| As discussed in prior installments of Did You Know, Section 1202 of the tax code makes the gain on the sale of certain corporate stock nontaxable. This is not a deferral. It will never be taxed in the future. One of the many requirements for stock to qualify for this treatment is that it must be issued by a C corporation (not an S corporation). Unfortunately, if you have an S corporation, simply terminating its S corporation status (i.e., converting |
Content by Dave Bartoletti, Jim Duffy and Nathan Hagerman
As you may be aware, the Supreme Court decision in South Dakota v. Wayfair in 2018 substantially expanded the ability of states to require out-of-state sellers to collect and remit sales tax on sales into that state. Many companies that make sales into multiple states have found it challenging to maintain compliance with the sales tax requirements for all of the states into which they make sales. These liabilities have taken
Continue Reading Did You Know a potential liability for failure to collect sales tax may not be covered by R&W insurance?
We are all familiar with common business structure in which the operating business is owned by the individual(s) through one entity, the real estate is owned by the same individual(s) through a separate entity and the operating business pays rent to the real estate entity. This is a great method of protecting the value of the real estate from the operating risks of the business. It does however create a self-rental situation under the Internal Revenue Code.
Under the self-rental
Continue Reading Did you know under the ‘self-rental’ rule, income from rental activity is deemed active income and losses are deemed passive?