Gifting property can be a way for one person to shift paying tax on gain, but this does not mean that the gain escapes tax free. Under § 1015, a donor may transfer property to a donee, and if there is built in gain with the property, then the done will take a basis in […]
The Internal Revenue Code and Treasury Regulations are long and complex. Many of these laws apply to and impact your 1040 individual income tax return and must be taken into account when planning for future individual decisions. In addition to assisting clients with their IRS matters, a tax attorney at The McGuire Law Firm can […]
There are many issues to consider when forming a trust through your estate planning. A couple of the more common issues being the trustee of the trust and creditor protection to the beneficiary of a trust are discussed in general below. Trusts create a fiduciary relationship with a trustee to hold property for the benefit […]
For those who are required to take a minimum required distribution (“RMD”) from an IRA, charitable donations may be the answer. An individual can offset the tax liability from an RMD by making a qualified charitable donation if he does not need the cash at the time of the distribution. If an individual takes the […]
Identity theft can result in tax related issues as well as financial problems, so it is important to respond immediately so that the IRS can correct any fraudulent issues. Depending on whether the taxpayer or IRS discovers the fraudulent activity determines how the case is handled. Typically, the IRS is the first to notice if […]
President Trump signed the Coronavirus Aid, Relief, and Economic Security Act “CARES Act” into law which provides relief funds to help stimulate the economy from the impact of the COVID-19 pandemic. Small businesses that would like to apply for a loan with reduced interest and potential forgiveness should apply through the Economic Injury Disaster Loan […]
The IRS lays out specific requirements and qualifications in order to properly take the charitable contribution deduction. For taxpayers, including individuals, partnerships, and corporations who want to take a deduction for noncash charitable contributions over $500, they must file Form 8283. Form 8283 should accompany the taxpayer’s return for the year they contributed the property […]
When businesses, whether as a seller or a purchaser are going through the acquisition process there is likely to be discussion as to whether the acquisition will be structured as an asset purchase or a stock purchase. There are advantages and disadvantages to a an asset purchase and a stock purchase to both the seller […]
Many people have questions relating to FIRPTA and the relating withholding tax requirements. Below are common questions and answers related to FIRPTA, but please remember to consult directly with your tax attorney and other tax advisors.  What is FIRPTA? FIRPTA is a withholding tax requirement for the disposition of a U.S. real property interest by […]
Many individuals (and businesses) buy stock and securities with the hopes and intent of the securities appreciating and perhaps paying interest or dividends. What determines when an individual is treated as an investor, dealer or trader? Furthermore, what is the tax treatment and proper way to report income and expenses when one is classified as […]