The Tax Court has held that cash disbursements from a closely-held company to its sole shareholder, in addition to payments for a variety of expenses, resulted in constructive dividend income to the shareholder. The taxpayers were further found liable for…
Introduction Recently, The Center dealt with a situation where a corporation was keeping insufficient records. While this may sound like a no-harm, no-foul prospect, having little or no records in this case became a dire situation. In fact, the court…
Q: I am interested in contributing money to my Individual Retirement Account for 2009. Can I still contribute money for the 2009 tax year and if so, when do I have to do this? A: Taxpayers have until April 15,…
Many professional M&A advisors display one or more professional designations behind their name, or in their signature block, in addition to the abbreviations for the college degrees they may have earned. While some college degrees are familiar to many business…
The Tax Court held that a settlement payment received by an S corporation for a trade secret misappropriation lawsuit was taxable as ordinary income. In the case, the corporation entered into a settlement agreement with another company. The S corporation…
Introduction If you live in the U.S. you are well aware of the economic situation. According to The Beige Book, published by The Federal Reserve, nearly every sector of industry and agriculture and every geographical region of the country is…
Q: I just opened a business and formed it as a limited liability company (LLC) under my state’s laws. For federal tax purposes, how do I classify my LLC? A: An LLC may be classified for federal tax purposes as…
This is the fourth in a series of articles outlining the steps any business owner can take to maximize the value of his/her business when it comes time to sell. If you’d like to see previous articles in this series,…
The Tax Court has ruled that a son’s work and aid in a business owned by his parents did not result in taxable compensation, but were instead construed to be a gift. The taxpayer in question worked and aided his…
Introduction The Center recently received a call regarding situations involving minority share stocks and lack of marketability. When businesses are valued, whether that reason is for a business sale, exit planning, or another reason, generally the owner likes to see…
