Now showing items 1-10 of 47
S Election Did Not Trigger Recapture of Dual Consolidated Losses Where Closing Agreement Was Signed
A discussion of an IRS ruling stating that under certain circumstances, an S corporation election would not trigger a dual consolidated losses recapture if a closing agreement was entered into by the parent company, its ...
Guarantee of S Corporation Debt Did Not Increase Basis
A short analysis of the Tax Court case William H. Maloof, TCM 2005-75. Maloof guaranteed a $4 million loan for an S corporation which the company eventually defaulted on. Maloof argued that his loan guarantee should allow ...
Public Comment Requested on Potential Changes to Certain Distributions Treated as Sales or Exchanges Under Section 751(b)
This article discusses the Treasury Department and IRS recent request for comments on the approaches discussed in Notice 2006-14, 2006-8 IRB 498, in determining a partner's share of hot assets and prescribing the tax ...
Tips on Using Exemption Certificates to Rebut the Presumption That All Sales Are Taxable
Exemption certificates allow purchasers to obtain goods without paying Texas sales and use taxes. Both sellers and purchasers should retain copies of the exemption certificates for a minimum of four years for protection ...
The New Texas Margin Tax—The Margin Tax Expands the Types of Entities Subject to Taxation
The new Texas Margin Tax expands the entities which are subject to tax, however, exemptions exist for certain entities, small businesses, and passive investment entities.
Improper Documentation and Maintenance of Files Can Lead to the Loss of Exemptions
Items purchased for resale are not taxable in Texas, however, a purchases must provide a resale certificate to a purchaser in order to qualify for an exemption from sales and use tax. Sellers should keep these certificates ...
The Seller and Purchaser Are Both Liable for Uncollected Sales Tax
Liability for payment of uncollected sales tax falls on both Texas sellers and purchasers.
Understanding the Sales Taxation of Services and Enumerated Services
The sales of services are exempt from Texas sales tax, however, there is a long list of statutorily taxed services. Texas courts apply an essence of the transaction test to determine whether a mixed transaction is taxable.
Religious Organizations May Be Exempt from the Franchise Tax
Religious organizations and many other kinds of organizations are allowed an exemption from the Texas franchise tax. To obtain the franchise tax exemption, organizations must submit an application to the Texas Comptroller ...
The New Texas Margin Tax—Understanding How the Margin Tax is Computed
A short essay discussing how taxable entities calculate the new Texas Margin Tax.