Single Member LLC Tax Structure

Single Member LLC Tax Structure
Entity Type 1.5: Single Member LLC (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) A Single Member LLC tax structure (appreviated as SMLLC) isn’t really a separate filing, so it doesn’t count as one of our entities. For Federal Tax purposes, it’s ...

Advantages and Disadvantages of a Sole Proprietorship

Advantages and Disadvantages of a Sole Proprietorship
Business Entity Type 1: Sole Proprietorship (Part of a series looking at the tax overview of different entity types. Click here to go back to the start) Have you ever fallen into a business? You know, like you start selling crap on Craigslist and realize, “Hey, I actually made money on that vintage My Little ...

What is the Best Business Entity for Tax Purposes

What is the Best Business Entity for Tax Purposes
(NOTE: This is part of a series walking through tips I’ve picked up for filing returns. Click here to go to the overview) After Amy decided on her great business idea of selling nail wraps, her first question for her accountant is what is the best business entity for tax purposes. Her ever-wise accountant gives her ...

Tax Medical Deduction

Tax Medical Deduction
(This is part of a series looking at various common 1040 questions. To go back to the summary page, click here) The Medical Deduction line on 1040 Schedule A is one of the most depressing tax deductions offered. Items that go in this line are your actual medical and dental expenses, not things like you HSA, ...

The M Sheets – Italian Taxes Trump Your Lamborghini

The M Sheets - Italian Taxes Trump Your Lamborghini
It’s odd actually having time to write on this site again. In the process, I’ll be trying a few new things and see what sticks, if anything. So far I’ve been mostly pleased with the layout and formatting and such, though there are some items that I still need to get fixed (the ads are ...

Tax Treatment of Prepaid Expenses

Tax Treatment of Prepaid Expenses
Prepaid Expenses, as the name implies, are items and services you’ve paid for but not yet received. One of the most common prepaid expense is insurance, where policies are paid for up front then, generally, run for a year. Tax treatment for prepaid expenses can be tricky, especially since the rules for deducting prepaid expenses ...

Is Caterpillar hiding $2.4 billion in taxes?

Is Caterpillar hiding $2.4 billion in taxes?
News reports have started flying about that Caterpillar has managed to subvert more than $2.4 billion dollars in US tax revenue into Switzerland. The report is part of a Senate subcommittee on investigations under chairman Carl Levin, a Michigan Democrat. To quote the Guardian: The congressional investigation was sparked by a whistleblower who sued Caterpillar ...

How to Value Closely Held Stock

How to Value Closely Held Stock
The IRS considers virtually anything of value as fair game for taxes. Many people get caught up in cash as taxable that they forget that the collector’s edition McDonald’s 49ers Happy Meal Tie-In your estranged uncle left for you on his death could also potentially be subject to tax. It also means that Taxpayer Teresa ...

Restricted Stock Tax

Restricted Stock Tax
Restricted Stock might sound like an exotic barnyard dance club, but it’s actually a form of deferred compensation. Restricted Stock is different from Stock Options since stock is actually received, rather than a potential right to buy some. I’ve seen this with companies paying outside Board of Director members with Restricted Stock, which helps the ...

Taxes and Politics

Taxes and Politics
On election night, my overly plush Itasca-resort bed refused to drift me off to sleep. External factors competed vigorously for my sanity: too many pillows, too few blankets, a heater that only pretended to work, looming deadlines, and, of course, election results. So I decided to merge work and politics by huddling into copious layers ...