What does it mean to materially participate?

What does it mean to materially participate?
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. Click here to go back to the start) Considering how many items on a tax return are foreign concepts even after having prepared tax returns for a number of years, the IRS’s apparent need for scare quotes on ...

The Schedule C 1099 Question

The Schedule C 1099 Question
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. Click here to go back to the start) While running her nail wrap business, Amy makes several payments, including some to the local office supply store for various products, one to her city to reserve a table at a ...

Cash versus Accrual Accounting

Cash versus Accrual Accounting
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. Click here to go back to the start) After talking to her accountant about what business entity to use for tax purposes, Amy decides that she’s going to start with a self proprietorship until business takes off. So ...

We’ll Find Out What’s In It…I Think

We'll Find Out What's In It...I Think
The Patient Protection and Affordable Care Act, better known as Obamacare, just can’t stay out of the news. Obviously the biggest update is the Supreme Court’s decision to review the law, though I have a feeling that even if they rule 9-0 in favor of the thing it’s just going to keep on coming up ...