Cancellation of Debt Income

As a store owner, you are well aware of the challenges of owning your own business.  Sometimes unfortunate circumstances beyond your control can result in financial hardship.  Although uncomfortable to think about, what happens when a store owner has trouble paying their debt and must negotiate a full or partial cancellation of Debt (“COD”)?  That is the topic of this segment of our Tax Update.

Presidential Candidates’ Tax Plans (Part III)

In last week’s Tax Update, we examined Donald Trump’s tax proposals.  This week we will look at Bernie Sanders’s tax proposals.  As we write this, Hillary Clinton has reached the required number of delegates to obtain the Democratic nomination. Ms. Clinton is the presumptive nominee, barring a switch of “Superdelegates” at the Democratic convention away from Ms. Clinton to Bernie Sanders.  So why are we devoting a whole column to Bernie Sanders’s tax proposals? The reason is simply that Mr.

“Obamacare” Refresher and New Deadlines

You may have heard that the IRS recently extended certain filing deadlines.  We thought this might be a great time to provide a brief refresher of the Affordable Care Act as it might pertain to your store, and a discussion of these new deadlines.
First, let’s start with a quick refresher.  The Affordable Care Act is a set of health insurance reforms which are to encourage businesses to provide health care coverage to their employees.  More specifically, for those employers with 50 or more employees, the reform, from March 2010, brought with it certain tax provisions.

Buy-Sell Agreements

Whether you operate your store as a sole proprietorship or you have co-owners, succession planning should be an integral part of your store’s overall business strategy.  One key tool in implementing a succession plan is the use of Buy-Sell Agreements.
A Buy-Sell Agreement is a strategic plan which sets out the steps that will occur in the event you or a co-owner die, are incapacitated, retire, quit or are involuntarily forced to exit the business.

Debt Basis in Partnerships and S-Corporations

As a business owner, you are well aware that the decision of which legal structure to hold your business in can have far-reaching consequences.  From a tax perspective, the consequences may include your ability to deduct tax losses from the business on your personal tax return.  This article compares the manner of computing the tax basis of interests in partnerships versus S corporations.  These two entity types are very similar yet in certain key ways very different when it comes to taxes.


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