Congress Passes Tax Extenders Legislation

On December 16, 2014, the Senate passed a bill to extend a package of expired or expiring individual, business, and energy provisions known as “tax extenders.” The bill, H.R. 5771, known as the “Tax Increase Prevention Act of 2014,” extends the...

S Corporation or LLC

Many business owners structure their companies as S corporations or limited liability companies (LLCs). On the surface there are several similarities. Both types of entities avoid corporate income tax. Instead, business income is taxed only once, on the tax return of...

Be Wary of Accumulated Assets

Owners of regular C corporations face double taxation. The company’s profits are subject to the corporate income tax. If some of those profits are paid to the owner and other shareholders, as nondeductible dividends, the same dollars will be taxed again, on the...

Year-End Family Tax Planning

Besides donating appreciated securities to charity, another solution for avoiding highly taxed capital gains on these securities is to transfer the relevant assets to a family member in a lower tax bracket. The recipient might be able to sell and pay little or no tax...