Original Issue Discount and Debt Instruments

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•Denver Business Attorney, Denver Tax Attorney, Interest Income, Original Issue Discount

Table of Contents1 What Is Original Issue Discount? 2 Discounted Debt Instruments3 How an Original Issue Discount Works3.1 Original Issue Discount Example4 Exceptions to Reporting an Original Issue Discount4.1 Is 1099-Original Issue Discount issued? 5 Questions About an Original Issue Discount? Contact Us! What Is Original Issue Discount? An original issue discount (OIDs) is the discount in […]

Cost Basis: Definition, Calculations, and Reporting

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•Colorado Business Law

•Cost Basis, Denver Tax Attorneys, Denver Tax Lawyer

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Table of Contents1 Cost Basis Calculations1.0.1 To calculate the cost basis of your stock options, follow these steps:1.1 Example Of Calculating Cost Basis2 What is Cost Basis?2.1 Understanding Cost Basis3 Tracking Cost Basis4 Questions About Cost Basis? Contact The McGuire Law Firm Cost Basis Calculations The IRS requires you to report cost basis on certain […]

Limited Liability Companies May Conflict With S Corporation Elections

Is Your Operating Agreement Invalidating S Corporation Elections?

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•Colorado Business Law, Denver Tax Attorneys

•Choice of Entity, Denver Business Attorney, Denver Tax Attorney, LLC Operating Agreement, S Corporation Election

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Table of Contents1 Limited Liability Companies Conflict With An S Corporation Operating Agreement2 Invalidating the S Corporation Election2.1 The qualify as an S corporation, the corporation must:3 One Class of Stock Requirement4 Not Sure Which Entity to Choose? Limited Liability Companies Conflict With An S Corporation Operating Agreement Abiding by the LLC operating agreement may […]

What Is The Cohan Rule, and Does It Help You?

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•Colorado Business Law

•Cohan Rule, Denver Tax Attorney, IRS Tax Audit

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Table of Contents1 The Cohan Rule Basis1.1 Understanding the Cohan Rule1.2 Maintaining Tax Records2 3 Establishing The Cohan Rule3.1 Applying the Cohan Rule4 Common Cohan Rule Questions The Cohan Rule Basis Individuals or businesses audited by the Internal Revenue Service may be familiar with the Cohan rule. The Cohan rule is based upon a court […]

Important Tax Deductions: Current vs. Capital Expenses

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•Deducting Business Expenses, Denver Business Attorney, Denver Tax Attorney

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Table of Contents1 Small Business Tax Deductions1.1 Current Tax Deductions2 2.1 Capital Tax Deductions2.1.1 Examples of Capital Tax Deductions3 More Questions About Tax Deductions? Small Business Tax Deductions Business owners often wonder how many tax deductions they can write off against yearly income taxes. They can do this by taking either a current or a […]

Determining IRS Eligibility Resolve Federal Tax Liability

Key IRS Compliance Requirements to Establish a Tax Agreement

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•Colorado Business Law

•IRS, IRS Compliance, IRS Installment Agreement, IRS Offer in Compromise

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Table of Contents1 Determining Eligibility Resolve Federal Tax Liability1.1 IRS Requirement #11.2 IRS Requirement #22 Estimated Deposit Requirements For Individuals2.1 Determining Quarterly Payments2.2 Determining Each Estimated Quarterly Payment 3 IRS Deposit Requirements for Businesses3.1 940 Unemployment Deposits Determining Eligibility Resolve Federal Tax Liability To be eligible to resolve an outstanding federal tax liability voluntarily (i.e., installment […]

Tax-Related Identity Theft and How to Prevent It

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•Denver Tax Attorney, Identity Theft

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Table of Contents1 Preventing Identity Theft2 Be Aware When Identity Theft Is Happening2.1 Taxes and Identity Theft2.2 Identity Theft Of Personal Data3 3.1 Employment-Related Identity Theft4 Common Signs Of Identity Theft5 Preventing Identity Theft There’s a good chance you already know how to protect yourself against identity theft. But what about protecting yourself against tax-related […]

How is Profits Interests Taxed for an LLC

Helpful Info On How Profits Interests Are Taxed For An LLC

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•Colorado Business Law

•Denver Business Attorney, Denver Tax Attorney, Profits Only Interest

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Table of Contents1 Defining Profits Interests1.1 Profits Interests Taxes for LLCs1.2 Profits Interests In LLCs2 3 Understanding the Background of Profits Interests3.1 The Hypothetical Liquidation Analysis Defining Profits Interests An LLC’s profits interests are very similar to those of a corporation. They allow shareholders to participate in the company’s growth immediately upon formation. When the company […]

Determining If Your Activities Are A Business Or A Hobby

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•Deducting Business Expenses, Denver Tax Attorney, Hobby Loss Rules

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Table of Contents1 Business as a Hobby2 Earning a profit2.1 Time Spent2.2 Profit motive2.3 Knowledge Needed3 Determining If An Activity Is A Hobby Or A Business4 Hobby Classification5 Avoiding The Hobby Classification5.1 Have More Questions? Contact Us! Business as a Hobby If your business claims a net income loss for too many years or fails […]

IRS Tax Lien Release With Offer in Compromise Acceptance

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•Denver Tax Attorney, IRS Tax Lien, Offer in Compromise

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A Notice of Federal Tax Lien can provide several problems for a taxpayer. Recently, the IRS released the Notice of Federal Tax Lien when a taxpayer successfully has an offer in compromise accepted by the IRS and pays the offer amount. This is a beautiful benefit to the taxpayer as the IRS did not always […]