09 Feb Business Entity Selection and the Tax Consequences of Converting
Business Entity Selection and the Tax Consequences of Converting...
Sole Proprietor
08 Jun Why to Revoke An S Election and How to Do It – Internal Revenue Code Section 1362(d); Reg § 1.13626(a)
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in Employment Tax, Entity Classification, Paying Taxes, Payroll Tax Problems, Penalty, Small Business, Social Security, Social Security Tax, Sole Proprietor, Start up costs, Sub-chapter S, Tax Abuse, Tax Guidance & Preparation, Tax Problems & Requests
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 structure is a determination that is best driven out of operational efficacy. Why? Most all new...
09 Jan Can You Establish a SEP Plan if you are a Sole Proprietor? What if that Sole Proprietorship Had Historically Passive Income?
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in Business Expense, Deductible Expense, Employee Business Expense, Employment Tax, Partnership, Passive Activity, Payroll Tax Problems, Self Employ, Sole Proprietor, Sub-chapter S, Tax Deductible Expenses, Unemployment
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...
29 Oct What is the best Business Structure to form If Any?
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in Business Expense, Business Income, Business Structure, Capital Gain, Capital Loss, Employment Tax, Limited Partnership, LLC, Net Operating Loss, Partnership, Self Employ, Small Business, Sole Proprietor, Start up costs, Sub-chapter S, Tax Guidance & Preparation
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...
26 Jun A Brief Introspection of Repair vs. Improvement: IRS Revenue Procedures 2014-16 and 2014-17
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in 1031 Exchange, Business Expense, Depreciation, Rental Real Estate, Sole Proprietor, Tax Abuse, Tax Guidance & Preparation, Tax Problems & Requests
That's right Y'all this is another one of those quite game changers for owners of tangible property concerned about keeping the IRS at bay by actually adhering to the specific US Tax Code and subsequent IRS Revenue Procedures. My apologies for being so brazen but I more...
04 Jun IRC 7216 Disclosure Issues to Consider When Selling Your Practice – Start With A Tight NDA
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in Disclosure, Enrolled Agent, Partnership, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation, Tax Preparer
As many of you know who follow this blog I have served in the past as the President of the Colorado Society of Enrolled Agents, a state affiliate chapter of the National Association of Enrolled Agents. In this capacity I have been blessed with the...
27 Feb How to calculate stock and loan basis in an S Corp for tax purposes
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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? Or as my hippie friends call it, "The secret of the Golden Flower." Seemingly elusive and yet oh so real. If you are a shareholder of an S corporation you are responsible for keeping...
07 Jan Withholding Tax for Social Security Goes to 6.2% of Wages
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in Employment Tax, FICA, Paying Taxes, Payroll Tax Problems, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Guidance & Preparation, Tax Problems & Requests
Contrary to the manufactured 'news' dribbling out of the main stream media to sell advertising, last week the IRS published updated employer's withholding guidance clearly stating that employers are to now withhold Social Security tax at the rate of 6.2 percent of wages rather than the previous rate of...
19 Nov The Self-Employment Contributions Act
The Self-Employment Contributions Act (SECA) imposes two taxes on self-employed individuals: an old-age survivors and disability insurance tax (OASDI) commonly referred to as Social Security tax, and a hospital insurance or Medicare tax (HI). These SECA taxes apply to net earnings from self-employment above a $400 minimum for the tax...
27 Mar Start Up Expenses
The two major start up business expenses are the costs to organize and the costs of normal business expenses incurred prior to the beginning of business or the point where the business is ready to receive revenue. Sole proprietors do not normally have costs to organize because a business...