partnership Tax deadline is coming up fast! Don’t sweat it! File IRS Form 7004 to apply for Automatic Extension of Time to File Certain Business Income Tax. If you happen to be...
View ArticleDefining Small Employer with Regards to Offering Health Insurance
Many business owners of all sizes have been posting to this blog lately with concerns about offering minimum essential health insurance coverage for their employees. It is indeed a complex topic full...
View ArticleWhy to Revoke An S Election and How to Do It – Internal Revenue Code Section...
Many entrepreneurs get caught up in selecting the “most appropriate business structure” – particularly people planning to conquer the moon right out of the gate. If this is you beware as business...
View ArticleIncome 54: Nonresident Partners and Shareholders of Partnerships and S...
The Colorado Department of Revenue has finally revised its guidelines in FYI Income 54 regarding people who do not live in Colorado but are partners and/or shareholders of partnerships and/or S...
View ArticleBusiness Entity Selection and the Tax Consequences of Converting
For this post Brandon Rains, founder of the Rains Laws Firm and an expert on business formation espouses his observations about business structure changes and I address the income tax reporting...
View ArticleDefending Against Alter Ego Allegations
What is an "alter ego" allegation? Aside of course being one of several nuanced yet distinct stages of intoxication, when it comes to the IRS it seems from my perspective that there are several...
View ArticleUse IRS Form 8082 to Report An Incorrectly Issued K1
This post address how to use IRS Form 8082 to report an incorrectly issued K1. The lesson learned is that you always start by requesting in writing that a corrected K1 be issued. I've been working a...
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What is an FTE? What is a Seasonal Employee?
What is an FTE? What is a Seasonal Employee? Read more › The post What is an FTE? What is a Seasonal Employee? appeared first on John R. Dundon II, Enrolled Agent.
View ArticleWhat is the best Business Structure to form If Any?
What I love most about Colorado, more than the 300+ days of sun every year and the glorious rocky mountains, are the people. For the most Coloradans are risk taking job creators, starting new...
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Defining Passive Activity Between Spouses – Beyond the Bedroom: What Is...
Defining Passive Activity Between Spouses - Beyond the Bedroom: What Is Material Participation? Ha! One would imagine this is the script to a low budget B-rated film by the title, it is not. But if it...
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