Bitcoin Tax Reporting Not Subject to FBAR Penalties

Bitcoin Tax Reporting Not Subject to FBAR Penalties
Good news, Bitcoin lovers! Although the IRS has seriously hobbled Bitcoin’s usefulness as a legitimate form of currency, it won’t charge you a $100,000 penalty for not reporting it correctly! Well, for 2013, at least. The Report of Foreign Bank and Financial Accounts (FBAR, or  FinCEN Form 114) is an informational form that must be ...

American Atheists, Inc. v Shulman Fizzles

American Atheists, Inc. v Shulman Fizzles
I get it. Life isn’t fair. Filing taxes is the worst. I can understand American Atheists, Inc.’s frustration that they’re filing a return as a non-profit organization while the church down the street has no such obligation. Just like when someone has that toy that you want, it’s human nature to want it too. But when, instead ...

Australian Carbon Tax Likely to Melt Away

Australian Carbon Tax Likely to Melt Away
I was planning to write something helpful today, but got sidetracked by a Google Alert talking about the likelihood that the Australian Carbon Tax will be repealed come July 1st. With the United States and much of Europe still fighting to implement a carbon tax, I wanted to know the rationality behind getting rid of one already in ...

Small Business Depreciation and Section 179 Expense

Small Business Depreciation and Section 179 Expense
(NOTE: This is a continuation of a case study looking into tax implications of starting up a small business. This particular article deals with tax deductions for small business. Click here to go back to the start of the case study.) Amy, in getting her business moving along, decided to pick up a new tablet to show off all ...

What is Schedule C Income

What is Schedule C Income
(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) With Amy’s nail wrap business established as a sole proprietorship filing a 1040 Schedule C, she needs to figure out what makes up her Schedule C Income. So what is Schedule ...

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 ...

Best Business Entity Summary

Best Business Entity Summary
Summary (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) Obviously I skipped over (or perhaps missed) some pieces here, especially on the legal side. In general, your options as an individual starting up a company for tax purposes are to have your ...

C Corporation Advantages and Disadvantages

C Corporation Advantages and Disadvantages
Entity Type 4: C Corporation (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) If you read the section on S Corps, you can probably guess why these are called C Corporations (C Corps). When most people talk about a corporation, this is ...

S Corporation Advantages and Disadvantages

S Corporation Advantages and Disadvantages
Entity Type 3: S Corporations (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) An S Corporation (S Corp) gets its name from being taxed under Subchapter S of the Internal Revenue Code. It is by far the most popular entity type, with ...

How is a Partnership Taxed

How is a Partnership Taxed
Entity Type 2: Partnership & LLCs taxed as Partnerships (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) For many people just starting out, a partnership is going to end up being impractical. For Amy’s situation, she’s planning on selling these nail wraps ...