Adam’s Tax Blog
Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.
Why Do Partners Sometimes Report More Income on Tax Returns Than They Receive in Cash?
You may come across a situation that gives you pause if you’re a partner in a business. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership. Why does this happen? The answer lies in the way partnerships and...
Take Advantage of a “Stepped-Up Basis” When You Inherit Property
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Fair market value rules Under the fair market value basis rules (also known as “step-up and step-down” rules), an heir receives a basis...
Even If No Money Changes Hands, Bartering Is a Taxable Transaction
Many small businesses are strapped for cash due to the COVID-19 pandemic. So they may find it beneficial to barter for goods and services instead of paying cash. If your business gets involved in bartering, remember the fair market value of goods that you receive in...
Conduct a “Paycheck Checkup” to Make Sure Your Withholding is Adequate
Were you surprised to find out you owed money when you filed your federal tax return this year? You might want to change your withholding so that this doesn’t happen again next year. You might want to do that even if you got a big refund. Receiving a tax refund...
Businesses: Get Ready for the New Form 1099-NEC
There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020,...
After You File Your Tax Return: 3 Issues to Consider
The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues you should bear in mind. Here are three...
Steer Clear of the Trust Fund Recovery Penalty
If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld from a business employees’ wages. Because...
Some People Are Required to Return Economic Impact Payments That Were Sent Erroneously
The IRS and the U.S. Treasury had disbursed 160.4 million Economic Impact Payments (EIPs) as of May 31, 2020, according to a new report. These payments were sent to eligible individuals in response to the economic threats caused by COVID-19. The U.S. Government...
Haven’t Filed Your 2019 Business Tax Return Yet? There May Be Ways to Chip Away at Your Bill
The extended federal income tax deadline is coming up fast. As you know, the IRS postponed until July 15 the payment and filing deadlines that otherwise would have fallen on or after April 1, 2020, and before July 15. Retroactive COVID-19 business relief The...
What Qualifies as a “Coronavirus-Related Distribution” From a Retirement Plan?
The CARES Act (Coronavirus Aid, Relief and Economic Security) allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what constitutes a coronavirus-related...
We’re Moving – New Address Effective 6/29/20
Effective Monday, June 29th, 2020, our office is moving to: 3301 West Freeway, Suite 104 Fort Worth, TX 76107 Our office hours and phone number will remain the same. Click Here for a Map to the New Office
Launching a Business? How to Treat Start-Up Expenses on Your Tax Return
Despite having devastated many existing businesses, the COVID-19 pandemic has also created opportunities for entrepreneurs to launch new businesses. Some businesses, for example, are being launched online to provide products and services to people staying at home....