What is Capital Gains Tax? How does Capital Gains Tax work? What are the current Capital Gains Tax rates? Can capital gains bump you into a higher tax bracket? Yes, capital gains can bump you into a higher tax bracket. Capital gains are taxed at a lower rate than ordinary income, but they are still … Read more
A “fraternal organization” is a society, order, or association which: 1. Has a fraternal purpose; 2. Has a lodge system; 3. Makes use of ritual or ceremony; 4. Is composed of physically fit men over the age of 18; and 5. Has a representative form of government. Do nonprofit organizations pay taxes? No, nonprofit organizations … Read more
A cafeteria plan is a type of employee benefit plan that allows employees to choose from a menu of benefits, including cash or deferred compensation, health insurance, and other benefits. The term “cafeteria plan” comes from the fact that employees can choose from a variety of benefits, like they would choose from a menu in … Read more
Limited Partnership: Advantages and Disadvantages, How to Create One Can limited partners deduct losses? Yes, limited partners can deduct losses. The deduction is limited to the amount of the partner’s investment, however. What are the cons of limited liability partnership? The main disadvantage of a limited liability partnership (LLP) is that, unlike a traditional partnership, … Read more
Limited Liability Company Structure and Benefits Defined. An LLC is a limited liability company, which is a business structure that offers personal liability protection and flexibility when it comes to taxes and management. LLCs are popular among small businesses and entrepreneurs because they are relatively easy to set up and offer more protection than a … Read more
What is the Constructive Sale Rule, Section 1259? What is a constructive sale price? A constructive sale price is the price of an asset that would be received if the asset were sold on the open market. The constructive sale price is used to determine the amount of capital gain or loss that would be … Read more
. Publication 972: Child Tax Credit Do I have to pay taxes on child tax credit 2021? As of 2021, you do not have to pay taxes on child tax credit. How much do you get for dependents on taxes 2021? The amount of money you get back from the government for having dependents on … Read more
The IRS field audit is an examination of a taxpayer’s records and financial information by an IRS agent. The purpose of the audit is to determine whether the taxpayer has reported their income and expenses accurately, and to identify any areas where the taxpayer may owe additional taxes. During the audit, the IRS agent will … Read more
A correspondence audit is an audit that is conducted by mail. The IRS will send a letter to the taxpayer informing them that they are being audited and requesting specific documentation. The taxpayer will then have to mail back the requested documentation. What is a correspondence exam? A correspondence exam is an examination of a … Read more
What is a Corporation? A corporation is a legal entity created by a group of individuals, usually for the purpose of carrying on business. The key feature of a corporation is limited liability, which means that the shareholders are not personally responsible for the debts of the corporation. How to Form a Corporation The process … Read more
