Small Business Tax

Proposed legislation, the so-called Ex-Patriot Act, targets expatriates who make money in the United States without paying a fair tax load. The proposal was triggered by the news that Eduardo Saverin, co-founder of Facebook, stands to save $100 million because he renounced his U.S. citizenship prior to Facebook’s initial public offering.

A new Tax Court case appears to create a blueprint for passing assets to heirs through a family limited partnership (FLP). The case upholds a formula clause for valuing the FLP interests passed to other family members. The IRS has sometimes successfully challenged such clauses in the courts, but this time the Tax Court sided with the taxpayers.

The 7th Circuit Court of Appeals has affirmed a Tax Court ruling that denied a charitable deduction to taxpayers who donated a house to the local fire department to burn down for training purposes.

The home sale gain exclusion is one of the biggest federal income tax breaks around. However, the gain exclusion may not be big enough to shelter all of your gain from tax if you sell a highly appreciated home. Strategy: Follow a two-step approach.

Don’t be caught off-guard by the next installment due date for estimated taxes. Fortunately, you can avoid tax penalties if you paid the amount required under one of three safe-harbor methods.

Does your business intend to hire military veterans this year? It may qualify for the Work Opportunity Tax Credit.

According to a new case decided by the 9th Circuit Court, you can’t use a Roth IRA to hold S corporation stock: The corporation must be taxed as a regular C corp.

Q. My wife, who never worked, reached full retirement age for Social Security last month. I will reach it in November, but won’t retire for a few years. Should I wait to apply for benefits?

Although you generally can’t deduct the cost of going to and from work, you may be able to write off certain “commuting” expenses. Here are five prime examples.

The IRS is warning taxpayers about an emerging scam. Under the scheme, promoters claim they can obtain a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit (AOTC), even if the victim went to school decades ago.