Coming to you from the procedural trenches of the tax compliance industry, today's post is about the sharing economy - tax war stories. Most recently I had the privilege of leading a group discussion about the tax implications of this ubiquitous 'Sharing Economy' business model we...
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 depends. These two questions were asked of me on my last...
According to 26 U.S. Code § 280F - Limitation on depreciation for luxury automobiles the first year's depreciation expense for a newly procured vehicle should be prorated over the tax year based on the in service date not to exceed the limitations spelled out in IRS...
The question of the moment is whether virtual currency is here to stay or simply a passing fad, the 8-track player of modern day finance.  IMHO the answer is probably a little of both. For sure private money is here to stay for a while at...
What I love most about Colorado, more than the 300+ days of sun every year and the glorious rocky mountains, are the people. Â For the most Coloradans are risk taking job creators, starting new businesses from scratch out of their garages and turning passions for...
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) determined without regard to any net negative adjustment for the tax year but not below zero. According to IRC 1368Â if...
A taxpayer came to me looking for a second opinion on how his company's 2011 and 2012Â IRS Form 1120-SÂ were prepared, signed and filed because the retained earnings reported on Schedule L was ($100,000) - as in negative - AND the Accumulated Adjustment Account (AAA) on...
I have another new client who is a day trader and wow is he good at it! Even though he has another job he makes so much more money as a trader that this ultimately is his primary vocation. The following are a few things...
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...
If you are an individual who buys and sells securities you may qualify as a “trader in securities,†for tax purposes. This post attempts to explain how traders must report the income and expenses from being in the trading business. First though it is important to...