Basis Archives - John R. Dundon II, Enrolled Agent

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Basis

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29 Jun The Significance of Stepped Up Basis in Estate Planning IRC 1014

Posted at 00:00h in Stepped Up Basis, Basis, Cost Basis, Death, Estate Tax, Generation Skipping Transfer Tax, Gift Tax, Tax planning, Trusts

According toÂ Internal Revenue Code Section 1014Â the basis of property acquired from a decedent is the fair market value of the property at the date of the decedentâ€™s death.Â In an environment of inflating asset prices this usually means that the beneficiary experiences stepped up basis...

11 Mar Business Taxes Due Next Week – AVOID PENALIZATION – File An Automatic Extension Request TODAY – IRS Form 7004

Posted at 00:00h in Basis, Business Expense, Business Income, Colorado Department of Revenue, Corporation, Cost Basis, Extension, Partnership, Penalty, Sub-chapter S, Tax Deductible Expenses, Tax Guidance & Preparation, Taxable Income

The Business and Partnership Tax deadline is coming up fast! Donâ€™t sweat it! File IRS Form 7004Â to apply for Automatic Extension of Time to File Certain Business Income Tax. If you happen to be compelled, feel welcome to check out the instructions for IRS Form 7004. If you...

19 Jan Final Tangible Property Regulations Necessitate that Many Businesses Apply for Change Of Accounting Method: IRS Form 3115; Rev Procs 2015-13 & 2015-14

Posted at 00:00h in Accounting Method, Asset Classification, Basis, Business Expense, Capital Gain, Capital Loss, Cost Basis, Cost Segregation, Deductible Expense, Depreciation, Tax Guidance & Preparation

Back in June 2014 I blogged about the new IRS Regulations governing tangible personal property. These regulations prompted a vigorous debate over the last 7 months between the most astute students of the US Tax Code as to what constitutes the need to file IRS...

11 Dec Take Care Closing Down An LLC – IRC 752 – Treatment of Certain Liabilities

Posted at 00:00h in Accumulated Adjustment Account, Basis, Cost Basis, Limited Partnership, LLC, Partnership, Small Business, Tax Deductible Expenses, Uncertain Tax Position

A taxpayer reading one of my blog posts from Ishpeming, Michigan was compelled to call me today. She was a member in a Limited Liability Company (LLC) who had ultimately resigned herself to abandoning her interest in the LLC. In advance of the call she faxed...

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07 Oct How to Calculate Basis of a Primary Residence Converted to Rental Property [Reg. §1.168(i)-4(b)] [Reg. §1.165-9(b)(2)]

Posted at 00:00h in Rental Real Estate, 1031 Exchange, Basis, Capital Gain, Capital Loss, Depreciation, Passive Activity, Tax Guidance & Preparation

How to Calculate Basis of a Primary Residence Converted to Rental Property [Reg. Â§1.168(i)-4(b)] [Reg. Â§1.165-9(b)(2)] can be a nuanced and complicated question to answer as it depends on a handful of specific facts and circumstances.Â Many people have built impressive residential real estate portfolios...

17 Jun IRC 1014 & the Significance of Stepped Up Basis in Estate Planning

Posted at 00:00h in Basis, Estate Tax

According to Internal Revenue Code Section 1014Â the basis of property acquired from a decedent is the fair market value of the property at the date of the decedent's death. This is often referred to as stepped up basis and it is profoundly significant for US...

09 Aug Transfers of Property to a Corporation Internal Revenue Code Section 351

Posted at 00:00h in Basis, Capital Gain, Capital Loss, Self Employ, Small Business, Sub-chapter S, Tax Guidance & Preparation

According to IRC 1001 you generally recognize a gain or a loss when you sell or dispose of property. However, there are a number of exceptions, specifically transfers of property to a corporation. For example under IRC 351a no gain or loss is recognized if property...

07 Jun Tax Treatment of IRC 351 Nonrecognition Transactions aka Corporate Reorganizations

Posted at 00:00h in 1031 Exchange, 1231 Exchange, Basis, Capital Gain, Capital Loss, Like/Kind Exchange, Sub-chapter S, Uncertain Tax Position

Check out the following 5 lessons I learned this week regarding IRC 351 nonrecognition transactions: 1. The basis assigned to stock received generally is the same as the basis in the property transferred to the corporation. If however you also receives boot from the corporation your...

04 Jun Tax Treatment of Liabilities Assumed by a Corporation IRC 357 – What is Boot?

Posted at 00:00h in Abusive Tax Shelter, Basis, Boot, Capital Gain, Capital Loss, Cash Transaction, Deductible Expense, Distributions, Tax Guidance & Preparation

According toÂ IRC 357(a)Â if property transferred to a corporation in an IRC 351 nonrecognition transaction is subject to a liability, the assumption of that liability by the corporation generally is not treated as taxable "boot" for purposes of determining the amount of any taxable gain on...

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27 Feb How to calculate stock and loan basis in an S Corp for tax purposes

Posted at 00:00h in Basis, Corporation, Cost Basis, Depreciation, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation, Tax Problems & Requests

How to calculate stock and loan basis in an S Corp for tax purposes?Â Or as my hippie friends call it, "The secret of the Golden Flower."Â Seemingly elusive and yet oh so real. If you are a shareholder of an SÂ corporation you are responsibleÂ for keeping...