Blog

Understanding how long the IRS has to audit your tax returns can alleviate some anxiety about potential audits. This period, known as the Assessment Statute Expiration Date (ASED), dictates the maximum time the IRS has to audit and assess taxes. After this period, any tax assessment made is considered an overpayment that must be credited […]

A buy-sell agreement is crucial for co-owned businesses as it provides structure and protection in various scenarios, whether starting a new venture or inheriting an existing business. This legal contract facilitates the orderly transfer of ownership interests when specific events, such as death, disability, or retirement, occur among co-owners.  A buy-sell agreement turns business ownership […]

Section 119 of the Internal Revenue Code offers businesses the opportunity to provide employees with tax-free meals and lodging under specific conditions, offering both financial benefits and compliance requirements. Here’s a comprehensive overview of the rules and implications involved: Under Section 119, tax-free treatment means employees pay no federal income tax on the value of […]

A buy-sell agreement is crucial for co-owned businesses as it provides structure and protection in various scenarios, whether starting a new venture or inheriting an existing business. This legal contract facilitates the orderly transfer of ownership interests when specific events, such as death, disability, or retirement, occur among co-owners.  A buy-sell agreement transforms a business […]

Here’s a summary of three common scenarios when shutting down a partnership and their federal income tax implications:   Scenario 1: One Partner Buys Out the Other Partner(s) for Cash: In this scenario, one partner buys out the others and continues the business alone. The withdrawing partner will realize a taxable gain or loss from […]