IRC § 1031 Tax Deferred Exchange Overview - An IRC §1031 tax deferred exchange allows owners of real estate to defer the recognition of a capital gains tax they would have recognized when they sold their property so long as they reinvest in other "like-kind" real property.Tax deferred exchanges are not new – they have been available in one form or another since 1921, and in its current format since 1986.Exchanging allows...more
The Tax Franchise Opportunity a Proven Winner Among Hispanics If you've always dreamed of owning your own business—but haven't found the right fit or the right financing—Tri Tax could be a dream come true. Founded by Carlos Marquez as a way to help people in his own neighborhood, Tri Tax continues to assist the Hispanic community—not only by offering affordable, professional tax preparation services, but by offering something...more
Property Exchanges Defer Taxes Learned Hand earned the distinction as the "tenth Justice of the Supreme Court" by penning opinions that would be quoted by lawyers and laymen alike. In 1934, Circuit Court of Appeals Judge Hand wrote one of his more famous though often misquoted opinions in Helvering, Commissioner of Internal Revenue v. Gregory, 69 F.2d 809 (2d Cir. 1934), aff'd, 293 US 465 (1935):We agree with the [United States Board of Tax Appeals] and the taxpayer that a transaction, otherwise within an exception of the tax law, does not lose its immunity, because it is actuated by a desire to avoid, or, if one choose, to evade, taxation. Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.Since 1921, one of the best ways to avoid, or more properly, defer taxes when selling property subject to a capital gains tax, is to effectuate a properly structured tax deferred exchange under 1031 of the Internal Revenue Code (IRC) of 1986, as amended. And although property owners and their advisers are becoming...more
Payroll Taxes - What Wages Are Subject to Alabama Withholding? State withholding tax is the money an employer is required to withhold from each employee's wages to pay the state income tax of the employee. The employer pays no part of the tax, but is responsible for collecting and remitting the tax withheld.In general all wages...more
Income Tax Mistakes to Avoid I try to make sure my clients are getting all of their tax forms filled out properly, as a bankruptcy lawyer I feel that is a responsibility of mine. You probably know what to expect if you're filing your tax return after bankruptcy (and even if you're not expecting a refund).You want to make sure you...more
Pharmacy Transactions and Capital Gains Tax in Nevada One strategy, but not the only one, that is currently available to assist the capital gains tax burden is the Charitable Remainder Trust (CRT). CRT's are legally described as Split Interest Trusts. The term is used because of the blend of philanthropic motivations and personal financial aspects. CRT's can decrease tax liabilities, increase a business owner financial wealth, and at the same time provide a vehicle for charitable giving.CRT's are formed when a person donates assets to this special type of Trust. Assets can be cash, stocks, real estate, etc. The CRT is set up for a set period of time, or until the donor's (pharmacy owners) death. An individual (the Nevada pharmacy owner or family member) can receive income from the Trust's assets. Upon the donor's death the assets go to a designated charity. Part of the income from the Trust can be used to purchase life insurance on the donor. The proceeds of the life insurance go to a designated heir(s) who receive the money without incurring any estate tax liability.CRT's are a tax-planning tool and professional financial planners are using CRT's to maximize their...more
The importance of year-round tax planning You did it! You successfully turned in your tax return by this year's deadline. That means there's no need to think about taxes for another year, right? In fact, the Michigan Association of...more
Watch for Tax Preparer Fraud Tax preparer fraud has, in recent months, come to the IRS' attention. More of the federal government's concentration has relocated to handling this presently unwatched trade. In recent years, an industry...more
Appeals in Income Tax in India The tax authorities make use of 'best judgment assessment' and pass orders according to the case. When such powers are used by the authorities, it is likely to generate grievances among the tax payers. In...more
August 2008 Tax Update Although business and commercial properties occupy the majority of 1031 exchanges there are still a fair number of exchanges which involve one and two family residential properties. This year a pair of laws...more
College Scholarship Options for Tax Week 1. Sallie Mae Finance American Dream Scholarship - Now the United Negro College Finance has teamed with the Sallie Mae Finance to provide scholarships to all African American learners coming...more
Heavy use tax forms This tax is levied with sole purpose of using the funds collected from the tax for construction and maintenance of highways.Now let us discuss the critical details about form 2290 under the following topics:IRS Form...more