When a shareholder terminates part or all of their interest in an S corporation, IRC Section 1377(a)(2) allows the S corporation to elect to have two separate periods within a taxable year. This treatment is often referred to as ‘closing the books.’ Generally, determination of income and expenses is on … Continued
Oklahoma Parental Choice Tax Credit Program
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On May 25, 2023, Oklahoma legislation passed the “Oklahoma Parental Choice Tax Credit Program,” which will go into effect in the 2024 tax year. This program provides a refundable tax credit ranging from a minimum of $5,000 to a maximum of $7,500 per child per year for qualified expenses, depending … Continued
Oklahoma Tax Credit for Homeschoolers
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On May 25, 2023, Oklahoma legislation passed the “Oklahoma Parental Choice Tax Credit Program.” This Program will go into effect in the 2024 tax year. Any student who is eligible to enroll in a public school in the state of Oklahoma will qualify, however, the child must be four years … Continued
Retirement Plans Startup Costs Tax Credit
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The SECURE Act has increased the 401(k)-tax credit for business who start 401(k) benefit plans. Currently, the Secure Act allows eligible employers to qualify for a minimum of $500 tax credit and a maximum of $5,000 for each of the first three years of your plan’s existence. You qualify to … Continued
Typically, nonrecourse loans are not considered at risk for purposes of the IRC §465 at-risk limitations. An exception to the rule does exist though. When qualified nonrecourse financing is secured by real property used in the activity of holding real property, it can be considered at-risk. Personal property or services … Continued
WASHINGTON — The Internal Revenue Service today warned employers to be wary of third parties who are advising them to claim the Employee Retention Credit (ERC) when they may not qualify. Some third parties are taking improper positions related to taxpayer eligibility for and computation of the credit. These third … Continued
Qualified Small Business Stock (QSBS) Exclusion
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The qualified small business stock (QSBS) exclusion is a tax benefit that applies to eligible shareholders of a qualified small business (QSB). It was originally enacted in 1993 as a partial exclusion, and was later expanded to a 100% exclusion as part of the Small Business Jobs Act in 2010. … Continued
Notice 2022-36 provides systemic penalty relief to taxpayers for certain civil penalties with respect to 2019 and 2020 returns. The relevant penalties will be waived or, to the extent previously assessed, abated, refunded, or credited, as appropriate. Notice 2022-36 will be in IRB: 2022-36, dated 09/06/22. Notice 2022-36
Newlywed’s Tax Agenda
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Marriage may change certain tax-related issues, so it is important for newlyweds to understand the impact of marriage on their taxes and what needs to be done after the ceremony to ensure a smooth transition into married life. Newlyweds should consider the following tax-related issues after marriage: Name and Address … Continued
IRD Tax Deduction Income owed to a decedent at the time of their death is known as income in respect of a decedent (IRD). IRD assets may be a salary, IRA distributions, or unpaid interest and dividends, among other things. Although IRD assets are normally taxed at the ordinary tax … Continued