Using R&D credits to reduce payroll taxes: An overlooked opportunity for startups
This article discusses who qualifies to take the credit, how to make the election, the calculation and allocation of the credit, and how to report it.
Passthroughs
Amended returns satisfy statement-of-inconsistency requirement
A taxpayer’s amended returns sufficiently apprised the IRS of inconsistencies between the amended returns and the returns filed by the bankruptcy trustee of his wholly owned S corporation.
Converting from an S corp. to a C corp.
This item discusses the many tax ramifications of converting.
Changing from cash to accrual accounting after revoking an S election under TCJA
A terminated S corporation may remain a cash-basis taxpayer if its average gross receipts for the three previous tax periods are less than $25 million.
Filing a timely S election
Many factors must be considered when electing S status for a new corporation or converting an existing C corporation to ensure a timely election.
A uniform state approach to the new federal partnership audit regime
Broad state adoption of the model statute developed by the AICPA in partnership with other major stakeholders will provide greater uniformity and increased compliance.
Shareholder cannot unilaterally change an S corp.’s election
Regulations explicitly require elections to be made by the corporation, and shareholders themselves cannot change these elections.
Lessee cannot take deduction for facade easement contribution
Because facade easements must be protected in perpetuity, a leaseholder was not allowed to claim a deduction for contributing an easement to a not-for- profit preservation corporation.
Prop. regs. restore allocation of partnership liabilities in disguised sales
Disguised sale occurs when a partner(s) engages in a transaction that, when viewed together with a partnership, involve property and are characterized as the sale or exchange of property.
Loan guarantee does not increase S corp. shareholder’s debt basis
This item discusses how a back-to-back loan is a viable option for shareholders who want to increase their debt basis in an S corporation.
Revisiting the application of Sec. 280G on partnerships and LLCs
Depending on how a taxpayer’s ownership is structured, the sale of a partnership interest can have a Sec. 280G impact on partners or members that are C corporations.
S corporation redemptions: Navigating Secs. 302 and 301
This discussion sheds light on these questions with an overview of the applications of Secs. 302 and 301 to S corporation redemptions.
Loans between members and LLCs
A loan from an LLC member to the LLC must be structured carefully to ensure it is respected as bona fide debt.
Rules determine who can be a partnership representative under new audit regime
The IRS finalized proposed regulations under Sec. 6223 on the procedures for designating a partnership representative and the authority of the partnership representative under the centralized partnership audit regime.
Filing ‘optional’ partnership return costly
Married couples in business together can elect qualified joint venture status to avoid partnership filing requirements.
S corporation shareholder cannot take FICA tip credit
An S corporation shareholder cannot unilaterally change an S corporation’s tax election in order to claim FICA tip credits.
IRS withdraws partnership regs. on disguised sales
The IRS announced that it was withdrawing temporary regulations on the treatment of partnership liabilities for disguised-sale purposes and proposing to reinstate the old rules.
Potential pitfalls of state income tax incentives for passthroughs
The benefit of a state income tax credit, if it is earned in a state where the owner is not resident, is often lost.
Final regs. govern who can be a partnership representative
The IRS finalized proposed regulations under Sec. 6223 on the procedures for designating a partnership representative and the authority of the partnership representative under the centralized partnership audit regime.
Lender Management LLC and its impact on investment partnerships
Lender Management contended that its activities met the test for an active trade or business under guidelines.
