If you owe the IRS taxes because of a forgiven debt. How is the final amount of income tax you owe calculated?

Income from the cancellation of indebtedness ("COI") is simply gross income, which is to say that it just increases your income overall. There is...

When a partner wants to cash out his share of the cash proceeds from property sale, is he liable for tax on 1031 exchange boot?

Since the partnership owns the property, only it can elect 1031 exchange treatment on the gain it recognizes on the sale of the property. If...

CAN SINGLE MEMBER LLC FORMED IN CALIFORNIA ENTER INTO VERBAL PARTNERSHIP WITH AN INDIVIDUAL. IF YES, HOW THAT CAN BE TERMINATED

My colleagues' answers are correct. It's not clear to me, though, whether the individual became a member of the LLC or whether the LLC and the...

I am the VP a company, we fired the controller for embezzlement and filed suit for damages. I personally reported the tax

The IRS has recently undergone some changes to whistleblower payments, including a sequester on the payment of rewards. Add to that that the IRS is...

What effect does owning 50%+ ownership of a partnership (by attribution) have on my ability to take partnership losses?

No, owning more than 50%, whether by attribution or otherwise, does not affect your ability to recognize the kinds of capital losses you're...

Selected as the best answer

Yes, you can do exactly as you propose. Doing so, however, will create a partnership for federal tax purposes such that rather than reporting your...

While my colleague Mr. Doland has the math right, there really isn't such a thing as "treasury stock" for LLCs. (I don't even think there's such a...

Can we stop filing federal and California state Sub S corporate business tax returns on a business that was closed in 2009?

The simple answer is, "Yes, you can stop filing." However, the corporation will continue to exist, and accrue the annual $800 fee plus penalties...

One of the members of a newly formed LLC has left the business. How does that effect what I file for income taxes?

If the other member's withdrawal was valid, then you're right: the LLC no longer qualifies as a partnership for federal income tax purposes and...

Can I file General Partnership for a small farmer's market business instead of LLC?

My colleague above is correct. However, sometimes you can get adequate protection from insurance and avoid having to organize a separate company....