Understanding Distributions in Excess of Basis
Distributions from an S corporation are tax-free up to stock basis. Any excess may be taxable as dividends or capital gains.
March 21, 2025
Tax
Case Study: Understanding S Corporation Distribution Determination
S corporation distributions impact taxes based on earnings layers and stock basis. ABC’s case shows tax-free and taxable dividend allocations, emphasizing compliance.
March 18, 2025
Understanding the Child and Dependent Care Credit: A Smart Tax-Saving Strategy for Families
Eligible taxpayers can claim the Child and Dependent Care Credit for work-related care expenses, reducing taxable income and easing financial burdens.
March 18, 2025
Understanding Distributions: Analyzing Tax Implications for Business Owners
S corporation distributions can be tax-free if within a business owner’s stock basis. Exceeding basis triggers taxable gains. Understanding tax rules prevents unnecessary liabilities.
March 14, 2025
How Nvidia’s CEO Jensen Huang is Legally Avoiding Billions in Estate Taxes
Nvidia’s Jensen Huang uses legal estate tax strategies like IDGTs, GRATs, and DAFs to shield billions, raising fairness questions.
March 14, 2025
Breaking News: FinCEN Reinstates Beneficial Ownership Reporting Deadlines
FinCEN reinstates BOI reporting deadlines—businesses must comply by March 21, 2025, or face severe penalties. Stay informed and act now!
March 12, 2025
Reasonable Compensation for C Corporations: What You Need to Know
C corporation owners must ensure reasonable compensation aligns with services rendered, avoiding IRS scrutiny, dividend reclassification, and tax penalties.
March 10, 2025
Important Tax Deadlines: March 10 & March 17 – What Employers and Employees Need to Know
Stay ahead this tax season! Learn key deadlines for tip reporting (March 10) and tax preparation (March 17) to avoid penalties.
March 7, 2025
Understanding Reasonable Compensation: The Watson Case Study
The Watson case underscores the IRS’s focus on reasonable compensation in S corporations, highlighting the risks of underpaying salaries to shareholder-employees.
March 5, 2025
Many 2017 Tax Act Changes Scheduled to Expire After 2025
The 2017 Tax Cuts and Jobs Act reduced tax rates and deductions, but major provisions will expire after 2025, reversing many benefits.
March 5, 2025
